Defense News: NAVIFOR Commander Encourages NPS Spring Quarter Graduates

Source: United States Navy

In her commencement remarks, U.S. Navy Vice Adm. Kelly Aeschbach, commander of Naval Information Forces (NAVIFOR), spoke of the complex geopolitical challenges facing the United States and its allies – as well as the importance of the graduates and their future contributions to national and global security.

“To state the obvious, none of you gets to pick the world that you graduate into. That world has already been formed. Now I charge you to change it,” said Aeschbach. “As the Navy’s information boss, I have said on many stages and at many podiums that while the world and the pace of technology is changing at an exponential rate, the one thing that remains constant and is our true north is our people – our uniformed and civilian warfighters who possess the skills, knowledge, expertise and drive to shape the world we all want to live in tomorrow and pass on to our children.”

To that point, Aeschbach credited NPS for its role in preparing the graduates for the leadership challenges ahead in a world where evolving threats to national security and global stability are rising.

“This school doesn’t just graduate scholars – the Naval Postgraduate School graduates warfighters, and it is unrelenting and ruthless in this focus,” she said. “It offers an environment where operational experience and academic rigor intersect to produce leaders who are both thinkers and doers. You, the graduates, embody this intersection; you have the practical experience of service combined with the advanced knowledge gained here.”

In addition to the graduates who received their degrees, NPS also recognized a total of 86 students who earned their U.S. Naval War College Command and Staff diplomas with Joint Professional Military Education (JPME) Phase I certification during the Spring Quarter.

Retired Vice Adm. Ann Rondeau, President of NPS, opened the ceremony by acknowledging the diverse and distinguished guests, including allied international representatives from Chile, Indonesia, and Taiwan, who came to honor their graduates.  

“We are very pleased and very honored to be able to use this day of celebration. And for all of you who are out there who are now going to be our graduates, this day is about you,” said Rondeau. “But tomorrow, the day is about the others. It’s about the teams and nations that we serve, the governments that we serve, the cause that we serve – and about those who are around us, for whom we work and who work for us.”

Rondeau spoke of the role of NPS in preparing students for future challenges, stressing the importance of leadership, character and intellect. In a nod to the recent 80th anniversary of the D-Day landings, Rondeau also urged the graduates to embody “stoutness of heart,” quoting President Franklin D. Roosevelt’s address to the nation on June 6, 1944, as an encouragement to engage in critical thinking and courageous dialogue about right and wrong.

“For you who are here, this is a leadership challenge, an opportunity, an obligation,” said Rondeau. “It’s really important to understand that stoutness of heart, and that confidence and competence, and the courage to speak up when you are informed and when you have thought things through, is really critically important.”

During her remarks, Aeschbach highlighted the critical role NPS graduates will play in using innovative solutions to solve the problems they may face.

“Whether it’s developing new strategies for cyber defense, improving the efficiency of our logistics and supply chains, or enhancing our understanding of international relations and security, your work has immediate and practical applications,” noted Aeschbach. “You are leaving NPS equipped with the knowledge and skills to make a tangible difference in our operations – ready to contribute to our national defense in new and innovative ways.”

Aeschbach also shared what she calls her “four ships”: mentorship, sponsorship, friendship and partnership. She advised graduates to mentor others, sponsor talented individuals, build lasting friendships and value partnerships, both personal and professional.

“The relationships you have formed here at NPS are just as important as the knowledge you have gained,” said Aeschbach. “The bonds of camaraderie and mutual respect you have shared will be invaluable as you move forward. You are now part of a global network of NPS alumni – a community that spans all branches of our military and extends to our international partners.”

In closing, Aeschbach called on the graduates to continue their education and remain adaptable in the face of change.

“Remember that your education does not end here,” said Aeschbach. “Continue to seek out knowledge. Question assumptions and innovate. Our nation demands nothing less of you, and I know every one of you are up to the task.”

Justice Department to Monitor Compliance with Federal Voting Rights Laws in New York

Source: United States Department of Justice Criminal Division

The Justice Department announced today that it will monitor compliance with federal voting rights laws in Queens, New York, for the June 25 primary election.

The Justice Department enforces the federal voting rights laws that protect the rights of all citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country. In addition, the department deploys federal observers from the Office of Personnel Management, where authorized by federal court order. 

The Justice Department’s Civil Rights Division’s Voting Section, working with U.S. Attorneys’ Offices, enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Act and Uniformed and Overseas Citizens Absentee Voting Act.

More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.

Readout of Deputy Attorney General Lisa Monaco’s Trip to Brussels

Source: United States Department of Justice Criminal Division

Deputy Attorney General (Deputy AG) Lisa Monaco traveled to Brussels last week to lead the U.S. delegation at the U.S.-EU Justice and Home Affairs Ministerial and reaffirm the Justice Department’s commitment to a critical alliance that combats shared risks to global security.

The Ministerial brings together leadership from the Justice and Home Affairs Ministries of the European Union and the U.S. Departments of Justice and Homeland Security to strengthen transatlantic collaboration. The Ministers focused on addressing persistent threats to our nations, including organized crime, terrorism, cybercrime, and foreign malign influence — especially by nation-states seeking to sow discord and further their autocratic agendas amid this year’s global elections, when over four billion people are expected to vote. They also discussed international law enforcement collaboration to disrupt trafficking of cocaine and synthetic drugs, particularly fentanyl, as well as AI — including AI’s potential to enhance law enforcement operations and the risk that it could supercharge criminal activity.

During the Ministerial, the officials reaffirmed their resolute support for Ukraine and unwavering resolve to hold Russia accountable for war crimes, atrocities, and the crime of aggression. They reiterated the need for sustained coordination between the U.S. and EU to deprive the Russian war machine of funding and supplies — with the Deputy AG underscoring the successful efforts of the Department’s Disruptive Technology Strike Force and Task Force KleptoCapture to enforce export controls and the sweeping sanctions imposed on Russia for its unprovoked aggression against Ukraine. The officials also emphasized their commitment to supporting anti-corruption efforts in Ukraine. 

While in Brussels, the Deputy AG convened an international meeting of the Justice Department’s Justice AI Initiative with Member of the European Parliament (MEP) Eva Maydell and leaders from the European Parliament, which recently passed the EU AI Act—the first comprehensive legislative framework to govern the integration of AI into society. Launched by Deputy AG Monaco earlier this year, Justice AI brings together stakeholders across civil society, industry, academia, and government to share expertise and a wide range of perspectives on both the promise of AI and the perils of its misuse.

The Deputy AG and MEPs discussed how AI is changing the way crimes are committed in the United States and in Europe — from intensifying cyberattacks, to making fraud scams more believable, to creating child sexual abuse material. They also focused on the threat of malign state actors using AI to undermine global elections this year, and the MEPs shared observations and lessons learned from recent European elections. The Deputy AG underscored that the Justice Department will remain vigilant to foreign adversaries abusing AI to accelerate online hate and disinformation, imitate trusted sources of information, and proliferate deepfakes.

During her trip, the Deputy AG also held bilateral meetings with European Commissioner for Home Affairs Ylva Johansson and Belgian Minister of Justice Paul Van Tigchelt to highlight areas for continued collaboration between the Justice Department and our European partners. She met with United States Ambassador to the European Union Mark Gitenstein and United States Ambassador to Belgium Michael Adler, and also visited the U.S. Mission to the European Union and the U.S. Embassy in Belgium for a briefing with U.S. officials on their work with our European allies and to thank them for their service.

Defense News: SECNAV Travels to Spain; Announces Name of FFG 67 and Meets with Key Leaders

Source: United States Navy

MADRID – Secretary of the Navy Carlos Del Toro traveled to Madrid, Spain, strengthening a strategic partnership by conducting a series of engagements. Secretary Del Toro met with servicemembers, U.S. and Spanish key leaders, and announced the name of the future USS Galvez, June 20-22.

Secretary Del Toro visited U.S. Embassy Madrid where he met with U.S. Ambassador to Spain Julissa Reynoso and her country team. Secretary Del Toro expressed his appreciation for the Embassy’s work advancing the interests of the United States, and the service and protection they provide to U.S. citizens in Spain and Andorra, as well as the Sailors and Marines stationed in Spain.  

Upon the completion of his meeting with Ambassador Reynoso, he met and engaged with members of the Defense Staff stationed at the embassy, including the Marine Security Guard Unit. During this meeting, Secretary Del Toro held an awards ceremony where he presented the End-of-Tour awards for several U.S. servicemembers.   

After his Embassy engagement, Secretary Del Toro traveled to the Spanish Ministry of Defense and had an office-call with Minister of Defense María Margarita Robles Fernández. Secretary Del Toro highlighted the strong maritime partnership and opportunities to grow both nations’ interoperability and the need for continued support to Ukraine.  

Secretary Del Toro also attended a dinner with Spanish Navy leadership hosted by Ambassador Reynoso. Guests in attendance from Spain were the Chief of Staff of the Spanish Navy (AJEMA), Admiral Antonio Piñeiro; Secretary General for Political Affairs, Juan F. Martínez Núñez; Deputy Chief of the Spanish Navy, Admiral Gonzalo Sanz Alisido; Chief of Logistics Spanish Navy, Ricardo A. Hernández López; Secretary General for the Spanish Navy Staff, General de Brigada José Luis Sout Aguirre; President of the Permanent Committee, Rear Admiral Santiago Vila Barrón.  

During the dinner Secretary Del Toro underscored the Department of the Navy’s (DON) commitment to Spain and the region. He also emphasized his gratitude for Spain’s outstanding host-nation support to Forward Deployed Naval Forces (FDNF) at Naval Station Rota and Air Base Moron, particularly with the upcoming arrival of two additional destroyers (DDG) and families.  

On Friday, Secretary Del Toro met with His Royal Highness, His Majesty King Felipe VI. During the meeting Secretary Del Toro underscored the importance of the continued strategic relationship and partnership between the two countries and expressed his sincere gratitude for the positive host-nation relationship that Spain provides, including sharing their culture and embracing the service members, civilians, and families of Naval Station Rota and Air Base Moron. This is the second time Secretary Del Toro has met with His Majesty King Felipe VI.  

Secretary Del Toro then had an office call with Admiral Antonio Piñeiro at the Spanish Naval Headquarters. During this meeting, Admiral Piñeiro presented Secretary Del Toro with the Grand Cross of Naval Merit with White Ribbon for his work fostering and strengthening the relationship between the two navies, particularly his personal involvement in advancing US-Spain maritime objectives.  

“As I humbly accept this award, I consider it a recognition of the incredible commitment of the nearly one million Sailors, Marines, and civilians who comprise the U.S. Navy and Marine Corps to the alliance between our two nations as we continue our work to defend shared freedoms, liberties and ideals,” said Secretary Del Toro. “The future strategic relationship is indeed bright, and I look forward to continuing our work to advance peace, prosperity, and stability throughout Europe.” 

The Grand Cross of Naval Merit is a Spanish military award for gallantry or merit in war or peace and is awarded to generals, admirals, or civilian personnel of equivalent rank. The White Ribbon decoration is for actions, deeds, or distinguished service during missions or ordinary or extraordinary service in the armed forces or in connection with defense of the country.  

Secretary Del Toro attended the U.S. Embassy Madrid’s 4th of July party, where he highlighted and strengthened the relationship between the two nations by announcing the name of FFG 67, the future USS Gálvez. The naming honors American Revolutionary War hero Conde Bernardo de Gálvez y Madrid and reemphasizes the enduring partnership between the U.S. and Spain.   

Del Toro ended his visit to Spain as the guest of honor at the St Carmen Navy reception hosted by the Nuestra Señora del Carmen Association (ANSC). ANSC is a non-profit organization that provides assistance to Navy and Armed Forces Common Corps personnel, to include retired personnel, civil servants, widowed spouses, and orphans.  

The United States established diplomatic relations with Spain in 1783. Spain and the United States are close allies and have excellent relations based on shared democratic values, including the promotion of democracy and human rights. Spain is a stalwart defense partner, having hosted U.S. troops at the Spanish Naval Base Rota and Air Base Moron for over 70 years. 

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Chairman of Publicly Traded Health Care Company Convicted of Insider Trading

Source: United States Department of Justice Criminal Division

A federal jury in Los Angeles convicted the former CEO, executive chairman, and chairman of the board of directors of Ontrak Inc., a publicly traded health care company, for engaging in an insider trading scheme using Rule 10b5‑1 trading plans. 

“When Terren Peizer learned significant negative news about Ontrak, he set up Rule 10b5-1 trading plans to sell shares before the news became public and to conceal that he was trading on inside information,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “With today’s verdict, the jury convicted Peizer of insider trading. This is the Justice Department’s first insider trading prosecution based exclusively on the use of a trading plan, but it will not be our last. We will not let corporate executives who trade on inside information hide behind trading plans they established in bad faith.”

“Corporate executives and other insiders hold major power in our economy, but with that power comes responsibility,” said U.S. Attorney Martin Estrada for the Central District of California. “It is important that executives, such as this defendant, be held accountable when they line their own pockets at the expense of shareholders. That is why I created our office’s Corporate Crime and Securities Fraud Strike Force. Today’s verdict sends a clear message that everyone, including corporate executives, must abide by the law.”  

According to court documents and evidence presented at trial, Terren S. Peizer, 64, a resident of Santa Monica, California, and Puerto Rico, avoided more than $12.5 million in losses by entering into two Rule 10b5-1 trading plans while in possession of material non-public information concerning the serious risk that Ontrak’s then-largest customer would terminate its contract. In May 2021, Peizer entered into his first Rule 10b5-1 trading plan shortly after learning that the relationship between Ontrak and the customer was deteriorating and that the customer had expressed serious reservations about continuing its contract with Ontrak. Peizer later learned that the customer informed Ontrak of its intent to terminate the contract. Then, in August 2021, Peizer entered into his second Rule 10b5-1 trading plan approximately five minutes after Ontrak’s chief negotiator for the contract informed Peizer that the contract likely would be terminated.

“As a CEO, Mr. Peizer abdicated his responsibilities by using his position to conceal trading on material non-public information in order to avoid the losses shareholders suffered,” said Acting Assistant Director in Charge Krysti Hawkins of the FBI Los Angeles Field Office. “The FBI is committed to investigating illegal trading practices and holding offenders accountable in order to ensure fairness and trust in the marketplace.”

In establishing his Rule 10b5-1 plans, Peizer refused to engage in any “cooling-off” period—the time between when he entered into the trading plan and when he sold Ontrak stock—despite warnings from multiple brokers, Ontrak’s Insider Trading Compliance Officer, and several attorneys. Instead, Peizer began selling shares of Ontrak on the next trading day after establishing each plan. On Aug. 19, 2021, just six days after Peizer adopted his second Rule 10b5-1 plan, Ontrak announced to the public that the customer had terminated its contract and Ontrak’s stock price declined by more than 44%. 

The jury convicted Peizer of one count of securities fraud and two counts of insider trading. He is scheduled to be sentenced on Oct. 21 and faces a maximum penalty of 25 years in prison on the securities fraud count and 20 years in prison on each of the insider trading counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The case is part of a data-driven initiative led by the Criminal Division’s Fraud Section to identify executive abuses of 10b5-1 trading plans. A Rule 10b5-1 trading plan, which allows a corporate insider of a publicly traded company to set up a plan for selling company stock, can offer an executive a defense to insider trading charges. However, the defense is unavailable if the executive is in possession of material, non-public information at the time he or she enters into the 10b5-1 trading plan. Additionally, a plan does not protect an executive if the trading plan was not entered into in good faith or was entered into as part of an effort or scheme to evade the prohibitions of Rule 10b5-1.

The FBI investigated the case. The Justice Department appreciates the substantial assistance of FINRA’s Criminal Prosecution Assistance Group.

Trial Attorneys Matthew Reilly and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ali Moghaddas for the Central District of California are prosecuting the case.