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Friday, May 3, 2024

SEC Shuts Down 'Prolific' Auditor BF Borgers, Whose Clients Include Trump Media

 The US Securities and Exchange Commission (SEC) shut down auditor BF Borgers, described by the Financial Times as "one of the most prolific auditors of US public companies," over allegations of "massive fraud" that affected more than 1,500 SEC filings, the agency announced on Friday.

Borgers agreed to a $12 million civil penalty, while owner Benjamin Borgers agreed to pay $2 million to settle the SEC's charges. The company has also agreed to permanent suspensions from practicing as accountants on SEC filings, effective immediately.

According to the SEC, a "significant" number of listed companies will have to switch accountants in the coming days due to the enforcement action.

Clients include Trump Media.

"Trump Media looks forward to working with new auditing partners in accordance with today's SEC order," a spokesperson for Trump's media company told Reuters in an email.

Borgers has also acted for fintech and crypto companies, and many other small issuers, SEC filings show.

According to the SEC, Borgers did not properly prepare and maintain audit documentation, fabricated audit planning meetings, and in some cases simply passed off previous audits for the current audit period.

Of 369 BF Borgers clients whose filings from January 2021 through June 2023 incorporated BF Borgers's audits and reviews, at least 75% incorporated audits that did not comply with the SEC's rules.

According to SEC Enforcement Division Director Gurbir Grewal, "Ben Borgers and his audit firm, BF Borgers, were responsible for one of the largest wholesale failures by gatekeepers in our financial markets."

https://www.zerohedge.com/political/massive-fraud-sec-shuts-down-prolific-auditor-bf-borgers-whose-clients-include-trump

Aeon misses primary endpoint in Phase 2 migraine study

 AEON Biopharma, Inc. (“AEON” or the “Company”) (NYSE: AEON), a clinical-stage biopharmaceutical company focused on developing a proprietary botulinum toxin complex for the treatment of multiple debilitating medical conditions, today announced that the preliminary top-line results from its planned interim analysis of the Phase 2 trial with ABP-450 in the preventive treatment for chronic migraine did not meet the primary endpoint.

The primary endpoint of mean reduction in monthly migraine days (MMD) over the period 13-24 weeks in a total of 325 analyzed patients randomized across three arms showed a reduction of 8.5 days in the 150 U arm and 7.7 days in the 195 U arm, compared with a reduction of 8.4 days in the placebo arm. These differences did not achieve statistical significance (p=0.9132 in 150 U arm; p=0.3611 in 195 U arm). The numerical reduction in MMDs were in the expected range for the two active arms, however, the reduction in the placebo arm was much higher than expected based on previous studies. In addition, none of the secondary endpoints met statistical significance. While the Company will continue to evaluate the complete dataset and determine the next steps in the development of ABP-450, it has immediately commenced cash preservation measures and will review all strategic options.

“While we were surprised and disappointed that ABP-450 did not demonstrate statistically significant superiority over placebo in this interim readout, both active arms showed a reduction in monthly migraine days directly in-line with our expectations. We are conducting additional analyses of the interim data to understand the highly abnormal and unexpected placebo effect and further evaluate the results of this study to determine the best path forward in the development of ABP-450 for the preventive treatment of migraine,” said Marc Forth, President and Chief Executive Officer of AEON. 

https://www.globenewswire.com/news-release/2024/05/03/2875016/0/en/AEON-Biopharma-Announces-Preliminary-Top-Line-Results-from-Phase-2-Interim-Analysis-of-ABP-450-in-the-Preventive-Treatment-of-Chronic-Migraine.html

''Widespread' Belief Among US Officials Israel Can't Eradicate Hamas'

 by Dave DeCamp via AntiWar.com,

There is a "widespread belief" among US officials that Israeli Prime Minister Benjamin Netanyahu’s goal of "eradicating" Hamas in Gaza is unattainableThe New York Times reported on Thursday.

Throughout the past seven months, there have been multiple signs that the US doesn’t believe Israel could achieve its goals in Gaza, yet the Biden administration has continued to support the slaughter of Palestinians in the Strip.

In March, the US intelligence agencies released their annual "threat assessment," and it said Israel will face "lingering armed resistance" for "years to come" and that the Israeli military would struggle to destroy Hamas’s underground infrastructure.

The Washington Post also reported in March that the US didn’t think Israel had clear or attainable goals as far back as October. "We never had a clear sense that the Israelis had a definable and achievable military objective," a source familiar with an October 27 Biden administration meeting on the situation in Gaza told the Post.

"From the very beginning, there’s been a sense of us not knowing how the Israelis were going to do what they said they were going to do."

The Times report focused on Secretary of State Antony Blinken’s visit to Israel and the difference in messaging from the administration and Netanyahu. Blinken said the US was still opposed to Israel invading Rafah without a clear plan for civilians, but Netanyahu’s message was that an invasion will happen no matter what.

Blinken also called on Hamas to accept Israel’s latest proposal for a hostage deal and temporary ceasefire, but Netanyahu signaled that he wasn’t interested. The Israeli leader vowed to invade Rafah "with or without" a deal with Hamas.

The Times report said US officials were "taken aback" by the timing of Netanyahu’s comment because they think Hamas would only accept a deal if they believed releasing hostages could lead to a permanent ceasefire, which has been the Palestinian group’s demand for months. Netanyahu also told Blinken that he wouldn’t agree to end military operations in Gaza for a hostage deal.

Despite the difference in public messaging, there’s no sign the Biden administration is putting any real pressure on Netanyahu to prevent an invasion of Rafah as US military aid continues to flow. So far, the US-backed Israeli slaughter has reportedly killed 34,596 people, including over 14,000 children, according to the latest numbers from Gaza’s Health Ministry.

https://www.zerohedge.com/geopolitical/theres-widespread-belief-among-us-officials-israel-cant-eradicate-hamas

'Russian troops staying at base housing US forces in Niger'

 Russian military personnel have been staying at an air base in Niger that also hosts U.S. troops and equipment, a U.S. official confirmed to The Hill Thursday.

The news comes as roughly 1,000 American service members are expected to withdraw from Niger following deteriorating relations with the African nation after a military coup there last year. The military junta that now controls Niger’s government has demanded U.S. forces leave and turned to Russia for weapons and security.

The Russian troops “for a couple of weeks” have been at Airbase 101, next to Diori Hamani International Airport in the capital city of Niamey, the official told The Hill.

“We have been monitoring the situation,” they said, adding that the Russian forces do not have access to U.S. service members, spaces, or equipment, and that they are using a separate hangar at Airbase 101, which is owned by the Nigeriens.

They also noted that the U.S. had consolidated most of its forces from Airbase 101 to Airbase 201 in Agadez soon after the coup. They did not say how many American troops remain at 101 or what equipment is still there.

Russia’s military presence at 101 places U.S. and Kremlin troops in close quarters at a time of major acrimony between the two countries over Moscow’s war in Ukraine.

Reuters first reported on the presence of Russian troops at the base.

Washington last month announced that American forces would withdraw from Niger after the military junta revoked a military cooperation agreement with the United States in March. That accord gave U.S. troops a major foothold to fight against extremist groups in the region, including and Islamic State offshoot, Boko Haram and others.

A forced withdrawal from Niger is a major setback for U.S. military as looks to quell militant groups across the Sahel, a volatile region in northern Africa that stretches from Senegal and Mauritania in west to Sudan and Eritrea on the Red Sea. 

About 100 U.S. troops have also left Chad in recent days, according to Reuters.

Niger, following the path as its neighbors Mali and Burkina Faso, has sought inroads with Russia, including its private military company Wagner Group. The organization has ties to Moscow and has a history of exploiting the resources of African nations. 

A delegation last week was sent to Niger to arrange an orderly withdrawal and included U.S. Ambassador to Niger Kathleen FitzGibbon and Maj. Gen. Kenneth Ekman, the director of strategy, engagement and programs at U.S. Africa Command.

https://thehill.com/policy/international/4640440-russian-troops-staying-at-base-housing-us-forces-in-niger/

34 GOP senators call potential Biden plan for Palestinian refugees national security risk

 More than two dozen Republican senators are calling a potential proposal by President Biden to accept Palestinian refugees from Gaza a national security risk, following the administration’s acknowledgment that discussions are underway to help Palestinians in the U.S. bring families over from the region. 

letter rejecting the potential proposal was led by Sen. Joni Ernst (R-Iowa), the number three GOP leader, Senate Minority Leader Mitch McConnell (R-Ky.) and 33 colleagues. 

It signals another avenue Republicans may try to attack Biden ahead of the November election. 

While Biden has maintained robust military support for Israel, he is under immense political pressure from Democrats and progressives amid increasingly violent protests across the U.S. to do more to hold Israel to account for a humanitarian crisis in the Gaza Strip. 

Republicans have seized on the criticism as failing to support Israel’s right to self-defense in the aftermath of Hamas’s Oct. 7 attack on Israel, where an estimated 1,200 people were killed in their homes, on the streets and at a music festival, and more than 250 taken hostage. Hamas still holds approximately 133 Israeli hostages, some with dual-American citizenship. 

The GOP senators call for Biden to prioritize securing the release of American hostages over accepting Palestinians as refugees. 

“We demand that your administration cease planning for accepting Gazan refugees until you adequately answer our concerns and focus your attention instead on securing the release of U.S. hostages held by Hamas.”

The GOP senators further frame accepting Palestinians from Gaza as a national security risk, raising doubt that the Biden administration could prevent Hamas-members or other members of a terrorist group from entering the U.S.

“Unfortunately, the risk of terrorists entering our homeland is no hypothetical matter,” the senators wrote, citing that border officials had arrested 169 people on the FBI terror watchlist over the course of 2023. 

The Biden administration has acknowledged that Hamas has tried to exploit civilian evacuations for its own gain. During a week-long cease-fire between Israel and Hamas in November, the Biden administration said it worked to block Hamas fighters, disguising themselves as civilians, from receiving medical treatment outside Gaza. 

The GOP senators also raise concern over the risk of allowing Palestinians, 34 percent of whom are said to support Hamas, into the U.S. The senators don’t acknowledge that that number is a decline from months previous, in response to the humanitarian catastrophe in the Gaza Strip, according to polling carried out by the Palestinian Center for Policy and Survey research. 

“With more than a third of Gazans supporting the Hamas militants, we are not confident that your administration can adequately vet this high-risk population for terrorist ties and sympathies before admitting them into the United States,” they wrote. 

The letter follows criticism from former Trump administration officials and other lawmakers rejecting the proposed plan for accepting refugees and raising it as a key election issue.

Former Trump White House press secretary Kayleigh McEnany, now a Fox News co-host, criticized Biden as exploring executive action “not to close the southern border, but to bring in more Palestinian refugees. Wow. Good luck with that in a general election.”

And Rep. Brian Mast (R-Fl.) said in a statement Tuesday that he rejected the Biden administration’s plan to “import” Palestinians from Gaza into the U.S. 

“The latest in Joe Biden’s America Last agenda is an absurd scheme to bring into our country the people who cheered as Americans and Israelis were killed, beaten, raped, and taken hostage on October 7th,” he said. “These are the same people who elected Hamas as their government. These are people who live next to Egypt, yet Egypt finds them too much of a national security risk to let into their country.”

https://thehill.com/policy/international/4639059-gop-senators-palestinian-refugees-national-security-risk/

5 takeaways from competing Democratic, GOP farm bill plans

 House Republicans and Democrats have released two dueling visions for the farm bill, the massive $1.5 trillion omnibus that underpins the U.S. food system.

The contrasting proposals show the fault lines between the two parties’ visions for American agriculture as it is beset by rising supply costs and climate change.

But despite these divisions, there are significant points of overlap between the two proposals: Both support big spending on rural broadband and the high-tech “precision agriculture” it enables; put an emphasis on boosting the trade of American products abroad; and include funding for research at America’s land grant schools.

Now, with a sizable House minority of Republican hard-liners willing to scorch any bill that doesn’t include significant cuts to entitlements, House Agriculture Committee Chair Glenn “G.T.” Thompson (R-Pa.) faces a choice between two difficult options: try to pass a partisan farm bill and risk the Freedom Caucus blowing it up, or pass one that is sufficiently moderate to get Democrats on board.

Thompson told Agri-Pulse in March that he was shooting for the second option, and “‘baking’ bipartisan proposals into the legislation.”

But the contradictions between the parties — and the factions within them — prevented Congress from reaching a consensus on the farm bill last year, leading lawmakers to instead pass a supplemental bill to avoid a sudden defunding of billions of dollars in programs that the American food system depends on.

Congress has until Sept. 30 to close these gaps and pass the bill. Here are the main takeaways from the two proposals.

Clashing over conservation funds

In their proposals, both Republicans and Democrats emphasize the importance of getting more money into the Department of Agriculture’s (USDA) highly popular — and brutally oversubscribed — conservation programs.

Programs like the Environmental Quality Incentives Program help farmers pay for a broad range of projects — from cover cropping and brush control to prescribed burns — that help maintain soil and water health.

Both parties’ plans would put more money into the programs, which currently turn away about two-thirds of worthy applicants for lack of funds.

The 2022 Inflation Reduction Act (IRA) is already slated to  reverse those numbers, such that about two-thirds would get funded — provided the projects offer some benefit to the climate.

But how to handle those IRA funds is a sticking point between the proposals. Democrats insist that the money allocated by the legislation must remain focused on cutting the climate impact of agriculture — though they are willing to keep an existing, and controversial, provision that reserves 50 percent of non-IRA funds for livestock operations.

Republicans, by contrast, want to use IRA funds to cover all conservation programs — and to expand the category of programs that are counted as conservation. The GOP didn’t specify what new programs would be included under their proposal.

Such an expansion is popular with Senate Republicans, but unpopular with the public. It also constitutes a “red line” for Senate Agriculture Committee Chair Debbie Stabenow (D-Mich.), a spokesperson told Michigan Farm News, and is unpopular with House Democrats, who said in February that they would not “not support a farm bill that takes IRA conservation funding away from its intended purpose.” 

Fighting over food aid

Democrats have also drawn an explicit red line in regards to the Supplemental Nutrition Assistance Program, or SNAP.

The program receives about 80 percent of current farm bill spending and is the glue binding together the fragile political consensus between urban and rural representatives that has been essential to getting the omnibus passed.

As The Hill reported, Thompson has insisted the Republican caucus doesn’t intend to cut SNAP.

But he does want to reverse Biden-era reforms that increase food aid to keep up with the rising cost of healthy foods like fruits and vegetables — and to bar future presidents from increasing SNAP payments for any reason other than inflation.

While doing this wouldn’t cut any current benefits, it would freeze them in place — effectively cutting $30 billion from SNAP over the next decade, and stymieing USDA efforts to make sure low-income people can still eat healthy food, according to the Center on Budget and Policy Priorities.

House Republicans said in a statement that this would save $300 billion over the next decades, while correcting “egregious Executive branch overreach” and barring “future unelected bureaucrats from arbitrarily increasing or decimating SNAP benefits.”

But Senate Democrats panned these proposed actions. “We don’t take money out of the nutrition title to fund another part of the bill, which has never been done,” Stabenow told reporters

Dealing with climate change through the back door

The steady drumbeat of extreme weather disasters — wind, hail, drought and flooding — have sent crop losses skyrocketing over the past three years. 

A 2023 report by the Environmental Working Group found that losses from extreme weather had spiked by 500 percent just between 2021 and 2023. That surge is in turn leading to record crop insurance payouts — which are one big reason why Thompson is looking to SNAP for a new source of funding to stanch the bleeding.

Both parties’ plans seek to bolster crop insurance programs, in large part to get the U.S. out of a cycle of repeatedly having to pass unplanned, multibillion-dollar disaster supplements. But they differ on how to do this.

Republicans want to have taxpayers pick up more of the cost of coverage while building out the private insurance markets.

This proposed course of action has attracted some criticism, as some experts have argued that crop insurance programs disproportionately subsidize the biggest, richest landowners — and buffer them against any need to meaningfully adapt their operations to meet a changing climate.

A November 2023 report by the Government Accountability Office (GAO) suggested that taxpayers’ share should be reduced for the highest-income farmers — a small minority of highest-income farmers whose operations bring in more than $900,000 per year. 

Those 1,341 high-income farmers received far more from federally backed crop insurance programs than they paid in, according to the report — about $2.19 in taxpayer support for every dollar they spent on premiums.

The GAO suggested in the report that while cutting such farmers’ benefits by 15 percent would still leave them getting back more than they put in — $1.59 for every dollar — it would significantly increase the stability of crop insurance programs.

In December, Thompson blasted the “one-sided report,” which he said wasn’t “worth the paper it is printed on,“ and said the report “completely ignore[s] the benefits of Federal crop insurance, which is one of the most successful examples of a public-private partnership in existence.”

Democrats, for their part, are seeking to make crop insurance more accessible to small farmers and to producers that typically get left out of federal crop insurance programs. 

They also want to direct USDA to create “index plans” that would provide automatic payouts for climate disasters — for example, when hail falls over a corn field or a wildfire burns near a vineyard, potentially ruining the taste and marketability of the crop — without making producers go through a contested claims process.

Offering new support for fruits and vegetables

Support for fruits and vegetables — euphemistically known in the USDA lexicon as “specialty crops” — marks one significant point of consensus between the parties, though the Democrats’ plan would offer more backing than the Republicans’.

This category of crops, which includes those most likely to fill American grocery carts and refrigerators, is largely left out of USDA crop insurance plans. 

Farmers who grow produce like onions, apples, broccoli or carrots don’t have access to the same disaster-mitigating financial tools as those who grow shelf-stable commodities like corn, wheat, rice, soy or peanuts.

This bit of arcane financial policy has stark impacts on the American food system, and is one reason why processed foods in the U.S. are so much cheaper than whole foods, despite being less healthy.

Democrats’ plan directs the USDA to create new crop insurance options for specialty crops — as well as diversified farms, whose constantly changing medley of crops makes them both more resilient and harder for conventional insurance providers to cover.

While the Republican policy platform is less explicit, it also directs the USDA to research new insurance policies through “robust engagement with specialty crop producers.”

Fissuring over America’s forests

Both parties’ proposals tout the role of America’s forests in the country’s conservation goals. 

U.S. public and private forestlands cover 78,000 square miles — the approximate size of Kansas — and do invaluable work in siphoning down carbon, providing habitats for wildlife and cleaning the water that cities rely on.

But nearly a century of mismanagement and oversuppression of natural wildfire — particularly in the American West — has left the country with a destructive fire problem that has in many areas reached apocalyptic levels, in some cases rendering entire communities uninsurable. 

Democrats and Republicans agree on the need to reduce wildfire risk and improve forest health, and on some of the steps for how to do so. Both parties want to increase the size and scope of the Good Neighbor Authority, which lets federal managers contract with counties and tribes to thin publicly owned forests. And both want to build out new markets for novel American-made wood products, like the mass-timber technology that is being used to build skyscrapers.

But the policy documents reveal a broader philosophical divide on what Americas forests are, and should be. 

Republicans’ vision rests on the idea of the privately run “working forest” — a relatively homogenous plantation where trees like pines are grown and tended like any other crop. 

The GOP seeks to increase the health of these lands by reducing forest fire risk through increased logging — which would be incentivized under the Republican plan both by cutting environmental regulations and contracting private companies to work on public land.

The Senate Democrats’ plan, by contrast, is focused on the role of the public-sector forests, rather than private ones — and on the role those landscapes can play in increasing water quality and slowing climate change. 

https://thehill.com/policy/energy-environment/4639728-competing-farm-bill-plans-democrats-republicans-takeaways/

Bipartisan senators push for facial recognition restrictions in airports

 A bipartisan group of senators called on the chamber’s leaders to use the upcoming Federal Aviation Administration (FAA) reauthorization bill to restrict the use of facial recognition technology at airports throughout the country.

In a letter on Thursday to Senate Majority Leader Chuck Schumer (D-N.Y.) and Senate Minority Leader Mitch McConnell (R-Ky.), 14 senators cited concerns about potential violations of people’s privacy and civil liberties, and they called for additional congressional oversight before the Transportation Security Administration (TSA) expands the technology.

“This technology poses significant threats to our privacy and civil liberties, and Congress should prohibit TSA’s development and deployment of facial recognition tools until rigorous congressional oversight occurs,” the senators wrote in their letter, which was led by Sens. Jeff Merkley (D-Ore.), John Kennedy (R-La.) and Roger Marshall (R-Kan.).

The TSA currently uses the facial recognition technology at 84 airports with the stated goal of expanding to more than 400 airports. Travelers at those airports have the option of using the TSA scanners to either place their passport photo on a reader or insert their IDs into a machine, and then look into a camera to have their face scanned. The machine then compares the two images to verify the traveler’s identity before a TSA officer signs off on the verification.

The photos taken during the facial recognition scan “are not stored or saved after a positive ID match has been made, except in a limited testing environment for evaluation of the effectiveness of the technology,” the TSA said on its website.

While the agency touts the technology as “a significant security enhancement” that “improves traveler convenience,” the senators expressed concern about potential future applications of such technology.

“The potential for misuse of this technology extends far beyond airport security checkpoints. Once Americans become accustomed to government facial recognition scans, it will be that much easier for the government to scan citizens’ faces everywhere, from entry into government buildings, to passive surveillance on public property like parks, schools, and sidewalks,” they wrote.

A TSA spokesperson criticized the senators’ push in a statement.

“The amendment would halt facial recognition technology at security checkpoints, which has proven to improve security effectiveness, efficiency, and the passenger experience. Additionally, the amendment calls our technology deployments pilots, but they are operational assessments,” the spokesperson said.

The senators noted that while the technology is currently optional for travelers at airports, they cited the TSA administrator’s remarks last April that “we will get to the point where we will require biometrics across the board.”

The senators urged Schumer and McConnell to use the FAA reauthorization — a must-pass bill this Congress — to restrict the TSA development of this technology.

“The scope of the government’s use of facial recognition on Americans will expand exponentially under TSA’s plans, with little to no public discourse or congressional oversight,” they wrote.

“The FAA re-authorization bill is a key opportunity to provide needed oversight of TSA’s facial recognition program,” the senators continued. “Should Congress delay, TSA’s facial recognition infrastructure will soon be in place at hundreds of cities across America, and it will be that much more difficult to rein in facial recognition surveillance by the federal government.”

The Hill reached out to Schumer and McConnell for a response.

https://thehill.com/policy/transportation/4639954-bipartisan-senators-facial-recognition-restriction-airports-tsa-faa/