FROM: U.S. NAVY
A PUBLICATION OF RANDOM U.S.GOVERNMENT PRESS RELEASES AND ARTICLES
Saturday, December 27, 2014
SECRETARY HAGEL CALLS SERVICE MEMBERS ON CHRISTMAS DAY
FROM: U.S. DEFENSE DEPARTMENT
Hagel Calls Service Members on Christmas, Thanks Them for Service to Nation
DoD News, Defense Media Activity
WASHINGTON, Dec. 25, 2014 – Defense Secretary Chuck Hagel today called service members taking part in U.S. operations around the world to wish them a Merry Christmas, according to Pentagon Press Secretary Navy Rear Adm. John Kirby.
In a DoD News Release, Kirby said “Secretary Hagel expressed his appreciation for their service in defending the United States, and supporting our allies and partners.
“In each of the calls, Secretary Hagel noted that he knows how difficult it is to be away from home on this holiday and thanked the service members and their families for their sacrifice for the nation,” Kirby said.
Hagel spoke with representatives from each military service, including:
- Army Spc. Randolph A. Priest, of Barren Springs, Va. Priest is a communications specialist serving in Afghanistan, who is responsible for ensuring reliable communications between the headquarters and soldiers.
- Air Force Capt. Laura A. Klepper, of Palmdale, Calif. Klepper is an F-15E weapon system officer deployed to the Central Command area of responsibility, providing combat airpower in support of regional missions. She was selected as her squadron’s flight commander of the year.
- Marine Corps Cpl. Thomas A. Vasko, Jr., of Medina, Ohio. Vasko is an infantry advisor in Afghanistan, training allies in how to conduct patrols to prevent enemy freedom of movement and indirect fire attacks. He is also an assistant patrol leader.
- Navy Petty Officer 1st Class Taylor A. Porter, of Dayton, Wash. Porter is deployed to the Central Command area of responsibility and leads an 11-person team in ensuring aviation equipment is maintained and safe for flight. She was selected as her squadron’s maintainer of the year and led the stand-up of a unit supporting Operation Inherent Resolve.
“The secretary was delighted to be able to reach these service members, forward deployed as they are, and to wish them his best for the holiday,” Kirby said. “He asked that each pass on his best wishes to their units as well. The secretary was very grateful for the time these young leaders gave him.”
Hagel Calls Service Members on Christmas, Thanks Them for Service to Nation
DoD News, Defense Media Activity
WASHINGTON, Dec. 25, 2014 – Defense Secretary Chuck Hagel today called service members taking part in U.S. operations around the world to wish them a Merry Christmas, according to Pentagon Press Secretary Navy Rear Adm. John Kirby.
In a DoD News Release, Kirby said “Secretary Hagel expressed his appreciation for their service in defending the United States, and supporting our allies and partners.
“In each of the calls, Secretary Hagel noted that he knows how difficult it is to be away from home on this holiday and thanked the service members and their families for their sacrifice for the nation,” Kirby said.
Hagel spoke with representatives from each military service, including:
- Army Spc. Randolph A. Priest, of Barren Springs, Va. Priest is a communications specialist serving in Afghanistan, who is responsible for ensuring reliable communications between the headquarters and soldiers.
- Air Force Capt. Laura A. Klepper, of Palmdale, Calif. Klepper is an F-15E weapon system officer deployed to the Central Command area of responsibility, providing combat airpower in support of regional missions. She was selected as her squadron’s flight commander of the year.
- Marine Corps Cpl. Thomas A. Vasko, Jr., of Medina, Ohio. Vasko is an infantry advisor in Afghanistan, training allies in how to conduct patrols to prevent enemy freedom of movement and indirect fire attacks. He is also an assistant patrol leader.
- Navy Petty Officer 1st Class Taylor A. Porter, of Dayton, Wash. Porter is deployed to the Central Command area of responsibility and leads an 11-person team in ensuring aviation equipment is maintained and safe for flight. She was selected as her squadron’s maintainer of the year and led the stand-up of a unit supporting Operation Inherent Resolve.
“The secretary was delighted to be able to reach these service members, forward deployed as they are, and to wish them his best for the holiday,” Kirby said. “He asked that each pass on his best wishes to their units as well. The secretary was very grateful for the time these young leaders gave him.”
DEALER'S ALLEGED DECEPTIVE AUTO ADS HALTED BY FTC
FROM: U.S. FEDERAL TRADE COMMISSION
FTC Halts Texas Auto Dealer’s Deceptive Ads
Misleading Ads Claimed $1 Gets Consumers Out of Current Loan or Lease
An auto dealer in suburban Dallas has agreed to settle Federal Trade Commission charges that it used deceptive ads to promote the sale and lease of its vehicles, including an ad that claimed consumers could get out of their current loan or lease for $1.
According to the complaint, false or deceptive ads from TXVT Limited Partnership, doing business as Trophy Nissan (Trophy), violated the FTC Act as well as the Consumer Leasing Act (CLA) and Regulation M, and the Truth in Lending Act (TILA) and Regulation Z.
The FTC charged that Trophy advertised enticing prices, lease or finance terms, and promotions and then attempted to disclaim its attractive offers using small text in print and video ads. In addition to print and TV advertisements, Trophy also ran ads on its website, Facebook and Twitter. The dealership also ran print ads in a local Spanish-language newspaper, Al Dia.
Among the deceptive ads run by Trophy was one that misled consumers into thinking they could get out of their current loan or lease for only $1. The Commission’s complaint alleges the advertisement was deceptive since consumers could not get out of their loan or lease for that amount. In fact, Trophy would add the balance of any loan or lease obligation to the balance of a new loan.
In another promotion, “Max Your Tax,” Trophy claimed it would match tax refunds to use for a down payment, but the small print at the bottom of the ad disclosed it limited match refunds to no more than $1,000. The FTC alleges that Trophy failed to disclose adequately the additional terms.
As part of the proposed consent order, Trophy is prohibited from:
misrepresenting it will pay off a consumers’ trade-in;
misrepresenting material terms of any promotion or other incentive;
misrepresenting the cost of leasing or purchasing a vehicle; and
failing to clearly and conspicuously disclose material terms of a promotion or other incentive.
The proposed consent order also requires Trophy to comply with CLA and Regulation M and TILA and Regulation Z.
The case is part of the Commission’s continued efforts to protect consumers in the auto marketplace. The FTC provides a variety of resources for consumers buying or leasing a vehicle, including Are Car Ads Taking You For A Ride?
The Commission vote to issue the administrative complaint and accept the proposed consent order was 5-0. The agreement is subject to public comment for 30 days, beginning today and continuing through Jan. 22, 2015, after which the Commission will decide whether to make the proposed consent order final. Submit a comment online or through the mail.
NOTE: The Commission issues administrative complaints when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues consent orders on a final basis, they carry the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000 per day.
FTC Halts Texas Auto Dealer’s Deceptive Ads
Misleading Ads Claimed $1 Gets Consumers Out of Current Loan or Lease
An auto dealer in suburban Dallas has agreed to settle Federal Trade Commission charges that it used deceptive ads to promote the sale and lease of its vehicles, including an ad that claimed consumers could get out of their current loan or lease for $1.
According to the complaint, false or deceptive ads from TXVT Limited Partnership, doing business as Trophy Nissan (Trophy), violated the FTC Act as well as the Consumer Leasing Act (CLA) and Regulation M, and the Truth in Lending Act (TILA) and Regulation Z.
The FTC charged that Trophy advertised enticing prices, lease or finance terms, and promotions and then attempted to disclaim its attractive offers using small text in print and video ads. In addition to print and TV advertisements, Trophy also ran ads on its website, Facebook and Twitter. The dealership also ran print ads in a local Spanish-language newspaper, Al Dia.
Among the deceptive ads run by Trophy was one that misled consumers into thinking they could get out of their current loan or lease for only $1. The Commission’s complaint alleges the advertisement was deceptive since consumers could not get out of their loan or lease for that amount. In fact, Trophy would add the balance of any loan or lease obligation to the balance of a new loan.
In another promotion, “Max Your Tax,” Trophy claimed it would match tax refunds to use for a down payment, but the small print at the bottom of the ad disclosed it limited match refunds to no more than $1,000. The FTC alleges that Trophy failed to disclose adequately the additional terms.
As part of the proposed consent order, Trophy is prohibited from:
misrepresenting it will pay off a consumers’ trade-in;
misrepresenting material terms of any promotion or other incentive;
misrepresenting the cost of leasing or purchasing a vehicle; and
failing to clearly and conspicuously disclose material terms of a promotion or other incentive.
The proposed consent order also requires Trophy to comply with CLA and Regulation M and TILA and Regulation Z.
The case is part of the Commission’s continued efforts to protect consumers in the auto marketplace. The FTC provides a variety of resources for consumers buying or leasing a vehicle, including Are Car Ads Taking You For A Ride?
The Commission vote to issue the administrative complaint and accept the proposed consent order was 5-0. The agreement is subject to public comment for 30 days, beginning today and continuing through Jan. 22, 2015, after which the Commission will decide whether to make the proposed consent order final. Submit a comment online or through the mail.
NOTE: The Commission issues administrative complaints when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues consent orders on a final basis, they carry the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000 per day.
FORMER FBI AGENT PLEADS GUILTY IN BRIBERY CASE
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, December 23, 2014
Former FBI Special Agent Pleads Guilty to Bribery Scheme
A former FBI special agent pleaded guilty today to bribery charges, admitting that he provided internal law enforcement documents and other confidential information about a prominent citizen of Bangladesh for use by a political rival in exchange for cash.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York and Justice Department Inspector General Michael E. Horowitz made the announcement.
“Robert Lustyik discarded the FBI’s principles of ‘fidelity, bravery, and integrity,’ and sold his badge to the highest bidder,” said Assistant Attorney General Caldwell. “Greed has no place in public service or law enforcement. The Department of Justice will root out corruption wherever it takes hold, and hold accountable those who abuse the public’s trust for personal gain.”
“Robert Lustyik today admitted to conducting a bribery scheme in which, for his own personal gain, he secretly sold information and documents to which he had access as an FBI agent,” said U.S. Attorney Bharara. “Lustyik betrayed our system of justice: he breached not only the law, but also his sworn oath, and the great trust and confidence placed in him by citizens and colleagues. For his criminal conduct he now faces, as he must, serious, commensurate penalties.”
“The Department of Justice Office of the Inspector General is committed to working with our law enforcement partners to identify, investigate, and bring to justice all DOJ employees who engage misconduct,” said Inspector General Horowitz.
Robert Lustyik, 52, of Westchester County, New York, pleaded guilty to all five counts in the indictment against him, including conspiracy to engage in a bribery scheme, soliciting bribes by a public official, conspiracy to defraud the citizens of the United States and the FBI, theft of government property, and unauthorized disclosure of a Suspicious Activity Report. Lustyik is scheduled to be sentenced by U.S. District Court Judge Vincent L. Briccetti of the Southern District of New York on April 30, 2015.
According to the complaint, indictment, court hearings, and today’s plea proceeding, Lustyik was an FBI special agent who worked on the counterintelligence squad in the White Plains Resident Agency. Johannes Thaler was Lustyik’s friend, and Rizve Ahmed, aka, “Caesar,” was an acquaintance of Thaler. From September 2011 through March 2012, Lustyik, Thaler and Ahmed engaged in a bribery scheme. As part of the scheme, Lustyik and Thaler solicited payments from Ahmed, in exchange for Lustyik’s agreement to provide internal, confidential documents and other confidential information to which Lustyik had access by virtue of his position as an FBI special agent. The documents and information pertained to a prominent citizen of Bangladesh (Individual 1), who Ahmed perceived as a political rival. Ahmed sought, among other things, to obtain information about Individual 1, to locate and harm Individual 1 and others associated with Individual 1.
As part of the scheme, Lustyik and Thaler exchanged text messages, including messages about how to pressure Ahmed to pay them additional money in exchange for confidential information. For example, in text messages, Lustyik told Thaler, “we need to push [Ahmed] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.” Thaler responded, “I know. It’s all right there in front of us. Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .”
As another example, in late January 2012, Lustyik, upon learning that Ahmed was considering using a different source to obtain confidential information about Individual 1, sent a text message to Thaler stating, “I want to kill C . . . . I hung my ass out the window n we got nothing? . . . . Tell [Ahmed], I’ve got [Individual 1’s] number and I’m pissed. . . . I will put a wire on n get [Ahmed and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to Individual 1].” Lustyik further stated, “So bottom line. I need ten gs asap. We gotta squeeze C.”
Thaler and Ahmed previously pleaded guilty to bribery and conspiracy to commit fraud, and are scheduled to be sentenced on Jan. 23, 2015.
The case was investigated by the Department of Justice Office of the Inspector General, and prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Benjamin Allee of the Southern District of New York.
Tuesday, December 23, 2014
Former FBI Special Agent Pleads Guilty to Bribery Scheme
A former FBI special agent pleaded guilty today to bribery charges, admitting that he provided internal law enforcement documents and other confidential information about a prominent citizen of Bangladesh for use by a political rival in exchange for cash.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York and Justice Department Inspector General Michael E. Horowitz made the announcement.
“Robert Lustyik discarded the FBI’s principles of ‘fidelity, bravery, and integrity,’ and sold his badge to the highest bidder,” said Assistant Attorney General Caldwell. “Greed has no place in public service or law enforcement. The Department of Justice will root out corruption wherever it takes hold, and hold accountable those who abuse the public’s trust for personal gain.”
“Robert Lustyik today admitted to conducting a bribery scheme in which, for his own personal gain, he secretly sold information and documents to which he had access as an FBI agent,” said U.S. Attorney Bharara. “Lustyik betrayed our system of justice: he breached not only the law, but also his sworn oath, and the great trust and confidence placed in him by citizens and colleagues. For his criminal conduct he now faces, as he must, serious, commensurate penalties.”
“The Department of Justice Office of the Inspector General is committed to working with our law enforcement partners to identify, investigate, and bring to justice all DOJ employees who engage misconduct,” said Inspector General Horowitz.
Robert Lustyik, 52, of Westchester County, New York, pleaded guilty to all five counts in the indictment against him, including conspiracy to engage in a bribery scheme, soliciting bribes by a public official, conspiracy to defraud the citizens of the United States and the FBI, theft of government property, and unauthorized disclosure of a Suspicious Activity Report. Lustyik is scheduled to be sentenced by U.S. District Court Judge Vincent L. Briccetti of the Southern District of New York on April 30, 2015.
According to the complaint, indictment, court hearings, and today’s plea proceeding, Lustyik was an FBI special agent who worked on the counterintelligence squad in the White Plains Resident Agency. Johannes Thaler was Lustyik’s friend, and Rizve Ahmed, aka, “Caesar,” was an acquaintance of Thaler. From September 2011 through March 2012, Lustyik, Thaler and Ahmed engaged in a bribery scheme. As part of the scheme, Lustyik and Thaler solicited payments from Ahmed, in exchange for Lustyik’s agreement to provide internal, confidential documents and other confidential information to which Lustyik had access by virtue of his position as an FBI special agent. The documents and information pertained to a prominent citizen of Bangladesh (Individual 1), who Ahmed perceived as a political rival. Ahmed sought, among other things, to obtain information about Individual 1, to locate and harm Individual 1 and others associated with Individual 1.
As part of the scheme, Lustyik and Thaler exchanged text messages, including messages about how to pressure Ahmed to pay them additional money in exchange for confidential information. For example, in text messages, Lustyik told Thaler, “we need to push [Ahmed] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.” Thaler responded, “I know. It’s all right there in front of us. Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .”
As another example, in late January 2012, Lustyik, upon learning that Ahmed was considering using a different source to obtain confidential information about Individual 1, sent a text message to Thaler stating, “I want to kill C . . . . I hung my ass out the window n we got nothing? . . . . Tell [Ahmed], I’ve got [Individual 1’s] number and I’m pissed. . . . I will put a wire on n get [Ahmed and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to Individual 1].” Lustyik further stated, “So bottom line. I need ten gs asap. We gotta squeeze C.”
Thaler and Ahmed previously pleaded guilty to bribery and conspiracy to commit fraud, and are scheduled to be sentenced on Jan. 23, 2015.
The case was investigated by the Department of Justice Office of the Inspector General, and prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Benjamin Allee of the Southern District of New York.
Friday, December 26, 2014
PRESIDENT OBAMA AND FIRST LADY MAKE STATEMENT ON KWANZAA
FROM: THE WHITE HOUSE
December 26, 2014
Statement from the President and the First Lady on Kwanzaa
Michelle and I extend our warmest wishes to those celebrating Kwanzaa this holiday season. Today begins a celebration highlighting the rich African American heritage and culture through the seven principles of Kwanzaa—unity, self-determination, collective work and responsibility, cooperative economics, purpose, creativity and faith. During this season, families come together to reflect on blessings of the past year and look forward to the promises in the year ahead. As we remain committed to building a country that provides opportunity for all, this time of year reminds us that there is much to be thankful for.
As families around the world unite to light the Kinara today, our family extends our prayers and best wishes during this holiday season.
December 26, 2014
Statement from the President and the First Lady on Kwanzaa
Michelle and I extend our warmest wishes to those celebrating Kwanzaa this holiday season. Today begins a celebration highlighting the rich African American heritage and culture through the seven principles of Kwanzaa—unity, self-determination, collective work and responsibility, cooperative economics, purpose, creativity and faith. During this season, families come together to reflect on blessings of the past year and look forward to the promises in the year ahead. As we remain committed to building a country that provides opportunity for all, this time of year reminds us that there is much to be thankful for.
As families around the world unite to light the Kinara today, our family extends our prayers and best wishes during this holiday season.
U.S. OFFICIAL'S OP-ED ON CORRUPTION
FROM: THE STATE DEPARTMENT
Stopping the Flow of Corruption
Op-Ed
Tom Malinowski
Assistant Secretary, Bureau of Democracy, Human Rights, and Labor
Washington Post
December 26, 2014
When Viktor Yanukovych fled Kiev in February, the Ukrainian leader left behind a spectacular Swiss chalet-style mansion, a golf course, dozens of antique cars and a private zoo boasting $10,000 nameplates for the animal pens. Even the Ukrainian public, painfully familiar with the corruption of its leaders, was shocked. Yanukovych had managed to keep the chalet hidden because it was owned not by him but by an anonymous shell company registered in Britain. Other corrupt leaders have used the same trick to hide billions of dollars offshore, including through companies registered in the United States.
The rise and fall of Ukraine’s top kleptocrat teaches us a couple of things about corruption.
First, in many countries, corruption and human rights are tightly bound. The chance to profit from corruption is why many authoritarian leaders seize and cling to power. It becomes the glue that holds their regimes together, giving them spoils to distribute while turning their cronies into criminals who could be exposed and punished if they turn disloyal. It is also among the issues most likely to fuel popular resistance to authoritarianism, as we’ve seen from Tunisia to Russia and Venezuela. Any strategy to promote democracy and human rights must have the fight against corruption at its heart.
Second, we can’t fight corruption abroad if we don’t stop its proceeds from flowing through our companies and banks. We already work hard to return illicitly acquired assets to benefit the citizens of such countries, generally after the leaders who stole them have left office. But this kind of “departure tax” for falling autocrats is not enough: We must do more to deny safe haven to such funds while corrupt leaders are still in power. One way to do that is to prevent the registration of anonymous shell companies on our shores.
The Treasury Department recently took a significant step toward limiting the use of such companies by proposing a regulation that would require financial institutions to collect and verify the identity of the people behind company accountholders. President Obama’s 2015 budget includes a much more far-reaching proposal: It would require all companies to identify their “beneficial ownership” — the human beings who own or control them — to the IRS as part of a routine tax filing and make that information more readily available to law enforcement. Congress should enact this proposal now to ensure that our legal and financial systems are not used to hide corruption and facilitate autocracy overseas.
The overwhelming majority of U.S. companies that have a bank account or pay taxes in the United States already disclose their beneficial ownership. Thus, they would not be burdened and would only benefit from a reform that makes registration in the United States a sure sign of legitimacy rather than a cause for suspicion.
It is foreign criminals and corrupt officials who can benefit from the ability to conceal their identities under our current financial system. They are unlikely to file a U.S. tax return, and if they register a paper legal entity in the United States, they can use it to open a bank account on an offshore island. Indeed, they can create a web of 50 anonymous entities overnight simply by calling a state company registration office, or they can even purchase “shelf” companies registered a decade ago, adopting an additional guise of establishment and credibility. When U.S. law enforcement agencies investigate corruption or other crimes, often all they have is the name of a company and a dead end.
The wildly corrupt son of Equatorial Guinea’s president, for example, allegedly set up a slew of shell companies in the United States to launder millions of dollars of bribes from international logging companies, hiding any ties to himself. Teodoro Nguema Obiang Mangue used this money to purchase a $30 million Malibu, Calif., estate, a $38 million private jet and about $2 million worth of Michael Jackson memorabilia, among other luxuries. Meanwhile, most of his compatriots live on less than $2 per day.
Corruption empowers and enriches dictators. But here is another lesson from Ukraine: It can also become their greatest political vulnerability. Authoritarian governments may be able to muster excuses for shooting demonstrators, arresting political enemies or censoring the Internet, but no cultural, patriotic or national security argument can justify thievery. Disgust with corruption can also ease the ethnic, religious and social divisions such regimes exploit to stay in power — it’s a point of agreement between southern and northern Nigerians, nationalists and liberals in Russia, Shiites and Sunnis across the Middle East.
Fighting corruption by improving financial transparency may be one of the most effective ways of promoting liberty around the world. Members of Congress who believe in that cause and who want us to do better should embrace the president’s proposal to strengthen those laws by closing the shell company loophole that enables dictators to conceal their criminality from their people and the world.
Stopping the Flow of Corruption
Op-Ed
Tom Malinowski
Assistant Secretary, Bureau of Democracy, Human Rights, and Labor
Washington Post
December 26, 2014
When Viktor Yanukovych fled Kiev in February, the Ukrainian leader left behind a spectacular Swiss chalet-style mansion, a golf course, dozens of antique cars and a private zoo boasting $10,000 nameplates for the animal pens. Even the Ukrainian public, painfully familiar with the corruption of its leaders, was shocked. Yanukovych had managed to keep the chalet hidden because it was owned not by him but by an anonymous shell company registered in Britain. Other corrupt leaders have used the same trick to hide billions of dollars offshore, including through companies registered in the United States.
The rise and fall of Ukraine’s top kleptocrat teaches us a couple of things about corruption.
First, in many countries, corruption and human rights are tightly bound. The chance to profit from corruption is why many authoritarian leaders seize and cling to power. It becomes the glue that holds their regimes together, giving them spoils to distribute while turning their cronies into criminals who could be exposed and punished if they turn disloyal. It is also among the issues most likely to fuel popular resistance to authoritarianism, as we’ve seen from Tunisia to Russia and Venezuela. Any strategy to promote democracy and human rights must have the fight against corruption at its heart.
Second, we can’t fight corruption abroad if we don’t stop its proceeds from flowing through our companies and banks. We already work hard to return illicitly acquired assets to benefit the citizens of such countries, generally after the leaders who stole them have left office. But this kind of “departure tax” for falling autocrats is not enough: We must do more to deny safe haven to such funds while corrupt leaders are still in power. One way to do that is to prevent the registration of anonymous shell companies on our shores.
The Treasury Department recently took a significant step toward limiting the use of such companies by proposing a regulation that would require financial institutions to collect and verify the identity of the people behind company accountholders. President Obama’s 2015 budget includes a much more far-reaching proposal: It would require all companies to identify their “beneficial ownership” — the human beings who own or control them — to the IRS as part of a routine tax filing and make that information more readily available to law enforcement. Congress should enact this proposal now to ensure that our legal and financial systems are not used to hide corruption and facilitate autocracy overseas.
The overwhelming majority of U.S. companies that have a bank account or pay taxes in the United States already disclose their beneficial ownership. Thus, they would not be burdened and would only benefit from a reform that makes registration in the United States a sure sign of legitimacy rather than a cause for suspicion.
It is foreign criminals and corrupt officials who can benefit from the ability to conceal their identities under our current financial system. They are unlikely to file a U.S. tax return, and if they register a paper legal entity in the United States, they can use it to open a bank account on an offshore island. Indeed, they can create a web of 50 anonymous entities overnight simply by calling a state company registration office, or they can even purchase “shelf” companies registered a decade ago, adopting an additional guise of establishment and credibility. When U.S. law enforcement agencies investigate corruption or other crimes, often all they have is the name of a company and a dead end.
The wildly corrupt son of Equatorial Guinea’s president, for example, allegedly set up a slew of shell companies in the United States to launder millions of dollars of bribes from international logging companies, hiding any ties to himself. Teodoro Nguema Obiang Mangue used this money to purchase a $30 million Malibu, Calif., estate, a $38 million private jet and about $2 million worth of Michael Jackson memorabilia, among other luxuries. Meanwhile, most of his compatriots live on less than $2 per day.
Corruption empowers and enriches dictators. But here is another lesson from Ukraine: It can also become their greatest political vulnerability. Authoritarian governments may be able to muster excuses for shooting demonstrators, arresting political enemies or censoring the Internet, but no cultural, patriotic or national security argument can justify thievery. Disgust with corruption can also ease the ethnic, religious and social divisions such regimes exploit to stay in power — it’s a point of agreement between southern and northern Nigerians, nationalists and liberals in Russia, Shiites and Sunnis across the Middle East.
Fighting corruption by improving financial transparency may be one of the most effective ways of promoting liberty around the world. Members of Congress who believe in that cause and who want us to do better should embrace the president’s proposal to strengthen those laws by closing the shell company loophole that enables dictators to conceal their criminality from their people and the world.
FTC ALLEGES DATA BROKER SOLD PERSONAL FINANCIAL INFORMATION TO SCAM CRIMINALS
FROM: U.S. FEDERAL TRADE COMMISSION
FTC Charges Data Broker with Facilitating the Theft of Millions of Dollars from Consumers' Accounts
Company Sold Personal Financial Information to Scammers
A data broker operation sold the sensitive personal information of hundreds of thousands of consumers – including Social Security and bank account numbers – to scammers who allegedly debited millions from their accounts, the Federal Trade Commission charged in a complaint filed today.
According to the FTC’s complaint, data broker LeapLab bought payday loan applications of financially strapped consumers, and then sold that information to marketers whom it knew had no legitimate need for it. At least one of those marketers, Ideal Financial Solutions – a defendant in another FTC case – allegedly used the information to withdraw millions of dollars from consumers’ accounts without their authorization.
“This case shows that the illegitimate use of sensitive financial information causes real harm to consumers,” said Jessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection. “Defendants like those in this case harm consumers twice: first by facilitating the theft of their money and second by undermining consumers’ confidence about providing their personal information to legitimate lenders.”
The defendants collected hundreds of thousands of payday loan applications from payday loan websites known as publishers. Publishers typically offer to help consumers obtain payday loans. To do so, they ask for consumers’ sensitive financial information to evaluate their loan applications and transfer funds to their bank accounts if the loan is approved. These applications, including those bought and sold by LeapLab, contained the consumer’s name, address, phone number, employer, Social Security number, and bank account number, including the bank routing number.
The defendants sold approximately five percent of these loan applications to online lenders, who paid them between $10 and $150 per lead. According to the FTC’s complaint, however, the defendants sold the remaining 95 percent for approximately $0.50 each to third parties who were not online lenders and had no legitimate need for this financial information.
The Commission’s complaint alleges that these non-lender third parties included: marketers that made unsolicited sales offers to consumers via email, text message, or telephone call; data brokers that aggregated and then resold consumer information; and phony internet merchants like Ideal Financial Solutions. According to the FTC’s complaint, the defendants had reason to believe these marketers had no legitimate need for the sensitive information they were selling.
In the FTC’s case against Ideal Financial Solutions, between 2009 and 2013, Ideal Financial allegedly purchased information on at least 2.2 million consumers from data brokers and used it to make millions of dollars in unauthorized debits and charges for purported financial products that the consumers never purchased. LeapLab provided account information for at least 16 percent these victims.
The complaint notes that LeapLab hired a key executive from Ideal Financial as its own Chief Marketing Officer and then knew that Ideal used the information purchased from it to make unauthorized debits. Yet, the complaint alleges, the defendants continued to sell such information to Ideal.
The defendants in the case, Sitesearch Corp., LeapLab LLC; Leads Company LLC; and John Ayers, are alleged to have violated the FTC Act’s prohibition on unfair practices.
The Commission vote authorizing the staff to file the complaint was 5-0. The complaint was filed in the U.S. District Court for the District of Arizona, Phoenix Division.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
FTC Charges Data Broker with Facilitating the Theft of Millions of Dollars from Consumers' Accounts
Company Sold Personal Financial Information to Scammers
A data broker operation sold the sensitive personal information of hundreds of thousands of consumers – including Social Security and bank account numbers – to scammers who allegedly debited millions from their accounts, the Federal Trade Commission charged in a complaint filed today.
According to the FTC’s complaint, data broker LeapLab bought payday loan applications of financially strapped consumers, and then sold that information to marketers whom it knew had no legitimate need for it. At least one of those marketers, Ideal Financial Solutions – a defendant in another FTC case – allegedly used the information to withdraw millions of dollars from consumers’ accounts without their authorization.
“This case shows that the illegitimate use of sensitive financial information causes real harm to consumers,” said Jessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection. “Defendants like those in this case harm consumers twice: first by facilitating the theft of their money and second by undermining consumers’ confidence about providing their personal information to legitimate lenders.”
The defendants collected hundreds of thousands of payday loan applications from payday loan websites known as publishers. Publishers typically offer to help consumers obtain payday loans. To do so, they ask for consumers’ sensitive financial information to evaluate their loan applications and transfer funds to their bank accounts if the loan is approved. These applications, including those bought and sold by LeapLab, contained the consumer’s name, address, phone number, employer, Social Security number, and bank account number, including the bank routing number.
The defendants sold approximately five percent of these loan applications to online lenders, who paid them between $10 and $150 per lead. According to the FTC’s complaint, however, the defendants sold the remaining 95 percent for approximately $0.50 each to third parties who were not online lenders and had no legitimate need for this financial information.
The Commission’s complaint alleges that these non-lender third parties included: marketers that made unsolicited sales offers to consumers via email, text message, or telephone call; data brokers that aggregated and then resold consumer information; and phony internet merchants like Ideal Financial Solutions. According to the FTC’s complaint, the defendants had reason to believe these marketers had no legitimate need for the sensitive information they were selling.
In the FTC’s case against Ideal Financial Solutions, between 2009 and 2013, Ideal Financial allegedly purchased information on at least 2.2 million consumers from data brokers and used it to make millions of dollars in unauthorized debits and charges for purported financial products that the consumers never purchased. LeapLab provided account information for at least 16 percent these victims.
The complaint notes that LeapLab hired a key executive from Ideal Financial as its own Chief Marketing Officer and then knew that Ideal used the information purchased from it to make unauthorized debits. Yet, the complaint alleges, the defendants continued to sell such information to Ideal.
The defendants in the case, Sitesearch Corp., LeapLab LLC; Leads Company LLC; and John Ayers, are alleged to have violated the FTC Act’s prohibition on unfair practices.
The Commission vote authorizing the staff to file the complaint was 5-0. The complaint was filed in the U.S. District Court for the District of Arizona, Phoenix Division.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
U.S. ATTORNEY'S OFFICE ANNOUNCES COLLECTION OF $2.3 BILLION IN FISCAL 2014
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, December 23, 2014
U.S. Attorney's Office Collects More Than $2.3 Billion In Civil And Criminal Actions In Fiscal Year 2014
(PHILADELPHIA) - U.S. Attorney Zane David Memeger announced today that the Eastern District of Pennsylvania collected $2,373,688,153 in criminal and civil actions in Fiscal Year (FY) 2014.
The Department of Justice collected $24.7 billion in civil and criminal actions in FY 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Recouping federal funds that were misspent due to fraud, including substantial health care and mortgage insurance funds, is a critical part of our mission,” said Memeger. “Our nation’s taxpayers deserve our most aggressive efforts to recover their hard-earned tax dollars that have been misappropriated. During fiscal year 2014, we continued to honor this mission with these tremendous resolutions and collections.”
The recoveries in the Eastern District of Pennsylvania include more than $1.6 billion in civil and criminal penalties paid by healthcare giant Johnson & Johnson (J&J) to resolve misbranding and unapproved use allegations. J&J paid a $1.273 billion civil settlement to resolve allegations of off-label marketing for Risperdal and Invega, as well as the alleged payment of kickbacks to physicians involving Risperdal. Janssen Pharmaceuticals, Inc. (Janssen), a subsidiary of J&J, paid $400 million in a criminal fine and forfeiture for promoting Risperdal to health care providers for unapproved uses.
The collections also include: a $56.5 million civil settlement with Shire Pharmaceuticals LLC to resolve False Claims Act allegations; a $150 million civil settlement with Amedisys Inc. and its affiliates to resolve False Claims Act allegations; a $7.3 million civil settlement with pharmaceutical company Astellas Pharma US, Inc., to resolve False Claims Act allegations; and a $172.9 million civil settlement with specialty pharmaceuticals company Endo Health Solutions, Inc. and its subsidiary Endo Pharmaceuticals Inc. (Endo), to resolve allegations of off-label marketing.
Additionally, the U.S. Attorney’s office in the Eastern District of Pennsylvania, working with partner agencies and divisions, collected approximately $15 billion in asset forfeiture actions in FY 2014, which includes a $13 billion settlement with JP Morgan - the largest settlement with a single entity in American history - to resolve federal and state civil claims arising out of the packaging, marketing, sale and issuance of residential mortgage-backed securities (RMBS).
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud and other misconduct and collected fines imposed on individuals and corporations for violations of federal health, safety, civil rights, and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Tuesday, December 23, 2014
U.S. Attorney's Office Collects More Than $2.3 Billion In Civil And Criminal Actions In Fiscal Year 2014
(PHILADELPHIA) - U.S. Attorney Zane David Memeger announced today that the Eastern District of Pennsylvania collected $2,373,688,153 in criminal and civil actions in Fiscal Year (FY) 2014.
The Department of Justice collected $24.7 billion in civil and criminal actions in FY 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Recouping federal funds that were misspent due to fraud, including substantial health care and mortgage insurance funds, is a critical part of our mission,” said Memeger. “Our nation’s taxpayers deserve our most aggressive efforts to recover their hard-earned tax dollars that have been misappropriated. During fiscal year 2014, we continued to honor this mission with these tremendous resolutions and collections.”
The recoveries in the Eastern District of Pennsylvania include more than $1.6 billion in civil and criminal penalties paid by healthcare giant Johnson & Johnson (J&J) to resolve misbranding and unapproved use allegations. J&J paid a $1.273 billion civil settlement to resolve allegations of off-label marketing for Risperdal and Invega, as well as the alleged payment of kickbacks to physicians involving Risperdal. Janssen Pharmaceuticals, Inc. (Janssen), a subsidiary of J&J, paid $400 million in a criminal fine and forfeiture for promoting Risperdal to health care providers for unapproved uses.
The collections also include: a $56.5 million civil settlement with Shire Pharmaceuticals LLC to resolve False Claims Act allegations; a $150 million civil settlement with Amedisys Inc. and its affiliates to resolve False Claims Act allegations; a $7.3 million civil settlement with pharmaceutical company Astellas Pharma US, Inc., to resolve False Claims Act allegations; and a $172.9 million civil settlement with specialty pharmaceuticals company Endo Health Solutions, Inc. and its subsidiary Endo Pharmaceuticals Inc. (Endo), to resolve allegations of off-label marketing.
Additionally, the U.S. Attorney’s office in the Eastern District of Pennsylvania, working with partner agencies and divisions, collected approximately $15 billion in asset forfeiture actions in FY 2014, which includes a $13 billion settlement with JP Morgan - the largest settlement with a single entity in American history - to resolve federal and state civil claims arising out of the packaging, marketing, sale and issuance of residential mortgage-backed securities (RMBS).
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud and other misconduct and collected fines imposed on individuals and corporations for violations of federal health, safety, civil rights, and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
SEC ISSUES ANNUAL STAFF REPORT REGARDING NRSROs
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
12/23/2014 05:15 PM EST
The Securities and Exchange Commission issued its annual staff report on the findings of examinations of credit rating agencies registered as nationally recognized statistical rating organizations (NRSROs) and submitted a separate report on NRSROs to Congress.
“These reports provide the most current and comprehensive picture of the credit rating industry,” said SEC Chair Mary Jo White. “The SEC’s enhanced oversight of NRSROs, informed by risk assessment, regular examinations and policy considerations, provides increasingly robust and effective oversight of the industry, as reflected by overall improvements in compliance, documentation, and board oversight.”
The 2010 Dodd-Frank Act requires the SEC to examine each NRSRO once a year and issue an annual report summarizing the examination findings. In addition to covering eight areas required by the Dodd-Frank Act, SEC examiners used risk assessment tools to identify specific areas of focus such as information technology, cybersecurity, or certain ratings activities. During the 2014 examinations, the staff observed improvements concerning:
Compliance resources, monitoring, and culture
Documentation and resources for criteria and model validation
Document retention
Board of directors or governing committee oversight
The staff made recommendations for improvement in certain areas, including:
Use of affiliates or third-party contractors in the credit rating process
Management of conflicts of interest related to the rating business operations
Adherence to policies and procedures for determining or reviewing credit ratings
“The findings and recommendations in the 2014 examination report demonstrate the impact of rigorous oversight by the SEC and regular examinations by the Office of Credit Ratings,” said Thomas J. Butler, Director of the SEC’s Office of Credit Ratings.
The annual report to Congress, which is required by the Credit Rating Agency Reform Act of 2006, details the state of competition, transparency, and conflicts of interest at NRSROs. The staff report includes a discussion of the new requirements for NRSROs adopted by the Commission in August 2014 to improve the quality of credit ratings and increase credit rating agency accountability through enhanced transparency, governance, and protections against conflicts of interest.
The following SEC staff made significant contributions to the examinations and reports: Diane Audino, Rita Bolger, Patrick Boyle, Matthew Chan, Kristin Costello, Scott Davey, Shawn Davis, Franco Destro, Michael Gerity, Kenneth Godwin, Natalia Kaden, Julia Kiel, Russell Long, Abe Losice, Carlos Maymi, Matt Middleton, David Nicolardi, Sam Nikoomanesh, Harriet Orol, Abraham Putney, Jeremiah Roberts, Mary Ryan, Warren Tong, Evelyn Tuntono, Chris Valtin, Kevin Vasel, and Michele Wilham. The Office of Credit Ratings appreciates the assistance provided during the examinations by Todd Scharf and Ted Shelkey of the SEC’s Office of Information Technology.
12/23/2014 05:15 PM EST
The Securities and Exchange Commission issued its annual staff report on the findings of examinations of credit rating agencies registered as nationally recognized statistical rating organizations (NRSROs) and submitted a separate report on NRSROs to Congress.
“These reports provide the most current and comprehensive picture of the credit rating industry,” said SEC Chair Mary Jo White. “The SEC’s enhanced oversight of NRSROs, informed by risk assessment, regular examinations and policy considerations, provides increasingly robust and effective oversight of the industry, as reflected by overall improvements in compliance, documentation, and board oversight.”
The 2010 Dodd-Frank Act requires the SEC to examine each NRSRO once a year and issue an annual report summarizing the examination findings. In addition to covering eight areas required by the Dodd-Frank Act, SEC examiners used risk assessment tools to identify specific areas of focus such as information technology, cybersecurity, or certain ratings activities. During the 2014 examinations, the staff observed improvements concerning:
Compliance resources, monitoring, and culture
Documentation and resources for criteria and model validation
Document retention
Board of directors or governing committee oversight
The staff made recommendations for improvement in certain areas, including:
Use of affiliates or third-party contractors in the credit rating process
Management of conflicts of interest related to the rating business operations
Adherence to policies and procedures for determining or reviewing credit ratings
“The findings and recommendations in the 2014 examination report demonstrate the impact of rigorous oversight by the SEC and regular examinations by the Office of Credit Ratings,” said Thomas J. Butler, Director of the SEC’s Office of Credit Ratings.
The annual report to Congress, which is required by the Credit Rating Agency Reform Act of 2006, details the state of competition, transparency, and conflicts of interest at NRSROs. The staff report includes a discussion of the new requirements for NRSROs adopted by the Commission in August 2014 to improve the quality of credit ratings and increase credit rating agency accountability through enhanced transparency, governance, and protections against conflicts of interest.
The following SEC staff made significant contributions to the examinations and reports: Diane Audino, Rita Bolger, Patrick Boyle, Matthew Chan, Kristin Costello, Scott Davey, Shawn Davis, Franco Destro, Michael Gerity, Kenneth Godwin, Natalia Kaden, Julia Kiel, Russell Long, Abe Losice, Carlos Maymi, Matt Middleton, David Nicolardi, Sam Nikoomanesh, Harriet Orol, Abraham Putney, Jeremiah Roberts, Mary Ryan, Warren Tong, Evelyn Tuntono, Chris Valtin, Kevin Vasel, and Michele Wilham. The Office of Credit Ratings appreciates the assistance provided during the examinations by Todd Scharf and Ted Shelkey of the SEC’s Office of Information Technology.
NSF MATHENATICS PRIZE WINNER WORKS TO SOLVE PROBLEMS
FROM: NATIONAL SCIENCE FOUNDATION
Unlocking the mysteries of mathematics
Breakthrough Prize winner has advanced the field
Évariste Galois was a 19th Century French mathematician who died at 20 after a duel over a woman. Even by then, however, his work had established him as an important force in mathematics, especially his proof that polynomial equations of any degree greater than four were impossible to solve using radicals. It is a concept whose various ramifications have engrossed serious mathematicians ever since, including Richard Taylor.
Taylor, a professor in the school of mathematics at the Institute for Advanced Study in Princeton, N.J., and a National Science Foundation (NSF)-funded scientist, has spent much of his career focusing on the relationship between Galois Groups and their representations, which measure the algebraic symmetries of equations and their relationship to geometric symmetries, a template first developed by Taylor's institute colleague Robert P. Langlands.
Translating the associations between the two ultimately can result in new ways to solve problems in both areas. "You can write a ‘dictionary' with entries connecting both subjects," Taylor says. "You can take a problem on one side and turn it into a problem on the other side--you can make hard problems simpler by turning them from algebra into geometry, or geometry into algebra."
For example, a problem known as Fermat's Last Theorem, after a 17th Century French judge and mathematician, had stymied mathematicians for more than three centuries until Andrew Wiles, a teacher of Taylor's, proved the theorem by establishing a special case of Langlands' dictionary, turning this algebraic problem into a much easier geometric problem.
It took more than one try, and Taylor helped after Wiles made an error during his first attempt. "After trying alone to fix it for a bit, he asked me to help him, and we finally found a way around the mistake," Taylor says.
Langlands' design has transformed the process of solving these once impossible mathematical problems, albeit sometimes inexplicably.
"What I find so attractive about this is that there is so much mystery here," Taylor says. "Why should we have this tool? Even when we prove it exists, it still seems mysterious, which is rare in mathematics. The proofs are long and complicated without a simple reason why it is true. It is also very beautiful, but hard to convey."
Some applications of Langlands' program have proved useful in developing error correcting codes, which allow the correction of mistakes introduced into data during storage, such as on a DVD, or during transmission via radio or cables.
"When you have a phone conversation or send a photo to someone else's phone, little errors may creep in as that message is transmitted, the result of interference," Taylor says. "If you didn't do anything, it would look or sound funny. So what they do is transmit extra information as a check, so even if errors creep in, you can correct them. There are mathematical ways to do this, some of which have been influenced by the Langlands program."
Taylor's research has been dedicated to proving instances of Langlands dictionary. Its applications include his work on, among other things, the Sato-Tate conjecture, an algebra problem that goes back about 50 years, and is a statement about the statistical distribution of certain sequences of numbers.
"Nobody had made any progress on it, but we proved it as a consequence of Langlands' dictionary," Taylor says. "Using the dictionary, we could turn it into a much easier problem about symmetry."
Taylor has received five NSF grants supporting his research between 1997 and 2012, totaling more than $2.2 million. He also recently won the $3 million Breakthrough Prize in Mathematics, launched by Facebook founder Mark Zuckerberg and Russian entrepreneur Yuri Milner, which recognized Taylor for his major advances in the field, and for contributing to communicating the importance and excitement of mathematics to the general public.
Taylor also has worked on the Taniyama-Shimura-Weil conjecture, which states that elliptic curves over the field of rational numbers are related to modular forms. Wiles initially proved the modularity theorem for semi-stable elliptic curves, which was related to Fermat's Last Theorem; later Taylor and others extended Wiles' techniques in 2001 to prove the full modularity theorem, a special case of more general conjectures resulting from Langlands' work.
"The Taniyama-Shimura Conjecture is a special case of the Langlands program," Taylor says. "Wiles proved some cases of the Taniyama-Shimura Conjecture, and from this one could deduce Fermat's Last Theorem. Later, a group of us extended this to prove the full Shimura-Taniyama Conjecture."
Taylor also is known for his proof--with Michael Harris, an American mathematician now jointly based at the Institute of Mathematics of Jussieu in Paris and Columbia University--of the Local Langlands Conjecture, part of the Langlands program, "where one focuses on one prime number at a time, surely much easier than the full program, but an essential stepping stone on the way to the full Langlands Conjectures," Taylor says.
He and his collaborators also proved the Hasse-Weil Conjecture, another part of the Langlands program, although it actually predates Langlands, he says.
"I do mathematics because of its beauty, with no thought to applications," Taylor says. However, it is quite amazing how often such curiosity-driven research has later been crucial to the development of the technology that is transforming our world."
-- Marlene Cimons, National Science Foundation
Investigators
Richard Taylor
Related Institutions/Organizations
Harvard University
Institute For Advanced Study
Unlocking the mysteries of mathematics
Breakthrough Prize winner has advanced the field
Évariste Galois was a 19th Century French mathematician who died at 20 after a duel over a woman. Even by then, however, his work had established him as an important force in mathematics, especially his proof that polynomial equations of any degree greater than four were impossible to solve using radicals. It is a concept whose various ramifications have engrossed serious mathematicians ever since, including Richard Taylor.
Taylor, a professor in the school of mathematics at the Institute for Advanced Study in Princeton, N.J., and a National Science Foundation (NSF)-funded scientist, has spent much of his career focusing on the relationship between Galois Groups and their representations, which measure the algebraic symmetries of equations and their relationship to geometric symmetries, a template first developed by Taylor's institute colleague Robert P. Langlands.
Translating the associations between the two ultimately can result in new ways to solve problems in both areas. "You can write a ‘dictionary' with entries connecting both subjects," Taylor says. "You can take a problem on one side and turn it into a problem on the other side--you can make hard problems simpler by turning them from algebra into geometry, or geometry into algebra."
For example, a problem known as Fermat's Last Theorem, after a 17th Century French judge and mathematician, had stymied mathematicians for more than three centuries until Andrew Wiles, a teacher of Taylor's, proved the theorem by establishing a special case of Langlands' dictionary, turning this algebraic problem into a much easier geometric problem.
It took more than one try, and Taylor helped after Wiles made an error during his first attempt. "After trying alone to fix it for a bit, he asked me to help him, and we finally found a way around the mistake," Taylor says.
Langlands' design has transformed the process of solving these once impossible mathematical problems, albeit sometimes inexplicably.
"What I find so attractive about this is that there is so much mystery here," Taylor says. "Why should we have this tool? Even when we prove it exists, it still seems mysterious, which is rare in mathematics. The proofs are long and complicated without a simple reason why it is true. It is also very beautiful, but hard to convey."
Some applications of Langlands' program have proved useful in developing error correcting codes, which allow the correction of mistakes introduced into data during storage, such as on a DVD, or during transmission via radio or cables.
"When you have a phone conversation or send a photo to someone else's phone, little errors may creep in as that message is transmitted, the result of interference," Taylor says. "If you didn't do anything, it would look or sound funny. So what they do is transmit extra information as a check, so even if errors creep in, you can correct them. There are mathematical ways to do this, some of which have been influenced by the Langlands program."
Taylor's research has been dedicated to proving instances of Langlands dictionary. Its applications include his work on, among other things, the Sato-Tate conjecture, an algebra problem that goes back about 50 years, and is a statement about the statistical distribution of certain sequences of numbers.
"Nobody had made any progress on it, but we proved it as a consequence of Langlands' dictionary," Taylor says. "Using the dictionary, we could turn it into a much easier problem about symmetry."
Taylor has received five NSF grants supporting his research between 1997 and 2012, totaling more than $2.2 million. He also recently won the $3 million Breakthrough Prize in Mathematics, launched by Facebook founder Mark Zuckerberg and Russian entrepreneur Yuri Milner, which recognized Taylor for his major advances in the field, and for contributing to communicating the importance and excitement of mathematics to the general public.
Taylor also has worked on the Taniyama-Shimura-Weil conjecture, which states that elliptic curves over the field of rational numbers are related to modular forms. Wiles initially proved the modularity theorem for semi-stable elliptic curves, which was related to Fermat's Last Theorem; later Taylor and others extended Wiles' techniques in 2001 to prove the full modularity theorem, a special case of more general conjectures resulting from Langlands' work.
"The Taniyama-Shimura Conjecture is a special case of the Langlands program," Taylor says. "Wiles proved some cases of the Taniyama-Shimura Conjecture, and from this one could deduce Fermat's Last Theorem. Later, a group of us extended this to prove the full Shimura-Taniyama Conjecture."
Taylor also is known for his proof--with Michael Harris, an American mathematician now jointly based at the Institute of Mathematics of Jussieu in Paris and Columbia University--of the Local Langlands Conjecture, part of the Langlands program, "where one focuses on one prime number at a time, surely much easier than the full program, but an essential stepping stone on the way to the full Langlands Conjectures," Taylor says.
He and his collaborators also proved the Hasse-Weil Conjecture, another part of the Langlands program, although it actually predates Langlands, he says.
"I do mathematics because of its beauty, with no thought to applications," Taylor says. However, it is quite amazing how often such curiosity-driven research has later been crucial to the development of the technology that is transforming our world."
-- Marlene Cimons, National Science Foundation
Investigators
Richard Taylor
Related Institutions/Organizations
Harvard University
Institute For Advanced Study
Thursday, December 25, 2014
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