TREASURY DESIGNATED TWO EXCHANGE HOUSES WITH STORING OR MOVING MONEY FOR TALIBAN

Map Credit:  Wikimedia/CIA
FROM:  U.S. DEPARTMENT OF TREASURY 
Action Targets Terrorist Financing Linked to Hawalas
WASHINGTON – The U.S. Department of the Treasury today designated two exchange houses, the Haji Khairullah Haji Sattar Money Exchange (HKHS) and the Roshan Money Exchange (RMX), which principally operate in Afghanistan and Pakistan, pursuant to the U.S. government’s terrorism sanctions authority, Executive Order (E.O.) 13224, for storing or moving money for the Taliban. Treasury is also designating the co-owners of HKHS, Haji Abdul Sattar Barakzai and Haji Khairullah Barakzai, pursuant to E.O. 13224 for donating money and providing financial services to the Taliban.  Both HKHS and RMX operate as hawalas and have been used by the Taliban to facilitate money transfers in support of the Taliban’s narcotics trade and terrorist operations.  Today the United Nations also added Haji Abdul Sattar Barakzai, Haji Khairullah Barakzai, HKHS and RMX to its 1988 List of individuals, groups, undertakings and entities associated with the Taliban in constituting a threat to the peace, stability and security of Afghanistan.

“Today’s action, which coincides with action by the UN, is aimed at disabling two key financial hubs supporting the Taliban.  Whether financial support to the Taliban moves through banks or less formal mechanisms, like the hawalas we are designating in this action, we will continue to work alongside our partners to expose and disrupt this illicit financial activity,” said Under Secretary for Terrorism and Financial Intelligence David S. Cohen.

As a result of today’s action, all property in the United States or in the possession or control of U.S. persons in which HKHS, RMX, Haji Abdul Sattar Barakzai (Sattar), or Haji Khairullah Barakzai (Khairullah) have an interest is blocked, and U.S. persons are prohibited from engaging in transactions with them.

Haji Abdul Sattar Barakzai
Haji Abdul Sattar Barakzai is being designated today for owning, or controlling HKHS, and for providing financial, material, or technological support for, or financial, or other services to, or in support of, the Taliban.  Sattar is a co-owner and operator of HKHS.  Sattar and Khairullah have co-owned and jointly operated hawalas known as HKHS throughout Afghanistan, Pakistan, and Dubai and managed an HKHS branch in the Afghanistan-Pakistan border region.  As of late 2009, Sattar and Khairullah had an equal partnership in HKHS.  Sattar founded HKHS and customers chose to use HKHS in part because of Sattar’s and Khairullah’s well-known names.

Sattar has donated thousands of dollars to the Taliban to support Taliban activities in Afghanistan and has distributed funds to the Taliban using his hawala.  As of 2010, Sattar provided financial assistance to the Taliban.  As of late 2009, Sattar provided tens of thousands of dollars to aid the Taliban’s fight against Coalition Forces in Marjah, Nad’Ali District, Helmand Province, Afghanistan, and helped to transport a Taliban member to Marjah.  As of 2008, Sattar and Khairullah collected money from businessmen and distributed the funds to the Taliban using their hawala.

Haji Khairullah Barakzai
Haji Khairullah Barakzai is being designated today for owning or controlling HKHS, and for providing financial, material, or technological support for, or financial, or other services to, or in support of, the Taliban.  Khairullah is a co-owner and operator of HKHS.  As of late 2009, Khairullah and Sattar had an equal partnership in HKHS.  They jointly operated hawalas known as HKHS throughout Afghanistan, Pakistan, and Dubai and managed an HKHS branch in the Afghanistan-Pakistan border region.  As of early 2010, Khairullah was the head of the HKHS branch in Kabul.

As of 2010, Khairullah was a hawaladar, or hawala operator, for Taliban senior leadership and provided financial assistance to the Taliban.  Khairullah, along with his business partner Sattar, provided thousands of dollars to the Taliban to support Taliban activities in Afghanistan.  As of 2008, Khairullah and Sattar collected money from businessmen and distributed the funds to the Taliban using their hawala.

Haji Khairullah Haji Sattar Money Exchange (HKHS)
Haji Khairullah Haji Sattar Money Exchange (HKHS) is being designated today for providing financial, material, or technological support for, or financial or other services to, or in support of, the Taliban.  HKHS is co-owned by Haji Abdul Sattar Barakzai and Haji Khairullah Barakzai.  Sattar and Khairullah have jointly operated money exchanges throughout Afghanistan, Pakistan, Iran, and the United Arab Emirates (UAE).  Taliban leaders have used HKHS to disseminate money to Taliban shadow governors and commanders and to receive hawala transfers for the Taliban.

As of 2011, HKHS was a preferred method for Taliban leadership to transfer money to Taliban commanders in Afghanistan.  In late 2011, the HKHS branch in Lashkar Gah, Helmand Province, Afghanistan was used to send money to the Taliban shadow governor for Helmand Province.  In mid-2011, a Taliban commander used an HKHS branch in the Afghanistan-Pakistan border region to fund fighters and operations in Afghanistan. After the Taliban deposited a significant amount of cash monthly with this HKHS branch, Taliban commanders could access the funds from any HKHS branch.  Taliban personnel used HKHS in 2010 to transfer money to hawalas in Afghanistan, where operational commanders could access the funds.  As of late 2009, the manager of the HKHS branch in Lashkar Gah oversaw the movement of Taliban funds through HKHS.

Roshan Money Exchange
Roshan Money Exchange (RMX) is being designated today for providing financial, material, or technological support for, or financial, or other services to, or in support of, the Taliban.  RMX stores and transfers funds in support of Taliban military operations and the Taliban’s role in the Afghan narcotics trade.  As of 2011, RMX was one of the primary hawalas used by Taliban officials in Helmand Province.
In 2011, a senior Taliban member withdrew hundreds of thousands of dollars from an RMX branch in the Afghanistan-Pakistan border region to distribute to Taliban shadow provincial governors.  To fund the Taliban’s spring offensive in 2011, the Taliban shadow governor of Helmand Province sent hundreds of thousands of dollars to RMX.  Also in 2011, a Taliban member received tens of thousands of dollars from RMX to support military operations.  An RMX branch in the Afghanistan-Pakistan border region also held tens of thousands of dollars to be collected by a Taliban commander.  In 2010, on behalf of the Taliban shadow governor of Helmand Province, a Taliban member used RMX to send thousands of dollars to the Afghanistan-Pakistan border region.

The RMX branch in Lashkar Gah, Helmand Province, has been used by the Taliban to transfer funds for operations to Helmand Province.  In 2011, a Taliban sub-commander transferred tens of thousands of dollars to a Taliban commander through the RMX branch in Lashkar Gah.  The Taliban also sent funds to the RMX branch in Lashkar Gah for distribution to Taliban commanders in 2010.  Also in 2010, a Taliban member used RMX to send tens of thousands of dollars to Helmand Province and Herat Province, Afghanistan, on behalf of the Taliban shadow governor of Helmand Province.
In 2009, a senior Taliban representative collected hundreds of thousands of dollars from an RMX branch in the Afghanistan-Pakistan border region to finance Taliban military operations in Afghanistan.  In 2008, a Taliban leader used RMX to transfer tens of thousands of dollars to Afghanistan.

The Taliban also uses RMX to facilitate its role in the Afghan narcotics trade.  As of 2011, Taliban officials, including the shadow governor of Helmand Province, transferred hundreds of thousands of dollars from an RMX branch in the Afghanistan-Pakistan border region to hawalas in Afghanistan for the purchase of narcotics on behalf of Taliban officials.  Also in 2011, a Taliban official directed Taliban commanders in Helmand Province to transfer opium proceeds through RMX.  One Taliban district chief transferred thousands of dollars from Marjah, Helmand Province, Afghanistan to an RMX branch in the Afghanistan-Pakistan border region.

NAVAL RESEARCH LABORATORY DEVELOPING "SCIFI-LIKE" LIGHT SCANNER

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


I SEE THE LIGHT SCANNER
Written on JUNE 29, 2012 AT 7:26 AM by JTOZER

The concept of new technology is something that always grabs my attention, but no more so than when real research suggests that my dramatic daydreams of science fiction technology might actuallybecome a reality.

So when I heard that the Naval Research Laboratory (NRL) was developing a real life scanning device, my first immediate thought was STAR TREK SCANNER!
And then I took a deep breath, reeled it in, and read more.  I mean, come on, that kind of technology is centuries away…right?

As it turns out, NRL’s scanning device isn’t that far removed from Star Trek’s fictitious future world or Doctor Who’s technoverse gadgetry.  Although, instead of being an impressively multipurpose-yet-unfortunately-fictitious sonic screwdriver, this real life device uses light to scan objects from far away.

The Naval Research Laboratory (NRL) has developed a Photothermal Infrared Imaging Spectroscopy (PT-IRIS) technology for stand-off detection of explosives, illicit drugs, chemical warfare agents and biochemical warfare agents. That’s right; technology that can scan for dangerous objects from a distance.  PT-IRIS has been demonstrated for standoff or proximity detection of explosives.

That, my friends, could be a huge help to our troops.
Being able to “scan” for dangerous items from a safe distance – especially when it comes to explosive materials – would be an unbelievable asset to the warfighter.  Service members would have the benefit of knowing what they’re up against long before they put themselves in the blast range.
And it’s all about seeing the light.  In this case literally.

This approach employs quantum cascade lasers (QCL) to illuminate a sample surface with one or more wavelengths which are selectively absorbed by analytes of interest. With eye-safe QCL power levels, this results in modest selective heating (1-2 oC) of particulate explosives within a few milliseconds, which can be readily monitored at video frame rates of commercial IR cameras.

Basically, the PT-IRIS absorbs the information and relays it back.  The idea of no longer wondering what’s on that suspicious van on the side of the road could literally mean life or death for service members.

Utilizing compact QCL light sources and an IR focal plane array to image the illuminated area, a portable, handheld system design can be realized. Don’t leave home without your explosive-detection device!  No, seriously, you don’t want to leave something like that just lying around.

As an eye safe system, PT-IRIS is ideal for probing surfaces of vehicles, places, people, packages, and boarding passes for explosives and other hazardous chemicals of interest.  This technology could be used everywhere, from police stations to airports, to suspicious parents who think their kids aren’t just “high on life” (okay, maybe not that one…).

That’s all well and good, but really I’m most interested in the idea that our men and women in uniform stand the chance of not being blown up as much. Science fiction hopes and dreams aside, if anything can make our service members safer and more effective, then I say hop to it.

This technology could give a whole new meaning to the phrase “Stand off, we got this”

DOD News Briefing with Secretary Panetta and Gen. Dempsey from the Pentagon

DOD News Briefing with Secretary Panetta and Gen. Dempsey from the Pentagon

SECRETARY OF DEFENSE PANETTA'S REMARKS ON PARTNERSHIPS

FROM:  AMERICAN FORCES PRESS SERVICE
Defense Secretary Leon E. Panetta delivers remarks as part of the Acheson lecture series at the United States Institute of Peace in Washington, D.C., June 28, 2012. DOD photo by Navy Petty Officer 1st Class Chad J. McNeeley  

Panetta: Partnerships Bolster National Security
By Amaani Lyle
WASHINGTON, June 29, 2012 - Collaboration, as much as military might, should play a key role in national security, Defense Secretary Leon E. Panetta said here last night.
In remarks as part of the United States Institute of Peace's Acheson lecture series, Panetta outlined a blueprint for building 21st-century partnerships and improving security cooperation across several areas.

"We must be bold enough to adopt a more collaborative approach to security, both within the United States government and among allies, partners, and multilateral organizations," he said, adding that the United States must place even greater strategic emphasis on building the security capabilities of others.

Panetta underscored the need to maintain comprehensive and integrated capabilities in key regions to confront critical security challenges.

"Unlike past defense drawdowns when the threats the country was facing appeared to diminish, we still confront many challenges," the secretary said.

Destabilizing behavior of nations such as Iran and North Korea, the rise of new powers across Asia and the ongoing need to deter aggression in the Middle East and North Africa, Panetta said, have made partnership a critical component of peaceful and cooperative international order.

"Our new strategy prioritizes the Asia-Pacific region and the Middle East – the areas with the most significant security challenges," he said. "We will retain ... our military presence, ... but we are also going to help more nations share the responsibilities and costs of providing security by investing in alliances and partnerships."

These partnerships will include engagement in exercises, training and innovative rotational deployments, the secretary added.

Panetta acknowledged that the United States must face these challenges while grappling with a deficit and debt problem that has led Congress to seek early half a trillion dollars in defense savings over the next decade. This, he added, requires reshaped priorities that will include a leaner, agile and quickly deployable force on the cutting edge of technology while continuing to develop key capabilities.

"We will ... continue to invest in the capabilities of the future such as cyber, unmanned systems, space, special operations forces, and the ability to quickly mobilize and maintain our industrial base," he said.

Panetta said his strategies built on many enduring philosophies put forth by Dean Acheson, for whom the lecture series is named. As secretary of state from 1949 to 1953, Acheson was a leading proponent for bolstering America's military might and was a principal architect of America's foreign policy.

"Acheson strongly believed that America should not seek to shoulder the burden and costs for global security alone," the secretary said. "Instead, he understood that a key part of a strong defense was to build the security capacity of allies and partners."

Panetta praised Acheson's forward-thinking in policy from Western Europe and NATO to South Korea, from the Truman Doctrine to the Nixon Doctrine, and the statesman's involvement with key allies and regional partners to build a sound U.S. national security strategy after World War II.

The Affordable Care Act Is Moving Forward

The Affordable Care Act Is Moving Forward

ESA Portal - Portugal - Marés de Titã apontam para um oceano escondido

ESA Portal - Portugal - Marés de Titã apontam para um oceano escondido

U.S. AND CANADA ISSUE BEYOND THE BORDER STATEMENT ON PRIVACY PRINCIPLES

FROM:  U.S. DEPARTMENT OF JUSTICE
Thursday, June 28, 2012
U.S. and Canada Announce the Release of the Beyond the Border: Statement of Privacy Principles

WASHINGTON—The United States and Canada today announced they are delivering on key commitments under the U.S.-Canada Beyond the Border Action Plan by releasing a joint Statement of Privacy Principles.  These principles reflect the commitment of the United States and Canada to protecting privacy, and underscore the importance of information sharing to the security of both nations.

“These privacy principles reflect the shared commitment of the United States and Canada to implement our Beyond the Border Action Plan,” said Attorney General Eric Holder.  “Timely and efficient information sharing between the United States and Canada is critical to the national security of both nations.  These principles reflect our two nations’ continued shared commitment to protecting our collective security without sacrificing the fundamental rights and civil liberties that both our countries value.”

“The release of these principles is an important milestone in the implementation of the Beyond the Border Action Plan,” said Secretary of Homeland Security Janet Napolitano.  “They represent both the United States’ and Canada’s commitment to sharing information, while simultaneously protecting the fundamental privacy principles upon which both our nations were built .”

The Statement of Privacy Principles concerning the provision, receipt and use of personal information exchanged between the U.S. and Canada will inform and guide all information sharing arrangements and initiatives under Beyond the Border Action Plan.  Implementing the privacy principles will promote the flow of accurate, relevant and necessary information to address shared threats to national security.

Developed collaboratively by privacy officials from the Department of Homeland Security, the Department of Justice, Public Safety Canada and Justice Canada, the privacy principles are based on commonly understood privacy protections and fair information practices; and are consistent with the laws of each country .

The United States and Canada will collaborate regularly, through the Beyond the Border Executive Steering Committee and other avenues, on the application of the Statement of Privacy Principles.

On Feb. 4, 2011, President Obama and Prime Minister Harper announced the U.S.-Canada joint declaration, Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness.  It articulates a shared vision where both our countries work together to address threats at the earliest point possible, while facilitating the legitimate movement of people, goods and services into our countries and across our shared border.

The Beyond the Border Action Plan consists of 32 separate initiatives.  It calls for enhancements to programs that help trusted businesses and travelers move efficiently across the border; introduces new measures to facilitate movement and trade across the border while reducing the administrative burden for business; and invests in improvements to our shared border infrastructure and technology.  By expediting lawful trade and commerce into and across our shared border, the United States and Canada seek to enhance our economic competitiveness, create jobs and support economic growth.

SEC. OF EDUCATION ARNE DUNCAL ON 40 YEARS OF PELL GRANTS

FROM:  U.S. DEPARTMENT OF EDUCATION
Celebrating Success: 40 Years of Pell Grants
Chances are you know someone who wouldn’t have gone to college without the help of a Pell Grant. Since 1972, more than 60 million Americans have received financial assistance to earn their degree.

As President Obama said in a message commemorating the 40th anniversary of the enactment of this program:

Forty years ago, our Nation codified a commitment to bringing higher education within reach for every American by creating the Basic Educational Opportunity Grant—later renamed the Federal Pell Grant after Senator Claiborne Pell, to honor his efforts in creating the program.  On this anniversary, we reflect on four decades of progress toward fulfilling that fundamental promise and rededicate ourselves to making college affordable for all.

Federal Pell Grants have helped millions of Americans achieve their fullest potential by not only opening the doors to college, but also providing students the financial support necessary to complete their studies and prosper in today’s economy.  That is why my Administration has prioritized Pell Grants as a source of funding they can count on each and every year.  We have provided resources to support a 50 percent increase in Pell Grant recipients, giving college access to millions of additional students across our country; aggressively raised the maximum Pell Grant award to keep pace with rising costs; and strengthened the Pell Grant Program by cutting banks out of Federal student lending and delivering financial aid directly to students.  By continuing to provide grants that extend educational opportunity to students, we make critical investments both in their personal success and in America’s success in the 21st century.

As we mark the 40th Anniversary of the Federal Pell Grant Program, we also celebrate the individuals and organizations who have worked to widen the circle of opportunity for countless Americans through higher education.  Today and tomorrow, let us recommit to empowering the next generation with the tools and resources they need to achieve their dreams.  I am confident that, through programs like Pell Grants, our Nation will reach our goal of once again leading the world in college completion by the year 2020.

Senator Claiborne Pell, the chief sponsor of the program, liked to say, ‘Any student with the talent, desire, and drive, should be able to pursue higher education.’ Because of his commitment and vision, millions of students from poor and working class backgrounds received the economic lifeline they need to earn a college degree. The Pell Grant program has literally transformed millions of lives.

In today’s global economy that’s more important than ever. High school graduation is no longer a path leading to a good paying job. College, or other postsecondary training, has never been more important to finding meaningful and substantial employment.

More students than ever are relying on Pell grants, and if we are to reach our goal of out-innovating, out-educating and out-building the rest of the world, we need to continue our investment in Pell.
Arne Duncan is the US Secretary of Education

NATIONAL GUARD HELP FLORIDA RESIDENTS AFTER FLOODING

FROM:  AMERICAN FORCES PRESS SERVICE
Air Force Maj. Gen. Emmett R. Titshaw Jr., Florida's adjutant general, watches as workers assess the stability of a sinkhole outside the Suwannee County Courthouse in Florida, June 28, 2012. The Florida National Guard is providing assistance to residents in several state counties affected by flooding caused by Tropical Storm Debby. Florida National Guard photo by Army Sgt. 1st Class Blair Heusdens  

Face of Defense: Guard Members Aid Flood-stricken Floridians
By Army Sgt. 1st Class Blair Heusdens
Florida National Guard
LIVE OAK, Fla., June 29, 2012 - The Florida National Guard is supporting relief efforts in several counties affected by widespread flooding after Tropical Storm Debby dumped large amounts of rain during its slow journey across the state.

Florida Gov. Rick Scott, Adjutant General Air Force Maj. Gen. Emmett R. Titshaw Jr. and several other senior state officials journeyed to Wakulla, Suwannee and Pasco counties to survey the flood damage and to talk to residents.

"We just left the shelter here that has the citizens of Live Oak who lost their homes, who essentially lost everything," Titshaw said. "Talking to some of the people, it was very gratifying to hear when they told me they were rescued by the Florida National Guard. It's the reason we do what we do."

The Florida National Guard participated in several rescues of residents from the flood waters in Columbia and Suwannee counties.

"The National Guard pulled up in a truck and I was like, 'Thank God,'" said Michaela Solomon, a resident of Live Oak who, along with her children, was rescued from her home by soldiers from the Florida National Guard. "It was such a relief to know we were going to somewhere safe. It was just a blessing that the National Guard came to where we were."

As of June 29, more than 70 Florida National Guard members have been called to duty in support of relief efforts, officials said. Due to rising flood waters, Guard members are providing high-water tactical vehicles to assist with rescues, evacuations and damage assessments in Suwannee and Columbia counties, officials said.

In addition to the high-water vehicles, officials said, the Florida National Guard is also assisting with communications in Suwannee County, providing an emergency response vehicle to provide internet and phone capabilities to the county's Emergency Operations Center.

For soldiers from the 868th Engineer Company, Guard officials said, the flooding hit close to home, affecting many local soldiers in the tight-knit Live Oak-based unit. Officials said approximately half of the unit resides in the area and several of the full-time unit support staff members were affected by the storm.

The Florida National Guard is continuing to provide support as requested by the State Emergency Response Team, officials said, noting that Florida's citizen-soldiers and airmen are trained and equipped for a wide range of life support, security and public safety missions, and can mobilize approximately 9,000 personnel if needed to protect lives and property during disasters.

HOUSTON WORKSHOP MARKS KEY STEP IN PLANNING FUTURE MARS MISSIONS

Photo:  The Famous Face On Mars.  Credit:  NASA.

FROM:  NASA
WASHINGTON -- A recent workshop conducted for NASA by the Lunar and 
Planetary Institute (LPI) in Houston, marked a key step in the 
agency's effort to forge a new Mars strategy in the coming decades. A 
report that summarizes the wide range of cutting-edge science, 
technology and mission concepts discussed is available online. 

Held in Houston June 12-14 and attended by scientists and engineers 
worldwide, the meeting was held to seek ideas, concepts and 
capabilities to address critical challenge areas in exploring the Red 
Planet. Discussions provided information for reformulating NASA's 
Mars Exploration Program (MEP) to be responsive to high-priority 
science goals and the challenge of sending humans to Mars orbit in 
the 2030s. 

Participants identified a number of possible approaches to missions 
that can be flown to Mars in the coming decade that would make 
progress toward returning Martian samples -- a top priority of the 
Planetary Science Decadal Survey -- and make significant advances in 
scientific understanding of the planet, developing key technologies 
and advancing knowledge necessary for human exploration on and around 
Mars. 

NASA's Mars Program Planning Group (MPPG), tasked with developing 
options for a reformulated MEP, will consider the workshop inputs in 
addition to budgetary, programmatic, scientific and technical 
constraints. 

"Scientists and engineers came together to present their most creative 
ideas for exploring Mars," said John Grunsfeld, an astronaut, 
astrophysicist and associate administrator for NASA's Science Mission 
Directorate at NASA Headquarters in Washington. "Great ideas come 
from challenging the best and brightest and igniting their passion 
and determination to succeed." 

The MPPG reports to Grunsfeld, who chairs the agency-wide Mars 
reformulation effort along with William Gerstenmaier, NASA's 
associate administrator for Human Exploration and Operations Mission 
Directorate, Chief Scientist Waleed Abdalati and Chief Technologist 
Mason Peck. The official draft MPPG report is expected to be 
delivered to NASA for review at the end of the summer. 

Concepts put forth tapped into significant benefits that could be 
gained from technology investments by NASA's Science Mission 
Directorate, Human Exploration and Operations Mission Directorate, 
and Office of the Chief Technologist. The participants also stressed 
the importance of establishing international collaboration early in 
the planning process and sustaining it throughout future missions. 

"Future Mars exploration missions will require new concepts and 
technologies," said Michael Gazarik, director of NASA's Space 
Technology Program. "There were many innovative and transformational 
concepts presented at the workshop. With continued investments in 
cutting-edge technology, these will lead to increased capability, 
reduced mission risk and lower mission costs." 

Workshop attendance included almost 200 scientists, engineers and 
graduate students from academia, NASA centers, federal laboratories, 
industry, and international partner organizations. More than 1,600 
people participated online as the workshop proceedings were streamed 
live on the Internet. 

"The LPI workshop provided a broad set of ideas for Mars exploration, 
including synergies between science, human exploration and technology 
development," Gerstenmaier said. "The number of workshop participants 
demonstrates the broad interest in Mars exploration." 

The workshop provided a forum for broad community input on near-term 
mission concepts. Ideas for longer-term activities will be used to 
inform program architecture planning beyond the early 2020s. Workshop 
results represent individual perspectives from members of the 
scientific and technical community. 

"The scientific and technical community has given us quite a range of 
ideas to consider in reformulating the Mars Exploration Program," 
said Doug McCuistion, director of NASA's Mars Exploration Program at 
the agency's headquarters. "Many concepts presented are highly 
relevant to the challenges the MPPG must address." 

NASA will land its most advanced rover, Curiosity, on the surface of 
Mars in August. This mobile science laboratory will assess whether 
the past or present environment on Mars could support life. In 2013, 
NASA will launch the Mars Atmosphere and Volatile Evolution orbiter, 
the first mission devoted to understanding the Martian upper 
atmosphere. 

PRESIDENT OBAMA DECLARES MAJOR DISASTER FOR COLORADO

FROM:  U.S. FEDERAL EMERGENCY MANAGEMENT AGENCY
Release Date: June 29, 2012
President Declares Major Disaster for Colorado
WASHINGTON, D.C. --  The U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) today announced that federal disaster assistance has been made available to Colorado to supplement state and local recovery efforts in the areas affected by the High Park and Waldo Canyon Fires beginning on June 9, 2012, and continuing.

Federal funding is available for Crisis Counseling and Disaster Unemployment Assistance for affected individuals in El Paso and Larimer counties impacted by the High Park and Waldo Canyon Fires.

Federal funding also is available to state, and eligible local governments and certain private nonprofit organizations on a cost-sharing basis for emergency protective measures, including direct federal assistance, for El Paso and Larimer counties impacted by the High Park and Waldo Canyon Fires.

Michael F. Byrne has been named as the Federal Coordinating Officer for federal recovery operations in the affected area.  Byrne said that damage surveys are continuing in other areas, and more counties and additional forms of assistance may be designated after the assessments are fully completed.

INNOVATIVE ENTREPRENEUR ALLEGEDLY CREATED PONZI-LIKE MORTGAGE INVESTMENT BUSINESS

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., June 28, 2012 — The Securities and Exchange Commission today announced that it has obtained an emergency court order to halt an alleged Ponzi-like scheme operated by Small Business Capital Corp. and its principal Mark Feathers, who raised $42 million by selling securities issued by Investors Prime Fund LLC and SBC Portfolio Fund LLC - two mortgage investment funds they controlled.

The SEC alleges that more than 400 investors were attracted to the funds by promises that profits from mortgage investments would yield annual returns of 7.5 percent or more. In reality, Feathers operated a Ponzi-like scheme by paying returns to investors that came partly from fund profits and partly from other investors.

“Feathers raised millions from investors by promising high returns,” said John McCoy, Associate Regional Director of the SEC’s Los Angeles Office. “The returns turned out to be too good to be true and were funded in part with new investors’ money.”

The SEC alleges that from 2009 to early 2012, Feathers improperly transferred more than $6 million from the funds to Small Business Capital to pay its expenses, including substantial payments to Feathers. According to the SEC, the defendants had the funds account for the transfers in a way that disguised the depletion of fund assets, and did not tell investors that Small Business Capital’s ability to repay was uncertain and that it was only able to make the interest payments owed to the funds by borrowing more from them.
In addition, the SEC alleges that investors were not told that in February and March 2012, the defendants caused one fund to sell mortgages to the other fund at an inflated price, thus generating a “profit” for the selling fund so it could pay Small Business Capital management fees of more than $575,000. The SEC also charged Feathers and Small Business Capital for Small Business Capital’s effecting transactions in the funds’ securities without being registered as a broker-dealer with the SEC.

The Honorable Edward J. Davila for the U.S. District Court for the Northern District of California granted the SEC’s request for a temporary restraining order and asset freeze against Feathers, Small Business Capital, and the funds, and appointed Thomas A. Seaman as a temporary receiver over Small Business Capital and the funds. Judge Davila has scheduled a court hearing for July 10, 2012, on the SEC's motion for a preliminary injunction.

Susan Hannan and Roger Boudreau conducted the investigation and John Bulgozdy will lead the litigation. They work in the SEC's Los Angeles Regional Office.

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT WEEK ENDING JUNE 23, 2012

FROM:  U.S. DEPARTMENT OF LABOR
SEASONALLY ADJUSTED DATA
In the week ending June 23, the advance figure for seasonally adjusted initial claims was 386,000, a decrease of 6,000 from the previous week's revised figure of 392,000. The 4-week moving average was 386,750, a decrease of 750 from the previous week's revised average of 387,500.

The advance seasonally adjusted insured unemployment rate was 2.6 percent for the week ending June 16, unchanged from the prior week's unrevised rate.
The advance number for seasonally adjusted insured unemployment during the week ending June 16 was 3,296,000, a decrease of 15,000 from the preceding week's revised level of 3,311,000. The 4-week moving average was 3,306,000, an increase of 9,250 from the preceding week's revised average of 3,296,750.

UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 368,418 in the week ending June 23, an increase of 3,870 from the previous week. There were 406,633 initial claims in the comparable week in 2011.

The advance unadjusted insured unemployment rate was 2.4 percent during the week ending June 16, unchanged from the prior week's unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,107,684, an increase of 5,712 from the preceding week. A year earlier, the rate was 2.8 percent and the volume was 3,511,416.

The total number of people claiming benefits in all programs for the week ending June 9 was 5,890,091, an increase of 71,724 from the previous week.

Extended benefits were available in the District of Columbia, Idaho, Nevada, New Jersey, New York, Rhode Island, and West Virginia during the week ending June 9.

Initial claims for UI benefits by former Federal civilian employees totaled 1,345 in the week ending June 16, a decrease of 187 from the prior week. There were 2,464 initial claims by newly discharged veterans, a decrease of 335 from the preceding week.

There were 16,095 former Federal civilian employees claiming UI benefits for the week ending June 9, a decrease of 303 from the previous week. Newly discharged veterans claiming benefits totaled 38,266, an increase of 131 from the prior week.

States reported 2,645,517 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending June 9, an increase of 111,768 from the prior week. There were 3,300,706 claimants in the comparable week in 2011. EUC weekly claims include first, second, third, and fourth tier activity.

The highest insured unemployment rates in the week ending June 9 were in Alaska (4.2), Puerto Rico (3.8), Pennsylvania (3.6), California (3.4), New Jersey (3.3), Connecticut (3.2), Illinois (3.1), Oregon (3.1), Nevada (2.9), Rhode Island (2.9), and the Virgin Islands (2.9).

The largest increases in initial claims for the week ending June 16 were in Pennsylvania (+4,656), New Jersey (+3,907), Maryland ( +2,624), Florida (+2,528), and Puerto Rico (+1,533), while the largest decreases were in California (-8,016), New York (-3,018), Georgia (-2,160), Illinois (-1,996), and Missouri (-1,339).

"BEYOND THE HORIZONS 2012" BRINGS HEALTHCARE TO REMOTE VILLAGE

FROM:  AMERICAN FORCES PRESS SERVICE
Army Capt. Gloria Graham, a 352nd Combat Support Hospital, teaches a Guatemalan girl how to properly brush her teeth during a five-day medical readiness training exercise in Pocola, Guatemala, as part of Beyond the Horizon 2012, June 27, 2010. DOD photo by Donna Miles

Beyond the Horizons' Clinic Fosters Health, Goodwill
By Donna Miles
POCOLA, Guatemala, June 28, 2012 - Thousands of local residents in this remote mountain village are getting what for many is one of their first experiences seeing a doctor, nurse or dentist during a five-day medical readiness training exercise being conducted here during Beyond the Horizons 2012.

U.S. service members, working hand in hand with Guatemalan doctors and health and agricultural officials and several Canadian and Colombian medical officers, are sponsoring the clinic as part of U.S. Southern Command's largest annual humanitarian civic assistance mission. This week's exercise is the third in Guatemala since Beyond the Horizons kicked off in April.

The crowds began assembling yesterday hours before the clinic moved into its third day, forming a line that extended miles beyond the tiny school that had been temporarily converted into a medical clinic. Young and old, all clamored to receive one of the 700 coveted tickets that served as the price of admission to preventive medical classes and sessions with military medical professionals specializing in internal medicine, women's health, pediatrics, dentistry or optometry.

"We try to increase it each day, to give as much chance for as many people to get seen as possible," said Army Capt. Sherry Kwon, an Army reservist from the 352nd Combat Support Hospital serving as officer in charge of the clinic. "When you have people willing to come and wait hours and hours for a bag of vitamins, it's so humbling that you want to do everything you can to help as many as possible."

The first stop for all patients was a preventive medicine class, where Army Capt. Gloria Graham, a 352nd CSH nurse, reviewed along with a Colombian military doctor the basics about washing hands, boiling water to sanitize it, keeping food, utensils and toilet facilities covered to keep insects away, and practicing oral hygiene.

These lessons are critical in a region where periodontal disease and intestinal parasites are the leading killers, explained Army Sgt. 1st Class John Williams, the 35th Engineer Brigade's operations noncommissioned officer for the clinic.

Graham periodically strolled to the back of the room to chat in her native Spanish with children seated around a table with sheets torn from a coloring book and crayons in hand. Holding up a poster of a smiling girl, she gave each a chance to demonstrate how to use the toothbrushes she had given them, drawing shy giggles as she gestured the techniques herself.

Across the courtyard, Army Col. Theresa Mercados-Sconzo, a nurse administrator and 352nd CSH battalion commander, and Army Maj. (Dr.) Mike Crownover, an emergency room physician, consulted with a steady flow of patients suffering from vitamin deficiencies, abdominal issues, worms and other ailments.

Meanwhile, dozens of people waited outside the busiest clinic, where a team of dentists from the 133rd Medical Company in Colorado and dental technicians from the 185th Dental Company in California performed extractions and minor dental surgeries.

Studying the mouth of an elderly woman, Army Maj. (Dr.) Ricky Harrell, a professor of orthodontics at the University of Colorado, prepared to extract the tooth that had caused the woman so much pain for so long.
In an adjoining room, Army Maj. (Dr.) Jennifer Fiatreau, an active-duty optometrist from Tripler Army Medical Center in Hawaii, evaluated eye tests. In the adjoining room, Army Capt. Brian Kuruc from the 256th CSH kept the pharmacy humming to keep up with the demand for medications.

As they treated one patient after another, the service members said they were overwhelmed by the need for medical care and the appreciation patients extended for care they received.

"What we are seeing here is like nothing we see at home," said Army Maj. Wayne Musgrove, a registered nurse. "Many of these people have had no or minimal medical care, so they really appreciate what we provide them. You can see how happy they are that we are here."

"They are simply ecstatic to be getting this care," echoed Mercados-Sconzo. "They couldn't be more thankful."

While providing a vital need, medical readiness training exercises serve as a learning experience for everyone involved, she said.

"They're getting valuable training, similar to what they would get during a deployment," she explained, as the exercises involve preparing for the mission and setting up operations in austere conditions. "But it's also a learning experience across cultures. That's one of the biggest takeaways: developing understanding and respect for other cultures."

For Army Spc. Riyaz Jahn, a 352nd CSH medic, knowing the impact he and his fellow service members are able to make on people's lives makes the mission one of the most satisfying he's ever experienced.

"This is absolutely awesome. I love this," he said. "It's helping out the locals who need help and can't afford it, and you have the gratification of knowing what this means to the people. You can see it in the kids' smiles."

"These missions are very important, and all of us are enthusiastic about coming because we feel like we are making a difference," agreed Graham. "There's no question that people appreciate what we are doing."

Harrell, who joined the military at age 52 and has since deployed to Iraq and Afghanistan, said being able to provide a desperately needed service gives him a new perspective on life. "Being a part of this, I know that I've helped a few hundred people who wouldn't otherwise have gotten help," he said.

Kuruc, who deployed for similar missions in El Salvador in 2004 and Peru in 2007, said he shot up his hand to volunteer to participate in this one. "It's very humbling to know we are here on a mission that is providing so much for so many people," he said. "It may be a small band-aid to a big problem, but it's very rewarding, and that's why I came back."

As they take pride in helping others, participants in the medical readiness training exercise said they recognize that they also are conveying an important message about the United States and the U.S. military.

Entertaining the local children as their parents awaited their medical care, Army Master Sgt. Gary Adamek of the Missouri National Guard's force protection element blew up latex gloves into balloons and drew funny faces on them. He also staged a contest, giving the children plastic trash bags and challenging each to bring back the biggest load of trash strewn across the nearby hillsides to win the loose change Adamek and his fellow soldiers had thrown into a kitty.

"We realize that in everything we do here, we are ambassadors for the United States," he said. "That's everything we do -- whether it's helping get rid of trash, or something as simple as blowing up a balloon."

"I feel good knowing I am representing the United States," said Army Spc. Scott Doney, a member of the 304th Engineers who volunteered to support the medical clinic because most of the engineering projects for Beyond the Horizons are now complete. "When I leave here, I want to be able to say that I came here and helped make a difference."

Army Capt. Kwon said that difference will go a long way in U.S. Southern Command's efforts to forge a closer, long-term partnership between the United States and Guatemala. "We're forming a relationship between our two countries, and showing that we are friendly forces," she said. "We are here to help, working together, united."

TWO ALLEGED REAL ESTATE FORECLOSURE BID RIGGERS INDICTED

FROM:  U.S. DEPARTMENT OF JUSTICE
Thursday, June 28, 2012
Two Alabama Real Estate Investors and Their Company Indicted for Conspiracies to Rig Bids and Commit Mail Fraud for the Purchase of Real Estate at Public Foreclosure Auctions

WASHINGTON – A federal grand jury in Mobile, Ala., returned an indictment today against two real estate investors and their company, charging them with participating in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions held in southern Alabama, the Department of Justice announced today.

The department said the father and son real estate investors, Robert M. Brannon of Laurel, Miss., and Jason R. Brannon of Mobile, respectively, and their Mobile-based company, J & R Properties LLC, conspired with others not to bid against one another at public real estate foreclosure auctions in southern Alabama. The indictment, returned in the U.S. District Court for the Southern District of Alabama, charges that after a designated bidder bought a property at a public auction, which typically takes place at the county courthouse, the conspirators would generally hold a secret, second auction, at which each participant would bid the amount above the public auction price he or she was willing to pay. The highest bidder at the secret, second auction won the property.

The Brannons and J & R Properties were also charged with conspiring to use the U.S. mail to carry out a scheme to acquire title to rigged foreclosure properties sold at public auctions at artificially suppressed prices, to make and receive payoffs to co-conspirators, and to cause financial institutions, homeowners and others with a legal interest in rigged foreclosure properties to receive less than the competitive price for the properties. Jason Brannon, Robert Brannon and J & R Properties are charged with participating in the bid-rigging and mail fraud schemes from as early as October 2004 until at least August 2007.

“Today’s indictment underscores the commitment of the Antitrust Division to prosecute those who illegally profit on the real estate market at the expense of distressed homeowners,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s Criminal Enforcement Program. “The division will pursue vigorously those who engage in collusive schemes to eliminate competition in the marketplace.”  

FBI Acting Special Agent in Charge Patrick Kiernan reaffirmed his commitment to pursuing these complex economic investigations stating, “This investigation has sent a strong message to the community at large, and the real estate community specifically, that abuses within the real estate industry will not be tolerated. Fraud related to home mortgage investments can have financial implications both locally and nationally, and the integrity of the system must be vigilantly maintained.”
         
Each violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals, and a $100 million fine for companies. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than the statutory maximum fine. Each count of conspiracy to commit mail fraud carries a maximum penalty of 20 years in prison and a fine of $250,000 for individuals, and a fine of $500,000 for companies. The fine may be increased to twice the gross gain the conspirators derived from the crime or twice the gross loss caused to the victims of the crime by the conspirators.
     
The investigation into fraud and bid rigging at certain real estate foreclosure auctions in southern Alabama is being conducted by the Antitrust Division’s Atlanta Field Office and the FBI’s Mobile Office, with the assistance of the U.S. Attorney’s Office for the Southern District of Alabama. To date, five individuals—Harold H. Buchman, Allen K. French, Bobby Threlkeld Jr., Steven J. Cox and  Lawrence B. Stacy—and one company—M & B Builders LLC— have pleaded guilty in the U.S. District Court for the Southern District of Alabama in connection with the investigation. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s Atlanta Field Office at 404-331-7100 or visit www.justice.gov/atr/contact/newcase.htm.

Today’s charges are part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.

RECENT U.S. NAVY PHOTOS

FROM:  U.S. NAVY
Sixteen coalition partner ships sail in formation while participating in the War of 1812 fleet exercise. The exercise is a week-long multi-national exercise involving 19 ships from the United States, Canada, the United Kingdom, Germany, Norway, Denmark, Brazil, and Portugal, and is designed to increase interoperability with allied nations, improve tactical prowess and certification of participating units. U.S. Navy photo by Mass Communication Specialist Petty Officer 2nd Class Gretchen M. Albrecht (Released) 120627-N-NR998-347


The Nimitz-class aircraft carrier USS Dwight D. Eisenhower (CVN 69) and the guided-missile destroyer USS Farragut (DDG 99) operate in the Atlantic Ocean. The ships are on a scheduled deployment supporting maritime security operations and theater security cooperation efforts in the U.S. 5th and 6th Fleet areas of responsibility. U.S. Navy photo by Mass Communication Specialist 2nd Class William Jamieson (Released) 120626-N-OV802-104

STAR IN PROTOPLANETARY NEBULA STAGE

FROM:  NASA
Within the Realm of a Dying Star
The NASA/ESA Hubble Space Telescope has been on the forefront of research into the lives of stars like our sun. At the ends of their lives, these stars run out of nuclear fuel in a phase that is called the preplanetary or protoplanetary nebula stage. This Hubble image of the Egg Nebula shows one of the best views to date of this brief, but dramatic, phase in a star’s life.

During the preplanetary nebula phase, the hot remains of an aging star in the center of the nebula heat it up, excite the gas and make it glow over several thousand years. The short lifespan of preplanetary nebulae means there are relatively few of them in existence at any one time. Moreover, they are very dim, requiring powerful telescopes to be seen. This combination of rarity and faintness means they were only discovered comparatively recently.  The Egg Nebula, the first to be discovered, was first spotted less than 40 years ago, and many aspects of this class of object remain shrouded in mystery.

t the center of this image, and hidden in a thick cloud of dust, is the nebula’s central star. While scientists can’t see the star directly, four searchlight beams of light coming from it shine out through the nebula. Researchers hypothesize that ring-shaped holes in the thick cocoon of dust, carved by jets coming from the star, let the beams of light emerge through the otherwise opaque cloud.  The precise mechanism by which stellar jets produce these holes is not known, but one explanation is that a binary star system, rather than a single star, exists at the center of the nebula.

The onion-like layered structure of the more diffuse cloud surrounding the central cocoon is caused by periodic bursts of material being ejected from the dying star. The bursts typically occur every few hundred years.

This image is produced from exposures in visible and infrared light from Hubble’s Wide Field Camera 3. Image Credit ESA/Hubble, NASA

CHAIRMAN JOINT CHIEFS OF STAFF DISCUSSES MILITARY MOVES

FROM:  AMERICAN FORCES PRESS SERVICE
Dempsey Discusses Challenges, Benefits of Military Moves
By Lisa Daniel
GRAPEVINE, Texas, June 27, 2012 - The frequent relocations common to military life may be challenging to families, but they also are one way children become resilient and adaptable -- attributes critical to the military of the future, the chairman of the Joint Chiefs of Staff said here today.

Army Gen. Martin E. Dempsey made the comments as part of an informal "fireside chat" at the National Military Child Education Coalition's 14th national training seminar. He was joined by his wife, Deanie, and retired Army Col. Jack Jacobs, a Medal of Honor recipient and vice chairman of the Medal of Honor Foundation, who asked the couple broad questions about today's military.

The Dempseys moved 22 times in 36 years of service, they said, and all three of their children have served in the Army.

"In some ways, it is a burden," the general said, "but it also is how our kids become resilient and adaptable. Part of being adaptable is being introduced to unfamiliar circumstances."

It is those attributes that the military is "really going to need," Dempsey said, "because we never [predict] the future right.

"In some ways, the military profession and its values and the versatility you have to have as a military family is really quite strengthening," he added.

That resilience and adaptability starts with how parents handle the moves with their children, Mrs. Dempsey said. "It starts with the family and if you make each move an adventure -- and you've got to really sell some places," she said, drawing laughter from the audience.

Also, "it's the fraternity of the military family," she said. "You can say [to the kids], 'You will make new friends,' or 'You'll be with Johnny and Susie from two moves ago.'"
Many military children grow up to enter the military themselves, Mrs. Dempsey noted.
"If it were that bad, they wouldn't serve, too," she said.

Military families also have more support than ever, the Dempseys said. As demands on military families skyrocketed after the 9/11 attacks and through 10 years of war, Americans have responded, many through public-private partnerships, which the chairman described as the best form of support. He credited the nonprofit education coalition as being one example of such support.

The chairman also credited the "Joining Forces" campaign created last year by First Lady Michelle Obama and Dr. Jill Biden, wife of Vice President Joe Biden, for its efforts to raise public awareness of military families' challenges and sacrifices and to call on all sectors of society to support them.

Such organizations are "making a difference," Dempsey said.

"This is about public-private partnerships. This is not the government imposing the idea that we should take care of service members and their families," he said. "It's about the government advocating that [support of military members and their families], and about the people of the United States' communities and corporations stepping up.

"That's partly a reflection of what we've asked our service members and their families to step up and do in these past 10 years, which is remarkable," he added.
It also has helped, Mrs. Dempsey said, that there are many more programs today to help military families, and fewer divisions among rank.

"It used to be that officers and enlisted wives were separate," she said. "At the end of the day, we're all military spouses and we all just want them home."

U.S. CO. SUBSIDIARY PLEADS GUILTY TO VIOLATING ARMS EXPORT CONTROL ACT

FROM:  U.S. DEPARTMENT OF JUSTICE 
Thursday, June 28, 2012
United Technologies Subsidiary Pleads Guilty to Criminal Charges for Helping China Develop New Attack Helicopter United Technologies, Pratt & Whitney Canada and Hamilton Sundstrand Corporations Also Agree to Pay More Than $75 Million to U.S. Government

BRIDGEPORT, Conn. – Pratt & Whitney Canada Corp. (PWC), a Canadian subsidiary of the Connecticut-based defense contractor United Technologies Corporation (UTC), today pleaded guilty to violating the Arms Export Control Act and making false statements in connection with its illegal export to China of U.S.-origin military software used in the development of China’s first modern military attack helicopter, the Z-10.

In addition, UTC, its U.S.-based subsidiary Hamilton Sundstrand Corporation (HSC) and PWC have all agreed to pay more than $75 million as part of a global settlement with the Justice Department and State Department in connection with the China arms export violations and for making false and belated disclosures to the U.S. government about these illegal exports.  Roughly $20.7 million of this sum is to be paid to the Justice Department.  The remaining $55 million is payable to the State Department as part of a separate consent agreement to resolve outstanding export issues, including those related to the Z-10.  Up to $20 million of this penalty can be suspended if applied by UTC to remedial compliance measures.  As part of the settlement, the companies admitted conduct set forth in a stipulated and publicly filed statement of facts.
 
Today’s actions were announced by David B. Fein, U.S. Attorney for the District of Connecticut; Lisa Monaco, Assistant Attorney General for National Security; John Morton, Director of U.S. Immigration and Customs Enforcement (ICE); Ed Bradley, Special Agent in Charge of the Northeast Field Office of the Defense Criminal Investigative Service (DCIS); Kimberly K. Mertz, Special Agent in Charge of the FBI New Haven Division; David Mills, Department of Commerce Assistant Secretary for Export Enforcement; and Andrew J. Shapiro, Assistant Secretary of State for Political-Military Affairs.

The Charges
Today in the District of Connecticut, the Justice Department filed a three-count criminal information charging UTC, PWC and HSC.  Count One charges PWC with violating the Arms Export Control Act in connection with the illegal export of defense articles to China for the Z-10 helicopter.  Count Two charges PWC, UTC and HSC with making false statements to the U.S. government in their belated disclosures relating to the illegal exports.  Count Three charges PWC and HSC with failure to timely inform the U.S. government of exports of defense articles to China.

While PWC has pleaded guilty to Counts One and Two, the Justice Department has recommended that prosecution of UTC and HSC on Count Two, and PWC and HSC on Count Three be deferred for two years, provided the companies abide by the terms of a deferred prosecution agreement with the Justice Department.  As part of the agreement, the companies must pay $75 million and retain an Independent Monitor to monitor and assess their compliance with export laws for the next two years.
The Export Scheme

Since 1989, the United States has imposed a prohibition upon the export to China of all U.S. defense articles and associated technical data as a result of the conduct in June 1989 at Tiananmen Square by the military of the People’s Republic of China.  In February 1990, the U.S. Congress imposed a prohibition upon licenses or approvals for the export of defense articles to the People’s Republic of China.  In codifying the embargo, Congress specifically named helicopters for inclusion in the ban.

Dating back to the 1980s, China sought to develop a military attack helicopter.  Beginning in the 1990s, after Congress had imposed the prohibition on exports to China, China sought to develop its attack helicopter under the guise of a civilian medium helicopter program in order to secure Western assistance.  The Z-10, developed with assistance from Western suppliers, is China’s first modern military attack helicopter.

During the development phases of China’s Z-10 program, each Z-10 helicopter was powered by engines supplied by PWC.  PWC delivered 10 of these development engines to China in 2001 and 2002.  Despite the military nature of the Z-10 helicopter, PWC determined on its own that these development engines for the Z-10 did not constitute “defense articles,” requiring a U.S. export license, because they were identical to those engines PWC was already supplying China for a commercial helicopter.

Because the Electronic Engine Control software, made by HSC in the United States to test and operate the PWC engines, was modified for a military helicopter application, it was a defense article and required a U.S. export license.  Still, PWC knowingly and willfully caused this software to be exported to China for the Z-10 without any U.S. export license.  In 2002 and 2003, PWC caused six versions of the military software to be illegally exported from HSC in the United States to PWC in Canada, and then to China, where it was used in the PWC engines for the Z-10.

According to court documents, PWC knew from the start of the Z-10 project in 2000 that the Chinese were developing an attack helicopter and that supplying it with U.S.-origin components would be illegal.  When the Chinese claimed that a civil version of the helicopter would be developed in parallel, PWC marketing personnel expressed skepticism internally about the “sudden appearance” of the civil program, the timing of which they questioned as “real or imagined.”  PWC nevertheless saw an opening for PWC “to insist on exclusivity in [the] civil version of this helicopter,” and stated that the Chinese would “no longer make reference to the military program.” PWC failed to notify UTC or HSC about the attack helicopter until years later and purposely turned a blind eye to the helicopter’s military application.

HSC in the United States had believed it was providing its software to PWC for a civilian helicopter in China, based on claims from PWC.  By early 2004, HSC learned there might an export problem and stopped working on the Z-10 project.  UTC also began to ask PWC about the exports to China for the Z-10.  Regardless, PWC on its own modified the software and continued to export it to China through June 2005.

According to court documents, PWC’s illegal conduct was driven by profit.  PWC anticipated that its work on the Z-10 military attack helicopter in China would open the door to a far more lucrative civilian helicopter market in China, which according to PWC estimates, was potentially worth as much as $2 billion to PWC.
Belated and False Disclosures to U.S. Government

These companies failed to disclose to the U.S. government the illegal exports to China for several years and only did so after an investor group queried UTC in early 2006 about whether PWC’s role in China’s Z-10 attack helicopter might violate U.S. laws.  The companies then made an initial disclosure to the State Department in July 2006, with follow-up submissions in August and September 2006.

The 2006 disclosures contained numerous false statements.  Among other things, the companies falsely asserted that they were unaware until 2003 or 2004 that the Z-10 program involved a military helicopter.  In fact, by the time of the disclosures, all three companies were aware that PWC officials knew at the project’s inception in 2000 that the Z-10 program involved an attack helicopter.

Today, the Z-10 helicopter is in production and initial batches were delivered to the People’s Liberation Army of China in 2009 and 2010.  The primary mission of the Z-10 is anti-armor and battlefield interdiction.  Weapons of the Z-10 have included 30 mm cannons, anti-tank guided missiles, air-to-air missiles and unguided rockets.

“PWC exported controlled U.S. technology to China, knowing it would be used in the development of a military attack helicopter in violation of the U.S. arms embargo with China,” said U.S. Attorney Fein.  “PWC took what it described internally as a ‘calculated risk,’ because it wanted to become the exclusive supplier for a civil helicopter market in China with projected revenues of up to two billion dollars.  Several years after the violations were known, UTC, HSC and PWC disclosed the violations to the government and made false statements in doing so.  The guilty pleas by PWC and the agreement reached with all three companies should send a clear message that any corporation that willfully sends export controlled material to an embargoed nation will be prosecuted and punished, as will those who know about it and fail to make a timely and truthful disclosure.”

“Due in part to the efforts of these companies, China was able to develop its first modern military attack helicopter with restricted U.S. defense technology.  As today’s case demonstrates, the Justice Department will spare no effort to hold accountable those who compromise U.S. national security for the sake of profits and then lie about it to the government,” said Assistant Attorney General Monaco.  “I thank the agents, analysts and prosecutors who helped bring about this important case.”

“This case is a clear example of how the illegal export of sensitive technology reduces the advantages our military currently possesses,” said ICE Director Morton.  “I am hopeful that the conviction of Pratt & Whitney Canada and the substantial penalty levied against United Technologies and its subsidiaries will deter other companies from considering similarly ill-conceived business practices in the future.  American military prowess depends on lawful, controlled exports of sensitive technology by U.S. industries and their subsidiaries, which is why ICE will continue its present campaign to aggressively investigate and prosecute criminal violations of U.S. export laws relating to national security.”

“Today’s charges and settlement demonstrate the continued commitment of the Defense Criminal Investigative Service (DCIS) and fellow agencies to protect sensitive U.S. defense technology from being illegally exported,” said DCIS Special Agent in Charge Bradley.  “Safeguarding our military technology is vital to our nation’s defense and the protection of our war fighters both home and abroad.  We know that foreign governments are actively seeking U.S. defense technology for their own development.  Thwarting these efforts is a top priority for DCIS.  I applaud the agents and prosecutors who worked tirelessly to bring about this result.”

“Preventing the loss of critical U.S. information and technologies is one of the most important investigative priorities of the FBI,” said FBI Special Agent in Charge Mertz.  “Our adversaries routinely target sensitive research and development data and intellectual property from universities, government agencies, manufacturers, and defense contractors.  While the thefts associated with economic espionage and illegal technology transfers may not capture the same level of attention as a terrorist incident, the costs to the U.S. economy and our national security are substantial.  Violations of the Arms Export Control Act put our nation at risk and the FBI, along with all of our federal agency partners, are committed to ensuring that embargoed technologies do not fall into the wrong hands.  Those who violate these laws should expect to be held accountable.  An important part of the FBI’s strategy in this area involves the development of strategic partnerships.  In that regard, the FBI looks forward to future coordination with UTC and its subsidiaries to strengthen information sharing and counterintelligence awareness.”

“Protecting national security is our top priority,” said Assistant Secretary of Commerce for Export Enforcement Mills.  “Today’s action sends a clear signal that federal law enforcement agencies will work together diligently to prevent U.S. technology from falling into the wrong hands.”

Assistant Secretary Shapiro, of the State Department’s Bureau of Political and Military Affairs, said, “Today’s $75 million settlement with United Technologies Corporation sends a clear message:  willful violators of U.S. arms export control regulations will be pursued and punished.  The successful resolution of this case is the byproduct of the tireless work of our compliance officers and highlights the relentless commitment of the State Department to protect sensitive American technologies from being illegally transferred.”

U.S. Attorney Fein commended the many agencies involved in this investigation, including ICE’s Homeland Security Investigations (HSI) in New Haven; the DCIS in New Haven; the New Haven Division of the FBI; the Department of Commerce’s Boston Office of Export Enforcement.  He also praised the Office of the HSI Attaché in Toronto, which was essential to the initiation and investigation of this matter, and the State Department’s Office of Defense Trade Controls Compliance in the Bureau of Political-Military Affairs, for its critical role in the global resolution of this matter.

The prosecution is being handled by Assistant U.S. Attorneys Stephen B. Reynolds and Michael J. Gustafson from the U.S. Attorney’s Office for the District of Connecticut, with assistance from Steven Pelak and Ryan Fayhee of the Counterespionage Section of the Justice Department’s National Security Division.

PRESS STATEMENT BY SEC. OF STATE CLINTON ON IRANIAN CRUDE OIL PURCHASES

FROM:  U.S. STATE DEPARTMENT
Regarding Significant Reductions of Iranian Crude Oil Purchases
Press Statement Hillary Rodham Clinton
Secretary of State Washington, DC
June 28, 2012
Today I have made the determination that two additional countries, China and Singapore, have significantly reduced their volume of crude oil purchases from Iran. As a result, I will report to the Congress that sanctions pursuant to Section 1245(d)(1) of the National Defense Authorization Act (NDAA) for Fiscal Year 2012 will not apply to their financial institutions for a potentially renewable period of 180 days.

A total of 20 world economies have now qualified for such an exception. Their cumulative actions are a clear demonstration to Iran’s government that Iran’s continued violation of its international nuclear obligations carries an enormous economic cost. According to the International Energy Agency (IEA), Iran’s crude oil exports in 2011 were approximately 2.5 million barrels per day, and have dropped to roughly 1.5 million barrels per day, which in real terms means almost $8 billion in lost revenues every quarter. When the European Union oil embargo goes into effect July 1, Iran’s leaders will understand even more fully the urgency of the choice they face and the unity of the international community.

Today marks an important milestone in the implementation of the NDAA and U.S. sanctions toward Iran. Following the President’s determinations on March 30 and June 11 on the availability of non-Iranian supplies of oil, as of today, any foreign financial institution based in a country that has not received an NDAA exception is subject to U.S. sanctions if it knowingly conducts a significant transaction with the Central Bank of Iran for the sale or purchase of petroleum or petroleum products to or from Iran.

We have been clear all along that there is a path for Iran to fully re-join the global economy. Iran’s leaders have the opportunity to address international concerns by engaging seriously and substantively in negotiations with the P5+1. I urge Iran to demonstrate its willingness to take concrete steps toward resolving the nuclear issue during the expert-level talks scheduled in Istanbul on July 3. Failure to do so will result in continuing pressure and isolation from the international community.

U.S. AIR FORCE WAGES WAR AGAINST WALDO CANYON FIRE

FROM:  U.S. AIR FORCE
Air Force firefighters taking fight to Colorado Springs wildfire 
6/28/2012 - Helicopters dump water on the Waldo Canyon Fire that has spread to the outskirts of the Air Force Academy, Colo., June 28. The Waldo Canyon fire has destroyed more than 18,000 acres in the Colorado Springs area. (U.S. Air Force photo by Staff Sgt. Christopher Boitz)

ACCOUNTING FOR NAVAL FAMILIES IN COLORADO

FROM:  U.S. NAVY
120627-N-WR119-014 COLORADO SPRINGS, Colo. (June 27, 2012) The Waldo Canyon fire burns on the south end of the United States Air Force Academy campus. The fire displaced 15 Navy Operational Support Center Fort Carson personnel and burned 15,324 acres as 32,000 people were evacuated. (U.S. Navy Photo by Mass Communication Specialist 2nd Class Gilbert Bolibol/Released)


Navy Issues Order To Account For Navy Families In Colorado
From Navy Personnel Command Public Affairs
MILLINGTON, Tenn. (NNS) -- The Navy has issued an order to account for Navy personnel and their families affected by the Colorado wildfires according to a Navy message released June 28.

NAVADMIN 196/12 requires commanders to conduct a personnel accountability muster of all Navy personnel and families in the Colorado counties of El Paso, Douglas, and Teller. Navy figures show approximately 3,100 Navy personnel residing in the affected geographical area.

This order includes active and Reserve component Sailors, Navy government service employees and family members.

Additionally, commanding officers are responsible for ensuring the muster is entered in the Navy Family Accountably and Assessment System (NFASS) at https://navyfamily.navy.mil.

Individuals who are unable to contact their command should log on to NFAAS and muster on the Navy Family Members' section. Impacted personnel unable to contact their command or the NFAAS website can call the NFASS Help Desk at (866) 946-9183.

Navy personnel and families, who are severely impacted, must log into NFAAS athttps://navyfamily.navy.mil to update contact information and complete a needs assessment survey at their earliest convenience. Affected personnel can contact the Navy Personnel Command (NPC) Emergency Coordination Center (ECC) (877) 414-5358 for further assistance once their needs assessment survey is submitted.

NFAAS standardizes a method for the Navy to account, manage, and monitor the recovery process for personnel and their families affected and/or scattered by a wide-spread catastrophic event.

For more information read the NAVADMIN at www.npc.navy.mil

DOD News Briefing with Gen. Edward Rice Jr. from the Pentagon

DOD News Briefing with Gen. Edward Rice Jr. from the Pentagon

PRESIDENT OBAMA'S REMARKS ON SUPREME COURT RULING REGARDING THE AFFORDABLE CARE ACT

FROM:  THE WHITE HOUSE
President Barack Obama talks on the phone with Solicitor General Donald Verrilli in the Oval Office, after learning of the Supreme Court's ruling on the “Patient Protection and Affordable Care Act,” June 28, 2012. (Official White House Photo by Pete Souza) 

Remarks by the President on Supreme Court Ruling on the Affordable Care Act
East Room
12:15 P.M. EDT
THE PRESIDENT:  Good afternoon.  Earlier today, the Supreme Court upheld the constitutionality of the Affordable Care Act -- the name of the health care reform we passed two years ago.  In doing so, they've reaffirmed a fundamental principle that here in America -- in the wealthiest nation on Earth – no illness or accident should lead to any family’s financial ruin.

I know there will be a lot of discussion today about the politics of all this, about who won and who lost.  That’s how these things tend to be viewed here in Washington.  But that discussion completely misses the point.  Whatever the politics, today’s decision was a victory for people all over this country whose lives will be more secure because of this law and the Supreme Court’s decision to uphold it.

And because this law has a direct impact on so many Americans, I want to take this opportunity to talk about exactly what it means for you.

First, if you’re one of the more than 250 million Americans who already have health insurance, you will keep your health insurance -- this law will only make it more secure and more affordable.  Insurance companies can no longer impose lifetime limits on the amount of care you receive.  They can no longer discriminate against children with preexisting conditions.  They can no longer drop your coverage if you get sick.  They can no longer jack up your premiums without reason.  They are required to provide free preventive care like check-ups and mammograms -- a provision that's already helped 54 million Americans with private insurance.  And by this August, nearly 13 million of you will receive a rebate from your insurance company because it spent too much on things like administrative costs and CEO bonuses, and not enough on your health care.
There’s more.  Because of the Affordable Care Act, young adults under the age of 26 are able to stay on their parent's health care plans -- a provision that's already helped 6 million young Americans.  And because of the Affordable Care Act, seniors receive a discount on their prescription drugs -- a discount that's already saved more than 5 million seniors on Medicare about $600 each.

All of this is happening because of the Affordable Care Act. These provisions provide common-sense protections for middle class families, and they enjoy broad popular support.  And thanks to today’s decision, all of these benefits and protections will continue for Americans who already have health insurance.  

Now, if you’re one of the 30 million Americans who don’t yet have health insurance, starting in 2014 this law will offer you an array of quality, affordable, private health insurance plans to choose from.  Each state will take the lead in designing their own menu of options, and if states can come up with even better ways of covering more people at the same quality and cost, this law allows them to do that, too.  And I’ve asked Congress to help speed up that process, and give states this flexibility in year one.

Once states set up these health insurance marketplaces, known as exchanges, insurance companies will no longer be able to discriminate against any American with a preexisting health condition.  They won’t be able to charge you more just because you’re a woman.  They won’t be able to bill you into bankruptcy. If you’re sick, you’ll finally have the same chance to get quality, affordable health care as everyone else.  And if you can’t afford the premiums, you'll receive a credit that helps pay for it.

Today, the Supreme Court also upheld the principle that people who can afford health insurance should take the responsibility to buy health insurance.  This is important for two reasons.

First, when uninsured people who can afford coverage get sick, and show up at the emergency room for care, the rest of us end up paying for their care in the form of higher premiums.

And second, if you ask insurance companies to cover people with preexisting conditions, but don’t require people who can afford it to buy their own insurance, some folks might wait until they’re sick to buy the care they need -- which would also drive up everybody else’s premiums.

That’s why, even though I knew it wouldn’t be politically popular, and resisted the idea when I ran for this office, we ultimately included a provision in the Affordable Care Act that people who can afford to buy health insurance should take the responsibility to do so.  In fact, this idea has enjoyed support from members of both parties, including the current Republican nominee for President.

Still, I know the debate over this law has been divisive.  I respect the very real concerns that millions of Americans have shared.  And I know a lot of coverage through this health care debate has focused on what it means politically.

Well, it should be pretty clear by now that I didn’t do this because it was good politics.  I did it because I believed it was good for the country.  I did it because I believed it was good for the American people.

There’s a framed letter that hangs in my office right now.  It was sent to me during the health care debate by a woman named Natoma Canfield.  For years and years, Natoma did everything right.  She bought health insurance.  She paid her premiums on time.  But 18 years ago, Natoma was diagnosed with cancer.  And even though she’d been cancer-free for more than a decade, her insurance company kept jacking up her rates, year after year.  And despite her desire to keep her coverage -- despite her fears that she would get sick again -- she had to surrender her health insurance, and was forced to hang her fortunes on chance.

I carried Natoma’s story with me every day of the fight to pass this law.  It reminded me of all the Americans, all across the country, who have had to worry not only about getting sick, but about the cost of getting well.

Natoma is well today.  And because of this law, there are other Americans -- other sons and daughters, brothers and sisters, fathers and mothers -- who will not have to hang their fortunes on chance.  These are the Americans for whom we passed this law.
The highest Court in the land has now spoken.  We will continue to implement this law.  And we'll work together to improve on it where we can.  But what we won’t do -- what the country can’t afford to do -- is refight the political battles of two years ago, or go back to the way things were.

With today’s announcement, it’s time for us to move forward -- to implement and, where necessary, improve on this law.  And now is the time to keep our focus on the most urgent challenge of our time:  putting people back to work, paying down our debt, and building an economy where people can have confidence that if they work hard, they can get ahead.

But today, I’m as confident as ever that when we look back five years from now, or 10 years from now, or 20 years from now, we’ll be better off because we had the courage to pass this law and keep moving forward.

Thank you.  God bless you, and God bless America.