Friday, September 7, 2012
RECENT U.S. NAVY PHOTOS
FROM: U.S. NAVY
Sailors man the rails aboard the Nimitz-class aircraft carrier USS John C. Stennis (CVN 74) as the ship gets underway. John C. Stennis is returning to the U.S. 7th and 5th Fleet areas of responsibility four months ahead of schedule in order to maintain combatant commander requirements for the presence in the region. U.S. Navy photo by Mass Communication Specialist 3rd Class Kenneth Abbate (Released) 120901-N-OY799-020
Fire Controlman 2nd Class Josiah Jackson loads rounds into the close-in weapons system (CIWS) aboard the guided-missile destroyer USS Nitze (DDG 94). Nitze is deployed as part of the Enterprise Carrier Strike Group to the U.S. 5th Fleet area of responsibility conducting maritime security operations, theater security cooperation efforts and support missions for Operation Enduring Freedom. U.S. Navy photo by Mass Communication Specialist 3rd Class Jeff Atherton (Released) 120829-N-AP176-068
Thursday, September 6, 2012
RECENT U.S. NAVY PHOTOS
FROM: U.S. NAVY
Naval Aircrewman (Helicopter) 3rd Class Bobby Heimovitz, assigned to the Tridents of Helicopter Sea Combat Squadron (HSC) 9, fires a .50-caliber machine gun at a MK-25 smoke target. HSC-9 is currently underway with the aircraft carrier USS Harry S. Truman (CVN 75) in support of carrier qualifications. U.S. Navy photo by Mass Communication Specialist 2nd Class Mick DiMestico (Released) 120905-N-UP035-084
Sailors assigned to the guided-missile destroyer USS Stockdale (DDG 106) repaint the ship's hull number. U.S. Navy photo by Senior Chief Mass Communication Specialist Joe Kane (Released) 120904-N-ZC343-906
SEC CHARGES MAN WITH ILLEGALLY TIPPING A HEDGE FUND MANAGER REGARDING CORPORATE EARNINGS
Washington, D.C., September 4, 2012 - The Securities and Exchange Commission today charged a California man with illegally tipping a hedge fund manager with inside information about Nvidia Corporation’s quarterly earnings that he learned from his friend who worked at the company.
The SEC alleges that Hyung Lim of Los Altos, Calif., received $15,000 and stock tips about a pending corporate acquisition for regularly providing a fellow poker player, Danny Kuo, with nonpublic details ahead of Nvidia’s quarterly earnings announcements. Kuo, a hedge fund manager, illegally traded on the information and passed it on to multi-billion dollar hedge fund advisory firms Diamondback Capital Management LLC and Level Global Investors LP. The SEC charged Kuo and the firms among others earlier this year as part of its widespread investigation into the trading activities of hedge funds.
"These hedge fund traders were eager to find an edge in an otherwise competitive marketplace, and Lim provided them that edge for a price," said Sanjay Wadhwa, Associate Director of the SEC’s New York Regional Office and Deputy Chief of the SEC Enforcement Division’s Market Abuse Unit. "Now one more participant in this sprawling scheme is being held accountable for his illegal transgressions."
In a parallel action, the U.S. Attorney for the Southern District of New York today announced criminal charges against Lim.
According to the SEC’s complaint filed in federal court in Manhattan, Kuo and the hedge funds made nearly $16 million trading in Nvidia securities based on Lim’s inside information. Lim lives in Los Altos, Calif., and is employed in the accounting department of a semiconductor firm. Lim and Kuo met at poker parties organized by a mutual friend.
The SEC alleges that during at least 2009 and 2010, Lim regularly obtained detailed information about the contents of Nvidia’s upcoming quarterly earnings announcements from his friend who worked at Nvidia. Lim’s source provided him with not just one but a series of tips, which grew more accurate and reliable as Nvidia finalized its financial results for a given quarter and prepared to report them publicly. Lim typically learned the nonpublic information in phone conversations with his Nvidia friend, and within one minute of ending a conversation Lim would immediately call Kuo to relay the latest inside information. Lim provided Kuo such nonpublic details as Nvidia’s calculation of its revenues, gross profit margins, and other important financial metrics before the company made those figures public in its quarterly earnings announcements.
The SEC alleges that Lim was compensated by Kuo for the confidential Nvidia information that he provided. Kuo wired $5,000 to a Las Vegas casino to pay a debt for Lim, and later Kuo made two $5,000 cash payments to Lim. Kuo also provided Lim with nonpublic information about a pending corporate acquisition, which Lim used to make more than $11,000 in trading profits.
The SEC’s complaint charges Lim with violating the anti-fraud provisions of U.S. securities laws and seeks a final judgment ordering him to disgorge his ill-gotten gains and those of his tippees plus interest, ordering him to pay a financial penalty, permanently enjoining him from future violations, and barring him from serving as an officer or director of a public company.
The SEC’s investigation, which is continuing, has been conducted by Stephen Larson, Daniel Marcus and Joseph Sansone, who are members of the SEC’s Market Abuse Unit in New York, along with Matthew Watkins, Neil Hendelman, Diego Brucculeri and James D’Avino of the New York Regional Office. The SEC thanks the U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation for their assistance in this matter.
BRAZIL'S INDEPENDENCE DAY
Brazil's Independence Day Press Statement
Hillary Rodham Clinton
Secretary of State
Washington, DC
September 5, 2012
On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the people of Brazil as you celebrate your Independence Day this September 7.
The relationship between our two counties is grounded in common values and a shared history of family and friends. When Brazil gained its independence in the 19th century, the United States was the first country that formally recognized its statehood. Today, we are continuing to strengthen our relationship as we work together to promote open, accountable governance, equality, social inclusion, and respect for the environment and human rights for countries around the world.
As you enjoy your national parade on the Esplanade, watch the aerobatics of the "Quadrilha da Fumaça," or mark the occasion at one of countless other celebrations across Brazil, know that the United States is a partner and friend. We look forward to strengthening our close relationship in the coming years as we work together toward a more prosperous and peaceful world.
ADDITIONAL: U.S.-BRAZIL RELATIONS
U.S.-BRAZIL RELATIONS
The United States and Brazil have traditionally enjoyed cooperative, active relations encompassing a broad political and economic agenda. The United States was the first country to recognize Brazil's independence from Portugal in 1822, and as the two largest democracies and economies in the Western Hemisphere, the United States and Brazil are currently consolidating a foundation for a new partnership for the 21st century with a focus on global issues that affect both countries. Ten bilateral agreements signed during President Obama’s visit to Brazil in March 2011 and five more signed during President Rousseff’s visit to the United States in April 2012 testify to an intensification of bilateral engagement in a broad range of areas of mutual interest. Since 2011, a series of high-level dialogues have been created or upgraded, including four Presidential Dialogues: the Global Partnership Dialogue, Economic and Financial Dialogue, Strategic Energy Dialogue, and Defense Cooperation Dialogue. Formal intergovernmental dialogues engage multiple U.S. and Brazilian agencies on issues including bilateral and multilateral issues, economics, trade, finance, agriculture, energy, aviation, technology, innovation, the environment, education, culture, defense, and nonproliferation. These dialogues are the primary vehicles for policy coordination and for defining partnership priorities.
Bilateral relations are complemented by people-to-people initiatives and trilateral and multilateral cooperation. The United States and Brazil’s long history of exchange in education is one example; the bi-national Fulbright Commission was established in 1957, and thousands of scholars have traveled between the two countries. Education cooperation continues to thrive as President Obama’s "100,000 Strong in the Americas" goal and Brazilian President Rousseff’s "Science without Borders" initiative create opportunities for new academic and research partnerships. EducationUSA centers around helping Brazil advise students on study in the United States and host events to assist U.S. higher education institutions recruit Brazilian students. The United States is also working closely with Brazilian counterparts to expand opportunities for English language learning and professional development for Brazilian teachers. These exchanges strengthen U.S. and Brazilian institutional partnerships, develop a workforce prepared for 21st century opportunities, and contribute to long-term economic growth for both countries.
The United States and Brazil also share a commitment to combat discrimination based on race, gender, ethnicity, or lesbian, gay, bisexual, and transgender (LGBT) status; to advance gender equality; to fight exploitative child and forced labor; and to promote human rights. The U.S.-Brazil Joint Action Plan to Eliminate Racial and Ethnic Discrimination and Promote Equality, the first bilateral instrument that targets racism, and the U.S.-Brazil Memorandum of Understanding on the Advancement of Women provide platforms for cooperation to combat racial discrimination and women’s empowerment broadly, and to share best practices in tackling discrimination in STEM education, law enforcement, labor, health, gender-based violence, economic empowerment, and many other areas. Multilateral cooperation and collaboration at the United Nations and Organization of American States has also proven effective in the promotion of LGBT human rights.
The United States and Brazil also partner on trilateral cooperation in third countries, particularly in support of biofuels and agricultural development, food security, health, and women’s rights. Successful programs include joint technical cooperation and training in support of trilateral development programs in Mozambique in agricultural research and technology and food security, with plans to extend this cooperation to additional countries in Africa, Central America, and the Caribbean. Multilaterally, the power of U.S.-Brazil collaboration is evidenced by the success of the Open Government Partnership, a multi-country initiative to foster transparency launched and co-chaired in its inaugural year by the United States and Brazil.
U.S. Assistance to Brazil
The United States, through the U.S. Agency for International Development (USAID), and Brazil are committed to forging a strong partnership that promotes development in other countries, principally in Africa and the Western Hemisphere. Innovative trilateral collaboration will prioritize transnational challenges that are of mutual interest, including food security, health, the environment, agriculture, and economic development. USAID is concluding its bilateral support to prevent and control tuberculosis, support HIV/AIDS prevention, promote clean energy technologies in Brazil, and mitigate climate change. Ongoing programs continue to preserve natural ecosystems, and foster sustainable forest management. Through public-private partnerships, USAID is helping develop basic workplace skills and expand access to English language training for disadvantaged youth, and foster corporate social responsibility goals and projects conducted by U.S. companies operating in Brazil..
Bilateral Economic Relations
In 2007, the United States and Brazil launched the Economic Partnership Dialogue, a multi-agency technical consultative mechanism that addresses bilateral, trilateral, and hemispheric initiatives. The two countries also signed an agreement in 2011 to enhance cooperation on trade and investment. The agreement aims to expand the direct trade and investment relationship by providing a framework to deepen cooperation on innovation, trade facilitation, and technical barriers to trade. The Economic Partnership Dialogue promotes economic cooperation across a range of issues.
In 2011, the United States accounted for 10% of Brazil's exports and 15% of Brazil's imports. The flow of investment between the United States and Brazil is increasingly important, as the United States is one of Brazil's top foreign investor. Brazil has been designated a priority market under both the President’s National Export Initiative (NEI) and for FY 2012 via SelectUSA to promote exports and two-way investment. As the world’s largest biofuels producers, the two countries have worked together to help make sustainable biofuels a global commodity.
In March 2011 the U.S. Ambassador and Brazilian Foreign Minister signed the U.S.-Brazil Air Transport Agreement that, once in force, will establish an Open Skies air transportation relationship between our two countries. In April 2012 the Secretary and the Brazilian Foreign Minister signed the bilateral Aviation Partnership Memorandum of Understanding (MOU), which will provide a coordinated venue for both countries to address aviation sector priorities, including technical cooperation on aviation infrastructure, air transportation, and air traffic management technologies. The U.S. Trade and Development Agency (USTDA) also held an Airports Modernization Technologies Reverse Trade Mission for Brazilian officials in June 2012. This was the inaugural activity of the U.S. Brazil Aviation Partnership.
Some 150,000 U.S. citizens visit Brazil annually. In 2011, more than 1.5 million Brazilians visited the United States, spending more than $6.8 billion, extending the arrivals expansion streak to eight years and setting a second consecutive record. Travel and tourism exports now account for 34% of all U.S. services exports to Brazil. In 2012, the U.S. government embarked on a national strategy to make the United States the world's top travel and tourism destination, to generate jobs and revitalize the U.S. economy. Goals include increasing visitor visa processing capacity at U.S. missions in Brazil and China by 40% in 2012.
Brazil's Membership in International Organizations
Brazil and the United States belong to a number of the same international organizations, including the United Nations, Organization of American States, Inter-American Development Bank, G-20, International Monetary Fund, World Bank, and World Trade Organization. Brazil has also traditionally been a leader in the inter-American community, and is a member of the sub-regional Mercosur and UNASUR groups.
U.S.-NICARAGUA RELATIONS
FROM: U.S. DEPARTMENT OF STATE
The United States established diplomatic relations with Nicaragua in 1849 following its independence from Spain and the later dissolution of a federation of Central American states. Post-independence, the country saw a mix of armed conflict, U.S. military intervention and occupation, rebellion, assassination, and dictatorships. Diplomatic relations between the two countries were severed or interrupted a number of times. Nicaragua's 1990 presidential elections marked an improvement in bilateral relations and were followed by elections in 1996, 2001, 2006.
The 2011 presidential and legislative elections were marred by significant irregularities and were denounced by domestic and international observers as severely flawed. The U.S. Government has clearly stated that the 2011 elections marked a setback to democracy in Nicaragua and undermined the ability of Nicaraguans to hold their government accountable. The United States has called on the Nicaraguan Government to uphold democratic processes and protect universal human rights, and has said that it will continue to support civil society and promote human rights in Nicaragua.
U.S. Assistance to Nicaragua
U.S. assistance aims to help strengthen Nicaragua’s democracy through training for emerging democratic leaders, increase civil society engagement, support an independent media, and improve local governance. U.S. assistance also seeks to promote economic growth and poverty reduction through market-led food security programs in the highly-impoverished north-central region. In under-governed areas of the Caribbean coastal region where drug trafficking and related criminal activity is rising, military-to-military engagement and prevention programs focusing on education and skills development support citizen security. In response to the Nicaraguan government’s continuing failure to account fully for substantial resources made available to it by Venezuela, the State Department did not seek a waiver for Nicaragua in Fiscal Year 2012 of Congressionally mandated restrictions on assistance to the central governments of countries who do not maintain international standards of fiscal transparency. This will curtail FY 2012 security assistance and affects some counternarcotics and development programs that otherwise would have benefitted the central government.
Bilateral Economic Relations
The United States and Nicaragua are parties to the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), which aims to facilitate trade and investment and further regional integration by eliminating tariffs, opening markets, reducing barriers to services, and promoting transparency. CAFTA-DR contains a chapter on investment similar to a bilateral investment treaty with the United States. There are over 125 companies operating in Nicaragua with some relation to a U.S. company, either as wholly or partly-owned subsidiaries, franchisees, or exclusive distributors of U.S. products. The largest are in energy, financial services, textiles/apparel, manufacturing, and fisheries. U.S. exports to Nicaragua include agricultural products, donated relief articles, and machinery. U.S. imports from Nicaragua include apparel, agricultural products, and automobile wire harnesses. The United States works closely with the Nicaraguan government to seek resolution of several hundred claims against it by United States citizens to properties expropriated from them during the 1980s.
Nicaragua's Membership in International Organizations
Nicaragua and the United States belong to a number of the same international organizations, including the United Nations, Organization of American States, International Monetary Fund, World Bank, and World Trade Organization.
ISAF NEWS FROM AFGHANISTAN FOR SEPTEMBER 6, 2012
FROM: U.S. DEPARTMENT OF DEFENSE
Taliban Leader Arrested in Kandahar
From an International Security Assistance Force Joint Command News Release
KABUL, Afghanistan, Sept. 6, 2012 - An Afghan and coalition security force arrested a Taliban network leader in the Kandahar district of Afghanistan's Kandahar province today, military officials reported.
The Taliban leader is believed to have directed distribution of weapons and explosives in central Kandahar, officials said. He also is believed to have planned several high-profile attacks in the region.
At the time of his arrest, officials added, he was believed to be acquiring weapons and bombs for an imminent attack. The security force also detained several suspected insurgents during the operation.
Also today, an Afghan and coalition security force detained several suspected insurgents and seized explosive material in Helmand province's Nad-e Ali district. The operation targeted a Taliban insurgent network conducting attacks throughout western Helmand, officials said.
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| Photo: Going To Afghanistan. Credit: U.S. Marine Lance Cpl. Sean M. Searfus. |
FROM: U.S. DEPARTMENT OF DEFENSE
Taliban Leader Arrested in Kandahar
From an International Security Assistance Force Joint Command News Release
KABUL, Afghanistan, Sept. 6, 2012 - An Afghan and coalition security force arrested a Taliban network leader in the Kandahar district of Afghanistan's Kandahar province today, military officials reported.
The Taliban leader is believed to have directed distribution of weapons and explosives in central Kandahar, officials said. He also is believed to have planned several high-profile attacks in the region.
At the time of his arrest, officials added, he was believed to be acquiring weapons and bombs for an imminent attack. The security force also detained several suspected insurgents during the operation.
Also today, an Afghan and coalition security force detained several suspected insurgents and seized explosive material in Helmand province's Nad-e Ali district. The operation targeted a Taliban insurgent network conducting attacks throughout western Helmand, officials said.
MILITARY'S TOP ENLISTED LEADER COMMENTS ON SUICIDE AWARENESS MONTH
Battaglia Asks Leaders to Engage, Troubled Troops to Reach Out
By Claudette Roulo
American Forces Press Service
WASHINGTON, Sept. 4, 2012 - The military's top enlisted leader wants service members to use September's National Suicide Prevention and Awareness Month as an opportunity to learn what to do when a fellow service member, family member or veteran reaches out for help.
Marine Corps Sgt. Maj. Bryan B. Battaglia, senior enlisted advisor to Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, said service members who seek assistance -- and those who are in a position to offer it -- need to know that it's OK not to be OK.
"We can still operate and function as effective service members [and] effective family members within our armed forces, within life [and] as members within society and not be 100 percent fit," Battaglia said. "Like myself, for example. From some combat wounds and injuries over the years, I'm no longer 100 percent, and that's OK by me, because I understand that it's OK not to be OK."
Thanks to the resilience programs such as Total Force Fitness, Battaglia added, he has been able to better assess his fitness levels and return his mind, body and spirit to a new optimal level of performance.
"I believe each person has their own threshold of when they may need help or assistance," he said. "The moment that indicator lights up within yourself that [you] need some help and assistance or things are not right, ... it is time to reach out."
Service members, family members or veterans don't have to wait until they feel suicidal to take advantage of the services offered by the military and the Veterans Affairs Department, Battaglia said. And the need to reach out can revolve around any sort of adversity or challenge that arises in a person's life, he added.
But no matter what the situation may be, asking for assistance is the crucial first step, Battaglia said, and there are many places to turn to for help. Each service has specific programs shaped and tailored toward its service members and families, he said, and VA also has programs that provide for veterans.
The Defense Department's hotline -- 1-800-273-8255 -- is "one common denominator throughout the entire department," Battaglia said. Service members, family members and veterans in need of assistance, either for themselves or for a loved one, can call the number day or night to speak to someone.
"That someone, who will answer will be a medical health official ... with the background and expertise to make some immediate assessments," he said. "That phone call has complete confidentiality."
Battaglia said he uses the acronym "NOW" to educate service members about suicide prevention.
The N means "there's NO problem too big that should cause an individual to take his or her own life" he said. "If you have a problem that you can't solve, come to someone -- a leader, a chaplain, a commander -- and, by God, we can solve it together."
The O is for OUTREACH, he said. "Outreach is literally a fingertip away -- and that outreach can come from texting your team leader to knocking on your chaplain's door or even notifying an immediate family member," he explained, "but outreach is literally a fingertip away."
As importantly, he said, the W stands for WE care.
"As leaders, we understand and clearly recognize that as members of this professional organization, our men and women have committed to our nation and we are committed to them," he said. "This is an equal opportunity issue; it affects everyone. So whether it is junior leaders, senior leaders or nonleaders, anyone who comes abreast of a person who looks or appears like they may want to hurt themselves, it's time to engage and act, immediately."
Leaders have the added responsibility of dealing with the aftermath of a death by suicide, Battaglia said, which can further strip away at morale, cohesion and unit readiness if left untreated.
"As leaders, we are taught, molded and developed to be problem solvers," he said. "Problem solving is good, but a goal for all of us is to be the problem preventer. Our ultimate objective [in prevention] is essentially removing suicide out of one's decision making process or as a possible course of action in solving a troop's personal problem."
There's no one reason or indicator that leaders can rely upon, in capturing the "why" of suicide, Battaglia said. "However," he added, "active leadership engagement is an area where many leaders, specifically my peer group, believe we can improve."
Engaged leaders will be better able to detect and help troubled troops, Battaglia said.
"There's so much time spent together that leaders will better know their people and can pick up changes from one's normal disposition or behavior," he said.
And it's a year-round job, the sergeant major added.
"While September is officially designated as Suicide Prevention and Awareness Month, this issue is so important to the health of our force that we need to treat every month as suicide prevention and awareness month," he said.
CDC SAYS TOO MANY HAVE OUT OF CONTROL HIGH BLOOD PRESSURE
FROM: U.S. CENTERS FOR DISEASE CONTROLHigh blood pressure is out of control for too many AmericansSerious health risk needs more attention at every healthcare visit
The majority of people with high blood pressure are being treated with medicine and have seen a doctor at least twice in the past year, yet their condition is still not under control, according to a new Vital Signs report from the Centers for Disease Control and Prevention. Millions more are either aware they have high blood pressure but aren’t getting treated with medicine or don’t even know they have it, the report says.
Nearly 1 in 3 American adults (67 million) has high blood pressure, and more than half
(36 million) don’t have it under control, according to the report.
"We have to roll up our sleeves and make blood pressure control a priority every day, with every patient, at every doctor’s visit," said CDC Director Thomas R. Frieden, M.D., M.P.H. "With increased focus and collaboration among patients, health care providers and health care systems, we can help 10 million Americans’ blood pressure come into control in the next five years."
High blood pressure is a major risk factor for heart disease and stroke, the first and fourth leading causes of death in the United States, leading to nearly 1,000 deaths a day.
High blood pressure is defined as blood pressure greater than or equal to 140/90 mm- Hg. High blood pressure’s direct health care cost is almost $131 billion annually.
Pharmacists, nurses, dietitians, and community health workers can support doctors in identifying and treating patients with high blood pressure. This team-based approach is a way to provide patient support and follow-up care, manage medicines, and help patients stick to a blood pressure control plan. In addition, patients should be counseled to make important lifestyle changes that affect blood pressure, including eating a healthy, low sodium diet, exercising, maintaining a healthy weight and not smoking.
Key facts in the Vital Signs report about those affected:
More than half (36 million) have uncontrolled high blood pressure.
Nearly 22 million know they have high blood pressure, but don’t have it under control.
16 million take medicine, but still don’t have their blood pressure under control.
SEC CHARGES CHINA-BASED COMPANY AND CHIEF EXECUTIVE WITH RECORDING FAKE SALES TO INFLATE REVENUES
FROM: U.S. SECURITIES AND EXCHANGE DEPARTMENT
The Securities and Exchange Commission today charged a China-based company and its chief executive with fraud for recording fake sales of a weight loss product to inflate revenues in the company’s financial statements by millions of dollars.
The SEC alleges that China Sky One Medical Inc. (CSKI) falsely stated in 2007 annual and quarterly reports that it had entered into a strategic distribution agreement with a Malaysian company that would become the "exclusive" distributor of CSKI’s "slim patch" in Malaysia and generate $1 million per month in sales. However, the company never actually entered into any such agreement. CSKI instead created approximately $19.8 million in phony export sales to Malaysia that were recorded as revenue in its financial results for 2007 and 2008. CEO Yan-qing Liu certified the overstated financial results, which appear in CSKI’s financial statements through 2010 and continue to impact the company’s retained earnings on its balance sheet.
"Accurate and reliable financial reporting is the bedrock of our capital markets, and CSKI blatantly defrauded investors by fabricating sales and overstating its financial results," said John M. McCoy III, Associate Director of the SEC’s Los Angeles Regional Office
According to the SEC’s complaint filed in U.S. District Court for the Central District of California, CSKI is based Harbin, China. In addition to weight loss patches, the company produces and sells sprays, ointments, and other Chinese traditional pain relief and health and beauty products. CSKI became a public company trading on the U.S. markets through a reverse merger in May 2006.
The SEC alleges that after CSKI devised the purported strategic distribution agreement with Takasima Industries – which is a Malaysian fitness equipment manufacturer and retailer – CSKI went on to falsely report export sales to Malaysia of more than $12.2 million for 2007, which constituted 25 percent of its total revenues. CSKI then falsely recorded $7.5 million (8.2 percent of total revenues) in such sales for 2008. Virtually all of CSKI’s reported sales to Malaysia via Takasima were bogus. Takasima only purchased $167,542 in slim patches from CSKI in 2007, and none in 2008. And it never entered into any distribution agreement with CSKI and never undertook – much less satisfied – any minimum purchase commitment.
According to the SEC’s complaint, CSKI also falsely claimed in its public filings that its top two customers for 2007 were sales agents for Takasima. CSKI identified those customers as Ningbo Yuehua International Trading Company and Guangzhou Xinghe International Trading Company, which collectively accounted for the phony 25 percent of CSKI’s total revenues for 2007. CSKI claimed that all of these purported sales to Ningbo Yuehua and Guangzhou Xinghe went through Takasima, while in fact Takasima never had any relationship with these two entities.
CSKI and Liu are charged with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and various Exchange Act provisions including corporate reporting, recordkeeping, internal controls, and false statements to auditors.
The SEC’s complaint seeks financial penalties against CSKI and Liu as well as disgorgement of ill-gotten gains by Liu, who personally benefited from the overstated financial statements through the company’s 2008 private placement of securities. The SEC also seeks to have Liu reimburse CSKI for certain incentive-based compensation he received during the period affected by the fraud pursuant to Section 304 of the Sarbanes-Oxley Act, and to have Liu barred from acting as an officer or director of a public company. The SEC also seeks to have CSKI and Liu permanently enjoined from future violations of these provisions of the federal securities laws
In addition to the court action, the SEC instituted administrative proceedings to determine whether to revoke or suspend registration of CSKI’s securities due to the company’s failure to file its annual report for 2011 or any quarterly reports for 2012.
The SEC’s investigation, which is continuing, has been conducted by Junling Ma, Rhoda Chang, and Marshall S. Sprung of the SEC’s Los Angeles Regional Office. The SEC’s Cross Border Working Group – which focuses on U.S. companies with substantial foreign operations – and the SEC’s Office of International Affairs assisted in the investigation. The SEC’s litigation will be led by David Van Havermaat.
THREE FORMER UBS EXECUTIVES CONVICTED FOR FRAUD
FROM: U.S. DEPARTMENT OF JUSTICEFRIDAY, AUGUST 31, 2012
WASHINGTON — A federal jury in New York City today convicted three former financial services executives for their participation in frauds related to bidding for contracts for the investment of municipal bond proceeds and other municipal finance contracts, the Department of Justice announced.
Peter Ghavami, Gary Heinz and Michael Welty, all former UBS AG executives, were found guilty on conspiracy and fraud charges in the U.S. District Court in New York City. Ghavami was found guilty on two counts of conspiracy to commit wire fraud and one count of substantive wire fraud. Heinz was found guilty on three counts of conspiracy to commit wire fraud and two counts of substantive wire fraud. Welty was found guilty on three counts of conspiracy to commit wire fraud. Heinz was found not guilty on one count of witness tampering and Welty was found not guilty on one count of substantive wire fraud.
The trial began on July 30, 2012. Ghavami, Heinz and Welty were initially indicted on Dec. 9, 2010.
"For years, these executives corrupted the competitive bidding process and defrauded municipalities across the country out of money for important public works projects," said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. "Today’s convictions demonstrate that the division is committed to holding accountable those who seek to unfairly and illegally undermine competitive markets."
According to evidence presented at trial, while employed at UBS, Ghavami, Heinz and Welty participated in separate fraud conspiracies and schemes with various financial institutions and with a broker, at various time periods from as early as March 2001 until at least November 2006. These financial institutions, or providers, offered a type of contract—known as an investment agreement— to state, county and local governments and agencies, and not-for-profit entities, throughout the United States. The public entities were seeking to invest money from a variety of sources, primarily the proceeds of municipal bonds that they had issued to raise money for, among other things, public projects. Public entities typically hire a broker to assist them in investing their money and to conduct a competitive bidding process to determine the winning provider.
According to evidence presented at trial, while acting as providers, Ghavami, Heinz and Welty, with their provider and broker co-conspirators, corrupted the bidding process for more than a dozen investment agreements to increase the number and profitability of the agreements awarded to UBS. At other times, while acting as brokers, Ghavami, Heinz, Welty and their co-conspirators arranged for UBS to receive kickbacks in exchange for manipulating the bidding process and steering investment agreements to certain providers.
Ghavami, Heinz and Welty deprived the municipalities of competitive interest rates for the investment of tax-exempt bond proceeds that were to be used by municipalities to refinance outstanding debt and for various public works projects, such as for building or repairing schools, hospitals and roads. Evidence at trial established that they cost municipalities around the country and the U.S. Treasury millions of dollars.
During the trial, the government presented specific evidence relating to approximately 26 corrupted bids and approximately 76 recorded conversations made by the co-conspirator financial institutions. Among the issuers and not-for-profit entities whose agreements or contracts were subject to the defendants' schemes were the Commonwealth of Massachusetts, the New Mexico Educational Assistance Foundation, the Tobacco Settlement Financing Corporation of Rhode Island and the RWJ Health Care Corp at Hamilton.
"Corrupt bidding schemes serve to weaken the public’s trust in the municipal bond market and prevent public entities from enjoying the benefits of a true competitive bidding process," said Mary E. Galligan, Acting Assistant Director in Charge of the FBI in New York. "Today’s conviction is further proof of our efforts to weed out these corrupt criminals and ensure justice is served."
Today's verdict is important because it confirms that these complex, seemingly uninteresting backroom deals have a real impact on taxpayers, who should benefit from a municipal bond issue and are ultimately responsible for paying it off," said Richard Weber, Chief, Internal Revenue Service-Criminal Investigation (IRS-CI). "Today’s convictions send a strong message to the municipal bond industry and demonstrates the commitment of the Internal Revenue Service and the Justice Department to rid the industry of corrupt practices."
A total of 20 individuals have been charged as a result of the department’s ongoing municipal bonds investigation. Including today’s convictions, a total of 19 individuals have been convicted or pleaded guilty, and one awaits trial. Additionally, one company has pleaded guilty.
Two of charged fraud conspiracies carry a maximum penalty per count of 30 years in prison and a $1 million fine. A third fraud conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine. The two wire fraud charges carry a maximum penalty per count of 30 years in prison and a $1 million fine. These maximum fines per count may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either amount is greater than the statutory maximum fine.
The verdict announced today resulted from an ongoing investigation conducted by the Antitrust Division’s New York and Chicago Offices, the FBI and the IRS-CI. The division is coordinating its investigation with the U.S. Securities and Exchange Commission, the Office of the Comptroller of the Currency and the Federal Reserve Bank of New York.
REMARKS BY U.S. SEC. OF STATE CLINTON AND ASEAN SECRETARY GENERAL SURIN
FROM: U.S. STATE DEPARTMENTMeeting with ASEAN Secretary General SurinRemarks
Hillary Rodham Clinton
Secretary of State
ASEAN Secretariat
Jakarta, Indonesia, Indonesia
September 4, 2012
ASEAN SECRETARY GENERAL SURIN: Secretary Hillary Rodham Clinton, chair of ASEAN program representative, Excellencies, members of the CPR, it is a great privilege for us to welcome the Secretary here for the second time in her term. And I remember very well on the 18th of February you were here. Your first trip to the world you came to Asia. You came to the ASEAN Secretariat. You became the highest ranking ever official of the United States Government to visit us. And ever since, this place has been a routine destination for visiting dignitaries to ASEAN, to the Republic of Indonesia.
At that time you promised many things. You promised full engagement with ASEAN, with Southeast Asia. You promised to accede to our Treaty of Amity and Cooperation. You have promised the highest presidential engagement. You have promised to come to attend our post-ministerial (inaudible) conference, ARF. And I am glad to say that you have delivered it all. Thank you very, very much. Along the way we were a bit skeptical and we asked you -- we challenged you we would believe in the change when you delivered everything that you had promised us. And you did. And we certainly feel very much honored to welcome you here.
Now, let me just say that most of the diplomats we work with, they are counterparts. And you have turned your counterparts here in Southeast Asia, in ASEAN, into your friends. And friendship is extremely important for the region and for the region's diplomacy. We count you not as counterpart, but as a true friend. That is why today is very special. And we hope that we will accomplish many more things together into the future with the United States and ASEAN.
Madam, warmly welcome, please.
SECRETARY CLINTON: Thank you so much, my friend. And let me express what a pleasure it is to be back in Jakarta and to have this second opportunity to visit the ASEAN Secretariat.
As Dr. Surin has said, I came here in February of 2009 with the intention of deepening and broadening and elevating the relationship between the United States and ASEAN. And we have worked to do just that. I believe our relationship is stronger and more effective. And that is all to the good, because the United States views ASEAN as central to regional stability and economic progress in the Asia-Pacific.
We did sign the Treaty of Amity and Cooperation, as I said we would, and I visited back in February of 2009. We were the first dialogue partner to open a mission to ASEAN. And I am pleased that others are also doing that. We appointed our first resident U.S. Ambassador, and Ambassador Carden holds regular meetings with his counterparts in the ASEAN Committee of Permanent Representatives, whom we soon will welcome on their first official visit to the United States. We have engaged with ASEAN at the highest levels, with President Obama attending three U.S.-ASEAN leaders meetings, as well as the East Asia Summit, here in Indonesia last year.
Later this month, I will host my ASEAN counterparts in a meeting on the margins of the UN General Assembly. We have devoted resources to supporting ASEAN's goal of economic and political integration through the Advance program to narrow the development gap among ASEAN nations, and to promote and protect human rights. We are increasing our People-to-People ties through the ASEAN Youth Volunteers program and the U.S.-ASEAN Fulbright program, which we are now launching.
In short, we are making a sustained, all-out effort to build an enduring, multi-faceted relationship between ASEAN and the United States. We want to do all we can to advance ASEAN's goal of integration, because we have an interest in strengthening ASEAN's ability to address regional challenges in an effective, comprehensive way.
And we really invite and need ASEAN to lead in crafting strong, regional responses to challenges like climate change and trans-national crime, which require collective actions. And we need ASEAN to lead in upholding a system of rules and responsibilities that will protect regional stability and guide the region to greater political and economic progress.
So, Dr. Surin, it is a great honor for me now to have returned for a second visit to conduct, if you will, a progress report among partners and friends, and to state once again what I have said in other contexts. The United States believes in ASEAN centrality, and ASEAN centrality is essential to ASEAN unity. So I am looking forward to our exchange today and the dialogue among us, looking forward to continuing to work on behalf of the U.S.-ASEAN relationship.
ASEAN SECRETARY GENERAL SURIN: Thank you very much. (Applause.)
PARALYMPIAN SAYS, 'NOBODY'S IN THIS BY THEMSELVES...IT TAKES A COMMUNITY TO DO ANYTHING'
FROM: U.S. DEPARTMENT OF DEFENSE
Former Air Force Staff Sgt. Mario Rodriguez, right, a member of the 2012 U.S. Paralympic fencing team, squares off with France's Ludov LeMoine at London's ExCel Centre during the Paralympic Games, Sept. 4, 2012. DOD photo by U.S. Army Sgt. 1st Class Tyrone C. Marshall Jr.
Air Force Veteran Shares Wisdom With Young Paralympians
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service
LONDON, Sept. 4, 2012 - The camaraderie of being part of a team is a draw to many athletes and can be traced to the origins of why many embarked on lengthy careers, staying the course even when things are not always going their way.
Mario Rodriguez, a member of the U.S. Paralympic fencing team and former Air Force staff sergeant, is one such athlete competing at the 2012 Paralympic Games here.
"I was a Russian translator for just under four years with the Air Force," he said. "I really loved the job. I liked serving my country, being at the forefront of things. And the other part of that was just basically being part of something bigger than myself. I think that's kind of how I ended up in sports, because [I enjoy] being part of a team, [building teams], and doing thing together to make things happen.
"Nobody's in this by themselves," he added. "It takes a community to do anything."
Rodriguez said he served his lone Air Force tour stationed on the Greek island of Crete. He elected to have his leg removed in 1992 after an untreatable tumor was discovered. It was then that he discovered wheelchair fencing and began his career.
During his bouts today -- in which he unsuccessfully faced competitors from Hungary, Hong Kong, France and Russia -- the Paralympian fencer said, he didn't feel quite as focused as he could be.
"I was trying to be in the right place at the right time," he said. "This is definitely a game of wits and speed. I definitely had the preparation. I guess I'm just getting a little bit old, to put it bluntly."
Rodriguez said he stepped away from the fencing in 2004, but later the appeal of coaching young, talented fencers brought him back.
"Between 2008 and now, I kind of got coached back into the [fencing] circuit," Rodriguez said. "Basically, what happened was we have a couple of younger athletes that really piqued my interest, and I wanted to see them do well."
Rodriguez noted that as he went to some of the same tournaments and had some success, such as taking the gold medal in Brazil's zonal championships, he built a rapport with the younger athletes.
"I was trying to give them a little extra fodder, and give them the benefit of my experience and knowledge," he said.
Hearing the national anthem at the championship was amazing, Rodriguez said, and also served to inspire him to return to the game.
"I wish I could do that here, but I don't think it's going to happen for me," he said. "It's great to be part of something bigger than myself."
Rodriguez said his goals for the Paralympic Games were to perform the best he could, be a good representative of the United States, and spend time with old athlete friends from other countries, noting that he enjoys sharing the experience with all of the athletes, volunteers and coaches.
Rodriguez also talked about his preparation for Paralympic competition and the advice he gives to younger competitors.
"I think before, the key to my success was overtraining," he said. "I've got to a point in my career where overtraining is definitely detrimental to my being able to stay on the mark. What I [would] tell anyone these days is the most important thing is being able to find a good, healthy sports regimen and not overdoing it."
The Paralympic fencer also said "it's a very, very fine edge to ride on when you're training for something like the Paralympics or any elite sport.
"You have to take care of yourself," he continued. "If you overdo it, then you can't do your personal best. You've got to stay in good physical shape, good mental shape, and just be consistent."
Rodriguez said he is his own worst critic when it comes to examining his own performances.
"I think, some of us, maybe more than others, are [tough on ourselves]," he said. "I tend to be self-critical, and I want to do better, and make my coach ... [and] teammates happy -- make myself happy."
At the end of the day, the Air Force veteran said, he's just happy to represent his country in the Paralympic Games.
"I feel like I've gotten a lot of support," Rodriguez said. "I looked out in the stands and saw several members of our team -- not just people in the fencing community, but from other sports as well. So that really pushed me to do the best I could."
Wednesday, September 5, 2012
THE BLUE MOON
NASA
Blue Moon Over Cincinnati
A rare second Full Moon of the month, known as a "Blue Moon," is seen over Cincinnati on Friday, Aug. 31, 2012.
The family of Apollo 11 Astronaut Neil Armstrong held a memorial service celebrating his life earlier in the day in Cincinnati. Armstrong, the first man to walk on the moon during the 1969 Apollo 11 mission, died Saturday, Aug. 25. He was 82.
Image Credit: NASA/Bill Ingalls
WYOMING GRAY WOLF NO LONGER PROTECTED UNDER ENDANGERED SPECIES ACT
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| Photo: Wyoming Gray Wolf. Credit: Tracy Brooks, U.S. Fish And Wildlife Service. |
Service Declares Wyoming Gray Wolf Recovered Under the Endangered Species Act and Returns Management Authority to the State
August 31, 2012
The U.S. Fish and Wildlife Service announced today that the Wyoming population of gray wolves is recovered and no longer warrants protection under the Endangered Species Act (ESA). Beginning September 30th, wolves in Wyoming will be managed by the state under an approved management plan, as they are in the states of Idaho and Montana.
"The return of the wolf to the Northern Rocky Mountains is a major success story, and reflects the remarkable work of States, Tribes, and our many partners to bring this iconic species back from the brink of extinction," said Fish and Wildlife Service Director Dan Ashe. "The wolf population has remained healthy under state management in Idaho and Montana, and we’re confident that the Wyoming population will sustain its recovery under the management plan Wyoming will implement."
The most recent official minimum population estimate shows that the Northern Rocky Mountain wolf population contains more than 1,774 adult wolves and more than 109 breeding pairs. Most of the suitable habitat across the Northern Rocky Mountain region is now occupied and likely at, or above, long-term carrying capacity. This population has exceeded recovery goals for 10 consecutive years.
The Service will continue to monitor the delisted wolf populations in all three states for a minimum of five years to ensure that they continue to sustain their recovery, and retains authority to reinstate ESA protections at any time if circumstances warrant.
"Our primary goal, and that of the states, is to ensure that gray wolf populations in the Northern Rocky Mountains remain healthy, giving future generations of Americans the chance to hear its howl echo across the area," added Ashe. "No one, least of all Idaho, Montana and Wyoming, wants to see wolves back on the endangered species list. But that’s what will happen if recovery targets are not sustained."
Wyoming has committed to meeting its statutory and regulatory standards by managing for a buffer above minimum management targets. The management framework adopted by the State is designed to maintain at least 150 wolves and 15 breeding pairs within the State of Wyoming. This is the same management objective as was adopted by the States of Montana and Idaho. The Service expects the Greater Yellowstone Area wolf population to maintain a long-term average of around 300 wolves, while the entire Northern Rocky Mountains Distinct Population Segment is expected to achieve a long-term average of around 1,000 wolves. These wolves represent a 400-mile southern range extension of a vast contiguous wolf population that numbers over 12,000 wolves in western Canada and about 65,000 wolves across all of Canada and Alaska.
In 2009, the Service published a final rule to remove ESA protections for gray wolves across the Northern Rocky Mountain distinct population segment, with the exception of those in Wyoming. Wyoming was not included because the state’s management plan did not provide the necessary regulatory mechanisms to assure that gray wolf populations would be conserved if the protections of the ESA were removed. Subsequently, the Service and the State of Wyoming developed points of agreement that would promote management of a stable, sustainable population of wolves and allow management authority to be turned over to the state. Wyoming subsequently developed a wolf management plan and amended its state law and regulations to codify those protections.
With publication of this final rule, the northern Rocky Mountain population of gray wolves that includes all of Montana, Idaho, and Wyoming, the eastern third of Washington and Oregon, and a small corner of north-central Utah will be managed by state and tribal jurisdictions. Today’s decision will take effect September 30th.
Biologists have determined that the vast majority of Wyoming’s wolf population and habitat is located in northwest Wyoming, where wolves will be managed as "trophy game" animals year-round. Trophy game status allows the Wyoming Game and Fish Commission and the Wyoming Game and Fish Department to regulate timing, methods, and numbers of wolves taken through regulated hunting and other methods such as control of wolves found to be depredating on livestock.
Existing Federal law prohibits hunting in Yellowstone National Park and Grand Teton National Park. No wolf hunting will occur in the John D. Rockefeller Jr. Memorial Parkway, the National Elk Refuge, and the Wind River Reservation in 2012, although hunting could occur in these three areas in future years. Beginning October 1, the State of Wyoming has authorized a harvest of 52 wolves in other portions of northwestern Wyoming’s Trophy Area in 2012. Current information indicates only about ten percent of the Greater Yellowstone Area wolf population resides outside the Trophy Game Area in Wyoming, where they have been designated as predators and can be taken with very few restrictions.
NEW BIO-THREAT SENSORS WILL BE TESTED IN BOSTON SUBWAY SYSTEM
Photo: S&T scientists will spray small quantities of killed Bacillus subtilis in the subway tunnels. Credit: DHSBoston Subway System to be Used to Test New Sensors for Biological Agents
Department of Homeland Security’s Science and Technology Directorate’s "Detect to Protect" program will assess trigger and confirmer sensors designed to detect biological agents within minutes
The idea that disease and infection might be used as weapons is truly dreadful, but there is plenty of evidence showing that biological weapons have been around since ancient times. Bioterrorism, as it is dubbed, is nothing new, and although medicines have made the world a safer place against a myriad of old scourges both natural and manmade, it still remains all too easy today to uncork a nasty cloud of germs.
The Department of Homeland Security’s Science and Technology Directorate (DHS S&T) has scheduled a series of tests in the Boston subways to measure the real-world performance of new sensors recently developed to detect biological agents.
S&T’s "Detect-to-Protect" (D2P) Bio Detection project is assessing several sensors (made by Flir Inc., Northrop Grumman, Menon and Associates, and Qinetiq North America) to alert authorities to the presence of biological material. These devices with "trigger" and "confirmer" sensors have been designed to identify and confirm the release of biological agents within minutes.
In 2009, and in early August this year, inert gasses were released in the Boston subway system in an initial study to determine where and how released particulates would travel through the subway network and to identify exactly where to place these new sensors. The current study will involve the release of a small amount of an innocuous killed bacterium in subway stations in the Boston area to test how well the sensors work. After the subway stations close, S&T scientists will spray small quantities of killed Bacillus subtilis in the subway tunnels. This common, food-grade bacterium is found everywhere in soil, water, air, and decomposing plant matter and, even when living, is considered nontoxic to humans, animals, and plants.
S&T’s Dr. Anne Hultgren, program manager for the D2P project, says, "While there is no known threat of a biological attack on subway systems in the United States, the S&T testing will help determine whether the new sensors can quickly detect biological agents in order to trigger a public safety response as quickly as possible."
DHS leads federal efforts to prepare for, respond to, and recover from a possible domestic biological attack. The testing will continue periodically for the next six months and will be monitored by the Massachusetts Bay Transportation Authority as well as state and local public health officials.
The particles released in the stations will dissipate quickly. But before they do, their brief travels will provide invaluable data for DHS’ ongoing effort to protect American travelers from potential hazards. Unlike the "Charlie on the MTA" made famous by the Kingston Trio folk group, these particles will NOT ‘ride forever ’neath the streets of Boston.’
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