By David Shepardson

WASHINGTON -An airline industry trade group said on Friday the Federal Aviation Administration (FAA) must ensure adequate air traffic control (ATC) staffing to avoid further summer travel disruptions.

Airlines for America told U.S. Transportation Secretary Pete Buttigieg in a letter that the staffing challenges are disrupting flights even in good weather.

The Jacksonville Air Route Traffic Control Center in Florida had been “understaffed for 27 of the last 30 days, which is crippling to the entire east coast traffic flows,” the group noted.

Travelers are already facing a difficult summer as airlines expect record demand and as they rebuild staff levels after thousands of workers left the industry during the COVID-19 pandemic. As of Friday afternoon https://flightaware.com/live/cancelled, airlines had cancelled 573 flights and delayed more than 2,600, according to FlightAware.

Airlines for America sought a meeting with transportation officials “to discuss how we can work together to better understand FAA’s controller staffing plan for the upcoming July 4th weekend and summer travel season.”

The FAA responded in a statement that “after receiving $54 billion in pandemic relief to help save the airlines from mass layoffs and bankruptcy, the American people deserve to have their expectations met.”

The agency added it “has acted on the issues raised in the letter” including adding alternate routes, placing more controllers in high demand areas, and increasing data sharing.

The FAA said in May it would boost air traffic control staff in Florida.

Last week, Buttigieg called a virtual meeting with the chief executives of major U.S. airlines to discuss thousands of recent flight cancellations and delays over the Memorial Day holiday weekend. He urged airlines to ensure they can reliably operate planned summer schedules.

Airlines for America’s Friday letter, released publicly, said carriers “pulled down 15% of summer (June-August) flights relative to what they had planned for at the outset of 2022.”

The letter said one carrier estimated ATC-related issues “were a factor in at least one-third of recent cancellations.” The group said ATC “staffing challenges have led to traffic restrictions under blue sky conditions.”

The letter also said it was “imperative” to ensure adequate staffing at New York Terminal Radar Approach Control. It urged the FAA “to share its staffing plan with airlines” for the July 4 holiday period and to schedule space launch airspace closures “to avoid high-volume air traffic times.”

On Thursday, USDOT said U.S. consumers lodged more than quadruple the number of complaints against U.S. airlines in April compared with pre-pandemic levels as on-time arrivals fell below 2019 levels.

(Reporting by David Shepardson in Washington; Editing by Mark Porter, Matthew Lewis and Richard Chang)

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By Philip Pullella

VATICAN CITY -The Vatican’s Academy for Life on Friday praised the U.S. Supreme Court’s decision on abortion, saying it challenged the world to reflect on life issues, but also called for social changes to help women keep their children.

The Vatican department also said in a statement that the defence of human life could not be confined to individual rights because life is a matter of “broad social significance”.

The U.S. Supreme Court on Friday took the dramatic step of overturning the landmark 1973 Roe v. Wade ruling that recognised a woman’s constitutional right to an abortion and legalized it nationwide.

“The fact that a large country with a long democratic tradition has changed its position on this issue also challenges the whole world,” the academy said in a statement.

U.S. President Joe Biden, a lifelong Catholic, condemned the ruling, calling it a “sad day” for America and labelling the court’s conservatives “extreme”.

Archbishop Vincenzo Paglia, who heads the Pontifical Academy for Life, said the court’s decision was a “powerful invitation to reflect” on the issue at a time when Western society “is losing passion for life”.

“By choosing life, our responsibility for the future of humanity is at stake,” Paglia said.

The Roman Catholic church teaches that abortion is murder because life begins at the moment of conception and ends with natural death.

Pope Francis has compared having an abortion to “hiring a hit man” to eliminate a problematic person.

The academy statement also called for changes in social conditions to make it easier to defend life in all its stages.

“This also means ensuring adequate sexual education, guaranteeing health care accessible to all and preparing legislative measures to protect the family and motherhood, overcoming existing inequalities,” it said.

“We need solid assistance to mothers, couples and the unborn child that involve the whole community, encouraging the possibility for mothers in difficulty to carry on with the pregnancy and to entrust the child to those who can guarantee the child’s growth,” it said.

(Reporting by Philip Pullella; writing by Angelo Amante; editing by Giulia Segreti, Leslie Adler and Nick Macfie)

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By David Morgan

WASHINGTON – Leading Democrats sought to turn Friday’s Supreme Court decision overturning Roe v. Wade into a rallying cry for the November elections, warning of grim consequences for women, contraception and gay marriage if Republicans regain control of Congress.

In a 5-4 ruling powered by its conservative majority, the high court overturned the 1973 landmark decision that had recognized a woman’s right to an abortion, and had legalized it nationwide, for nearly half a century.

The decision was greeted as a stunning victory by anti-abortion Republicans and other conservatives, while Democrats and abortion-right activists protested what they described as a step backwards for the rights of American women.

But with control of the House of Representatives and the Senate at stake in the Nov. 8 midterm elections, Democrats also warned that the rights of women and others would face further dangers if Republicans regain control of Congress.

“The Republicans are plotting a nationwide abortion ban. They cannot be allowed to have a majority in the Congress to do that,” said House of Representatives Speaker Nancy Pelosi, the chamber’s top Democrat, told reporters.

“It is clear that we just have to win a majority in November. Everything is at stake,” added Pelosi, a Catholic who was barred from taking communion last month by the archbishop of San Francisco because of her support for abortion rights.

About 71% of Americans – including majorities of Democrats and Republicans – say decisions about terminating a pregnancy should be left to a woman and her doctor, rather than regulated by the government, according to Reuters/Ipsos polling.

Democrats hope voter anger about the Supreme Court’s decision will help them retain their razor-thin margins of control in the House and Senate. With President Joe Biden’s approval rating slumping, most forecasters have so far favored Republicans’ chances of winning a majority in at least the House.

“This fall, Roe is on the ballot. Personal freedoms are on the ballot. The right to privacy, liberty, equality are all about it,” Biden said on Friday.

It was not clear how easily Democrats could use the abortion rights message to mobilize support. Despite having control of the White House and both chambers of Congress for nearly 18 months, Biden and his Democratic allies have disappointed their core supporters with repeated failures on hot-button issues including abortion, voting rights and social spending.

Efforts to reform the Senate filibuster and overcome Republican opposition to the Biden agenda have been hamstrung by opposition from within their own party, specifically Democratic Senators Joe Manchin and Kyrsten Sinema.

Even their success at enacting moderate gun-safety legislation proved uninspiring to strong gun-control advocates and was overshadowed twice by the Supreme Court, which broadly expanded gun rights a day before overturning Roe v. Wade.

Senate Majority Leader Chuck Schumer said voters would now have a clear choice between Democrats and “MAGA Republicans,” using an acronym for allies of former President Donald Trump.

“Elect more MAGA Republicans if you want nationwide abortion bans, the jailing of women and doctors and no exemptions for rape or incest. Or, elect more pro-choice Democrats to save Roe,” Schumer said in a statement.

House Republicans welcomed the ruling and talked openly about a path forward to “end abortion in this country.”

“The Supreme Court’s decision overturning Roe v. Wade, overturning that flawed decision finally allows states and Congress to protect life in ways that we never were able to for the last 50 years,” Representative Steve Scalise, the No. 2 House Republican, told reporters.

(Reporting by David Morgan; additional reporting by Doina Chiacu, Katharine Jackson and Moira Warburton; Editing by Scott Malone and Alistair Bell)

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(Reuters) – The U.S. Food and Drug Administration ordered Juul Labs Inc to stop selling its e-cigarettes in the United States on Thursday, saying the company’s data “lacked sufficient evidence” to show its products would be appropriate for the protection of public health.

The following are significant events in the checkered history of Juul Labs, which started under the name of Ploom Inc:

Date/Year Event

2007 Product Design graduates of Stanford University,

James Monsees and Adam Bowen, found Ploom Inc,

drawing from their thesis project on a new kind

of cigarette.

2012 Ploom introduces a line of vaporizers called

Pax, designed to heat up loose-leaf tobacco but

instead became enormously popular as discreet

devices for using cannabis.

2015 Ploom becomes Pax Labs after selling the rights

of its products to Japan Tobacco International,

an investor in the company.

2015 Pax Labs introduces Juul e-cigarette.

2017 Pax Labs spins out into a separate company,

leaving Juul Labs to focus on nicotine

e-cigarettes.

Dec. 2017 Juul names former Chobani executive Kevin Burns

as its new chief executive.

April 2018 The U.S. Food and Drug Administration says it

has conducted an investigation of underage sales

of Juul products and writes to Juul requesting

documents around the marketing of its products.

April 2018 Juul announces it will take more decisive action

by supporting state and federal push to raise

the minimum age to 21+ to purchase tobacco

products.

Sept. 2018 Then-FDA Commissioner Scott Gottlieb calls

teenage vaping an “epidemic,” tells Juul and

other e-cigarette makers they have 60 days to

submit plans on ways to combat youth use.

Nov. 2018 Juul announces plans to pull all flavors from

over 90,000 retail stores except tobacco, mint

and menthol; the FDA says it will craft similar

regulations around those flavors. (https://reut.rs/3yd7xTj)

Dec. 2018 Tobacco giant Altria Group invests $12.8 billion

in Juul, taking a 35% stake in Juul and valuing

the company at $38 billion. (https://reut.rs/3HMAZms)

Sept. 9, The FDA sends warning letter to Juul CEO over

2019 its unproven claims that its products pose less

harm than traditional cigarettes.

Sept. 11, Trump administration says it will ban the sale

2019 of most flavored e-cigarettes.

Sept. 25, CEO Kevin Burns steps down. Juul names former

2019 Altria executive KC Crosthwaite as CEO. Also

suspends all advertising in the U.S. and says it

will refrain from lobbying the Trump

administration. (https://reut.rs/3xSpFR0)(https://reut.rs/3zY5SCp)

Oct. 17, Juul suspends sale of its non-tobacco,

2019 non-menthol-based flavors Mango, Creme, Fruit

and Cucumber in the United States pending FDA

review. (https://reut.rs/3OFYEHD)

Oct. 31, Altria says it is writing down its investment in

2019 Juul by $4.5 billion, citing regulatory risks.

(https://reut.rs/3bmGxbk)

Nov. 12, Juul to cut nearly $1 billion in costs next

2019 year. (https://reut.rs/3NfoGjI)

Nov. 19, The state of California sues Juul, alleging the

2019 San Francisco company engaged in a “systematic”

and “wildly successful” campaign to woo

teenagers to its nicotine devices. (https://reut.rs/3HTgXGX)

Jan. 2, Trump administration bans some popular

2020 e-cigarette flavors including fruit and mint,

allowing only menthol and tobacco flavors to

remain on the market. (https://reut.rs/3bpKkEs)

Jan. 20, Altria takes a $4 billion charge on its

2020 investment in Juul, bringing down the value of

its investment to $4.2 billion as of the end of

2019. (https://reut.rs/3bh7flv)

Feb. 21, The U.S. Securities and Exchange Commission

2020 probes Altria’s investment in Juul. (https://reut.rs/3ncaPQM)

March 12, Juul announces co-founder James Monsees to leave

2020 the e-cigarette maker, stepping down as adviser

and board member. (https://reut.rs/3yeQpg6)

April 1, The U.S. Federal Trade Commission files a

2020 complaint to force Altria to sell its investment

in e-cigarette maker Juul. (https://reut.rs/3HMuT5y)

July 30, Juul Labs submits a Premarket Tobacco Product

2020 Application to the FDA for its JUUL System, an

electronic nicotine delivery system. (https://reut.rs/3bmzwqG)

Aug. 18, The FDA files Juul’s PMTA for substantive

2020 review.

Sept. 3, Juul says it will cut global workforce

2020 significantly and consider pulling out of some

European and Asia-Pacific markets. (https://reut.rs/3nctiwq)

Oct. 29, Juul cut its valuation to about $10 billion from

2020 $12 billion at the end of last year as it faces

regulatory scrutiny. (https://reut.rs/3bfVNq9)

Oct. 30, Altria takes another hit of $2.6 billion to its

2020 investment in Juul. Its stake is now worth $1.6

billion. (https://reut.rs/3QJxy3W)

Sept. 9, The FDA says it needs more time to decide if

2021 e-cigarette maker Juul and other major

manufacturers can sell products in the United

States.

Feb. 15, A judge at the FTC dismisses a complaint that

2022 the agency filed aimed at requiring Altria to

sell a minority investment in Juul.

April 28, The FDA issues a proposal to ban menthol

2022 cigarettes and flavored cigars, a year after the

agency announced the plan.

June 22, Wall Street Journal reports the FDA is preparing

2022 to order Juul to take its e-cigarettes off the

U.S. market.

June 23, The FDA blocks Juul from selling its nicotine

2022 products in the United States, after a nearly

two-year-long review of data submitted by the

company.

June 24, Juul asks a federal appeals court to temporarily

2022 block the FDA’s order to stop selling its

e-cigarettes in the United States, according to

a filing with the U.S. Court of Appeals for the

D.C. Circuit.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)

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By Tom Balmforth

KYIV – It took Russia weeks of fierce fighting, an untold number of casualties, and relentless shelling before the exhausted Ukrainian defenders of Sievierodonetsk received orders to quit its smouldering wreckage.

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

With a reported 90% of the industrial city’s buildings damaged, most of its around 100,000 residents long gone, and with limited strategic value beyond a sprawling chemicals plant, it does not look like much of a prize.

But its capture, if and when officially confirmed, is likely to be hailed by Russia as evidence that its switch from its early and unsuccessful attempts at “lightning warfare” to a much slower grinding offensive which relies more on long-range shelling rather than close-quarters combat, is paying off.

Sievierodonetsk would be the biggest Ukrainian city Russia has captured since it took the port of Mariupol last month.

“Our military has changed tactics,” said one Russian government official.

“They know how to do it now. Yes it’s slow, but the strategy works and it means far less casualties,” said the official, who declined to be named because they were not authorised to speak on the subject.

Konrad Muzyka, a Poland-based military analyst, said the tactical change meant Moscow could commit fewer troops to offensives amid unconfirmed Western suggestions that Russia is experiencing manpower problems.

“Whatever they did, it is working for them,” said Muzyka.

“Another thing is we don’t know what’s going on with the Ukrainians; their manpower, losses and so on. From their point of view officially, everything is rosy. But it certainly is not this way.”

Moscow calls its invasion, which began on Feb. 24, a “special military operation” to liberate territory controlled by Ukrainian nationalists whom it says are hostile to Russian speakers and intent on taking Kyiv into NATO, a move Russia says it cannot accept.

The West and Ukraine accuse Russia of waging an unjustified war of aggression designed to halt Kyiv’s legitimate westwards drift and accuse the Kremlin of trying to recreate parts of the Russian Empire.

‘FIRST WORLD WAR APPROACH’

The fall of Sievierodonetsk would leave only one other major settlement in Ukraine’s Luhansk region outside the control of Russia and its proxies – the nearby twin city of Lysychansk, which lies across the Siverskyi Donets River and on high ground, making it harder to overwhelm.

Luhansk is one of two regions which make up the wider Donbas area whose capture by Russian forces on behalf of proxy separatists is framed by Moscow as one of its main aims.

Ukrainian analysts say Kyiv is forcing Russia to pay a high price for its creeping progress.

The length of time Sievierodonetsk’s defenders held out slowed Russian efforts elsewhere and sucked up Moscow’s finite resources, they say.

“Our forces had to withdraw and conduct a tactical retreat because there was essentially nothing left there to defend,” said Oleksander Musiyenko, a Kyiv-based military analyst.

“There was no city left there and, secondly, we could not allow them (Ukrainian forces) to be encircled. Everything could be a lot worse if Russia’s troops had been able to take Sievierodonetsk in the space of a day three weeks ago,” he said.

One Moscow-based military analyst who declined to be named, citing Russia’s wartime censorship laws, compared the fighting around Sievierodonetsk to World War One, saying Russian forces had advanced only around 100 metres a day for the last month.

Russia’s aims at this point in the conflict were less about gaining territory, he suggested, and more about inflicting maximum casualties.

“Russia’s strategy is a First World War approach of breaking your opponents. It could work – there is some evidence that Ukrainian morale is a problem,” said the analyst.

If, as seems likely, Russia continues with the same tactics, its offensive against Ukraine, which says it has just taken delivery of new long-range U.S. weapons designed to help it dual with Russian artillery, could be protracted.

Russia still faces major obstacles in its campaign to control Donbas as Ukraine still controls almost half of the Donetsk region, the other region it is targeting, including the heavily fortified cities of Sloviansk and Kramatorsk, both of which are larger than Sievierodonetsk.

Russia’s attention is now likely to turn swiftly to the city of Lysychansk across the river where Ukrainian forces have heavily fortified positions, the last major part of the Luhansk region it does not control.

“We have to understand that they (Russia) will probably try to attack the city from two or three sides,” said Musiyenko.

(Additional reporting by Reuters reporters; Editing by Alistair Bell)

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By Sharon Bernstein, Gabriella Borter and Brad Brooks

(Reuters) – For a Mississippi doctor, it was a glimpse of a fetal arm. For a police officer, it was the treatment of anti-abortion protesters outside a clinic. A Catholic leader was galvanized by the civil rights movement.

These and other experiences shaped prominent abortion opponents in their decades-long effort to see the U.S. Supreme Court reverse the landmark 1973 Roe v. Wade ruling that established the constitutional right to abortion.

That long-awaited moment came on Friday, when the conservative-led court overturned Roe. Four leaders of the anti-abortion movement reflect on how they reached this point.

DR. BEVERLY MCMILLAN

Most Fridays, Dr. Beverly McMillan, 79, can be found praying outside Mississippi’s only abortion clinic.

Her quiet opposition is a far cry from the start of her obstetrics and gynecology career. In 1975, McMillan became the first doctor to provide abortions at Mississippi’s first free-standing abortion clinic.

She resigned abruptly three years later, she said, “struck with the humanity” of a pregnancy she aborted. In an interview, she recalled how she could make out the tiny arm muscle of a 12-week-old fetus, reminding her of her young son.

The Jackson, Mississippi, resident has dedicated much of the four decades since trying to sway public opinion against abortion.

About 60% of Americans say abortion should be legal in all or most cases. Even so, McMillan and fellow anti-abortion advocates successfully pushed for legislation such as her state’s 15-week abortion ban, which spurred the legal battle that led to the Supreme Court ending federal protections for abortion.

McMillan, who serves as vice president on the Pro-Life Mississippi board, said the organization was dedicated to getting practical support for women struggling in pregnancy.

“While this was a necessary step in continuing to build a culture of life in America, there is still a lot of work to be done,” she said after the ruling.

She hopes one day there will be a “personhood amendment” to the U.S. Constitution that says what to her has long been obvious: “Human life begins at conception and has the same inalienable rights that born people have.”

TONY PERKINS

Tony Perkins, president of the Family Research Council, a Christian policy and lobbying group in Washington, says he felt called to the anti-abortion movement on a summer day in 1992.

He was off duty from his job as a reserve police officer in Baton Rouge, Louisiana, and had joined members of his church to check out an Operation Rescue protest at a local abortion clinic. He was shocked by what he called police abuse of the hundreds of anti-abortion protesters gathered at the clinic.

He spoke out and was fired from the force, he said.

“I just saw this for the first time in a much different light,” said Perkins, an ordained Southern Baptist minister. “This really is a colossal battle between … good and evil.”

Upon entering politics and serving as a Louisiana state representative from 1996 to 2004, he pushed through legislation aimed at restricting abortion, including the first version of a state law regulating women’s health clinics. The U.S. Supreme Court struck down the law in 2020.

Perkins, 59, said abortion became the litmus test for evangelical Christians as their political force grew in the last three decades: If a politician opposed abortion, they likely agreed with evangelical voters’ other policy stances.

He credits the Roman Catholic Church with leading the way in the abortion fight but said evangelicals injected new energy into the movement from the 1980s onward by getting anti-abortion politicians elected to statehouses.

Those socially conservative lawmakers passed a raft of state-level restrictions on abortion.

Soon after the ruling on Friday, Perkins tweeted he was “grateful that the tyranny of Roe has ended.”

THERESA BRENNAN

In February 2020, Theresa Brennan left her job as a corporate lawyer to take the helm of the anti-abortion group her grandparents helped found in California in 1967.

The Right to Life League says it was the country’s first organization dedicated to opposing abortion. Brennan remembers how as a child she longed to join her grandparents and parents at the group’s annual fundraising gala.

Later as a young woman, she disagreed with their stance, feeling it wasn’t her place to tell others what to do with their bodies. It wasn’t until she had her own children that Brennan says she fully embraced her family’s anti-abortion beliefs and, later, their activism.

“I think being pregnant and realizing what that was really made me think twice,” said Brennan, 52.

Since becoming the group’s president, Brennan has put her legal background to work providing advice to the network of crisis pregnancy centers, anti-abortion medical clinics and maternity homes the organization represents.

As some of the pregnancy centers move toward becoming clinics that provide some medical guidance and services, Brennan helps them comply with state laws regulating such activity.

Her organization also lobbies against abortion rights bills and provides donations of diapers and other supplies to pregnancy centers and maternity homes.

The end of Roe v. Wade makes it all the more important to direct funds and other resources to help women and children, she said.

“It would transform the entire movement, I’m certain of it, if we could just get the resources,” she said. “Because if women really felt supported and had the resources, they would choose to have their baby.”

ARCHBISHOP JOSEPH NAUMANN

Under Archbishop Joseph Naumann’s direction, the Archdiocese of Kansas City has put $500,000 behind an August ballot measure asking Kansas voters to amend the state constitution to say it does not include a right to an abortion.

With Roe overturned, Naumann called on “all Catholics and all people of good will” to support the amendment.

“I am grateful the Supreme Court has returned the right to the people to determine public policy that protects the lives of unborn children as well as their mothers from the tragedy of abortion,” he said in a statement.

Naumann, 73, was in seminary in 1973 when the Roe decision legalized abortion in the United States. Like other devout Catholics, he opposed abortion, but at the time he was more focused on the civil rights movement.

He said he began to view abortion through the lens of civil rights in 1984, when he was asked to lead the church’s anti-abortion efforts in St. Louis. He felt the right to life was fundamental to the unborn, who he believed were fully human from the moment of conception.

“Of course it is a right of a woman to decide when to bear a child, but once that child is conceived, there are two human beings who both have rights at that point,” he said.

The archbishop said the St. Louis role taught him numerous ways to fight abortion, at church and beyond, and he took that knowledge with him as he rose through its hierarchy. He served seven years on the U.S. bishops’ Committee on Pro-Life Activities including as chairman.

He has joined bishops who have said President Joe Biden and other Catholic leaders who support abortion rights should not take Communion.

Naumann said he has deep sympathy for women facing unplanned or difficult pregnancies. He was raised by a single mother, he said, after his father was murdered at work while she was pregnant with Naumann.

(Reporting by Sharon Bernstein, Gabriella Borter and Brad Brooks; Editing by Colleen Jenkins and Cynthia Osterman)

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By Jonathan Stempel

NEW YORK – A U.S. judge on Friday refused to dismiss a $6.4 billion lawsuit accusing Bristol Myers Squibb Co of delaying its Breyanzi cancer drug to avoid payments to shareholders of the former Celgene Corp, which the drugmaker bought for $80.3 billion in 2019.

U.S. District Judge Jesse Furman in Manhattan rejected Bristol Myers’ claim that it was never properly notified about its alleged default on its merger obligations by UMB Bank NA, the trustee representing the former Celgene shareholders.

Bristol Myers and its lawyers did not immediately respond to requests for comment.

The case arose from the company’s agreement to pay Celgene shareholders holding “contingent value rights” an extra $9 per share in cash if it won U.S. approval by specified deadlines for Breyanzi and two other Celgene drugs.

While two of the drugs were approved by the deadlines, UMB said the New York-based company failed to use the required “diligent efforts” to obtain approval for Breyanzi by Dec. 31, 2020, and reaped a “windfall” by avoiding the extra payout.

The trustee said Bristol Myers had delayed the submission of critical information to the U.S. Food and Drug Administration, and failed to prepare its manufacturing plants for inspections.

Bristol said the lawsuit must be dismissed because its agreement to pay the Celgene shareholders had expired.

But the judge said the agreement explicitly provided that UMB could sue, and that Bristol Myers was not excused from material breaches that predated the agreement’s expiration.

“(Bristol Myers) cites no authority to support the proposition that a breach of a contract cannot, as a matter of law, ‘continue’ after termination of the contract,” Furman wrote.

David Elsberg, a lawyer for UMB, said the trustee was “delighted” and looked forward to proving its case.

Bristol Myers won FDA approval for Breyanzi on Feb. 5, 2021, to treat non-Hodgkin’s lymphoma. Its chemical name is lisocabtagene maraleucel.

The case is UMB Bank NA v Bristol-Myers Squibb Co et al, U.S. District Court, Southern District of New York, No. 21-04897.

(Reporting by Jonathan Stempel in New York; Editing by Bill Berkrot)

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(Reuters) – A year-and-a-half after a “meme stock” rally roiled Wall Street, the U.S. Securities and Exchange Commission is considering broad changes to curb the frenetic trading of stocks based on social media activity.

The proposed overhaul would be the biggest change to Wall Street’s rules since 2005 and would affect nearly every corner of the market, from commission-free brokerages to market makers and exchanges.

The U.S. House Committee on Financial Services on Friday called for the SEC, along with other regulators, to do more to protect the markets from similar events.

The impetus for change came from the so-called “Reddit rally” of January 2021, in which GameStop Corp and other “meme stocks” popular on social media surged to extreme highs on buying from investors trading heavily through Robinhood and other commission-free retail brokerages.

The intense volatility led to big losses for hedge funds that had bet against the meme stocks.

It also led Robinhood and others to restrict trading in the affected securities, in turn curbing the rally, infuriating retail investors and rattling market confidence.

Here are some of the issues the SEC is scrutinizing:

PAYMENT FOR ORDER FLOW

Gary Gensler, the SEC chief, has criticized payment for order flow (PFOF), a practice in which some commission-free brokers generate revenue by sending customer orders to wholesale market makers in return for payments, rather than to exchanges.

He has said a ban on the practice is not off the table as it raises potential conflicts of interest, giving brokers incentives to encourage customers to trade more frequently to maximize the payments.

The meme stock trading frenzy exposed concerns about the ways in which PFOF increases complexity and potential fragility in the securities markets, the House Financial Services Committee report said.

Proponents say PFOF is a major reason brokerages were able to stop charging trading commissions, and retail investors often get a lower, better price than they would on the main exchange.

DIGITAL TRADING PROMPTS

Gensler has criticized the “gamification of trading” in which commission-free brokerages encourage excessive trading using lights, noises, notifications and other gimmicks to generate more PFOF.

He has also highlighted the use of artificial intelligence, predictive data analytics and machine learning to push products.

In August https://www.reuters.com/legal/transactional/us-markets-regulator-wants-public-feedback-firms-digital-engagement-practices-2021-08-27 2021, the SEC issued a consultation on potential new rules to limit gamification and other “digital engagement prompts.” The agency is expected to proceed with a rule change https://www.reuters.com/business/finance/will-games-stop-sec-mulls-crackdown-trading-apps-2022-01-26 in the coming months.

The U.S. House Financial Services Committee on Friday urged Congress to adopt legislation mandating the SEC study how its rules need to change to address new technological developments, such as digital engagement practices and social media-driven market activity.

CONCENTRATION, PRICING

The GameStop saga highlighted the small number of market-makers — brokers that execute trades and publicly post buy and sell quotes for others to trade — that dominate the retail market, which may pose competition issues, Gensler has said.

The House Financial Services Committee said that at the time of the Reddit rally, Robinhood was not connected to any exchanges, and of the six market makers Robinhood routed all its customers’ orders to, nearly all were unable to execute trades in certain meme stocks due to the market stress.

“Had all these market makers been unable to execute trades, Robinhood would have been unable to execute trades on behalf of its customers,” the report said.

Nearly all retail trades are executed away from exchanges.

That is partly due to rules that allow market makers to offer fractional sub-penny price improvement on bids and offers, whereas exchanges have to quote in pennies.

Gensler has said that has created an uneven playing field in the competition for retail orders.

Gensler has asked SEC staff to recommend potential changes to harmonize the ability to display sub-penny quotes on and off exchange.

(Reporting by John McCrank in New York and Katanga Johnson in Washington, Editing by Deepa Babington)

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By Lawrence Hurley

WASHINGTON -Seventeen months after leaving office, former President Donald Trump delivered on a campaign promise on Friday when the conservative U.S. Supreme Court majority he cemented overturned the 1973 Roe v. Wade ruling that legalized abortion nationwide.

The ruling represented a victory long in the making for a well-organized and generously funded conservative movement to push America’s courts rightward, aided by legal activists and deft political maneuvering by top Senate Republican Mitch McConnell.

Trump during his four years as president appointed three justices – Neil Gorsuch in 2017, Brett Kavanaugh in 2018 and Amy Coney Barrett in 2020 – to give a court that had been ideologically deadlocked with four liberals and four conservatives when he took office a solid 6-3 conservative majority by the time he left.

All three appointees were in the majority in the decision to overturn Roe.

The month before Trump’s election in November 2016, the Republican businessman-turned-politician promised during a debate with his Democratic opponent Hillary Clinton to appoint justices who would overturn the Roe decision.

“Well, if we put another two or perhaps three justices on, that … will happen automatically in my opinion because I am putting pro-life justices on the court,” Trump said at the time.

Trump’s pitch appealed to conservative Christian voters, who became a key constituency during his presidency.

“Today’s decision, which is the biggest WIN for LIFE in a generation, along with other decisions that have been announced recently, were only made possible because I delivered everything as promised, including nominating and getting three highly respected and strong Constitutionalists confirmed to the United States Supreme Court,” Trump said in a statement on Friday. “It was my great honor to do so!”

Having lost in 2020, Trump continues to flirt publicly with the idea of running again for president in 2024.

Critics have sought to paint the Roe decision as poorly reasoned liberal judicial activism. Driven by vocal support from an anti-abortion movement spearheaded by conservative Christians, they pursued the goal of appointing judges hostile to abortion rights.

“The overturning of this case after the five decades of morass that Roe created is a major victory for constitutionalism and the rule of law,” said Carrie Severino, president of the Judicial Crisis Network, a conservative legal group that has helped promote Republican judicial appointments.

“Roe v. Wade was one of the greatest acts of judicial arrogance in Supreme Court history – and one of the catalysts for the birth and growth of the conservative legal movement,” Severino added.

Democratic President Joe Biden on Friday acknowledged Trump’s critical role in overturning Roe.

“Three justices named by one president, Donald Trump, were the core of today’s decision to upend the scales of justice and eliminate a fundamental right for women in this country,” Biden said.

‘BREAK-GLASS MOMENT’

For liberal legal advocates, the ruling represented a “break-glass moment,” said Brian Fallon, executive director of legal advocacy group Demand Justice.

“Now the question is, will our side regroup and productively channel the public’s outrage to confront a court that has been captured?” Fallon asked.

The Supreme Court for decades had a majority of Republican appointees but until now lacked the five votes needed to overturn Roe. The last time it had been so close was in 1992 in a case called Planned Parenthood of Southeastern Pennsylvania v. Casey.

Conservative activists were disappointed by the 5-4 ruling that reaffirmed the central holding of Roe recognizing a woman’s right to obtain an abortion under the U.S. Constitution. Three Republican appointees – Justices Sandra Day O’Connor, Anthony Kennedy and David Souter – worked behind the scenes on a compromise that carried the day.

It was later revealed that Kennedy initially had supported overturning Roe but changed his mind. Trump appointed Kavanaugh to replace Kennedy, who retired in 2018.

Trump and McConnell – who have an icy relationship – were critical in engineering the demise of Roe. McConnell, as Senate majority leader, in 2016 blocked Democratic President Barack Obama from appointing a justice to the court in the last year of his term after conservative Justice Antonin Scalia died. Obama’s nominee would have given the court a 5-4 liberal majority.

McConnell’s action meant Trump was able to replace Scalia with fellow conservative Gorsuch. McConnell shepherded Kavanaugh to Senate confirmation in 2018 after a contentious confirmation process in which the nominee denied sexual misconduct. McConnell then moved rapidly with Senate confirmation of Barrett a week before the 2020 election in which Trump was defeated.

Barrett, a devout Roman Catholic and former legal scholar, previously had signaled support for overturning Roe.

RELIABLE CONSERVATIVES

Since the Casey ruling, Republican presidents have chosen a stream of reliably conservative nominees nurtured and promoted by connections to the influential Federalist Society. A key figure in that effort has been Leonard Leo, who has had a lengthy career at the conservative legal group and has advised Republican presidents in picking judicial nominees.

Leo helped compile a list of potential Supreme Court nominees that Trump touted as a candidate before the 2016 election in a bid to attract conservative voters. Leo did not respond to messages seeking comment for this story.

Conservative advocacy groups including the Judicial Confirmation Network have helped promote and defend conservative judicial nominees. Anti-abortion organizations also have staunchly backed Republican judicial nominees.

“This victory represents proof of concept for the pro-life movement’s involvement in campaigns and elections and will spur more pro-life political activism in the years ahead,” said Mallory Carroll, a spokeswoman for one of those groups, Susan B. Anthony Pro-Life America.

(Reporting by Lawrence Hurley; Additional reporting by Andrew Chung; Editing by Scott Malone, Will Dunham and Howard Goller)

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By Katanga Johnson and John McCrank

WASHINGTON -Wall Street regulators must do more to address market risks highlighted by the “meme-stock” trading frenzy of January 2021 that pitted individual GameStop Corp investors against powerful hedge funds, a congressional report said Friday.

Meme stock trading — where companies see their value fueled more by social media attention than fundamentals continues — with cosmetics maker Revlon Inc the latest example.

The report by the U.S. House of Representatives’ Financial Services Committee singled out Robinhood’s trading app for “troubling business practices” and urged regulators to step up scrutiny of retail brokers.

Robinhood said there was “nothing new” in the report, that it took “the appropriate and responsible steps necessary to protect and support our customers” and has made significant improvements since then.

The report, which raises pressure on regulators to do more, also called for new brokerage liquidity rules and for regulators to hasten a crackdown on the “gameification” of trading — game-like features that prompt users to trade more.

“The meme stock saga has raised questions about how retail trading market infrastructure currently operates and whether it is appropriately designed and regulated,” the report said.

The report, which was prepared following hearings in February 2021, analyzed how quickly money was made and lost when GameStop shares surged more than 1,600% in January last year before collapsing.

During the GameStop episode, retail investors banded together in online forums to push up the stock’s price and force hedge funds that shorted or bet against it, to unwind their trades.

The panel did not cast blame but instead proposed tightening regulatory gaps. The report called for the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), Wall Street’s self-funded watchdog, to craft new rules to address what it called “a culture that prioritizes growth above stability.”

Specifically, the panel recommends the SEC introduce a liquidity rule for clearing brokers, and for FINRA to establish a framework governing liquidity planning for clearing brokers, rather than the current voluntary guidance.

Both FINRA and the SEC, which have stepped up scrutiny of “gameification,” should also bolster regulations curbing the extension of margin trading to customers, the report said.

FINRA, in response, said in a statement that it had taken steps to protect investors and implemented a new rule that improves its ability to monitor the liquidity risk of members with the largest exposures.

It said it also seeking comment on member firm practices involving complex products and options, as well as short sales.

The SEC declined to comment.

SEC Chair Gary Gensler, whose agency also last year issued a report https://www.sec.gov/page/sec-staff-release-gamestop-report#:~:text=The%20Securities%20and%20Exchange%20Commission,several%20questions%20about%20market%20structure on the GameStop saga, has said the agency would address gameification, PFOF and short selling disclosures.

(Reporting by Katanga Johnson and John McCrank; additional reporting by Michelle Price; Editing by Megan Davies, Jonathan Oatis and Deepa Babington)

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By Karolos Grohmann

(Reuters) – The International Olympic Committee (IOC) has defended its position that it is up to each international sports body to set their own rules for transgender athletes’ inclusion, despite criticism from tennis great Martina Navratilova.

Navratilova, a gay rights trailblazer, had slammed the IOC earlier this week for what she said was a lack of leadership on the issue of the inclusion of transgender athletes in sport.

The issue was brought into focus by last weekend’s decision by swimming’s governing body FINA to ban athletes who have been through any part of male puberty from elite women’s competition.

“This is a very divisive, a very difficult situation, a very difficult topic where we have to try to balance fairness with inclusivity,” IOC spokesperson Mark Adams told a virtual news conference on Friday.

“But what we are clear about is that each sport should and does know best how to look at not only sport but also at its disciplines, where there is a reasonable advantage.”

The IOC last year revised its guidelines on inclusion with a new framework advising athletes should not be excluded on the grounds of “perceived” unfair advantage, but leaving it up to sports federations to decide the rules.

Adams said finalising those rules would take some time.

“But we cannot come forward with one rule. One short rule that fits all. It has to be by sport and even by discipline,” he said. “So we accept there will be criticism, that’s inevitable I’m afraid. But we will do our best to balance fairness and inclusivity.”

Navratilova had said striking the balance between inclusion and fairness down to individual events was extremely complex and that the IOC had offloaded responsibility for the issue onto sometimes poorly funded federations.

“The IOC has completely punted,” Navratilva, who has won a total of 59 Grand Slam titles, told The Australian newspaper.

“That ‘Oh, we will leave it up to the individual federations’. How can these individual federations within their country make their different rules?” she said.

“They have to do the research and the implementation … and it costs money to then figure it out, and it’s impossible.”

While FINA engaged leading scientists on the task force which drew up its rules, advocates for transgender inclusion argue that not enough studies have yet been done on the impact of transition on physical performance.

LGBT rights group Athlete Ally said FINA’s new eligibility criteria was “discriminatory” and “harmful”, while transgender cyclist Veronica Ivy described the policy as “unscientific”.

(Reporting by Karolos Grohmann; Editing by Ken Ferris)

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St. Thomas, VI – United States Attorney Delia L. Smith announced today that Natasha Seetaram, 39, of St. Thomas, was sentenced by Chief District Judge Robert Molloy to 12 months and one day of incarceration, followed by four years of supervised release for bank fraud.

According to court records, Seetaram formerly worked at a St. Thomas branch of Banco Popular where she used her position as a bank employee to issue debit cards in the names of two unknowing bank customers. After issuing the ATM debit cards, Seetaram used the cards for her own personal benefit by making fraudulent ATM withdrawals and purchases in the amount of approximately $43,000.00 in St. Thomas and Jacksonville, FL. The two victims were subsequently reimbursed by the bank and Seetaram was ordered by the court to pay restitution to the bank in the amount of $43,418.76.

The case was investigated by the United States Secret Service and prosecuted by the United States Attorney’s Office for the District of the Virgin Islands.

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St. Thomas, VI – United States Attorney Delia L. Smith announced today that Christopher Dunn, 49, of Queens, New York, was sentenced to four years of probation by Chief District Court Judge Robert Molloy on his conviction of possession with intent to distribute 1.37 kilograms of marijuana. Judge Molloy also ordered Dunn to pay a $2,000.00 fine, and a $100.00 special assessment.

According to the evidence presented at trial, on February 11, 2021, Dunn arrived at the Cyril E. King airport a flight from JFK New York. While conducting flight inspections, Customs and Border Protection (CBP) officers discovered a green leafy substance in Dunn’s carry-on luggage. CBP officers then escorted Dunn to secondary inspection where they conducted a thorough search of Dunn’s carry-on bags and discovered three vacuum-sealed bags of marijuana weighing approximately 1.37 kilograms.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Homeland Security Investigations (HSI) and CBP investigated, and Assistant United States Attorney Natasha Baker prosecuted this case.

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MOBILE, AL – A Foley man was sentenced to 61 months in prison for conspiring to distribute methamphetamine and marijuana and possession of firearms in furtherance of drug trafficking.

According to court documents, Jimmie Lee Avera, 35, was arrested by Foley police on May 6, 2021, on an outstanding warrant for possessing drug paraphernalia. Police subsequently executed a search warrant at a house on Lake South Drive that Avera shared with his codefendant, Caitlan Reid Bentley. During that search, police seized more than six pounds of marijuana, three guns, numerous rounds of assorted ammunition, digital scales and plastic baggies, and $41,000 in banded-up cash.

Text messages and other electronic data recovered from Avera’s cell phone showed that from at least August 2019 through May 6, 2021, he had agreed with Bentley and others to distribute methamphetamine and marijuana from the house on Lake South Drive. Avera admitted to police that he had previously served time in Florida state prison for a robbery conviction involving what he described as a “drug deal gone wrong.” Avera further admitted that he knew he was not supposed to possess the guns found in his house because he is a convicted felon.

Senior United States District Judge William H. Steele ordered Avera to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge Steele ordered Avera to pay $200 in special assessments and ordered that Avera’s guns and ammunition be forfeited to the United States.

In November 2021, Bentley pleaded guilty to conspiring to distribute marijuana and methamphetamine. Judge Steele sentenced her to time served (one day in custody), with a three-year term of supervised release to follow.

U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Federal Bureau of Investigation and the Foley Police Department investigated the case.

Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
 

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NEW BERN, N.C. – A federal jury convicted a Red Springs man yesterday on multiple charges of cocaine and crack distribution, possession of firearms in furtherance of drug trafficking crimes, and being a felon in possession of firearms.

According to court records and evidence presented at trial, Jamie Christopher Henderson, 47, was under investigation by the Robeson County Sheriff’s Office after they received a report of a shooting at the Thunder Valley Racetrack in Robeson County. Henderson had shot two people at the racetrack.   Henderson then traveled to a nearby gas station and asked for a ride from a local citizen.  The citizen obliged but refused to turn down a dirt road. Henderson pulled out a handgun, shot the driver’s radio, and fled.

Detectives determined where Henderson was living at the time and obtained a search warrant for the house.  As detectives arrived to execute the warrant, three detectives observed Henderson in the front yard as he threw a black handgun underneath a parked car.  Baggies of cocaine and crack were also recovered next to the handgun.  Detectives continued to execute the search warrant and recovered two more handguns (both stolen) in the house, an AR-15 style rifle, and more crack and cocaine along with drug distribution materials.  All of the weapons seized were loaded.

Additional evidence revealed videos of Henderson at the house in the days leading up to execution of the search warrant. In these videos, Henderson conducted drug deals at the house on seven different occasions, most often while armed with a handgun.  The videos also showed Henderson possessing multiple handguns, sometimes two at one time, and pointing a loaded AR-15 style rifle at vehicles in the roadway that were approaching the house at night.  

In 2005, Henderson was convicted of being a felon in possession of a firearm in the Eastern District of North Carolina.

Henderson faces a mandatory sentence of 10 years up to life imprisonment. If he is determined to be an Armed Career Criminal, then he faces a mandatory sentence of 25 years up to life imprisonment.

Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Robeson County Sherriff’s Office are investigating the case and Special Assistant U.S. Attorney Tyler Lemons and Assistant U.S. Attorney Katherine Schuh are prosecuting the case.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:20-cr-00088-FL-1.

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BOSTON – A Springfield woman was sentenced yesterday for her involvement in a scheme to fraudulently obtain COVID-19-related unemployment assistance.

Audri Ford-Victory, 61, was sentenced by U.S. District Court Judge Mark G. Mastroianni to three years of probation, with six months to be served in home confinement. On Jan. 31, 2022, Ford-Victory pleaded guilty to one count of wire fraud conspiracy.

In March 2020, in response to the global COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which in Massachusetts is administered by the Department of Unemployment Assistance (DUA). This program provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits.

Ford-Victory submitted 25 PUA claims in Massachusetts on behalf of individuals living outside of Massachusetts. As a result, Massachusetts DUA issued $215,246 in payments to individuals not entitled to PUA benefits. Ford-Victory received kickback payments in exchange for submitting the fraudulent claims.

United States Attorney Rachael S. Rollins; Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, New York Regional Office made the announcement. The Massachusetts Department of Unemployment Assistance provided assistance in the investigation. Assistant U.S. Attorneys Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit and Neil L. Desroches of Rollins’ Springfield Branch Office prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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A man who illegally possessed a stolen firearm and ammunition was sentenced on June 23, 2022, in federal court in Sioux City.

Leonard Weimer, 46, from Storm Lake, Iowa, pled guilty on January 6, 2022, to illegal possession of a firearm and ammunition.  Weimer was previously convicted of multiple felony offenses including Terrorism, where Weimer shot at two police vehicles occupied by deputies.  Weimer’s prior felony convictions prohibited him from possessing firearms or ammunition. 

At the sentencing hearing, evidence showed that defendant possessed a total of seven guns, four of which were stolen during a felony burglary.  On April 2, 2021, Storm Lake law enforcement stopped a vehicle driven by Leonard Weimer for a traffic violation.  Law enforcement ultimately found a small amount of methamphetamine in Weimer’s pocket, ammunition, and a .22 rifle that was stolen from Weimer’s ex-wife.  Additionally, on May 19, 2021, as part of a theft investigation, law enforcement located a stolen 12-gauge shotgun in a separate vehicle owned by Weimer.  Law enforcement then searched the residence belonging to Weimer’s ex-girlfriend, where Weimer would stay at times.  There, a .380 handgun was recovered that was previously given by Weimer to his then nine-year-old son.  Weimer’s ex-girlfriend later located four guns and over 2,000 rounds of ammunition hidden behind a false wall in a room where Weimer kept his belongings.  Those firearms and ammunition had been reported stolen from the home of another person associated with Weimer.  

Sentencing was held before United States District Court Chief Judge Leonard T. Strand.  Weimer was sentenced to 8 years’ imprisonment and must serve a term of 3 years of supervised release following imprisonment.  There is no parole in the federal system.  Weimer remains in custody of the United States Marshal until he can be transported to a federal prison.

This case was brought as part of Project Safe Neighborhoods (PSN).  PSN is 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.

The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Buena Vista County Sheriff’s Office, Storm Lake Police Department, Sac County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl

The case file number is 21-4058.  Follow us on Twitter @USAO_NDIA.

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Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Aaron Arthur Fields, a/k/a “Handz”, age 33, of Baltimore, Maryland, to 10 years in federal prison followed by 3 years of supervised release for distribution of controlled substances, conspiracy to distribute controlled substances, and possession with intent to distribute 28 grams or more of a mixture containing a detectable amount of crack cocaine and cocaine.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Harford County Sheriff Jeffrey R. Gahler; Harford County Drug Task Force, a High Intensity Drug Trafficking Areas (HIDTA) program, comprised of members of the Harford County Sheriff’s Office, the Aberdeen Police Department, the Bel Air Police Department, and the Havre de Grace Police Department.

According to his guilty plea, on November 4, 2018, Harford County Sheriff’s deputies responded to a Joppa, Maryland residence for a fatal overdose.  Emergency medical services personnel and deputies arrived and located two victims (Victim 1 and Victim 2) on the bedroom floor.  Victim 1 was found deceased while Victim 2 was revived and transported to the hospital for treatment.

In another bedroom, officers located a line of white powder on a book with a piece of a red straw.  The white powder was tested and determined to be a fentanyl and cocaine mixture.  The medical examiner concluded that Victim 1’s death was due to acute intoxication by fentanyl and cocaine.

As part of the investigation into Victim 1’s death, Victim 1’s cellphone was seized and searched.  A search of the cellphone contents revealed that Victim 1 contacted an individual (Individual 1) the night that Victim 1 and Victim 2 overdosed.  The communications with Individual 1 and Victim 1 indicated that Individual 1 arranged for Victim 1 to meet with Fields to purchase drugs on the night of November 4, 2018.  Fields admits that he distributed controlled substances to Victim 1 and that the death of Victim 1 resulted.

Additionally, during a traffic stop on April 10, 2019, investigators recovered three grams of heroin from an individual (Individual 2) investigators believed to have purchased drugs from Fields.  Individual 2 admitted that they purchased drugs from Fields and confirmed Field’s identity after officers showed Individual 2 a picture of Fields.

As stated in his plea agreement, law enforcement executed a search warrant at Field’s Baltimore residence where investigators recovered 126 grams of cocaine.  Investigators also recovered 28 grams of crack cocaine, 48 grams of cocaine, and $1,911 in cash from Fields’ person during his arrest in Rosedale, Maryland.  Fields admits that he possessed the crack cocaine and cocaine with intent to distribute it.  Fields also admits that he conspired with Individual 1 and others to distribute cocaine, crack cocaine, heroin, and fentanyl.

United States Attorney Erek L. Barron commended the Harford County Sheriff’s Office and the Harford County Task Force for their work in the investigation.  Mr. Barron also thanked the Baltimore County Police Department for their assistance.  Mr. Barron thanked Assistant U.S. Attorney Kim Y. Oldham and who prosecuted the case, and Paralegal Kristy Penny for her assistance.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach and visit the “Save a Life – Opioid Abuse” section.

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Miami, Florida – A Palm Beach resident who altered and cashed personal checks, which victims reported as stolen from U.S. Postal Service (“USPS”) drop boxes, was sentenced to 30 months in federal prison on bank fraud and aggravated identity theft charges.

On December 30, 2021, Danny Seruto Perez pled guilty to the fraud and identity theft offenses.  According to court documents, starting in or around July 2018, the United States Postal Inspection Service (“USPIS”) was alerted to a string of mail thefts from mail collection boxes after receiving complaints from multiple victims who stated that checks they had mailed out (including to pay their bills) never reached their intended recipients.  

Through its investigation, USPIS learned that many of the victims’ stolen checks had been visibly altered (or “washed”) and re-written with Seruto Perez’s name as the payment recipient, and for larger payments than the original amounts written by the victims.  Further investigation revealed that Seruto Perez fraudulently deposited these “washed” and stolen checks into his own bank account and into accounts held by his friends.  Seruto Perez’s bank fraud scheme involved stolen checks from approximately 15 victims, totaling approximately $36,700 in stolen funds—all of which the court has now ordered him to pay back as restitution to the victims.

Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Joseph W. Cronin, U.S. Postal Inspection Service (USPIS), Inspector in Charge, Miami Division, made the announcement. 

United States Postal Inspection Service, Orlando Domicile, investigated the case, in collaboration with the Brevard County Sheriff’s Office, the Vero Beach Police Department and the Indian River County Sheriff’s Office.  The case was prosecuted by Assistant United States Attorneys Lacee Monk and Eduardo Gardea Jr.  Assistant United States Attorney Emily Stone is handling forfeiture. 

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60181.

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            WASHINGTON – Michael Smallwood, 37, of Washington, D.C., has been found guilty of firearms and related charges after police discovered a ghost gun and ammunition in an apartment where he was staying in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).

            Smallwood was found guilty by a jury on June 22, 2022, of unlawful possession of a firearm and related charges following a trial in the Superior Court of the District of Columbia. The Honorable Jason Park scheduled sentencing for Sept. 9, 2022.

            According to the government’s evidence, in the early morning hours of Dec. 21, 2019, police responded to a domestic violence call at an apartment in Southeast Washington where Smallwood was residing. There, the police were notified that Smallwood kept a firearm in his dresser. In addition to the firearm, police discovered ammunition and two magazines, including an extended magazine with the capacity to hold 29 rounds of ammunition. The firearm was a ghost gun with an obliterated serial number. Smallwood was prohibited from possessing a firearm because he had been convicted in 2009 in the District of Columbia of a firearm-related felony offense. Three young children also resided in the apartment.

            Smallwood was arrested that day.

            In announcing the verdict, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Kristian Hinson; Paralegal Specialist Tiffany Jones; Victim/Witness Advocates Tracey Hawkins and Maria Sanchez-Garcia; former Victim/Witness Advocate Elsa Maltese; Supervisory Witness Security Specialist Lesley Slade; Victim/Witness Service Coordinators LaJune Thames and Maenylie Watson, and Forensic Child Interview Specialists Tracy Owusu and Karen Giannakoulias. 

            Finally, they commended the work of Assistant U.S. Attorneys Lauren Galloway and Ryan Sellinger, who investigated and prosecuted the case.

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LEXINGTON, Ky. – A Stickney, Illinois, man was convicted on Thursday, by a federal jury sitting in Lexington, of one count of money laundering.

After 3.5 hours of deliberations, following a two-day trial, the jury convicted 37-year old Rudy Guerrero of the charge.           

The indictment alleged a promotional money laundering scheme, amongst eight defendants, and included criminal activities in Lexington and Chicago, during the conspiracy.  According to testimony at trial, Guerrero delivered bulk cash drug proceeds on three separate occasions within a week.  The proceeds totaled approximately $450,000 and were intended to further the drug trafficking activities of the larger criminal organization.  The money laundering scheme involved the conversion of bulk cash to cryptocurrency, for transfer to other conspirators based in Mexico.

Guerrero was indicted in December 2021.         

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the conviction.

The investigation was conducted by the DEA.  The United States was represented in the case by Assistant U.S. Attorney Todd Bradbury.   

Guerrero will appear for sentencing on October 3, 2022.  He faces up to up to 20 years of incarceration and a fine of up to $500,000.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

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BOSTON – The former owner of a massage parlor was sentenced yesterday in connection with filing for and obtaining fraudulent pandemic-related loans for her illicit business where workers engaged in commercial sex acts with customers.

Chynna Savath, 57, of Woonsocket, R.I., was sentenced by U.S. District Court Judge Richard G. Stearns to three years of probation. Savath was also ordered to pay restitution in the amount of $34,391. On Jan. 20, 2022, Savath pleaded guilty to two counts of wire fraud.

Savath is the former owner of Thai Body Work, a massage parlor in Franklin, Mass. In June 2020, Savath submitted fraudulent applications to the Small Business Administration for COVID-19 relief through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) program under the Coronavirus Aid, Relief and Economic Security Act. In the applications, Savath falsely certified that the applicant was not engaged in any illegal activity, despite knowing that her employees at Thai Body Work engaged in prostitution with customers and that she collected a portion of fees paid by each customer. In total, Savath obtained $34,391 in fraudulent payments from the EIDL and PPP loan programs.   

United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Acting Commissioner Gregory Long made the announcement. Special assistance was provided by the Cambridge, Boston, Franklin and Lexington Police Departments. Assistant U.S. Attorneys Elysa Wan of Rollins’ Criminal Division and Suffolk County Assistant District Attorneys Alyssa Tochka and Luke Goldworm, who were appointed as Special Assistant U.S. Attorneys prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:

Appearing in Billings before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on June 23 was:

Trevor John Glumbik, 34, of Billings, on charges of possession with intent to distribute fentanyl and prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Glumbik faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release. Glumbik was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Montana Division of Criminal Investigation investigated the crime.  PACER case reference. 22-68.

Appearing before U.S. Magistrate Judge Timothy J. Cavan on June 22 was:

Raymond Lee Toulouse, 37, of Great Falls, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Tuolouse faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Toulouse was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.  PACER case reference. 22-71.

David Lawrence Bernach, 59, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Bernach faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Bernach was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-66.

Michael Romie Cervantes, 48, of Fresno, California, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Cervantes faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Cervantes was detained pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 22-02.

Appearing on June 21 was:

Mark Jay Albrecht, 65, of Gillette, Wyoming, on charges of false statement. If convicted of the most serious crime, Albrecht faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. Albrecht was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-41.

Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on June 21 was:

Jorge Allejandro Orellana-Banegas, 23, and Jose Eugenio Banegas-Torres, 38, both of Honduras, on charges of conspiracy to transport illegal aliens and transportation of illegal aliens. If convicted of the most serious crime, the defendants face a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. The defendants were detained pending further proceedings. The U.S. Border Patrol investigated the case. PACER case reference. 22-47.

The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

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FRESNO, Calif. — Sabino Ramos, 46, of Bakersfield, was sentenced today to seven years and eight months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on July 8, 2021, as Ramos was driving in Bakersfield, law enforcement officers attempted to stop him in order to serve an arrest warrant for probation violations. Ramos led officers on a high-speed chase, reaching speeds up to 90 mph, before losing control of his vehicle while exiting Highway 99 at Ming Avenue. Ramos then ran from pursuing officers but was eventually subdued. Ramos was found to be in possession of two handguns and approximately 30 rounds of ammunition. Ramos may not lawfully possess firearms or ammunition because of his prior felony convictions, including convictions for assault with firearm on a person and for possessing controlled substances for sale.

This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bakersfield Police Department. Assistant U.S. Attorney Christopher D. Baker prosecuted the case.

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.

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BOSTON – A New Bedford man was arrested on June 22, 2022 on drug distribution charges involving fentanyl. 

Hector Diaz, 44, was indicted on two counts of distribution of and possession with intent to distribute fentanyl. Diaz was released on conditions following an initial appearance yesterday before U.S. District Court Magistrate Judge Judith G. Dein.

According to the indictment, on two occasions between December 2020 and January 2021, Diaz distributed and possessed with intent to distribute fentanyl in New Bedford.

The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, three years and up to a lifetime of supervised release, and a fine of $1 million. 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.

United States Attorney Rachael S. Rollins and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement. Assistant U.S. Attorney Sarah Hoefle of Rollins’ Organized Crime & Gang Unit is 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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