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CEO Sentenced for Transnational “Cherry-Picking” Scheme Involving Foreign Exchange and Cryptocurrency Futures Contracts

Source: United States Department of Justice

A chief executive officer of an investment firm was sentenced today to two years in prison followed by one year and six months of home confinement and ordered to forfeit approximately $1.6 million for a “cherry-picking” scheme, in which he fraudulently misappropriated profitable trades to himself and saddled his investors with losses. 

According to court documents, Peter Kambolin, 48, a U.S.-Russian national of Sunny Isles Beach, Florida, was the owner and chief executive officer of Systematic Alpha Management LLC (SAM), an investment firm that Kambolin marketed as offering algorithmic trading strategies involving futures contracts. Established in 2007, by 2011, SAM had more than $720 million in assets under management. Between January 2019 and November 2021, Kambolin, who at the time was a commodity trading advisor and a commodity pool operator, engaged in a cherry-picking scheme in which he fraudulently allocated profits and losses from futures trades in a manner designed to benefit his own accounts unfairly at the expense of his clients. Kambolin also misrepresented to his clients that SAM employed trading strategies focused on cryptocurrency futures contracts and foreign exchange futures contracts, when in reality, approximately half of Kambolin’s trading in each pool involved equity index futures contracts. In doing so, Kambolin defrauded investors located in the United States and abroad by, among other things, depriving them of profitable trades. Kambolin used the proceeds of the scheme to fund personal expenses, including rent for a beachfront apartment, and transferred proceeds to foreign bank accounts his co-conspirator controlled in Belarus and Dominica.

During the relevant period, Kambolin executed trades for pool participants together with trades he executed on behalf of his proprietary accounts, and fraudulently allocated the profits and losses of the trades to benefit his own accounts.

Kambolin pleaded guilty on Oct. 11, 2023, to one count of conspiracy to commit commodities fraud.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and Assistant Inspector General for Investigations Shimon R. Richmond of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement.

The FDIC-OIG investigated the case. The Commodity Futures Trading Commission previously charged Kambolin and SAM by complaint.

Trial Attorney Matt Kahn of the Criminal Division’s Fraud Section prosecuted the case.

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DOJ Releases Report on Critical Incident Review of Response to the Mass Shooting at Robb Elementary

Source: United States Department of Justice

The Justice Department announced the release of a report on its critical incident review of the law enforcement response to the tragic school shooting at Robb Elementary School. Attorney General Merrick B. Garland announced the review shortly after the tragedy on May 24, 2022, in which 19 children and two teachers died at Robb Elementary School in Uvalde, Texas. The report provides a thorough description of the critical incident review that has taken place over the past 20 months.

Related:

Justice Department Releases Report on its Critical Incident Review of the Response to the Mass Shooting at Robb Elementary School in Uvalde, Texas

Attorney General Merrick B. Garland Delivers Remarks on the Justice Department’s Report on its Critical Incident Review of the Response to the Mass Shooting at Robb Elementary School in Uvalde, Texas

Associate Attorney General Vanita Gupta Delivers Remarks on the Justice Department’s Report on its Critical Incident Review of the Response to the Mass Shooting at Robb Elementary School in Uvalde, Texas

Director Hugh T. Clements, Jr. of the Office of Community Oriented Policing Services Delivers Remarks on the Justice Department’s Report on its Critical Incident Review of the Response to the Mass Shooting at Robb Elementary School in Uvalde, Texas

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The Pas — The Pas RCMP respond to serious stabbing incident

Source: Royal Canadian Mounted Police

On January 19, 2024, at approximately 3:50 pm, The Pas RCMP responded to a serious stabbing incident in the 300 block of Edwards Avenue. Two people were severely injured.

No further reports of violence have been received. However, one or more suspects remain at large. The RCMP is asking residents of The Pas and area to be vigilant and to report any suspicious activity.

The investigation is in its very early stages and police remain on scene at this time. People are asked to avoid the area if possible and motorists are asked to be aware of emergency personnel working on scene.

When this incident occurred, there were many people in the vicinity, and police would like to speak to anyone who was in the area at the time of the incident and saw something. If anyone has any information related to this incident, please call The Pas RCMP at 204-627-6204, Crime Stoppers anonymously at 1-800-222-8477, or secure tip online at www.manitobacrimestoppers.com.

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Imprisoned Sex Offender Sentenced to 19 Years and Seven Months for Distributing Child Pornography From Behind Bars

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

            WASHINGTON – Quincy J. LaBauve, 37, an inmate serving 40 years in the Mississippi Department of Corrections for child sex crimes, was sentenced today to an additional 235 months in federal prison for using a contraband cell phone to send and to seek out images of child sexual abuse material from behind bars.

            The sentencing was announced by U.S. Attorney Matthew Graves and FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division.

            On September 5, 2023, while serving a Mississippi state sentence related to the sexual abuse and exploitation of a child, LaBuave, formerly of Biloxi, entered a guilty plea in U.S. District Court in the District of Columbia. to one count of distribution of child pornography.

            In addition to the prison term, U.S. District Court Judge Colleen Kollar-Kotelly ordered LaBauve to serve a lifetime term of supervised release. The federal prison sentence will run concurrently with his state prison sentence.

            The federal charges stemmed from a roughly week-long online chat in early February 2020, during which LaBauve asked a Washington, D.C.-based undercover law enforcement officer to help him find someone who would be willing to share child pornography with him.

            During the chat exchange, LaBauve sent approximately 10 images to the undercover officer depicting the sexual exploitation of children. In addition, he encouraged the undercover officer to rape his own daughter, described specific sexual acts that he wanted to see inflicted on the child, and set up a specific time where he was supposed watch the live-streamed rape of that child.

            On February 18, 2020, Department of Corrections officers in Mississippi conducted a search of LaBauve’s cell and recovered two phones. The forensic analysis of one of those phones revealed the chats exchanged between LaBauve and the undercover officer, as well as at least 78 additional images depicting the sexual abuse of very young of children. These images included multiple still images and at least one video.

            This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, detectives from the Metropolitan Police Department, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.

            The case was prosecuted by Assistant U.S. Attorneys Jocelyn Bond and Amy Larson, of the U.S. Attorney’s Office for the District of Columbia, and former Special Assistant U.S. Attorney Elizabeth Hutson.

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Port Hawkesbury — Man wanted on province-wide arrest warrant

Source: Royal Canadian Mounted Police

Inverness County District RCMP has obtained a warrant for the arrest of a man wanted in relation to an assault that occurred on January 14, 2024, in Port Hawkesbury.

Nicholas George Lush, 22, from Port Hawkesbury, has been charged with:

  • Assault (two counts)
  • Mischief (two counts)
  • Overcoming Resistance to Commission of Offence (Choking)
  • Failure to Comply With Probation Order (two counts)
  • Breach of Recognizance (four counts)

Lush is described as 6-feet, 165 lbs. He has blue eyes and blond hair.

Police have made several attempts to locate Lush; however, are requesting assistance from the public.

Anyone who sees Nicholas George Lush should refrain from approaching him and call police.

Anyone with information on his whereabouts is asked to contact Inverness County District RCMP at 902-625-2220. Should you wish to remain anonymous, call Nova Scotia Crime Stoppers, toll-free, at 1-800-222-TIPS (8477), submit a secure web tip at www.crimestoppers.ns.ca, or use the P3 Tips App.

File #: 2024-60455

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Statement on conclusion of inquest into the death of Andrzej Kusper

Source: United Kingdom London Metropolitan Police

Following the conclusion of the inquest into the death of Andrzej Kusper, Commander Paul Trevers said: “I was hugely saddened to hear of Mr Kusper’s death. It is a tragedy and I cannot imagine the impact his loss has had on his friends and family. I hope the inquest has provided them with some answers.

“Now that the inquest has concluded, we will be writing to them to express our sincere condolences.

“As the Coroner heard, we routinely train officers in how to keep people safe when they are arrested, in line with national guidance. However, we will carefully study the jury’s findings in relation to the search, and any recommendations from the Coroner to consider what else we need to do.”

After Mr Kusper’s death, we quickly referred the incident to the Independent Office for Police Conduct. They decided that the actions of the officer who searched Mr Kusper inside the custody van was not classed as gross misconduct and recommended he face a misconduct meeting for breaching the police standards of professional behaviour of duties and responsibilities. The meeting chair found misconduct not proven, and determined that the officer should undergo reflective practice, which means they underwent learning and training.

The two Directorate of Professional Standards officers were also given reflective practice about exhibit handling.

The IOPC did not find any organisational learning about how the Met searches or transports prisoners, but they did identify some organisational learning around exhibits and training, and we have improved our practice in both of these areas as a result of these recommendations.

We know it is important to get searches and transport right and, while we have made improvements, we know we can do better and will continue to work on this area for the safety of everyone.

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La Ronge — La Ronge RCMP seeking witnesses to serious vehicle-pedestrian collision

Source: Royal Canadian Mounted Police

On September 30, 2021, La Ronge RCMP responded to a collision involving a pedestrian on Frances Roberts Street in the La Ronge District. The pedestrian was transported to hospital and later declared deceased. He was identified as a 22-year-old male from Sucker River.

La Ronge RCMP continued to investigate with the assistance of the Saskatchewan RCMP collision reconstructionist, Saskatchewan RCMP’s La Ronge General Investigation Section, and Prince Albert Forensic Identification Services.

As a result of further investigation, on January 16, 2024 La Ronge RCMP located and arrested an adult female at a residence in the La Ronge District.

29-year-old Christine Charles from the La Ronge District has been charged with:

  • one count, manslaughter, Section 236(b), Criminal Code;
  • one count, criminal negligence, Section 220(b), Criminal Code;
  • one count, dangerous operation of motor vehicle causing death, Section 320.13(3), Criminal Code;
  • one count, operation while impaired of motor vehicle causing death, Section 320.14(3), Criminal Code; and
  • one count, failure to stop after accident resulting in death, Section 320.16(3), Criminal Code.

Christine Charles will appear in La Ronge Provincial Court on February 1, 2024.

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Flin Flon — Flin Flon RCMP make arrests after stolen vehicle fails to stop

Source: Royal Canadian Mounted Police

On January 17, 2024, at approximately 5:40 am, Flin Flon RCMP received information from Creighton RCMP of a stolen vehicle that had fled from them.

Officers on patrol located the stolen vehicle on White Street, in Flin Flon, and initiated a traffic stop, but the vehicle refused to stop and fled at a low rate of speed.

The vehicle turned onto Lake Street, a dead end, and officers contained the area. The stolen vehicle stopped, and when officers approached, the driver refused to listen to commands, hit the gas, struck two homes and became stuck in a snowbank.

The driver and passenger were arrested.

The driver, 27-year-old Genevieve Sewap, of Pelican Narrows, SK, was remanded into custody on charges including;

  • Flight from Peace Officer
  • Impaired Operation of a Motor Vehicle
  • Resisting Arrest x2
  • Dangerous Operation of a Motor Vehicle
  • Possession of Property Obtained by Crime
  • Mischief Under $5000 x2

The passenger, a 15-year-old female from Deschambault Lake, SK, was released for court at a later date in Flin Flon, where she will face a charge of Possession of Property Obtained by Crime.

Flin Flon RCMP continue to investigate.

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AFGSC selected for $18M research allocation

Source: United States Air Force

BARKSDALE AIR FORCE BASE, La. (AFNS) —  

Air Force Global Strike Command is the first major command selected for a Small Business Innovation Research (SBIR) Specific Topic under AFWERX with four approved solicitations and two pending applications.

AFWERX, the innovation arm of the Department of the Air Force and a directorate within the Air Force Research Laboratory, brings cutting-edge American ingenuity from small businesses and start-ups to address the most pressing challenges of the DAF.

The Specific Topics designation allows military end-users to define narrow operations or equipment problem sets that require special attention. Commercial companies can then propose solutions, and — if selected for funding — begin technology development, testing and integration efforts.

The AFWERX office allocated up to $18 million for AFGSC across the four solicitations and could add another $7 million if the two pending applications are selected. This allows Strikers the unique opportunity to work directly with potential vendors on the most effective means to modernize legacy systems and integrate new innovative capabilities that meet command priorities.

Since taking command of AFGSC, Gen. Thomas A. Bussiere has stressed the need for improvement in present weapons systems while concurrently building the next generation of bombers and ICBMs. “I used to say our last B-52 pilot hasn’t been born yet … It might now be our last B-52 father or grandfather hasn’t been born yet,” stated Bussiere in his keynote speech at the AFA Warfare Symposium in Aurora, Colorado, in March 2023. “We’re going to fly that weapon system to the 2050s … but we’re going to put new motors, new radar, new avionics, and new weapons on that aircraft …We don’t have any option other than to modernize.”

To help meet modernization objectives, AFGSC created the A5N Division, which seeks new pathways to meet warfighter needs. They scout solutions from small commercial businesses since technology development proposals are on average faster and more cost-effective compared to those from the current majority Defense Prime Contractors. The A5N division, better known as the Commercial Capabilities Integration Transition Division, in coordination with Building Our Region’s Future, an economic development organization based in Shreveport, established the Entrepreneurial Accelerator Program (EAP). These entities along with the Small Business Consulting Corporation (SBCC) honed in on the Specific Topics opportunities to increase their reach.

Now critical areas of innovation can be addressed in months compared to the multi-year procurement process that includes building requirement definitions and laying out contract parameters before any manufacturing or design can begin. The first four AFGSC solicitations focus on B-52 pylon modification, advanced battery development and integration for airborne platforms, electromagnetic pulse hardening, and readiness spares package deployment improvements.

“Global Strike has proven their mission needs in the innovation space, and we must look at all means, to include high caliber small businesses, to accelerate procuring the right capabilities for the warfighter,” explained Nate Dawn, CCIT division deputy chief. “That’s the beauty of leveraging the Specific Topic process. We can actually talk to companies doing research and development, find funding through these AFWERX SBIR grants, and then shape product attributes to Striker needs.”

In addition to their efforts in the AFWERX proposal space, CCIT is recruiting cutting edge companies through their annual showcase events and continual tech scouting. The BRF, EAP, and SBCC teams have been instrumental in their support of these activities. Over the past 30 months, the CCIT brought 45 new technologies and over $100 million in contracts to AFGSC and is already moving 10 companies to transition.

“We’ve seen a significant improvement in outreach and visibility of Striker needs, improving the odds to solve those challenges. Leveraging this process funds projects that would otherwise not receive resources through standard channels,” Dawn remarked. “This is a great way to advertise Air Force Global Strike Command’s needs and capitalize on the amazing American commercial technology marketspace.”

 

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Update 207 – IAEA Director General Statement on Situation in Ukraine

Source: International Atomic Energy Agency – IAEA

Ukraine’s Zaporizhzhya Nuclear Power Plant (ZNPP) lost its immediate back-up power supply to the reactor units for several hours this week, in the latest incident underlining persistent nuclear safety and security risks at the site, Director General Rafael Mariano Grossi of the International Atomic Energy Agency (IAEA) said today.

Thursday’s failure of two of the ZNPP’s back-up power electrical transformers showed the continuing vulnerability in the availability of external power, which the plant needs to cool its six reactors and for other essential nuclear safety and security functions.

Even though the back-up 330 kilovolt (kV) line remained available and could have provided power to the ZNPP if the 750 kV line was lost, the failure reduced the redundancy of the already fragile power supply. These two power lines are the only ones that remain available for Europe’s largest nuclear power plant (NPP), compared to four 750 kV lines and six 330 kV lines before the conflict.

The back-up power supply was restored eight hours later when two other back-up power electrical transformers were put into operation. The ZNPP is investigating the cause of the failure, informing the IAEA experts at the site that there was no sign of external transformer damage.

The incident came just a few weeks after the ZNPP – following discussions with the IAEA – carried out work on the back-up power electrical transformers so that the 330 kV line could immediately deliver electricity if the 750 kV line were to fail, as has happened repeatedly during the armed conflict.

“The plant’s vulnerable power status remains one of the main dangers for nuclear safety and security at the site. The situation remains extremely worrying in this respect. The site has already lost all off-site power eight times since August 2022, forcing it to rely on emergency diesel generators,” Director General Grossi said.

During the past week, the IAEA experts discussed the plant’s maintenance activities with the ZNPP and were shown its high-level 2024 maintenance plan for such work, which is vital for nuclear safety and security. The ZNPP informed the IAEA team that the priority is to perform maintenance on the site’s safety systems as well as important activities not conducted last year. The annual maintenance plan includes the safety systems, diesel generators, unit transformers and the 750 kV electrical switchyard.

The IAEA team did not receive a copy of the maintenance plan for a detailed review. However, based on discussions and information provided to the team, the IAEA concludes that the ZNPP will not be implementing a comprehensive maintenance plan during 2024.

“A well-established maintenance plan and its timely implementation are essential to ensure plant safety and security,” Director General Grossi said. “This maintenance needs to be performed to ensure nuclear safety, especially in the current situation where the six reactors have been shut down for an extended period. It is important that the IAEA has a thorough understanding of the maintenance plans to be able to fully assess nuclear safety at the ZNPP. We will continue to monitor the maintenance situation closely.”

The IAEA team has continued to conduct walkdowns at the site, including to all six main control rooms yesterday, where the experts were able to observe staffing levels but could not ask questions about their qualifications and experience.

After being granted access to the reactor hall of unit 6 earlier this week, the IAEA experts are still seeking access to the other reactor halls, as well as to parts of all six turbine halls that they have not yet been able to visit, as well as to some of the reactor rooftops. Such access is needed to monitor nuclear safety and security as well as adherence to the five concrete principles for the protection of the ZNPP, Director General Grossi said.

The IAEA team has continued to monitor the situation and gather information regarding boric acid deposits in some of the safety system rooms of unit 6, which were first observed on 22 December. During yesterday’s visit to its main control room, the team confirmed that the level of boric acid in the storage tank was above the minimum level in the technical specifications, despite the previously observed leak of boric acid.

Mines along the perimeter of the ZNPP, in a buffer zone between the facility’s internal and external fences, which were previously identified by the IAEA team and were removed in November 2023, are now back in place. This is a restricted area inaccessible to operational plant personnel. Director General Grossi reiterated that the presence of mines is inconsistent with the IAEA safety standards.

Elsewhere in Ukraine, the IAEA teams at the Rivne, Khmelnitsky, and South Ukraine NPPs as well as the Chornobyl site continue to report that nuclear safety and security is maintained despite multiple air raid alarms heard over the past week. The IAEA experts at the Khmelnitsky, Rivne and South Ukraine NPPs have reported air-raids on a near-daily basis with the teams at the Khmelnitsky and Rivne NPPs required to take shelter on several occasions.