PENTAGON SAYS IRAN IS HELPING SYRIA AND AL-QAIDA HAS PRESENCE

Photo Credit:  U.S. Department of Defense  

FROM:  AMERICAN FORCES PRESS SERVICE

Pentagon: In Syria, Iran Helps Asad, al-Qaida Foments Violence

By Cheryl Pellerin

WASHINGTON, May 31, 2012 - In Syria, where Bashar al-Asad's government continues to massacre its population, Iran is supporting the regime and members of al-Qaida are in the country for their own purposes, Pentagon spokesman Navy Capt. John Kirby told reporters today.

"We remain deeply troubled and concerned by the ongoing violence in Syria and by the horrific acts of the Asad regime against its own people," Kirby told reporters at a Pentagon press briefing.

"And we certainly have seen reports and have reason to believe that Iran continues to assist the Asad regime in committing these acts of atrocities against the Syrian people," he added.

Other nations share that concern, the Pentagon spokesman said, and some are providing lethal assistance to opponents of the Syrian regime.

Kirby said defense officials have seen but cannot confirm reports that the Iranians are using commercial airliners to move arms into Syria.

"The larger issue here is that the Iranian regime, Tehran, continues to support, in tangible and intangible ways, the Asad regime," he added, "and that needs to stop."

At the White House, spokesman Jay Carney said the administration has been focused on the need to bring about a political transition in Syria sooner rather than later.

"The longer that Asad and his thugs are allowed to brutally murder the Syrian people, the more likely it becomes a sectarian civil war; the more likely that it spills over Syrian borders; the more likely that it transforms into a proxy war with different players," Carney said, "including ... Iran, which is already engaging in malignant behavior with regards to the Syrian situation, stepping up that kind of activity and not being alone in doing that."

What's happening in Syria, he added, "only underscores the urgent need to take action to prevent further devolution of the situation there, take action to support the process of political transition, to isolate and pressure Asad into taking himself out of power so that that transition can proceed."

At the Pentagon, Kirby said defense officials believe "al-Qaida has some presence inside Syria and interest in fomenting violence in Syria."

He added, "We do not believe they share the goals of the Syrian opposition or that they are even embraced by the opposition ... The sense that we get is that it is primarily members of [al-Qaida in Iraq] that are migrating into Syria."

Syria drew renewed world attention following a massacre May 25 of more than 100 people north of the city of Homs which international observers largely blamed on forces linked to the government.

U.S. policy on Syria is to work with international partners to put diplomatic and economic pressure on Damascus to help stem the humanitarian crisis.

The Defense Department supports the administration's position, Kirby said, while providing options to the nation's leaders for other potential responses.

"That's what we do and we would be irresponsible if we weren't thinking about options, whether or not they're called for, he said"

The military can be valuable in any number of scenarios, not all of which involve combat, Kirby added.

"The point is we're doing the prudent thing that we're supposed to do, which is to think through options. But we've not been called to present any," the Pentagon spokesman said.

"These are decisions that only the policymakers can make," Kirby said. "And again, we're supporting the commander in chief's intent, which is to keep the pressure on [the Asad regime] diplomatically and economically."

ATTORNEY GENERAL HOLDER SPEAKS TO CONFERENCE OF NATIONAL BLACK CHURCHES

Photo:  Attorney General Holder Holding A Press Conference.  Credit:  U.S. Department Of Justice. 
U.S. DEPARTMENT OF JUSTICE
Attorney General Eric Holder Speaks at the Conference of National Black Churches Annual Consultation Washington, D.C. ~ Wednesday, May 30, 2012
Thank you, Congressman Cleaver.   It is a privilege to join with you – and with Dr. Richardson and Dr. Burton – in opening the 2012 Consultation.   And I want to thank you for your kind words, for your leadership and partnership, and – of course – for your prayers.   Please, keep them coming.   Let me also thank the members and supporters of the Conference of National Black Churches and the Congressional Black Caucus for your work in bringing us all together today – and bringing renewed attention to the growing need to protect the voting rights of every eligible citizen.

It is a pleasure to be part of this discussion – and to be among so many friends, allies, and dedicated leaders.   I am grateful, in particular, for the opportunity to salute the important work that the people in this room are doing each day – all across the country – to enrich our communities and to improve lives.

Since its official establishment in 2009, CNBC’s efforts have reached more than 10 million people.   And, in partnership with the Congressional Black Caucus – a group that, over the last 40 years, has established itself as the “Conscience of Congress” – you have emerged as a powerful force for positive change.   Together, your organizations are not only providing a voice for the most vulnerable among us, you are shining a light on the problems we must solve and the promises that we must fulfill.

In so many different ways – in classrooms and courtrooms, in houses of worship and halls of justice, and in your own homes and neighborhoods – you are working to protect the progress that has marked our nation’s past, and to strengthen its future.   And your efforts honor America’s most noble and enduring cause – of security, opportunity, and justice for all.

Despite all that you’ve done to advance this cause – and the transformative progress that many of us have witnessed within our own lifetimes – as you know, this is no time to become complacent.   Yes, we have walked far on the long road toward freedom – but we have not yet reached the Promised Land.   And, in too many places, it’s painfully clear that our nation’s long struggle to overcome injustice, to eliminate disparities, to bridge long-standing divisions, to eradicate violence, and to uphold the civil rights of all citizens has not yet ended.

That means it is time, once again, to ask Dr. King’s most famous and enduring question: Where do we go from here?   It is time to consider – and to discuss – where we should focus our energies and where we must place our priorities.

Like many of you, I would argue that – of all the freedoms we enjoy today – none is more important, or more sacred, than the right to vote.   And I’m hardly the first to make such an assessment.   In July of 1965, when President Johnson signed the landmark Voting Rights Act into law, he proclaimed that, “the right to vote is the basic right, without which all others are meaningless.”

Today, as Attorney General, I have the privilege – and the solemn duty – of enforcing this law, and the other civil rights reforms that President Johnson, Dr. King, and so many other courageous leaders and activists once championed.   For our nation’s Department of Justice, and for our government and law enforcement partners across the country, this is among our highest priorities.   And it is evident in the historic progress that’s been made by this Administration – especially when it comes to expanding access to legal services; to combating hate crimes, community violence, and human trafficking; and to strengthening law enforcement efforts so that – in our workplaces and military bases; in our housing and lending markets; in our schools and places of worship; in our immigrant communities and our voting booths – the rights of all Americans are protected.

Our efforts honor the generations who have taken extraordinary risks, and willingly confronted hatred, bias, and ignorance – as well as billy clubs and fire hoses, bullets and bombs – to ensure that their children, and all citizens, would have the chance to participate in the work of their government.   And our efforts reflect the fact that the right to vote is not only the cornerstone of our system of government, it is – and always has been – the lifeblood of our democracy.   In fact,no force has proved more powerful – or more integral to the success of the great American experiment – than efforts to expand the franchise.

Despite this history, and despite our nation’s long tradition of extending voting rights – to non-property owners and women, to people of color and Native Americans, and to younger Americans – today, a growing number of our fellow citizens are worried about the same disparities, divisions, and problems that – nearly five decades ago – so many fought to address.  In my travels across this country, I’ve heard a consistent drumbeat of concern from citizens, who – often for the first time in their lives – now have reason to believe that we are failing to live up to one of our nation’s most noble ideals; and that some of the achievements that defined the civil rights movement now hang in the balance.

Congressman John Lewis may have described the reason for these concerns best, in a speech on the House floor last summer, when pointing out that the voting rights he worked throughout his life – and nearly gave his life – to ensure are, “under attack… [by] a deliberate and systematic attempt to prevent millions of elderly voters, young voters, students, [and] minority and low-income voters from exercising their constitutional right to engage in the democratic process.”   Not only was he referring to the all-too-common deceptive practices we’ve been fighting for years.    He was echoing more recent fears and frustrations about some of the state-level voting law changes we’ve seen this legislative season.

Let me assure you: for today’s Department of Justice, our commitment to strengthening – and to fulfilling – our nation’s promise of equal opportunity and equal justice has never been stronger.

Nowhere is this clearer than in current efforts to expand access to, and prevent discrimination in, our election systems.   We are dedicated to aggressively enforcing the Voting Rights Act – and to fulfilling our obligations under Section 2 and Section 5 of this vital law.

Under Section 2, which prohibits racially discriminatory practices that amount to either vote denial or vote dilution, we have opened a record number of new investigations – more than 100 in the last fiscal year.   We’ve also had success – without litigation – in encouraging voluntary improvements and compliance.

At the same time, Section 5 – which requires preclearance of proposed voting changes in parts or all of sixteen states where discrimination was deeply rooted – continues to be a critical tool in the protection of voting rights.   Under that important provision, certain “covered jurisdictions” are prevented from altering their voting practices until it can be determined that any proposed changes would have neither a discriminatory purpose nor effect.   This process, known as “preclearance,” has been a powerful tool in combating discrimination for decades.   And it has consistently enjoyed broad bipartisan support – including in its most recent reauthorization, when President Bush and an overwhelming Congressional majority came together in 2006 to renew the Act’s key provisions – and extend it until 2031.

Yet, in the six years since its reauthorization, Section 5 has increasingly come under attack by those who claim it’s no longer needed.   Between 1965 and 2010 – nearly half a century – only eight challenges to Section 5 were filed in court.   By contrast, over the last two years alone, we’ve seen no fewer than nine lawsuits contesting the constitutionality of that provision.   Four of these currently are in litigation.   Each of these challenges to Section 5 claims that we’ve attained a new era of electoral equality, that America in 2012 has moved beyond the challenges of 1965, and that Section 5 is no longer necessary.

I wish this were the case.   But the reality is that, in jurisdictions across the country, both overt and subtle forms of discrimination remain all too common – and have not yet been relegated to the pages of history.

As we’ve seen over the years, the Voting Rights Act – including Section 5 – consistently has been upheld in court.    In fact, several days ago, the D.C. Circuit rejected one of the latest challenges to Section 5, reaffirming its continued relevance as a cornerstone of civil rights law, and underscoring the fact that it remains critical in combating discrimination – and safeguarding essential voting rights that, for many Americans, now are at risk.

As you know – and have worked to draw attention to – the past two years have brought nearly two dozen new state laws and executive orders, from more than a dozen states, that could make it significantly harder for many eligible voters to cast ballots in 2012.    In response to some of these changes – in areas covered by Section 5 – the Justice Department has initiated careful, thorough, and independent reviews.   We’re now examining a number of redistricting plans in covered jurisdictions, as well as other types of changes to our election systems and processes – including changes to the procedures governing third-party voter registration organizations, to early voting procedures, and to photo identification requirements – to ensure that there is no discriminatory purpose or effect.  If a state passes a new voting law and meets its burden of showing that the law is not discriminatory, we will follow the law and approve the change.    And, as we have demonstrated repeatedly, when a jurisdiction fails to meet its burden of proving that a proposed voting change would not have a racially discriminatory effect – we will object, as we have in 15 separate cases since last September.

For example, in Texas, the Justice Department has argued that proposed redistricting plans for both the State House and the U.S. Congress are impermissible, based upon evidence suggesting that electoral maps were manipulated to give the appearance of minority control while minimizing minority electoral strength.   We argued – as we have successfully in the past – that this is precisely the type of discrimination that Section 5 was intended to block.   This case has been tried and we are now awaiting the court’s decision.

Unfortunately, electoral redistricting is far from the only area of concern in covered jurisdictions.    The recent wave of changes to state-level voter identification laws also has presented a number of problems requiring the Department’s attention.   In December, we objected to South Carolina’s voter ID law, after finding – based on the state’s own data – that the proposed change would place an unfair burden on non-white voters.   And this past March, we objected to a photo ID requirement in Texas because it would have had a disproportionate impact on Hispanic voters.

The Justice Department also is taking important steps to protect the voting rights of our men and women fighting overseas and our veterans returning home – as well as Americans living abroad, citizens with disabilities, college students, and language minorities.   Just a few days ago, we filed a lawsuit and proposed consent decree against the state of California to remedy the state’s failure to send absentee ballots on time to its overseas citizens and military voters for the state’s June 5th primary election.   This is the eighth such lawsuit the Department has filed in the last two years to protect the voting rights of service members and overseas citizens.   We also will continue working to enforce provisions like the “Motor Voter” law – and, to that end, have recently filed two lawsuits to increase access to registration opportunities.   In one of those cases, we reached a settlement with the State of Rhode Island that resulted in more voters being registered in the first full month after our lawsuit than in the entire previous two-year period.

In addition to these and other efforts to ensure access to the ballot box, we’re also working to uphold the integrity of our elections systems.   And, on this front, I want to be clear that no form of electoral fraud ever has been – or ever will be – tolerated by the United States government.

From my early days as a trial attorney in the Justice Department’s Public Integrity Section, I’ve been proud to stand on the front lines of this fight – and I fully understand the importance of investigating and prosecuting fraud cases whenever and wherever they arise.   I also know firsthand what so many studies and assessments have shown – that making voter registration easier is not likely, by itself, to make our elections more susceptible to fraud.   And while responsible parties on all sides of this debate have acknowledged that in-person voting fraud is uncommon – any allegation of its occurrence is, and will continue to be, taken seriously.

As we continue working to expand – and to protect – the voting franchise, we’re fortunate to have strong allies in the Congressional Black Caucus whose members – just a few months ago – introduced legislation which opposes any state election law that would disproportionately impact vulnerable communities.   We’re also privileged to have committed partners in, and beyond, this room who are – in a very real sense – the stewards of our democracy.   That means you have a critical responsibility to help identify and implement the most effective ways to safeguard the “most basic” of all American rights.   You have a thoughtful voice to add to discussions about voting access – what the struggle for freedom has long been about ensuring: the opportunity for citizens to voice their opinions, and – through the casting of their ballots – to signal their priorities and shape their own futures.   Since its earliest days, the American people have worked and fought for such a system.   And, now, with each of us – this fight goes on.   The progress we hold dear is in our hands.   And the democracy we hold sacred is our responsibility to carry forward.

In driving these efforts, I am privileged to count you as partners.   And I am grateful for the leadership, commitment, and courage you’ve shown in keeping faith in the promise of this nation – and in the power of what its people can achieve together.

Thank you.

SAILORS AND MARINES FROM USS MAKIN ISLAND DELIVER FOOD TO THE ELDERLY IN HONG KONG

FROM:  U.S. NAVY
Photo:  USS Makin Island.  Credit:  U.S. Navy.
Makin Island Sailors and Marines Help Deliver Food to the Elderly during Hong Kong Port Visit
By Mass Communication Specialist 1st Class David McKee, USS Makin Island (LHD 8) Public Affairs
HONG KONG (NNS) -- A group of Sailors and Marines from USS Makin Island (LHD 8) and the embarked 11th Marine Expeditionary Unit (MEU) joined local volunteers to help deliver bags of food to residents of the Kwai-Chung Elderly Center in Hong Kong during a community service project May 26.

A group of 35 Sailors and Marines participated in the event as part of the ship's May 25-28 port visit to Hong Kong.

The project also coincided with local observances of Mother's Day, Father's Day and the upcoming Dragon Boat festival in June.

Aviation Boatswain's Mate (Handing) 1st Class Mark Higgenbottom, one of the Sailors volunteered for the project, said that in addition to bringing food and sundry items to the residents he shared his time with men like Cheung Kin Yip.

Through a translator, Higgenbottom said he got to know the 70 year-old man and found out that he enjoys table tennis and the Internet.

"Mr. Yip was hip for an old guy," said Higgenbottom. "The guy had a lot of energy and went out of his way to show us he stayed active playing table tennis and using the Internet to stay in touch with his family and friends."

Yip lives alone in his apartment, which is about the size of a large bedroom in a typical American home and contains a living area, bathroom and kitchen.

Through the translator, he told Higgenbottom that he enjoys a simple life of getting up in the morning and checking the stock market on the Internet and checking his email and Facebook page.

"It's easier to live on my own," said Yip through the translator. "I like my independence."

Lt. Jeff Perry, a chaplain aboard Makin Island who organized the community service project, said he thinks community relations projects like helping the elderly foster good relations in the communities that the Navy and Marine Corps visits.

"Projects like this put a face on the Navy and Marine Corps and helps build a truer and broader image of us and shows another side of the military that isn't often shown by the media," said Perry.

The group of Makin Island Sailors and Marines delivered food to two communities and another group of volunteers spent time at a local dog shelter. More than 2,000 Sailors and Marines were able to experience the Hong Kong culture during the four-day port visit.

Makin Island is the first U.S. Navy ship to deploy using a hybrid-electric propulsion system. By using this unique propulsion system, the Navy expects over the course of the ship's lifecycle, to see fuel savings of more than $250 million, proving the Navy's commitment to energy awareness and conservation.

This initiative is one of many throughout the Navy and Marine Corps that will enable the Department of the Navy to achieve the Secretary of the Navy's energy goals to improve our energy security and efficiency afloat and ashore, increase our energy independence and help lead the nation toward a clean energy economy.

Makin Island is the flagship of the Makin Island Amphibious Ready Group that is currently deployed to the U.S. 7th Fleet area of operations.

The 7th Fleet area of operations includes more than 52 million square miles of the Pacific and Indian oceans, stretching from the international date line to the east coast of Africa, and from the Kuril Islands in the north to the Antarctic in the south.

DEPUTY DEFENSE SECRETARY CARTER DISCUSSED DOD BUDGET PRIORITIES IN 21ST CENTURY

Photo:  Missile Interceptor Test.  Credit:  U.S. Navy.

FROM:  AMERICAN FORCES PRESS SERVICE

Carter: DOD Puts Strategy Before Budget for Future Force

By Cheryl Pellerin

WASHINGTON, May 30, 2012 - The Defense Department has placed strategy before budget in facing present and anticipated threats while building its joint force for the future, Deputy Defense Secretary Ashton B. Carter said here today.

Carter discussed DOD's budget priorities for the 21st century at the American Enterprise Institute's Marilyn Ware Center for Security Studies, as President Barack Obama's fiscal year 2013 National Defense Authorization Act makes its way through Congress.

"While we've been fighting [in Iraq and Afghanistan] the world has not stood still, our friends and enemies have not stood still, and technology has not stood still," the deputy defense secretary said.

"Now we must meet these changes and ... in some places, catch up with them," Carter added. "To do that we must let go of the old and familiar and grab hold of the new to build what [Chairman of the Joint Chiefs of Staff Army Gen. Martin E.] Dempsey calls the Joint Force 2020, an agile and technologically advanced force of tomorrow."

The present time is one of great consequence for U.S. security because two forces are coming together simultaneously, Carter said.

"The first is obviously the Budget Control Act but the deeper, more fundamental force is the force of strategic history," he said.

The 2011 Budget Control Act is a U.S. federal statute that seeks to reduce the national deficit. A "sequestration" mechanism in the law automatically takes more cuts out of federal spending, including another $500 billion from the Defense Department, which would mean a total defense budget reduction of more than $1 trillion over 10 years.

The result of the Budget Control Act and the new defense strategy, Carter said, was a balanced strategic package in three parts.

First was continued DOD discipline in spending taxpayer dollars, Carter said. Second, he added, was to retain taxpayer confidence that DOD was putting its money to good use. Third, Carter said, was what DOD called rebalancing toward the Asia-Pacific region.

"The Pacific region has enjoyed peace and stability for over 60 years, and in that climate, first Japan, then Korea, and even China have had an environment in which they could develop economically and politically without war or conflict, the deputy defense secretary said.

"That's not a birthright," he added. "That is something that was guaranteed [and] reinforced by the pivotal military power of the United States in that region."

The Defense Department now is bolstering defense capabilities in the Asia-Pacific region, Carter said.

Meanwhile, the Air Force is continuing on with the new stealth bomber, the KC-46 tanker and a host of intelligence, surveillance and reconnaissance, or ISR, platforms, he said. Other capabilities going forward, he added, include a payload module for the Virginia-class submarines, conventional prompt strike and a host of upgrades in radars, electronic protection, electronic warfare, new munitions of various kinds and more.

Cyber security is another area where DOD will spend more in the future, Carter said, along with certain aspects of the defense science and technology base, special operations forces, unmanned aerial systems, space initiatives, and countering capabilities for terrorism and weapons of mass destruction, including bioterrorism.

In the time since DOD released its carefully balanced budget proposal, Carter said, Congress has marked up the document, adding and subtracting programs and equipment.

"We made decisions within the constraints of the Budget Control Act. We had to. And when additions are made to that package in one area, we of necessity have to take something out elsewhere," he said.

Altering DOD's proposed budget package "could lead to an unbalanced portfolio, for example, a hollowing of the force," Carter said, noting he wanted "to specifically call out a couple of important decisions in that regard."

Congress, he said, is resisting several changes proposed for cost savings by DOD to the following programs:

-- TRICARE, for which premiums would rise slightly for retirees;

-- Aircraft retirements, for some aging single-purpose aircraft in favor of newer multi-role aircraft;

-- Reductions in intra-theater strategic lift, for which modeling indicates is in excess of current need;

-- Reductions in size for the Army and Marine Corps to accommodate a wider spectrum of future combat capability; and

-- A somewhat larger and decidedly more capable Navy.

"In all our services and in all of our activities in national security, we're embarked on a strategic transition following the wars in Iraq and Afghanistan," Carter said.

"This is just the beginning," he added. "This ship is making a very big turn, and we need to follow through on our plan and keep moving toward the future."

FORMER NATIONAL SCIENCE FOUNDATION PROGRAM DIRECTOR PLEADS GUILTY TO FRAUD

FROM:  U.S. DEPARTMENT OF JUSTICE
Wednesday, May 30, 2012
National Science Foundation Program Director Pleads Guilty in Connection with Scheme to Conceal Received Benefits

WASHINGTON – A former program director at the National Science Foundation (NSF) pleaded guilty today in the Eastern District of Virginia to engaging in a scheme to conceal gifts and fraudulent payments he received, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Neil H. MacBride for the Eastern District of Virginia announced.

Dr. Shih Chi Liu, 73, of Silver Spring, Md., pleaded guilty before U.S. District Judge James C. Cacheris.  Liu was charged in a criminal information filed today.

According to a statement of facts filed with his plea agreement, Liu served in various program director positions in the NSF Engineering Directorate from 1981 until December 2011.  The NSF is an independent federal agency whose mission is to fund research and education in science and engineering disciplines.  Liu was required in his official position to submit a yearly financial disclosure report detailing travel-related reimbursements and gifts totaling more than a particular amount that he received during the reporting period.  In the years 2006, 2007, 2008, 2009 and 2010, Liu filed false reports that failed to report payments and gifts he had received.  In doing so, he concealed that he had arranged for an accredited university to pay false invoices for services that the university did not receive, pocketing the fraudulently obtained money himself.  He also concealed that he had received money for international travel from an accredited university, at times simultaneously requesting and receiving reimbursements from NSF for that same travel.

Liu faces a maximum penalty of five years in prison and a fine of $250,000 when he is sentenced on Aug. 22, 2012.
This case was investigated by the NSF Office of the Inspector General.  Deputy Chief Peter Koski and Trial Attorney Monique Abrishami of the Public Integrity Section in the Justice Department’s Criminal Division and Assistant U.S. Attorney Jasmine Yoon of the Eastern District of Virginia are prosecuting the case.

TWO FLORIDA MEN CHARGED WITH RUNNING $173 MILLION PONZI-LIKE SCHEME IN FORT LAUDERDALE AREA

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
May 31, 2012
On May 22, 2012, The Securities and Exchange Commission charged two individuals who provided the biggest influx of investor funds into one of the largest-ever Ponzi schemes in South Florida. The SEC alleges that George Levin and Frank Preve, who live in the Fort Lauderdale area, raised more than $157 million from 173 investors in less than two years by issuing promissory notes from Levin’s company and interests in a private investment fund they operated. They used investor funds to purchase discounted legal settlements from former Florida attorney Scott Rothstein through his prominent law firm Rothstein Rosenfeldt and Adler PA. However, the settlements Rothstein sold were not real and the supposed plaintiffs and defendants did not exist. Rothstein simply used the funds in classic Ponzi scheme fashion to make payments due other investors and support his lavish lifestyle. Rothstein’s Ponzi scheme collapsed in October 2009, and he is currently serving a 50-year prison sentence.

According to the SEC’s complaint filed in federal court in Miami, Levin and Preve began raising money to purchase Rothstein settlements in 2007 by offering investors short-term promissory notes issued by Levin’s company – Banyon 1030-32 LLC. In 2009, seeking additional funds from investors, they formed a private investment fund called Banyon Income Fund LP that invested exclusively in Rothstein’s settlements. Banyon 1030-32 served as the general partner of the fund, and its profit was generated from the amount by which the settlement discounts obtained from Rothstein exceeded the rate of return promised to investors.

The SEC alleges that the offering materials for the promissory notes and the private fund contained material misrepresentations and omissions. They misrepresented to investors that prior to any settlement purchase, Banyon 1030-32 would obtain certain documentation about the settlements to ensure the safety of the investments. Levin and Preve, however, knew or were reckless in not knowing that Banyon 1030-32 often purchased settlements from Rothstein without obtaining any documentation whatsoever.

Furthermore, Banyon Income Fund’s private placement memorandum misrepresented that the fund would be a continuation of a successful business strategy pursued by Banyon 1030-32 during the prior two-and-a-half years. Levin and Preve failed to disclose that by the time the Banyon Income Fund offering began in May 2009, Rothstein had already ceased making payments on a majority of the prior settlements Levin and his entities had purchased. They also failed to inform investors that Levin’s ability to recover his prior investments from Rothstein was contingent on his ability to raise at least $100 million of additional funding to purchase more settlements from Rothstein.

The SEC’s complaint charges Levin and Preve with violating Section 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The SEC is seeking disgorgement of ill gotten gains, financial penalties, and permanent injunctive relief against Levin and Preve to enjoin them from future violations of the federal securities laws.

The SEC's investigation, which is continuing, has been conducted by senior counsels D. Corey Lawson and Steven J. Meiner and staff accountant Tonya T. Tullis under the supervision of Assistant Regional Director Chad Alan Earnst. Senior trial counsels James M. Carlson and C. Ian Anderson are leading the litigation.

The SEC acknowledges the assistance of the Office of the United States Attorney for the Southern District of Florida, the Federal Bureau of Investigation, and the Internal Revenue Service.

GUIDED-MISSILE DESTROYER USS MCCAMPBELL, FIRES GUN.

FROM:  U.S. NAVY
The Arleigh Burke-class guided-missile destroyer USS McCampbell, fires the Mark 45 five-inch gun during a naval surface fire support exercise. McCampbell is forward deployed to Yokosuka, Japan and is underway in the U.S. 7th Fleet area of operations. U.S. Navy photo by Mass Communication Specialist Seaman Declan Barnes (Released) 120525-N-TG831-417

PENTAGON SAYS U.S. PAKISTAN-RELATIONS IMPROVING

Photo:  Pentagon Under Construction.  Credit:  U.S. Army Corps of Engineers.

FROM:  AMERICAN FORCES PRESS SERVICE

U.S., Pakistan Military Coordination Improves

By Claudette Roulo

WASHINGTON, May 31, 2012 - In a sign of improving coordination between the United States and Pakistan, two U.S. military liaison officers recently returned to Pakistan, Pentagon spokesman Navy Capt. John Kirby told reporters today.

The officers returned to Pakistan at the request of the Pakistani government, Kirby said.

The posting is part of the effort to improve tactical and operational coordination between the International Security Assistance Force and the Pakistani military, Kirby said. The purpose is to "increase and improve communication between the two militaries along that border," he added.

The liaison officers left Pakistan following last November's cross-border incident, Kirby said.

Inadequate coordination was cited as one cause in a DOD review of the incident in which 24 Pakistani soldiers were killed after coalition troops operating in Kunar province, Afghanistan, were fired upon from border positions within Pakistan.

Based in Peshawar, Pakistan, the liaison officers are working with the headquarters staff of the Pakistani army's 11th Corps, Kirby said.

The 11th Corps' area of responsibility, he said, includes the border region that matches up with Regional Command East on the Afghanistan side.

 

MAN AND COMPANY ORDERED TO PAY RESTITUTION FOR COMMODITY POOL PONZI SCHEME FRAUD

FROM:  COMMODITY FUTURES TRADING COMMISSION
May 30, 2012
Federal Court in New Jersey Orders Victor Eugene Cilli and His Company, Progressive Investment Funds LLC, to Pay over $700,000 in Restitution and Penalty in Commodity Pool Ponzi Scheme

Cilli also pled guilty to related fraud and other criminal charges
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) has obtained a federal court consent order requiring defendants Victor Eugene Cilli and his company, Progressive Investment Funds LLC (Progressive), both formerly of Hackensack, N.J., to pay, jointly and severally, restitution of $243,000 and a $474,000 civil monetary penalty in connection with operating a commodity pool Ponzi scheme that defrauded investors of over $500,000 and misappropriated investor funds

The court’s order also finds that the defendants made false statements to the National Futures Association (NFA), failed to distribute required reports to pool participants, and failed to keep required books and records.

The consent order of permanent injunction, entered on May 29, 2012, by Judge William J. Martini, of the U.S. District Court, District of New Jersey (Newark), permanently prohibits Cilli and Progressive from engaging in any commodity-related activity, including trading, and from registering or seeking exemption from registration with the CFTC. The order also permanently prohibits the defendants from further violations of the Commodity Exchange Act and CFTC regulations, as charged.

The order finds that between September 2006 and September 2007, the defendants engaged in a Ponzi scheme and solicited $506,000 from four individuals to trade commodity futures (primarily E-mini S&P 500 futures contracts) in a pooled account. However, the defendants used only approximately $263,000 to trade futures and had net trading losses of approximately $201,168, according to the order. Instead of disclosing the losses, the defendants sent pool participants statements falsely showing trading profits. The defendants also sent two pool participants false IRS Form 1099s, which showed net profits instead of the actual net losses, the order finds. To conceal their scheme, defendants used pool participant funds to make purported profit payments to other participants, as is typical of a Ponzi scheme, the order finds.

Further, the order finds that the defendants failed to provide pool participants with quarterly and annual Net Asset Value reports, failed to retain required pool records, and falsely told the NFA that Progressive never had pool participants.

On October 3, 2011, Cilli pled guilty to criminal securities fraud (15 U.S.C. § 78j(b) and 78ff(a) and 18 U.S.C. § 2) in connection with the fraudulent scheme described above (United States v. Victor Cilli, Crim. No. 1-660 (AET) (D. NJ), and to other, unrelated charges. In the criminal case, Cilli agreed to pay $243,000 in restitution. The consent order in the CFTC’s case gives Cilli credit for any restitution payments made in the criminal action.

The CFTC thanks the U.S. Attorney’s Office for the District of New Jersey and NFA for their assistance.

The CFTC Division of Enforcement staff members responsible for this case are W. Derek Shakabpa, Judith M. Slowly, David Acevedo, Lenel Hickson, Stephen J. Obie, and Vincent McGonagle.

20TH ANNIVERSARY OF THE AUSTRIAN HOLOCAUST MEMORIAL SERVICE

Photo:  Children Rounded Up For Deportation.  Credit:  U.S. National Holocaust Museum
FROM:  U.S. STATE DEPARTMENT
Remarks Hannah Rosenthal
Special Envoy to Monitor and Combat Anti-Semitism Embassy of Austria
Washington, DC
May 23, 2012
It is my pleasure to help mark the twentieth (20th) anniversary of the Austrian Holocaust Memorial Service, the Austrian Service Abroad. I understand that some of you are currently serving at Holocaust memorial institutions around the world. I commend the Government of Austria for implementing this program two decades ago. What a wonderful opportunity to serve your country and, indeed, the world. It is also a chance to come to terms with one of the most sinister and evil chapter of history, the unthinkable deeds of governments and collaborators, and the silence of so many that led to the Holocaust.

In America, when we teach our students about the horrors of the Holocaust and the deadly reign of Adolf Hitler, we tell them, “never again.” Never again will humanity allow such unspeakable horrors to occur. Adolph Hitler and his Nazi party cemented centuries-old anti-Semitism into the everyday consciousness and laws of Germany. Their “Final Solution” was to annihilate global Jewry. Yet it was not only Jews they hated; the Nazis created an entire industry of death, which targeted its killing machinery on Jews, Roma, the disabled, homosexuals, and political dissidents. Few neighbors stood up to defend Nazi targets, let alone save them.

The Holocaust is something very personal to me. My father, a rabbi, was arrested – on Kristalnacht, the unofficial pogrom that many think started the Holocaust – and sent with many of his congregants to prison and then to Buchenwald. He was the lucky one – every other person in his family perished at Auschwitz. As a child of a Holocaust survivor, I have dedicated my life to eradicating anti-Semitism and intolerance with a sense of urgency and passion that only my father could give me. Austria’s program and your collective service during these past twenty (20) years help keep the lessons of the past alive and make history accessible to all citizens.

You have a role in helping the world remember, not only what happened, but why—how hate and intolerance transformed neighbors into victims and perpetrators. Rather than get lost in the hatred and sadness of the Holocaust, we must now learn from it, in order to ensure it never happens again. We must advance the lessons of the Holocaust: namely, that evil must be confronted rather than ignored. We must never again allow ignorance and hatred to flourish. To this end, education and dialogue are mandatory first steps to prevent and overcome ignorance and hate. To that end, building museums and memorials allow us to educate citizens everywhere.

World War II ended 67 years ago; recent by any historical measure. Yet despite our consistent and strong exhortations to remember and learn from the past, with each passing day we grow further removed from it. Since the Holocaust, generations - who never experienced the horrors of Nazi Europe - have been born. Soon, we will not have the opportunity to meet survivors, liberators, rescuers, or witnesses and to hear their stories first-hand. Sadly, they are passing on. Because time is not on our side, we must all feel the urgency to impart the memory and lessons of the Holocaust. Those of you who are working in Holocaust museums are helping to keep those memories fresh.
During the Holocaust, we witnessed how good people could become willing executioners. However, we also witnessed resistance from individuals who did the right thing – those people who chose to follow their own moral compasses in the face of incredible danger. Part of educating others about the past, is learning about the Righteous Gentiles and the rescuers. I learned there are over 80 righteous gentiles from Austria. These people of conscience, who were in the heart of Nazi Europe, took risks to help Jews during the Holocaust and gave repeated and substantial assistance to them despite the most egregious of circumstances. While we are celebrating the 20th anniversary of the Austrian Memorial Holocaust Service, it is also quite fitting that this is also the 100th anniversary of rescuer Raoul Wallenberg, the Swedish diplomat in Hungary who, with the backing of his government, saved thousands of Hungarian Jews. In fact, I was just in Sweden this past month to take part in their year-long commemoration of the life of Raoul Wallenberg. The Austrian righteous gentiles and Raoul Wallenberg personified conscience, along with other righteous diplomats and ordinary citizens. They risked their lives to save the lives of strangers.

The acts of courage performed by the rescuers, and all the righteous gentiles, are an inspiration to us all to stand up to hate, face it squarely, and call it out. We may, one day, find ourselves confronted with the same choice. Sometimes the right choice is not the easy choice. We can learn from these rescuers about what it means to carry out acts that are neither easy nor profitable, but rather are moral. It would have been less mortal risk to turn away. However, people of good conscience could not do that. And I must mention Albania; the only country in the world to save all of its Jews during the Holocaust. Albania, a majority Muslim country, ended up with ten times more Jews at the end of World War II than when it began. It is heartening when governments as well as individuals do the right thing.

Your service is part of the solution, part of the education process. You have the knowledge to educate those around you. I hope that when you eventually return home, you will tell your parents and families, friends and neighbors about what you are learning from this year of service. Sharing your knowledge is needed now as much as ever. For example, a recent Pew Forum report found that, around the world, Jews are increasingly objects of societal discrimination despite official attempts to address anti-Semitism. These attitudes can be found in 75 countries, and is a disproportionately high number considering that Jews make up only .2 percent of the world’s population. What does this mean for us and others of conscience? What else can we do to transform hatred and ignorance into mutual respect and acceptance?

Together, we can teach the values of tolerance by honoring our past and confronting the hatred that still exists in our world today. Where there is hatred born of ignorance, we must teach and inspire. We must expose people to a larger world of ideas as we reach out, especially to youth, so they can see beyond their immediate circumstances. Where there is hatred stirred up by irresponsible leaders, we must call them out. We must answer as strongly as we can – that their messages of hate are totally unacceptable to all people of conscience.

Your service has the potential for a far greater impact than you realize. The time you will have spent in the Holocaust Memorial Service is just the beginning. With that, I would like to thank and congratulate you on the 20th anniversary of the Austrian Holocaust Memorial Service.

GEN. DEMPSEY SEEKS INFO. FROM ASIA-PACIFIC PARTNERS

Photo:  Chairman of The Joint Chiefs of Staff Gen. martin E. Dempsey.  Credit:  U.S. Department of Defense.
FROM:  AMERICAN FORCES PRESS SERVICE
Dempsey Seeks to Learn From Asia-Pacific Partners
By Karen Parrish
ABOARD A MILITARY AIRCRAFT, May 31, 2012 - The challenge for the United States in the Asia-Pacific region is translating strategy into action, the chairman of the Joint Chiefs of Staff said yesterday.

On his way to Singapore for the 11th annual Asia security summit known as the Shangri-La Dialogue, Army Gen. Martin E. Dempsey told American Forces Press Service that the U.S. "pivot to the Pacific" isn't about establishing American dominance in the region.
Rather, he said, the goal is to work with regional partners to sustain and strengthen a cooperative security environment among Asian-Pacific nations.

The chairman noted that in this, his first visit to the dialogue, he wants to hear what other nations' officials have to say on topics such as territorial disputes in the region's seas. China and the Philippines both claim the South China Sea waters around Scarborough Shoal, and China and Japan dispute the area surrounding the Senkaku Islands in the East China Sea, near Okinawa.

Dempsey said the United States does not take sides in territorial disputes and encourages disputing parties to resolve such issues without coercion.

"What I already know is that we've been very clear about the need for cooperation in the maritime domain [involving] freedom of navigation," he said. "I think that's exactly the right position to place ourselves. But beyond that, I want to hear what these 27 nations [at the Shangri-La Dialogue] have to say, both to us and to each other -- because it will clearly be one of the most prominent issues."

From the national strategic level where he works, the chairman said, the first priority in rebalancing defense strategy toward the Asia-Pacific region involves what he calls "intellectual bandwidth."

"We've developed, over the course of 10 years, a core of real experts in the Middle East," Dempsey said. "We need to form that same core of professionals for whom [Asia-Pacific expertise] is a lifelong work."

The second step in the strategic shift to the Asia-Pacific region is to build on that increased bandwidth to create and explore new opportunities to increase regional security, he said.

"We have to make that intellectual shift ... and then listen to the signals that we receive from our partners," he added, noting that standing, multinational forums often are able to deal with security issues before they become crises.

"I think that's the great strength of NATO," Dempsey said.

A security organization similar to NATO involving many Asia-Pacific nations' participation may have value, the general said, but only if other nations want it.

"We would have to see the appetite for that among our partners and not just try to in some way impose it on them," Dempsey said.

INTERNATIONAL CRACKDOWN ON DRUG TRAFFICKERS

FROM:  AMERICAN FORCES PRESS SERVICE
Colombian naval forces arrest alleged drug traffickers May 6, 2012 and net 5,000 pounds of cocaine. U.S. Navy photo.  


Interagency Task Force Mounts Aggressive Counter-drug Effort
By Donna Miles
KEY WEST, Fla. , May 30, 2012 - The interdiction of a drug-trafficking speedboat carrying almost 5,000 pounds of cocaine with a street value of more than $363 million played out like a motion-picture thriller.
The action followed a carefully choreographed script, from the moment U.S. Customs and Border Protection pilots spotted the speedboat El Kike on May 6 from their P-3 Orion aircraft. They passed the mission to USS Nicholas, a guided-missile frigate patrolling the region with an embarked U.S. Coast Guard law enforcement team. Nicholas dispatched a helicopter to track the speedboat, while maneuvering into position to intercept.
El Kike's crew, recognizing their plight, jettisoned half of their cargo, then adjusted course and hit the throttle toward Colombia.

Nicholas followed, while calling on the USS McClusky, an Oliver Hazard Perry-class frigate, and the Colombian navy ship ARC 20 de Julio operating nearby for assistance. McClusky launched a helicopter to maintain surveillance, diverting El Kike it into Colombian territorial waters, where the Colombian navy intercepted it.

"With the help of some friends, we accomplished what we set out to do: disrupt the drug trade," said Navy Cdr. Stephen Fuller, Nicholas' commanding officer. "Interdictions are challenging, but with the help of McClusky, [U.S.] Customs and the Colombian navy, we executed a successful operation."

It was latest in a recent string of operational successes for the Joint Interagency Task Force South and its regional partners since they kicked off an aggressive counterdrug effort earlier this year.

In a small, largely symbolic gesture of pride, the JIATF staff hoisted their "cocaine flag" outside their headquarters here to mark the second of many successful interdictions this month. Fluttering in the tropical breezes, it offered a tangible expression to members of what Coast Guard Rear Adm. Charles D. Michel, the task force commander, calls "the most effective and efficient counter-illicit trafficking, detection, monitoring and law enforcement organization the planet has ever known."

Last year alone, JIATF South facilitated the interdiction of 117 metric tons of cocaine, Michel reported. That's 58 percent of all cocaine seized in the East Pacific and Caribbean transit zones last year. It's almost six times the net of all U.S. law enforcement border apprehensions -- the efforts of federal, state, city and tribal efforts combined, he noted. Collectively, they netted 20 metric tons.

"We are the most efficient cocaine removal organization that I am aware of, by far," Michel said. "The taxpayer gets a huge bang for the buck down here, through the interdiction of cocaine, the protection of our neighbors, the stability of the hemisphere and the protection of our citizens on the street."

Sitting with American Forces Press Service, Michel and his vice director, U.S. Customs and Border Protection Agent John Murphy Jr., said they're convinced these seizures still amount to just 25 percent of the cocaine trade trafficking through the region.

To put a greater squeeze on the traffickers, JIATF South launched Operation Martillo, which translated, means "Operation Hammer," in January. The mission specifically targets illicit trafficking routes in coastal waters along the Central American Isthmus -- the route for more than 90 percent of the cocaine destined for the United States.

"Operation Martillo is designed to take pressure off these Central American countries," Michel said. Particularly in the northern triangle area of Honduras, Guatemala and El Salvador, "thousands of their citizens are being murdered," he said. "Government officials are being corrupted. Institutions are being rotted from the inside out. Portions of their territory are no longer effectively under their control."

"That is instability," the admiral said, "and that is a national security threat, right in our backyard."

Operation Martillo represents "a different way of doing business in employing this entire enterprise to achieve a strategic effect," Michel said. "And that strategic effect is to protect Central America from these [drug] flows currently causing all the murder, death, destruction, corruption."

While all trafficking causes concern, Michel called the lucrative cocaine trade the No. 1 threat. "Cocaine is king down here," he said, with transnational criminal organizations running an $88 billion-a-year global market.

The incredibly high profit margin -- an estimated $84 billion -- funds everything these groups need to support their efforts: fleets of aircraft, go-fast boats, semi-submersible vessels and increasingly, fully submersible vessels, he said. It also allows them to operate with near impunity in many parts of the region as they buy off government officials and intimidate or kill anyone who stands in their way.

"There are tens of thousands of Central Americans being murdered each year because of drug trafficking," Michel said. "It is a shocking statistic to me. And it's also shocking because it doesn't get the attention that it should."

Michel contrasted the huge resources available to drug traffickers with those of regional governments that seek to counter them. "Those guys are just outgunned and outspent by the traffickers," Michel said. "These are organizations of such magnitude that they can actually challenge nation states."

That makes these organizations and their drug trafficking operations a major national security threat, as reflected in President Barack Obama's national strategy released in July, Michel said. "The No. 1 cause of regional instability throughout Central America, which is our closest neighbor, is the cocaine trade," he said. "There is no question about it."

As the stakes get ever-higher, Michel cited a clear realization that no single nation or agency can stand up to this scourge alone. Partner nations share that recognition, and have participated in 83 percent of all illicit trafficking disruptions since Operational Martillo kicked off in January, he noted.

JIATF South has embraced this inclusive approach since it initially stood up 23 years ago as Joint Task Force 4 as a new model of intergovernmental cooperation.

"This was not an overnight success," Michel conceded. Members of different governmental organizations had to learn to overcome their different backgrounds, ways of doing business and their historical practices of competing for resources, authorities and responsibilities.

"The No. 1 ingredient that you need in order to make this work is trust, and that only gets built up with time," he said. "I wish there was an easy way that you could just flash a magic wand and make people trust each other. But coworkers have to learn to work together, to trust that others are going to protect their information, are going to protect their equities and that others are actually going to act as team players."
More than two decades later, Michel praised JIATF South's evolution into what has been described as "the gold standard for interagency and international cooperation."

"In all my travels and experiences working through the government in different forms, this is the best working model of the whole-of-government solution to a problem set I have ever seen that produces consistent results," he said.

The staff includes representatives of all five armed services, including the National Guard and reserves, members of various federal law enforcement entities, the intelligence community and their counterparts from 13 partner nations.

This brings a wealth of experience to the effort, Michel said. "We can match any capability, competency, authority or partnership that is available in the national inventory to deal with this particular problem set," he said. "Plus, by leveraging contributions from the international partners, we can make this all work together in this joint international interagency task force that we have put together."

As JIATF South evolved, Michel said its staff has become "much smarter" about the way it operates. "We achieve results that are magnitudes better than we used to when this first started, with just a fraction of the assets in place," he said. "And that's because of the way we leverage all those international and interagency partnerships and capabilities that we bring to the table. That is the power of the whole-of-government approach."

These capabilities are critical, he said, as traffickers employ increasingly sophisticated methods. Of particular concern is their use of low-profile semi-submersible vessels that are extremely difficult to detect and more recently, submersibles that operate completely underwater.

JIATF South and its partners have confiscated about 30 semi-submersibles so far, with one now positioned on the lawn outside its headquarters building here and another at the U.S. Southern Command headquarters in Miami.

Almost all were discovered operating in the Eastern Pacific. "But this summer, for the first time, we saw them on the Caribbean side, which is a disturbing trend," Michel said. "That means they have exported that technology to another building area and other people are operating this type of craft."

Michel reported signs that more evasive submersible vessels have come into favor. The only ones JIATF South has confiscated to date have been discovered on land, but Michel said he's sure they're operating underwater.

Looking ahead, Michel called traffickers' deep pockets and adaptability one of JIATF South's biggest challenges. "Their conveyances have gotten better, their security procedures are better, they dig themselves more and more into governments, they corrupt more and more and they have become more and more violent in their tactics," he said. "Our adversary is incredibly nimble."

But almost as daunting, Michel said, are budget realities that give these adversaries a leg up.

"My No. 2 challenge is the resource challenge, particularly for ships and aircraft," he said. Michel cited cases when JIATF South had "high-confidence that drugs are moving," but no law-enforcement assets available to interdict them.

"I can be as smart as I possibly can," he said, "but if there is no ship or an aircraft to come up with an end game, the traffickers get a free pass."

Michel said he'll continue to press for more assets dedicated to the JIATF South mission. "If we had more assets, we would be able to make an even bigger dent into this effort," he said. "You give me assets, and I'll show you results."

Meanwhile, JIATF South will continue to make the most of every capability made available to it.

"We have limited assets, but because of what we have built down here, we can use those limited assets very smartly and achieve results in a magnitude of what we used to get in the past, for just a fraction of the investment," he said.
(Navy Lt. Matt Phillips from USS Nicholas contributed to this story.)

EXPORT-IMPORT BANK REAUTHORIZATION IS SIGNED INTO LAW

Photo:  President Obama During A Weekly Address.  Credit:  White House.
FROM:  EXPORT-IMPORT BANK
Wednesday, May 30, 2012
President Obama Signs Export-Import Bank Reauthorization Act into Law
Washington, D.C. – Surrounded by more than 150 small and medium-sized business owners and other invited guests from across the country, President Obama today signed the Export-Import Bank Reauthorization Act of 2012 into law. Ex-Im Bank Chairman Fred P. Hochberg joined the President at the White House for the signing ceremony.

“Today is a great day for U.S. businesses – both large and small,” said Chairman Hochberg. “By signing this bipartisan bill into law, President Obama has once again demonstrated his strong commitment to America’s business owners, workers, and exporters. The President has been a strong champion of Ex-Im Bank, and thanks to his leadership more U.S. companies are exporting to more countries. With our reauthorization now achieved, the Bank will continue to do what it does best – help our nation’s workers compete globally and support U.S. jobs at no cost to American taxpayers.”

The Export-Import Bank Reauthorization Act of 2012 extends the Bank's authority through 2014 and ultimately increases its portfolio cap to $140 billion. This provides much-needed certainty and predictability to U.S. exporters and their workers.

About Ex-Im Bank:
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers $1.9 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.

Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 -- an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales -- also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $41 billion in U.S. export sales and approximately 290,000 American jobs in communities across the country.

TWO INDIVIDUALS ACCUSED OF COMMISSION RIP-OFF IN $163 MILLION DOMINICAN RESORT INVESTMENT SCHEME

Photo:  Dominican Republic.  Credit:  Wikimedia.
FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
May 31, 2012
The Securities and Exchange Commission charged James B. Catledge and Derek F.C. Elliott, and certain of their related entities, with making material misrepresentations to investors in connection with the unregistered sale of interests in two resorts in the Dominican Republic.

The SEC alleges that Catledge, a Nevada resident, and Elliott, a Canadian citizen and resident of the Toronto area, raised more than $163 million from approximately 1,200 investors between the fall of 2004 and 2009. The securities offered, called “Residence” and “Passport” investments, represented timeshare and ownership interests, respectively, in the Cofresi and Juan Dolio resorts in the Dominican Republic

The complaint alleges that Catledge and Elliott promised investors a secure return of 8% to 12% annually on the Residence investment and 5% on the Passport investment. Investors were assured that their principal was safe, and that they would share in the projected appreciation in the value of the resorts. According to the SEC’s complaint, investor funds were not used to construct the properties, as had been represented, but instead were largely used for other purposes, including the payment of exorbitant undisclosed commissions and promised returns to earlier investors. The SEC alleges that, of the nearly $164 million raised from investors, approximately $59 million (36%) was used to pay commissions to Catledge, Elliott and several of their related entities, among others.

The SEC’s complaint seeks disgorgement of ill-gotten gains, financial penalties, and permanent injunctive relief against Catledge, Elliott, Sun Village Juan Dolio, Inc., EMI Sun Village, Inc. and EMI Resorts (S.V.G.), Inc. to enjoin them from future violations of the federal securities laws. As to Catledge and Elliott only, it also seeks an injunction against acting as an unregistered broker-dealer. The complaint also names D.R.C.I. Trust, which was beneficially owned by Catledge, as a relief defendant in this matter.
The SEC’s investigation was conducted by staff attorney Alison J. Okinaka and senior staff accountant Norman J. Korb in the Commission’s Salt Lake Regional Office. Senior trial counsel Thomas M. Melton is leading the litigation.

The SEC acknowledges the assistance of the Ontario Securities Commission, the U.S. Attorney’s Office for the Northern District of California and the Federal Bureau of Investigation.

PRESIDENT AND FIRST LADY HAVE VISIT FROM WOMEN SUBMARINERS

FROM:  AMERICAN FORCES PRESS SERVICE
President Barack Obama and First Lady Michelle Obama greet the first contingent of women sailors to be assigned to the U.S. Navy's operational submarine force in the Blue Room of the White House, May 28, 2012. Also attending were Navy Adm. Mark Ferguson, left, Navy Secretary Ray Mabus and Defense Secretary Leon E. Panetta, right. White House photo by Pete Souza  
Obamas Host Women Submariners, First Lady Sponsors Sub
By Lisa Daniel
American Forces Press Service
WASHINGTON, May 29, 2012 - President Barack Obama and First Lady Michelle Obama yesterday welcomed the Navy's first contingent of women submariners to the White House as part of a busy Memorial Day schedule.

The 24 young women visited the White House, along with Defense Secretary Leon E. Panetta, Navy Secretary Ray Mabus, and Navy Adm. Mark Ferguson, vice chief of naval operations, as part of a "Joining Forces" initiative. The first lady and Dr. Jill Biden, wife of Vice President Joe Biden, started the Joining Forces campaign last year to rally Americans to honor, recognize and serve military families.

As part of the meeting, the first lady accepted Mabus' invitation to serve as the sponsor of the future USS Illinois (SSN 786), a Virginia-class submarine -- the Navy's newest class of attack submarine -- being built in Groton, Connecticut and Newport News, Virginia. Illinois is expected to join the fleet in late 2015.

In sponsoring USS Illinois, Obama joins a tradition of first lady sponsorships of Navy submarines. First Lady Laura Bush is USS Texas' (SSN 775) sponsor and christened it in 2004; First Lady Hillary Rodham Clinton is USS Columbia's (SSN 771) sponsor and christened it in 1994.

"As sponsor, the first lady will establish a special link to Illinois, her sailors, and their families that extends throughout the life of the submarine," a White House press release says.

"It's an honor and a privilege to serve as sponsor of the USS Illinois," the first lady said yesterday. "I'm always inspired by the service and sacrifice of the men and women of the Navy, as well as the families who support them. This submarine is a tribute to the strength, courage, and determination that our Navy families exhibit every day."
"Naval tradition holds that a sponsor's spirit and presence guide the ship and her crew throughout the life of the ship," Mabus said. "Illinois and her crew are blessed to have such a wonderful sponsor and I am grateful Mrs. Obama accepted my invitation to serve as sponsor for this submarine."

The first lady also serves as the sponsor for the recently commissioned Coast Guard Cutter Stratton, based in Alameda, Calif. The ship is named after Captain Dorothy Stratton, the director of the Coast Guard Women's Reserve during World War II where she oversaw 10,000 enlisted women and 1,000 commissioned officers.
In 2009, Mabus announced that for the first time in U.S. Navy history, women would be assigned to the operational submarine force.

The 24 women who met with the president and first lady were accepted into the Navy's nuclear submarine program after completing intensive training. They are serving on ballistic and guided missile submarines throughout the Navy.

CAPTURING A DRAGON IN SPACE

FROM:  NASA
Capturing the Dragon
On May 25, 2012, with darkness, Earth's horizon and thin line of atmosphere forming a backdrop, the SpaceX Dragon commercial cargo craft is grappled by the Canadarm2 robotic arm at the International Space Station. Expedition 31 Flight Engineers Don Pettit and Andre Kuipers grappled Dragon at 9:56 a.m. EDT and used the robotic arm to berth Dragon to the Earth-facing side of the station’s Harmony node at 12:02 p.m. May 25, 2012. Image Credit:  NASA.

SpaceX Dragon Approaches
This image of SpaceX's Dragon spacecraft as it approached the space station was taken NASA astronaut Don Pettit. The SpaceX Falcon 9 and its Dragon spacecraft launched on Tuesday, May 22, at 3:44 a.m. EDT. This mission is a demonstration flight by Space Exploration Technologies, or SpaceX, as part of its contract with NASA to have private companies launch cargo safely to the International Space Station. Image Credit: NASA

Capturing SpaceX's Dragon
With clouds and land forming a backdrop, the SpaceX Dragon commercial cargo craft is grappled by the Canadarm2 robotic arm at the International Space Station. Expedition 31 Flight Engineers Don Pettit and Andre Kuipers grappled Dragon at 9:56 a.m. EDT and used the robotic arm to berth Dragon to the Earth-facing side of the station’s Harmony node at 12:02 p.m. May 25, 2012. Image Credit: ESA/NASA

EPA-VA WORK TOGETHER TO CONNECT VETERANS TO WATER JOBS

Photo:  Imperial Dam.  Credit:  U.S. Bureau of Reclamation
FROM:  U.S. ENVIRONMENTAL PROTECTION AGENCY
EPA and Department of Veterans Affairs to Connect Veterans with Jobs in Water Sectors
WASHINGTON – The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Veterans Affairs (VA) Vocational Rehabilitation and Employment Program announced today a memorandum of understanding to connect veterans with disabilities to career opportunities in the water and wastewater sectors -- such as at wastewater plants and drinking water facilities -- as part of EPA’s Water Sector Workforce Initiative. This effort will be beneficial to both the environment and economy as clean water and job placement for veterans are top priorities of the Obama Administration.

The agreement allows EPA and VA to connect qualified veteran employees with staffing needs at water and wastewater utilities. EPA and the VA will work with water utilities, states and local VA counselors to promote water sector careers and resources for finding water jobs for veterans as well as educational programs to help veterans transition into careers in water industries.

“This agreement comes at the perfect time to address the predicted workforce shortages in the water and wastewater industries and the need for transitioning veterans into civilian jobs,” said Nancy Stoner, acting assistant administrator for EPA’s Office of Water. “EPA believes that well-trained and experienced water sector professionals are vital to ensuring sustainable, properly operated systems.”

“VA has cultivated relationships with both public and private industry to ensure disabled veterans have opportunities to find and maintain meaningful employment,” said Under Secretary for Benefits Allison A. Hickey. “We are thrilled to forge this relationship with EPA to assist them with hiring veterans through our Vocational Rehabilitation and Employment Program.”

More than one-third of all current water operators are eligible to retire within seven years and, according to the U.S. Department of Labor, employment for water and wastewater operators is expected to grow by 20 percent between 2008 and 2018, faster than the national average for all other occupations. EPA sees the need to invest now in creating a pipeline of future water sector professionals to fill these essential water sector careers.

VA’s Vocational Rehabilitation and Employment Program assists more than 100,000 disabled veterans annually prepare for, find, and maintain meaningful careers. Veterans are an important target group for water and wastewater utility jobs because many veterans already possess training and technical skills that are directly transferable to careers in the water sector. There is a wide spectrum of water sector careers that veterans could be qualified for, including engineering, laboratory and water science, operations and maintenance, management and administration, communications, and public education. The Vocational Rehabilitation and Employment Program further supports veterans for the water workforce by providing necessary accommodations and additional training as needed.

U.S. STATE DEPARTMENT ON COMBATING INTERNATIONAL CORRUPTION

Photo:  Justice And Humanity.  Credit:  Wikimedia.
U.S. DEPARTMENT OF STATE
Combating Corruption and Bribery in APEC: Promoting Open Governance and Transparency Vital to Regional Economic Growth and Foreign Direct Investment
Remarks David M. Luna
Director for Anticrime Programs , Bureau of International Narcotics and Law Enforcement Affairs ABAC-ACT Public-Private Partnership and Dialogue: Anti-Corruption and Illicit Trade
Kazan, Russia
May 28, 2012
Good morning.
As a co-chair of this Dialogue, I would like to thank ACT Chair Timur Eyvazov and the APEC Business Advisory Council (ABAC) for their leadership in APEC 2012 and our continued dialogue on combating corruption and illicit trade across the Asia Pacific region. Working together via effective public-private partnerships, we can help meet the governance and security challenges that threaten the prosperity of our economies, and the health and safety of our people.

The strong partnership between ABAC and the Anti-Corruption and Transparency (ACT) Experts’ Working Group promises to ensure progress against corruption and foreign bribery in 2012. We also applaud the Russian Federation for organizing the APEC-OECD workshop on combating bribery, held yesterday in Kazan. With the commitment of our APEC leaders, we have made transparency and anti-corruption efforts a cornerstone of the overall APEC agenda and a linchpin for improving societies and expanding markets across our economies. We also take note of the commitment by President Vladimir Putin during his inaugural address earlier this month to make anti-corruption a top priority in Russia, recognizing its role in attracting foreign direct investment (FDI) and promoting economic growth.

We can appreciate why business leaders have made fighting corruption and bribery a priority in their investment portfolios overseas. The impact of corruption on GDP growth and FDI in both advanced and developing economies is well-documented. Corruption stifles entrepreneurship and international investment as businesses are less inclined to invest in markets where corruption is rampant and kleptocrats abuse their positions for self-enrichment. Capital and FDI are timid, and savvy investors flee business climates where the playing field is uneven and the rule of law is unreliable.

As the ACT-ABAC illicit trade dialogue has established in recent years, corruption also opens the floodgates for cross-border illicit trade flows, which raise the costs of doing business and divert legitimate revenues into the coffers of transnational illicit networks. According to a 2011 World Economic Forum Report on Global Risks, “illicit trade is estimated to represent between 7 and 10 percent of the global economy – in some countries, illicit trade is the major source of income.”

The criminal entrepreneurs and illicit networks that smuggle tens of billions of dollars of illegal goods across borders each year – drugs, arms, humans, natural resources and endangered wildlife, counterfeit medicines, and pirated software, as well as embezzled public funds – not only sow insecurity and instability across the APEC region, but also cost APEC economies jobs and vital tax revenue, endangering the welfare and safety of our families and communities.

A supply chain is only as strong as its weakest link, and the proliferation of corrupt actors and criminal entrepreneurs forges new points of entry for all sorts of illicit trade, corroding the integrity of legitimate supply chains and harming the economic interests of our businesses and markets. The proliferation of counterfeit goods, for example, tarnishes brand reputations and reduces returns on innovation and investment.

Illicit trade creates unfair, unregulated competition for legitimate businesses across APEC economies. We must continue to dismantle illicit trade networks at every opportunity and prosecute criminal entrepreneurs and their facilitators who arbitrage weak and corrupt law enforcement systems and exploit internal border controls for illicit gain.

The ACT 5-year medium-term plan also rightly places a priority on promoting green and sustainable growth and encourages the ACT to work across APEC subfora to work through the governance challenges associated with protecting our environment and natural resources.

Environmental crimes such as the illegal timber trade and wildlife trafficking impose significant negative externalities on local ecosystems; distort markets; reduce revenues from eco-tourism and taxes; destroy the livelihoods of communities that rely on our precious biodiversity; and discourage companies from paying for licenses and making other responsible investments that promote transparency and accountability. A recent World Bank study found that illegal logging in areas such as those found in Southeast Asia reaps profits of USD 10-15 billion annually, while the probability that illegal loggers will be punished is less than 0.08 percent.

Beyond the threat posed to economic development, the illicit profits generated by “marriages of convenience” among different criminal actors and networks engaged in every type of illicit activity—from drug trafficking to counterfeit production to illegal logging and associated trade—could finance criminal and terror campaigns that endanger not only our markets but our collective security.

APEC, in concert and cooperation with other partners, is taking these threats seriously and is committed to combating corruption and dismantling crime-terror pipelines across the Asia Pacific region, especially where illicit activities and risks within the illegal economy threaten to harm licit commerce.

We cannot realize these objectives without the active and continued engagement of the private sector at every link in the global supply chain. Again, we welcome the opportunity that this ABAC-ACT dialogue provides to bring together senior government and business leaders to tackle corruption and illicit trade.

Collective action—on the part of governments, the private sector, and civil society—is essential to secure greater accountability, competitiveness, and supply chain integrity. As reflected in our ACT work plan, we must employ the full range of tools in our toolbox—ranging from tools to prevent corruption and enhance market integrity to tools to more effectively investigate and prosecute corruption and combat money laundering and illicit trade.

In closing, we must capitalize on our momentum here this week and in the coming months, including at the July 10-11 Phuket APEC Workshop on Combating Corruption and Illicit Trade: Tracking Cross-Border Financial Flows, International Asset Recovery, and Anti-Money Laundering Efforts. Other efforts in Chile, China, Malaysia, Peru and the Philippines will also strengthen our APEC regional efforts. We hope that our ABAC-ACT anticorruption and illicit trade dialogue here this week in Kazan is also recognized by leaders in both public and private sectors at the 2012 APEC Summit in Vladivostok this September.

We also hope that APEC, ACT, and ABAC can work with other partners such as the OECD and World Economic Forum (WEF) in advancing a global dialogue to combat corruption and illicit trade.

Russia’s active leadership in APEC and its participation in the OECD Working Group on Bribery will ensure that combating corruption, foreign bribery, and illicit trade will remain at the top of the list of priorities for APEC economies in 2012 and beyond. We also appreciate Indonesia’s active leadership and applaud their efforts to build on the ACT’s work in 2013.

The United States looks forward to further advancing APEC’s leadership in the coming years to work with other international partners to combat illicit trade; attack the financial underpinnings of transnational criminal organizations; strip criminal entrepreneurs and corrupt officials of their illicit wealth; and sever their access to the global financial system.

Finally, we also hope that the ACT continues to advance the work of last year's APEC High-Level Policy Dialogue on Open Governance and Economic Growth on ways that economies can work to enhance public trust by combating corruption and by committing to transparent, fair, and accountable governance, especially in a manner that empowers communities to monitor and voice their perspectives on government policies and the use of resources.

Through collective action, we will succeed in exposing criminal activities hidden behind legitimate fronts; protecting the integrity of our markets and financial system; promoting open governance that nurtures economic growth; and safeguarding the security of our citizens.
Thank you.