AT WORK ON THE AMPHIBIOUS TRANSPORT SHIP USS NEW YORK

The amphibious transport dock ship USS New York (LPD 21) performs simultaneous well deck and flight deck operations. New York is part of the Iwo Jima Amphibious Ready Group and has embarked elements of the 24th Marine Expeditionary Unit (24th MEU) and is deployed supporting maritime security operations and theater security cooperation efforts in the U.S. 6th Fleet area of responsibility. U.S. Navy photo by Mass Communication Specialist 3rd Class Ian Carver (Released) 120507-N-XK513-008

EPA: SYSTEMS USED TO CAPTURE HARMFUL VAPORS AT GAS STATIONS WILL BE PHASED OUT

Photo:  Wikimedia   
FROM:  U.S. EVIRONMENTAL PROTECTION AGENCY
EPA Updates Clean Air Act Requirements for Gas Stations to Reflect New Vehicle Technologies
Widespread use of advanced vehicle technologies capture harmful gasoline vapors when refueling, delivering more cost-effective emissions reductions

WASHINGTON - The U.S. Environmental Protection Agency (EPA) has determined that the systems used at gas station pumps to capture harmful gasoline vapors while refueling cars can be phased out. Modern vehicles are equipped to capture those emissions. This final rule is part of the Obama Administration’s initiative to ensure that regulations protect public health and the environment without being unnecessarily burdensome to American businesses.

Beginning later this year, states may begin the process of phasing out vapor recovery systems at the pump since approximately 70 percent of all vehicles are equipped with on-board systems that capture these vapors. This final rule will ensure that air quality and public health are protected while potentially saving the approximately 31,000 affected gas stations located in mostly urban areas more than $3,000 each year when fully implemented.

Since 1994, gas stations in areas that do not meet certain air quality standards have been required to use gasoline vapor recovery systems. The systems capture fumes that escape from gasoline tanks during refueling. However, as required by the Clean Air Act, automobile manufacturers began installing onboard refueling vapor recovery (ORVR) technologies in 1998, making gas stations’ systems increasingly redundant. Since 2006, all new automobiles and light trucks (pickups, vans and SUVs) are equipped with ORVR systems.

Gasoline vapors from refueling, if allowed to escape, can contribute significantly to ground-level ozone, sometimes called smog, as well as to other types of harmful air pollution. Breathing air containing high levels of smog can reduce lung function and increase respiratory symptoms, aggravating asthma or other respiratory conditions and other health conditions. Gasoline vapors also contain toxic air pollutants associated with a variety of health threats.

This final rule responds to public comments on EPA’s July 2011 proposal, and will take effect upon publication in the Federal Register.

"IMAGINE" GROUP MEMBER PLEADS GUILTY TO COPYRIGHT INFRINGEMENT CONSPIRACY

Photo:  Wikimedia
FROM:  U.S. DEPARTMENT OF JUSTICE
Thursday, May 10, 2012
California Member of the Internet Piracy Group “IMAGiNE” Pleads Guilty to Copyright Infringement Conspiracy

WASHINGTON – A California man pleaded guilty yesterday to conspiring to willfully reproduce and distribute tens of thousands of infringing copies of copyrighted works without permission, including infringing copies of movies before they were commercially released on DVD, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) in Washington, D.C., announced today.

Sean M. Lovelady, 28, of Pomona, Calif., pleaded guilty to one count of conspiracy to commit criminal copyright infringement.  The plea was entered before U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia.  Lovelady faces up to five years in prison, a fine of $250,000 and three years of supervised release.
Lovelady was indicted on April 18, 2012, along with three other leading members of the IMAGiNE Group, an organized online piracy group seeking to become the premier group to first release Internet copies of new movies only showing in theaters.

According to court documents, Lovelady and his co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters.  Lovelady admitted that he went to movie theaters near his California residence and secretly used receivers and recording devices to capture the audio sound tracks of copyrighted movies (referred to as “capping”).  After obtaining, editing and filtering audio sound tracks and uploading them to servers utilized by the IMAGiNE Group, Lovelady used software to synchronize the audio file with an illegally obtained video file of a movie to create a completed movie file suitable for sharing over the Internet among members of the IMAGiNE Group and others.

The investigation of the case and the arrests were conducted by agents with ICE-HSI.  Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case on behalf of the United States.  Significant assistance was provided by the CCIPS Cyber Crime Lab and the Office of International Affairs in the Justice Department’s Criminal Division.

This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property.  Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work.  The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.  To learn more about the IP Task Force, go towww.justice.gov/dag/iptaskforce.

This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington.  The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy.  As a task force, the IPR Center uses the expertise of its 20 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft.  Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.

U.S. PRESIDENT OBAMA MEETS WITH NATO SECRETARY GENERAL RASMUSSEN

Photo:  White House Oval Office.  Credit:  Wikimedia
FROM:  AMERICAN FORCES PRESS SERVICE 
WASHINGTON, May 9, 2012 - President Barack Obama met today with NATO Secretary General Anders Fogh Rasmussen in the Oval Office to discuss preparations for the May 20-21 NATO summit meeting in Chicago, according to a White House press release.

Obama and Rasmussen agreed that the summit would focus on three important topics: Afghanistan, defense capabilities, and partnerships, according to the release.

On Afghanistan, the President and Rasmussen agreed that the NATO Summit should reaffirm allied commitment to the transition framework agreed to at Lisbon, the release said, while planning for the final stages of that transition -- including a shift next year from combat to a support role, as well as enduring support for sufficient and sustainable Afghan forces.

Obama and Rasmussen also agreed that the Chicago NATO meeting should highlight the commitment of allies to field the defense capabilities that NATO needs for the 21st century, according to the release. They discussed their expectation that allies would be in a position to announce progress on a number of key capabilities initiatives, including on missile defense.

Finally, the President and the Secretary General discussed the importance of NATO's partnerships with non-NATO countries, the release said. NATO is now a hub for a global network of security partners which have served alongside NATO forces in Afghanistan, Libya, and Kosovo.

Recognizing the important contributions provided by NATO partner nations, Obama and Ramussen said they welcome the recent decision by allies to invite a group of thirteen partner nations to Chicago for an unprecedented meeting to discuss ways to further broaden and deepen NATO's cooperation with partner nations.

U.S. NAVY AND DRUG INTERDICTION

FROM.:  U.S. NAVY
USS Nicholas Supports Drug Interdiction
NORFOLK (Jan. 17, 2012) A tugboat assists the guided-missile frigate USS Nicholas (FFG 47) as it departs Naval Station Norfolk for a scheduled deployment to South America. Nicholas will be joining other U.S. and partner-nation ships in support of Navy maritime interception operations. (U.S. Navy Photo by Mass Communication Specialist 3rd Class Kayla Jo Finley/Released) 

By Lt. Matt Phillips, USS Nicholas Public Affairs
USS NICHOLAS, At Sea (NNS) -- Guided missile frigate USS Nicholas (FFG 47) assisted partner nation forces with the interdiction of a vessel carrying nearly 2,200 kilograms (4,850 pounds) of cocaine, with an estimated street value of more than $363 million, in the eastern Pacific May 6.

The interdiction was conducted as part of Operation Martillo, a U.S., European, and Western Hemisphere partner nation effort targeting illicit trafficking routes in coastal waters along the Central American isthmus. 'Martillo' is the Spanish word for 'hammer.'

A U.S. Customs and Border Protection P-3 Orion initially detected the speedboat, "El Kike," and then turned over tracking to a helicopter from Nicholas. The helicopter tracked the suspect "go-fast" vessel until Nicholas was in position to make a coordinated approach with the helicopter. The go-fast vessel then stopped, jettisoned approximately half of its cargo, then turned and made best speed to Colombia.

Nicholas, with embarked U.S. Coast Guard Law Enforcement Detachment (LEDET), adjusted course while contacting nearby forces - USS McClusky (FFG 41) and Colombian navy ship ARC 20 de Julio for assistance. A helicopter attached to McClusky maintained surveillance of the go-fast and was able to divert the speedboat into Colombian territorial waters where it was interdicted by the Colombian navy.

"With the help of some friends, we accomplished what we set out to do - disrupt the drug trade," said Cmdr. Stephen Fuller, commanding officer of Nicholas. "Interdictions are challenging, but with the help of McClusky, [U.S.] Customs, and the Colombian navy, we executed a successful operation."

U.S. military participation in Operation Martillo is being led by Joint Interagency Task Force-South, a component of U.S. Southern Command (USSOUTHCOM). Operation Martillo is a component of the U.S. government's coordinated interagency regional security strategy in support of the White House strategy to combat transnational organized crime and the U.S. Central America Regional Security Initiative.

U.S. Naval Forces Southern Command and U.S. 4th Fleet (COMUSNAVSO/C4F) supports USSOUTHCOM joint and combined full-spectrum military operations by providing principally sea-based, forward presence to ensure freedom of maneuver in the maritime domain, to foster and sustain cooperative relationships with international partners and to fully exploit the sea as maneuver space in order to enhance regional security and promote peace, stability, and prosperity in the Caribbean, Central and South American regions.

"LEAP FROGS" TAKE A PLUNGE AND FLY THE AMERICAN FLAG

Aircrew Survival Equipmentman 1st Class Thomas Kinn, assigned to the U.S. Navy parachute demonstration team, the Leap Frogs, flies an American flag above Rosecrans Memorial Airport during the opening ceremony of the Sound of Speed Air Show. The Leap Frogs are based in San Diego and perform aerial parachute demonstrations supporting Naval Special Warfare and Navy recruiting. U.S. Navy photo by James Woods (Released) 120505-N-IQ655-426

GENERAL SAYS CHICAGO SUMMIT WILL COVER MANY ISSUES

PHOTO:  U.S. NAVY, SANDSTORM IN AFGHANISTAN
FROM:  AMERICAN FORCES PRESS SERVICE
Summit Will Deal With Range of Issues, NATO General Says
By Jim Garamone
WASHINGTON, May 9, 2012 - Afghanistan will dominate the NATO summit in Chicago later this month, but alliance leaders will deal with other issues as well, a senior NATO commander said here yesterday.

Gen. Stephane Abrial of the French air force told the Defense Writers Group the nations' leaders also will deal with partnership capability, "smart defense" and other matters. Abrial is commander of NATO's transformation command.

"On partnership, there will be a reaffirmation that NATO does not operate in isolation," the general said. The alliance is keen to work more closely with all kinds of partners from other nations to international institutions to no-governmental organizations, he added.

The NATO-led actions in Libya are an example of the alliance working with non-NATO partners, such as the United Arab Emirates and the Arab League. NATO also works with the European Union to ensure that the two institutions work together smoothly, when needed.

How to work together with these disparate groups is part and parcel of the Allied Command Transformation mission, Abrial said.

On capabilities, the leaders will discuss the progress on decisions made at NATO's 2010 summit in Lisbon, Portugal, including the smart defense initiative. Smart defense is about how the alliance will continue to develop and maintain the capabilities needed to fulfill its missions despite the new era of austerity.

Another initiative, "connected forces," ensures that all forces can work well together. "The key word there is interoperability, and the three strands of that are training, exercises and technology," Abrial said. "When I say capabilities, I don't mean just a piece of equipment, but all aspects associated with it."

This includes doctrine, leadership, facilities and much more, he explained, and these will be discussed in Chicago.

With a few exceptions, budgets across NATO are either steady or going down, the general said. "We expect this situation to be with us for quite a while ... and therefore, it is very important we make the best possible use of every euro, dollar or pound that we get."
The United States is reducing its defense budget, but there is no danger as yet that the U.S. military will not be able to operate across the full spectrum of operations, Abrial said. "This is not possible in Europe," he added. "That is why when we look at smart defense, we look at ways to reduce the consequences of this austerity."
Part of this is aligning national priorities with NATO needs. In other words, a nation may decide to specialize in detecting biohazards, for example. Since "Nation A" has this capability, "Nation B" does not have to develop it to the same extent. Both nations, therefore, save.

"Specialization does not mean we are going to say to anybody, 'We must oblige you to do this and stop doing that,'" Abrial said. "We don't have the mandate, authority or will to do that.

PEOPLE, HISTORY AND GOVERNMENT OF KENYA

Photo:  Kenyan Supreme Court, Wikimedia 
FROM:  U.S. STATE DEPARTMENT
PEOPLE
Kenya has a very diverse population that includes three of Africa's major sociolinguistic groups: Bantu (67%), Nilotic (30%), and Cushitic (3%). Kenyans are deeply religious. About 80% of Kenyans are Christian, 11% Muslim, and the remainder follow traditional African religions or other faiths. Most city residents retain links with their rural, extended families and leave the city periodically to help work on the family farm. About 75% of the work force is engaged in agriculture, mainly as subsistence farmers. The national motto of Kenya is Harambee, meaning "pull together." In that spirit, volunteers in hundreds of communities build schools, clinics, and other facilities each year and collect funds to send students abroad.


Kenya has six full-pledged public universities: University of Nairobi, Jomo Kenyatta University of Agriculture and Technology, Egerton University, Moi University, Maseno University, Masinde Muliro University (most of these universities also have constituent colleges); and approximately 13 private universities, including United States International University. Public and private universities have a total enrollment of approximately 50,000 students with about 80% of these being enrolled in public universities (representing 25% of students who qualify for university admission). In addition, more than 60,000 students enroll in middle-level colleges where they study career courses leading to certificate, diploma, and higher diploma awards. International universities and colleges have also established campuses in Kenya where students enroll for distance learning and other flexible programs. Other Kenyan students pursue their university education abroad. More than 5,000 Kenyans are studying in the United States.


HISTORY
Fossils found in East Africa suggest that protohumans roamed the area more than 20 million years ago. Recent finds near Kenya's Lake Turkana indicate that hominids lived in the area 2.6 million years ago.


Cushitic-speaking people from what became Sudan, South Sudan, and Ethiopia moved into the area that is now Kenya beginning around 2000 BC. Arab traders began frequenting the Kenya coast around the first century AD. Kenya's proximity to the Arabian Peninsula invited colonization, and Arab and Persian settlements sprouted along the coast by the eighth century. During the first millennium AD, Nilotic and Bantu peoples moved into the region, and the latter now comprise two thirds of Kenya's population. Swahili, a Bantu language with significant Arabic vocabulary, developed as a trade language for the region.


Arab dominance on the coast was interrupted for about 150 years following the arrival of the Portuguese in 1498. British exploration of East Africa in the mid-1800s eventually led to the establishment of Britain's East African Protectorate in 1895. The Protectorate promoted settlement of the fertile central highlands by Europeans, dispossessing the Kikuyu and others of their land. Some fertile and well watered parts of the Rift Valley inhabited by the Maasai and the western highlands inhabited by the Kalenjin were also handed over to European settlers. For other Kenyan communities, the British presence was slight, especially in the arid northern half of the country. The settlers were allowed a voice in government even before Kenya was officially made a British colony in 1920, but Africans were prohibited from direct political participation until 1944 when a few appointed (but not elected) African representatives were permitted to sit in the legislature.


From 1952 to 1959, Kenya was under a state of emergency arising from the "Mau Mau" insurgency against British colonial rule in general and its land policies in particular. This rebellion took place almost exclusively in the highlands of central Kenya among the Kikuyu people. Tens of thousands of Kikuyu died in the fighting or in the detention camps and restricted villages. British losses were about 650. During this period, African participation in the political process increased rapidly.


The first direct elections for Africans to the Legislative Council took place in 1957. Kenya became independent on December 12, 1963, and the next year joined the Commonwealth. Jomo Kenyatta, an ethnic Kikuyu and head of the Kenya African National Union (KANU), became Kenya's first President. The minority party, Kenya African Democratic Union (KADU), representing a coalition of small ethnic groups that had feared dominance by larger ones, dissolved itself in 1964 and joined KANU.


A small but significant leftist opposition party, the Kenya People's Union (KPU), was formed in 1966, led by Jaramogi Oginga Odinga, a former Vice President and Luo elder. The KPU was banned shortly thereafter, however, and its leader detained. KANU became Kenya's sole political party. At Kenyatta's death in August 1978, Vice President Daniel arap Moi, a Kalenjin from Rift Valley province, became interim President. By October of that year, Moi became President formally after he was elected head of KANU and designated its sole nominee for the presidential election.


In June 1982, the National Assembly amended the constitution, making Kenya officially a one-party state. Two months later, young military officers in league with some opposition elements attempted to overthrow the government in a violent but ultimately unsuccessful coup. In response to street protests and donor pressure, parliament repealed the one-party section of the constitution in December 1991. In 1992, independent Kenya's first multiparty elections were held. Divisions in the opposition contributed to Moi's retention of the presidency in 1992 and again in the 1997 election. Following the 1997 election Kenya experienced its first coalition government as KANU was forced to cobble together a majority by bringing into government a few minor parties.


In October 2002, a coalition of opposition parties formed the National Rainbow Coalition (NARC). In December 2002, the NARC candidate, Mwai Kibaki, was elected the country's third President. President Kibaki received 62% of the vote, and NARC also won 59% of the parliamentary seats. Kibaki, a Kikuyu from Central province, had served as a member of parliament since Kenya's independence in 1963. He served in senior posts in both the Kenyatta and Moi governments, including Vice President and Finance Minister. In 2003, internal conflicts disrupted the NARC government. In 2005 these conflicts came into the open when the government put its draft constitution to a public referendum--key government ministers organized the opposition to the draft constitution, which was defeated soundly. In 2007, two principal leaders of the movement to defeat the draft constitution, Raila Odinga and Kalonzo Musyoka--both former Kibaki allies--were presidential candidates for the Orange Democratic Movement (ODM) party and the Orange Democratic Movement-Kenya (ODM-K) party, respectively. In September 2007, President Kibaki and his allies formed the coalition Party of National Unity (PNU). KANU joined the PNU coalition, although it was serving in parliament as the official opposition party.


On December 27, 2007, Kenya held presidential, parliamentary, and local government elections. While the parliamentary and local government elections were largely credible, the presidential election was seriously flawed, with irregularities in the vote tabulation process as well as turnout in excess of 100% in some constituencies. On December 30, the chairman of the Electoral Commission of Kenya declared incumbent Mwai Kibaki the winner of the presidential election. Violence erupted in different parts of Kenya as supporters of opposition candidate Raila Odinga and supporters of Kibaki clashed with police and each other. The post-election crisis left about 1,300 Kenyans dead and about 500,000 people displaced. In order to resolve the crisis, negotiation teams representing PNU and ODM began talks under the auspices of former UN Secretary General Kofi Annan and the Panel of Eminent African Persons (Benjamin Mkapa of Tanzania and Graca Machel of Mozambique).


On February 28, 2008, President Kibaki and Raila Odinga signed a power-sharing agreement, which provided for the establishment of a prime minister position (to be filled by Odinga) and two deputy prime minister positions, as well as the division of an expanded list of cabinet posts according to the parties' proportional representation in parliament. On March 18, 2008, the Kenyan parliament amended the constitution and adopted legislation to give legal force to the agreement. On April 17, 2008 the new coalition cabinet and Prime Minister Odinga were sworn in. The Kofi Annan-led political settlement also set out a reform agenda to address underlying causes of the post-election violence. The focus is on constitutional, electoral, land, and institutional reform as well as increased accountability for corruption and political violence. The new constitution was approved in a referendum on August 4, 2010. 


GOVERNMENT
The unicameral National Assembly consists of 210 members elected to a term of 5 years from single-member constituencies, plus 12 members nominated by political parties on a proportional representation basis. The president appoints the vice president; under the power-sharing agreement, the president with the agreement of the prime minister makes the initial appointment of cabinet members from among those elected to the assembly. Subsequent cabinet appointments are made by the president in consultation with the prime minister, in accord with the power-sharing agreement's proportional division of cabinet positions. The attorney general and the speaker are ex-officio members of the National Assembly.


The judiciary consists of a Supreme Court, Court of Appeal, High Court, and Magistrates’ Courts. The Chief Justice is the highest-ranking judicial official. The Supreme Court was established pursuant to the new constitution.


Local administration is divided among 140 rural districts, each headed by a commissioner appointed by the president. The districts are joined to form seven rural provinces. Nairobi has special provincial status. The Ministry of State in charge of Provincial Administration and Internal Security supervises the administration of districts and provinces.


Once implemented, the new constitution will result in significant changes to this structure, including greater devolution of power to 47 counties and creation of a second legislative chamber with responsibility for representing the interests of the counties and regions. Implementation of the new constitution will take several years, but these key changes in the structure of government should be in place in advance of national elections, which are currently slated to be held March 4, 2013. 


POLITICAL CONDITIONS
Until potentially destabilizing, widespread violence erupted following the disputed December 2007 presidential elections, Kenya had, since independence, maintained considerable stability despite changes in its political system, localized violence surrounding elections, and crises in neighboring countries. This had been particularly true since the re-emergence of multiparty democracy and the accompanying increase in freedom (including freedom of speech, the press, and assembly).


In December 2002, Kenyans held democratic and open elections, which were judged free and fair by international observers. The 2002 elections marked an important turning point in Kenya's democratic evolution as the presidency and the parliamentary majority passed from the party that had ruled Kenya since independence to a coalition of new political parties. The government lost a referendum over its draft constitution in November 2005. This vote too was widely accepted as free, fair, and credible.


Under the first presidency of Mwai Kibaki, the NARC coalition promised to focus its efforts on generating economic growth, improving and expanding education, combating corruption, and rewriting the constitution. The first two goals were largely met, but progress toward the second two goals was limited. President Kibaki's cabinet from 2002-2005 consisted of members of parliament from allied parties and others recruited from opposition parties who joined the cabinet without the approval of their party leaderships.


In early 2006, revelations from investigative reports of two major government-linked corruption scandals rocked Kenya and led to resignations, including three ministers (one of whom was later reappointed). In March 2006, another major scandal was uncovered involving money laundering and tax evasion in the Kenyan banking system. The government's March 2006 raid on the Standard Group media house conducted by masked Kenyan police was internationally condemned and was met with outrage by Kenya media and civil society. The government did not provide a sufficient explanation. No one has been held accountable.


The December 2007 elections were marred by serious irregularities, and set off a wave of violence throughout Kenya. Following the February 2008 signing of a power-sharing agreement, incumbent President Kibaki retained the presidency and opposition candidate Raila Odinga was given a newly created position of Prime Minister. A new coalition cabinet was sworn in April 2008. The 42-member cabinet became the largest in Kenya's history, including new ministries for cooperative development, Northern Kenya development, and Nairobi metropolitan development. Several ministries were also subdivided, creating a number of new cabinet positions.


Constitutional reform that addresses the structure of government to create a more effective system of checks and balances is a key element of the reform agenda agreed as part of the power-sharing agreement. Following the process for producing a new draft constitution that was set out in the December 2008 Constitutional Review Act, Kenyans went to the polls on August 4, 2010 to vote on the new constitution. Reflecting broad support for fundamental change, 66.9% of those who voted endorsed it. The new constitution retains Kenya's presidential system but introduces additional checks and balances on executive power and greater devolution of power to the sub-national level. Fully implementing the new constitution will require passage of several dozen pieces of legislation over a 5-year period. The 2013 national elections will be the first conducted under the new constitution.


The International Criminal Court summoned six Kenyans (five high-ranking government officials and one radio executive) to The Hague on charges of crimes against humanity for their alleged roles in the 2007-2008 post-election violence. They appeared at The Hague in April 2011 to be informed of the charges. Confirmation of Charges hearings were held in September 2011, and in January 2012 the pre-trial chamber of the Court confirmed charges against four of the individuals for allegedly committing crimes against humanity: Uhuru Kenyatta, Frances Muthaura, William Ruto, and Joshua Sang. The next step is for the Court to set a trial date. 

SEC CHARGES MAN WITH ALLEGED BIOPHARACEUTICAL STOCK MANIPULATION

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., May 9, 2012 – The Securities and Exchange Commission today charged a Manhattan resident with carrying out a complex market manipulation scheme in biopharmaceutical stocks after he was kicked out of the brokerage industry for fraud.

The SEC alleges that David Blech established more than 50 brokerage accounts in the names of family members, friends, and even a private religious institution. He used those accounts to buy and sell significant amounts of stock in two biopharmaceutical companies in order to create the artificial appearance of activity in their securities so he could maintain their market price and use it to his own financial advantage. Blech, who was previously convicted of securities fraud, also solicited investments for biopharmaceutical companies – including the two companies whose stock he manipulated – despite being barred by the SEC from acting as a broker-dealer.

The SEC further alleges that Blech and his wife Margaret Chassman, who also is charged in the case, flouted federal securities laws when they repeatedly made unregistered sales of securities and failed to disclose their transactions in the various brokerage accounts.

“Blech tried to rig the market in favor of his own investments and create a mirage of activity in the stocks of biopharmaceutical companies for which he was soliciting investors,” said George S. Canellos, Director of the SEC’s New York Regional Office. “But he seriously misjudged the SEC’s determination to ensure that the securities markets function fairly.”

Sanjay Wadhwa, Associate Director of the SEC’s New York Regional Office and Deputy Chief of the Market Abuse Unit, added, “Blech hoped to avoid scrutiny by devising a complex scheme using accounts ostensibly belonging to family members and friends to place highly manipulative trades through different broker-dealers. This enforcement action demonstrates the SEC’s ability to dissect such trades and lay bare their true economic substance.”

In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Blech.

According to the SEC’s complaint filed in federal court in Manhattan, Blech engaged in his scheme at various points in 2007 and 2008, specifically manipulating the stocks of Pluristem Therapeutics Inc. and Intellect Neurosciences Inc. Blech first opened dozens of nominee accounts at several broker-dealers in the names of his wife, uncle, and sister-in law as well as a longtime friend and a company he controlled, and religious institution Central Yeshiva Beth Joseph that is managed by Blech’s cousin. Blech then used the accounts to engage in deceptive activities and carry out matched trades in Pluristem’s and Intellect’s stocks. Blech’s activity in these thinly-traded securities artificially inflated the stock price of both companies and created the false impression of a liquid market for each company. Blech then used the artificially inflated stock price to sell off his holdings of Pluristem and Intellect through the nominee accounts, and as collateral for a line of credit he established in his wife’s name.

According to the SEC’s complaint, Blech has committed prior violations of the securities laws. He pled guilty in 1998 to two counts of securities fraud and was sentenced to five years of probation. In 2000, he settled a related SEC enforcement action by accepting a permanent bar from associating with any broker-dealer.

The SEC’s complaint charges Blech with violating Section 17(a)(1) and (3) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(a) and (c), and for acting as an unregistered broker-dealer in violation of Section 15(b)(6)(B) of the Exchange Act The complaint also charges Blech and Chassman with violating Sections 5(a) and 5(c) of the Securities Act and for failing to make filings required by Sections 13(d) and 16(a) of the Exchange Act.

The SEC’s complaint seeks a final judgment ordering Blech and Chassman to disgorge their ill-gotten gains plus prejudgment interest, pay financial penalties, and be permanently enjoined from future violations of the provisions of the federal securities laws they violated. The complaint seeks orders requiring Blech to comply with a prior SEC order barring him from association with a broker or dealer, and prohibiting him from various other stock activities.

The SEC’s investigation was conducted by Charles D. Riely and Amelia A. Cottrell – members of the SEC’s Market Abuse Unit in New York – and Shannon A. Keyes and Kathy Murdocco of the SEC’s New York Regional Office. The office’s broker-dealer examination team of Richard Heaphy, Michael McAuliffe, Simone Celio Jr., and Doreen Piccirillo provided assistance with the investigation.

The SEC acknowledges the assistance of the U.S. Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation, and the Financial Industry Regulatory Authority.

The SEC’s investigation is continuing.

WWII TUSKEGEE AIRMAN HISTORY REMEMBERED AS THE 332ND AIR EXPEDITIONARY WING COMES TO AN END

FROM:  U.S. DEPARTMENT OF DEFENSE
Maj. Gen. James Jones receives the guidon as Col. Paul Beineke relinquishes command during the 332nd Air Expeditionary Wing deactivation ceremony May 8, 2012, at an undisclosed location in Southwest Asia. The ceremony marked the second time the 332nd AEW has been deactivated. Jones is the deputy commander for U. S. Air Forces Central and Beineke is the 332nd AEW commander. (U.S. Air Force photo/Staff Sgt. Joshua J. Garcia)  

Deployed wing becomes part of Air Force, Tuskegee Airmen legacy
by Maj. Jillian Torango
332nd Air Expeditionary Wing Public Affairs

5/9/2012 - SOUTHWEST ASIA (AFNS) -- The 332nd Air Expeditionary Wing deactivated in a ceremony May 8 at an undisclosed location in Southwest Asia.

Maj. Gen. James Jones, the deputy commander of U. S. Air Forces Central, presided over the ceremony which brought a storied era of 332nd history to a close.

Also in attendance were Matthew H. Tueller, the U.S. ambassador to Kuwait, and Gen. Philip M. Breedlove, the vice chief of staff of the U.S. Air Force.

"As the largest combat wing in the Air Force for most of its time frame, this wing served with distinction," said Jones. "In the nearly 10 years since the wing flag was reinstated, the Red Tails have been the very backbone of AFCENT forces engaged in Operation Southern Watch, Operation Iraqi Freedom and Operation New Dawn."

Nearly 100,000 Airmen rotated through the wing since 2002, enabling the unit to deliver almost 600,000 hours of persistent airpower throughout the U. S. Central Command area of responsibility.

"It's fitting that, as we end our mission here, we look back and consider how much of an impact the 332nd has had across our total Air Force," said Col. Paul Beineke, 332nd AEW commander.

In 1998, the 332nd Air Expeditionary Group activated at Ahmed Al Jaber Air Base, Kuwait, where they employed A-10 Thunderbolt IIs, F-16 Fighting Falcons, HH-60 Pave Hawk rescue helicopters and HC-130 Hercules aircraft in support of Southern Watch.

Beginning in 2001, the group also participated in Operation Enduring Freedom, playing a critical role in the defeat of the Taliban regime and later providing key air support for Afghanistan's provisional government.

Later, the unit was re-designated as a wing and moved to Tallil Air Base, Iraq, in support of OIF, before ending up at Balad Air Base, Iraq, in 2004.

During the height of operations, the wing contained nine groups -- including four geographically separated groups at Ali, Sather, Al Asad, and Kirkuk air bases -- as well as numerous detachments and operating locations scattered throughout Iraq. The wing had as many as four fighter squadrons, an airlift squadron, a helicopter combat search and rescue squadron, two aerial reconnaissance squadrons and an air control squadron.

During the drawdown of forces from Iraq, the 332nd AEW provided intelligence, surveillance and reconnaissance, combat search and rescue, armed overwatch and close air support to one of the largest logistics movements since World War II.

In support of the re-posture of U.S. forces, the wing continued to support U.S. Forces-Iraq after forward deploying to an undisclosed air base in Southwest Asia in November 2011 so Joint Base Balad could be returned to the government of Iraq.

And as the last U.S. convoy left Iraq on Dec. 18, 2011, it was the 332nd AEW's F-16s and MQ-1B Predators in the skies providing overhead watch.

Through all this, the 332nd AEW tried to live up to their lineage, which reaches back to the 332nd Fighter Group and the famed Tuskegee Airmen.

"We are proud to have continued (the Tuskegee) legacy in the current era," said Beineke. "We stood up as a new wing devoted to the mission of the Iraqi campaign, and each day aware of the great heritage we're heirs of, American Airmen tackled the mission with tenacity and amazing effort."

The title Tuskegee Airmen refers to all who trained in the groundbreaking Army Air Corps pilot training program in Tuskegee, Ala., and includes pilots, navigators, bombardiers, maintenance and support staff, instructors and all the personnel who kept the planes in the air.

Their aircraft were instantly recognizable due to the distinctive red tails and propellers, and the Red Tails earned a reputation as the fighter unit bomber pilots wanted as their escorts.

By the end of World War II, 992 men had graduated from pilot training at Tuskegee. Of these Airmen, 450 were sent overseas for combat; about 150 of those men lost their lives. These African-American men ran more than 200 bomber escort missions and managed to destroy or damage more than 409 German airplanes, 950 ground units and a destroyer.

"This unit is one of the Air Force's most revered organizations, and it is an organization with a heritage of heroic contributions to the defense of freedom," said Jones. "After nearly a decade in combat, the Red Tails will once again stand inactive, awaiting their next call to defend freedom."

SECRETARY OF INTERIOR SALAZAR SPEAKS ON ENERGY PROJECTS

FROM:  DEPARTMENT OF THE INTERIOR
President Obama has made it clear that our country needs an all-of-the-above strategy to develop American energy – energy that's cleaner, cheaper, and generates new jobs for Americans.

On Tuesday, we took another major step forward in President Obama's commitment to responsibly expand development of America's abundant natural gas resources by approving the Greater Natural Buttes gas development project in Utah.

This project, proposed by Anadarko Petroleum Corporation, could produce more than six trillion cubic feet of natural gas over its life, support more than 4,000 American jobs during the different phases of development, and infuse millions of dollars into local Utah communities.

The project is a model for a balanced approach to energy development: by using innovative technologies and best practices, the project will limit new surface disturbance to just five percent of the area. And, as part of a landmark cooperative agreement with the Southern Utah Wilderness Alliance, Anadarko will drill the 3,600 new wells while safeguarding air quality and ensuring the protection of critical wildlife habitat and outdoor recreation values.

Today's announcement exemplifies the kind of progress we are making as part of the Administration's all-of-the-above energy strategy. In 2011, U.S. natural gas production grew by more than 7 percent – the largest year-over-year increase in history. U.S. gas production is now at an all-time high and oil production is at an eight-year high. And America's dependence on foreign oil has gone down every single year since President Obama took office; we have cut net imports by ten percent – or a million barrels a day – in the last year alone.

But that's not all. Renewable energy production has nearly doubled over the last three years. And on public lands, we are well on our way to meeting the President's goal of permitting 10,000 megawatts of large-scale renewable power by the end of the year.

Earlier this week, in the sun-drenched southwest corner of Nevada, we "flipped the switch" on the first large-scale solar energy facility on U.S. public lands to deliver power to American consumers. The Enbridge Silver State North solar facility uses innovative photovoltaic technology to deliver clean energy to more than 10,000 homes and businesses across Nevada.

The 50-megawatt project generates electricity with no air emissions, no waste production, and no water use. The advanced process displaces about 42,000 metric tons of carbon dioxide annually – the equivalent of taking 8,000 cars off the road.

Prior to 2009, Interior had not authorized a single solar project on public lands. But today, the Silver State North project is one of 29 large-scale renewable energy projects that Interior has approved on public lands, including 16 solar projects, 5 wind farms, and 8 geothermal plants. If built by the companies, the facilities will provide more than 6,500 megawatts of power to communities across the West.

We need to keep this momentum going and help put America in control of its energy future. That's why President Obama has called on Congress to pass legislation that will extend the Production Tax Credit to support American jobs and manufacturing in the wind industry alongside an expansion of the 48C Advanced Energy Manufacturing Tax Credit that supports American-made clean energy manufacturing.

All of these trends show the gathering strength of America’s energy economy as we move forward with an all-of-the-above energy strategy.

Thank you,

Ken Salazar
Secretary of the Interior

PUBLIC LANDS IN NEVADA NOW HOST LARGE-SCALE SOLAR ENERGY PROJECT

FROM:  U.S. DEPARTMENT OF INTERIOR
Salazar ‘Flips the Switch’ on First Large-Scale Solar Energy Project on Public Lands to Provide Power to the Grid
Nevada’s Silver State North Marks Milestone in Renewable Energy
PRIMM, Nevada – As part of President Obama’s all-of-the-above approach to energy, Secretary of the Interior Ken Salazar “flipped the switch” on the Enbridge Silver State North solar project, the first large-scale solar energy facility on U.S. public lands to deliver power to American consumers.

This milestone is in line with the administration’s broad commitment to expanding production of all sources of American made energy, including from renewable sources, such as wind and solar, which has doubled in the President’s first term, as well as domestic production of oil and gas resources, which have increased each year the President has been in office.

“This is a landmark day for solar energy and for the nation,” Salazar said at the dedication ceremony with state and company officials. “Silver State North was the first solar project we approved on public lands in Nevada and --18 months later -- the first of our priority projects to provide clean energy to the power grid. This is a model of industry and government working together to strengthen local economies, generating good jobs and affordable, reliable and sustainable power.”

The Interior Department has undertaken an unprecedented approach to permitting renewable energy on public lands. Prior to 2009, there were no solar energy projects permitted on public lands. Under Secretary Salazar and Bureau of Land Management Director Bob Abbey’s leadership, Interior has authorized 29 large-scale renewable energy projects on or involving public lands, including 16 solar facilities, 5 wind farms, and 8 geothermal plants. When completed, these projects will provide more than 6,500 megawatts of power to communities across the West, enough to power more than 2 million homes.

“Public lands provide Americans with vital mineral and agricultural resources, as well as recreational opportunities that help power local economies and generate jobs around the nation,” said Bob Abbey, Director of the Bureau of Land Management. “Today in Clark County, Nevada, we are adding solar energy to that public lands’ portfolio of benefits. This project symbolizes a new partnership between government and industry that can responsibly tap the immense renewable energy resources of this great state, provide clean, reliable power to homes and businesses, and open a new chapter in the beneficial use of our nation’s public lands.”

Located 40 miles south of Las Vegas, Nevada, Silver State North is a 50-megawatt plant that will use photovoltaic technology to generate enough power for about 9,000 Nevada homes. Developed by First Solar and owned by Enbridge, the project employed more than 380 construction workers during peak construction and 650 individuals over the course of the project. NV Energy has a power purchase agreement to sell the solar project’s electricity to the Nevada market.

By harnessing the area’s vast solar resources, the Silver State North facility generates electricity with no air emissions, no waste production, and no water use. The plant, using technology with the smallest carbon footprint of any PV solar system, displaces about 42,000 metric tons of carbon dioxide annually – the equivalent of taking 8,000 cars off the road. The project site is strategically located near a major transmission hub.

Constructed on 618 acres of public land managed by Interior’s Bureau of Land Management, the solar project underwent full environmental analysis and public review. The BLM worked closely with federal, state and local partners, members of the environmental and conservation community, and interested stakeholders to protect wildlife and advance this environmentally sound project. First Solar and the BLM worked in concert with the U.S. Fish and Wildlife Service to develop a relocation/translocation plan for desert tortoises found on the site. The BLM also required a natural color palette for painted structures and controlled night lighting, designed to reduce visual impacts on the local community.

The Bureau of Land Management oversees more than 2.5 million acres in Clark County, Nevada, including over 1.1 million acres managed for conservation. This includes over 709,000 acres of habitat the BLM has designated primarily for the conservation of the threatened desert tortoise.

NEW FEMA WATCH CENTER OPENS IN ATALANTA GEORGIA

FROM:  FEMA

Atlanta, Ga., May 7, 2012 -- Administrator W. Craig Fugate visits Region IV for the opening and ribbon cutting of the new watch center. The Watch Center is the initial point of response to All-hazards events occurring in the Region and makes initial contact with States and other Federal agencies during significant events. Tim Burkitt/FEMA 

THE CHEMISTRY MAGICIAN

FROM:  AMERICAN FORCES PRESS SERVICE
Dr. Ron Furstenau during a chemistry magic presentation at the Garden of the Gods Visitor and Nature Center in Colorado Springs, Colo., April 21, 2012. Furstenau is an instructor with the U.S. Air Force Academy's chemistry department. U.S. Air Force photo by Don Branum

Chemistry Whiz Uses Magic to Teach
By Don Branum
U.S. Air Force Academy Public Affairs
COLORADO SPRINGS, Colo., May 9, 2012 - The first thing noticeable about Dr. Ron Furstenau is his apparel. One of his ties displays a bevy of chemical symbols. An American flag, a smiley face and periodic table [of elements] pins grace the lapels of his lab coat, along with a three-eyed fish on one of his pockets.

Furstenau, a chemistry instructor at the U.S. Air Force Academy here, is an enthusiastic person -- whether he's mentoring students in the academy's chemistry labs or performing instructive magic shows for young students in the local community.
The chemistry whiz said he became interested in science during grade school.
"Even as a little kid, I liked to try to understand why things work the way they do," said Furstenau, who grew up in Norfolk, Neb. "I don't think I knew it was science at the time. I just knew it was fun."
It took him a few more years, though, to discover which area of study interested him the most.

"It was my first science class in ninth grade," he recalled. "It was physical science, but mostly chemistry. Once I got into it in high school, I really liked it."
Furstenau went on to graduate from the Air Force Academy with a bachelor's degree in chemistry before earning a master's degree and doctorate at the University of Nebraska.
Between degrees, he served as a chemist at Edwards Air Force Base, Calif., and taught here. He came back to the academy after finishing his doctorate and kept teaching even after he retired from active duty in 2006. He's been involved with the academy's chemistry department magic show the entire time.

Furstenau performed a magic show April 21 at Colorado's Garden of the Gods Visitor and Nature Center as part of the park's observance of Earth Day. Children enthusiastically raised their hands every time he called for volunteers.

Those who were picked got to mix potions of all sorts, including one that switched from blue to gold seemingly in response to cheering from the audience.

The kids didn't care that it was a Briggs-Rauscher oscillating reaction or that it involved malonic acid, hydrogen peroxide and iodine. They just knew it was cool.
As they watched the beaker's liquid cycle through blue, gold and clear states, Furstenau explained the basics: the reaction that turned the solution gold also provided the ingredients needed to turn the solution blue and vice versa.

"I did my first tour here in '84," he added. "I've probably done at least 800 of them over the years."

Furstenau said he and other academy chemistry instructors have performed chemistry magic shows across the state of Colorado, mainly in the Pikes Peak region and the Denver area.

"We'll go to whoever happens to ask," he said. "As a department, we look at getting them interested in science as well as maybe getting them interested in attending the Air Force Academy."

One magic show in particular sticks out in Furstenau's mind more than any other. It was one that he performed for a child who was in the Cadet for a Day program and her family.
"She was recovering from cancer," said Furstenau, who survived prostate cancer in 2007. "There was something about the interaction with her and her family. I don't know exactly what it was, but it's something I'll remember for the rest of my life."

The academy's STEM (science, technology, engineering and mathematics) initiative for young people also offers programs for Girl Scouts, and programs to give middle and high-school teachers hands-on access to the academy's laboratories. They have instruments that measure chemical compounds in almost any way imaginable, from using radio waves and powerful magnetic fields to changing the rotation of an atomic radius, to using x-rays to shear electrons from an atom's outer layers.

"Science is really fun!" Furstenau said. "At some point, someone tells kids science is hard, and that's just not true. Yes, science is work, and it involves a lot of math, but it should always be fun."

His love of chemistry shines in his work, said Air Force Col. Mike Van Valkenburg, the head of the academy's chemistry department.

"I've known Dr. Furstenau since 1991 when I was first assigned here to the department as a captain," Van Valkenburg said. "I've been very fortunate to observe, learn and work alongside this very brilliant educator. He communicates understanding and the 'why' of chemistry superbly to any group of captured listeners. He is no doubt one of the best chemistry educators in the country who can motivate anyone to be interested in the subject and material."

I SAW THREE SHIPS A SALING

FROM:  U.S. NAVY
The amphibious assault ship USS Makin Island (LHD 8), left, the amphibious transport dock ship USS New Orleans (LPD 18) and the amphibious dock landing ship USS Pearl Harbor (LSD 52) transit the Indian Ocean. The Makin Island Amphibious Ready Group is deployed to the U.S. 7th Fleet area of operations. U.S. Navy photo by Chief Mass Communication Specialist John Lill (Released) 120508-N-KD852-128

SECRETARY OF EDUCATION DUNCAN'S SURPRISE SCHOOL VISIT

FROM:  U.S. DEPARTMENT OF EDUCATION
Secretary Duncan Makes Surprise Visit to Luke C. Moore High School in Honor of Teacher Appreciation Week
50 ED Staff to Participate in “ED Goes Back to School”
MAY 9, 2012
Editor's note: A school in your area is noted in the following release as part of Teacher Appreciation Week events organized by the U.S. Department of Education.

U.S. Secretary of Education Arne Duncan surprised teachers and staff of D.C.’s Luke C. Moore High School with an unexpected visit this morning during their Teacher Appreciation Week breakfast celebration.

Principal Azalia H. Speight, Assistant Principal Carlos Perkins, and Assistant Principal Rinaldo Murray gathered dozens of teachers and school support staff for the morning event to recognize their everyday hard work.

“I was honored to join Principal Speight in thanking Luke C. Moore staff for their commitment to education,” said Duncan. “The entire staff demonstrate a shared responsibility for helping children feel supported and have made significant accomplishments that improve students' chances of being successful in school and beyond. Their hard work is inspiring.”

Luke C. Moore High School is a local School Improvement Grant recipient that serves over 300 students, ages 17 to 21, who have dropped out or who have had difficulties in traditional school settings. Nearly 80 percent of the students served qualify for free or reduced price lunch.

As part of its school turnaround effort, Luke C. Moore has adopted an accelerated academic program with a focus on building critical thinking skills and project-based learning. Staff also support students through intervention teams that provide services both inside and outside of school. Support staff have conducted over 300 home visits in addition to holding several community gatherings to reinforce the value of education with students and parents. Since putting into place intervention efforts, Principal Speight has led the school toward significant improvements. Students have shown proficiency gains in both English Language Arts and Mathematics. Graduation and student attendance rates have increased while disciplinary referrals and suspensions have dropped.

The Wednesday morning stop-by marks Duncan’s second visit to Luke C. Moore. In November 2009, Duncan held a discussion at the school as part of a series of listening and learning events to gather input on education reform and the reauthorization of ESEA. More recently, Luke C. Moore teacher Rose Smith and senior Daquan Burley joined Duncan on a panel during America’s Promise Alliance 2012 “Building a Grad Nation” Summit.

In addition to Duncan’s surprise visit, dozens of Education Department staff are visiting schools today throughout the D.C. area and across the country as part of “ED Goes Back to School,” an organized effort of federal staff shadowing teachers. The shadowing visits will offer Department officials an inside look at teachers’ day-to-day work while also giving teachers the opportunity to discuss how federal policy, programs, and resources play a role in their classrooms. On Wednesday evening, teachers and Department staff participating in “ED Goes Back to School” will join Duncan for a debrief discussion to reflect on the experience.
From Wednesday through Friday, shadowing visits will take place in nearly 50 schools across 11 states and D.C. A list of participating schools follows.
Anacostia Senior High School in Washington, D.C.
Ballou Senior High School in Washington, D.C.
Benjamin Banneker Academic High School in Washington, D.C.
Brightwood Elementary School in Washington, D.C.
Brookwood Elementary School in Leawood, Kan.
Capital City Public Charter School in Washington, D.C.
Center City PCS - Trinidad in Washington, D.C.
Charles Hart Middle School in Washington, D.C.
Chester Community Charter School in Chester, Pa.
Collegiate Academy Charter School in Littleton, Colo.
Curley K-8 School in Jamaica Plain, Mass.
DC Bilingual Charter School in Washington, D.C.
DC Scholars Stanton Elementary in Washington, D.C.
DePriest Elementary School in Chicago, Ill.
Drew Model School in Arlington, Va.
Everett Middle School in San Francisco, Cailf.
Glebe Elementary School in Arlington. Va.
Hearst Elementary in Washington, D.C.
Howard University Public Charter Middle School of Mathematics and Science in Washington, D.C.
Jackson Elementary School in Clayton County, Ga.
Kendall Demonstration Elementary School in Washington, D.C.
Kent Meredian Middle School in Kent, Wash.
Key Peninsula Middle School in Lakebay, Wash.
KIPP DC: Discover Academy in Washington, D.C.
KIPP DC: Key Academy in Washington, D.C.
Maya Angelou Public Charter School in Washington, D.C.
McKinley Elementary School in Arlington, Va.
McKinley Technology High School in Washington, D.C.
Model Secondary School for the Deaf in Washington, D.C.
Monticello Middle School in Shawnee, Kan.

FORMER DETROIT MAYOR KWAME M. KILPATRICK AND OTHER OFFICIALS CHARGED BY SEC WITH INFLUENCE PEDDLING SCHEME

Photo:  Hart Plaza:  U.S Army Corps. of Engineers  
FROM:  SECURITIES AND EXCHANGE COMMISSION
May 9, 2012
The Securities and Exchange Commission (“Commission”) today charged former Detroit mayor Kwame M. Kilpatrick, former city treasurer Jeffrey W. Beasley, and the investment adviser to the city’s public pension funds involved in a secret exchange of lavish gifts to peddle influence over the funds’ investment process.

The Commission’s complaint alleges that Kilpatrick and Beasley, who were trustees to the pension funds, solicited and received $125,000 worth of private jet travel and other perks paid for by MayfieldGentry Realty Advisors LLC, an investment adviser whose CEO Chauncey Mayfield was recommending to the trustees that the pension funds invest approximately $117 million in a real estate investment trust (REIT) controlled by the firm. Despite their fiduciary duties, neither Kilpatrick and Beasley nor Mayfield and his firm informed the boards of trustees about these trips and the conflicts of interest they presented. The funds ultimately voted to approve the REIT investment, and MayfieldGentry received millions of dollars in management fees.

According to the Commission’s complaint filed in U.S. District Court for the Eastern District of Michigan, members of Kilpatrick’s administration began to exert pressure on Mayfield in early 2006 after he supported Kilpatrick’s opponent in his 2005 re-election and hired that candidate’s daughter at MayfieldGentry. The complaint alleges that Beasley met with Mayfield in February 2006 and told him he was “in the dog house” with Kilpatrick and offered to help him “clear the air.” Throughout 2007, Mayfield appeared before the boards of trustees for Detroit’s public pension funds recommending the REIT investment.

Meanwhile, the complaint alleges, MayfieldGentry began footing the bills for trips taken by Kilpatrick, Beasley and others that extended beyond business. In January 2007, Beasley demanded and Mayfield agreed to pay more than $3,000 for hotel rooms in Charlotte, N.C. for Beasley, Kilpatrick, and others. According to the complaint, Beasley told Mayfield that the reason for the trip was to inspect a building recently acquired by one of the pension funds, but in fact Beasley and Kilpatrick never inspected the building. Mayfield knew that Beasley and Kilpatrick never inspected the building, but did not ask any further questions about the matter.

According to the Commission’s complaint, the non-business travel continued:
In April 2007, MayfieldGentry paid for Kilpatrick, Beasley, and their associates to travel by private jet to Las Vegas, where they enjoyed luxury hotel accommodations, two concerts, three rounds of golf, meals, and massages. The Las Vegas trip cost more than $60,000.

In July 2007, MayfieldGentry paid more than $24,000 for a private jet to take Kilpatrick, Beasley’s son and others to Tallahassee, Fla., where Kilpatrick had a second home.

In October 2007, MayfieldGentry paid more than $34,000 for a private jet to fly Kilpatrick and his wife to and from Bermuda, and Kilpatrick’s father and his girlfriend back from Bermuda.

The Commission alleges that neither Kilpatrick nor Beasley nor Mayfield nor MayfieldGentry told anyone associated with the pension funds about any of the travel. The boards of trustees for the funds thus voted to invest approximately $117 million with Mayfield and his firm without the knowledge that they had supplied Kilpatrick, Beasley, and their associates with the extravagant travel and perks during the preceding 10 months.
The Commission’s complaint alleges that the defendants violated Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a), 10b-5(b) and 10b-5(c) thereunder.  The Commission also alleges that MayfieldGentry and Chauncey Mayfield violated Sections 17(a)(1), 17(a)(2) and 17(a)(3) of the Securities Act of 1933. In addition, the Commission charges that MayfieldGentry and Chauncey Mayfield violated Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 and Kilpatrick and Beasley aided and abetted those violations. The Commission seeks disgorgement of ill-gotten gains, penalties, and permanent injunctions, including an injunction against Kilpatrick and Beasley to prohibit them from participating in any decisions involving investments in securities by public pensions.

The Commission’s investigation, which is continuing, has been conducted jointly by the Chicago Regional Office led by Merri Jo Gillette and Timothy L. Warren, the Enforcement Division’s Asset Management Unit led by Bruce Karpati and Robert Kaplan, and the Municipal Securities and Public Pensions Unit led by Elaine C. Greenberg and Mark R. Zehner. The investigative attorneys are Brian D. Fagel, Rebecca R. Goldman and Eric A. Celauro, led by Assistant Directors Peter K.M. Chan and John J. Sikora, Jr. The Commission’s litigation will be led by Timothy S. Leiman and John E. Birkenheier.

SHANGHAI-BASED ACCOUNTING FIRM REFUSED TO TURN OVER AUDIT WORK PAPERS TO SEC

Photo:  Wikimedia
FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., May 9, 2012 — The Securities and Exchange Commission today announced an enforcement action against Shanghai-based Deloitte Touche Tohmatsu CPA Ltd. for its refusal to provide the agency with audit work papers related to a China-based company under investigation for potential accounting fraud against U.S. investors.

According to the SEC’s order instituting administrative proceedings against D&T Shanghai, the agency has been making extensive efforts for more than two years to obtain documents related to the firm’s work for the company, which issues U.S. securities registered with the SEC. The firm is charged with violating the Sarbanes-Oxley Act, which requires foreign public accounting firms to provide audit work papers concerning U.S. issuers to the SEC upon request. D&T Shanghai has nonetheless failed to provide the documents, citing Chinese law as the reason for its refusal.

“As a voluntarily registered U.S. public accounting firm, D&T Shanghai cannot benefit from the financial and reputational rewards that come with auditing U.S. issuers without also meeting its U.S. legal obligations,” said Robert Khuzami, Director of the SEC’s Division of Enforcement.  “Foreign firms auditing U.S. issuers should not be permitted to shield themselves from regulatory scrutiny to the detriment of U.S. investors.”
Scott Friestad, Associate Director of the SEC’s Division of Enforcement, added, “Without access to work papers of foreign public accounting firms, our investigators are unable to test the quality of the underlying audits and fulfill our responsibilities to investors.”

In a separate matter last year, the SEC filed a subpoena enforcement action against D&T Shanghai in federal court after the firm failed to produce documents in response to a subpoena related to an SEC investigation into possible fraud by one of its longtime clients, Longtop Financial Technologies Limited. The SEC later filed charges against Longtop for alleged reporting failures.

According to the SEC’s order in this latest enforcement action, D&T Shanghai is a public accounting firm registered with the Public Company Accounting Oversight Board (PCAOB). In April 2010, SEC staff began seeking D&T Shanghai’s audit work papers related to its independent audit work for the client involved in an SEC investigation. The SEC served Deloitte LLP, the U.S. member firm, with a subpoena requesting various related documents. Counsel for Deloitte LLP informed the staff that the U.S. firm did not perform any audit work for the client and therefore did not possess the documents related to the subpoena.

According to the SEC’s order, in the SEC staff’s continuing quest for the audit work papers in D&T Shanghai’s possession, they were later informed by counsel for Deloitte’s global firm that the agency’s request for audit work papers had been specifically communicated to D&T Shanghai. Subsequently, the staff served D&T Shanghai with a request through Deloitte LLP for the audit work papers pursuant to Section 106 of the Sarbanes-Oxley Act. D&T Shanghai would not produce the relevant audit work papers because of its interpretation that it is prevented from doing so by Chinese law. SEC staff also has sought to obtain the relevant audit work papers through international sharing mechanisms, yet these efforts have been unsuccessful.

This is the first time the Commission has brought an enforcement action against a foreign audit firm failing to comply with a Section 106 request.

In the SEC’s order, the Enforcement Division alleges that D&T Shanghai willfully violated the Sarbanes-Oxley Act and the Securities Exchange Act of 1934 by failing to provide the SEC with the audit work papers. The administrative proceeding will be assigned to an Administrative Law Judge at the agency. The judge would determine the appropriate remedial sanctions if the judge finds in favor of the SEC staff.

CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE DAVE CAMP COMMENTS ON JOBS REPORT

FROM:  CONGRESSMAN DAVE CAMPS WEBSITE
The  jobs report released last week showed the economy added just 115,000 jobs last month, with a jobless rate of 8.1 percent.  However, with 12.5 million Americans still struggling to find work, the real news in the monthly jobs report was that more than 340,000 people stopped looking for work altogether and officially dropped out of the labor force.  If these individuals, commonly referred to as the “invisible unemployed,” were in the official labor force, they would be counted as officially unemployed and raise the current unemployment rate to 11 percent. Congressman Dave Camp (R-Midland) knows that the best way to spur economic growth and job creation is to promote policies that ensure job creators have the freedom and flexibility to invest and hire, and that growth starts by demonstrating  a bipartisan commitment to advancing pro-growth policies. He is working on reforming the complicated tax code, cutting red tape and empowering small businesses to use their resources as they see best – not as Washington dictates. To date, the House has passed 27 pro-growth jobs bills that are currently awaiting consideration in the Senate.

SUPERFUND'S NATIONAL PRIORITIES LIST ADDS MORE WASTE SITES

FROM:  ENVIRONMENTAL PROTECTION AGENCY
EPA Adds Three Hazardous Waste Sites to Superfund’s National Priorities List 
WASHINGTON - The U.S. Environmental Protection Agency (EPA) is adding three new hazardous waste sites that pose risks to people’s health and the environment to the National Priorities List (NPL) of Superfund sites. EPA’s Superfund program investigates and cleans up the most complex, uncontrolled or abandoned hazardous waste sites in the country. 
“Superfund cleanups take contaminated properties and make them safe places for people and the environment,” said Mathy Stanislaus, assistant administrator for EPA’s Office of Solid Waste and Emergency Response. “They can also return these properties to communities for productive use, which translates into job creation, increased property values, enhanced local tax bases and improved quality of life.” 
Since 1983, 1,664 sites have been listed on the NPL. Of these sites, 359 sites have been cleaned up, resulting in 1,305 sites currently on the NPL (including the three sites added today). There are 59 proposed sites awaiting final agency action. 
Contaminants found at the sites include benzene, heavy metals, polynuclear aromatic hydrocarbons (PAHs), volatile organic compounds (VOCs), and trichloroethylene (TCE).
The following three sites have been added to the National Priorities List: 
• Jervis B. Webb Co. (former metal fabrication facility) in South Gate, Calif.;
• Southern Avenue Industrial Area (adhesive manufacturer) in South Gate, Calif.;
• Bremerton Gasworks (former gasworks facility) in Bremerton, Wash.
With all NPL sites, EPA works to identify companies or people responsible for the contamination at a site, and require them to conduct or pay for the clean up. For the newly listed sites without viable potentially responsible parties, EPA will investigate the full extent of the contamination before starting significant cleanup at the site. Therefore, it may be several years before significant EPA cleanup funding is required for these sites. 
Federal Register notices and supporting documents for the sites: http://www.epa.gov/superfund/sites/npl/current.htm
Information about how a site is listed on the NPL: http://www.epa.gov/superfund/sites/npl/npl_hrs.htm
Superfund sites in local communities: http://www.epa.gov/superfund/sites/index.htm