EV Company Founder Gets 4-Year Prison Sentence for Fraud

(Eli Pacheco, Headline USA) Nikola founder Trevor Milton received a four-year prison sentence on Tuesday for investor fraud—less than half what federal prosecutors sought in the case. 

Milton, 41, who founded the electric truck startup, faced a maximum of 60 years in prison. Federal prosecutors asked for an 11-year sentence for Milton, accused of lying to investors about Nikola’s hydrogen and electric truck technology. 

“Today’s sentence should be a warning to start-up founders and corporate executives everywhere—‘fake it till you make it’ is not an excuse for fraud, and if you mislead your investors, you will pay a stiff price,” the statement read.

In the statement, U.S. Attorney Damian Williams said Milton repeatedly lied to investors on social media, television, podcasts, and print.

Among the deceptions: In 2018, Milton posted on Twitter, footage of a truck cruising along a flat road.

Prosecutors said producers towed the Nikola One to a hilltop and released it. “The ‘driver’ released the brakes, and the truck rolled down the hill until being brought to a stop in front of the stop sign,” said the DOJ release.

Milton said a prototype semi-truck “fully functions and works,” according to prosecutors. Nikola One is a hydrogen-powered semi-truck, which was missing motors and a control system. 

The report on CNN.com stated that Milton’s lawyers had no comment.

According to a Justice Department release, Milton must also surrender property in Utah and pay a million-dollar fine. After his prison sentence, he’ll have three years of supervised release. 

Electric vehicles have hit a few speedbumps of late. 

Some electric vehicle manufacturers are scaling down or pausing production because consumer demand is low. Ford delayed a $12 billion plan in production, and General Motors has nixed a goal to make 400,000 EVs by mid-2024.

GM had contracted with Nikola on the deal until the fraud was exposed and pulled out shortly thereafter, sending the startup company’s stock plummeting. Shares peaked around $75 in June 2020 but are now worth about 9 cents apiece.

Kentucky Family Finds an Owl in Their Christmas Tree

(Headline USA) One Kentucky family got a little something extra when they picked out their Christmas tree this year: an owl.

Lexington resident Michele White told WDKY-TV that it’s a tradition for the family to pick out a Christmas tree every year and this year seemed no different.

They had the tree in their home for four days and didn’t notice anything unusual.

“I have three dogs,” White said. “We use this room nonstop: watch TV; the kitchen’s right here; no indication.”

Bobby Hayes, who owns Magic Carpet Cleaning and was at the home while the family was out, first noticed the bird after plugging in a piece of equipment and seeing the tree start to sway.

“The owl was literally sitting on a lower limb here,” Hayes said.

“It crawled up into the tree further,” Hayes said. “It took me several minutes to even find it.”

He sent photos to White, who said she was glad he was there to deal with the animal. Hayes said he was able to safely release the owl in the family’s backyard.

“Everybody’s going to be able to have a merry Christmas now,” Hayes said.

Adapted from reporting by the Associated Press

Colorado Threatens to Withdraw from Primary after Corrupt Judges’ Ruling

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(Jacob Bruns, Headline USA) In response to the Colorado Supreme Court’s controversial effort to block former President Donald Trump from the ballot by claiming he is ineligible under the “insurrection clause,” Republicans in the state have threatened to abandon the primary system and return to the caucus, the Independent Sentinel reported.

Dave Williams, the chairman of the Colorado Republican Party, announced the new plans for a caucus soon after the ruling was released.

“We’re going to do whatever we can to protect the rights of voters in Colorado, and frankly, across the nation to choose Donald Trump if they so choose,” Williams said.

He also noted that Republicans plan to appeal the ruling to the United States Supreme Court. The state’s high court promptly issued a stay of its own decision in anticipation of such a move due to the politically charged nature of its 4-3 decision. All of the justices were appointed by Democratic governors, and five of the seven by ethically challenged former Gov. John Hickenlooper.

“We’re a party to the case and we’re not going to take this lying down,” Williams added, announcing that the state party may plan to “withdraw from the primary and go to a strict caucus process that would allow our voters to choose Donald Trump if they want.”

The court’s ruling rests on an overly broad semantic interpretation of the word “insurrection” by the four-judge majority, rather than the more narrow and constrained legal definition.

Trump has never been found guilty of an insurrection, and the only time he came close to being charged for one—during his second impeachment trial—he was acquitted by the U.S. Senate, which presumably should have closed the matter on whether he was eligible to run again.

However, activist groups including the George Soros-funded Citizens for Responsibility and Ethics in Washington and Free Speech For People have continued to wage the lawfare attacks as a means of further undermining and destabilizing the democratic institutions—such as the justice system—that they ultimately hope to subvert as part of an overarching Marxist agenda.

The blatant attempt to disfranchise voters in an opposing political party via judicial fiat was “un-American,” Williams said.

“I don’t care if it’s a Republican majority Supreme Court in the United States or if it’s a Democrat majority here in Colorado, we don’t feel that this is the right thing to do,” he continued. “If we truly care about one man one vote and protecting our rights … let the people decide. Don’t take away our vote.”

Prior to Williams’s announcement that the state GOP was planning to abandon its primary,  Republican presidential candidate Vivek Ramaswamy had also pledged to rally in support of the frontrunning candidate by withdrawing from the Colorado ballot altogether until Trump’s name is reinstated.

He called on the other GOP rivals in the field to do the same.

Even anti-Trump Republican candidates Chris Christie and Nikki Haley said that Trump ought to remain on the ballot, with Christie noting that Trump should not be prevented from being president by “any court” but from the voters.

“This is probably premature and jumping ahead of it, and I think it would cause a lot of anger in this country if people had the choice taken away from them,” Christie said at a campaign event just before the ruling was released.

Haley suggested that “we don’t need to have judges making these decisions, we need voters to make these decisions.”

Of course, they may have their own interests at heart in condemning the decision also, given the fact that Trump’s political persecution has thus far worked to his advantage in drawing even more voters to him.

GOP establishment pollster Frank Luntz predicted more of the same in an interview Tuesday night on CNN.

“It’s going to be exactly what the indictments did, it’s going to be exactly what the criticisms have done,” Luntz argued.

“Donald Trump thrives on negativity,” Luntz continued. “He thrives on legal systems that try to hold him accountable, and I’m convinced that his polling numbers are going to go up.”

Headline USA’s Ben Sellers contributed to this report.

Report: Less Than 0.4% of Jan. 6 Footage Released So Far

(Ken Silva, Headline USA) At this rate, the Jan. 6 inmates rotting in prison will have served their entire sentences before all the footage from the Capitol Hill protest-turned-riot is released.

According to an analysis from CBS News, the House GOP has only released about 0.4% of the more than 44,000 hours of Jan. 6 footage. The report comes as House Speaker Mike Johnson claims to be keeping his promise to release all the videos.

CBS reported Wednesday that just about 162 hours of footage is available on a House Republican Rumble web page or on the House Administration Committee’s government site.

Citing multiple congressional staffers, CBS said one batch is the same 90-hour set previously made available to former Fox News host Tucker Carlson. The second batch is reportedly  24-hour chunks from three main security cameras.

A spokesman for GOP Rep. Barry Loudermilk of Georgia, who oversees the subcommittee managing the footage, reportedly promised to upload new sets of video each week.

“Each video must be converted out of the proprietary CCTV format and into a format that can be uploaded. Unfortunately, when the video is converted, it doesn’t retain the time stamp,” the spokesman said, according to CBS. “This is an issue we are aware of and plan to embed time stamps in the videos in the future. For now, the title of each video indicates down to the millisecond what time the clips start.”

Officials reportedly told CBS that “the task of posting the footage is daunting and has no firm deadline for completion.”

But that’s not good enough for Jan. 6 defendants and other MAGA supporters.

“The task doesn’t have to be daunting,” Jan. 6 defendant William Pope said on Twitter. “Congress could transfer all the video directly to a web server very quickly. But they are dragging their feet and blurring feds!”

Pope was referencing the fact that many faces in the released footage have been blurred. To MAGA supporters and others, this defeats the point of releasing the footage—which was to spot possible undercover informants and agent provocateurs in the crowd. It’s also costly and time-consuming, as evidenced by Wednesday’s CBS report.

The limited footage released outside the Justice Department’s channels has been revelatory.

For instance, footage obtained by Tucker Carlson showed that Jacob Chansley—also known as QAnon Shaman—peacefully strolling through the Capitol with a police escort—undermining the narrative that he was a violent insurrectionist.

More substantially, Blaze Media claims to have reviewed footage that contradicts sworn testimony that a Capitol Police Special Agent gave at the Oath Keepers’ sedition trial last year.

Ken Silva is a staff writer at Headline USA. Follow him at twitter.com/jd_cashless.

SCOTUS Case Could Undo Jan. 6 ‘Obstruction’ Charge against 300, including Trump

(Headline USA) The Supreme Court last week said it will hear an appeal that could upend hundreds of charges stemming from the Jan. 6 Capitol uprising, including against former President Donald Trump.

The justices will review a charge of “obstruction of an official proceeding” that has been brought against more than 300 people. The charge refers to the disruption of Congress’s certification of Joe Biden’s 2020 Electoral College victory over Trump.

That’s among four counts brought against Trump in special counsel Jack Smith’s case, which accuses the 2024 Republican presidential primary front-runner of conspiring to overturn the results. Trump is also charged with conspiracy to obstruct an official proceeding.

The court’s decision to weigh in on the obstruction charge could threaten the start of Trump’s trial, currently scheduled for March 4. The justices separately are considering whether to rule quickly on Trump’s claim that he can’t be prosecuted for actions taken within his role as president. A federal judge already has rejected that argument.

A lawyer for Trump didn’t immediately return a message seeking comment on the Supreme Court’s decision to review the charge.

The Supreme Court will hear arguments in March or April, with a decision expected by early summer.

The obstruction charge, which carries up to 20 years behind bars, is among the most widely used felony charges brought in the massive federal prosecution following the Jan. 6, 2021, protest—when a throng of Trump supporters entered the U.S. Capitol to petition the Joint Session of Congress to redress their grievances over the heavily disputed election.

At least 152 people have been convicted at trial or pleaded guilty to obstructing an official proceeding, and at least 108 of them have been sentenced, according to an Associated Press review of court records.

A lower court judge had dismissed the charge against Joseph Fischer, a former Pennsylvania police officer, and two other defendants, ruling it didn’t cover their conduct. The justices agreed to hear the appeal filed by lawyers for Fischer, who is facing a seven-count indictment for his actions on Jan. 6, including the obstruction charge.

The other defendants are Edward Jacob Lang, of New York’s Hudson Valley, and Garret Miller, who has since pleaded guilty to other charges and was sentenced to 38 months in prison. Miller, who’s from the Dallas area, could still face prosecution on the obstruction charge.

U.S. District Judge Carl Nichols found that prosecutors stretched the law beyond its scope to inappropriately apply it in these cases. Nichols ruled that a defendant must have taken “some action with respect to a document, record or other object” to obstruct an official proceeding under the law.

The Justice Department challenged that ruling, and the appeals court in Washington agreed with prosecutors in April that Nichols’s interpretation of the law was too limited.

Other defendants, including Trump, are separately challenging the use of the charge.

Defense attorney Kira Anne West, who has represented several Jan. 6 defendants charged with obstruction of an official proceeding, said the courts will have to “undo a whole bunch of cases” and adjust many sentences if the Supreme Court rules in their favor.

“This is a watershed day,” she said. “In our world—defense lawyer world—this is huge.”

West represents a man scheduled to be tried in early January on charges including the obstruction count. She doesn’t yet know if she will seek a delay until the Supreme Court resolves the challenge.

More than 1,200 people have been charged with federal crimes stemming from the riot, and more than 700 defendants have pleaded guilty.

Adapted from reporting by the Associated Press

FBI Spied on Calls between Hawaii and Japan before Pearl Harbor, New Records Show

(Ken Silva, Headline USA) The FBI finally released its Pearl Harbor file on Monday, showing that the bureau was monitoring phone calls between Hawaii and Japan ahead of the Dec. 7, 1941, attack.

The records, which remain heavily redacted more than 80 years after the fact, also show that the FBI investigated—but found no evidence of—subversive activities by Japanese people living in Hawaii before and after Pearl Harbor.

According to the records, the FBI began a surveillance operation in Hawaii in August 1941, after the U.S. ceased oil exports to Japan and after commercial vessels stopped travelling between the islands.

“In order that the Honolulu field division may be advised more fully of Japanese activities, it is deemed necessary that a technical surveillance be established on all trans-Pacific telephone communications between the territory of Hawaii and Japan,” Special Agent in Charge R.L. Shivers said in an Aug. 23, 1941, memo.

“Through confidential contacts [REDACTED] arrangements may be made for the installation of this service.”

By November, the FBI’s surveillance was up and running, according to a Nov. 10, 1941, memo from Shivers to then-FBI Director J. Edgar Hoover.

“This is to advise that a technical surveillance was established [REDACTED],” Shivers told Hoover.

“Through confidential informants of this office, arrangements were made to have connections made at the [REDACTED] by means of a [REDACTED] circuit between Hawaii and Japan.”

For the next couple of weeks, agents in Hawaii logged their surveillance of calls made to and from Japan.

However, most of those records remain redacted. For instance, one log on Nov. 17, 1941, states: “On [REDACTED], a call was intercepted [REDACTED].”

One unredacted record does mention that the FBI believed there was heavy censorship in Japan. Then-FBI Special Agent George Allen said he interviewed an American passenger who arrived from Japan on Nov. 1, 1941. That passenger said all calls out of Japan must be made in Japanese—and that operators were monitoring calls to enforce that rule, according to Allen.

The FBI’s monitoring of calls obviously didn’t prevent Japan from attacking Pearl Harbor—killing 2,403 Americans, and destroying four battleships and numerous other vessels. Subsequent research has found that President Franklin Roosevelt had foreknowledge, and likely provoked, the Pearl Harbor attack so that the U.S. could enter World War 2.

After the attack, the FBI was tasked with investigating Japanese citizens in Hawaii for allegedly plotting against America.

However, the FBI found no evidence of this.

In fact, the bureau blasted Navy Secretary Frank Knox for lying to the American public in the wake of the attack, when he said that “fifth column activity in Hawaii is the most effective that has come out of this war except Norway.” “Fifth column activity” was a reference to German or Japanese citizens in America plotting subversive activities.

“I advised the Bureau in the telegram of December 15, 1941, that this statement mas false in the main and highly exaggerated in last, as there had been no instances of sabotage subsequent to the Japanese air raid on the morning of December 7, 1947,” Shivers said in a Dec. 26, 1941, memo—referencing the public statement made by Knox.

“There have been many reports of sabotage which, when investigated, proved to be false and without foundation,” he said.

“It is realized, of course, that there will probably be acts of sabotage committed of the super-patriotic Japanese nationals, but every effort in tow being made in an investigative way to deprive such individuals of the means and material for committing these acts,” he added.

Ken Silva is a staff writer at Headline USA. Follow him at twitter.com/jd_cashless.

DOJ Begins Process to Unmask Clients of High-End Prostitution Ring

(Ken Silva, Headline USA) U.S. Attorney Joshua S. Levy, who’s overseeing the prosecution of a high-end prosecution ring, has vowed to prosecute the elected officials, military officers and other high-powered officials involved in the sex-trafficking operation.

Levy promised this in a Monday update on his investigation into an interstate prostitution network with multiple brothels in Cambridge and Watertown, Mass., as well as in Fairfax and Tysons, Va.

“Our office made it clear when we announced charges of a commercial sex ring case on Nov. 8, 2023, that the investigation was ongoing and that there would be accountability for the buyers who fuel the commercial sex industry,” Levy said.

“Today, a Homeland Security Investigations Task Force Officer with the Cambridge Police Department submitted applications for complaints against 28 sex buyers with the Cambridge District Court. Until probable cause has been found, no names will be released,” he said.

“In addition, we are working closely with Virginia state authorities to begin the referral process of sex buyers from the Virginia locations in this case.”

So far, the Justice Department has charged the three defendants—Han Lee and Junmyung Lee of Massachusetts, and James Lee of California—with operating the sex-trafficking network.

Han, a female, was born in Korea and came to the U.S. in 2014 on a visitor’s visa on which she overstayed, while Junmyung was born in Korea and came to the U.S. in 2018 on a student visa to study at the Computer Systems Institute in Boston. Documents don’t indicate where James is from.

The defendants allegedly established the infrastructure for brothels in multiple states which they used to persuade, induce and entice women—primarily Asian women—to travel to Massachusetts and Virginia to engage in prostitution, according to the DOJ.

“Specifically, the defendants allegedly rented high-end apartment complexes as brothel locations, which they furnished and regularly maintained. The monthly rent for the brothel locations were as high as $3,664,” the DOJ said in a press release.

Over the course of the investigation, the DOJ said it identified a wide array of buyers, including politicians, high tech and pharmaceutical executives, doctors, military officers, government contractors that possess security clearances, professors, lawyers, scientists and accountants.

Those clients were required to undergo thorough background checks, according to the DOJ’s charging documents.

“Typically, first-time clients are required to complete a form on the websites,” said Homeland Security investigator Zachary Mitlisky in an affidavit. “For www.bostontopten10.com, the form includes the clients having to provide their names, email address, phone number, employer, and reference if they have one.”

The defendants face up to 20 years in prison, three years of supervised release and a fine of up to $250,000 for the charge of conspiracy to coerce and entice to travel to engage in illegal sexual activity.

Ken Silva is a staff writer at Headline USA. Follow him at twitter.com/jd_cashless.

Ketanji Brown Jackson Faces Ethics Complaint Over Hubby’s Finances, Lavish Party

(Luis Cornelio, Headline USA) The Center for Renewing America, a conservative non-profit, filed a scathing ethics complaint with the Judicial Conference against Supreme Court Justice Ketanji Brown Jackson, accusing her of “willfully” failing to disclose part of her husband’s decade-long income. 

The conservative non-profit argued that the failure to report Dr. Patrick G. Jackson’s income from his medical malpractice consulting business warrants an ethics investigation by Attorney General Merrick Garland. 

The letter, first reported by Fox News on Tuesday, also highlighted Jackson’s alleged failure to disclose the private funding sources for her lavish celebration at the Library of Congress in her most recent financial disclosure form.

“The Conference should open an investigation to determine if Justice Jackson needs to remedy this potential omission,” read the letter, addressed to the Judicial Conference Secretary.  

“Given the need to ensure the equal application of the law and the tendency of these violations to create serious recusal issues and conflicts of interest, the Conference’s prompt attention is of paramount public importance,” the letter added.

The letter alleged that Jackson disclosed the names of two legal medical malpractice entities that paid her husband over $1,000 in 2011. However, Jackson has not specified any income from the consulting business since her appointment to the Supreme Court. 

“We know this by Justice Jackson’s own admission in her amended disclosure form for 2020, filed when she was nominated to the Supreme Court, that ‘some of my previously filed reports inadvertently omitted’ her husband’s income from ‘consulting on medical malpractice cases,’” the letter continued. 

The conservative non-profit argued that Jackson had not specified the years for which her husband was compensated for his consulting services, raising concerns about potential conflict of interests in future cases. 

The conservative group also raised ethical concerns about Jackson’s celebration at the Library of Congress to commemorate her appointment to the Court.

Prominent musicians, including the Smithsonian Jazz Masterworks Quartet and civil rights movement Freedom Singer Rutha Mae Harris, were part of the fest; however, Jackson has not disclosed who funded the event.

Notably, as per the letter, she is required to disclose any gifts worth over $415. In 2022, Jackson admitted that she received flowers from Oprah Winfrey worth $1,200 and a designer jacket from Vogue Magazine worth $6,580. 

“Justice Jackson thus cannot claim ignorance of EIGA’s gift disclosure requirements, and there is no serious argument that this ‘massive event featuring performances by several musicians and groups’ celebrating her investiture is not a ‘thing of value,’” the letter said. 

The Center for Renewing America is a think tank founded by Russell Vought, the former Trump director of the Office of Management and Budget.

Unhinged Ex-Google Employee Admits Threat to Kill Justice Roberts

(Luis Cornelio, Headline USA) Neal Sidhwaney, a Florida man suffering from paranoia and delusions, pleaded guilty to threatening to murder Supreme Court Justice John Roberts, the DOJ announced on Monday. 

The 43-year-old had an eight-year tenure as a Google programmer before admitting to transmitting an interstate threat aimed at Roberts. This occurred when he made a call to the Supreme Court from his Florida home, leaving a curse-laden message against a justice, prosecutors said.

Federal investigators stated that the man identified himself by name and made repeated threats against the life of a justice. Although the DOJ did not specify the targeted justice, a psychologist’s report identified Roberts as the focus, according to the New York Post.

“Yeah hi, my name is Neal Sidhwaney, uh, this message is for [Roberts]…. I will f—king kill you … Go f—king tell the Deputy US Marshals you f—ing p—y,” the man said in the call, according to court documents reviewed by the NY Post. 

Additionally, the unhinged man said, “I will f—king talk to them and then I’ll f—ing come kill you anyways, you f—ing c—.”

Although a sentencing date hasn’t been scheduled, the man could face a maximum sentence of five years.

“This case was investigated by the Supreme Court of the United States Police – Protective Intelligence Unit with assistance from the United States Capitol Police –Threat Assessment Section,” the DOJ said in a statement.” 

According to a report by the NY Post, a psychologist evaluation found the perpetrator fit for trial but suffering from “delusional disorders with psychosis.” 

Dr. Alan J. Harris noted, “According to his parents he believes a private agency has been following him. However, his paranoia began in 2017 when he left Google.”  

Harris said the man worked for Google for approximately eight years. The doctor added, “According to his mother he becomes enraged watching the news which triggers him to write letters and emails or to make phone calls.” 

Roberts isn’t the first justice to be targeted by individuals. In June 2022, Nicholas Roske was arrested for allegedly plotting to kill Justice Brett Kavanaugh, a Trump appointee. 

In 2022, leftist activists have protested at the homes of justices, especially those with conservative leanings, following the Supreme Court’s overturning of a federal protection for abortions.

Trump Solicits Challenger for Pro-DeSantis ‘RINO’ Chip Roy

(Molly Bruns, Headline USA) Former President Donald Trump published a job posting for a primary candidate who could challenge current Rep. Chip Roy, R-Texas.

In the post, Trump called Roy a “RINO,” and “very beatable,” according to The Messenger.

“Has any smart and energetic Republican in the Great State of Texas decided to run in the Primary against RINO Congressman Chip Roy,” Trump asked in the post. “For the right person, he is very beatable. If interested, let me know!!!”

The post came seven days after the Texas primary filing deadline of Dec. 11.

Roy will face one Republican challenger for Texas’s 12th district, which includes the city of Austin: Kirstin Hook, a biological scientist based in San Antonio.

Roy and Trump previously butted heads on Roy’s bid for chair of the House Republican Conference. Trump endorsed Rep. Elise Stefanik, R-N.Y., who now holds the seat.

Roy also encouraged the certification of Joe Biden’s presidency in the contentious days following the 2020 election.

He also claimed that the government lacked the tools, data and information to fight election fraud, ignoring the many fruitful investigations that took place across the nation since the start of Biden’s presidency.

Throughout the tense months following the 2020 election, Roy pressed Trump and his staff to “tone down the rhetoric” and avoid “whipping his base into a conspiracy frenzy.”

Despite the history of controversy, Roy did question the timing of Trump’s arrest in August along with several other Republicans.

“President Trump is right to fight this political prosecution—the rule of law depends on it,” Roy tweeted.

However, since then, Roy has come down hard on MAGA supporters in an appearance on Steave Deace’s podcast.

“You want to come at me and call me a RINO? You can kiss my a**!” he said during the interview.

Roy enthusiastically endorsed candidate and Florida Gov. Ron DeSantis for the 2024 presidential race.