Tuesday, December 24, 2013

A FAMILY WORKING TOGETHER IN A PYRAMID AND PONZI ENTERPRISE

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

SEC Charges Woman and Stepson for Involvement in Zeekrewards Pyramid and Ponzi Scheme; Parallel Criminal Charges and Plea Agreements Also Announced

On December 20, 2013, the Securities and Exchange Commission filed suit in the United States District Court for the Western District of North Carolina against Dawn Wright-Olivares and Daniel Olivares for their roles in perpetrating the fraudulent unregistered offer and sale of securities through Rex Venture Group LLC d/b/a ZeekRewards.com, an internet-based combined Ponzi and pyramid scheme. According to the Complaint, from approximately January 2011 until August 2012 when the ZeekRewards website was shut down, Rex Venture Group raised more than $850 million from approximately one million internet customers nationwide and overseas through the website. Both defendants have agreed to settle the Commission’s allegations against them, and their settlement papers were submitted to the Court for its consideration.

The Complaint alleged that defendants solicited investors through the internet and other means to participate in the ZeekRewards program, a self-described “affiliate advertising division” for the companion website, Zeekler.com, through which the defendants operated penny auctions. The ZeekRewards program offered customers several ways to earn money, two of which — the “Retail Profit Pool” and the “Matrix” — involved purchasing securities in the form of investment contracts. These securities offerings were not registered with the SEC as required under the federal securities laws.

According to the Complaint, Wright-Olivares and others lured investors to ZeekRewards by promising investors a share of the company’s daily net profits in the form of daily profit share awards. The company’s purported calculations consistently resulted in daily award averaging approximately 1.5 percent per day, fraudulently conveying the false impression that the company was extremely profitable. In fact, the daily award percentage was fabricated and investor payouts bore no relation to the company’s net profits. Approximately 98% of ZeekRewards’ total revenues and the “net profits” paid to investors were comprised of funds received from new investors in classic Ponzi scheme fashion. When the company was shut down in August 2012, it was teetering on collapse.

The Complaint further alleged that Wright-Olivares conceived of the idea for operating penny auctions, helped develop the technical specifications for the Zeekler.com program and its key features, marketed ZeekRewards to investors, managed some of RVG’s operations, and helped design and implement features that concealed the fraud. She was a principal spokesperson for ZeekRewards, and she also served as chief operating officer from September 2011 to June 2012. For the duration of the company’s existence, Olivares was the chief architect of the company’s computer databases that tracked all investments (including subscription and bid purchases), managed the electronic operations, and perpetuated the illusion of a successful retail business.

The Commission alleged that Wright-Olivares offered and sold securities in violation of the registration provisions of Section 5 of the Securities Act, and both defendants violated the antifraud provisions of the Section 17 of the Securities Act and Section 10(b) of the Securities Exchange Act and Rule 10b-5 thereunder. The Complaint requested permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties against the defendants. Without denying the allegations—and while also admitting the facts set forth in the Factual Summary filed contemporaneously with their respective plea agreements in the parallel criminal case — both defendants have agreed to settle the Commission’s charges against them, and their settlement papers were submitted to the Court for its consideration. In particular, both consented to permanent injunctions against future violations of the respective registration and antifraud provisions with which they were each charged. Wright-Olivares also agreed to disgorge at least $8,184,064.94 and Olivares agreed to disgorge at least $3,272,934.58 — amounts that represent the entirety of their ill-gotten gains plus prejudgment interest. In light of their anticipated incarceration, no civil penalty will be imposed. The settlements are subject to approval by the court. In a parallel action, the U.S. Attorney’s Office for the Western District of North Carolina simultaneously announced criminal charges against, and plea agreements by, the pair.

The SEC acknowledges the assistance of the United States Attorney’s Office for the Western District of North Carolina and the United States Secret

THE WHITE HOUSE CONDEMNS ONGOING AIR ASSAULT IN SYRIA

FROM:  THE WHITE HOUSE 
Statement by Press Secretary Jay Carney on the Ongoing Air Assaults by the Syrian Government

The United States condemns the ongoing air assault by Syrian government forces on civilians, including the indiscriminate use of SCUD missiles and barrel bombs in and around Aleppo over the last week. The attacks over the weekend killed more than 300 people, many of them children. The Syrian government must respect its obligations under international humanitarian law to protect the civilian population. The Syrian government must fulfill its November commitment to do more to facilitate the safe and unhindered delivery of humanitarian assistance, so that millions of Syrian men, women, and children have access to urgently needed services. To bring the suffering of the Syrian people to an end, it is imperative that Syrians reach a comprehensive and durable political solution to end the crisis in Syria. The United States remains committed to advancing a political settlement to help end the bloodshed in Syria.

NSF REVEALS HOW SCIENTISTS LOOKED AT HOW MARINE SNAILS SWIM

FROM:  NATIONAL SCIENCE FOUNDATION 
Oh, the places you'll go--if you're an Atlantic slipper shell
New research reveals the biomechanics of how marine snails swim
December 18, 2013

Walk the beach or peer into a tidepool anywhere along the northeastern U.S. coast, and you'll find shells stacked on top of one another. They're most likely common Atlantic slipper shells, a species of marine snail.

Scientists took a closer look at these ubiquitous snails, and discovered that how their larvae swim is key to the species' seeming residence in every nook and cranny along the coast. And to how the snails may be able to invade new territory.

Equipped with high-speed, high-resolution video, the researchers discovered how the larvae of these marine snails swim, a behavior that determines individual dispersal and ultimately, survival.

Researchers at the Woods Hole Oceanographic Institution (WHOI) and Stony Brook University grew Atlantic slipper limpet larvae, which can become slightly larger than a grain of rice, and recorded videos of them swimming.

In previous studies, it was thought that the larvae swim faster when they beat their hair-like cilia faster. However, this new research shows that's not the case.

"I was very surprised when I saw that there was no relationship between cilia beat frequency and how fast these animals swim," says Karen Chan, a WHOI scientist and the lead author of a paper published today in the journal PLOS ONE.

The larvae control how fast they swim by subtly shifting the position of their velar lobes--flat, disc-shaped wings fringed with cilia.

The ability to make small movements with these velar lobes, akin to how a bird adjusts the angle of its wings while soaring, demonstrates complex neuromuscular control.

"This careful study tells us a lot about how organisms interact with the marine environment, knowledge we need in a time of environmental change," says David Garrison, program director in the National Science Foundation's Division of Ocean Sciences, which funded the research.

The Atlantic slipper shell is a marine snail native to the northeastern United States. It has become an invasive species elsewhere in the world, especially in Europe.

The slipper shell has many common names, including Atlantic slippersnail, boat shell and quarterdeck shell. It is known in the United Kingdom as the common slipper limpet. The species is a medium-sized sea snail, a marine gastropod mollusk in the family Calyptraeidae, the slipper snails and the cup-and-saucer snails.

Paper co-author Dianna Padilla of Stony Brook University collected the snails from the North Shore of Long Island, N.Y. She grew the larvae in her lab, which were then sent to WHOI for video analysis.

Houshuo Jiang, a scientist at WHOI and collaborator on the project, says the goal is to understand the limpet's role in shaping the marine ecosystem.

With support from NSF, Jiang built a customized, vertically-oriented optical system that can magnify and record high-speed, high-resolution video of microorganisms swimming in seawater at 2,000 frames per second.

"Much more can be observed in great detail using this setup than looking through a microscope," Jiang says.

Jiang found that in a single day, slipper shell larvae could vary their speed from swimming one body length per second to four body lengths per second.

"What this means is they have a lot of control over how fast they swim," Chan says. How they swim can determine where they go.

And where they might turn up next.

"These results show the flexibility these little animals have," says Padilla, "which is likely what makes them so successful in their environment."

In addition to NSF, the Croucher Foundation, the Royal Swedish Academy of Sciences and WHOI provided support for the project.

-NSF-

Monday, December 23, 2013

PRESIDENT'S MESSAGE TO CONGRESS REGARDING WAR POWERS RESOLUTION INVOLVING SOUTH SUDAN

FROM:  THE WHITE HOUSE 
Message to the Congress -- War Powers Resolution Regarding South Sudan
TEXT OF A LETTER FROM THE PRESIDENT
TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES
AND THE PRESIDENT PRO TEMPORE OF THE SENATE
December 22, 2013

Dear Mr. Speaker: (Dear Mr. President:)

In my report to the Congress of December 19, 2013, I provided information on the deployment of U.S. forces to support the security of U.S. personnel and our Embassy in South Sudan. I am providing this additional report, consistent with the War Powers Resolution (Public Law 93-148), to help ensure that the Congress is kept fully informed on U.S. military activities in South Sudan.

On December 21, 2013, approximately 46 additional U.S. military personnel deployed by military aircraft to the area of Bor, South Sudan, to conduct an operation to evacuate U.S. citizens and personnel. After the aircraft came under fire as they approached Bor, the operation was curtailed due to security considerations, and the aircraft and all military personnel onboard departed South Sudan without completing the evacuation.

The purpose of this operation was to protect U.S. citizens, personnel, and property. As I monitor the situation in South Sudan, I may take further action to support the security of U.S. citizens, personnel, and property, including our Embassy, in South Sudan.

This action has been directed consistent with my responsibility to protect U.S. citizens both at home and abroad, and in furtherance of U.S. national security and foreign policy interests, pursuant to my constitutional authority to conduct U.S. foreign relations and as Commander in Chief and Chief Executive.

I appreciate the support of the Congress in these actions.

Sincerely,

BARACK OBAMA

NASA VIDEO: Curiosity Rover Report (Dec. 9, 2013): Dating Younger Rocks (+playlist)

U.S. DEFENSE DEPARTMENT CONTRACTS FOR DECEMBER 23, 2013

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

AIR FORCE

Raytheon Co., Space and Airborne Systems, Marlborough, Mass., has been awarded an  $134,399,631 fixed-price-incentive (firm target) contract for the design and development of Global Aircrew Strategic Network Terminals Increment I, with firm-fixed-price and cost-plus-fixed-fee options for manufacturing, installation, and sustainment.  Global ASNT Increment I is a secure, survivable multi-path communication system used to disseminate nuclear command and control messages from national-level decision authorities to wing command posts and bomber, tanker and reconnaissance aircrews at geographically dispersed locations.  Work will be performed at, Marlborough, Mass., and the design and development is expected to be complete in December 2016, with production, installation, and sustainment options extending to December 2020.  This award is the result of a competitive acquisition with one offer received.  Fiscal 2013 research, development, test & evaluation funds in the amount of $1,395,000 are being obligated at time of award.  Air Force Lifecycle Management Center, Hanscom Air Force Base, Mass., is the contracting authority (FA8705-14-C-0001).

Lockheed Martin Aeronautics Corp., Fort Worth, Texas, has been awarded an $108,194,928 cost-plus-fixed-price modification (P00501) for an existing contract (FA8611-08-C-2897) for F-22 sustainment. The contract modification is for calendar year 2014 F-22 Depot throughput and touch-labor. Work will be performed at Fort Worth, Texas, and is expected to be completed by Dec. 31, 2014.  Fiscal 2014 aircraft procurement and operations and maintenance funding in the amount of $36,291,036.00 will be obligated for this effort.  This contract is not a multiyear contract.  Air Force Life Cycle Management Center/WWUKH, Hill Air Force Base, Utah, is the contracting activity.

Exelis Inc. Radar, Reconnaissance & Undersea Systems, Van Nuys, Calif., has been awarded a $76,164,504 contract for the procurement and installation of nine ground control approach radars 2000 Systems (GCA-2000) plus associated operator and maintenance training for installation at nine airbases in Poland in support of the Polish Armed Forces for the Polish Armaments

Directorate.  The contractor will manufacture, assemble, test, install systems to be used for aircraft approach and landing guidance, airspace control services and support of air traffic control operations, mission requirements and operator maintenance training.  Work will be performed in Poland, and is expected to be complete by Nov. 2018.  This award is 100 percent foreign military sales for Poland.  Air Force Life Cycle Management Center/HBAK, Hanscom Air Force Base, Mass., is the contracting activity (FA8730-14-C-0009).

Raytheon Co., Goleta, Calif., has been awarded a not-to-exceed $70,000,000 firm-fixed-price contract for eight Advanced Countermeasures Electronic Systems (ACES) full systems for in country spares, three full systems to support software sustainment activities, 13 ACES Line Replaceable Units (LRU) to create a repair and return spares pool, and 21 ACES LRUs to support operation of ACES reprogramming benches at Warner Robins and Eglin Air Force

Bases, plus a lifetime supply of diminishing manufacturing source parts to support future repair and return and production.  Work will be performed at Goleta, Calif., and is expected to be completed March 2017.  This award is the result of a sole-source acquisition.  This contract is 100 percent foreign military sales for the governments of Morocco, Egypt and Iraq.  Air Force Life Cycle Management Center/WWMK, Wright-Patterson AFB, Ohio, is the contracting activity  (FA8615-14-C-6022).

CORRECTION:  In the Dec. 18, 2013 release of contract FA8616-14-C-6061 to Rockwell Collins, Inc. Government Systems, Cedar Rapids, Iowa, the contract amount should have read $43,812,122.

NAVY

BAE Systems Technology Solutions and Services, Rockville, Md., is being awarded a $48,860,666 cost-plus-fixed-fee, cost reimbursable contract for services in support of the Program Executive Office for Ships, Naval Sea Systems Command, PEO C41, and the Naval Air Warfare Center Aircraft Division.  Services provided will include the design, integration, testing, installation, training, and support of shipboard Command, Control, Communications, Computers, & Intelligence (C4I) electronic communication systems for ships of the U.S. Navy.  Work will be performed in St. Inigoes, Md. (50 percent); California, Md. (48 percent); Bath, Maine (1 percent); and Pascagoula, Miss. (1 percent), and is expected to be completed in June 2019.  Fiscal 2011 and 2012 shipbuilding and conversion, Navy contract funds in the amount of $48,860,666 will be obligated on this award, none of which will expire at the end of the current fiscal year.  This contract was not competitively procured pursuant to FAR 6.302-1.  The Naval Air Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity (N00421-14-C-0011).

Lockheed Martin, Maritime Systems and Sensors, Moorestown, N.J., is being awarded a $37,133,082 modification to previously awarded contract (N00024-09-C-5103) to incrementally fund the Aegis Platform Systems Engineering Agent (PSEA) activities and Aegis Modernization Advanced Capability Build engineering.  The Aegis PSEA manages the in-service combat systems configurations as well as the integration of new or upgraded capability into the CG57 Class of ships and the DDG 51 Class of ships.  Aegis Modernization will provide upgrades to Aegis cruisers and Aegis destroyers and will be applicable to all Aegis ships with a computer program that is backfit compatible to Baseline 2 cruisers.  Work is being performed in Moorestown, N.J., and is expected to be completed by September 2014.  Fiscal 2014 research, development, test and evaluation, Fiscal 2014 operations and maintenance, Navy and Fiscal 2014 other procurement, Navy funds in the amount of $37,133,082 will be obligated at the time of the award.  Contract funds in the amount of $3,988,400 will expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington D.C., is the contracting activity.

Defense Support Services LLC*, Mount Laurel, N.J., is being awarded a $24,903,892 indefinite-delivery requirements contract for instructional support services to conduct basic and advanced courses on the Navy's Cargo Offload and Discharge System (COLDS), including the operation and maintenance of Navy Lighterage and Improved Navy Lighterage System powered and non-powered craft, other COLDS subsystems, and continued Contractor Instruction, Maintenance, Operations and Training Support, which yields qualified COLDS graduates.  Work will be performed in Coronado, Calif. (65 percent) and Norfolk, Va. (35 percent), and is expected to be completed in December 2018.  No funds will be obligated at time of award.  Funds will be obligated on individual delivery orders as they are issued.  No funds will expire at the end of the current fiscal year.  This contract was competitively procured via an electronic request for proposals, with one offer received.  The Naval Air Warfare Center, Training Systems Division, Orlando, Fla., is the contracting activity (N61340-14-D-0001).
Lockheed Martin Corp., Baltimore, Md., is being awarded a $23,275,441 modification to previously awarded contract (N00024-11-C-2300) to exercise an option for Littoral Combat Ship core class services. Lockheed Martin will provide engineering and design services as well as affordability efforts to reduce LCS acquisition and lifecycle costs. Work will be performed in Moorestown, N.J. (36 percent), Hampton, Va. (30 percent), Washington, D.C. (23 percent), and Marinette, Wis. (11 percent), and is expected to be complete by December 2014.  Fiscal 2013 shipbuilding and conversion, Navy funds in the amount of $12,056,601 will be obligated at time of award.  Contract funds will not expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

Austal USA LLC., Mobile, Ala., is being awarded a $14,057,992 modification to previously awarded contract (N00024-11-C-2301) to exercise options for class service efforts for the Littoral Combat Ship (LCS) program.  Austal USA will provide engineering and design services as well as affordability efforts to reduce LCS acquisition and lifecycle costs.  Work will be performed in Mobile, Ala. (72 percent) and Pittsfield, Mass. (28 percent), and is expected to be complete by December 2014.   Fiscal 2013 shipbuilding and conversion, Navy and Fiscal 2014 research, development, test and evaluation contract funds in the amount of $3,984,807 will be obligated at time of award.  Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

EDO Corp., Panama City, Fla., is being awarded a $13,168,340 firm-fixed-priced, indefinite-delivery/indefinite-quantity contract for depot level repair, maintenance and modifications of the MK105 Magnetic Minesweeping Gear and MH-53E Airborne Mine Neutralization System (AMNS53) Launch and Recovery System and tracking system to support the Navy for the currently deployed Airborne Mine Countermeasures legacy systems.  The contract includes the technical support, analysis, repair, modification, interface equipment, and engineering support for the MK105 and AMNS53 systems.  The MK105 and AMNS53 are currently fielded for use in the Navy's capability to conduct quick response, high speed airborne mine countermeasures.   This includes all depot repairs and incorporation of engineering change proposals, including the generation of all Integrated Logistics Support documentation to support the conversions.  This contract includes options which, if exercised, would bring the cumulative value of this contract to $53,877,327.  Work will be performed in Panama City, Fla., and is expected to be completed by December 2014.  Fiscal 2014 operations and maintenance, Navy funds in the amount of $70,000 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S.C. 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. Naval Surface Warfare Center Panama City Division, Panama City, Fla., is the contracting activity (N61331-14-D-0002).

Marine Hydraulics International,* Norfolk, Va., was awarded an $11,559,768 modification to previously awarded contract (N00024-10-C-4405) to exercise options for the accomplishment of USS Gonzalez (DDG-66) FY14 Selected Restricted Availability (SRA).  An SRA includes the planning and execution of depot-level maintenance, alterations, and modernizations that will update and improve the ship's military and technical capabilities.  Work will be performed in Norfolk, Va., and is expected to be completed by July 2014.  Fiscal 2014 operations and maintenance, Navy funds in the amount of $11,559,768 will be obligated at time of award and will expire at the end of the current fiscal year.  The Norfolk Ship Support Activity, Norfolk, Va., is the contracting activity.
3 Phoenix, Inc., Chantilly, Va., is being awarded a $10,576,352 cost-plus-fixed-fee modification to previously awarded contract (N00024-11-C-6287) for the procurement of engineering services for development, integration, and logistic support of the Torpedo Warning System (TWS). The TWS provides surface ships with the ability to detect threat torpedoes and thereby employ defensive measures including maneuver and hard and soft kill countermeasures.  Work will be performed in Chantilly, Va., (46 percent); Fairfax, Va., (28 percent); Houston, Texas, (18 percent); Wake Forest, N.C., (6 percent), and Hanover, Md., (2 percent), and is expected to be completed by October 2014.  Fiscal 2014 research, development, test and evaluation funding in the amount of $7,566,566 will be obligated at time of award and will not expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Northrop Grumman Technical Services, Herndon, Va., is being awarded a $9,531,889 cost-plus-fixed-fee contract to provide maintenance services for E-2C, E-2D, and C-2 aircraft in support of the VX-20 Squadron.  Work will be performed at the Naval Air Station, Patuxent River, Md. (95 percent) and in St. Augustine, Fla. (5 percent), and is expected to be completed in December 2014.  Fiscal 2014 Navy working capital fund in the amount of $4,175,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year.  This contract was not competitively procured pursuant to FAR 6.302-1.  The Naval Air Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity (N00421-14-C-0009).

Bell Boeing Joint Project Office, Amarillo, Texas, is being awarded an $8,991,254 modification to a previously awarded cost-plus-fixed-fee, firm-fixed-price contract (N00019-13-C-0021) to exercise an option for two V-22 Block A to B 50-69 series upgrade kits.  Work will be performed in Philadelphia, Pa. (60 percent) and Fort Worth, Texas (40 percent), and is expected to be completed in November 2015.  Fiscal 2014 aircraft procurement, Navy contract funds in the amount of $8,991,254 will be obligated at time of award, none of which will expire at the end of the current fiscal year.  The Naval Air System Command, Patuxent River, Md., is the contracting activity.

Hornbeck Offshore Services, LLC, Covington, La., is being awarded an $8,080,209 modification under a previously awarded firm-fixed-price contract (N00033-11-C-2000) to exercise a one-year option for the time charter of one offshore supply vessel, HOS Dominator.  The ship's primary mission will be to provide submarine rescue diving and recompression system support service, in support of Commander, Submarine Forces, U.S. Pacific Fleet.  Work will be performed at sea on the U.S. East Coast, U.S. West Coast, Hawaii and Alaska, and is expected to be completed by December 2014.  Fiscal 2014 Working capital contract funds in the amount of $6,090,691 will be obligated on this award, and will not expire at the end of the current fiscal year.  The U.S. Navy's Military Sealift Command is the contracting activity (N00033-11-C-2000).

General Dynamics Bath Iron Works, Bath, Maine, was awarded a $7,684,132 cost-plus-fixed-fee delivery order under Basic Ordering Agreement (N00024-12-G-4330) for the accomplishment of the Planning Yard Services in support of LCS-2 and LCS-4.  Planning yard functions ensure well-integrated and executed planned and emergent maintenance support, and in-service sustainment. These services will include: vendor training and crew familiarization; in-service engineering support; trainer support; availability advanced planning; long lead time material planning and procurement; material warehousing; logistics product updates; and class sustainment management.  Work will be performed in Bath, Maine, and is expected to be completed by Dec. 21, 2014.  Fiscal 2014 operations and maintenance, Navy contract in the amount of $1,000,000 will be obligated at the time of award and will expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington D.C., is the contracting activity.

The Boeing Co., Seattle, Wash., is being awarded a $6,781,461 modification to a previously awarded fixed-price-incentive-firm contract (N00019-12-C-0112) for initial spares in support of eight P-8A Low Rate initial Production Lot IV aircraft.  Work will be performed in Grand Rapids, Mich. (24.9 percent); Torrance, Calif. (18.8 percent); Greenlawn, N.Y.  (15 percent); Irvine, Calif. (14.5 percent); Freeland, Wash. (8.5 percent); Avenel, N.J. (5.2 percent); Rockford, Ill. (3.3 percent); Wilson, N.C. (3.1 percent); Manfield, Ohio (2.8 percent); Rochester, N.Y. (1.8 percent); West Chester, Ohio (1.5 percent); Sarasota, Fla. (.5 percent), and Wichita, Kansas (.1 percent).  Work is expected to be completed in April 2017.  Fiscal 2013 aircraft procurement Navy contract funds in the amount of $6,781,461 are being obligated on this award, none of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

ARMY

Sikorsky Aircraft Corp., Stratford, Conn., was awarded a $723,998,360 modification (P00127) to contract W58RGZ-12-C-0008 to fund program year three for 33 UH-60M helicopters and 24 HH-60M helicopters, and associated program management, systems engineering, provisioning, technical publications, and integrated logistics support. Also provided for are advance procurement funding (termination liability) for program years four and five.  Fiscal 2014 other procurement funds in the amount of $723,998,360 were obligated at the time of the award. Estimated completion date is June 30, 2015.  Work will be performed in Stratford, Conn.  Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity.

Oshkosh Corp., Oshkosh, Wisc., was awarded a $104,944,411 modification (000721) to contract W56HZV-09-D-0159 to add an additional 545 medium tactical vehicles, 79 trailers, and applicable federal excise tax to the contract.  Fiscal 2014 other procurement Army funds in the amount of $104,944,411were obligated at the time of the award.  Estimated completion date is Nov. 30, 2015.  Bids were solicited via the Internet with three received.  Work will be performed in Oshkosh, Wisc.  Army Contracting Command, Warren, Mich. is the contracting activity.

AAI Corp., Hunt Valley, Md. was awarded a $23,024,245 modification (P00009) to contract W58RGZ-13-C-0016 for logistics support for the "One System Remote Video Terminal" in Afghanistan.  Fiscal 2014 operations and maintenance (Army) funds in the amount of $23,024,245 were obligated at the time of the award.  Estimated completion date is Dec. 30, 2014.  Work will be performed in Hunt Valley, Md.  Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity.

Lockheed Martin Missiles and Fire Control, Orlando, Fla., was awarded a $14,500,852 modification (P00047) to contract W58RGZ-11-C-0120 for engineering and logistics services to implement and field the Modernized Target Acquisition Designation Sight High Reliability Turret.  Fiscal 2014 other procurement funds in the amount of $14,500,852 were obligated at the time of the award. Estimated completion date is Sept. 30, 2017. Bids were solicited via the Internet with one received. Work will be performed in Orlando, Fla. Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity.
Navistar Defense, LLC, Lisle, Ill. was awarded a $6,920,507 modification (P00086) to contract W56HZV-10-C-0011 for field service support in the continental United States and overseas for  Mine Resistant Ambush Protected MaxxPro vehicles.  Fiscal 2014 operations and maintenance (Army) funds in the amount of $6,920,507 were obligated at the time of the award. Estimated completion date is Dec. 31, 2014.  Bids were solicited via the Internet with one received.  Work will be performed in Lisle, Ill., and Afghanistan.  Army Contracting Command, Warren, Mich. is the contracting activity.

DEFENSE LOGISTICS AGENCY

Eagle Crusher Company Inc., Galion, Ohio, has been awarded a maximum $157,500,000 fixed-price with economic-price-adjustment contract for the procurement of commercial type environmental equipment.  This contract is a competitive acquisition, and sixteen offers were received.  This contract is one of up to ten contracts being issued against solicitation number SPM8EC-11-R-0006 and with requirements that specifically call for environmental equipment within the product line and will be competed amongst other contractors who receive a contract under this solicitation.  This is a five-year base.  Location of performance is Ohio with a Dec. 22, 2018 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies.  Type of appropriation is fiscal year 2014 through fiscal year 2019 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE8EC-14-D-0004).

Revision Military,* Essex Junction, Vt., has been awarded a maximum $21,139,200 firm-fixed-price, definite-quantity contract for the procurement of advanced combat helmets.  This contract is a competitive acquisition, and two offers were received.  Location of performance is Vermont with an Apr. 15, 2015 performance completion date.  Using military services are Army, Navy, Air Force, and Marine Corps.  Type of appropriation is fiscal year 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM1C1-14-C-0006).

CORRECTION:  In the Dec. 20, 2013 contract announcements, the award to CFM International, Cincinnati, Ohio, had an incorrect contract number. The correct number is SPRTA1-14-G-0002-0002.
*Small Business

West Wing Week 12/24/13 or "West Wing Week: The Holiday Card" | The White House

West Wing Week 12/24/13 or "West Wing Week: The Holiday Card" | The White House

JUSTICE ANNOUNCES RECOVERY OF $3.8 BILLION FROM FALSE CLAIM ACT CASES IN FISCAL 2013

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, December 20, 2013
Justice Department Recovers $3.8 Billion from False Claims Act Cases in Fiscal Year 2013

Second Largest Annual Recovery in History Whistleblower Lawsuits Soar to 752
The Justice Department secured $3. 8 billion in settlements and judgments from civil cases involving fraud against the government in the fiscal year ending Sept. 30, 2013, Assistant Attorney General for the Civil Division Stuart F. Delery announced today.   This dollar amount, which is the second largest annual recovery of its type in history, brings total recoveries under the False Claims Act since January 2009 to $ 17 billion – nearly half the total recoveries since the Act was amended 27 years ago in 1986.

The Justice Department’s fiscal year 2013 efforts recovered more than $3 billion for the fourth year in a row and are surpassed only by last year’s nearly $5 billion in recoveries.   As in previous years, the largest recoveries related to health care fraud, which reached $2. 6  billion.   Procurement fraud (related primarily to defense contracts) accounted for another $ 890  million – a record in that area.

“It has been another banner year for civil fraud recoveries, but more importantly, it has been a great year for the taxpayer and for the millions of Americans, state agencies and organizations that benefit from government programs and contracts,” said Assistant Attorney General Delery.   “The $3. 8 billion in federal False Claims Act recoveries in fiscal year 2013, plus another $443 million in recoveries for state Medicaid programs, restores scarce taxpayer dollars to federal and state governments.   The government’s success in these cases is also a strong deterrent to others who would misuse public funds, which means government programs designed to keep us safer, healthier and economically more prosperous can do so without the corrosive effects of fraud and false claims.”    

The False Claims Act is the government’s primary civil remedy to redress false claims for government funds and property under government contracts, including national security and defense contracts, as well as under government programs as varied as Medicare, veterans benefits, federally insured loans and mortgages, transportation and research grants, agricultural supports, school lunches and disaster assistance.   In 1986, Congress strengthened the Act by amending it to increase incentives for whistleblowers to file lawsuits on behalf of the government, which has led to more investigations and greater recoveries.

Most false claims actions are filed under the Act’s whistleblower, or qui tam, provisions, which allow private citizens to file lawsuits alleging false claims on behalf of the government.  If the government prevails in the action, the whistleblower, known as a relator, receives up to 30 perc ent of the recovery.   The number of qui tam suits filed in fiscal year 2013 soared to 752 –100 more than the record set the previous fiscal year.   Recoveries in qui tam cases during fiscal year 2013 totaled $2. 9 billion , with whistleblowers recovering $345 million.

Health Care Fraud

The $2. 6 billion in health care fraud recoveries in fiscal year 2013 marks four straight years the department has recovered more than $2 billion in cases involving health care fraud.   This steady, significant and continuing success can be attributed to the high priority the Obama Administration has placed on fighting health care fraud.   In 2009, Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius announced the creation of an interagency task force, the Health Care Fraud Prevention and Enforcement Action Team (HEAT), to increase coordination and optimize criminal and civil enforcement.   This coordination has yielded historic results:   From January 2009 through the end of the 2013 fiscal year, the department used the False Claims Act to recover $12 .1 billion in federal health care dollars.   Most of these recoveries relate to fraud against Medicare and Medicaid.   Additional information on the government’s efforts in this area is available at StopMedicareFraud.gov, a webpage jointly established by the Departments of Justice and Health and Human Services.

Some of the largest recoveries this past fiscal year involved allegations of fraud and false claims in the pharmaceutical and medical device industries.   Of the $2. 6 billion in federal health care fraud recoveries, $1.8 billion were from alleged false claims for drugs and medical devices under federally insured health programs that, in addition to Medicare and Medicaid, include TRICARE, which provides benefits for military personnel and their families, veterans’ health care programs and the Federal Employees Health Benefits Program.   The department recovered an additional $443 million for state Medicaid programs.

Many of these settlements involved allegations that pharmaceutical manufacturers improperly promoted their drugs for uses not approved by the Food and Drug Administration (FDA) – a practice known as “off-label marketing.”   For example, drug manufacturer Abbott Laboratories Inc. paid $1.5 billion to resolve allegations that it illegally promoted the drug Depakote to treat agitation and aggression in elderly dementia patients and schizophrenia when neither of these uses was approved as safe and effective by the FDA.   This landmark $1.5 billion settlement included $575 million in federal civil recoveries, $225 million in state civil recoveries and nearly $700 million in criminal fines and forfeitures.   In another major pharmaceutical case, biotech giant Amgen Inc. paid the government $762 million, including $598.5 million in False Claims Act recoveries, to settle allegations that included its illegal promotion of Aranesp, a drug used to treat anemia, in doses not approved by the FDA and for off-label use to treat non-anemia-related conditions.  For details, see Abbott, Abbott sentencing, and Amgen.

The department also settled allegations relating to the manufacture and distribution of adulterated drugs.   For example, generic drug manufacturer Ranbaxy USA Inc. paid $505 million to settle allegations of false claims to federal and state health care programs for adulterated drugs distributed from its facilities in India.  The settlement included $237 million in federal civil claims, $118 million in state civil claims and $150 million in criminal fines and forfeitures.   For details, see Ranbaxy.  

Adding to its successes under the False Claims Act, the Civil Division’s Consumer Protection Branch, together with U.S. Attorneys across the country, obtained 16 criminal convictions and more than $1. 3 billion in criminal fines, forfeitures and disgorgement under the Federal Food, Drug and Cosmetic Act (FDCA).  The FDCA protects the health and safety of the public by ensuring, among other things, that drugs intended for use in humans are safe and effective for their intended uses and that the labeling of such drugs bears true, complete and accurate information.  

In other areas of health care fraud, the department obtained a $237 million judgment against South Carolina-based Tuomey Healthcare System Inc., after a four-week trial, for violating the Stark Law and the False Claims Act.  The Stark Law prohibits hospitals from submitting claims to Medicare for patients referred to the hospital by physicians who have a prohibited financial relationship with the hospital.   Tuomey’s appeal of the $237 million judgment is pending.  If the judgment is affirmed on appeal, this will be the largest judgment in the history of the Stark Law.   For the court’s opinion, see Tuomey.

The department also recovered $26.3 million in a settlement with Steven J. Wasserman M.D., a dermatologist practicing in Florida, to resolve allegations that he entered into an illegal kickback arrangement with Tampa Pathology Laboratory that resulted in increased claims to Medicare.   Tampa Pathology Laboratory previously paid the government $950,000 for its role in the alleged scheme.   The $26.3 million settlement is one of the largest with an individual in the history of the False Claims Act.   For details, see Wasserman.          

Procurement Fraud

Fiscal year 2013 was a record year for procurement fraud matters.   The department secured more than $887 million in settlements and judgments based on allegations of false claims and corruption involving government contracts.  Prominent among these successes was the department’s $664 million judgment against Connecticut-based defense contractor United Technologies Corp. (UTC).   A federal court found UTC liable for making false statements to the Air Force in negotiating the price of a contract for fighter jet engines.   In 2004, the department had won a smaller judgment after a three-month trial.  Both sides appealed, but the government’s arguments prevailed, resulting in the case being returned to the trial court to reassess damages.  The $664 million judgment, which UTC has appealed, is the largest judgment in the history of the False Claims Act and, if the appellate court affirms, will be the largest procurement recovery in history.   For details, see UTC.

The department also settled allegations of false claims with two companies in connection with their contracts with the General Services Administration (GSA) to market their products through the Multiple Award Schedule (MAS) program.   To be awarded a MAS contract, and thereby gain access to the broad government marketplace, contractors must provide GSA with complete, accurate and current information about their commercial sales practices, including discounts afforded to their commercial customers.   The government alleged that W.W. Grainger Inc., a national hardware distributor headquartered in Illinois, and Ohio-based RPM International Inc. and its subsidiary, Tremco Inc., a roofing supplies and services firm, failed to disclose discounts given to their commercial customers, which resulted in government customers paying higher prices.  The department recovered $70 million from W.W. Grainger in a settlement that also included allegations relating to a U.S. Postal Services contract and $61 million from RPM International Inc. and Tremco.  For details, see Grainger, RPM/Tremco.

Other Fraud Recoveries

A $45 million settlement with Japan-based Toyo Ink S.C. Holdings Co. Ltd. and its Japanese and United States affiliates (collectively Toyo) demonstrates the breadth of cases the department pursues.  This settlement resolved allegations that Toyo misrepresented the country of origin on documents presented to the Department of Homeland Security’s U.S. Customs and Border Protection to evade antidumping and countervailing duties on imports of the colorant carbazole violet pigment into the United States.   These duties protect U.S. businesses by offsetting unfair foreign pricing and foreign government subsidies.   For details, see Toyo.
   
The False Claims Act also is used to redress grant fraud.   In a significant case involving a grant from the Department of Education, Education Holdings Inc. (formerly The Princeton Review Inc.) paid $10 million to resolve allegations that the company fabricated attendance records for thousands of hours of afterschool tutoring of students that was funded by the federal grant.  For details, see Education Holdings.

Recoveries in Whistleblower Suits

Of the $3. 8 billion the department recovered in fiscal year 2013, $2. 9 billion related to lawsuits filed under the qui tam provisions of the False Claims Act.   During the same period, the department paid out more than $345 million to the courageous individuals who exposed fraud and false claims by filing a qui tam complaint.   (The average share paid to whistleblowers in fiscal year 2013 cannot be determined from these numbers because the awards paid to whistleblowers in one fiscal year do not always coincide with the fiscal year in which the case was resolved, and the fiscal year’s recoveries may include amounts to settle allegations outside the whistleblower’s complaint.)

Whistleblower lawsuits were in the range of three to four hundred per year from 2000 to 2009, when they began their climb from 433 lawsuits in fiscal year 2009 to 752  lawsuits in fiscal year 2013.   Due to the complexity of fraud investigations generally, the outcomes of many of the qui tam cases filed this past fiscal year are not yet known, but the growing number of lawsuits filed since 2009 have led to increased recoveries.   Qui tam recoveries exceeded $2 billion for the first time in fiscal year 2010 and have continued to exceed that amount every year since.   Qui tam recoveries this past fiscal year bring the department’s totals since January 2009 to $13.4 billion.   During the same period, the department paid out $1.98 billion in whistleblower awards.

“These recoveries would not have been possible without the brave contributions made by ordinary men and women who made extraordinary sacrifices to expose fraud and corruption in government programs,” said Assistant Attorney General Delery.   “We are also grateful to Congress and its continued support of strengthening the False Claims Act, including its qui tam provisions, giving the department the tools necessary to pursue false claims.”

In 1986, Senator Charles Grassley and Representative Howard Berman led successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud.  In 2009, Senator Patrick J. Leahy, along with Senator Grassley and Representative Berman, championed the Fraud Enforcement and Recovery Act of 2009, which made additional improvements to the False Claims Act and other fraud statutes.   And in 2010, the passage of the Affordable Care Act provided additional inducements and protections for whistleblowers and strengthened the provisions of the federal health care Anti-Kickback Statute.

Assistant Attorney General Delery also expressed his deep appreciation for the dedicated public servants who investigated and pursued these cases.   These individuals include attorneys, investigators, auditors and other agency personnel throughout the Justice Department’s Civil Division, the U.S. Attorneys’ Offices, the Departments of Defense and Health and Human Services, the various Offices of Inspector General and the many other federal and state agencies that contributed to the department’s recoveries this past fiscal year.

“The department’s continued success in recovering fraudulent claims for taxpayer money this past fiscal year is a product of the tremendous skill and dedication of the people who worked on these cases and investigations and continue to work hard to protect against the misuse of taxpayer dollars,” said Delery.

AIR FORCE COMMITS TO USE OF GSA'S OASIS CONTRACT FOR COMPLEX PROFESSIONAL SERVICES

FROM:  U.S. GENERAL SERVICES ADMINISTRATION 
Air Force Signs On the Line, Commits to Primary Use of GSA’s OASIS Contract for Complex Professional Services
December 19, 2013

WASHINGTON --  In a ceremony held today at U.S. General Services Administration headquarters, GSA and the United States Air Force signed a Memorandum of Understanding (MoU) securing Air Force’s use of GSA’s One Acquisition Solution for Integrated Services (OASIS) and OASIS Small Business contracts for procurement of complex professional services.  OASIS is a first-of-its kind contract that will provide the government with a total solution contract vehicle for complex professional services projects.

“OASIS will save Air Force, and our folks in the field, a tremendous amount of time and effort. It will allow us to aggressively go after our small business goal with access to highly capable and vetted companies, and it significantly reduces our manpower requirements to conduct complex acquisitions,” said Randall D. Culpepper, Program Executive Officer for Combat and Mission Support, Office of the Assistant Secretary of the Air Force for Acquisition.  "Our partnership with GSA on OASIS allows us preserve precious resources while putting in place a tool that is exceptionally responsive to the needs of defense organizations supporting the warfighter.  We think this will be a great long-term relationship that will get us a lot of bang for the acquisition bucks that we have.

Through OASIS and OASIS Small Business, Air Force will:

Reduce excess costs associated with award and administration of multiple IDIQ and/or standalone contracts
Reduce the lead time and administrative efforts it currently takes agencies to acquire complex professional services
Gain insight into spend volume and labor types and costs across the Federal Government and facilitate negotiation of lower pricing at the task order level
Improve and reduce time associated with task order proposal comparison process by creating “apples to apples” comparisons of proposed labor costs
Eliminate need for Task Order Contracting Officers to evaluate proposals from poor performers
The response period for OASIS and OASIS-Small Business Requests for Proposal (RFPs) came to a close last month; the OASIS team expects to award contracts in early 2014.

OASIS will be designed to address agencies' needs for any one or combination of the following professional service requirements that:

Span multiple professional service disciplines
Contain significant IT components, but are not IT requirements in and of themselves
Contain Ancillary Support components commonly referred to as ODCs
Require flexibility for all contract types at the task order level including cost reimbursement
OASIS will be able to provide both commercial and non-commercial services. The core disciplines of the contract will include program management services, management consulting services, logistics services, engineering services, scientific services, and financial services.

NASA ACCOMPLISHMENTS IN 2013

 FROM:  NASA

NASA Transforms Access to Low-Earth Orbit, Touches Interstellar Space, Makes Unprecedented Discoveries and Develops Cutting-Edge Technologies in 2013
In 2013, NASA helped U.S. commercial companies transform access to low-Earth orbit and the International Space Station even as one of the agency's venerable spacecraft was confirmed to have reached interstellar space, and engineers moved ahead on technologies that will help carry out the first astronaut mission to an asteroid and eventually Mars.

"Even in a time of great change and transition, NASA employees stayed focused on what it takes to get the job done -- returning space station resupply launches and the jobs they support back to the United States, developing cutting-edge technologies that will help us send American astronauts to an asteroid and Mars, uncovering new knowledge about our home planet and the universe and helping develop cleaner and quieter airplanes," NASA Administrator Charles Bolden said. "It's all the hard work and dedication from the NASA folks on the frontlines that keep the United States the world’s leader in space exploration."

The following are some of NASA's top stories this year:
Commercial Space Progress

A little more than two years after the end of the Space Shuttle Program, NASA has returned the International Space Station resupply missions to the United States in a powerful partnership with U.S. companies SpaceX and Orbital Sciences, who are investing here and creating good-paying jobs for American workers.

NASA remains committed to launching American astronauts from U.S. soil within the next four years. Recent progress includes key milestones in commercial crew development met by three American companies: Boeing, SpaceX and Sierra Nevada Corporation; a Nov. 19 request for proposals on the Commercial Crew Transportation Capability contract (CCtCap), designed to ensure commercial companies meet NASA’s safety requirements for transporting NASA and international partner crews to the International Space Station; unfunded Space Act Agreements with other potential commercial providers; and creation of a Space Technology Program focused on breakthrough innovations that will change future transportation options. These accomplishments have been bolstered by the extension of International Space Station operations to 2020, enabling expanded commercial and research opportunities.

NURSE SENTENCED FOR ROLE IN $11 MILLION FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, December 20, 2013
Unlicensed Miami Clinic Nurse Convicted at Trial and Sentenced for Role in $11 Million HIV Infusion Fraud Scheme

An unlicensed nurse who fled after being charged in 2008 and was captured this year was sentenced today to serve 108 months in prison for her role in a fraud scheme that resulted in more than $11 million in fraudulent claims to Medicare.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.

Carmen Gonzalez, 39, of Cape Coral, Fla., worked at St. Jude Rehabilitation Center, a fraudulent HIV infusion clinic in Miami, that was controlled by her cousins, Jose, Carlos and Luis Benitez, aka the Benitez Brothers.  Gonzalez was also sentenced for failing to appear at a June 2008 bond hearing.   The sentencing follows her conviction at trial to one count of conspiracy to defraud the United States to cause the submission of false claims and to pay health care kickbacks and one count of conspiracy to commit health care fraud.   Gonzalez had previously pleaded guilty to a separate charge of failure to appear.

Gonzalez was sentenced by Chief United States District Judge Federico A. Moreno in Miami, who also sentenced her to serve three years of supervised release.

Evidence at trial revealed that Gonzalez was an unlicensed nurse who paid thousands of dollars over a five month period to HIV beneficiaries so that St. Jude could submit millions of dollars in false and fraudulent claims to Medicare.  Gonzalez knew that St. Jude billed millions of dollars to Medicare for expensive HIV infusion therapy that was neither medically necessary nor provided.   Gonzalez fabricated patient medical records to facilitate and conceal the fraud, and these fabricated records were utilized to support the false and fraudulent claims submitted to Medicare on behalf of St. Jude.

On Oct. 17, 2013, Gonzalez pleaded guilty to knowingly and willfully failing to appear at a June 2008 hearing as directed by Judge Moreno.   Court documents reveal that Gonzalez was released on bond pending trial, but she knowingly and willfully failed to appear as directed by the court to a June 2008 hearing.

In January 2013, Gonzalez’s father, Enrique Gonzalez, was sentenced to 70 months in prison by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida for his role in separate health care fraud conspiracy.

The Benitez Brothers remain fugitives.   Anyone with information regarding their whereabouts is urged to contact HHS-OIG at 202-619-0088.

The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida.   This case was prosecuted by Trial Attorneys Allan Medina and Nathan Dimock of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion.   In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

CONSUMERS TO RECEIVE REFUND CHECKS FOR CERTAIN "COLON CLEANSER" PURCHASES

FROM:  U.S. FEDERAL TRADE COMMISSION 
FTC Sends Refund Checks Totaling nearly $6 Million to Consumers Who Bought Dietary Supplements

An administrator working for the Federal Trade Commission is mailing 316,716 checks averaging $18.74 each to consumers who purchased acai berry supplements, “colon cleansers,” and other products from Phoenix-based Central Coast Nutraceuticals, Inc.

In August 2010, the FTC charged Central Coast Nutraceuticals, two individuals, and four related companies with multiple violations, including unfair billing practices, and deceptively advertising Acai Pure, an acai berry supplement, as a weight-loss product, and Colotox, a colon cleansing supplement, as an aid for preventing cancer.

The checks, which total $5,936,243.63, must be cashed within 60 days after they are issued.  The deadline for filing a refund request has expired.  Consumers who have questions should call (877) 283-6531.  For more general information, see www.FTC.gov/refunds.  The FTC never requires consumers to pay money or provide information before redress checks can be cashed.

Consumers should carefully evaluate advertising claims for dietary supplements.  For more information see:  Dietary Supplements.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

NATIONAL GUARD COLONEL AND SERGEANT INDICTED FOR ALLEGED RECRUITMENT FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, December 20, 2013
Army National Guard Colonel and Sergeant Indicted for Allegedly Defrauding Recruiting Assistance Program

A retired colonel and a sergeant in the Army National Guard have been charged in a nine-count indictment in Albuquerque, N.M., for allegedly defrauding the National Guard Bureau and its contractor of approximately $12,000 by fraudulently obtaining recruiting bonuses, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.

Retired Colonel Isaac Alvarado, 74, of Albuquerque, N.M. was charged with one count of conspiracy to commit wire fraud, four counts of wire fraud and four counts of aggravated identity theft in an indictment that was filed this week in the U.S. District Court for the District of New Mexico.   Sergeant First Class Travis Nau, 40, also of Albuquerque, N.M., was charged with one count of conspiracy to commit wire fraud, three counts of wire fraud and three counts of aggravated identity theft.

According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. to administer the Guard Recruiting Assistance Program (G-RAP).   The G-RAP was a recruiting program that was designed to offer monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard.   Through this program, a participating soldier could receive bonus payments for referring another individual to join.   Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account.   To participate in the program, soldiers were required to create online recruiting assistant accounts.   The rules prohibited Army National Guard recruiters from participating in the G-RAP.

According to court documents, between approximately November 2007 and February 2012, Alvarado participated as a recruiting assistant in the G-RAP.   Nau, who worked in a recruiting office and is Alvarado’s son-in-law, allegedly provided Alvarado with the names and Social Security numbers of potential soldiers.   This enabled Alvarado to claim that he was responsible for referring these potential soldiers to join the military, when in fact he did not recruit any of them.   In addition, Nau advised at least two potential soldiers to falsely report that Alvarado had assisted in their recruitment even though he had not.   As a result, Alvarado allegedly received a total of approximately $12,000 in fraudulent recruiting bonuses.

An indictment is merely a charge and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

If convicted, the defendants face up to five years in prison on the conspiracy count.   Each wire fraud count carries a maximum penalty of 20 years in prison.   Each count of aggravated identity theft carries a mandatory two-year sentence in prison.   Each charged count carries a maximum fine of up to $250,000, or twice the gross gain.

The case is being investigated by special agents from the Fort Bliss Army Criminal Investigation Command.   The case is being prosecuted by Trial Attorneys Sean F. Mulryne, Mark J. Cipolletti and Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section.

PIKAS SURVIVE THE HEAT BY EATING MOSS

Photo:  Pika  Credit:  Jacob W. Frank, Wikimedia Commons
FROM:  NATIONAL SCIENCE FOUNDATION 
Mountain pikas, relatives of rabbits, survive at warm sea-level temperatures by eating mosses

In some mountain ranges, Earth's warming climate drives rabbit relatives known as pikas to higher elevations--or wipes them out.

But biologists discovered that pikas living in rockslides near sea level in Oregon can survive hot weather by eating moss.

"Pikas eat foods like moss to persist in warming environments," says biologist Denise Dearing of the University of Utah, co-author of a new paper reporting the results. The paper is published online today in the Journal of Mammalogy.

Jo Varner, also a biologist at the University of Utah and a paper co-author, says that although "some fiber is good, moss is 80 percent fiber. It's a bit like eating paper.

"By consuming mosses that grow on the rockslides where they live, the pikas don't have to forage outside the shady heat-buffer of the rocks.

"Few herbivores consume moss because it's so nutritionally deficient. These pikas set a new record for moss in a mammal's diet: 60 percent."

Pikas' extensive moss-eating "suggests that they may be more resistant to climate change than we thought," says Dearing.

The biologists, whose research was funded by the National Science Foundation (NSF), believe they know why.

Like rabbits and hares, pikas produce a fraction of their feces in the form of caecal (pronounced see-cull) pellets, and reingest them to gain nutrition.

"Pikas and rabbits--and their gut microbes--are the ultimate recycling factory," Dearing says. "They ingest low-quality food over and over again, and turn it into high-quality protein and energy. The end product is six times more nutritious than the moss" that started it all.

The order Lagomorpha, to which pikas belong, has two families: one is made up of rabbits and hares, the other of pikas.

Pikas are native to cold, alpine climates--often above 8,200 feet--in North America, Asia and Eastern Europe.

Pikas are very sensitive to heat, dying if they spend more than two hours above 78 degrees Fahrenheit.

In parts of the West--including Nevada, Oregon and Colorado--pikas have gone extinct in some mountain ranges and moved to higher peaks in others.

Pikas live as high as 11,230 feet on the slopes of Mount Hood east of Portland, Ore. They also live thousands of feet down the north slope of Mount Hood in the wet, foggy Columbia River Gorge.

How do they exist in warmer places like the gorge? By living in rocks on moss-covered slopes, the researchers found.

The scientists conducted their study on two such slopes near Wyeth, Ore., from June through August, 2011 and 2012. Pikas are most active in the summer months.

The biologists surveyed the abundance of mosses, lichens, ferns, grasses, sedges, rushes, forbs, shrubs and trees in the rockslides. They found that the slopes were 60 percent to 70 percent covered by vegetation.

Samples of the pikas' food were analyzed for how much the animals ate, and for the food's nutrition and fiber content.

Sixty percent of the pikas' diet by dry weight came from mosses. The pikas favored two species: hoary rock moss and big red-stem moss.

"This study represents the highest degree of voluntary moss consumption reported for a mammalian herbivore in the wild," Dearing and Varner write in their paper.

For temperature-sensitive pikas, cool, green mosses--whether atop a mountain or at the bottom of a gorge--are life-rings.

The research was also funded by the University of Utah, Wilderness Society, Southwestern Association of Naturalists, Society for Integrative and Comparative Biology, and American Society of Mammalogists.

-NSF-

Sunday, December 22, 2013

U.S. CONDEMNS ATTACKS IN IRAQ

FROM:  U.S. STATE DEPARTMENT 
U.S. Condemns Attacks and Pledges to Support Iraq in the Fight Against ISIL
Press Statement
Jen Psaki
Department Spokesperson
Washington, DC
December 22, 2013

The United States condemns the recent attacks by the Islamic State of Iraq and the Levant (ISIL) against Iraqi soldiers, elected officials, civilians, and military commanders. ISIL, a branch of al-Qa'ida, is a common enemy of the United States and the Republic of Iraq, and a threat to the greater Middle East region.

The Strategic Framework Agreement between our two countries provides the basis for long-term security cooperation, and we remain committed to helping strengthen Iraqi forces in their ongoing fight against ISIL. We also note the unanimous condemnation of the attacks yesterday by Iraqi officials, including the Prime Minister and the Speaker of the Council of Representatives, as well as the detention in recent days of al-Qa'ida affiliated militants in the Iraqi Kurdistan Region.

We will continue to work with all Iraqi leaders to promote political progress and isolate violent extremist networks. We further call on regional leaders to take active measures to police the funding and recruitment for these groups, including ISIL and the al-Nusrah front, and deter the flow of foreign fighters into Syria, many of whom later conduct suicide bombings against innocent civilians in Iraq.

The United States mourns the loss of life in recent days, and we wish a speedy recovery to the wounded. We also stand with the Iraqi Security Forces, civilian leaders, tribes, and local councils, in their fight against terrorists who are seeking to gain control of territory inside the borders of Iraq. By working together, we will ensure these terrorists cannot succeed.

U.S. CONDEMNS BUS BOMBING IN ISRAEL

FROM:  U.S. STATE DEPARTMENT 

Bombing of Bus in Israel


Press Statement
Jen Psaki
Department Spokesperson
Washington, DC
December 22, 2013


We strongly condemn the bombing of a bus near Tel Aviv today. Our thoughts are with those affected and with the Israeli people at this time. Violent acts targeting civilians are deplorable. We reaffirm our unshakable bond with Israel and our solidarity with the Israeli people.

LOOK BENEATH THE SURFACE: ADDRESS THE ISSUES

PATIENT RECRUITER SENTENCED FOR ROLE IN $7 MILLION HEALTH CARE FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, December 20, 2013
Patient Recruiter and Therapy Staffing Company Owner Sentenced for Roles in $7 Million Health Care Fraud Scheme

A patient recruiter and a therapy staffing company owner were sentenced today to serve 50 months and 46 months in prison, respectively, for their participation in a $7 million health care fraud scheme involving defunct home health care company Anna Nursing Services Corp.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.

Ivan Alejo, 48, and Hugo Morales, 37, both of Miami, were sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida.   In addition to their prison terms, Alejo and Morales were both sentenced to serve three years of supervised release.   Alejo and Morales were also ordered to pay jointly and severally with their co-defendants $6,928,931 and $1,958,279, respectively, in restitution.

In August 2013, Alejo and Morales pleaded guilty before Judge Martinez to conspiracy to commit health care fraud.

Alejo worked as a patient recruiter at Anna Nursing, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.   Morales owned a therapy staffing company, Professionals Therapy Staffing Services Inc., which provided therapists to Anna Nursing.

According to court documents, co-conspirators of Alejo and Morales operated Anna Nursing for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or not provided.

Alejo’s primary role in the scheme at Anna Nursing involved negotiating and paying kickbacks and bribes, interacting with patient recruiters and assisting in the submission of fraudulent claims to the Medicare program.   Alejo and his co-conspirators would pay kickbacks and bribes to patient recruiters in return for the recruiters providing patients to Anna Nursing for home health and therapy services that were medically unnecessary and/or not provided.   Alejo and his co-conspirators would pay kickbacks and bribes to co-conspirators in doctors’ offices and clinics in exchange for home health and therapy prescriptions, medical certifications and other documentation.   Alejo and his co-conspirators would use the prescriptions, medical certifications and other documentation to fraudulently bill the Medicare program for home health care services, which Alejo knew was in violation of federal criminal laws.

Morales’s primary role in the scheme at Anna Nursing involved operating Professionals Therapy, where he and others created fictitious progress notes and other patient files indicating that therapists from Professionals Therapy had provided physical or occupational therapy services to particular Medicare beneficiaries, when in many instances those services had not been provided and/or were not medically necessary.   Morales knew the documents he and others from Professionals Therapy falsified were used to support false claims for home health care services billed to Medicare by his co-conspirators at Anna Nursing, which Morales knew was in violation of federal criminal laws.

From approximately October 2010 through approximately April 2013, Anna Nursing was paid by Medicare approximately $7 million for fraudulent claims for home health care services that were not medically necessary and/or not provided.

The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.   This case was prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion.   In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers

INTERNATIONAL ARMS SMUGGLER SENT TO PRISON FOR 180 MONTHS

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, December 19, 2013
International Arms Smuggler Sentenced to 180 Months in Prison

Siarhei Baltutski, aka Sergey Boltutskiy, 41, of Minsk, Belarus, was sentenced today to serve 180 months in prison for conspiracy to violate the Arms Export Control Act, conspiracy to violate the International Emergency Economic Powers Act and conspiracy to commit money laundering.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting Assistant Attorney General John Carlin of the Justice Department’s National Security Division and U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania made the announcement.

Baltutski pleaded guilty on Jan. 25, 2013.  In addition to the prison term, U.S. District Court Judge Paul S. Diamond of the Eastern District of Pennsylvania ordered Baltutski to serve three years of supervised release.

Between Jan. 1, 2008, and Sept. 21, 2011, Baltutski organized a network of buyers in the United States to obtain and illegally export to Belarus high-tech military hardware such as Scorpion Thermal Weapon Sights, ThOR 2 Thermal Imaging Scopes, Thermal-Eye Renegade 320’s, and other night vision targeting devices.  During the course of the conspiracy, Baltutski and his associates illegally exported hundreds of these items.  Baltutski then arranged for hundreds of thousands of dollars to be secretly wired, via offshore shell companies, to purchase these items, to pay for shipping, and to pay his network of buyers.

The Arms Export Control Act and the International Emergency Economic Power Act prohibit the export of high-tech military technology.  Keeping this technology out of the hands of current and potential adversaries is critical to national interest and the safety and success of U.S. service members in combat.

This case was investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations and the FBI.  The case was prosecuted by Trial Attorney Jerome Maiatico of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Robert Livermore of the Eastern District of Pennsylvania, with assistance from Trial Attorney David Recker of the National Security Division’s Counterespionage Section.

REMEMBRANCE: PAN AM FLIGHT 103 25TH BOMBING ANNIVERSARY

FROM:  U.S. JUSTICE DEPARTMENT 
Attorney General Eric Holder Delivers Remarks at the Memorial Service Marking the 25th Anniversary of the Bombing of Pan Am Flight 103
Arlington, Va. ~ Saturday, December 21, 2013

Thank you, Frank [Duggan], for those kind words – and for your many years of service, and leadership, alongside your fellow members of Families of the Victims of Pan Am Flight 103.

I’d also like to recognize just a few of the many dedicated public servants who are here today, including former FBI Director Bob Mueller, who has been involved with this case since he led the Justice Department’s Criminal Division more than two decades ago; Brian Murtagh, a tenacious former Justice Department prosecutor who worked tirelessly on this case for over 20 years; and U.S. Attorney Rick Hartunian, of the Northern District of New York, whose sister was aboard Flight 103 on that fateful night – and who became an original member of the victims group that called for a presidential commission on airport security.   I know that Rick’s mother Joanne and his sister Patricia – and their families – are among the many family members in this crowd today.   And I consider it an honor to join you all, once again, for this important annual remembrance.

Although a quarter century has passed since the world was shaken – and so many lives were devastated – by a heinous and cowardly act of terror, no amount of distance or time can ease the pain, or erase the loss, that was inflicted on that day.   Even now, it remains difficult to comprehend the magnitude of such a senseless crime – which claimed the lives of 259 innocent men, women, and children in the skies above Scotland, along with the lives of 11 residents of the peaceful town of Lockerbie.

Some of the victims were traveling to the United States for the very first time.   Some were enjoying quiet evenings with their families.   Some were on their way to visit friends and relatives.   Some were simply trying to come home.   And although their respective journeys, and their individual lives, were cut tragically short – all continue to be dearly loved, and deeply missed, by everyone who knew them – and especially by those who come together on this patch of hallowed ground each year to pay tribute to the lives that were stolen – and to heal those that were irreparably changed.

We will always remember the heartache, the devastation, and the pain that was etched into our collective memory on the 21st of December, 1988.   But we also recall, as we gather each year, the tremendous generosity of the Scottish people – and particularly the people of Lockerbie – who, despite their own losses, opened their homes to the families of victims who streamed into that small town from around the world in the days after the bombing.   In the midst of their anguish, these generous men and women gave what comfort they could offer, and shared what solace they could provide.

We recall the determination that animated families and victim advocates who joined together to seek answers and understanding.   Some of these passionate individuals, including many of the current and former FBI agents, Justice Department prosecutors, and other officials who are with us today, have selflessly defined the quest for justice in the aftermath of this crime as their life’s work.

But more than anything – as we assemble in this place of remembrance, year after year – we recall the moments of unity, and of love, that have arisen from the grief we share.   We remember the occasions that have brought this community together not only in mourning, but in search of healing and hope – and in celebration of the extraordinary lives that bind us together.

We keep calling for change, and fighting for justice, on behalf of those no longer with us.   We rededicate ourselves – and our nation – to the qualities that defined the men and women we lost.   And we continue to be drawn together every year on this date:   faces old and new, friends long departed and members of fresh generations – including some who bear the names of absent loved ones – to lend our voices to this solemn memorial.   To hear stories and exchange joyous memories.   And to be part of the community that – a quarter century after that terrible day – is still striving to build, from an act of unspeakable evil, a lasting legacy of compassion, of fellowship, and of love.

Today, this legacy is all around us – and it is very much alive.   It lives in the resolve that brings us together and pushes us forward each day.   It persists in our unfinished but ongoing work to see that justice is done, and to ensure that those who commit acts of terror are held accountable to the fullest extent of the law.   And it endures in our determination to secure a brighter future for ourselves and our fellow citizens – a future that is free from the hatred, and the senseless destruction, that has touched your lives and far too many others.

May our continuing efforts serve as a fitting monument to those who were taken from us 25 years ago.   May we never tire in our work to forge a society, and a world, that are worthy of the empathy and grace that unites this remarkable group.   And may God bless the memories of those we’ve lost; the cause of justice we are humbled to serve; and the great nation that will forever hold the victims of Pan Am 103, and each of their loving families, in our hearts.

Thank you all.

NASA RELEASES COLORFUL STILL IMAGE OF THE SUN

FROM:  NASA 

This still image was taken from a new NASA movie of the sun based on data from NASA's Solar Dynamics Observatory, or SDO, showing the wide range of wavelengths – invisible to the naked eye – that the telescope can view. SDO converts the wavelengths into an image humans can see, and the light is colorized into a rainbow of colors. Yellow light of 5800 Angstroms, for example, generally emanates from material of about 10,000 degrees F (5700 degrees C), which represents the surface of the sun. Extreme ultraviolet light of 94 Angstroms, which is typically colorized in green in SDO images, comes from atoms that are about 11 million degrees F (6,300,000 degrees C) and is a good wavelength for looking at solar flares, which can reach such high temperatures. By examining pictures of the sun in a variety of wavelengths – as is done not only by SDO, but also by NASA's Interface Region Imaging Spectrograph, NASA's Solar Terrestrial Relations Observatory and the European Space Agency/NASA Solar and Heliospheric Observatory -- scientists can track how particles and heat move through the sun's atmosphere.  Jewel Box Sun Image Credit: NASA Goddard Space Flight Center

SECRETARY OF LABOR PEREZ, OTHER OFFICIALS MEET WITH LABOR COMMITTEE OVER TRADE NEGOTIATIONS AND POLICY

FROM:  U.S. LABOR DEPARTMENT 
Global Competition on the Table at Trade Policy Meeting

 Secretary of Labor Thomas E. Perez (center), joined by U.S. Trade Representative, Ambassador Michael Froman (left) and Carol Pier, deputy undersecretary of labor for the Bureau of International Labor Affairs meet with representatives of the Labor Advisory Committee for Trade Negotiations and Trade Policy on December 16, 2013.

Secretary Perez, along with U.S. Trade Representative Michael Froman, co-hosted a meeting of the Labor Advisory Committee for Trade Negotiations and Trade Policy on Dec. 16. During the meeting, Perez and Froman met with the members of the LAC and participated in a lively and frank exchange of views on current international trade policies and issues affecting the labor community. Perez's message focused on the department's efforts to prepare the nation's workforce to meet the challenges of global competition, ensure a more level playing field for U.S. workers by enforcing labor obligations under our trade agreements, and increase U.S. jobs by opening foreign markets to U.S. exports. The LAC is part of the U.S. international trade policy advisory committee structure. Its purpose is to reflect the voice and advice of organized labor on U.S. trade policy and trade negotiation objectives and advise the administration on issues related to current U.S. trade

EXPORT-IMPORT BANK REPORTS RECORD YEAR FOR SMALL BUSINESS EXPORT FINANCING

FROM:  EXPORT-IMPORT BANK
Ex-Im Bank Annual Report Outlines Record Year for Small Businesses 
$27 Billion in Export Financing Supported More than 200,000 U.S. Jobs

Washington D.C. – Today the Export-Import Bank of the United States (Ex-Im Bank) released its Fiscal Year 2013 Annual Report highlighting its approval of more than $27 billion in authorizations that supported an estimated 205,000 American jobs. The Bank also approved more than 3,400 small-business authorizations, a new record.

“I am proud to announce that nearly 90 percent of the Bank’s transactions in FY 13 were for small businesses – an all-time high,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “Ex-Im Bank employees have done a remarkable job of ensuring that American entrepreneurs have the tools they need to succeed in international markets. Whether it’s providing export-credit insurance to first-time exporters or working-capital guarantees to returning customers, Ex-Im Bank will continue to fulfill its mission of creating U.S. jobs.”

Among the highlights from the 2013 Annual Report:

* Ex-Im financing created or supported an estimated 205,000 export-related U.S. jobs.

* In the last five years (FY 09 to FY 13), Ex-Im Bank has assisted in financing more than $188 billion of U.S. exports and supported 1.2 million American jobs.

* In FY 13, Ex-Im Bank authorized financing for a record high 3,842 export transactions, which totaled an estimated export value of $37.4 billion.

* In FY 13, Ex-Im Bank approved 3,413 small-business authorizations – an all-time high.

* Non-aircraft manufacturing was the industry with the highest authorized amount at $8.5 billion, surpassing aircraft for the first time since 1997.

* Approximately one in five transactions involved women- or minority-owned small businesses.

4 SERVICE MEMBERS INJURED AFTER COMING UNDER FIRE IN SOUTH SUDAN

FROM:  U.S. DEFENSE DEPARTMENT SOUTH SUDAN 
Ground Fire Injures 4 U.S. Troops in South Sudan
American Forces Press Service

WASHINGTON, Dec. 21, 2013 – Four U.S. service members were injured today when their aircraft came under ground fire in South Sudan during a mission to evacuate American citizens in Bor, according to a statement issued by U.S. Africa Command.

The updated Africom statement reads as follows:
“At the request of the Department of State, the United States Africa Command, utilizing forces from Combined Joint Task Force-Horn of Africa (CJTF-HOA), attempted to evacuate U.S. citizens from the town of Bor, South Sudan, today.
“As the aircraft, three CV-22 Ospreys, were approaching the town they were fired on by small-arms fire by unknown forces. All three aircraft sustained damage during the engagement. Four service members onboard the aircraft were wounded during the engagement.

“The damaged aircraft diverted to Entebbe, Uganda, where the wounded were transferred onboard a U.S. Air Force C-17 and flown to Nairobi, Kenya, for medical treatment.

“All four service members were treated and are in stable condition.”
In Hawaii, President Barack Obama was updated on the status of the injured U.S. service members, according to a White House news release issued today. Obama directed his national security team to ensure the safety of U.S. military personnel in the region and to continue to work with the United Nations to evacuate American citizens from Bor.

This morning, following a meeting of his national security principals that was led by National Security Advisor Susan Rice, Obama participated in a secure call with Rice, Deputy National Security Advisor Tony Blinken, Deputy National Security Advisor Ben Rhodes, and Senior Director for African Affairs Grant Harris to update him on the situation in South Sudan, according to the White House release. The president, the release said, was briefed on the status of U.S. military personnel and the safety of U.S. citizens in Bor and U.S. personnel at the U.S. Embassy in Juba, South Sudan.

The president was pleased that the injured U.S. service members are in stable condition and he reaffirmed the importance of continuing to work with the United Nations to secure U.S. citizens in Bor, according to the White House release.
Obama underscored that South Sudan's leaders have a responsibility to support U.S. efforts to secure its personnel and citizens in Juba and Bor, the release said.
More broadly, Obama underscored the urgency of helping to support efforts to resolve the differences within South Sudan through dialogue, according to the White House release. South Sudan's leaders, the president said in the release, must know that continued violence will endanger the people of South Sudan and the hard-earned progress of independence. This conflict can only be resolved peacefully through negotiations. Any effort to seize power through the use of military force, the release said, will result in the end of longstanding support from the United States and the international community.

Obama expressed his deep appreciation for the work of U.S. military members and civilians who are operating in difficult circumstances in South Sudan and directed his team to continue to update him going forward, the White House release said.
South Sudan is currently experiencing turmoil that’s pitting the government against armed rebel groups. Secretary of State John F. Kerry said in a statement issued yesterday that it’s time “for South Sudan’s leaders to rein-in armed groups under their control, immediately cease attacks on civilians, and end the chain of retributive violence between different ethnic and political groups. The violence must stop, the dialogue must intensify.”

To help facilitate that effort, Kerry added, U.S. Special Envoy for Sudan and South Sudan, Ambassador Donald E. Booth, has been dispatched to the region.
Defense Secretary Chuck Hagel is keeping a close watch on the situation in South Sudan and is reviewing options, Pentagon Press Secretary Navy Adm. John Kirby said. Whatever action the Pentagon takes, it will be conducted in coordination with the State Department, Kirby added.

The United States recognized South Sudan as a sovereign, independent state on July 9, 2011 following its secession from Sudan, according to the U.S. State Department’s website. The United States played a key role in helping create the 2005 Comprehensive Peace Agreement that laid the groundwork for the 2011 independence referendum and secession.

Several disputes between Sudan and South Sudan remain unresolved post-independence, including the management of oil resources and the status of the Abyei region, according to the State Department website. The United States supports the efforts of the African Union High-Level Implementation Panel to help the parties work through these issues.

On Dec. 18, about 45 U.S. service members deployed to South Sudan to support the security of U.S. personnel and the U.S. Embassy, according to a Dec. 19 letter President Barack Obama wrote to the Speaker of the House of Representatives and the President Pro Tempore of the Senate.

The text of the president’s letter reads as follows:
“On December 18, 2013, approximately 45 U.S. Armed Forces personnel deployed to South Sudan to support the security of U.S. personnel and our Embassy. Although equipped for combat, this force was deployed for the purpose of protecting U.S. citizens and property. This force will remain in South Sudan until the security situation becomes such that it is no longer needed.

“This action has been directed consistent with my responsibility to protect U.S. citizens both at home and abroad, and in furtherance of U.S. national security and foreign policy interests, pursuant to my constitutional authority to conduct U.S. foreign relations and as Commander in Chief and Chief Executive.
“I am providing this report as part of my efforts to keep the Congress fully informed, consistent with the War Powers Resolution (Public Law 93-148). I appreciate the support of the Congress in these actions.”

In recent years, South Sudan “has made great progress toward breaking the cycle of violence that characterized much of its history,” Obama said in a separate statement issued Dec. 19.

Today, however, South Sudan’s “future is at risk,” Obama added. South Sudan, he said, now “stands at the precipice,” with recent fighting there threatening to plunge the country “back into the dark days of its past.”

Obama continued: “But it doesn’t have to be that way. South Sudan has a choice. Its leaders can end the violence and work to resolve tensions peacefully and democratically. Fighting to settle political scores or to destabilize the government must stop immediately. Inflammatory rhetoric and targeted violence must cease. All sides must listen to the wise counsel of their neighbors, commit to dialogue and take immediate steps to urge calm and support reconciliation.”
South Sudan’s leaders must “recognize that compromise with one’s political enemy is difficult, but recovering from unchecked violence and unleashed hatred will prove much harder,” the president said.

“Too much blood has been spilled and too many lives have been lost to allow South Sudan’s moment of hope and opportunity to slip from its grasp,” Obama said. “Now is the time for South Sudan’s leaders to show courage and leadership, to reaffirm their commitment to peace, to unity, and to a better future for their people. The United States will remain a steady partner of the South Sudanese people as they seek the security and prosperity they deserve.”

South Sudan is located on the eastern border of the Central African Republic. The United States established diplomatic relations with the Central African Republic in 1960, following its independence from France, according to Africom’s website. The C.A.R. is one of the world’s least developed nations, and has experienced several periods of political instability since independence.

The United States is deeply concerned about “the shocking and horrific atrocities that have been committed by government-affiliated armed groups and independent militias against innocent civilians in the Central African Republic” in recent weeks, a Pentagon spokesman told reporters Dec. 11.

In an audio message released Dec. 9, Obama called on the transitional C.A.R. government to arrest those who are committing crimes.

“Individuals who are engaging in violence must be held accountable -- in accordance with the law. Meanwhile, as forces from other African countries and France work to restore security, the United States will support their efforts to protect civilians,” Obama said.

On Dec. 10, the president authorized the State Department to use up to $60 million in defense services and articles for countries that contribute forces to the African Union-led International Support Mission in the Central African Republic. The assistance could include logistical support -- including strategic airlift and aerial refueling -- and training for French and African forces deploying to the Central African Republic.

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