CRIMINAL CAPITALI$M
N.Y. Supreme Court orders Trump Organization to pay $1.6 million in fines

A New York Supreme Court judge on Friday ordered the Trump Organization to pay $1.6 million in criminal penalties for its conviction on tax fraud and other claims. 

File Photo by John Angelillo/UPI | License Photo

Jan. 13 (UPI) -- A New York Supreme Court judge on Friday ordered the family real estate business of former President Donald Trump to pay $1.6 million in criminal penalties for its conviction on tax fraud and other claims.

The Trump Organization's two subsidiaries, The Trump Corp. and The Trump Payroll Corp., were both sentenced to the maximum possible fines under New York laws after the court convicted the Trump Organization in December for dishing out off-the-books perks to some of its top executives to escape taxes.

"Today, former President Trump's companies were sentenced to the maximum fines allowed by law following historic convictions for a total of 17 felony crimes," Manhattan District Attorney Alvin L. Bragg, Jr., said in a statement." Chief Financial Officer Allen Weisselberg, The Trump Corporation, and The Trump Payroll Corp. conducted and benefitted from sweeping fraud for well over a decade."

Trump's lawyers sought a diminished penalty, blaming accounting firms Mazars USA for failing to stop the wrongdoing and Weisselberg for carrying out the scheme without the intent to benefit the company.

Joshua Steinglass, a prosecutor in the Manhattan district attorney's office, argued the company carried out "a multidimensional scheme to defraud the tax authorities."

"To avoid detection, they simply falsified the records," he said. "This conduct can only be described as egregious."

Weisselberg, pleaded guilty to charges including grand larceny, criminal tax fraud, conspiracy, falsifying business records and offering a false instrument for filing and was sentenced to five months at the Rikers Island jail complex on Tuesday.

RELATED  Reports: Justice Dept. asks judge to hold Trump in contempt over classified records

Prosecutors claimed Weisselberg received more than $1.7 million in off-the-books compensation over more than a decade, including rent payments on luxury apartments, home furnishings, Mercedes Benz cars, parking garage expenses and private-school tuition payments for his grandchildren.

Bragg on Friday also called for the state to change the allow to allow for "more significant penalties and sanctions" on companies.

"While corporations can't serve jail time, this consequential conviction and sentencing serve as a reminder to corporations and executives that you cannot defraud tax authorities and get away with it," he said.

New York Attorney General Letitia James, whose office is leading a civil probe into the Trump Organization, praised the ruling on Twitter.

"This sentencing proves once again that no one is above the law, not even Donald Trump or his business," she wrote.

CRYPTO CRISIS IS CAPITALI$T CRISIS

Crypto.com announces it will lay off 20% of workforce

Crypto.com announced layoffs Friday as the broader cryptocurrency industry reels following the collapse of FTX. 

 Photo by Maxim Shipenkov/EPA-EFE

Jan. 13 (UPI) -- Crypto.com, one of the most prominent cryptocurrency exchanges, announced Friday it was laying off 20% of its workforce in what appears to be more evidence of the meltdown of the industry.

The retail-focused exchange that grew the be the third-largest cryptocurrency exchange by the size of employees, said the unforeseen collapse of fellow crypto exchange FTX led to the decision to reduce its workforce.

"It's for this reason, as we continue to focus on prudent financial management, we made the difficult but necessary decision to make additional reductions in order to position the company for long-term success," Kris Marszalek, co-founder and CEO of Crypto.com said in a statement to employees.

Marszalek said the company "grew ambitiously at the start of 2022" and built on "incredible momentum that aligned with "the trajectory of the broader industry."

THE NEGATION OF THE NEGATION 

"That trajectory changed rapidly with a confluence of negative economic developments," he said, adding that reductions the company made last July positioned it to "weather the macro-economic downturn" but did not account for the collapse of FTX, which "significantly damaged trust in the industry."

In November, crypto exchange FTX filed for bankruptcy and its founder and former CEO Sam Bankman-Fried, now faces eight charges connected to alleged multibillion-dollar fraud. scheme.

Earlier this week, Coinbase, the first cryptocurrency trading platform to go public, said it is laying off more than 900 workers, blaming "market conditions."

RELATED SEC charges crypto firms Genesis, Gemini with selling unregistered securities

"The entire senior leadership team and I remain as confident as ever in our mission and vision at Crypto.com, along with our unique position within the industry as the leader in regulatory compliance, security and privacy," Marszalek said.

"We have a significant year ahead of us as we continue to help restore trust in our industry and further mainstream our services in markets around the world. I am confident in our ability to build and lead the market, and I am grateful to work with you all on the journey ahead."

RELATED Coinbase to pay $100 million in fines, compliance improvements

Senators demand Southwest Airlines answers for 'holiday meltdown'

Sen. Ed Markey, D-Mass., and Sen. Elizabeth Warren, D-Mass., were two of 15 senators that sent a letter Friday to the CEO of Southwest Airlines demanding answers to what caused its “holiday meltdown" in December, which included thousands of canceled flights. 

Bonnie Cash/UPI | License Photo

Jan. 13 (UPI) -- A group of senators sent a letter Friday, demanding answers from Southwest Airlines over its "holiday meltdown" which included thousands of canceled flights.

Sen. Edward Markey, D-Mass., and Sen. Richard Blumenthal, D-Conn., co-authored the letter to the airline's CEO Robert E. Jordan, which was also signed by 12 other Democrats as well as Sen. Bernie Sanders, I-Vt. after Southwest struggled to get back online in the wake of a major winter storm and continued staffing shortages that left tens of thousands of passengers and luggage stranded during the busy holiday weekend.



"For consumers across the country, this failure was more than a headache -- it was a nightmare," the senators wrote. "Travelers were stranded across the country for days at a time, forced to spend hours on hold with Southwest customer service representatives or in-line at Southwest service desks at the airport...The airline must examine the causes of this disaster and ensure it never happens again."

They noted that all other major airlines canceled slightly more than 1,000 flights combined, while Southwest canceled more than 7,500 flights between Dec. 27 and Dec. 29, at one point axing more than 86% of its scheduled domestic flights.

"Although winter storm Elliott disrupted flights across the country, every other airline operating in the United States managed to return to a regular flight schedule shortly thereafter -- except Southwest. Southwest must take all necessary steps to ensure that this debacle never happens again," the senators wrote.

The senators went on to list a number of specific questions about the company's outdated scheduling software, personnel decisions, ticket refund policies, passenger baggage decisions, and shareholder compensation.

They gave Jordan until Feb. 2 to provide answers on what led to the massive number of flight delays and cancellations in the final week of December.

RELATED As domestic U.S. flights normalize, FAA says ground stop was caused by corrupt file

Earlier this month, the Southwest Airlines Pilots Association blasted the airline's handling of the holiday season meltdown that saw more than 15,000 flights canceled due to a system failure.

The company expects the meltdown will cost it between $725 million and $825 million in the fourth quarter.

DHS to allow non-citizens to report labor violations without fear of retaliation

U.S. Department of Homeland Security Secretary Alejandro Mayorkas said that non-citizens will now be able to report labor violations without fear of retaliation. 

File Photo by Cristobal Herrera-Ulashkevich/UPI | License Photo

Jan. 13 (UPI) -- The Department of Homeland Security said on Friday that non-citizen workers will now be able to report labor violations without having their immigration status held against them.

DHS will use the deferred action authority it has that gives non-citizens the ability to work in the United States. Deferred actions protects those workers from retaliation by exploitive employers.

"Unscrupulous employers who prey on the vulnerability of non-citizen workers harm all workers and disadvantage businesses who play by the rules," Secretary of Homeland Security Alejandro N. Mayorkas said in a statement. "We will hold these predatory actors accountable by encouraging all workers to assert their rights, report violations they have suffered or observed, and cooperate in labor-standards investigations. Through these efforts, and with our labor agency partners, we will effectively protect the American labor market, the conditions of the American worksite, and the dignity of the workers who power our economy."

Non-citizen workers are often reluctant to report non-payment of wages, unsafe working conditions and other unlawful conditions because of a fear of punishment.

DHS is also streamlining the intake process for these violations by allowing non-citizens to submit such requests to U.S. Citizenship and Immigration Services. The agency will also provide additional security to some workers who report violations.

MR. NICE GUY

Former Russian President Medvedev suggests Japanese PM should disembowel himself

GUESS THAT'S NYET TO SHARING SAKHALIN ISLAND

Former Russian President Dmitry Medvedev suggested that Japanese Prime Minister Fumio Kishida should disembowel himself. 

File Photo by Yuri Gripas/UPI. | License Photo

Jan. 14 (UPI) -- Former Russian President Dmitry Medvedev suggested that Japanese Prime Minister Fumio Kishida should disembowel himself as he accused the leader of shameful subservience to the United States.

Medvedev serves as deputy chairman of Russia's Security Council and is considered a prominent ally of President Vladimir Putin.

His comments came after a meeting Friday between Kishida and President Joe Biden, where the two leaders issued a joint statement saying "We state unequivocally that any use of a nuclear weapon by Russia in Ukraine would be an act of hostility against humanity and unjustifiable in any way."

Medvedev said that statement showed paranoia" towards Russia and "betrayed the memory of hundreds of thousands of Japanese who were burned in the nuclear fire of Hiroshima and Nagasaki." He then suggested that Kishida should commit seppuku - a form of suicide by disembowelment.

Medvedev has become increasingly hawkish since Russia's invasion of Ukraine and has even referred to Ukrainian's as "cockroaches."

Kishida has not responded to the comment.

https://www.newsweek.com/russia-arctic-wrangel-island-ukraine-seized-1760023

U.S. Could Take Back Remote Island Seized by Russia Nearly 100 ... 

Nov 16, 2022 ... Wrangel Island is 270 miles northwest of Cape Lisburne, Alaska, in the Arctic Ocean in Russia's far east, between the Chukchi Sea and East ...

WAR CRIME
Russian missile hits Dnipro apartment block, kills at least 21

Rescue teams work among the rubble of a damaged residential building hit by shelling in Dnipro, southeastern Ukraine on Saturday into Sunday. Photo by Sergey Kozlov/EPA-EFE

Jan. 15 (UPI) -- A Russian missile strike that hit an apartment block in the south-central Ukrainian city of Dnipro killed at least 21 people and rescuers worked through the night into Sunday morning looking for survivors.

Officials said the Dnipro attack is the latest example of Moscow's focus on civilian targets in their 11-month invasion of Ukraine. Rescuers said about 40 people are still missing in the attack but one woman was pulled from the rubble.

Kyrylo Tymoshenko, deputy head of the Office of the President of Ukraine, said at least 73 people were injured when the missile struck the nine-story building, destroying it. Some 400 people were left homeless in the attack.

"We are fighting for every person, every life," Ukrainian President Volodymyr Zelensky said in a nightly news address after the attack.

Officials said on Sunday that missiles and explosions were heard across Ukraine, including Lviv in the west, Kharkiv in the northeast, Zaporizhzhia in the southeast and Myokaliv in the south.

Explosions were heard in the Ukrainian capital of Kyiv at about 6 a.m. local time. Kyiv Mayor Vitaliy Klitschko said strikes hit the city's east bank, where several power facilities were located, but it was not clear if the rockets hit their targets.

The latest attacks placed much of Ukraine again under an emergency blackout after missiles hit power infrastructure in several cities.

GREEN  CAPITALI$M

Village Farms supplants Tilray as top Canadian pot producer: CIBC

By David George-Cosh

BNNBloomberg

CIBC Analyst John Zamparo wrote in a report on Wednesday that Village Farms jumped to the top spot in the country’s cannabis producer ranks from its prior standing in third place after data provider Hifyre changed its methodology of how it accounts for sales in Quebec.

Village Farms now has a 7.8 per cent share of the country’s cannabis sales, while Tilray saw its ranking slip to second place with a 7.3 per cent share and Calgary -based Decibel Cannabis Company Inc. now sits in third with a 6.5 per cent share.

Hexo Corp. and Organigram Holdings Inc. round up the rest of the top five producers, according to Zamparo. Notably, Canopy Growth Corp. fell to eighth place with a 4.3 per cent share despite having the largest amount of cash on hand in the industry with $1.1 billion, and was once the top-selling producer in Canada when cannabis was legalized more than four years ago.

Quebec represents about 13 per cent of all cannabis sales in Canada, a figure that analysts believe is constrained given the lower store count relative to other provinces as well as rules restricting the sale of popular products like edibles and vapes, but Zamparo still sees the new calculation employed by Hyfire in aggregate to be reliable.  

“Hifyre's data for Quebec previously used—and still uses—extrapolations, but the data firm now also receives feedback directly from producers, which Hifyre believes provides a more accurate representation,” Zamparo wrote in a report. “For now, the new method leads to a material change in output, with [Village Farms] ranking as the nation’s top seller.”

Zamparo found that only five Canadian cannabis producers saw monthly sales gains in December, yet another sign of how volatile and hypercompetitive the domestic industry has become.

Cronos Group Inc. and Decibel both posted double-digit monthly sales increases in December, while Auxly Cannabis Group, Hexo and the newly-merged BZAM/The Green Organic Dutchman Holdings Ltd. also increased their sales activity last month.

The report also highlighted how cannabis producers will increasingly have to “stand on their own” and generate positive free cash flow to fund operations or rely on existing cash reserves, as access to capital has dried up following the failure of the U.S. Congress to pass meaningful cannabis-related legislation including the SAFE Banking Act.

“Although valuations are almost certainly attractive relative to recent months and quarters, we do not believe investor demand exists to absorb the typical cannabis equity deal,” Zamparo said.

According to Zamparo’s analysis, only Tilray and Decibel were the Canadian operators that generate positive free cash flow although both operators have debt figures that are substantially higher than the cash they have on hand. Cronos, Aurora Cannabis Inc. and Organigram were the only three Canadian companies that currently have more cash on hand than debt on their balance sheet, while no U.S. cannabis producer is in a net positive cash position.

Tilray CEO 'frustrated' with 'slow' march toward U.S. legalization, reports Q2 loss

Tara Deschamps, The Canadian Press

Tilray Brands Inc. reported a second-quarter net loss of US$61.6 million in its most recent quarter as it temporarily slowed cannabis production because of the "longer-than-anticipated march toward legalization" in some markets.

Among the markets whose timing is hampering the Leamington, Ont. pot company is the U.S., where its chief executive said, "we do not expect (legalization) to happen at any time in the near future."

"In the U.S., participation in the adult-use cannabis market has always been very important to us and integral to our long-term strategy," Irwin Simon told analysts on a Monday call.

"However, as long as cannabis remains federally illegal in the U.S. we will not engage directly in business that touch the cannabis plant to fully optimize the value and strength of our U.S. business."

Cannabis is legal for medical purposes in about 39 states and for recreational use in 19, including D.C. However, federal law still considers it a Schedule I controlled substance with high risk of abuse and no accepted medical use, placing it in a group with harder drugs like heroin, LSD and peyote.

But last year U.S. President Joe Biden revealed he will pardon people convicted under federal law of possessing cannabis and review the status of pot as a Schedule 1 substance.

The U.S. has also seen discussion around the Safe Banking Act, a Democratic bill with some Republican support that would allow financial institutions to work with cannabis companies without retribution, and the Marijauana Opportunity Reinvestment and Expungement (MORE) Act, which would pave the way for federal legalization.

"I'm frustrated that legalization, whether it's Safe Bank, whether it's MORE Act, whether it's descheduling, nothing has happened within cannabis," said Simon.

Yet even talk of such moves has spurred excitement at cannabis companies like Tilray, Canopy Growth Corp. and Aurora Cannabis Inc.

They have long been purchasing stakes in U.S. brands in anticipation that the U.S. would loosen its cannabis regulations and legalize pot on a federal basis.

Germany is also on these companies' radar.

Olaf Scholz, the country's chancellor, said in October that Germany would become one of the first places in Europe to achieve legalization and his health minister has since presented outlines of potential regulation.

Simon feels Russia's 2022 invasion of Ukraine has held up Germany's plans as the battle between the two countries triggered energy troubles and further fueled inflation.

"I'm sure if Ukraine didn't happen, Germany might be legal today, but we're ready and will be ready," he said.

Simon's remarks came as he announced Tilray's US$61.6 million second quarter net loss, which compared with net income of nearly US$5.8 million in the same quarter a year earlier.

The cannabis company, which keeps its books in U.S. dollars, said the loss amounted to 11 cents per diluted share for the three months ended Nov. 30 compared with net income of zero cents per diluted share a year earlier.

Net revenue for the quarter totalled US$144.1 million, down from nearly US$155.2 million in the same quarter last year.

The results came as Tilray's cannabis business reported US$49.9 million in revenue, down from US$58.8 million in the same quarter last year, while its distribution business saw revenue of US$60.2 million compared with US$68.9 million a year ago.

To offset the competitive nature of Canada's recreational cannabis market, which has seen a race for lower prices and an oversaturation of stores in some regions like Toronto, the company has also focused on beverages.

Tilray has a roster of alcohol and beverage brands, which include Montauk Brewing Company, SweetWater Brewing Company, Alpine, Green Flash and Breckenridge Distillery.

"All the major alcohol companies have an eye on cannabis, no different than the tobacco companies," said Simon. "So with that, if I today can't do anything in the U.S. and have to sit there, why not get bigger into some of these craft brewers like a SweetWater, like a Montauk, like a Breckenridge?"

Tilray's beverage alcohol business had US$21.4 million in revenue, up from US$13.7 million last year, and its wellness business revenue totalled nearly US$12.7 million, down from US$13.8 million a year ago.

On an adjusted basis, Tilray said it had a net loss of US$35.3 million or six cents per diluted share in its latest quarter compared with an adjusted net loss of US$38.8 million or eight cents per diluted share a year earlier.

The results pushed Tilray's stock to close the day down by eight per cent or 32 cents at $3.64.

Alberta Investment hires ex-Goldman banker David Scudellari as foreign chief

Layan Odeh, Bloomberg News
Jan 9, 2023

Alberta Investment Management Corp. hired David Scudellari as head of international investment and to lead a credit partnership with another large Canadian pension fund.

Scudellari will oversee foreign expansion, credit and private debt, and management of key external relationships, according to a statement Monday. He’ll also act as vice-chair of Aimco’s investment committee. 

“We’ve been rebuilding our executive team. David represents kind of the last arrow on our quiver,” Aimco Chief Executive Officer Evan Siddall said in an interview. Scudellari will be based in New York as part of the manager’s plan to gain access to more deals outside of Canada.

Aimco, which invests on behalf of 32 pension, endowment and government funds in the oil-rich Canadian province, named Siddall as its CEO in 2021 after it lost $2.1 billion on a bet against market volatility that blew up when the COVID pandemic hit. Siddall has since overhauled the executive team, hiring a new chief risk officer, a technology officer and recently tapping Marlene Puffer as chief investment officer.

CREDIT PACT

Aimco is also forming a partnership with Canada’s Public Sector Pension Investment Board to invest in loan transactions sourced by PSP, allowing both pension funds to grow their credit portfolios, according to a joint statement.

Scudellari — who spent 23 years at Goldman Sachs, according to his LinkedIn profile — had worked at PSP since 2015, most recently as global head of credit and private equity, before accepting the Alberta job.

Aimco will be able to take advantage of PSP’s team as “we continue to build our own capabilities and our scale will help them continue to source the deals,” Siddall said. “David knows those people, he knows their processes, he knows how to diligence things.”

The Alberta fund has $6.1 billion in private credit assets; PSP has nearly $22 billion.

Private credit has grown rapidly into a US$1.4 trillion asset class, becoming a magnet for investors searching for higher yields and for companies and buyout firms that need to borrow and are unable to tap banks.

“This partnership with Aimco puts together two like-minded, long-term principal investors that can address this exciting market opportunity,” Deborah Orida, PSP’s new CEO, said by phone. The Montreal-based fund could do more with Aimco or other pension plans in the future, she added.

NEW APPOINTMENTS

PSP elevated two senior executives to lead credit and private equity investments following Scudellari’s departure.

Oliver Duff will take on the role of global head of credit investments, while Simon Marc will lead private equity and strategic partnerships, according to statement.

PSP manages pension money for Canadian federal civil servants, the military and police force and had C$230.5 billion of net assets under management as of March 31. 

West Fraser Timber to indefinitely curtail Florida sawmill

The Canadian Press

Jan 10, 2023

West Fraser Timber Co. Ltd. says it will indefinitely curtail its Perry Sawmill in Florida later this month due to high fibre costs and softening lumber markets.

The Vancouver-based company said in a press release that the indefinite curtailment will affect around 126 employees.

However, West Fraser says it will try to mitigate the effect on workers by providing work opportunities at other West Fraser operations.

It says the curtailment will reduce the company's U.S. lumber production by 100 million board feet.

The company says high fibre costs and a low-price commodity environment have impaired its ability to operate the sawmill profitably.

It says it anticipates an impairment charge in the fourth quarter of 2022 associated with the curtailment.

 LCBO continues to investigate cybersecurity incident; site and mobile app still down

The Canadian Press

Jan 11, 2023

The Liquor Control Board of Ontario says it is continuing to investigate a "cybersecurity incident" that has knocked out its website and mobile app since Tuesday. 

The provincial Crown corporation says in a brief statement on Wednesday that its website and mobile app remain unavailable.

The LCBO says its shops are open to customers as they were unaffected. 

The latest incident comes as Toronto's Hospital for Sick Children continues to recover from a December ransomware attack, with the hospital saying it had restored about 80 per cent of its priority systems as of last week. 

A notorious ransomware group later apologized for that attack, claiming it was carried out by one of its partners. 

Ontario's Cybersecurity Expert Panel concluded in a September report that the broader public-services sector needed more work to achieve "cyber maturity."