Friday, January 10, 2014

FDA APPROVES FARXIGA TABLETS FOR TREATMENT OF TYPE 2 DIABETES

FROM:  FOOD AND DRUG ADMINISTRATION
FDA NEWS RELEASE
For Immediate Release: Jan. 8, 2014
FDA approves Farxiga to treat type 2 diabetes

The U.S. Food and Drug Administration today approved Farxiga (dapaglifozin) tablets to improve glycemic control, along with diet and exercise, in adults with type 2 diabetes.

Type 2 diabetes affects about 24 million people and accounts for more than 90 percent of diabetes cases diagnosed in the United States. Over time, high blood sugar levels can increase the risk for serious complications, including heart disease, blindness, and nerve and kidney damage.

“Controlling blood sugar levels is very important in the overall treatment and care of diabetes, and Farxiga provides an additional treatment option for millions of Americans with type 2 diabetes,” said Curtis Rosebraugh, M.D., M.P.H., director of the Office of Drug Evaluation II in the FDA’s Center for Drug Evaluation and Research.

Farxiga is a sodium-glucose co-transporter 2 (SGLT2) inhibitor that blocks the reabsorption of glucose by the kidney, increases glucose excretion, and lowers blood glucose levels. The drug’s safety and effectiveness were evaluated in 16 clinical trials involving more than 9,400 patients with type 2 diabetes. The trials showed improvement in HbA1c (hemoglogin A1c or glycosylated hemoglobin, a measure of blood sugar control).

Farxiga has been studied as a stand-alone therapy and in combination with other type 2 diabetes therapies including metformin, pioglitazone, glimepiride, sitagliptin, and insulin. Farxiga should not be used to treat people with type 1 diabetes; those who have increased ketones in their blood or urine (diabetic ketoacidosis); or those with moderate or severe renal impairment, end stage renal disease, or patients on dialysis.

An increased number of bladder cancers were diagnosed among Farxiga users in clinical trials so Farxiga is not recommended for patients with active bladder cancer. Patients with a history of bladder cancer should talk to their physician before using Farxiga. Farxiga can cause dehydration, leading to a drop in blood pressure (hypotension) that can result in dizziness and/or fainting and a decline in renal function. The elderly, patients with impaired renal function, and patients on diuretics to treat other conditions appeared to be more susceptible to this risk.

The FDA is requiring six post-marketing studies for Farxiga:

a  cardiovascular outcomes trial (CVOT) to evaluate the cardiovascular risk of Farxiga in patients with high baseline risk of cardiovascular disease;
a double-blind, randomized, controlled assessment of bladder cancer risk in patients enrolled in the CVOT;
an animal study evaluating the role of Farxiga-induced urinary flow/rate and composition changes on bladder tumor promotion in rodents;
two clinical trials to assess the pharmacokinetics, efficacy, and safety in pediatric patients; and
an enhanced pharmacovigilance program to monitor reports of  liver abnormalities and pregnancy outcomes.
In clinical trials the most common side effects observed in patients treated with Farxiga were genital mycotic (fungal) infections and urinary tract infections.

Farxiga is marketed by Bristol-Meyers Squibb Company, Princeton, N.J. and AstraZeneca Pharmaceuticals L.P., Wilmington, Del.
For more information:

FDA Approved Drugs
FDA: Drug Innovation
FDA: Diabetes Information
The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, products that give off electronic radiation, and for regulating tobacco products.

CDC SAYS LUNG CANCER NEW CASES DECREASED FROM 2005-2009

FROM:  CENTERS FOR DISEASE CONTROL AND PREVENTION 
Rates of new lung cancer cases drop in U.S. men and women
CDC report finds fastest drop in adults aged 35-44 years

Tobacco control efforts are having a major impact on Americans’ health, a new analysis of lung-cancer data suggests. The rate of new lung cancer cases decreased among men and women in the United States from 2005 to 2009, according to a report in this week’s Morbidity and Mortality Weekly Report.

The study also found that lung cancer incidence rates went down 2.6 percent per year among men, from 87 to 78 cases per 100,000 men and 1.1 percent per year among women, from 57 to 54 cases per 100,000 women.

The fastest drop was among adults aged 35-44 years, decreasing 6.5 percent per year among men and 5.8 percent per year among women. Lung cancer incidence rates decreased more rapidly among men than among women in all age groups. Among adults aged 35-44 years, men had slightly lower rates of lung cancer incidence than women.

“These dramatic declines in the number of young adults with lung cancer show that tobacco prevention and control programs work – when they are applied,” said CDC Director Tom Frieden, M.D., M.P.H.

Lung cancer is the leading cause of cancer death and the second most commonly diagnosed cancer among both men and women in the United States. Most lung cancers are attributable to cigarette smoking and secondhand smoke. Because smoking behaviors among women are now similar to those among men, women are now experiencing the same risk of lung cancer as men.

“While it is encouraging that lung cancer incidence rates are dropping in the United States, one preventable cancer is one too many,” Dr. Frieden said. “Implementation of tobacco control strategies is needed to reduce smoking prevalence and the lung cancer it causes among men and women.”

In 2010, states appropriated only 2.4 percent of their tobacco revenues for tobacco control. An earlier CDC study showed that states vary widely in their success at reducing smoking – and in reducing new lung cancers.

In the new report, CDC used data from the National Program of Cancer Registries and the National Cancer Institute’s Surveillance, Epidemiology, and End ResultsExternal Web Site Icon program for the period 2005–2009 to assess lung cancer incidence rates and trends among men and women by age group.
Lung cancer incidence decreased among men in all U.S. Census regions and 23 states, and decreased among women in the South and West and seven states. Rates were stable in all other states. These declines reflect the successes of past tobacco prevention and control efforts.

The study indicates that continued attention to local, state, and national population-based tobacco prevention and control strategies are needed to achieve further reductions in smoking prevalence among both men and women of all ages to reduce subsequent lung cancer in the United States. Strategies proven to reduce tobacco use among youth and adults include increased tobacco prices, comprehensive smoke-free laws, restriction of tobacco advertising and promotion, and hard-hitting mass media and community engagement campaigns.

This month marks the 50th anniversary of the first Surgeon General's Report linking cigarette smoking to lung cancer. Smoking remains the leading cause of preventable death and disease in the United States. Millions of Americans are living with a smoking-related disease, and each day more than 2,100 youth and young adults become daily smokers.

Through the Affordable Care Act, more Americans will qualify to get health care coverage that fits their needs and budget, including important preventive services such as tobacco use screenings and tobacco cessation services that may be covered with no additional costs.

Thursday, January 9, 2014

1/9/13: White House Press Briefing

WHITE HOUSE STATEMENT REGARDING BIPARTISAN CONGRESSIONAL TRADE PRIORITIES ACT OF 2014

FROM:  THE WHITE HOUSE 
Statement by the Press Secretary on the Bipartisan Congressional Trade Priorities Act of 2014

Trade Promotion Authority is a key part of a comprehensive strategy to increase exports and support more American jobs at higher wages, including in a stronger manufacturing sector.  We welcome the introduction of the Bipartisan Congressional Trade Priorities Act of 2014 as an important step towards Congress updating its important role in trade negotiations.  We look forward to working with Democrats and Republicans in Congress throughout the legislative process to pass Trade Promotion Authority legislation with as broad bipartisan support as possible.

The United States has the most open markets in the world, but our products and services still face barriers abroad.  That’s why we need to use every tool we have to knock down trade barriers that prevent American goods and services from being exported.  If we don’t seize these opportunities, our competitors surely will.  And if we don’t take the leadership to set high standards around the world, we will face a race to the bottom which is not in the interest of our workers and firms.

As this process moves ahead, we stand ready to work with Congress to renew the Generalized System of Preferences Program and protect and strengthen Trade Adjustment Assistance for America’s workers.

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEKENDING JANUARY 4, 2014

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT 

          SEASONALLY ADJUSTED DATA

In the week ending January 4, the advance figure for seasonally adjusted initial claims was 330,000, a decrease of 15,000 from the previous week's revised figure of 345,000. The 4-week moving average was 349,000, a decrease of 9,750 from the previous week's revised average of 358,750.

The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending December 28, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending December 28 was 2,865,000, an increase of 50,000 from the preceding week's revised level of 2,815,000. The 4-week moving average was 2,872,250, an increase of 18,750 from the preceding week's revised average of 2,853,500.

UNADJUSTED DATA

The advance number of actual initial claims under state programs, unadjusted, totaled 486,033 in the week ending January 4, an increase of 34,384 from the previous week. There were 557,724 initial claims in the comparable week in 2013.

The advance unadjusted insured unemployment rate was 2.5 percent during the week ending December 28, an increase of 0.3 percentage point from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,295,112, an increase of 451,828 from the preceding week. A year earlier, the rate was 2.9 percent and the volume was 3,730,220.
The total number of people claiming benefits in all programs for the week ending December 21 was 4,193,749, a decrease of 265,067 from the previous week. There were 5,356,419 persons claiming benefits in all programs in the comparable week in 2012.

No state was triggered "on" the Extended Benefits program during the week ending December 21.

Initial claims for UI benefits filed by former Federal civilian employees totaled 1,199 in the week ending December 28, a decrease of 669 from the prior week. There were 1,208 initial claims filed by newly discharged veterans, a decrease of 789 from the preceding week.

There were 20,705 former Federal civilian employees claiming UI benefits for the week ending December 21, a decrease of 2,003 from the previous week. Newly discharged veterans claiming benefits totaled 28,567, a decrease of 3,430 from the prior week.

States reported 1,287,037 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending December 21, a decrease of 104,260 from the prior week. There were 1,991,454 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.

The highest insured unemployment rates in the week ending December 21 were in Alaska (5.3), Pennsylvania (3.4), New Jersey (3.3), Connecticut (3.2), Illinois (3.1), Montana (3.0), Puerto Rico (2.9), Wisconsin (2.9), California (2.8), Nevada (2.8), Oregon (2.8), and Rhode Island (2.8).

The largest increases in initial claims for the week ending December 28 were in Michigan (+16,056), Pennsylvania (+10,601), New Jersey (+7,345), Ohio (+7,036), and Iowa (+5,369), while the largest decreases were in California (-14,635), Texas (-6,723), Florida (-3,738), North Carolina (-2,694), and South Carolina (-2,184).

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JANUARY 9, 2014

FROM:  DEFENSE DEPARTMENT 
CONTRACTS

ARMY

Sikorsky Aircraft Corp., Stratford, Conn., was awarded a $549,905,199 modification (P00126) to contract W58RGZ-12-C-0008 to fund Navy’s eighteen MH-60S helicopters and nineteen MH-60R helicopters and associated sustaining engineering, program management, systems engineering, provisioning, technical publications, other integrated logistics support and advanced procurement funding for program years four and five.  Fiscal 2014 other program funds in the amount of $230,186,863 were obligated at the time of the award.  Estimated completion date is Dec. 31, 2015.  Work will be performed in Stratford, Conn.  Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity


DEFENSE LOGISTICS AGENCY

American Water Operations & Maintenance Inc., Voorhees, N.J., has been awarded a maximum $288,021,970 fixed-price with economic-price-adjustment contract for assumption of ownership, operation, and maintenance of the water distribution system and wastewater collection system at Hill Air Force Base.  This contract is a competitive acquisition and one offer was received.  Location of performance is New Jersey and Utah with a January 2064 performance completion date.  Using military service is Air Force.  Type of appropriation is fiscal 2014 Air Force operations and maintenance funds.  The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va., (SP0600-14-C-8290).

US Foods International Inc.*, Gardena, Calif., has been awarded a maximum $42,226,006 modification (P00202) exercising the fourth option year on a one-year base contract (SPM300-08-D-3310) with four one-year option periods for prime vendor full line food distribution.  This is a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract.  Locations of performance are California and South Korea with a Jan. 31, 2015 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, federal civilian agencies, and other authorized Department of Defense customers.  Type of appropriation is fiscal 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

The Merchants Co., Hattiesburg, Miss., has been awarded a maximum $12,316,254 fixed-price with economic-price-adjustment, indefinite-quantity, bridge contract for prime vendor food and beverage support.  This contract is a sole-source acquisition.  Location of performance is Mississippi with a July 12, 2014 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, Coast Guard, and Air National Guard.  Type of appropriation is fiscal 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM300-14-D-3732).

US Foods Inc., Livermore, Calif., has been awarded a maximum $7,232,994 firm-fixed-price, indefinite-quantity contract for prime vendor full-line food distribution.  This contract is a sole-source acquisition.  Location of performance is California with a July 12, 2014 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps and Coast Guard.  Type of appropriation is fiscal 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM300-14-D-3734).

MISSILE DEFENSE AGENCY

Raytheon Missile Systems Co., Tucson, Ariz., is being awarded a not-to-exceed $156,000,000 sole-source, undefinitized contract action, with a hybrid contract structure with firm-fixed-price and cost reimbursable contract line item numbers.  Under this contract modification, the contractor will procure 8 Standard Missile-3 Block IB missile material and all up round build up.  The work will be performed in Tucson, Ariz.  The performance period is from date of award through September 2016.  Fiscal 2014 Defense wide procurement funds will be used to fund this effort.  The Missile Defense Agency, Dahlgren, Va., is the contracting activity (HQ0276-13-C-0001).

NAVY

Electric Boat Corp., Groton, Conn., is being awarded a $15,035,596 cost-plus-fixed-fee modification to previously awarded contract (N00024-13-C-2128) for procurement of integrated tube and hull long-lead-time material in support of the Ohio Class Replacement Program.  This contract combines purchases for the U.S. Navy (50 percent) and the government of the United Kingdom (50 percent) under the Foreign Military Sales program.  Work will be performed in Groton, Conn., and is scheduled to be completed by November 2016.  Fiscal 2014 research, development, test and evaluation and FMS funding in the amount of $15,035,596 will be obligated at time of award and will not expire at the end of the current fiscal year.  Supervisor of Shipbuilding Conversion and Repair, Groton, Conn., is the contracting activity.

Huntington Ingalls Inc., Newport News Shipbuilding, Newport News, Va., is being awarded an unpriced contract action not to exceed an estimated value of $8,163,923 to previously awarded contract (N00024-08-C-2110) to perform all efforts necessary to procure, manage and deliver onboard repair parts in support of the USS Gerald R. Ford (CVN 78) construction.  Work will be performed in Newport News, Va., and is expected to complete in September 2015.  Fiscal 2014 shipbuilding and conversion, Navy funding in the amount of $500,000 will be obligated at time of award and will not expire at the end of the current fiscal year.  Supervisor of Shipbuilding Conversion and Repair, Newport News, Va., is the contracting activity.

BriarTek Inc., Alexandria, Va., is being awarded an $8,070,975 indefinite-delivery/indefinite-quantity contract for supplies and services for the procurement of the Man Overboard Indicator (MOBI) Ship Installation Support System, logistics and training services.  The overall objective of the MOBI program is to outfit each ship with a system capable of alerting the crew to a man overboard event, so that a lifesaving rescue can be affected.  Work will be conducted at various ship homeports within and outside the continental United States as required and is expected to be completed by January 2019.  Fiscal 2014 other procurement, Navy, fiscal 2014 operations and maintenance, Navy, and fiscal 2014 shipbuilding and conversion, Navy funding in the amount of $18,000 will be obligated at time of award and will not expire at the end of the current fiscal year.  This contract was not competitively procured.  The contract was awarded on a sole-source basis in accordance with the statutory authority of 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1 - only one responsible source and no other supplies or services will satisfy agency requirements.  The Naval Surface Warfare Center, Carderock Division, Ship System Engineering Station, Philadelphia, Pa., is the contracting activity (N65540-14-D-0001).

AIR FORCE

The Boeing Co., Huntington Beach, Calif., has been awarded a $7,131,719 firm-fixed-price contract for Combat Survivor Evader Locator (CSEL) contractor logistics support 2014-2017.  The contractor will provide maintenance, sustaining engineering, new equipment training for users/operators; engineering support for the entire CSEL system on a continuous, around-the-clock basis; and analysis, tools, countermeasures, and software development and integration solutions for all Department of Defense cyber security and information assurance directives, instructions, procedures, threats and policies.  Work will be performed at Huntington Beach, Calif., and is expected to be completed on Dec. 31, 2014.  Fiscal 2014 operations and maintenance funds in the amount of $282,704 are being obligated at time of award.  Battle Management Directorate, Hanscom Air Force Base, Mass., is the contracting activity (FA8730-14-C-0013).

*Small Business

SEC CHARGES ALCOA INC., WITH VIOLATING FOREIGN CORRUPT PRACTICES ACT

FROM:  SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission today charged global aluminum producer Alcoa Inc. with violating the Foreign Corrupt Practices Act (FCPA) when its subsidiaries repeatedly paid bribes to government officials in Bahrain to maintain a key source of business.

An SEC investigation found that more than $110 million in corrupt payments were made to Bahraini officials with influence over contract negotiations between Alcoa and a major government-operated aluminum plant.  Alcoa’s subsidiaries used a London-based consultant with connections to Bahrain’s royal family as an intermediary to negotiate with government officials and funnel the illicit payments to retain Alcoa’s business as a supplier to the plant.  Alcoa lacked sufficient internal controls to prevent and detect the bribes, which were improperly recorded in Alcoa’s books and records as legitimate commissions or sales to a distributor.

Alcoa agreed to settle the SEC’s charges and a parallel criminal case announced today by the U.S. Department of Justice by paying a total of $384 million.

“As the beneficiary of a long-running bribery scheme perpetrated by a closely controlled subsidiary, Alcoa is liable and must be held responsible,” said George Canellos, co-director of the SEC Enforcement Division.  “It is critical that companies assess their supply chains and determine that their business relationships have legitimate purposes.”

Kara N. Brockmeyer, chief of the SEC Enforcement Division’s FCPA Unit added, “The extractive industries have historically been exposed to a high risk of corruption, and those risks are as real today as when the FCPA was first enacted.”

According to the SEC’s order instituting settled administrative proceedings, Alcoa is a global provider of not only primary or fabricated aluminum, but also smelter grade alumina – the raw material that is supplied to plants called smelters that produce aluminum.  Alcoa refines alumina from bauxite that it extracts in its global mining operations.  From 1989 to 2009, one of the largest customers of Alcoa’s global bauxite and alumina refining business was Aluminium Bahrain B.S.C. (Alba), which is considered one of the largest aluminum smelters in the world.  Alba is controlled by Bahrain’s government, and Alcoa’s mining operations in Australia were the source of the alumina that Alcoa supplied to Alba.

According to the SEC’s order, Alcoa’s Australian subsidiary retained a consultant to assist in negotiations for long-term alumina supply agreements with Alba and Bahraini government officials.  A manager at the subsidiary described the consultant as “well versed in the normal ways of Middle East business” and one who “will keep the various stakeholders in the Alba smelter happy…”  Despite the red flags inherent in this arrangement, Alcoa’s subsidiary inserted the intermediary into the Alba sales supply chain, and the consultant generated the funds needed to pay bribes to Bahraini officials.  Money used for the bribes came from the commissions that Alcoa’s subsidiary paid to the consultant as well as price markups the consultant made between the purchase price of the product from Alcoa and the sale price to Alba.

The SEC’s order finds that Alcoa did not conduct due diligence or otherwise seek to determine whether there was a legitimate business purpose for the use of a middleman.  Recipients of the corrupt payments included senior Bahraini government officials, members of Alba’s board of directors, and Alba senior management.  For example, after Alcoa’s subsidiary retained the consultant to lobby a Bahraini government official, the consultant’s shell companies made two payments totaling $7 million in August 2003 for the benefit of the official.  Two weeks later, Alcoa and Alba signed an agreement in principle to have Alcoa participate in Alba’s plant expansion.  In October 2004, the consultant’s shell company paid $1 million to an account for the benefit of that same government official, and Alba went on to reach another supply agreement in principle with Alcoa.  Around the time that agreement was executed, the consultant’s companies made three payments totaling $41 million to benefit another Bahraini government official as well.

The SEC’s cease-and-desist order finds that Alcoa violated Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934.  Alcoa will pay $175 million in disgorgement of ill-gotten gains, of which $14 million will be satisfied by the company’s payment of forfeiture in the parallel criminal matter.  Alcoa also will pay a criminal fine of $209 million.

The SEC appreciates the assistance of the Fraud Section of the Criminal Division at the Department of Justice as well as the Federal Bureau of Investigation, Internal Revenue Service, Australian Federal Police, Ontario Securities Commission, Guernsey Financial Services Commission, Liechtenstein Financial Market Authority, Norwegian ØKOKRIM, United Kingdom Financial Control Authority, and Office of the Attorney General of Switzerland.

FLORIDA COUPLE SENTENCED TO PRISON FOR ROLES IN PROCUREMENT CONTRACT BRIBERY CASE

FROM:  JUSTICE DEPARTMENT 
Wednesday, January 8, 2014
Florida Couple Sentenced for Roles in Procurement Contract Bribery Scheme

A Florida man was sentenced to serve 15 months in prison, and his wife was sentenced to 24 months of probation, for their roles in a bribery and fraud scheme involving federal procurement contracts, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow of the District of Utah.

On Feb. 26, 2013, Sylvester Zugrav, 70, of Sarasota, Fla., pleaded guilty to conspiracy to commit bribery and procurement fraud, and his wife, Maria Zugrav, 67, also of Sarasota, pleaded guilty to misprision of a felony related to her efforts to conceal the conspiracy.

The Zugravs were charged in an October 2011 indictment along with Jose Mendez, 51, of Farr West, Utah.   Mendez, a procurement program manager for the U.S. Air Force Foreign Materials Acquisition Support Office (FMASO) at Hill Air Force Base, in Ogden, Utah, was charged in the indictment with conspiracy, bribery and procurement fraud, and has since pleaded guilty to all charges and agreed to forfeit more than $180,000 he received as part of the bribery scheme.   Sentencing for Mendez is scheduled for Jan. 29, 2014.

According to court documents, the Zugravs owned Atlas International Trading Company, a business that contracted to provide foreign military materials to the U.S. government through FMASO.

In his plea agreement, Sylvester Zugrav admitted that, from 2008 through August 2011, he gave Mendez more than $180,000 in bribe payments and offered Mendez more than $1 million in additional bribe payments contingent upon Atlas’s receipt of future contracts with FMASO.   In exchange for Sylvester Zugrav’s bribe payments and offers, Mendez ensured that Atlas and Sylvester Zugrav received favorable treatment in connection with procurement contracts by, among other things, assisting Atlas in obtaining and maintaining procurement contracts; assisting Atlas in receiving payments on such contracts; and providing Atlas with contract bid or proposal information or source selection information before the award of procurement contracts.  In her plea agreement, Maria Zugrav admitted that she was aware of Sylvester Zugrav’s bribe payments to Mendez and assisted with concealing the crime.

According to court records, Sylvester Zugrav provided bribe payments to Mendez in three ways: cash payments via Federal Express to Mendez’s residential address; in-person payments of cash and other things of value; and electronic wire transfers to a bank account in Mexico opened by and in the name of Mendez’s cousin.   Between November 2009 and August 2011, Sylvester Zugrav sent nine FedEx packages to Mendez’s home address.   Each package contained $5,000 in cash, except the last package, which contained $3,000 and was seized by law enforcement.   Maria Zugrav assisted her husband and Mendez’s bribe scheme by limiting cash withdrawals from Atlas’s bank account to not more than $5,000 to avoid scrutiny by banking officials and law enforcement.

According to the plea documents, on multiple occasions when Sylvester Zugrav and Mendez traveled to the same location, Sylvester Zugrav would give Mendez cash payments and other things of value.   From 2008 through August 2011, Sylvester Zugrav gave Mendez seven in-person cash payments ranging from $500 to $10,000 and purchased for him[?] a laptop computer and software package worth over $2,900.

During the course of the corrupt scheme, Mendez opened a foreign bank account so that Sylvester Zugrav could pay Mendez larger bribe payments.   Mendez asked his cousin in Mexico to open an account there.   After the account was opened by Mendez’s cousin, Maria Zugrav made wire transfers to the bank account located in the name of Mendez’s cousin to avoid detection of the larger bribe payments by law enforcement.   From 2008 through August 2011, Maria Zugrav sent to the Mexico account 10 wire transfers ranging from $350 to $26,700.

Court records also describe additional steps taken to conceal the bribery scheme, including creating and using covert e-mail accounts, using encrypted documents, adopting false names and using code words.   For instance, to avoid detection of their e-mail communications, Sylvester Zugrav and Mendez established e-mail accounts to be used only to communicate requests and offers for bribe payments.   Sylvester Zugrav and Mendez also created password-protected documents for e-mail communications and used code words and false names.  Within the encrypted documents, Mendez adopted the moniker “Chuco” and Sylvester Zugrav used the codename “Jugo.”   They referred to cash as “literature.”

The case was investigated by the FBI and the Air Force Office of Special Investigations.   The case is being prosecuted by Trial Attorneys Marquest J. Meeks and Edward P. Sullivan of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney Carlos A. Esqueda of the District of Utah, and Trial Attorney Deborah Curtis of the National Security Division’s Counterespionage Section.  

READOUT OF PRESIDENT OBAMA'S CALL WITH GERMAN CHANCELLOR MERKEL

FROM:  THE WHITE HOUSE 
Readout of the President’s Call with Chancellor Merkel

The President spoke to Chancellor Merkel today to wish her a speedy recovery following her injury and to congratulate her on the formation of her new cabinet.  The leaders noted the full agenda for 2014, including the Transatlantic Trade and Investment Partnership (T-TIP) negotiations and NATO Summit, and looked forward to working closely together to advance our shared interests. The President also extended an invitation to the Chancellor to visit Washington at a mutually agreeable time in the coming months.

MEN CHARGED FOR ILLEGAL CAPTURE AND MAIMING OF MOUNTAIN LIONS AND BOBCATS

FROM:  JUSTICE DEPARTMENT 
Wednesday, January 8, 2014
Colorado Big Game Outfitter and Assistant Guide Charged with Conspiracy for Illegal Capture and Maiming of Mountain Lions and Bobcats in Colorado and Utah

Christopher W. Loncarich, 55, of Mack, Colo., and Nicholaus J. Rodgers, 30, of Medford, Or., were charged yesterday in the District of Colorado with conspiracy to violate the Lacey Act, interstate felony transportation and sale of unlawfully taken wildlife, and felony creation of false records concerning wildlife that was sold in interstate commerce.   The 17-count indictment was based on the pair’s practice between 2007 and 2010 of illegally capturing and maiming mountain lions and bobcats as part of a scheme to make hunting the cats easier for their clients.

The indictment alleges Christopher Loncarich is a big game outfitter and hunting guide who operates mainly in   western Colorado on the border with Utah.  Mr. Loncarich outfits and guides hunts for mountain lions and bobcats in the Bookcliffs Mountains, which span the Colorado-Utah border.  Mountain lion and bobcat hunting are labor-intensive pursuits.  The hunting seasons for the cats stretch from November to March when snow is likely to be on the ground.   Guides commonly release highly-trained dogs on the track of the cats after the guides discover a track in the snow.  The process is for the hunting dogs to follow the cat’s scent in the snow, then tree, corner or bay the pursued cat.   At that point a hunter arrives and kills the treed cat.

The allegations include that Mr. Loncarich and his assistant guides devised a scheme whereby they would trap the cats in cages prior to hunts and release the cats when the client was nearby.   Mr. Loncarich, Mr. Rodgers and other guides would communicate by radio to ensure that they took their clients to the location where the cats had been released.   In order to keep the cats in the areas of potential hunts Mr. Loncarich, Mr. Rodgers and other guides would sometimes shoot the cats in the paws or legs or attach leghold traps to them.  Many of the clients Mr. Loncarich and Mr. Rodgers guided did not have proper tags or licenses to take mountain lions or bobcats in Utah.   Despite knowing that the clients were hunting in Utah without proper licenses or tags, the pair continued to guide the hunts.  Ultimately, Mr. Loncarich, Mr. Rodgers and other guides brought the animals taken in Utah back to Colorado.   Mr. Loncarich often took the client to “check in” the illegally taken mountain lions with the Colorado Division of Wildlife (now “Colorado Parks and Wildlife”) where Mr. Loncarich would provide false records to obtain seals for the hides.   Many of the cats were then transported back to the clients’ home states.   To date, four assistant guides have pleaded guilty to offenses arising from the conspiracy.

An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

The case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement, Colorado Parks and Wildlife, and Utah Division of Wildlife Resources, and is being prosecuted by the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.

FDA WARNS CONSUMERS OF POTENTIAL DANGERS OF OVER-THE-COUNTER LAXITIVES

FROM:  FOOD AND DRUG ADMINISTRATION 
Constipation may not be a subject for polite conversation, but it's a condition that bothers many of us on occasion.

The Food and Drug Administration (FDA) is warning consumers that some of the over-the-counter (OTC) laxatives they may turn to for relief are potentially dangerous if dosing instructions or warnings on the Drug Facts label are not properly followed or when there are certain coexisting health conditions. In fact, there have been dozens of reports of serious side effects, including 13 deaths, associated with the use of sodium phosphate laxatives.

The label of sodium phosphate laxatives states that they should be used as a single dose taken once a day, and the products should not be used for more than three days. Equally important, consumers who do not have a bowel movement after taking an oral or rectal dose should not take another dose of the product.

In addition, labeling instructs adults and children to ask health care professionals before using these products if they have kidney disease, heart problems or dehydration.

FDA is now warning that adults older than 55 and adults and children with certain health conditions should ask a health care professional before using these products because they may be at increased risk for harmful side effects. These new warnings are not currently in the Drug Facts label and apply to both adults and children.

who are taking certain drugs that affect how the kidneys work, such as diuretics or fluid medicines; angiotensin-converting enzyme (ACE) inhibitors used to lower blood pressure; angiotensin receptor blockers (ARBs) used to treat high blood pressure, heart, or kidney failure; and nonsteroidal anti-inflammatory drugs (NSAIDs), such as ibuprofen.
with inflammation of the colon.

Constipation is marked by infrequent bowel movements or difficulty in passing stools.

Laxatives—taken both orally and rectally—come in different forms, with different ingredients. The sodium phosphate used in some products is in a class of medications called saline laxatives. This class of laxatives helps promote a bowel movement by drawing water into the bowel, which softens the stool and makes it easier to pass.

Laxative products containing sodium phosphates are marketed under the brand name "Fleet" and also as store brands and generic products. All of them are potentially associated with serious side effects, such as dehydration and/or abnormal levels of electrolytes in the blood that can lead to serious complications, such as kidney damage and sometimes death.

Who is Most at Risk?

According to Mona Khurana, M.D., a medical officer in FDA's Division of Nonprescription Regulation Development and a pediatric nephrologist (a doctor who specializes in children's kidney diseases), the most serious harm in recent reports occurred after consumers overdosed by taking a single dose that was higher than recommended on the drug label or took more than one dose in a day because they had a poor laxative effect from the first dose.
"The bottom line is that these products are safe for otherwise healthy adults and older children for whom dosing instructions are provided on the Drug Facts label as long as they follow these dosing instructions and don't take the product more often, or in greater amounts, than the label instructs," Khurana says.

In recent reviews of harmful side effects reported by consumers and health care professionals, FDA has identified 54 cases of serious side effects associated with the oral or rectal use of OTC sodium phosphate products for the treatment of constipation in adults and children. Thirteen cases were fatal, including one child and 12 adults.

"It is not possible to determine the precise rate of these events as no one knows how many individuals who take these medications may experience side effects," says Khurana, adding, "Not everybody who develops problems in association with sodium phosphate use reports to the FDA."

Can these laxatives be used safely in young children?

"Caregivers should not give these products orally to children under age 5 years without first asking a health care professional. Both caregivers and health care professionals should avoid the rectal use of these drug products in children under age 2 years," Khurana cautions. "These warnings against use in young children are listed on product labeling."

Warning Signs
Consumers taking these laxatives should watch for warning signs of a bad reaction. For example, a rectal dose that is retained and does not produce a bowel movement may cause dehydration and/or serious changes in blood electrolyte levels. Symptoms of dehydration include dry mouth, thirst, reduced urine output, and lightheadedness, especially with changes in position. If the rectal dose is retained in the body longer than 30 minutes, a health care professional should be contacted right away.
The symptoms of kidney injury include drowsiness, sluggishness, a decreased amount of urine, or swelling of the ankles, feet and legs. If you experience any of these symptoms after using laxatives containing sodium phosphates, you should seek medical attention immediately.

If you have any concerns about using the products, particularly for use with young children, talk to your health care professional first, Khurana says.

This article appears on FDA's Consumer Updates page, which features the latest on all FDA-regulated products.

Jan. 8, 2014

READOUT: VICE PRESIDENT BIDEN'S CALL WITH IRAQI PRIME MINISTER AL-MALIKI

FROM:  THE WHITE HOUSE 

Readout of Vice President Biden's Call with Iraqi Prime Minister Nouri al-Maliki
This morning, Vice President Biden spoke with Iraqi Prime Minister Nouri al-Maliki.  The Vice President encouraged the Prime Minister to continue the Iraqi government’s outreach to local, tribal, and national leaders and welcomed the Council of Ministers’ decision to extend state benefits to tribal forces killed or injured in the fight against the Islamic State of Iraq and the Levant (ISIL).  He also welcomed Prime Minister Maliki’s statement earlier today affirming that Iraqi elections will occur as scheduled, as well as the Prime Minister’s commitment to ensuring that humanitarian aid is reaching people in need.  Prime Minister Maliki updated the Vice President on the situation in Anbar province, including a series of political initiatives that are underway at the local and national level. The Vice President underscored that America will support and assist Iraq in its fight against international terrorism.

FUNERAL HOME TO PAY $32,000 TO SETTLE FTC CHARGES

FROM:  FEDERAL TRADE COMMISSION 
New York Funeral Home Will Pay $32,000 to Settle FTC Charges for Funeral Rule Violations

A New York funeral home and its funeral director/owner agreed to pay a $32,000 civil penalty to settle Federal Trade Commission charges for violating the agency’s Funeral Rule, which requires funeral providers to provide information consumers need to compare prices and buy only the funeral services and goods they want.

In May 2012, at the FTC’s request, the United States Attorney for the Southern District of New York charged Harrison Funeral Home Inc. in Harrison, N.Y., and John Balsamo with allegedly failing to provide consumers with an itemized general price list at the beginning of any in person discussion about funeral arrangements; a casket price list at the beginning of any discussion about caskets; and an outer burial container price list at the beginning of any discussion about outer burial containers, as required by the Funeral Rule. An amended complaint was filed in October 2012. The amended complaint was based on inspections by FTC staff posing as consumers seeking to make funeral arrangements.

The FTC conducts undercover inspections every year to ensure funeral homes are complying with the Funeral Rule, which gives consumers important rights when making funeral arrangements. The Rule, issued in 1984, requires funeral homes to provide consumers with itemized price lists at the start of any in-person discussions of funeral arrangements, caskets, and/or outer burial containers. The Rule also requires funeral homes to provide price information by telephone on request. It also prohibits funeral homes from requiring consumers to buy any item, such as a casket, as a condition of obtaining any other funeral good or service.

The consent decree requires the defendants to pay a $32,000 civil penalty, and permanently prohibits them from violating the Funeral Rule.

For more information about the Funeral Rule, read Shopping for Funeral Services and Complying with the Funeral Rule.

The Commission vote to approve the proposed consent judgment was 4-0. The United States Attorney for the Southern District of New York filed it on behalf of the Commission in the U.S. District Court for the Southern District of New York on November 27, 2013.  The judgment was entered by the court on January 2, 2014.

Wednesday, January 8, 2014

PRESIDENT OBAMA'S STATEMENT ON 50TH ANNIVERSARY OF WAR ON POVERTY

FROM:  THE WHITE HOUSE 
Statement by the President on the 50th Anniversary of the War on Poverty

As Americans, we believe that everyone who works hard deserves a chance at opportunity, and that all our citizens deserve some basic measure of security.  And so, 50 years ago, President Johnson declared a War on Poverty to help each and every American fulfill his or her basic hopes.  We created new avenues of opportunity through jobs and education, expanded access to health care for seniors, the poor, and Americans with disabilities, and helped working families make ends meet.  Without Social Security, nearly half of seniors would be living in poverty.  Today, fewer than one in seven do.  Before Medicare, only half of seniors had some form of health insurance.  Today, virtually all do.  And because we expanded pro-work and pro-family programs like the Earned Income Tax Credit, a recent study found that the poverty rate has fallen by nearly 40% since the 1960s, and kept millions from falling into poverty during the Great Recession.

These endeavors didn’t just make us a better country.  They reaffirmed that we are a great country.  They lived up to our best hopes as a people who value the dignity and potential of every human being.  But as every American knows, our work is far from over.  In the richest nation on Earth, far too many children are still born into poverty, far too few have a fair shot to escape it, and Americans of all races and backgrounds experience wages and incomes that aren’t rising, making it harder to share in the opportunities a growing economy provides.  That does not mean, as some suggest, abandoning the War on Poverty.  In fact, if we hadn’t declared “unconditional war on poverty in America,” millions more Americans would be living in poverty today.  Instead, it means we must redouble our efforts to make sure our economy works for every working American.  It means helping our businesses create new jobs with stronger wages and benefits, expanding access to education and health care, rebuilding those communities on the outskirts of hope, and constructing new ladders of opportunity for our people to climb.

We are a country that keeps the promises we’ve made.  And in a 21st century economy, we will make sure that as America grows stronger, this recovery leaves no one behind.  Because for all that has changed in the 50 years since President Johnson dedicated us to this economic and moral mission, one constant of our character has not: we are one nation and one people, and we rise or fall together.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JANUARY 8, 2014

FROM:  DEFENSE DEPARTMENT 
CONTRACTS
DEFENSE LOGISTICS AGENCY

GE Healthcare, Wauwatosa, Wis., has been awarded a maximum $43,200,000 modification (P00036) exercising the fifth option year of contract (SPM2D1-09-D-8300) for patient monitoring systems, subsystems, accessories, consumables, spare and repair parts, and training.  This is a fixed-price with economic-price-adjustment contract.  Location of performance is Wisconsin with a Jan. 13, 2015 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies.  Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

McClellan Jet Services*, McClellan, Calif., has been awarded a maximum $37,307,380 fixed-price with economic-price-adjustment contract for into-plane requirement jet fuel.  This contract is a competitive acquisition, and one offer was received.  Location of performance is California with a March 31, 2018 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies.  Type of appropriation is fiscal 2014 through fiscal 2018 defense working capital funds.  The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va., (SP0600-14-D-0014).

ARMY

Eisenbraun and Associates, Yankdon, S.D., was awarded a $9,000,000 firm-fixed-price, task order contract for a nationwide survey and mapping of shallow water habitat, floodplain changes and vegetation cover.  Funding and work performance location will be determined with each order.  Estimated completion date is Jan. 7, 2019.  Bids were solicited via the Internet with 27 received.  Army Corps of Engineers, Omaha, Neb., is the contracting activity (W9128F-14-D-0001).

Bering Straits Technical Services LLC, Anchorage, Alaska, was awarded a $6,778,700 modification (P00004) to contract W91ZLK-13-D-0001 to furnish all plant, labor, materials, equipment, services, incidentals, and work to demolish, repair, and construct a variety of paving structures and drainage devices at several areas at Aberdeen Proving Ground, Md.  Funding and work performance location will be determined with each order.  Estimated completion date is Jan. 15, 2015.  Army Contracting Command, Aberdeen Proving Ground, Md., is the contracting activity.

NAVY

BAE Systems Norfolk Ship Repair, Norfolk, Va., is being awarded a $13,895,899 modification to previously awarded contract (N00024-11-C-4407) for the USS Wasp (LHD 1) fiscal 2013 dry-docking planned maintenance availability.  A dry-docking planned maintenance availability includes the planning and execution of depot-level maintenance, alterations, and modifications that will update and improve the ship's military and technical capabilities.  Work will be performed in Norfolk, Va., and is expected to be completed by November 2014.  Fiscal 2014 operations and maintenance, Navy funding in the amount of $13,895,899 will be obligated at time of award and will expire at the end of the current fiscal year.  Norfolk Ship Support Activity, Norfolk, Va., is the administrative contracting activity.

*Veteran Owned Small Business


Weekly Republican Address 1/4/14: Rep. Gregg Harper (R-MS)

MEDICAL CLINIC OWNER PLEADS GUILTY FOR ROLES IN HEALTH CARE FRAUDS TOTALING OVER $20 MILLION

FROM:  JUSTICE DEPARTMENT 
Tuesday, January 7, 2014
Medical Clinic Owner Pleads Guilty in Miami for Role in Multiple Health Care Fraud Schemes Totaling Over $20 Million

The owner and operator of a Miami medical clinic pleaded guilty today in connection with multiple health care fraud schemes involving the defunct clinic Merfi Corp.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement.

Isabel Medina, 49, of Miami, pleaded guilty before U.S. District Judge Ursula Ungaro of the Southern District of Florida to conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison.   Sentencing has been scheduled for March 14, 2014.

According to court documents, Medina was an owner and operator of Merfi, a Miami medical clinic which employed physicians, physician assistants and other medical professionals who were authorized by law to dispense prescriptions for home health care services.   Through Merfi, Medina and her co-conspirators provided fraudulent home health and therapy prescriptions and other medical documentation to the owners and operators of Flores Home Health Care Inc. and other home health care agencies, as well as to patient recruiters, in return for kickbacks and bribes.

Flores Home Health and these other home health care agencies purported to provide home health and therapy services to Medicare beneficiaries, but were in fact operated for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or not provided.

Medina has acknowledged that her involvement in fraudulent schemes at multiple home health care companies, including Flores Home Health, resulted in losses to the Medicare Program exceeding $20 million.

The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.   This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion.   In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

G2 Gas Cloud Simulation (+playlist)

CDC SAYS MOST HEALTH CARE PROVIDERS DON'T DISCUSS ALCOHOL USE

FROM:  CENTERS FOR DISEASE CONTROL AND PREVENTION

Most health care providers don’t talk about alcohol, even when patients drink too much.

Alcohol screening and counseling is an effective but underused health service
Only one in six adults -- and only one in four binge drinkers -- say a health professional has ever discussed alcohol use with them even though drinking too much is harmful to health, according to a new Vital Signs report from the Centers for Disease Control and Prevention.

Even among adults who binge drink 10 or more times a month, only one in three have ever had a health professional talk with them about alcohol use. Binge drinking is defined as consuming four or more drinks for women and five or more drinks for men within 2-3 hours. Talking with a patient about their alcohol use is an important first step in screening and counseling, which has been proven effective in helping people who drink too much to drink less.

A drink is defined as five ounces of wine, 12 ounces of beer, or 1.5 ounces of 80-proof distilled spirits or liquor. At least 38 million adults in the United States drink too much. Most are not alcoholics. Drinking too much causes about 88,000 deaths in the United States each year, and was responsible for about $224 billion in economic costs in 2006. It can also lead to many health and social problems, including heart disease, breast cancer, sexually transmitted diseases, fetal alcohol spectrum disorders, motor-vehicle crashes, and violence.

Alcohol screening and brief counseling can reduce the amount of alcohol consumed on an occasion by 25 percent among those who drink too much. It is recommended for all adults, including pregnant women. As with blood pressure, cholesterol and breast cancer screening, and flu vaccination, it has also been shown to improve health and save money. Through the Affordable Care Act, alcohol screening and brief counseling can be covered by most health insurance plans without copay.

“Drinking too much alcohol has many more health risks than most people realize,” said CDC Director Tom Frieden, M.D., M.P.H. “Alcohol screening and brief counseling can help people set realistic goals for themselves and achieve those goals. Health care workers can provide this service to more patients and involve communities to help people avoid dangerous levels of drinking.”

Health professionals who conduct alcohol screening and brief counseling use a set of questions to screen all patients to determine how much they drink and assess problems associated with drinking. This allows them to counsel those who drink too much about the health dangers, and to refer those who need specialized treatment for alcohol dependence. CDC used 2011 Behavioral Risk Factor Surveillance System data to analyze self-reports of ever being “talked with by a health provider” about alcohol use among U.S. adults aged 18 and older from 44 states and the District of Columbia.

No state or district had more than one in four adults report that a health professional talked with them about their drinking, and only 17 percent of pregnant women reported this. Drinking during pregnancy can seriously harm the developing fetus.

Through the Affordable Care Act, more Americans will have access to health coverage and to no-cost preventive services like alcohol misuse screening and counseling. Visit Healthcare.gov to learn more. Open enrollment in the Marketplace began October 1 and ends March 31, 2014. For those enrolled by Dec. 15, 2013, coverage starts as early as Jan. 1, 2014.

OHIO DEPUTY TREASURER PLEADS GUILTY FOR ROLE IN KICKBACK/MONEY LAUNDERING SCHEME

U.S. JUSTICE DEPARTMENT 
Monday, December 23, 2013
Former Ohio Deputy Treasurer Pleads Guilty for His Role in Kickback and Money Laundering Scheme

The former Ohio deputy treasurer pleaded guilty today for his role in leading a bribery and money laundering scheme involving the Ohio Treasurer’s Office.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Mark T. D’Alessandro of the Southern District of Ohio, and Special Agent in Charge Kevin R. Cornelius of the FBI’s Cincinnati Division made the announcement.

Amer Ahmad, 38, of Chicago, appeared before U.S. District Judge Michael H. Watson of the Southern District of Ohio and pleaded guilty to conspiracy, which carries a maximum penalty of five years in prison, and federal program bribery, which carries a maximum penalty of 10 years in prison.   Sentencing will be scheduled at a later date.

According to court documents, from approximately January 2009 through January 2011, Ahmad and others conspired to use Ahmad’s role as deputy treasurer to direct official State of Ohio broker services business to Douglas E. Hampton, 39, a securities broker from Canton, Ohio, in return for payments from Hampton.  Ahmad and Joseph M. Chiavaroli, 33, of Chicago, concealed those payments from Hampton by passing them through the accounts of a landscaping business in which Ahmad and Chiavaroli held ownership interests.   Hampton also funneled in excess of $123,000 to Mohammed Noure Alo, 35, of Columbus, Ohio, an attorney and lobbyist who was Ahmad’s close personal friend and business associate.

As a result of the scheme, Hampton received approximately $3.2 million in commissions for 360 trades on behalf of the Ohio Treasurer’s Office.   Ahmad and his co-conspirators received in excess of $500,000 from Hampton.   Hampton and Chiavaroli entered guilty pleas in August 2013 and Alo pleaded guilty on Dec. 20, 2013.

The case was investigated by the FBI’s Central Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation.  The case is being prosecuted by Assistant U.S. Attorney Douglas W. Squires of the Southern District of Ohio and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section.

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