Wednesday, August 7, 2013

DVIDS - Video - Navy Decides to Scrap USS Miami

DVIDS - Video - Navy Decides to Scrap USS Miami

SEC OBTAINS COURT ORDER TO HALT ALLEGED HEDGE FUND FRAUD TARGETING MILITARY PERSONNEL

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 
SEC Halts Ex-Marine’s Hedge Fund Fraud Targeting Fellow Military
 FOR IMMEDIATE RELEASE
2013-149
Washington D.C., Aug. 6, 2013 —

The Securities and Exchange Commission today obtained an emergency court order to halt a hedge fund investment scheme by a former Marine living in the Chicago area who has been masquerading as a successful trader to defraud fellow veterans, current military, and other investors.

The SEC alleges that Clayton A. Cohn and his hedge fund management firm Market Action Advisors raised nearly $1.8 million from investors through a hedge fund he managed.  Cohn lied to investors about his success as a trader, the performance of the hedge fund, his use of investor proceeds, and his personal stake in the hedge fund.  Cohn only invested less than half of the money raised from investors and instead used more than $400,000 for such personal expenses as a Hollywood mansion, luxury automobile, and extravagant tabs at high-end nightclubs.  He used his lavish lifestyle to carefully contrive the image of a successful trader and investor, when in reality he lost nearly all of the money invested through the hedge fund.  In order to cover up his fraud and continue raising money from investors, Cohn generated phony hedge fund account statements showing annual returns exceeding 200 percent.

“Cohn lured fellow military and other investors into his hedge fund by portraying himself as a successful trader who generated massive returns for his investors,” said Timothy L. Warren, Acting Director of the Chicago Regional Office.  “But Cohn’s hedge fund investors didn’t have a chance to make a profit since he never invested most of their money and promptly lost the portion he did invest.”

According to the SEC’s complaint filed in federal court in Chicago, Cohn targets mostly unsophisticated investors and has solicited friends, family members, and fellow veterans to invest in his hedge fund.  Cohn controls a so-called charity called the Veterans Financial Education Network (VFEN) that purports to teach veterans how to understand and manage their money.  Cohn has touted his Marine Corps pedigree in VFEN press releases and encourages veterans to find “a money-manager who is both trustworthy and knows what he is doing.” VFEN’s website identifies Cohn as a money manager who “manages millions of dollars.”

According to the SEC’s complaint, Cohn managed his hedge fund Market Action Capital Management through his investment advisory firm Market Action Advisors, which is registered with the state of Illinois.  Cohn solicited investments by falsely claiming that he had major success as a personal trader and invested $1.5 million of his own money in the hedge fund.  He also misrepresented that an accounting firm would audit the hedge fund’s financial statements.

The SEC alleges that Cohn had a record of trading losses, invested no more than $4,000 of his own money, and absconded with far more money for his personal expenses.  The audit firm named by Cohn never agreed to audit the fund’s financial statements.  Cohn continued to deceive investors after their initial investment by issuing account statements that showed annual returns of more than 200 percent for 2012 when the hedge fund actually lost money.

The SEC’s complaint charges Cohn and Market Action Advisors with violating the antifraud provisions of the federal securities laws.  The court granted the SEC’s request for emergency relief including a temporary restraining order and asset freeze.  The SEC further seeks permanent injunctions, disgorgement of ill-gotten gains, and financial penalties from Cohn and Market Action Advisors.

The SEC’s investigation was conducted by John J. Sikora, Jr. and Jason A. Howard, and the litigation will be led by Jonathan S. Polish.

Puesta de sol en Mordor

Puesta de sol en Mordor

U.S. EXPORT-IMPORT BANK SAYS EXPORTS REACH ALL-TIME HIGH

FROM:  EXPORT-IMPORT BANK 
U.S. Exports Reach All-Time High of $191.2 Billion in June

Exports Up 41.5 Percent Since 2009

WASHINGTON, D.C. – The United States exported a record $191.2 billion of goods and services in June 2013, according to trade data was released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.

U.S. exports in June 2013 reached an all-time high, exceeding the previous record of $188.7 billion set in December 2012. The June export level is also 2.2 percent higher than that of the previous month.

“Today’s announcement of record-level U.S. exports in June is a testament to the strength of American exports. Increased exports mean more jobs here at home – the goal of President Obama’s National Export Initiative. We at Ex-Im Bank work every day to help American exporters and their workers succeed in selling their products and services in an increasingly competitive global marketplace,” said Ex-Im Bank Chairman and President Fred P. Hochberg.

Exports of goods and services over the past twelve months totaled $2.2 trillion, which is 41.5 percent above the level of exports in 2009. Exports have been growing at an annualized rate of 10.4 percent when compared to the same period in 2009.

Over the last twelve months, among the major export markets (i.e., markets with at least $6 billion in annual imports of U.S. goods), the countries with the largest annualized increase in U.S. goods purchases, when compared to 2009, occurred in Panama (28.6 percent), United Arab Emirates (23.1 percent), Russia (22.6 percent), Peru (21.9 percent), Chile (21.4 percent), Colombia (19.5 percent), Hong Kong (19.2 percent), Argentina (18.5 percent), South Africa (18.3 percent) and Venezuela (18.1 percent).

SECRETARY OF STATE KERRY'S STATEMENT ON THE FOUNDING OF ASEAN

FROM:  U.S. STATE DEPARTMENT 
Marking the Anniversary of the Founding of ASEAN
Press Statement
John Kerry
Secretary of State
Washington, DC
August 6, 2013

On behalf of President Obama and the people of the United States, we join the 600 million people of the member states of the Association of Southeast Asian Nations (ASEAN) - Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic Republic, Malaysia, the Republic of the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand, and the Socialist Republic of Vietnam - in marking the 46th anniversary of the founding of ASEAN.

ASEAN plays a critical and growing role in Asia through promoting regional integration and maintaining regional security. As the central regional organization in Asia, ASEAN is the keystone for Asia’s multilateral architecture, including the ASEAN Regional Forum and the East Asia Summit.

The United States is deeply committed to supporting and partnering with ASEAN. The United States was the first dialogue partner nation to establish a dedicated mission to ASEAN. Our engagement with ASEAN has led to collaboration on everything from maritime security to investing in sustainable energy resources to development in the Lower Mekong sub-region.

I was privileged to participate in my first ASEAN-U.S. Ministerial meeting just last month in Brunei to advance our cooperation on this wide range of shared interests, and I look forward to deepening and broadening our cooperation in the coming years. And I know that President Obama looks forward to participating in the East Asia Summit and the ASEAN-U.S. Summit in Brunei in October.

As we celebrate the anniversary of the founding of ASEAN, know that the United States stands with you as a steadfast partner.

FTC SEEKS CONTEMPT RULING AGAINST DEFENDANTS WHO VIOLATED A PERMANENT INJUNCTION

FROM:  U.S. FEDERAL TRADE COMMISSION 

FTC Seeks Contempt Ruling Against Suntasia Telemarketing Defendants
Defendants Ordered to Pay Over $11 Million in 2008

The Federal Trade Commission is seeking a contempt order in federal court against defendants previously involved in a massive, Florida-based marketing scheme, alleging that they violated the terms of a court-ordered permanent injunction by engaging in some of the same deceptive tactics that led to the FTC’s prior charges against them.

In 2007, the FTC took action against the defendants behind Suntasia Marketing, Inc., charging them with deceptively marketing negative option programs to consumers nationwide.  According to the agency, the defendants defrauded consumers and charged their bank accounts without consent for various negative option programs, including memberships in discount buyer’s and travel clubs.  In a negative option program, a company takes consumers’ silence or failure to cancel the program as acceptance of the offer and permission to debit funds from their accounts.

The defendants agreed to the 2008 injunction in order to settle the FTC’s charges. Under the settlement, 14 defendants involved in the scheme were required to pay more than $16 million. In particular, defendants Bryon Wolf and Roy Eliasson were required to pay over $11 million, and were barred from misrepresenting material facts regarding an offer, failing to disclose material terms of what they sell, debiting consumers’ accounts without their consent, and other unlawful acts.

But according to the FTC, within months of the court’s 2008 order, defendants Bryon Wolf and Roy Eliasson, and their firm Membership Services, LLC, which Wolf and Eliasson control, devised a new plan to defraud consumers.  In this scheme, they targeted recent loan applicants with deceptive phone and Internet solicitations that misled consumers to believe the defendants would provide them with cash advances or loans, or general lines of credit.  Instead of providing these services, the defendants debited consumers’ accounts for membership in a continuity program. Very few consumers used the program and many cancelled upon discovering their account had been debited by defendants.  The continuity plans go under the names “Monster Rewards,” “Mongo,” and “Money on the Go.”

Based on this conduct, the FTC charged the defendants with violating the permanent injunction by making misrepresentations to consumers about their programs, by failing to make key disclosures, by failing to get express informed consent before debiting consumers’ accounts, and by failing to disclose clearly and promptly their programs during telemarketed solicitations.  According to the FTC, through their deceptive actions, the defendants have netted over $9 million.

The civil contempt action was filed under seal in the U.S. District Court for the Middle District of Florida, Tampa Division on May 22, 2013, and unsealed by the Court on July 31, 2013.  It names as defendants Bryon Wolf, Roy Eliasson, and Membership Services, LLC.

IMMUNITY GENES FOUND IN SEA FANS

Photo Shows Sea Fan In Back.  Credit:  U.S. NOAA
FROM:  NATIONAL SCIENCE FOUNDATION

Sick Sea Fans: Undersea "Doctors" to the Rescue

Scientists discover genes involved in immunity of sea fans to coral diseases
Like all of us, corals get sick. They respond to pathogens (disease-causing microbes) and recover or die. But unlike us, they can't call a doctor for treatment.

Instead, help has arrived in the form of scientists who study the causes of the corals' disease, and the immune factors that might be important in their response and resistance.

With support from the National Science Foundation (NSF), scientists Drew Harvell and Colleen Burge of Cornell University and their colleagues have developed a catalog of genes that, the researchers say, will allow us to better understand the immune systems of corals called sea fans.

The marine ecologists have trained their undersea eyes on a particular sea fan species, Gorgonia ventalina, or the purple sea fan, found in the western Atlantic Ocean and the Caribbean Sea.

The team has monitored sea fan health in the Florida Keys, Mexican Yucatan and Puerto Rico for the past 15 years. The most recent research, in collaboration with Ernesto Weil of the University of Puerto Rico, is underway on reefs at La Parguera, Puerto Rico.

Gorgonia ventalina is a fan-shaped coral with several main branches and a latticework of smaller branches. Its skeleton is composed of calcite and gorgonian, a collagen-like compound. Purple sea fans often have smaller, accessory fans growing sideways out of their main fans.

These large sea fans fare best near shore in shallow waters with strong waves and on deeper outer reefs with strong currents, down to a depth of about 50 feet. Small polyps on the graceful fans catch plankton drifting by on fast-flowing currents.

Turning (more) purple

Life as a purple sea fan isn't always easy. The coral may be attacked by the fungus Aspergillus sydowii, which causes the disease aspergillosis.

It results in damaged patches on the fan, extreme purpling of tissues and sometimes death. Several outbreaks of aspergillosis have occurred in the Caribbean; corals in stressful conditions such as warming waters may be especially susceptible.

"Diseases and climate change are very tightly linked," says Mike Lesser, program director in NSF's Division of Ocean Sciences, which funds the research along with the joint NSF-National Institutes of Health Evolution and Ecology of Infectious Diseases (EEID) Program.

"The role of climate change in diseases is important," Lesser says, "for understanding the spread of infectious diseases in every corner of the globe, including the oceans."

Adds Sam Scheiner, NSF EEID program director, "Human-induced climate change is having profound effects on many parts of the world. As this research shows, coral reefs are being decimated by the combination of climate change and infectious diseases."

Undersea "doctors" come to sea fans' aid

Harvell agrees.

In a paper published earlier this year in The Annual Review of Marine Science, Harvell, Burge and other scientists reviewed climate change influences on marine infectious diseases.

Now the scientists are using the purple sea fan as a model for studying ocean diseases. "We're looking at microbial infection, pathways of defense and the health of this sea fan in the face of warming waters and climate change," says Harvell.

"All animals on Earth--from humans to fish to corals--are susceptible to infection by pathogens that cause illness," she says. "What we hope to answer is: How widespread are these infections? Why do they happen? And, what can we do about them?"

Coral reefs are declining worldwide. Even very old coral colonies in remote locations are dying. "Disease-related deaths are caused in part by pathogens alone and in part by interactions between pathogens and climate change," says Burge.

Many of these pathogens are unidentified, leaving sea fans and their coral relatives at high risk.

But the mystery is slowly being solved.

The scientists have discovered two pathogens in purple sea fans. The microbes are being cultured and used to examine how sea fans' immune systems work.

Past is prologue?

A look back a decade or more may provide clues to the present--and the future--for sea fans.

From 1996 through 2004, thousands of sea fans in the Caribbean died of aspergillosis. Many survived, however, and appear resistant to further attack.

But they're far from home free.

Purple sea fans are now being infected by a new pathogen, called Aplanochytrium. Burge was the first to isolate and culture the microbe from a sick sea fan.

Aplanochytrium is a member of an order of lethal microbes known as Labyrinthulomycetes. It grows faster at warmer temperatures, leaving sea fans in "hot water."

Corals don't have "immune memory," such as the T cells and antibodies found in humans. Instead they have an ancient defense system called the innate immune system.

Studying sea fans' immunity through their genes is an important step in protecting them, says Burge.

"We used molecular biology and bioinformatics--a combination of biology, computer science and information technology--to make a set of the genes' messages, called transcripts," she says. "Then we characterized these messages, which are known collectively as a transcriptome."

The results, reported this month in a paper in the journal Frontiers in Physiology, are the first to show which genes are activated in response to pathogens in sea fans. Co-authors of the paper are Burge, Harvell and Morgan Mouchka of Cornell, and Steven Roberts of the University of Washington.

Message in a (genetic) bottle

The purple sea fan may hold messages for the oceans, and for us, but the messages come in a genetic bottle.

The scientists studied what's called messenger RNA, which transfers genetic messages, in sea fans exposed to Aplanochytrium, comparing it with that of unexposed sea fans.

They found that the sea fans' genes hold clues to questions such as how the fans recognize and kill pathogens, and how they repair injured tissues.

The scientists are increasing the sea fan genetic "catalog" by adding genes expressed, or turned on, in response to record-breaking Caribbean Sea temperatures in 2010.

The researchers, working in Puerto Rico with Weil and Laura Mydlarz of the University of Texas at Arlington, assessed the effect of the 2010 Caribbean coral bleaching event, as it's known, on sea fans' genes and immune function.

The study compared immune system genes in a heat-sensitive coral species, Orbicella annularis, the boulder star coral, with that of Gorgonia ventalina.

The purple sea fan was thought to be resilient to the stresses of warming waters. But Gorgonia ventalina, the scientists found, is also susceptible to the double whammy of disease and warming.

-- Cheryl Dybas, NSF

Tuesday, August 6, 2013

DVIDS - Video - Vet, Plane Reunited After 70 Years

DVIDS - Video - Vet, Plane Reunited After 70 Years

SECRETARY OF DEFENSE HAGEL'S MESSAGE ON CIVILIAN FURLOUGHS

FROM:  U.S. DEPARTMENT OF DEFENSE 
SECRETARY OF DEFENSE CHUCK HAGEL MESSAGE ON REDUCING CIVILIAN FURLOUGHS

           When I announced my decision on May 14 to impose furloughs of up to 11 days on civilian employees to help close the budget gap caused by sequestration, I also said we would do everything possible to find the money to reduce furlough days for our people. With the end of the fiscal year next month, managers across the DoD are making final decisions necessary to ensure we make the $37 billion spending cuts mandated by sequestration, while also doing everything possible to limit damage to military readiness and our workforce. We are joined in this regard by managers in non-defense agencies who are also working to accommodate sequestration cuts while minimizing mission damage. As part of that effort at the Department of Defense, I am announcing today that, thanks to the DoD's efforts to identify savings and help from Congress, we will reduce the total numbers of furlough days for DoD civilian employees from 11 to six.

           When sequestration took effect on March 1, DoD faced shortfalls of more than $30 billion in its budget for day-to-day operating costs because of sequestration and problems with wartime funding. At that point we faced the very real possibility of unpaid furloughs for civilian employees of up to 22 days.

           As early as January, DoD leaders began making painful and far reaching changes to close this shortfall: civilian hiring freezes, layoffs of temporary workers, significant cuts in facilities maintenance, and more. We also sharply cut training and maintenance. The Air Force stopped flying in many squadrons, the Navy kept ships in port, and the Army cancelled training events. These actions have seriously reduced military readiness.

           By early May, even after taking these steps, we still faced day-to-day budgetary shortfalls of $11 billion. At that point I decided that cutting any deeper into training and maintenance would jeopardize our core readiness mission and national security, which is why I announced furloughs of 11 days.

           Hoping to be able to reduce furloughs, we submitted a large reprogramming proposal to Congress in May, asking them to let us move funds from acquisition accounts into day-to-day operating accounts. Congress approved most of this request in late July, and we are working with them to meet remaining needs. We are also experiencing less than expected costs in some areas, such as transportation of equipment out of Afghanistan. Where necessary, we have taken aggressive action to transfer funds among services and agencies. And the furloughs have saved us money.

          As a result of these management initiatives, reduced costs, and reprogramming from Congress, we have determined that we can make some improvements in training and readiness and still meet the sequestration cuts. The Air Force has begun flying again in key squadrons, the Army has increased funding for organizational training at selected units, and the Navy has restarted some maintenance and ordered deployments that otherwise would not have happened. While we are still depending on furlough savings, we will be able to make up our budgetary shortfall in this fiscal year with fewer furlough days than initially announced.

           This has been one of the most volatile and uncertain budget cycles the Department of Defense has ever experienced. Our fiscal planning has been conducted under a cloud of uncertainty with the imposition of sequestration and changing rules as Congress made adjustments to our spending authorities.

           As we look ahead to fiscal year 2014, less than two months away, the Department of Defense still faces major fiscal challenges. If Congress does not change the Budget Control Act, DoD will be forced to cut an additional $52 billion in FY 2014, starting on October 1. This represents 40 percent more than this year's sequester-mandated cuts of $37 billion. Facing this uncertainty, I cannot be sure what will happen next year, but I want to assure our civilian employees that we will do everything possible to avoid more furloughs.

           I want to thank our civilian workers for their patience and dedication during these extraordinarily tough times, and for their continued service and devotion to our department and our country. I know how difficult this has been for all of you and your families. Your contribution to national security is invaluable, and I look forward to one day putting this difficult period behind us. Thank you and God Bless you and your families.

TWO SENTENCED FOR DUMPING TONS OF ASBESTOS IN VIOLATION OF CLEAN WATER ACT

FROM:   U.S. DEPARTMENT OF JUSTICE 
Friday, August 2, 2013
Two Sentenced in New York State for Dumping Thousands of Tons of Asbestos in Violation of the Clean Water Act

Two individuals, Donald Torriero and Julius DeSimone, were sentenced in federal court in Utica, N.Y., for illegally dumping thousands of tons of asbestos-contaminated construction debris on a 28-acre piece of property on the Mohawk River in upstate New York, the Justice Department announced.

U.S. District Judge David N. Hurd sentenced Torriero to serve 36 months in prison followed by three years of supervised release. Torriero was immediately remanded into custody of the U.S. Marshals. DeSimone was sentenced to five years’ probation, including six months of home confinement. Both were ordered to pay $492,000 in restitution for, among other things, cleanup expenses at the site.

The two pleaded guilty to conspiring to violate the Clean Water Act, the Superfund statute, wire fraud and to defrauding the United States. In addition, Torriero pleaded guilty to substantive wire fraud charges, and DeSimone was convicted of making false statements to law enforcement in connection with a fabricated "permit letter" the conspirators created and used to dump at the site.

According to the evidence, Torriero, DeSimone and others conspired to fill in the entire property over the course of five years with pulverized construction and demolition debris that was processed at New Jersey solid waste management facilities and then transported to open property in Frankfort, N.Y.  The plot was uncovered by law enforcement just months after the operation began, but not before the conspirators had already dumped at least 400 truckloads of debris at the site. Much of the material that was dumped was placed in and around waters of the United States and some of the material was found to be contaminated with asbestos. The conspirators then concealed the illegal dumping and recruited others to join in the illegal dumping by fabricating a New York State Department of Environmental Conservation (DEC) permit and forged the name of a DEC official on the fraudulent permit.

“Torriero and DeSimone endangered the health of both their fellow citizens and sensitive wetlands by violating numerous laws meant to ensure the proper disposal of toxic materials. They also committed other criminal acts in their attempts to cover up their misdeeds,” stated Acting Assistant Attorney General Robert Dreher of the Justice Department’s Environment and Natural Resources Division. “Holding these men responsible for their criminal activities will serve as notice to others involved in similar schemes that the Justice Department will not tolerate such flagrant disregard for the law and the environment.”

“Asbestos can cause cancer and other serious respiratory diseases; there is no safe level of exposure to it,” said Vernesa Jones-Allen, Acting Special Agent in Charge of EPA’s Criminal Investigation Division in New York. “The defendants in this case conspired to illegally dispose asbestos containing material. This case demonstrates that the American people will not tolerate those who make money by breaking the law and damage the environment.”

“This case demonstrates the commitment of local, state and federal law enforcement agencies to work together to protect the environment and the health of the citizens we serve,” said Richard S. Hartunian, U.S. Attorney for the Northern District of New York. “I commend all the law enforcement officers involved in this case for their hard work in bringing Torriero and DeSimone to justice.”

“The disposal of hazardous materials is closely regulated in New York State to protect public health and our environment,” said New York State Department of Environmental Conservation (DEC) Commissioner Joe Martens. “The forgery of permits by the defendants in this case was a blatant and potentially dangerous criminal act that undermined the integrity of the permit system. I applaud the collaborative work of DEC investigators and partners to halt this illegal dumping, apprehend the perpetrators, and bring them to justice.”

This case is related to the guilty pleas and sentencings associated with Eagle Recycling, Mazza & Sons Inc., Dominick Mazza, Cross Nicastro and Jon Deck. Mr. Deck is the last remaining individual awaiting sentencing.

This case was investigated by the New York State Environmental Conservation Police, Bureau of Environmental Crimes, EPA’s Criminal Investigation Division, Internal Revenue Service, New Jersey State Police Office of Business Integrity Unit, New Jersey Department of Environmental Protection, and Ohio Department of Environmental Protection. The case is being prosecuted by Assistant U.S. Attorney Craig A. Benedict of the Northern District of New York, and Trial Attorneys Todd W. Gleason and Gary Donner of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.

U.S. Department of Defense Armed with Science Update: Hurricane Hunters

U.S. Department of Defense Armed with Science Update

READOUT: SECRETARY HAGEL'S CALL WITH EGYPTIAN DEFENSE MINISTER GENERAL AL-SISI

FROM:  U.S. DEFENSE DEPARTMENT  
Readout of Secretary Hagel's Call with Egyptian Defense Minister Gen. Abdul Fatah al-Sisi

           Pentagon Press Secretary George Little issued the following readout:

           "Secretary Hagel spoke with his Egyptian counterpart, Defense Gen. Abdul Fatah Al-Sisi this afternoon via telephone.

           "Secretary Hagel and Minister Al-Sisi discussed progress in U.S. and EU mediation efforts led by Deputy Secretary of State Bill Burns and EU Special Representative Bernadino Leon.

           "Minister Al-Sisi underscored his commitment to peaceful resolution of the ongoing protests, and thanked Secretary Hagel for U.S. support.

           "Minister Al-Sisi affirmed the commitment of the interim civilian government to an inclusive political roadmap for all Egyptians."

READOUT OF SECRETARY HAGEL'S MEETING WITH AZERBAIJAN'S MINISTER OF DEFENSE

FROM:  U.S. DEFENSE DEPARTMENT 
Readout of Secretary Hagel's Meeting with Azerbaijan's Minister of Defense Safar Abiyev

           Pentagon Press Secretary George Little provided the following readout:

           "Secretary of Defense Chuck Hagel met with Azerbaijan's Minister of Defense Safar Abiyev today at the Pentagon.

           "Secretary Hagel praised Azerbaijan for its support to efforts in Afghanistan, to include their sustained deployment with the International Security Assistance Force. In addition, he thanked Minister Abiyev for the valuable role Azerbaijan plays in providing ground, air and sea transit access for logistical support to Afghanistan.

          "The two leaders agreed to continue to work together on issues to include North Atlantic Treaty Organization interoperability, counterterrorism, defense transformation and maritime security.

           "Secretary Hagel and Minister Abiyev also discussed the regional situation. Secretary Hagel raised the recent inauguration of Iranian President Hassan Rouhani and reiterated that it is imperative that Iran take quick steps to resolve the international community's deep concerns over its nuclear program.

           "Secretary Hagel recognizes Azerbaijan's role in fostering regional security and stability, and he looks forward to continuing the strategic partnership."

SEC CHARGES FORMER OFFICERS AND INVESTOR IN DEFUNCT COMPANY FOR ROLES IN PENNY STOCK SCHEME

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

SEC Charges Former Officers and Investor in Houston Company in Fraudulent Penny Stock Scheme

The Securities and Exchange Commission today charged two former officers of now-defunct PGI Energy, Inc., as well as an investor in the company, for their roles in a fraudulent penny stock scheme to issue purportedly unrestricted PGI Energy shares in the public markets.

The SEC's complaint, filed in U.S. District Court for the Southern District of Texas, alleges that starting in 2011, PGI Energy's former Chief Investment Officer Robert Gandy and former CEO and Chairman Marcellous McZeal engaged in a scheme that included creating false promissory notes, signing misleading certifications, and altering the company's balance sheet to cause its transfer agent to issue millions of PGI Energy common stock shares without restrictive legends. The SEC also charged investor Alvin Ausbon for his role in the scheme, which included signing false promissory notes and diverting proceeds from the sale of PGI Energy stock back to the company and Gandy.

Gandy is also the CEO of Houston-based Pythagoras Group, which purports to be an "investment banking firm." McZeal is an attorney licensed in Texas. The complaint alleges that Gandy and McZeal made material misstatements and provided false documents to attorneys and a transfer agent who relied on them to conclude that PGI Energy shares could be issued without restrictive legends. The SEC alleges that Gandy and McZeal backdated promissory notes that purported to memorialize debt supposedly owed by PGI Energy and a prior business venture. They also are alleged to have added false debt to PGI Energy's balance sheet, and signed bogus "gift" letters and certifications of non-shell status, all in an effort to get unrestricted, free-trading PGI Energy shares unlawfully released into the market. Ausbon is charged with furthering the scheme by signing bogus promissory notes and remitting proceeds from the sale of PGI Energy shares back to the company and Gandy.

According to the complaint, the scheme collapsed in February 2012 when the SEC ordered a temporary suspension of trading in PGI Energy's securities, due to questions regarding the accuracy and adequacy of the company's representations in press releases and other public statements.

The SEC's complaint charges all defendants with violating Sections 5 and 17(a) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder. The complaint seeks permanent injunctions, disgorgement plus prejudgment interest, a financial penalty, and penny stock bars against all three defendants and officer and director bars against Gandy and McZeal.

Without admitting or denying the allegations in the SEC's complaint, McZeal has consented to the entry of a final judgment enjoining him from future violations of Sections 5 and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. He has also agreed to pay disgorgement plus prejudgment interest thereon of $19,919.37 and a civil penalty of $70,000. In addition, McZeal has agreed to permanent officer and director and penny stock bars. This settlement is subject to court approval. Subject to final settlement of the district court proceeding, McZeal has also agreed to the institution of a settled administrative proceeding pursuant to Rule 102(e) of the SEC's Rules of Practice, pursuant to which he would be barred from appearing before the SEC as an attorney.

VAN ALLEN SPEED

FROM: LOS ALAMOS NATIONAL LABORATORY

Van Allen Probes Pinpoint Driver of Speeding Electrons


Research team solves decades-old mystery that threatens satellites


LOS ALAMOS, N.M., July 25, 2013—Researchers believe they have solved a lingering mystery about how electrons within Earth’s radiation belt can suddenly become energetic enough to kill orbiting satellites. Thanks to data gathered from an intrepid pair of NASA probes roaming the harsh space environment within the Van Allen radiation belts, scientists have identified an internal electron accelerator operating within the belts.

"For years we thought the Van Allen belts were pretty well behaved and changed slowly," said Geoffrey Reeves of Los Alamos National Laboratory’s Intelligence and Space Research Division. "With more measurements, however, we realized how quickly and unpredictably the radiation belts change, and now we have real evidence that the changes originate from within the belts themselves."

In a paper released today in Science Express, Reeves and colleagues from the University of New Hampshire, University of Colorado at Boulder, NASA Goddard Flight Center, Aerospace Corporation, University of California-Los Angeles, and University of Iowa, describe a mechanism by which electrons suddenly accelerate to fantastic speeds within the Van Allen belts— a pair of donut shaped zones of charged particles that surround Earth and occupy the inner region of our planet’s Magnetosphere.

Traveling at 99 percent the speed of light, the super-fast electrons are among the speediest particles naturally produced by Earth, and have energies so high that they can penetrate and destroy satellite components. The research paves the way for scientists to possibly predict hazardous space weather and allow satellite operators to potentially prepare for the ravages of sudden space storms.

The radiation belts, named after their discoverer, James Van Allen, are comprised of an outer region of extremely high-energy electrons, with an inner region of energetic protons and electrons. The belts have been studied extensively since the dawn of the Space Age, because the high-energy particles in the outer ring can cripple or disrupt spacecraft. Long-term observation of the belts have hinted that the belts can act as efficient and powerful particle accelerators; recent observations by the Van Allen Probes (formerly known as the Radiation Belt Storm Probes)—a pair of spacecraft launched in August 2012—now seem to confirm this.

On October 9, 2012, while flying through the radiation belts, the Van Allen Probes measured a sudden, nearly thousand-fold increase in the energy of electrons within the outer belt. The rapid increase came on the heels of a period of waning energies the week before. The October 9 event mimicked an observed, but poorly understood event measured in 1997 by another spacecraft. Ever since the 1997 event, scientists have pondered whether the increase in electron energy was the result of forces outside of the belts, a mechanism known as "radial acceleration," or from forces within the belts, known as "local acceleration." Data from the Van Allen Probes seems to put this question to rest.

Because the twin Van Allen Probes follow each other and cut through the belts at different times, researchers were able to see that the October 9 increase originated from within the heart of the belts, indicative of local acceleration. The data also showed that higher electron fluxes did not move from a region outside of the belts slowly toward our planet, a detail corroborated by other geosynchronous satellites located outside of the belts.

"In the October 9, 2012, event, all of the acceleration took place in about 12 hours," said Reeves, a space physicist and principal author of the Science paper. "With previous measurement, a satellite might have only been able to fly through such an event once and not get a chance to witness the changes actually happening."

The researchers are now trying to understand exactly how the acceleration took place. Right now, the team believes that electromagnetic radio waves somehow excite the electrons into a higher-energy state, much like a microwave oven excites and heats water molecules. Members of the team are looking hard at waves known as "Chorus Waves" that are often observed in the region of the belts where the local acceleration was strongest. Chorus Waves are a type of electromagnetic radio wave with frequencies within the range of human hearing. Chorus Waves provide a haunting cacophony like a flock of extraterrestrial birds.

"We don’t know whether it is Chorus Waves or some other type of electromagnetic wave that’s behind the electron acceleration we are seeing," said Reeves, "but the Van Allen Probes are also equipped with instruments that should help us figure that out as well. Each of these discoveries take us a step closer to the goal of forecasting these extreme space weather events and making space safer for satellites."



 
 


Monday, August 5, 2013

USDA'S ONGOING EFFORTS TO ASSIST DROUGHT IMPACTED RANCHERS

FROM:  U.S. DEPARTMENT OF AGRICULTURE 
USDA Announces Ongoing Efforts to Assist Ranchers Impacted by Drought

WASHINGTON, Aug. 5, 2013 - As severe drought conditions persist in certain regions throughout the country, the U.S. Department of Agriculture's (USDA) Farm Service Agency (FSA) Administrator Juan M. Garcia today announced temporary assistance to livestock producers through FSA's Conservation Reserve Program (CRP). Under limited conditions, farmers and ranchers affected by drought will be allowed to use certain additional CRP acres for haying or grazing under emergency conditions while maintaining safeguards to the conservation and wildlife benefits provided by CRP. In addition, USDA announced that the reduction to CRP annual rental payments related to emergency haying or grazing will be reduced from 25 percent to 10 percent. Further, the sale of hay will be allowed under certain conditions. These measures take into consideration the quality losses of the hay and will provide needed assistance to livestock producers.

"Beginning today, state FSA offices are authorized, under limited conditions, to expand opportunities for haying and grazing on certain additional lands enrolled in CRP," said Garcia. "This local approach provides both the appropriate flexibility and ability to tailor safeguards specific to regional conditions. States must adhere to specific guidelines to ensure that additional haying and grazing still maintains the important environmental and wildlife benefits of CRP. These safeguards will be determined through consultation with the state conservationist, state fish and wildlife agency and stakeholders that comprise the state technical committee."


CRP is a voluntary program that provides producers annual rental payments on their land in exchange for planting resource-conserving vegetation on cropland to help prevent erosion, provide wildlife habitat and improve the environment. CRP acres enrolled under certain practices can already be used for emergency haying and grazing during natural disasters to provide much-needed feed to livestock. FSA state offices have already opened haying, grazing or both in 432 counties in response to natural disaster this year.

Given the continued multi-year drought in some regions, forage for livestock is already substantially reduced. The action today will allow lands that are not typically eligible for emergency haying and grazing to be used with appropriate protections to maintain the CRP environmental and wildlife benefits. The expanded haying and grazing will only be allowed following the local primary nesting season, which already has passed in many areas. Especially sensitive lands such as stream buffers are generally not eligible.

FSA also has taken action under the Emergency Conservation Program to authorize additional expenditures related to drought response to be eligible for cost share, including connection to rural water systems and installation of permanent pipelines. In addition, given the limited budgetary resources and better long term benefits, FSA has increased the maximum cost share rates for permanent practices relative to temporary measures.

FSA encourages all farmers and ranchers to contact their local USDA Farm Service Agency Service Center to report damage to crops or livestock loss. In addition, USDA reminds livestock producers to keep thorough records of losses, including additional expenses for such things as feed purchased due to lost supplies.

U.S. Department of Defense Armed with Science Update

U.S. Department of Defense Armed with Science Update

Watch Live: A Better Foundation for Middle Class Homeownership; Tuesday, August 6, 2013 at 3:05PM ET | The White House

Watch Live: A Better Foundation for Middle Class Homeownership; Tuesday, August 6, 2013 at 3:05PM ET | The White House

Helicopter Crashes on Okinawa

Helicopter Crashes on Okinawa

JUSTICE DEPARTMENT SUBMITTED REMEDY TO SETTLE E-BOOK PRICE-FIXING CASE

FROM:  U.S. DEPARTMENT OF JUSTICE 

Remedy Would Require Apple to Terminate Agreements with Five Publishers; Provide for a Court-Appointed External Monitor; Allow Competitors to Provide Links from Their E-Book Apps to Their E-Bookstores

WASHINGTON — The Department of Justice and 33 State Attorneys General today submitted to the court a proposed remedy to address Apple Inc.’s illegal conduct, following the July 10, 2013, U.S. District Court for the Southern District of New York decision finding that Apple conspired to fix the prices of e-books in the United States. The proposed relief is intended to halt Apple’s anticompetitive conduct, restore lost competition and prevent a recurrence of the illegal activities.

“The court found that Apple’s illegal conduct deprived consumers of the benefits of e-book price competition and forced them to pay substantially higher prices,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Under the department’s proposed order, Apple’s illegal conduct will cease and Apple and its senior executives will be prevented from conspiring to thwart competition in the future.”

The department's proposal, if approved by the court, will require Apple to terminate its existing agreements with the five major publishers with which it conspired – Hachette Book Group (USA), HarperCollins Publishers L.L.C., Holtzbrinck Publishers LLC, which does business as Macmillan, Penguin Group (USA) Inc. and Simon & Schuster Inc. – and to refrain for five years from entering new e-book distribution contracts which would restrain Apple from competing on price. Under the department’s proposed remedy, Apple will be prohibited from again serving as a conduit of information among the conspiring publishers or from retaliating against publishers for refusing to sell e-books on agency terms. Apple will also be prohibited from entering into agreements with suppliers of e-books, music, movies, television shows or other content that are likely to increase the prices at which Apple’s competitor retailers may sell that content. To reset competition to the conditions that existed before the conspiracy, Apple must also for two years allow other e-book retailers like Amazon and Barnes & Noble to provide links from their e-book apps to their e-bookstores, allowing consumers who purchase and read e-books on their iPads and iPhones easily to compare Apple’s prices with those of its competitors.

Additionally, the Department of Justice is asking the court to appoint an external monitor to ensure that Apple's internal antitrust compliance policies are sufficient to catch anticompetitive activities before they result in harm to consumers. The monitor, whose salary and expenses will be paid by Apple, will work with an internal antitrust compliance officer who will be hired by and report exclusively to the outside directors comprising Apple’s audit committee. The antitrust compliance officer will be responsible for training Apple’s senior executives and other employees about the antitrust laws and ensuring that Apple abides by the relief ordered by the court.

On April 11, 2012, the department filed a civil antitrust lawsuit in the U.S. District Court for the Southern District of New York against Apple, Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster, for conspiring to end e-book retailers' freedom to compete on price by taking control of pricing from e-book retailers and substantially increasing the prices that consumers paid for e-books.

At the same time that it filed the lawsuit, the department reached settlements with three of the publishers – Hachette, HarperCollins and Simon & Schuster. Those settlements were approved by the court in September 2012. The department settled with Penguin on Dec. 18, 2012, and with Macmillan on Feb. 8, 2013. The Penguin settlement was approved by the court in May 2013. Final approval of the Macmillan settlement is pending before the court. Under the settlements, each publisher was required to terminate agreements that prevented e-book retailers from lowering the prices at which they sell e-books to consumers and to allow for retail price competition in renegotiated e-book distribution agreements.

The department's trial against Apple, which was overseen by Judge Denise Cote, began on June 3, 2013. The trial lasted for three weeks, with closing arguments taking place on June 20, 2013. The court issued its opinion that Apple Inc. violated Section 1 of the Sherman Act on July 10, 2013. The court will hold a hearing on remedies on Aug. 9, 2013.

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