Department of Justice Statement on Solarwinds Update

The Department of Justice Spokesman Marc Raimondi issued the following statement:

More from: January 6, 2021

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  • Aviation Cybersecurity: FAA Should Fully Implement Key Practices to Strengthen Its Oversight of Avionics Risks
    In U.S GAO News
    Modern airplanes are equipped with networks and systems that share data with the pilots, passengers, maintenance crews, other aircraft, and air-traffic controllers in ways that were not previously feasible (see fig. 1). As a result, if avionics systems are not properly protected, they could be at risk of a variety of potential cyberattacks. Vulnerabilities could occur due to (1) not applying modifications (patches) to commercial software, (2) insecure supply chains, (3) malicious software uploads, (4) outdated systems on legacy airplanes, and (5) flight data spoofing. To date, extensive cybersecurity controls have been implemented and there have not been any reports of successful cyberattacks on an airplane's avionics systems. However, the increasing connections between airplanes and other systems, combined with the evolving cyber threat landscape, could lead to increasing risks for future flight safety. Figure 1: Key Systems Connections to Commercial Airplanes The Federal Aviation Administration (FAA) has established a process for the certification and oversight of all US commercial airplanes, including the operation of commercial air carriers (see fig. 2). While FAA recognizes avionics cybersecurity as a potential safety issue for modern commercial airplanes, it has not fully implemented key practices that are necessary to carry out a risk-based cybersecurity oversight program. Specifically, FAA has not (1) assessed its oversight program to determine the priority of avionics cybersecurity risks, (2) developed an avionics cybersecurity training program, (3) issued guidance for independent cybersecurity testing, or (4) included periodic testing as part of its monitoring process. Until FAA strengthens its oversight program, based on assessed risks, it may not be able to ensure it is providing sufficient oversight to guard against evolving cybersecurity risks facing avionics systems in commercial airplanes. Figure 2: Federal Aviation Administration's Certification Process for Commercial Transport Airplanes GAO has previously identified key practices for interagency collaboration that can be used to assess interagency coordination. FAA coordinates with other federal agencies, such as the Departments of Defense (DOD) and Homeland Security (DHS), and with industry to address aviation cybersecurity issues. For example, FAA co-chairs the Aviation Cyber Initiative, a tri-agency forum with DOD and DHS to address cyber risks across the aviation ecosystem. However, FAA's internal coordination activities do not fully reflect GAO's key collaboration practices. FAA has not established a tracking mechanism for monitoring progress on cybersecurity issues that are raised in coordination meetings, and its oversight coordination activities are not supported by dedicated resources within the agency's budget. Until FAA establishes a tracking mechanism for cybersecurity issues, it may be unable to ensure that all issues are appropriately addressed and resolved. Further, until it conducts an avionics cybersecurity risk assessment, it will not be able to effectively prioritize and dedicate resources to ensure that avionics cybersecurity risks are addressed in its oversight program. Avionics systems, which provide weather information, positioning data, and communications, are critical to the safe operation of an airplane. FAA is responsible for overseeing the safety of commercial aviation, including avionics systems. The growing connectivity between airplanes and these systems may present increasing opportunities for cyberattacks on commercial airplanes. GAO was asked to review the FAA's oversight of avionics cybersecurity issues. The objectives of this review were to (1) describe key cybersecurity risks to avionics systems and their potential effects, (2) determine the extent to which FAA oversees the implementation of cybersecurity controls that address identified risks in avionics systems, and (3) assess the extent to which FAA coordinates internally and with other government and industry entities to identify and address cybersecurity risks to avionics systems. To do so, GAO reviewed information on key cybersecurity risks to avionics systems, as reported by major industry representatives as well as key elements of an effective oversight program, and compared FAA's process for overseeing the implementation of cybersecurity controls in avionics systems with these program elements. GAO also reviewed agency documentation and interviewed agency and industry representatives to assess FAA's coordination efforts to address the identified risks. GAO is making six recommendations to FAA to strengthen its avionics cybersecurity oversight program: GAO recommends that FAA conduct a cybersecurity risk assessment of avionics systems cybersecurity within its oversight program to identify the relative priority of avionics cybersecurity risks compared to other safety concerns and develop a plan to address those risks. Based on the assessment of avionics cybersecurity risks, GAO recommends that FAA identify staffing and training needs for agency inspectors specific to avionics cybersecurity, and develop and implement appropriate training to address identified needs. develop and implement guidance for avionics cybersecurity testing of new airplane designs that includes independent testing. review and consider revising its policies and procedures for monitoring the effectiveness of avionics cybersecurity controls in the deployed fleet to include developing procedures for safely conducting independent testing. ensure that avionics cybersecurity issues are appropriately tracked and resolved when coordinating among internal stakeholders. review and consider the extent to which oversight resources should be committed to avionics cybersecurity. FAA concurred with five out of six GAO recommendations. FAA did not concur with the recommendation to consider revising its policies and procedures for periodic independent testing. GAO clarified this recommendation to emphasize that FAA safely conduct such testing as part of its ongoing monitoring of airplane safety. For more information, contact Nick Marinos at (202) 512-9342 or MarinosN@gao.gov, or Heather Krause at (202) 512-2834 or KrauseH@gao.gov.
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  • Prescription Drugs: Medicare Spending on Drugs with Direct-to-Consumer Advertising
    In U.S GAO News
    What GAO Found Drug manufacturers spent $17.8 billion on direct-to-consumer advertising (DTCA) for 553 drugs from 2016 through 2018, and spending was relatively stable at about $6 billion each year. Almost half of this spending was for three therapeutic categories of drugs that treat chronic medical conditions, such as arthritis, diabetes, and depression. GAO also found that nearly all DTCA spending was on brand-name drugs, with about two-thirds concentrated on 39 drugs, about half of which entered the market from 2014 through 2017. Medicare Parts B and D and beneficiaries spent $560 billion on drugs from 2016 through 2018, $324 billion of which was spent on advertised drugs. Of the 553 advertised drugs, GAO found Medicare Parts B and D spending for 104 and 463 drugs, respectively. Among the drugs with the highest Medicare spending, some also had the highest DTCA spending. Specifically, among the top 10 drugs with the highest Medicare Parts B or D expenditures, four were also among the top 10 drugs in advertising spending in 2018: Eliquis (blood thinner), Humira (arthritis), Keytruda (cancer), and Lyrica (diabetic pain). Medicare Spending on Advertised Drugs, 2016 - 2018 GAO's review of four advertised drugs found that drug manufacturers changed their DTCA spending during key events, such as increasing spending when a drug was approved to treat additional conditions or decreasing spending following the approval of generic versions. GAO also found that DTCA may have contributed to increases in Medicare beneficiary use and spending among four selected drugs from 2010 through 2018. However, other factors likely contributed to a drug's Medicare beneficiary use and spending, making it difficult to isolate the relationship between drug advertising, use and spending. For example, GAO's review of four selected drugs showed that increases in unit prices were a factor, while stakeholders GAO interviewed cited other contributing factors such as doctors' prescribing decisions and manufacturers' drug promotions directed to doctors. Why GAO Did This Study Drug manufacturers use advertising on television and in other media to promote the use of their drugs to consumers and to encourage them to visit their doctors for more information. From 2016 through 2018, the Medicare program and beneficiaries spent $560 billion on drugs, and spending is projected to increase with the use of newer, more expensive drugs and an increase in beneficiaries. GAO was asked to examine DTCA and Medicare spending on advertised drugs. This report examines (1) drug manufacturer spending on DTCA; (2) Medicare spending on advertised drugs; and (3) changes in DTCA spending and Medicare use and spending for selected drugs. GAO analyzed DTCA spending data from Nielsen Media, and Medicare Parts B and D Drug Spending Dashboard data, from 2016 through 2018 (the most recent available data at the time of GAO's analysis). GAO also analyzed DTCA spending and Medicare data for a non-generalizable selection of four advertised drugs over a longer period—from 2010 through 2018. The four drugs were selected to reflect differences in DTCA and Medicare spending, beneficiary use, and medical conditions treated. GAO also interviewed or obtained information from officials representing 14 stakeholder groups (including research, trade, and physician organizations; and drug manufacturers of the four selected drugs) about DTCA spending and drug use and spending. The Department of Health and Human Services provided technical comments on a draft of this report, which GAO incorporated as appropriate. For more information, contact John Dicken at (202) 512-7114 or dickenj@gao.gov.
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    As of June 2020, the Federal Communications Commission (FCC) required consumers nationwide to use the Lifeline National Verifier (Verifier), a centralized process and data system, to check their eligibility for Lifeline. Because consumers who participate in certain federal benefits programs qualify for discounted phone and internet service through Lifeline, the Verifier checks state and federal benefits databases to verify consumers' eligibility. The Verifier also includes a manual review process for consumers to submit documents proving their eligibility if they cannot be found in a database. As of November 2020, the Verifier had connections with databases in 20 states and 2 federal agencies. GAO found that although consumers in states without state database connections had the same likelihood of actually meeting eligibility requirements as consumers in states with such connections, they were less likely to be found eligible for Lifeline through the Verifier (see figure). Average Eligibility Determination for New Lifeline Applicants in States with and without State Database Connections to the Lifeline National Verifier, June 2018 through June 2020 FCC coordinated with state and federal stakeholders to implement the Verifier. However, stakeholders told GAO that many eligible consumers are not aware of the Verifier or Lifeline. Consumers may lack this awareness because FCC's consumer education planning did not always align with key practices, such as developing consistent, clear messages and researching target audiences. As a result, eligible consumers may not apply for Lifeline. Moreover, while FCC originally envisioned tribal governments and organizations assisting residents of tribal lands with the Verifier, it has not provided them with quality information to effectively do so. Although FCC reported that the Verifier is meeting its goal of improving the consumer experience, GAO found that the manual review process, which FCC used to determine the eligibility of more than half of applicants in many states, is challenging for consumers. However, FCC does not collect complete information on consumers' experience with this process, and thus is limited in its ability to identify and address the challenges consumers face. Such challenges likely contributed to eligible consumers giving up on their applications. For example, we found that more than two-thirds of applicants who underwent manual review between June 2018 and June 2020 did not complete their applications. FCC's Lifeline program discounts phone and internet service for eligible low-income consumers. In 2019, FCC authorized $982 million in support for 6.9 million eligible consumers. FCC created the Verifier with the stated goals of reducing fraud and costs and improving the consumer experience. The Verifier includes an online application, connections to state and federal benefits databases, and a standardized manual review process. GAO was asked to review FCC's implementation of the Verifier. This report examines: (1) the status of the Verifier; (2) FCC's coordination with stakeholders and efforts to educate consumers and facilitate tribal stakeholders' involvement; and (3) the extent to which the Verifier is meeting its goals. GAO reviewed FCC orders and documentation; analyzed Verifier performance and Lifeline subscriber data; interviewed FCC and other agency officials, and selected industry, state, tribal, and consumer stakeholders; and surveyed state officials. Stakeholders were selected to obtain a variety of non-generalizable viewpoints. GAO is making six recommendations, including that FCC develop a consumer education plan, provide quality information to tribal organizations, and collect information on consumers' experience with the manual review process. FCC agreed to take steps to address all of GAO's recommendations. For more information, contact Andrew Von Ah at (202)-512-2834 or vonaha@gao.gov.
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    The Food and Drug Administration (FDA) has regulated most over-the-counter (OTC) drugs—that is, drugs available without a prescription—through the OTC monograph process. FDA has described an OTC monograph as a "rulebook" for marketing safe and effective OTC drugs, such as aspirin, cough and cold medicine, and hand sanitizer. OTC monographs established conditions—such as active ingredients, indications for use, dosage forms, and product labeling—under which an OTC drug was generally recognized as safe and effective. According to FDA officials, before the CARES Act, which was enacted in March 2020, the agency's ability to update and finalize monographs in response to safety issues and to reflect new scientific information was limited by the rulemaking process the agency was required to follow, as well as insufficient resources. Agency officials estimated that it took at least 6 years to complete the required rulemaking process. Additionally, the agency reported it was critically under-resourced to regulate the estimated 100,000 OTC drugs marketed through the monograph process. However, the CARES Act provided for a new process to regulate these OTC drugs rather than the rulemaking process. FDA officials expect it will take less time to update and finalize requirements for OTC drugs using the new process. The CARES Act also authorized FDA to assess user fees to provide additional resources to regulate OTC drugs. Although FDA officials said this new process and user fees should improve its regulation of OTC drugs, the agency's analysis of the effect of the CARES Act is still ongoing. FDA officials told GAO that prior to the CARES Act, they used various methods to identify and respond to safety issues related to OTC drugs. For example, to identify these issues, FDA officials said they read medical literature related to safety issues and reviewed reports submitted to the agency's adverse event reporting system. To respond to these issues, FDA took steps such as issuing drug safety communications to consumers and requesting that manufacturers make changes to a drug's labeling. For example, in 2015, two FDA advisory committees recommended that cough and cold drugs with codeine be removed from the relevant OTC monograph for use in drugs in children. In 2018, FDA also issued a drug safety communication stating the risks outweighed the benefits for the use of these drugs in children. However, FDA officials said these methods were not a substitute for rulemaking because manufacturers could legally market their OTC drugs without making requested safety changes until the rulemaking process was completed. According to FDA officials, the new process for regulating OTC drugs included in the CARES Act could improve FDA's ability to address identified safety risks in a more timely and efficient manner in the future. The act established an expedited process to address safety issues that pose an imminent hazard to public health or to change a drug's labeling to mitigate a significant or unreasonable risk of a serious adverse event. OTC drugs prevent and treat a variety of conditions; for example, sunscreen is used to help prevent sunburn. FDA officials and stakeholders, such as industry representatives and patient and provider groups, have questioned whether the monograph process used to regulate most OTC drugs has been overly burdensome and has limited FDA's ability to quickly update and finalize monographs in response to potential safety issues for consumers. Enacted in March 2020, the CARES Act changed how FDA regulates OTC drugs. The Sunscreen Innovation Act included a provision for GAO to review FDA's regulation of OTC drugs. This report describes, among other issues, (1) the factors that affected FDA's ability to regulate OTC drugs and (2) how FDA identified and responded to safety issues associated with these drugs. GAO reviewed federal statutes and agency documents and interviewed FDA officials and stakeholders familiar with the monograph process. These stakeholders included representatives from the OTC drug industry, health care provider and consumer groups, and researchers. The Department of Health and Human Services provided technical comments on this report, which GAO incorporated as appropriate. For more information, contact John E. Dicken at (202) 512-7114 or dickenj@gao.gov.
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    Factors such as the timing of an injury in a career affect how Federal Employees' Compensation Act (FECA) total disability benefits compare to income security from typical federal retirement. The FECA program compensates federal employees for lost wages from work-related injuries, among other benefits. FECA recipients can receive this compensation for as long as their disability continues. At retirement age, they can remain on FECA or, instead, choose to receive their benefits from the Federal Employees Retirement System (FERS). Thus, FECA benefits represent a significant portion of retirement income for some injured federal employees. Through simulations, GAO found that factors such as the length of retirees' careers absent injury affected how similar their hypothetical FECA benefits packages were to their FERS packages in 2018. FERS benefits increase substantially the longer a federal employee works. As a result, median current and reduced FECA packages were greater than the FERS median for retirees with shorter careers absent injury. However, median FECA packages were similar to or less than FERS for retirees with longer careers (see figure). Median FECA Benefits as a Percentage of FERS Benefits by Career Length Absent an Injury For FECA recipients who choose to compare their FECA and FERS benefit options at retirement, estimates for most components of those benefits packages are available. However, the Department of Labor (DOL) does not routinely remind recipients to compare benefits, so they may be unaware of their options or how to consider them. In addition, DOL and the Social Security Administration (SSA) use a manual and highly complex process to calculate one key component of a FECA recipient's compensation in retirement related to Social Security benefits. As a result, estimates of FECA benefits in retirement that include this component are not readily available prior to retirement. These challenges hinder recipients' ability to accurately compare their options and may result in some recipients not choosing their best option at retirement. The President's budgets for fiscal years 2019-2021 have proposed several FECA reforms, including reducing disability compensation at retirement age. In a series of reports published in 2012, GAO analyzed the effects of similar proposed revisions to FECA compensation. GAO was asked to update its FECA and FERS benefit comparisons. This report examines (1) how FERS and total disability FECA benefits at retirement age compare under current and previously proposed reduced FECA compensation rates, and (2) the extent to which FECA recipients have access to information to compare their FECA and FERS benefits options. GAO compared the FERS benefits selected retirees received in 2018 with the hypothetical total disability FECA benefits they would have received from simulated injuries. GAO reviewed agency documents and interviewed officials from DOL, SSA, and other federal agencies. GAO is recommending that DOL remind FECA recipients as they approach retirement to obtain FERS benefit estimates for comparisons with FECA, and that DOL and SSA take steps to modernize and improve their process for calculating and providing information on certain FECA benefits in retirement that would enable recipients to make complete comparisons of retirement options. DOL and SSA concurred with all three recommendations. For more information, contact Cindy Brown Barnes at (202) 512-7215 or brownbarnesc@gao.gov.
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    In U.S GAO News
    What GAO Found Since GAO's April 2020 report on the status of the National Science Foundation's (NSF) major facilities projects, the Large Hadron Collider High Luminosity Upgrade program began construction, and it along with the four other major facilities projects in construction (see figure), have weathered schedule delays associated with the COVID-19 pandemic. To partially account for increased costs associated with the pandemic, such as the cost of paying project staff while work is paused, NSF has authorized $38.9 million in total project cost increases to the award recipients constructing three of the five projects: $18.9 million for the Daniel K. Inouye Solar Telescope, $10.0 million for the Vera C. Rubin Observatory, and $10.0 million for Regional Class Research Vessels. Because the pandemic is ongoing and its full effects are not yet known, NSF expects to make further adjustments to the cost and schedule of all five major projects in construction. Design work on an additional major facility project continued without significant interruption from the pandemic. Further, NSF made awards to begin the agency's first three mid-scale research infrastructure projects. National Science Foundation Major Facilities Projects in Construction NSF has fully implemented GAO's prior recommendation on information sharing among award recipients and has drafted guidance or taken other steps towards addressing GAO's three remaining recommendations. To enhance information sharing among award recipients, NSF added a section to its terms and conditions in its major facilities agreements that encourages awardees to share information among awardees and participate in a knowledge management program. Why GAO Did This Study NSF supports the design, construction, and operations of science and engineering research infrastructure such as telescopes and research vessels. These projects include major facilities that cost over $100 million to construct or acquire, and mid-scale research infrastructure projects. Over the past 5 fiscal years, NSF has received over $1 billion in appropriations for these projects. Prior GAO reports reviewed NSF's oversight of the projects, its cost estimating and schedule policies, and the project management expertise of its oversight workforce. Senate Report 115-275, Senate Report 114-239, and House Report 114-605 included provisions for GAO to review and report annually on projects funded from NSF's Major Research Equipment and Facilities Construction account. This report, the fourth, examines (1) the cost and schedule performance of NSF's ongoing major facilities and mid-scale research infrastructure projects and (2) the extent to which NSF has implemented prior GAO recommendations related to its management of major facilities. GAO reviewed NSF and award recipient documents for the projects. GAO examined policies and procedures to identify efforts to implement recommendations and interviewed NSF officials for clarifying information.
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    In Crime Control and Security News
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  • Department of Justice Awards Over $35 Million to Provide Housing to Victims of Human Trafficking
    In Crime News
    Today, Attorney General William P. Barr and Advisor to the President Ivanka Trump announced that the Office for Victims of Crime (OVC), a component of the Department of Justice’s Office of Justice Programs (OJP), has awarded $35,104,338 in grant funding to provide safe, stable housing and appropriate services to victims of human trafficking.
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  • Military Housing: Actions Needed to Improve the Process for Setting Allowances for Servicemembers and Calculating Payments for Privatized Housing Projects
    In U.S GAO News
    The Department of Defense (DOD) has established a process to determine basic allowance for housing (BAH) rates, which help cover the cost of suitable housing in the private sector for servicemembers. However, DOD has not always collected rental data on the minimum number of rental units needed to estimate the total housing cost for certain locations and housing types. GAO analysis found that 44 percent (788 of 1,806) of locations and housing types had fewer than the minimum sample-size target. Until DOD develops ways to increase its sample size, it will risk providing housing cost compensation that does not accurately represent the cost of suitable housing for servicemembers. DOD followed congressional requirements for calculating BAH reductions and payments to privatized housing projects. However, while the 2019 congressionally mandated payments lessened the financial effects of BAH reductions, as intended, they did not do so commensurate with the amount of the BAH reduction. GAO found that privatized housing projects received payments that were either over or under the amount of revenue lost from reductions made to BAH, in some cases by $1 million or more. (see figure) Number of Privatized Housing Projects and Amounts That Congressionally Mandated Payments Were Above or Below the Basic Allowance for Housing (BAH) Reduction Estimate (in 2019) These distortions occurred because the legal requirements for calculating the BAH reduction and the congressionally mandated payments differ. Specifically, the law requires that the BAH reduction be a set dollar amount, regardless of location, while payments to privatized housing projects are required to differ by location. This required method of calculating the BAH reduction amounts is consistent with how prior reductions were calculated. According to DOD, BAH rates were reduced so that servicemembers share a portion of housing costs, and that reduction amount was the same for servicemembers with the same pay grade and dependency status, regardless of location. Until Congress takes steps to ensure congressionally mandated payment calculations are consistent with how BAH reductions are calculated, some privatized housing projects will continue to receive more or less than was intended. DOD spent about $20 billion in fiscal year 2019 on BAH—often one of the largest components of military pay. BAH is designed to cover a portion of servicemembers' housing rental and utility costs in the private sector. Starting in 2015, DOD reduced BAH rates so that servicemembers share a portion of housing costs. The majority of servicemembers rely on the civilian housing market, while others rely on government housing or privatized housing projects. These projects rely on BAH as a key revenue source. In 2018-2020, Congress required DOD to make payments to these projects to help offset the BAH reduction. Senate Report 116-48 included a provision for GAO to review DOD's BAH process. This report evaluates, among other things, the extent to which (1) DOD established a process to determine BAH and (2) DOD's congressionally mandated payments to projects lessened the effects of BAH reductions. To conduct this work, GAO reviewed relevant guidance and other documents, analyzed key data, and interviewed cognizant DOD officials. GAO is making a matter for congressional consideration to revise statutory language to ensure payments to privatized housing projects are consistent with BAH reductions. GAO is also making three recommendations, including that DOD review its sampling methodology to increase sample size. DOD concurred with two recommendations. DOD also partially concurred with one recommendation, which GAO continues to believe is valid, as discussed in the report. For more information, contact Elizabeth A. Field at (202) 512-2775 or fielde1@gao.gov.
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  • Former NGO Procurement Official Sentenced to Prison for Bribery
    In Crime News
    A former non-governmental organization (NGO) official was sentenced today to 40 months in prison for paying bribes to NGO officers in exchange for sensitive procurement information related to NGO contracts funded in part by the U.S. Agency for International Development (USAID).
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  • Russian National Convicted of Charges Relating to Kelihos Botnet
    In Crime News
    A federal jury in Connecticut convicted a Russian national on Tuesday for operating a “crypting” service used to conceal “Kelihos” malware from antivirus software, enabling hackers to systematically infect victim computers around the world with malicious software, including ransomware.
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  • Former U.S. Army Reservist Sentenced to 40 years in Prison for Sex Trafficking and a Related Offense
    In Crime News
    U.S. District Judge Robert J. Conrad, Jr. of the Western District of North Carolina sentenced Xaver M. Boston, 31, of Charlotte, North Carolina, today to serve 40 years in prison and 30 years of supervised release. Judge Conrad also ordered Boston to pay $354,000 in restitution and $25,000 pursuant 18 U.S.C. 3014 and the Justice for Victims of Trafficking Act of 2015. A federal jury in Charlotte previously convicted Boston on Oct. 11, 2018, of six counts of sex trafficking and one count of using an interstate facility to promote a prostitution enterprise.  
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  • Secretary Pompeo to Host [pre-recorded] Virtual Conference on Combatting Online Anti-Semitism
    In Crime Control and Security News
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