By Max Hunder and Tom Balmforth

KYIV -Ukraine was set to pull its troops from the ruined city of Sievierodonetsk after weeks of street fighting and bombardment, the regional governor said, in what would be a significant gain for Russia as it grinds out its offensive in the east.

Russian troops also occupied a town about 10 km (6 miles) further south, both sides said on Friday, as Moscow closed in on the last slivers of Ukrainian-held territory in the industrial region of Luhansk.

Moscow said it had encircled about 2,000 Ukrainian and what it called foreign troops in the area. Reuters could not independently verify any of the battlefield accounts.

The reports came four months to the day since Russian President Vladimir Putin sent tens of thousands of troops over the border, unleashing a conflict that has killed thousands, uprooted millions and reduced whole cities to rubble.

If it goes ahead, the withdrawal from Sievierodonetsk would mark the biggest reversal for Ukraine since the loss of the southern port of Mariupol in May.

The latest Russian advances appeared to bring the Kremlin closer to taking full control of Luhansk, one of Moscow’s stated war objectives, and set the stage for Sievierodonetsk’s twin city of Lysychansk to become the next main focus of fighting.

Luhansk regional governor Serhiy Gaidai said troops in Sievierodonetsk had already received the order to move to new positions.

“Remaining in positions smashed to pieces over many months just for the sake of staying there does not make sense,” Gaidai said on Ukrainian television.

‘RED FLAG FLYING’

Russia invaded Ukraine on Feb. 24, but abandoned an early advance on the capital Kyiv in the face of fierce resistance bolstered by Western arms.

Since then Moscow and its proxies have focused on the south and Donbas, an eastern territory made up of Luhansk and its neighbour Donetsk, deploying overwhelming artillery in some of the heaviest ground fighting in Europe since World War Two.

Ukrainian forces had held out for weeks in Sievierodonetsk, trying to wear down Russian troops through attrition and buy time for the arrival of heavy weapons supplies.

“Our forces had to withdraw and conduct a tactical retreat because there was essentially nothing left there to defend. There was no city left there and, secondly, we could not allow them to be encircled,” Oleksander Musiyenko, a Kyiv-based military analyst, said.

Ukraine on Friday again pressed for more arms, with its top general, Valeriy Zaluzhniy, telling his U.S. counterpart in a phone call that Kyiv needed “fire parity” with Moscow to stabilise the situation in Luhansk.

Ukraine’s Defence Ministry said the Russians were trying to surround Lysychansk and mounting assaults on Sievierodonetsk to win full control. But spokesperson Oleksandr Motuzyanyk declined to comment on Gaidai’s remarks about a withdrawal.

Further south, Russian troops had entered the town of Hirske and fully occupied the surrounding district on Friday, municipal head Oleksiy Babchenko said.

“There is a red flag flying over the municipal administration (in Hirske),” a spokesperson for the regional administration told Reuters by telephone.

Russia’s defence ministry said it had taken Hirske and the nearby town of Zolote after what it described as a “rout” of Ukrainian soldiers. It earlier said it had encircled up to 2,000 Ukrainian troops, including 80 foreign fighters, at Hirske.

Vitaly Kiselev, an official in the Interior Ministry of the separatist Luhansk People’s Republic – recognised only by Russia – told Russia’s TASS news agency that there were about 4,500 Ukrainian servicemen in the area taken over by Russian and separatist forces in Hirske, but did not say what had happened to them.

Kiselev said it would take another week and a half to secure full control of Lysychansk and that an unknown number of people remained holed up and did not want to leave the Azot chemical plant in Sievierodonetsk.

The general staff of Ukraine’s armed forces said its troops had some success in the southern Kherson region, forcing the Russians back from defensive positions near the village of Olhine, the latest of several Ukrainian counter-assaults.

Ukrainian media showed footage of a school smouldering and gutted by Russian shelling in Avdiivka — a town in Donetsk region just inside Ukrainian-held territory. Reports said the school had been used as a first aid centre and the attack destroyed medicine and other supplies.

Reuters could not confirm the details of the fighting.

ARMS AND DEFENCE

Ukraine’s foreign minister played down the significance of the possible loss of more territory in the Donbas.

“Putin wanted to occupy the Donbas by May 9. We are (there) on June 24 and still fighting. Retreating from a few battles does not mean losing the war at all,” Dmytro Kuleba said in an interview with the Italian newspaper Corriere della Sera.

Russia says it sent troops into Ukraine to degrade its southern neighbour’s military capabilities and root out people it called dangerous nationalists.

Ukraine, which says Russia has launched an imperial-style land grab, this week won new support from the West.

European leaders approved Ukraine’s formal candidature to join the European Union – a decision that Russia said on Friday would have negative consequences and amounted to the EU’s “enslaving” neighbouring countries.

Ukrainian President Volodymyr Zelenskiy vowed in an interview with NBC News that he would fight for the release of two American veterans captured – according to Russian state media – by Russian-backed forces, saying he was honoured that the men had come to fight for Ukraine.

The war has had a massive impact on the global economy and European security arrangements, driving up gas, oil and food prices, pushing the EU to reduce its heavy reliance on Russian energy and prompting Finland and Sweden to seek NATO membership.

The U.N. nuclear watchdog said it was is increasingly concerned about the welfare of Ukrainian staff at the Russian-held Zaporizhzhia nuclear power plant in southeastern Ukraine, Europe’s largest.

The International Atomic Energy Agency has for months said that Zaporizhzhia, where Ukrainian staff are operating the plant under the order of Russian troops, poses a safety risk and that it wants to send a mission there.

(Reporting by Reuters bureaux; Writing by Michael Perry, Angus MacSwan, Andrew Heavens and Michael Martina; Editing by Himani Sarkar, William Maclean, Nick Macfie and Daniel Wallis)

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By Brendan Pierson and Nate Raymond

(Reuters) – Following the U.S. Supreme Court’s June 24 ruling eliminating the nationwide right to abortion that it had recognized nearly 50 years ago in its landmark Roe v. Wade decision, demand for abortion pills, which can be prescribed through online telemedicine visits, will likely rise. However, medication abortion will not necessarily offer a way for most women to avoid the stringent new abortion bans now expected to pass in conservative states, experts say.

WHAT IS A MEDICATION ABORTION?

In a medication abortion, a patient takes a drug called mifepristone, also known as RU-486, followed by a second drug called misoprostol, to end a pregnancy rather than having a surgical procedure. Over half of abortions in the United States are medication abortions, according to the Guttmacher Institute https://www.guttmacher.org/state-policy/explore/medication-abortion, an abortion rights advocacy research group.

HOW DOES THE FEDERAL GOVERNMENT REGULATE MEDICATION ABORTIONS?

The U.S. Food and Drug Administration approved mifepristone in 2000, but until very recently, the FDA mandated that patients get it at a doctor’s office, clinic or hospital. After easing those restrictions during the COVID-19 pandemic, the agency in December permanently did away with the requirement that it had to be dispensed in person, allowing patients to consult with healthcare providers via telemedicine appointments and receive the pills by mail. That increased access to abortion for patients living in remote areas without providers nearby and women unable to take time off from work or not able to get to clinics for other reasons. The drugs are approved for use through the 10th week of pregnancy https://tmsnrt.rs/3yfKSqc.

DO STATES RESTRICT MEDICATION ABORTION?

Yes. Medication abortions have become a target of anti-abortion politicians and activists. Indiana bans medication abortion at 10 weeks, and Texas after seven weeks; other state medication abortion bans have been blocked by courts.

Thirty-two states allow only physicians, and not other clinicians such as nurse practitioners, to dispense abortion pills, according to the Guttmacher Institute. Nineteen states require that the dispensing clinician be in the patient’s physical presence, effectively banning telemedicine.

WHAT IS THE IMPACT OF THE SUPREME COURT’S RULING ON TELEMEDICINE ABORTION?

Before the Supreme Court’s ruling, 13 states had so-called “trigger laws” written to impose new abortion bans immediately or soon after Roe v. Wade was overturned, and other states are expected to follow after Friday’s ruling in Dobbs v. Jackson Women’s Health.

The Guttmacher Institute predicts at least 26 states, including those with trigger laws, will pass new abortion laws. Such state laws have so far not distinguished between surgical and medication abortion, so they are expected to ban medication abortion entirely. Some will ban abortions almost completely, while others outlaw abortion at six weeks or 15 weeks https://tmsnrt.rs/3sbQQEp.

U.S. Senator Tina Smith of Minnesota, a Democrat, on Thursday introduced a bill that would ensure that telemedicine abortion is available in states where abortion remains legal in anticipation of the Supreme Court’s ruling.

CAN A PATIENT IN A STATE WHERE MEDICATION ABORTION IS ILLEGAL GET THE PILLS FROM AN OUT-OF-STATE PROVIDER WHERE IT IS LEGAL?

That depends. It is illegal for a medical professional to prescribe the pills via a telemedicine appointment to a woman in a state where they are illegal, legal experts say.

    “The laws around telemedicine generally say that the location of the patient controls,” said Amanda Allen, senior counsel at the Lawyering Project, an organization that represents abortion providers. Doctors who prescribed abortion pills to a patient in a state where they are illegal could lose their licenses in that state, or even face criminal charges, she said.   

A woman who lives in a state where abortion is illegal could travel to a state where it is legal, have a telemedicine visit, and have the medication mailed to an address there.

    “In some cases, that’s somewhat less burdensome and costly than to travel all the way to a brick-and-mortar clinic in a neighboring state,” she said, noting that patients who travel to clinics in other states have sometimes faced weeks-long waits for appointments.

ARE THERE CURRENTLY LAWSUITS CHALLENGING STATE RESTRICTIONS ON MEDICATION ABORTION?

Yes. GenBioPro Inc, a company that sells mifepristone, has already challenged Mississippi’s restrictions on prescribing abortion pills via telemedicine by arguing that they are “preempted” by the FDA, meaning that the federal approval of the drug overrides any state law. There has not been a ruling in that case, which is pending in Mississippi federal court.

    Similar challenges have succeeded before. In 2014, a Massachusetts federal judge struck down a state law seeking to regulate opioid drugs more stringently than federal law on the grounds that it was preempted.

U.S. Attorney General Merrick Garland appeared to express support for that position in a statement on the Supreme Court’s June 24 ruling, saying that states “may not ban mifepristone based on disagreement with the FDA’s expert judgment about its safety and efficacy.”

Mississippi has argued that FDA approval cannot overcome the Supreme Court’s rulings granting states authority to regulate abortions.

CAN PATIENTS GET ABORTION PILLS FROM OTHER COUNTRIES?

Yes. Women in states cracking down on telemedicine abortion have increasingly turned to ordering pills online from overseas.

While the practice is not legal, state authorities have said they have no effective way of policing orders from foreign doctors and pharmacies.

(This story refiles to change reference from “medical abortion” to “medication abortion”)

(Reporting by Brendan Pierson in New York and Nate Raymond in Boston; Editing by Alexia Garamfalvi and Aurora Ellis)

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TEGUCIGALPA – The Honduran government passed a month-long freeze on increases in gasoline and diesel prices on Friday, the country’s energy minister announced, making the Central American nation the latest to intervene as inflation causes gas prices to skyrocket worldwide.

Inflation in the 12 months through May reached 9.09% and accumulated inflation for the first five months of the year hit 5.18%, central bank data showed, driven primarily by surging fuel prices following Russia’s invasion of Ukraine.

The Honduran central bank has a 4.0% inflation target, plus or minus one percentage point.

“The government is going to freeze the prices of regular gasoline and diesel for four weeks starting on Monday to alleviate the impact of international fuel prices on the national economy,” Energy Minister Erick Tejada said at a press conference.

Latin America’s leaders have pulled no punches in the battle against inflation. The region has some of the highest interest rates in the world, with Mexico’s central bank making a record rate hike this week. But so far they are losing that fight.

Fuel prices have skyrocketed in Honduras, which is expected to see inflation above double digits this year for the first time since 2000, according to central bank estimates.

Diesel in Honduras, the second-poorest country in Latin America, is used mainly in industry, transportation and electricity generation, while regular gasoline is used by lower-middle class consumers.

(Reporting by Gustavo Palencia in Tegucigalpa; Writing by Kylie Madry in Mexico City; Editing by Sandra Maler)

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WASHINGTON – U.S. President Joe Biden on Friday criticized the U.S. Supreme Court ruling overturning the landmark Roe v. Wade decision on abortion, saying the health and life of American women are now at risk.

“It’s a sad day for the court and for the country,” Biden said in a White House address after the ruling, which he said was taking the country back 150 years.

Biden promised to go on fighting for reproductive rights but said no executive order can guarantee a woman’s right to choose.

He urged voters to send lawmakers to Congress who will work to codify abortion rights as the law of the land.

“This fall, Roe is on the ballot. Personal freedoms are on the ballot,” Biden said, referring to the landmark 1973 Roe v. Wade decision making abortion legal nationally.

Biden made a point of calling for any protests to remain peaceful. “No intimidation. Violence is never acceptable,” he said.

(Reporting by Trevor Hunnicutt, Writing by Doina Chiacu; editing by Jonathan Oatis)

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WASHINGTON – If the United States does fall into a recession, it would likely be “relatively short,” with only modest increases in unemployment, and may look like U.S. downturns in the early 2000s, an International Monetary Fund official said on Friday.

Nigel Chalk, deputy director of the IMF’s Western Hemisphere Department, said the depth of any recession would depend on the size of the shock that would push the U.S. economy off its IMF-predicted path of narrowly avoiding recession, and strong household balance sheets would provide a cushion.

“There’s a lot of savings sitting in the system that would help support demand, and the labor market is historically tight,” Chalk said at a news conference on the IMF’s review of U.S. economic policies. “And since all of those things would help support the economy, so if it was hit by negative shock, it should pass relatively quickly and have a relatively quick recovery afterwards.”

(Reporting by David Lawder; editing by Jonathan Oatis)

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(Reuters) – Celsius Network LLC has hired restructuring consultants from advisory firm Alvarez & Marsal to advise on a possible bankruptcy filing, the Wall Street Journal reported https://www.wsj.com/amp/articles/celsius-network-taps-more-advisers-to-prepare-for-potential-bankruptcy-11656088078?mod=Searchresults_pos1&page=1 on Friday, citing people familiar with the matter.

The New Jersey-based cryptocurrency lending company froze withdrawals and transfers earlier this month due to “extreme” market conditions, in the latest sign of the financial market downturn hitting the cryptosphere.

A separate report from CoinDesk said https://www.coindesk.com/business/2022/06/24/goldman-sachs-raising-funds-to-buy-celsius-assets-sources on Friday that Wall Street bank Goldman Sachs was looking to raise $2 billion from investors to buy distressed assets from Celsius.

The proposed deal would allow investors to buy the assets at potentially big discounts if the cryptocurrency lender files for bankruptcy, according to the report, which cited two people familiar with the matter.

Celsius had $11.8 billion in assets as of last month. The company and Alvarez & Marsal did not immediately respond to Reuters requests for comment.

The market for digital assets has in recent months been roiled by extreme volatility as investors dump risky assets on fears that aggressive interest rate hikes to tame stubborn inflation could plunge the economy into recession.

(Reporting by Manya Saini in Bengaluru; Editing by Aditya Soni)

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By David Shepardson

WASHINGTON – A group of six Republican senators https://www.cotton.senate.gov/news/press-releases/cotton-colleagues-demand-action-from-biden-administration-against-tiktok on Friday asked U.S. Treasury Secretary Janet Yellen about an ongoing Biden administration national security review of social media platform TikTok.

The U.S. government’s Committee on Foreign Investment in the United States (CFIUS), which reviews deals by foreign acquirers for potential national security risks, in 2020 ordered Chinese parent company ByteDance to divest TikTok because of fears that U.S. user data could be passed on to China’s communist government.

Last week, TikTok said it has completed migrating information on its U.S. users to servers at Oracle Corp, as it seeks to address U.S. concerns over data integrity.

Senators Tom Cotton, Ben Sasse, Mike Braun, Marco Rubio, Todd Young and Roger Wicker asked Yellen numerous questions saying the administration “has seemingly done nothing to enforce” the August 2020 divestiture order.” They noted “the results of the security reviews, likewise, have not been publicly released after one year.”

The senators want to know “will TikTok be locally managed in the United States?” and “Will the U.S. government have the ability to routinely access and inspect the algorithm’s source code?” It also asks “what assurances does the U.S. government have that TikTok will store U.S. data and adopt privacy policies with adequate protections?”

TikTok did not immediately respond to a request for comment.

Former President Donald Trump attempted to block new users from downloading WeChat and TikTok and ban other transactions that would have effectively blocked the apps’ use in the United States but lost a series of court battles.

President Joe Biden in June 2021 withdrew a series of Trump executive orders that sought to ban new downloads of the apps and ordered the Commerce Department to conduct a review of security concerns posed by the apps.

The senators said the proposal for TikTok to store its U.S. users’ information without ByteDance access “would do little to address the core security concerns.”

CFIUS has been in extensive discussions with TikTok on security issues, sources have said. A spokesman for Yellen declined to comment Friday.

TikTok is one of the world’s most popular social media apps, with more than 1 billion active users globally, and counts the U.S. as its largest market.

(Reporting by David Shepardson; Editing by David Gregorio)

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By Ann Saphir

(Reuters) -Two Federal Reserve presidents sold or plan to sell securities in light of strict new limits on policymakers’ investment portfolios, put in place after an ethics scandal last year involving trading activities of two fellow central bankers, financial disclosures published on Friday show.

Richmond Fed’s Thomas Barkin will divest Georgia state bonds and allow his individual corporate bond holdings to mature without reinvesting them, his 2021 disclosure shows. The moves are designed to ensure his holdings remain in compliance with Fed rules as the new limits come into effect, the disclosure indicates.

San Francisco Fed’s Mary Daly last year sold dozens of securities from an account held jointly with her spouse, her disclosure shows. The transactions were completed at the end of the year, as the Fed was writing the new rules but before they were finalized in February.

The new Fed rules prohibit policymakers from holding individual bonds or purchasing equity securities, and impose strict disclosure requirements for planned trades.

Fed Chair Jerome Powell ordered an overhaul of the rules after revelations last fall that Dallas Fed President Robert Kaplan and Boston Fed President Eric Rosengren had actively traded securities in 2020, as the central bank was buying trillions of dollars of Treasuries and mortgage-backed securities to stabilize financial markets.

Within weeks, both had stepped down, though they said their activities were in line with then-current Fed guidelines.

But their transactions raised questions over the propriety of policymakers buying and selling securities even while taking part in interest-rate and other decisions that ripple through financial markets and directly affect the value of the stocks and bonds they hold.

Barkin’s disclosure showed that at the end of last year he held more than $1 million in state bonds and at least $500,000 of corporate bonds, though the precise value of his divestments was unclear.

Daly’s forms show she sold 70 different securities at the end of 2021, nearly all of which were valued in the range of $1,001-$50,000. Her holdings in one corporate bond fund was given as between $50,001 and $250,000.

(Reporting by Ann Saphir; Editing by Richard Chang and Bill Berkrot)

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WASHINGTON – The head of the International Monetary Fund on Friday underscored the importance of fighting inflation now to shore up the prospects for economic growth in the future, warning that doing so could cause “some pain” to consumers in the short run.

“Success over time (in lowering prices) will be beneficial for global growth, but some pain to get to that success can be a necessary price to pay,” Kristalina Georgieva said, as the IMF cut its U.S. growth forecast for 2022 by 0.8 percentage point to 2.9%.

Georgieva said the IMF believed the United States could escape a recession, but warned that the outlook had “significant” downside risks.

(Reporting by Andrea Shalal and David Lawder; editing by Jonathan Oatis)

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(Reuters) – Ratings agency Moody’s on Friday affirmed United States’ rating at “Aaa”, citing the country’s emergence from the pandemic shock with “exceptional” economic strength.

“Moody’s expects the US economy and the sovereign’s credit profile to remain resilient to shocks, including the current challenges to the global economy from high and persistent inflation, tightening financial conditions, and the Russian invasion of Ukraine,” the ratings agency said in a statement https://www.moodys.com/viewresearchdoc.aspx?docid=PR_465545&WT.mc_id=AM~UmV1dGVyc05ld3NfQU1QU19TQl9OUl9DVl9SYXRpbmdfTmV3c19BbGw=~20220624_PR_465545.

It maintained United States’ outlook at stable.

(Reporting by Nilanjana Basu in Bengaluru; Editing by Vinay Dwivedi)

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(Reuters) – Bringing down inflation is the U.S. central bank’s “number one priority right now,” but raising interest rates to do so is unlikely to trigger a recession, San Francisco Federal Reserve Bank President Mary Daly said on Friday.

The central bank’s 75-basis-point interest rate hike last week to a range of 1.5%-1.75% “puts policy on an expeditious path to netural by the end of the year,” Daly said in remarks prepared for delivery to Chapman University.

“After that, I see additional tightening beyond neutral as the next likely step,” she said.

Exactly how high rates need to go will depend largely on factors outside the Fed’s control, she said.

That is a point Fed Chair Jerome Powell has also emphasized because much of the current inflation stems from rising energy and food costs related to Russia’s war in Ukraine, and ongoing supply chain and labor supply constraints.

“If supply continues to fall short and inflation remains high, we will need to do more,” Daly said. “If conditions improve and supply bounces back, we can do less.”

Either way, she said, the economy will likely slow and the unemployment rate will likely rise from the current 3.6% level.

But it is not likely to lead to the kind of painful recession that followed in the 1980s, the last time the Fed raised rates sharply to fight high inflation, she said.

The costs of adjusting to higher interest rates and slower growth will be smoother this time around, she said, in part because inflation expectations are much better anchored, and in part because higher rates should cool inflation by reducing excess demand for goods and labor, well before they start to cut into actual production and employment.

“I do expect the costs of adjustment to be moderate, with some slowing of GDP growth below its longer-run trend and an increase in the unemployment rate from the very low levels we see today,” she said.

“This would, to my mind, constitute a relatively smooth transition from a pandemic-wracked, highly accommodative economy to one in which tighter policy supports both full employment and price stability.”

(Reporting by Ann Saphir, editing by Deepa Babington)

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By Mohammad Yunus Yawar

KABUL -Afghanistan lacks the medical supplies to treat those injured in an earthquake that killed more than 1,000 people this week, a senior official said, as an aftershock on Friday killed five more.

Authorities earlier ended a search in remote southeastern mountains for survivors of the 6.1 magnitude earthquake that struck early on Wednesday near the Pakistani border, about 160 km (100 miles) southeast of Kabul, the capital.

Friday’s aftershock, in almost exactly the same place, was of magnitude 4.3, the U.S. Geological Survey said. A health ministry official said it killed five people, but there was no immediate word on the extent of new damage and injuries.

A total of 1,036 people are confirmed to have been killed, the United Nations said on Friday.

About 2,000 people were injured and 10,000 homes partially or entirely destroyed in Wednesday’s earthquake, Mohammad Nassim Haqqani, a spokesperson for Afghanistan’s disaster ministry, told Reuters.

“The health ministry does not have enough drugs,” he said. “We need medical aid and other necessities because it’s a big disaster.”

The epicentre of the earthquake was in a region of arid mountains dotted with small settlements that was often the scene of clashes during Afghanistan’s decades of war.

Poor communications and only very basic roads have hampered relief efforts in a country grappling with a humanitarian crisis that deteriorated sharply after the Taliban took over last August as U.S.-led international forces withdrew.

TALIBAN TEST

The disaster is a major test for the hard line Islamist rulers, who have been largely isolated, shunned by many because of concerns over human rights and cut off from much direct international assistance because of sanctions.

On Thursday, Japan, South Korea, Taiwan and the United Arab Emirates all said they planned to send aid. Supplies from Pakistan have already crossed the border.

India, which has strained ties with the Taliban, said it had sent 27 tonnes of supplies on two flights to be handed to international aid agencies.

The United Nations refugee agency, UNHCR, has rushed tonnes of supplies and expert staff to support the relief effort, it said.

“Four decades of conflict and instability in Afghanistan have left millions of people on the brink of hunger and starvation,” its spokesperson, Shabia Mantoo, said on Friday.

Another U.N. body, the World Health Organisation, has also warned that the disaster could add to the risk of cholera developing across Afghanistan.

About 500,000 people were already experiencing diarrheal disease in May, one of the main symptoms of cholera, said Dr. Dapeng Luo, its representative in Afghanistan.

Speaking before Friday’s aftershock, disaster official Haqqani said the search for survivors had been called off some 48 hours after the earthquake.

“The search operation has finished,” he said, but did not elaborate on the reason. Elsewhere, people have been pulled alive from the rubble of earthquakes after considerably longer periods.

Large parts of South Asia are seismically active because a tectonic plate known as the Indian plate is pushing north into the Eurasian plate.

In 2015, an earthquake struck the remote Afghan northeast, killing several hundred people in Afghanistan and nearby northern Pakistan.

(Reporting by Mohammad Yunus Yawar in Kabul; Additional reporting by Emma Farge in Geneva; Writing by Alasdair Pal; Editing by Robert Birsel, Clarence Fernandez and Bill Berkrot)

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By Gertrude Chavez-Dreyfuss

NEW YORK – The U.S. dollar slipped on Friday and posted its first weekly decline this month, as traders pared back bets on where interest rates may peak and brought forward their outlook on the timing of rate cuts to counter a possible recession.

A significant factor this week has been the fall in oil and commodity prices, which has eased inflation fears and allowed equity markets to rebound. This has eroded the safe-haven bid that has been boosting the dollar against major currencies.

“Falling commodity prices could help pull headline inflation prints downward – particularly into the autumn months – reducing the need for aggressive monetary tightening,” said Karl Schamotta, chief market strategist at payments company Corpay in Toronto.

U.S. fed funds futures on Friday priced in a 73% probability of a 75 basis-point increase at the July meeting. But for September the market has fully factored in just a 50-bps rise.

The market has also priced in a fed funds rates of 3.31% on Friday, from 3.51% a week ago.

In afternoon New York trading, the dollar index, which measures the U.S. unit against six major currencies, fell 0.2% to 104.013.

The safe-haven greenback slipped further after data showed new home sales jumped 10.7% to a seasonally adjusted annual rate of 696,000 units last month. May’s sales pace was revised higher to 629,000 units from the previously reported 591,000 units.

The University of Michigan consumer sentiment survey showed mixed results, with sentiment worsening in June to 50, from a final reading in May of 58. But the reading on five-year inflation expectations eased to 3.1 from the preliminary 3.3% estimate in mid-June.

The dollar, up around 9% this year, has lost some of its shine since investors started betting the Fed could slow the rate-tightening pace following another 75 basis-point increase in July. They now see rates peaking next March around 3.5% and falling nearly 20 bps by July 2023.

Graphic: Peak rates- https://fingfx.thomsonreuters.com/gfx/mkt/dwvkrmjjnpm/Pasted%20image%201656065287424.png

This rate hike repricing sent 10-year Treasury yields to two-week lows, while the dollar index has lost 0.5% this week.

For now though, Fed Chair Jerome Powell stressed the central bank’s “unconditional” commitment to taming inflation. Fed Governor Michelle Bowman also supported 50 bps hikes for “the next few” meetings after July.

Analysts noted terminal rate repricing across the developed world as recession fears grow.

“The Fed has said it will do its best to bring down inflation without dealing a significant blow to the economy,” said Joe Manimbo, senior market analyst, at Western Union Business Solutions in Washington.

“But if a soft landing should ultimately prove elusive, then the Fed would likely have to change course and start to slash rates. So while the rate debate remains fluid, for now inflation fears have given way to hopes of looser policy if things really deteriorate.”

The Japanese yen, sensitive to changes in U.S. yields, was down 0.2% at 135.20 per dollar.

The euro rose 0.3% to $1.0553.

The greenback’s slide boosted even commodity-focused currencies such as the Australian dollar and Norwegian crown. The Aussie rose 0.8% to US$0.6946, and posted its weekly gain after two straight weeks of losses.

The Norwegian crown, fresh off Thursday’s 50 basis-point rate hike, was up 1.2% at 9.8495 per dollar.

The euro fell to its lowest since early March against the Swiss unit at 1.0052 francs. It was last flat at 1.0118 francs .

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Currency bid prices at 4:13PM (2013 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 104.1100 104.4000 -0.27% 8.830% +104.5100 +103.9400

Euro/Dollar $1.0554 $1.0523 +0.30% -7.16% +$1.0571 +$1.0513

Dollar/Yen 135.1850 134.9700 +0.17% +17.44% +135.3900 +134.3600

Euro/Yen 142.68 141.98 +0.49% +9.48% +142.7700 +141.4300

Dollar/Swiss 0.9584 0.9611 -0.27% +5.08% +0.9632 +0.9522

Sterling/Dollar $1.2278 $1.2262 +0.14% -9.21% +$1.2320 +$1.2243

Dollar/Canadian 1.2893 1.2997 -0.78% +1.99% +1.2999 +1.2894

Aussie/Dollar $0.6946 $0.6895 +0.74% -4.44% +$0.6957 +$0.6889

Euro/Swiss 1.0113 1.0114 -0.01% -2.47% +1.0138 +1.0051

Euro/Sterling 0.8593 0.8583 +0.12% +2.30% +0.8602 +0.8562

NZ Dollar/Dollar $0.6319 $0.6277 +0.70% -7.65% +$0.6327 +$0.6277

Dollar/Norway 9.8525 9.9750 -1.21% +11.86% +9.9780 +9.8500

Euro/Norway 10.4003 10.4953 -0.91% +3.87% +10.5146 +10.3595

Dollar/Sweden 10.1306 10.1702 -0.18% +12.34% +10.1878 +10.1043

Euro/Sweden 10.6933 10.7126 -0.18% +4.49% +10.7150 +10.6739

(Reporting by Gertrude Chavez-Dreyfuss in New York; Additional reporting by Sujata Rao in London and Kevin Buckland in Tokyo; Editing by Richard Chang and Alistair Bell)

tagreuters.com2022binary_LYNXMPEI5N042-BASEIMAGE

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ISTANBUL -Turkey on Friday restricted lending to many companies with more than $1 million in foreign currency cash, the latest step to reverse a tumbling foreign-exchange rate by squeezing banks and businesses, and the lira rose as much as 5%.

After most local markets had closed for the week, a state regulator said that if companies had more than 15 million lira ($908,000) of forex cash assets, and they exceed 10% of total assets or annual revenues, they will not be allowed to receive new lira loans.

The new rule was the latest in a raft of government and central bank measures since a historic currency crash in December sent inflation soaring. The BDDK banking watchdog said it would strengthen financial stability.

Analysts said Turkey’s currency could rise more when markets re-open on Monday because the measure could force many large and medium-sized companies to convert forex assets to lira in order to maintain access to credit.

The lira rallied to as much as 16.4975 versus the dollar, its strongest in three weeks, as the measures were first revealed by state-run Anadolu agency. It was worth 16.85 at 1904 GMT, up 3% on its best trading day of the year.

The currency crisis in December was set off by a series of unorthodox interest rate cuts that President Tayyip Erdogan had sought from the central bank despite rising prices.

The lira shed 44% of its value last year and remains down 22% this year on concerns over policy, depleted official reserves, a rising current account deficit and some investor and saver fears of capital controls.

Well over half of deposits in Turkey are in hard currency as a hedge against lira depreciation and inflation. The BDDK measure seeks to tackle that, said Enver Erkan, chief economist at Tera Yatirim.

“The basic perspective here is to trim the foreign exchange demand that is deemed ‘unnecessary’ or made for speculative purposes,” he wrote.

The lira depreciation and fallout from the war in Ukraine has sent Turkey’s annual inflation rate to a 24-year high of 73.5%, severely straining household budgets ahead of tight elections for Erdogan by mid-2023.

The lending restriction is the latest step that has placed state institutions, especially the central bank, in a dominant role in the forex market.

Among them are central bank market interventions to boost the lira, a state-backed FX-protected deposit scheme, and requirements for exporters to sell a portion of forex revenues to the central bank.

($1 = 16.5156 liras)

(Reporting by Ezgi Erkoyun and Daren Butler; Writing by Jonathan Spicer; Editing by David Gregorio)

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Tampa, Florida – U.S. District Judge William F. Jung today sentenced Ronald O’Neal White (26, Tampa) to 37 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered White to forfeit the Taurus PT11 G2 GN firearm and ammunition. White had pleaded guilty on March 24, 2022.

According to court documents, on February 21, 2021, law enforcement officers responded to the scene where it had been reported that an individual had pointed a firearm at another individual. While on scene, an officer observed a van drive by slowly. Witnesses identified White as a passenger in the van and informed the officers that White was the individual who had pointed the firearm at the other person.

Officers conducted a traffic stop of the van and a subsequent searched of the vehicle revealed a loaded firearm under the seat where White was sitting. The gun had previously been reported stolen. White later admitted to possessing the firearm.  White is a previously convicted felon and therefore is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Charlie D. Connally.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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Damian Williams, the United States Attorney for the Southern District of New York, announced today that ETHAN PHELAN MELZER, a/k/a “Etil Reggad,” pled guilty to attempting to murder U.S. service members, providing and attempting to provide material support to terrorists, and illegally transmitting national defense information.  MELZER planned a jihadist attack on his U.S. Army unit in the days leading up to a deployment to Turkey and sent sensitive details about the unit—including information about its location, movements, and security—to members of the extremist organization Order of the Nine Angles (“O9A”), an occult-based, neo-Nazi, and white supremacist group.  MELZER pled guilty today before U.S. District Judge Gregory H. Woods.

U.S. Attorney Damian Williams said:  “As he admitted in court today, Ethan Melzer attempted to orchestrate a murderous ambush on his own unit by unlawfully disclosing its location, strength, and armaments to a neo-Nazi, anarchist, white supremacist group.  The defendant believed he could force the U.S. into prolonged armed conflict while causing the deaths of as many soldiers as possible.  MELZER’s traitorous conduct was a betrayal of his storied unit and nothing short of an attack against the most essential American values.  Thanks to the incredible work of the FBI and the U.S. Army, MELZER’s duplicity was revealed and his murderous attack thwarted.”    

According to the Indictment and other documents in the public record, as well as statements made in public court proceedings:

MELZER has been a member of O9A since at least 2017.  O9A espouses neo-Nazi, anti-Semitic, and Satanic beliefs, and promotes extreme violence to accelerate and cause the demise of Western civilization.  The group has expressed admiration both for Nazis, such as Adolf Hitler, and Islamic jihadists, such as Usama Bin Laden, the now-deceased former leader of al Qaeda.  Members and associates of O9A have also participated in acts of violence, including murders.  O9A members are instructed to fulfill “sinister” deeds, including “insight roles,” where they attempt to infiltrate various organizations, including the military, to gain training and experience, commit acts of violence, identify like-minded individuals, and ultimately subvert those groups from within.

MELZER joined the U.S. Army in approximately 2018 as part of an O9A insight role to infiltrate its ranks and further his goals as an O9A adherent.  In approximately October 2019, MELZER deployed abroad with the Army to Italy as a member of the 173rd Airborne Brigade Combat Team.  While stationed abroad, MELZER consumed propaganda from multiple extremist groups, including O9A and the Islamic State of Iraq and al-Sham, which is also known as ISIS.   For example, MELZER subscribed to encrypted online forums where he downloaded and accessed videos of jihadist attacks on U.S. troops and facilities and jihadist executions of civilians and soldiers, in addition to far-right, neo-Nazi, and other white supremacist propaganda. 

In approximately early May 2020, the Army informed MELZER that he would be reassigned to a unit scheduled for a further foreign deployment, where the unit would be guarding an isolated and sensitive military installation (the “Military Base”).  After he was notified of the assignment, MELZER joined his new unit and attended weeks of training, including classified and unclassified briefings, to prepare for the deployment.  As part of this intensive training, MELZER learned details about the purpose, layout, and security of the Military Base.  MELZER and his unit also received in-depth training about and practiced for numerous threat scenarios at the Military Base, including how to respond to various potential terrorist attack scenarios.  

Upon learning the importance and sensitivity of his upcoming deployment, MELZER immediately began passing that information to members of O9A.  MELZER secretly used an encrypted messaging application to propose, advocate for, and plan a deadly attack on his fellow service members.  MELZER sent messages to members and associates of O9A, and, in particular, a sub-group of O9A known as the “RapeWaffen Division,” providing details about his unit’s anticipated deployment including troop movements, relevant dates, locations, armaments, topography, and security, all in connection with the proposed attack on his unit and the Military Base.  MELZER and his co-conspirators used this information to plan what they referred to as a “jihadi attack” with the objective of causing a “mass casualty” event victimizing his fellow service members.  For example, after describing the unit’s weaponry during the deployment – and providing information consistent with the briefings he had received – MELZER described to his co-conspirators how an attack would “essentially cripple[]” the unit’s “fire-teams.”

To further the attack plan, MELZER and his co-conspirators passed these messages to a purported member of al Qaeda.   MELZER’s proposed attack evolved as he gathered and distributed additional sensitive information about the deployment.  For example, MELZER also promised to leak more information once he arrived at the Military Base – including real-time photographs of the facility and the frequency and channel of U.S. Army radio communications – in order to maximize the likelihood of a successful attack on his unit or on a replacement unit deployed to the Military Base. 

MELZER told members of O9A in his encrypted electronic communications “[y]ou just gotta understand that currently I am risking my literal free life to give you all this” and that he was “expecting results.”  MELZER further acknowledged that he could be killed during the attack, and described his willingness to die for O9A’s goals, writing “who gives a [expletive] [. . .] it would be another war . . . I would’ve died successfully . . . cause [] another 10 year war in the Middle East would definitely leave a mark.”  MELZER also acknowledged in his messages that he deleted some of the communications regarding the planning of the attack because the plot amounted to treason.

*                *                *

MELZER, 24, of Louisville, Kentucky, pled guilty to (1) attempting to murder U.S. military service members, in violation of 18 U.S.C. § 1114, which carries a maximum sentence of 20 years in prison; (2) attempting to provide and providing material support to terrorists, in violation of 18 U.S.C. § 2339A, which carries a maximum sentence of 15 years in prison; and (3) illegally transmitting national defense information believing that it could be used to the injury of the United States, in violation of 18 U.S.C. § 793(d), which carries a maximum sentence of 10 years in prison.  MELZER is scheduled to be sentenced by Judge Woods on January 6, 2023, at 10 a.m.

The statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding efforts of the Federal Bureau of Investigation’s (“FBI”) New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department, along with the FBI’s Legal Attaché Office in Rome, Italy, the Air Force Office of Special Investigations, U.S. Army Counterintelligence, U.S. Army Criminal Investigation Command, Attorneys from the U.S. Army Africa Office of the Staff Judge Advocate and 173rd Airborne Brigade Combat Team, and the U.S. Department of State Diplomatic Security Service.  Mr. Williams also thanked the Counterterrorism Section and the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division, as well as the Department’s Office of International Affairs, for their assistance.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Sam Adelsberg, Matthew J.C. Hellman, and Kimberly J. Ravener are in charge of the prosecution, with assistance from Trial Attorneys Alicia Cook of the Counterterrorism Section and Scott Claffee of the Counterintelligence and Export Control Section.

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            WASHINGTON – Anthony Bedney, 27, of Washington, D.C., was sentenced today to 20 years in prison for shooting a woman and her five-year-old child after an argument over a scooter he abandoned in a bike lane in Northwest Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).

            Bedney pleaded guilty in April 2022, in the Superior Court of the District of Columbia, to one count of assault with intent to kill with a dangerous weapon and two counts of possession of a firearm during a crime of violence. The plea, which was contingent upon the Court’s approval, called for a sentence of 15 to 20 years in prison. The Honorable Milton C. Lee, Jr. accepted the plea and sentenced the defendant accordingly. Following his prison term, Bedney will be placed on five years of supervised release.

            According to the government’s evidence, the attack took place at about 6:50 p.m. on May 18, 2021. Bedney left a rented scooter in a bike lane on 10th Street NW. A woman who was outside with her family told Bedney that he could not leave his scooter there. The woman then moved the scooter. Bedney then came back and kicked the scooter over. The woman said something to the effect of: “My kids are playing here.” Bedney replied with an expletive. The woman’s husband then approached him as the mother and two young children retreated. He and Bedney engaged in a verbal altercation, and the father threw the scooter back towards him. Bedney moved away and was not hit. The father, meanwhile, moved to be near his family.

            As the family was going back inside their residence, Bedney placed a black ski-type mask over his head and face. He then retrieved a firearm from his bag and fired approximately seven shots in the direction of the family. One bullet struck the woman in the chest/neck area, and one struck one of the children, who was five years old, in the back. The mother was hospitalized for six weeks. The bullet still remains lodged in the child’s back. The father and the other child, then two years old, were not hit by the gunfire.

            Bedney fled the scene. He was arrested on May 27, 2021, after police linked him to the scooter through the rental company’s records. He has been in custody ever since.

            In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Allison Daniels and Debra McPherson and Victim/Witness Program Specialist Karina Hernandez. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Nicole G. H. Conte, who investigated and prosecuted the matter.

 

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BOSTON – A Somerville attorney was arrested today on charges that he engaged in a scheme to bribe the Medford Chief of Police.

Sean O’Donovan, 54, was indicted on two counts of honest services wire fraud and one count of bribery concerning programs receiving federal funds. O’Donovan will make an initial appearance in federal court in Boston this afternoon.

“This case is about attempted corruption of government officials. I commend the Chief of Police in Medford for reporting this illegal behavior to the FBI immediately,” said United States Attorney Rachael S. Rollins. “We must ensure that greed and unethical conduct do not undermine the proper functioning of city governments across our Commonwealth. This prosecution does just that.”

  “Today, the FBI arrested attorney Sean O’Donovan for allegedly engaging in a pay-to-play scheme in which he tried to capitalize on his insider access, in attempting to bribe the Medford Police Chief, for his own financial benefit,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “It is vitally important that host community agreements be awarded through a fair and transparent process, not through back-door deals funded by bribes to those in positions of power. We believe what we have uncovered in this case is not only an affront to all the hard-working businesses that play by the rules, but a betrayal of Mr. O’Donovan’s client and the community’s trust.”

According to the indictment, in late 2018, a company involved in the cultivation and retail sale of medical and recreational marijuana (the Client) retained O’Donovan as a consultant to assist in obtaining a Host Community Agreement (HCA) with the City of Medford. Under Massachusetts law, recreational marijuana retail establishments are required to sign an HCA with cities to obtain an operational license. In 2020, Medford established a local Cannabis Advisory Committee (CAC), composed of five Medford officials, including the Medford Chief of Police (Chief). The Medford CAC is tasked with reviewing, interviewing and ranking marijuana retail applicants on behalf of the Mayor of Medford, who has final authority to decide which applicants are selected.

It is alleged that in February 2021, O’Donovan approached Individual 1 and offered to pay Individual 1 $25,000 to speak with the Chief about the Client’s anticipated application for an HCA with Medford. Individual 1 is a close relative of the Chief and subsequently informed the Chief of O’Donovan’s offer. The Chief immediately alerted federal authorities of the alleged bribe.

Over the course of the investigation, O’Donovan, believing he had an agreement with Individual 1 and the Chief, offered to pay Individual 1 approximately $25,000 in exchange for the Chief’s favorable action on the Client’s application. Specifically, O’Donovan sought to have the Chief favorably rank the Client HCA application in his role on the Medford CAC and have the Chief advising and pressuring the Mayor to enter into an HCA with the Client.

According to the indictment, O’Donovan took steps to conceal the true purpose of the planned bribe payment. For example, O’Donovan allegedly proposed falsely characterizing a payment as a loan to Individual 1 and offered to pay the bribe money in cash, stating, “If I give you cash, there will be no trace.” It is further alleged that O’Donovan rejected the idea of a contract with Individual 1, explaining that he did not “think that’s a good paper trail.” On or about October 11, 2021, O’Donovan met with Individual 1 and allegedly provided Individual 1 with $2,000 in cash as a down payment on the bribe. It is further alleged that O’Donovan was slated to receive a stream of income of at least $100,000 annually from the Client’s marijuana business if its Medford application were successful. 

According to the indictment, O’Donovan never informed the Client of his bribery scheme with Individual 1. In October 2021, when O’Donovan proposed that the Client hire Individual 1 as a consultant, the Client rejected the proposal and told O’Donovan that the Client was an “above board company.”

The charge of honest services wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. The charge of federal programs bribery provides for a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

U.S. Attorney Rollins; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; and FBI SAC Bonavolonta made the announcement today. The Department of Justice commends the Medford Chief of Police for immediately bringing this matter to the attention of federal law enforcement. Assistant U.S. Attorney Kristina E. Barclay of Rollins’ Public Corruption & Special Prosecutions Unit and Trial Attorney Jonathan E. Jacobson of the Department of Justice’s Public Integrity Section are prosecuting the case.

The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing today of an Indictment charging DOMINIC PINEDA and SHON MORGAN with conspiracy to commit Hobbs Act robbery in May 2020 in Irvington, New York.  PINEDA and MORGAN were arrested yesterday in Virginia and will be presented this afternoon in the Eastern District of Virginia.

U.S. Attorney Damian Williams said:  “As alleged in the indictment, the defendants participated in a violent plan to break into a family’s home in the middle of the night and force its residents to provide the code to what the defendants believed was tens of millions of dollars in Bitcoin currency.  Thanks to the work of the FBI, the defendants will now be held responsible for the alleged acts.”

As alleged in the Indictment unsealed today in White Plains federal court[1]

From May 18, 20200 to May 24, 2020, DOMINIC PINEDA and SHON MORGAN participated in a plan to break into a home in Irvington, New York and rob its residents of cash and cryptocurrency. 

*                *                *

PINEDA, 21, of Manassas, Virginia, and MORGAN, 21, of Centreville, Virginia, are each charged with conspiracy to commit Hobbs Act robbery, in violation of 18 U.S.C. § 1951, which carries a maximum term of 20 years in prison. 

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force, which is comprised of special agents and task force officers from the FBI, U.S. Probation, New York State Police, New York State Department of Corrections and Community Supervision, Putnam County Sheriff’s Office, Westchester County DAs Office, Rockland County DAs Office, NYPD, Westchester County PD, and the Yonkers, New Rochelle, Mount Vernon, Greenburgh, White Plains, Peekskill, Ramapo, and Clarkstown Police Departments and thanked the Irvington Police Department and the Greenburgh Drug and Alcohol Task Force for their assistance in the investigation and prosecution of PINEDA and MORGAN.

This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Courtney L. Heavey is in charge of the prosecution.

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

 


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

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First Assistant U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a nine-count indictment charging Jaylen Harris, 19, of Beachwood, Ohio, Lavelle Jones, 18, of Warrenville Heights, Ohio, Devin Rice, 20, of Cleveland, Ohio, and Hakim Benjamin, 20, of Cleveland Heights, Ohio, with organizing and engaging in a conspiracy to steal, sell and purchase high-end vehicles, rob Postal Service carriers and steal from the U.S. mail.

Defendants Harris, Jones, Rice and Benjamin are each charged with conspiracy to commit sale or receipt of stolen vehicles and sale or receipt of stolen vehicles.  Defendants Rice, Jones and Harris are charged with additional counts of possession of stolen mail.  Defendant Rice is also charged with aiding and abetting the robbery of a postal carrier and stealing keys adopted by the Post Office.  Defendant Harris is charged with an additional count of illegal possession of a machine gun.

According to court documents, from December 2021 to February 2022, the defendants are accused of stealing and purchasing high-end vehicles from car dealerships in Michigan and transporting the vehicles to be sold in the Northern District of Ohio.  The indictment states that the defendants targeted specific vehicles to steal and purchase, including the Dodge Durango, Dodge Ram TRX, Dodge Hellcat, Audi 8 and others.

In addition to the car theft conspiracy, Defendants Rice, Jones and Harris are charged with organizing and engaging in a conspiracy to rob Postal Service carriers, steal Postal Service mail keys and illegally obtain mail from Postal Service collection boxes. 

Court documents state that the defendants sought to obtain Postal Service collection box keys from mail carriers in order to steal checks and other items of value from the U.S. mail.  It is alleged that the defendants would often rob mail carriers of their collection box keys while on duty and then pull checks and other items of value from the mail.

On January 31, 2022, Defendant Rice was arrested by law enforcement authorities after committing robbery and assault of a Postal Service carrier.  During the arrest, it is alleged that Rice was found to be in possession of various pieces of stolen mail.  

On February 10, 2022, a search warrant was executed at a hotel where Defendants Harris and Jones were residing.  During the search, authorities obtained multiple pieces of stolen mail and a firearm belonging to Harris that was modified to fire as a machinegun. 

Court records state that as a result of the various schemes, the defendants caused an estimated potential loss of $2,700,000.

An indictment is only a charge and is not evidence of guilt.  The defendants are entitled to a fair trial in which it is the government’s burden to prove guilt beyond a reasonable doubt.

If convicted, the defendants’ sentence will be determined by the court after a review of factors unique to this case, including prior criminal record, if any, role in the offenses, and the characteristics of the violation.

In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.

This case was investigated by the FBI, United States Postal Inspection Service (USPIS), Ohio State Highway Patrol, Ohio Bureau of Motor Vehicles, Cuyahoga County Criminal Investigators, Beachwood Police Department and Shaker Heights Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Kathryn G. Andrachik and Jason W. White.

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The Office of the United States Attorney for the District of Vermont stated that on June 24, 2022, Chief United States District Judge Geoffrey W. Crawford sentenced Amrou Mohamed, 26, of Burlington, to a 15-month term of imprisonment, to be followed by three years of supervised release, following his guilty plea to a charge of aiding and abetting a false statement in connection with the purchase of a firearm in June of 2021.

According to court records, Mohamed planned for an unnamed buyer to purchase a firearm for him. Mohamed coached the buyer on the steps the buyer would need to take to purchase the firearm for him and informed the buyer that the buyer would need to lie when answering a question on a form asking if the buyer was the actual purchaser of the firearm.  On June 2, 2021, Mohamed provided the buyer with funds for the purchase of the firearm, then drove the buyer to a licensed firearms dealer.  The buyer selected a Glock 17 9mm pistol and submitted ATF Form 4473 indicating that the buyer was in fact the actual purchaser of the firearm.  On June 26, 2021, the Burlington Police Department seized the firearm from Mohamed, finding that it was loaded with ten rounds of 9mm ammunition.

At the sentencing hearing, Judge Crawford found that Mohamed’s offense involved between three and seven firearms based on his unlawful possession of various firearms on other occasions.

United States Attorney Nikolas P. Kerest commended the efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives for their work on this investigation, as well as the Burlington Police Department and the South Burlington Police Department.  U.S. Attorney Kerest stated: “Lying to firearms dealers in order to illegally obtain guns is a serious offense that undermines the safety of our community.  We will continue to work closely with our law enforcement partners to investigate and prosecute violations of federal firearms laws.” 

The case was prosecuted by Assistant United States Attorney Nate Burris.  Mohamed was represented by Attorney Mary Nerino of the Office of the Federal Public Defender.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.  Please visit https://www.justice.gov/psn  for more information.

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Damian Williams, the United States Attorney for the Southern District of New York, announced today that PATRICK KHAZIRAN, a/k/a “Dr. Pat,” pled guilty to conspiracy to commit health care fraud in connection with a scheme to defraud the National Basketball Association (“NBA”) Players’ Health and Welfare Benefit Plan. KHAZIRAN pled guilty before U.S. District Judge Valerie E. Caproni. 

U.S. Attorney Damian Williams said:  “Khaziran abused his position as a medical services provider by creating fraudulent invoices and defrauding the NBA Players’ Health and Welfare Benefit Plan of at least $1.3 million.  I thank our law enforcement partners in the FBI for their hard work unraveling this pervasive scheme.  My office will continue to investigate those who abuse their positions as medical service providers to commit fraud.”   

According to the Information, public court filings, and statements made in court:

The NBA Players’ Health and Welfare Benefit Plan (the “Plan”) is a health care plan providing benefits to eligible active and former players of the NBA.  KHAZIRAN is a chiropractor licensed in the State of California who owns and operates a chiropractic office (“Chiropractic Office-1”), which is a chiropractic and rehabilitation office in Los Angeles, California. Chiropractic Office-1 serves the general public and also provides rehabilitation services to professional athletes.

From at least in or about 2016, up to and including at least in or about 2019,  KHAZIRAN participated in a scheme with other several former NBA players, including Terrence Williams and Keyon Dooling, to defraud the Plan.[1]  KHAZIRAN’s role in the scheme was to document that former NBA players received certain medical services when, in truth and in fact, the medical services were never provided. 

KHAZIRAN accomplished his role in the scheme in two ways.  First, beginning in 2016, KHAZIRAN created, and caused others to create, fraudulent invoices for former NBA players.  The former NBA players that received fraudulent invoices then, in turn, submitted the fraudulent invoices to the Plan to request reimbursements that they were not entitled to. Second, KHAZIRAN charged, and caused others to charge, the Plan-issued debit cards of former NBA players.  The Plan-issued debit cards were intended to be used by Plan participants to pay for eligible medical services at the point of service.  However, KHAZIRAN charged the Plan-issued debit cards of former NBA players for medical services that were never actually provided.  In return for his participation in the scheme, KHAZIRAN received approximately 33% of the fraudulent proceeds he documented—i.e., 33% of the value of the fraudulent invoices and 33% of the fraudulent charges on Plan-issued debit cards, which totaled approximately $1.3 million.  The remaining fraudulent proceeds were kept by the former NBA players KHAZIRAN conspired with.

*                *                *

KHAZIRAN, 40, of Los Angeles, California, pled guilty to one count of conspiracy to commit health care fraud, which carries a maximum term of ten years in prison.  As part of his guilty plea, KHAZIRAN agreed to pay restitution of $1,300,000 and to forfeit $429,000 to the United States.  KHAZIRAN is scheduled to be sentenced on January 12, 2023.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorneys Ryan B. Finkel and Kristy J. Greenberg are in charge of the prosecution.

 

 


[1] Charges against Williams and Dooling are pending.

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PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that Scott E. Diamond, 62, of Philadelphia, PA, and Jesse M. Cohen, 42, of Los Angeles, CA, were charged together by Information with one count of mail fraud and one count of wire fraud. Diamond was an attorney who was a partner in a Philadelphia law firm, and Cohen was an associate in the same law firm. The firm specialized in complex commercial litigation, representing plaintiffs in personal injury matters, and representing insurance companies in insurance subrogation matters.

According to the Information, for approximately two years from 2018 through 2020, Diamond and Cohen engaged in a scheme to divert the fees from numerous personal injury and subrogation matters from the firm to themselves by secretly resolving the cases without the other firm partners knowing about the resolutions. Diamond and Cohen then caused insurance companies and other payors on those cases to send legal fees to themselves instead of to their employer, the law firm. When that was not possible, Diamond went through the firm’s mail and removed checks covering legal fees on the stolen cases made payable to the firm. Diamond then deposited checks from the cases they diverted into bank accounts that he controlled and shared the proceeds with Cohen. Diamond concealed the illegal conduct from his employer by closing the files for those matters and making it appear in the computer records of the firm that there were no settlements or resolutions and that the cases were not viable.

The personal injury and subrogation matters that Diamond and Cohen diverted from the law firm generated approximately $750,000 in initial payments to the defendants, from which they distributed funds to clients and covered other costs in the litigation, maintaining the balance of the fraud proceeds (approximately $320,000) for themselves.

If convicted, the defendants each face maximum possible sentences of 40 years in prison.

The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Louis D. Lappen.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

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ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Gilbert John, Jr., 33, of Brimhall, New Mexico, and an enrolled member of the Navajo Nation, and Kendra K. Panteah, 34, of Zuni, New Mexico, and an enrolled member of the Zuni Pueblo, have been arraigned in federal court. John was arraigned on March 30, charged with second degree murder in Indian Country. Panteah was arraigned on July 23, charged with kidnapping in Indian Country resulting in death. Pending trial, John will remain in custody and Panteah was conditionally released to a halfway house. A trial date has not been scheduled.

According to the indictment and other court records, in July 2019, the victim, identified in court records as John Doe, traveled with Panteah and two other people to Witch Wells, Arizona, and back to New Mexico. At some point, passengers in the car allegedly beat John Doe and put him in the trunk of the car. The group then travelled to Pinehill and then Gallup, New Mexico, when Panteah allegedly called John because she didn’t know what to do.

Panteah allegedly travelled to Gilbert John’s apartment and told him what happened. The two then allegedly drove from Gallup into the Navajo Nation and drove around for a day with John Doe still in the trunk. Eventually, they stopped the car near Bass Lake where John Doe regained consciousness. John Doe was able to open the trunk and got out, and Gilbert John then allegedly stabbed John Doe with a machete and knife. Gilbert John and Panteah then allegedly put John Doe back in the trunk and sat on it to prevent John Doe from getting out until John Doe stopped moving.

John drove the car to a residence in Standing Rock, New Mexico. While allegedly attempting to remove the car’s tracker, John disabled the car and could not repair it. The car was left at the residence for about 10 days before John allegedly returned and towed the car down Pipeline Road where he drove it into a canyon. He then allegedly went to Gallup for gasoline, returned to the car, doused it, and set it alight.

The alleged offenses took place on the Navajo Nation and John Doe is an enrolled member of the Navajo Nation.

An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, John and Panteah face life in prison.

The Gallup Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department. Assistant United States Attorney Alexander F. Flores is prosecuting the case.

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