Security News: Southern California Dental Offices and Former Owners Pay $6.3M to Resolve False Claims Act Allegations Relating to Improper Paycheck Protection Program Loans

Source: United States Department of Justice 2

West Coast Dental Administrative Services LLC (formerly West Coast Dental Services Inc.), which operates a network of dental offices in Southern California, and its founders and former owners, Drs. Soleyman Cohen-Sedgh, Farid Pakravan and Farhad Manavi, have paid $6.3 million to resolve allegations that they knowingly violated the False Claims Act in connection with seven improper loans that West Coast Dental Services Inc. (West Coast Dental) and affiliated dental offices received under the Paycheck Protection Program (PPP). Additionally, City Real Estate Holdings Inc., a real estate investment company owned by Dr. Manavi, has paid an additional $35,149.82 to resolve its potential liability under the False Claims Act in connection with a separate PPP loan.

The PPP, an emergency loan program established by Congress in March 2020 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and administered by the Small Business Administration, was intended to support small businesses struggling to pay employees and other business expenses during the COVID-19 pandemic. Whether an applicant qualified for a PPP loan as a small business depended on various factors, including the type of business operated by the borrower and the number of employees of both the borrower and its corporate affiliates.  In 2021, Congress offered a second round of forgivable loans through the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act.  Under PPP rules, second draw loans were strictly limited to businesses with 300 employees or less. When applying for PPP loans and loan forgiveness, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.

The United States alleged that West Coast Dental and six of its affiliated dental practices received seven improper second draw PPP loans and subsequent forgiveness of these loans based on false certifications that the companies qualified for the loans even though they were ineligible because the dental practices collectively employed more than 300 individuals. The United States further alleged that West Coast Dental and its affiliates failed to disclose common ownership of the affiliated dental offices in their separate PPP applications. The United States also alleged that City Real Estate Holdings Inc., which received a PPP loan, was ineligible to receive the loan under PPP rules, because it is a passive business operated for investment purposes.  City Real Estate Holdings Inc. sought and received forgiveness of its total loan amount.

“PPP loans were intended to support small businesses facing difficult economic times due to the COVID-19 pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to hold borrowers who improperly received and sought forgiveness of PPP loans accountable for their actions.”

“Companies such as these that depleted crucial pandemic-assistance funding will be held accountable under the False Claims Act,” said U.S. Attorney Martin Estrada for the Central District of California. “This resolution evidences our office’s earnest commitment to ensure that companies act with the utmost integrity and compunction.”

“This settlement sends a signal to wrongdoers that evidence of improper conduct will be brought to light,” said Special Agent in Charge Weston King for Small Business Administration’s Office of Inspector General (SBA OIG)’s Western Region. “Our office will remain relentless in the pursuit of those who seek to exploit SBA’s vital pandemic response programs. I want to thank the U.S. Department of Justice and our law enforcement partners for their exceptional efforts and collaboration in pursuit of justice.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Relator LLC, a limited liability corporation formed by California attorneys Anoush Hakimi and Peter Shahriari. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.  The qui tam case is captioned U.S. ex rel. Relator LLC v. West Coast Dental Services Inc., et al., CV 22-3812-MCS (MARx) (C.D. Cal.). Relator LLC will receive approximately $507,000 as its share of the total settlement.   

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from the Small Business Administration’s Office of General Counsel and Office of the Inspector General.

Trial Attorney Allie Pang of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Jack D. Ross for the Central District of California handled the matter, with the assistance of Paralegal Heather Beckler, Investigator Maria Marsh, and Auditor John Powers for the U.S. Attorney’s Office for the Central District of California. Special Agent Samuel Huynh of SBA-OIG also provided investigative assistance. 

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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 actors committing civil and criminal fraud 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 www.justice.gov/coronavirus.

Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The claims resolved by the settlement are allegations only. There has been no determination of liability.

Security News: Four Men Charged in Philippine Bribery and Money Laundering Scheme

Source: United States Department of Justice 2

A federal grand jury in the Southern District of Florida returned an indictment today charging three executives of an election voting machine and service provider company and a former Chairman of the Commission on Elections (COMELEC) of the Republic of the Philippines for their roles in an alleged bribery and money laundering scheme to retain and obtain business related to the 2016 Philippine elections.

According to the indictment, between 2015 and 2018, Roger Alejandro Pinate Martinez, 49, a Venezuelan citizen and resident of Boca Raton, Florida, and Jorge Miguel Vasquez, 62, a U.S. citizen and resident of Davie, Florida, together with others, allegedly caused at least $1 million in bribes to be paid to Juan Andres Donato Bautista, 60, the former Chairman of COMELEC. These bribes were allegedly paid to obtain and retain business related to providing voting machines and election services for the 2016 Philippine elections and to secure payments on the contracts, including the release of value added tax payments.

The co-conspirators allegedly funded the bribes through a slush fund that was created by over-invoicing the cost per voting machine for the 2016 Philippine elections. To conceal and disguise the nature and purpose of the corrupt payments, the co-conspirators used coded language to refer to the slush fund and caused the creation of fraudulent contracts and sham loan agreements to justify transfers. The co-conspirators then allegedly laundered funds related to the bribery scheme through bank accounts located in Asia, Europe, and the United States, including in the Southern District of Florida.

Pinate and Vasquez are each charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one substantive violation of the FCPA. Bautista, Pinate, Vasquez, and Elie Moreno, 44, a dual citizen of Venezuela and Israel, are each charged with one count of conspiracy to commit money laundering and three counts of international laundering of monetary instruments. If convicted, Pinate and Vasquez each face a maximum penalty of five years in prison for the FCPA and conspiracy to violate the FCPA counts. Bautista, Pinate, Vasquez, and Moreno each face a maximum penalty of 20 years for each count of international laundering of monetary instruments and conspiracy to commit money laundering.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami; and Special Agent in Charge Matthew D. Line of IRS Criminal Investigation (IRS CI) Miami made the announcement.

HSI’s El Dorado Task Force Miami is investigating the case, with assistance from IRS CI Miami.

Trial Attorneys Michael DiLorenzo and Connor Mullin and Assistant Chief Alexander Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Robert Emery for the Southern District of Florida are prosecuting the case. The Justice Department’s Office of International Affairs and the Philippine Department of Justice and Office of the Ombudsman provided substantial assistance.

The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act (FEPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Security News: Justice Department Disrupts North Korean Remote IT Worker Fraud Schemes Through Charges and Arrest of Nashville Facilitator

Source: United States Department of Justice 2

Matthew Isaac Knoot, 38, of Nashville, Tennessee, was arrested today for his efforts to generate revenue for the Democratic People’s Republic of Korea’s (DPRK or North Korea) illicit weapons program, which includes weapons of mass destruction (WMD).

The FBI, along with the Departments of State and Treasury, issued a May 2022 advisory to alert the international community, private sector, and public about the North Korea IT worker threat. Updated guidance was issued in October 2023 by the United States and the Republic of Korea (South Korea) and in May 2024 by the FBI, which include indicators to watch for that are consistent with the North Korea IT worker fraud and the use of U.S.-based laptop farms.

According to court documents, Knoot participated in a scheme to obtain remote employment with American and British companies for foreign information technology (IT) workers, who were actually North Korean actors. Knoot allegedly assisted them in using a stolen identity to pose as a U.S. citizen; hosted company laptops at his residences; downloaded and installed software without authorization on such laptops to facilitate access and perpetuate the deception; and conspired to launder payments for the remote IT work, including to accounts tied to North Korean and Chinese actors.

“As alleged, this defendant facilitated a scheme to deceive U.S. companies into hiring foreign remote IT workers who were paid hundreds of thousands of dollars in income funneled to the DPRK for its weapons program,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This indictment should serve as a stark warning to U.S. businesses that employ remote IT workers of the growing threat from the DPRK and the need to be vigilant in their hiring processes.”

“North Korea has dispatched thousands of highly skilled information technology workers around the world to dupe unwitting businesses and evade international sanctions so that it can continue to fund its dangerous weapons program,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “Today’s indictment, charging the defendant with facilitating a complex, multi-year scheme that funneled hundreds of thousands of dollars to foreign actors, is the most recent example of our office’s commitment to protecting the United States’ national security interests.”

“As today’s charges demonstrate, the FBI will relentlessly pursue those who aid the North Korean government’s illegal efforts to generate revenue,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “Where illicit proceeds may be used to fund the regime’s kinetic capacity, we will prioritize our work to disrupt that flow of money. This indictment should demonstrate the risk faced by those who support the DPRK’s malicious cyber activity.”

The DPRK has dispatched thousands of skilled IT workers to live abroad, primarily in China and Russia, with the aim of deceiving U.S. and other businesses worldwide into hiring them as freelance IT workers to generate revenue for its WMD programs. DPRK IT worker schemes involve the use of pseudonymous email, social media, payment platform and online job site accounts, as well as false websites, proxy computers, and witting and unwitting third parties located in the United States and elsewhere. As described in a May 2022 tri-seal public service advisory released by the FBI, the Department of the Treasury, and the Department of State, such IT workers have been known to individually earn up to $300,000 annually, generating hundreds of millions of dollars collectively each year, on behalf of designated entities, such as the North Korean Ministry of Defense and others directly involved in the DPRK’s UN-prohibited WMD programs.

The indictment unsealed today in the Middle District of Tennessee alleges that Knoot participated in a scheme to assist overseas IT workers to obtain remote IT work at U.S. companies which believed that they were hiring U.S.-based personnel. The IT workers, who were North Korean nationals, used the stolen identity of a U.S. citizen, “Andrew M.,” to obtain this remote IT work. The scheme defrauded U.S. media, technology, and financial companies, ultimately causing them hundreds of thousands of dollars in damages.   

According to court documents, Knoot ran a “laptop farm” at his Nashville residences between approximately July 2022 and August 2023.  The victim companies shipped laptops addressed to “Andrew M.” to Knoot’s residences. Following receipt of the laptops, and without authorization, Knoot logged on to the laptops, downloaded and installed unauthorized remote desktop applications, and accessed the victim companies’ networks, causing damage to the computers. The remote desktop applications enabled the North Korean IT workers to work from locations in China, while appearing to the victim companies that “Andrew M.” was working from Knoot’s residences in Nashville. For his participation in the scheme, Knoot was paid a monthly fee for his services by a foreign-based facilitator who went by the name Yang Di. A court-authorized search of Knoot’s laptop farm was executed in early August 2023.

The overseas IT workers associated with Knoot’s cell were each paid over $250,000 for their work between approximately July 2022 and August 2023, much of which was falsely reported to the Internal Revenue Service and the Social Security Administration in the name of the actual U.S. person, Andrew M., whose identity was stolen. Knoot and his conspirators’ actions also caused the victim companies more than $500,000 in costs associated with auditing and remediating their devices, systems, and networks. Knoot, Di, and others conspired to commit money laundering by conducting financial transactions to receive payments from the victim companies, transfer those funds to Knoot and to accounts outside of the United States, in an attempt both to promote their unlawful activity and to hide that transferred funds were the proceeds of it.  The non-U.S. accounts include accounts associated with North Korean and Chinese actors.

Knoot is charged with conspiracy to cause damage to protected computers, conspiracy to launder monetary instruments, conspiracy to commit wire fraud, intentional damage to protected computers, aggravated identity theft and conspiracy to cause the unlawful employment of aliens. If convicted, Knoot faces a maximum penalty of 20 years in prison, including a mandatory minimum of two years in prison on the aggravated identity theft count.

Under the Department-wide “DPRK RevGen: Domestic Enabler Initiative,” launched in March 2024 by the National Security Division and the FBI’s Cyber and Counterintelligence Divisions, Department prosecutors and agents are prioritizing the identification and shuttering of U.S.-based “laptop farms” — locations hosting laptops provided by victim U.S. companies to individuals they believed were legitimate U.S.-based freelance IT workers — and the investigation and prosecution of individuals hosting them. Today’s announcement follows successful action taken by the Department in October 2023 and May 2024, which targeted identical and related conduct.

The FBI is investigating the case.

Assistant U.S. Attorney Josh Kurtzman for the Middle District of Tennessee and Trial Attorney Greg Nicosia of the National Security Division’s Cyber Section are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Security News: Two Iranian Nationals and One Pakistani National Indicted for Providing Material Support to Terrorists

Source: United States Department of Justice 2

Note: View the superseding indictment here

A superseding indictment was returned yesterday charging two Iranian citizens, brothers Shahab Mir’kazei (Shahab) and Yunus Mir’kazei (Yunis), and one Pakistani citizen, Muhammad Pahlawan, for conspiring to provide and providing material support to Iran’s weapons of mass destruction program resulting in death and conspiring to commit violence against maritime navigation and maritime transport involving weapons of mass destruction resulting in death. Pahlawan is currently awaiting trial, while Shahab and Yunus remain at large.

According to the court documents, Shahab and Yunus work for Iran’s Islamic Revolutionary Guard Corps. Pahlawan, is a Pakistani citizen who allegedly worked for the Mir’kazei brothers as the captain of a smuggling vessel known as a dhow, named the “Yunus,” which is owned by Shahab.

Pahlawan allegedly worked with Shahab to prepare the dhow for multiple smuggling voyages, and Shahab paid Pahlawan in Iranian Rials from a bank account in Shahab’s name. Pahlawan allegedly arranged to receive payments from Shahab and Yunus in Iran and distribute the money to his family and others.

On the night of Jan. 11, U.S. Central Command Navy forces operating from the USS LEWIS B. PULLER, including Navy SEALs and members of the U.S. Coast Guard, boarded the dhow off the coast of Somalia. Two Navy SEALs lost their lives during the interdiction.

As alleged, the U.S. boarding team encountered 14 individual mariners on the vessel, including Pahlawan. During a search of the dhow, the U.S. boarding team allegedly located and seized what is believed to be Iranian-made advanced conventional weaponry. Preliminary analysis of the advanced conventional weaponry indicates that it includes critical components for medium range ballistic missiles and anti-ship cruise missiles, including to include a warhead and propulsion and guidance components. The type of weaponry found aboard the dhow is allegedly consistent with the weaponry used by the Houthi rebel forces in recent attacks on merchant ships and U.S. military ships in the Red Sea and Gulf of Aden.

In addition to the charges described above, Pahlawan is charged with providing materially false information to U.S. Coast Guard officers during the boarding of the dhow regarding the vessel’s captain and witness intimidation for threatening one of the crewmembers on the dhow.  

If convicted, Pahlawan, Shahab and Yunus all face maximum penalties of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia and Executive Assistant Director Robert Wells of the FBI’s National Security Branch made the announcement.

Assistant U.S. Attorneys Troy A. Edwards Jr. and Gavin R. Tisdale for the Eastern District of Virginia and Trial Attorney Lesley Woods of the National Security Division’s Counterterrorism Section are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Defense News: SECNAV Del Toro Delivers Remarks at the Future Warfighting Symposium

Source: United States Navy

Good afternoon, everyone!

Thank you, Rear Admiral Garvin, for inviting me to speak to this group of rising in-resident students at the Naval War College and for your incredible leadership at this bastion of military education and strategy.

To all of our general officers, flag officers, senior enlisted leaders, distinguished visitors, guests, and students: welcome, and thank you for joining us today.

I am grateful to be here with you, to speak at the Future Warfighting Symposium.

And I believe this year’s theme—“Navigating the Future: A Summit of Geopolitical Risks”—is particularly apt here and now at the Naval War College.

To remain competitive in today’s age of conflict, we must leverage every advantage available to us.

And we are laser-focused on the future of warfighting because of the uncertainty and challenges we face in the world today.

We need you, our warrior scholars, at the tip of the spear, because we face existential threats and challenges in every corner of the globe.

In Europe, Russia is well into the third year of its full-scale and illegal invasion of Ukraine.

Last month, we and our NATO allies gathered in Washington to re-affirm our commitment to our Ukrainian partners.

Ukraine is fighting not just for their own liberty and freedom—they are fighting to protect democracy in Europe and indeed around the world.

We are proud to stand beside them in support of their just and noble cause.

For the first time since World War II, we face a comprehensive maritime power—our pacing challenge—in the Indo-Pacific.

The People’s Republic of China continues to exert its excessive maritime claims through their navy, coast guard, and maritime militia.

And the PRC is observing lessons from the ongoing conflicts in Europe and the Red Sea.

In the Red Sea and Gulf of Aden, we continue working alongside our NATO allies and Middle East partners to protect innocent, civilian mariners and commercial shipping against Iranian-aligned Houthi attacks.

Immediately following the October 7th attacks in Israel, our Navy and Marine Corps were on station, a ready integrated force capable of responding to any threat.

Our ships and aircraft deterred and defeated missiles and drones which threatened innocent maritime shipping—Carney, Mason, Gravely, Laboon, Thomas Hudner, and Eisenhower—these ships’ exemplary performance under fire calls back to their namesakes’ warfighting legacies.

Carrier Air Wing Three—our “Battle Axe”—deployed over sixty air-to-air missiles and over 420 air-to-surface weapons in defense of civilian mariners in the Red Sea.

And Bataan Amphibious Ready Group with embarked 26th Marine Expeditionary Unit deterred hostile Houthi attacks against innocent ships and helped prevent the conflict from spreading throughout the region.

These warfighters earned the Navy Unit Commendation and Combat Action Ribbon that I awarded to them earlier this year.

My wife Betty and I had the honor and privilege to welcome the Eisenhower Carrier Strike Group and Bataan ARG when they returned home this year.

Seeing all of the families and friends on the pier for our Sailors and Marines underscored the integral role our families play in our armed forces.

We could not do this job without them.

And because of their support, our Navy and Marine Corps Team serves as a powerful testament of our Nation’s commitment to our allies and partners in Europe, the Middle East, and Indo-Pacific regions.

Last fall, at Harvard University’s John F. Kennedy School of Government, I announced my vision for a new Maritime Statecraft to prevail in an era of intense strategic competition.

Maritime Statecraft encompasses not only naval diplomacy and maritime competition, but a national, whole-of government effort to build comprehensive U.S. and allied maritime power, both commercial and naval.

Maritime Statecraft depends not only on a strong Navy and Marine Corps, but also active engagement in areas of economic development, trade, education, science, innovation, and climate diplomacy to enable us to compete on a global scale.

A key tenet of Maritime Statecraft is the recognition that no great naval power has long endured without also being a commercial maritime power.

Making naval shipbuilding more cost effective requires we restore the competitiveness of U.S. commercial shipping and shipbuilding, which began to decline in the 1980s.

This is why I have been working outside the lifelines of the Department, meeting with cabinet leaders across this administration to build awareness and advocate that long-term solutions to many of the Navy’s challenges require we renew the health of our nation’s broader seapower ecosystem.

This past year, I drove the creation of the Government Shipbuilder’s Council, which brings us together with MARAD, Coast Guard, NOAA, and yes, even the Army, to tackle common challenges in ship construction and maintenance.

We have catalyzed multiple White House-led interagency processes on both naval and commercial shipbuilding, bringing together the National Security Council, National Economic Council, and Departments across the Executive Branch. 

And my team is working with partners in Congress to reinvigorate existing but unfunded authorities and craft new incentives to build and flag commercial ships in the United States.

We expect these efforts will offer significant returns to Navy shipbuilding and sealift.

And Maritime Statecraft has gone global.

In February, I traveled to the Republic of Korea and Japan where I met with top executives of some of the world’s most technologically advanced and prolific dual-use commercial and naval shipyards. 

These companies are recognized leaders of the global shipbuilding industry, and their presence in the United States could introduce new competitive dynamics, renowned innovation, and unrivaled industrial capacity within the domestic shipbuilding market.

During each of these engagements, I brought to the table a simple, yet profound opportunity and message: invest in America.

In June, Hanwha announced they had reached an agreement to purchase the Philly Shipyard. Hanwha’s intent is to expand the yard’s facilities, update its technology, double the size of the workforce, and quadruple the output to compete for both commercial and naval shipbuilding contracts.

I am hopeful that Hanwha will be just the first of many world-class shipbuilders to come to America and take part in our country’s maritime renaissance.

Maritime Statecraft is a means, and maritime dominance is the ends.

Tomorrow marks my third anniversary as Secretary of the Navy, and it has been the honor of my life to serve alongside the nearly one million Sailors, Marines, and Department of the Navy civilians who serve our great Nation.

When I first came into office, I laid out my vision for the Department of the Navy through three Enduring Priorities. They are:

  • Strengthening Maritime Dominance,
  • Building a Culture of Warfighting Excellence, and
  • Enhancing Strategic Partnerships.

These priorities serve as the basis for all that we do in the Department.

To fight and decisively win our Nation’s wars, we cannot rely on merely maintaining our seapower—we must strengthen our maritime dominance.

While we work to expand our shipbuilding capacity, we are also focusing significant attention on innovations that will make our current fleet more formidable.

This is why I have prioritized fielding the Transportable Re-Arming Mechanism (TRAM), which will provide our surface combatants with a game-changing capability to reload their Vertical Launch Systems while underway in open ocean.

TRAM offers us an achievable, near-term deterrent that will disrupt the strategic calculus of those who would do us harm.

Last month, Naval Surface Warfare Center, Port Hueneme Division successfully conducted the first land-based demonstration of TRAM, a key milestone leading up to the at-sea demonstration which I have directed to take place in the fall.

We have the best engineers in the Navy making this capability real. I am incredibly proud of that team for their efforts to meet the aggressive timeline that I have set to field TRAM across the fleet.

No longer will our warships need to withdraw from combat for extended periods to reload in port.  Our surface force has proved itself in battle in the Red Sea.  Now, by enabling our combatants to refill their magazines underway, TRAM offers us a powerful near-term deterrent that will disrupt the strategic calculus of those who would do us harm.

And next week, we will take another logistical innovation to sea. The Modular CONSOL Adapter Kit, or MCAK, will enable commercial tankers to help sustain our fleet in forward areas.  And it can be installed on any tanker in the world in just 36 hours.

By leveraging our advantage in connected underway replenishment, these advances effectively increase the size and combat power of our fleet—a prospect that should give any would-be aggressor pause.

This is what strengthening maritime dominance looks like.

And being the dominant Navy we are, we have not stopped there. We continue to use emerging and next-generation technologies to further our warfighting superiority.

The Hybrid Fleet is no longer simply just a concept—it is a reality.

Shortly after I took office as Secretary of the Navy, we launched Task Force 59, and over a year ago, it reached full operational capability.

The work accomplished by Task Force 59 in the Fifth Fleet, in concert with our allies and partners in the region, have laid the groundwork for future unmanned operations around the world—including as an integrated crewed and uncrewed force in Fourth and Seventh Fleets.

And just as the Navy and Marine Corps protect sealines of communication and commerce, we also protect the cyber domain to contest malicious cyber actors.

Last year, I released the first-ever Department of the Navy Cyber Strategy which outlined my priorities for cyberspace. We must project power in and through cyberspace. My Principal Cyber Advisor and Chief Information Officer are hard at work overseeing the strategy’s implementation and strengthening our cyber posture—and we are already seeing results.

Our people are the foundational strength of this Department, and they provide us competitive warfighting advantage over our adversaries.

Our priority of building a culture of warfighting excellence is founded on strong leadership that is rooted in treating each other with dignity and respect—creating an environment in which our Sailors and Marines can realize their inherent potential.

It includes not only taking care of our people, but also maximizing education opportunities, cultivating research, development, science, and technology.

This year, the Abraham Lincoln Carrier Strike Group executed the first Integrated Air Defense Course in the new Integrated Training Facility in Fallon, Nevada, a revolution in virtual-constructive training facilities.

Because of the foundational training provided by the tacticians at the Surface and Mine Warfighting Development Center and the Naval Aviation Warfighting Development Center, our forces excelled under intense combat situations.

And the cutting-edge technology at these facilities could not exist without the research, development, and education to support them.

Education is a critical warfighting enabler, providing our Sailors, Marines, and civilians the tools necessary to succeed.

Last year, I released my Naval Education Strategy, which outlined the ways in which we will use education for future force readiness and competitive advantage.

Throughout our lines of effort, we are making strides to implement a learning continuum for the entire force, integrate education into talent management frameworks for more precise and agile talent management, and strengthen the Naval University System.

We have increased investments in the NUS—the Naval War College, United States Naval Academy, ROTC programs, Marine Corps University, Naval Postgraduate School, and the United States Naval Community College—to foster the intellectual edge needed to prevail in peace or war.

Our Marine Corps launched the Marine Innovation Unit, which leverages the skillsets of our talented Marine reservists to find solutions and accomplish engagements integral to our warfighting future.

And this initiative directly supports the Marine Corps’ Force Design modernization efforts—ensuring our ability to fight a peer adversary on the modern battlefield.

Last September, I stood up the Science and Technology Board, with the intent that the board provide independent advice and counsel to the Department of the Navy on matters and policies relating to scientific, technical, manufacturing, acquisition, logistics, medicine, and business management functions.

And this year, I released our new Naval Science and Technology Strategy, guiding our Navy and Marine Corps’ innovation initiatives and science and technology research efforts during this decisive period.

Our Department prioritizes people first and foremost—because people are our greatest strength and force resilience begins and ends with them.

Last year, I directed the immediate implementation of the Brandon Act, which honors the life of Petty Officer Third Class Brandon Caserta, who tragically died by suicide in 2018. The Brandon Act allows service members to seek confidential help for any reason, at any time, and in any environment.

This act helps remove the stigma from seeking help for mental health and improves access to mental health care for service members—something we all as leaders simply must be invested in.

Building a culture of warfighting excellence crucially encompasses learning from the past and righting historic wrongs.

Last month, I had the opportunity and obligation to correct a historic injustice and place the Department of the Navy on the right side of history.

Port Chicago Naval Magazine, approximately 25 miles from San Francisco, served a critical role in supporting combat operations in the Pacific Theater.

On the evening of July 17th, 1944, munitions being loaded onto the S.S. E.A Bryan detonated, killing 320 Sailors, Coast Guardsmen, civilians, and others—and inuring an additional 390.

Over 200 of these fallen heroes were African American Sailors, many of their bodies torn to pieces because of the explosion.

258 surviving Sailors, traumatized by the blast, unsafe working conditions, lack of training, and fearful for their lives, were charged with refusing to continue loading munitions under said conditions.

After officials threaten these Sailors with disciplinary action, 208 of the Sailors returned to work. The remaining 50 Sailors continued to refuse to return to work and were charged with mutiny.

This act was known as the Port Chicago Mutiny, and the 50 Sailors were known as the Port Chicago 50.

While every Sailor serving at the Port Chicago Naval Magazine had chosen to serve, the subsequent General and Summary Courts-martial labeled those 258 Sailors as criminals.

Upon the comprehensive review of these courts-martial and advice of the General Counsel, I made the decision—inherent within my authorities as Secretary of the Navy dating to the laws of the time—to set aside the courts-martial results of all 258 Sailors convicted as part of the Port Chicago incident.

This decision clears their names, restores their honor, and acknowledges the courage they displayed in the face of immense danger.

While long overdue, this is the justice these Sailors—our people—deserve.

To be the most effective fighting force, our Navy and Marine Corps is enhancing strategic partnerships across the Joint Force, industry, academia, and with our allies and partners around the globe.

Last month, alongside officials from the Office of the Secretary of Defense and Michigan Governor Gretchen Whitmer, we announced the Michigan Maritime Manufacturing Initiative (M3), a federal, state, and local partnership to help rebuild the maritime industrial base workforce that the Navy needs.

We have partnered with Michigan’s Macomb [muh-COAM] and Oakland Community Colleges to focus on ship and submarine production skillsets.

To tackle the critical need to advance shipbuilding research and design, our Office of Naval Research recently funded a 14-million-dollar Center for Naval Research and Education at the University of Michigan.

We are also excited to have just facilitated a new educational partnership with the University of Michigan, Seoul National University, and HD Hyundai Heavy Industries.

America was once a nation which led the world in shipbuilding.

And with the efforts of Americans across the country, we will restore our status as a leading shipbuilding nation once more.

The Naval War College is a national treasure. There is no institution better suited to build the intellectual foundation of maritime statecraft. It is in your DNA.

Luce, Mahan, Sims—icons of this institution—changed the world with revolutionary works on sea power. They recognized then, as now, that for the United States, maritime strategy is grand strategy.

Extraordinary thought leadership here in Newport made the nation a global power at the dawn of the 20th Century. 

In China, we face a full spectrum global maritime power for the first time in over a century. Today’s intense strategic competition demands a renaissance in America’s maritime power. And this institution must lead it once again.

I am grateful for Rear Admiral Garvin’s leadership organizing multiple conferences on Maritime Statecraft.

One of the most important outcomes of the recent Current Strategy Forum is the development of a set of research questions to inspire new original work by faculty and students.

I again emphasize that no great naval power has long endured without also being a maritime power. 

For the last forty years we have sought to defy that maxim—completely outsourcing our commercial shipping and shipbuilding to other countries. 

Is that still tenable today? When 99.6% of our seaborne commerce travels on foreign flagged ships what are the risks to our economy in times of crisis?

All of you in the audience today have a tremendous opportunity to lead the way on groundbreaking research we need to guide our actions and policies.

In case I have left it unclear, I can assure you that my staff and I will be avid readers of your work.  

We not only have it in our power, but in our charge to change the course of history once again. 

As I said before, it is the honor of a lifetime to serve alongside you as the 78th Secretary of the Navy.

May God bless our service men and women and all those to support them. Thank you.