SECRETARY KERRY'S REMARKS ON KOSOVO GOVERNMENT FORMATION

FROM;  U.S. STATE DEPARTMENT 
Government Formation in Kosovo
Press Statement
John Kerry
Secretary of State
Washington, DC
December 9, 2014

We congratulate Kosovo on the constitution of its Assembly and formation of its government -- the first democratic transition of political authority resulting from free and fair elections in all of Kosovo’s territory. This coalition government, and the process that led to its formation, demonstrate the resilience and vitality of Kosovo’s democratic and political institutions.

We applaud President Jahjaga for her steadfast leadership to ensure that this transition occurred in accordance with Kosovo’s laws and constitution. We also congratulate Prime Minister Isa Mustafa and look forward to working closely with him and his new cabinet as they confront the many challenges that face Kosovo and the region.

The United States will continue to support Kosovo’s efforts to meet these challenges, including the Dialogue with Serbia on normalization of relations and Kosovo’s commitment to establish a Special Court to handle allegations investigated by the Special Investigative Task Force. We expect the government to work inclusively to support all of Kosovo’s communities, and to seriously address the issue of corruption.

We look forward to continuing our close cooperation with Kosovo on a common agenda that advances Kosovo’s political and economic development and Euro-Atlantic integration.

PRESIDENT OBAMA'S STATEMENT ON SENATE SELECT COMMITTEE ON INTELLIGENCE REGARDING CIA TORTURE

FROM:  THE WHITE HOUSE 
December 09, 2014
Statement by the President Report of the Senate Select Committee on Intelligence

Throughout our history, the United States of America has done more than any other nation to stand up for freedom, democracy, and the inherent dignity and human rights of people around the world.  As Americans, we owe a profound debt of gratitude to our fellow citizens who serve to keep us safe, among them the dedicated men and women of our intelligence community, including the Central Intelligence Agency.  Since the horrific attacks of 9/11, these public servants have worked tirelessly to devastate core al Qaeda, deliver justice to Osama bin Laden, disrupt terrorist operations and thwart terrorist attacks.  Solemn rows of stars on the Memorial Wall at the CIA honor those who have given their lives to protect ours.  Our intelligence professionals are patriots, and we are safer because of their heroic service and sacrifices.

In the years after 9/11, with legitimate fears of further attacks and with the responsibility to prevent more catastrophic loss of life, the previous administration faced agonizing choices about how to pursue al Qaeda and prevent additional terrorist attacks against our country.  As I have said before, our nation did many things right in those difficult years.  At the same time, some of the actions that were taken were contrary to our values.  That is why I unequivocally banned torture when I took office, because one of our most effective tools in fighting terrorism and keeping Americans safe is staying true to our ideals at home and abroad.

Today’s report by the Senate Select Committee on Intelligence details one element of our nation’s response to 9/11—the CIA’s detention and interrogation program, which I formally ended on one of my first days in office.  The report documents a troubling program involving enhanced interrogation techniques on terrorism suspects in secret facilities outside the United States, and it reinforces my long-held view that these harsh methods were not only inconsistent with our values as nation, they did not serve our broader counterterrorism efforts or our national security interests.  Moreover, these techniques did significant damage to America’s standing in the world and made it harder to pursue our interests with allies and partners.  That is why I will continue to use my authority as President to make sure we never resort to those methods again.

As Commander in Chief, I have no greater responsibility than the safety and security of the American people.  We will therefore continue to be relentless in our fight against al Qaeda, its affiliates and other violent extremists.  We will rely on all elements of our national power, including the power and example of our founding ideals.  That is why I have consistently supported the declassification of today’s report.  No nation is perfect.  But one of the strengths that makes America exceptional is our willingness to openly confront our past, face our imperfections, make changes and do better.  Rather than another reason to refight old arguments, I hope that today’s report can help us leave these techniques where they belong—in the past.  Today is also a reminder that upholding the values we profess doesn’t make us weaker, it makes us stronger and that the United States of America will remain the greatest force for freedom and human dignity that the world has ever known.

SECRETARY KERRY'S REMARKS ON INTERNATIONAL ANTICORRUPTION DAY

FROM:  THE STATE DEPARTMENT 
U.S. Welcomes International Anticorruption Day
Press Statement
John Kerry
Secretary of State
Washington, DC
December 9, 2014

On this day, International Anticorruption Day, the United States reiterates its commitment to working with its partners to combat the scourge of corruption. The moral and practical costs of corruption are no longer debatable. Corruption drives instability, popular protests, and revolutions. In some cases, these popular movements produce democratic reform, but in other cases they produce a power vacuum or an authoritarian backlash. Frustration with corruption can also drive insurgency movements and be exploited by terrorist groups to gain popular support. And the proceeds of corruption – which are often sheltered in banks or shell corporations in Western Europe and the United States – enable terrorist financing and sustain unaccountable regimes. Put simply, corruption endangers U.S. national security.

That is why the United States is using a variety of tools, including bilateral diplomacy, multilateral engagement, enforcement, and capacity building assistance, to advance our anticorruption agenda. Through initiatives such as the Ukraine and Arab Forums on Asset Recovery, we help build capacity to ensure motivated governments have the ability, and in some cases, the resources to effectively combat corruption.

Beyond providing technical assistance, we also work to generate the political will to respond to corruption by creating trade incentives for reform, celebrating good performers in venues like the Open Government Partnership, and supporting citizen organizations, journalists, and prosecutors holding public officials accountable. We will also continue to lead by example, including through U.S. enforcement of the Foreign Corrupt Practices Act, cooperation on asset recovery, use of our visa authorities, and our work to enhance open government domestically.

The broad subscription to the United Nations Convention against Corruption (UNCAC) by 174 governments, as well as wide adherence to the Convention on Combating Bribery of Foreign Public Officials, create a shared road map for reform and reflect the firmly established principle that corruption is no longer permissible.

Today, we call on partners in government, civil society, and the private sector, to join us in fighting corruption. We also call on countries undergoing democratic transition to redouble their efforts to build governments that are accountable to citizens and respect the rule of law. Advanced economies, like the United States, should continue to guard against our financial systems becoming havens for the proceeds of corruption, and to ensure that our companies do not pay bribes overseas. And today, we renew our notice to kleptocrats around the world: continued theft from your communities will not be tolerated and the international community is committed to denying safe haven to you and your illicit assets.

SECRETARY KERRY'S REACTION TO SENATE REPORT ON TORTURE

FROM:  U.S. STATE DEPARTMENT 
Release of Senate Select Committee on Intelligence Report
Press Statement
John Kerry
Secretary of State
Washington, DC
December 9, 2014

Release of this report affirms again that one of America's strengths is our democratic system’s ability to recognize and wrestle with our own history, acknowledge mistakes, and correct course. This marks a coda to a chapter in our history. President Obama turned the page on these policies when he took office and during week one banned the use of torture and closed the detention and interrogation program. It was right to end these practices for a simple but powerful reason: they were at odds with our values. They are not who we are, and they're not who or what we had to become, because the most powerful country on earth doesn't have to choose between protecting our security and promoting our values.

Now this report sheds light on this period that's more than five years behind us, so we can discuss and debate our history – and then look again to the future.

As that debate is joined, I want to underscore that while it's uncomfortable and unpleasant to reexamine this period, it's important that this period not define the intelligence community in anyone's minds. Every single day, the State Department and our diplomats and their families are safer because of the men and women of the CIA and the Intelligence Community. They sign up to serve their country the same way our diplomats and our military do. They risk their lives to keep us safe and strengthen America's foreign policy and national security. The awful facts of this report do not represent who they are, period. That context is also important to how we understand history.

SECRETARY KERRY'S REMARKS WITH ITALIAN FOREIGN MINISTER GENTILONI

FROM:  U.S. STATE DEPARTMENT 
Remarks With Italian Foreign Minister Paolo Gentiloni Before Their Meeting
Remarks
John Kerry
Secretary of State
Treaty Room
Washington, DC
December 9, 2014

SECRETARY KERRY: I’m very, very happy to welcome the newly appointed Italian Foreign Minister Paolo Gentiloni. We have already met in a couple of places thus far. We had a chance to talk and get to know each other.

But I want to thank him and thank Italy for the tremendous partnership that we have on so many different issues. Italy is right there, working hand in hand, helping not the United States but global aspirations and values that we all share – in Afghanistan, fighting Ebola, helping to stand up and deal with the problem of Ukraine and the work we’ve been doing to stay united and to try to respect the territorial integrity and the sovereignty of Ukraine.
On Libya, Italy has helped us enormously by acting as our protectorate; in other words, representing us without our embassy there at this time. And we’re grateful for the Italian connection and understanding of Libya and the important contribution they can make to resolving this conflict.

So everywhere you turn on the conflicts of today, including the Middle East peace process, we have a partnership. We are moving in the same direction, and that is the best way to be able to solve some very, very difficult problems. So Paolo, I welcome you.
And my pleasure, by the way, to offer you – I have a little gift here. We have the Milan Expo coming up this year, and we just appointed our commissioner to the Milan Expo. And the theme of the Milan Expo for this year, with maybe 20 million visitors or more, and many, many people taking part through the internet, is food security, global food security in an age of insecurity. And just to make sure that the Italian foreign minister is able to do his part, I have a very special apron for you to wear as you do your own food preparation.

FOREIGN MINISTER GENTILONI: I’ll do it.

SECRETARY KERRY: I know. Yeah, I’m sure you will. (Laughter.) Anyway, very, very happy to have you here. Welcome. We’re delighted to have you. Thanks, Paolo.

FOREIGN MINISTER GENTILONI: Thank you very much, John. Well, thanks, first of all, for your support and American participation to the Milan 2015 Expo, which is dedicated, as you said, to feeding the planet. It will be a global and also very Italian event, and I think it will be a very important thing. Our meetings we confirm the excellent relations between Italy and U.S. in all fields, I should say – economy, culture, and obviously on political and security issues.

I think that these good relations – these excellent relations are very important now that we are facing new challenges as an alliance, especially in Europe, both in our eastern and in our southern borders. And so we need to strengthen even more this cooperation. We will do that, and I’m convinced that the Italian-American friendship will continue to promote peace, democracy, and the human rights. So thank you very much, John.

SECRETARY KERRY: Thank you, Paolo.

FOREIGN MINISTER GENTILONI: Thank you.

SECRETARY KERRY: (In Italian). Grazie.

FOREIGN MINISTER GENTILONI: Grazie.

SECRETARY KERRY: Thank you all very much. Thank you.

WHITE HOUSE VIDEO: 12/8/14 WHITE HOUSE PRESS BRIEFING

DOD VIDEO: SECRETARY HAGEL ON DELAY IN WITHDRAWING TROOPS FROM AFGHANISTAN

A.G. HOLDER ANNOUNCES STRICTER POLICIES REGARDING PROFILING

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, December 8, 2014
Attorney General Holder Announces Federal Law Enforcement Agencies To Adopt Stricter Policies To Curb Profiling

WASHINGTON – U.S. Attorney General Eric Holder announced Monday that the Justice Department will take new steps to bar profiling by federal law enforcement agencies, building upon a 2003 policy that had previously only addressed the consideration of race and ethnicity in conducting federal investigations. The new policy will address the use of other characteristics as well—including national origin, gender, gender identity, religion, and sexual orientation—and applies a uniform standard to all law enforcement, national security, and intelligence activities conducted by the Department’s law enforcement components. The new guidance also applies to state and local law enforcement law officers who participate in federal law enforcement task forces.

The issuance of the new policy completes a thorough review first launched by the Attorney General shortly after taking office, and reaffirms the federal government’s deep commitment to ensuring that its law enforcement agencies conduct their activities in an unbiased manner.

In announcing the new policy, the Attorney General said that biased law enforcement practices not only perpetuate negative stereotypes and promote mistrust of law enforcement, but also are counterproductive to the goal of good policing.

“As Attorney General, I have repeatedly made clear that racial profiling by law enforcement is not only wrong, it is misguided and ineffective – because it can mistakenly focus investigative efforts, waste precious resources and, ultimately, undermine the public trust.  Particularly in light of  recent incidents we’ve seen at the local level – and the concerns about trust in the criminal justice process which so many have raised throughout the nation – it’s imperative that we take every possible action to institute sound, fair and strong policing practices.”

The Attorney General added: “With this new Guidance, we take a major and important step forward to ensure effective policing by federal law enforcement officials – as well as state and local law enforcement participating in federal task forces throughout the nation.  This Guidance is the product of five years of scrupulous review.  It codifies important new protections for those who come into contact with federal law enforcement agents and their partners.  And it brings enhanced training, oversight, and accountability to federal law enforcement across the country, so that isolated acts do not tarnish the exemplary work that’s performed by the overwhelming majority of America’s hard-working law enforcement officials each and every day."

The new policy, which is spelled out in a memorandum circulated Monday, instructs that, in making routine or spontaneous law enforcement decisions, officers may not use race, ethnicity, gender, national origin, religion, sexual orientation, or gender identity to any degree, unless listed characteristics apply to a suspect description. Under the policy, federal law enforcement officers will be prohibited from acting on the belief that possession of a listed characteristic by itself signals a higher risk of criminality.

In all activities other than routine or spontaneous law enforcement, officers may consider the listed personal characteristics only to the extent there is trustworthy information, relevant to the locality or timeframe, that links individuals with a listed characteristic to a particular criminal incident, criminal scheme, organization, a threat to national or homeland security, a violation of federal immigration law or an authorized intelligence activity.  In relying on any of the listed characteristics, an officer must also reasonably believe that the activity to be undertaken is merited under the totality of the circumstances.

EXPORT-IMPORT BANK, VIRGINIA SMALL BUSINESS DEVELOPMENT CENTER WILL WORK TO INCREASE EXPORTS

FROM:  U.S. EXPORT-IMPORT BANK  
Ex-Im Bank Joins with Virginia Small Business Development Center to Boost Local U.S. Exports

WASHINGTON, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) has joined forces with the Virginia Small Business Development Center/George Mason University to assist local businesses to boost their export sales and add quality American jobs as part of Ex-Im Bank's City/State Program.

The City/State Program helps ensure that Ex-Im Bank's export finance products are more accessible to small and medium-sized businesses by way of local, state, and regional economic development and business support organizations. Each City/State Program member pledges to make financing assistance and entrepreneurial services available to local businesses in order to create, promote, and expand exports from their area. Ex-Im Bank provides members with free marketing and training materials, qualified finance experts to speak at members’ local events, assistance with outreach and counseling, and access to a network of lenders, insurance brokers, and U.S. Government export resources.

The program is expected to accelerate export business and job growth by connecting Bank products and services to a statewide network of Small Business Development Centers (SBDCs).

“Ex-Im Bank can offer Virginia businesses that want to grow their exports numerous tools and resources,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “In FY 2014 alone, Ex-Im Bank supported $306.2 million in Virginia small business exports, and we would like to increase the amount in the coming year.”

“The Virginia SBDC Network is very pleased to be in the City/State program,” said Jody Keenan, State Director for the Virginia SBDC Network. “The SBDC helps companies overcome barriers to exporting, and Ex-Im Bank resources and expertise are important financial solutions to bring to our clients.”

Small business exporters can learn more about how Ex-Im Bank products can empower them to increase foreign sales visiting exim.gov/smallbusiness.

U.S.-FRANCE MAKE AGREEMENT ON COMPENSATION FOR CERTAIN HOLOCAUST-RELATED VICTIMS

FROM:  U.S. STATE DEPARTMENT 
U.S.-France Agreement on Compensation for Certain Victims of Holocaust-Related Deportation from France Who Are Not Covered by French Programs

Fact Sheet
Office of the Spokesperson
Washington, DC
December 5, 2014

The United States and France have reached an agreement for substantial compensation in connection with the wrongs suffered by Holocaust victims deported from France. The United States and France plan to sign the agreement Monday, December 8th. The centerpiece of the agreement is a $60 million lump sum payment by France to the United States, to pay out to eligible claimants. France recognizes that Americans and other foreigners deported during the Holocaust have not been able to gain access to the French pension program, and has agreed to compensate them through this agreement. In exchange for the lump sum, the U.S. Government would undertake an international obligation to recognize and affirmatively protect the immunity of France and its instrumentalities with regard to Holocaust deportation claims in the United States, and to act as necessary to ensure an enduring legal peace.

The agreement is expected to result in payments to several thousand U.S. citizens and others around the world. The U.S. Government will be solely responsible for distributing the funds among eligible claimants. There are three categories of claimants.

First, those who survived deportation from France and are nationals of a country other than France (with the exception of those from countries covered by bilateral agreements with France: Belgium, Poland, the United Kingdom, and former Czechoslovakia) will be eligible to apply. It is estimated that each of these eligible survivors would receive a payment of over one hundred thousand dollars.

Second, spouses of those who were deported from France and are nationals of a country other than France (or one of the four countries mentioned above) will be eligible to apply. It is estimated that each spouse would receive a payment of tens of thousands of dollars.

Third, estates “standing in the shoes” of survivors or spouses who died after the end of World War II would be eligible to apply for compensation on their behalf. These estates would need to show that the deported survivor or the surviving spouse was a national of a country other than France (or one of the four countries mentioned above). The amount of payments to the estates of survivors and spouses would depend upon the year when the survivor or spouse died.

The French Parliament must approve the agreement before it enters into force, and before any payments can be made. Following entry into force, the United States will publish a notice of the program, including the information needed for the filing of claims. Claimants will then be afforded an adequate period of time to file their claims through a fair and streamlined procedure.

French citizens, who are not covered by this agreement, may continue to apply under the French pension program, even if they have never applied before, or applied and were turned down. Moreover, all individuals who were minors at the time of the deportation and lost a parent who was deported and died during the Holocaust are eligible for a pension or lump sum payment through a French program created for such orphans of any nationality. France has already paid over $60 million to over 1,000 eligible orphans in the United States, and additional amounts to orphans from Israel and other countries. Others who lost one or both parents may apply.

DOJ SETTLES WITH BUS CO. IN PEOPLE WITH DISABILITIES ACCESSIBILITY CASE

FROM:  U.S. JUSTICE DEPARTMENT
Friday, December 5, 2014
Justice Department Announces Settlement with Virginia Bus Company to Ensure Accessibility for People with Disabilities

The Justice Department announced today that it has entered into a settlement under the Americans with Disabilities Act (ADA) with DC Trails Inc., a bus transportation company in Lorton, Virginia, that ensures that their buses are accessible to people with disabilities, including individuals who use wheelchairs or other mobility aids.  DC Trails is a covered large, fixed-route over-the-road bus operator under the ADA.

The settlement is the result of collaborative enforcement efforts between the Civil Rights Division at the Justice Department, the United States Attorney’s Office for the Eastern District of Virginia and the Federal Motor Carrier Safety Administration (FMCSA) of the U.S. Department of Transportation (DOT).  The agreement remedies violations by DC Trails, including failing to provide accessible buses for all trips, failing to report the number of passengers with disabilities that used the lift to board, requiring individuals with disabilities to provide advance notice prior to a trip and failing to train its staff on accessibility requirements.  The settlement agreement requires DC Trails to:

Comply with all ADA requirements for accessible service, and not exclude persons with disabilities from their transportation services;

Ensure that the company’s employees and contractors do not require or otherwise inform passengers with disabilities who use or seek to use DC Trails’ fixed route service that they must provide advance notice in order to use an accessible bus;

Ensure that DC Trails only uses wheelchair-accessible buses for its fixed route service; and

Train all employees and contractors on the requirements of the ADA for large, fixed-route over the road bus operators.

“Intercity bus service is a growing and effective means of affordable transportation across this country,” said Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “People with disabilities must be able to count on accessible bus service that is equal to the service provided to others.”

“This settlement agreement demonstrates the United States Attorney’s Office’s commitment to ensure that individuals with disabilities receive equal access to public accommodations, including transportation services that are operated out of Northern Virginia,” said U.S. Attorney Dana Boente for the Eastern District of Virginia.

This is the Justice Department’s 24th settlement with bus companies over the past several years to ensure compliance with accessibility obligations.

Title III of the ADA prohibits discrimination against people with disabilities by public accommodations, including large over-the-road bus companies.  DOT’s regulations implementing the ADA require that these companies perform regular maintenance checks to ensure that wheelchair lifts work, provide prompt accessible service with an alternative carrier if the company does not have a lift-equipped bus, train their employees on accessibility requirements, and file annual accessibility reports with the FMCSA.

This matter was handled for the Department by Assistant United States Attorney Steven Gordon, Coordinator of the United States Attorney’s Office’s Civil Rights Enforcement Program, and David W. Knight of the Civil Rights Division.

U.S. EXPORT-IMPORT BANK CHAIRMAN RELEASES STATEMENT ON EXPORT DATA

FROM:  U.S. EXPORT-IMPORT BANK 
Export-Import Bank Chairman Fred P. Hochberg’s Statement on the Release of Export Data from the Commerce Department
U.S. Exports Reach $197.5 Billion in October

Washington, D.C. – Ex-Im Bank Chairman and President Fred P. Hochberg issued the following statement with respect to October’s export data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department. According to BEA, the United States exported $197.5 billion of goods and services in October 2014.

“These numbers clearly demonstrate that products stamped ‘made in America’ are in high demand throughout the world,” said Hochberg. “Ex-Im Bank will continue to support U.S. exporters and their workers as they expand their footprint in the global marketplace and create good-paying jobs here at home.”

Exports of goods and services over the last twelve months totaled $2.3 trillion, which is 47.7 percent above 2009 levels, and have been growing at an annualized rate of 8.5 percent over the last five years.

SEC SANCTIONS PROGRAMMER FOR ROLE IN TRADING SECURITIES USING VIRTUAL CURRENCIES

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission today sanctioned a computer programmer for operating two online venues that traded securities using virtual currencies Bitcoin or Litecoin without registering the venues as broker-dealers or stock exchanges.

The programmer, Ethan Burnside, also was sanctioned for conducting unregistered offerings.  He significantly cooperated with the SEC’s investigation and agreed to settle the case by paying more than $68,000 comprising his profits from the unregistered venues plus interest and a penalty.  He also is barred from the securities industry.

According to the SEC’s order instituting a settled administrative proceeding, Burnside and his company BTC Trading Corp. operated two online enterprises – BTC Virtual Stock Exchange and LTC-Global Virtual Stock Exchange – from August 2012 to October 2013.  These exchanges provided account holders the ability to use Bitcoin or Litecoin to buy, sell, and trade securities of businesses (primarily virtual currency-related entities) listed on the exchanges’ websites.  The venues weren’t registered as broker-dealers despite soliciting the public to open accounts and trade securities.  The venues weren’t registered as stock exchanges despite enlisting issuers to offer securities for the public to buy and sell.  The SEC’s order also finds that Burnside conducted separate transactions in which he offered investors the opportunity to use virtual currencies to buy or sell shares in the LTC-Global exchange itself and a separate Litecoin mining venture he owned and operated.  These offerings were not registered with the SEC as required under the federal securities laws.

“Burnside operated two online enterprises that weren’t properly registered to engage in the securities business they were conducting,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office.  “The registration rules are vitally important investor protection provisions, and no exemption applies simply because an entity is operating on the Internet or using a virtual currency in securities transactions.”

According to the SEC’s order, Burnside and BTC Trading Corp. actively solicited the public to open accounts by advertising the websites for both of his stock exchanges on the Bitcoin Forum and other websites dedicated to virtual currency.  The solicitation efforts resulted in approximately 2,655 users opening online accounts with LTC-Global exchange and executing approximately 60,496 trades through the website, paying a total of 12,081 litecoins in transaction-based compensation.  Approximately 7,959 users opened online accounts with the BTC exchange and executed approximately 366,490 trades through the website, paying a total of 2,141 bitcoins in transaction-based compensation.  The SEC’s order finds that in this line of business, Burnside and BTC Trading Corp. were required to register their online enterprises with the SEC as brokers or dealers.

The SEC’s order further finds that Burnside and BTC Trading Corp. failed to register the LTC-Global exchange or the BTC exchange as exchanges despite providing issuers a platform to create and list initial and secondary offerings of securities in exchange for a listing fee.  A total of 52 issuers paid BTC Trading Corp. 11,450 litecoins in listing fees to list their shares with the LTC-Global exchange, and 69 issuers paid 210 bitcoins in listing fees to list their shares with the BTC exchange.

The SEC’s order finds that Burnside willfully violated Sections 5(a) and 5(c) of the Securities Act of 1933, and that Burnside and BTC Trading Corp. willfully violated Sections 5 and 15(a) of the Securities Exchange Act of 1934.  Without admitting or denying the SEC’s findings, Burnside and BTC Trading Corp. consented to cease and desist from committing or causing any future violations of the registration provisions.  Burnside agreed to be barred from the securities industry with the right to reapply after two years, and he must pay $58,387.07 in disgorgement and prejudgment interest plus a penalty of $10,000.  The penalty amount reflects prompt remedial acts taken by Burnside as he cooperated with the SEC’s investigation.

The SEC’s investigation was conducted in coordination with the agency’s Digital Currency Working Group by New York Regional Office staff Daphna A. Waxman, Daphne P. Downes, Philip R. Moustakis, and Valerie A. Szczepanik.  The case was supervised by Amelia A. Cottrell.

NOAA OCEAN TODAY: 'DEEP-OCEAN VOLCANOES'

NASA VIDEO| ASTEROID BENNU'S JOURNEY

CFTC ANNOUNCES COURT ORDERED SANCTIONS AGAINST PRECOCIOUS METALS COMPANY

FROM:  U.S. COMMODITY FUTURES TRADING COMMISSION 

Federal Court Orders More than $1.3 Million in Sanctions and Enters a Default Judgment Order against Florida-Based Gold Distributors, Inc. and Its Owner, Jordan Cain, for Engaging in Illegal, Off-Exchange Commodity Transactions

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge William J. Zloch of the U.S. District Court for the Southern District of Florida entered an Order of default judgment against Defendants Gold Distributors, Inc. (GDI) of Hallandale Beach, Florida, and its sole owner Jordan Cain of Miami, Florida. The Order requires the Defendants to pay restitution in the amount of $337,266 and a civil monetary penalty of $1,011,800. The Order also imposes permanent trading, solicitation, and registration bans against the Defendants and prohibits them from violating provisions of the Commodity Exchange Act (CEA), as charged.

The Order, entered on November 24, 2014, stems from a CFTC Complaint filed on March 19, 2014, that charged the Defendants with engaging in illegal, off-exchange transactions in precious metals with retail customers on a leveraged, margined, or financed basis (see CFTC Press Release 6884-14).

Specifically, the Order finds that between January 2012 and February 2013, the Defendants offered to enter into, executed, and confirmed the execution of financed gold and silver transactions with persons who were not eligible contract participants as defined by the CEA. The Order further finds that the Defendants introduced 27 customers to AmeriFirst Management, LLC (AmeriFirst), a precious metals wholesaler and clearing firm that financed and purported to confirm the execution of customer precious metals transactions. The Defendants transferred at least $797,577 to AmeriFirst for the purchase of precious metals and received commissions and fees totaling at least $337,266 for the retail financed precious metals transactions executed through AmeriFirst, according to the Order. The Order also finds that Cain was liable, as GDI’s controlling person, for GDI’s violations of the CEA.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, financed transactions such as those conducted by GDI, are illegal off-exchange transactions unless they result in actual delivery of metal within 28 days. According to the Order, the Defendants and AmeriFirst never actually delivered any precious metals to any of the Defendants’ customers.

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.

On July 29, 2013, the CFTC, in a separate action in the U.S. District Court for the Southern District of Florida, charged AmeriFirst and its principals with fraud and other violations of the CEA. On September 18, 2013, the court found AmeriFirst and its principals liable for illegal, off-exchange precious metals transactions and fraud, and on, July 24, 2014, the court imposed sanctions of over $35 million against AmeriFirst and its principals (see CFTC Press Releases 6655-13 and 6973-14).

MAN SENTENCED TO 10 YEAR PRISON TERM FOR FILING LIENS AGAINST FEDERAL OFFICIALS

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, December 4, 2014
Georgia Resident Sentenced in Nebraska for Filing False Liens Against Federal Officials

A Pelham, Georgia, man was sentenced on Dec. 2 in the U.S. District Court for the District of Nebraska to serve 10 years in prison followed by three years of supervised release for filing false retaliatory liens against federal government officials, announced Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division.

On Sept. 4, David Randall Due was convicted by a jury on all seven counts charged in the superseding indictment.

At trial, the evidence showed that David Randall Due and Donna Kozak, a resident of La Vista, Nebraska, and member of the sovereign citizen group “Republic for the united States of America,” conspired and agreed to retaliate against several federal officials in Nebraska by filing false liens claiming false interests in the officials’ property for millions of dollars.  Due prepared the false liens in Georgia and Kozak filed them in Nebraska counties.  Kozak and Due filed the liens in retaliation for the federal criminal tax prosecution and trial convictions of associates David and Bernita Kleensang.  Each targeted federal official had some connection to either a tax prosecution of David and Bernita Kleensang in June 2012 or the subsequent indictment of Kozak for tax offenses.

In September 2012, Kozak and Due filed one $19 million false lien in Boyd County, Nebraska, on property owned by the federal U.S. District Court judge who presided over the Kleensang trial.  Kozak was subsequently indicted by a federal grand jury for filing the false lien and for other tax-related charges.  While she was on release pending trial, Due provided her with five more false liens, which she filed in Washington County, Nebraska, on properties owned by a second federal U.S. District Court judge, the U.S. Attorney, two Assistant U.S. Attorneys, and an Internal Revenue Service-Criminal Investigation (IRS-CI) special agent.

On Aug. 1, Kozak was tried and convicted by a jury in the U.S. District Court for the District of Nebraska.  Her sentencing is scheduled for Jan. 6, 2015.

This case was investigated by special agents of the FBI and IRS-CI, and was prosecuted by trial attorneys from the Tax Division.

WHITE HOUSE VIDEO: VP BIDEN SPEAKS AT 2014 TRIBAL NATIONS CONFERENCE

CHIROPRACTOR SENT TO PRISON FOR FRAUD

FROM:  U.S. JUSTICE DEPARTMENT
Wednesday, December 3, 2014
Former New Jersey Chiropractor Sentenced to Prison for Fraud

A man formerly of Neptune, New Jersey, was sentenced today in the U.S. District Court for the District of New Jersey to serve 54 months in prison to be followed by five years of supervised release, the Justice Department and the Internal Revenue Service (IRS) announced.

In February 2014, a jury convicted David Moleski, a pilot and former chiropractor, of 14 counts of mail fraud, one count of wire fraud, one count of corruptly endeavoring to obstruct and impede Internal Revenue laws and three counts of submitting false claims for tax refunds.  Moleski was sentenced by U.S. District Judge Freda L. Wolfson, who also ordered that Moleski pay a $10,000 fine and, as a condition of release, $48,199 in restitution.

According to the evidence presented in court, Moleski submitted three false tax returns in 2009 for tax years 2006 through 2008 that collectively requested more than $1.3 million in income tax refunds to which he was not entitled.  Prior to filing these returns, Moleski failed to file tax returns from 1999 through 2005, even though he was legally required to file.  When the IRS assessed taxes for those years and began collecting, Moleski obstructed the collection efforts and demanded that a third-party financial institution not comply with an IRS levy.  In addition, Moleski attempted to pay credit card bills and other debts with fake financial instruments that claimed to draw on an account at the U.S. Treasury that did not actually exist.  For instance, Moleski sent a fake financial instrument for $500,000 in alleged payment of a mortgage debt.

The case was investigated by special agents of IRS-Criminal Investigation.  Trial Attorneys Tino M. Lisella and Yael T. Epstein of the Tax Division prosecuted the case, with the assistance of the U.S. Attorney’s Office for the District of New Jersey.

U.S. OFFICIALS REPORT ON CREATING A POWER GRID ACROSS CENTRAL AMERICA

FROM:  U.S. STATE DEPARTMENT 
Investing in a Power Grid to Connect Communities Across Central America
Bureau of Energy Resources
December 3, 2014
Investing in a Power Grid to Connect Communities Across Central America

By Roberta S. Jacobson, Assistant Secretary of State for Western Hemisphere Affairs; Amos J Hochstein, Acting Special Envoy and Coordinator for International Energy Affairs; and Scott Nathan, Special Representative for Commercial and Business Affairs, United States Department of State

Western Hemisphere energy markets are in a period of profound transformation, as the United States and partners throughout the region seize opportunities to reform and expand energy production, integrate economies, create jobs, and enhance stability and citizen security. U.S. leadership in the energy sector is helping to catalyze and support more sustained and equitable economic growth.

Nowhere does this prospect of energy-led economic growth offer greater potential than in Central America’s electricity sector, where countries have the opportunity to build a future of clean, reliable, and affordable electricity by connecting power grids across borders and developing a regional electricity market.

Those of us who enjoy reliable access to affordable electricity are prone to take it for granted. However, without it, businesses of all sizes cannot compete in today’s global economy, pushing prosperity out of reach for too many workers and their families.

With this in mind, President Obama, Colombia’s President Santos and the region’s other leaders agreed at the 2012 Summit of the Americas to make electricity supplies cleaner, more reliable, and affordable by expanding electrical interconnections and scaling up low-carbon power generation. They set a ten-year deadline under the initiative Connecting the Americas 2022, or Connect 2022.

In the two years since, the United States, Central American countries, Colombia, and Mexico have worked to advance the Connect 2022 vision. President Obama and Vice President Biden have engaged the region’s leaders to build support for energy integration, especially in Central America and the Caribbean. As President Obama told leaders in Costa Rica last year, everybody stands to benefit from a more free flow of electricity across borders.

Through our energy diplomacy, we have brought Central American policymakers together with the private sector to identify a clear path forward. Through U.S.-funded technical assistance, we are helping Central American regulators and grid operators meet their power sector investment requirements and clean energy goals.

The results are promising. Last year, the Central American Electricity Interconnection System (SIEPAC) adopted rules for cross-border power trade that unleashed impressive growth in the regional electricity market. A more active market will make it easier to replace expensive, dirty oil-fired generation with cleaner, cheaper sources of power, whether renewable energy or natural gas.

And last month, the final stretch of the SIEPAC regional transmission line was completed. This is a milestone achievement that links six Central American countries and forms the backbone of the regional market. Countries have already used the SIEPAC line to swap power in times of shortage, keeping schools and businesses open, instead of suffering through blackouts due to droughts.

As a result of these efforts, power infrastructure is now connected from Canada to Panama.

Yet there is more to be done. Central Americans still pay the second highest electricity rates in the Americas, second only to the Caribbean. These high prices constrain needed economic development and direct foreign investment that can create new opportunities for families and businesses alike.

Central America needs to upgrade and better integrate national and regional transmission capacity, improve market rules, and attract investment. If Colombia and Panama move forward with the planned interconnection, Andean markets would connect to Central America, increasing the market size and investment opportunity for all. If the region introduces natural gas, it will need to set clear and predictable rules.

These changes are not easy; some will require tough political decisions. But the result will be worth it: greater competition, increased efficiency, and reduced prices for consumers. It will create attractive new opportunities for investment and increase overall competitiveness.

It will also affect millions of lives throughout the region in real and immediate ways. Children will be able to do school work or read at night by electric light. Once towns are connected to the power grid, those children will be able to teach their parents how to use a computer and introduce them to the limitless opportunities of the internet. Health clinics will maintain cold chains for vaccines, and electric cooking will improve indoor air quality and the health of families.

On November 4, President Otto Perez Molina of Guatemala hosts energy policymakers, regulators, and private sector representatives at the Connect 2022 Mesoamerican Energy Investment Summit in Guatemala City.

The United States strongly supports this Investment Summit, in collaboration with the Inter-American Development Bank and World Bank. We urge policymakers from the region to use the Summit to demonstrate progress on regional integration and showcase the opportunities that are emerging as a result of increased electricity trade and new interconnections. We encourage the private sector to convey clearly what policymakers and regulators still need to do to attract private capital. We look forward to a successful Investment Summit that motivates all who participate to work hard to advance Connect 2022 goals and give Central America’s citizens the opportunity for prosperity that we all deserve.

Central America has set a strong example for the hemisphere by completing the SIEPAC line. Now it must take the next steps to allow energy to flow across the line in ways that reduce prices, spur economic growth, attract needed investment, and lead to broader regional integration. We congratulate the region and look forward to working together to achieve our Presidents’ vision for Connecting the Americas by 2022.