U.S. SECRETARY OF DEFENSE PANETTA WARNS ABOUT UPCOMMING SEQUESTRATION EFFECTS

FROM: U.S. DEPARTMENT OF DEFENSE

Panetta Memo Describes Possible Sequestration Effects
By Jim Garamone
American Forces Press Service

WASHINGTON, Dec. 20, 2012 - While many remain hopeful that Congress and the administration will reach a deal that avoids sequestration, Defense Secretary Leon E. Panetta has issued a memo describing the potential implications of going over the fiscal cliff.

Planning for the effects of an across-the-board cut in defense spending as part of the Budget Reduction Act of 2011 "is only prudent," said DOD officials. Under the law, the reductions are due to take place Jan. 2, 2013.

Panetta said it is too early to assess what effects sequestration will have. He did say that it will not affect military personnel or military end strength as President Barack Obama announced his intent to exempt the military personnel accounts from sequestration last summer.

The secretary did clarify the potential implications of sequestration in his memo.

"If it occurs, sequestration will reduce our budgetary resources for the remainder of the fiscal year," the memo says. "These cuts, while significant and harmful to our collective mission as an agency, would not necessarily require immediate reductions in spending."

There is no threat of a government shutdown because of sequestration, Panetta said in the memo.

"Everyone will show up for work on January 3, 2013, and continue to drive on," said Army Lt. Col. Elizabeth Robbins, a Pentagon spokeswoman.

The memo states that there will be no immediate civilian personnel actions such as furloughs.

"Should we have to operate under reduced funding levels for an extended period of time, we may have to consider furloughs or other actions in the future," Panetta said in the memo. "But let me assure you that we will carefully examine other options to reduce costs within the agency before taking such actions."

If the department does need to take these actions, affected employees will receive all appropriate notifications, the secretary noted.

The Defense Department is already reducing its budget by $487 billion over 10 years. The Budget Control Act calls for a further $500 billion in cuts at DOD unless Congress and the administration pass a new law averting it.

"Sequestration was never intended to be implemented and there is no reason why both sides should not be able to come together and prevent this scenario," Panetta wrote.

THREE MORE JOURNEY INTO SPACE

FROM:  NASA

New Trio Launches to Join Expedition 34
The Soyuz TMA-07M spacecraft launched from the Baikonur Cosmodrome in Kazakhstan to the International Space Station at 7:12 a.m. EST on Wednesday, Dec. 19.

States move forward

States move forward

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY
The aircraft carrier USS Dwight D. Eisenhower (CVN 69) transits the Atlantic Ocean en route to homeport at Naval Station Norfolk after operating in the U.S. 5th and 6th Fleet areas of responsibility in support of Operation Enduring Freedom, maritime security operations and theater security cooperation efforts. (U.S. Navy photo by Mass Communication Specialist Seaman Jermaine M. Ralliford/Released)

The Los Angeles-class attack submarine USS Greeneville (SSN 772) moors to the pier at Joint Base Pearl Harbor-Hickam after a six-month deployment to the western Pacific region. (U.S. Navy photo by Mass Communication Specialist 2nd Class Steven Khor Released)

Press Briefing | The White House

Press Briefing | The White House

ELI LILLY AND COMPANY SETTLES FOREIGN CORRUPT PRACTICES CHARGES WITH SEC

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today charged Eli Lilly and Company with violations of the Foreign Corrupt Practices Act (FCPA) for improper payments its subsidiaries made to foreign government officials to win millions of dollars of business in Russia, Brazil, China and Poland.

The SEC alleges that the Indianapolis-based pharmaceutical company’s subsidiary in Russia used offshore "marketing agreements" to pay millions of dollars to third parties chosen by government customers or distributors, despite knowing little or nothing about the third parties beyond their offshore address and bank account information. These offshore entities rarely provided any services, and in some instances were used to funnel money to government officials in order to obtain business for the subsidiary. Transactions with off-shore or government-affiliated entities did not receive specialized or closer review for possible FCPA violations. Paperwork was accepted at face value and little was done to assess whether the terms or circumstances surrounding a transaction suggested the possibility of foreign bribery.

The SEC alleges that when the company did become aware of possible FCPA violations in Russia, Lilly did not curtail the subsidiary’s use of the marketing agreements for more than five years. Lilly subsidiaries in Brazil, China, and Poland also made improper payments to government officials or third party entities associated with government officials. Lilly agreed to pay more than $29 million to settle the SEC’s charges.

As alleged in the SEC’s complaint filed in federal court in Washington D.C.:
Lilly’s subsidiary in Russia paid millions of dollars to off-shore entities for alleged "marketing services" in order to induce pharmaceutical distributors and government entities to purchase Lilly’s drugs, including approximately $2 million to an off-shore entity owned by a government official and approximately $5.2 million to off-shore entities owned by a person closely associated with an important member of Russia’s Parliament. Despite the company’s recognition that the marketing agreements were being used to "create sales potential" with government customers and that it did not appear that any actual services were being rendered under the agreements, Eli Lilly allowed its subsidiary to continue using the agreements for years.
Employees at Lilly’s subsidiary in China falsified expense reports in order to provide spa treatments, jewelry, and other improper gifts and cash payments to government-employed physicians.
Lilly’s subsidiary in Brazil allowed one of its pharmaceutical distributors to pay bribes to government health officials to facilitate $1.2 million in sales of a Lilly drug product to state government institutions.
Lilly’s subsidiary in Poland made eight improper payments totaling $39,000 to a small charitable foundation that was founded and administered by the head of one of the regional government health authorities in exchange for the official’s support for placing Lilly drugs on the government reimbursement list.
Lilly agreed to pay disgorgement of $13,955,196, prejudgment interest of $6,743,538, and a penalty of $8,700,000 for a total payment of $29,398,734. Without admitting or denying the allegations, Lilly consented to the entry of a final judgment permanently enjoining the company from violating the anti-bribery, books and records, and internal controls provisions of the FCPA, Sections 30A, 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act. Lilly also agreed to comply with certain undertakings including the retention of an independent consultant to review and make recommendations about its foreign corruption policies and procedures. The settlement is subject to court approval.

STRAW BUYER MORTGAGE FRAUD SCHEME NETS A 70 MONTH PRISON TERM FOR LAS VEGAS REAL ESTATE AGENT

FROM: U.S. DEPARTMENT OF JUSTICE

Wednesday, December 19, 2012
Las Vegas Real Estate Agent Sentenced to 70 Months in Prison for Her Role in Mortgage Fraud Scheme

WASHINGTON – A Las Vegas real estate agent was sentenced today to serve 70 months in prison for her participation in a mortgage fraud scheme that netted more than $10 million in fraudulent mortgage loans, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada, and Special Agent in Charge Kevin Favreau of the FBI’s Las Vegas Field Office.

Linda Marie Kot, 58, was sentenced by U.S. District Judge Kent J. Dawson in the District of Nevada. In addition to her prison term, Kot was sentenced to serve five years of supervised release and ordered to pay $3,891,811 in forfeiture.

In May 2012, after a five-day trial, a federal jury in Las Vegas found Kot guilty of three counts of bank fraud and one count of conspiracy to commit mail, wire and bank fraud.

According to court documents and evidence presented at trial, Kot participated in a scheme with members of an investment group to submit fraudulent loan documents to lenders that involved "straw buyers," individuals with good credit scores whose names were put on the properties but who were not intended to be responsible for the payment of the mortgages or other expenses of the properties. The scheme took place in 2006 and involved 13 new home purchases, three existing home sales and several loan applications that were not approved.

According to the evidence at trial and court documents, Kot and her co-conspirators caused material misstatements to be placed on loan applications, including information about the true owners and controllers of the properties; whether the properties would be primary residences; and the level of assets and income of the straw buyers. In some cases, Kot put straw buyers on her bank account to make it appear that the straw buyers had assets that they did not have, in order to help them qualify for mortgage loans for which they otherwise would not have been eligible. Kot made over $276,000 in commissions on the fraudulent sales, the evidence at trial showed.

One of the counts of conviction involved a similar scheme that Kot engaged in with members of her family from 2005 to 2006. The evidence at trial showed that Kot and members of her family used straw buyers and fraudulent loan applications to buy properties. Kot and members of her family paid the straw buyers fees, and any profits on sale of the houses were split among family members.

While Kot and her family members were able to sell most of the properties they bought with straw buyers before the market downturn, the investment group that Kot conspired with was not able to do so, according to evidence presented at trial. As a result, most of the mortgages for the houses that the investment group bought in 2006, where Kot acted as the realtor, ended up in default and foreclosure, with many of the straw buyers ending up in bankruptcy.

Three co-conspirators, Hugo Coutelin, Jeff Thomas and Michael Perry, previously pleaded guilty for their roles in the fraud scheme. In September 2012, Coutelin and Perry were each sentenced to 15 months in prison and Thomas was sentenced to time served.

This case was investigated by the FBI. Trial Attorneys Nicholas S. Acker and Fred Medick of the Fraud Section in the Justice Department’s Criminal Division prosecuted the case, with assistance from the U.S. Attorney’s Office for the District of Nevada. Fraud Section Trial Attorney Brian Young and former Fraud Section Trial Attorneys Matt Klecka and Joseph Capone also assisted with the investigation.

Today’s sentencing was a result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.StopFraud.gov

LS3 ROBOT: NOT QUITE R2D2, YET!

The Defense Advanced Research Projects Agency's Legged Squad Support System will relieve troops of their 100-pound equipment load, take voice commands and maneuver around obstacles, in addition to numerous other tasks in the field. DARPA photo.

FROM: U.S. DEPARTMENT OF DEFENSE

Robot to Serve as Future Military's 'Pack Mule'
By Terri Moon Cronk
American Forces Press Service

WASHINGTON, Dec. 19, 2012 - The warfighter who carries up to 100 pounds of equipment on his back is expected to get relief from the cumbersome weight, officials at the Defense Advanced Research Projects Agency say.

Enter the robot.

It's not just any robot. DARPA's semiautonomous Legged Squad Support System -- also known as the LS3 -- will carry 400 pounds of warfighter equipment, walk 20 miles at a time, and act as an auxiliary power source for troops to recharge batteries for radios and handheld devices while on patrol.

Now in trials, the "pack mule" robot might have numerous functions, but its primary responsibility is to support the warfighter, said Army Lt. Col. Joseph K. Hitt, program manager in DARPA's tactical technology office.

"It's about solving a real military problem: the incredible load of equipment our soldiers and Marines carry in Afghanistan today," Hitt said. The consequences of that kind of load can be soft-tissue injuries and other complications, he added.

And as the weight of their equipment has increased, so have instances of fatigue, physical strain and degraded performance, officials have noted. Reducing the load warfighters carry has become a major point for research and development, DARPA officials say, because the increasing weight of equipment has a negative effect on warfighter readiness.

DARPA's five-year, $54 million LS3 project began in September 2009, and now is undergoing trials in the field. The LS3 must become familiar with different types of terrain, from wooded areas to deserts, and with varying weather conditions such as rain and snow, Hitt explained.

The LS3 prototype completed its first outdoor assessment in January, demonstrating its mobility by climbing and descending a hill and exercising its perception capabilities.

Following a "highly successful" trial at Fort Pickett near Blackstone, Va., earlier this month, Hitt said, the robot worked with the Marine Corps Warfighting Laboratory there and developed additional behaviors.

The robot's sensors allow it to navigate around obstacles at night, maneuver in urban settings, respond to voice commands, and gauge distances and directions. The LS3 also can distinguish different forms of vegetation, Hitt said, when walking through fields and around bushes. With the ability to avoid logs and rocks, the LS3's intelligent foot placement on rough terrain is a key element, he said.

The next trial will challenge the robot with the desert terrain at Twentynine Palms Marine Corps Base in California, and subsequent trials will follow every three months, Hitt said.

"The vision is a trained animal and its handler," he said, adding that a squad leader would learn 10 basic commands to tell the robot to do such things as stop, sit, follow him tightly, follow him on the corridor, and go to specific coordinates.

"The technology of the robot focuses on mobility, perception and human-robot interaction," Hitt said.

With the expectation of delivering the first LS3 to a Marine Corps squad in two years, the program culminates a decade of research and development. Yet it still needs some tweaks, Hitt acknowledged.

"We have to make sure the robot is smart like a trained animal," he said. "We need to make sure it can follow a leader in his path, or follow in its own chosen path that's best for itself. The interaction between the leader and the robot [must be] intuitive and natural."

President Obama Speaks on Preventing Gun Violence | The White House

President Obama Speaks on Preventing Gun Violence | The White House

Diplomatic Corps Holiday Reception | The White House

Diplomatic Corps Holiday Reception | The White House

CLINICAL DIRECTOR FOR HEALTH CARE CLINIC SENTENCED IN $50 MILLION MEDICARE FRAUD

FROM: U.S. DEPARTMENT OF JUSTICE

Thursday, December 20, 2012
Clinical Director for Miami-based Health Care Clinic Sentenced to Prison for Role in $50 Million Medicare Fraud Scheme

WASHINGTON – A former clinical director for Biscayne Milieu, a Miami-based mental-health clinic, was sentenced today to 100 months in prison for his participation in a Medicare fraud scheme involving the submission of more than $50 million in fraudulent billings to Medicare, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.

Rafael Alalu, 47, of Miami, was sentenced today by U.S. District Judge Robert N. Scola Jr. in the Southern District of Florida. Alalu was convicted on Aug. 24, 2012, of one count of conspiracy to commit health care fraud and two substantive counts of health care fraud, following a two-month jury trial. The evidence at trial showed that Alalu participated in treating ineligible patients, concealing that fact by falsifying patient files and writing fraudulent group therapy notes, and instructing others to do the same. In addition to the prison term, Alalu was ordered to pay more than $5.6 million in restitution, jointly and severally with his co-defendants.

Various owners, doctors, managers, therapists, patient brokers and other employees of Biscayne Milieu have also been charged with various health care fraud, kickback, money laundering and other offenses in two indictments unsealed in September 2011 and May 2012. Biscayne Milieu, its owners, and more than 25 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial. Antonio and Jorge Macli and Sandra Huarte – the owners and operators of Biscayne Milieu – and Dr. Gary Kushner – its medical director – were each convicted at trial of various offenses and are scheduled for sentencing in March 2013.

According to the evidence at trial, the defendants and their co-conspirators caused the submission of over $50 million dollars in false and fraudulent claims to Medicare through Biscayne Milieu, which purportedly operated a partial hospitalization program (PHP) – a form of intensive treatment for severe mental illness. Instead, the defendants devised a scheme in which they paid patient recruiters to refer ineligible Medicare beneficiaries to Biscayne Milieu for services that were never provided. Many of the patients admitted to Biscayne Milieu were not eligible for PHP because they were chronic substance abusers, suffered from severe dementia and would not benefit from group therapy, or had no mental health diagnosis but were seeking exemptions for their U.S. citizenship applications. The evidence at trial showed that once these ineligible patients were admitted to Biscayne Milieu, Alalu and others concealed the fraud by falsifying patients’ group therapy notes to reflect legitimate PHP treatment that was never provided, and directed others to do so.

The case is being prosecuted by Assistant U.S. Attorneys Michael Davis and Marlene Rodriguez of the U.S. Attorney’s Office for the Southern District of Florida, and by Trial Attorney James V. Hayes of the Fraud Section of the Justice Department’s Criminal Division. The case was investigated by the FBI with the assistance of HHS-OIG, and was brought by the U.S. Attorney’s Office for the Southern District of Florida in coordination with the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

OPERATION CHRISTMAS DROP



Crew members on a C-130 Hercules from Yokota Air Base, Japan, push a donated bundle of humanitarian supplies and gifts out the side door of the aircraft over an island in Micronesia, Dec. 18, 2012. Each year, the C-130s fly to Guam to carry bundles to islands in need during Operation Christmas Drop. U.S. Air Force photo by Tech. Sgt. Samuel Morse.

FROM: U.S. DEPARTMENT OF DEFENSE

Operation Christmas Drop Wraps Up in Pacific

By Donna Miles
American Forces Press Service

WASHINGTON, Dec. 19, 2012 - The world's longest-running humanitarian mission came to a close yesterday as U.S. military members and volunteers delivered more than 39,000 pounds of aid and holiday cheer to Pacific islanders during Operation Christmas Drop.

This year marked the 61st anniversary of the mission, providing support to more than 30,000 islanders from Chuuk, Palau, Yap, the Marshall Islands and the Commonwealth of the Northern Mariana Islands, officials reported.

Airmen from the 36th Wing at Andersen Air Force Base, Guam, as well as family members and local volunteers, and airmen from the 36th Airlift Squadron at Yokota Air Base, Japan, kicked off the mission Dec. 11, officials reported. Carefully preparing packages of toys, clothing, fishing equipment, sporting goods, food items, tools and other goods, they airdropped them from C-130 Hercules aircraft to 54 islands.

The mission, the oldest of U.S. Pacific Command's outreach activities across the Asia-Pacific region, dates back to 1952. An aircrew from the 54th Weather Reconnaissance Squadron, based at the time in Guam, noticed islanders waving to them as they flew over the Micronesian atoll of Kapingamarangi. The crewmembers gathered items from their WB-29 Superfortress aircraft, attached them to a parachute they had fashioned, and airdropped them from the plane.

The islanders -- who lived at the time without running water or electricity and had recently been hit by a string of ferocious typhoons -- scrambled to retrieve the gifts from above.

The tradition continues today, bringing together military members, students at the University of Guam, and local community and charitable organizations to support a common purpose.

"The time and dedication that people are willing to give is astounding," said Air Force Capt. Mitchell Foy, who led the Operation Christmas Drop committee. "It's amazing, watching everyone come together to make this humanitarian effort happen."

Air Force Col. David Gould, the 374th Operations Group commander, said he felt humbled to be part of the outpouring.

"When we all signed up to join the military, it was about service – not only service for our country, but service to the world," he said. "There are few operations on this planet that demonstrate as much commitment to service as Operation Christmas Drop."



　

　

Reacting to stress

Reacting to stress

U.S. JUSTICE REACHES SETTLEMENT WITH PUBLISHER REGARDING ALLEGED NON-COMPETITIVE PRICING OF E-BOOKS

FROM: U.S. DEPARTMENT OF JUSTICE

Tuesday, December 18, 2012
Justice Department Reaches Settlement with Penguin Group (USA) Inc. in E-Books Case
Department Continues to Litigate Against Apple Inc. and Macmillan to Prevent Continued Restrictions on Price Competition

WASHINGTON – The Department of Justice announced today that it has reached a settlement with Penguin Group (USA) Inc.–one of the largest book publishers in the United States–and will continue to litigate against Apple Inc. and Holtzbrinck Publishers LLC, which does business as Macmillan, for conspiring to raise e-book prices to consumers.

Today’s proposed settlement was filed in the U.S. District Court for the Southern District of New York. If approved by the court, the settlement will resolve the department’s competitive concerns as to Penguin, ending Penguin’s role as a defendant in the civil antitrust lawsuit filed by the department on April 11, 2012.


The department’s Antitrust Division previously settled its claims against three book publishers–Hachette Book Group Inc., HarperCollins Publishers L.L.C. and Simon & Schuster Inc. The department said that the publishers eliminated retail price competition, resulting in consumers paying millions of dollars more for their e-books. The settlement with those three publishers was approved by the court in September 2012. A trial against Macmillan and Apple currently is scheduled to begin in June 2013.


"Since the department’s settlement with Hachette, HarperCollins and Simon & Schuster, consumers are already paying lower prices for the e-book versions of many of those publishers’ new releases and bestsellers," said Jamillia Ferris, Chief of Staff and Counsel at the Department of Justice’s Antitrust Division. "If approved by the court, the proposed settlement with Penguin will be an important step toward undoing the harm caused by the publishers’ anticompetitive conduct and restoring retail price competition so consumers can pay lower prices for Penguin’s e-books."


According to the complaint, the five publishers and Apple were unhappy that competition among e-book sellers had reduced e-book prices and the retail profit margins of the book sellers to levels they thought were too low. To address these concerns, the department said the companies worked together to enter into contracts that eliminated price competition among bookstores selling e-books, substantially increasing prices paid by consumers. Before the companies began their conspiracy, retailers regularly sold e-book versions of new releases and bestsellers for, as described by one of the publisher’s CEO, the "wretched $9.99 price point." As a result of the conspiracy, consumers were typically forced to pay $12.99, $14.99, or more for the most sought-after e-books, the department said.

Under the proposed settlement agreement, Penguin will terminate its agreements with Apple and other e-books retailers and will be prohibited for two years from entering into new agreements that constrain retailers’ ability to offer discounts or other promotions to consumers to encourage the sale of the Penguin’s e-books. The proposed settlement agreement also will impose a strong antitrust compliance program on Penguin, which will include a requirement that it provide advance notification to the department of any e-book ventures it plans to undertake jointly with other publishers and that it regularly report to the department on any communications it has with other publishers. Also for five years, Penguin will be forbidden from agreeing to any kind of most favored nation (MFN) agreement that could undermine the effectiveness of the settlement.

The department is currently reviewing the proposed joint venture announced by Penguin and Random House Inc., the largest U.S. book publisher. Should the proposed joint venture proceed to consummation, the terms of Penguin’s settlement will apply to it.

Penguin Group (USA) Inc. has its principal place of business in New York City. It publishes e-books and print books through publishers such as The Viking press and Gotham Books. Penguin Group (USA) Inc. is the U.S. subsidiary of The Penguin Group, a division of Pearson plc, which has its principal place of business in London.

Hachette Book Group USA has its principal place of business in New York City. It publishes e-books and print books through its publishers such as Little, Brown and Company and Grand Central Publishing.

HarperCollins Publishers, L.L.C. has its principal place of business in New York City. It publishes e-books and print books through publishers such as Harper and William Morrow.

Macmillan has its principal place of business in New York City. It publishes e-books and print books through publishers such as Farrar, Straus and Giroux, and St. Martin’s Press. Verlagsgruppe Georg von Holtzbrinck GmbH owns Holtzbrinck Publishers LLC, which does business as Macmillan, and has its principal place of business in Stuttgart, Germany.

Simon & Schuster Inc. has its principal place of business in New York City. It publishes e-books and print books through publishers such as Free Press and Touchstone.

Apple Inc. has its principal place of business in Cupertino, Calif. Among many other businesses, Apple distributes e-books through its iBookstore.

The proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register, consistent with the requirements of the Antitrust Procedures and Penalties Act.

AU OPTRONICS CORPORATION EXECUTIVE CONVICTED FOR ROLE IN LCD PRICE-FIXING CONSPIRACY

FROM: U.S. DEPARTMENT OF JUSTICE ANTITRUST DIVISION

WASHINGTON — Following a three-week trial, a federal jury in San Francisco today convicted an executive of the largest Taiwan liquid crystal display (LCD) producer for his participation in a worldwide conspiracy to fix the prices of thin-film transistor-liquid crystal display (TFT-LCD) panels sold worldwide, the Department of Justice announced.

Shiu Lung Leung, AU Optronics Corp.’s former senior manager in the Desktop Display Business Group, was found guilty today in U.S. District Court for the Northern District of California in San Francisco, of participating in a worldwide TFT-LCD price-fixing conspiracy from May 15, 2002 to Dec. 1, 2006.

AU Optronics Corp., based in Hsinchu, Taiwan, and its American subsidiary, AU Optronics Corp. America, headquartered in Houston, were found guilty on March 13, 2012, following an eight-week trial. Former AU Optronics Corp. president Hsuan Bin Chen and former AU Optronics Corp. executive vice president Hui Hsiung were also found guilty at that time. A mistrial was declared against Leung after that trial. Today’s verdict is the result of Leung’s retrial.

"This international price-fixing conspiracy impacted countless American consumers by raising the price of computer monitors, notebooks and televisions containing LCD panels," said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. "Today’s guilty verdict demonstrates that the Antitrust Division will continue to hold executives accountable for crimes that undermine a competitive marketplace."

The indictment charged that AU Optronics Corp. participated in the worldwide price-fixing conspiracy from Sept. 14, 2001, to Dec. 1, 2006, and that its subsidiary joined the conspiracy as early as spring 2003. Today a jury found that Leung, along with the previously convicted companies and former executives, was guilty of fixing the prices of LCD panels sold in the United States. The conspirators fixed the prices of LCD panels during monthly meetings with their competitors, which were secretly held in hotel conference rooms, karaoke bars and tea rooms around Taiwan.

LCD panels are used in computer monitors and notebooks, televisions and other electronic devices. By the end of the conspiracy, the worldwide market for LCD panels was valued at $70 billion annually. The LCD price-fixing conspiracy affected some of the largest computer manufacturers in the world, including Hewlett Packard, Dell and Apple.

The company and its U.S. subsidiary were sentenced on Sept. 20, 2012, before Judge Susan Illston, to pay a $500 million criminal fine, matching the largest fine imposed against a company for violating U.S. antitrust laws. Chen and Hsiung were each sentenced to serve three years in prison and to each pay a $200,000 criminal fine.

As a result of this ongoing investigation, eight companies have pleaded guilty or been convicted to date and have been sentenced to pay criminal fines totaling more than $1.39 billion. Of the 22 charged executives, 13 have pleaded guilty or have been convicted and seven remain fugitives. The executives who have been sentenced have been ordered to serve a combined total of 4,871 days in prison.

The maximum penalty for a Sherman Act violation for an individual is 10 years in prison and a $1 million fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory fine.

HOUSING DEVELOPMENT OR, IS IT REDEVELOPMENT?

Early Settler Cabin In Lower Michigan.

FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY
EPA Study Reveals Shift in Housing Developments Across the U.S.
More communities embrace redevelopment

WASHINGTON – The U.S. Environmental Protection Agency (EPA) released a new report examining residential construction trends in America’s metropolitan regions, which finds that nearly three out of four large metropolitan regions saw an increased share of new housing development in previously developed areas during 2005 - 2009 compared to 2000 - 2004.

Known as infill housing, this type of development provides economic and public health benefits to metropolitan areas while protecting the local environment. Infill housing saves money and energy by taking advantage of previous investments in existing infrastructure (such as water, sewer, and roads). This type of development can also help preserve open space, protect natural resources, and reduce transportation emissions and the amount of polluted stormwater washing off new roadways and other paved surfaces.

Infill housing has also been shown to help raise property values, increase a community’s tax base, and attract retail businesses to serve the larger residential population.

This report examines data on the location of new home development in metropolitan regions, as well as data on pre-existing land cover. The report also includes a listing of resources available to local, regional, and state leaders who wish to coordinate land use, housing, and transportation policies.

The findings of the report demonstrate that infill has become a significant portion of the U.S. housing market. Among all 209 metropolitan regions examined, 21 percent of new homes were infill, while the remaining share was built on undeveloped land outside existing communities. Seventy-one percent of large metropolitan regions saw an increased share of infill housing development. Among 51 large metropolitan regions examined in this study, 36 saw an increased share of infill housing development during 2005-2009 compared to 2000-2004. For example, eight out of ten new homes in San Jose, Calif. were infill. New York, Los Angeles, and San Francisco all saw a majority of new home construction in previously developed areas during the same time period.

EPA published the first and second editions of Residential Construction Trends in America's Metropolitan Regions in 2009 and 2010. This 2012 report builds on previous work with the HUD-DOT-EPA Partnership for Sustainable Communities to measure metropolitan development trends.

21ST CENTURY ENERGY DIPLOMACY

Photo:  Wind Power Turbines.  From U.S. Air Force.

FROM: U.S. STATE DEPARTMENT

Energy Diplomacy in the 21st Century
Fact Sheet
Washington, DC
December 19, 2012
　

ENERGY DIPLOMACY IN THE 21st CENTURY
Energy cuts across the entirety of U.S. foreign policy. It’s a matter of national security and global stability. It’s at the heart of the global economy. It’s also an issue of democracy and human rights."
- Secretary of State Hillary Rodham Clinton

Energy is at the intersection of national security and economic prosperity. The Department of State’s efforts in bilateral and multilateral diplomacy, economic statecraft, security, and development are widely affected by energy concerns. Secretary Clinton created the Bureau of Energy Resources in 2011 to integrate energy security interests into foreign policy decision making, putting energy diplomacy at the forefront of U.S. foreign policy. We are working to advance U.S. energy policy goals along three main pillars:

Energy Diplomacy

To meet the need for the traditional hydrocarbon resources we predominantly rely upon today and to manage the implications those resources have on national wealth and geopolitical power and influence, we:
Promote a stable global energy supply by engaging diplomatic partners and private producers to maintain supply, calm markets, and pursue alternative energy options. This includes extensive diplomatic efforts to maintain global oil supplies in the context of implementing sanctions on Iran, as well as coordinating with our diplomatic partners the effective implementation of sanctions, particularly on petroleum and petroleum products.
Continue to strengthen energy diplomacy efforts with new and emerging producers of all forms of energy by supporting the development of energy resources and transportation options.
Engage through international fora to build broad agreements on policies to boost global energy security.
Energy Transformation

To aid in the development of international markets that drive private demand and finance for the technologies and fuels that will transform the ways nations use and produce energy, we:
Encourage regional approaches to transmission grid interconnection and market development to help create larger markets, enhance system reliability, and energy efficiency, and facilitate the integration and trade of electricity from renewable technologies.
Create an enabling environment for U.S. companies to provide the technology, innovation, and capital to help guide the global transition to a twenty-first century energy economy estimated at $20 trillion in value through 2035.
Lead international efforts on energy transformation and clean energy, for example by working within the International Renewable Energy Agency to promote diffusion of renewable energy technologies and adoption of best practices.
Energy Governance and Access

To counter poverty and lack of development resulting from a lack of access to energy, poor resource management, or both, we:
Encourage responsible resource management by sharing best practices for sound, transparent energy sector governance, including development of technical understanding, transparent and accountable legal and regulatory regimes, financial management, and health, safety, and environmental practices in line with international standards.
Expand energy access through economic statecraft and partnerships with development agencies to help encourage creation of commercially viable models backed by private investment.
Examples of Energy Diplomacy in Action

There is a wide array of initiatives and practices underway that illustrate our focus on energy issues. Examples include:
Sustainable Energy for All (SEA4ALL): The United States is a key participant in the UN Secretary-General’s SE4ALL initiative, which aims, to provide by 2030 universal access to modern energy service while doubling the global rate of improvement in energy efficiency and the share of renewable energy.
Connecting the Americas 2022: This Presidential initiative seeks to enhance electrical interconnections across the Western Hemisphere to achieve universal access over the next decade for the more than 31 million people without electricity.

U.S. ASSISTANT ATTORNEY GENERAL BREUER COMMENTS ON UBS LIBOR MANIPULATION CASE

FROM: U.S. DEPARTMENT OF JUSTICE

Assistant Attorney General Lanny A. Breuer Speaks at the UBS Press Conference
Washington, D.C. ~ Wednesday, December 19, 2012

UBS Japan has agreed to plead guilty in connection with one of the most significant scandals ever to hit the global banking industry. For years, including at the height of the financial crisis, UBS manipulated its submissions to the British Bankers’ Association for calculation of the London Interbank Offered Rate, or LIBOR. UBS AG, the banking giant and parent company of UBS Japan, has also entered into a non-prosecution agreement with the Justice Department, agreeing together with UBS Japan to pay $500 million to resolve our allegations related to the bank’s manipulation of LIBOR. Together with approximately $1 billion in regulatory penalties and disgorgement, these criminal penalties bring the total amount of today’s resolution to $1.5 billion.

The bank’s conduct was simply astonishing. Hundreds of trillions of dollars in mortgages, student loans, credit card debt, financial derivatives, and other financial products worldwide are tied to LIBOR, which serves as the premier benchmark for short-term interest rates. In short, the global marketplace depends upon an accurate LIBOR. Yet UBS, like Barclays before it, sought repeatedly to fix LIBOR for its own ends – in this case, so UBS traders could maximize profit on their trading positions, and so the bank wouldn’t appear vulnerable to the public during the financial crisis.

In addition to UBS Japan’s agreement to plead guilty, two former UBS traders – Tom Alexander William Hayes and Roger Darin – have been charged, in a criminal complaint unsealed today, with conspiracy to manipulate LIBOR. Hayes has also been charged with wire fraud and an antitrust violation. There was nothing subtle about these traders’ alleged conduct. In one instance, according to the complaint, Hayes explained to a junior rate submitter that he and Darin "generally coordinate" and "skew the libors a bit." In another instance, according to the complaint, Hayes told a trader at another bank that, "3m libor is too high cause i have kept it artificially high."

The scope of the misconduct admitted to by UBS AG and UBS Japan is far-reaching. For years, traders at UBS sought to manipulate the bank’s LIBOR submissions for their own profit. The traders had positions in interest rate swaps that depended on UBS’s LIBOR submissions. And, on numerous occasions, they caused UBS to make LIBOR submissions that directly benefited their own trading books. UBS’s manipulation was extensive, and covered several currencies and interest rates.

Make no mistake: for UBS traders, the manipulation of LIBOR was about getting rich. As one broker told a UBS derivatives trader, according to the statement of facts appended to our agreement with the bank, "mate yur getting bloody good at this libor game . . . think of me when yur on yur yacht in monaco wont yu."

From 2006 to 2009, according to the complaint unsealed today against Hayes and Darin, Hayes arranged to move UBS’s Yen LIBOR submissions in directions that would maximize his profit on the trading positions he took for the bank; and Darin repeatedly made false Yen LIBOR submissions on behalf of Hayes. The complaint also alleges that Hayes contacted brokers to influence them to disseminate false information about LIBOR. Hayes further allegedly made efforts to coordinate with traders at other banks to try to move their banks’ LIBOR submissions in directions that would help his trading positions.

Since the government’s investigation began, UBS has changed its senior leadership and improved its compliance and training programs. UBS has also cooperated with the Justice Department, and has agreed to continue doing so, as we pursue our ongoing, and active investigation into the manipulation of LIBOR.

We cannot, and we will not, tolerate misconduct on Wall Street of the kind admitted to by UBS today, and by Barclays last June. We will continue to follow the facts and the law wherever they lead us in this matter, as we do in every case.

I want to thank the many tenacious prosecutors in the Criminal Division, as well as the Antitrust Division, who are working on the LIBOR investigation, as well as the many talented agents and analysts at the FBI who have worked so hard on this case. I would also like to thank our colleagues at the Commodity Futures Trading Commission, the United Kingdom Financial Services Authority, and the Securities and Exchange Commission for their important parallel investigations; and the Swiss Financial Market Supervisory Authority, the Japanese Ministry of Justice, and the Japan Financial Services Authority for their valuable assistance.

Thank you.

THE 2012 DOOMSDAY PROPHECY NASA VIDEO

FROM: NASA

Beyond 2012: NASA Seeks to Debunk Doomsday Prophecy
As 2012 draws to a close, many websites, books and cable television shows are erroneously predicting the end of the world. These claims range from fears that a rogue planet is heading toward Earth, to solar flares torching our planet.

David Morrison, a senior scientist and astrobiologist at NASA's Ames Research Center is working to inform the public that each of the claims are false and there is no reason that December 21, 2012 will be different from any other day on Earth

U.S. State Department Briefing on the Accountability Review Board Report Regarding Benghazi

Briefing on the Accountability Review Board Report