BOSTON BOMBER FRIEND IS CONVICTED

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, October 28, 2014

Federal Jury Convicts Friend of Suspected Boston Marathon Bomber
Following an eight-day trial, the jury convicted a college friend of alleged Boston Marathon bomber, Dzhokhar Tsarnaev, for making false statements to investigators assigned to the FBI’s Joint Terrorism Task Force.

The jury found Robel Phillipos, 21, of Cambridge, Massachusetts, guilty of making false statements during the terrorism investigation of the Boston Marathon bombings on April 20, 2013, and April 25, 2013.  U.S. District Judge Douglas P. Woodlock scheduled sentencing for Jan. 29, 2015.

 “In the wake of one of the most significant events in this City’s modern history – an event which left two young women and a child dead, and many more injured – thousands of ordinary citizens assisted law enforcement in identifying and locating the perpetrators,” said U.S. Attorney Carmen Ortiz for the District of Massachusetts.  “Today, a federal jury concluded that Robel Phillipos did just the opposite.  He lied to agents when he could have helped.  He concealed when he could have assisted.  It is a crime to lie to law enforcement agents, and that is why Robel Phillipos was charged and why the jury found him guilty today.  But this case also reminds us that our public safety network relies on every citizen in the Commonwealth.  We look to all of our citizens – our neighbors, our friends, our colleagues, even strangers whom we have never met before – to assist law enforcement in detecting, preventing, and solving crimes.  Mr. Phillipos made a choice: a choice to lie instead of tell the truth.  With its verdict today, the jury got it exactly right.”

In August 2014, Dias Kadyrbayev pleaded guilty to obstruction of justice charges related to the Boston Marathon bombing investigation.  Kadyrbayev admitted to removing evidence from Tsarnaev’s dormitory room at University of Massachusetts Dartmouth and discarding Tsarnaev’s backpack with fireworks, some of which appeared to have been emptied of their explosive powder, in a garbage dumpster.  In July 2014, Azamat Tazhayakov was found guilty by a federal jury in Boston of obstruction of justice charges for his role in impeding the Boston Marathon bombing investigation.  His conduct was related to the same conduct as charged against Kadyrbayev that occurred in Tsarnaev’s dormitory room on the evening of April 18, 2013.  

At the Phillipos trial, the government proved that Phillipos lied about his knowledge and activities on the evening of April 18, 2013.  Specifically, Phillipos repeatedly lied to investigators when he denied that, on the evening of April 18, 2013, he entered Tsarnaev’s dormitory room and saw Kadyrbayev remove a backpack containing fireworks.

According to evidence presented at trial, at 7:00 p.m. on April 18, 2013, Phillipos saw the images released by the FBI of the two suspected bombers and immediately recognized one of them as Dzhokhar Tsarnaev.  At 10:00 p.m., Phillipos went with Tazhayakov to Tsarnaev’s dormitory room where he and Tazhayakov watched, as Kadyrbayev searched through Tsarnaev’s belongings and found a backpack containing fireworks.  When Kadyrbayev, Tazhayakov and Phillipos left Tsarnaev’s room at 10:30 p.m., Kadyrbayev removed Tsarnaev’s backpack containing fireworks, a jar of Vaseline, and Tsarnaev’s laptop computer.  Later that night while Tazhayakov and Phillipos were monitoring the manhunt for the Tsarnaevs on television, Kadyrbayev discussed getting rid of the backpack containing the fireworks with them.  Tazhayakov agreed with Kadyrbayev that they should get rid of it.  After this conversation, Kadrybayev placed Dzhokhar Tsarnaev’s backpack in a garbage bag and placed it in a dumpster outside their New Bedford apartment.  The FBI recovered the backpack a week later, after 30 agents spent two days searching a landfill in New Bedford.

Between April 19, 2013 and April 26, 2013, Phillipos was interviewed five times by investigators conducting the Boston Marathon bombing investigation and during each of those interviews Phillipos lied.  At the conclusion of the fifth interview, Phillipos finally admitted that he did go into Tsarnaev’s dormitory room on the evening of April 18, 2013 and that he saw Kadyrbayev remove evidence from Tsarnaev’s room.  After he confessed, Phillipos indicated he regretted his decisions.  In his signed statement, Phillipos stated: “In retrospect, I should have notified the Police once I knew Jahar was the bomber.  Further, I should have turned over the backpack to the authorities.”

The charging statute provides a sentence of no greater than eight years in prison for each of the two false statement counts, three years of supervised release, and a fine of $250,000 for each charge.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

The sentencing hearing for Kadyrbayev is scheduled for Nov. 18, 2014, and Tazhayakov’s sentencing is scheduled for Nov. 19, 2014.  

U.S. Attorney Ortiz and Special Agent in Charge Vincent B. Lisi of the Federal Bureau of Investigation’s Boston Field Division made the announcement today.  This investigation was conducted by the FBI's Boston Division and member agencies of the Boston Joint Terrorism Task Force (JTTF) which is comprised of more than 30 federal, state and local enforcement agencies.  Essex County Sheriff’s Office, U.S. Department of Transportation – Office of Inspector General, Massachusetts State Police, University of Massachusetts Dartmouth Department of Public Safety, New Bedford Police Department, Dartmouth Police Department, U.S. Treasury Inspector General for Tax Administration (TIGTA), Internal Revenue Service, Criminal Investigations, and Homeland Security Investigations in Boston provided assistance to this investigation.

The case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of U.S. Attorney Ortiz’s Anti-Terrorism and National Security Unit.

10/27/14: WHITE HOUE PRESS BRIEFING

NASA VIDEO: SPACE STATION SPACEWALK

U.S. MARINES AND U.K. SERVICE MEMBERS LEAVE HELMAND BASES IN HANDS OF AFGHAN FORCES

FROM:  U.S. DEFENSE DEPARTMENT

Left:  Marines and sailors with Marine Expeditionary Brigade Afghanistan load onto a KC-130 aircraft at Camp Bastion in Afghanistan’s Helmand province, Oct. 27, 2014. The Marine Corps ended its mission in Helmand province the day prior. U.S. Marine Corps photo by Staff Sgt. John Jackson.  

Marines, Brits Turn Over Helmand Bases to Afghan Forces
By Marine Corps 1st Lt. Skye Martin
Regional Command Southwest

HELMAND PROVINCE, Afghanistan, Oct. 27, 2014 – U.S. Marines and service members from the United Kingdom left Regional Command Southwest in Afghanistan’s Helmand province today, turning their facilities over to the Afghan security forces.

The lift-off followed a ceremony held at the former command post of Marine Expeditionary Brigade Afghanistan at Camp Leatherneck, signifying the transfer of Camps Bastion and Leatherneck to the control of the Afghan National Army’s 215th Corps.

Regional Command Southwest is the first of the International Security Assistance Force commands to transfer authority to the Afghan national security forces as ISAF moves toward the Resolute Support mission that begins in 2015.
During the past year, Bosnia, Estonia, Denmark, Georgia, Jordan and Tonga ended their operations in Regional Command Southwest.
‘A very, very tough area’

Army Gen. John F. Campbell, ISAF commander, acknowledged that Helmand has been a “very, very tough area,” and he expressed confidence in the Afghan forces. “We feel very confident with the Afghan security forces as they continue to grow in their capacity and they continue to work better between the police and the army," he said.

Above:  U.S. Marine Corps and British Royal Air Force helicopters fly in formation after departing Camp Bastion in Helmand Province, Afghanistan, Oct. 27, 2014. U.S. Marine Corps photo by Staff Sgt. John Jackson.

Army Lt. Gen. Joseph Anderson, commander of ISAF Joint Command, echoed that confidence. "We lift off confident in the Afghans’ ability to secure the region,” he said. “The mission has been complex, difficult and dangerous. Everyone has made tremendous sacrifices, but those sacrifices have not been in vain."

Marine Corps Brig. Gen. Daniel D. Yoo, commander of Marine Expeditionary Brigade Afghanistan, said today’s transfer is a sign of progress. “It's not about the coalition,” he said. “It is really about the Afghans and what they have achieved over the last 13 years. What they have done here is truly significant.”
The Marines, sailors and British service members flew to Kandahar Airfield after the ceremony and will return home in the coming weeks.

WHITE HOUSE FACT SHEET ON NEW ACTIONS TO STRENGTHEN U.S. MANUFACTURING

FROM:  THE WHITE HOUSE 

The White House

Office of the Press Secretary

For Immediate Release October 27, 2014

FACT SHEET: President Obama Announces New Actions to Further Strengthen U.S. Manufacturing

U.S. manufacturing is central to the foundation of our economy, and the U.S. manufacturing sector is as competitive as it has been in decades for new jobs and investment.  Since February 2010, U.S. manufacturing has added more than 700,000 jobs, the fastest pace of job growth since the 1990s.

Today, to continue to build on this momentum, the President will unveil new executive actions to strengthen U.S. advanced manufacturing, spur innovation, and continue to take steps to make the U.S. a magnet for new jobs and investment.  At an event this afternoon, the President will thank the Advanced Manufacturing Partnership (AMP) Steering Committee, a working group of the President’s Council of Advisors in Science and Technology, for their efforts to develop advanced manufacturing across the U.S.  The final AMP, Accelerating U.S. Advanced Manufacturing, is now available.

In response to an earlier report of the Advanced Manufacturing Partnership, which began in June 2011, the President has already launched four manufacturing innovation institutes with four more on the way; invested nearly $1 billion to upgrade our community colleges to train workers for advanced manufacturing jobs; expanded investments in applied research for emerging, cross-cutting manufacturing technologies; and launched a new initiative to deploy the talent of returning veterans to in-demand jobs, including in advanced manufacturing.

The final AMP report makes recommendations addressing three key pillars that support American manufacturing: 1) enabling innovation, 2) securing the talent pipeline, and 3) improving the business climate. The executive actions announced today align with the report’s recommendations by making investments in emerging, cross-cutting manufacturing technologies, training our workforce with the skills for middle-class jobs in manufacturing, and equipping small manufacturers to adopt cutting-edge technologies.

New Executive Actions to Strengthen Advanced Manufacturing in America

Enabling Innovation:

Investing More than $300 Million in Emerging Manufacturing Technologies Critical for U.S. Competitiveness:  The Departments of Defense, Energy, Agriculture and NASA are announcing more than $300 million in investments in three technologies the AMP identified as critical to U.S. competitiveness: advanced materials including composites and bio-based materials, advanced sensors for manufacturing, and digital manufacturing.

Spurring Innovation by Providing Manufacturers Access to New and Expanded State-of-the-art Facilities like those at our National labs:  The National Science Foundation, the Department of Energy, and NASA are taking steps to connect industry and universities on research and development and develop ‘technology testbeds’ within Federal research facilities where companies can design, prototype, and test a new product or process.

Securing the Talent Pipeline:

Expanding Effective Workforce Development Strategies through the $100 Million American Apprenticeships grant competition: This fall, the Department of Labor will launch a $100 Million American Apprenticeships Grant Competition to spur new apprenticeship models and scale effective ones in high-growth fields like advanced manufacturing.  AMP members Dow, Alcoa, and Siemens have launched apprenticeship pilots and a “how-to” guide for other employers looking to use apprenticeship as a proven training strategy.

Improving the Business Climate:

Launching New Tools and a Five-Year Initial Investment to Support Innovative Small Manufacturers in the Supply Chain:  Given the  innovation gap faced by small manufacturers, the Department of Commerce’s Manufacturing Extension Partnership, which serves over 30,000 U.S. manufacturers each year, will build new capabilities at its state-based centers and pilot a competition for $130M over five years across ten states to help small manufacturers adopt new technologies and bring new products to market.

Background on New Executive Actions to Strengthen American Manufacturing Enabling Innovation

Investing Over $300 Million in Emerging Manufacturing Technologies Critical for Sustaining U.S. Competitiveness: The Departments of Defense, Energy, and Agriculture and NASA are committing to invest over $300 million in three emerging manufacturing technologies including advanced materials like composites and bio-based materials, advanced sensors, and digital manufacturing. In its recommendations, the AMP report identified these technologies as critical for lasting U.S. competitiveness in advanced manufacturing. The Administration’s research investments, matched by private sector efforts and resources, will drive advances in manufacturing high-tech materials, like new steel alloys that are twice as strong and lighter than today, new processes to eliminate reliance on foreign supplies of critical materials, cut the time to test and prototype a design by half, and replace chemicals made using oil with those made from plants harvested on American farms.

Spurring Manufacturing Innovation by Reinforcing New Partnerships between Manufacturers and Universities, National Labs, and Manufacturing Centers of Excellence:  The National Science Foundation (NSF), the Department of Energy (DOE), and NASA will take new steps to support science and research capabilities that strengthen U.S. manufacturing competitiveness.

NSF will establish up to two new manufacturing centers of excellence in basic research, bringing together universities and industry to partner at the earliest stages of the manufacturing technology pipeline with a particular focus on advanced sensors for manufacturing and digital manufacturing, through its Industry and University Cooperative Research Center Program (IUCRC).
DOE will expand its efforts to provide small manufacturers with access to cutting-edge tools for technology demonstration by reaching more companies through new or expanded “technology testbeds.” An existing model for these efforts is the Manufacturing Demonstration Facility located at Oak Ridge National Laboratory, which has helped close to 150 small businesses access cutting edge manufacturing technologies and research this year alone.
NASA is expanding its efforts to engage industry and academia on advanced manufacturing topics central to the nation’s space mission through its National Center of Advanced Manufacturing, with a particular focus on manufacturing technologies that reduce the weight of materials during space flight.
Securing the Talent Pipeline

Expanding Effective Workforce Development Strategies through the $100 Million American Apprenticeships Grant Competition: AMP has highlighted apprenticeships as a highly effective strategy for manufacturing workforce development. This fall, the Department of Labor will launch a $100 Million American Apprenticeships Grant Competition to launch new apprenticeship models in high-growth fields like advanced manufacturing, align apprenticeships with pathways for further learning and career advancement, and scale apprenticeship models that work. Industry is already leading the way in exploring new models, and Dow, Alcoa, and Siemens have launched new apprenticeship pilots and developed a “how-to” guide for other employers looking to use apprenticeship as a proven training strategy.

Communicating the Value of Careers in Manufacturing to America’s Youth: This year‘s National Manufacturing Day, hosted by the Department of Commerce Manufacturing Extension Partnership and leading manufacturing industry associations, attracted more than 50,000 visitors to over 1,600 factories across the country to teach America’s youth about the good career opportunities in manufacturing, double the number of events in previous years. Next year, the Department of Commerce and its partners plan to further expand the number of Manufacturing Day events across the country and the number of people participating in Manufacturing Day. In addition, the Department of Education has begun developing a national campaign to promote the value of career and technical education.  The campaign will inform educators, students, and their families of the value of promising careers and education pathways in technical fields, like advanced manufacturing.
Improving the Business Climate

Launching New Tools and a Five-Year Initial Investment to Support Innovative Small Manufacturers in the Supply Chain: The National Institute of Standards and Technology Manufacturing Extension Partnership (NIST MEP), using its network of more than 50 centers and relationships with over 30,000 small manufacturers each year, will deploy new tools to help small manufacturers access advanced technologies, new markets, and growth capital. As part of a national Supply Chain Innovation initiative, these tools will help connect small manufacturers with testbeds housed at national research facilities to test new technologies, helping small manufacturers bring to market novel products and processes. In addition, NIST MEP is committed to providing greater flexibility and funding to its national network of locally-based centers, to allow them to use these new tools and others to better assist small firms in adopting new technologies and innovations. As an initial investment, NIST MEP is launching a $130 million pilot competition in ten states to give centers the flexibility to adopt supply chain innovation tools and build enhanced capabilities over five years.
Building on Progress:  The Administration’s Investments to Increase U.S. Competitiveness in Advanced Manufacturing

The Obama Administration has continued to make investments that directly support innovations in manufacturing, and we’ve made significant progress to date, supported by our ongoing work with AMP, making good on the President’s commitment in 2011 when he launched the AMP to create new partnerships between industry, academia, and government to spur U.S. advanced manufacturing competitiveness, including:

Reaching the halfway mark on the President’s original goal of 15 manufacturing institutes in the National Network for Manufacturing Innovation with more than $1 billion in Public-Private Investment to date supporting four manufacturing institutes open today and four more on the way.
Deploying nearly $1 billion to strengthen manufacturing curriculum at community colleges across the country to train America’s workforce through the TAA-CCCT fund, led by the Departments of Labor and Education.
Increasing Federal investments in advanced manufacturing research and development to nearly $2 billion supporting investments in major developments in advanced manufacturing, up over 34 percent from $1.4 billion in 2011.
Investing in energy efficiency to lower costs for manufacturers so that American manufactures have the opportunity and the imperative to lock in a competitive advantage in energy costs by implementing energy-saving technologies and practices.
The White House and the Department of Commerce recently released a Digital Tour of American Manufacturing, highlighting how our manufacturing sector is central to making America a magnet for good, middle-class jobs and for generating durable economic growth, both today and tomorrow.

Advanced Manufacturing Partnership Final Report

Beginning in October 2013, the AMP Steering Committee “2.0” – a council of 19 leading CEOs, labor leaders, and university presidents co-chaired by Andrew Liveris, CEO of Dow, and Dr. Rafael Reif, President of MIT - began working with the recognition that industry, academia, and government must work in partnership to revitalize our manufacturing sector. The AMP Steering Committee is a working group of the President’s Council of Advisers of Science and Technology (PCAST) and was initially launched in June 2011.  The initial findings and recommendations in the AMP "1.0" report released in July 2012 have already spurred action by both the Administration and by the manufacturing community.

Over the past year, the AMP Steering Committee has harnessed the energies and expertise of over 100 manufacturing industry and academic experts to identify opportunities and policies to strengthen U.S. advanced manufacturing. The final Advanced Manufacturing Partnership report released today, Accelerating U.S. Advanced Manufacturing, AMP makes recommendations addressing three key pillars:

Enabling Innovation – Recognizing that leadership in emerging technologies anchors advanced manufacturing in the U.S. ,AMP endorses increased technology coordination and investments in three priority technology areas – advanced materials, advanced sensors for manufacturing, and digital manufacturing – calling. The report s for a full pipeline approach spanning centers of excellence in basic manufacturing research, the continued creation of the National Network for Manufacturing Innovation for final mile development of advanced technologies, and technology testbeds to spur the adoption of these technologies on factory floors.

Securing the Talent Pipeline – Manufacturers continue to need highly-skilled workers to fill open jobs on factory floors. AMP, building on its playbooks for employers and colleges to replicate proven training models, like apprenticeship, calls for further investments in the creation of a national industry-recognized, competency-based system of workforce development. And, to change the image of manufacturing, a national effort to communicate the value of careers in manufacturing to the nation’s youth.

Improving the Business Climate – For the U.S. to compete in manufacturing, we must build the environment for main street and start-up manufacturers to scale and grow. AMP calls for building new intermediary services to help small manufacturers adopt new technologies and expand into new markets and calls for a public-private investment fund to help high tech manufacturing start-ups scale from pilots and prototypes into full scale U.S. commercial production, ensuring what is invented here can be made here.

AG HOLDER'S REMARKS AT INTERNATIONAL ASSOCIATION OF CHIEFS OF POLICE CONFERENCE

FROM:  U.S. JUSTICE DEPARTMENT 

Remarks by Attorney General Holder at the International Association of Chiefs of Police Annual Conference

Orlando, FLUnited States ~ Monday, October 27, 2014

Remarks as Prepared for Delivery

Thank you, Chief [Yost] Zakhary, for that introduction; for your leadership as President of the International Association of Chiefs of Police; and for your dedicated service to the people of Woodway, Texas – as Police Chief, as City Manager, and as Public Safety Director – for over three decades.

It’s a pleasure to join you here in Orlando today.  And it’s a tremendous privilege, as always, to stand with so many distinguished law enforcement leaders.  I’d like to thank the IACP’s Board of Directors – and every one of your members – for inviting me to take part, once again, in this important annual conference, as we confront a range of evolving challenges and reaffirm our shared commitment to honoring all who wear the badge.

Over the course of my career in public service – and especially during my tenure as Attorney General – I have been fortunate to work closely with many of the leaders in this room, and with your colleagues across the country, to address urgent and emerging threats; to improve our collective ability to protect the communities we serve; to secure the resources we need to keep our officers safe; and to ensure that America’s criminal justice system is as fair – and as effective – as possible.

It has been among the greatest honors of my career to count you as colleagues, as partners, and as friends in advancing this important work.  For over 120 years, the IACP and its members have stood on the front lines of America’s struggle against crime, violence, and victimization.  You have been keepers of a sacred public trust, and stewards of a proud tradition of service, that predates our Republic.  And especially in recent years – in the face of sequestration, government shutdown, and other unprecedented difficulties – you have repeatedly proven the power of cooperation and collaboration across jurisdictions and even international borders, speaking out for the physical and mental health of those brave few who wear the badge – and risk their lives – to keep their communities safe.

We gather today at an auspicious moment.  Thanks to your leadership – and the extraordinary valor of every one of our officers on the street – the past two decades have been defined by dramatic reductions in criminal activity.  As you know, the rate of violent crime that was reported to the FBI in 2012 was about half the rate reported in 1993.  It has declined by more than 11 percent just since President Obama took office.  And the rate of incarceration has gone down by more than 8 percent over the same brief period – the very first time these two critical markers have declined together in more than 40 years.

This signal achievement owes a great deal to the courage, and the profound sacrifices, of our men and women in law enforcement – each of whom shoulders tremendous burdens, at great personal risk, in order that others might live safe and free.  As we come together here in Orlando, we must bear in mind just how challenging – and how often thankless – their vital work can be.  We have a great deal of work to do when it comes to increasing support for law enforcement officials and their families; forging close bonds of trust between our officers and the communities they serve; and overcoming the mistrust and misunderstanding that some people bring to interactions with the police – and that some officers may bring to interactions with certain communities.

But as we open a new chapter in this important conversation, we must never lose sight of the immense and unyielding difficulties that are inherent in the law enforcement profession – from the dangers these brave men and women face every time they put on their uniforms, to the split-second decisions they often must make, to the anguish of family members who awaken at night to the sound of a ringing telephone –hoping for the best, but fearing tragic news about a loved one out patrolling the streets.

As our nation’s Attorney General, I have always been proud – and steadfast – in my support for law enforcement personnel and their families, who make tremendous and often unheralded sacrifices every single day to keep us safe.  These sacrifices are too often overlooked.  And I believe we do ourselves, our communities, and our nation a grave disservice if we ignore these difficulties – just as we do ourselves a disservice if we dismiss, or fail to address, the conditions and lingering tensions that exist just beneath the surface in so many places across the country – and that were brought to the surface, and raised to the urgent attention of this group and others, by this summer’s events in Ferguson, Missouri.

As law enforcement leaders, it is incumbent upon each of us to take constructive, inclusive steps to rebuild trust and instill respect for the rule of law in all of the communities where these tensions are uncovered.  This is something that our new Acting Assistant Attorney General for the Civil Rights Division, Vanita Gupta – who’s here with us today – understands well.  She recognizes, as we all do, that this is best accomplished through a collaborative process with law enforcement, with the proactive leadership of OJP and the COPS Office, under Karol Mason and Ron Davis.  We are all committed to standing with you in the effort to build trust.  And fortunately, thanks to robust partnerships that bind the Department of Justice to the IACP – and the innovative work of so many of the chiefs who are here in Orlando today – together, we are making great strides to do just that.

As a result of the leadership that so many local police are providing – and the Justice Department-led reform efforts that are underway in St. Louis County and elsewhere – we are making this effort a focused, national priority.  The Justice Department has launched a substantial new program – known as the National Initiative for Building Community Trust and Justice – to enhance procedural justice, to reduce implicit bias, and to support racial reconciliation.  Through this and other programs – as in our regular interactions with exemplary law enforcement executives like you – my colleagues and I are doing important work to see that tensions are addressed, rather than swept under the rug; to build dialogue and bridge longstanding divides; and to ensure fair treatment for everyone who comes into contact with police – while enhancing citizen compliance with law enforcement authorities.

At its core, this is about far more than addressing the issues highlighted by the intense public response to events in Ferguson.  It’s about practicing sound and effective law enforcement.  That’s why, under the leadership of our COPS Office, the Justice Department is working with the IACP and others to conduct a broad review of policing tactics, techniques, and training –so we can help the field swiftly confront emerging threats, better address persistent challenges, and thoroughly examine the latest tools and technologies to enhance the safety, and the effectiveness, of law enforcement.

Going forward, I will support not only continuing this targeted review, but expanding it – to consider the profession in a comprehensive way – and to provide strong, national direction on a scale not seen since President Lyndon Johnson’s Commission on Law Enforcement nearly half a century ago.

After all, we’ve come to understand over the years that – when people have faith in the integrity of the process – they are more likely to cooperate with local authorities and obey the law, even if they disagree with particular outcomes.  And that’s why our COPS Office has invested more than $14 billion to keep our streets and communities safer through community policing – funding over 126,000 officers; awarding approximately 39,000 grants to state, local, tribal, and territorial law enforcement agencies; and training more than 700,000 law enforcement personnel, community members, and government leaders.

In September, I announced a new round of investments in this work – in the form of nearly $124 million in grants under the COPS Hiring Program.  This important funding will support the hiring and retention of 944 officers at 215 agencies and municipalities around the country.  And the impact of these grants will extend far beyond the creation and preservation of law enforcement jobs – helping to strengthen relationships between these officers and the communities they serve, to improve public safety, and to keep more officers on the streets.

This has the potential to make a profound, positive difference in the lives of millions of people.  But it’s only the beginning.

Through our highly successful Byrne Justice Assistance Grants – or Byrne-JAG – the Bureau of Justice Assistance, a part of our Office of Justice Programs, has awarded nearly $290 million in funding to 56 states and territories, and more than 1,000 local jurisdictions, during the last fiscal year alone.  These resources are helping to spur innovation and drive evidence-based policing in countless communities.  And thanks to initiatives like VALOR, which has trained more than 15,000 officers at over 110 training events – and ALERRT, our active shooter response training partner through VALOR, which has trained over 50,000 officers – we’re making good on our commitment not only to ensure success, but to promote safety, among law enforcement professionals throughout America.

By helping to prevent violence, to improve officer resilience, and to increase survivability during violent encounters – including ambushes and active shooter situations – the Justice Department is empowering our local, state, and tribal partners.  And under our Bulletproof Vest Partnership Program, we’re also helping to provide access to the lifesaving equipment that they need to stay safe.

Since we launched this important program in 1999, the Department has awarded more than $390 million toward the purchase of over 1.1 million bulletproof vests.  In 2013 and 2014 alone, protective vests saved the lives of at least 31 law enforcement and corrections officers.  And three of their vests were purchased, in part, with BVP funds.

Beyond these efforts, the Justice Department is striving to expand access to the tools our law enforcement officials need to counter a wide range of evolving public safety threats, from human trafficking to opioid addiction.  I’m pleased that a new e-Guide – available from our Office for Victims of Crime – gives law enforcement and victim service providers the information and insights they need to respond effectively to crimes involving forced sex and labor.  This updated resource will help strengthen anti-human trafficking task forces now in operation across the country.

And as we face down the growing threat posed by addiction to heroin and other opioids – including prescription painkillers – I’m proud to announce that the Justice Department is rolling out a new online toolkit to help law enforcement professionals respond to drug overdose emergencies both safely and effectively.

Because local police officers are often the first to arrive on the scenes of these overdoses, it is absolutely critical that we equip them to respond appropriately.  As you know, naloxone – also known as Narcan – is a fast-acting drug that’s extremely effective at restoring breathing to a victim in the midst of a heroin or other opioid overdose.  In recent months, I have begun urging local law enforcement authorities to equip their officers with naloxone.  I’ve directed federal law enforcement agencies under the authority of the Justice Department to review their policies to determine whether their personnel should also be equipped with this potentially-lifesaving remedy – just as ATF Special Response Team medics have been for some time now.  And in the course of my regular interactions with leaders like you, I’ve heard a number of requests to offer new information and assistance to public safety professionals who carry this drug.

In response, we’ve assembled new online toolkit, comprising over 80 resources from 30 contributing law enforcement and public health agencies.  This naloxone toolkit is available today on the Bureau of Justice Assistance’s website.  And I encourage you all to take full advantage of the information it provides.

Coupled with the targeted reforms we’ve made under the “Smart on Crime” initiative I announced last year, I am confident that these efforts will save and improve lives while conserving precious resources.  As you know as well as anyone, we must never – and we will never – stop being vigilant against crime, or the conditions and choices that breed it.  But investing in effective prevention, treatment, and rehabilitation; ensuring that incarceration is used appropriately – and reserving the toughest penalties for serious, violent, or high-level traffickers – can only serve to strengthen our criminal justice system as a whole.

Now, I know there are some who have suggested that recent changes in charging and sentencing policies might somehow undermine our ability – at the federal level – to induce cooperation from defendants in certain cases.  But – as I know from experience, and as so many of the seasoned law enforcement leaders in this room surely recognize – the reality is that these concerns are overstated.

Defendant cooperation depends on the certainty of swift and fair punishment, not on the length of a mandatory minimum sentence.  Like anyone old enough to remember the era before sentencing guidelines existed and mandatory minimums took effect, I can testify to the fact that federal guidelines attempted to systematize the kinds of negotiations that were naturally taking place anyway.  Far from impeding the work of federal prosecutors, the sentencing reforms I’ve mandated have strengthened their discretion.  And the belief that cooperation is wholly dependent on mandatory minimums does not align with objective facts.

Going forward – with these important, commonsense changes; with the resources and support the Justice Department is providing; and with the strong leadership of the IACP and each of its members – I am confident that we will continue to see crime and violence decrease in all of the jurisdictions represented here.  We will continue to ensure that America’s finest can protect themselves, and secure their communities, as effectively as possible.  And – with dedication and persistence, in partnership with one another, and thanks to the bravery of our men and women on the front lines – we will continue to make the progress that our citizens both need and deserve.

In the weeks ahead – wherever my individual path may take me – I want you to know that my commitment to this work, and my abiding respect and admiration for you and your colleagues, will never waver.  I am proud of all that we have accomplished together over the last six years.  I look forward to everything we will achieve in the critical days to come.  And I thank you all, once again, for your tireless work, for your friendship – and for your ongoing service to the nation we love so dearly.

MARKETERS OF CREDIT/DEBIT CARD PROCESSING SERVICES SETTLE ALLEGED DECEPTION CLAIMS BY FTC

FROM:  U.S. FEDERAL TRADE AND COMMISSION 

Marketers Agree to Settle FTC Charges They Deceived Small Businesses Into Buying Credit/Debit Card Processing Services

A company that sold credit and debit card payment processing services to small businesses has agreed to settle Federal Trade Commission charges that it used deception and unsubstantiated claims when signing businesses up for its services and processing equipment. The defendants also agreed to settle similar charges the Washington Attorney General’s Office filed in state court.

Under separate settlements with the FTC and the Washington State Attorney General, the defendants behind Merchant Services Direct LLC (MSD) will pay $175,000 and be prohibited from continuing to use the allegedly deceptive sales tactics.

In addition, the defendants must provide to merchants (1) a separate document disclosing all fees, charges, and rates before merchants sign any contracts with the defendants, and (2) a complete copy of any documents merchants sign before submitting the merchants’ applications for payment processing services.

According to the FTC’s complaint, MSD was an “independent sales organization” that sold small businesses the ability to accept credit and debit card payments. The businesses paid fees whenever their customers paid with a credit or debit card.

The FTC charged MSD, also doing business as Sphyra Inc., and its associates with making false representations and failing to disclose key facts concerning their processing services and equipment, and with misleading merchants about the fees and costs of services and equipment.

For example, MSD agents allegedly:

tricked merchants into signing binding contracts by telling them the documents were just applications to obtain price quotes;
led merchants to believe they were associated with the merchants’ current card processor, Visa or MasterCard, or their bank and tricked them into signing new contracts by telling them they were just updating existing account paperwork;
duped merchants into leasing new card processing terminals for two to four years, falsely claiming their current “swipe” terminals were outdated or incompatible with its services; and
falsely told merchants they could cancel at any time.
In addition to MSD, the settling defendants are Boost Commerce Inc., Kyle Lawson Dove, and Shane Patrick Hurley. Charges against another defendant, Generation Y Investments LLC, were voluntarily dismissed as part of the settlement.

The FTC acknowledges the assistance of the Washington State Attorney General’s Office and the Better Business Bureaus of Eastern Washington, Northern Idaho, and Montana in this case.

The Commission vote authorizing the stipulated final orders was 4-0-1, with Commissioner Julie Brill abstaining. The orders were filed in the U.S. District Court for the Eastern District of Washington. The Washington State Attorney General’s Office filed its proposed settlement with the defendants in the Superior Court for Spokane County, Washington.

NOTE: Stipulated orders have the force of law when approved and signed by the District Court judge.

U.S. CONGRATULATES PEOPLE OF TUNISA ON THEIR SUCCESSFUL ELECTIONS

FROM:  U.S. STATE DEPARTMENT 

Parliamentary Elections in Tunisia

Press Statement

John Kerry

Secretary of State

Washington, DC

October 27, 2014

I join President Obama in congratulating the Tunisian people on the success of yesterday’s legislative elections. We welcome this important step to form a democratically elected Parliament and to build the foundation for a democratic, secure, and prosperous future. This milestone in Tunisia’s transition to democracy exemplifies why Tunisia remains a beacon of hope, not only to the Tunisian people, but to the region and the world. I was encouraged to note the strong turnout and to see voting proceed peacefully and without any significant security incidents. The United States is committed to working with the next democratically elected government of Tunisia that will result from this vote.

U.S. CONGRATULATES PEOPLE OF CZECH REPUBLIC ON THEIR NATIONAL DAY

FROM:  U.S. STATE DEPARTMENT 

On the Occasion of the Czech Republic's National Day

Press Statement

John Kerry

Secretary of State

Washington, DC

October 27, 2014

On behalf of President Obama and the people of the United States, I congratulate the people of the Czech Republic as you celebrate your national day on October 28.

This year’s celebration is particularly significant as you celebrate the 25th anniversary of the Velvet Revolution. What began as students, artists, and union members peacefully gathering in the streets of Bratislava and Prague in November – armed with flowers and the plays and essays of Vaclav Havel – became freedom for all Czechs by December. The Czech Republic is a democracy today because of the courage of those who demanded it years before.

As a Senator, I took great pride in your courage – and my connection to your country became even more personal as my brother, Cam, studied our family genealogy and traced it all the way back to the town that is now Horni Benesov. It is where my grandfather was born. With my grandmother and uncle, he left for America – settling in Chicago and finally Boston, which my family has called home ever since.

Today, the United States and the Czech Republic are close NATO allies. We are grateful to the Czech Republic for your support in Ukraine, Afghanistan, Syria, and in the fight against terrorism.

The United States looks forward to our continuing cooperation to promote the causes of freedom, prosperity, and human dignity around the world.

As you mark your national day, the United States celebrates with you as a friend and ally.

SECRETARY KERRY'S STATEMENT ON BRAZIL'S ELECTIONS

FROM:  U.S. STATE DEPARTMENT 

Elections in Brazil

Press Statement

John Kerry

Secretary of State

Washington, DC

October 27, 2014

I congratulate President Dilma Rousseff on her hard-fought victory, and we particularly congratulate the Brazilian people and electoral officials on another successful election marked by extraordinary participation and energetic debate. We look forward to continuing to work with President Rousseff and her administration to strengthen our shared aspirations and advance our bilateral relationship.

This is a vital relationship for the hemisphere and for the world. It’s a strategic relationship bigger than any differences. Representing the two largest democracies and economies in the hemisphere, our partnership reflects scores of common interests, whether it’s confronting the Ebola crisis, promoting peace and security in Haiti, increasing educational exchanges, supporting the WTO Trade Facilitation Agreement, and continuing to support deeper business and commercial relationships that strengthen job-creating trade and investment. If we both make this relationship the priority it can and must be, our cooperation and commitment will only continue to deepen.

PRESIDENT OBAMA'S STATEMENT ON ELECTIONS IN UKRAINE

FROM:  THE WHITE HOUSE 

October 27, 2014

Statement by the President on Parliamentary Elections in Ukraine

On behalf of the American people, I congratulate the people of Ukraine on holding successful parliamentary elections on October 26. Despite a challenging security environment in certain regions, millions of Ukrainians turned out across the country to cast their ballots in an orderly and peaceful manner. I commend the Government of Ukraine for the conduct of the campaign and election day vote, which international monitoring organizations assess to have been largely in line with international standards.

At the same time, it is clear that Russian authorities occupying Crimea and Russian-backed separatists in parts of eastern Ukraine prevented many Ukrainian citizens from exercising their democratic rights to participate in national elections and cast their votes. I call on Russia to ensure that its proxies in eastern Ukraine allow voters in the parts of Donetsk and Luhansk subject to the Special Status Law to choose their representatives in legitimate local elections on December 7, in keeping with the agreement that Russia and separatist representatives signed in Minsk, Belarus, on September 5, 2014. The United States will not recognize any election held in separatist-held areas that does not comport with Ukrainian law and is not held with the express consent and under the authority of the Ukrainian government.

Yesterday’s parliamentary vote represents another important milestone in Ukraine’s democratic development. We look forward to the convening of the new parliament and the quick formation of a strong, inclusive government. The United States stands ready to support the choices of the Ukrainian people and Ukraine’s new government as it enacts and implements the reforms necessary to promote further democratic development, strengthen the rule of law, and foster economic stability and growth in Ukraine. The United States also will continue to support Ukraine’s sovereignty and territorial integrity as it works toward a peaceful resolution of the conflict in the east and a return of Crimea, and will stand with its people as they seek to build a more secure, prosperous, and democratic future.

NASA VIDEO: POWER SPACEWALK ON THIS WEEK @NASA

RECENT U.S. AIR FORCE PHOTOS

FROM:  U.S. AIR FORCE 

Airmen with the 58th Aircraft Maintenance Unit crew one prepare to load a GBU-31 joint direct attack munition on to an F-35A Lightning II during a qualification load Oct. 10, 2014, at Eglin Air Force Base, Fla. The F-35A is now one step closer to its initial operational capability with the first weapons load crew qualification. The newly qualified crewmembers will continue to hone their skills and become experts at their jobs so they can train the weapons load crews at other bases receiving the F-35A. (U.S. Air Force photo/Staff Sgt. Marleah Robertson).

Aircrew members traverse SERE combat survival training challenges 

Aircrew members simulate being captured by a mock adversary during a combat survival refresher course Oct. 9, 2014, at Joint Base Pearl Harbor-Hickam, Hawaii. The survival, evasion, resistance and escape combat survival refresher course is designed to familiarize aircrew members with combat skills learned through hands-on training in a realistic environment. SERE is a program that provides training in evading capture, survival skills and the military code of conduct. (U.S. Air Force photo/Staff Sgt. Christopher Hubenthal)

FTC APPROVES FINAL ORDER TO BAN 'FAT BURNER' PILL MARKETER FROM MAKING, SELLING WEIGHT-LOSS PRODUCTS

FROM:  U.S. FEDERAL TRADE COMMISSION 

FTC Approves Final Orders Banning Marketer Behind ‘Fat Burner’ Diet Pills From Making or Selling Weight-Loss Products

Following a public comment period, the Federal Trade Commission has approved two final orders settling charges that the former CEO and co-founder of an Atlanta-based marketing operation and his company deceived consumers with promises that their Healthe Trim supplements would burn fat, increase metabolism, and suppress appetite.

According to the FTC’s complaint, announced last month, John Matthew Dwyer III and HealthyLife Sciences, LLC made false and unsubstantiated claims that Healthe Trim supplements would cause rapid and substantial weight loss. Advertisements for Healthe Trim, which used the tagline “Get High School Skinny,” relied heavily on consumer testimonials that portrayed losing weight as easy.

In settling the FTC’s charges, Dwyer has agreed to be banned from the weight-loss industry, and is prohibited from manufacturing or marketing weight-loss products. HealthyLife Sciences is banned from making any of the seven weight-loss claims that the FTC has publicly advised are scientifically infeasible, with respect to any supplement, over-the-counter drug, or any product rubbed into or worn on the skin. The settlement with HealthyLife Sciences also requires that the company have two randomized, double-blind, placebo-controlled human clinical trials to support other claims relating to weight loss, increased metabolism, or appetite suppression.

UNGA FIRST COMMITTEE THEMATIC DISCUSSION REGARDING WMD

FROM:  U.S. STATE DEPARTMENT 

Sixty-Ninth UNGA First Committee Thematic Discussion on Other Weapons of Mass Destruction

Remarks

Ambassador Robert A. Wood, Alternate Representative, Delegation of the United States of America

New York City

October 24, 2014

Mr. Chairman,

Last year the international community welcomed UN Security Council Resolution 2118 and the September 27th OPCW Executive Council decision that legally mandated the complete elimination of Syria’s chemical weapons program. These decisions were an historic and unprecedented achievement that allowed for the removal and verified destruction of Syria’s declared chemical weapons -- a significant step toward the complete dismantling of the Syrian chemical weapons program. This effort could not have been accomplished without the commitment and resolve of the international community. President Obama expressed his gratitude to the OPCW-UN Joint Mission and the entire international coalition for this extraordinary achievement. President Obama also made clear that the task of ensuring that Syria’s chemical weapons program has been entirely eliminated is far from over. Serious concerns remain; including Syria’s continued use of chemical weapons against the Syrian people in direct contravention of its obligations under Resolution 2118, the Chemical Weapons Convention and the decisions of the OPCW Executive Council.

Mr. Chairman, the OPCW Fact-Finding Mission, set up by the Director-General to establish the facts around allegations that chlorine has been used as a chemical weapon, has confirmed the use of such a chemical in its second report dated 10 September 2014. The United States commends the courage and dedication of the Mission and its professional and impartial efforts to ascertain the facts regarding chemical weapons use in Syria. We join the rest of the international community in strongly supporting the Director-General’s decision to have the Fact-Finding Mission continue its work.

This second report contains a compelling set of conclusions and evidentiary findings implicating the Syrian government in deadly chemical weapons attacks against three villages in northern Syria during April and May of 2014. The Fact-Finding Mission concluded that the testimony of primary witnesses and supporting documentation, including medical reports and other relevant information, constitutes a compelling confirmation with a high degree of confidence that chlorine was used as a weapon, systematically and repeatedly in the villages of Talmanes, Al Tamanah, and Kafr Zeta in northern Syria. The Fact-Finding Mission emphasized that “in describing the incidents involving the release of toxic chemicals, witnesses invariably connected the devices to helicopters flying overhead.” It is well known that the Syrian Government is the only party to the conflict in Syria possessing helicopters or any other aerial capability.

Mr. Chairman, the use of chlorine or any other toxic chemical as a weapon is a clear breach of the Chemical Weapons Convention and of Resolution 2118. Such a breach raises serious concerns about the willingness of Syria to comply with its fundamental treaty obligations not to possess or use chemical weapons.

We are also concerned about Syria’s declaration, as it contains gaps, discrepancies and inconsistencies which give rise to important questions and concerns about the declaration’s accuracy and completeness. We call on Syria to cooperate fully with the OPCW and promptly begin destruction of its remaining chemical weapon production facilities. The Syrian Arab Republic must provide the international community with credible evidence to support its assurances that it has fully abandoned its chemical weapons program. This cannot be achieved while use of chemical weapons continues and new allegations of such use continue to be made. Complete and accurate declarations must be provided, and destruction operations must be completed promptly and in full in order to prevent further use of chemical weapons against the Syrian people. The Syrian CW file remains open and will not be closed until all of these issues are addressed and Syria complies with its obligations under the CWC and UN Security Council Resolution 2118.

Mr. Chairman, on other CWC related matters, the United States looks forward to working closely with States Parties to meaningfully advance the work and recommendations of the Third Review Conference held in April 2013. While there is more work to be done in our efforts to further strengthen the implementation of the CWC, we remain encouraged by the progress made by the OPCW and its extraordinary efforts in working toward a world free of chemical weapons. The OPCW has accomplished a great deal and remains an indispensable multilateral body with a global responsibility.

For our part, the United States continues to act on opportunities to accelerate destruction and has safely destroyed almost 90 percent of our chemical weapons stockpile under OPCW verification. We continue our steadfast commitment to the CWC and will continue working in a transparent manner towards the complete destruction of our remaining chemical weapons.

The United States remains fully committed to the charge given in the preamble of the Chemical Weapons Convention, that all States Parties “determined for the sake of all mankind, to exclude completely the possibility of the use of chemical weapons, through the implementation of the provisions of this Convention….” We must stand together to make this goal a reality.

Mr. Chairman, as we pursue these important goals, we must not lose sight of the threat posed by biological weapons, whether in the hands of states or non-state actors. The Biological Weapons Convention bans the development, production, and stockpiling of such weapons. It embodies an aspiration as profound as that of the CWC: to completely exclude the possibility of biological agents and toxins being used as weapons. The United States strongly supports the BWC.

The 7th BWC Review Conference took steps to strengthen the Convention’s contribution to international security, establishing an ambitious agenda of important topics for ongoing work. But this agenda has not been matched by the resources or political will needed to deliver results. Even as we consolidate gains under the existing process, we must begin to look toward the 8th RevCon. What issues should we seek to address over the coming years, and how should we seek to address them?

Some will call – inevitably – for another effort to negotiate an all-encompassing supplementary treaty or protocol. We’ve been down that road. The problems are well known – and, despite the popular narrative, not limited to U.S. objections. Under this approach, nothing is agreed until everything is agreed. This is a formula for years of inaction. The BW threat won’t wait for us.

There is a better way. We can strengthen our intersessional process. We can – like so many other international entities – adopt decisions on the things we agree upon, while continuing to discuss those on which we do not. And there IS agreement on a great deal. We agree on the need to strengthen national implementation; on the importance of international cooperation, especially to build nations’ capacity to address challenges to health security posed by infectious disease and toxins; on the need to give practical effect to the mutual assistance provisions of Article VII. And – even if we do not agree on how to go about it – we agree on the need to find ways to strengthen confidence that Parties to the BWC are living up to their obligations.

Mr. Chairman, we HAVE a treaty. We don’t need to wait for some distant day when the stars align and another one emerges – and the threats we face will most certainly not wait. Let’s take the tools that we have, strengthen them where necessary, and put them to use.

Thank you, Mr. Chairman.

U.S. CONGRATULATES PEOPLE OF ST. VINCENT AND THE GRENADINES ON THEIR INDEPENDENCE DAY

FROM:  U.S. STATE DEPARTMENT 

St. Vincent and the Grenadines' Independence Day

Press Statement

John Kerry

Secretary of State

Washington, DC

October 24, 2014

I congratulate the people of St. Vincent and the Grenadines on 35 years of independence on October 27.

The United States shares a close bond with St. Vincent and the Grenadines. We partner with your government on everything from HIV/AIDS prevention to the promotion of human rights and the environment. Working together we can broaden and deepen our relationship to benefit all our people.

On behalf of the people of the United States, I wish you the best during your national day celebrations.

CFTC OBTAINS DEFAULT JUDGEMENT AGAINST TEXAS CORPORATION FOR FRAUD INVOLVING FOREIGN FOREIGN CURRENCY CONTRACTS

FROM:  U.S. COMMODITY FUTURES TRADING COMMISSION 

CFTC Obtains Default Judgment against Texas-Based Financial Robotics, Inc. for Fraudulent Forex Scheme

Federal Court Orders Defendant to Pay More than $3 Million in Restitution and a Monetary Penalty in CFTC Anti-Fraud Action

Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Lee H. Rosenthal of the U.S. District Court for the Southern District of Texas entered an Order of default judgment and permanent injunction against Defendant Financial Robotics, Inc. (FinRob), a Texas corporation. The court’s Order requires FinRob to pay restitution of $827,000 and a civil monetary penalty of $2,481,000. The Order also imposes permanent trading and registration bans against FinRob and prohibits it from violating provisions of the Commodity Exchange Act, as charged.

The Order, entered on October 9, 2014, stems from a CFTC Complaint filed on June 29, 2011 (see CFTC Press Release 6067-11). The Order finds that, from at least June 2008, FinRob, and its controlling person, Defendant Mark E. Rice, operated a fraudulent scheme that solicited approximately $1.7 million from one individual to trade leveraged off-exchange foreign currency contracts. According to the Order, Defendants falsely told their customer, among other things, that his investment was “risk free” and insured against loss and that the return of his principal was guaranteed. The Order further finds that Defendants misappropriated at least $576,000 of customer funds by transferring the money to unrelated Rice-controlled companies, and thereafter spending at least $404,000 of those funds for Rice’s personal and business expenses.

CFTC Previously Settled with Defendant Rice

Previously, on January 13, 2014, the court entered a Consent Order of permanent injunction against Defendant Rice, requiring him to pay a combined total of $1.5 million in restitution and a civil monetary penalty, among other sanctions, to settle the CFTC action (see CFTC Press Release 6828-14).

The CFTC cautions victims that restitution orders may not result in the recovery of money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.

The CFTC thanks the National Futures Association, the British Virgin Islands Financial Services Commission, the Netherlands Authority for the Financial Markets, and the United Kingdom’s Financial Conduct Authority for their assistance.

CFTC Division of Enforcement staff members responsible for this case are Kevin Webb, Michelle Bougas, James Holl, III, and Gretchen L. Lowe.

HEALTHCARE COMPANY TO PAY $350 MILLION TO RESOLVE ALLEGATIONS OF GIVING ILLEGAL KICKBACKS

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, October 22, 2014

DaVita to Pay $350 Million to Resolve Allegations of Illegal Kickbacks

DaVita Healthcare Partners, Inc., one of the leading providers of dialysis services in the United States, has agreed to pay $350 million to resolve claims that it violated the False Claims Act by paying kickbacks to induce the referral of patients to its dialysis clinics, the Justice Department announced today. DaVita is headquartered in Denver, Colorado and has dialysis clinics in 46 states and the District of Columbia.

The settlement today resolves allegations that, between March 1, 2005 and February 1, 2014, DaVita identified physicians or physician groups that had significant patient populations suffering renal disease and offered them lucrative opportunities to partner with DaVita by acquiring and/or selling an interest in dialysis clinics to which their patients would be referred for dialysis treatment. DaVita further ensured referrals of these patients to the clinics through a series of secondary agreements with the physicians, including  entering into agreements in which the physician agreed not to compete with the DaVita clinic and non-disparagement agreements that would have prevented the physicians from referring their patients to other dialysis providers.

“Health care providers should generate business by offering their patients superior quality services or more convenient options, not by entering into contractual agreements designed to induce physicians to provide referrals,” said Deputy Assistant Attorney General for the Justice Department’s Civil Division Jonathan F. Olin. “The Justice Department is committed to protecting the integrity of our healthcare system and ensuring that financial arrangements in the healthcare marketplace comply with the law.”

The government alleged that DaVita used a three part joint venture business model to induce patient referrals.  First, using information gathered from numerous sources, DaVita identified physicians or physician groups that had significant patient populations suffering renal disease within a specific geographic area. DaVita would then gather specific information about the physicians or physician group to determine if they would be a “winning practice.” In one transaction, a physician’s group was considered a “winning practice” because the physicians were “young and in debt.”  Based on this careful vetting process, DaVita knew and expected that many, if not most, of the physicians’ patients would be referred to the joint venture dialysis clinics.

Next, DaVita would offer the targeted physician or physician group a lucrative opportunity to enter into a joint venture involving DaVita’s acquisition of an interest in dialysis clinics owned by the physicians, and/or DaVita’s sale of an interest in its dialysis clinics to the physicians. To make the transaction financially attractive to potential physician partners, DaVita would manipulate the financial models used to value the transaction.  For example, to decrease the apparent value of clinics it was selling, DaVita would employ an assumption it referred to as the “HIPPER compression,” which was based on a speculative and arbitrary projection that future payments for dialysis treatments by commercial insurance companies would be cut by as much as half in future years. These manipulations resulted in physicians paying less for their interest in the joint ventures and realizing returns on investment which were extraordinarily high, with pre-tax annual returns exceeding 100 percent in some instances.

Last, DaVita ensured future patient referrals through a series of secondary agreements with their physician partners. These included paying the physicians to serve as medical directors of the joint venture clinics, and entering into agreements in which the physicians agreed not to compete with the clinic. The non-compete agreements were structured so that they bound all physicians in a practice group, even if some of the physicians were not part of the joint venture arrangements. These agreements also included provisions prohibiting the physician partners from inducing or advising a patient to seek treatment at a competing dialysis clinic. These agreements were of such importance to DaVita that it would not conclude a joint venture transaction without them.

The Government’s complaint identifies a joint venture with a physicians’ group in central Florida as one of several examples illustrating DaVita’s scheme to improperly induce patient referrals. The group had previously been in a joint venture arrangement involving dialysis clinics with Gambro, Inc., a dialysis company acquired by DaVita in 2005. Prior to the acquisition, Gambro had entered into a settlement with the United States to resolve alleged kickback allegations that, among other things, required Gambro to unwind its joint venture agreements. As a consequence, Gambro purchased the group’s interest in the joint venture clinics and agreed to a “carve-out” of the associated non-competition agreement which allowed the group to open its own dialysis clinic nearby, which it did. After acquiring Gambro, DaVita bought a majority position in the group’s newly established dialysis clinic, and sold a minority position in three DaVita-owned clinics. Despite the fact that each of the clinics involved were roughly comparable in terms of size and profits, DaVita agreed to pay $5,975,000 to acquire a 60 percent interest in the group’s clinic, while selling a 40 percent interest in the three clinics it owned for a total of $3,075,000. As part of this joint venture, the group agreed to enter into new non-compete agreements.

“This case involved a sophisticated scheme to compensate doctors illegally for referring patients to DaVita’s dialysis centers.   Federal law protects patients by making buying and selling patient referrals illegal, so as to ensure that the interest of the patient is the exclusive factor in the referral decision,” said U.S. Attorney John Walsh.  “When a company pays doctors and/or their practice groups for patient referrals, the company’s focus is not on the patient, but on the profit to be extracted from providing services to the patient.”

In conjunction with today’s announcement, the U.S. Attorney’s Office noted that after extensive review, it is closing its criminal investigation of two specific joint ventures.

As part of the settlement announced today, DaVita has also agreed to a Civil Forfeiture in the amount of $39 million based upon conduct related to two specific joint venture transactions entered into in Denver, Colorado.   Additionally, DaVita has entered into a Corporate Integrity Agreement with the Office of Counsel to the Inspector General of the Department of Health and Human Services which requires it to unwind some of its business arrangements and restructure others, and includes the appointment of an Independent Monitor to prospectively review DaVita’s arrangements with nephrologists and other health care providers for compliance with the Anti-Kickback Statute.

“Companies seeking to boost profits by paying physician kickbacks for patient referrals – as the government contended in this case – undermine impartial medical judgment at the expense of patients and taxpayers,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services.  “Expect significant settlements and our continued investigation of such wasteful business arrangements.”

The settlement resolves allegations originally brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery.  The suit was filed by David Barbetta, who was previously employed by DaVita as a Senior Financial Analyst in DaVita’s Mergers and Acquisitions Department. Mr. Barbetta’s share of the recovery has yet to be determined.            

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.

The case was handled by the United States Attorney’s Office for the District of Colorado, the Civil Division of the United States Department of Justice, and the U.S. Department of Health and Human Services, Office of Inspector General.

The lawsuit is captioned United States ex rel. David Barbetta v. DaVita, Inc. et al., No. 09-cv-02175-WJM-KMT (D. Colo.).  The claims settled by this agreement are allegations only; there has been no determination of liability.

HEART OF WEB TELESCOPE SURVIVES DEEP SPACE TEST

FROM:  NASA 

After 116 days of being subjected to extremely frigid temperatures like that in space, the heart of the James Webb Space Telescope, the Integrated Science Instrument Module (ISIM) and its sensitive instruments, emerged unscathed from the thermal vacuum chamber at NASA’s Goddard Space Flight Center in Greenbelt, Maryland. The Webb telescope's images will reveal the first galaxies forming 13.5 billion years ago. The telescope will also pierce through interstellar dust clouds to capture stars and planets forming in our own galaxy. At the telescope's final destination in space, one million miles away from Earth, it will operate at incredibly cold temperatures of -387 degrees Fahrenheit, or 40 degrees Kelvin. This is 260 degrees Fahrenheit colder than any place on the Earth’s surface has ever been. To create temperatures that cold on Earth, the team uses the massive thermal vacuum chamber at Goddard called the Space Environment Simulator, or SES, that duplicates the vacuum and extreme temperatures of space. This 40-foot-tall, 27-foot-diameter cylindrical chamber eliminates the tiniest trace of air with vacuum pumps and uses liquid nitrogen and even colder liquid helium to drop the temperature simulating the space environment. The James Webb Space Telescope is the scientific successor to NASA's Hubble Space Telescope. It will be the most powerful space telescope ever built. Webb is an international project led by NASA with its partners, the European Space Agency and the Canadian Space Agency.  NASA Webb's Heart Survives Deep Freeze Test.  Image Credit: NASA/Chris Gunn.

COURT SHUTS DOWN TECH SUPPORT SCAMMERS WHO SOLD SOFTWARE AVAILABLE FOR FREE

FROM:  FEDERAL TRADE COMMISSION 

At FTC’s Request, Court Shuts Down New York-Based Tech Support Scam Business

At the request of the Federal Trade Commission, a federal court has shut down a company that scammed computer users by tricking them into paying hundreds of dollars for technical support services they did not need, as well as software that was otherwise available for free.

According to the FTC’s complaint, Pairsys, Inc., cold-called consumers masquerading as representatives of Microsoft or Facebook, and also purchased deceptive ads online that led consumers to believe they were calling the technical support line for legitimate companies.

“The defendants behind Pairsys targeted seniors and other vulnerable populations, preying on their lack of computer knowledge to sell ‘security’ software and programs that had no value at all,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “We are pleased that the court has shut down the company for now, and we look forward to getting consumers’ money back in their pockets.”

Whether consumers were cold-called by the company or drawn in by deceptive ads, the FTC’s complaint notes that what followed was a deceptive and high-pressure sales pitch conducted by scammers in an overseas call center. The scammers would convince a consumer to allow them to have remote control over the individual’s computer, in order to analyze the supposed issues.

Once they had access to a consumer’s computer, the FTC alleges, the scammers would lead the consumer to believe that benign portions of the computer’s operating system were in fact signs of viruses and malware infecting the consumer’s computer. In many cases, they implied that the computer was severely compromised and had to be “repaired” immediately.

At that point, consumers were pressured into paying for bogus warranty programs and software that was freely available, usually at a cost of $149 to $249, though in some cases, the defendants charged as much as $600 for the supposed products. The FTC’s filings in the case allege that the company made nearly $2.5 million since early 2012.

The defendants have agreed to the terms of a preliminary injunction issued by the court that prohibits the defendants in the case from making misrepresentations to consumers about what company they represent or whether consumers have viruses or spyware on their computer. They are also banned from deceptive telemarketing practices, and may not sell or rent their customer lists to any third party. The injunction requires that their websites and telephone numbers must be shut down and disconnected, and their assets be frozen.

The defendants in the case, Pairsys, Inc., Uttam Saha and Tiya Bhattacharya, are accused by the FTC of violating both the FTC Act and the Telemarketing Sales Rule. In its complaint, the FTC asks the court to permanently shut down the company and require the defendants to return their ill-gotten gains. The FTC previously brought cases against a number of tech support scammers in 2012 and has received settlements and judgments totaling more than $5 million in those cases.

The Commission vote authorizing the staff to file the complaint was 5-0. The complaint was filed in the U.S. District Court for the Northern District of New York. The stipulated preliminary injunction was entered by the court on Oct. 9. 2014.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.

WHITE HOUSE VIDEO: AN EBOLA UPDATE FROM THE DESK OF DR. ANTHONY FAUCI

U.S. CONGRATULATES PEOPLE OF TURKMENISTAN ON THEIR INDEPENDENCE DAY

FROM:  U.S. STATE DEPARTMENT 

Turkmenistan Independence Day

Press Statement

John Kerry

Secretary of State

Washington, DC

October 24, 2014

On behalf of President Obama and the people of the United States, I congratulate the people of Turkmenistan as you celebrate the 23nd anniversary of your nation’s independence on October 27.

When Turkmenistan declared its independence in 1991, the United States celebrated your achievement. Later that year, as the last Republics of the Soviet Union declared their independence, President George H.W. Bush declared that “the challenge for us now is to engage these new states in sustaining the peace and building a more prosperous future.”

Twenty-three years later, our two nations have worked together to forge a more peaceful and stable region. We will continue to work closely with you on common goals – from expanding trade and business ties to promoting professional, cultural, and educational exchanges.

I send the people of Turkmenistan best wishes for a future of peace, progress, and prosperity.

U.S. CONGRATULATES PEOPLE OF AUSTRIA ON THEIR NATIONAL DAY

FROM:  U.S. STATE DEPARTMENT 

On the Occasion of Austria's National Day

Press Statement

John Kerry

Secretary of State

Washington, DC

October 24, 2014

On behalf of President Obama and the people of the United States, I congratulate the people of Austria as you celebrate your National Day on October 26.

Last week I was in Vienna, a city that has played gracious host as the P5+1 nations have held important talks with Iran throughout the past year. You have made our entire delegation feel at home, and I have enjoyed taking a break by riding my bicycle through your countryside.

My family ties go back even further, to my grandparents’ family. As a college student, I even had the chance to see your mountains up close. And lately, I’ve seen firsthand that Americans and Austrians are united in our shared commitment to democracy, peace, and prosperity.

Our governments have built a strong partnership based our shared goal of a Europe whole, free, and at peace. Austria provides peacekeeping forces and technical expertise in Southeastern Europe. You set a powerful example for engagement through your role in the Partnership for Peace and as host to the Organization for Security and Cooperation in Europe and the International Atomic Energy Agency.

On this special day, the United States stands with the people of Austria as a partner and a friend.

SAFARI COMPANY OWNERS INDICTED FOR SELLING ILLEGAL HUNTS FOR RHINOS

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, October 23, 2014

Owners of Safari Company Indicted for Illegal Rhino Hunts

The owners of Out of Africa Adventurous Safaris were charged with conspiracy to sell illegal rhinoceros hunts in South Africa in order to defraud American hunters, money laundering and secretly trafficking in rhino horns, announced Sam Hirsch Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division; George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama; and Dan Ashe, Director of the U.S. Fish & Wildlife Service.  The indictment was unsealed today in Montgomery, Alabama following the federal indictment.

The indictment charges Dawie Groenewald,  46, and his brother, Janneman Groenewald, 44, both South African nationals, and their company Valinor Trading CC (d/b/a Out of Africa Adventurous Safaris) with conspiracy, Lacey Act violations, mail fraud, money laundering and structuring bank deposits to avoid reporting requirements.   The Lacey Act, the nation’s oldest criminal statute addressing illegal poaching and wildlife trafficking, makes it a crime to sell animal hunts conducted in violation of state, federal, tribal and foreign law.

According to the 18-count indictment, from 2005 to 2010, the Groenewald brothers traveled throughout the United States to attend hunting conventions and gun shows where they sold outfitting services and accommodations to American hunters to be conducted at their ranch in Mussina, South Africa.  During the time period covered by the indictment, Janneman Groenewald lived in Autauga County, Alabama, where Out of Africa maintained bank accounts and is accused of money laundering and structuring deposits to avoid federal reporting requirements.  Hunters paid between $3,500 and $15,000 for the illegal rhino hunts.

The defendants are charged with selling illegal rhino hunts by misleading American hunters.  The hunters were told the lie that a particular rhino had to be killed because it was a “problem rhino.”  Therefore, while no trophy could be legally exported, the hunters could nonetheless shoot the rhino, pose for a picture with the dead animal, and make record book entries, all at a reduced price.  Meanwhile, the defendants are alleged to have failed to obtain necessary permits required by South Africa and cut the horns off some of the rhinos with chainsaws and knives.

The indictment alleges that the defendants then sold the rhino horn on the black market.  Eleven illegal hunts are detailed in the papers filed in federal court, including one in which the rhino had to be shot and killed after being repeatedly wounded by a bow, and another in which Dawie Groenewald used a chainsaw to remove the horn from a sedated rhino that had been hunted with a tranquilizer gun.  The American hunters have not been charged.

“We are literally fighting for the survival of a species today.  In that fight, we will do all we can to prosecute those who traffic in rhino horns and sell rhino hunts to Americans in violation of foreign law,” said Sam Hirsch, Acting Assistant Attorney General for the Environment and Natural Resources Division.  “This case should send a warning shot to outfitters and hunters that the sale of illegal hunts in the U.S. will be vigorously prosecuted regardless of where the hunt takes place.”

“These defendants tricked, lied and defrauded American citizens in order to profit from these illegal rhinoceros hunts,” stated U.S. Attorney Beck.  “Not only did they break South African laws, but they laundered their ill-gotten gains through our banks here in Alabama. We will not allow United States’ citizens to be used as a tool to destroy a species that is virtually harmless to people or other animals.”  

“The fact that defendants used American hunters to execute this scheme is appalling - but not as appalling as the brutal tactics they employed to kill eleven critically endangered wild rhinos,” said FWS Director Ashe. “South Africa has worked extraordinarily hard to protect its wild rhino population, using trophy hunts as a key management tool. The illegal ‘hunts’ perpetrated by these criminals undermine that work and the reputation of responsible hunters everywhere.”

Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth.   Adult rhinoceros have no known natural predators.  All species of rhinoceros are protected under United States and international law.  Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.  Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population.  Like hair or finger nails, rhino horn is actually composed of keratin and has no proven medical efficacy.  As a result, rhino populations have declined by more than 90 percent since 1970.  South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to a record 1004 in 2013.  Illegally killed rhinos like the ones charged in this prosecution are not included in the published statistics of poached animals.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.  

The investigation of Out of Africa is part of Operation Crash (named for the term “crash” which describes a herd of rhinoceros), an ongoing nation-wide effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns led by the Special Investigations Unit of the Fish and Wildlife Service Office of Law Enforcement in coordination with the U.S. Department of Justice.  Thus far there have been 26 arrests and 18 convictions with prison terms as high as 70 months. (See attached Crash Fact Sheet).  Throughout the course of the investigation on the current charges, U.S. authorities received substantial cooperation from South Africa’s National Prosecuting Authority and a specialized endangered species unit within the organized crime unit of the South African Police Service.  That unit is known as the Hawks.  Additional assistance has been provided in this case by the Bureau of Alcohol, Tobacco and Firearms, in Montgomery, Alabama and the Autauga County, Alabama Sheriff’s Office.  The Out of Africa case is being prosecuted in the Middle District of Alabama by Assistant U.S. Attorney Brandon K. Essig and by Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the U.S. Department of Justice in Washington, D.C.  The Out of Africa investigation is continuing.    

The Criminal Division’s Office of International Affairs provided assistance.

$840 MILLION INITIATIVE ANNOUNCED BY HHS SECRETARY BURWELL

FROM:  U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 

FOR IMMEDIATE RELEASE

October 23, 2014

HHS Secretary announces $840 million initiative to improve patient care and lower costs

New initiative will support networks that help doctors access information and improve health outcomes

Health and Human Services Secretary Sylvia M. Burwell today announced an initiative that will fund successful applicants who work directly with medical providers to rethink and redesign their practices, moving from systems driven by quantity of care to ones focused on patients’ health outcomes, and coordinated health care systems. These applicants could include group practices, health care systems, medical provider associations and others. This effort will help clinicians develop strategies to share, adapt and further improve the quality of care they provide, while holding down costs. Strategies could include:
Giving doctors better access to patient information, such as information on prescription drug use to help patients take their medications properly;
Expanding the number of ways patients are able communicate with the team of clinicians taking care of them;
Improving the coordination of patient care by primary care providers, specialists, and the broader medical community; and
Using electronic health records on a daily basis to examine data on quality and efficiency.

“The administration is partnering with clinicians to find better ways to deliver care, pay providers and distribute information to improve the quality of care we receive and spend our nation’s dollars more wisely,” said Secretary Burwell.  “We all have a stake in achieving these goals and delivering for patients, providers and taxpayers alike.”

Through the Transforming Clinical Practice Initiative, HHS will invest $840 million over the next four years to support 150,000 clinicians. With a combination of incentives, tools, and information, the initiative will encourage doctors to team with their peers and others to move from volume-driven systems to value-based, patient-centered, and coordinated health care services. Successful applicants will demonstrate the ability to achieve progress toward measurable goals, such as improving clinical outcomes, reducing unnecessary testing, achieving cost savings and avoiding unnecessary hospitalizations.

The initiative is one part of a strategy advanced by the Affordable Care Act to strengthen the quality of patient care and spend health care dollars more wisely. For example, the Affordable Care Act has helped reduce hospital readmissions in Medicare by nearly 10 percent between 2007 and 2013 – translating into 150,000 fewer readmissions – and quality improvements have resulted in saving 15,000 lives and $4 billion in health spending during 2011 and 2012.

Building upon successful models and programs, such as the Quality Improvement Organization Program, Partnership for Patients with Hospital Engagement Networks, and Accountable Care Organizations, the initiative provides opportunities for participating clinicians to collaborate and disseminate information. Through a multi-pronged approach to technical assistance, it will identify existing health care delivery models that work and rapidly spread these models to other health care providers and clinicians.

“This model will support and build partnerships with doctors and other clinicians across the country to provide better care to their patients. Clinicians want to spend time with their patients, coordinate care, and improve patient outcomes, and the Centers for Medicare & Medicaid Services wants to be a collaborative partner helping clinicians achieve those goals and spread best practices across the nation,” said Patrick Conway, M.D., deputy administrator for innovation and quality and CMS chief medical officer.

Practice Transformation Networks. CMS will award cooperative agreements to group practices, health care systems, and others that join together to serve as trusted partners in providing clinician practices with quality improvement expertise, best practices, coaching and assistance. These practices have successfully achieved measurable improvements in care by implementing electronic health records, coordinating among patients and their families, and performing timely monitoring and interventions of high-risk patients to prevent unnecessary hospitalization and readmissions. Practice Transformation Networks will work with a diverse range of practices, including those in rural communities and those that provide care for the medically underserved.

Support and Alignment Networks. CMS will award cooperative agreements to networks formed by medical professional associations and others who would align their memberships, communication channels, continuing medical education credits and other work to support the Practice Transformation Networks and clinician practices. These Support and Alignment Networks would create an infrastructure to help identify evidence-based practices and policies and disseminate them nationwide, in a scalable, sustainable approach to improved care delivery.

By participating in the initiative, practices will be able to receive the technical assistance and peer-level support they need to deliver care in a patient-centric and efficient manner, which is increasingly being demanded by health care payers and purchasers as part of a transformed care delivery system. Participating clinicians will thus be better positioned for success in the health care market of the future - one that rewards value and outcomes rather than volume.