Thursday, December 27, 2012

SEC ALLEGES INSIDER TRADING DURING IBM ACQUISITION OF SPSS INC.

Credit:  Wikimedia Commons.
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., Dec. 26, 2012 — The Securities and Exchange Commission today announced additional charges in an insider trading case against two brokers who traded on nonpublic information ahead of IBM Corporation’s acquisition of SPSS Inc.

In an amended complaint filed in federal court in Manhattan, the SEC is now charging research analyst Trent Martin, who was the brokers’ source of confidential information in an insider trading scheme that yielded more than $1 million in illicit profits. Martin worked at a brokerage firm in Connecticut and specialized in Australian equity investments, and he learned nonpublic information about the impending IBM-SPSS transaction from an attorney friend who was working on the deal. Rather than maintaining the confidence of the information, Martin used the information for his own benefit, purchasing SPSS securities and subsequently tipping his roommate Thomas C. Conradt, who traded and tipped his friend and fellow retail broker David J. Weishaus. Martin was specifically named as their source in instant messages between Conradt and Weishaus about their illegal trading.

The SEC charged Conradt and Weishaus with insider trading on November 29. Martin, who fled the U.S. to Australia soon after learning about the SEC’s investigation, currently lives in Hong Kong.

"Martin is a licensed professional who knowingly disregarded insider trading laws to enrich himself, and then fled the United States when he learned of our investigation," said Daniel M. Hawke, Director of the SEC’s Philadelphia Regional Office. "Martin could run but he could not hide, as the long arm of the SEC will extend to those who flee the United States hoping to avoid the consequences of their unlawful conduct."

The SEC alleges that Martin’s attorney friend expected him to maintain information in confidence and refrain from illegal trading or disclosing it to others. The attorney sought moral support, reassurance, and advice when he privately told Martin about his new assignment working on the IBM-SPSS acquisition. The lawyer disclosed to Martin such details as the anticipated transaction price and the identities of the acquiring and target companies while he was describing the magnitude of the assignment.

According to the SEC’s complaint, Martin attempted to purchase SPSS common stock on the very first business day after learning the nonpublic information from his friend. His first three orders were cancelled because he did not have sufficient funds in the account to make the purchases, but he later wired $50,000 from his checking account into his brokerage account to purchase SPSS shares.

The SEC’s complaint alleges that Martin, Conradt and Weishaus violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The SEC is seeking disgorgement of ill-gotten gains with prejudgment interest and financial penalties, and a permanent injunction against the brokers.

The SEC’s investigation, which is continuing, is being conducted by Mary P. Hansen, A. Kristina Littman, and John S. Rymas in the SEC’s Philadelphia Regional Office. G. Jeffrey Boujoukos and Catherine E. Pappas in the Philadelphia office are handling the litigation.

The SEC acknowledges the assistance of the Options Regulatory Surveillance Authority (ORSA), the New Zealand Securities Commission, and the Australia Securities and Investments Commission. The SEC also acknowledges the assistance of the U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation.

SEC CHARGES BROKERAGE FIRM FOR FAILING TO CURB MARKET MANIPULATION

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., Dec. 18, 2012 The Securities and Exchange Commission today charged a Toronto-based brokerage firm and its top two executives for failing to supervise overseas day traders who used the firm’s order management system to engage repeatedly in a manipulative trading practice known as layering.

In layering, a trader places orders with no intention of having them executed but rather to trick others into buying or selling a stock at an artificial price driven by the orders, which the trader later cancels. The SEC’s investigation found that Biremis – whose worldwide day trading business enabled up to 5,000 traders on as many 200 trading floors in 30 countries to gain access to U.S. markets – failed to address repeated instances of layering by many of the overseas day traders using its system. The firm’s co-founders Peter Beck and Charles Kim ignored repeated red flags indicating that overseas traders were engaging in layering manipulations. Biremis served as the broker-dealer for an affiliated Canadian day trading firm, Swift Trade Inc.

Biremis and the two executives agreed to a settlement in which the firm’s registration as a U.S. broker-dealer is revoked and permanent industry bars are imposed on Beck and Kim, who also will pay a combined half-million dollars to settle the SEC’s charges.

"Engaged and forceful supervisors are the first line of defense against individual misconduct in financial services companies," said Robert Khuzami, Director of the SEC’s Division of Enforcement. "Beck and Kim were neither, as they saw obvious red flags of market manipulation by their firm’s traders but failed to respond or take any steps to prevent the manipulation. They have learned the painful lesson that supervisors who fail to heed repeated red flags of misconduct will no longer have any place in the securities industry."

According to the SEC’s order instituting settled administrative proceedings, Biremis, Beck, and Kim exercised substantial control over the overseas day traders. They backed the traders’ trading with capital from Biremis, determined the amount of Biremis capital available to each individual trader to purchase stocks, and set and enforced daily loss limits on each trader. They also wielded authority to reprimand, restrict, suspend, or terminate traders.

The SEC’s order found that many of the Biremis-affiliated overseas day traders engaged in repeated instances of layering from January 2007 to mid-2010. Beck and Kim learned from numerous sources – including three U.S. broker-dealers and a Biremis employee – that layering was occurring, yet they failed to take any steps to prevent it. For example, in spring 2008, representatives of one U.S. broker-dealer warned Beck and Kim that certain overseas traders were "gaming" U.S. stocks by altering those stocks’ bid and offer prices in order to buy or sell the stock at the altered price. Beck and Kim failed to act on this information.

According to the SEC’s order, Biremis also failed to retain virtually all of its instant messages related to its broker-dealer business, and failed to file any suspicious activity reports (SARs) related to the manipulative trading.

"Broker-dealers must recognize that their supervisory responsibilities over their associated persons don’t end at the U.S. border," said Antonia Chion, Associate Director of the SEC’s Division of Enforcement. "Broker-dealers face severe consequences if they fail to supervise their traders who engage in manipulative trading, whether those traders are located in the U.S. or abroad."

The SEC’s order finds that Biremis, Beck, and Kim failed reasonably to supervise the firm’s associated persons (the overseas day traders) with a view to preventing and detecting their layering manipulations. The order also finds that Biremis willfully violated Exchange Act Section 17(a) and Rule 17a-8 by failing to file SARs and Section 17(a) and Rule 17a-4(b)(4) by failing to retain instant messages.

The SEC’s order revokes Biremis’ registration as a broker-dealer and requires the firm to cease and desist from committing or causing violations of Exchange Act Section 17(a) and Rules 17a-4(b)(4) and 17a-8. The SEC imposed permanent industry bars on Beck and Kim, who each agreed to pay penalties of $250,000. Biremis, Beck, and Kim neither admitted nor denied the findings contained in the SEC’s order.

The SEC’s investigation was conducted by senior counsel Paul J. Bohr and supervised by assistant director Ricky Sachar. The SEC acknowledges the assistance of the Ontario Securities Commission, the U.K. Financial Services Authority, and the Financial Industry Regulatory Authority (FINRA).

US Navy Videos: Naval Base Guam Holds Energy-Efficient Mini-Mart Opening Ceremony

US Navy Videos

U.S. FEDERAL TRAVEL REIMBURSEMENT RATES WILL NOT BE RAISED IN FY 2013

FROM: U.S. GENERAL SERVICES ADMINISTRATION

GSA Freezes Federal Travel Reimbursement Rates
Per Diem Rates for Fiscal Year 2013 Remain at 2012 Levels to cut costs
Aug. 14, 2012

WASHINGTON -- Today, the U.S. General Services Administration (GSA) announced it will set government-wide per diem travel reimbursement rates for fiscal year (FY) 2013 at current 2012 levels. The action will help federal agencies meet the Obama Administration's directives to reduce travel costs government-wide. GSA sets the federal government’s reimbursement rates for lodging, meals, and incidentals for federal employees’ official government travel. Freezing the federal travel reimbursement rates will save an estimated $20 million in avoided costs in FY 2013.

This action supports an Office of Management and Budget memorandum, directing federal agencies to decrease all travel spending in FY 2013 by 30 percent compared to FY 2010. In addition, as part of Acting Administrator Dan Tangherlini’s ongoing top-to-bottom review of GSA operations, freezing per diem rates is one of several measures the administrator has taken to ensure the agency is closely evaluating travel spending.

"GSA is undergoing a rigorous review process to find ways in which we can streamline agency operations and save money across the government," said Tangherlini. "By keeping per diem rates at current levels, we are supporting federal agencies in controlling costs and ensuring that taxpayer dollars are used wisely."

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ANTARTIC CAMPSITE FOUND THAT MAY HAVE BEEN USED BY FAMOUS 1912 EXPEDITION

 
Captain Robert Falcon Scott, leader of the Terra-Nova-Expedition ,1911-1913, in polar gear. From: Wikimedia Commons.

FROM:  NATIONAL SCIENCE FOUNDATION

December 13, 2012

 A National Science Foundation-funded research team working on the slopes of the world’s southernmost active volcano appears to have found the remains of a camp used by explorers of the so-called "Heroic Age" of Antarctic exploration, a century after the camp was abandoned.

Although photos of the site, known as "the highest camp", appear to match an archival photograph taken by members of the 1912 Terra Nova expedition led by Royal Navy Captain Robert F. Scott, conservators from the New Zealand-based Antarctic Heritage Trust have been asked to verify the historic find.

The find comes in the closing days of the centennial of the so-called "Race to the Pole" between Scott and Norwegian Roald Amundsen. Amundsen reached the geographic South Pole on Dec. 14, 1911, five weeks before Scott’s party. In the tragic finish to the race, Scott and his men perished on the ice on their return trip, only a few miles from safety.

A ring of stones, where a tent once stood in what may have been a Terra Nova campsite, was discovered by Clive Oppenheimer, a volcanologist at Cambridge University in the United Kingdom. Oppenheimer is working on Mt. Erebus, a 14,500-foot, ice-covered volcano, as part of a team of NSF supported researchers led by Phillip Kyle of the New Mexico Institute of Mining and Technology.

With support from NSF, Kyle has been studying Mt. Erebus for decades. The volcano is unique in the world, not only because of its location, but also because of other features, notably a lake of lava deep in the ice-covered crater.

Oppenheimer is the first known visitor to the site since Scott's men left. He found it using a combination of written accounts and historic images from the Scott Polar Research Institute in Great Britain, which was founded by one of the party that climbed the volcano in 1912.

Although Oppenheimer is working on Erebus as a member of a team supported by the U.S. Antarctic Program, which is managed by NSF, he found the site during a break in the research work.

NSF is taking steps, along with international partners New Zealand and the U.K., to insure that the archeological value of the site is maintained.

A survey will record the area and search for items that may have been left behind in 1912.

A number of the Heroic Age huts used by explorers such as Scott and Sir Ernest Shackleton in the early years of the 20th century, have similarly been preserved and contain a wide range of artifacts--from scientific equipment to expedition supplies--that have been extraordinarily well preserved by the extremely cold and dry Antarctic climate

Records show that a camp was erected in 1912 by a team from the shore party of the Terra Nova Expedition that climbed Mt. Erebus. This was the second group to examine the summit region of Mt Erebus. A group from Shackleton’s Nimrod Expedition (1907-1909), including famed Australian geologist Sir Douglas Mawson, was the first to climb Erebus and observe the active lava lake in 1908.

The team that camped at this site was led by geologist Raymond Priestley and included Tryggve Gran, a Norwegian ski specialist; Frederick Hooper, formerly a steward on the Terra Nova; Royal Navy Able Seaman Harry Dickason; Petty Officer George Abbott and geologist Frank Debenham. They undertook mapping and collected geological specimens.

It was during his time on Mt. Erebus that geologist Frank Debenham had the idea of a "Polar Research Institute." After serving in World War I, Debenham was named the founding director of the University of Cambridge's Scott Polar Research Institute.

Philippe Foster Back, granddaughter of Frank Debenham and chair of the United Kingdom Antarctic Heritage Trust, said "Clive Oppenheimer's location of the original 'highest camp' is a wonderful addition to all the activity which has taken place throughout 2012 to mark the centenary of Captain Scott's expedition. It is a reminder of both the dangers and thrills of Antarctic science and a fitting tribute to the great legacies of exploration and discovery left to us by all the brave men of that party."

Atop an Antarctic Volcano, NSF-funded Researcher Finds Camp Site from the "Heroic Age" of Antarctic Exploration

EPA SETS LIMITS FOR E. COLI IN DRINKING WATER

Credit:  Wikimedia Commons
FROM: U.S. ENVIROMENTAL PROTECTION AGENCY

EPA Updates Rule for Pathogens in Drinking Water, Sets Limit for E. Coli

WASHINGTON
- The U.S. Environmental Protection Agency (EPA) has updated the rule for pathogens in drinking water, including setting a limit for the bacteria E. coli to better protect public health.

The Revised Total Coliform Rule ensures that all of the approximately 155,000 public water systems in the United States, which provide drinking water to more than 310 million people, take steps to prevent exposure to pathogens like E. coli. Pathogens like E. coli can cause a variety of illnesses with symptoms such as acute abdominal discomfort or, in more extreme cases, kidney failure or hepatitis.

Under the revised rule, public drinking water systems are required to notify the public if a test exceeds the maximum contaminant level (MCL) for E. coli in drinking water. If E. coli or other indications of drinking water contamination are detected above a certain level, drinking water facilities must assess the system and fix potential sources and pathways of contamination. High-risk drinking water systems with a history of non-compliance must perform more frequent monitoring. The revised rule provides incentives for small drinking water systems that consistently meet certain measures of water quality and system performance.

Public water systems and the state and local agencies that oversee them must comply with the requirements of the Revised Total Coliform Rule beginning April 1, 2016. Until then, public water systems and primacy agencies must continue to comply with the 1989 version of the rule.

The Safe Drinking Water Act requires that EPA review each National Primary Drinking Water Regulation, such as the Total Coliform Rule, at least once every six years. The outcome of the review of the 1989 Total Coliform Rule determined that there was an opportunity to reduce implementation burden and improve rule effectiveness while at the same time increasing public health protection against pathogens in the drinking water distribution systems. EPA’s revised rule incorporates recommendations from a federal advisory committee comprised of a broad range of stakeholders and considers public comments received during a public comment period held in fall 2010.

EPA ADMINISTRATOR LISA P. JACKSON ANNOUNCES SHE IS LEAVING CABINET

FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY

STATEMENT BY EPA ADMINISTRATOR LISA P. JACKSON
ANNOUNCING HER LEAVING CABINET AFTER STATE OF UNION

WASHINGTON -- I want to thank President Obama for the honor he bestowed on me and the confidence he placed in me four years ago this month when he announced my nomination as Administrator of the Environmental Protection Agency. At the time I spoke about the need to address climate change, but also said: "There is much more on the agenda: air pollution, toxic chemicals and children’s health issues, redevelopment and waste-site cleanup issues, and justice for the communities who bear disproportionate risk." As the President said earlier this year when he addressed EPA’s employees, "You help make sure the air we breathe, the water we drink, the food we eat are safe. You help protect the environment not just for our children but their children. And you keep us moving toward energy independence…We have made historic progress on all these fronts." So, I will leave the EPA confident the ship is sailing in the right direction, and ready in my own life for new challenges, time with my family and new opportunities to make a difference.

CALLING AFGHANISTAN


Air Force Senior Airman Keshia Shutts receives a Christmas morning phone call from President Barack Obama while deployed at Kandahar Airfield, Afghanistan, Dec. 25, 2012. Obama called Shutts to wish her a Merry Christmas and thank her for her service. They talked about her 3-year-old daughter and her upcoming wedding. U.S. Air Force photo by Capt. Tristan Hinderliter
FROM: U.S. DEPARTMENT OF DEFENSE

Face of Defense: Airman Gets Presidential Christmas Call
By Air Force Capt. Tristan Hinderliter
451st Air Expeditionary Wing

KANDAHAR AIRFIELD, Afghanistan, Dec. 26, 2012 - "Hello, President Obama? ... I'm great, how are you?"

So began the most memorable phone call of a six-month deployment for Air Force Senior Airman Keshia Shutts with the 451st Expeditionary Logistics Readiness Squadron here, who received a Christmas morning phone call from President Barack Obama.

The commander in chief thanked Shutts for her service and asked if she had been able to talk to her 3-year old daughter, Sienna, back home in Angola, Ind. He also asked if Shutts, who is engaged, had set a date for her wedding ceremony.

"September 1, 2013," she replied. "You're more than welcome to attend our wedding."

Shutts, originally from Montpelier, Ohio, is deployed from the Ohio Air National Guard's 121st Logistics Readiness Squadron, based at Rickenbacker International Airport in Columbus, Ohio.

She is nearing the end of a six-month deployment to Kandahar Airfield, Afghanistan, where she has worked as an administrative assistant in the 451st ELRS command section for the last five months. She was nominated by her command to receive the call from the president in recognition of her outstanding performance.

"Airman Shutts conducts herself as a true quality airman," said Air Force Lt. Col. Manuel Perez, the 451st ELRS commander. "She demands perfection and professionalism and she really sets the example."

In addition to her official duties, Shutts volunteered at the Role 3 hospital, at the USO and as a victim advocate in the wing's Sexual Assault Prevention and Response program. She also mentored 30 Afghan children at the Kandahar Bazaar School.

Volunteering at the hospital and working with the Afghan children have been two highlights of her deployment, Shutts said.

Since Shutts has been at KAF, she has also completed Airman Leadership School and is pursuing her second bachelor's degree, in nursing.

"For me, nominating her was a no-brainer," Perez said. "If I had to pick my No. 1 airman in the squadron it would be her."

Shutts, who has been selected for staff sergeant and will sew on her new chevrons next month, said it was an honor to be selected to receive the phone call from the president.

"It was awesome," she said of the call. "Definitely a once-in-a-lifetime opportunity."

RECENT U.S. NAVY PHOTOS





FROM: U.S. NAVY, USS MOBILE BAY

121218-N-LV331-132 ARABIAN SEA (Dec. 18, 2012) Sailors hold a fuel line during a helicopter-in-flight refueling exercise aboard the Ticonderoga-class guided-missile cruiser USS Mobile Bay (CG 53). Mobile Bay is deployed with the John C. Stennis Carrier Strike Group to the U.S. 5th Fleet area of responsibility conducting maritime security operations, theater security cooperation efforts and support missions for Operation Enduring Freedom. (U.S. Navy photo by Mass Communication Specialist 2nd Class Armando Gonzales/Released)




121218-N-DC018-561 VIRGINIA BEACH, Va. (Dec. 18, 2012) Strike Fighter Squadron (VFA) 83, part of Carrier Air Wing (CVW) 7, returns to Naval Air Station Oceana after a six-month deployment to the U.S. 5th and 6th Fleet areas of responsibility supporting Operation Enduring Freedom, maritime security operations and theater of security cooperation efforts. (U.S. Navy photo by Mass Communication Specialist 2nd Class Antonio P. Turretto Ramos/Released)

THINGS ARE NOT PEACHY AT TWO GEORGIA BASED TAX PREPARERS

FROM: U.S. DEPARTMENT OF JUSTICE
Friday, December 21
Justice Department Seeks to Shut Down Georgia Tax
Preparers
Falsify Tax Returns, Costing U.S. Treasury More Than $100 Million Dollars

The United States has asked a federal court in Atlanta to bar Larry J. Heath, who operates Heath’s Income Tax II in Cartersville, Ga., and his brother Andrew R. Heath, who operates Excellent Tax Service of Acworth, Ga., from preparing tax returns for others, the Justice Department announced today. According to the government complaint, the Heaths and their businesses have repeatedly prepared federal tax returns that unlawfully understate customers’ federal tax liabilities. The suit alleges that the defendants concoct bogus losses, expenses, education credits, business expenses and charitable contributions, which they falsely report on their customers’ federal income tax returns.

According to the complaint, the Internal Revenue Service (IRS) previously suspended Larry Heath’s IRS-issued electronic filing identification number (EFIN) because of the large number of erroneous returns he prepared. In response, the complaint alleges, Larry Heath purported to "sell" his business to two different individuals and used their EFINs to continue to file tax returns.

The suit alleges that the IRS has examined thousands of income tax returns prepared by the Heaths and their businesses and found that 94.5 percent of tax returns required IRS adjustments. According to the complaint, the total harm to the U.S. Treasury caused by Larry and Andy Heath’s misconduct could exceed $100 million.

2012 INTERNATIONAL SPACE STATION CHRISTMAS CELEBRATION

FROM: NASA
 


 
Station Crew Celebrates Christmas

U.S. Department of Defense Armed with Science Update: SCIENCE AND SNIPERS

U.S. Department of Defense Armed with Science Update

U.S.-SLOVAKIA RELATIONS

 
Map:  Slovakia.  From:  CIA World Factbook.

FROM: U.S. STATE DEPARTMENT


The United States established diplomatic relations with Slovakia in 1993, and provided assistance to support the rebuilding of a healthy democracy and market economy. The United States and Slovakia have strong diplomatic ties and cooperate in the military and law enforcement areas. Slovakia has been a close North Atlantic Treaty Organization (NATO) ally and partner. The two countries have a mutual commitment to freedom and human rights. Slovakia has shared its experience in democratic transition with emerging democracies around the world, and has been a role model for other countries on the path to Euro-Atlantic integration.

U.S. Assistance to Slovakia

The goal of U.S. security assistance to Slovakia is to support Slovakia’s contribution to North Atlantic Treaty Organization (NATO) operations and regional stability. U.S. assistance provides support to Slovakia’s contributions to NATO missions, particularly in Afghanistan. U.S. assistance seeks to help Slovakia consolidate its gains and maintain its development as a positive and stabilizing influence among its neighbors, in the region, and globally.

Bilateral Economic Relations

Slovakia is a member of the European Union (EU), and its major trading partners are European countries. The U.S. economic relationship with the EU is the largest and most complex in the world, and the United States and the EU continue to pursue initiatives to create new opportunities for transatlantic commerce.

U.S. exports to Slovakia include energy equipment, medical equipment and supplies, electrical and electronic machinery and components, automotive parts and components, chemical products, and plastics. U.S. imports from Slovakia are dominated by Volkswagen and Audi sport utility vehicles that are manufactured in Slovakia. The United States and Slovakia have a bilateral investment treaty. Slovakia participates in the Visa Waiver Program, which allows nationals of participating countries to travel to the United States for certain business or tourism purposes for stays of 90 days or less without obtaining a visa.

Slovakia's Membership in International Organizations

Slovakia and the United States belong to a number of the same international organizations, including the United Nations, North Atlantic Treaty Organization, Euro-Atlantic Partnership Council, Organization for Security and Cooperation in Europe, Organization for Economic Cooperation and Development, International Monetary Fund, World Bank, and World Trade Organization. Slovakia also is an observer to the Organization of American States.
 

Slovakia Locator Map.  Credit:  CIA World Factbook.
 
ADDITIONAL INFORMATION FROM CIA WORLD FACTBOOK

Slovakia's roots can be traced to the 9th century state of Great Moravia. Subsequently, the Slovaks became part of the Hungarian Kingdom, where they remained for the next 1,000 years. Following the formation of the dual Austro-Hungarian monarchy in 1867, language and education policies favoring the use of Hungarian (Magyarization) resulted in a strengthening of Slovak nationalism and a cultivation of cultural ties with the closely related Czechs, who were themselves ruled by the Austrians. After the dissolution of the Austro-Hungarian Empire at the close of World War I, the Slovaks joined the Czechs to form Czechoslovakia. Following the chaos of World War II, Czechoslovakia became a Communist nation within Soviet-dominated Eastern Europe. Soviet influence collapsed in 1989 and Czechoslovakia once more became free. The Slovaks and the Czechs agreed to separate peacefully on 1 January 1993. Slovakia joined both NATO and the EU in the spring of 2004 and the euro area on 1 January 2009.

EMARSS: FUTURE SURVEILLANCE AIRCRAFT

 
Artist’s rendering of the Enhanced Medium Altitude Reconnaissance and Surveillance System now under development. (Photo by U.S. Army PEO IEWS)

FROM: U.S. DEPARTMENT OF DEFENSE 'ARMED WITH SCIENCE'

by jtozer
Amry Developing NextGen Surveillance Aircraft


Army scientists, engineers and program developers are making substantial progress building and integrating a technically sophisticated battlefield surveillance aircraft called Enhanced Medium Altitude Reconnaissance and Surveillance System in a laboratory at Aberdeen Proving Ground, Md., service officials said.

The initial task, now underway at Aberdeen’s Joint Test and Integration Facility, is aimed at engineering and integrating an Enhanced Medium Altitude Reconnaissance and Surveillance System or EMARSS, fuselage with cameras, sensors, software, antennas, intelligence databases and electronic equipment.

This is so the Army can deliver four Engineering Manufacturing Development aircraft to Afghanistan as part of a forward assessment of the capabilities, said Raymond Santiago, deputy product manager, Medium Altitude Reconnaissance and Surveillance Systems.

"An EMARSS Forward Operational Assessment will place this system in the hands of our soldiers, allowing them to inform an assessment as to whether the system meets the approved requirements. We will get to see the system being used to gather real-world data in a combat environment, with a high optempo. This will help us refine and establish the architecture for the platform," an Army acquisition official explained.

The Army plans to complete the EMARSS EMD Phase with a minimum of four aircraft systems. Overall, the EMD contract has options to procure two additional EMD systems and 4-6 Low Rate Initial Production systems.

Plans for the EMARSS aircraft include efforts to engineer a surveillance aircraft with a wide range of vital combat-relevant capabilities, such as the ability to quickly gather, integrate and disseminate intelligence information of great value to warfighters in real time. It is being built to do this with an integrated suite of cameras, sensors, communications and signals intelligence-gathering technologies and a data-link with ground-based intelligence databases allowing it to organize and communicate information of great relevance to a commander’s area of responsibility, Santiago explained.

The work at the JTIF laboratory, involving a significant development and integration-related collaborative effort with Army and industry engineers, is aimed at reducing risk through rapid prototyping and software and sensor integration. The EMARSS fuselage in the laboratory is a built-to specification model of a Hawker Beechcraft King Air 350, Santiago said.
"The laboratory gives us the flexibility to try things out with the fuselage. This helps us with how we configure the equipment."
A key aim of the effort is to engineer and configure a modular aircraft designed with "open architecture" and a plug-and-play capability, allowing it to successfully integrate and function effectively with a variety of different sensor payloads, software packages and electronic equipment, he said.

"We want to build one bird with as many common capability packages on it as well as a full-motion video camera. We want it to be sensor agnostic," Santiago said.

For example, the EMARSS aircraft is being configured to integrate a range of sensor packages such as Electro-Optical/Infrared cameras, MX-15 full-motion video cameras and an imaging sensor technology known as Wide Area Surveillance System able to identify and produce images spanning over a given area of terrain, Army acquisition officials explained.

The EMARSS capability is unique in that it is engineered with a data-link connecting the aircraft to the Army’s ground-based intelligence database called Distributed Common Ground System – Army. DCGS-A is a comprehensive integrated intelligence data repository, able to compile, organize, display and distribute information from more than 500 data sources.

DCGS-A incorporates data from a wide array of sensors, including space-based sensors, geospatial information and signal and human intelligence sources.

By having a data-link with information from the ground-bases DCGS-A, flight crews on board EMARSS will be able to use display screens and on-board electronics to receive and view intelligence information in real-time pertaining to their area of operations.
"As they are flying over an area, the EMARSS crew is able to immediately pick up the latest information from what other nearby intelligence assets are picking up. They can immediately get results from DCGS-A and see it on their display screens. Intelligence experts on the ground are doing analysis, and they can send relevant information back up to the aircraft."
Also, EMARSS’ plug-and-play, open architecture framework is being engineered so that the aircraft could potentially accommodate certain radar imaging technologies in the future, such as Ground Moving Target Indicator, a radar imaging technology able to detect moving vehicles and Synthetic Aperture Radar, a radar system able to paint an image or picture of the ground showing terrain, elevation and nearby structures, Santiago said.

Given that all the sensors, antennas, cameras and electronics are designed to operate within a common architecture, one possibility is to strategically disperse various sensor capabilities across a fleet of several EMARSS aircraft, thus maximizing the ability to gather and distribute relevant intelligence information, Santiago explained.

The Army Training and Doctrine Capability Manager for Intelligence Sensors (TCM Intel Sensors) is also working on the Capabilities Production Document which, according to plans, will eventually be submitted to the Joint Requirements Oversight Council before the EMARSS program can achieve a Milestone C production decision paving the way for limited rate initial production of the system in FY 13, Army acquisition officials explained.

RECENT U.S. AIR FORCE PHOTOS




FROM: U.S. AIR FORCE

Second Lt. Kendrick Passey and Staff Sgt. Craig Patterson, both assigned to the 38th Rescue Squadron, get hoisted to an HH-60 Pave Hawk helicopter during a training mission at Avon Park Air Force Range, Fla., Dec. 12, 2012. The Airmen took part in a medical evacuation where they assisted members of the 823rd Base Defense Squadron after an ambush. (U.S. Air Force photo/Staff Sgt. Jamal D. Sutter)




Airmen from the 823rd Base Defense Squadron and 38th Rescue Squadron ground themselves as an HH-60G Pave Hawk from the 41st Rescue Squadron hovers above them during a medical evacuation at Avon Park Air Force Range, Fla., Dec. 12, 2012. The evacuation was part of a three-day training exercise testing their ability to operate during hostile situations. (U.S. Air Force photo/Staff Sgt. Jamal D. Sutter)

 

Wednesday, December 26, 2012

NEWS FROM AFGHANISTAN FOR DECEMBER 26, 2012

Map:  Afgahnistan.  Credit:  CIA World Factbook.
FROM: U.S. DEPARTMENT OF DEFENSE

Combined Force Arrests Taliban Leader
Compiled from International Security Assistance Force Joint Command News Releases

WASHINGTON, Dec. 26, 2012 - An Afghan and coalition security force arrested a Taliban leader and detained one other suspected insurgent during an operation in the Now Zad district of Afghanistan's Helmand province today, military officials reported.

The arrested Taliban leader coordinated and executed direct-fire and improvised explosive device attacks against Afghan and coalition forces in the province.

In other Afghanistan operations today:

-- In the Dzadran district of Paktiya province, a combined force arrested a local Haqqani leader who was responsible for planning attacks against Afghan and coalition forces in the district. The arrested Haqqani leader commanded a number of insurgents who constructed, transported and emplaced IEDs. The security force also detained one other suspect.

In Dec. 25 operations:

-- An Afghan-led security force of more than 1,000 soldiers and police killed multiple insurgents and detained dozens of suspects at the conclusion of a five-day coalition-supported operation in the Baraki Barak district of Logar province. The operation was conducted by the Provincial Response Company Laghman, along with elements of the Afghan Local Police, the Afghan Uniformed Police, and the Afghan National Army. The security force also seized IED-making materials, suicide vests, weapons, ammunition, and some illicit drugs.

-- In the Panjwa'i district of Kandahar province, a combined force arrested a Taliban leader who coordinated the distribution of weapons, ammunition and explosives for insurgents' use in attacks against Afghan and coalition forces. The security force also detained one other suspect.

-- A combined force arrested a Taliban leader and detained one other suspect in the Nahr-e Saraj district of Helmand province. The arrested Taliban leader coordinated direct-fire and IED attacks against Afghan government officials and Afghan and coalition forces.

-- A combined force arrested a Taliban leader and a Taliban facilitator in the Rodat district of Nangarhar province. Both men were involved in planning the Dec. 2 attack on Jalalabad Airfield. They also organized and executed other attacks against Afghan and coalition forces and were involved in the acquisition of vehicle-borne IEDs. The security force also detained several other suspects and seized weapons and ammunition.

-- A combined force arrested a Haqqani leader, detained three other suspects, and seized more than 1,300 pounds of illicit drugs, weapons and ammunition in the Jaji district of Paktiya province. The Haqqani leader directed multiple attacks against Afghan and coalition forces. He also emplaced IEDs and organized the storage of insurgent weapons.

-- In the Andar district of Ghazni province, a combined force arrested a Taliban leader who commanded more than a dozen fighters in the district and planned and executed ambushes and IED attacks against Afghan and coalition forces. The security force also detained three other suspects.

In Dec. 24 operations:

-- A combined force killed the Taliban leader, Qadir, and three other insurgents in the Baghlan-e Jadid district of Baghlan province. Qadir commanded a group of insurgents who conducted IED attacks in the district. He was also responsible for the movement of weapons, ammunition and bomb-making materials for insurgents in the province.

-- A combined force detained a Taliban leader in the Khanabad district of Kunduz province. The detained Taliban leader was involved in the planning of IED attacks on Afghanistan government officials and Afghan and coalition security forces. He was also a financial facilitator who coordinated funding to support the insurgency.

-- A combined force detained a Taliban leader and two other suspects in the Nad 'Ali district of Helmand province. The detained Taliban leader commanded a direct-action cell within the Nad 'Ali district. He also directed IED and other attacks against Afghan and coalition forces.

-- A combined force arrested a Taliban leader and detained one other suspect in the Jalalabad district of Nangarhar province. The arrested Taliban leader was directly involved in planning attacks on the Afghan government.

-- A combined force detained four insurgents seized firearms during a search for a Haqqani leader in the Musa Khel district of Khost province. The sought-after Haqqani leader is responsible for distributing, planning and conducting attacks against Afghan and coalition forces within the district.

In Dec. 23 operations:

-- A combined force killed Taliban leader, Obaidullah, in the Sherzad district of Nangarhar province. Obaidullah, also known as Saifullah, directed the Oct. 12 indirect-fire attack on Forward Operating Base Fenty. He was also responsible for laundering money to fund Taliban attacks against Afghan and coalition forces and facilitated the movement of weapons, ammunition and bomb-making materials throughout Nangarhar province.

-- A combined force arrested a Taliban leader and seized weapons and ammunition in the Nad 'Ali district of Helmand province. The arrested Taliban leader was in contact with senior Taliban leaders in the province and coordinated and conducted IED and other attacks against Afghan and coalition forces.

-- In the Khanabad district of Kunduz province, a combined force arrested a Taliban leader and detained several other suspects. The arrested Taliban leader planned and executed IED attacks against Afghan and coalition forces. He also distributed IEDs to insurgents in the Khanabad and Kunduz districts.

-- In the Pul-e 'Alam district of Logar province, a combined force arrested a Haqqani leader who coordinated attacks in the district. One other suspect was also detained.

-- A combined force detained a suspected insurgent during a search for a Taliban leader in the Hisarak district of Nangarhar province. The detained suspect allegedly laundered money used to fund attacks against Afghan and coalition forces.

-- A combined force arrested a Haqqani leader and detained one other suspect in the Khost district of Khost province. The arrested Haqqani leader planned, facilitated and executed attacks against Afghan and coalition forces in the Pul-e 'Alam district of Logar province. He also emplaced IEDs and directed the movement of Haqqani fighters.

-- A combined force detained two suspects during a search for a Haqqani leader in the Sharan district of Paktika province.

In Dec. 22 operations:

-- The Kabul Crisis Response Unit discovered a weapons and explosives cache during a coalition-supported operation in the Surobi district of Kabul province. This was the first mission planned and led by the CRU. The cache included 772 pounds of homemade explosives, other weapons and ammunition.

-- A combined force arrested a Taliban facilitator and detained one other suspect in the Arghandab district of Kandahar province. The arrested Taliban facilitator procured and transported homemade explosives, IEDs and other weapons for use in attacks against Afghan and coalition forces.

-- A combined force arrested a Haqqani leader, detained three other suspects and seized weapons and some Afghan National Security Force uniforms in the Jaji district of Paktiya province. The arrested Haqqani leader directed attacks against Afghan and coalition forces in the province.

In Dec. 21 operations:

-- A Taliban leader was arrested in the Tarnek wa Jaldak district, Zabul province. The arrested Taliban leader transported and delivered weapons and ammunition to insurgents operating in the Tarnek wa Jaldak and Qalat districts.

-- A combined force detained three suspects during a search for a Taliban leader in the Tarnek wa Jaldak district of Zabul province. The sought-after Taliban leader is responsible for planning and conducting IED and other attacks against Afghan government leaders and Afghan and coalition forces.

-- In the Achin district of Nangahar province, an Afghan-led, coalition-supported force detained two suspects and discovered a drug cache containing 882 pounds of opium and drug-processing equipment. The security force destroyed the drugs and equipment.

-- In the Sabari district of Khost province, a combined force arrested a Haqqani facilitator who procured and transported weapons, homemade explosives and IEDs for insurgents. The security force also detained three other suspects and seized weapons.

CFTC COMMISSIONER CHILTON'S REMARKS ON UBS SETTLEMENT

FROM: U.S. COMMODITY FUTURES EXCHANGE COMMISSION

Statement of Commissioner Bart Chilton on UBS Settlement

"A Conscience Isn't Nonsense"
December 19, 2012

Every so often, folks wonder if some in the financial sector believe that having a business conscience is nonsense. Financial sector violations are hurtling toward us like a spaceship moving through the stars. All too often, penalties have been a simple cost of doing business. That needs to change.

The UBS settlement is serious and significant and will provide a definite deterrent.

This $700 million settlement is the granddaddy of CFTC penalties. Combined with other regulator settlements, UBS will pay $1.5 billion. Even for a mega-bank, that amount serves as a direct deterrent. It serves as a deterrent not only for UBS, but for the biggest of the big schemers in the financial world.

One of the most egregious aspects of this case was that even when the bank knew it was being investigated for these violations of the law, it continued the wrongdoing. It was a corrupt culture.

One of the crooked characters in this debacle went so far as to pay off brokers at other firms in return for falsifying rates. All told, he made at least 2,000 attempts to manipulate the benchmark in a three-year period.

Whether the manipulated rates moved higher or lower (and rates went both ways) really isn’t what matters. They were not true rates. They were fictitious and that can throw off the normal balance of the global economy. When somebody is making false profits, somebody else pays the price.

These interest rate benchmarks are extremely important affecting virtually anything consumers purchase with credit. The entire benchmark rate regime needs to be revisited. We need to ensure that the rates are based upon transparent, actual trades. The numbers should not be consolidated by a trade association and there should never be a profit motive involved in submitting rates.

Finally, I’ve asked Congress to revisit this issue of puny penalty authority for the CFTC. Our authority needs to be revised and enhanced to ensure we continually protect consumers from violations of the law.

President Obama Speaks to Servicemembers on Christmas | The White House

President Obama Speaks to Servicemembers on Christmas | The White House

OSHA CITES U.S. POSTAL SERVICE FOR WORKER'S DEATH

FROM: U.S. DEPARTMENT OF LABOR
Dec. 17, 2012

US Labor Department's OSHA cites US Postal Service
for worker's heat-related death in Independence, Mo.


INDEPENDENCE, Mo. – The U.S. Department of Labor's Occupational Safety and Health Administration has cited the U.S. Postal Service Truman Station in Independence, Mo., with a willful violation for failing to protect employees working in excessive heat. OSHA initiated an inspection in July after a mail carrier developed heat-related illness symptoms, collapsed while working his route and was taken to the hospital where he died as a result of his exposure to excessive heat.

"This tragedy underscores the need for employers to take proactive steps to keep workers safe in extreme heat," said Charles Adkins, OSHA's regional administrator in Kansas City. "If this employer had trained workers in recognizing the symptoms of heat stroke, and taken precautions to ensure workers had access to water, rest and shade, this unfortunate incident may have been avoided."

The willful violation addresses the hazard of multiple employees who were required to work during periods when excessive heat advisories and warnings were issued by the National Weather Service. The employer did not have procedures in place to address worker concerns during times of excessive heat. A willful violation is one committed with intentional, knowing or voluntary disregard for the law's requirements, or with plain indifference to worker safety and health.


Penalties of $70,000 have been proposed. The Postal Service has 15 business days from receipt of the citations and penalties to comply, request an informal conference with OSHA's area director in Kansas City, or contest the findings before the independent Occupational Safety and Health Review Commission.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA's role is to ensure these conditions for America's working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit
http://www.osha.gov.

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