SEC CHARGES STATE OF ILLIONOIS WITH SECURITIES FRAUD

Map:  Illinois.  Credit:   Wikimedia Commons.  GNU. 

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., March 11, 2013 — The Securities and Exchange Commission today charged the State of Illinois with securities fraud for misleading municipal bond investors about the state’s approach to funding its pension obligations.

An SEC investigation revealed that Illinois failed to inform investors about the impact of problems with its pension funding schedule as the state offered and sold more than $2.2 billion worth of municipal bonds from 2005 to early 2009. Illinois failed to disclose that its statutory plan significantly underfunded the state’s pension obligations and increased the risk to its overall financial condition. The state also misled investors about the effect of changes to its statutory plan.

Illinois, which implemented a number of remedial actions and issued corrective disclosures beginning in 2009, agreed to settle the SEC’s charges.

"Municipal investors are no less entitled to truthful risk disclosures than other investors," said George S. Canellos, Acting Director of the SEC’s Division of Enforcement. "Time after time, Illinois failed to inform its bond investors about the risk to its financial condition posed by the structural underfunding of its pension system."

Elaine Greenberg, Chief of the SEC’s Municipal Securities and Public Pensions Unit, added, "Regardless of the funding methodology they choose, municipal issuers must provide accurate and complete pension disclosures including the effects of material changes to their pension plans. Public pension disclosure by municipal issuers continues to be a top priority of the unit."

According to the SEC’s order instituting settled administrative proceedings against Illinois, the state established a 50-year pension contribution schedule in the Illinois Pension Funding Act that was enacted in 1994. The schedule proved insufficient to cover both the cost of benefits accrued in a current year and a payment to amortize the plans’ unfunded actuarial liability. The statutory plan structurally underfunded the state’s pension obligations and backloaded the majority of pension contributions far into the future. This structure imposed significant stress on the pension systems and the state’s ability to meet its competing obligations – a condition that worsened over time.

The SEC’s order finds that Illinois misled investors about the effect of changes to its funding plan, particularly pension holidays enacted in 2005. Although the state disclosed the pension holidays and other legislative amendments to the plan, Illinois did not disclose the effect of those changes on the contribution schedule and its ability to meet its pension obligations. The state’s misleading disclosures resulted from various institutional failures. As a result, Illinois lacked proper mechanisms to identify and evaluate relevant information about its pension systems into its disclosures. For example, Illinois had not adopted or implemented sufficient controls, policies, or procedures to ensure that material information about the state’s pension plan was assembled and communicated to individuals responsible for bond disclosures. The state also did not adequately train personnel involved in the disclosure process or retain disclosure counsel.

According to the SEC’s order, Illinois took multiple steps beginning in 2009 to correct process deficiencies and enhance its pension disclosures. The state issued significantly improved disclosures in the pension section of its bond offering documents, retained disclosure counsel, and instituted written policies and procedures as well as implemented disclosure controls and training programs. The state designated a disclosure committee to assemble and evaluate pension disclosures. In reaching a settlement, the Commission considered these and other remedial acts by Illinois and its cooperation with SEC staff during the investigation. Without admitting or denying the findings, Illinois consented to the SEC’s order to cease and desist from committing or causing any violations of Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933.

The SEC’s investigation was conducted by Peter K. M. Chan along with Paul M. G. Helms in the Chicago Regional Office and Eric A. Celauro and Sally J. Hewitt in the Municipal Securities and Public Pensions Unit. They were assisted by other specialists in the unit including Joseph O. Chimienti, Creighton Papier, and Jonathan Wilcox.

GROWING SEASON EXTENDED IN THE FAR NORHT



Of the 10 million square miles (26 million square kilometers) of northern vegetated lands, 34 to 41 percent showed increases in plant growth (green and blue), 3 to 5 percent showed decreases in plant growth (orange and red), and 51 to 62 percent showed no changes (yellow) over the past 30 years. Satellite data in this visualization are from the AVHRR and MODIS instruments, which contribute to a vegetation index that allows researchers to track changes in plant growth over large areas.  Credit: NASA's Goddard Space Flight Center Scientific Visualization Studio

FROM:NASA
Amplified Greenhouse Effect Shifts North's Growing Seasons

WASHINGTON -- Vegetation growth at Earth's northern latitudes increasingly resembles lusher latitudes to the south, according to a NASA-funded study based on a 30-year record of land surface and newly improved satellite data sets.

An international team of university and NASA scientists examined the relationship between changes in surface temperature and vegetation growth from 45 degrees north latitude to the Arctic Ocean. Results show temperature and vegetation growth at northern latitudes now resemble those found 4 degrees to 6 degrees of latitude farther south as recently as 1982.

"Higher northern latitudes are getting warmer, Arctic sea ice and the duration of snow cover are diminishing, the growing season is getting longer and plants are growing more," said Ranga Myneni of Boston University's Department of Earth and Environment. "In the north's Arctic and boreal areas, the characteristics of the seasons are changing, leading to great disruptions for plants and related ecosystems."

The study was published Sunday in the journal Nature Climate Change.

Myneni and colleagues used satellite data to quantify vegetation changes at different latitudes from 1982 to 2011. Data used in this study came from NOAA's Advanced Very High Resolution Radiometers (AVHRR) onboard a series of polar-orbiting satellites and NASA's Moderate Resolution Imaging Spectroradiometer (MODIS) instruments on the Terra and Aqua satellites.

As a result of enhanced warming and a longer growing season, large patches of vigorously productive vegetation now span a third of the northern landscape, or more than 3.5 million square miles (9 million square kilometers). That is an area about equal to the contiguous United States. This landscape resembles what was found 250 to 430 miles (400 to 700 kilometers) to the south in 1982.

"It's like Winnipeg, Manitoba, moving to Minneapolis-Saint Paul in only 30 years," said co-author Compton Tucker of NASA's Goddard Space Flight Center in Greenbelt, Md.

The Arctic's greenness is visible on the ground as an increasing abundance of tall shrubs and trees in locations all over the circumpolar Arctic. Greening in the adjacent boreal areas is more pronounced in Eurasia than in North America.

An amplified greenhouse effect is driving the changes, according to Myneni. Increased concentrations of heat-trapping gasses, such as water vapor, carbon dioxide and methane, cause Earth's surface, ocean and lower atmosphere to warm. Warming reduces the extent of polar sea ice and snow cover, and, in turn, the darker ocean and land surfaces absorb more solar energy, thus further heating the air above them.

"This sets in motion a cycle of positive reinforcement between warming and loss of sea ice and snow cover, which we call the amplified greenhouse effect," Myneni said. "The greenhouse effect could be further amplified in the future as soils in the north thaw, releasing potentially significant amounts of carbon dioxide and methane."

To find out what is in store for future decades, the team analyzed 17 climate models. These models show that increased temperatures in Arctic and boreal regions would be the equivalent of a 20-degree latitude shift by the end of this century relative to a period of comparison from 1951-1980.

However, researchers say plant growth in the north may not continue on its current trajectory. The ramifications of an amplified greenhouse effect, such as frequent forest fires, outbreak of pest infestations and summertime droughts, may slow plant growth.

Also, warmer temperatures alone in the boreal zone do not guarantee more plant growth, which also depends on the availability of water and sunlight.

"Satellite data identify areas in the boreal zone that are warmer and dryer and ¬¬other areas that are warmer and wetter," said co-author Ramakrishna Nemani of NASA's Ames Research Center in Moffett Field, Calif. "Only the warmer and wetter areas support more growth."
Researchers did find found more plant growth in the boreal zone from 1982 to 1992 than from 1992 to 2011, because water limitations were encountered in the latter two decades.

Data, results and computer codes from this study will be made available on NASA Earth Exchange (NEX), a collaborative supercomputing facility at Ames. NEX is designed to bring scientists together with data, models and computing resources to accelerate research and innovation and provide transparency.

NEWS FROM AFGHANISTAN FOR MARCH 11, 2013

U.S. Defense Secretary Chuck Hagel tours a classroom of Afghan soldiers with Afghan Brig. Gen. Aminullah Patyani, commander of the Kabul Military Training Center in Kabul, Afghanistan, March 10, 2013. DOD photo by Erin A. Kirk-Cuomo
　

 NEWS FROM AFGHANISTAN
Combined Force Arrests Taliban Leader in Helmand Province
Compiled from International Security Assistance Force Joint Command News Releases

WASHINGTON, March 11, 2013 - A combined Afghan and coalition security force arrested a Taliban leader and detained another insurgent in the Nawah-ye Barakzai district of Afghanistan's Helmand province today, military officials reported.

The leader is accused of coordinating ambushes against Afghan and coalition forces and is believed to have a history of directing attacks using improvised explosive devices, rocket-propelled grenades and other weapons.

The security force also seized a stockpile of IED components.

In other Afghanistan operations today:

-- A combined force in Kandahar province's Arghandab district arrested a Taliban leader believed to be an IED specialist with a cell of fighters under his command. He also has a significant history of procuring IED components, building IEDs and distributing them to his subordinates for use against Afghan and coalition forces. The security force also detained another insurgent and seized 20 pounds of heroin.

-- In Logar province's Baraki Barak district, a combined force detained an insurgent during a search for a Taliban leader alleged to be responsible for directing insurgent activity. He also is influential in the Taliban network there, ordering IED operations and other attacks.

In operations yesterday:

-- A combined force in Paktia province's Gardez district arrested a Haqqani network facilitator accused of procuring and distributing lethal aid to extremist fighters. He also is believed to have planned attacks against Afghan and coalition forces. The security force also arrested another insurgent and seized ammunition, an assault rifle and a grenade.

-- In Kandahar province's Panjwai district, a combined force arrested nine insurgents during a search for a Taliban commander accused of building IEDs and coordinating their use in attacks against Afghan and coalition forces. He also is believed to have operational control over a cell of Taliban fighters and maintained a sophisticated operations center used to plan insurgent activity.

-- A combined force killed three insurgents in Helmand province's Nahr-e Saraj district after observing them conducting insurgent activity.

DOD Press Briefing by Gen. Dunford from Kabul, Afghanistan

Press Briefing by Gen. Dunford from Kabul, Afghanistan

NEWS FROM AFGHANISTAN: TWO AMERICAN SERVICE MEMBERS KILLED, SEVERAL WOUNDED IN AFGHANISTAN

NEWS FROM AFGHANISTAN
Apparent Insider Attack Kills 2 Americans, 2 Afghans
American Forces Press Service

WASHINGTON, March 11, 2013 - Two American service members were killed and 10 were wounded in an apparent "green-on-blue" incident in Afghanistan's Wardak province today.

An International Security Assistance Force release said the two were killed when an individual wearing an Afghan national security forces uniform turned a weapon on U.S. and Afghan forces. The attack killed at least two Afghan soldiers as well, U.S. officials said.

This is the third fatal insider attack this year. A British soldier was killed Jan. 7, and an American contract employee was killed March 8.

These attacks escalated last year, with 62 ISAF service members killed in 46 separate attacks. Insider attacks conducted in 2012 killed 35 Americans.

Today's attack occurred in the village of Jalrez. Reports indicate the attackers used a truck-mounted weapon to open fire on personnel leaving a training session. ISAF personnel killed the attacker, officials said.

SECRETARY OF DEFENSE HAGEL MAKES REMARKS AFTER MEETING WITH PRESIDENT KARZAI

Defense Secretary Chuck Hagel, left, meets with Afghan President Hamid Karzai in Kabul, Afghanistan, March 10, 2013. Hagel traveled to Afghanistan on his first trip as the 24th defense secretary to visit U.S. troops, NATO leaders and Afghan leaders. DOD photo by Erin A. Kirk-Cuomo

FROM:  U.S. DEPARTMENT OF DEFENSE
Hagel Offers Observations After Meeting With Karzai
By Karen Parrish
American Forces Press Service

KABUL, Afghanistan, March 10, 2013 - After his first meeting with Afghanistan's president as head of the U.S. military today, Defense Secretary Chuck Hagel said the encounter featured "clear, direct conversation

The secretary and President Hamid Karzai met for discussions and dinner at the presidential palace here. NATO International Security Assistance Force commander Marine Corps Gen. Joseph F. Dunford Jr., U.S. Ambassador James B. Cunningham and other senior U.S. officials also attended.

In a speech earlier today, Karzai seemed to suggest the United States and the Taliban were conspiring to keep the level of violence in Afghanistan high to ensure the continued presence of U.S. troops here beyond 2014.

"We did discuss those comments," the secretary said, responding to a reporter's question about his meeting with Karzai. "I told the president it was not true that the United States was unilaterally working with the Taliban in trying to negotiate anything."

Any negotiation with the Taliban to build peace and political consensus in Afghanistan must come from the Afghan government, Hagel said. "Obviously, the United States will support efforts, if they are led by the Afghans, to come to some possible resolution, if that eventually evolves," he added.

Later in his comments, Hagel acknowledged that "when a nation would ... think of engaging an enemy they're still at war with, it's difficult." But he added that he always has believed it's wise for nations to engage with and reach out to each other.

"That doesn't mean you are prepared to negotiate; it may never get to that point," he said. "But I think it's far preferable to war."

Hagel's first visit to Afghanistan as secretary has been eventful. Yesterday, his first full day here, he attended a briefing within earshot of a deadly blast near the defense ministry that killed nine Afghan civilians and injured at least 14 others. Those in attendance reported they could hear the explosion clearly, though they didn't immediately know the source.

Today, a scheduled Karzai-Hagel news conference was called off, and Hagel's planned visits to the Defense and Interior ministers at their respective headquarters were shifted to an ISAF installation.

U.S. officials said security considerations led to moving the ministerial meetings to ISAF facilities and cancelling the news conference. A statement from the presidential palace said the media event was cancelled because of schedule pressures.

Hagel secretary appeared unfazed by those events. "When you spend 48 hours in Afghanistan or anywhere else that's too dangerous," he told reporters, "you recognize the complications that exist every day."

The solution to those complications may be imperfect, Hagel said, but "we should always be mindful of the higher purpose of what we're doing and why."

It's easy in a war zone to get focused on issues of the day, week or month, Hagel said. While the metrics of the moment are good guideposts, the secretary added, "we've got to keep in mind the larger context of where we've been, what we've accomplished and where we're going with the big issues."

The secretary offered three other observations about his trip, the first he has made to Afghanistan since 2008, when he was part of a congressional delegation along with then-U.S. Sen. Barack Obama. His current trip has let him see, Hagel said, that "a lot of things have gone right" in the interim.

"A lot has happened in this country, and a lot of it's been very good," he added.

His second takeaway, he said, was that much of that success can be attributed to the efforts of U.S. troops and diplomatic staffs, supporting dedicated generals and ambassadors.

"The quality of our people doesn't really ever change," he said. "The American serviceman and woman [and] our diplomats, ... especially in the war zones, what they have to deal with every day and the sacrifices they make -- it's pretty remarkable."

Third, he said, the transition in Afghanistan is a critically important time. As U.S. and coalition forces redefine their roles and Afghan forces assume greater responsibility, he said, there will be new challenges and new issues to face beyond the battlefield.

"It's a different time, a different dynamic, a different environment," he said. "I don't think any of these are challenges that we can't work our way through."

From 2008 to now, the secretary said, he has seen dramatic changes in Afghanistan and a renewed commitment from both NATO and Afghan leaders. Hagel said that -- coupled with his great faith in U.S. military leaders and diplomats in Afghanistan -- tells him "we're on the right path, and I think we will meet these transition dates."

Hagel met separately this afternoon with Afghan Defense Minister Bismullah Khan Mohammadi and Interior Minister Ghulam Mujtaba Patang. This morning, the secretary also visited the Kabul Military Training Center, where he heard briefings on noncommissioned officer battle staff training, the Afghan sergeants major academy, and female NCO training.

U.S. CYBER CAPABILITIES

Cyber Command.  Credit:  U.S. Navy.

FROM:  U.S. DEPARTMENT OF DEFENSE
Pacom Promotes Regional Cyber Capabilities, Defenses
By Donna Miles
American Forces Press Service

WASHINGTON, March 11, 2013 - Two years ago, U.S. Pacific Command set out on a big experiment during its Terminal Fury exercise, subjecting participants for the first time to simulated cyber intrusions and network access denials, among other unexpected curve balls the exercise planners threw their way.

Pacom's cyber cell, serving as a testbed for the newly established U.S. Cyber Command, grappled with scenarios that shot holes through their cyber defenses, compromising their command-and-control systems and, by extension, their ability to control their forces.

The exercise underscored what already had become abundantly clear throughout Pacom and the entire Defense Department: the cyber domain is the new military "high ground" -- an advantage to those to use it effectively, and the downfall of those who don't.

So in officially standing up its Joint Cyber Center last year at the direction of then-Defense Secretary Leon E. Panetta, Pacom officials set out to capitalize on cyber capabilities and make them integral to the entire command structure.

"The intent is to be a fusion center to integrate cyber in all its versions in the entire cyber portfolio into the command's daily and warfighting battle rhythm," Air Force Brig. Gen. John "Mark" Hicks, Pacom's director of command, control, communications and cyber, told American Forces Press Service during a telephone interview from Camp Smith, Hawaii.

Pacom's vast area of responsibility -- more than half the globe -- makes it particularly reliant on its secure and unsecure networks to operate, Hicks explained.

"Nothing happens out here -- we don't have visibility on anything, we can't command and control anything, my boss, [Navy] Adm. [Samuel J.] Locklear [III] can't do his mission -- without assured and secure communications," Hicks said. "That means communications, not just with his own forces, but also between our allies and partners, because that is a very big part of our job here."

Collaborating closely with Cyber Command, the Defense Information Systems Agency and the services, the CyberPac team helps to ensure the command's networks provide a reliable command-and-control platform. In addition, they coordinate with other U.S. government agencies to promote the global debate on the future of cyberspace.

"We view cyber as a global common, much like sea, air and space," Hicks said. "So we are advocates for unfettered, free and secure use of the Internet and other telecommunications."

Unfortunately, not everyone sees it that way. Cyberthreats come in many forms, Hicks said. They range from hackers intent on stealing intellectual property to well-organized campaigns by state and nonstate actors to exploit national secrets, deny service or bring down vital military networks.

Recognizing that cyber threats have no respect for national borders, CyberPac increasingly is reaching out to regional allies and partners to encourage closer cooperation across the cyber domain.

"As I like to put it, communications interoperability is both an agent of and a necessary condition for improved relationships," Hicks said. "So by helping partner nations build their military communications and cyber capacity and capability, we are building partner capacity, improving our relationships with them in a non-threatening way. That potentially opens the door and allows greater access for other U.S. military activities."

So in addition to its other activities, CyberPac is leveraging Pacom's exercise program and hosting workshops and other bilateral and multilateral forums that promote closer military-to-military cyber engagement.

"There is a very palpable sense of concern with respect to cyber vulnerability in the Asia-Pacific," Hicks said, citing the frequency of software pirating and intellectual property theft through cyber intrusions. "This is a very needed capability in the Asia-Pacific."

Vietnam participated for the first time in the Cyber Endeavor workshop that ran concurrently with the Pacific Endeavor exercise. And despite widespread criticism of China's suspected role in cyber incursions, Pacom officials hope it will agree to join other regional countries at future cyber venues.

"We are continuing to reach out and hope to include the People's Republic of China in that list in the new future," Hicks said. "This is something about which everyone in the Asia-Pacific can agree. It provides a nonthreatening opportunity for us to work together toward a common goal, with the collateral benefit of building relationships."

THE THINGS THAT LIVE WHERE NO THINGS SHOULD

Hot spring in Yellowstone.  Credit:  Wikimeidia Commons.

FROM: NATIONAL SCIENCE FOUNDATION
How to Thrive in Battery Acid and Among Toxic Metals
In the movie Alien, the title character is an extraterrestrial creature that can survive brutal heat and resist the effects of toxins.

In real life, organisms with similar traits exist, such as the "extremophile" red alga Galdieria sulphuraria.

In hot springs in Yellowstone National Park, Galdieria uses energy from the sun to produce sugars through photosynthesis.

In the darkness of old mineshafts in drainage as caustic as battery acid, it feeds on bacteria and survives high concentrations of arsenic and heavy metals.

How has a one-celled alga acquired such flexibility and resilience?

To answer this question, an international research team led by Gerald Schoenknecht of Oklahoma State University and Andreas Weber and Martin Lercher of Heinrich-Heine-Universitat (Heinrich-Heine University) in Dusseldorf, Germany, decoded genetic information in Galdieria.

They are three of 18 co-authors of a paper on the findings published in this week's issue of the journal Science.

The scientists made an unexpected discovery: Galdieria's genome shows clear signs of borrowing genes from its neighbors.

Many genes that contribute to Galdieria's adaptations were not inherited from its ancestor red algae, but were acquired from bacteria or archaebacteria.

This "horizontal gene transfer" is typical for the evolution of bacteria, researchers say.

However, Galdieria is the first known organism with a nucleus (called a eukaryote) that has adapted to extreme environments based on horizontal gene transfer.

"The age of comparative genome sequencing began only slightly more than a decade ago, and revealed a new mechanism of evolution--horizontal gene transfer--that would not have been discovered any other way," says Matt Kane, program director in the National Science Foundation's (NSF) Division of Environmental Biology, which funded the research.

"This finding extends our understanding of the role that this mechanism plays in evolution to eukaryotic microorganisms."

Galdieria's heat tolerance seems to come from genes that exist in hundreds of copies in its genome, all descending from a single gene the alga copied millions of years ago from an archaebacterium.

"The results give us new insights into evolution," Schoenknecht says. "Before this, there was not much indication that eukaryotes acquire genes from bacteria."

The alga owes its ability to survive the toxic effects of such elements as mercury and arsenic to transport proteins and enzymes that originated in genes it swiped from bacteria.

It also copied genes offering tolerance to high salt concentrations, and an ability to make use of a wide variety of food sources. The genes were copied from bacteria that live in the same extreme environment as Galdieria.

"Why reinvent the wheel if you can copy it from your neighbor?" asks Lercher.

"It's usually assumed that organisms with a nucleus cannot copy genes from different species--that's why eukaryotes depend on sex to recombine their genomes.

"How has Galdieria managed to overcome this limitation? It's an exciting question."

What Galdieria did is "a dream come true for biotechnology," says Weber.

"Galdieria has acquired genes with interesting properties from different organisms, integrated them into a functional network and developed unique properties and adaptations."

In the future, genetic engineering may allow other algae to make use of the proteins that offer stress tolerance to Galdieria.

Such a development would be relevant to biofuel production, says Schoenknecht, as oil-producing algae don't yet have the ability to withstand the same extreme conditions as Galdieria.

-NSF-

2 JAPANESE FREIGHT FORWARDING COMPANIES AGREE TO PLEAD GUILTY

FROM: U.S. DEPARTMENT OF JUSTICE
Companies Agree to Pay a Total of $18.9 Million in Criminal Fines

WASHINGTON — Two Japanese air freight forwarding companies have agreed to plead guilty and to pay criminal fines totaling $18.9 million for their roles in a conspiracy to fix certain fees in connection with the provision of air freight forwarding services for air cargo shipments from Japan to the United States, the Department of Justice announced today. "K" Line Logistics Ltd. has agreed to pay a $3,507,246 criminal fine and Yusen Logistics Co. Ltd. has agreed to pay a $15,428,207 criminal fine.

Including today's charges, as a result of this investigation, 16 companies have either pleaded guilty or agreed to plead guilty and have agreed to pay criminal fines totaling more than $120 million.

"Consumers were forced to pay higher prices on the goods they buy every day as a result of the noncompetitive and collusive service fees charged by these companies," said Bill Baer, Assistant Attorney General in charge of the Department of Justice's Antitrust Division. "Prosecuting these kinds of global, price-fixing conspiracies continues to be a top priority of the Antitrust Division."

Freight forwarders manage the domestic and international delivery of cargo for customers by receiving, packaging, preparing and warehousing cargo freight, arranging for cargo shipment through transportation providers such as air carriers, preparing shipment documentation and providing related ancillary services.

According to charges filed separately today in the U.S. District Court for the District of Columbia, "K" Line Logistics and Yusen Logistics engaged in a conspiracy to fix and to impose certain freight forwarding service fees, including fuel surcharges and various security fees, charged to customers for services provided in connection with air freight forwarding shipments of cargo shipped by air from Japan to the United States from about September 2002 until at least November 2007.

According to the charges, the companies carried out the conspiracy by, among other things, agreeing during meetings and discussions to coordinate and impose certain freight forwarding service fees and charges on customers purchasing freight forwarding services for cargo shipped by air from Japan to the United States. The department said the companies levied freight forwarding service fees in accordance with the agreements reached and engaged in meetings and discussions for the purpose of monitoring and enforcing adherence to the agreed-upon freight forwarding service fees.

Each company is charged with price fixing in violation of the Sherman Act, which carries a maximum $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today's charges are the result of a joint investigation being conducted by the Antitrust Division's National Criminal Enforcement Section, the FBI's Washington Field Office and the Department of Commerce's

JUSTICE SETTLES LAWSUIT WITH DENTAL SCHOOL OVER EXCLUSION OF HEPATITIS B INFECTED APPLICANTS

FROM: U.S. JUSTICE DEPARTMENT

Tuesday, March 5, 2013
Justice Department Settles with the University of Medicine and Dentistry of New Jersey Over Discrimination Against People with Hepatitis B

The Justice Department announced today that it has reached a settlement with the University of Medicine and Dentistry of New Jersey School (UMDNJ) under the Americans with Disabilities Act (ADA). The settlement resolves complaints that the UMDNJ School of Medicine and the UMDNJ School of Osteopathic Medicine unlawfully excluded applicants because they have hepatitis B. This is the first ADA settlement ever reached by the Justice Department on behalf of people with hepatitis B.

In 2011, the two applicants in this matter applied and were accepted to the UMDNJ School of Osteopathic Medicine, and one of them was also accepted to the UMDNJ School of Medicine. The schools later revoked the acceptances when the schools learned that the applicants have hepatitis B. The Justice Department determined that the schools had no lawful basis for excluding the applicants, especially because students at the schools are not even required to perform invasive surgical procedures, and that the exclusion of the applicants contradicts the Centers for Disease Control and Prevention’s (CDC) updated guidance on this issue.

According to the CDC’s July 2012 "Updated Recommendations for Preventing Transmission and Medical Management of Hepatitis B Virus (HBV) – Infected Health Care Workers and Students," no transmission of Hepatitis B has been reported in the United States from primary care providers, clinicians, medical or dental students, residents, nurses, or other health care providers to patients since 1991.

"Excluding people with disabilities from higher education based on unfounded fears or incorrect scientific information is unacceptable," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "We applaud the UMDNJ for working cooperatively with the Justice Department to resolve these matters in a fair manner."

"It is especially important that a public institution of higher learning – especially one with a mission to prepare future generations of medical professionals – strictly follow the laws Congress has enacted to protect from discrimination those people who have health issues," said U.S. Attorney for the District of New Jersey Paul Fishman. "The remedies to which the school has agreed should ensure this does not happen again."

Under the settlement agreement, the UMDNJ must adopt a disability rights policy that is based on the CDC’s Hepatitis B recommendations, permit the applicants to enroll in the schools, provide ADA training to their employees and provide the applicants a total of $75,000 in compensation and tuition credits.

Both of the applicants in this matter come from the Asian American Pacific Islander community. The CDC reports that Asian American Pacific Islanders (AAPIs) make up less than 5 percent of the total population in the United States, but account for more than 50 percent of Americans living with chronic Hepatitis B. Nearly 70 percent of AAPIs living in the United States were born, or have parents who were born, in countries where hepatitis B is common. Most AAPIs with Hepatitis B contracted Hepatitis B during childbirth . The Civil Rights Division is committed to ensuring that this community is not subjected to discrimination because of disability.

Title II of the ADA prohibits state and local government entities, like the UMDNJ, from discriminating against individuals with disabilities in programs, services, and activities. State and local governments must also make reasonable modifications in policies, practices, and procedures when the modifications are necessary to avoid discrimination on the basis of disability, unless those modifications would result in a fundamental alteration.

LABELING MEDICAL PRODUCTS NOT MADE WITH RUBBER LATEX

Credit:  U.S. Army.

FROM: U.S. FOOD AND DRUG ADMINISTRATION
FDA issues draft guidance for manufacturers to accurately label medical products that are not made with natural rubber latex


The U.S. Food and Drug Administration today issued draft recommendations to medical product manufacturers for providing consumers with accurate information about products that are not made with natural rubber latex (NRL).

NRL is a milky fluid found in rubber trees and other plant sources. Prolonged or repeated exposure to NRL can result in sensitivity or allergy. Mild reactions may include skin redness, rash, hives, or itching. More severe reactions may include respiratory symptoms such as difficulty breathing, coughing spells and wheezing. Rarely, anaphylactic shock may occur.

The FDA is encouraging manufacturers of FDA-regulated medical products to stop using statements on labels such as "latex free" or "does not contain natural rubber latex" because these statements are not scientifically accurate. Instead, the FDA recommends manufacturers use the labeling statement – "not made with natural rubber latex" – to indicate when NRL was not used as a material in the medical product or product container.

"Consumers rely on and expect accurate labeling and product information, especially when they are concerned about allergic reactions," said William Maisel, M.D., M.P.H., deputy director for science in the FDA’s Center for Devices and Radiological Health. "Our recommendations regarding natural rubber latex provide consistent, scientifically accurate language for health care providers, patients and consumers who want to avoid this material due to possible sensitivity or allergy."

The terms "latex free" and "does not contain natural rubber latex" suggest that the medical product is completely without NRL. However, even when medical products are not made with NRL, there is a chance that products can become contaminated with NRL allergens during manufacturing or packaging processes. There is no test to show that a medical product is completely free of NRL allergens. Additionally, it is not necessary for a medical product to be completely without NRL allergen proteins to be considered safe for use by some individuals with NRL allergies.

Also, phrases such as "latex free" that are not specific about the kind of latex being referred to can cause confusion. Latexes may be natural or synthetic. Synthetic latex, such as nitrile and polyvinyl chloride, does not contain the proteins responsible for NRL allergy.

People most at risk for NRL sensitization include those who frequently use NRL gloves such as physicians, nurses, dentists, medical technicians, hairdressers, housekeepers, and food service workers. Employees in facilities that manufacture products containing NRL are also at risk.

Consumers concerned about NRL allergies should check the medical product label, if readily available, or ask their health care provider if the product of interest contains NRL.

Today’s draft recommendations would apply only to FDA-regulated medical products, such as drugs, medical devices, biologics and veterinary products. The law does not require medical product manufacturers to state on the product labeling when NRL has not been used in the manufacture of the product or product packaging. However, medical device manufacturers are required to include a caution statement on the labeling of devices that are made with NRL.

MARINE BIOLOGIST MANAGES CIVIL WORKS PROJECTS



Army Corps of Engineers project manager Sharon Tirpak manages federally-funded civil works projects for the Galveston District in Texas through feasibility studies and construction. Tirpak employs her leadership skills as she guides multidisciplinary teams through complex projects that energize the economy and reduce risks from disasters. U.S. Army Corps of Engineers photo

FROM: U.S. DEPARTMENT OF DEFENSE
Face of Defense: Marine Biologist Oversees Civil Works Projects
By Isodro Reyna
U.S. Army Corps of Engineers, Galveston District

WASHINGTON, March 1, 2013 - Managing federally funded civil works projects through feasibility studies and construction requires leadership -- a skill U.S. Army Corps of Engineers Galveston District project manager Sharon Tirpak hones while guiding multidisciplinary teams through complex projects that energize the economy and reduce risks from disasters.

A marine biologist by trade, Tirpak left the world of research to put her people and leaderships skills to use directing Corps projects such as the Freeport Harbor and Texas City Channel deep-draft navigation projects, Sabine Pass to Galveston Bay Storm Damage Reduction Study, and Clear Creek Flood Risk Management Project.

"I lead teams of engineers, biologists, economists and project sponsors through civil works projects that contribute to the economic well-being of the nation," Tirpak said. "It is a leadership role with many responsibilities and challenges and requires knowledge of Corps processes, with the biggest challenge keeping the projects on schedule and within budget."

A 19-year veteran of the Corps, Tirpak has served in a variety of roles within the district including lead planner and regulatory project manager.

"I actually chose marine biology as my field of study while in college and worked as a fishery biologist with the National Marine Fisheries Service for 14 years," she said. "However, arriving at the Corps, I realized this was one of the best professional moves I could have made. I am much better at working and interacting with people than I was doing research, and I'm thankful to my fellow co-workers who taught me all about dredging and engineering."

According to Tirpak, being a project manager is never dull because there is always something that has to be taken care of.

"I like 'putting out the fires,' as it makes each day go by fast," Tirpak said. "I also like the interaction with the project delivery teams and sponsors and the learning aspect.

"Working on my projects always affords me the opportunity to learn something new," she added.

One of Tirpak's most fascinating projects to date was the deepening of the Texas City Channel, which included the removal of Civil War-era artifacts from the busy waterway.

"Working with the archeologists that helped bring up the remains of the USS Westfield from the Texas City Ship Channel is probably the most interesting assignment I've worked on," she said. "The Galveston District orchestrated an archaeological recovery of artifacts from the Civil War-era shipwreck, which included the removal of 10,000-pound Dahlgren cannon in 2009."

The recovery was part of a larger $71 million project completed in 2011 to deepen the Texas City Ship Channel from 40 feet to 45 feet to allow larger vessels to navigate the channel to transport commodities to various industries.

"By completing some of the long-term studies and positioning those projects for potential authorization and funding, or by completing a construction project such as the Texas City Channel Project, I believe my work with the Galveston District is leaving a lasting impact on the nation," Tirpak said. "I'm proud to say I helped make that happen."

Tirpak received numerous awards, including the Department of Commerce Bronze Medal Award for Superior Federal Service, the USACE Galveston Regulatory Customer Service Award, Regulator of the Year, several Department of the Army Achievement Medals and Commander's Awards for Civilian Service for her work on various projects.

A 1980 graduate of the University of New England and a 2005 graduate of the Army Management Staff College, Tirpak also is a certified scuba diver who enjoys seeing the Pittsburgh Steelers win. She also helps with her son's scouting and band activities and is involved in her local community.

RESEARCH SHOWS EARTH WARMER NOW THAN IN MOST OF LAST 11,000 YEARS

Along Greenland's western coast, a small field of glaciers empties into Baffin Bay, 80% of which is covered by ice in winter. Calving icebergs may be seen in the lower right of this high-resolution satellite photo. Baffin Bay is only 1,000 m (3,300 ft) deep along the coast. Between May and July a polynya, an area of navigable open water surrounded by sea ice, forms at the northern part of the bay. This polynya, the largest in the Canadian Arctic, is stable in location and has existed for nearly 9,000 years. Image courtesy of USGS.

 
FROM: NATIONAL SCIENCE FOUNDATION
Earth Is Warmer Today Than During 70 to 80 Percent of the Past 11,300 Years

With data from 73 ice and sediment core monitoring sites around the world, scientists have reconstructed Earth's temperature history back to the end of the last Ice Age.

The analysis reveals that the planet today is warmer than it's been during 70 to 80 percent of the last 11,300 years.

Results of the study, by researchers at Oregon State University (OSU) and Harvard University, are published this week in a paper in the journal Science.

Lead paper author Shaun Marcott of OSU says that previous research on past global temperature change has largely focused on the last 2,000 years.

Extending the reconstruction of global temperatures back to the end of the last Ice Age puts today's climate into a larger context.

"We already knew that on a global scale, Earth is warmer today than it was over much of the past 2,000 years," Marcott says. "Now we know that it is warmer than most of the past 11,300 years."

"The last century stands out as the anomaly in this record of global temperature since the end of the last ice age," says Candace Major, program director in the National Science Foundation's (NSF) Division of Ocean Sciences. The research was funded by the Paleoclimate Program in NSF’s Division of Atmospheric and Geospace Sciences.

"This research shows that we've experienced almost the same range of temperature change since the beginning of the industrial revolution," says Major, "as over the previous 11,000 years of Earth history--but this change happened a lot more quickly."

Of concern are projections of global temperature for the year 2100, when climate models evaluated by the Intergovernmental Panel on Climate Change show that temperatures will exceed the warmest temperatures during the 11,300-year period known as the Holocene under all plausible greenhouse gas emission scenarios.

Peter Clark, an OSU paleoclimatologist and co-author of the Science paper, says that many previous temperature reconstructions were regional and not placed in a global context.

"When you just look at one part of the world, temperature history can be affected by regional climate processes like El Niño or monsoon variations," says Clark.

"But when you combine data from sites around the world, you can average out those regional anomalies and get a clear sense of the Earth's global temperature history."

What that history shows, the researchers say, is that during the last 5,000 years, the Earth on average cooled about 1.3 degrees Fahrenheit--until the last 100 years, when it warmed about 1.3 degrees F.

The largest changes were in the Northern Hemisphere, where there are more land masses and larger human populations than in the Southern Hemisphere.

Climate models project that global temperature will rise another 2.0 to 11.5 degrees F by the end of this century, largely dependent on the magnitude of carbon emissions.

"What is most troubling," Clark says, "is that this warming will be significantly greater than at any time during the past 11,300 years."

Marcott says that one of the natural factors affecting global temperatures during the last 11,300 years is a gradual change in the distribution of solar insolation linked with Earth's position relative to the sun.

"During the warmest period of the Holocene, the Earth was positioned such that Northern Hemisphere summers warmed more," Marcott says.

"As the Earth's orientation changed, Northern Hemisphere summers became cooler, and we should now be near the bottom of this long-term cooling trend--but obviously, we're not."

The research team, which included Jeremy Shakun of Harvard and Alan Mix of OSU, primarily used fossils from ocean sediment cores and terrestrial archives to reconstruct the temperature history.

The chemical and physical characteristics of the fossils--including the species as well as their chemical composition and isotopic ratios--provide reliable proxy records for past temperatures by calibrating them to modern temperature records.

Analyses of data from the 73 sites allow a global picture of the Earth's history and provide a new context for climate change analysis.

"The Earth's climate is complex and responds to multiple forcings, including carbon dioxide and solar insolation," Marcott says.

"Both changed very slowly over the past 11,000 years. But in the last 100 years, the increase in carbon dioxide through increased emissions from human activities has been significant.

"It's the only variable that can best explain the rapid increase in global temperatures."

-NSF-

AIR FORCE AIRMAN AIDS CIVILIANS IN TRAFFIC ACCIDENT

FROM: U.S. AIR FORCE
Airman saves life, earns city's recognition
by Eric M. White
910th Airlift Wing Public Affairs

3/8/2013 - YOUNGSTOWN, Ohio (AFNS) -- In the early morning, you're driving through the city when you see two men pushing a stalled vehicle. You stop to see if they need help, and another vehicle strikes the two men against their car, fracturing one man's leg and severing the other's below the knee. The victim with the severed leg is bleeding profusely and showing signs of shock. What do you do?

The morning of Feb. 5, 2013, Senior Airman Steve Cresanto, an air transportation journeyman with Youngstown Air Reserve Station's 76th Aerial Port Squadron, was driving through the city when this scenario became reality, forcing him to make quick decisions.

Jawkwan Rudolph, one of the victims, had the most serious injuries.

"His leg was amputated," Cresanto said. "You want to stop the hemorrhaging, so I applied a tourniquet."

"I didn't have a tourniquet there, so I made one. I made the tourniquet out of the individual's belt and a windshield wiper from the car that struck them," Cresanto said.

Cresanto then fashioned a splint for the second victim's fractured leg using an ice scraper and another belt.

When first responders arrived at the scene of the accident, they asked Cresanto where he learned to do what he did, stating that his actions likely saved Rudolph's life. Cresanto credited the self-aid and buddy care training he receives annually as an Air Force reservist.

"We do it every single year, do the training, and I never thought I would actually use it in the field. It turns out I did, and I am glad I had the training," Cresanto said.

SABC training includes basic life support and limb-saving techniques to help injured persons survive until medical help arrives.

Charles Sammarone, the Youngstown city mayor, presented Cresanto with an award on behalf of the city at a city council meeting March 6.

Detective/Sergeant Patricia Garcar, one of the first responders to the accident, recommended Cresanto for the award and presented at the council meeting her account of what unfolded the morning of the accident.

"I was just so impressed with what he did," Garcar said. "He did not have to stop and didn't have to offer the assistance that he did, and it just amazed me."

Cresanto is one of more than 1,600 Citizen Airmen stationed at Youngstown ARS.

"This is just another amazing example of the Airmen that we have here and the tie that we have to the community," said Col. James D. Dignan, the 910th Airlift Wing commander. "There's a sense of family here at the 910th Airlift Wing."

　

SAGE III AND THE MEASUREMENT OF EARTH'S AEROSOLS

FROM: NASA
Staring at the Sun with SAGE III
ASA engineer Chip Holloway waits for the sun to align with the Stratospheric Aerosol and Gas Experiment (SAGE III) during a clean room "sun-look" test on March 4, 2013, at NASA's Langley Research Center in Hampton, Va. SAGE III passed this test, successfully locking onto the sun and completing a series of measurements.

Scientists are checking SAGE III in preparation for its trip to the International Space Station, set for late 2014 or early 2015. Like its predecessors SAGE I and II, which collected aerosol data from 1979 to 2005, SAGE III will measure aerosols, ozone, water vapor and other gases to help scientists better understand Earth's atmosphere. Photo Credit: NASA Langley/Sean Smith

U.S. LABOR DEPARTMENT STRENGTHENS ABILITY TO INVESTIGATE PAY DISCRIMINATION

U.S. DEPARTMENT OF LABOR DEPARTMENT

US Labor Department rescinds restrictions on investigating pay discrimination
WASHINGTON — The U.S. Department of Labor today announced that its Office of Federal Contract Compliance Programs is rescinding two enforcement guidance documents on pay discrimination originally issued in 2006, commonly known as the "Compensation Standards" and "Voluntary Guidelines."This action, to be effective Feb. 28, is intended to protect workers and strengthen OFCCP's ability to identify and remedy different forms of pay discrimination. It will enable OFCCP to conduct investigations of contractor pay practices consistent with Title VII of the Civil Rights Act of 1964.

"A strong American middle class hinges on ensuring equal pay," said acting Secretary of Labor Seth D. Harris. "As President Obama has made clear, everyone – including the wives, mothers, sisters and daughters among us – must be paid fairly and without discrimination. These new standards will strengthen our ability to ensure that women and men are fully protected under our nation's laws."

The notice of final rescission withdrawing these two documents also includes new guidance for employers and other interested stakeholders setting forth the procedures, analysis and protocols OFCCP will utilize going forward when conducting compensation discrimination investigations. OFCCP will supplement the guidance with frequently asked questions, technical assistance, webinars, and other resources and materials to ensure that contractors have ample information about how to comply with the law.

"Today, we are lifting arbitrary barriers that have prevented our investigators from finding and combating illegal pay discrimination," said OFCCP Director Patricia A. Shiu, a member of the President's National Equal Pay Task Force. "At the same time, we are providing clear guidance for contractors to facilitate their success when it comes to providing equal opportunity to all of their workers."

The new approach described in the notice will enable OFCCP investigators to better examine practices and available evidence to uncover discrimination and evaluate contractor compliance with Executive Order 11246. That longstanding executive order requires federal contractors to comply with antidiscrimination obligations, including prohibitions against pay discrimination. Prior to this action, OFCCP was constrained by a methodology adopted in 2006 that made it harder for the agency to exercise its full legal authority because it required use of the same narrow formula to review all contractor pay practices, regardless of the industry, types of jobs, issues presented or available data. Now, OFCCP will be using its legal authority to hold contractors to the same legal standards – enshrined in Title VII, the landmark civil rights law – that courts and other federal agencies already apply to these businesses to prohibit job discrimination.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. As amended, these three laws require those who do business with the federal government, both contractors and subcontractors, to follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran.

SUICIDE BOMBER ATTACK NEAR HAGEL, ISAF MEETING

FROM: U.S. DEPARTMENT OF DEFENSE
Suicide Bomber Attacks Nearby During Hagel ISAF Meeting
By Karen Parrish
American Forces Press Service

WASHINGTON, March 9, 2013 - Defense Secretary Chuck Hagel was in a briefing at a NATO International Security Assistance Force facility here today when a suicide bomber detonated a car bomb outside the Afghan Defense Ministry just before 9 a.m. local time.

The attack killed nine and injured 14, according to first reports from Afghan officials. The initial blast was followed by small-arms fire. ISAF officials said no coalition troops were directly involved.

Later in the day during a visit to Jalalabad in eastern Afghanistan, Hagel told reporters traveling with him that he wasn't sure what the blast was when he first heard it.

"I was in a briefing – but we're in a war zone," the secretary said. "I've been in a war. So you shouldn't be surprised when a bomb goes off."

Hagel, a Vietnam War veteran who earned two Purple Hearts in combat during that conflict, said such "spectacular" attacks make no difference to U.S. or ISAF strategy in Afghanistan.

"We're going to continue to work with the Afghans and coalition partners to fight that war, and to assure that the Afghan people have every ability and right to develop their own country in their own way, in a democracy," he said.

The secretary today also visited U.S. conventional and special operations forces leaders and spoke to U.S. troops.

U.S. ROLE IN SOUTH KOREA REAFFIRMED

FROM: U.S. DEPARTMENT OF DEFENSE
U.S. Commander Reaffirms U.S. Commitment to South Korea
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

WASHINGTON, March 7, 2013 - The top U.S. and United Nations commander in Korea today reaffirmed the U.S. commitment to South Korea's defense and urged North Korea to cease provocative actions.

Army Gen. James D. Thurman, commander of U.S. Forces Korea, United Nations Command and Combined Forces Command, addressed a recent North Korean threat to nullify the 1953 armistice that ended open warfare on the Korean Peninsula.

"For 60 years, the armistice agreement has ensured peace and stability on the Korean Peninsula," he said. "It concerns me when any signatory to a mutual agreement makes a public statement contrary to that agreement.

"As the UNC commander, I am charged to fully enforce the conditions of the armistice," Thurman continued. "The success of the armistice has enabled the Republic of Korea to become a vibrant democracy, and we remain ready to defend the Republic of Korea."

The United States calls on North Korea to refrain from additional provocative actions that would violate its international obligations and run counter to its commitments, the general added.

The latest provocations come on the heels of the U.N. Security Council agreeing to new sanctions after a third North Korean nuclear test last month.

Threats of provocations will only further isolate North Korea and undermine international efforts to ensure peace and stability in Northeast Asia, said Army Lt. Col. Cathy Wilkinson, a Pentagon spokeswoman. "The United States is firmly committed to the defense of the Republic of Korea and to the maintenance of regional peace and stability," she added.

Wilkinson also noted that annual defense-oriented training exercises such as "Key Resolve" and "Foal Eagle" are designed to increase alliance readiness to defend South Korea, protect the region and maintain stability on the Korean Peninsula.

U.S. JUSTICE DEPARTMENT GENERATED ALMOST $2 BILLION FROM CONSUMER FRAUD CASES

FROM: U.S. DEPARTMENT OF JUSTICE
Friday, March 8, 2013
Justice Department Secures Nearly $2 Billion in Consumer Protection Cases in 2012
Through Consumer Protection Branch, Civil Division Successfully Combatted Consumer Fraud Schemes

The Justice Department’s Consumer Protection Branch secured nearly $2 billion in criminal fines, forfeiture, restitution, and civil disgorgement in 2012, Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division, announced today at the Consumer Protection Working Group’s Second Annual Consumer Protection Summit. Since 2009, the consumer protection efforts of the Civil Division, working with U.S. Attorneys’ Offices around the country, have led to recoveries of more than $5.89 billion, over 140 criminal convictions, and total prison sentences exceeding 327 years.

"This summit and our other outreach efforts are essential to the fight against consumer fraud. But our real strength lies in the cases brought by the attorneys in the Consumer Protection Branch every day. The results the branch achieved in 2012 are outstanding, and reflect the determination of this Department of Justice to combatting consumer fraud," said Principal Deputy Assistant Attorney General Delery, who serves as a co-chair of the Consumer Protection Working Group of the President’s Financial Fraud Enforcement Task Force. "The Consumer Protection Branch’s extraordinary work enforcing federal consumer protection laws has reached new levels, and is evidence that the department has made protecting consumers a top priority."

The summit brings together over two dozen state and federal agencies to highlight some of the most significant issues facing consumers today: consumer debt, nutritional supplements, money and imposter scams and tax-related fraud. The summit exposes some of the most egregious fraud schemes, provides information on how consumers can protect themselves, and shares what the Consumer Protection Working Group is doing to combat fraud in these areas.

Recently reorganized, the Consumer Protection Branch deploys powerful enforcement tools in creative ways to protect the most vulnerable consumers from myriad forms of fraud and abuse, including financial fraud, new forms of telemarketing fraud, and immigration services fraud.

In 2012, for example, the branch prosecuted three Missouri individuals for their roles in a scheme to defraud consumers seeking immigration-related services. These individuals worked for a company that defrauded legal immigrants who were trying to abide by the rules. The firm falsely told consumers that it employed paralegals who would help customers correctly fill out immigration forms, that it handled excess call volume for U.S. Citizenship and Immigration Services (USCIS), and that fees paid to the firm included government processing fees. All three defendants in the case pled guilty to conspiring to defraud consumers.

Collaborating closely with state Attorneys General and other federal agencies, t he Consumer Protection Branch has been instrumental in the department’s effort to hold accountable those who, in violating the law, contributed toward the 2008 financial crisis. Earlier this year, the department filed a civil lawsuit against the credit rating agency Standard & Poor’s alleging that S&P engaged in a scheme to defraud investors in structured financial products known as Residential Mortgage-Backed Securities (RMBS) and Collateralized Debt Obligations (CDOs). The lawsuit, brought under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), alleges that investors, many of them federally insured financial institutions, lost billions of dollars on CDOs for which S&P issued inflated ratings that misrepresented the securities’ true credit risks. The complaint also alleges that S&P falsely represented that its ratings were objective, independent, and uninfluenced by S&P’s relationships with investment banks when, in reality, S&P’s desire for increased revenue and market share led it to favor the interests of these banks over investors. The Consumer Protection Branch played a key role in investigating and bringing the case, along with the Federal Programs Branch of the Civil Division and the U.S. Attorney’s Office for the Central District of California.

The Consumer Protection Branch has also responded to the financial crisis by aggressively pursuing various forms of financial fraud, including foreclosure rescue schemes targeting distressed homeowners. For instance, in 2012, the branch successfully prosecuted four individuals in connection with a firm that claimed to assist homeowners at risk of foreclosure. The defendants represented that homeowners’ properties would be sold to investors, but that the present homeowners could stay in their homes. The defendants designed sham sales to straw purchasers, created false loan applications and documents, pocketed the equity drawn out of the sham sales, and then allowed the loans to go into foreclosure. Victims lost their equity, and most were forced to move out of their homes. The defendants were sentenced to prison for terms of up to five and a half years.

In addition to playing a prominent role in the Consumer Protection Working Group, and organizing the annual Consumer Protection Summit the Consumer Protection Branch has employed new techniques to enhance its outreach and prevention efforts. For instance, the Branch has conducted webinars to educate financial institutions on the dangers of working with payment processors who may facilitate fraudulent schemes. It has also engaged consumer advocacy groups in new ways, and sought to create new partnerships with state attorneys general and military legal assistance providers.

While continuing to innovate, the branch has also sharpened its focus in traditional areas of enforcement, such as ensuring the safety of pharmaceutical products, medical devices, food, and dietary supplements. Health care fraud cases were the sources of the Consumer Protection Branch’s largest recoveries in 2012. The branch brought enforcement actions and criminal prosecutions in response to a number of violations, including the misbranding of pharmaceuticals, deficient manufacturing processes, the sale of adulterated and unsafe products, and the resale of prescription drugs that had been diverted from lawful channels of distribution. The branch recovered more than $1.9 billion in criminal fines and forfeiture and secured 16 criminal convictions in connection with these cases.

"Whether consumers are targeted by scammers looking to cheat them or manufacturers of food or pharmaceuticals that put profit ahead of consumer safety, the department will bring to bear its expertise and all available tools to root out conduct that harms consumers," said Principal Deputy Assistant Attorney General Delery. "The success of the Consumer Protection Branch demonstrates our unwavering commitment to the protecting the health and safety of Americans."

Another key component of the Consumer Protection Branch’s work is defense of the decisions of government agencies charged with protecting consumers. In 2012, the branch successfully defended cases involving, for example, the Food and Drug Administration’s (FDA) approval of various generic drugs to increase consumers’ market choices and the Federal Trade Commission’s (FTC) interpretation of a provision of the Fair Credit Reporting Act (FCRA) that requires lenders to disclose certain information to consumers. The branch was also instrumental in securing court orders requiring major tobacco companies to place statements on their websites, on cigarette packages, and at retail stores correcting past false statements that they had been making about the safety of their products.

Principal Deputy Assistant Attorney General Delery expressed his gratitude and appreciation for the dedicated public servants who work tirelessly to protect consumers. These individuals include attorneys, investigators, paralegals and other personnel throughout the Civil Division, the U.S. Attorneys’ Offices, the Department of Health and Human Services, the FDA, the FTC, the Consumer Product Safety Commission, the Postal Inspection Service and other federal and state agencies.

ATTORNEY CHARGED WITH CHURNING OUT BASELESS LEGAL OPINION LETTERS ON PENNY STOCKS THROUGH HIS WEBSITE

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., Mar. 7, 2013 — The Securities and Exchange Commission today charged a California-based lawyer who has been fraudulently churning out baseless legal opinion letters for penny stocks through his website without researching and evaluating the individual stock offerings.

Legal opinion letters are issued to transfer agents on behalf of holders of restricted stock seeking to sell the stock freely in the public markets. Transfer agents typically require a lawyer’s opinion explaining the legal basis for lifting the restriction on the stock and allowing it to be freely traded.

The SEC alleges that Brian Reiss of Huntington Beach, Calif., set up 144lettera.com to promote his legal opinion letter business and advertise "volume discount" rates while noting "penny stocks not a problem." Reiss steered potential customers to his website by making bids on search terms through Google’s AdWords, and then relied on a computer-generated template to draft his opinion letters within minutes absent any true analysis of the facts behind each stock offering. The letters from Reiss ultimately made false and misleading statements and facilitated the sale of securities in violation of the registration provisions of the federal securities laws.

"Reiss flouted his responsibilities as a gatekeeper in the issuance of stock, and churned out opinion letters to make a quick buck," said Andrew M. Calamari, Director of the SEC’s New York Regional Office. "Attorneys who act as gatekeepers in our markets have a solemn responsibility to ensure that they provide accurate information to the marketplace."

Sanjay Wadhwa, Senior Associate Director of the SEC’s New York Regional Office, added, "Reiss falsely claimed he had conducted investigations into various stocks and determined them to be exempt from registration under the securities laws. He misrepresented critical facts, and our enforcement action seeks to bring Reiss’s opinion mill to an end."

According to the SEC’s complaint filed in federal court in Manhattan, Reiss began issuing the fraudulent legal opinion letters in 2008. He advertised a $285 rate for each letter and a "volume discount" rate of $195 per letter. Reiss routinely made inaccurate statements bearing on whether the restriction should be lifted, and failed to conduct even a token inquiry into the underlying facts. He knew or recklessly disregarded the fact that shareholders seeking his opinion letters intended to sell their stock in the public markets, and that transfer agents would rely on his opinion letters to issue stock certificates without restrictive legends.

According to the SEC’s complaint, the false and misleading statements that Reiss made in opinion letters induced transfer agents for several public companies to remove the restrictive legends from the stock certificates and permit the sale of free-trading shares to the public. Reiss provided the opinion letters to transfer agents who required assurances in the form of a legal opinion that the transactions qualified for an exemption from the registration requirements under the federal securities laws. With Reiss’s baseless assurances, the transfer agents issued stock certificates without restrictive legends and enabled the stock to be traded freely.

The SEC’s complaint charges Reiss with violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The SEC seeks disgorgement of ill-gotten gains with prejudgment interest and financial penalties. The SEC seeks to bar Reiss from participating in the offering of any penny stock pursuant to Section 20(g) of the Securities Act. The SEC also seeks permanent injunctions – including an injunction prohibiting Reiss from providing legal services in connection with an unregistered offer or sale of securities.

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

The SEC also 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 (FINRA).

THE HISTORICAL FIRST BATTLE OF IRON ARMORED SHIPS

 

FROM: U.S. NAVY

130219-N-ZZ999-505 WASHINGTON (Feb. 19, 2013) In this depiction of the Battle of Hampton Roads provided by Naval History and Heritage Command, USS Monitor and CSS Virginia fire on each other. Monitor was a revolutionary vessel, designed by John Ericson, changing the course of the United States Navy. The Brooklyn-built Monitor made nautical history after being designed and assembled in 118 days, and then commissioned Feb. 25, 1862. Fighting in the first battle between two ironclads in the Battle of Hampton Roads on Mar. 9, 1862, the engagement marked the first time iron-armored ships clashed in naval warfare and signaled the end of the era of wooden ships. Its battle between the CSS Virginia proved that the age of wooden ships and sail were at an end. Though the Monitor's confrontation with the CSS Virginia ended in a draw, the Monitor prevented the Virginia from gaining control of Hampton Roads and thus preserved the Federal blockade of the Norfolk area. The Virginia, built on the carcass of the U.S. Navy frigate USS Merrimack, was the Confederate answer to the Union's ironclad ships. Months later, 16 Sailors were lost when the Monitor sank on Dec. 31, 1862 in a storm off Cape Hatteras, N.C. Her wreck was discovered in 1974 and is now a National Marine Sanctuary. (U.S. Navy photo courtesy of Naval History and Heritage Command/Released)

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY

130308-N-MG658-612 ARLINGTON, Va. (March 8, 2013) Members of the U.S. Navy Ceremonial Guard escort the remains of two Sailors recovered from the ironclad USS Monitor during a military funeral at Arlington National Cemetery. Monitor sank off Cape Hatteras, N.C., in 1862. The Sailors are being interred with full military honors. (U.S. Navy photo by Mass Communication Specialist 2nd Class Todd Frantom/Released)

130306-N-BX824-046 PACIFIC OCEAN (March 6, 2013) A phalanx close-in weapons system (CIWS) is fired during a pre-action aim calibration test aboard the forward-deployed Arleigh Burke-class guided-missile destroyer USS Lassen (DDG 82). Lassen is part of Destroyer Squadron (DESRON) 15, forward deployed to Yokosuka, Japan, and is underway to conduct exercise Foal Eagle 2013 with the Republic of Korea in support of regional security and stability of the Asia-Pacific region. (U.S. Navy photos by Mass Communication Specialist 3rd Class Ricardo R. Guzman/Released)

U.S. CONGRATUALTES KENYANS ON PEACEFULL ELECTIONS

Right:  A view of the Kiambethu tea farm in Limuru. Credit: CIA World Factbook.

FROM: U.S. STATE DEPARTMENT
Results of Elections in Kenya
Press Statement
John Kerry
Secretary of State
Washington, DC
March 9, 2013
　

On behalf of the United States of America, I want to congratulate the people of Kenya for voting peacefully on March 4 and all those elected to office. Across the country, Kenyans turned out by the millions to exercise their most fundamental democratic right. I am inspired by the overwhelming desire of Kenyans to peacefully make their voices heard, and I applaud the patience they have shown as votes were tallied.

Foremost in our minds is a desire to see the will of the Kenyan people expressed freely and fairly. We strongly urge all parties and their supporters to peacefully address any disputes with today’s announcement by the Independent Electoral and Boundaries Commission through the Kenyan legal system, rather than on the streets. These elections are an historic opportunity for the people of Kenya to come together to build a better future. Since its independence in 1963, Kenya has been one of America’s strongest and most enduring partners in Africa. We stand with you at this historic moment and will continue to be a strong friend and ally of the Kenyan people.