Friday, November 4, 2016



Complete DHS Report for November 4, 2016

Daily Report                                            

Top Stories

• An accountant and manager of several Kentucky businesses pleaded guilty October 31 after he and 3 co-conspirators allegedly defrauded several central Kentucky banks out of more than $40 million from 2006 – 2010. – Lexington Herald-Leader See item 2 below in the Financial Services Sector

• The operator of North Carolina-based Capital Management Wealth Advisors Inc. and APS Management LLC pleaded guilty October 31 for allegedly converting and misappropriating about $2.9 million from his clients’ bank accounts from May 2008 – August 2014. – U.S. Department of Justice See item 3 below in the Financial Services Sector

• Crews began work November 2 on a $265 million project to modernize the Oneida County Water Pollution Control Plant in Utica, New York. – Utica Observer-Dispatch

10. November 2, Utica Observer-Dispatch – (New York) $265M project to upgrade Oneida County water plant underway. Crews began work November 2 on a $265 million project to modernize the Oneida County Water Pollution Control Plant in Utica, New York, and mitigate stress on the county sanitary sewer system from heavy rain and snow melt through the installation of new anaerobic digesters and a new sanitary pump station, and renovation of the existing raw waste pump station, among other improvements. The project will be executed in several phases and is expected to be completed in 2021. Source: http://www.uticaod.com/news/20161102/265m-project-to-upgrade-oneida-county-water-plant-underway

• Authorities in Iowa are investigating after an Urbandale police officer and a Des Moines police sergeant were ambushed and killed while sitting in their squad vehicles roughly 2 miles apart from one another in Urbandale November 2. – CNN

17. November 2, CNN – (Iowa) 2 Iowa police officers killed; suspect in custody. Authorities in Iowa are investigating after an Urbandale police officer and a Des Moines police sergeant were ambushed and killed while sitting in their squad vehicles roughly 2 miles apart from one another in Urbandale November 2. A suspect was taken into custody for his alleged involvement in the killings.

Financial Services Sector

2. November 2, Lexington Herald-Leader – (Kentucky) Accountant admits guilt in $40 million central Kentucky bank fraud case. An accountant and co-owner and manager of several Kentucky businesses pleaded guilty October 31 for his role in a more than $40 million bank fraud scheme where he and 3 co-conspirators allegedly submitted information to 5 central Kentucky banks that inflated loan applicants’ income and assets and minimized or omitted their debts in order to improve their chances of being approved for loans from July 2006 – September 2010. The charges allege that the accountant and his co-conspirators caused banks to issue or renew loans to individuals who were not the actual borrowers, and used the money for purposes other than what they told the banks.
Source: http://www.kentucky.com/news/local/counties/fayette-county/article112076987.html

3. October 31, U.S. Department of Justice – (National) North Carolina businessman pleads guilty to misappropriating approximately $2.9 million in funds from NFL players. The operator of North Carolina-based Capital Management Wealth Advisors Inc. and APS Management LLC pleaded guilty October 31 for allegedly converting and misappropriating about $2.9 million from his clients’ bank accounts, including National Football League players and other professional athletes from May 2008 – August 2014, and for neglecting to report over $1.4 million of the embezzled funds on his Federal income tax returns between 2009 and 2013. The charges allege that the defendant instructed his clients to execute an agency agreement that permitted him access to the clients’ bank accounts and misrepresented to clients that he would only make transactions authorized by them and for their benefit. Source: https://www.justice.gov/opa/pr/north-carolina-businessman-pleads-guilty-misappropriating-approximately-29-million-funds-nfl

Information Technology Sector

See item 1 below from the Critical Manufacturing Sector

1. November 2, SecurityWeek – (International) Belkin WeMo devices expose smartphones to attacks. Invincea security researchers discovered two serious vulnerabilities affecting Belkin’s WeMo home automation devices and their associated Android applications, including a flaw that could be exploited to remotely gain root access to a WeMo device, and a cross-site scripting (XSS) flaw in WeMo’s Android app that could be exploited to execute arbitrary JavaScript code in the context of the Android application. Belkin has patched the security holes in the Android app and is working to release a firmware update to resolve the device flaws.

Communications Sector

Nothing to report