NewzIntel.com

Category: Taxation

  • MIL-OSI Australia: Advice under development – GST issues

    Source:

    [4095] Cross-border supplies [updated]

    Title

    Finalisation of Goods and Services Tax Ruling GSTR 2005/6 Goods and services tax: the scope of subsection 38-190(3) and its application to supplies of things (other than goods or real property) made to non-residents that are GST-free under item 2 of the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999

    Purpose

    This Ruling is being updated and modernised to reflect changes to subsection 38-190(3) of the A New Tax System (Goods and Services Tax) Act 1999 made by the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016 (SLA Act). The changes impact how goods and services tax (GST) applies to cross-border supplies. Schedule 2 of the SLA Act (generally about business-to-business supplies) applies from 1 October 2016.

    Expected completion

    To be advised

    Comments

    The draft update to GSTR 2005/6 published on 26 March 2025. Comments period closes on 9 May 2025.

    Contact

    Katrina Bond, International, Support and Programs

    Phone: (03) 8792 1539

    Katrina.Bond@ato.gov.au

    Title

    Finalisation of Goods and Services Tax Ruling GSTR 2007/2 Goods and services tax: in the application of paragraph (b) of item 3 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 to a supply, when does ‘effective use or enjoyment’ of the supply ‘take place outside Australia’?

    Purpose

    This Ruling is being updated and modernised to incorporate amendments made by the SLA Act. The changes impact how GST applies to cross-border supplies. Schedule 1 of the SLA Act (about business to consumers supplies) applies from 1 July 2017 and Schedule 2 of the SLA Act (generally about business-to-business supplies) applies from 1 October 2016.

    Expected completion

    To be advised

    Comments

    The draft update to GSTR 2007/2 published on 26 March 2025. Comments period closes on 9 May 2025.

    Contact

    Katrina Bond, International, Support and Programs

    Phone: (03) 8792 1539

    Katrina.Bond@ato.gov.au

    [4125] Food of a kind marketed as prepared meals

    Title

    Final Goods and Services Tax Determination

    Food of a kind marketed as a prepared meal

    Purpose

    This Determination will outline the Commissioner’s view on the meaning of ‘food of a kind marketed as a prepared meal’ by reference to key concepts referred to in the Federal Court decision in Simplot Australia Pty Limited v Commissioner of Taxation [2023] FCA 1115.

    Comments

    Revised Draft Goods and Services Tax Determination GSTD 2024/D3 Goods and services tax: supplies of food of a kind marketed as a prepared meal published on 16 October 2024. Comments period closed 15 November 2024.

    Draft Goods and Services Tax Determination GSTD 2024/D1 Goods and services tax: supplies of food of a kind marketed as a prepared meal, which published on 27 March 2024, has been withdrawn.

    Expected completion

    To be advised

    Contact

    Jo Drum, International, Support and Programs

    Phone: (03) 8792 1469

    Jo.Drum@ato.gov.au

    [4130] Supplies of sunscreen

    Title

    Final Goods and Services Tax Determination

    Supplies of sunscreen

    Purpose

    This Determination sets out the Commissioner’s preliminary view on when a supply of a sunscreen preparation is GST-free under subsection 38-47(1) of the A New Tax System (Goods and Services Tax) Act 1999. Draft Goods and Services Tax Determination GSTD 2024/D2 Goods and services tax: supplies of sunscreen published on 14 August 2024. Comments period closed 13 September 2024.

    Expected completion

    To be advised

    Contact

    Sharon Iselin, International, Support and Programs

    Phone: (07) 3121 7318

    Sharon.Iselin@ato.gov.au

    [4186] Toddler formula products

    Title

    Draft Goods and Services Tax Determination

    Supplies of toddler formula products

    Purpose

    This Determination will outline the Commissioner’s view of the term ‘infant’ in the context of table item 13 of Schedule 2 to the A New Tax System (Goods and Services Tax) Act 1999, which provides that ‘beverages, and ingredients for beverages, of a kind marketed principally as food for infants or invalids’ are GST-free. This issue is currently considered in Issue 14 – Beverage for infants of the food industry register. Since this was published, there have been significant developments in the industry and we have received feedback asking us to review if an infant can be a person beyond the age of 12 months.

    Expected completion

    To be advised

    Comments

    We are further considering the scope of the draft Determination.

    Contact

    Jo Drum, International, Support and Programs

    Phone: (03) 8792 1469

    Jo.Drum@ato.gov.au

    MIL OSI News –

  • MIL-OSI Australia: Advice under development – excise issues

    Source:

    [4092] Determining the proportion of unfermented materials that may be added to ‘beer’ and ‘cider’

    Title

    Draft Excise Determination

    Alcohol excise: the addition of water to beer

    Purpose

    The revised draft Determination will set out the Commissioner’s view on the characteristics and proportions of unfermented materials that may be added to a fermented solution of a beverage in order for that product to meet the definition of ‘beer’ under the Excise Tariff Act 1921.

    Expected completion

    To be advised

    Comments

    Revised Draft Excise Determination ED 2024/D2 Alcohol excise: the addition of water and the integral attributes of beer for the purposes of the Excise Tariff Act 1921 published on 28 August 2024. Comments period closed 27 September 2024.

    Draft Excise Determination ED 2024/D1 Alcohol excise: the addition of water to beer, which published on 12 June 2024, has been withdrawn.

    Contact

    Andrew Bennett, Excise Experience

    Phone: (08) 8208 1868

    Andrew.Bennett@ato.gov.au

    Title

    Draft Wine Equalisation Tax Determination

    Wine Equalisation Tax: the addition of water to cider or perry

    Purpose

    The revised draft Determination will set out the Commissioner’s view on the characteristics and proportions of unfermented materials that may be added to a fermented solution of a beverage in order for that product to meet the definition of ‘cider’ under the A New Tax System (Wine Equalisation Tax) Act 1999.

    Expected completion

    To be advised

    Comments

    Draft Wine Equalisation Tax Determination WETD 2024/D1 Wine equalisation tax: the addition of water to cider or perry published on 12 June 2024. Comments period closed 12 July 2024.

    Contact

    Andrew Bennett, Excise Experience

    Phone:(08) 8208 1868

    Andrew.Bennett@ato.gov.au

    MIL OSI News –

  • MIL-OSI Australia: Report a breach of Australian foreign investment rules

    Source:

    When to report a breach

    You can confidentially report a breach of the foreign investment rules. This includes whether you suspect or know of a breach.

    If you have breached your foreign investment obligations, contact us as soon as you can. We will prioritise your issue and help you to comply with the rules.

    Who can report a breach

    We welcome information from anyone in the community with concerns about suspected illegal activities by a foreign person owning Australian residential property. Your information will help us safeguard Australia’s national interest, businesses and economy.

    If you are a foreign person, you should also tell us if you think you have broken the foreign investment rules. If you let us know as soon as possible, the penalty may be lower than if we detect your breach.

    What types of breaches you can report

    Some examples of breaches you can report to us include:

    Purchasing and financing properties

    A foreign person may have broken the rules by:

    Failing to register

    A foreign person may have broken the rules if they do not:

    • register their investment on the Register within the prescribed timeframe
    • update the details of the asset if their situation changes.

    Purchasing established dwellings

    For purchases before 1 April 2025, a foreign person may have broken the rules if they do any of the following:

    • purchase an established dwelling but do not live in it while they are in Australia
    • rent out or demolish the established dwelling acquired as their principal place of residence
    • purchase an established dwelling but do not sell the property within 6 months of their temporary residency visa expiring
    • purchase an established dwelling for redevelopment but rent it out instead of redeveloping it to increase the number of dwellings
    • purchase more than one established dwelling as a temporary resident
    • purchase an established dwelling but don’t redevelop it within 4 years
    • demolish an established dwelling but do not replace it with 2 or more dwellings
    • do not sell an established dwelling previously used for staff accommodation and leave it vacant for 6 months or more.

    From 1 April 2025 to 31 March 2027, foreign persons are banned from purchasing established dwellings in Australia (limited exceptions apply). This includes temporary residents purchasing an established dwelling for use as a principal place of residence.

    A foreign person may have broken the rules if they purchase an established dwelling after 1 April 2025 unless they are exempt or one of the limited exceptions apply.

    Purchasing vacant land

    A foreign person may have broken the rules if they purchase vacant land but don’t develop it by constructing one or more dwellings on the property within 4 years.

    Occupying a dwelling

    A foreign person may be in breach of the rules if they provide incorrect information to us about whether a dwelling was vacant or occupied.

    Third parties

    A third party, such as a stockbroker, lawyer, solicitor, conveyancer, real estate agent or other adviser, may have broken the rules relating to residential land, if they knowingly assist another person to breach the law by doing any of the following:

    • aiding, abetting, counselling, or procuring a contravention
    • inducing (by threat, promise or otherwise) a contravention
    • conspiring with others to affect a contravention
    • being, directly or indirectly, knowingly concerned in, or party to, a contravention.

    For examples of third-party breaches, see Guidance Note 14 – Compliance and Penalties (Residential Land) on the Foreign investment websiteExternal Link.

    Officer of a corporation

    An officer of a corporation may be subject to penalties if they authorise or permit a breach of the foreign investment rules, or fail to prevent such a breach from occurring.

    How to report a breach of the foreign investment rules

    If you know or suspect someone is breaking the foreign investment rules or want to tell us about your breach, you can report it by:

    • completing the tip-off form
    • phoning us on 1800 060 062
      • if you prefer to speak to us in a language other than English, phone the Translating and Interpreting Service on 13 14 50 for help with your call
      • if you are a tax professional, you can provide information by phone on 13 72 86 (Fast Key Code 3 4)
    • writing to us – mark your letter ‘in confidence’ and post it to

    AUSTRALIAN TAXATION OFFICE
    TAX INTEGRITY CENTRE
    LOCKED BAG  188
    ALBURY NSW 2640.

    When we receive information through a tip-off, we will cross check the information provided and decide if further action is needed. It’s important to include as much detail as possible so we can investigate fully.

    How to complete the tip-off form

    Complete the ATO tip-off form on our website or in the ATO app and select Start.

    If you are voluntarily reporting a breach you have made as a foreign person, include as much detail as possible.

    At Who is this about select who you are reporting for:

    • Individual, include their
      • property address
      • name (or the name of their company)
      • phone number
      • social media details (for example, username and profile address)
      • nationality.
    • Business, include the
      • business name
      • Australian business number (ABN) (if known)
      • business address
      • phone number
      • website details
      • social media details (for example, webpage and profile addresses).
    • What is this about – select Other, then Illegal purchase of Australian property by a non-resident.
    • Provide as much detail as possible about the reported behaviour, including
      • activities and behaviour that may be in breach of the foreign investment rules
      • the name of the property being reported and, if known
        • the purchase date and price
        • the selling agent
        • the status of the property (if it is vacant, rented or owner occupied)
        • any other information you have about this property.
    • Include your contact details as we may need to contact you for more information. Your details remain confidential in accordance with privacy laws.

    Before submitting the form, check you have provided the relevant information and supporting documentation. Provide as much detail as you can so we can fully assess the information.

    Remember to make a note of the reference number when you submit the form. You will need to quote it if you want to add information later.

    Examples of past tip-offs of foreign investment breaches

    Examples of cases we received as a tip-off include:

    Illegal purchase of established dwelling

    We received a community tip-off about a foreign non-resident who didn’t apply for foreign investment approval before buying an established residential property. As this was a breach of the rules, the foreign person had to pay a $12,600 infringement penalty.

    The foreign person was unable to move into the property or redevelop it to create 2 new dwellings. This was considered contrary to national interest and the foreign person had to sell the property.

    Breach of conditions – renting an established dwelling

    A tip-off was made about a foreign person who had rented out their established residential property through a real estate agent. This was in breach of the conditions listed on their foreign investment approval.

    The foreign person had to pay a $12,600 infringement penalty and move into the property as a condition of their foreign investment approval.

    Breach of conditions – not redeveloping and renting

    A member of the building and construction industry made a tip-off that 3 properties were held by an individual foreign person and associated trusts in breach of their foreign investment approval conditions. They breached the conditions of their approval by renting out one established property and not redeveloping the others within the approved timeframe. Infringement penalties were imposed and the properties had to be sold.

    Incorrect statement in vacancy fee return

    A foreign person stated in their vacancy fee return that they had occupied their dwelling for 6 months or more in accordance with the vacancy fee rules. However, our investigation showed the person was overseas for more than 6 months of the year.

    We helped the person understand that having a friend occupy the residence did not meet the definition of ‘residential occupation’ as defined by the foreign investment rules. They had to pay a $89,300 vacancy fee liability.

    How your privacy is protected

    Your privacy is protected by the Privacy Act 1988 and the strict secrecy provisions of the Income Tax Assessment Act 1936, the Taxation Administration Act 1953 and other tax laws.

    Due to privacy laws, we are unable to share details specific to any foreign investment compliance investigation. We won’t be able to tell you of the outcome of our investigations. We equally respect your privacy in reporting the suspected breach, as well as the privacy of the owner of the reported property.

    For more information, see ATO privacy policy.

    MIL OSI News –

  • MIL-OSI United Kingdom: Greens propose end of tax relief for Trump’s military

    Source: Scottish Greens

    30 Mar 2025 External Affairs

    We can’t let Scotland be used as a US outpost.

    More in External Affairs

    With the White House expanding its military presence in Scotland, the Scottish Greens will lodge proposals in Parliament to end tax exemptions for foreign armed forces.

    Greens finance spokesperson Ross Greer has lodged the proposals as an amendment to the upcoming Housing (Scotland) Bill.

    At present, foreign militaries are exempt from paying Land and Buildings Transaction Tax (previously known as Stamp Duty) when buying property.

    From the 1960s to the 1990s, Scotland was home to a number of US military bases, including nuclear armed submarines at the Holy Loch on the Clyde, and sites on the Mull of Kintyre and in Edzell in Aberdeenshire. There is also an ongoing US military presence at Prestwick Airport, which is regularly used as a rest and refuelling stop for transatlantic flights.

    America has recently established its first new military site in Scotland since the 1990s at Lossiemouth, with concerns that this presence will grow under President Trump.

    Mr Greer said:

    “Scotland cannot go back to being a US military outpost. We certainly shouldn’t be exempting them from a tax which everyone else pays when buying property here.

    “This tax break only encourages Trump to increase his military presence in Scotland, something we should be trying to avoid. His recent attacks on Europe and his alignment with Putin’s Russia make it clear that his government is not our ally.

    “Ending this exemption is the fair thing to do. Why should the American military get to avoid paying its fair share? 

    “Rather than rolling out the red carpet to Trump’s troops, this change would also signal that Scotland stands with the victims of US foreign policy, particularly the people of Ukraine and Palestine.”

    MIL OSI United Kingdom –

  • MIL-OSI Africa: Ghana’s e-levy: 3 lessons from the abolished mobile money tax

    Source: The Conversation – Africa – By Max Gallien, Research Fellow, Institute of Development Studies

    The first budget speech of Ghana’s new government on 11 March painted a picture of an economy in crisis, facing high debt and fiscal mismanagement. The finance minister, Cassiel Ato Forson, acknowledged that key International Monetary Fund performance targets would be missed and announced drastic spending cuts.

    However, most Ghanaians just wanted to know whether the minister would announce the scrapping of the country’s electronic transfer levy (or e-tax), as he’d indicated he would.

    He did, a decision parliament endorsed unanimously the next day.

    The e-levy, a fee on mobile money transactions, was introduced in 2022. Ghanaians immediately united around the issue in fierce opposition, a sentiment that grew as the tax took effect.

    Read more: Ghana’s e-levy is unfair to the poor and misses its revenue target: a lesson in mobile money tax design

    Both major parties had campaigned for its removal in the run-up to elections held in December 2024.

    How did the e-levy become so unpopular, and what will repealing it mean?

    Over three years, researchers from the International Centre for Tax and Development worked with partners in Ghana to study the e-levy as part of our Digitax research programme. This study generated knowledge and evidence at the interface of digital financial services, digital identities and tax.

    The e-levy’s intense politicisation and complex design made it an interesting case of a wider trend of mobile money taxes in the region. We learned more about the e-levy’s impact on informal sector workers in Accra, knowledge and sentiments, registered merchant exemptions and mobile money usage.

    Based on this research, three key lessons emerge.

    Firstly, like other taxes on mobile money, the e-levy has come to be an important source of revenue in Ghana, even if it did not live up to initial optimistic estimates of its potential.

    Secondly, beyond the revenue it raised directly, the real potential of the e-levy – and loss if it is completely abolished – lay in the data it produced. It was enabling the Ghana Revenue Authority to uncover users with significant incomes who were not registered for income tax.

    Thirdly, the new consensus against the e-levy has arisen because important stakeholders such as mobile money providers and public opinion were not adequately managed from the start.

    A difficult birth

    Much like its departure, the e-levy was announced during a time of fiscal distress. Mobile money transactions had expanded rapidly, particularly after COVID-19, making it an attractive tax target, especially for the informal sector.

    Given this growth in the digital financial sector coupled with the need for revenue, the e-levy targeted the value of electronic financial transactions.

    Introduced in the 2022 budget at 1.75%, with a 100 cedi (US$10) daily exemption, it was met with strong resistance. The budget was rejected, protests erupted, and negotiations ensued. The government attempted to win public support through town hall meetings, eventually reducing the rate to 1.5% and adding exemptions.

    It went ahead with implementation in May 2022, however.

    Negative sentiment persisted, fuelled by confusion and concerns about its implementation.

    The government framed the tax as being essential for national development and investment attraction. But efforts to justify the necessity and benefit of the tax seemed to fall short.

    Read more: New data on the e-levy in Ghana: unpopular tax on mobile money transfers is hitting the poor hardest

    Several International Centre for Tax and Development studies, nationally representative and one focusing on informal markets, found an overwhelming sense of dissatisfaction among Ghanaians.

    The studies also showed the grievances had less to do with the tax and its rates per se and more to do with how people viewed government and its trustworthiness to collect and spend money.

    Did Ghana’s e-levy work?

    New taxes are often unpopular, but that alone should not determine their fate.

    Other key indicators of performance include:

    Revenue: The e-levy met only 12% of the initial revenue target of GH₵6.96 billion (US$380 million). But, based on our research, we have concluded that this reflects poor forecasting rather than implementation failure. It still contributed about 1% of total tax revenue, which equated to about US$129 million annually.

    Mobile money usage: Many critics feared negative effects on financial inclusion. However, one study of this impact shows that while transactions initially dropped, they soon rebounded and continued to grow. Another International Centre for Tax and Development study found that exempted payments values and volumes increased, with registered merchants who benefited from this exemption developing greater trust in government policies.

    Equity and distributional effects: Despite exemptions, an International Centre for Tax and Development study focusing on the intended target of the e-levy, the informal sector, found that the e-levy as a whole was highly regressive. While the poorest were somewhat protected by the 100 cedi daily threshold, low-income mobile money users still bore the greatest tax burden. Additionally, with the high rate of inflation in Ghana, the unchanged daily threshold became less effective with time.

    This result is striking given that in its design, the e-levy is potentially less regressive than most mobile money taxes in Africa.

    Will it be missed?

    Given public hostility, its removal may be widely celebrated. However, it leaves a revenue gap that must be addressed. Ghana’s fiscal history suggests this could lead to new, potentially unpopular taxes.

    The bigger loss may be the dismantling of systems built to administer the e-levy. These new advances in tax administration allowed the country’s revenue authorities to track high-volume users who were not registered for income tax, offering a path towards more efficient taxation.

    As governments face mounting revenue pressures in an era of high debt and declining aid, careful attention must be paid to the politics of tax reform. Perhaps the e-levy’s greatest flaw was the haste with which it was introduced, without adequate stakeholder engagement. Uganda faced similar backlash from rushed mobile money taxation in 2018.

    Evidence shows that perceptions affect how users respond to taxes, and first impressions can be hard to overcome. So, it is essential to make sure they are seen as fair and appropriate from the start, so that they are sustainable.

    – Ghana’s e-levy: 3 lessons from the abolished mobile money tax
    – https://theconversation.com/ghanas-e-levy-3-lessons-from-the-abolished-mobile-money-tax-253285

    MIL OSI Africa –

  • MIL-OSI Asia-Pac: A taxi service based on Cooperative model to start soon

    Source: Government of India

    A taxi service based on Cooperative model to start soon

    Cooperative Taxi Service will allow registration of two wheelers, taxis, rickshaws and four wheelers

    Based on principles of Sahakar se Samriddhi, a cooperative taxi service will be formed by willing taxi drivers and the management will rest with the members of such society

    The objective is to ensure that maximum profit earned by such cooperative taxi society is distributed equitably among the taxi drivers who will be members of that society

    Posted On: 28 MAR 2025 9:30PM by PIB Delhi

    While replying to the discussion on Tribhuvan Sahkari University Bill, 2025 in the Lok Sabha, Union Home Minister and Minister of Cooperation Shri Amit Shah on Wednesday said that in near future, a cooperative taxi service will be started, in which registration of two wheelers, taxis, rickshaws and four wheelers will be possible and the profit will go directly to the driver.

    Based on principles of “Sahakar se Samriddhi”, a taxi-service cooperative will be formed by willing taxi drivers and the management will rest with the members of such society. The objective of this initiative is to ensure democratic management by active participation of all members and to ensure that maximum profit earned by such cooperative taxi society is distributed equitably among the taxi drivers who will be members of that society. Such an initiative will lead to overall prosperity and improving the income, working conditions, and standard of living for such taxi drivers/members of the cooperative society while providing better services to the consumers.

    Sahkar or Cooperation is a concept where a group of people voluntarily come together and form a cooperative society or Sahkari society based on mutual benefit and common economic interest. Sahkari models of economic cooperation have been found to be more fruitful for its members, being more equitable and resulting in inclusive growth for all, like in the case of Amul.

    Government has promoted and assisted Startups and other enterprises in the past for equitable & inclusive growth of the nation. India is home to over 8 lakh cooperative societies, serving nearly 30 crore members across 30 different sectors.

    These cooperatives play a crucial role in promoting self-reliance, financial inclusion, and rural development, particularly in agriculture, dairy, fisheries, banking, housing, consumer services, labour, sugar etc. These cooperatives compete in the market alongside other players including private enterprises. The cooperatives are registered under the cooperative laws of the respective state/UT and societies which work in multiple states/UTs and are registered under the Multi State Cooperative Societies Act.

    ****

    RK/VV/PR/PS

    (Release ID: 2116479) Visitor Counter : 433

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Prime Minister Shri Narendra Modi addresses TV9 Summit 2025

    Source: Government of India

    Prime Minister Shri Narendra Modi addresses TV9 Summit 2025

    Today, the world’s eyes are on India: PM

    India’s youth is rapidly becoming skilled and driving innovation forward: PM

    “India First” has become the mantra of India’s foreign policy: PM

    Today, India is not just participating in the world order but also contributing to shaping and securing the future: PM

    India has given Priority to humanity over monopoly: PM

    Today, India is not just a Nation of Dreams but also a Nation That Delivers: PM

    Posted On: 28 MAR 2025 6:53PM by PIB Delhi

    The Prime Minister Shri Narendra Modi participated in the TV9 Summit 2025 in the Bharat Mandapam, New Delhi today. Addressing the gathering, he extended his best wishes to the entire team of TV9 and its viewers. He said that TV9 had a wide regional audience and added that  now there is a global audience also getting ready. He also welcomed and greeted the Indian diaspora who had connected over teleconference to the event. 

    “Today, the World’s eyes are on India”, remarked the Prime Minister, highlighting that people around the globe are curious about India. He noted that India, which was the 11th largest economy in the world after 70 years of independence, rose to become the 5th largest economy in a span of 7-8 years. Citing a report of the IMF, Shri Modi said that India was the only major economy in the world which had doubled its GDP in the last 10 years. Emphasizing that India had added USD two lakh crore to its economy in the last decade, adding that doubling of the GDP was not just about numbers but had major impacts like moving 25 crore people out of poverty forming a ‘Neo-Middle Class’. He further added that the Neo-middle class was beginning a new life with dreams and aspirations along with contributing to the economy and making it vibrant. “India has the world’s largest youth population”, exclaimed the Prime Minister, noting that the youth were rapidly becoming skilled, thereby accelerating innovation. “India First has become the mantra of India’s foreign policy”, highlighted the Prime Minister. He remarked that while India once followed a policy of maintaining equal distance from all nations, the current approach emphasizes being equally close to all—an “Equi-Closeness” policy. The Prime Minister underscored that the global community now values India’s opinions, innovations, and efforts like never before. He emphasized that the world is keenly observing India today and is eager to understand “What India Thinks Today.”

    Prime Minister highlighted that India is not merely participating in the world order but is actively contributing to shaping and securing the future.  He remarked about India’s vital role in global security, especially during the COVID-19 pandemic. Defying doubts, India developed its own vaccines, ensured rapid inoculation, and supplied medicines to over 150 countries, he added. He emphasized that in times of global crisis, India’s values of service and compassion resonated worldwide, showcasing the essence of its culture and traditions.

    Reflecting on the global context post-World War II, noting how most international organizations were dominated by a few nations, Shri Modi remarked that India’s approach has always prioritized humanity over monopoly, striving for an inclusive and participatory global order. He added that in line with this vision, India has led the way in establishing global institutions for the 21st century, ensuring collective contribution and cooperation. Shri Modi remarked that addressing the challenge of natural disasters, which cause immense damage to infrastructure worldwide, India took the initiative to establish the Coalition for Disaster Resilient Infrastructure (CDRI). CDRI represents a global commitment to strengthening disaster preparedness and resilience, he added. The Prime Minister also highlighted India’s efforts to promote the construction of disaster-resilient infrastructure, including bridges, roads, buildings, and power grids, ensuring they can withstand natural calamities and safeguard communities across the world. 

    Emphasising the importance of global collaboration to tackle future challenges, particularly in energy resources, Shri Modi highlighted India’s initiative of the International Solar Alliance (ISA) as a solution to ensure sustainable energy access for even the smallest nations. He remarked that this effort not only positively impacts the climate but also secures the energy needs of Global South countries. He proudly noted that over 100 countries have joined this initiative. Talking about  the global challenges of trade imbalances and logistics issues, Shri Modi highlighted India’s collaborative efforts with the world to launch new initiatives, including the India–Middle East–Europe Economic Corridor (IMEC). He remarked that this project will connect Asia, Europe, and the Middle East through commerce and connectivity, boosting economic opportunities and providing alternative trade routes. He underscored that this initiative will strengthen the global supply chain.

    Underlining India’s efforts to make global systems more participative and democratic, the Prime Minister remarked on the historic step taken during the G-20 Summit at Bharat Mandapam, where the African Union was made a permanent member of the G-20. He emphasized that this long-standing demand was fulfilled under India’s presidency. Shri Modi underscored India’s role as the voice of Global South countries in global decision-making institutions, highlighting India’s significant contributions in various fields, including International Yoga Day, the WHO Global Centre for Traditional Medicine, and the development of a global framework for Artificial Intelligence. He remarked that these efforts have established India’s strong presence in the new world order. “This is just the beginning, as India’s capabilities on global platforms continue to reach new heights”, he added.

    Noting that 25 years of the 21st century have passed, out of which 11 years have been dedicated to serving the nation under his government, Shri Modi emphasized the importance of reflecting on past questions and answers to understand “What India Thinks Today.” He highlighted the transformation from dependency to self-reliance, aspirations to achievements, and desperation to development. He recalled that a decade ago, the issue of toilets in villages left women with limited options, but today, the Swachh Bharat Mission has provided a solution. He noted that in 2013, discussions about healthcare revolved around expensive treatments, but today, Ayushman Bharat offers a solution. Similarly, he highlighted that kitchens of the poor, once associated with smoke, now benefit from the Ujjwala Yojana. The Prime Minister pointed out that in 2013, women often remained silent when asked about bank accounts, but today, over 30 crore women have their own accounts due to the Jan Dhan Yojana. He also mentioned that the struggle for drinking water, which once required reliance on wells and ponds, has been addressed through the Har Ghar Nal Se Jal Yojana. He emphasized that it is not just the decade that has changed but also the lives of people. He remarked that the world is recognizing and accepting India’s development model. “India is no longer just a ‘Nation of Dreams’ but a ‘Nation That Delivers’”, he added.

    Shri Modi said that when a nation values the convenience and time of its citizens, it transforms the nation’s trajectory. He highlighted that this is precisely what India is experiencing today. He provided an example of the significant changes in the passport application process. He noted that earlier, obtaining a passport was a cumbersome task, involving long waiting times, complex documentation, and limited passport centers, mostly located in state capitals. He emphasized that people from smaller towns often had to arrange for overnight stays to complete the process. The Prime Minister highlighted that these challenges have now been completely transformed. He shared that the number of passport service centers in the country has increased from just 77 to over 550. Additionally, he remarked that the waiting time for obtaining a passport, which used to be as long as 50 days, has now been reduced to just 5-6 days.

    Remarking on the transformation witnessed in India’s banking infrastructure, Shri Modi highlighted that while banks were nationalized 50-60 years ago with the promise of accessible banking services, lakhs of villages still lacked such facilities. He emphasized that this situation has now been changed. The Prime Minister noted that online banking has reached every household, and today, there is a banking touchpoint within every 5-kilometer radius in the country. He stated that the government has not only expanded banking infrastructure but also strengthened the banking system. He highlighted that banks’ Non-Performing Assets (NPA) have significantly reduced, and their profits have reached a record high of ₹1.4 lakh crore. He added that those who looted public money are now being held accountable, sharing that the Enforcement Directorate (ED) has recovered over ₹22,000 crore, which is being legally returned to the victims from whom it was taken.

    Stressing that efficiency leads to effective governance, the Prime Minister highlighted the importance of achieving more in less time, utilizing fewer resources, and avoiding unnecessary expenditures. He remarked that prioritizing “red carpet over red tape” reflects respect for a nation’s resources. He noted that for the past 11 years, this has been a major priority of his government. 

    Mentioning the past practice of accommodating more individuals in ministries, which often led to inefficiencies, Shri Modi highlighted that his government, during its first term, merged several ministries to prioritize the nation’s resources and needs over political compulsions. He provided examples, noting that the Urban Development Ministry and the Housing and Urban Poverty Alleviation Ministry were merged to form the Housing and Urban Affairs Ministry. Similarly, the Ministry of Overseas Affairs was integrated with the Ministry of External Affairs. He also mentioned the merger of the Water Resources and River Development Ministry with the Drinking Water Ministry to create the Jal Shakti Ministry. He emphasized that these decisions were driven by the country’s priorities and the efficient use of resources.

    Underlining the government’s efforts to simplify and reduce rules and regulations, the Prime Minister mentioned that approximately 1,500 outdated laws, which had lost their relevance over time, were abolished by his government. Additionally, around 40,000 compliances were removed. He emphasized that these measures achieved two significant outcomes: relief from harassment for the public and conservation of energy within the government machinery. The Prime Minister provided another example of reform through the introduction of GST. He noted that over 30 taxes were consolidated into a single tax, resulting in substantial savings in terms of processes and documentation.

    Underscoring the inefficiencies and corruption that plagued government procurement in the past, often reported by the media, the Prime Minister said that his government introduced the Government e-Marketplace (GeM) platform to address these issues. He explained that government departments now list their requirements on this platform, vendors place bids, and orders are finalized transparently. This initiative has significantly reduced corruption and saved the government over ₹1 lakh crore. The Prime Minister also emphasized the global recognition of India’s Direct Benefit Transfer (DBT) system. He noted that DBT has prevented over ₹3 lakh crore of taxpayers’ money from falling into the wrong hands. He further highlighted that more than 10 crore fake beneficiaries, including non-existent individuals, who were exploiting government schemes, have been removed from official records.

    Emphasising the government’s commitment to the honest utilization of every taxpayer’s contribution and its respect for taxpayers, Shri Modi highlighted that the tax system has been made more taxpayer-friendly. He remarked that the process of filing Income Tax Returns (ITR) is now much simpler and faster compared to earlier times. He noted that previously, filing ITR without the help of a Chartered Accountant was challenging. Today, individuals can file their ITR online within a short time, and refunds are credited to their accounts within days of filing. The Prime Minister also highlighted the introduction of the Faceless Assessment Scheme, which has significantly reduced the hassles faced by taxpayers. He remarked that such efficiency-driven governance reforms have provided the world with a new governance model.

    Highlighting the transformation India has undergone in the past 10-11 years across every sector and field, the Prime Minister emphasized the significant shift in mindset that has taken place. He remarked that for decades after independence, a mindset was promoted in India that considered foreign goods superior. He noted that shopkeepers would often begin by saying, “This is imported!” when selling products. He emphasized that this situation has now changed and today, people proactively ask, “Is this Made in India?”

    Underscoring India’s remarkable progress in manufacturing excellence, emphasizing the recent achievement of developing the country’s first indigenous MRI machine, Shri Modi said that this milestone will significantly reduce the cost of medical diagnostics in India. He underscored the transformative impact of the ‘Aatmanirbhar Bharat’ and ‘Make in India’ initiatives, which have infused new energy into the manufacturing sector. He noted that while the world once viewed India as a global market, it now recognizes the nation as a major manufacturing hub. The Prime Minister pointed out the success of India’s mobile phone industry, stating that exports have surged from less than one billion dollars in 2014-15 to over twenty billion dollars within a decade. He highlighted India’s emergence as a power center in the global telecom and networking industry. Discussing the automotive sector, the Prime Minister remarked on India’s growing reputation in exporting components. He noted that while India previously imported motorcycle parts in large quantities, today, parts manufactured in India are reaching countries like the UAE and Germany. Shri Modi also highlighted the achievements in the solar energy sector, stating that imports of solar cells and modules have decreased while exports have increased by 23 times. He further emphasized the growth in defense exports, which have risen 21 times over the past decade. He stated that these accomplishments showcase the strength of India’s manufacturing economy and its ability to create new jobs across various sectors.

    The Prime Minister remarked on the significance of the TV9 Summit, emphasizing the detailed discussions and deliberations on various topics that will take place. He highlighted that the ideas and visions shared during the summit will define the nation’s future. He recalled the pivotal moment of the past century when India embarked on a new journey towards independence with renewed energy. He noted India’s achievement in gaining independence in 1947 and stated that, in this decade, the nation is striving towards the goal of a developed India. He emphasized the importance of realizing the dream of a developed India by 2047 and reiterated his statement from the Red Fort that collective efforts are essential to achieve this vision. The Prime Minister commended TV9 for organizing this summit, acknowledging their positive initiative and extended his best wishes for the success of the summit. He lauded the TV9 network for involving over 50 thousand youth in various interactions in mission mode and training the selected youth. He concluded by expressing confidence that the youth will be the biggest beneficiaries of Viksit Bharat in 2047.

     

     

    ***

    MJPS/SR

    (Release ID: 2116360) Visitor Counter : 609

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Freight Revenue Rises by ₹54,805 Cr in 4 Years from ₹1.13 Lakh Cr in 2019-20 to ₹1.68 Lakh Cr in 2023-24

    Source: Government of India

    Freight Revenue Rises by ₹54,805 Cr in 4 Years from ₹1.13 Lakh Cr in 2019-20 to ₹1.68 Lakh Cr in 2023-24

    Passenger Revenue Increases by ₹20,024 Cr in 4 Years from ₹50,669 Cr in 2019-20 to ₹70,693 Cr in 2023-24

    Posted On: 29 MAR 2025 5:33PM by PIB Delhi

    Revenue generated by Indian Railways from Freight and Passenger operations during the last five years is as under: –

     

    Financial Year

    Revenue (₹ in Cr)

    Freight

    Passenger

    2019-20

    1,13,488

    50,669

    2020-21*

    1,17,232

    15,248

    2021-22*

    1,41,096

    39,214

    2022-23

    1,62,263

    63,417

    2023-24

    1,68,293

    70,693

    * COVID years.

     

    Revenue earned by Indian Railways on account of flexi fare, tatkal and premium tatkal during 2019-20 to 2023-24 is approximately 5.7% of the total revenue earned from passenger services. Amount credited on account of Cancellation of tickets is not maintained separately.

     

    As on 01.04.24, there are about 79,000 coaches being utilized for running train services. The details are as under:

          

    Class

    No. of coaches

    No. of seats

    General and non-AC Sleeper

    ~56,000(70% of total)

     

    ~51 lakhs

    AC Coaches

    ~ 23,000

    ~14 lakhs

    Total

    ~ 79,000

    ~ 65 lakhs

    Details of passenger seats and revenue during the period 2019-20 to 2023-24 is as below:

    Class

    Avg %share of total seats during
     2019-20 to 2023-24

    Avg % share of total passenger revenue during

    2019-20 to 2023-24

    Non-AC coaches (General / Sleeper etc.)

    ~ 82%

    ~  53%

    AC Coaches

    ~ 18%

    ~  47%

                           

    This information was given by the Union Minister of Railways, Information & Broadcasting and Electronics & Information Technology Shri Ashwini Vaishnaw in a written reply in Rajya Sabha yesterday.

    *****

    Dharmendra Tewari/Shatrunjay Kumar

    (Release ID: 2116609) Visitor Counter : 327

    MIL OSI Asia Pacific News –

  • MIL-OSI USA: After Visiting Guantanamo Bay, Senators Blast Trump Admin for Wasting Taxpayer Dollars & Misusing Military Resources

    US Senate News:

    Source: United States Senator Alex Padilla (D-Calif.)

    After Visiting Guantanamo Bay, Senators Blast Trump Admin for Wasting Taxpayer Dollars & Misusing Military Resources

    Delegation scrutinizes military role in DHS migrant relocation operations
    WASHINGTON, D.C. — Yesterday, U.S. Senator Alex Padilla (D-Calif.), Ranking Member of the Senate Judiciary Immigration Subcommittee, joined a delegation of U.S. Senators in traveling to Naval Station Guantánamo Bay, Cuba (GTMO) to conduct oversight of the ongoing Department of Defense activities to support the Department of Homeland Security in the unlawful relocation of migrants.
    The delegation was led by Senator Jack Reed (D-R.I.), the Ranking Member of the Senate Armed Services Committee (SASC), and included Senator Jeanne Shaheen (D-N.H.), the Ranking Member of the Senate Foreign Relations Committee, Senator Gary Peters (D-Mich.), the Ranking Member of the Homeland Security and Governmental Affairs Committee, and Senator Angus King (I-Maine), a senior member of SASC.
    The Senators conducted a firsthand examination of the missions underway at GTMO. They met with military servicemembers, ICE officers, and DHS officials to fully understand the costs and military readiness impacts of these missions.
    After returning from the trip, Senators Padilla, Reed, Shaheen, King, and Peters issued the following statement:
    “We salute the outstanding American servicemembers and DHS officials who are working tirelessly at Guantanamo Bay. Our troops in Guantanamo have a uniquely difficult, demanding job that requires great sacrifices by them and their families. We know that border security and immigration enforcement are critical to our national security, and we thank these servicemembers, ICE officers, and defense civilians for their professionalism and candor with us.
    “However, after examining the migrant relocation activities at Guantanamo Bay, we are outraged by the scale and wastefulness of the Trump Administration’s misuse of our military. It is obvious that Guantanamo Bay is a likely illegal and certainly illogical location to detain immigrants. Its use is seemingly designed to undermine due process and evade legal scrutiny.
    “The staggering financial cost to fly these immigrants out of the United States and detain them at Guantanamo Bay—a mission worth tens of millions of dollars a month—is an insult to American taxpayers. President Trump could implement his immigration policies for a fraction of the cost by using existing ICE facilities in the U.S., but he is obsessed with the image of using Guantanamo, no matter the cost.
    “Worse, President Trump is undermining our military readiness at a perilous moment in the world. We met with dozens of servicemembers who were rushed to Guantanamo Bay without notice, leaving their critical day-to-day military missions behind in order to build tents that should never be filled and guard immigrants who should never be held there. Our troops will always answer the call and get the job done, but their invaluable time and resources are being carelessly wasted by the President on this mission.
    “We are also angered that we had to fly to Cuba to get answers to the questions we’ve been asking the Trump Administration for months. By steadfastly ignoring Congress, Defense Secretary Hegseth and Homeland Security Secretary Noem are forcing their servicemembers and officers on the ground to try to make sense of Trump’s contradictory and political orders without any guidance or support.
    “We are calling on the Trump Administration to immediately cease this misguided mission. The migrant relocation operation at Guantanamo Bay is unsustainably expensive, operating under questionable legal authority, and harmful to our military readiness.”
    Last month, Padilla denounced Trump’s relocation of immigrants from the United States to Guantánamo Bay as unlawful and demanded answers regarding these relocations. In the letter, Padilla and the other Senators emphasized that noncitizens in ICE custody are entitled to legal protections under immigration law and the Constitution, including due process.

    MIL OSI USA News –

  • MIL-OSI: Summit State Bank Reports Revised Fourth Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    SANTA ROSA, Calif., March 28, 2025 (GLOBE NEWSWIRE) — Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported that it has revised its fourth quarter and full year 2024 financial results from those announced in the press release dated January 28, 2025. In connection with the preparation and review of its 2024 financial statements, the Bank has concluded it is necessary to record a $693,000 other real estate owned valuation adjustment, a $146,000 increase in reserve for unfunded loans, and a $76,000 credit loss provision reversal for the fourth quarter 2024. The need for the valuation adjustment results from an updated appraisal report obtained in the first quarter of 2025. The additional reserve for unfunded loans and provision reversal results from the Bank’s adoption of a new CECL model as of December 31, 2024. The valuation adjustment was expensed against noninterest income and also reduced the Bank’s other real estate owned asset. The additional reserve for undisbursed loans and the reversal of the credit losses on loans resulted in a net expense against the provision for credit losses. The income tax provision was adjusted accordingly for all changes noted above.

    After the impact adjustments as outlined above, the Bank’s preliminary, unaudited fourth quarter earnings estimate is revised to a net loss of $7,142,000, or $1.06 loss per diluted share, and full-year 2024 net loss of $4,193,000, or $0.62 loss per diluted share. The Bank previously reported preliminary, unaudited results for fourth quarter 2024 including net loss of $6,605,000 or $0.98 loss per diluted share, and full-year 2024 net loss of $3,656,000, or $0.54 loss per diluted share.

    Material Updates to Income Statement
    The Bank originally reported noninterest income of $1,373,000 in the fourth quarter of 2024 and $4,152,000 for full-year 2024. After the adjustment, noninterest income was reduced to $680,000 in the fourth quarter of 2024 and $3,459,000 for full-year 2024.

    The Bank originally reported total provision for credit losses of $6,652,000 in the fourth quarter of 2024 and $7,845,000 for full-year 2024. After the adjustment, total provision increased to $6,722,000 in the fourth quarter of 2024 and $7,915,000 for full-year 2024.

    Impact to Income Taxes
    The Bank’s revised effective tax rate for the twelve months ended December 31, 2024 was 4.4% compared to the previously reported effective tax rate of -0.8%.

    Updated Previously Furnished Earnings Materials
    For completeness, the Bank has included all previously announced financial results disclosures and related tables with this press release as revised. These results supersede the results previously disclosed in the January 28, 2025 press release.

    Revised Fourth Quarter 2024 Financial Results

    The Bank has a net loss of $7,142,000, or $1.06 loss per diluted share for the fourth quarter ended December 31, 2024, compared to net income of $1,901,000, or $0.28 per diluted share for the fourth quarter ended December 31, 2023. The current quarter’s results were impacted by expenses including a $6,570,000 provision for credit losses on loans and a $4,119,000 one-time non-cash impairment charge to write off the remaining balance of goodwill. The Bank has taken significant charge offs and provisions for credit losses in the fourth quarter of 2024 as a proactive step towards resolving its problem loans. The goodwill impairment was a result of the Bank’s stock price trading below book value and is a non-cash charge that does not impact the Bank’s cash flows, liquidity, or regulatory capital. The Bank ended the year with improved regulatory capital ratios and is focused on expanding net interest margin in 2025.

    For the year ended December 31, 2024, the Bank reported a net loss of $4,193,000, or $0.62 loss per diluted share compared to net income of $10,822,000, or $1.62 per diluted share for the year ended December 31, 2023. The 2024 net income loss was primarily attributable to annual provision for credit losses on loans totaling $7,882,000 and a one-time non-cash goodwill impairment expense of $4,119,000.

    Pre-tax, pre-provision net income before goodwill1 was $2,301,000 for the quarter ended December 31, 2024, compared to $2,122,000, $1,267,000, $1,955,000 and $2,643,000 for the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively. “At the beginning of 2024, the Bank was negatively impacted by the ongoing strains that the high-interest rate environment put on our funding costs,” said Brian Reed, President and CEO. “By the fourth quarter of 2024, the Bank’s core operating results improved due to a lower cost of funds and improved noninterest income.”

    “The Bank continues to focus on maintaining strong capital levels and did that effectively in 2024 by strategically managing the balance sheet and suspending cash dividends. As such, the Board determined it will also suspend cash dividends in the first quarter of 2025 so that we can build capital, increase liquidity, and position the Bank to create long-term value for our shareholders.”

    “The largest negative impact on the Bank’s performance in 2024 was a result of the heightened level of non-performing assets,” said Reed. “We have been aggressively pursuing solutions to these problem loans and have reduced our non performing loans by $9,160,000 in the fourth quarter of 2024. We anticipate non performing loans will be further reduced by $18,187,000 in the first half of 2025 as a result of loan payoffs from the sale of collateral that is currently under contract to be sold.”

    “We are headed into 2025 feeling positive about our prospects subsequent to our significant progress in resolving problem loans. We continue to maintain our well capitalized status and sufficient liquidity after having realized successive quarters of improved net operating income results,” concluded Reed.

    Fourth Quarter 2024 Financial Highlights (at or for the three months ended December 31, 2024)

    • The Bank’s Tier 1 Leverage ratio increased to 8.87% at December 31, 2024 compared to 8.85% at December 31, 2023. This ratio remains above the minimum of 5% required to be considered “well-capitalized” for regulatory capital purposes.
    • The Bank has implemented numerous operating cost saving initiatives including an 8% reduction in force.
    • The Bank’s annualized loss on average assets and annualized loss on average equity for the fourth quarter of 2024 was 2.59% and 28.05%, respectively. The pre-tax, pre-provision return on average assets before goodwill1 and pre-tax, pre-provision return on average equity before goodwill1 in the fourth quarter would have been 0.83% and 9.04%, respectively.
    • Net income was a loss of $7,142,000 for the fourth quarter of 2024. Pre-tax, pre-provision net income before goodwill1 was $2,301,000 for the fourth quarter of 2024 compared to $2,122,000, $1,267,000, $1,955,000 and $2,643,000 for the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively.
    • Collateral relating to two of the non performing loans is in contract to sell in the first half of 2025 and the expected proceeds represent 65% or $18,010,000 of the remaining $27,754,000 of non performing loans.
    • The allowance for credit losses to total loans was 1.49% after charging off $8,343,000 and recording a $6,570,000 provision for credit losses on loans to replenish reserves on December 31, 2024.
    • The Bank maintained strong total liquidity of $435,409,000, or 40.8% of total assets as of December 31, 2024. This includes on balance sheet liquidity (cash and equivalents and unpledged available-for-sale securities) of $111,471,000 or 10.4% of total assets, plus available borrowing capacity of $323,938,000 or 30.4% of total assets.
    • The Bank has been strategically managing its loan and deposit portfolios to reduce risk in the balance sheet and improve capital ratios. The Bank has been successful in reducing the size of its balance sheet as noted below:
      • Net loans decreased $33,551,000 to $905,075,000 at December 31, 2024, compared to $938,626,000 one year earlier and decreased $12,292,000 compared to $917,367,000 three months earlier.
      • Total deposits decreased 5% to $962,562,000 at December 31, 2024, compared to $1,009,693,000 at December 31, 2023, and decreased 4% when compared to the prior quarter end of $1,002,770,000.
    • Book value was $13.53 per share, compared to $14.40 per share a year ago and $14.85 in the preceding quarter.

    Operating Results

    For the fourth quarter of 2024, the annualized loss on average assets was 2.59% and the annualized loss on average equity was 28.05%. This compared to an annualized return on average assets of 0.67% and an annualized return on average equity of 8.02%, respectively, for the fourth quarter of 2023. These ratios were negatively impacted during the fourth quarter of 2024 by a credit loss provision and one-time goodwill impairment. Without the impact from these items, the pre-tax, pre-provision return on average assets before goodwill1 and the pre-tax, pre-provision return on average equity before goodwill1 would have been 0.83% and 9.04%, respectively, for the three months ended December 31, 2024.

    For the year ended 2024, the loss on average assets was 0.38% and the loss on average equity was 4.23%. This compares to the return on average assets of 0.95% and return on average equity of 11.56%, respectively, for the year ended 2023.

    The Bank’s net interest margin was 2.88% in the fourth quarter of 2024 compared to its lowest quarterly net interest margin this year of 2.71% which occurred in the second and third quarters of 2024. The current net interest margin is also higher compared to the fourth quarter of 2023 of 2.85%. This was primarily attributable to the cost of deposits decreasing in the fourth quarter of 2024 to 2.87% compared to 3.05% during the preceding quarter. “We are starting to see an improvement in cost of funds in response to the Federal Reserve rate decreases. As CDs mature, we expect to see continued improvement in deposit pricing in the near future,” said Reed. “In addition, loan yields have started to improve as our existing loans have started to reprice.”

    Interest and dividend income decreased 1.0% to $14,935,000 in the fourth quarter of 2024 compared to $15,036,000 in the fourth quarter of 2023. The decrease in interest income is attributable to a $182,000 decrease in interest on investment securities and a $137,000 decrease in interest on deposits with banks offset by an increase of $214,000 in interest and fees on loans.

    Noninterest income increased in the fourth quarter of 2024 to $680,000 compared to $297,000 in the fourth quarter of 2023. The increase is primarily attributed to the Bank recognizing $857,000 in gains on sales of SBA guaranteed loan balances offset by the valuation adjustment on other real estate owned of $693,000 in the fourth quarter of 2024 compared to no gains on sales of SBA guaranteed loan balances in the fourth quarter of 2023.

    Operating expenses increased in the fourth quarter of 2024 to $10,200,000 compared to $5,483,000 in the fourth quarter of 2023. The increase is primarily due to a one-time non-cash impairment charge of $4,119,000 to write off the remaining balance of goodwill. In addition, the Bank recorded a $443,000 loss related to an external check fraud event during the fourth quarter of 2024. The Bank has filed an insurance claim related to this fraud loss and may be partially reimbursed by insurance at a later date.

    “We remain focused on enhancing revenue generation and driving significant cost efficiencies to improving our operational effectiveness. To date we have leveraged existing staff and technologies to reduce third-party expenses, eliminated raises and bonuses, reduced employee benefits Bank-wide, and reduced director fees.”

    Balance Sheet Review

    During 2024, the Bank strategically managed its loan and deposit portfolios to reduce risk in the balance sheet and improve capital ratios. As a result of the efforts, net loans decreased 4% to $905,075,000 and total deposits also decreased 5% to $962,562,000 as of December 31, 2024 compared to December 31, 2023.

    Net loans were $905,075,000 at December 31, 2024 compared to $938,626,000 at December 31, 2023, and decreased 1% compared to September 30, 2024. The Bank’s largest loan types are commercial real estate loans which make up 78% of the portfolio, “secured by farmland” totaling 9% of the portfolio, and 7% in commercial and industrial loans. Of the commercial real estate total, approximately 34% or $231,000,000 is owner occupied and the remaining 66% or $451,000,000 is non-owner occupied. The Bank’s entire loan portfolio is well diversified between industries including office space which totals $116,400,000.

    Total deposits were $962,562,000 at December 31, 2024 compared to $1,009,693,000 at December 31, 2023, and decreased 4% compared to the prior quarter end. At December 31, 2024, noninterest bearing demand deposit accounts decreased 8% compared to a year ago and represented 19% of total deposits; savings, NOW and money market accounts decreased 9% compared to a year ago and represented 49% of total deposits, and CDs increased 4% compared to a year ago and comprised 32% of total deposits.

    Shareholders’ equity was $91,723,000 at December 31, 2024, compared to $100,662,000 three months earlier and $97,678,000 a year earlier. The decrease in shareholders’ equity compared to a year ago was due to a reduction in retained earnings. At December 31, 2024 book value was $13.53 per share, compared to $14.85 three months earlier, and $14.40 at December 31, 2023.

    The Bank’s Tier 1 Leverage ratio continues to exceed the minimum of 5% necessary to be categorized as “well-capitalized” for regulatory capital purposes. The Tier-1 leverage ratio at the end of 2024 was 8.87%, an increase compared to 8.85% at the end of 2023.

    Credit Quality

    “Our primary focus remains on managing asset quality and reducing portfolio risk,” said Reed. “To that end we charged off loans of $8,343,000 and recorded a $6,570,000 provision for credit losses to replenish reserves during the fourth quarter of 2024. Three credits represent 94% or $26,040,000 of our non performing loans and are “secured by farmland” which have been hit hard by the current environment. The Bank holds a small portion of its total loans in this industry and actively monitors the performance of these loans. Collateral relating to two of these three non performing loans is in contract to sell in the first half of 2025 and represents 65% or $18,010,000 of the non performing loan portfolio. The remaining non performing loans are being reserved at current appraisal value less selling cost.”

    Non performing assets were $32,191,000, or 3.02% of total assets, at December 31, 2024. This compared to $41,971,000 in non performing assets at September 30, 2024, and $44,206,000 in non performing assets at December 31, 2023. Non performing assets include $4,437,000 for one other real estate owned loan at December 31, 2024 and $5,130,000 at September 30, 2024, compared to no other real estate owned at December 31, 2023.

    There were $8,343,000 in net charge-offs during the three months ended December 31, 2024, compared to no charge-offs during the three months ended September 30, 2024 and net recoveries of $9,000 during the three months ended December 31, 2023.

    For the fourth quarter of 2024, consistent with factors within the allowance for credit losses model, the Bank recorded a $6,570,000 provision for credit loss expense for loans, a $154,000 provision for credit losses for unfunded loan commitments and a $2,000 reversal of credit losses on investments. This compared to a $31,000 reversal of credit loss expense on loans, a $65,000 reversal of credit losses on unfunded loan commitments and a $31,000 provision for credit losses on investments in the fourth quarter of 2023.

    The allowance for credit losses to total loans was 1.49% on December 31, 2024, and 1.60% on December 31, 2023. The decrease is due to $9,690,000 in loan charge-offs offset with a provision for credit losses on loans of $7,882,000 and $55,000 provision for credit losses on unfunded loan commitments recorded during the year ended December 31, 2024.

    About Summit State Bank

    Founded in 1982 and headquartered in Sonoma County, Summit State Bank is an award-winning community bank serving the North Bay. The Bank serves small businesses, nonprofits and the community, with total assets of $1.1 billion and total equity of $92 million as of December 31, 2024. The Bank has built its reputation over the past 40 years by specializing in providing exceptional customer service and customized financial solutions to aid in the success of its customers.

    Summit State Bank is committed to embracing the diverse backgrounds, cultures and talents of its employees to create high performance and support the evolving needs of its customers and community it serves. Through the engagement of its team, Summit State Bank has received many esteemed awards including: Top Performing Community Bank by American Banker, Best Places to Work in the North Bay and Diversity in Business by North Bay Business Journal, Corporate Philanthropy Award by the San Francisco Business Times, and Hall of Fame by North Bay Biz Magazine. Summit State Bank’s stock is traded on the Nasdaq Global Market under the symbol SSBI. Further information can be found at www.summitstatebank.com.

    Cautionary Note Regarding Preliminary Financial Results and Forward-looking Statements

    The financial results in this release are preliminary and unaudited. Final audited financial results and other disclosures will be reported in Summit State Bank’s annual report on Form 10-K for the period ended December 31, 2024 and may differ materially from the results and disclosures in this release due to, among other things, the completion of final review procedures, the occurrence of subsequent events or the discovery of additional information.

    Except for historical information, the statements contained in this release, are forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are non-historical statements regarding management’s expectations and beliefs about the Bank’s future financial performance and financial condition and trends in its business and markets. Words such as “expects,” “anticipates,” “believes,” “estimates” and similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such forward-looking statements. Examples of forward-looking statements include but are not limited to statements regarding future operating results, operating improvements, loans sales and resolutions, cost savings, insurance recoveries and dividends. The forward-looking statements in this release are based on current information and on assumptions about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Bank’s control. As a result of those risks and uncertainties, the Bank’s actual future results and outcomes could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this release. Those risks and uncertainties include, but are not limited to, the risk of incurring credit losses; the quality and quantity of deposits; the market for deposits, adverse developments in the financial services industry and any related impact on depositor behavior or investor sentiment; risks related to the sufficiency of the Bank’s liquidity; fluctuations in interest rates; governmental regulation and supervision; the risk that the Bank will not maintain growth at historic rates or at all; general economic conditions, either nationally or locally in the areas in which the Bank conducts its business; risks associated with changes in interest rates, which could adversely affect future operating results; the risk that customers or counterparties may not performance in accordance with the terms of credit documents or other agreements due a decline in credit worthiness, business conditions or other reasons;; adverse conditions in real estate markets; and the inherent uncertainty of expectations regarding litigation, insurance claims and the performance or resolution of loans. Additional information regarding these and other risks and uncertainties to which the Bank’s business and future financial performance are subject is contained in the Bank’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and other documents the Bank files with the FDIC from time to time. Readers should not place undue reliance on the forward-looking statements, which reflect management’s views only as of the date of this release. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

    1Non-GAAP Financial Measures

    This release contains non-GAAP (Generally Accepted Accounting Principles) financial measures in addition to the results presented in accordance with GAAP. These Non-GAAP financial measures include pre-tax, pre-provision net operating income before goodwill, pre-tax, pre-provision return on average assets before goodwill (“ROAA”), and pre-tax, pre-provision return on average equity (“ROAE”) before goodwill. We believe the presentation of these non-GAAP financial measures, provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our history results and those of our peers.

    Not all companies use identical calculations or the same definitions of pre-tax, pre-provision net operating income before goodwill, pre-tax, pre-provision ROAA before goodwill and pre-tax, pre-provision ROAE before goodwill, so the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. These non-GAAP financial measures should be taken together with the corresponding GAAP measure and should not be considered a substitute for the GAAP measure. Reconciliations of the most directly comparable GAAP measures to these non-GAAP financial measurements are presented below.

    Contact: Brian Reed, President and CEO, Summit State Bank (707) 568-4908

                             
            Three Months Ended
                             
            December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
            (In thousands)
    Reconciliation of non-GAAP pre-tax, pre-provision income net of goodwill
                             
    Net (loss) income       $ (7,142 )   $ 626     $ 928     $ 1,395     $ 1,901  
    Excluding provision for (reversal of) credit losses   6,722       1,294       (16 )     (85 )     (65 )
    Excluding (reversal of) provision for income taxes   (1,398 )     202       355       645       807  
    Pre-tax, pre-provision income (non-GAAP) $ (1,818 )   $ 2,122     $ 1,267     $ 1,955     $ 2,643  
                             
    Excluding goodwill impairment         4,119       –       –       –       –  
    Pre-tax, pre-provision income net of goodwill (non-GAAP) $ 2,301     $ 2,122     $ 1,267     $ 1,955     $ 2,643  
                       
       
                             
                             
            Three Months Ended
                             
            December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
            (In thousands)
    Reconciliation of non-GAAP return on average assets
                             
    Average assets       $ 1,098,885     $ 1,098,469     $ 1,078,700     $ 1,087,960     $ 1,123,057  
    (Loss) return on average assets (1)         -2.59 %     0.23 %     0.35 %     0.51 %     0.67 %
                             
    Net (loss) income       $ (7,142 )   $ 626     $ 928     $ 1,395     $ 1,901  
    Excluding provision for (reversal of) credit losses   6,722       1,294       (16 )     (85 )     (65 )
    Excluding (reversal of) provision for income taxes   (1,398 )     202       355       645       807  
    Pre-tax, pre-provision income (non-GAAP) $ (1,818 )   $ 2,122     $ 1,267     $ 1,955     $ 2,643  
                             
    Excluding goodwill impairment         4,119       –       –       –       –  
    Pre-tax, pre-provision income net of goodwill (non-GAAP) $ 2,301     $ 2,122     $ 1,267       $ 1,955       $ 2,643  
                             
    Adjusted return on average assets (non-GAAP) (1)   0.83 %     0.77 %     0.47 %     0.72 %     0.93 %
                             
    (1) Annualized.                
                             
            Three Months Ended
                             
            December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
            (In thousands)
    Reconciliation of non-GAAP return on average shareholders’ equity
                             
    Average shareholders’ equity       $ 101,307     $ 99,962     $ 97,548     $ 97,471     $ 94,096  
    (Loss) return on average shareholders’ equity (1)   -28.05 %     2.48 %     3.82 %     5.74 %     8.02 %
                             
    Net (loss) income       $ (7,142 )   $ 626     $ 928     $ 1,395     $ 1,901  
    Excluding provision for (reversal of) credit losses   6,722       1,294       (16 )     (85 )     (65 )
    Excluding (reversal of) provision for income taxes   (1,398 )     202       355       645       807  
    Pre-tax, pre-provision income (non-GAAP) $ (1,818 )   $ 2,122     $ 1,267     $ 1,955     $ 2,643  
                             
    Excluding goodwill impairment         4,119       –       –       –       –  
    Pre-tax, pre-provision income net of goodwill (non-GAAP) $ 2,301     $ 2,122     $ 1,267     $ 1,955     $ 2,643  
                             
    Adjusted return on average shareholders’ equity (non-GAAP) (1)   9.04 %     8.42 %     5.21 %     8.04 %     11.14 %
                             
    (1) Annualized.                
                     
                           
    SUMMIT STATE BANK
    STATEMENTS OF INCOME
    (In thousands except earnings per share data)
                           
                           
              Three Months Ended   Year Ended
              December 31, 2024   December 31, 2023   December 31, 2024   December 31, 2023
              (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
                           
    Interest and dividend income:              
      Interest and fees on loans $ 13,623     $ 13,409     $ 53,574     $ 52,560  
      Interest on deposits with banks   655       792       2,060       4,410  
      Interest on investment securities   530       712       2,614       2,855  
      Dividends on FHLB stock   127       123       514       416  
          Total interest and dividend income   14,935       15,036       58,762       60,241  
    Interest expense:              
      Deposits     7,099       7,113       28,495       24,227  
      Federal Home Loan Bank advances   6       –       337       177  
      Junior subordinated debt   128       94       454       375  
          Total interest expense   7,233       7,207       29,286       24,779  
          Net interest income before provision for credit losses   7,702       7,829       29,476       35,462  
    Provision for (reversal of) credit losses on loans   6,570       (31 )     7,882       342  
    Provision for (reversal of) credit losses on unfunded loan commitments   154       (65 )     55       (68 )
    (Reversal of) provision for credit losses on investments   (2 )     31       (22 )     58  
          Net interest income after provision for (reversal of) credit              
            losses, unfunded loan commitments and investments   980       7,894       21,561       35,130  
    Non-interest income:              
      Service charges on deposit accounts   225       219       926       872  
      Rental income   61       54       241       193  
      Net gain on loan sales   857       –       2,114       2,481  
      Net gain on securities   6       –       6       –  
      Net loss on other real estate owned   (693 )     –       (693 )     –  
      FHLB prepayment fee   –       –       –       1,024  
      Other income   224       24       865       631  
          Total non-interest income   680       297       3,459       5,201  
    Non-interest expense:              
      Salaries and employee benefits   3,429       3,044       15,639       15,399  
      Occupancy and equipment   413       386       1,761       1,713  
      Goodwill impairment   4,119       –       4,119       –  
      Other expenses   2,239       2,053       7,889       7,938  
          Total non-interest expense   10,200       5,483       29,408       25,050  
          (Loss) income before provision for income taxes   (8,540 )     2,708       (4,388 )     15,281  
    (Reversal of) provision for income taxes   (1,398 )     807       (195 )     4,459  
          Net (loss) income $ (7,142 )   $ 1,901     $ (4,193 )   $ 10,822  
                           
    Basic (loss) earnings per common share $ (1.06 )   $ 0.28     $ (0.62 )   $ 1.62  
    Diluted (loss) earnings per common share $ (1.06 )   $ 0.28     $ (0.62 )   $ 1.62  
                           
    Basic weighted average shares of common stock outstanding   6,719       6,698       6,714       6,695  
    Diluted weighted average shares of common stock outstanding   6,719       6,698       6,714       6,698  
                                   
       
    SUMMIT STATE BANK  
    BALANCE SHEETS  
    (In thousands except share data)  
                   
            December 31, 2024   December 31, 2023  
            (Unaudited)   (Unaudited)  
                   
    ASSETS        
                   
    Cash and due from banks $ 51,403   $ 57,789  
          Total cash and cash equivalents   51,403     57,789  
                   
    Investment securities:        
      Available-for-sale, less allowance for credit losses of $36 and $58        
        (at fair value; amortized cost of $80,887 in 2024 and $97,034 in 2023)   68,228     84,546  
                   
    Loans, less allowance for credit losses of $13,693 in 2024 and $15,221 in 2023   905,075     938,626  
    Bank premises and equipment, net   5,155     5,316  
    Investment in Federal Home Loan Bank (FHLB) stock, at cost   5,889     5,541  
    Goodwill     –     4,119  
    Other real estate owned   4,437     –  
    Affordable housing tax credit investments   7,413     8,405  
    Accrued interest receivable and other assets   19,494     18,166  
                   
          Total assets $ 1,067,094   $ 1,122,508  
                   
    LIABILITIES AND        
    SHAREHOLDERS’ EQUITY        
                   
    Deposits:          
      Demand – non interest-bearing $ 185,756   $ 201,909  
      Demand – interest-bearing   193,355     244,748  
      Savings   47,235     54,352  
      Money market   226,879     212,278  
      Time deposits that meet or exceed the FDIC insurance limit   70,717     63,159  
      Other time deposits   238,620     233,247  
          Total deposits   962,562     1,009,693  
                   
    FHLB advances   –     –  
    Junior subordinated debt, net   5,935     5,920  
    Affordable housing commitment   511     4,094  
    Accrued interest payable and other liabilities   6,363     5,123  
                   
          Total liabilities   975,371     1,024,830  
                   
          Total shareholders’ equity   91,723     97,678  
                   
          Total liabilities and shareholders’ equity $ 1,067,094   $ 1,122,508  
                   
     
    Financial Summary
    (In thousands except per share data)
                     
        As of and for the   As of and for the
        Three Months Ended   Year Ended
        December 31, 2024   December 31, 2023   December 31, 2024   December 31, 2023
        (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
    Statement of Income Data:                
    Net interest income   $ 7,702     $ 7,829     $ 29,476     $ 35,462  
    Provision for (reversal of) credit losses on loans     6,570       (31 )     7,882       342  
    Provision for (reversal of) credit losses on unfunded loan commitments   154       (65 )     55       (68 )
    (Reversal of) provision for credit losses on investments     (2 )     31       (22 )     58  
    Non-interest income     680       297       3,459       5,201  
    Non-interest expense     10,200       5,483       29,408       25,050  
    (Reversal of) provision for income taxes     (1,398 )     807       (195 )     4,459  
    Net (loss) income   $ (7,142 )   $ 1,901     $ (4,193 )   $ 10,822  
                     
    Selected per Common Share Data:                
    Basic (loss) earnings per common share   $ (1.06 )   $ 0.28     $ (0.62 )   $ 1.62  
    Diluted (loss) earnings per common share   $ (1.06 )   $ 0.28     $ (0.62 )   $ 1.62  
    Dividend per share   $ –     $ 0.12     $ 0.28     $ 0.48  
    Book value per common share (1)   $ 13.53     $ 14.40     $ 13.53     $ 14.40  
                     
    Selected Balance Sheet Data:                
    Assets   $ 1,067,094     $ 1,122,508     $ 1,067,094     $ 1,122,508  
    Loans, net     905,075       938,626       905,075       938,626  
    Deposits     962,562       1,009,693       962,562       1,009,693  
    Average assets     1,098,885       1,123,057       1,091,045       1,142,790  
    Average earning assets     1,064,872       1,089,808       1,058,766       1,110,801  
    Average shareholders’ equity     101,307       94,096       99,080       93,621  
    Nonperforming loans     27,754       44,206       27,754       44,206  
    Other real estate owned     4,437       –       –       –  
    Total nonperforming assets     32,191       44,206       32,191       44,206  
                     
    Selected Ratios:                
    (Loss) return on average assets (2)     -2.59 %     0.67 %     -0.38 %     0.95 %
    (Loss) return on average shareholders’ equity (2)     -28.05 %     8.02 %     -4.23 %     11.56 %
    Efficiency ratio (3)     121.78 %     67.47 %     89.31 %     61.60 %
    Net interest margin (2)     2.88 %     2.85 %     2.78 %     3.19 %
    Common equity tier 1 capital ratio     10.14 %     9.90 %     10.14 %     9.90 %
    Tier 1 capital ratio     10.14 %     9.90 %     10.14 %     9.90 %
    Total capital ratio     11.89 %     11.75 %     11.89 %     11.75 %
    Tier 1 leverage ratio     8.87 %     8.85 %     8.87 %     8.85 %
    Common dividend payout ratio (4)     0.00 %     42.63 %     -45.20 %     30.05 %
    Average shareholders’ equity to average assets     9.22 %     8.38 %     9.08 %     8.19 %
    Nonperforming loans to total loans     3.02 %     4.63 %     3.02 %     4.63 %
    Nonperforming assets to total assets     3.02 %     3.94 %     3.02 %     3.94 %
    Allowance for credit losses to total loans     1.49 %     1.60 %     1.49 %     1.60 %
    Allowance for credit losses to nonperforming loans     49.34 %     34.43 %     49.34 %     34.43 %
             
    (1) Total shareholders’ equity divided by total common shares outstanding.        
    (2) Annualized.        
    (3) Non-interest expenses to net interest and non-interest income, net of securities gains.            
    (4) Common dividends divided by net (loss) income available for common shareholders.        
             

    The MIL Network –

  • MIL-OSI Security: St. Joseph Man Charged with Aggravated Identity Theft of Minnesota Man

    Source: Office of United States Attorneys

    KANSAS CITY, Mo. – A St. Joseph, Mo., man was charged in a federal indictment this week with aggravated identity theft and misuse of a social security number.

    Romeo Perez-Bravo, 42, has been charged with using a stolen identity to obtain employment and state issued identification cards since 2009. The Social Security Administration’s Office of the Inspector General received a referral from the St. Joseph, Missouri Police Department that a man had been fraudulently living and working under a Minnesota man’s identity. SSA-OIG identified him as Perez-Bravo who had been living in St. Joseph and working for local area employers under that identity for several years. The victim reported the identity theft when he began to receive unpaid income tax bills from the IRS.   

    If convicted, Perez-Bravo faces a mandatory two-year prison sentence for identity theft and up to five years for misusing the social security number.

    The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

    This case was investigated by Social Security Administration’s Office of Inspector General (SSA-OIG), ICE Homeland Security Investigations, St. Joseph, Missouri Police Department, and the Olivia, Minnesota Police Department.

    MIL Security OSI –

  • MIL-OSI Security: CEO of Company that Owned Rights to Notorious Drug Lord’s Name Extradited to United States to Face Fraud, Money Laundering Counts

    Source: Office of United States Attorneys

    LOS ANGELES – A Swedish national was extradited from Spain and was arraigned today on a 115-count federal indictment alleging he licensed the rights of the late Colombian narcoterrorist Pablo Escobar and defrauded investors by marketing and selling products – including flamethrowers and cellphones – that he never delivered.

    Olaf Kyros Gustafsson, 31, a.k.a. “El Silencio,” arrived in Los Angeles this morning after Spanish authorities extradited him. Gustafsson is charged with one count of conspiracy to commit wire fraud and mail fraud, nine counts of wire fraud, three counts of mail fraud, one count of conspiracy to engage in money laundering, 41 counts of money laundering, 35 counts of international money laundering, and 25 counts of engaging in monetary transactions in property derived from specified unlawful activity.

    Gustafsson was arrested in Spain in December 2023 and was arraigned this afternoon in United States District Court in downtown Los Angeles. Gustafsson pleaded not guilty to the charges against him. A May 20 trial date was scheduled. A federal magistrate judge scheduled an April 3 detention hearing. Gustafsson remains in federal custody. 

    According to the indictment, Gustafsson was the CEO of Escobar Inc., a corporation registered in Puerto Rico that held successor-in-interest rights to the persona and legacy of Pablo Escobar, the deceased Colombian narcoterrorist and head of the Medellín Cartel. Escobar Inc. used Pablo Escobar’s likeness and persona to market and sell purported consumer products to the public.

    From July 2019 to November 2023, Gustafsson identified existing products in the marketplace that were being manufactured and sold to the public. He then used the Escobar persona to market and advertise similar and competing products purportedly being sold by Escobar Inc., advertising them at a price substantially lower than existing counterparts being sold by other companies.

    Gustafsson then purportedly sold the products – including an Escobar Flamethrower, an Escobar Fold Phone, an Escobar Gold 11 Pro Phone, and Escobar Cash (marketed as a “physical cryptocurrency”) – to customers, receiving payments via PayPal, Stripe, Coinbase, among other payment processors.

    Despite receiving customer payments, Gustafsson did not deliver the Escobar Inc. products to paying customers because the products did not exist.

    In furtherance of the scheme, Gustafsson sent crudely made samples of the purported Escobar Inc. products to online technology reviewers and social media influencers to attempt to increase the public’s demand for them. For example, Gustafsson allegedly sent Samsung Galaxy Fold Phones wrapped in gold foil and disguised as Escobar Inc. phones to online technology reviewers to attempt to induce victims who watched the online reviews into buying the products that never would be delivered.

    Also, rather than sending paying customers the actual products, Gustafsson mailed them a “Certificate of Ownership,” a book or other Escobar Inc. promotional materials so there was a record of mailing from the company to the customer. When a paying customer attempted to obtain a refund when the product was never delivered, Gustafsson fraudulently referred the payment processor to the proof of mailing for the Certificate of Ownership or other material as proof that the product itself was shipped and that the customer had received it so the refund requests would be denied.

    Some of the victims include residents of Los Angeles, Gardena, and Commerce.

    Gustafsson allegedly also caused bank accounts to be opened under his name and entities he controlled to be used as funnel accounts – bank accounts into which he deposited and withdrew proceeds derived from his criminal activities. The purpose was to conceal and disguise the nature, location, source, ownership, and control of the proceeds. The bank accounts were located in the United States, Sweden, and the United Arab Emirates.

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

    IRS Criminal Investigation, the FBI, and the Federal Deposit Insurance Corporation-Office of Inspector General are investigating this matter, with assistance from the Department of Justice’s Office of International Affairs, the United States Marshals Service, and the European Union Agency for Criminal Justice Cooperation.

    Assistant United States Attorney Joshua O. Mausner of the Violent and Organized Crime Section is prosecuting this case.

    MIL Security OSI –

  • MIL-OSI USA: Magaziner Introduces Bill to Incentivize Production of More Affordable Housing Using the Historic Tax Credit

    Source: US Representative Seth Magaziner (RI-02)

    WASHINGTON, DC — Today, Representative Seth Magaziner introduced legislation that requires the National Park Service (NPS) to report on how the implementation of the Historic Tax Credit (HTC) program can be improved to remove barriers to the development of affordable housing and increase production. 

    “Every Rhode Islander deserves to have a safe, affordable place they can call home, and Rhode Island’s large stock of historic buildings can be an incredible resource to create much-needed housing,” said Representative Magaziner. “My bill makes the Historic Tax Credit program  more compatible with affordable housing needs by encouraging the utilization of the program for more housing development. This will help preserve the historic character of these buildings while making more homes available for those who need them.”

    For decades, the National Park Service has successfully administered the Historic Tax Credit program, having completed 49,000 rehabilitation projects, created 3.2 million jobs, and led a program that’s produced a net benefit to taxpayers since its inception. Historic Tax Credits have served as the catalyst for decades of successful rehabilitation and adaptive reuse projects that have expanded America’s housing stock.

    Since 1976, the National Park Service has helped restore and repurpose historic buildings into housing, but inefficiencies in the Historic Tax Credit program continue to slow down development. To address these barriers, this bill requires a report on how the program is administered, including data on application processing times, approval conditions, and other common roadblocks that delay projects. The report will also identify ways to improve program standards, streamline the approval process, and provide clearer guidance on converting nonresidential buildings into housing, while preserving the historic character of these structures and expanding affordable housing development.

    Read the full bill here.

    ###

    MIL OSI USA News –

  • MIL-OSI Europe: Written question – EU-wide minimum taxation of high net worth individuals – E-001207/2025

    Source: European Parliament

    Question for written answer  E-001207/2025
    to the Commission
    Rule 144
    Fabio De Masi (NI)

    • 1.Does the Commission support the proposal for an EU-wide minimum tax on high net worth individuals, as set out in the recent report of the EU Tax Observatory[1]?
    • 2.To what extent is the Commission planning initiatives, action plans or measures that reflect or embrace this proposal?

    Submitted: 20.3.2025

    • [1] https://www.taxobservatory.eu//www-site/uploads/2025/03/Resources-for-a-Safe-and-Resilient-Europe_The-Case-for-Minimum-Taxation-of-Ultra-High-Net-Worth-Individuals-in-the-EU-1.pdf
    Last updated: 28 March 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Answer to a written question – Request to eliminate subsidies for Morocco – E-000245/2025(ASW)

    Source: European Parliament

    EU development cooperation with non-EU countries is a parallel competence of the EU and the Member States. The Commission ensures that cooperation with non-EU countries aligns with EU interests and does not harm Member States by enforcing strict eligibility criteria, transparency standards and robust monitoring systems.

    Concerning the logistical corridors in southern Europe, the Algeciras — Bobadilla railway forms an integral part of the Mediterranean and Atlantic European Transport Corridors.

    The designated coordinators of both corridors are committed to ensuring that this line is developed and upgraded within the given deadlines and complies with the defined infrastructure standards of the new trans-European transport network (TEN-T) Regulation (EU) 1679/2024[1], which was adopted in June 2024. In the TEN-T Regulation, the Algeciras — Bobadilla railway line is designated as a core network line for both freight and passenger services.

    The Commission closely analyses and monitors EU country partners’ policies that may affect the European economy. For instance, as regards tax good governance standards that were developed based on t he Commission’s 2016 External Strategy for Effective Taxation[2], Morocco currently complies with all the criteria of the EU list of non-cooperative jurisdictions for tax purposes, after amending the preferential tax regime (Casablanca Finance City) in 2020, thus addressing potential threats to Member States’ tax base.

    The Code of Conduct Group for business taxation, with technical assistance of the Commission, will monitor that Morocco continues to comply with the EU listing criteria.

    Understanding the impact that Morocco’s policies could have is vital for crafting appropriate strategies to support EU industries’ growth and competitiveness and safeguard the EU common market.

    • [1] http://data.europa.eu/eli/reg/2024/1679/oj
    • [2] COM(2016) 24 final.
    Last updated: 28 March 2025

    MIL OSI Europe News –

  • MIL-OSI: Conifer Holdings Reports 2024 Fourth Quarter and Year End Financial Results

    Source: GlobeNewswire (MIL-OSI)

    TROY, Mich., March 28, 2025 (GLOBE NEWSWIRE) — Conifer Holdings, Inc. (Nasdaq: CNFR) (“Conifer” or the “Company”) today announced results for the fourth quarter and year ended December 31, 2024.  

    Year End 2024 Financial Highlights

    • Net income allocable to common shareholders of $23.5 million
    • $61 Million gain on sale of insurance agency operations in August 2024
    • Continuing Personal Lines business profitable for the fourth quarter of 2024
    • Book value per share of $1.76 as of December 31, 2024

    Management Comments

    Brian Roney, CEO of Conifer, commented, “2024 was indeed a transitional year for Conifer Holdings as we successfully sold our insurance agency operations, paid down considerable debt, further strengthened reserves, streamlined our organization overall, and focused our production efforts on select personal lines going forward.”

    Reduction of Commercial Lines Business

    For the full year 2024, total Gross Written Premium was down almost 50% from the prior year, and Net Earned premium was down 27.5% for the same period. As a result of the sale of Conifer’s insurance agency operations, completed in August 2024, we anticipated and planned for this significant decline in Commercial Lines revenue. We expect Commercial Lines business to represent a diminishing percentage of total gross written premium going forward.

    Future premiums are expected to consist primarily of Personal Lines business, notably our homeowner’s insurance portfolio in Texas and the Midwest. As detailed in the Personal Lines results overview below, gross written premium for those lines of business for the fourth quarter of 2024 increased 10.6% from the prior year period and increased 23.4% for the full year 2024 over the prior year.

    Additional information regarding the disposal of Conifer’s agency business and its impact on future Company operations can be found in the Company’s 2024 Annual Report to be filed March 28, 2025 on Form 10-K.

    2024 Fourth Quarter and Full Year Financial Results Overview

           
      At and for the
    Three Months Ended December 31,    		   At and for the
    Year Ended December 31,
      2024   2023   % Change
    		   2024   2023   % Change
      (dollars in thousands, except share and per share amounts)
                           
    Gross written premiums $ 13,683     $ 24,398     -43.9 %   $ 72,053     $ 143,834     -49.9 %
    Net written premiums   9,526       15,329     -37.9 %     49,338       68,688     -28.2 %
    Net earned premiums   12,708       14,821     -14.3 %     60,862       83,935     -27.5 %
                           
    Net investment income   1,352       1,411     -4.2 %     5,763       5,447     5.8 %
    Net realized investment gains (losses)   –       (20 )   **     (125 )     (20 )   **
    Change in fair value of equity investments   (21 )     13     261.5 %     (203 )     608     -133.4 %
                           
    Net income (loss) allocable to common shareholders   (25,382 )     (19,479 )   -30.3 %     23,530       (25,923 )   **
     Net income (loss) allocable to common shareholders $ (2.08 )   $ (1.59 )   -30.3 %   $ 1.93     $ (2.12 )    
     per share, diluted                      
                           
    Adjusted operating income (loss)*   (25,821 )     (19,411 )   -33.0 %     (34,558 )     (27,867 )   -24.0 %
     Adjusted operating income (loss) per share, diluted* $ (2.11 )   $ (1.59 )   -32.7 %   $ (2.83 )   $ (2.28 )   -24.1 %
                           
    Book value per common share outstanding $ 1.76     $ 0.24         $ 1.76     $ 0.24      
                           
    Weighted average shares outstanding, basic and diluted   12,222,881       12,222,881           12,222,881       12,220,551      
                           
    Underwriting ratios:                      
     Loss ratio (1)   254.6 %     191.1 %         120.2 %     97.8 %    
     Expense ratio (2)   38.3 %     40.6 %         35.8 %     37.1 %    
     Combined ratio (3)   292.9 %     231.7 %         156.0 %     134.9 %    
                           
    * The “Definitions of Non-GAAP Measures” section of this release defines and reconciles data that are not based on generally accepted accounting principles.
    ** Percentage is not meaningful                      
    (1) The loss ratio is the ratio, expressed as a percentage, of net losses and loss adjustment expenses to net earned premiums and other income from underwriting operations.
    (2) The expense ratio is the ratio, expressed as a percentage, of policy acquisition costs and other underwriting expenses to net earned premiums and other income from underwriting operations.
    (3) The combined ratio is the sum of the loss ratio and the expense ratio. A combined ratio under 100% indicates an underwriting profit. A combined ratio over 100% indicates an underwriting loss.
                           

    2024 Fourth Quarter Gross Written Premium

    Gross written premiums decreased 43.9% in the fourth quarter of 2024 to $13.7 million, compared to $24.4 million in the prior year period. This decrease reflects the Company’s operational shift away from commercial lines insurance business given the sale of our agency group earlier in the year.

    Commercial Lines Financial and Operational Review

             
      Three Months Ended December 31,   Year Ended December 31,  
      2024   2023   % Change 2024   2023   % Change
    		  
      (dollars in thousands)  
                             
    Gross written premiums $ 3,124     $ 14,850     -79.0 %   $ 26,686     $ 107,078     -75.1 %  
    Net written premiums   488       7,009     93.0 %     14,541       36,580     -60.2 %  
    Net earned premiums   4,254       7,296     -41.7 %     28,160       59,221     -52.4 %  
                             
    Underwriting ratios:                        
    Loss ratio   650.8 %     316.7 %         184.8 %     105.7 %      
    Expense ratio   33.8 %     38.4 %         29.8 %     35.5 %      
    Combined ratio   684.6 %     355.1 %         214.6 %     141.2 %      
                             
    Contribution to combined ratio from net                        
    (favorable) adverse prior year development   550.9 %     205.5 %         118.5 %     32.3 %      
                             
    Accident year combined ratio (1)   133.7 %     149.6 %         96.1 %     108.9 %      
                             
    (1) The accident year combined ratio is the sum of the loss ratio and the expense ratio, less changes in net ultimate loss estimates from prior accident year loss reserves. The accident year combined ratio provides management with an assessment of the specific policy year’s profitability and assists management in their evaluation of product pricing levels and quality of business written.  
       
                             

    The Company’s commercial lines production was down 79% for the fourth quarter of 2024 and represented roughly 23% of total gross written premium in quarter. Commercial Lines net earned premium was down 41.7% for the same period. The Commercial Lines loss ratio for the quarter increased significantly as the Company’s management focused on additional commercial lines reserve strengthening overall.

    Personal Lines Financial and Operational Review

                             
      Three Months Ended December 31,   Year Ended December 31,  
      2024   2023   % Change
    		   2024   2023   % Change
    		  
      (dollars in thousands)  
                             
    Gross written premiums $ 10,559     $ 9,548     10.6 %   $ 45,367     $ 36,756     23.4 %  
    Net written premiums   9,038       8,320     8.6 %     34,797       32,108     8.4 %  
    Net earned premiums   8,454       7,525     12.3 %     32,702       24,714     32.3 %  
                             
    Underwriting ratios:                        
    Loss ratio   55.2 %     69.0 %         64.6 %     78.9 %      
    Expense ratio   40.6 %     42.7 %         41.1 %     40.7 %      
    Combined ratio   95.8 %     111.7 %         105.7 %     119.6 %      
                             
    Contribution to combined ratio from net                        
    (favorable) adverse prior year development   0.9 %     -2.6 %         0.8 %     -5.6 %      
                             
    Accident year combined ratio   94.9 %     114.3 %         104.9 %     125.2 %      
                             

    Personal Lines premium represented 77% of total gross written premium for the fourth quarter of 2024. Personal Lines production increased 10.6% from the prior year period to $10.6 million for the quarter, led by growth in the Company’s low-value dwelling line of business in Texas and the Midwest.

    Despite storm activity in the full year, the combined ratio for personal lines business improved significantly in 2024 compared to the same period in 2023.

    Combined Ratio Analysis

     
      Three Months Ended
    December 31,
    		     Year Ended
    December 31,
    		  
      2024   2023     2024   2023  
         
                       
    Underwriting ratios:                  
    Loss ratio 254.6 %   191.1 %     120.2 %   97.8 %  
    Expense ratio 38.3 %   40.6 %     35.8 %   37.1 %  
    Combined ratio 292.9 %   231.7 %     156.0 %   134.9 %  
                       
    Contribution to combined ratio from net (favorable)                  
    adverse prior year development 185.0 %   100.0 %     55.3 %   21.2 %  
                       
    Accident year combined ratio 107.9 %   131.7 %     100.7 %   113.7 %  
                       

    Net Investment Income
    Net investment income increased 5.8% to $5.8 million for the year ending December 31, 2024, compared to $5.4 million in the prior year period.

    Change in Fair Value of Equity Securities
    During the quarter, the Company reported a loss of $21,000 from the change in fair value of equity investments, compared to a $13,000 gain in the prior year period.

    Net Income (Loss) allocable to common shareholders
    The Company reported a net loss allocable to common shareholders of $25.4 million, or $2.08 per share, for the fourth quarter of 2024. For the full year 2024, the Company reported net income allocable to common shareholders of $23.5 million, or $1.93 per share.

    Adjusted Operating Income (Loss)

    In the fourth quarter of 2024, the Company reported an adjusted operating loss of $25.8 million, or $2.11 per share. See Definitions of Non-GAAP Measures.

    About Conifer Holdings
    Conifer Holdings, Inc. is a Michigan-based property and casualty holding company. Through its subsidiaries, Conifer offers specialty insurance coverage for both commercial and personal lines, marketing through independent agents. The Company is traded on the Nasdaq Capital Market under the symbol CNFR. Additional information is available on the Company’s website at www.ir.cnfrh.com.

    Forward-Looking Statement

    This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance, and include Conifer’s expectations regarding future revenue, premiums, earnings, its capital position, expansion, and business strategies. The forward-looking statements contained in this press release are based on management’s good-faith belief and reasonable judgment based on current information. The forward-looking statements are qualified by important factors, risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those in the forward-looking statements, including those described in our Form 10-K (“Item 1A Risk Factors”) filed with the SEC on March 28, 2025 and subsequent reports filed with or furnished to the SEC. Any forward-looking statement made by us in this press release speaks only as of the date hereof or as of the date specified herein. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable laws or regulations.

    Definitions of Non-GAAP Measures
    Conifer prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual, and therefore is not reconciled to GAAP data.

    We believe that investors’ understanding of Conifer’s performance is enhanced by our disclosure of adjusted operating income. Our method for calculating this measure may differ from that used by other companies and therefore comparability may be limited. We define adjusted operating income (loss), a non-GAAP measure, as net income (loss) excluding: 1) net realized investment gains and losses, 2) change in fair value of equity securities 3) other gains and 4) net income from discontinued operations. We use adjusted operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance.

    Reconciliations of adjusted operating income (loss) and adjusted operating income (loss) per share:

       
        Three Months Ended December 31,   Year Ended December 31,  
        2024   2023   2024   2023  
        (dollar in thousands, except share and per share amounts)  
                     
    Net income (loss) $ (25,382 )   $ (19,460 )   $ 24,347     $ (25,904 )  
    Less:                
    Net realized investment gains (losses)   –       (20 )     (125 )     (20 )  
    Change in fair value of equity securities   (21 )     13       (203 )     608    
    Other gains   646       –       646       –    
    Net income from discontinued operations   (186 )     (42 )     58,587       1,375    
    Impact of income tax expense (benefit) from adjustments *   –       –       –       –    
    Adjusted operating income (loss) $ (25,821 )   $ (19,411 )   $ (34,558 )   $ (27,867 )  
                       
    Weighted average common shares, diluted   12,222,881       12,222,881       12,222,881       12,220,551    
                       
    Diluted income (loss) per common share:                
    Net income (loss) $ (2.08 )   $ (1.59 )   $ 1.99     $ (2.12 )  
    Less:                
    Net realized investment gains (losses)   –       –       (0.01 )     –    
    Change in fair value of equity securities   –       –       (0.02 )     0.05    
    Other gains   0.05       –       0.06       –    
    Net income from discontinued operations   (0.02 )     –       4.79       0.11    
    Impact of income tax expense (benefit) from adjustments *   –       –       –       –    
    Adjusted operating income (loss), per share $ (2.11 )   $ (1.59 )   $ (2.83 )   $ (2.28 )  
                       

    * The Company has recorded a full valuation allowance against its deferred tax assets as of December 31, 2024 and December 31, 2023, respectively. As a result, there were no taxable impacts to adjusted operating income from the adjustments to net income (loss) in the table above after taking into account the use of NOLs and the change in the valuation allowance.

             
    Conifer Holdings, Inc. and Subsidiaries  
    Consolidated Balance Sheets  
    (dollars in thousands)  
             
      December 31   December 31,  
       2024     2023   
    Assets        
    Investment securities:        
    Debt securities, at fair value (amortized cost of $117,827 and $ 105,665     $ 122,113    
    $135,370, respectively)        
    Equity securities, at fair value (cost of $1,836 and $2,385, respectively)   1,603       2,354    
    Short-term investments, at fair value   21,151       20,838    
    Total investments   128,419       145,305    
             
    Cash and cash equivalents   27,654       10,663    
    Premiums and agents’ balances receivable, net   9,901       29,364    
    Receivable from Affiliate   –       1,047    
    Reinsurance recoverables on unpaid losses   84,490       70,807    
    Reinsurance recoverables on paid losses   6,919       12,619    
    Prepaid reinsurance premiums   6,088       28,908    
    Deferred policy acquisition costs   6,380       6,405    
    Receivable from contingent considerations   8,070       –    
    Other assets   3,735       7,036    
    Assets from discontinued operations   –       3,452    
    Total assets $ 281,656     $ 315,606    
             
    Liabilities and Shareholders’ Equity        
    Liabilities:        
    Unpaid losses and loss adjustment expenses $ 189,285     $ 174,612    
    Unearned premiums   30,590       65,150    
    Reinsurance premiums payable   1       246    
    Debt   11,932       25,061    
    Funds held under reinsurance agreements   25,829       24,550    
    Premiums payable to other insureds   –       13,986    
    Liabilities from discontinued operations   –       4,083    
    Accounts payable and accrued expenses   2,494       5,029    
    Total liabilities   260,131       312,717    
             
    Commitments and contingencies   –       –    
             
    Shareholders’ equity:        
    Series A Preferred stock, no par value (10,000,000 shares authorized; 0 and 1,000      
    issued and outstanding, respectively)   –       6,000    
    Common stock, no par value (100,000,000 shares authorized; 12,222,881        
    issued and outstanding, respectively)   98,178       98,100    
    Accumulated deficit   (63,153 )     (86,683 )  
    Accumulated other comprehensive income (loss)   (13,500 )     (14,528 )  
    Total shareholders’ equity   21,525       2,889    
    Total liabilities and shareholders’ equity $ 281,656     $ 315,606    
             
             
    Conifer Holdings, Inc. and Subsidiaries
    Consolidated Statements of Operations (Unaudited)
    (dollars in thousands, except share and per share data)
                     
      Three Months Ended   Year Ended  
      December 31,   December 31,  
      2024   2023   2024   2023  
                     
    Revenue and Other Income                
    Premiums                
    Gross earned premiums $ 19,721     $ 38,115     $ 106,612     $ 146,572    
    Ceded earned premiums   (7,013 )     (23,294 )     (45,750 )     (62,637 )  
    Net earned premiums   12,708       14,821       60,862       83,935    
    Net investment income   1,352       1,411       5,763       5,447    
    Net realized investment gains (losses)   –       (20 )     (125 )     (20 )  
    Change in fair value of equity securities   (21 )     13       (203 )     608    
    Other gains   646       –       646       –    
    Other income   41       144       328       552    
    Total revenue and other income   14,726       16,369       67,271       90,522    
                     
    Expenses                
    Losses and loss adjustment expenses, net   32,349       28,470       73,302       82,413    
    Policy acquisition costs   3,535       2,392       13,335       15,797    
    Operating expenses   3,165       3,969       11,831       16,738    
    Interest expense   862       845       4,883       3,206    
    Total expenses   39,911       35,676       103,351       118,154    
                     
    Income (loss) from continuing operations before income taxes   (25,185 )     (19,307 )     (36,080 )     (27,632 )  
    Income tax expense (benefit)   11       111       (1,840 )     (353 )  
                     
    Net income (loss) from continuing operations $ (25,196 )   $ (19,418 )   $ (34,240 )   $ (27,279 )  
    Net income (loss) from discontinued operations   (186 )     (42 )     58,587       1,375    
    Net income (loss)   (25,382 )     (19,460 )     24,347       (25,904 )  
    Series A Preferred Stock Dividends and Redemption premium   –       19       817       19    
    Net income (loss) allocable to common shareholders   (25,382 )     (19,479 )     23,530       (25,923 )  
                     
    Earnings (loss) per common share, basic and diluted                
    Net income (loss) from continuing operations $ (2.06 )   $ (1.59 )   $ (2.87 )   $ (2.23 )  
    Net income (loss) from discontinued operations $ (0.02 )   $ (0.00 )   $ 4.79     $ 0.11    
    Net income (loss) allocable to common shareholders $ (2.08 )   $ (1.59 )   $ 1.93     $ (2.12 )  
                     
    Weighted average common shares outstanding,                
    basic and diluted   12,222,881       12,222,881       12,222,881       12,220,551    
                     

    For Further Information:
    Jessica Gulis, 248.559.0840
    ir@cnfrh.com

    The MIL Network –

  • MIL-OSI United Nations: Tax Systems Must Be Aligned with Sustainable Development, Economic and Social Council Told

    Source: United Nations 4

    While Technology Optimizes Collections, Globalization, Digitization Also Open Loopholes to Evasion

    (Note:  Full coverage of today’s Economic and Social Council meetings will be made available after their conclusion.)

    Speakers stressed the need for stronger global action to harness the power of taxation as a catalyst for sustainable development at today’s Economic and Social Council special meeting on international cooperation in tax matters.

    As the United Nations framework convention on this topic moves into the negotiating stage, the special meeting brings together Member States, members of the UN Committee of Experts on International Tax Cooperation (UN Tax Committee) and other stakeholders.  This year’s meeting addressed two themes:  inclusive and effective international tax cooperation and gender inclusivity through tax policy.

    In his opening remarks, Robert Rae (Canada), President of the Economic and Social Council, highlighted the 20 years of dialogue between the Council and the UN Tax Committee — comprising 25 members nominated by Governments and appointed by the UN Secretary-General — as “an effective model of how the United Nations system can mainstream specialized policy areas” across the broader development agenda.  “Fair tax systems and effective fiscal policies are powerful tools to mobilize resources [and] reduce inequalities,” he said. 

    Echoing that, Li Junhua, Under-Secretary-General for Economic and Social Affairs, noted that developing countries continue to lose significant resources through tax avoidance and evasion.  Stronger domestic tax administration and effective international engagement are necessary to address this.  It is further important to address systemic gender disparities by revealing hidden biases in tax policies, he added.

    Liselott Kana, Co-Chairperson of the UN Tax Committee, outlined the work of the expert body, including its updates to the UN Model Tax Convention and the Manual for the Negotiation of Bilateral Tax Treaties.  These updates “have significantly increased the UN Model’s profile and its influence in bilateral tax treaty negotiations”, she said.  The Committee’s work has expanded beyond traditional international tax issues to address domestic resource mobilization, she said, adding:  “This is the real world in which tax policymakers and decision makers have to operate.”

    Maria José Garde, Director-General of Taxation at the Ministry of Finance of Spain, highlighted that country’s experience with a highly digitalized tax administration.  Digitalization makes it possible for tax administration to become more efficient, facilitate compliance and simplify processes.  It also facilitates the use of artificial intelligence (AI) and big data to fight fraud and tax evasion.  However, it has also opened the door for tax evasion and avoidance, she pointed out.  Taxation does not only mean collecting taxes — “it’s also a powerful instrument to make progress and against inequality” through progressive policies that tax major fortunes or corporations, she pointed out.

    In a panel discussion moderated by Mathew Gbonjubola, Co-Chairperson of the UN Tax Committee, speakers examined challenges and opportunities to strengthen domestic resource mobilization.

    Ramesh Narain Parbat, Head of Tax Policy Division, Central Board of Direct Taxes at the Ministry of Finance of India, shared lessons from his country’s pathway towards a double-digit growth rate in direct tax collection.  He highlighted two financial social-welfare schemes — both linked to a unique identification number, enabling digitalization and obliteration of leakages.  The Government has also encouraged mobile-based digital payment platforms, which vegetable vendors now use to deposit and save money more efficiently, he said.

    The global tax system today reflects old economic realities, he said, noting that taxing rights have historically been tied to physical presence, which is outdated in today’s digital economy.  Digital businesses can make a lot of money in different countries, but pay little or no taxes.  Further, a fair allocation of tax rights must recognize the interconnected global supply chain value creation, he stressed.

    Africa Loses $100 Billion Yearly to Illicit Financial Flows

    Chenai Mukumba, Executive Director of Tax Justice Network Africa, noted that Africa loses $88.6 billion to $100 billion annually due to illicit financial flows — “resources that should be funding public services”.  Multinational corporations exploit gaps in transfer pricing rules, tax treaties and secrecy jurisdictions, reducing the continent’s tax base.  This has caused many African Governments to revert to regressive tax systems.  Kenya’s July 2024 protests over tax hikes illustrate this, she pointed out, adding:  “Overreliance on consumption taxes disproportionately affects lower-income populations, while high-net-worth individuals and large corporations remain undertaxed.”  “The current international tax system is fragmented,” and dominated by exclusive decision-making bodies, she said.  A UN tax convention could establish binding rules on corporate taxation, transparency and exchange of information, ensuring all countries have equal decision-making power.  African countries need a greater share of taxing rights to reflect the economic activities occurring within their borders.  “This looks like redesigning tax treaties to prevent excessive revenue losses and ensuring a fair allocation of profits,” she said. 

    “Tax is a jealously guarded sovereign right,” said Ben Dickinson, Deputy Director of Organisation for Economic Co-operation and Development (OECD) Centre for Tax Policy and Administration.  Countries choose to collaborate on taxation only where international collaboration is important for their domestic policy goals.  Also drawing attention to United Nations Development Programme’s (UNDP) partnership with Tax Inspectors Without Borders, he said it has helped countries realize over $2.4 billion in additional revenues.

    While there has been important progress in international corporate taxation, “no one area of tax policy will suffice to mobilize the scale of revenues required”, he warned.  Therefore, it is crucial to look at all policy areas, including value added tax, personal income tax, social security contributions and property taxation.

    The second part of the same panel discussion focused on “Taxation of Cross-Border Services — a multi-faceted approach” and featured the following panellists:  Thulani Shongwe, Head, African Multilateral Cooperation, African Tax Administration Forum; Marcio Ferreira Verdi, Executive Secretary of the Inter-American Center of Tax Administrations; and John Connors, Chair, Global Tax Commission, International Chamber of Commerce.

    …

    MIL OSI United Nations News –

  • MIL-OSI Security: Woburn Men Sentenced to Prison for Migrant Smuggling Conspiracy

    Source: Office of United States Attorneys

    BOSTON – Father and son owners of two Woburn, Mass. restaurants, Taste of Brazil—Tudo Na Brasa and The Dog House Bar and Grill, were sentenced yesterday in federal court in Boston for conspiring to smuggle migrants into the United States from Brazil. One defendant was also sentenced for money laundering conspiracy.

    Jesse James Moraes, 67, and Hugo Giovanni Moraes, 45, both of Woburn, were sentenced by U.S. District Court Judge Allison D. Burroughs. Jesse Moraes was sentenced to eight months in prison to be followed by three years of supervised release; and Hugo Moraes was sentenced to five months in prison to be followed by three years of supervised release, with the first five months in home confinement, and ordered to pay a $15,000 fine. In November 2024, the defendants pleaded guilty to conspiring to encourage and induce an alien to come to, enter, and reside in the United States, knowing or in reckless disregard of the fact that such coming to, entry, or residence is or will be in violation of law, for commercial advantage or private financial gain. Jesse Moraes also pleaded guilty to conspiracy to launder the proceeds of the migrant smuggling conspiracy.

    The conspiracy involved recruiting undocumented migrants in Brazil to come to the United States through Mexico without authorization in exchange for fees of between $12,000 and $22,000 per person. The migrants were encouraged to make fraudulent claims of asylum and familial relationship (e.g., parent and minor child) in the United States and were given fraudulent information about U.S. points of contact to give to immigration authorities when they were caught in the United States. Once migrants were in the United States, Jesse Moraes and Hugo Moraes helped them secure long-term housing, including in apartments owned by relatives of Hugo Moraes. The defendants arranged for some of the migrants to work at Tudo Na Brasa/Taste of Brazil and The Dog House Bar and Grill and paid the migrants either entirely or partly in cash unless and until the migrants obtained identification documents, at which point they would be paid at least partly by check.

    The defendants encouraged the migrants working for them to obtain false identification documents and referred them to a co-defendant, Marcos Chacon Gil, a/k/a Marquito,” to obtain such false identification documents. The co-conspirators agreed that some of the migrants could pay off some of their smuggling fee once they reached the United States, which they did by direct payment, having their wages withheld, or by collection by relatives and other associates within and outside the United States.

    The money laundering conspiracy to which Jesse Moraes was sentenced involved transferring funds into and out of the United States with the intent to promote the migrant smuggling conspiracy and conducting financial transactions with the proceeds of the smuggling conspiracy that were designed to conceal the ownership and control of the proceeds.  

    United States Attorney Leah B. Foley; Michael J. Krol, Acting Special Agent in Charge for Homeland Security Investigations in New England; Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General; Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Woburn Police Chief Robert F. Rufo, Jr., made the announcement today. Valuable assistance in the investigation was provided by Immigration and Customs Enforcement, Enforcement and Removal Operations and the Norwood Police Department. Assistant U.S. Attorneys James D. Herbert, Kelly Lawrence and Samuel R. Feldman of the Criminal Division prosecuted the case.

    MIL Security OSI –

  • MIL-OSI USA: Kaine, Klobuchar, and Warner Announce Expected Vote Timing on their Bill to Undo Canada Tariffs that will Raise Costs

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine

    WASHINGTON, D.C. – Next Tuesday, April 1, the U.S. Senate is expected to vote on legislation led by U.S. Senators Tim Kaine (D-VA), Amy Klobuchar (D-MN), and Mark R. Warner (D-VA) to undo President Trump’s tariffs on Canadian goods, which amount to a 25 percent tax on goods imported from one of America’s top trading partners and closest allies. Since President Trump announced tariffs on Canada, there has been strong pushback from Americans, businesses, trade groups, and industry leaders.

    “President Trump’s taxes on Canadian goods have sent our economy into chaos, and Americans aren’t buying what he’s selling. They know they will pay the price with higher costs for everyday items, and their confidence in the economy is the lowest it has been in recent years,” said Kaine. “Many of my Republican colleagues in Congress have already expressed concerns about these tariffs, so the Senate’s upcoming vote on our legislation provides senators with the perfect opportunity to show Americans that they will stand up for their constituents and reverse the President’s disastrous economic policies.”

    “This Administration is igniting a reckless trade war and regular Americans are paying the price,” said Klobuchar. “Costs for everyone will go up and our farmers and businesses will suffer. Canada is Minnesota’s top trading partner and is a key U.S. ally. We must reverse these damaging tariffs before it’s too late.”

    “Trump’s tariffs on Canada are a self-inflicted wound—raising prices for American consumers, hurting workers, and straining one of our closest trade partnerships,” said Warner. “Now my Republican colleagues have an opportunity to weigh in—will they stand up for the American people or continue us down this damaging path?”

    In total, the tariffs President Trump announced on February 1 would cost the average American household up to $2,000 a year, with the Canada tariffs making up a significant portion of that. These tariffs represent the largest tax increase on American families in recent history. Polls have overwhelmingly demonstrated that the American people do not support Trump’s trade wars. According to a survey by Public First, just 28 percent of American adults supported specifically applying tariffs to Canada, while 43 percent opposed.

    In Virginia in 2024, Canada was the largest export market and accounted for 15 percent of Virginia exports. In Virginia in 2022, top goods exports to Canada included motor vehicles and transportation equipment, such as medium- and heavy-duty trucks. 56.1 percent of Southwest Virginia’s economic output is dependent on trade.

    Below is what Americans are saying about Trump’s tariffs on Canada:

    AFL-CIO Director of Government Affairs Jody Calemine: “On behalf of the AFL-CIO, I urge you to support S.J. Res. 37, a resolution introduced by Senator Tim Kaine to terminate the national emergency that was declared to justify tariffs on imports from Canada under the International Emergency Economic Powers Act (IEEPA)… However, imposing large, across the board tariffs on Canada aimed at non-trade objectives will only cause unnecessary economic pain for workers and businesses on both sides of the border.”

    International Association of Machinists and Aerospace Workers (IAM) International President Brian Bryant: “On behalf of the 600,000 active and retired members of the International Association of Machinists and Aerospace Workers (IAM), I write today in strong support of S.J. Res. 37… These new tariffs on Canada, one of our closest allies and largest trading partners, are unjust and will have lasting negative impacts on American and Canadian workers… The Trump administration’s erratic approach to tariffs is wreaking havoc on workers and businesses in the United States and Canada. Punishing one of our nation’s closest trading partners based on a false pretense is wrong and the action needs to be reversed.”

    International Federation of Professional and Technical Engineers (IFPTE) President Matthew S. Biggs and Secretary-Treasurer Gay Henson: “As the Executive Officers of the International Federation of Professional and Technical Engineers (IFPTE), representing 90,000 workers in the private, public, and federal sectors across North America, we are writing in support of S.J. Res. 37… Canada is America’s closest ally and number one trading partner. Our trading relationship uplifts American and Canadian working families alike. Imposing reckless tariffs on Canadian imports will harm both the U.S. and Canadian economies and do even greater harm to working families on both sides of the border. Congress must step in now to block this reckless and destructive policy.”

    National Taxpayers Union: “Canada is an important supplier of goods that strengthen U.S. security, including crude oil, natural gas, steel, and aluminum. Tariffs that restrict our access to these supplies and increase their cost will weaken our industrial base and undermine our ability to sustain our defense in the event of a national emergency.”

    Taxpayers Protection Alliance President David Williams: “TPA enthusiastically supports Sens. Tim Kaine and Rand Paul’s CRA to overturn President Trump’s February 1, 2025, national emergency declaration. This use of the International Emergency Economic Powers Act (IEEPA) is fraught with issues. The ensuing trade war will inevitably raise costs for consumers. Placing a 25 percent tariff on goods from Canada and Mexico will harm consumers and the vast majority of American businesses.”

    United Steelworkers (USW) International President David McCall: “On behalf of the 850,000 active members of the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW), I urge you to support S.J. Res. 37, a resolution introduced by Senator Tim Kaine to terminate the national emergency that was declared to impose duties on imports from Canada, under the International Emergency Economic Powers Act (IEEPA)… These new tariffs are misdirected, unsubstantiated by facts, and harmful to the very workers we represent.”

    The Wall Street Journal Editorial Board: “None of this is supposed to happen under the U.S.-Mexico-Canada trade agreement that Mr. Trump negotiated and signed in his first term. The U.S. willingness to ignore its treaty obligations, even with friends, won’t make other countries eager to do deals. Maybe Mr. Trump will claim victory and pull back if he wins some token concessions. But if a North American trade war persists, it will qualify as one of the dumbest in history.”

    The Washington Post Editorial Board: “Markets have plummeted since Trump announced new levies on Canada, Mexico and China, erasing nearly all gains since his election… The tariffs are still likely to be economically destructive: They will snarl global supply chains, raise costs to consumers and cause layoffs in industries that depend on imported inputs like steel… This means more than just additional pain for consumers whipsawed by inflation, higher prices on imports and, now, the possibility of a recession.”

    MIL OSI USA News –

  • MIL-OSI USA: Reps Issa, Hudson and Senator Risch Introduce Bicameral Legislation to Stop Improper State Taxes on Firearms

    Source: United States House of Representatives – Congressman Darrell Issa (CA-50)

    WASHINGTON – This week, Congressman Darrell Issa (CA-48), Congressman Richard Hudson (NC), and Senator Jim Risch (ID), introduced the Freedom from Unfair Gun Taxes Act. This bill would prohibit states from implementing excise taxes on firearms and ammunition to fund gun control programs.

    “For too many years, extreme state policies — including from my home state — have targeted our fundamental Second Amendment rights and the American citizens who exercise them,” said Issa. “The latest attack is California’s imposition of a ‘sin tax’ on firearms and ammunition. This outrageous and unfair burden on law-abiding citizens is why Sen. Risch, Rep. Hudson, and I are working to stop this and other attempts to penalize our people and put the price of self-defense out of reach of any American.”

    “Far-left politicians will stop at nothing to undermine the Second Amendment,” said Hudson. “Their latest scheme is an unconstitutional tax that seeks to price you out of your right to keep and bear arms, and this legislation will put a stop to it.”

    “Blue states that implement an excessive excise tax to fund gun control initiatives are exploiting the Second Amendment,” said Risch. “The Freedom from Unfair Gun Taxes Act ensures states do not place a significant financial burden on law-abiding gun owners to advance their anti-Second Amendment agenda.”

    In 2024, California implemented a new 11% excise tax on firearms and ammunition to discourage the purchase of firearms and fund gun control programs. Colorado is set to implement a 6.5% excise tax in April 2025. Maryland, Vermont, New York, Massachusetts, Washington, and New Mexico have proposed similar taxes. 

    Issa, Hudson and Risch are joined by Congressman Doug LaMalfa (CA), U.S. Senators Mike Crapo (R-Idaho), Marsha Blackburn (R-Tenn.), Bill Cassidy (R-La.), Kevin Cramer (R-N.D.), Steve Daines (R-Mont.), Deb Fischer (R-Neb.), Lindsey Graham (R-S.C.), John Hoeven (R-Mont.), Cindy Hyde-Smith (R-Miss.), Jim Justice (R-W.Va.), James Lankford (R-Okla.), and Pete Ricketts (R-Neb.) in introducing the legislation.

    The Freedom from Unfair Gun Taxes Act has received support from the Congressional Sportsmen’s Foundation, National Shooting Sports Foundation (NSSF), and National Rifle Association (NRA).

    “There is a growing effort among states to levy excise taxes to discourage firearm ownership. California and Colorado have already implemented a gun tax to fund their gun control efforts and dismantle the Second Amendment,” said John Commerford, Executive Director of the NRA Institute for Legislative Action. “Senator Risch’s bill would prevent these blatant and egregious attacks on the rights of Americans, and the National Rifle Association is proud to support this legislation.”

    ###

    MIL OSI USA News –

  • MIL-OSI Canada: Saskatchewan’s Health Human Resources Action Plan Delivers for Patients and Health Care Teams

    Source: Government of Canada regional news

    Released on March 28, 2025

    Innovative Saskatchewan-Based Solutions to Recruit, Train, Incentivize, Retain and Enhance Competitiveness

    The 2025-26 Budget invests $156.1 million in the Health Human Resources (HHR) Action Plan to deliver on government commitments to strengthen Saskatchewan’s health care system.

    Since the launch of the HHR Action Plan in September 2022, more than $460 million has now been invested in initiatives guided by the plan’s four pillars to accelerate the hiring and growth of health care professionals in Saskatchewan. 

    The HHR Action Plan is the result of ongoing support, collaboration, and partnerships between multiple ministries, health employers, health partner agencies, post-secondary institutions, and professional regulators. 

    More information on the 2025-26 Budget, including HHR Action Plan initiatives, is available at saskatchewan.ca/budget. 

    Recruit

    The Ministry of Health will receive $88.6 million in 2025-26 as part of the $156.1 million overall government investment to continue building on the success of HHR Action Plan initiatives. 

    This includes previously committed funding of $10.7 million to support ongoing work on established recruitment initiatives such as the Saskatchewan International Physician Practice Assessment (SIPPA) program, and recruitment of internationally educated health care workers. These funds will also advance hiring of physician assistants and clinical assistants, and support the Saskatchewan Healthcare Recruitment Agency.

     “Continued investment into our ambitious HHR Action Plan ensures Saskatchewan remains an attractive place for health care professionals to live, work and build a career,” Health Minister Jeremy Cockrill said. “I am pleased to see steady progress being made on multiple initiatives to recruit, train, incentivize and retain more health professionals, strengthen health care teams and deliver improved patient care to residents in communities across the province.”

    Since September 2022, Saskatchewan has seen impressive recruitment results, with 488 physicians establishing practice in the province, which includes 38 from outside the country. These efforts resulted in 243 family physicians and 245 specialists establishing their practices in the province.

    Nearly 1,880 nursing graduates from in-and out-of-province were hired between April 2023 and December 2024, and more than 400 internationally educated healthcare professionals from the Philippines are working in communities across the province.

    Train

    Training plays a pivotal role in shaping a dynamic health care workforce and is integral to realizing the goals of the HHR Action Plan. Since December 2022, Saskatchewan has invested approximately $170 million to support over 900 new health care training seats in 33 programs. 

     “A rewarding health care career begins with high-quality education and training,” Advanced Education Minister Ken Cheveldayoff said. “This significant investment in training supports our post-secondary institutions in helping build a capable, compassionate workforce that is ready to meet the needs of Saskatchewan citizens.”

    In 2025-26, the Government of Saskatchewan is delivering $81.3 million in operating, programming and capital funding to support health care training in areas of critical need to the province. 

    Approximately $35.3 million will support the continued expansion of health care training seats and add 60 new seats for registered nursing, nurse practitioner, registered psychiatric nursing and medical radiologic technology programs.

    Over $17 million will continue the development of four new training programs that will accept students in fall 2025 (physician assistant) and fall 2026 (speech-language pathology, occupational therapy, respiratory therapy). 

    An investment of $17.1 million will enable the University of Saskatchewan’s College of Medicine to expand family medicine and specialty residency seats, add more full-time academic physician positions, expand family medicine enhanced skills programs to regional sites and support operations. Medical residency seats have been increased to 150 seats. The province continues to fund eight undergraduate medical education seats that were part of previous expansions over the last two years, for a total of 108 undergraduate seats each year. 

    This year’s budget also delivers $1.5 million for clinical placement coordination and clinical oversight to support health training seat expansion in the post-secondary sector. 

    Incentives

    A range of attractive incentive programs, such as the Rural and Remote Recruitment Incentive has directly benefited over 50 communities across the province with more than 400 hard-to-recruit positions successfully filled. 

    The 2025-26 Health budget provides a total of $13 million for incentive programs, including the Rural and Remote Recruitment Incentive, Rural Physician Incentive Program and incentives for specialists. This includes new funding of $1 million to support recruitment of specialist physicians in high demand for recruitment areas experiencing shortages, such as anesthesia, psychiatry, breast and interventional radiology, emergency medicine and targeted pediatric subspecialists. 

    “The incentive program has demonstrated real progress in attracting new in-demand health care workers to our warm and welcoming communities,” Rural and Remote Health Minister Lori Carr said. “Ongoing investments in this area will continue attracting specialists, physicians, registered nurses and other highly sought health care workers to provide high-quality health care services and improve patient access across the province.”

    Since the launch of the HHR Action Plan, the province has also disbursed over $2.5 million in bursaries, such as over 600 Final Clinical Placement Bursaries, nearly 150 paramedic bursaries and other scholarships and available grants to encourage students to pursue a health care career. For 2025-26, there will be additional Final Clinical Placement bursaries available, for a total of 300 bursaries. In addition, many graduates are eligible for the Graduate Retention Tax Credits and student loan forgiveness programs.

    Retain

    Retention of health care staff has been a key area of focus, with the goal of promoting the rewarding benefits of a career in health care. 

    The 2025-26 Health budget provides a total investment of $44.7 million for retention initiatives. This includes $33.8 million to continue supporting 250 new and enhanced permanent full-time positions in high-priority occupations to stabilize staffing in rural and northern areas. New funding of $4.9 million will support 65 new and enhanced permanent full-time registered nurse positions to stabilize nursing in 30 rural and northern locations.

    -30-

    For more information, contact:

    MIL OSI Canada News –

  • MIL-OSI: Sword Group: Availability of preparatory documents for the Ordinary and Extraordinary General Meeting of 28 April 2025

    Source: GlobeNewswire (MIL-OSI)

    The  Ordinary  and  Extraordinary  General  Meeting  of Shareholders of Sword Group SE will be held  at 11 a.m. on 28 April 2025.

    The notice of meeting including the agenda was published in the RESA (Recueil électronique des sociétés et associations) and in the Luxemburger Wort on 28 March 2025.

    The terms and conditions for attending and voting at this meeting are set out in this notice.

    The documents and information that must be provided at the General Meeting, together with the single form for participation,  postal voting  and  proxy (the  «Single Form»),  are  available  on the  Company’s  website  here and at the registered office for an uninterrupted period commencing on  the  day of  publication  of this  notice and  ending  on  the  day  after  the  General Meeting. Upon presentation of their shares, shareholders may obtain copies of the documents free of charge under the applicable legal conditions.

    Registered shareholders must send the Company the duly completed, dated and signed Single Form, together, where applicable, with the registration certificate, which must be received by the Company no later than 24 April 2025 by e-mail (to investorrelations@sword-group.lu).

    Dividend
    €2.0 gross per shre
    Ex-date: April 30, 2025
    Payment: May 2, 2025
    Pending approval at the Annual General Meeting on April 28.

    Calendar
    24/04/25 | 2025 First Quarter Revenue

    24/07/25 | 2025 Second Quarter Revenue

    About Sword Group
    Sword has 3,200+ IT/Digital specialists active in 50+ countries to accompany you in the growth of your organisation in the digital age.
    As a leader in technological and digital transformation, Sword has a solid reputation in complex IT & business project management.
    Sword optimises your processes and enhances your data.

    Attachment

    The MIL Network –

  • MIL-OSI: Sword Group: Information on the Number of Shares and Voting Rights at 28/02/2025

    Source: GlobeNewswire (MIL-OSI)

    INFORMATION ON THE NUMBER OF SHARES AND VOTING RIGHTS AT 28/02/2025

    Total Number of Shares: 9,544,965
    Number of theoretical voting rights: 9,544,965
    Number of exercisable voting rights: 9,434,468

    Dividend
    €2.0 gross per shre
    Ex-date: April 30, 2025
    Payment: May 2, 2025
    Pending approval at the Annual General Meeting on April 28.

    Calendar
    24/04/25 | 2025 First Quarter Revenue

    24/07/25 | 2025 Second Quarter Revenue

    About Sword Group
    Sword has 3,200+ IT/Digital specialists active in 50+ countries to accompany you in the growth of your organisation in the digital age.
    As a leader in technological and digital transformation, Sword has a solid reputation in complex IT & business project management.
    Sword optimises your processes and enhances your data.

    Attachment

    The MIL Network –

  • MIL-OSI: Sword Group: Availability of the 2024 Financial Report

    Source: GlobeNewswire (MIL-OSI)

    According to the current regulations, Sword Group announces that its 2024 Financial Report has been made available to the public.

    It was sent to the Commission de Surveillance du Secteur Financier (CSSF) and was also filed with the Luxembourg Stock Exchange.

    It can be viewed and downloaded on the website of the company:

    2024 FINANCIAL REPORT

    Dividend
    €2.0 gross per shre
    Ex-date: April 30, 2025
    Payment: May 2, 2025
    Pending approval at the Annual General Meeting on April 28.

    Calendar
    24/04/25 | 2025 First Quarter Revenue

    24/07/25 | 2025 Second Quarter Revenue

    About Sword Group
    Sword has 3,200+ IT/Digital specialists active in 50+ countries to accompany you in the growth of your organisation in the digital age.
    As a leader in technological and digital transformation, Sword has a solid reputation in complex IT & business project management.
    Sword optimises your processes and enhances your data.

    Attachment

    The MIL Network –

  • MIL-OSI: Equasens: 2024 annual results

    Source: GlobeNewswire (MIL-OSI)

    Villers-lès-Nancy, 28 March 2025 – 6:00 p.m. (CET)

    PRESS RELEASE

    2024 annual results

    • Full-year results adversely affected by difficult economic conditions in H1 combined with continuing investment efforts:
      • Revenue: €216.8m (-1.4%)
      • Current Operating Income: €45.1m (-19.2%)
      • Net profit attributable to Group shareholders: €36.2m (-23.0%)
    • At the same time, profit margins remained high, and even improved over the year:
      • Current operating income / Revenue: 20.8% on a reported basis (H1: 19.3% and H2: 22.3%)
      • Solid balance sheet structure: financial surplus remains strong at €79.5m
      • Annual dividend proposal: €1.25 per share
    • 2025 outlook:
      • Return to revenue growth of close to 10% by the end of 2025
      • Deployment of new solutions integrating artificial intelligence
      • New cloud solutions generating recurring revenues
      • Strategy of external growth in France and Europe maintained
    2024 RESULTS (€m) 2023
    Reported basis    		 2024
    Reported basis    		 Change / Reported basis of which External growth
    Revenue 219.7 216.8 -3.0 -1.4% 7.2
    Current Operating Income (COI) 55.8 45.1 -10.7 -19.2% 0.1
    Net Profit 48.9 37.8 -11.1 -22.7%  
    Net Profit attributable to the Group 47.0 36.2 -10.8 -23.0%  

    On 28 March 2025, the Board of Directors of EQUASENS, chaired by Thierry CHAPUSOT, examined and approved the financial statements for the year ended 31 December 2024 in the presence of the Statutory Auditors and Sustainability Auditor. The audit procedures for the consolidated accounts have been completed. The auditors’ report will be issued after the management report has been reviewed and the procedures for filing the annual report have been completed.

    2024 COI (€m) / Division 2023
    Reported basis    		 2024
    Reported basis    		 Change / Reported basis of which
    External growth
    Pharmagest 36.7 30.7 -6.0 -16.4% 0.2
    Axigate Link 10.4 10.2 -0.2 – 2.3%  
    e-Connect 6.7 4.8 -1.9 -28.0%  
    Medical Solutions 2.2 0.2 -2.0 -92.0% -0.1
    Fintech -0.2 -0.8 -0.6 –  
    Current Operating Income 55.8 45.1 -10.7 -19.2% 0.1

    2024 highlights

    • January: Acquisition of a 70% majority stake in DIGIPHARMACIE, an expert in digitisation and management of pharmacy supplier invoices. In November, the company was registered subject to conditions for inclusion in the French electronic invoicing reporting platform (Plateforme de Dématérialisation Partenaire or PDP);
    • In December: Acquisition of a 90% stake in CALIMED, a practice management software editor for private practice surgeons, general practitioners and specialists.

    Detailed Analysis by Division

    PHARMAGEST Division: a contraction in earnings reflecting lower like-for-like sales and investments to strengthen teams in Europe (COI/Sales: 18.8% in 2024 and 20.4% for H2 alone)

    The decline in the Division’s operating income was mainly attributable to the unfavourable economic climate in the first half of the year, which led to a sharp drop in sales in France in the configuration and hardware segment.
    In this context, the Division’s business development strategy, focused on acquiring new customers and rolling out new software and hardware solutions, helped contribute to renewed momentum in the second half of the year.
    And without calling into question the efforts to ramp up teams in the first half, cost rationalization measures were implemented which contributed to a profit margin of 21.1% in H2 for historical activities.
    It should be noted that the temporary dilutive effect from the most recent changes in scope on the Division’s average profitability is 0.7% in 2024.

    AXIGATE LINK Division: a consistently high rate of profitability (COI/Sales: 31.8% in 2024 and 34.8% for H2 alone)

    The Division delivered a significant performance in H2 driven by growth in revenue in most of its businesses. This growth makes it possible to absorb the costs of deploying new SaaS solutions (TitanLink) and extending the homecare service offering (DomiLink) for the relevant regional care coordination entities (CRT).

    E-CONNECT division: current operating income declined in response to lower sales (COI/Sales: 42.9% in 2024 and 40.5% for H2 alone)

    As previously reported, the Division’s sales and earnings were boosted in 2023 by the announcement of the discontinuation of Application Reader Terminal sales and strong demand from non-Group software publishers in response.

    Despite this less favourable context, by adopting rigorous cost control and maintaining steady sales with Group software publishers, the division’s profit remained high.

    MEDICAL SOLUTIONS Division: a year of transition from the Ségur programme to a focus on new software solutions (COI/Sales: 2.2% in 2024 and 4.4% for H2 alone)

    Following the roll-out of MédiStory 4 and the Ségur programme, the Division is building a new business model based on a strategy of cross-selling and recurring revenues.
    The cost of developing new software solutions, notably the LOQUii AI voice consultation assistant, launched in Q4 2024, as well as the overhaul of distribution channels, are temporarily impacting the Division’s profitability.

    FINTECH Division: a deterioration in operating income in the second half of the year (COI/Sales: -38.1% in 2024 and -73.4% in H2 alone)

    After a rather encouraging first half, the default of a business contributor forced the Division to book a provision for impairment of €0.5m.

    2024 consolidated balance sheet highlights

    • Cash flow after interest and tax came to €46.9m.
      • In addition to dividends, financial resources are mainly devoted to R&D investments, IT infrastructure and external growth (€21.1m) and debt reduction (€12.6m).
      • Despite these significant investments, the financial surplus remains favourably oriented at €79.5m, compared with €79.3m at 12/31/2023, giving the Group considerable autonomy and investment capacity to support its growth strategy.
      • It should be noted that IFRS 16 lease liabilities and put options for minority shareholders are now recorded under “Other liabilities”.

    Proposed dividend

    The Board of Directors will propose the payment of a gross dividend of €1.25 per share for fiscal 2024 at the Annual General Meeting on June 25, 2025.

    2025 outlook

    Backed by investments in R&D, infrastructure and human capital both in France and in Europe, the Group maintains its target of a return to revenue growth in 2025, with positive momentum in H1 followed by a marked acceleration in H2, with anticipated nominal growth of close to 10%.

    This growth trajectory will be bolstered by:

    • Innovation and Artificial Intelligence as drivers of differentiation, for example LOQUii or id. genius;
    • The gradual transition of new solutions to a SaaS business model to boost recurring revenues;
    • The deployment of new high value-added solutions, such as id. express, id. pay, or solutions for large-scale deployment, like Kap-eCV;
    • The Group’s patient-focused strategy and multi-professional interoperability, with PandaLab and Multimeds.

    While profitability remains solid, it will continue to be impacted by the ongoing investments to prepare for this growth trajectory, which will be based on the Group’s ability to deliver innovative, value-creating offerings to its customers.

    Financial calendar:

    • 31 March 2025: Presentation of FY 2024 results
    • 12 May 2025: Publication of Q1 2025 revenue
    • 25 June 2025: Annual General Meeting
    • 31 July 2025: Publication of Q2 2025 revenue
    • 26 September 2025: 2025 H1 results
    • 5 November 2025: Publication of Q3 2025 revenue
    • 5 February 2026: Publication of FY 2025 revenue

    About Equasens Group

    Founded over 35 years ago, Equasens Group, a leader in digital healthcare solutions, today employs over 1.300 people across Europe.
    Equasens Group’s specialised business applications facilitate the day-to-day work of healthcare professionals and their teams, working in private practice, collaborative medical structures or healthcare establishments. The Group also provides comprehensive support to healthcare professionals in the transformation of their profession by developing electronic equipment, digital solutions and healthcare robotics, as well as data hosting, financing and training adapted to their specific needs.
    And reflecting the spirit of its tagline “Technology for a More Human Experience”, the Group is a leading provider of interoperability solutions designed to improve coordination between healthcare professionals, their communications and data exchange resulting in better patient care and a more efficient and secure healthcare system.

    Listed on Euronext Paris™ – Compartment B

    Indexes: MSCI GLOBAL SMALL CAP – GAÏA Index 2020 – CAC®SMALL and CAC®All-Tradable
    Included in the Euronext Tech Leaders segment and the European Rising Tech label

    Eligible for the Deferred Settlement Service (“Service à Réglement Différé” – SRD) and equity savings accounts invested in small and mid-caps (PEA-PME).
    ISIN: FR 0012882389 – Ticker Code: EQS

    Get all the news about Equasens Group www.equasens.com and on LinkedIn

    CONTACTS

    Analyst and Investor Relations:
    Chief Administrative and Financial Officer: Frédérique Schmidt
    Tel: +33 (0)3 83 15 90 67 – frederique.schmidt@equasens.com

    Financial communications agency:
    FIN’EXTENSO – Isabelle Aprile

    Tel.: +33 (0)6 17 38 61 78 – i.aprile@finextenso.fr

    Forward-looking statements
    This press release contains forward-looking statements that are not guarantees of future performance and are based on current opinions, forecasts and assumptions, including, but not limited to, assumptions about Equasens’ current and future strategy and the environment in which Equasens operates. These involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements, or industry results or other events, to materially differ from those expressed in or implied by such forward-looking statements. These risks and uncertainties include those detailed in Chapter 3 “Risk factors” of the Universal Registration Document filed with the French financial market authority (Autorité des Marchés Financiers or AMF) on April 29, 2024 under number D.24-0366. These forward-looking statements are valid only as of the date of this press release.

    Attachment

    The MIL Network –

  • MIL-OSI: Sword Group: H2 2024 Report of the Liquidity Agreement contracted with ODDO BHF

    Source: GlobeNewswire (MIL-OSI)

    from 01/07/2024 au 31/12/2024

    Under the liquidity contract awarded by Sword Group to ODDO BHF, as of 31/12/2024, the following resources appeared on the account of liquidity:
    8,755 shares
    €387,881
    – Number of transactions executed during the semester at purchase: 1 ,359
    – Number of transactions executed during the semester on sale: 1,435
    – Volume exchanged over the semester upon purchase: 56,560 shares for an amount of €1,969,285
    – Volume exchanged over the semester for sale: 57,641 shares for an amount of €2,018,690.25

    As a reminder, during the last balance sheet of 30/06/2024, the following resources appeared in the liquidity account:
    9,836 shares
    €3338,476

    The implementation of the liquidity contract is carried out in accordance with AMF Decision No. 2018-01 dated July 2, 2018, establishing liquidity contracts on equity securities as accepted market practice.

    About Sword Group
    Sword has 3,200+ IT/Digital & Software specialists present in 50+ countries to accompany you in the growth of your organisation in the digital age.
    As a leader in technological and digital transformation, Sword has a solid reputation in software publishing and in complex IT & business project management.
    Sword optimises your processes and enhances your data.

    Calendrier
    24/04/25 | 2025 First Quarter Revenue
    24/07/25 | 2025 Second Quarter Revenue

    Contact: investorrelations@sword-group.lu

    Attachment

    The MIL Network –

  • MIL-OSI Security: Former Deputy Director at District Office of Neighborhood and Safety Engagement Pleads Guilty to Bribery

    Source: Office of United States Attorneys

    Official Accepted at Least $10,000 in Cash to Direct Contracts and Grants to Company

                WASHINGTON – Dana McDaniel, 44, of Washington D.C., pleaded guilty today to bribery for accepting at least $10,000 in exchange for agreeing to use her position as Deputy Director at the District’s Office of Neighborhood Safety and Engagement (ONSE) to benefit another.

                The plea was announced by U.S. Attorney Edward R. Martin, Jr., FBI Special Agent in Charge Sean Ryan of the Washington Field Office Criminal and Cyber Division, Special Agent in Charge Darrell Waldon of the Internal Revenue Service Criminal Investigations Washington DC Field Office, and District of Columbia Inspector General Daniel W. Lucas.

                U.S. District Court Judge Rudolph Contreras set a sentencing date for August 6, 2025.

                According to court documents, from January 2020 to April 2023, McDaniel served as the Deputy Director of ONSE. In that role, McDaniel managed agency programming and community-based services focused on providing resources and interventions for at-risk individuals in at-risk communities impacted by violence in the District, including the Violence Intervention (VI) Initiative, a collaborative community engagement strategy designed to support D.C. residents in reducing gun-related violence in their communities.

                Court documents show that, prior to September 2022 and continuing through at least August 2024, McDaniel accepted at least $10,000 in cash from a Maryland resident to direct contracts and grants to two different District of Columbia-based businesses associated with the Maryland resident. Those companies included a company that represented itself as a community-based initiative to serve high-risk youths and adults and operated throughout the District, and a company that provided VI services as part of ONSE’s VI initiative in Ward 5.

                McDaniel faces a maximum of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

                This case is being investigated by the FBI Washington Field Office, with substantial assistance from Internal Revenue Service-Criminal Investigations and the District of Columbia Office of the Inspector General.

                It is being prosecuted by Assistant United States Attorneys Rebecca G. Ross, John Crabb, and Joshua Rothstein.

    MIL Security OSI –

  • MIL-OSI Security: Latin Music Talent Agency and Its CEO Found Guilty of Violating U.S. Sanctions by Doing Business with Cartel-Linked Concert Promoter

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

    LOS ANGELES – The CEO of a Latin music conglomerate and his talent agency were found guilty by a jury today of conspiring to violate the Foreign Narcotics Kingpin Designation Act by conducting business with a Guadalajara-based concert promoter with ties to Mexican drug cartels.

    José Ángel Del Villar, 44, of Huntington Beach, the CEO of Del Records and its related talent agency Del Entertainment Inc., was found guilty of one count of conspiracy to transact in property of specially designated narcotics traffickers in violation of the Kingpin Act and 10 counts of violating the Kingpin Act.

    Co-defendant Del Entertainment also was found guilty of all 11 counts of which Del Villar was convicted.

    According to evidence presented at a nine-day trial, in April 2018, the defendants did business with Jesús Pérez Alvear, a.k.a. “Chucho,” of Guadalajara, Mexico, a music promoter who controlled Gallistica Diamante, a.k.a. Ticket Premier. Pérez promoted concerts for Del Entertainment in Mexico until March 2019.

    The U.S. Treasury Department listed Pérez and his company as “specially designated narcotics traffickers” under the Kingpin Act on April 6, 2018, after concluding he facilitated money laundering for the Cartel de Jalisco Nueva Generación (CJNG) and the Los Cuinis drug trafficking organization. The Kingpin Act prevents people in the United States from conducting business with sanctioned persons and entities.

    Even though Del Villar and Del Entertainment were aware that it was illegal to engage in transactions or dealings with Pérez, they willfully did business with him by continuing to have a Del Entertainment musical artist perform at concerts in which Pérez and Del Entertainment had a financial interest.

    For example, on April 19, 2018, FBI agents approached a well-known musician and explicitly told him about Pérez’s designation under the Kingpin Act and how that prohibited him from conducting business with Pérez and performing concerts that Pérez promoted.

    On April 28, 2018, the musician performed at a music concert which Pérez organized. Del Villar’s credit card was used to pay for a private jet that brought the musician from Van Nuys Airport to the performance in Aguascalientes, Mexico.

    On multiple other occasions in 2018 and 2019, Pérez and Del Villar continued to do business by arranging for the musician to perform at concerts in Mexico – including Mexicali and San José Iturbide, Guanajuato.

    “The defendants here chose to get into business with an individual they knew had ties to the CJNG and had been designated a narcotics trafficker under the Kingpin Act,” said Acting United States Attorney Joseph McNally. “Cartels and transnational criminal organizations cause immeasurable harm to our country. We are using every tool to eliminate these organizations and will prosecute those that do business with cartels.”

    “Doing business with government-sanctioned individuals is illegal and can have very serious consequences,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Today’s guilty verdict sends a message to music industry associates and others who engage in business with those sanctioned for laundering money for Mexican drug cartels will not be tolerated by the FBI, nor our partners at the IRS and the United States Attorney’s Office.”

    United States District Judge Maame Ewusi-Mensah Frimpong scheduled an August 15 sentencing hearing, at which time Del Villar will face a statutory maximum sentence of 30 years in federal prison for each count. Del Entertainment will face a sentence of five years of probation and a fine of $10 million for each count.

    Co-defendant Luca Scalisi, 58, of West Hollywood, has pleaded not guilty to the charges against him in this case and is scheduled to be tried separately in July 2025.

    Co-defendant Pérez, who previously pleaded guilty to conspiracy to transact in property of specially designated narcotics traffickers, was murdered in Mexico in December 2024. 

    The FBI and IRS Criminal Investigation investigated this matter. The Treasury Department’s Office of Foreign Assets Control provided significant assistance in this matter.

    Assistant United States Attorneys Benedetto L. Balding and Alexander B. Schwab of the Corporate and Securities Fraud Strike Force, and Kathrynne N. Seiden of the Terrorism and Export Crimes Section, prosecuted this case, with substantial assistance from the International Narcotics, Money Laundering, and Racketeering Section.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhood (PSN).

    This case 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 https://www.justice.gov/OCDETF. 

    MIL Security OSI –

  • MIL-OSI Security: Mortgage Broker That Ran a Ponzi Scheme, Fraudulently Acquired CARES Act SBA Loans, and Filed a False Tax Return is Sentenced to Federal Prison

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

    PROVIDENCE, RI – A Rhode Island mortgage broker who ran a Ponzi scheme with investors’ monies causing millions of dollars in losses, who fraudulently obtained more than $160,000 in COVID-19 pandemic-related SBA loans, and who failed to pay more than $140,000 in taxes due the IRS was sentenced today to more than four years in federal prison and was ordered to pay restitution to his victims, announced Acting United States Attorney Sara Miron Bloom.

    Joseph Giuttari, owner and operator of Hybrid Capital Group, LLC, THE FENS CO., LLC, and Realty Funding Advisors, LLC, was sentenced by U.S. District Court Judge Melissa R. DuBose to 55 months of incarceration to be followed by three years of supervised release. Additionally, Giuttari was ordered to pay a fine of $20,000 and to pay restitution to victims of his Ponzi scheme, to SBA loan programs, and to the IRS totaling $4,579,130.95.

    Mr. Giuttari pleaded guilty on October 31, 2024, to charges of wire fraud, theft of government property, and filing a false tax return.  The day after his guilty plea he engaged in brokerage activities in violation of his condition of release.  Upon discovery of his activities, the Court revoked its order of release and remanded him to the custody of the U.S. Marshal pending sentencing.

    Court documents reflect that Joseph Giuttari purported to match borrowers seeking short-term loans with private lenders seeking secured investments in real estate. As part of the scheme, Giuttari served as the clearing house for funds between the borrowers and the investors. In executing his scheme, Giuttari directed investors and closing attorneys to send all or a portion of the loan proceeds directly to him through his multiple business entities and business bank accounts. Instead of forwarding these funds to borrowers as represented to the investors, Giuttari used the money personally or to repay earlier investors who were seeking a return on their investments.

    Additionally, Giuttari fraudulently acquired $167,800 in COVID-19 pandemic Economic Injury Disaster Loans (EIDL) for Hybrid Capital Group and THE FENS CO that he was not entitled to receive, and he falsely stated on his 2019 U.S. Individual Income Tax Return that his total income was $22,176, when in fact it was at least $541,000, thus failing to pay $140,102 due the IRS.

    The case was prosecuted by Assistant United States Attorney Sandra R. Hebert.

    The matter was investigated by the FBI, Internal Revenue Service Criminal Investigation, and Federal Deposit Insurance Corporation Office of Inspector General.

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    MIL Security OSI –

  • MIL-OSI Security: Former Financial Advisor Sentenced to 12 Years in Federal Prison for Multimillion-Dollar Fraud Scheme

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

    EL PASO, Texas – A former Morgan Stanley financial advisor in El Paso was sentenced in a federal court today to 144 months in prison for committing a multi-million dollar fraud scheme.

    According to court documents, from May 2018 to August 2021, Jesus Rodriguez de la Cruz, 46, defrauded his financial services employer, Morgan Stanley, and clients of money through materially false pretenses, representations and promises. Rodriguez de la Cruz orchestrated fraudulent transfers of funds from the bank accounts of Morgan Stanley and clients to other bank accounts for his own benefit.

    In one instance, Rodriguez de la Cruz created false communications and documents impersonating a client and submitted them to Morgan Stanley personnel to cause fraudulent transfers on the client’s line of credit account for personal profit. One of these included a form that falsely claimed the client had verbally authorized the transfer of $48,575.36 for the purchase of real estate in El Paso. Relying on the documentation, Morgan Stanley initiated the wire transfer from the client’s account to an account at a separate financial institution belonging to one of Rodriguez de la Cruz’s family members.

    One fraudulent transfer of approximately $125,000 from a client’s account to an account at another financial institution facilitated Rodriguez de la Cruz’s purchase of a Lamborghini.

    Rodriguez de la Cruz committed similar acts using other Morgan Stanley client accounts. In all, Morgan Stanley suffered a total loss of $5,554,968.10 due to Rodriguez de la Cruz’s scheme. Additionally, Rodriguez de la Cruz did not report any of the embezzled funds as income on his tax returns from 2017 through 2021, causing a loss of $408,055 for the IRS.

    Rodriguez de la Cruz was indicted by a federal grand jury in December 2023 and arrested Jan. 12, 2024. He pleaded guilty on Nov. 5, 2024, to one count of wire fraud, one count of engaging in a monetary transaction over $10,000 using criminally derived proceeds, one count of aggravated identity theft, and one count of making and subscribing a false income tax return.

    “This defendant abused the trust of his clients and his responsibilities as a financial advisory to steal millions of dollars in customer funds in order to enrich himself,” said Acting U.S. Attorney Margaret Leachman for the Western District of Texas. “Today’s sentence of more than a decade in federal prison demonstrates that perpetrators of fraud in this district will be investigated and brought to justice.”

    “The defendant exploited his position of trust as a financial advisor to deceive both his clients and employer for personal gain. Today’s sentencing demonstrates the FBI’s unwavering commitment to pursuing those who abuse their positions for financial fraud and ensuring they are held accountable,” said John Morales, FBI El Paso Special Agent in Charge. “We are grateful for the invaluable collaboration of our partners at the Internal Revenue Service, whose continued assistance is vital in protecting our communities from greed and financial crimes.”

    “Rodriguez is the epitome of criminals fueled by greed that destroy the trust we place in those who handle our personal finances. He stole from his employer, his clients, and even personally recruited a victim to trust him as her financial advisor so he could hijack her accounts, after stealing her identity,” said acting Special Agent in Charge Lucy Tan, of IRS Criminal Investigation’s Houston Field Office. “These complex financial schemes are why law enforcement agencies, like IRS-CI and the FBI, team up to help bring justice to victims and deter future criminals, like Rodriguez, from violating your trust.”

    The FBI and IRS-CI investigated the case.

    Assistant U.S. Attorneys William Calve and Adrian Gallegos prosecuted the case.

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    MIL Security OSI –