Monday, October 17, 2016



Complete DHS Report for October 17, 2016

Daily Report                                            

Top Stories

• Honda Motor Co., Ltd. issued a recall October 13 for 350,000 of its model year 2016 Honda Civic vehicles due to an issue affecting the electric parking brake where the brake may not work if it is applied immediately after turning the ignition off. – WWJ 62 Detroit; Associated Press

2. October 13, WWJ 62 Detroit; Associated Press – (National) Honda recalls 350,000 Civic coupes, sedans for brake issue. Honda Motor Co., Ltd. issued a recall October 13 for around 350,000 of its model year 2016 Honda Civic coupes and sedans sold in the U.S. due to an issue affecting the electric parking brake where the brake may not work if it is applied immediately after turning the ignition off, thereby increasing the risk of injury.

• The former vice president of Cay Clubs Resorts and Marinas was charged October 13 for his role in a more than $28 million scheme where he and a co-conspirator allegedly fraudulently sold the company’s units to insiders in order to falsely inflate the units’ prices from 2004 – 2008. – U.S. Attorney’s Office, Southern District of Florida See item 4 below in the Financial Services Sector

• Two former employees at Urbana Security National Bank in Urbana, Ohio, were indicted the week of October 10 after the duo allegedly embezzled $391,000 from the bank since 2009. – Springfield News-Sun (See item 5) below in the Financial Services Sector

• North Carolina officials reported October 12 that flooding from Hurricane Matthew killed as many as 5 million poultry birds in the State. – Reuters

15. October 12, Reuters – (North Carolina) Millions of North Carolina chickens die in Hurricane Matthew floods: state. The North Carolina Department of Environmental Quality reported October 12 that flooding from Hurricane Matthew killed as many as 5 million poultry birds in the State.

Financial Services Sector

4. October 13, U.S. Attorney’s Office, Southern District of Florida – (National) Former Cay Clubs chief financial officer charged with bank fraud and tax offenses. The former vice president and chief financial officer of Cay Clubs Resorts and Marinas was charged October 13 for his role in a more than $28 million scheme where he and a co-conspirator allegedly fraudulently sold the company’s units to insiders, using money from the company’s bank accounts to finance the cash to close for purchases while obtaining mortgage funding from lending institutions in order to falsely show demand for and inflate the prices of Cay Clubs units from 2004 – 2008. The charges also allege that in 2010 and 2011, the former vice president filed fake individual tax returns for tax years 2004 – 2006, significantly underreporting his income and hiding his receipt of millions of dollars in company earnings. Source: https://www.justice.gov/usao-sdfl/pr/former-cay-clubs-chief-financial-officer-charged-bank-fraud-and-tax-offenses

5. October 13, Springfield News-Sun – (Ohio) Urbana police allege bank employees stole $391,000. Two former employees at Urbana Security National Bank in Urbana, Ohio, were indicted the week of October 10 after the duo allegedly embezzled $391,000 from the bank since 2009. Source: http://www.springfieldnewssun.com/news/news/crime-law/urbana-police-allege-bank-employees-stole-391000/nsqPw/

Information Technology Sector

21. October 13, SecurityWeek – (International) Critical vulnerability patched in Cisco conferencing product. Cisco reported that its Cisco Meeting Server (CMS) prior to version 2.0.6 and Acano Server prior to versions 1.8.18 and 1.9.6 were plagued with a critical vulnerability affecting the Extensible Messaging and Presence Protocol (XMPP) service that could allow an unauthenticated attacker to access the system as another user if the XMPP is enabled on the affected devices, as the XMPP service incorrectly processes deprecated authentication schemes. The flaw was discovered during a routine security audit of a Cisco customer and there is no evidence the flaw has been exploited in the wild. Source: http://www.securityweek.com/critical-vulnerability-patched-cisco-conferencing-product

Communications Sector

See item 21 above in the Information Technology Sector