NewzIntel.com

Category: Security Intelligence

  • MIL-OSI Security: Alexandria Man Sentenced for Conspiring to Distribute Methamphetamine

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    ALEXANDRIA, La. – Tyrone Donnell Porter, 51, of Alexandria, has been sentenced for conspiracy to distribute and possess with intent to distribute methamphetamine, announced United States Attorney Brandon B. Brown. United States District Judge Dee D. Drell sentenced Porter to 360 months (30 years) in prison, followed by 5 years of supervised release. 

    Porter was found guilty of the charge by a jury in Alexandria after a trial in December 2023. Evidence introduced at trial revealed that agents with the Federal Bureau of Investigation began an investigation into the drug trafficking activities of Porter and others during 2021. Law enforcement agents obtained a search warrant for a hotel room which was rented under Porter’s name in Alexandria and where Porter was staying. On September 30, 2021, agents executed the search warrant and found Porter inside the hotel room, along with two other individuals. Inside the room, agents found two bags containing a glass pipe with methamphetamine residue, 2 boxes and 18 loose rounds of ammunition, as well as a Sig Sauer 9mm handgun in a holster loaded with 11 rounds in the magazine.

    In addition, agents found a large black plastic bag with a can which had a vacuum sealed bag containing 492 grams of suspected methamphetamine. Agents were later able to obtain video footage of Porter carrying the black plastic bag which had the can of methamphetamine into the hotel just minutes before law enforcement arrived to execute the search warrant. 

    The case was investigated by the Federal Bureau of Investigation and Rapides Parish Sheriff’s Office and prosecuted by Assistant United States Attorneys John W. Nickel and Casey N. Richmond.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Deputy Attorney General Lisa Monaco Delivers Remarks Announcing TD Bank’s Guilty Plea for Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B Resolution

    Source: United States Attorneys General

    Remarks as Prepared for Delivery

    Thank you, Mr. Attorney General.

    Today, one of North America’s largest banks pleaded guilty to some of the most serious charges a financial institution can face.

    This case should serve as a warning and a reminder that we will hold corporate wrongdoers accountable, no matter their size or stature.

    But this case also highlights the critical importance of maintaining a culture of compliance — and offers a cautionary tale of how bad things can go without one.

    When you put your hard-earned money in a bank – that bank should meet a very basic requirement.

    It should follow the law.

    For financial institutions, that means — among other obligations — adhering to the Bank Secrecy Act (BSA).

    This law is fundamental — not only for protecting our financial system — but also our national security.

    The BSA requires that banks:

    • Maintain robust anti-money laundering programs;
    • Report suspicious activity; and
    • Train employees to be the first line of defense against money laundering.

    Despite being one of the largest banks in the country, TD Bank failed to meet these requirements and violated the law.

    Even as profits rose, the bank starved its compliance program of the resources it needed to obey the law.

    Time and time again, TD Bank failed to meet its obligations — day after day, year after year.  

    The problems were so widespread — so pervasive — that it was only a matter of time before the bank’s own employees could exploit these failures and engage in money laundering themselves.

    And that’s exactly what happened.

    As TD Bank admitted in its plea today, its anti-money laundering failures spanned nearly a decade.

    Things got so bad that five of the bank’s own employees participated in a scheme that laundered millions of dollars to Colombia, resulting in felony convictions for individuals both inside and outside the bank.

    What makes this even more troubling is that — for years — TD Bank knew of its compliance failures.

    In 2013, federal regulators began penalizing the bank for its lack of money laundering controls.

    But as the light continued blinking red, TD Bank could only see green.

    Every bank compliance official in America should be reviewing today’s charges as a case study of what not to do.

    And every bank CEO and board member should be doing the same.

    Because if the business case for compliance wasn’t clear before — it should be now.

    The Bank Secrecy Act includes a unique penalty provision: the ability to fine a financial institution up to $500,000 for each day it lacks a functional anti-money laundering program.

    The daily fine provision is rarely used.

    In fact, the Justice Department has never before sought this maximum daily penalty against any financial institution.

    Until now.

    The financial penalty under today’s resolution is based on TD Bank’s failure to maintain an effective anti-money laundering program every single day from the beginning of 2014 to the end of October 2023.

    Today’s guilty plea — and the resulting $1.8 billion penalty — represents the largest penalty ever imposed under the Bank Secrecy Act.

    And it provides an unmistakable lesson: crime doesn’t pay. And neither does flouting compliance. 

    This resolution also sets a new course for TD Bank.

    With today’s guilty plea, TD Bank has agreed to tough new rules.

    • It must overhaul its compliance program;
    • It must retain an independent monitor;
    • It must report misconduct to the government; and
    • It must cooperate in our ongoing criminal investigations into the individuals responsible – up and down the corporate ladder.

    The bank has begun this work, and we will continue to hold its feet to the fire.

    We are putting down a clear marker on what we expect from financial institutions — and the consequences for failure.

    When it comes to compliance, there are really only two options: invest now – or face severe consequences later.

    As I’ve said before, a corporate strategy that pursues profits at the expense of compliance isn’t a path to riches; it’s a path to federal prosecution.

    I want to thank the women and men of the Justice Department’s Criminal Division, the U.S. Attorney’s Office for the District of New Jersey, and investigative partners joining us today for their continued work on this matter.

    With that, I’ll pass it to Deputy Secretary of Treasury, Wally Adeyemo.

    MIL Security OSI –

  • MIL-OSI Security: Attorney General Merrick B. Garland Delivers Remarks Announcing TD Bank’s Guilty Plea for Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B Resolution

    Source: United States Attorneys General 2

    Remarks as Delivered

    Good afternoon everyone. Before we get started today, I want to extend my sympathy to the millions of Americans who’ve had their lives turned upside down by Hurricane Milton and Hurricane Helene.

    I know I speak for all of us in expressing my gratitude to the first responders on the ground who are carrying out rescue missions. And I want to thank all of the volunteers who are helping their neighbors get through these storms.

    And now to the subject of today’s announcement.

    Today, TD Bank pled guilty to multiple felonies, including conspiring to violate the Bank Secrecy Act and commit money laundering. TD Bank has also agreed to a $1.8 billion criminal penalty. Combined with civil enforcement actions announced today by other agencies, the United States will be imposing a total [penalty] of approximately $3 billion against TD Bank.

    TD Bank created an environment that allowed financial crime to flourish. By making its services convenient for criminals, it became one.

    Today, TD Bank became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures and the first U.S. bank in history to plead guilty to conspiracy to commit money laundering.

    This is also the largest-ever penalty under the Bank Secrecy Act and the first time the Justice Department has assessed a daily fine against a bank.

    As part of the plea agreement, TD Bank will fundamentally restructure its corporate compliance program at its U.S.-based bank, which is the 10th largest in the United States.

    The bank has also agreed to the imposition of a three-year monitorship and a five-year term of probation. While the bank has started its remediation, it will continue to remediate and improve its anti-money laundering compliance program to ensure that the bank operates lawfully and safely moving forward.

    In addition to obtaining today’s corporate felony pleas, the Justice Department has also prosecuted two dozen individuals for their involvement in money laundering schemes that moved over $670 million in illicit funds through TD Bank accounts. So far, the Justice Department has charged two TD Bank employees for their involvement in one of these schemes.

    Pursuant to the plea agreement, TD Bank is required to fully cooperate with the Justice Department’s investigation of the bank and any of its officers, directors, and employees. If the bank fails to do so, it will again be subject to criminal prosecution, in which the statement of facts that are part of the plea agreement may be used as evidence against it.

    Our criminal investigations into individual employees at every level of TD Bank are active and ongoing.

    As is the case in all corporate criminal matters, no one involved in TD Bank’s illegal conduct will be off limits. We will follow the evidence wherever it leads.

    Federal anti-money laundering laws are designed to prevent criminals from using U.S. banks to fuel their crimes.

    Our laws dictate that the narcotics traffickers who flood our communities with deadly drugs cannot use American financial institutions to move their money.

    And our anti-money laundering laws dictate that a bank that willfully fails to protect against criminal schemes is also a criminal.

    That is what TD Bank was, because it failed to maintain an adequate anti-money laundering program between January 2014 and October 2023.

    Over a six-year period, TD Bank failed to monitor $18.3 trillion in customer activity.

    As TD Bank admitted in its plea agreement, this allowed three money laundering networks to transfer over $670 million through TD Bank accounts. At least one of those schemes involved five TD Bank employees.

    The bank maintained an automated transaction monitoring system that was supposed to detect and generate alerts on suspicious transactions and activities. But that system was willfully deficient.

    As the bank admitted in the statement of facts, which it filed today, at various times high-level executives, including the person who became the bank’s chief anti-money laundering officer, knew there were serious problems with the bank’s anti-money laundering program. But the bank failed to correct them.

    Three money laundering networks took advantage of TD Bank’s failed anti-money laundering system.

    First, over the course of a three-year period, a person who TD Bank employees knew as David moved over $470 million in illicit funds through TD Bank branches in the United States.

    David has separately pled guilty to laundering drug proceeds through the bank.

    David had attempted to launder money through numerous financial institutions. But he found that TD Bank had the most permissive policies and procedures and chose to launder most of his funds there.

    He also bribed TD Bank employees with more than $57,000 in gift cards in furtherance of his scheme.

    David’s illegal conduct was obvious, to say the least. On more than one occasion, he deposited more than $1 million in cash in a single day. He then immediately moved the funds out of the bank using official bank checks and wire transfers.

    TD Bank employees at many levels understood and acknowledged the likely illegality of David’s activity.

    In August 2020, one TD Bank store manager emailed another store manager and remarked, “You guys really need to shut this down LOL.”

    In late 2020, another store manager implored his supervisors — several TD Bank regional managers — to act, noting that “[i]t is getting out of hand and my tellers are at the point that they don’t feel comfortable handling these transactions.”

    In February 2021, one TD Bank store employee saw that David’s network had purchased more than $1 million in official bank checks with cash in a single day. The employee asked: “How is that not money laundering.” A back-office employee responded, “oh it 100% is.”

    In a second, separate money laundering scheme, five TD Bank employees conspired with criminal organizations to open and maintain accounts at the bank that were used to launder $39 million to Colombia, including drug proceeds.

    That money laundering organization reused the same Venezuelan passports to open multiple accounts at TD Bank. It sometimes used the same passport to obtain multiple debit cards for a single account.

    Despite significant internal red flags, the bank did not identify that its own employees were conspiring to launder tens of millions of dollars to Colombia, until law enforcement arrested one of them.

    In yet a third scheme, outlined in today’s charges, a money laundering network maintained accounts at TD Bank for at least five shell companies. It used those accounts to move over $100 million in illicit funds through the bank.

    Even though retail employees flagged suspicious activity connected to those accounts, the bank did not file a suspicious activity report until law enforcement alerted the bank to the money laundering network’s activity. By that time, the accounts had been open for over 13 months and had been used to transfer nearly $120 million.

    On multiple occasions, bank employees openly joked about the bank’s enabling of criminal activity.

    In one instance a compliance employee asked a manager what “the bad guys” thought about the bank. The manager replied: “Lol. Easy target.”

    Other employees consistently joked on the bank’s instant messaging platform about the bank’s motto, “America’s Most Convenient Bank.” They linked it to the bank’s approach to combating money laundering.

    For example, a compliance employee asked a colleague why “all the really awful ones bank here lol.”

    The colleague replied: “because … we are convenient.”

    There is nothing wrong with a bank that tries to make its services convenient for its honest customers.

    But there is something terribly wrong with a bank that knowingly makes its services convenient for criminals.

    The Bank Secrecy Act requires financial institutions like TD Bank to establish and maintain compliance programs that guard against money laundering.

    But TD Bank chose profits over compliance, in order to keep its costs down.

    That decision is now costing the bank billions of dollars in criminal and civil penalties.

    Less than a year ago, the Justice Department secured felony guilty pleas from Binance, the world’s largest cryptocurrency exchange, and from its founder and CEO. We also obtained one of the largest corporate penalties in U.S. history.

    The Department’s actions against both Binance and TD Bank are a reminder that financial institutions in this country have an obligation to guard against criminals exploiting their services.

    The Justice Department will aggressively prosecute any company that fails to do so.

    I want to express my gratitude to the public servants of the Justice Department’s Criminal Division, the U.S. Attorney’s Office for the District of New Jersey, and the DEA for their extraordinary work on this case. We are also grateful to IRS Criminal Investigation, the FDIC’s Office of Inspector General, FinCEN, and our other federal, state, and local partners for their work.

    I am proud of them.

    I will now turn the podium over to Deputy Attorney General Monaco.

    MIL Security OSI –

  • MIL-OSI Security: Principal Deputy Assistant Attorney General Nicole M. Argentieri Delivers Remarks Announcing TD Bank’s Guilty Plea for Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B Resolution

    Source: United States Attorneys General

    Remarks as Prepared for Delivery

    Thank you, Deputy Secretary Adeyemo. I’m Nicole Argentieri, head of the Criminal Division.

    Today, we are announcing the guilty plea of TD Bank, the 10th largest retail bank in the United States, for Bank Secrecy Act violations and money laundering. Over the course of a decade, TD Bank placed profits over compliance, prioritizing a “flat cost paradigm” that limited spending across the bank — including on the bank’s anti-money laundering (AML) compliance program, despite growing risks — even while profits soared.

    The bank knew it had pervasive and systemic deficiencies in its AML program, including a transaction monitoring system that remained stagnant over the course of 10 years despite warnings from regulators, consultants, and even its own employees.

    AML employees joked that the Bank’s failed AML system made TD an “easy target” and a “convenient” bank for bad actors. And they were right. TD’s failed AML compliance program created vulnerabilities that criminals — including TD’s own employees — used to launder money through the Bank.

    All told, three large money laundering networks, two prosecuted by our partners in the District of New Jersey and the third prosecuted in the District of Puerto Rico, laundered over $670 million through TD.

    And in one of these schemes, five bank insiders helped. These TD Bank employees opened and maintained accounts for money laundering networks and provided dozens of ATM cards that the launderers used to withdraw funds in Colombia, shortly after the money was deposited in the United States. The insiders took kickbacks for their work, sometimes using the very debit cards they issued to the money laundering organization to take their cut. Through the TD accounts these five insiders opened, the laundering networks moved over $39 million in illicit funds.

    That’s why today, TD Bank is pleading guilty not only to violating the Bank Secrecy Act. It’s also pleading guilty to money laundering. Because TD Bank’s inadequate AML program allowed bank insiders to facilitate a significant money laundering scheme. This resolution, in addition to the historic daily BSA fine we have imposed, sends a clear message to U.S. banks — you are the first line of defense. When you criminally fail to protect your own bank from money laundering you put our financial system at risk, and we will hold you accountable.

    But it’s never too late to do the right thing. After TD learned of our investigation, the Bank provided strong cooperation. For example, TD identified additional misconduct and provided evidence of that misconduct to the department. Some of that evidence helped advance our investigation of individuals, including video surveillance footage TD provided after reviewing hundreds of hours of videotape and materials recovered because TD secured the workplaces of employees involved in misconduct.

    What’s more, TD took steps on its own to hold its employees financially accountable. The Bank clawed back bonuses, including for its CEO and other executives, resulting in a dollar-for-dollar reduction of the Bank’s fine of approximately $2 million, consistent with the Criminal Division’s Pilot Program on Compensation Incentives and Clawbacks. Under that pilot program, as of today, 10 companies that have resolved with the Criminal Division have implemented compliance metrics in their compensation system. But today’s resolution marks a first. This is the first time a company has committed to clawing back compensation prospectively. Over the next few months, TD will identify additional compensation it will claw back from its employees. And if the bank is successful during the term of its agreement with the department, the Criminal Division will credit those clawbacks against the fine.

    TD has also started on the path to reform, beginning to remediate its compliance system, committing to additional compliance enhancements, and agreeing to retain an independent compliance monitor. That monitor will closely assess TD’s compliance with our agreement while moving swiftly to ensure that TD makes necessary reforms. Under the close oversight of the department and the monitor, TD can right this ship. While there is a long road ahead, today’s resolution demonstrates that accepting responsibility and cooperating with the department can ensure that even the largest companies can be held accountable for serious crimes, but also choose a different path and successfully move their business forward in full compliance with the law.

    I want to thank our trial attorneys in the Money Laundering and Asset Recovery Section’s Bank Integrity Unit and our partners in the District of New Jersey, along with our law enforcement partners at IRS-Criminal Investigation, Federal Deposit Insurance Corporation Office of Inspector General, and Drug Enforcement Administration. And now I’ll turn it over to the U.S. Attorney for the District of New Jersey, Philip Sellinger.

    MIL Security OSI –

  • MIL-OSI Security: Holly Man Sentenced to 85 Years for Sexually Exploiting Children

    Source: Federal Bureau of Investigation (FBI) State Crime News

    DETROIT –A Holly man was sentenced yesterday to 85 years in federal prison for sexually exploiting children, United States Attorney Dawn N. Ison announced today.

    Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Federal Bureau of Investigation, Detroit.

    In addition to the 85-year sentence, United States District Court Kay F. Behm sentenced Jeremy McCallum, 48, to 15 years of supervised release upon his release from prison.

    According to court documents, on January 31, 2020, law enforcement searched McCallum’s home for child sexually abusive material. The search resulted in the recovery of hard copies and digital files depicting years-long, horrific sexual abuse of three minor children by McCallum. McCallum abused one minor female for the better part of a decade, documenting his abuse of her on VHS tape, on his cell phone, and in Polaroid pictures. He abused another minor female when she was an infant, recording his sexual abuse of her on VHS tape and on his cell phone. Finally, on a VHS tape, an FBI agent located an instance of sexual abuse that McCallum committed against a minor male.

    Following years of litigation, McCallum pleaded guilty, on June 18, 2024, to all the charges in the indictment, including ten counts of the sexual exploitation of a child and one count of possession of child pornography.

    “This defendant committed monstrous crimes. This prosecution and sentence should send a strong message to child predators: you will suffer severe consequences if you harm our children,” said U.S. Attorney Ison.

    “The despicable acts of sexual exploitation, especially against children, are amongst the most horrific crimes investigated by our office,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The sentencing of Jeremy McCallum is a direct result of the collaborative efforts between the Michigan State Police and the FBI, Oakland County Resident Agency. This sentencing sends a clear and stern warning to those who believe they can prey on our most vulnerable population and evade justice. The successful prosecution by the United States Attorney’s Office of Eastern Michigan is a crucial step in the healing process for those victimized by Mr. McCallum’s deplorable and heinous actions.”

    This case was investigated by the FBI and the Michigan State Police.  The case was prosecuted by Assistant U.S. Attorneys Christopher Rawsthorne and Tara Hindelang.

    MIL Security OSI –

  • MIL-OSI Security: Update 254 – IAEA Director General Statement on Situation in Ukraine

    Source: International Atomic Energy Agency – IAEA

    Ukraine’s Zaporizhzhya Nuclear Power Plant (ZNPP) has restored its connection to a 150 kilovolt (kV) power line that could be used as a back-up option for the plant, although the supplies of electricity needed for reactor cooling and other essential functions remain fragile, Director General Rafael Mariano Grossi of the International Atomic Energy Agency (IAEA) said today.

    The 150 kV line was reportedly damaged in shelling late last month, further limiting the potential availability of power supplies for the ZNPP as this line connects the site to the switchyard of the nearby Zaporizhzhya Thermal Power Plant. However, the IAEA team stationed at the ZNPP was informed this week that the repairs had been completed and the line was once again available, if needed.

    During the military conflict, the ZNPP has been relying on two power lines – one 750 kV and one 330 kV – for off-site electricity but both have suffered repeated disconnections as a result of the fighting, underlining the potential importance of any additional source of electricity. Before the conflict, the ZNPP had ten power lines available.

    During the past week, the IAEA team has continued to hear explosions, including some blasts close to the ZNPP, although no damage to the plant was reported.

    The IAEA team conducted regular walkdowns across the ZNPP, including by the sprinkler ponds and in the turbine halls of two units, and observed ongoing maintenance activities of one main transformer as well as testing of one emergency diesel generator pertaining to part of the safety system.

    The IAEA teams present at the Khmelnytskyy, Rivne and South Ukraine NPPs and the Chornobyl site reported that nuclear safety and security is being maintained despite the effects of the ongoing conflict, including air raid alarms for several days over the past week.

    At the Rivne NPP, reactor unit 2 has been reconnected to the grid following planned outage. Following an air raid alert, the IAEA team deployed at Khmelnytskyy NPP took shelter in the morning of 7 October.

    MIL Security OSI –

  • MIL-OSI Security: Salisbury, Moncton — Two individuals charged in connection with September 16 Alert Ready

    Source: Royal Canadian Mounted Police

    Two individuals have been charged in connection with a firearm-related incident that initiated an Alert Ready for the Salisbury and Moncton areas on September 16, 2024.

    On October 9, 2024, 19-year-old Zander Jones was arrested in Waterloo, Ontario. He was transported to New Brunswick where he appeared in Moncton Provincial Court on October 10, 2024, and charged with discharge of a firearm with intent. He was remanded into custody and is scheduled to reappear in court on November 13, 2024.

    On October 2, 2024, the 15-year-old boy who was previously arrested appeared in Moncton Provincial Court and was also charged with discharge of a firearm with intent. He was remanded into the custody of the courts, and is scheduled to reappear in court on October 15, 2024.

    The female youth, who cannot be identified under the Youth Criminal Justice Act, was arrested in Moncton on September 27, 2024. She was subsequently released on conditions.

    Another male youth who cannot be identified under the Youth Criminal Justice Act, was arrested in Colpitts Settlement on September 16, 2024. He was subsequently released on conditions.

    Police are still trying to locate a fifth individual, 18-year-old Olivia Cotton, from Moncton, in connection with the ongoing investigation. She is described as being approximately five feet six inches (172 centimeters) tall and weighing approximately 97 pounds (44 kilograms). She has brown eyes and brown hair.

    Police also continue to search for a silver 2023 Ford F150 pickup truck. At the time of the incident, it was described as being covered in mud, with possible Nova Scotia licence plate HDC 958.

    Anyone who has information on Olivia Cotton’s whereabouts or the vehicle is asked to contact the New Brunswick RCMP at 888-506-RCMP (7267). Information can also be provided anonymously through Crime Stoppers at 1-800-222-TIPS (8477), by downloading the secure P3 Mobile App, or by Secure Web Tips at http://www.crimenb.ca.

    MIL Security OSI –

  • MIL-OSI Security: St. Michael Man Pleads Guilty to Child Abuse in Death of One-Year-Old

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    Fargo – United States Attorney Mac Schneider announced that Collin Ray Delorme, also known as Collin Ray Delorme Sr., age 29, from St. Michael, North Dakota, appeared in federal court on October 9, 2024, in Fargo and pleaded guilty before District Court Judge Peter Welte to three counts of Child Abuse in Indian country.

    As noted in court documents, on February 18, 2023, Delorme’s co-defendant Kenzie Rose Baker called 911 from a home in St. Michael on the Spirit Lake Reservation and reported a one-year-old child was not breathing. The child was transported to CHI St. Alexius in Devils Lake, North Dakota and was pronounced dead.

    An autopsy concluded the cause of death was “battered child” due to multiple, repeated injuries of various ages, evident upon external and internal examination. The child’s internal injuries were untreated, given rise to infection and sepsis.

    Baker admitted she observed swelling present for two weeks but failed to seek medical care. After the child’s death, Delorme claimed an external injury to the child’s back, which was above a spinal fracture, occurred when he misjudged a step and his boot slipped and a flashlight hit the child.

    Two of the charges that Delorme pleaded guilty to are related to his abuse and the resulting death of the one-year-old child.  The third charge is the result of Delorme’s abuse of a second child, who was three years old, by hitting the child on the arms and throwing him on the bed.

    Delorme is scheduled for sentencing on February 18, 2025, and faces a maximum sentence of forty years in prison.

    On August 16, 2024, Baker pled guilty to charges of Accessory after the Fact; Child Abuse in Indian country; Child Neglect in Indian country. Baker is scheduled to be sentenced on January 22, 2025.

    Baker and Delorme are detained pending sentencing.

    “Today’s guilty plea is a step towards accountability for the heartrending death of a young child,” Schneider said. “The way this toddler was treated was horrific and shameful. Whether it is at multi-disciplinary team meetings throughout the District of North Dakota or by holding child abusers accountable in federal court, our career prosecutors and partners in law enforcement are committed to protecting kids and preventing tragic cases like this one.”

    This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Lori H. Conroy and SheraLynn Ternes.

    Previous Press release for co-defendant Kenzie Rose Baker can be seen HERE:

    ######

    MIL Security OSI –

  • MIL-OSI Security: IAEA Concludes Long Term Operation Safety Review at Sweden’s Oskarshamn Nuclear Power Plant

    Source: International Atomic Energy Agency – IAEA

    An International Atomic Energy Agency (IAEA) team of experts today completed a review of long term operational safety of the Oskarshamn Nuclear Power Plant (NPP) Unit 3 in Sweden.

    The Safety Aspects of Long Term Operation (SALTO) review mission was requested by the plant’s operator, OKG Aktiebolag. Oskarshamn Unit 3, situated roughly 300 kilometers south of Stockholm, was put into commercial operation in 1985 with a design life of 40 years. It is equipped with one boiling water reactor and has a net electrical output of 1400 MW(e). The plant operator is preparing to extend the operating lifetime to 60 years. Two other units at the power station are in permanent shutdown. Nuclear power accounts for more than a quarter of Sweden’s electricity production.

    During the ten-day mission from 1 to 10 October, the team reviewed the plant’s preparedness, organization and programmes for safe long term operation (LTO), which built upon an initial IAEA pre-SALTO mission held at the plant in 2022. The mission was conducted by an eleven-person team consisting of experts from Argentina, Belgium, Brazil, Pakistan, Spain, and the United States, as well as three observers from Hungary and the Netherlands, and two IAEA staff members. The team met and discussed topics in depth with staff from the Oskarshamn NPP and conducted site walkdowns during the review.    

    “The team observed that OKG is preparing for safe long term operation and the plant staff are cooperative, professional, and open to suggestions for improvement,” said team leader and IAEA Nuclear Safety Officer Bryce Lehman. “We encourage the plant to address the review findings and implement the remaining activities for safe long term operation as planned.”

    The team identified good performances that will be shared with the nuclear industry globally, including:

    • Reconstitution of design documentation in cooperation with the original equipment manufacturer (OEM) and securing access to the OEM archives for the period of long term operation.
    • Development of a user-friendly database that shows each user their assigned maintenance activities.
    • Regular meetings of experts from different plant departments to share experience, including international experience, and to discuss improvements to the plant for long term operation.

    The team also provided recommendations and suggestions to further improve safe LTO, the most significant are the following:

    • The plant should fully justify LTO through a periodic safety review, or alternative process.
    • The plant should fully establish a comprehensive programme to identify ageing management activities for long term operation.  
    • The plant should properly implement a comprehensive process to identify components requiring ageing management (a scoping process).

    The plant management expressed a determination to maintain the level of preparedness for safe LTO and further cooperate with the IAEA in this field.

    “We appreciate the IAEA’s support to our plant in ageing management and preparation for safe LTO,” said Johan Lundberg, President of OKG. “It is very important for us to get an external view on our business. The competencies and experience of the IAEA team enable it to effectively identify our areas for improvements.  The results of this mission will help us to improve our activities for safe LTO and to further align them with IAEA safety standards.”

    The team provided a draft report to the plant management and to the Swedish Radiation Safety Authority (SSM), the country’s nuclear regulatory authority, at the end of the mission. The plant management and SSM will have an opportunity to make factual comments on the draft. A final report will be submitted to the plant management, SSM and the Swedish Government within three months.

    Background

    General information about SALTO missions can be found on the IAEA Website. A SALTO peer review is a comprehensive safety review addressing strategy and key elements for the safe long term operation of nuclear power plants. They complement OSART missions, which are designed as a review of programmes and activities essential to operational safety. Neither SALTO nor OSART reviews are regulatory inspections, nor are they design reviews or substitutes for an exhaustive assessment of a plant’s overall safety status.

    LTO of nuclear power plants is defined as operation beyond an established time frame determined by the license term, the original plant design, relevant standards, or national regulations. As stated in IAEA safety standards, to maintain a plant’s fitness for service, consideration should be given to life limiting processes and features of systems, structures, and components (SSC), as well as to reasonably practicable safety upgrades to enhance the safety of the plant to a level approaching that of modern plants.

    MIL Security OSI –

  • MIL-OSI Security: Two Russian Nationals Charged for Their Participation in an Illicit Procurement Network That Exported to Russia Sensitive U.S.-Sourced Microelectronics with Military Applications in Violation of U.S. Export Controls

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    Damian Williams, the United States Attorney for the Southern District of New York, James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Jonathan Carson, the Special Agent in Charge of the Office of Export Enforcement of the New York Field Office of the Bureau of Industry and Security of the U.S. Department of Commerce, announced today that ZHANNA SOLDATENKOVA and RUSLAN ALMETOV, both Russian nationals, were indicted along with ARTHUR PETROV, a dual Russian and German national, for export control violations, smuggling, wire fraud, and money laundering in connection with their alleged participation in a scheme to procure U.S.-sourced microelectronics subject to U.S. export controls on behalf of a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military.  PETROV, previously charged in a criminal Complaint, was arrested on August 26, 2023, in the Republic of Cyprus at the request of the U.S. and was extradited from the Republic of Cyprus earlier this year.  He arrived in the Southern District of New York on August 8, 2024, and was ordered detained.  SOLDATENKOVA and ALMETOV are at large.  The case is assigned to U.S. District Judge Alvin K. Hellerstein.

    The indictment can be read here.

    U.S. Attorney Damian Williams said: “Zhanna Soldatenkova and Ruslan Almetov are now charged, alongside previously charged Arthur Petrov, for conspiring to smuggle microelectronics with military applications from U.S. distributors to a Russian company that supplies manufacturers for the Russian military.  This Office is committed to exposing the full breadth of such illicit procurement networks and protecting our national security.”

    Assistant Director in Charge James E. Dennehy said: “Zhanna Soldatenkova and Ruslan Almetova, along with Arthur Petrov, allegedly conspired to evade export laws as members of an illegal international procurement network to help aid the Russian defense industry.  As alleged, by deliberately concealing the true nature of their business, they not only violated the law but ultimately put the national security of our country at risk.  The FBI, in concert with our partners, is determined to protect the United States and will hold accountable anyone attempting to harm our nation.”

    Special Agent in Charge Jonathan Carson said: “As this action demonstrates, we will work with our domestic and international law enforcement partners to charge alleged violators wherever they may be worldwide. Illegal global procurement networks that prop up the Russian war machine will not be tolerated. That’s why we and our law enforcement partners are working nonstop to ensure that those operating such networks face American justice.”

    According to the allegations contained in the Indictment returned in Manhattan federal court:[1]

    PETROV is a dual Russian-German national who previously resided in Russia and Cyprus and worked for LLC Electrocom VPK (“Electrocom”), a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military.  SOLDATENKOVA is a Russian national who has resided in Russia and worked for Electrocom.  ALMETOV is also a Russian national who has resided in Russia and was the co-founder and served as General Director of Electrocom.

    PETROV, SOLDATENKOVA, and ALMETOV operated an illicit procurement network in Russia and elsewhere overseas.  More specifically, they fraudulently procured from U.S. distributors large quantities of microelectronics subject to U.S. export controls on behalf of Electrocom.  To carry out the scheme, PETROV, SOLDATENKOVA, and ALMETOV used shell companies and other deceptive means to conceal that the electronics components were destined for Russia.  The technology that the defendants procured in contravention of export controls had significant military applications and included various types of electronics components of the sort that have been recovered in Russian military hardware on the battlefield in Ukraine, such as Russian guided missiles, drones, and electronic warfare and communications devices.

    To perpetrate the scheme, PETROV first acquired the controlled microelectronics from U.S.-based electronics exporters using a Cyprus-based shell company, Astrafteros Technokosmos LTD (“Astrafteros”), which he operated.  PETROV procured these sensitive electronics components by falsely representing to the U.S. exporters that Astrafteros was purchasing the items for fire security systems, among other commercial uses, and that the ultimate end-users and destinations of the electronics are companies in Cyprus or other third countries — when in fact the components were destined for Electrocom in Russia, which supplies manufacturers for the Russian military.  The microelectronics that PETROV procured as part of the conspiracy included, among other things, microcontrollers and integrated circuits on the Commerce Control List maintained by the Commerce Department and which could not lawfully be exported or reexported to Russia without a license from the Commerce Department.  Invoices provided to PETROV by the U.S. distributors expressly noted that these microcontrollers and integrated circuits were subject to U.S. export controls.

    To evade these controls, PETROV, SOLDATENKOVA, and ALMETOV worked together to transship the controlled items procured by PETROV using pass-through entities operated by SOLDATENKOVA and ALMETOV in third countries.  SOLDATENKOVA and ALMETOV then caused the items to be shipped, sometimes through yet another country, to the ultimate destination: Electrocom in Saint Petersburg, Russia.  At all times, PETROV, SOLDATENKOVA, and ALMETOV concealed from the U.S. distributors that they were procuring the controlled electronics components on behalf of Electrocom and that the items were destined for Russia.  During the course of the conspiracy, PETROV, SOLDATENKOVA, and ALMETOV procured from U.S. distributors and shipped to Russia more than $225,000 worth of controlled electronics components with military applications.

    *                *                *

    A table containing the charges and maximum penalties for PETROV, 35, of Russia and Cyprus, SOLDATENKOVA, 36, of Russia, and ALMETOV, 43, of Russia, is set forth below.  The maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

    Charge

    Defendants

    Maximum Penalties
    Count One:  Conspiracy to defraud the United States (18 U.S.C. § 371) PETROV, SOLDATENKOVA, and ALMETOV 5 years’ imprisonment
    Count Two:  Conspiracy to violate the Export Control Reform Act (“ECRA”) (50 U.S.C. §§ 4819(a)(1), 4819(a)(2)(A)-G), and 4819(b); 15 C.F.R. §§ 736.2(b)(1), 746.8(a)(1), and 764.2) PETROV, SOLDATENKOVA, and ALMETOV 20 years’ imprisonment
    Count Three:  Violation of ECRA (50 U.S.C. §§ 4819(a)(1), 4819(a)(2)(A)-G), and 4819(b); 15 C.F.R. §§ 736.2(b)(1), 746.8(a)(1), and 764.2) PETROV and SOLDATENKOVA 20 years’ imprisonment
    Count Four:  Violation of ECRA (50 U.S.C. §§ 4819(a)(1), 4819(a)(2)(A)-G), and 4819(b); 15 C.F.R. §§ 736.2(b)(1), 746.8(a)(1), and 764.2) PETROV and SOLDATENKOVA 20 years’ imprisonment
    Count Five:  Violation of ECRA (50 U.S.C. §§ 4819(a)(1), 4819(a)(2)(A)-G), and 4819(b); 15 C.F.R. §§ 736.2(b)(1), 746.8(a)(1), and 764.2) PETROV, SOLDATENKOVA, and ALMETOV 20 years’ imprisonment
    Count Six:  Conspiracy to smuggle goods from the United States (18 U.S.C. § 371) PETROV, SOLDATENKOVA, and ALMETOV 5 years’ imprisonment
    Count Seven:  Smuggling goods from the United States (18 U.S.C. §§ 554(a) and 2) PETROV and SOLDATENKOVA 10 years’ imprisonment
    Count Eight:  Smuggling goods from the United States (18 U.S.C. §§ 554(a) and 2) PETROV and SOLDATENKOVA 10 years’ imprisonment
    Count Nine:  Smuggling goods from the United States (18 U.S.C. §§ 554(a) and 2) PETROV, SOLDATENKOVA, and ALMETOV 10 years’ imprisonment
    Count Ten:  Conspiracy to commit wire fraud (18 U.S.C. § 1349) PETROV, SOLDATENKOVA, and ALMETOV 20 years’ imprisonment
    Count Eleven:  Conspiracy to commit money laundering (18 U.S.C. §§ 1956(h), 1956(f)) PETROV, SOLDATENKOVA, and ALMETOV 20 years’ imprisonment

    Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division and the New York Field Office of the Bureau of Industry and Security of the Department of Commerce.  Mr. Williams also thanked the FBI’s Legal Attaché offices in Poland, Germany, and Athens, Greece; the Department of Justice’s National Security Division, Counterintelligence and Export Control Section; the Department of Justice’s Office of International Affairs; the Republic of Cyprus Ministry of Justice and Public Order; and the Law Office of the Republic for their assistance.  The Republic of Cyprus National Police also provided critical assistance in effecting the defendant’s arrest and detention at the request of the U.S.

    This prosecution is coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force.  Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the U.S. has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.  The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.

    This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorney Kevin Sullivan is in charge of the prosecution, with assistance from Trial Attorney Maria Fedor of the Counterintelligence and Export Control Section.

    The charges in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

    [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.

    MIL Security OSI –

  • MIL-OSI Security: Former High-Ranking FDNY Official Pleads Guilty to Bribery Conspiracy

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    Brian Cordasco pleaded guilty to conspiring to solicit and receive bribes in his role as a chief of the New York City Fire Department Bureau of Fire Prevention.

    MIL Security OSI –

  • MIL-OSI Security: California Man Pleads Guilty to Assaulting Law Enforcement with a Weapon and Other Charges During January 6 Capitol Breach

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

              WASHINGTON – A California man pleaded guilty on Oct. 9, 2024, to assaulting law enforcement with a weapon and other charges related to his conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

              Jerry Daniel Braun, 70, of South El Monte, California, pleaded guilty to six felonies, including one count of civil disorder; two counts of assaulting, resisting, or impeding certain officers, including one count involving the use of a deadly or dangerous weapon; one count of entering and remaining in a restricted building or grounds with a deadly or dangerous weapon; one count of disorderly and disruptive conduct in a restricted building or grounds with a deadly or dangerous weapon; and one count of engaging in physical violence in a restricted building or grounds with a deadly or dangerous weapon.

              In addition to the felonies, Braun also pleaded guilty to a misdemeanor charge of disorderly conduct in a Capitol Building or Grounds and one count of committing an act of physical violence in a Capitol Building or Grounds. U.S. District Judge Timothy J. Kelly will sentence Braun on Jan. 27, 2025.

              According to the government’s evidence, Braun traveled from California to Washington, D.C., and attended the “Stop the Steal” near the Ellipse. Braun then made his way toward the Capitol building and arrived in the area near the Garfield Circle around 12:53 p.m. He then entered the restricted area and advanced with a crowd of rioters toward a police line on the West Plaza. Braun then made his way to the front of the crowd of rioters, lowered his head, and pushed with the crowd against the police line.

              At approximately 1:11 p.m., several rioters began to attack the line of police officers and dragged one officer into the mob. There, with the officer and rioters at his feet, Braun twice raised and swung a cane down at the individuals on the ground. Shortly after this incident, Braun approached a line of officers, pointed at them, and shouted, “F— you, traitor!” and “F— traitor. Traitor!” He then yelled, “We pay your f— pay!”

              At about 1:13 p.m., law enforcement reinforcements arrived to expel rioters from the restricted area of the Capitol. In an attempt to control the crowd, authorities established a line of bike rack barricades to push the crowd back. Some in the crowd, including Braun, attempted to wrestle a section of the barricades away from police. Braun then used his cane to strike the bike rack barrier multiple times.

              Later, at about 1:27 p.m., Braun picked up an eight-foot-long wooden 2×4 beam from the West Plaza and began to use the beam to point and thrust at police. On one occasion, Braun turned the beam vertically and used it to thrust into the line of police officers. Braun then used the beam to jab a person holding a camera wearing a helmet labeled “PRESS”. Braun then approached this person and struck them on the head with his left hand before again jabbing them with the beam.  Braun remained inside the restricted perimeter until at least 4:00 p.m.

              The FBI arrested Braun on April 12, 2022, in California.

              The U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section prosecuted this case. The U.S. Attorney’s Office for the Central District of California provided valuable assistance.

              This case was investigated by the FBI’s Los Angeles and Washington Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

              In the 45 months since Jan. 6, 2021, more than 1,532 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 571 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

              Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

    MIL Security OSI –

  • MIL-OSI Security: Massachusetts Man Convicted of Felony and Misdemeanor Charges for Actions During January 6 Capitol Breach

    Source: Federal Bureau of Investigation (FBI) State Crime News

              WASHINGTON – A Massachusetts man was convicted of felony and misdemeanor offenses related to his conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

              Michael St. Pierre, 46, of Swansea, Massachusetts, was found guilty on Oct. 9, 2024, of one felony and three misdemeanor offenses in U.S. District Court for the District of Columbia following a bench trial before U.S. District Court Judge Jia M. Cobb.

              Specifically, St. Pierre was convicted of felony offense of civil disorder and three misdemeanor offenses, including destruction of government property, disorderly conduct on Capitol grounds, and committing an act of physical violence on the Capitol grounds.

              Judge Cobb will sentence St. Pierre on March 14, 2025.

              According to court documents, in the days leading to Jan. 6, 2021, St. Pierre posted on social media regarding his actions and intent for Jan. 6, 2021, in Washington, D.C. In one such post, St. Pierre wrote that he was “off to Washington, DC until Jan 7th to help save our Constitution . . . and hopefully help stop the certification of a crooked, dementia patient who is so deep in China’s pockets it’s insane!!”

              On Jan. 6, 2021, St. Pierre arrived at the Capitol grounds in Washington, D.C., wearing a body armor vest and carrying a megaphone. St. Pierre approached the west side of the Capitol grounds and recorded a video on his phone, which was later posted to his Facebook page. In the video, St. Pierre pointed the camera at the Capitol building and said, “That’s where the meeting ground is. Hopefully they bust through, and I’ll join them, to rush the Capitol and go grab Nancy Pelosi by the hair and f—ing twirl her around.”

              St. Pierre traveled across the west front and climbed on top of a wall of the exterior façade of the West Plaza next to the Northwest stairs. While there, he yelled through his megaphone as the packed crowd filled the steps next to him and the Plaza below. St. Pierre then made his way to the Upper West Terrace and eventually arrived at the North Doors on the northern exterior wall of the Capitol building.

              Here, while the Metropolitan and Capitol Police Officers were outside the North Doors attempting to prevent the crowd from entering the Capitol building, St. Pierre waved the crowd forward towards the Capitol and the outnumbered officers and then pushed on the backs of other rioters who were directly battling with police. While St. Pierre pushed, rioters in front of him sprayed bear spray and used flag poles as clubs and spears against the police officers. Eventually, the crowd charged the officers, and the officers retreated inside of the Capitol building. St. Pierre joined the crowd chasing the officers and cheered on the attack through his megaphone.

              While rioters continued to battle police outside the North Doors, St. Pierre attempted to incite the crowd through his megaphone, saying, “Come on everybody, let’s go everybody, we got to get everybody tight. We got to get tight! Let’s go guys! We are going to storm this bitch!”  At one point, while police attempted to deploy fire extinguisher smoke to clear the area of rioters, St. Pierre threw a metal flagpole top at one of the glass windows in the door while officers were directly behind the doors.

              The FBI arrested St. Pierre on July 27, 2023, in Fall River, Massachusetts.

              The U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section prosecuted this case. The U.S. Attorney’s Office for the District of Massachusetts provided valuable assistance.

              The FBI’s Boston and Washington Field Offices investigated this case. The United States Capitol Police and the Metropolitan Police Department provided valuable assistance.

              In the 45 months since Jan. 6, 2021, more than 1,532 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 571 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

              Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

    MIL Security OSI –

  • MIL-OSI Security: California Man Arrested for Assaulting Law Enforcement and Other Charges During January 6 Capitol Breach

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

                WASHINGTON — A California man has been arrested for allegedly assaulting law enforcement and other charges related to his alleged conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His alleged actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

                Michael Fagundes, 49, of Costa Mesa, California, is charged in an indictment filed in the District of Columbia with three felony offenses, including two counts of assaulting, resisting, or impeding certain officers and one count of obstruction of law enforcement during a civil disorder.

                In addition to the felonies, Fagundes is charged with misdemeanor offenses of entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, engaging in physical violence in a restricted building or grounds, disorderly conduct in a Capitol building, act of physical violence in the Capitol grounds or buildings, and parading demonstrating or picketing in a Capitol building.

                The FBI arrested Fagundes on Oct. 8, 2024, in Costa Mesa, and he made his initial appearance in the Central District of California. 

                According to court documents, Fagundes attempted to attend the former President’s “Stop the Steal” rally on Jan. 6, 2021, in Washington, D.C., but was refused entry. He then made his way toward the U.S. Capitol building and eventually arrived at the Lower West Terrace Tunnel, the site of some of the most violent attacks against law enforcement on that day.

                It is alleged that Fagundes reached the Tunnel entrance at about 2:42 p.m. and donned a gas mask. He then made his way inside the Tunnel and shortly exited before returning and approaching a group of rioters who were attempting to take control of a police riot shield. It is alleged that Fagundes himself took possession of the riot shield from the group and emerged from the Tunnel proudly displaying it over his head. He then tossed the shield onto the ground before making his way back into the Tunnel and toward the police line. Shortly thereafter, the rioters inside the Tunnel began a heave-ho movement against the police line but were quickly forced out of the Tunnel by police.

                As the rioters were forced out, at approximately 3:18 p.m., a Metropolitan Police Department (MPD) officer was forcibly dragged from the police line at the entrance to the Tunnel and into the crowd of rioters. As the rioters attacked the officer, Fagundes shouted and moved in their direction. The crowd then surrounded the officer, and Fagundes allegedly reached toward the officer a few times before grabbing ahold of the officer’s chest and neck and dragging the officer further into the crowd.

                Around 3:50 p.m., it is alleged that Fagundes placed his hand on the handle of an Oleoresin Capsicum (OC) dispenser held up by another rioter and appeared to try and manipulate the trigger or safety mechanism. Immediately after, another rioter took possession of the dispenser and sprayed it into the Tunnel towards the police line. Court documents say that rioters on the Lower West Terrace continued to assault police officers both inside and at the mouth of the Tunnel. Shortly after the OC spray was deployed, the crowd, including Fagundes, pushed their body weight back and forth into the police line in a “heave-ho” motion.

                By about 4:09 p.m., Fagundes picked up a police riot shield near the entrance to the Tunnel and used it to push against other rioters who were pushing against the police line. Approximately two minutes later, at around 4:11 p.m., Fagundes once again made his way towards the front of the mob and reached the police line. There, Fagundes allegedly picked up a police riot shield from the ground, raised his green backpack and the shield directly over his head, stepped toward the police line, and then rapidly dropped the backpack and the shield down in a striking motion in the direction of the officers. The shield and the backpack appeared to make contact with at least one officer.

                Sometime in the afternoon, Fagundes appeared to be on a video call with another individual while he was adjacent to the continued violence against police and immediately next to a broken window that led to the inside of the U.S. Capitol building. Fagundes then appeared to gesture toward the crowd, waving them toward the broken window, and he entered the Capitol. 

             The U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section prosecuted this case. The U.S. Attorney’s Office for the Central District of California provided valuable assistance.

                This case is being investigated by the FBI’s Los Angeles and Washington Field Offices. Fagundes was identified on the FBI’s seeking information images as AFO (Assault on Federal Officer) #527. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

                In the 45 months since Jan. 6, 2021, more than 1,532 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 571 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

                Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

                An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI Security: Two Los Angeles-Area Residents Arrested on Indictment Alleging Scheme to Fraudulently Obtain and Launder Medicare Proceeds

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    LOS ANGELES – A Los Angeles woman and a San Fernando Valley man were arrested today on a 24-count federal grand jury indictment alleging a scheme to defraud Medicare out of more than $54 million via hospice and diagnostic testing services that were never provided and then laundered their illicit proceeds, including by buying millions of dollars’ worth of gold bars and coins.

    Sophia Shaklian, 36, of the Larchmont area of Los Angeles, and Alex Alexsanian, 47, of Burbank, were arrested early this morning. They are scheduled to be arraigned this afternoon in United States District Court in downtown Los Angeles.

    Shaklian is charged with 16 counts of health care fraud and four counts of transactional money laundering. Alexsanian is charged with one count of conspiracy to launder monetary instruments and three counts of concealment money laundering.

    According to the indictment that a federal grand jury returned on October 2, Shaklian, often using aliases, managed and submitted claims for seven health care providers enrolled with Medicare and located in Los Angeles County. These businesses included a hospice company she owned – the Pasadena-based Chateau d’Lumina Hospice and Palliative Care – and several diagnostic testing companies: Saint Gorge Radiology in Sylmar; Hope Diagnostics in North Hollywood; Direct Imaging & Diagnostics and Lab One – both located in Hollywood; and Labtech and Lifescan Diagnostics in Claremont.

    From March 2019 to August 2024, these companies allegedly submitted more than $54 million in fraudulent claims to Medicare for services that were never provided and not needed. In total, they received more than $23 million for those claims. Shaklian allegedly laundered Medicare funds paid to Chateau by transferring them to accounts in the name of “Varsenic Babaian,” a synthetic or fake identity. 

    Alexsanian allegedly directed a foreign national to open Saint Gorge Radiology, and to acquire Medicare provider Console Hospice in Van Nuys, and then provide control of those companies and their bank accounts and the foreign national’s personal bank accounts to Alexsanian.

    Alexsanian conspired with the foreign national (who soon left the country) and others to have Saint Gorge Radiology and Console Hospice submit fraudulent claims to Medicare for services not provided and then laundered the Medicare reimbursements they received, as well as funds deposited into their accounts through the “Babaian” identity, and used them to, among other things, buy more than $6 million in gold bars and coins.

    An indictment contains allegations that a defendant has committed a crime.  Every defendant is presumed innocent until and unless proved guilty beyond a reasonable doubt.

    If convicted of all charges, Shaklian would face a statutory maximum sentence of 10 years in federal prison for each health care fraud count and up to 20 years in federal prison for each money laundering count. Alexsanian would face up to 20 years in federal prison for each count. 

    The United States Department of Health and Human Services Office of the Inspector General and the FBI are investigating this matter.

    Assistant United States Attorney Kristen A. Williams of the Major Frauds Section is prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Security: Ohio Man Pleads Guilty to Felony and Misdemeanor Charges for Actions During January 6 Capitol Breach

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

                WASHINGTON – An Ohio man pleaded guilty on Oct. 8, 2024, to felony and misdemeanor charges related to his conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

                Dustin Martin, 30, of Grove City, Ohio, pleaded guilty to a felony charge of civil disorder and a misdemeanor charge of disorderly and disruptive conduct in a restricted building or grounds before U.S. District Judge Loren L. AliKhan. Judge AliKhan will sentence Martin on Feb. 7, 2025.

                According to court documents, on Jan. 6, 2021, Martin and a friend – Cody Lee Tippett – arrived in Washington, D.C., from Columbus, Ohio, and made their way to the Ellipse to attend the former president’s speech. After the speech, Martin and Tippett walked from the Ellipse to the U.S. Capitol, arriving on the west side of Capitol grounds by at least 1:30 p.m. Martin then approached the Lower West Terrace, where he observed a crowd of people standing across from a line of bike rack barricades and police officers behind them, some dressed in riot gear.

                At approximately l:36 p.m., several rioters in Martin’s vicinity began to push against one of the barricades. As officers fought to prevent rioters from breaking the police line, Martin walked forward and joined with the rioters, leaning forward, bracing himself against those in front of him, and using his body weight to help push the barricade against the police officers on the other side. Court documents say that the group, including Martin, pushed the barricade directly into the officers, forcing them several feet back and requiring a dozen officers to drive the crowd back. The tussle caused Martin to fall, after which he retreated into the crowd.

                Later, at about 1:50 p.m., rioters on the Lower West Terrace pushed a line of police officers up a set of stairs leading to the Upper West Terrace of the Capitol. Other rioters, including Martin and Tippett, followed that group of rioters up onto the stairs. However, another police line prevented the crowd from advancing further up the stairs. At approximately 2:10 p.m., the rioters again pushed past the police line on the steps and gained access to the Capitol building for the first time that day. Martin and Tippett followed.

                At approximately 2:15 p.m., Martin and Tippett entered the Capitol building via the Senate Wing Door. Inside, Martin and Tippett walked to the Crypt and Capitol Visitor’s Center before exiting the building at about 2:57 p.m. Martin and Tippett remained on the Upper West Terrace, the area immediately outside the building, for nearly an hour.

                That day, Martin posted pictures, videos, and written descriptions on Facebook illustrating his participation in the riot at the Capitol. In one post, he included a photo of himself and Tippett inside the Capitol and wrote, “Trump 2021!!!” In another post, he included a photo of himself outside the Capitol and a video of rioters on the Upper West Terrace of the Capitol, writing, “So now I can say I’ve been hit with rubber bullets, bear mace, pepper spray, teargas, and wrestle with Capital Police f— yeah ‘America B— I’ll do it all over again too!”

                The FBI arrested Martin on June 21, 2023, in Ohio.

                Cody Lee Tippet was previously sentenced to 30 days in prison for his role in the events of January 6th.

                The U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section prosecuted this case. The U.S. Attorney’s Office for the Southern District of Ohio provided valuable assistance.

                This case was investigated by the FBI’s Cincinnati and Washington Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

                In the 45 months since Jan. 6, 2021, more than 1,532 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 571 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

                Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

    MIL Security OSI –

  • MIL-OSI Security: Six Defendants Sentenced to Prison for Trafficking Nearly 12 Kilograms of Methamphetamine in Adderall Lookalike Pills Via the Dark Web

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    CINCINNATI – Six Texans convicted as part of a large-scale dark web drug trafficking organization have been sentenced in federal court in Cincinnati.

    According to court documents, from July 2019 through December 2020, the co-conspirators distributed significant quantities of methamphetamine – pressed to look like legitimate Adderall pills – over the dark web. The defendants sold at least 11.98 kilograms total of methamphetamine in pills and laundered between $15,000 and $50,000 per month using cryptocurrency. The group shipped the drugs nationwide, including into the Southern District of Ohio, using the United States Postal Service.

    The defendants used the vendor name “Loverbois,” along with several other usernames, and averaged 20 orders per day.

    Those sentenced in this case include:

    Name Age City of Residence Sentence Imposed
    Hung Ahn Huy Phung 26 Houston, Texas 84 months in prison
    John G. Dang 24 Houston, Texas 75 months in prison
    Bernardo Guzman 31 Houston, Texas 72 months in prison
    Stephanie R. Pray 35 Houston, Texas Five years’ probation
    Kevin Tran 25 Houston, Texas 60 months in prison
    Chazton Harris 29 Houston, Texas 74 months in prison

    Court documents detail that Phung created and ran the Loverbois account(s) for much of the conspiracy period. He took orders online and obtained pills from Tran and Guzman. Phung also coordinated the receipt of cryptocurrency in exchange for the pills and laundered those proceeds.

    Guzman had a pill press and industrial mixer at his apartment in Houston, where Phung also lived for a period of time. Harris also lived in the Houston apartment, where he pressed his own pills for distribution. Pray aided Guzman by helping obtain, pack, and ship the pills.

    Dang packaged pills for shipment and delivery and helped move and launder cryptocurrency. Dang laundered approximately $15,000 per month.

    The Loverbois online drug trafficking organization sold and shipped pills to undercover law enforcement officers in the Southern District of Ohio in a series of transactions.

    A federal grand jury indicted the defendants in June 2021. The final defendant, Kevin Tran, was sentenced on Sept. 30.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio, Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA); Charles L. Grinstead, Special Agent in Charge, U.S. Food and Drug Administration – Office of Criminal Investigations (FDA-OCI), Kansas City Field Office; Lesley C. Allison, Inspector in Charge, United States Postal Inspection Service (USPIS); Mason Police Chief Levi Wells; Houston Police Chief J. Noe Diaz and the Joint Criminal Opioid and Darknet Enforcement (JCODE) team announced the sentences imposed by U.S. District Court Judge Jeffery P. Hopkins. Deputy Criminal Chief Frederic C. “Fritz” Shadley is representing the United States in this case.

    This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, and gangs that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Red Pheasant First Nation — Saskatchewan RCMP responding to robbery with a firearm

    Source: Royal Canadian Mounted Police

    Saskatchewan RCMP are currently responding to a report of a robbery with a firearm on Red Pheasant First Nation. An adult female has been taken to hospital with injuries described as non-life threatening. No other injuries were reported to police.

    Police advise that there are two suspects, a male and a female. They may be armed and are dangerous. The suspects were last seen driving a 2019 Dodge Ram truck, Warlock edition. The truck has the word “O’Brien” or “O’Brian” on the back window and Saskatchewan license plate 716 LWG. We do not have any further description of the suspects at this time.

    Investigators have reason to believe the suspects may be travelling to Saskatoon, but their current whereabouts are unknown. Saskatchewan RCMP continues to investigate.

    We are asking the public to report any suspicious activity or people in the Red Pheasant First Nation and Saskatoon areas to police. If anyone sees the vehicle matching the above description they are asked to contact their local police or police of jurisdiction immediately. Call 9-1-1 in emergencies or 310-RCMP in non-emergencies.

    We will provide an update when we have more information available. If an imminent risk to public safety is identified, we will notify the public.

    Report all information about this incident to your local police by calling 310-RCMP.

    MIL Security OSI –

  • MIL-OSI Security: Emerson — Manitoba RCMP and U.S. Border Patrol host border and migrant safety event

    Source: Royal Canadian Mounted Police

    Manitoba RCMP officers and agents from United States Border Patrol met first in Pembina, North Dakota and then at Emerson, MB to talk about border safety and showcase some of the equipment used in preventing border incursions.

    The border between Canada and the United States is the world’s longest undefended border. The RCMP in Manitoba is responsible for approximately 520 kilometres of shared border. While people and technology are in place on both sides of the border to protect it, people do still cross illegally.

    In Manitoba year-to-date in 2024, there have been 85 apprehensions of illegal northbound crossers. The originating countries of those apprehended include the Republic of Chad, the Republic of Sudan, Guinea, Iraq, Mauritania, Congo, Yemen, Somalia, Saint Helena, Eretria, Cuba, Morocco, Mali, and Brazil.

    In 2023, there were 75 apprehensions of illegal crossers into Manitoba.

    This is a complex issue, as many of the illegal crossers come to Canada to make a refugee claim. More and more, law enforcement is seeing smuggling organizations working to get the migrants across the border without detection. Human smuggling is a real concern.

    “These smugglers are not in the business because they care about the migrants,” said Sergeant Lance Goldau, head of the Manitoba RCMP’s Integrated Border Enforcement Team (IBET). “The smugglers are looking at the bottom line – getting as much money as they can with as little work as possible.”

    The ethos of the least amount of work possible leads many migrants to have to face the actual border crossing alone. They are dropped at a location far from a Port of Entry into Canada, and they are left to fend for themselves with vague directions to connect with someone waiting for them on the other side, creating major safety concerns.

    “Some individuals who are illegally crossing the border between Manitoba, North Dakota and Minnesota are not aware of the extreme weather conditions and geography they may encounter,” said Sgt. Goldau. “This lack of understanding has led to severe injury and death. They have to realize, too, that in extreme weather, even with all of our equipment, chances of a rescue are remote.”

    Both the RCMP and the Grand Forks Sector of the U.S. Border Patrol implore any would-be crossers to enter the country legally, in a way that does not involve risking one’s life.

    “Grand Forks Sector, along with our partners at the Royal Canadian Mounted Police, are committed to educating the public about the dangers of crossing the border illegally; one death is too many,” said Chief Patrol Agent Scott Garrett.

    MIL Security OSI –

  • MIL-OSI Security: Niagara on the Lake — Brampton resident pleads guilty for failing to declare over $227,000 USD at Canadian border

    Source: Royal Canadian Mounted Police

    In early October 2023, two travellers arrived at the Canada Border Services Agency (CBSA) Queenston Bridge port of entry in Niagara-on-the-Lake, Ontario. Both travellers declared that they did not have more than $10,000 cash with them. Upon secondary examination, CBSA officers found $227,453.00 USD concealed in the vehicle. It was determined at the time with the exchange rate to have a value of over $312,200.00 CDN.

    The CBSA seized the currency under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and detained the occupants for suspicion of smuggling under the Customs Act. The RCMP Niagara-on-the-Lake Border Integrity Unit then began a criminal investigation which identified the cash as belonging to the passenger of the car.

    Chandrakant Patel (56) of Brampton was charged with:

    • Fail to declare currency greater than $10,000.00 contrary to Section 12(1) of the PCMLTFA

    On September 9, 2024, Patel pled guilty to the charge.

    The RCMP is committed to working with our partners to protect the residents and communities of Canada. Our collaboration with the CBSA continues to provide positive results for Canada. The RCMP also acknowledges the hard work of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for the detection, prevention and deterrence of money laundering and the financing of terrorist activities.

    “The Niagara-on-the-Lake Border Integrity Program is committed to working with our partners, the CBSA and FINTRAC, on joint concerns and responsibilities. This investigation highlights our dedication to working together to stop money laundering across our country.”

    • Sgt. Lepa Jankovic, Non-commissioned Officer in charge, Niagara-on-the-Lake detachment.

    “Stopping currency obtained through proceeds of crime from crossing borders is part of the commitment of the Canada Border Services Agency to keep our communities safe. This seizure and investigation demonstrates the consequences for smugglers, and those perpetuating the cycle of organized crime.”

    • Christine Durocher, Regional Director General, Canada Border Services Agency, Southern Ontario Region

    Fast facts

    The RCMP Niagara-on-the-Lake Border Integrity Unit is tasked with the prevention and detection of the cross-border smuggling both to and from Canada. This unit supports four CBSA ports of entry by conducting larger criminal investigations that start at the port. The unit is also tasked with protecting the border area between the ports from Cobourg on Lake Ontario to Port Burwell on Lake Erie. The members of the unit will often be found in boats ensuring vessels are complying with reporting requirements when entering Canada.

    The CBSA works closely in an investigative capacity with our law enforcement partners such as the RCMP, and other domestic and international law enforcement partners, to combat the impact that cross border criminal activity is having on our communities.

    If you have any information related to smuggling, drug importation, trafficking, or possession, or wish to report other criminality, you can contact the Ontario RCMP at 1-800-387-0020, the confidential CBSA Border Watch toll-free line at 1-888-502-9060 or anonymously through Crime Stoppers at 1-800-222-8477 (TIPS), at any time.

    MIL Security OSI –

  • MIL-OSI Security: Former Arvin High School Employee Sentenced for Explosives Conspiracy and Making False Statements to FBI

    Source: Federal Bureau of Investigation FBI Crime News (b)

    FRESNO, Calif. — Angelo Jackson Mendiver, 27, of Bakersfield, a former campus security supervisor at Arvin High School, was sentenced today to two years in prison for conspiring to engage in the manufacturing and dealing in explosive materials and for mailing explosive devices, as well as making false statements to FBI agents, U.S. Attorney Phillip A. Talbert announced.

    According to court documents, Mendiver used an Instagram account to sell explosives and explosive materials and worked closely with a male juvenile Bakersfield high school student to fulfill transactions and send explosives in the mail to residents of other states. In Instagram messages to the juvenile, Mendiver sent a photo of titanium salute, an explosive device, followed by two videos of homemade explosive devices that he had made and the statement that “homemade kills all consumer.” He also advised the juvenile to be “super careful bro that homemade shit is dangerous.” On June 1, 2023, a federal search warrant executed at Mendiver’s residence resulted in the seizure of 536 pounds of uncontained explosives and explosive materials, which presented an extreme safety hazard to the residents. Agents seized another 440 pounds of uncontained explosives and explosive materials from the juvenile’s residence. At both residences, agents also found items used to make explosives.

    Mendiver also falsely stated to FBI agents that he did not sell explosives and did not work with anyone in committing explosives offenses.

    The juvenile co-conspirator’s case is being handled by the Kern County District Attorney’s Office.

    This case was the product of an investigation by the FBI with assistance from the Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Three Indicted in Conspiracy to Commit Bank Robberies in the Eastern District of California and the East Bay

    Source: Federal Bureau of Investigation FBI Crime News (b)

    SACRAMENTO, Calif. — On Sept. 26, 2024, a federal grand jury returned a five-count indictment against Dontae Jones Jr., 20, and Yasmin Millett, 21, both residing in Northern California with no fixed address, and JoMya Mauriyne Futch, 21, of Richmond, charging them with conspiracy to commit bank robbery and bank robbery, U.S. Attorney Phillip A. Talbert announced. Futch was additionally charged with one count of perjury.

    The indictment was unsealed today following the defendants’ arrests.

    According to court documents, between June 2023 and September 2024, Jones and Millett conspired to commit at least 10 bank robberies in Sacramento, Vallejo, Suisun City, Benicia, Concord, and Antioch. Jones and Millett worked together and with others, primarily women they recruited, such as Futch, to facilitate a patterned series of bank robberies. The participants drove to bank and credit union branches, entered the branches with threatening notes demanding money, presented the notes to branch employees, took cash, and exited the branches to a waiting getaway car. Generally, the notes would instruct the bank employees to provide money or “I will kill everyone in here.” On at least one occasion, a woman was held at gunpoint and forced to commit a robbery by Jones and Millett against her will. On another occasion, Jones and Millett used a minor in an attempted robbery. After a successful robbery, the members of the conspiracy distributed the stolen money amongst themselves.

    Jones and Millett actively sought and groomed recruits to act as the note passers. Millett advertised the conspiracy on Instagram in videos and photographs of herself and other participants holding large amounts of cash. Jones and Millett sometimes directed recruits to wear dark sunglasses during the robberies to conceal their identities and carry purses in order to carry the stolen money away from the banks and credit unions.

    Futch joined the conspiracy and conspired to commit at least two bank robberies. She is additionally charged with perjury. On Aug. 15, 2024, Futch appeared as a witness under oath before a grand jury and knowingly made false statements.

    This case is the product of an investigation by FBI field offices in San Francisco and Sacramento, with assistance from the Sacramento Police Department, Vacaville Police Department, Suisun City Police Department, Vallejo Police Department, Antioch Police Department, Alameda County Sheriff’s Office, Benicia Police Department, Concord Police Department, California Highway Patrol, Hayward Police Department, and Fremont Police Department. Assistant U.S. Attorney Whitnee Goins is prosecuting the case.

    If convicted of conspiracy to commit bank robbery, the defendants face a maximum statutory penalty of five years in prison and a fine up to $250,000. The bank robbery counts carry a maximum statutory penalty of 20 years in prison and a $250,000 fine. Futch faces a maximum penalty of five years in prison and a $250,000 fine if she is convicted of perjury. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

    MIL Security OSI –

  • MIL-OSI Security: Halifax Regional Municipality — RCMP warning of cryptocurrency investment scam

    Source: Royal Canadian Mounted Police

    RCMP Halifax Regional Detachment is warning the public about a cryptocurrency investment scam reported in the Halifax Regional Municipality.

    On October 2, RCMP officers learned that a man interacted with a woman through social media platforms and was convinced to invest into a cryptocurrency app. The victim was defrauded of more than $400,000.

    With the introduction of cryptocurrencies, these scams are becoming more common and harder to detect.

    RCMP officers stress the importance of due diligence when considering investment opportunities. You can protect yourself by following these tips:

    • Be cautious: Be wary of anyone offering high-reward, low-risk investment opportunities. If it’s too good to be true, it’s probably a scam.
    • Do your research: Take the time to investigate an investment opportunity. Anyone who trades or advises on securities in Nova Scotia must be registered with the Nova Scotia Securities Commission (NSSC). If someone isn’t registered with the NSSC or another Canadian securities regulator, it’s likely they’re a scammer.
    • Get advice: Remember that cryptocurrencies are currently unregulated in Canada and don’t have the same fraud protection as credit cards, nor are they covered by the Canada Deposit Insurance Corp. Always use well-known and reputable exchanges to purchase cryptocurrency. When in doubt, seek advice from a reputable financial institution.

    If you or someone you know is a victim of investment fraud, report it to your local police and the Canadian Anti-Fraud Centre.

    File #: 24-135214

    MIL Security OSI –

  • MIL-OSI Security: York County Judge Indicted for Fraud, Tampering with a Witness, and Obstruction of Justice

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Steven Stambaugh, age 61, of York, Pennsylvania, was indicted by a federal grand jury in a 31-count indictment with wire and mail fraud, as well as witness tampering and obstruction of justice.

    According to United States Attorney Gerard M. Karam, the indictment charges Stambaugh with twenty-six counts of wire fraud, two counts of mail fraud, two counts of tampering with a witness, and one count of obstruction of justice.  It is alleged that from March 19, 2020 to on or about May 18, 2020, Stambaugh devised a scheme to defraud the Commonwealth of Pennsylvania to obtain money through materially false and fraudulent pretenses, representations, and promises.  The indictment charges that Stambaugh instructed his employees to file and collect unemployment compensation benefits with the Commonwealth of Pennsylvania during the COVID-19 pandemic, while at the same time directing and requiring his employees to continue working for Stambaugh Law, P.C.  In furtherance of the scheme to defraud, it is alleged that Stambaugh caused the use of interstate wire communications, as well as the delivery of mail matter via interstate mail deliveries.

    The indictment further alleges that beginning in April 2021 through November 2022, Stambaugh attempted to intimidate and corruptly persuade a government witness to offer false testimony before a federal grand jury and to lie to federal law enforcement officers, and also attempted to obstruct justice while serving as a judicial officer for the Pennsylvania Court of Common Pleas for York County.

    “An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving unemployment insurance programs. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to investigate these types of allegations,” stated Syreeta Scott, Special Agent-in-Charge, Mid-Atlantic Region, U.S. Department of Labor, Office of Inspector General.

    “As alleged, the defendant orchestrated a scheme that defrauded the Commonwealth of unemployment benefits designed to provide relief amid the COVID-19 pandemic, and to further this fraud, sought to mislead federal investigators,” said Wayne A. Jacobs, special agent in charge of FBI Philadelphia. “The FBI will continue to work alongside partners to protect the integrity of these programs, investigate allegations of fraud, and bring those who engage in these schemes to justice.”

    The charges stem from a joint investigation involving the U.S. Department of Labor – Office of Inspector General (USDOL-OIG), and the Federal Bureau of Investigation (FBI) – Harrisburg. Assistant United States Attorneys Michelle Olshefski and Sean Camoni are prosecuting the case.

    The maximum penalty under federal law for mail/wire fraud and witness tampering is 20 years of imprisonment.  The maximum penalty for obstruction of justice is 10 years of imprisonment.  A term of supervised release follows any term of imprisonment and a fine.   A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

    Indictments are only allegations.  All persons charged are presumed to be innocent unless and until found guilty in court.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Former City of Pittsburgh Building Inspector Sentenced for Accepting Bribes From Developer

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 18 months of probation, including 90 days of home confinement, a $1,375 forfeiture, and a $1,500 fine on his conviction for bribery, United States Attorney Eric G. Olshan announced today.

    Chief United States District Judge Mark R. Hornak imposed the sentence on Walter Eiseman, 59.

    According to information provided to the Court, Eiseman was a building inspector for the City of Pittsburgh, where he was responsible for performing inspections of properties that were the subject of applications for certificates of occupancy. In 2018, a developer was working on a project to redevelop a commercial building in downtown Pittsburgh as luxury apartments and hotel rooms. As part of the financing for the project, the developer sought a historical tax credit, which would only be granted after the developer obtained a temporary certificate of occupancy for one of the project’s floors by the end of December 2018. As part of his guilty plea, Eiseman admitted performing inspections on two floors of the project during the month of December, which resulted in a temporary certificate of occupancy being issued. In return for such official action, Eiseman accepted home appliances from the developer, which were delivered in early January 2019. Eiseman also admitted that he solicited a set of kitchen cabinets from the developer, which were ordered but ultimately not delivered to Eiseman’s residence.

    Assistant United States Attorney Jeffrey R. Bengel prosecuted this case on behalf of the government.

    U.S. Attorney Olshan commended the Federal Bureau of Investigation for the investigation that led to the successful prosecution of Eiseman.

    MIL Security OSI –

  • MIL-OSI Security: Drug Maker Teva Pharmaceuticals Agrees to Pay $450M in False Claims Act Settlement to Resolve Kickback Allegations Relating to Copayments and Price Fixing

    Source: United States Department of Justice Criminal Division

    Teva Pharmaceuticals USA Inc. (Teva USA) and Teva Neuroscience Inc. (collectively, Teva) have agreed to pay $450 million to resolve two matters that allege Teva violated the Anti-Kickback Statute (AKS) and the False Claims Act (FCA). Teva, headquartered in Parsippany, New Jersey, is the largest generic drug manufacturer in the United States. The settlement amount was based on Teva’s ability to pay.

    “Kickbacks designed to induce referrals or purchases of healthcare goods or services distort physician and patient decision-making, thwart competition and bypass controls put in place to protect federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing those who engage in kickback violations, including drug manufacturers, to ensure that federal health care programs continue to serve the interests of taxpayers and program beneficiaries.”

    The settlement encompasses two alleged kickback schemes. First, Teva has agreed to resolve allegations in a complaint the United States filed in the District of Massachusetts in August 2020 that Teva violated and conspired to violate the AKS and FCA by paying Medicare patients’ cost sharing obligations (copays) for the multiple sclerosis drug Copaxone from 2006 through 2017, while steadily raising Copaxone’s price. In particular, the United States alleged that Teva coordinated and conspired with multiple third parties, including a specialty pharmacy and two allegedly independent copay assistance foundations, to ensure that purported donations to the foundations were used specifically to cover the copays of Medicare Copaxone patients, which Teva knew was prohibited by the AKS, and that Teva thereby caused the submission of false claims to Medicare.

    Second, Teva USA has agreed to resolve separate allegations that it conspired with other generic drug manufacturers to fix prices for pravastatin, a drug widely used to treat high cholesterol and triglyceride levels, as well as two other generic drugs, clotrimazole and tobramycin. Teva USA previously entered into a deferred prosecution agreement with the Justice Department’s Antitrust Division to resolve related criminal charges. Teva USA paid a criminal penalty of $225 million and admitted to conspiring with three other generic drug companies to fix prices on certain generic drugs. Under the civil settlement announced today, Teva agreed to resolve allegations that the benefits it received under its price fixing scheme constituted illegal kickbacks.

    Teva will pay collectively $450 million to resolve the two kickback schemes. This payment is in addition to the criminal penalty paid by Teva USA under its deferred prosecution agreement. 

    “Kickback arrangements by pharmaceutical companies escalate the costs for critical drugs used by our citizens and federal health care programs,” said U.S. Attorney Jacqueline Romero for the Eastern District of Pennsylvania. “My office is proud to work with the rest of the Department of Justice and our investigative partners to enforce federal laws prohibiting kickback arrangements. We will continue to take action to lower the drug costs for our country and its health care programs supporting senior citizens, our military service members and others.”

    “For far too long, Teva gamed the charitable foundation process by paying kickbacks through two foundations, and with the aid of a specialty pharmacy. Those kickbacks undermined the purpose of the Medicare co-pay system and violated the Anti-Kickback Statute,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “This office has taken the leading role in cracking down on these highly lucrative schemes that drive up the cost of essential drugs by bringing multiple enforcement actions that have returned more than $1 billion to the Medicare system. We will continue to pursue these actions to ensure that all pharmaceutical companies play by the rules and to protect the American taxpayers.

    “The Medicare program’s copay structure serves as a safeguard against the artificial inflation of drug prices. When a pharmaceutical company manipulates drug prices through collusion, or disguises kickbacks as charitable donations to subsidize copays for its own drugs, the integrity of the Medicare program is jeopardized,” said Assistant Inspector General for Investigations Adam Globerman of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This type of conduct is unacceptable, and HHS-OIG remains committed to thoroughly pursuing allegations of price fixing and kickbacks that put the Medicare program at risk.”

    “The Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General, seeks to protect the integrity of TRICARE, the healthcare system for U.S. military members and their dependents,” said Special Agent in Charge Patrick J. Hegarty of DCIS Northeast Field Office. “When pharmaceutical corporations artificially inflate prices, they place an unnecessary financial burden on the TRICARE program. The settlement agreement announced today demonstrates our commitment to partner with investigative agencies and the Department of Justice, including the Civil Division and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, to combat healthcare fraud.”

    Since 2017, the United States has collected over $1 billion, in addition to today’s settlement, from pharmaceutical companies that allegedly used third-party foundations as conduits to unlawfully pay patient copays. The department has also reached settlements with four foundations and a specialty pharmacy pertaining to those allegations. Today’s resolution with Teva is the largest of these settlements to date. The settlement of Teva’s price fixing conduct is the seventh pertaining to allegations of price fixing involving generic drugs, with total recoveries exceeding $500 million.

    The government’s pursuit of these matters illustrates the department’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800‑HHS‑TIPS (800-447-8477).

    The resolution of the patient copay matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and U.S. Attorney’s Office for the District of Massachusetts, with investigative support from HHS-OIG and the FBI.

    Attorneys Douglas Rosenthal and Nelson Wagner of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Abraham R. George, Diane Seol and Evan Panich for the District of Massachusetts handled the matter.

    The civil resolution of the price fixing matter was the result of a coordinated effort between the Fraud Section and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with investigative support from HHS-OIG, the Defense Health Agency Program Integrity Office, DCIS and Office of Inspector General for the Department of Veterans Affairs.

    Senior Trial Counsel Jennifer L. Cihon and Senior Litigation Counsel Laurie A. Oberembt of the Civil Division and Assistant U.S. Attorneys Landon Y. Jones III, Rebecca S. Melley and Anthony D. Scicchitano for the Eastern District of Pennsylvania handled the matter. Fraud Section financial analyst Sheryl Paynter provided support for both matters.

    The civil action in Massachusetts is captioned United States v. Teva Pharmaceuticals USA, Inc. et al., No. 20-cv-11548 (DMA).  

    DMA Settlement

    EDPA Settlement

    MIL Security OSI –

  • MIL-OSI Security: Justice Department Concurs with Federal Trade Commission’s Changes to Premerger Notification Form Used in Merger Review

    Source: United States Department of Justice Criminal Division

    The Justice Department’s Antitrust Division announced today its concurrence with the Federal Trade Commission (FTC)’s unanimous vote to finalize changes to the premerger notification form and associated instructions, as well as to the premerger notification rules implementing the Hart-Scott-Rodino (HSR) Act.

    The final rule, which was adopted after a rigorous public comment process, marks the first large-scale material update to the HSR form since it was first established in 1978. The rule will address critical gaps in the information available to the Justice Department and the FTC (the Agencies) when they review merger filings, making the Agencies’ initial review more efficient and effective. In response to public comment on the proposed rule, the final rule contains many changes aimed at reducing the burden on parties while still improving the information the Agencies receive to help streamline initial merger review.

    “Access to better information at the beginning of the merger review process ensures that the antitrust agencies can devote our resources to the most important issues and reduces the burden on filers, third parties, and other market participants,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “I’m grateful to the Commissioners who have worked diligently to evaluate the public comments to develop the excellent rule.”

    Under the HSR Act, parties to certain mergers and acquisitions are required to submit premerger notification forms that disclose certain information about their proposed deal and business operations. The Agencies use this information to conduct a premerger assessment in the short time allowed under the HSR Act, typically 30 days, to determine which transactions may violate the antitrust laws, and thus require additional review.

    The requests added to the HSR form reflect the dramatic changes over the past four decades in global markets and in how mergers and acquisitions are conducted. These additions include:

    • Requiring parties to submit transaction-related documents prepared by or for the supervisory leader of the deal team;
    • Requiring parties to describe their principal categories of products and services as reflected in the parties’ ordinary course business documents;
    • Requiring disclosure of additional information about the buyer’s officers, directors, and investors, including those with management rights over the firm; and
    • Ensuring the Agencies have access to translations of all documents submitted in a language other than English.

    This additional information will enable the Agencies to streamline their initial reviews and make decisions more quickly. In some circumstances, it will allow the Agencies to evaluate a merger without opening a preliminary investigation or seeking additional information through a second request. In this way, the final rule complements the FTC’s decision to lift its temporary suspension on early termination of HSR filings. When additional information is necessary to review a merger, the final rule will enable the Agencies to issue more targeted requests, reducing the time and effort required to respond. Under the prior form, the Agencies routinely had to rely on third parties, many of whom were small businesses, to fill in informational gaps. By helping to fill some of these gaps, the final rule can alleviate the burden on third parties as well.

    The new information required by the final rule is already within the possession of the filing parties. The rule was carefully structured to provide the Agencies with important additional factual and documentary information that is readily available to the merging parties. Moreover, the Agencies carefully reviewed the hundreds of public comments filed in response to the proposed rule and made substantial changes to reduce the burden on merging parties. The final rule differs from the proposed rule in many ways, including among other things, eliminating the requirements to:

    • Submit preliminary drafts of deal-related documents;
    • Collect and produce ordinary course documents from people who report directly to the CEO;
    • Provide information about employees’ commuting zones and occupation classifications;
    • Report prior acquisitions that are more than five years old or involve entities with less than $10 million in sales or revenue; and
    • Certify that the filer took steps to preserve documents.

    These changes eliminated substantial costs to filing parties while ensuring that the Agencies will receive the additional information they require to more effectively and efficiently review merger filings.

    The final rule will be effective 90 days after it is published in the Federal Register.

    MIL Security OSI –

  • MIL-OSI Security: TD Bank Pleads Guilty to Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B Resolution

    Source: United States Department of Justice Criminal Division

    WASHINGTON — TD Bank N.A. (TDBNA), the 10th largest bank in the United States, and its parent company TD Bank US Holding Company (TDBUSH) (together with TDBNA, TD Bank) pleaded guilty today and agreed to pay over $1.8 billion in penalties to resolve the Justice Department’s investigation into violations of the Bank Secrecy Act (BSA) and money laundering. 

    TDBNA pleaded guilty to conspiring to fail to maintain an anti-money laundering (AML) program that complies with the BSA, fail to file accurate Currency Transaction Reports (CTRs), and launder money. TDBUSH pleaded guilty to causing TDBNA to fail to maintain an AML program that complies with the BSA and to fail to file accurate CTRs.

    TD Bank’s guilty pleas are part of a coordinated resolution with the Board of Governors of the Federal Reserve Board (FRB), as well as the Treasury Department’s Office of the Comptroller of the Currency (OCC) and Financial Crimes Enforcement Network (FinCEN).

    “By making its services convenient for criminals, TD Bank became one,” said Attorney General Merrick B. Garland. “Today, TD Bank also became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures, and the first US bank in history to plead guilty to conspiracy to commit money laundering. TD Bank chose profits over compliance with the law — a decision that is now costing the bank billions of dollars in penalties. Let me be clear: our investigation continues, and no individual involved in TD Bank’s illegal conduct is off limits.”

    “For years, TD Bank starved its compliance program of the resources needed to obey the law. Today’s historic guilty plea, including the largest penalty ever imposed under the Bank Secrecy Act, offers an unmistakable lesson: crime doesn’t pay — and neither does flouting compliance,” said Deputy Attorney General Lisa Monaco. “Every bank compliance official in America should be reviewing today’s charges as a case study of what not to do. And every bank CEO and board member should be doing the same. Because if the business case for compliance wasn’t clear before — it should be now.”

    “For nearly a decade, TD Bank failed to update its anti-money laundering compliance program to address known risks. As bank employees acknowledged in internal communications, these failures made the bank an ‘easy target’ for the ‘bad guys.’ These failures also allowed corrupt bank employees to facilitate a criminal network’s laundering of tens of millions of dollars,” said Principal Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “U.S. financial institutions are the first line of defense against money laundering and illicit finance. When they participate in crime rather than prevent it, we will not hesitate to hold them accountable to the fullest extent of the law.” 

    “TD Bank prioritized growth and convenience over following its legal obligations,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “As a result of staggering and pervasive failures in oversight, it willfully failed to monitor trillions of dollars of transactions – including those involving ACH transactions, checks, high-risk countries, and peer-to-peer transactions – which allowed hundreds of millions of dollars from money laundering networks to flow through the bank, including for international drug traffickers. The bank was aware of these risks and failed to take steps to protect against them, including for two networks prosecuted in New Jersey and elsewhere – one that dumped piles of cash on the bank’s counters and another that allegedly withdrew amounts from ATMs 40 to 50 times higher than the daily limit for personal accounts.”

    According to court documents, between January 2014 and October 2023, TD Bank had long-term, pervasive, and systemic deficiencies in its U.S. AML policies, procedures, and controls but failed to take appropriate remedial action. Instead, senior executives at TD Bank enforced a budget mandate, referred to internally as a “flat cost paradigm,” requiring that TD Bank’s budget not increase year-over-year, despite its profits and risk profile increasing significantly over the same period. Although TD Bank maintained elements of an AML program that appeared adequate on paper, fundamental, widespread flaws in its AML program made TD Bank an “easy target” for perpetrators of financial crime.

    Over the last decade, TD Bank’s federal regulators and TD Bank’s own internal audit group repeatedly identified concerns about its transaction monitoring program, a key element of an appropriate AML program necessary to properly detect and report suspicious activities. Nonetheless, from 2014 through 2022, TD Bank’s transaction monitoring program remained effectively static, and did not adapt to address known, glaring deficiencies; emerging money laundering risks; or TD Bank’s new products and services. For years, TD Bank failed to appropriately fund and staff its AML program, opting to postpone and cancel necessary AML projects prioritizing a “flat cost paradigm” and the “customer experience.”

    Throughout this time, TD Bank intentionally did not automatically monitor all domestic automated clearinghouse (ACH) transactions, most check activity, and numerous other transaction types, resulting in 92% of total transaction volume going unmonitored from Jan. 1, 2018, to April 12, 2024. This amounted to approximately $18.3 trillion of transaction activity. TD Bank also added no new transaction monitoring scenarios and made no material changes to existing transaction monitoring scenarios from at least 2014 through late 2022; implemented new products and services, like Zelle, without ensuring appropriate transaction monitoring coverage; failed to meaningfully monitor transactions involving high-risk countries; instructed stores to stop filing internal unusual transaction reports on certain suspicious customers; and permitted more than $5 billion in transactional activity to occur in accounts even after the bank decided to close them.

    TD Bank’s AML failures made it “convenient” for criminals, in the words of its employees. These failures enabled three money laundering networks to collectively transfer more than $670 million through TD Bank accounts between 2019 and 2023. Between January 2018 and February 2021, one money laundering network processed more than $470 million through the bank through large cash deposits into nominee accounts. The operators of this scheme provided employees gift cards worth more than $57,000 to ensure employees would continue to process their transactions. And even though the operators of this scheme were clearly depositing cash well over $10,000 in suspicious transactions, TD Bank employees did not identify the conductor of the transaction in required reports. In a second scheme between March 2021 and March 2023, a high-risk jewelry business moved nearly $120 million through shell accounts before TD Bank reported the activity. In a third scheme, money laundering networks deposited funds in the United States and quickly withdrew those funds using ATMs in Colombia. Five TD Bank employees conspired with this network and issued dozens of ATM cards for the money launderers, ultimately conspiring in the laundering of approximately $39 million. The Justice Department has charged over two dozen individuals across these schemes, including two bank insiders. TD Bank’s plea agreement requires continued cooperation in ongoing investigations of individuals.

    As part of the plea agreement, TD Bank has agreed to forfeit $452,432,302.00 and pay a criminal fine of $1,434,513,478.40, for a total financial penalty of $1,886,945,780.40. TD Bank has also agreed to retain an independent compliance monitor for three years and to remediate and enhance its AML compliance program. TD Bank has separately reached agreements with the FRB, OCC, and FinCEN, and the Justice Department will credit $123.5 million of the forfeiture toward the FRB’s resolution.

    The Justice Department reached its resolution with TD Bank based on a number of factors, including the nature, seriousness, and pervasiveness of the offenses, as a result of which TD Bank became the bank of choice for multiple money laundering organizations and criminal actors and processed hundreds of millions of dollars in money laundering transactions. Although TD Bank did not voluntarily disclose its wrongdoing, it received partial credit for its strong cooperation with the Department’s investigation and the ongoing remediation of its AML program. TD Bank did not receive full credit for its cooperation because it failed to timely escalate relevant AML concerns to the Department during the investigation. Accordingly, the total criminal penalty reflects a 20% reduction based on the bank’s partial cooperation and remediation.

    IRS Criminal Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and Drug Enforcement Administration investigated the case. The Morristown Police Department, U.S. Attorney’s Office for the District of Puerto Rico, Homeland Security Investigations, U.S. Customs and Border Protection, and New York City Police Department provided substantial assistance.

    Trial Attorneys D. Zachary Adams and Chelsea R. Rooney of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Mark J. Pesce and Angelica Sinopole for the District of New Jersey prosecuted the case.

    MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. Since its creation in 2010, the Bank Integrity Unit has prosecuted financial institutions for violations of the BSA, money laundering, sanctions, and other laws, imposing total penalties of over $25 billion.

    This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at http://www.justice.gov/OCDETF.

    MIL Security OSI –

  • MIL-OSI Security: Defense News: Secretary of the Navy Del Toro Champions Small Business Partnerships at San Francisco Fleet Week

    Source: United States Navy

    SAN FRANCISCO, CA – October 10, 2024 – Secretary of the Navy Carlos Del Toro addressed a gathering of small business leaders during San Francisco Fleet Week, emphasizing the vital role they play in supporting the U.S. Navy and Marine Corps today.

    The event, titled “Breaking Barriers: A Department of the Navy & SBA Partnership for Small Business Success,” was held at the San Francisco SBA Business Office and brought together representatives from the San Francisco Chamber of Commerce, regional APEX Accelerators, the National Defense Industrial Association, and other key stakeholders.

    Secretary Del Toro highlighted the Department of the Navy’s commitment to small business partnerships, noting that contracts worth $526 million have been awarded to small businesses located within 50 miles of San Francisco. He cited examples of successful collaborations, such as a $2.89 million contract with Atomic, a Pleasanton-based small business, for the development of advanced tactical atomic clocks, and a $451,000 contract with Arize AI, a Berkeley-based small business, for AI machine learning technology to enhance underwater threat detection.

    “From my vantage point as Secretary of the Navy, a healthy, diverse industrial base made up of companies of all sizes—founded by American entrepreneurs from all walks of life—is absolutely crucial to the success of our Navy and our Marine Corps,” said Secretary Del Toro.

    The Secretary underscored the importance of small businesses in providing critical capabilities and services to support Sailors, Marines, and civilians stationed around the globe. He emphasized the need for innovation and technological advancements in areas such as artificial intelligence, machine learning, cybersecurity, and unmanned systems to maintain the Navy’s maritime dominance.

    “We—along with our international partners and allies—are facing challenges across the globe,” said the Secretary. “Addressing these threats requires a whole-of-nation commitment to ensuring we have a strong Navy and Marine Corps that can defend our interests on a global scale.”

    The Secretary’s remarks were followed by a small business roundtable discussion, where he engaged with entrepreneurs and industry leaders to discuss opportunities for collaboration and address the unique needs of small businesses in the defense sector. He encouraged businesses to connect with the Department of the Navy’s Office of Small Business Programs (OSBP) for guidance and support in navigating the federal procurement process.

    In the evening, Secretary Del Toro attended the “Honor Our Fallen” concert at the Herbst Theater in the San Francisco War Memorial Building. The concert, hosted by The Center for Humanitarian Assistance, featured a performance by the U.S. Marine Corps 1st Marine Division Band and honored the fallen service men and women of the Afghanistan and Iraq conflicts. A private reception followed to thank attending Gold Star families.

    About the U.S. Department of the Navy Office of Small Business Programs:

    The U.S. Department of the Navy Office of Small Business Programs maximizes opportunities for small businesses in Navy contracts, ensuring they are integrated into the Navy’s acquisition process.

    (https://www.secnav.navy.mil/smallbusiness)

    MIL Security OSI –

  • MIL-OSI Security: Defense News: Readout of Chief of Naval Operations Adm. Lisa Franchetti’s Meeting with Chief of the Royal Danish Navy Rear Adm. Henrik Ryberg

    Source: United States Navy

    VENICE, Italy – Chief of Naval Operations Adm. Lisa Franchetti met Admiral Danish Fleet Rear Adm. Henrik Ryberg for a formal bilateral engagement during the 14th Trans-Regional Seapower Symposium in Venice, Italy, today.

    During the meeting the leaders expressed their shared commitment to maritime security in the High North, Baltic Sea, Red Sea, and Atlantic region. They discussed future opportunities to strengthen their naval partnership and increase interoperability with an emphasis on anti-submarine warfare.

    Franchetti thanked Ryberg for the Royal Danish Navy’s support to recent U.S. Navy submarine and destroyer visits to ports within the Kingdom of Denmark, as well as Royal Danish Navy participation in multilateral exercises, including Steadfast Defender.   

    The CNO also discussed her recently-released strategic guidance: the Navigation Plan for America’s Warfighting Navy, specifically stressing capability development for long-term advantage and the integrated warfighting ecosystem. The leaders noted the importance exchange opportunities to train together in the future.

    The U.S. and Denmark are founding members of NATO, and the alliance between the two nations is critical to the security and stability in Europe and across the globe.

    MIL Security OSI –