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Telegraph
12 hours ago
- Business
- Telegraph
How ‘ethical' banking is putting British defence firms at risk
Should British troops ever find themselves fighting World War Three, they may be glad of the time they spent with a bad-tempered robot capable of shouting at them in Russian, Arabic and Chinese. The SimStriker is an AI-powered android used to train infantry in everything from full-scale combat to peacekeeping. It can play the role of enemy soldier, traumatised civilian or hostile villager – and like a moody Alexa, it can interact and answer back. If provoked, it can even open fire, Terminator-style, with a pellet gun hidden in its abdomen. 'The idea is to blend the physical and virtual worlds,' says James Crowley, one of two former Royal Marines who set up 4GD, the aerospace tech firm behind SimStriker. 'Often soldiers won't have much idea of the environment they're going into, and this allows us to create a tiered system of behaviours – the robot can respond passively or aggressively, depending on a soldier's actions.' Founded in 2016, 4GD is exactly the kind of next-generation defence firm Britain needs to keep its military fit for the 21st century. There is one foe, however, that even SimStriker can't simulate – a bank manager. Despite helping to defend the realm, UK defence firms often struggle to obtain loans or insurance. Some have been denied bank accounts altogether, or 'debanked' (the process by which accounts are abruptly closed at a bank's discretion) after existing ones were shut down. The trend is largely driven by banks' reputational concerns – particularly the belief that defence companies fall foul of the financial sector's so-called 'environment, sustainability and governance' (ESG) standards. The squeamishness persists even though many firms, such as 4GD, manufacture only non-lethal products – and despite growing recognition, including from the Prime Minister, that Britain must rearm at pace. 'There has been a reticence to see defence as a moral and ethical investment that needs to be supported, although with war now on Europe's doorstep, that has changed significantly,' Crowley says. 'If we want to support our nation as a democratic institution, then we need a robust defence industry.' As he points out, the Russia-Ukraine war has pushed defence spending back up the political agenda. This month's Strategic Defence Review (SDR) pledged to raise spending from 2.5 to 3 per cent of GDP, while Sir Keir Starmer has spoken of the need for 'war fighting readiness' and a longer-term goal of increasing defence spending to 5 per cent by 2035. Many banks, however, still group arms firms alongside tobacco giants, rapacious oil majors, and Reform Party leader Nigel Farage – who was infamously 'debanked' by NatWest-owned Coutts in 2023. That, certainly, is the impression given by a recent report from the trade body ADS (Aerospace, Defence, Security and Space), which represents more than 1,500 small defence firms. Nearly three quarters of members who took part in an ADS survey said they had struggled to access basic banking services. Roughly half also reported difficulties securing loans and investment, with the trade body warning that the financial barriers are so severe some companies 'risk going under' as a result. One firm's owner, who asked to remain anonymous, told the survey: 'The financial sector has completely decimated the defence industry, they'd rather have an account with the local car wash than a firearms dealer or somebody in the defence industry.' The owner's wish for anonymity is hardly surprising. Many defence businesses, especially smaller ones, are wary of criticising the banking sector, which can terminate accounts without giving a reason. Firms and banks are also targeted by anti-arms trade activists, galvanised by the Israel-Gaza conflict. Last summer, campaigners from Palestine Action vandalised around 20 Barclays branches across the UK, demanding the bank divest from 'Israel's weapons trade'. (The group is now set to be proscribed as a terrorist organisation after its activists breached security at an air base to damage two RAF planes last week.) 4GD is one of the few defence firms willing to speak out, and Crowley's co-founder, Afghanistan veteran Rob Taylor, doesn't pull his punches. The firm, he says, has effectively given up on attending investment meetings in the UK, having been turned down point-blank as soon as the word 'defence' was mentioned. And while 4GD has never been 'debanked', it remains an occupational hazard in the defence trade. 'We are aware of other companies that have been debanked once they have been discovered to be defence firms,' Crowley says. 'It's infrequent, but frequent enough that it's not a surprise when it happens.' One problem is that UK banks are not currently required to explain why they shut down accounts – and if challenged, they can easily obfuscate, citing business reasons rather than reputational concerns. Last year, however, a Treasury select committee on access to banking was told that Santander and Lloyds alone closed 300 accounts belonging to 'public administration and defence' companies. While no reasons were given for the closures, the committee's report stated that ESG criteria should not be used to blacklist firms 'engaged in perfectly legal defence activities'. The term 'ESG' was first coined 20 years ago during a United Nations-led push to promote global corporate social responsibility, but it gained real traction after the 2008 financial meltdown, when scandal-ridden banks sought to signal they were cleaning up their act. Once a relatively niche concept, 'ethical investment' quickly went mainstream. Banks and financial firms also faced growing social media pressure if they failed to comply. One UK company that noticed the shift was Devon-based engineers SC Group, which manufactures all-terrain vehicles for the British military. Its products include the Jackal armoured patrol vehicle, featuring special V-shaped hulls designed to deflect improvised explosive device (IED) blasts, and credited with saving countless British soldiers' lives in Afghanistan. That seemed to count for little when CEO Nicholas Ames found himself seeking finance five years ago. 'We were surprised at how restricted the market had become, with lots of people saying we don't do defence, it's against our ethics committee,' Ames says. 'We were flatly told by HSBC, for example, that they didn't do defence. That was when I began thinking: 'This is a systemic issue for the UK government, if it wants a strong UK defence industry'.' To their credit, he says SC Group's regular bankers, NatWest, 'has always stuck with us'. But other businesses sometimes shunned the firm, he added, including suppliers of certain parts and website and IT contractors. Defence firms also find it hard to qualify for awards promoting socially responsible companies, such as the 'B Corp' certification. The ESG equivalent of a Michelin Star, B Corp certificates recognise firms that 'balance profits with people and planet'. Certificate holders include The Body Shop and Charlie Bigham's food. However, according to B Corp guidance, defence firms 'are controversial because their services could be misused in ways that may harm others'. Phil Doye is chief executive of the IT procurement firm Boxxe, which counts defence sector clients among others and applied for B Corp certification in 2021. However, despite passing a rigorous audit, the firm decided not to proceed after being told it would have to post a public statement explaining why it was willing to work with defence companies. 'We were keen to obtain B Corp certification, as we agree with the broad idea of socially responsible business, but the public statement might have seemed to our defence clients like we were embarrassed to do business with them,' Doye says. 'You could say that the B Corp definition of defence as 'controversial' is itself somewhat controversial.' Defence industry sources say the Russia-Ukraine war has brought a much-needed reality check, with the Labour government shedding any knee-jerk opposition to the arms industry. Two Labour MPs, Luke Charters and Alex Baker, have led a campaign to help defence firms access finance. The Government also wants the Ministry of Defence – the main client for many defence products – to provide suppliers with clearer long-term signals about their spending plans. The UK Sustainable Investment and Finance Association (UKSIF), which represents investors, insists that this, rather than over-fussy ESG criteria, is often what makes defence firms unattractive investment prospects. There is still a long way to go, though. While some banks may lift their blanket bans on defence products, they may still baulk at the more lethal end of the industry – the stuff that, as Crowley puts it, might 'make a bank manager wince'. One of Britain's most successful arms firms is firearms manufacturer Accuracy International, founded 50 years ago by ex-Olympic sharpshooters. In what is perhaps the ultimate product endorsement, its sniper rifles are used by both British and American special forces. But as favoured tools of professional assassins, they are unlikely ever to receive B Corp certification. Yet sniper rifles are as essential to modern warfare as any other military equipment. So too are cluster munitions and anti-personnel mines, which have proved crucial in Ukraine's defence – though Britain neither makes nor possesses them anymore, having signed global treaties banning their use. A time may come when British firms will have to produce these weapons again – and may once more be seeking bank managers' support. Certain Labour politicians, meanwhile, continue to act as if nothing has changed. In the wake of the Israel-Gaza conflict, four Labour-run London councils – Tower Hamlets, Waltham Forest, Islington and Lewisham – have divested staff pension schemes from arms trade firms. In 2023, investment giant Aviva was also criticised by ministers after announcing it would sell off arms shares as part of 'a baseline exclusion policy'. Aviva later backtracked, blaming a badly worded memo. However, any swing of mood back in favour of defence firms has convinced Ames that despite all the recent talk about ESG, bankers' only real language is money. 'Now that defence is a hot topic again, suddenly you sense that the financial community has got over their ethics, as they see there's money flowing,' he says. 'That makes it almost worse in a way – I had no idea they were quite so shallow.'
Yahoo
07-05-2025
- Yahoo
Several Mass. men among 205 accused child sex predators arrested in nationwide crackdown, FBI says
A former college admissions director and a doctor employed at a VA Medical Center are among several accused child sex predators from Massachusetts arrested during a five-day nationwide crackdown, FBI officials said Wednesday. The men arrested also include a Level 3 sex offender from Chicopee, a Level 2 sex offender from Raynham, and others from Duxbury, Holyoke, Agawam, Wareham, and Douglas. Last week alone, the FBI arrested 205 people and rescued 115 children across the country as part of Operation Restore Justice, 'a five-day, sweeping FBI-led initiative to identify, track, and arrest child sex predators across the country with all 55 FBI field offices participating, including FBI Boston.' 'This was a joint effort with local, state, and federal partners to highlight our ongoing efforts to confront these crimes. The subjects arrested in this operation included those in positions of public trust – law enforcement, members of the military, and teachers,' the FBI said in a statement Wednesday. 'Others are your neighbors, proving criminal activity can be found in the most familiar places." 'There are few situations more urgent than when a child is physically at risk, and as 'Operation Restore Justice' has shown, child predators come in many different forms,' James Crowley, Acting Special Agent in Charge of the FBI's Boston Division, said in a statement. 'As horrific as these alleged crimes are, they are not rare,' Crowley said, adding that FBI Boston's Child Exploitation-Human Trafficking Task Force 'is committed to finding these child sex abusers, locking them up, and ensuring those they have victimized are safe and well-supported.' U.S. Attorney Leah Foley said in a statement that 'Protecting children from exploitation is among the most sacred responsibilities we have as law enforcement.' 'Each case serves as a difficult reminder that child predators are embedded in our communities – often in roles that increase their direct exposure to or contact with children or allow them to hide behind a keyboard online,' Foley said. 'But make no mistake, we will uncover them, arrest them, and hold them accountable, no matter how long it takes or how far we have to go.' The FBI Boston arrested and charged seven people, including: Jacob Henriques of Boston, a former Assistant Director of Admissions at Emmanuel College, who is charged with attempted sex trafficking of a minor. Henriques is accused of soliciting an underage college applicant to engage in commercial sex with him. Level 1 sex offender Justin Ouimette of Holyoke, who was previously convicted by the state for possessing child pornography, has been charged federally with possessing child sex abuse material. According to the court documents, in July 2024, during a search of Ouimette's residence and person, over 200 files that appeared to depict child sex abuse material, including children as young as three years old, were allegedly located on Ouimette's electronic devices. A search of Ouimette's Dropbox resulted in the discovery of an additional 200 files allegedly depicting CSAM. Cess Frazier of Boston, who is charged with allegedly receiving child sexual abuse material. During a search of Frazier's cell phone, approximately 100 media files that depicted CSAM were allegedly found saved in Telegram Messenger. The minor victims in the files are alleged to be between approximately three and 10 years old. Warren Messeck of Agawam, who is charged with allegedly possessing child sexual abuse material. During a search of his residence, the FBI recovered over 40 electronic devices including a laptop, hard drives, and other electronic storage devices. A forensic examination allegedly revealed over 10,000 files depicting CSAM on six devices. Brandon Bendall , of Wareham, who is charged with allegedly possessing and receiving child sexual abuse material. During a search of Bendall's residence and cell phone, approximately 9,400 images and videos of CSAM, including images of children as young as infants being sexually assaulted, were allegedly located. Registered sex offender David Fernandes III of New York, who is charged with allegedly sending obscenity to an 11-year-old in Massachusetts and being a registered sex offender when he did it. Registered sex offender Joseph A. Maile of Presque Isle, Maine, who is charged by criminal complaint for allegedly attempting to sex traffic a child, and enticement of a minor. Maile allegedly used social media accounts to offer various minors' money to engage in sex acts with him. Throughout the entire month of April, including the weeks leading up to this surge, the FBI, along with state and local law enforcement partners, arrested an additional 190 perpetrators on charges related to crimes against children. They are accused of various crimes including the production, distribution, and possession of child sexual abuse material, online enticement and transportation of minors, and child sex trafficking. 'With nearly 400 arrests in one month, these actions are the direct results of the FBI's continued efforts to track down and stop sexual predators before they can harm more victims,' FBI officials said. Special agents and officers on FBI Boston's Child Exploitation – Human Trafficking Task Force arrested 26 people last month, including: Level 3 Sex Offender Carl Norton , of Chicopee, who was previously convicted of attempted rape of a minor and unlawful contact with a minor, was charged federally for allegedly transferring obscene material to a minor female victim who he believed to be 12 years old. Level 2 Sex Offender Dache Barros , of Raynham, who was charged by the Raynham Police Department with allegedly possessing child sexual abuse material following an investigation by FBI Boston's Child Exploitation – Human Trafficking Task Force and the Boston Police Department. Daniel Debreczeni , of Duxbury, who was charged federally with allegedly distributing child sexual abuse material. Debreczeni is accused of distributing three videos containing child pornography by posting the videos on a file sharing site. The children in the three videos appeared to be between approximately two, three and eight years old. Sven Knudsen Ljaam , a physician employed at the Veterans Affairs Medical Center in Bedford, Mass., was charged federally for allegedly receiving and possessing child sexual abuse material. Shakera 'Stacks' Pina , of Boston, who was charged by the Boston Police Department for allegedly engaging in human trafficking, deriving support from prostitution, resisting arrest, and possession of a Class D Substance (Marijuana) with Intent to Distribute, following a joint operation between Boston Police Department's Human Trafficking Unit and FBI Boston's Child Exploitation - Human Trafficking Task Force. Miguel Gietany , of Douglas, who was arrested in Rhode Island on state charges following a joint operation with the Rhode Island State Police and the FBI. Gietany is charged with two counts of indecent solicitation of a child. He allegedly traveled to Rhode Island to have sex with whom he believed was a 14-year-old boy. David Kaufman, of Maryland, who was charged federally for allegedly coercing and enticing an 18-year-old from Massachusetts to travel to his penthouse at the Four Seasons and engage in in sex acts with him, which he video-recorded. According to court documents, Kaufman has allegedly been victimizing teenage minors, paying them to travel and engage in sex acts with him. FBI Boston's Child Exploitation – Human Trafficking Task Forces investigate these cases and coordinate and bolster efforts to counter all threats of abuse and exploitation that fall under FBI jurisdiction in the region, officials said, including the production, sharing, and possession of child sexual abuse material; domestic or international travel to engage sexually with children; sex trafficking, and the extortion of children to provide sexually explicit material of themselves. The units also work to identify, locate, and recover child victims in addition to capturing sex offenders. The FBI partners with the nonprofit National Center for Missing and Exploited Children, which receives and shares tips about possible child sexual exploitation reported via its 24-hour hotline at 1-800-THE-LOST and on In 2004, the FBI launched the Endangered Child Alert Program to identify individuals involved in the sexual abuse of children and the production of child sexual abuse material. To date, ECAP has identified 36 individuals. 'This operation was the result of a dedicated and targeted effort, reflecting countless hours of work by hundreds of special agents, intel analysts, and other FBI personnel,' FBI officials said Wednesday. 'It further highlights the FBI's commitment to protecting children and raising awareness about the dangers they face,' officials said. 'While the Bureau works relentlessly to investigate these crimes every day, this effort also serves as a powerful reminder of the importance of prevention and community education.' This is a developing story. Check back for updates as more information becomes available. Download the FREE Boston 25 News app for breaking news alerts. Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW
