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Tag: DoJ

  • Feds sue L.A. County sheriff for ‘unreasonable’ delays in issuing concealed gun permits

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    The U.S. Department of Justice has filed a lawsuit against the Los Angeles County Sheriff’s Department and Sheriff Robert Luna, claiming the department violated county gunowners’ 2nd Amendment rights by delaying thousands of concealed carry permit application decisions for “unreasonable” periods of time.

    In a statement, the Justice Department claimed that the Sheriff’s Department “systematically denied thousands of law-abiding Californians their fundamental Second Amendment right to bear arms outside the home — not through outright refusal, but through a deliberate pattern of unconscionable delay.”

    The complaint, filed in the Central District of California, the federal court in Los Angeles, cites data provided by the Sheriff’s Department about the more than 8,000 concealed carry permit applications and renewal applications it received between Jan. 2, 2024, and March 31 this year.

    During that period, the Justice Department wrote, it took an average of nearly 300 days for the Sheriff’s Department to schedule interviews to approve the applications or “otherwise” advance them.

    As a result, of the nearly 4,000 applications for new concealed carry licenses it received during those 15 months, “LASD issued only two licenses.” Two others were denied, the Justice Department said, while the rest remained pending or were withdrawn.

    The Sheriff’s Department did not immediately provide comment Monday. In March, when the Trump administration announced its 2nd Amendment investigation, the department said it was “committed to processing all Concealed Carry Weapons [CCW] applications in compliance with state and local laws.”

    The department’s statement said it had approved 15,000 applications for concealed carry licenses but that because of “a significant staffing crisis in our CCW Unit” it was “diligenty working through approximately 4,000 active cases.”

    Atty. Gen. Pam Bondi said Monday that the Justice Department was working to safeguard the 2nd Amendment, which “protects the fundamental constitutional right of law-abiding citizens to bear arms.”

    “Los Angeles County may not like that right, but the Constitution does not allow them to infringe upon it,” Bondi said. “This Department of Justice will continue to fight for the Second Amendment.”

    The federal agency’s complaint alleged that the practice of delaying the applications in effect forced gun permit applicants “to abandon their constitutional rights through administrative exhaustion.”

    In December 2023, the California Rifle and Pistol Assn. sued the Sheriff’s Department over what it alleged were improper delays and rejections of applications for concealed carry licenses. In January, U.S. District Court Judge Sherilyn P. Garnett ordered the department to reduce delays.

    In the new complaint, the Justice Department called on the court to issue a permanent injunction.

    Gun rights groups heralded the move by the Trump administration.

    “This is a landmark lawsuit in that it’s the first time the Department of Justice has ever filed a case in support of gun owners,” Adam Kraut, executive director of the Second Amendment Foundation, said in a statement. “We are thrilled to see the federal government step up and defend the Second Amendment rights of citizens and hope this pattern continues around the country.”

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    Connor Sheets

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  • Newly Released Epstein Files Suggest Elon Musk Was Invited to Notorious Island

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    House Democrats released a small but notable sample of documents obtained from the estate of Jeffrey Epstein on Friday. And one line really sticks out.

    The line appears to be from a 2014 schedule for the late sex trafficker, dated Saturday, Dec. 6, 2014: “Reminder: Elon Musk to island Dec. 6 (is this still happening?)”

    It’s unclear which “island” the line may be referring to, but the obvious suggestion is that it could be a private island in the Caribbean owned by Epstein himself. The island is known as Little Saint James, but most people online just call it Epstein Island.

    The press release from Democrats even refers to it as “evidence of a pending trip by Elon Musk to Epstein’s island.”

    Excerpt from a schedule for Jeffrey Epstein released by House Democrats asking if Elon Musk was still visiting the “island.” Screenshot: Oversight Dems

    The fact that this line appeared in a schedule for 2014 seems notable. Musk has repeatedly denied being involved in Jeffrey Epstein’s crimes. But internet commenters have frequently raised questions about a Vanity Fair Oscars party on March 2, 2014, where Epstein associate Ghislaine Maxwell and Musk were photographed together.

    Back in 2020, Musk addressed the frequent questions about his photo with Maxwell in a tweet, writing, “Don’t know Ghislaine at all. She photobombed me once at a Vanity Fair party several years ago. Real question is why VF invited her in the first place.”

    Maxwell was interviewed by the U.S. Department of Justice in August and told Todd Blanche, President Donald Trump’s former personal attorney and now a top official at the DOJ, that she first met Musk at a birthday party for Sergey Brin in 2010 or 2011.

    “I met him in—I don’t remember the year, but it’s going to be in 2010, ’11, something like that, I think, if my memory serves,” Maxwell said. “And I was at an event for Sergey Brin, the co-founder of Google. And Sergey had arranged for—it was for his birthday.”

    Maxwell said that Epstein was not present for the birthday party, but the New York Times reported in August that Epstein’s Manhattan townhouse included photos of the late sex offender “alongside” famous people like Pope John Paul II, Mick Jagger, Elon Musk, and Fidel Castro.

    Representatives for Musk didn’t respond to an email on Friday, but he’s previously said he had nothing to do with Epstein. However, the billionaire Tesla CEO hasn’t been shy about accusing others of being affiliated with the late pedophile.

    Musk accused President Donald Trump of being “in the Epstein files” in early June, not long after the two men had a very public falling out. Musk later deleted the tweet, and the two men were photographed sitting together at a memorial service for Charlie Kirk last weekend.

    Shortly before the 2024 presidential election, Musk also complained to Tucker Carlson that the Epstein client list hadn’t been released. “You know, I think part of why Kamala’s getting so much support,” Musk said, “if Trump wins, that Epstein client list is going to become public.”

    Musk suggested that Reid Hoffman, the co-founder of LinkedIn, and Bill Gates, the co-founder of Microsoft, were on “the list.” Hoffman reportedly visited Epstein’s island in 2014, according to a 2023 article from the Wall Street Journal.

    Musk isn’t the only name mentioned in the six pages released by House Democrats on Friday. Bill Gates is also on Epstein’s schedule for Dec. 5, 2014, in New York. It’s listed as a “TBD TENTATIVE Breakfast Party” with Bill Gates.

    Excerpt from a 2014 schedule for Jeffrey Epstein that mentions Bill Gates.
    Excerpt from a 2014 schedule for Jeffrey Epstein that mentions Bill Gates. Screenshot: Oversight Dems

    Gates met with Epstein several times, and the Wall Street Journal reported in 2023 that Epstein had blackmailed the Microsoft co-founder over an alleged affair with a Russian bridge player in 2017. Epstein reportedly wanted Gates to donate to a charitable foundation he was trying to set up with JPMorgan Chase, according to the Journal.

    The newly released files also include an email sent to Epstein with his schedule on Nov. 27, 2017, that lists a lunch with Palantir co-founder Peter Thiel in New York.

    Excerpt from a document released by House Democrats showing Peter Thiel on a schedule to meet with Jeffrey Epstein.
    Excerpt from a document released by House Democrats showing Peter Thiel on a schedule to meet with Jeffrey Epstein. Screenshot: Oversight Dems

    Epstein was found dead in his jail cell in 2019, and his death was declared a suicide. But many people don’t think that’s how he died, and roughly 70% of Americans think the federal government is hiding something about Epstein.

    Julie K. Brown, the journalist who’s arguably most responsible for bringing Epstein’s crimes to broader public attention in the late 2010s, tweetedHave these been redacted by @GOPOversight @OverSightDems or by the Estate?”

    We don’t have an answer to that question yet, but the press release from House Democrats notes, “Extensive redactions have been made to protect victims as Committee investigators continue to analyze the new documents.”

    Jeffrey Epstein and Donald Trump pose together at the Mar-a-Lago estate, Palm Beach, Florida, 1997.
    Jeffrey Epstein and Donald Trump pose together at the Mar-a-Lago estate, Palm Beach, Florida, 1997. © Photo by Davidoff Studios/Getty Images

    Democrats clearly aren’t going to stop asking about Epstein, who was friends with President Trump for about 15 years before they had a falling out.

    “It should be clear to every American that Jeffrey Epstein was friends with some of the most powerful and wealthiest men in the world,” Dem Oversight spokesperson Sara Guerrero said in a statement posted online.

    “Every new document produced provides new information as we work to bring justice for the survivors and victims. Oversight Democrats will not stop until we identify everyone complicit in Epstein’s heinous crimes. It’s past time for Attorney General Bondi to release all the files now.”

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    Matt Novak

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  • Comey’s Son-in-Law Quits DOJ After Ex-Director’s Indictment

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    Former FBI Director James Comey’s son-in-law resigned from his position with the Department of Justice (DOJ) just minutes after his father-in-law was indicted on charges of making a false statement to Congress and obstruction.

    Troy Edwards, serving as deputy chief of the DOJ’s National Security Section, submitted a one-sentence resignation letter to Lindsey Halligan, the newly appointed acting U.S. attorney in Virginia’s Eastern District and President Donald Trump’s former personal lawyer.

    Why It Matters

    Comey is the first senior government official to face federal charges connected to the 2016 investigation of alleged Russian interference in the presidential election. Trump has repeatedly denounced the probe as a “hoax” and a “witch hunt.”

    Multiple government reviews found evidence that Moscow sought to help his campaign against former Secretary of State Hillary Clinton.

    The Thursday indictment charges Comey with making a false statement and obstruction, centering on testimony Trump’s former FBI chief gave in September 2020 before the Senate in which he said he had never authorized anyone to act as an anonymous source to reporters during the Russia investigation.

    Prosecutors allege that Comey’s statement was false and obstructed congressional oversight, and they had until Tuesday to file charges or miss the five-year statute of limitations.

    What To Know

    Edwards submitted his resignation letter to Halligan, who replaced Erik Siebert in the Eastern District of Virginia. He simply wrote: “To uphold my oath to the Constitution and country, I hereby resign as an Assistant United States Attorney for the Eastern District of Virginia in the Department of Justice effective immediately.”

    Edwards held a role that covered the Pentagon and CIA headquarters, handling high-profile espionage cases, according to the Associated Press (AP). He was among the prosecutors involved in the conviction of Oath Keepers founder Stewart Rhodes for orchestrating a violent plot to storm the U.S. Capitol on January 6, 2021.

    He was also present during Comey’s indictment, sitting in the front row of the courtroom gallery.

    In a video post to Instagram, Comey denied the charges leveled against him, NBC News reported: “My family and I have known for years that there are costs to standing up to Donald Trump, but we couldn’t imagine ourselves living any other way. We will not live on our knees, and you shouldn’t either. My heart is broken for the Department of Justice, but I have great confidence in the federal judicial system. I’m innocent, so let’s have a trial and keep the faith,” Comey said in the video.

    Trump, meanwhile, celebrated the indictment, which followed his pressure on U.S. Attorney General Pam Bondi to bring charges against a number of his political enemies, including Comey, as named in a Truth Social post.

    The president said there was “JUSTICE IN AMERICA” now that “one of the worst human beings this Country has ever been exposed to” was indicted.

    What People Are Saying

    Bondi, on X: “No one is above the law. Today’s indictment reflects this Department of Justice’s commitment to holding those who abuse positions of power accountable for misleading the American people. We will follow the facts in this case.”

    Roger Stone, former adviser and longtime ally of Trump, on X“I was indicted for lying under oath to Congress despite the fact that no misstatement I made was material nor hid any underlying crime. James Comey lied to cover up the greatest dirty trick in American history — the Russian Collusion Hoax. This is ironic justice.”

    What Happens Next

    Comey is expected to appear in federal court in Alexandria, Virginia, at 10 a.m. October 9, according to CNN.

    This article includes reporting by the AP.

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  • Melville company supervisor pleads guilty to $1.6M fraud | Long Island Business News

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    THE BLUEPRINT:

    • The supervisor embezzled over $1.6M from a healthcare firm, said

    • Funds were used for a wedding, luxury travel and a failed restaurant

    • ran from Oct. 2020 to Nov. 2024 using fake refund transactions

    • After guilty plea, faces up to 20 years in federal prison

    A supervisor at a Melville-headquartered company pleaded guilty Thursday in in in connection to a $1.6 million , officials said.

    Tony Ream, a South Carolina resident and credit supervisor at the company, had allegedly transferred the funds from the firm’s bank account to one he controlled, using the money for a failed restaurant venture, wedding expenses and luxury international travel, according to U.S. Department of Justice.

    “Ream abused his authority and betrayed his employer and its customers to fund his own lavish lifestyle,” Joseph Nocella, Jr., U.S.  Attorney for the Eastern District of New York, said in a news release about the guilty plea.

    “In just a few years, Ream embezzled over $1.6 million and used the stolen money to pay for his wedding, luxury international travel, and for renovations to a restaurant he had opened,” Nocella added. “Ream will now be held accountable for this egregious conduct, thanks to the diligent work of our Office and our partners at the FBI.”

    While the company was not named, officials described it as “ the world’s largest provider of care solutions to office-based dental and medical practitioners worldwide.”

    Ream, who joined the company in 2019, had allegedly embezzled the money from October 2020 to November 2024 by diverting funds from customer refund accounts – some inactive – into his personal accounts, disguising them as legitimate refunds. He also misled subordinates to unknowingly aid the scheme, officials said.

    As part of his plea, Ream agreed to full restitution. When sentenced, he faces up to 20 years in prison.


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    Adina Genn

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  • Trump Pardoned Him. Now He Won’t Have to Pay Back $660 Million

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    The SEC has dropped civil enforcement cases this week against many of the people pardoned by President Donald Trump, according to the New York Times. One of those cases was against Trevor Milton, the founder of the now-defunct electric and hydrogen vehicle company Nikola, who was sentenced to prison for fraud in late 2023.

    Milton was convicted in 2022 of lying to investors about the capabilities of the technology his company was developing and sentenced to four years in prison. Milton infamously produced a video in 2016 showing a Nikola truck prototype that his company said was being driven down a highway. In reality, the truck was shot at a weird angle and was actually towed up a hill before being sent rolling down to make it look like the vehicle was moving under its own power.

    Milton, who was estimated by Forbes to be worth $1.1 billion in 2021, was convicted of defrauding investors, and the U.S. Department of Justice wanted to secure over $660 million in restitution for his victims. But Trump’s pardon wiped out that monumental sum. And this week, the SEC dropped any chance of the government recouping money from civil penalties. It’s unclear how much money the SEC may have been pursuing from Milton.

    Back in May, Gizmodo spoke with Liz Oyer, the DOJ pardon attorney who was fired for refusing to reinstate Mel Gibson’s gun rights under political pressure from Trump appointees. She noted that the DOJ has a whole set of guidelines that lay out the criteria for recommending pardons. The guidelines state that people shouldn’t even be considered for a pardon until they’ve served their sentence and five years have passed. Trump’s pardons haven’t followed that process at all.

    “So historically, pardons are generally viewed as something that go to people who have served their sentence, paid their debt, demonstrated rehabilitation and good conduct in the time that has elapsed. And those criteria are all absent in every one of the pardons that Trump has granted to date,” Oyer said back in May.

    Why aren’t the regular rules being followed? Oyer points out that Milton and his wife donated $1.8 million to a re-election campaign fund for Trump shortly before the 2024 presidential election. And as the New York Times notes, Milton also hired attorney Brad Bondi, the brother of Attorney General Pam Bondi, though he previously said he recused himself from the case.

    Oyer did a TikTok video about Milton’s case explaining what a good investment that $1.8 million turned out to be. According to Oyer, more than $1 billion in total debts have been wiped out by Trump’s many pardons.

    Trump claimed earlier this year that Milton’s only crime was liking Trump too much.

    “They say the thing that he did wrong was he was one of the first people that supported a gentleman named Donald Trump for president. He supported Trump. He liked Trump. I didn’t know him, but he liked him,” Trump said after the pardon. Yes, that’s the quote.

    Needless to say, Milton was not convicted for liking Trump. He was convicted of defrauding hundreds of millions of dollars from his investors. An SEC spokesperson told Gizmodo the agency declines to comment on Milton’s case. Milton did not immediately respond to a request for comment. We’ll update this article when we hear back.

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    Matt Novak

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  • Judge denies Justice Department request to unseal Epstein grand jury transcripts

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    By LARRY NEUMEISTER, Associated Press

    NEW YORK (AP) — A federal judge in New York who presided over the sex trafficking case against the late financier Jeffrey Epstein has rejected the government’s request to unseal grand jury transcripts.

    The ruling Wednesday by federal Judge Richard Berman in Manhattan came after the judge presiding over the case against British socialite Ghislaine Maxwell, Epstein’s former girlfriend, also turned down the government’s request.

    Maxwell is serving a 20-year prison sentence after her conviction on sex trafficking charges for helping Epstein sexually abuse girls and young women.

    Epstein died in jail awaiting trial. A Justice Department spokesperson declined to comment.

    Berman said the information contained in the Epstein grand jury transcripts “pales in comparison to the Epstein investigative information and materials in the hands of the Department of Justice.”

    According to Berman’s ruling, no victims testified before the Epstein grand jury. The only witness, the judge wrote, was an FBI agent “who had no direct knowledge of the facts of the case and whose testimony was mostly hearsay.” The agent testified over two days, on June 18 and July 2, 2019. The rest of the grand jury presentation consisted of a PowerPoint slideshow shown during the June 18 session and a call log shown during the July 2 session, which ended with grand jurors voting to indict Epstein. Both of those will also remain sealed, Berman ruled.

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    The Associated Press

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  • Whistleblower Plaintiff Moves for “Public Interest” Designation in Federal Case Involving DOJ & SEC Misconduct Allegations

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    Federal whistleblower Richard R. Lawless has filed a motion in the United States District Court for the Central District of California seeking to have his civil rights lawsuit against the United States formally designated as a case of public interest.

    The case involves allegations that senior officials at the Department of Justice, the Securities and Exchange Commission, and the Department of the Treasury knowingly concealed evidence of fraudulent Puerto Rico municipal bonds prior to the passage of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). These actions allegedly deprived more than 170,000 creditors of their property rights, undermined federal market regulation, and misled Congress.

    The lawsuit’s importance is heightened by three ongoing Inspector General investigations-two within the Department of Justice and one within the SEC-as well as an active California State Bar Association investigation into the conduct of four Assistant U.S. Attorneys involved in this case. A pending Ninth Circuit Judicial Misconduct proceeding (Case No. 25-90081) against the presiding judge further underscores the case’s public importance.

    “This is not just my case-it’s about government accountability and the right of the public to know how billions in taxpayer and investor funds were handled,” Lawless said.

    If granted, the motion would require the court to ensure public notice of hearings, remote access to proceedings, and prompt publication of all non-sealed filings.

    Case Information:
    Richard R. Lawless v. United States of America
    Case No. 5:25-cv-01599-JWH-SP
    U.S. District Court, Central District of California

    Contact:
    Richard R. Lawless
    30279 Redding Avenue
    Murrieta, CA 92563
    (951) 440-5230
    richardrlawless@gmail.com

    Source: Medlaw Publishing

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  • The Odds of Cannabis Rescheduling

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    The Administration is hinting about being open to rescheduling – the betting markets aren’t

    Despite campaign promises, the current administration has made zero movement on cannabis rescheduling or any relief.  Leaders have even been known to say progress needs to be repealed, so they industry crossed their fingers and are holding their breath. But what are the odds of cannabis rescheduling?

    As Washington plays its long game on cannabis policy, anyone trying to place a bet — literal or figurative — needs to understand the levers which move markets. Rescheduling marijuana from Schedule I to III (or descheduling it altogether) is no single act of presidential will: it’s a legal, scientific and political sieve. Here are the key factors driving the “odds” markets and pundits watch.

    RELATED: GOP Senator Rides To The Rescue Of Hemp

    First, the administrative roadmap matters. The Biden administration asked HHS and the Attorney General to review marijuana’s classification; HHS recommended moving cannabis to Schedule III and the DOJ/DEA issued a formal notice of proposed rulemaking — steps which create a legal timetable and public record investors and bettors can price in.

    Photo by 2H Media via Unsplash

    Second, scientific and regulatory endorsements carry weight. HHS and FDA evaluations find “accepted medical use” or manageable public health risks make it easier legally to reclassify a drug — and they reduce political risk for a President who wants to claim an evidence-based approach. Administrative backing is why many analysts view rescheduling as procedurally plausible even if politically fraught.

    Third, the politics — both partisan and populist — shape the tail risk. Congressional pushback, pro- and anti-legalization lobbying, and changing agency leadership can slow or stall rescheduling even after agencies finish technical work. Recent reporting shows a robust anti-legalization counter-movement and procedural hurdles in agency hearings could delay outcomes. Those dynamics widen the odds range and lengthen timelines.

    Fourth, the legal process itself is a drag on quick outcomes. Rule-making, notice-and-comment periods, administrative hearings and possible judicial review create long windows where new information — court decisions, staffing changes, election results — can swing markets. Prediction markets typically discount long, legally complex outcomes because the information flow is slow and lumpy.

    Polymarket, one of the fastest-growing decentralized prediction markets, thrives on politically charged, binary-outcome questions — from election results to Supreme Court decisions. Cannabis rescheduling fits the bill: a concrete policy decision with a clear yes/no resolution and a definable deadline. Once the DEA sets a final action date, expect a market to open where traders can wager on whether rescheduling happens before the deadline. The volatility of political and legal developments would make it one of the more active contracts, with odds shifting on every new filing, leak, or press statement.

    RELATED: The Science Behind Cannabis And Happiness

    Finally, public opinion and electoral calculation matter. Broad public support for legalization gives political cover, especially when the change can be framed as criminal-justice reform or pro-small-business tax relief. But close or contentious state votes, and targeted anti-reform campaigns, can make lawmakers and presidents more cautious — and that caution is reflected in slimmer betting odds.

    What this means for would-be bettors: look for administrative milestones (HHS/FDA reports, Federal Register notices, DEA hearings) as the most reliable catalysts shifting probabilities. Prediction markets and bookies will move when those documents or hearing outcomes arrive — until then, odds will reflect process risk as much as policy intent.

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    Anthony Washington

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  • Star fund manager takes leave amid accusations of cherry picking

    Star fund manager takes leave amid accusations of cherry picking

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    Ken Leech, the longtime Western Asset Management chief investment officer, left that role amid probes from the Justice Department and Securities and Exchange Commission into whether some clients were favored over others in allocating gains and losses from derivatives trades.

    Leech, who manages some of the largest bond strategies in the US, will take an immediate leave of absence after receiving a Wells notice from the SEC, the company said in a filing Wednesday. Federal prosecutors in New York are conducting a criminal probe into the practice known as “cherry-picking,” where winning trades are credited to favored accounts, according to people familiar with the matter. 

    “The company launched an internal investigation into certain past trade allocations involving treasury derivatives in select Western Asset-managed accounts,” the firm said. “The company is also cooperating with parallel government investigations.”

    Western Asset said Wednesday it’s closing its $2 billion Macro Opportunities strategy and named Michael Buchanan as sole CIO. Shares of parent company Franklin Resources Inc. tumbled 13% to $19.78, the most since October 2020, extending their decline this year to 34%.

    Western Asset, with $381 billion in assets, is one of the original California bond giants and once rivaled Pacific Investment Management Co. and BlackRock Inc. in size. Its key funds have struggled in recent years amid the rise in interest rates, leading to outflows in its flagship strategy, which Leech helped run.

    Franklin, which has about $1.6 trillion in assets overall, acquired Western as part of the 2020 purchase of Legg Mason. Leech has worked at Western Asset for more than 30 years, serving as CIO for the bulk of that time.

    A Wells notice, which isn’t a formal allegation or finding of misconduct, provides a chance to respond to the agency and try to dissuade it from filing a case.

    Leech was a star for years. He co-managed the company’s Core Plus fund as it trounced its peers, though it also stumbled in 2018 when the Fed was raising rates. Since 2021, it has been battered by wagering on a pivot by the central bank.

    The $19 billion mutual fund, which is up 2.4% this year, is trailing more than 90% of rivals over the last three and five year periods, and investors have yanked money.

    That pullback from Western Asset’s fund stands in contrast to rival ones managed by the likes of Pimco, Capital Group Inc. and BlackRock Inc., which have taken in cash this year as the Federal Reserve prepares to cut interest rates.

    “At Franklin, it’s somewhat problematic as the whole reason for buying Legg Mason was to help offset the loss of commission-based sales to drive flows,” Greggory Warren, a strategist at Morningstar, said in a phone interview. “Buying Legg was seen helping provide then with more fixed income and institutional client exposure and being less exposed to fee pressures.”

    Western had quietly named Buchanan co-chief investment officer alongside Leech in August 2023. John Bellows, who co-managed Core Plus since 2018, abruptly left at the start of May. A spokesperson for Western earlier said that the firm thanked Bellows for his contributions. 

    Jim Hirschmann, Western’s president and chief executive officer, said in the statement that Buchanan “has played an integral role in Western Asset’s strategy and growth, and we look forward to having him lead the next chapter of our storied investment team.”

    Recommended Newsletter: High-level insights for high-powered executives. Subscribe to the CEO Daily newsletter for free today. Subscribe now.

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    Silla Brush, Bloomberg

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  • Revir Technologies and Tyler Technologies Partner on Digital Evidence

    Revir Technologies and Tyler Technologies Partner on Digital Evidence

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    Justice Agencies Can Now Combine Best-of-Breed Platforms for Management of Cases and Digital Evidence

    Revir Technologies, Inc. (‘Revir’) announced today that it has reached an agreement with Tyler Technologies to jointly offer its intelligent digital evidence management system (‘iDEMS’) delivering TRUE DATA SOVEREIGNTY. 

    “We know the tsunami of digital evidence is a challenge for our clients and true to our culture, we are focused on solving their pain points. Revir helps Tyler deliver for our clients and their mission,” said AJ Frickman, vice president of Federal Sales at Tyler Technologies. 

    “The two solutions paired together deliver an unparalleled force multiplier for federal, state, and local agencies,” commented Marc Messina, CEO of Revir Technologies. “Revir’s best-of-breed solution provides cloud infrastructure, compliance, and AI which, combined, make it easy to collect, store, secure, search, and share digital evidence with unlimited resources and pay-as-you-go pricing. Tyler’s Application Platform is driven by the customer’s expert knowledge of what information needs to be captured and modeled at every stage of a case or program.”

    The partnership to deliver case-and-evidence management will be highly beneficial for federal and state agencies as it will enable special agents, intelligence analysts, and prosecutors with an alternative to generic shared file server systems and antiquated tools. Revir automates mundane tasks and accelerates workflows by 7x-500x, driving 10x+ ROIs. This will benefit all aspects of justice and homeland security, including the search for missing persons, human trafficking, crimes against children, narcotics task forces, and transnational cartels. Other offices with complex investigations include inspector generals and environmental and regulatory agencies.

    About Revir Technologies, Inc.

    Revir Technologies, based in Austin, Texas, builds next-generation solutions for government that deliver compliance and significant force multiplier effects. The company delivers the leading industry solution for digital evidence management and is engineered for AWS GovCloud (US) and global regions. Revir also delivers intelligence solutions for DoD/IC. More information can be found at revir.ai.

    About Tyler Technologies, Inc.

    Tyler Technologies (NYSE: TYL) is a leading provider of integrated software and technology services for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 44,000 successful installations across 13,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

    Source: Revir Technologies, Inc.

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  • Department of Justice sues TikTok, accusing the company of illegally collecting children’s data

    Department of Justice sues TikTok, accusing the company of illegally collecting children’s data

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    The Justice Department sued TikTok on Friday, accusing the company of violating children’s online privacy law and running afoul of a settlement it had reached with another federal agency. The complaint, filed together with the Federal Trade Commission in a California federal court, comes as the U.S. and the prominent social media company are embroiled in yet another legal battle that will determine if – or how – TikTok will continue to operate in the country. Related video above: About 3 in 5 Americans View TikTok as a Threat to National Security, PEW Research Center study findsThe latest lawsuit focuses on allegations that TikTok, a trend-setting platform popular among young users, and its China-based parent company ByteDance violated a federal law that requires kid-oriented apps and websites to get parental consent before collecting personal information of children under 13.TikTok did not immediately respond to a request for comment. “This action is necessary to prevent the defendants, who are repeat offenders and operate on a massive scale, from collecting and using young children’s private information without any parental consent or control,” Brian M. Boynton, head of the Justice Department’s Civil Division, said in a statement.The U.S. decided to file the lawsuit following an investigation by the FTC that looked into whether the companies were complying with a previous settlement involving TikTok’s predecessor, Musical.ly.In 2019, the federal government sued Musical.ly, alleging it violated the Children’s Online Privacy Protection Act, or COPPA, by failing to notify parents about its collection and use of personal information for kids under 13.That same year, Musical.ly — acquired by ByteDance in 2017 and merged with TikTok — agreed to pay $5.7 million to resolve those allegations. The two companies were also subject to a court order requiring them to comply with COPPA, which the government says hasn’t happened. In the complaint, the Justice Department and the FTC allege TikTok has knowingly allowed children to create accounts and retained their personal information without notifying their parents. This practice extends to accounts created in “Kids Mode,” a version of TikTok for children under 13, Justice said in a press release explaining the lawsuit. The two agencies allege the information collected included activities on the app and other identifiers used to build user profiles. They also accuse TikTok of sharing the data with other companies – such as Meta’s Facebook and an analytics company called AppsFlyer – to persuade “Kids Mode” users to be on the platform more, a practice TikTok called “re-targeting less active users.” The complaint says TikTok also allowed children to create accounts without having to provide their age, or obtain parental approval, by using credentials from third-party services. It classified these as “age unknown” accounts, which the agencies say have grown into millions.After parents discovered some of their children’s accounts and asked for them to be deleted, federal officials said their requests were not honored. In a press release explaining the lawsuit, Justice said the alleged violations have resulted in millions of children under 13 using the regular TikTok app, allowing them to interact with adults and access adult content. In March, a person with the matter had told the AP the FTC’s investigation was also looking into whether TikTok violated a portion of federal law that prohibits “unfair and deceptive” business practices by denying that individuals in China had access to U.S. user data. Those allegations were not included in the complaint, which is seeking civil penalties and injunctive relief.

    The Justice Department sued TikTok on Friday, accusing the company of violating children’s online privacy law and running afoul of a settlement it had reached with another federal agency.

    The complaint, filed together with the Federal Trade Commission in a California federal court, comes as the U.S. and the prominent social media company are embroiled in yet another legal battle that will determine if – or how – TikTok will continue to operate in the country.

    Related video above: About 3 in 5 Americans View TikTok as a Threat to National Security, PEW Research Center study finds

    The latest lawsuit focuses on allegations that TikTok, a trend-setting platform popular among young users, and its China-based parent company ByteDance violated a federal law that requires kid-oriented apps and websites to get parental consent before collecting personal information of children under 13.

    TikTok did not immediately respond to a request for comment.

    “This action is necessary to prevent the defendants, who are repeat offenders and operate on a massive scale, from collecting and using young children’s private information without any parental consent or control,” Brian M. Boynton, head of the Justice Department’s Civil Division, said in a statement.

    The U.S. decided to file the lawsuit following an investigation by the FTC that looked into whether the companies were complying with a previous settlement involving TikTok’s predecessor, Musical.ly.

    In 2019, the federal government sued Musical.ly, alleging it violated the Children’s Online Privacy Protection Act, or COPPA, by failing to notify parents about its collection and use of personal information for kids under 13.

    That same year, Musical.ly — acquired by ByteDance in 2017 and merged with TikTok — agreed to pay $5.7 million to resolve those allegations. The two companies were also subject to a court order requiring them to comply with COPPA, which the government says hasn’t happened.

    In the complaint, the Justice Department and the FTC allege TikTok has knowingly allowed children to create accounts and retained their personal information without notifying their parents. This practice extends to accounts created in “Kids Mode,” a version of TikTok for children under 13, Justice said in a press release explaining the lawsuit.

    The two agencies allege the information collected included activities on the app and other identifiers used to build user profiles. They also accuse TikTok of sharing the data with other companies – such as Meta’s Facebook and an analytics company called AppsFlyer – to persuade “Kids Mode” users to be on the platform more, a practice TikTok called “re-targeting less active users.”

    The complaint says TikTok also allowed children to create accounts without having to provide their age, or obtain parental approval, by using credentials from third-party services. It classified these as “age unknown” accounts, which the agencies say have grown into millions.

    After parents discovered some of their children’s accounts and asked for them to be deleted, federal officials said their requests were not honored. In a press release explaining the lawsuit, Justice said the alleged violations have resulted in millions of children under 13 using the regular TikTok app, allowing them to interact with adults and access adult content.

    In March, a person with the matter had told the AP the FTC’s investigation was also looking into whether TikTok violated a portion of federal law that prohibits “unfair and deceptive” business practices by denying that individuals in China had access to U.S. user data.

    Those allegations were not included in the complaint, which is seeking civil penalties and injunctive relief.

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  • Boeing accepts a plea deal to avoid a criminal trial over 737 Max crashes, Justice Department says

    Boeing accepts a plea deal to avoid a criminal trial over 737 Max crashes, Justice Department says

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    Boeing will plead guilty to a criminal fraud charge stemming from two deadly crashes of 737 Max jetliners after the government determined the company violated an agreement that had protected it from prosecution for more than three years, the Justice Department said Sunday night.Federal prosecutors gave Boeing the choice this week of entering a guilty plea and paying a fine as part of its sentence or facing a trial on the felony criminal charge of conspiracy to defraud the United States.Prosecutors accused the American aerospace giant of deceiving regulators who approved the airplane and pilot-training requirements for it.The plea deal, which still must receive the approval of a federal judge to take effect, calls for Boeing to pay an additional $243.6 million fine. That was the same amount it paid under the 2021 settlement that the Justice Department said the company breached. An independent monitor would be named to oversee Boeing’s safety and quality procedures for three years.The plea deal covers only wrongdoing by Boeing before the crashes, which killed all 346 passengers and crew members aboard two new Max jets. It does not give Boeing immunity for other incidents, including a panel that blew off a Max jetliner during an Alaska Airlines flight in January, a Justice Department official said.The deal also does not cover any current or former Boeing officials, only the corporation.Federal prosecutors alleged Boeing committed conspiracy to defraud the government by misleading regulators about a flight-control system that was implicated in the crashes, which took place in Indonesia in October 2018 and in Ethiopia less five months later.As part of the January 2021 settlement, the Justice Department said it would not prosecute Boeing on the charge if the company complied with certain conditions for three years. Prosecutors last month alleged Boeing had breached the terms of that agreement.The company’s guilty plea will be entered in U.S. District Court in Texas. The judge overseeing the case, who has criticized what he called “Boeing’s egregious criminal conduct,” could accept the plea and the sentence that prosecutors offered with it or he could reject the agreement, likely leading to new negotiations between the Justice Department and Boeing.Relatives of the people who died in the crashes were briefed on the plea offer a week ago and at the time said they would ask the judge to reject it.U.S. agencies can use a criminal conviction as grounds to exclude companies from doing business with the government for a set amount of time. Boeing is an important contractor of the Defense Department and NASA.

    Boeing will plead guilty to a criminal fraud charge stemming from two deadly crashes of 737 Max jetliners after the government determined the company violated an agreement that had protected it from prosecution for more than three years, the Justice Department said Sunday night.

    Federal prosecutors gave Boeing the choice this week of entering a guilty plea and paying a fine as part of its sentence or facing a trial on the felony criminal charge of conspiracy to defraud the United States.

    Prosecutors accused the American aerospace giant of deceiving regulators who approved the airplane and pilot-training requirements for it.

    The plea deal, which still must receive the approval of a federal judge to take effect, calls for Boeing to pay an additional $243.6 million fine. That was the same amount it paid under the 2021 settlement that the Justice Department said the company breached. An independent monitor would be named to oversee Boeing’s safety and quality procedures for three years.

    The plea deal covers only wrongdoing by Boeing before the crashes, which killed all 346 passengers and crew members aboard two new Max jets. It does not give Boeing immunity for other incidents, including a panel that blew off a Max jetliner during an Alaska Airlines flight in January, a Justice Department official said.

    The deal also does not cover any current or former Boeing officials, only the corporation.

    Federal prosecutors alleged Boeing committed conspiracy to defraud the government by misleading regulators about a flight-control system that was implicated in the crashes, which took place in Indonesia in October 2018 and in Ethiopia less five months later.

    As part of the January 2021 settlement, the Justice Department said it would not prosecute Boeing on the charge if the company complied with certain conditions for three years. Prosecutors last month alleged Boeing had breached the terms of that agreement.

    The company’s guilty plea will be entered in U.S. District Court in Texas. The judge overseeing the case, who has criticized what he called “Boeing’s egregious criminal conduct,” could accept the plea and the sentence that prosecutors offered with it or he could reject the agreement, likely leading to new negotiations between the Justice Department and Boeing.

    Relatives of the people who died in the crashes were briefed on the plea offer a week ago and at the time said they would ask the judge to reject it.

    U.S. agencies can use a criminal conviction as grounds to exclude companies from doing business with the government for a set amount of time. Boeing is an important contractor of the Defense Department and NASA.

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  • Former inmate receives $500,000 settlement from Jefferson County

    Former inmate receives $500,000 settlement from Jefferson County

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    JEFFERSON COUNTY, Colo. — Jefferson County settled a lawsuit with a former inmate for $500,000, according to the attorney who filed the suit.

    “Fred [Fisk] was in the county jail [in November of 2022]. He was there for a misdemeanor charge, and he was pending felony sentencing,” David Lane said of his client. “Fred has some mental health issues. Some deputies were walking him down the hallway for an evaluation.”

    Surveillance video from inside the jail shows Fisk then stop walking. Deputies grab him by his legs. Fisk falls forward and slams his face onto the ground. A small pool of blood forms underneath Fisk’s face, which can be seen in the surveillance video when he rolls over.

    “He went face first into the concrete floor and cracked his jaw and suffered a traumatic brain injury,” Lane said.

    Lane said the money more than covers his client’s medical bills.

    “The problem with the so called justice system in America is that it uses the word justice. Justice is never done. It is the great American accountability system where money substitutes for any injury,” Lane said. “When Fred Fisk violates the law and he pleads guilty, he’s held accountable. He goes to prison. He goes to jail. When these deputies violate your Constitution, they need to be held accountable, just like Fred Fisk was, because if they’re not held accountable, then we don’t have justice in America.”

    Denver7 reached out to Jefferson County for a statement. Jeffco leaders said someone would likely respond Monday.

    Our partners at The Denver Post received a statement from Jefferson County, which called the “takedown… unjustified” and said “the use of force appears to have been a result of inexperience and poor judgment, rather than malice.”

    Lane said he called the Jefferson County District Attorney, asking her to prosecute the deputies involved.

    As of Sunday, Lane said he had not heard back from the DA. His next stop is the United States Department of Justice.

    Former inmate receives $500,000 settlement from Jefferson County


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  • Two former Sacramento residents accused of kidnapping grandchild to Peru

    Two former Sacramento residents accused of kidnapping grandchild to Peru

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    (FOX40.COM) — Two former residents of Sacramento have been accused of abducting their 6-year-old grandchild and taking them to Peru, according to the Department of Justice.

    The former residents, aged 54 and 49, were charged on Thursday with interstate and international kidnapping and kidnapping conspiracy, officials said.

    According to the DOJ, in Nov. 2021, the two suspects took their grandchild from Sacramento to Peru despite pleas from the mother to return the child to the United States.

    The suspects were initially charged in Feb. 2022, but the child didn’t return to the United States until December of that year, the DOJ added.

    On April 10, the 54-year-old suspect appeared for the first time in federal court in Sacramento and was detained following his appearance. The 49-year-old suspect has not appeared to answer the charges against her, according to the DOJ.

    If convicted, the DOJ said the maximum penalty facing the suspects is life in prison and a $250,000 fine.

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    Aydian Ahmad

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  • OKX repositions US compliance team as highest priority 

    OKX repositions US compliance team as highest priority 

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    Offshore exchange OKX has moved its U.S. compliance team to top priority within the organization.

    The department now takes precedence in all its operations, a strategic adjustment following increased regulatory scrutiny on cryptocurrency exchanges for anti-money laundering practices. OKX’s restructure aligns with a broader industry trend where regulatory bodies are intensifying their demands for compliance. 

    With growing concerns over the regulatory risks facing offshore exchanges, OKX recently removed USDT from its European offerings and initiated an unprecedented freeze of USDT assets in collaboration with Tether.

    The platform’s global chief compliance officer also vacated his role earlier today, having served just six months in the company. Patrick Donegan spearheaded OKX’s anti-money laundering initiatives, leading a global team of 300 employees. As revealed by his LinkedIn profile, Donegan’s tenure at the exchange lasted from August 2023 to January 2024.

    The U.S. is significantly cracking down on offshore exchanges due to concerns about money laundering. Earlier this week, the U.S. DOJ charged KuCoin and its co-founders with criminal offenses for non-compliance with anti-money laundering regulations. The DOJ also charged Binance last year with one of the largest criminal indictments in industry history, leading to a record $4 billion settlement. 


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    Mohammad Shahidullah

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  • DOJ submits 52 victim statements ahead of Sam Bankman-Fried sentencing

    DOJ submits 52 victim statements ahead of Sam Bankman-Fried sentencing

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    The U.S. DOJ has submitted 52 victims’ statements to the Attorney’s Office, as Sam Bankman-Fried is scheduled for sentencing on Thursday. 

    The statements revealed the emotional and financial distress of numerous victims. A former member of the Unsecured Creditors Committee (UCC) discloses a personal claim of $4 million.

    FTX’s collapse took all of the victim’s life savings and forced his resignation due to his inability to sustain a no-income period. The former UCC member expresses a loss beyond finances, describing that the incident had forced him into critical depression.

    The victim details how FTX’s collapse disrupted his home life, negatively impacting his marital bond and lifestyle. He argues for valuing assets based on their worth today, not just their value at the time of FTX’s bankruptcy filing.

    A Spanish investor describes the betrayal felt after investing savings with dreams of entrepreneurship. FTX’s high-profile advertising drew in this victim, but ultimately, the collapse shattered his plans for a future business. 

    An Italian victim went through her ‘worst nightmare,’ as she previously held funds in Celsius. She moved her funds to FTX, considering the exchange a safer choice. Following the collapse, she went into severe mental trauma, which ultimately impacted her marriage life. She calls for compensation based on current market values and criticizes the legal proceedings for insufficiently addressing victims’ needs.

    The victim statements reveal the depth of emotional and mental impact caused by Sam Bankman-Fried, with each statement reflecting on how the incident drove them into depression and affected their family lives. 

    However, there might be some relief for the victims, as the exchange recently sold its shares in AI firm Anthropic for $884 million. For now, the victims expect Judge Lewis Kaplan to consider their stories when sentencing Sam Bankman-Fried and the Federal Court to reconsider their approach to reimbursement. 


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  • US DOJ Indicts Two Men for Perpetrating $25M Crypto Ponzi Scheme

    US DOJ Indicts Two Men for Perpetrating $25M Crypto Ponzi Scheme

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    The United States Department of Justice (DOJ) has indicted two men for perpetrating a crypto Ponzi scheme that defrauded investors of approximately $25 million.

    According to a press release from the Justice Department, 51-year-old David Gilbert Saffron of Australia and 52-year-old Vincent Anthony Mazzotta Jr. of California operated a fraudulent crypto investment scheme that lured victims with false promises of high returns.

    DOJ Charges Two Men for Operating Crypto Scheme

    Per court documents, Saffron and Mazzotta allegedly presented their scheme to investors as programs that used artificial intelligence automated trading bots to trade assets in the crypto market.

    The duo promoted the programs under several names, including Bitcoin Wealth Management, Cloud9Capital, Omicron Trust, Circle Society, and Mind Capital. Saffron and Mazzotta created a false entity called the Federal Crypto Reserve, which purported to recover lost digital assets to make the scheme seem legitimate.

    The alleged fraudsters created a pattern of inducing the victims to put their money in one of the crypto investment programs and turning around to ask the investors to pay the Federal Crypto Reserve to investigate and recover their losses. Saffron masterminded this strategy by approaching victims under multiple aliases, including David Gilbert and Dave Gabe, under online personas like the Blue Wizard and Bitcoin Yoda.

    Destroying and Concealing Evidence

    While Saffron and Mazzotta continued the scheme, they used $25 million worth of investors’ crypto assets to fund their luxurious lifestyles. They paid for a personal chef, luxury hotel accommodations, private mansion rentals, security guards, and chartered jet flights.

    In addition, the duo conspired to destroy evidence by falsifying records and obstructing official proceedings. They also conspired to conceal the sources and location of victims’ investments by using crypto tumblers and mixers and implementing methods like blockchain hopping.

    The Justice Department has charged Saffron and Mazzotta with conspiracy to commit wire fraud, conspiracy to obstruct justice, conspiracy to commit money laundering, and money laundering.

    While they each face maximum penalties of 20, 10, and five years in prison for several counts, Saffron faces an additional 10-year jail term for allegedly committing felonies while on pretrial release. He was previously charged in September 2019 by the Commodity Futures Trading Commission with engaging in a fraudulent scheme.

    Meanwhile, the DOJ has asked victims of the scheme to reach out via a designated contact line and email.

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    Mandy Williams

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  • A Plan to Outlaw Abortion Everywhere

    A Plan to Outlaw Abortion Everywhere

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    The year 2022 was a triumphant one for the anti-abortion movement. After half a century, the Supreme Court did what had once seemed impossible when it overturned Roe v. Wade, stripping Americans of the constitutional right to terminate a pregnancy. Now movement activists are feeling bolder than ever: Their next goal will be ending legal abortion in America once and for all. A federal ban, which would require 60 votes in the Senate, is unlikely. But some activists believe there’s a simpler way: the enforcement by a Trump Justice Department of a 150-year-old obscenity law.

    Explore the January/February 2024 Issue

    Check out more from this issue and find your next story to read.

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    The Comstock Act, originally passed in 1873 to combat vice and debauchery, prohibits the mailing of any “article or thing” that is “designed, adapted, or intended for producing abortion, or for any indecent or immoral use.” In the law’s first 100 years, a series of court cases narrowed its scope, and in 1971, Congress removed most of its restrictions on contraception. But the rest of the Comstock Act has remained on the books. The law has sat dormant, considered virtually unenforceable, since the Roe v. Wade ruling in 1973.

    Following the Supreme Court’s Dobbs v. Jackson Women’s Health Organization decision in 2022, the United States Postal Service asked the Justice Department for clarification: Could its workers legally transport abortion-inducing medications to states with bans? The DOJ replied by issuing a memo stipulating that abortion pills can be legally mailed as long as the sender does not intend for the drugs to be used unlawfully. And whether or not the drugs will be used within the bounds of state law, the memo notes, would be difficult for a sender to know (the pills have medical uses unrelated to abortion).

    If Donald Trump is reelected president, many prominent opponents of abortion rights will demand that his DOJ issue its own memo, reinterpreting the law to mean the exact opposite: that Comstock is a de facto ban on shipping medication that could end a pregnancy, regardless of its intended use (this would apply to the USPS and to private carriers like UPS and FedEx). “The language is black-and-white. It should be enforced,” Steven H. Aden, the general counsel at Americans United for Life, told me. A broader interpretation of the Comstock Act might also mean that a person receiving abortion pills would be committing a federal crime and, if prosecuted, could face prison time. Federal prosecutors could bring charges against abortion-pill manufacturers, providers receiving pills in the mail, or even individuals.

    The hopes of some activists go further. Their ultimate aim in reviving the Comstock Act is to use it to shut down every abortion facility “in all 50 states,” Mark Lee Dickson, a Texas pastor and anti-abortion advocate, told me. Taken literally, Comstock could be applied to prevent the transport of all supplies related to medical and surgical abortions, making it illegal to ship necessary tools and medications to hospitals and clinics, with no exceptions for other medical uses, such as miscarriage care. Conditions that are easily treatable with modern medicine could, without access to these supplies, become life-threatening.

    Legal experts say that the activists’ strategy could, in theory, succeed—at least in bringing the issue to court. “It’s not hypothetical anymore,” Mary Ziegler, a law professor at the UC Davis School of Law, told me. “Because it’s already on the books, and it’s not ridiculous to interpret it this way, [the possibility] is not far-fetched at all.”

    Eventually, the Supreme Court would likely face pressure to weigh in. Even though a majority of the Court’s justices have supported abortion restrictions and ruled to overturn Roe, it’s unclear how they’d rule on this particular case. If they were to uphold the broadest interpretation of the Comstock Act, doctors even in states without bans could struggle to legally obtain the supplies they need to provide abortions and perform other procedures.

    This is what activists want. The question is whether Trump would accede to their demands. After years of championing the anti-abortion cause, the former president seemed to pivot when he blamed anti-abortion Republicans’ extremism for the party’s poor performance in the 2022 midterm elections (only a small fraction of Americans favors a complete abortion ban). Recently, he’s come across as more moderate on the issue than his primary opponents by condemning Florida’s six-week abortion ban and endorsing compromise with Democrats.

    As president, Trump might choose not to enforce Comstock at all. Or he could order his DOJ to enforce it with discretion, promising to go after drug manufacturers and Planned Parenthood instead of individuals. It’s hard to be certain of any outcome: Trump has always been more interested in appeasing his base than reaching Americans in the ideological middle. He might well be in favor of aggressively enforcing the Comstock Act, in order to continue bragging, as he has in the past, that he is “the most pro-life president in American history.”


    This article appears in the January/February 2024 print edition with the headline “A Plan to Outlaw Abortion Everywhere.”

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    Elaine Godfrey

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  • K33 Research: Crypto markets remain steady despite Binance-DOJ settlement

    K33 Research: Crypto markets remain steady despite Binance-DOJ settlement

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    The crypto market, led by Bitcoin and Ether, has shown resilience following the U.S. Department of Justice’s $4.3 billion settlement with Binance, amidst varied reactions across different crypto assets and exchanges.

    In a Nov. 27 development, the cryptocurrency market has shown resilience despite the U.S. Department of Justice’s (DOJ) settlement with Binance, one of the world’s leading crypto exchanges. The settlement, addressing allegations of money laundering, fraud, and sanctions violations, concluded with Binance agreeing to a $4.3 billion fine – a record in corporate settlements in the U.S.

    K33 Research analysts Vetle Lunde and Anders Helseth point out that this settlement differs significantly from the FTX collapse, emphasizing that Binance’s issues were primarily regulatory and did not involve customer fund mismanagement. This distinction, they argue, minimizes the risk of contagious effects within the crypto industry.

    Market reactions have been varied. Bitcoin (BTC) and Ether (ETH) have remained relatively stable, with modest increases of around 6% and 5%, respectively, since Nov. 21. However, Binance’s own token, BNB, experienced a notable decline of nearly 14% in the same period. This could reflect investor concerns about Binance’s future operations and market position.

    Decentralized exchanges like Uniswap have benefited, as indicated by a 20% rise in its UNI token. This trend suggests a growing investor interest in alternatives to centralized exchanges like Binance.

    Despite legal challenges and a declining market share, Lunde and Helseth argue that Binance is not likely to disappear from the crypto scene. The exchange still maintains a significant user base and remains the largest by trading volume, indicating its continued relevance in the crypto market.

    On the institutional side, the Chicago Mercantile Exchange (CME) has seen signs of profit-taking in Bitcoin futures. Substantial long exposure and high premiums were observed initially, but a recent reduction in open interest suggests that some large traders are cashing out.


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  • What Kraken Co-Founder Had to Say About Binance’s Settlement

    What Kraken Co-Founder Had to Say About Binance’s Settlement

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    In his latest remarks, Kraken co-founder Jesse Powell spoke about the current state of the cryptocurrency industry amidst a backdrop of significant regulatory actions.

    Powell’s comments came shortly after a settlement between Binance and the U.S. Department of Justice, resulting in a $4.3 billion fine for Binance.

    Jesse Powell Critiques Regulatory Landscape

    In a recent post on X, Powell expressed his thoughts on the $4.3 billion fine settlement between Binance and the U.S. Department of Justice. Powell noted that this development makes the competitive landscape “feel a bit more fair today.”

    “The last 12 months have answered 2 nagging questions from shareholders: 1. How are they going so fast? 2. How are they getting away with it?” Powell wrote. “It’s hard to keep faith while your market share dwindles and the only enforcement that’s happening is against the good guys.”

    Powell also expressed concern about the ongoing threats to the crypto industry’s reputation, highlighting the need to  “self-police” amidst what he perceives as inconsistent enforcement actions by regulatory bodies.

    His comments included references to other major players in the crypto industry, like Coinbase and Ripple, which he described as “easy targets” for the SEC, while more significant offenders, particularly those operating offshore, seem to avoid similar levels of attention.

    Kraken Faces New SEC Allegations Amidst Ongoing Regulatory Scrutiny

    In February, Kraken’s parent companies were charged with failing to register their crypto asset staking-as-a-service program, leading to a $30 million settlement.

    On November 21, the SEC filed a new complaint alleging that Kraken operates as an unregistered national securities exchange, broker, and clearing house.

    In a separate post, Powell responded to this development, stating, “USA’s top decel is back with another assault on America.” He said, “Message is clear: $30m buys you about 10 months before the SEC comes around to extort you again.”

    In a recent blog post, Kraken also contested the SEC’s allegation that its products were investment contracts, calling the claim legally incorrect and factually false. The company argued that the regulatory framework being applied by the SEC is non-existent, thereby creating an unfair and challenging environment for crypto firms operating in the United States.

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    Wayne Jones

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