Episode 252

22nd May – 24th May 2026

Sanctions

US Lifts Sanctions on UN Expert After Court Finds Measures Likely Violated Free‑Speech Rights

The United States has removed UN Special Rapporteur Francesca Albanese from its sanctions list after a federal judge ruled that the Trump administration likely infringed her First Amendment rights by imposing restrictions following her criticism of US and Israeli actions in Gaza, according to the Treasury Department’s updated records. Albanese had been sanctioned in 2025 for what the government described as efforts to prompt International Criminal Court action against US and Israeli officials and companies, measures which barred her from entering or banking in the United States. The court found that her overseas residency did not diminish her constitutional protections and that the sanctions appeared aimed at regulating her speech. Following the ruling, the Office of Foreign Assets Control confirmed it would not enforce the measures while the order remained in effect.

US Sanctions Target Sinaloa Cartel Networks Laundering Fentanyl Proceeds Through Cash Couriers and Cryptocurrency

The US Treasury’s Office of Foreign Assets Control has imposed sanctions on more than a dozen individuals and entities linked to two Sinaloa Cartel networks involved in fentanyl trafficking and large‑scale money laundering, according to the department’s announcement. One network, led by Armando de Jesús Ojeda Avilés, allegedly converted bulk US drug‑sale cash into cryptocurrency for transfer to cartel leadership, while also coordinating narcotics shipments. A second network headed by fugitive Jesús González Peñuelas is accused of producing and distributing methamphetamine, heroin, cocaine and fentanyl, and laundering proceeds through Mexico‑based businesses and US cash‑movement operations. The designations, which were made under counterterrorism and counternarcotics authorities, block all US‑linked assets of the individuals and entities and expose foreign financial institutions to potential secondary sanctions if they facilitate significant transactions for them. Treasury said the action reflects coordinated efforts with US law‑enforcement task forces and Mexico’s financial intelligence unit to disrupt the financial infrastructure underpinning cartel operations.

UK Issues Correction to Russia Sanctions Listing

The UK Foreign, Commonwealth and Development Office has updated the Russia sanctions list with an administrative correction to the designation of GBU DO RK DOTs Alyye Parusa, confirming the entity remains subject to asset freeze, trust services, and director disqualification measures. The notice reiterates that the organisation is considered involved in activities supporting Russia’s destabilisation of Ukraine, including facilitating the forced deportation and indoctrination of Ukrainian children, and reminds firms of their obligations when handling assets linked to designated persons.

Fraud

Director Banned 15 Years for Fraudulent Covid Loan Claim

Ademilson Nascimento, a South London company director, has been disqualified for 15 years after securing a £46,500 Bounce Back Loan for a construction firm which had never traded, according to the Insolvency Service. The High Court found that Nascimento falsely claimed a £192,000 turnover for Buildan Construction Ltd and failed to use the funds for legitimate business purposes, with the judge describing his conduct as “bluntly appalling,” “dishonest,” and “deliberate.” The company had filed dormant accounts for three consecutive years and later went into liquidation before being dissolved in 2025. Nascimento, who was also ordered to pay £5,667 in costs, is barred from involvement in company management until 2041.

Newcastle recruitment consultant sentenced for offences involving Covid loan fraud and breaches of insolvency rules

Lucien Ekamba‑Elombe, a Newcastle recruitment consultant, received a suspended 22‑month prison sentence after admitting to multiple offences including fraudulently obtaining a £30,000 Covid Bounce Back Loan, running a phoenix company while bankrupt, and breaching a director disqualification order. Investigators found he concealed his involvement in a new company by using a nominee director, transferred thousands of pounds to his personal account, and used more than £190,000 of company funds to purchase two properties while banned from acting as a director. He was also ordered to complete unpaid work and disqualified from being a company director for seven years.

Bozeman woman sentenced to 30 months in federal prison for PPP loan fraud and money laundering

Alaina Marie Garcia, 41, of Bozeman, was sentenced to 30 months in prison and five years of supervised release after admitting to bank fraud and money laundering for obtaining a $613,000 Paycheck Protection Programme loan using false claims about payroll and employees, then spending the funds on personal expenses including a property purchase. Prosecutors said she later sought loan forgiveness using additional false statements, and investigators from the IRS and SBA traced the misuse of funds. The case forms part of the Department of Justice’s broader efforts to address COVID‑19 relief fraud.

Bribery and Corruption

Two Florida Contractors Charged in Bribery and Major Fraud Scheme Involving Army Innovation Campus

Federal prosecutors have charged two Florida‑based defence contractors, Leonard Pick and Brian Kent, with orchestrating a bribery and major fraud conspiracy which inflated costs on contracts tied to the US Army Pacific Command’s Hawaii‑Pacific Innovation Campus, according to the Justice Department. The indictment alleges the pair conspired to channel approximately $1.25 million in bribes to a US Army employee over five years and embedded those payments within fraudulently inflated government contract costs. Kent is further accused of adding roughly $680,000 in improper payments to his personal consulting business. Prosecutors and federal investigators said the scheme undermined fair competition, diverted taxpayer funds, and compromised the integrity of military procurement processes. Both defendants face multiple counts, including bribery, major fraud and wire fraud, with potential penalties ranging from five to twenty years in prison per charge.

EU Highlights New Anti‑Corruption Directive and Forthcoming Strategy at UN Working Group

The European Union told the UN Working Group on the Prevention of Corruption that its newly adopted Directive on combating corruption will soon enter into force, introducing stronger preventive measures such as national anti‑corruption strategies, sector‑specific risk assessments and expanded integrity requirements across Member States. The EU also announced that it will publish a comprehensive Anti‑Corruption Strategy later this year to align priorities across EU institutions and governments, enhance data‑driven monitoring and reinforce its rule‑of‑law framework. Delegates emphasised the importance of access to information, support for investigative journalism, and whole‑of‑society engagement, including education initiatives aimed at fostering integrity among young people. The EU said it will remain a committed partner in global efforts to prevent and address corruption.

UNODC supports knowledge‑sharing between Kyrgyzstan and Georgia on strengthening anti‑corruption systems

A UNODC‑organised study visit brought officials from Kyrgyzstan’s General Prosecutor’s Office to Georgia to learn about the country’s legal and institutional approaches to combating corruption, including asset declaration systems, investigative mandates and preventive public‑sector measures. The delegation met with a wide range of Georgian government bodies and civil society groups, discussed potential cooperation on GRECO accession, and agreed to explore further collaboration on financial investigations, asset disclosure, and whistleblowing policies.

Other Financial Crime

Companies House Prioritises Data Integrity and Economic Crime Enforcement in 2026–27 Plan

Companies House has outlined its 2026–27 business plan, placing a strong emphasis on preventing, detecting, and disrupting economic crime as it continues its transformation under recent corporate transparency reforms. The agency plans to scale up automated data checks, cleanse inaccurate information on the register, strengthen data governance and expand lawful data‑sharing with enforcement partners, enabling more effective action against those who misuse the company framework. It will also take at least 225,000 enforcement and integrity‑focused interventions using the Registrar’s enhanced powers, while supporting businesses through new identity‑verification requirements. The plan positions Companies House as a more proactive guardian of corporate data, aiming to improve trust in the UK business environment and reduce opportunities for fraud and other economic crime.

Investment firm’s former CEO jailed for breaching SFO restraint order

Michael Thomson, former CEO of London Capital & Finance (LCF), has been sentenced to six months in prison after admitting to multiple breaches of a Serious Fraud Office (SFO) restraint order, including selling luxury items and receiving funds while his assets were frozen. His wife, Debbie Thomson, also admitted breaches and received a six‑month suspended sentence. The court noted that their actions, which were linked to an ongoing SFO investigation into suspected fraud and money laundering at LCF, resulted in the dissipation of more than £100,000 in restrained assets, affecting efforts to recover funds for the 11,000 investors who lost over £237 million.

ICO secures £355,880 confiscation order against former insurance worker following POCA hearing

The Information Commissioner’s Office obtained a £355,880.10 confiscation order against former Manchester motor insurance employee Rizwan Manjra, who previously admitted unlawfully accessing personal information for financial gain. The order, granted at Manchester Crown Court under the Proceeds of Crime Act, reflects the benefit he obtained from illegally accessing and selling data. Manjra has three months to pay or faces a default prison term of three years and six months, while remaining liable for the full amount. The action follows his earlier suspended sentence and includes an additional £1,500 costs order.

Briefing outlines opportunities and risks in UK police reform for economic crime enforcement

A new Spotlight on Corruption briefing examines how proposed UK policing reforms, which include merging the National Crime Agency into a new National Police Service, and potential loss of specialist units such as the City of London Police, could affect efforts to combat money laundering, corruption, and fraud. While the reforms may offer benefits such as streamlined structures and improved coordination, the briefing warns that without clear safeguards, independent oversight, protection of specialist expertise and adequate resourcing, the changes could weaken economic crime enforcement rather than strengthen it. The press release is here.

Cybercrime

US Cyber Agency Investigates Exposure of Sensitive Credentials on Public GitHub Repository

The US Cybersecurity and Infrastructure Security Agency (CISA) is assessing a significant security lapse after researchers discovered that a contractor had inadvertently exposed cloud keys, authentication tokens, and plaintext passwords for internal CISA systems on a public GitHub repository. The leaked material reportedly included high‑privilege AWS GovCloud credentials and access details for software‑supply‑chain infrastructure, raising concerns about potential lateral movement and compromise of federal systems. While CISA said there is no evidence that the exposed credentials were misused, security experts described the incident as one of the most severe operational security failures they had seen, highlighting systemic risks created by poor credential hygiene and unmanaged repositories. The episode has prompted warnings that similar vulnerabilities may exist across other government agencies, highlighting the broader economic and cyber‑risk implications of weak secret‑management practices.

Global Operation Dismantles Cybercriminal VPN Long Used to Shield Ransomware and Fraud Networks

An international law‑enforcement effort has taken down “First VPN,” a service which had quietly become a go‑to anonymity tool for ransomware groups, large‑scale fraud operations, and data‑theft crews. The platform, which for years was advertised on Russian‑language cybercrime forums, offered anonymous payments and infrastructure deliberately tailored for criminal use. This all combined to make it a fixture in almost every major Europol‑supported cybercrime case in recent years. Authorities in France and the Netherlands led the coordinated action, seizing 33 servers, shutting down multiple domains and arresting the administrator in Ukraine. Investigators say they obtained the service’s user database and identified thousands of accounts linked to ongoing criminal activity, a trove which is likely to generate new leads for ransomware, fraud and intrusion cases worldwide. While the takedown removes a layer of protection many offenders assumed would keep them out of reach, officials caution that the broader ecosystem enabling such services remains resilient, and further operations may be needed to disrupt similar infrastructure.