STATE DEPARTMENT OFFICIAL REMARKS ON MISSILE DEFENSE AND EUROPEAN SECURITY

Photo:  Missile Launch.  Credit:  U.S. DOD.
FROM:  U.S. DEPARTMENT OF STATE
Missile Defense and European Security
Remarks Frank A. Rose
Deputy Assistant Secretary, Bureau of Arms Control, Verification and Compliance8th International Conference on Missile Defence
Paris, France
July 3, 2012
Thank you so much for inviting me to speak today. This venue provides an opportunity for constructive dialogue on missile defense, and in this context, I will share an update on the U.S. approach to missile defense. At the State Department, I am responsible for overseeing a wide range of defense policy issues, including missile defense. In that capacity, it was my responsibility to negotiate the details of the Ballistic Missile Defense (BMD) agreements with Poland, Romania, and Turkey that will enable the United States to implement the European Phased Adaptive Approach, the U.S. contribution to NATO missile defense. I will touch more on this later in my presentation, but suffice to say that I have been focused over the last couple of years on ensuring that we are able to meet the vision President Obama laid out in his 2009 announcement regarding the European Phased Adaptive Approach.

Missile Defense Policy
Today, there is a growing threat from short-, medium-, and intermediate-range ballistic missiles to our deployed forces, allies, and partners. This threat is likely to increase in both quantitative and qualitative terms in the coming years, as some states are increasing their inventories, and making their ballistic missiles more accurate, reliable, and survivable.

Recognizing the seriousness of the ballistic missile threat, the United States seeks to create an environment, based on strong cooperation with allies and partners, which will diminish an adversary’s confidence in the effectiveness of ballistic missile attacks. This will devalue ballistic missiles and provide a disincentive for their development, acquisition, deployment, and use. To that end, President Obama has made international cooperation on missile defense a key priority, and we are pursuing a region-by-region approach based on the following three principles:

1) First, the United States will strengthen regional deterrence architectures built upon solid cooperative relationships with an eye toward efficiently incorporating assets and structures that our partners already have today or are seeking.

2) Second, the United States is pursuing phased adaptive approaches (PAAs) to missile defense within key regions that are tailored to their unique deterrence requirements and threats, including the scale, scope, and pace of their development, and the capabilities available and most suited for deployment. Specifically, we will phase in the best available technology to meet existing and evolving threats, and adapt to situations that evolve in the future.

3) Third, recognizing that our supply of missile defense assets cannot meet the global demand we face, the United States is developing mobile capabilities that can be relocated to adapt to a changing threat and provide surge defense capabilities where they are most needed.

Missile defense plays an important role in the broader U.S. international security strategy, supporting both deterrence and diplomacy. Missile defense assures our allies and partners that the United States has the will and the means to deter and, if necessary, defeat a limited ballistic missile attack against the U.S. homeland and regional ballistic missile attacks against our deployed forces, allies, and partners.

NATO and European Missile Defense
Today I will focus on our work in Europe, which continues to receive a great deal of attention. In order to augment the defense of the United States against a future long-range threat and provide more comprehensive and more rapid protection to our deployed forces and European Allies against the current short- and medium- range threat, President Obama outlined a four-phase approach for European missile defense called the European Phased Adaptive Approach or EPAA. Through the EPAA, the United States will deploy increasingly capable BMD assets to defend Europe against a ballistic missile threat from the Middle East that is increasing both quantitatively and qualitatively.

The EPAA is designed to protect our deployed forces and Allies in Europe, as well as improve protection of the U.S. homeland against potential ICBMs from the Middle East. As part of Phase 1, we have deployed to Turkey a missile defense radar, referred to as the AN/TPY-2 radar in support of NATO’s common missile defense efforts. Also, as part of Phase 1, the United States deployed a BMD-capable Aegis ship to the Mediterranean Sea in March of 2011, and has maintained a BMD-capable ship presence in the region ever since.

Slightly more than a year ago, we reached an agreement with Romania to host a U.S. land-based SM-3 BMD interceptor site, designed to extend missile defense protection to a greater portion of Europe. The land-based SM-3 system to be deployed to Romania is anticipated to become operational in the 2015 timeframe. We also reached an agreement with Poland to place a similar U.S. BMD interceptor site there in the 2018 timeframe, which will extend missile defense protection to all of NATO Europe. Spain has also agreed to host four U.S. Aegis destroyers at the existing naval facility at Rota. These multi-mission ships will support the EPAA as well as other EUCOM and NATO maritime missions.

The Obama Administration is implementing the EPAA within the NATO context. At the 2010 Lisbon Summit, NATO Heads of State and Government approved a new Strategic Concept and took the historic decision to develop the capability to defend NATO European populations and territory against the increasing threat posed by ballistic missile proliferation. The Allies also welcomed the EPAA as a U.S. national contribution to the new NATO territorial missile defense capability, in support of our commitment to the collective defense of the Alliance under Article 5 of the North Atlantic Treaty.

At the Lisbon Summit, NATO Heads of State and Government also decided to expand the scope of the NATO Active Layered Theatre Ballistic Missile Defense (ALTBMD) program to serve as the command, control, and communications network to support this new capability. NATO allies have committed to investing over $1 billion for command, control, and communications infrastructure to support NATO missile defense. NATO’s plan for missile defense is based on the principle that individual Allies will make voluntary national contributions of the sensors and interceptor systems, BMD capabilities that will be integrated into the NATO ALTBMD C2 backbone. As with any national contribution, Allies are responsible for the costs associated with their own contributions. NATO agreed at Chicago that only the command and control systems of ALTBMD and their expansion to territorial defense are eligible for common funding.

On May 20-21, the NATO Heads of State and Government met in Chicago for the NATO Summit and announced that NATO has achieved an interim BMD capability. This means that the Alliance has an operationally meaningful standing peacetime ballistic missile defense capability. NATO also agreed on the command and control procedures for ballistic missile defense, designated Supreme Allied Commander Europe (SACEUR) as the commander for this mission, and demonstrated an interoperable command and control capability. As with all of NATO’s operations, full political control by Allies over military actions undertaken pursuant to Interim Capability will be ensured.

To support this interim BMD capability, the United States will offer EPAA assets to the Alliance as voluntary national contributions to the BMD mission, and will welcome contributions by other Allies. For example, President Obama announced in Chicago that he has directed the transfer of the AN/TPY-2 radar deployed in Turkey to NATO operational control. The EPAA also includes BMD-capable Aegis ships that can perform many roles besides BMD. U.S. missile defense-capable ships in Europe are able to operate under NATO operational control when necessary.

These decisions have created a framework for Allies to contribute and optimize their own BMD assets for our collective defense, and the United States welcomes contributions from other Allies. We believe that NATO missile defense will be more effective should Allies decide to provide sensors and interceptors to complement the U.S. EPAA contributions. If Allies should decide to develop their own missile defense capabilities, that would create significant opportunities for European industries. In short, there is absolutely no requirement or assumption that NATO missile defense will be “made in the USA.” The only requirement is that the systems contributed by Allies be interoperable with NATO's missile defense command and control capability. Several NATO Allies possess land- and sea-based sensors that could be linked into the system, as well as lower tier systems that can be integrated and used to provide point defense. For example, the Netherlands has indicated that it will spend close to 250 million Euros to modify the radars on its frigates to detect and track ballistic missiles at long ranges and has indicated it will contribute its Patriot BMD systems to the NATO missile defense mission. There are potentially many more opportunities for joint development and procurement.

Russia
An update on missile defense cooperation with Europe should also include a discussion of our efforts to pursue cooperation with the Russian Federation. Missile defense cooperation with Russia is a Presidential priority, as it has been for several Administrations going back to President George H.W. Bush in the early 1990s.

When President Obama announced his new vision for missile defense in Europe in September 2009, he stated that “we welcome Russia’s cooperation to bring its missile defense capabilities into a broader defense of our common strategic interests.” Missile defense cooperation with Russia will not only strengthen our bilateral and NATO-Russia relationships, but also could enhance NATO’s missile defense capabilities. Successful missile defense cooperation would provide concrete benefits to Russia, our NATO Allies, and the United States and will strengthen – not weaken – strategic stability over the long term.

This means it is important to get the Russian Federation inside the missile defense tent now, working alongside the United States and NATO, while we are in the early stages of our efforts. Close cooperation between Russia and the United States and NATO is the best and most enduring way for Russia to gain the assurance that European missile defenses cannot and will not undermine its strategic deterrent.
Russia is not being asked to blindly trust us. Through cooperation, Russia would see firsthand that this system is designed for the ballistic missile threat from outside the Euro-Atlantic area, and that NATO missile defense systems will not undermine Russia’s strategic nuclear deterrent capabilities. Cooperation would send a strong message to proliferators that the United States, NATO, and Russia are working together to counter their efforts.

That said, Russia has raised the issue of wanting a legal guarantee with a set of “military-technical criteria” that could, in effect, create limitations on our ability to develop and deploy future missile defense systems against regional ballistic missile threats such as those presented by Iran and North Korea. We have made it clear that we cannot and will not accept limitations on our ability to defend ourselves, our allies, and our partners, including where we deploy our BMD-capable Aegis ships. These are multi-mission ships that are used for a variety of purposes around the world, not just for missile defense.

While we seek to develop ways to cooperate with Russia on missile defense, it is important to remember that under the terms of Article 5 of the North Atlantic Treaty, NATO alone bears responsibility for defending the Alliance from the ballistic missile threat. This is why the United States and NATO cannot agree to Russia’s proposal for “sectoral” missile defense. Just as Russia must ensure the defense of Russian territory, NATO must ensure the defense of NATO territory. NATO cannot and will not outsource its Article 5 commitments.

We would, however, be willing to agree to a political framework for cooperation that includes a statement that our missile defenses are not oriented toward Russia. Any such statement would publicly proclaim our intent to work together and chart the direction for cooperation.

During the G-20 Meeting in Los Cabos, Mexico, President Obama and President Putin announced in their June 18 Joint Statement that “despite differences in assessments, we have agreed to continue a joint search for solutions to challenges in the field of missile defense.”

The United States looks forward to continuing discussions with the Russian Federation to develop a mutually agreed framework for missile defense cooperation.

I want to close by noting the obvious which is that the worst-case scenario for dealing with missile threats is after a missile has launched. We are taking several steps diplomatically to counter missile proliferation and address missile programs of concern. We are working with the other 33 Missile Technology Control Regime (MTCR) Partners to create the global standard for controlling the transfer of equipment, software, and technology that could make a contribution to rockets and unmanned aerial vehicles. We also are working to support the efforts of the Hague Code of Conduct Against Ballistic Missile Proliferation (HCOC), and are working through the Proliferation Security Initiative (PSI) to help partners improve their ability to stop shipments of proliferation concern. Those are just some of the efforts that are ongoing to address missile threats, and while we do this work quietly, these efforts are having an impact.

Conclusion
Let me conclude by saying that today’s ballistic missile threats continue to increase in number and sophistication. This increasing threat reinforces the importance of our collaborative missile defense efforts with allies and partners around the world, which not only strengthen regional stability, but also provide protection for our forces serving abroad and augment the defense of the United States.
Thank you for your time and attention.

ISAF REPORT ON AFGHANISTAN JULY 3, 2012

MAP CREDIT:  U.S. STATE DEPARTMENT. 
FROM:   AMERICAN FORCES PRESS SERVICE
Combined Forces Confirm Death of al-Qaida Leader
Compiled from International Security Assistance Force Joint Command News Releases
WASHINGTON, July 3, 2012 - Afghan and coalition forces today confirmed the death of Hanzallah, an al-Qaida leader who operated in Afghanistan, military officials reported.
Hanzallah was killed July 1 during a security operation in the Watahpur district of Afghanistan's Kunar province, officials said.
Hanzallah acted as a military advisor to insurgents in Kunar, Nuristan and Laghman provinces and provided them with improvised explosive device training, officials said. Officials noted that Hanzallah was one of several al-Qaida terrorists killed during the security operation.

Also today, an airstrike called in by a combined force killed several insurgents in the Bermal district of Paktika province.
In operations yesterday:
-- A combined force killed two insurgents in Ghazni province's Giro district.

-- A combined force killed four insurgents in Ghazni province's Andar district.

-- Combined forces found and safely cleared IEDs in Ghazni province's Ab Band and Qarah Bagh districts.

-- A combined force detained an insurgent in Khost province's Gurbuz district.

-- Combined forces detained three insurgents in Khowst province's Khowst districtand found and safely cleared an IED in Khost's Sabari district.

-- A combined force killed an insurgent in Kunar province's Watahpur district, and another detained two insurgents in Kunar's Sar Kani district.

-- A combined force killed four insurgents in Logar province's Charkh district.

-- A combined force detained two insurgents in Paktika province's Sar Rowzah district.

-- Afghan national security forces and coalition forces killed three insurgents in Paktia province's Shwak district.

-- A combined force detained two insurgents in Paktia's Zurmat district.

-- A combined force found and safely cleared three IEDs, killed two insurgents and detained five others in Wardak province's Qarah Bagh district.

-- A combined force found and safely cleared two IEDs in Wardak's Sayyadabad district.

In a June 30 operation, a combined force killed numerous insurgents and seized 220 pounds of poppy seed, 11 pounds of wet opium, IED-making components, 700 7.62mm rounds and weapons in the Shiray Kajaki and Baghran districts of Helmand province.

USDA ANNOUNCES NEW STEPS PROTECTING PUBLIC FROM PESTICIDES, CHEMICALS

Photo Credit:  USDA.
FROM:  U.S. DEPARTMENT OF AGRICULTURE
USDA to Enhance Consumer Safeguards with Expanded Testing for Illegal Drug Residues in Meat
WASHINGTON, July 2, 2012—The U.S. Department of Agriculture's Food Safety and Inspection Service (FSIS) today announced new steps to safeguard the food supply and to protect consumers nationwide. Later this summer, the Department will launch a new approach to its testing to protect the public from exposure to harmful levels of chemical residues in meat, poultry, and egg products.

"The new testing methods being announced today will help protect consumers from illegal drug residues in meat products," USDA Under Secretary for Food Safety Dr. Elisabeth Hagen said. "By allowing us to test for more chemical compounds from each sample, these changes will enable USDA to identify and evaluate illegal drug residues more effectively and efficiently."

Through its National Residue Program (NRP), FSIS tests for the presence of chemical compounds, including approved (legal) and unapproved (illegal) veterinary drugs, pesticides, hormones, and environmental contaminants that may appear in meat, poultry, and egg products. The new, modern, high-efficiency methods that FSIS is announcing today will conserve resources and provide useful and reliable results while enabling the Agency to analyze each sample for more chemical compounds than previously possible.

One of the multi-residue methods being implemented for veterinary drugs will allow the Agency to screen for chemical compounds that include several types of legal and illegal drugs such as antibiotics, anti-inflammatories and growth promoters. In the past, FSIS would have collected 300 samples from 300 cows and looked for just one chemical at a time. Under the new system, one sample may be tested for as many as 55 pesticide chemicals, 9 kinds of antibiotics, various metals, and eventually more than 50 other chemicals. In all, FSIS will assess more compounds per sample using several multi-residue methods.

FSIS is also revamping its scheduled sampling program to increase the annual number of samples per slaughter class from 300 to 800. If an establishment has samples containing illegal residue levels, FSIS will notify the Food and Drug Administration, which may review practices of producers supplying the establishment with livestock or poultry, and FSIS may subject the establishment to increased testing and review.

FSIS is responsible for protecting the health and welfare of consumers by regulating the meat, poultry, and egg products produced in federally inspected establishments. One way FSIS provides this protection is through the NRP—an inter-departmental collaboration designed to protect the public from exposure to harmful levels of chemical residues in meat, poultry, and egg products produced or imported into the United States. The NRP is designed to provide a structured process for identifying and evaluating chemical compounds of concern in food animals; collecting, analyzing and reporting results; and identifying the need for regulatory follow-up when violative levels of chemical residues are found.

FSIS is inviting interested persons to submit comments on today's announcement, which is tentatively slated to be published in the Federal Register on July 6, 2012 athttp://www.regulations.gov. The new testing regimen is expected to take effect 30 days after the Federal Register notice is published.

In the past two years, FSIS has announced several new measures to safeguard the food supply, prevent foodborne illness, and improve consumers' knowledge about the food they eat. These initiatives support the three core principles developed by the President's Food Safety Working Group: prioritizing prevention; strengthening surveillance and enforcement; and improving response and recovery. Some of these actions include:

Zero-tolerance policy for non-O157:H7 STECs. On June 4, 2012, FSIS began routinely testing raw beef manufacturing trim for six strains of non-O157:H7 Shiga-toxin producing E. coli (STEC) serogroups. Trim found to be contaminated with these pathogens, which can cause severe illness and even death, will not be allowed into commerce and will be subject to recall.

Labeling requirements that provide better information to consumers about their food by requiring nutrition information for single-ingredient raw meat and poultry products and ground or chopped products.
Public Health Information System, a modernized, comprehensive database with information on public health trends and food safety violations at the nearly 6,100 plants FSIS regulates.

Performance standards for poultry establishments for continued reductions in the occurrence of pathogens. After two years of enforcing the new standards, FSIS estimates that approximately 5,000 illnesses will be prevented each year under the new Campylobacterstandards, and approximately 20,000 illnesses will be prevented under the revised Salmonella standards each year.

Test and hold policy that will significantly reduce consumer exposure to unsafe meat products, should the policy become final, because products cannot be released into commerce until Agency test results for dangerous contaminants are known.

PRESIDENT OBAMA PRAISES AIRMEN FIREFIGHTERS

FROM:  U.S. DEPARTMENT OF DEFENSE
Obama Praises Airmen for Firefighting Efforts, Bravery
President Barack Obama reflected on the sacrifices made by airmen fighting wildfires in the Rocky Mountain region, calling them “heroes who deserve the appreciation of a grateful nation.” Obama made the statement in Washington, D.C., July 2, 2012, following the crash of a North Carolina Air National Guard C-130 aircraft flown by a crew battling a South Dakota wildfire.

NAVY CRACKS DOWN ON "SPICE", "BATH SALTS"

FROM:  U.S. NAVY
120329-N-WP746-068 JOINT BASE PEARL HARBOR-HICKAM (March 29, 2012) The Criminal Investigative Division at Commander, Navy Region Hawaii, displays examples of seized evidences of synthetic drugs, commonly known as "Spice" as part of an awareness campaign and training against its usage. Spice looks similar to marijuana or oregano and is used for its psychoactive and hallucinogenic effects. Spice and other designer drugs are falsely marketed by manufacturers in commercial-like packaging as a safe way to get high while avoiding drug testing. (U.S. Navy photo by Mass Communication Specialist 2nd Class Mark Logico/Released) 
Navy Weeds Out Users Of Designer Drugs 
MILLINGTON, Tenn. (NNS) -- Navy's implementation of synthetic drug testing for synthetic chemical compounds like "Spice" and "Bath Salts" is helping the service close ranks on Sailors who use these prohibited and dangerous substances, officials said July 2.

"Navy has zero tolerance for drug abuse. Drug abuse, including use of designer drugs and synthetic compounds, by members of the Navy is incompatible with high standards of performance, military discipline, and readiness as embodied by of 21st Century Sailors and Marines," said Rear Adm. Tony Kurta, director, military personnel plans and policy.

Navy reviews its testing of synthetic compounds continuously, and also continually responds to production of new controlled and synthetic compounds, changing testing procedures and pacing the changes being made by producers.

Navy has analyzed more than 3,300 urine samples for synthetic chemical compounds since testing began in March, with 101 samples testing positive. Authorized testing under the synthetic drug testing program is conducted under member consent, command directed, unit and/or subunit sweep.

NCIS will be notified of every positive sample for possible further investigation with a view towards potential disciplinary or adverse administrative action by the service member's command.

Spice is a synthetic chemical compound that is sold as herbal incense and mimics the effects of the drug marijuana. A ban was placed on five synthetic cannabis compounds commonly found in the designer drug Spice, but also sold under different names.

Some of the short-term effects include auditory and visual hallucinations, painless head pressure, panic attacks, time distortion and delirium. Long-term effects from the designer drug can include permanent physical impairment, mental illness or death.

Another synthetic chemical compound, bath salts are sold under the common names: Vanilla Sky, Ivory Wave, Pure Ivory, Purple Wave, Charge+, Ocean Burst, and Sextacy. Bath salts are a potentially addictive powdered substance that is snorted, smoked or injected. They can have an adverse effect on the heart, circulation, nervous system, similar to ecstasy or cocaine, and result in lethal overdose.

The unlawful possession or use by Department of the Navy personnel of controlled substance analogues (designer drugs), natural substances, chemicals wrongfully used as inhalants, propellants, prescribed or over-the-counter medication or pharmaceutical compound with the intent to induce intoxication, excitement or stupefaction of the central nervous system is prohibited via SECNAVINST 5300.28D. Violators are subject to punitive action under the Uniform Code of Military Justice, Article 92.

Navy's Synthetic Drug Testing Operating Guide is posted on the Navy Alcohol and Drug Abuse Prevention Office (NADAP) website and contains procedures for commands to request synthetic drug testing and synthetic drug testing information.

The Navy's zero-tolerance policy towards drug use is a key contributor to the readiness area of the 21st Century Sailor and Marine. To view the guide or for more news from NADAP, visitwww.nadap.navy.mil.

HHS GRANTS $971 MILLION FOR PUBLIC HEALTH DISASTER PREPAREDNESS

Photo Credit:  Wikimedia.
FROM:  DEPARTMENT OF HEALTH AND HUMAN SERVICES
HHS grants bolster health care and public health disaster preparedness
Systems prepared for emergencies can provide better daily care
The Department of Health and Human Services has awarded more than $971 million to continue improving preparedness and health outcomes for a wide range of public health threats within every state, eight U.S. territories, and four of the nation’s largest metropolitan areas.

“Health care and public health systems that are prepared to respond successfully to emergencies and recover quickly from all hazards are also able to deliver services more effectively and efficiently every day,” said Dr. Nicole Lurie, HHS assistant secretary for preparedness and response. “Having systems in place to provide better treatment for disaster survivors and improved public health for our communities also leads to better health outcomes on a day-to-day basis.”

The funding awards included a total of approximately $352 million awarded for the Hospital Preparedness Program (HPP) cooperative agreement and more than $619 million awarded for the Public Health Emergency Preparedness (PHEP) cooperative agreement.

Administered by the HHS Office of the Assistant Secretary for Preparedness and Response (ASPR), HPP funding supports preparedness for health care systems, health care coalitions, and health care organizations. HHS’ Centers for Disease Control and Prevention administers PHEP funding to support the preparedness of state, local, and territorial public health systems.

HPP and PHEP funding helps recipients build and sustain public health and health care preparedness capabilities outlined in ASPR’s Healthcare Preparedness Capabilities: National Guidance for Healthcare System Preparedness (PDF – 902 KB) and in CDC’s Public Health Preparedness Capabilities: National Standards for State and Local Planning. These documents establish standards for protecting human health and national health security.

For the first time, the HPP and PHEP funds are being awarded jointly, encouraging cooperation between the nation’s health care and public health systems. This change follows a year-long effort by ASPR and CDC to align the two federal preparedness programs. These programs represent critical sources of funding and support for public health and health care preparedness systems.

Improved coordination among federal emergency preparedness programs is a high priority of HHS and other federal entities, as well as for HPP and PHEP awardees. In December 2010, ASPR, CDC, and other federal partners began developing strategies to better align grants with public health and health care preparedness components.
“State and local agencies have made tremendous progress over the past decade in building and sustaining public health and health care preparedness capabilities,” Dr. Lurie said. "The integration fostered by HPP and PHEP alignment is important in streamlining and strengthening the day-to-day relationships and cross-sector cooperation that are critical to achieving a resilient health system ready to face any health hazard and capable of providing the affordable, high-quality daily care that all Americans deserve.”

With aligned HPP and PHEP cooperative agreement programs, states and communities can more easily, efficiently, and effectively conduct joint planning, exercising, and program operations. These activities are vital in preparing communities to respond and recover from emergencies and help communities manage health care and public health on a daily basis.

Dr. Lurie noted that as access to health care increases, more Americans are likely to seek care from primary care providers and health clinics to address these day-to-day health issues rather than visiting emergency departments. With fewer people seeking basic care in emergency rooms, hospitals can care for a greater number of patients during emergencies.
ASPR and CDC aligned HPP and PHEP cooperative agreements to advance all-hazards preparedness and national health security, promote responsible stewardship of federal funds, and reduce the administrative burden for grant recipients. The programs support complementary preparedness capabilities and performance measures, use the same processes for grants administration, technical assistance and data management, use common reporting requirements, and have compatible IT systems.

While closely aligned in many aspects, HPP and PHEP will continue to remain individual programs, in accordance with authorizing legislation. HPP and PHEP budgets also will remain separate, to ensure accountability for the statutory requirements of each separate funding stream.

This alignment has resulted in several key changes for the 2012 HPP-PHEP grant cycle. Among the changes are a single HPP-PHEP funding opportunity announcement, funding application, and grant award, as well as a single grants administration agency, CDC’s Procurement and Grants Office. An aligned grant cycle is also being implemented, with the annual HPP-PHEP grant cycle beginning each July 1 and ending on June 30 of the following year.

To learn more about HPP and PHEP including grant awards to individual states, territories or localities, visithttp://www.cdc.gov/about/organization/ophpr.htm.

FUND ADVISER SUED BY SEC FOR ALLEGED BREACH OF DUTY

FROM:  SECURITIES AND EXCHANGE COMMISSION
SEC Sues Fund Adviser for Fees Charged in Breach of Duty Under the Investment Company Act
Washington, D.C., June 26, 2012 — The Securities and Exchange Commission today sued AMMB Consultant Sendirian Berhad (AMC), a Malaysian investment adviser, alleging that for more than a decade, AMC charged a U.S. registered fund for advisory services that AMC did not provide. The SEC alleges that by doing so, AMC breached its fiduciary duty with respect to compensation under the Investment Company Act of 1940.

Kuala Lumpur-based AMC served as a sub-adviser to the Malaysia Fund, Inc., a closed-end fund that invests in Malaysian companies, whose principal investment adviser is Morgan Stanley Investment Management, Inc. (MSIM). The SEC alleges that AMC misrepresented its services during the fund’s annual advisory agreement review process for each year for more than 10 years, and AMC collected fees for advisory services that it did not provide.

AMC, a unit of AMMB Holdings Berhad, one of Malaysia’s largest banking groups, agreed to pay $1.6 million to settle the SEC’s charges, without admitting or denying the allegations. The case follows the SEC’s recent related action against the Malaysia Fund’s primary adviser, MSIM, and is part of an inquiry into the investment advisory contract renewal process by the SEC Enforcement Division’s Asset Management Unit.
“We are committed to ensuring that advisers to registered funds adhere to their fiduciary duty with respect to the receipt of compensation. Here, AMC breached that duty by charging fees for services that were not rendered,” said Bruce Karpati, Chief of the Asset Management Unit in the SEC’s Division of Enforcement.

AMC’s advisory fees were approved each year from 1996 to 2007 as part of the “15(c) process,” a reference to Section 15(c) of the Investment Company Act of 1940, which requires a registered fund’s board to annually evaluate the fund’s advisory agreements, and advisers to provide the board with information reasonably necessary to make that evaluation.

According to the SEC, AMC submitted a report to the Malaysia Fund’s board of directors each year that falsely claimed that AMC was providing specific advice, research, and assistance to MSIM for the benefit of the fund. In reality, the SEC’s complaint said AMC’s services were limited to providing two monthly reports based on publicly available information that MSIM did not request or use. Moreover, the SEC alleged that AMC failed to adopt and implement adequate policies, procedures, and controls over its advisory business, contrary to certifications provided to the fund’s directors in 2006 and 2007. AMC’s advisory agreement with the fund was terminated in early 2008 after the SEC’s examination staff inquired about the services AMC was purportedly providing to the fund.

The SEC’s complaint, filed in the U.S. District Court for the District of Columbia, alleges that AMC breached its fiduciary duty with respect to the receipt of compensation within the meaning of Section 36(b) of the Investment Company Act of 1940. The SEC also alleges that AMC violated Sections 206(2) and (4) of the Investment Advisers Act of 1940, and Rule 206(4)-7 thereunder, and Section 15(c) of the Investment Company Act of 1940. AMC consented to a judgment that bars it from violating these provisions in the future. AMC has also agreed to disgorge $1.3 million of its advisory fees paid by the fund and pay a $250,000 penalty.

Chad Alan Earnst, Christine Lynch, and Jessica Weiner, of the Enforcement Division’s Asset Management Unit staff, conducted the investigation along with Tonya Tullis and Edward D. McCutcheon. Karen Stevenson, Susan Schneider, and Dennis Delaney conducted the related examinations.

The SEC acknowledges the assistance of the Securities Commission of Malaysia and the Monetary Authority of Singapore.

U.S. SECRETARY OF STATE PANETTA WELCOMES OPENING OF SUPPLY LINES BY PAKISTAN

FROM:  AMERICAN FORCES PRESS SERVICE

By Cheryl Pellerin
WASHINGTON, July 3, 2012 - Defense Secretary Leon E. Panetta today welcomed Pakistan's decision to open ground lines of communication on the border with Afghanistan that have been closed since November.
Secretary of State Hillary Rodham Clinton announced the decision after a telephone call this morning with Pakistani Foreign Minister Hina Rabbani Khar.


"As I have made clear," Panetta said, "we remain committed to improving our partnership with Pakistan and to working closely together as our two nations confront common security challenges in the region."


On the call with Khar, Clinton said, "I once again reiterated our deepest regrets for the tragic incident in Salala last November. I offered our sincere condolences to the families of the Pakistani soldiers who lost their lives."


Clinton and Khar acknowledged the mistakes that resulted in the loss of Pakistani military lives, she added.


"We are sorry for the losses suffered by the Pakistani military," she added. "We are committed to working closely with Pakistan and Afghanistan to prevent this from ever happening again."


In reopening the ground lines of communication, Pakistan will not charge transit fees in the larger interest of peace and security in Afghanistan and the region, Clinton said.


"This is a tangible demonstration of Pakistan's support for a secure, peaceful and prosperous Afghanistan and our shared objectives in the region," she said, adding that the move will help the United States and the International Security Assistance Force conduct the planned drawdown at a much lower cost.
"This is critically important to the men and women who are fighting terrorism and extremism in Afghanistan," Clinton said.


Khar said no lethal equipment will transit Pakistan into Afghanistan unless it is meant to equip the Afghan national security force.


During the call, Khar and Clinton discussed the importance of taking coordinated action against terrorists who threaten Pakistan, the United States and the region, she said.


Clinton said she and Khar also discussed supporting Afghanistan's security, stability and efforts towards reconciliation, and continuing to work together to advance the two nations' many other shared interests, from increasing trade and investment to strengthening our people-to-people ties.


"Our countries should have a relationship that is enduring, strategic and carefully defined, and that enhances the security and prosperity of both our nations and the region," the secretary said.


U.S. and Pakistani troops are in a fight against a common enemy, she said, and have enhanced counterterrorism cooperation against terrorists that threaten both countries, with the goal of defeating al-Qaida in the region.


As the call ended, Clinton said, "I reiterated our deep appreciation to the government and the people of Pakistan for their many sacrifices and their critical contribution to the ongoing fight against terrorism and extremism."

C-130 MODULAR AIRBORNE FIREFIGHTING SYSTEM FLEET RESUMES OPERATIONS

Photo:  C130 Aircraft Fighting Wildfire.  Credit:  U.S. Air Force.
FROM:  U.S. DEPARTMENT OF DEFENSE
From a U.S. Northern Command News Release
PETERSON AIR FORCE BASE, Colo., July 3, 2012 – The military’s C-130 Modular Airborne Fire-Fighting System fleet will resume operations today to support the National Interagency Fire Center and its firefighters battling wildfires in several states, U.S. Northern Command officials said.
Operational flying was suspended yesterday to review flying and safety procedures after the July 1 crash of a MAFFS C-130 while fighting South Dakota's White Draw Fire. An official investigation into the crash is ongoing.

SOYUZ TMA-03M SPACECRAFT LANDS

The Soyuz TMA-03M spacecraft is seen as it lands with Expedition 31 Commander Oleg Kononenko of Russia and Flight Engineers Don Pettit of NASA and Andre Kuipers of the European Space Agency in a remote area near the town of Zhezkazgan, Kazakhstan, on Sunday, July 1, 2012. Pettit, Kononenko and Kuipers returned from more than six months onboard the International Space Station where they served as members of the Expedition 30 and 31 crews. Image Credit: NASA/Bill Ingalls

U.S. GOVERNMENT PROGRAM BOLSTERS RELATIONS IN SOUTH AMERICAN NATIONS

FROM:  AMERICAN FORCES PRESS SERVICE
 Excitement builds in El Rancho, Guatemala, as hundreds of local residents gather for the opening of a new medical clinic built by U.S. service members during U.S. Southern Command's Beyond the Horizons humanitarian civic assistance exercise, June 26, 2012. DOD photo by Donna Miles  

'Beyond the Horizons' Strengthens Bonds in Guatemala, Honduras
By Donna Miles
EL RANCHO, Guatemala, June 27, 2012 - Celebration filled this tiny mountain town yesterday, as hundreds of residents pulled out all the stops to mark the opening of a new medical clinic and to thank the U.S. service members who built it as part of U.S. Southern Command's Beyond the Horizons 2012 mission.

Women and young children dressed in a rainbow of colors began gathering long before the ceremony, with the local men looking on proudly as they awaited a musical procession toward the balloon- and ribbon-decked clinic. Schoolchildren waved Guatemalan and U.S. flags as they led members of Naval Mobile Construction Battalion 23 up a steep hill toward the gleaming blue-and-white structure the Seabees spent the last two and a half months building.

The Seabees -- Navy reservists based at Fort Belvoir, Va. -- are among almost 1,300 soldiers, airmen and sailors who have brought engineering, construction and health care services to Guatemala and Honduras since Beyond the Horizon kicked off in April.

In Guatemala alone, they collectively built a school and two new medical clinics, including the one here. They also renovated two other schools and a medical clinic.

The troops also sponsored three medical readiness exercises, providing free medical care in three local communities.

Army Maj. Orlando Ortega, Southcom's lead planner for Beyond the Horizons and its New Horizons sister mission in Peru, called the comprehensive humanitarian civic assistance exercises an opportunity for U.S. service members to receive valuable engineering and medical training while fostering stronger partnerships in the region.

The 90-day exercises are Southcom's largest involving ground troops in its area of responsibility, which includes Central and South America and the Caribbean. Many of the participants have been National Guard soldiers and airmen who served two- to four-week rotations in Guatemala or Honduras.

"These are joint ventures, with all services in the United States and within the host nation participating together and learning from each other," Ortega said.

U.S. Army South is leading the Beyond the Horizons exercises in Honduras and Guatemala, and U.S. Air Forces Southern is leading New Horizons.

With each concrete block laid and each patient treated, the missions help build closer relationships between the United States and its regional partners while demonstrating long-term U.S. commitment, Ortega said.

"This is a win-win situation for everyone. Our troops get training. The host nation forces get training. And in doing so, they leave something very tangible behind," he said. "And the local people appreciate that. You can see it on their faces, the fact that they know this is going to improve their communities."

Army Lt. Col. John Findley, a Missouri National Guardsman who served as commander of the Partnership of the Americas Cooperation and Collaboration Element overseeing the exercise in Guatemala, said the biggest reward was watching relationships unfold between the U.S. forces and the Guatemalans.

"The thing I really liked was the exchanging of experiences," he said. Guatemalan and U.S. doctors shared expertise as they treated cases that most medical staffs simply don't see in the United States. National Guard engineers, many of whom had focused predominantly on route-clearance operations in Afghanistan and Iraq, got a chance to return to basic engineering skills.

"Our biggest goal is to ensure that the soldiers, airmen and Seabees got valuable training in their job specialties," Findley said. "But there's also been another huge takeaway: that sense of accomplishment that comes from doing something good for a community and seeing the real benefit of that work."

Findley said he enjoyed watching the Guatemalan children grow attached to him and his troops. "At first, the kids were scared of us, but now it's all big smiles, high-fives and knuckle bumps," he said.

Naval Mobile Construction Battalion 23 experienced that growing acceptance as they put their skills to work on the 23-by-60-foot, concrete-block medical clinic here. It includes offices and a kitchen, and will serve 30,000 to 40,000 people in six communities.
The Seabees got so excited about the project that they took it the extra mile, also redoing the water and septic system that serves the facility and building a three-stall latrine, benches from scrap wood and a cooking pit, explained Navy Lt. Jeff Dong, the officer in charge.

"You know that you are making a sacrifice of your own time, but when you see how much it will do, it gives you a good, warm feeling," he said. "To be able to do something like this that will make such a difference for so many people is really rewarding."
Navy Petty Officer 2nd Class Al Baldassarre, participating in his first humanitarian assistance mission, said he enjoyed watching the growing anticipation among the local residents as the clinic took shape.

While knowing he and his fellow Seabees were making a valuable contribution to the community, Navy Petty Officer 1st Class Jeff Ambrose, lead petty officer for the project, said the experience also underscored his unit's full range of capabilities. "It reinforced that we actually are a mobile battalion, and that we can pick up and go anywhere and have the capability of doing our job," he said.

As Guatemalan community leaders expressed thanks to the United States and its military during yesterday's ceremony, Findley said everyone ultimately benefited through the Beyond the Horizons experience.

"By participating in this project, our soldiers have gained valuable experiences and opportunities that will be a lasting legacy of our partnership together," he told the group.
That sentiment is captured on a plaque affixed outside the front door of the new medical clinic: "This project was possible, thanks to the cooperation of the governments of Guatemala and the United States of America as a symbol of friendship between our countries."

"Beyond the Horizons is just part of the progress we can achieve together" as partners, Findley told yesterday's gathering. "I am confident that, working together, there is nothing we cannot achieve."

SECRETARY OF STATE CLINTON OFFERS CONDOLENCES FOR PAKISTANIS KILLED IN SALALA INCIDENT

FROM:  U.S. STATE DEPARTMENT
Statement by Secretary Clinton on her Call With Pakistani Foreign Minister Khar
Press Statement Hillary Rodham Clinton
Secretary of State Washington, DC
July 3, 2012
This morning, I spoke by telephone with Pakistani Foreign Minister Hina Rabbani Khar.
I once again reiterated our deepest regrets for the tragic incident in Salala last November. I offered our sincere condolences to the families of the Pakistani soldiers who lost their lives. Foreign Minister Khar and I acknowledged the mistakes that resulted in the loss of Pakistani military lives. We are sorry for the losses suffered by the Pakistani military. We are committed to working closely with Pakistan and Afghanistan to prevent this from ever happening again.

As I told the former Prime Minister of Pakistan days after the Salala incident, America respects Pakistan’s sovereignty and is committed to working together in pursuit of shared objectives on the basis of mutual interests and mutual respect.

In today’s phone call, Foreign Minister Khar and I talked about the importance of taking coordinated action against terrorists who threaten Pakistan, the United States, and the region; of supporting Afghanistan’s security, stability, and efforts towards reconciliation; and of continuing to work together to advance the many other shared interests we have, from increasing trade and investment to strengthening our people-to-people ties. Our countries should have a relationship that is enduring, strategic, and carefully defined, and that enhances the security and prosperity of both our nations and the region.

The Foreign Minister and I were reminded that our troops – Pakistani and American – are in a fight against a common enemy. We are both sorry for losses suffered by both our countries in this fight against terrorists. We have enhanced our counter-terrorism cooperation against terrorists that threaten Pakistan and the United States, with the goal of defeating Al-Qaida in the region.

In addition, I am pleased that Foreign Minister Khar has informed me that the ground supply lines (GLOC) into Afghanistan are opening. Pakistan will continue not to charge any transit fee in the larger interest of peace and security in Afghanistan and the region. This is a tangible demonstration of Pakistan’s support for a secure, peaceful, and prosperous Afghanistan and our shared objectives in the region. This will also help the United States and ISAF conduct the planned drawdown at a much lower cost. This is critically important to the men and women who are fighting terrorism and extremism in Afghanistan. Foreign Minister Khar has informed me that, consistent with current practice, no lethal equipment will transit the GLOC into Afghanistan except for equipping the ANSF. In concluding the call, I reiterated our deep appreciation to the Government and the people of Pakistan for their many sacrifices and their critical contribution to the ongoing fight against terrorism and extremism.

LABOR DEPARTMENT ANNOUNCES GRANTS FOR HOMELESS VET TRAINING

FROM:  DEPARTMENT OF LABOR NEWS RELEASE 
Labor Department Announces Grants to Train Homeless Vets
From a Department of Labor News Release
WASHINGTON, July 2, 2012 - The Labor Department today awarded 90 grants totaling more than $20 million to fund job training and support services that officials said will help more than 11,000 veterans succeed in civilian careers.
The grants are being awarded through the department's Homeless Veterans Reintegration Program.

"Americans who have served their country should not find themselves without a home," Labor Secretary Hilda L. Solis said. "The grants announced today will help these heroes find good jobs and take us one step closer to the goal of ending veteran homelessness altogether."

The grants are second- and third-year awards to state and local workforce investment boards, local public agencies and nonprofit organizations -- including faith-based and community organizations -- that demonstrated satisfactory performance during the past year, officials said. Some of the grants are set aside to serve formerly incarcerated veterans, female veterans and veterans with families who are homeless.

Homeless Veterans Reintegration Program grants provide occupational, classroom and on-the-job training, as well as job search and placement assistance, including follow-up services. Grantees are expected to maximize available assistance and find good jobs for veterans by coordinating efforts and resources with the Health and Human Services, Veterans Affairs, and Housing and Urban Development department, as well as other national, state and local agencies, in accordance with VA's five-year plan to end homelessness for veterans and their families, officials said.

Last month, Solis announced the award of 64 grants through the Homeless Veterans Reintegration Program. Those grants -- which are separate from the 90 receiving funds today -- are first-year awards totaling more than $15 million, aimed at providing about 8,600 homeless veterans nationwide with job training.

A NAVY RESEARCH FLOATING INSTRUMENT PLATFORM PARTIALLY SUBMERGED

FROM:  U.S. NAVY
The Floating Instrument Platform, or FLIP, is partially submerged in the Pacific Ocean. the 355-foot research vessel, owned by the Office of Naval Research (ONR) and operated by the Marine Physical Laboratory at Scripps Institution of Oceanography at University of California, is celebrating 50 years of operation. FLIP conducts investigations in acoustics, oceanography, meteorology and marine mammal observation. U.S. Navy photo by John F. Williams (Released) 120630-N-PO203-274

ARIZONA COMPANY TO PAY $10 MILLION TO RESOLVE FALSE CLAIMS ACT ALLEGATIONS

FROM:  U.S. DEPARTMENT OF JUSTICE
Monday, July 2, 2012
Arizona-based Nextcare Inc. to Pay US $10 Million to Resolve False Claims Act AllegationsAllegedly Charged for Unnecessary Testing and Inflated Billing for Urgent Care Medical Services
NextCare Inc., an Arizona-based company, has agreed to pay $10 million to settle federal and state allegations that it submitted false claims, the Justice Department announced today.  NextCare is an owner of a chain of urgent care facilities with locations in Arizona, Colorado, Texas, North Carolina, Ohio and Virginia.

The settlement resolves allegations that NextCare submitted false claims to Medicare, TRICARE and the Federal Employees Health Benefits Program, as well as the Medicaid programs of Colorado, Virginia, Texas, North Carolina and Arizona, by billing for unnecessary allergy, H1N1 virus and respiratory panel testing.   The United States also alleged that NextCare inflated billings for urgent care medical services in the years under review, a practice known as upcoding.

“This settlement demonstrates the Justice Department’s commitment to ensuring that federal health care dollars are spent appropriately,” said Stuart Delery, Acting Assistant Attorney General for the Civil Division. “Health care providers who administer unnecessary services or who overcharge for care will be held accountable.”

Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina, noted that, “Today’s $10 million settlement with NextCare demonstrates our commitment to putting a stop to improper billing practices that exploit Medicare and drain vital resources from our health care system.   NextCare’s upcoding and unnecessary medical testing wasted taxpayers’ dollars.  This is a strong message to companies and individuals who engage in such conduct.   We are here, we are watching, and we will use all of our resources to safeguard the integrity of important public programs and protect consumers across the nation.”

Daniel R. Levinson, Inspector General of the Department of Health and Human Services (HHS-OIG), added, “P roviders who subject beneficiaries to unnecessary medical testing, as alleged against NextCare, compromise the well-being of their patients and squander Federal health care funds .”

As a condition of the settlement, NextCare Inc. is also required to enter into a Corporate Integrity Agreement with HHS-OIG under which the company will be monitored for a period of five years to ensure that in the future it complies with all federal healthcare program rules.

The allegations resolved by today’s settlement were initially raised in a lawsuit filed against NextCare by former NextCare employee Lorin Cohen.   Under the False Claims Act, private citizens acting as relators can bring suit on behalf of the United States and share in the recovery.  Ms. Cohen will receive $1.614 million as her share of the recovery.

This resolution is part of the government’s emphasis on combating health care fraud and another step forward for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, a collaborative effort launched in May 2009 by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services (HHS).  Settlements such as this one emphasize both the Department of Justice and HHS's commitment to the reduction and prevention of Medicare and Medicaid financial fraud.   Through the False Claims Act alone, the Justice Department has recovered more than $7.7 billion since January 2009 in cases involving fraud against federal health care programs.   The Justice Department's total recoveries in False Claims Act cases since January 2009 are over $11.3 billion.

This matter was handled jointly by the Civil Division of the United States Department of Justice, the U.S. Attorney’s Office for the Western District of North Carolina, the FBI, the North Carolina Attorney General’s Office, the Office of Inspector General of the Department of Health and Human Services (HHS-OIG), the TRICARE Management Activity and the Office of Personnel Management (OPM), which administers the FEHBP.   The claims settled by this agreement are allegations only, and there has been no determination of liability.

PRESIDENT OBAMA SAYS FIREFIGHTING AIRMEN ARE HEROS

FROM:  AMERICAN FORCES PRESS SERVICE
Obama Calls Firefighting Airmen Heroes
American Forces Press Service
WASHINGTON, July 2, 2012 - President Barack Obama released a statement today calling the airmen battling wildfires in the Rocky Mountain region "heroes who deserve the appreciation of a grateful nation."

The statement comes following a crash yesterday of a North Carolina Air National Guard C-130 as its crew was battling a wildfire in South Dakota.
Here is the president's statement:

Yesterday, a military C-130 from the North Carolina Air National Guard crashed while supporting firefighting efforts in South Dakota. The full details are still under investigation, but the crew of this flight – along with their families and loved ones – are in our thoughts and prayers.

The men and women battling these terrible fires across the West put their lives on the line every day for their fellow Americans. The airmen who attack these fires from above repeatedly confront dangerous conditions in an effort to give firefighters on the ground a chance to contain these wildfires – to save homes, businesses, schools, and entire communities. They are heroes who deserve the appreciation of a grateful nation.
I know Americans across the country share my concern for the well-being of the surviving members of the crew and my deep condolences to the families of those who lost their lives. And I know that Americans join me in expressing my deepest gratitude for the selfless determination they and thousands of men and women involved in this fight in states across the country demonstrate every day.

SECRETARY OF EDUCATION DUNCAN'S STATEMENT ON "CIVIL RIGHTS ACT OF 1964" ANNIVERSARY

FROM:  U.S. DEPARTMENT OF EDUCATION
Statement from U.S. Secretary of Education Arne Duncan on the Anniversary of The Civil Rights Act of 1964
JULY 2, 2012
"Forty-eight years ago today, President Johnson signed the Civil Rights Act of 1964 into law. Title VI of the Civil Rights Act states, 'No person in the United States shall, on the basis of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity receiving Federal financial assistance.'

"In the education arena, Title VI applies to all elementary and secondary schools, colleges and universities—public or private—that receive federal financial assistance, and its protection extends to all aspects of these institutions' programs and activities. Title VI also prohibits denial of equal access to college- and career-preparatory courses and programs and to other educational opportunities for English learners, as well as discriminatory discipline, harassment, or other barriers to equal education.

"The progress we've made toward fulfilling the promise of equal educational opportunities is marked by significant advances made by people of color across the nation. From the rising number of racial minorities with high school diplomas and bachelor's degrees to the increased attention and services designed to meet the educational needs of English learners, we have much to be proud of.

"But serious work remains to ensure equal opportunity for all students. A significant achievement gap persists between people of color and other groups. The high school graduation and bachelor's degree rates for Black, Hispanic, American Indian, and Alaska Native students and other racial and ethnic minorities are still far lower than those for whites. Too many English learners still lack the instruction and services they need to be successful. As we are learning from the Civil Rights Data Collection, students of certain racial and ethnic backgrounds are receiving harsher discipline than other students. And there are too many racially isolated schools with unequal access to critical opportunities and programs. These trends are particularly troubling in an increasingly global economy where a postsecondary degree or certificate is more necessary than ever for a stable, well-paying career.

"So while today is an occasion to celebrate the progress this nation has made under Title VI, continuing that progress will require a sustained commitment to an equal education for all students. The Department's Office for Civil Rights will continue the legacy the Civil Rights Act of 1964 by vigorously enforcing Title VI and working to help end illegal discrimination in our nation's schools so that all children can learn and succeed."

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N.C. RESIDENT PLEADS GUILTY FOR PART IN $63 MILLION MEDICARE FRAUD SCHEME

FROM:  U.S. DEPARTMENT OF JUSTICE
Monday, July 2, 2012Asheville, North Carolina, Resident Pleads Guilty to Participating in $63 Million Medicare Fraud Scheme

WASHINGTON – An Asheville, N.C., resident pleaded guilty today in U.S. District Court in Miami for her role in a health care fraud scheme that resulted in the submission of more than $63 million in fraudulent claims to Medicare and Medicaid in Miami and Hendersonville, N.C., announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).

Serena Joslin, 31, a Licensed Psychological Associate, pleaded guilty before U.S. District Judge Cecilia M. Altonaga in Miami to one count of conspiracy to commit health care fraud.  Joslin admitted to participating in a fraud scheme that was orchestrated through an entity called Health Care Solutions Network (HCSN).  HCSN operated purported partial hospitalization programs (PHPs), a form of intensive mental health treatment for severe mental illness, in both Miami and Hendersonville.

According to an indictment unsealed on May 2, 2012, HCSN obtained Medicare beneficiaries to attend HCSN for purported PHP treatment that was unnecessary and, in many instances, not provided.  HCSN obtained those beneficiaries by paying kickbacks to owners and operators of assisted living facilities (ALFs) or by otherwise recruiting them from ALFs and nursing homes.  According to court documents, Joslin admitted that she was aware that HCSN recruited patients who were inappropriate for PHP treatment.  Nevertheless, Joslin agreed with other HCSN employees to, among other things, fabricate therapy notes and other medical records, and to direct therapists to fabricate therapy notes and other medical records, all to make it appear as if HCSN patients received appropriate PHP services.  Joslin was aware that fraudulent claims to Medicare would be submitted on behalf of these patients.

At sentencing, scheduled for Jan. 11, 2013, Joslin faces a maximum of 10 years in prison and a $250,000 fine.

Eight other charged defendants, including the owner and operators of HCSN, await trial before Judge Altonaga.  Defendants are presumed innocent until proven guilty at trial.
Today’s guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Xanthi C. Mangum, Acting Special Agent-in-Charge of the FBI’s Miami Field Office; and Special Agent-in-Charge Christopher B. Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
The case is being prosecuted by Trial Attorneys Steven Kim, William Parente and Allan Medina of the Criminal Division’s Fraud Section.  The case was investigated by the FBI, HHS-OIG and Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.

Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,330 defendants who collectively have falsely billed the Medicare program for more than $4 billion.  In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

GLAXOSMITHKLINE LLC PLEADS GUILTY TO CRIMINAL AND CIVIL CHARGES AND WILL PAY $3 BILLION

FROM:  U.S. DEPARTMENT OF JUSTICE
Monday, July 2, 2012
GlaxoSmithKline to Plead Guilty and Pay $3 Billion to Resolve Fraud Allegations and Failure to Report Safety DataLargest Health Care Fraud Settlement in U.S. History

Global health care giant GlaxoSmithKline LLC (GSK) agreed to plead guilty and to pay $3 billion to resolve its criminal and civil liability arising from the company’s unlawful promotion of certain prescription drugs, its failure to report certain safety data, and its civil liability for alleged false price reporting practices, the Justice Department announced today.   The resolution is the largest health care fraud settlement in U.S. history and the largest payment ever by a drug company.

GSK agreed to plead guilty to a three-count criminal information, including two counts of introducing misbranded drugs, Paxil and Wellbutrin, into interstate commerce and one count of failing to report safety data about the drug Avandia to the Food and Drug Administration (FDA).  Under the terms of the plea agreement, GSK will pay a total of $1 billion, including a criminal fine of $956,814,400 and forfeiture in the amount of $43,185,600.   The criminal plea agreement also includes certain non-monetary compliance commitments and certifications by GSK’s U.S. president and board of directors.   GSK’s guilty plea and sentence is not final until accepted by the U.S. District Court.

GSK will also pay $2 billion to resolve its civil liabilities with the federal government under the False Claims Act, as well as the states.   The civil settlement resolves claims relating to Paxil, Wellbutrin and Avandia, as well as additional drugs, and also resolves pricing fraud allegations.

“Today’s multi-billion dollar settlement is unprecedented in both size and scope. It underscores the Administration’s firm commitment to protecting the American people and holding accountable those who commit health care fraud,” said James M. Cole, Deputy Attorney General.   “At every level, we are determined to stop practices that jeopardize patients’ health, harm taxpayers, and violate the public trust – and this historic action is a clear warning to any company that chooses to break the law.”

“Today’s historic settlement is a major milestone in our efforts to stamp out health care fraud,” said Bill Corr, Deputy Secretary of the Department of Health and Human Services (HHS). “For a long time, our health care system had been a target for cheaters who thought they could make an easy profit at the expense of public safety, taxpayers, and the millions of Americans who depend on programs like Medicare and Medicaid. But thanks to strong enforcement actions like those we have announced today, that equation is rapidly changing.”

This resolution marks the culmination of an extensive investigation by special agents from HHS-OIG, FDA and FBI, along with law enforcement partners across the federal government. Moving forward, GSK will be subject to stringent requirements under its corporate integrity agreement with HHS-OIG; this agreement is designed to increase accountability and transparency and prevent future fraud and abuse. Effective law enforcement partnerships and fraud prevention are hallmarks of the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which fosters government collaboration to fight fraud.

Criminal Plea Agreement 
Under the provisions of the Food, Drug and Cosmetic Act, a company in its application to the FDA must specify each intended use of a drug.   After the FDA approves the product as safe and effective for a specified use, a company’s promotional activities must be limited to the intended uses that FDA approved.   In fact, promotion by the manufacturer for other uses – known as “off-label uses” – renders the product “misbranded.”

Paxil:   In the criminal information, the government alleges that, from April 1998 to August 2003, GSK unlawfully promoted Paxil for treating depression in patients under age 18, even though the FDA has never approved it for pediatric use.   The United States alleges that, among other things, GSK participated in preparing, publishing and distributing a misleading medical journal article that misreported that a clinical trial of Paxil demonstrated efficacy in the treatment of depression in patients under age 18, when the study failed to demonstrate efficacy.  At the same time, the United States alleges, GSK did not make available data from two other studies in which Paxil also failed to demonstrate efficacy in treating depression in patients under 18.   The United States further alleges that GSK sponsored dinner programs, lunch programs, spa programs and similar activities to promote the use of Paxil in children and adolescents.   GSK paid a speaker to talk to an audience of doctors and paid for the meal or spa treatment for the doctors who attended. Since 2004, Paxil, like other antidepressants, included on its label a “black box warning” stating that antidepressants may increase the risk of suicidal thinking and behavior in short-term studies in patients under age 18. GSK agreed to plead guilty to misbranding Paxil in that its labeling was false and misleading regarding the use of Paxil for patients under 18.

Wellbutrin:  The United States also alleges that, from January 1999 to December 2003, GSK promoted Wellbutrin, approved at that time only for Major Depressive Disorder, for weight loss, the treatment of sexual dysfunction, substance addictions and Attention Deficit Hyperactivity Disorder, among other off-label uses. The United States contends that GSK paid millions of dollars to doctors to speak at and attend meetings, sometimes at lavish resorts, at which the off-label uses of Wellbutrin were routinely promoted and also used sales representatives, sham advisory boards, and supposedly independent Continuing Medical Education (CME) programs to promote Wllbutrin for these unapproved uses. GSK has agreed to plead guilty to misbranding Wellbutrin in that its labeling did not bear adequate directions for these off-label uses. For the Paxil and Wellbutrin misbranding offenses, GSK has agreed to pay a criminal fine and forfeiture of $757,387,200.

Avandia:    The United States alleges that, between 2001 and 2007, GSK failed to include certain safety data about Avandia, a diabetes drug, in reports to the FDA that are meant to allow the FDA to determine if a drug continues to be safe for its approved indications and to spot drug safety trends.   The missing information included data regarding certain post-marketing studies, as well as data regarding two studies undertaken in response to European regulators’ concerns about the cardiovascular safety of Avandia.   Since 2007, the FDA has added two black box warnings to the Avandia label to alert physicians about the potential increased risk of (1) congestive heart failure, and (2) myocardial infarction (heart attack).   GSK has agreed to plead guilty to failing to report data to the FDA and has agreed to pay a criminal fine in the amount of $242,612,800 for its unlawful conduct concerning Avandia.

“This case demonstrates our continuing commitment to ensuring that the messages provided by drug manufacturers to physicians and patients are true and accurate and that decisions as to what drugs are prescribed to sick patients are based on best medical judgments, not false and misleading claims or improper financial inducements,” said Carmen Ortiz, U.S. Attorney for the District of Massachusetts.

  “Patients rely on their physicians to prescribe the drugs they need,” said John Walsh, U.S. Attorney for Colorado. “The pharmaceutical industries’ drive for profits can distort the information provided to physicians concerning drugs.  This case will help to ensure that your physician will make prescribing decisions based on good science and not on misinformation, money or favors provided by the pharmaceutical industry.”

Civil Settlement Agreement 
As part of this global resolution, GSK has agreed to resolve its civil liability for the following alleged conduct:   (1) promoting the drugs Paxil, Wellbutrin, Advair, Lamictal and Zofran for off-label, non-covered uses and paying kickbacks to physicians to prescribe those drugs as well as the drugs Imitrex, Lotronex, Flovent and Valtrex; (2) making false and misleading statements concerning the safety of Avandia; and (3) reporting false best prices and underpaying rebates owed under the Medicaid Drug Rebate Program.

Off-Label Promotion and Kickbacks: The civil settlement resolves claims set forth in a complaint filed by the United States alleging that, in addition to promoting the drugs Paxil and Wellbutrin for unapproved, non-covered uses, GSK also promoted its asthma drug, Advair, for first-line therapy for mild asthma patients even though it was not approved or medically appropriate under these circumstances. GSK also promoted Advair for chronic obstructive pulmonary disease with misleading claims as to the relevant treatment guidelines. The civil settlement also resolves allegations that GSK promoted Lamictal, an anti-epileptic medication, for off-label, non-covered psychiatric uses, neuropathic pain and pain management.   It further resolves allegations that GSK promoted certain forms of Zofran, approved only for post-operative nausea, for the treatment of morning sickness in pregnant women. It also includes allegations that GSK paid kickbacks to health care professionals to induce them to promote and prescribe these drugs as well as the drugs Imitrex, Lotronex, Flovent and Valtrex.   The United States alleges that this conduct caused false claims to be submitted to federal health care programs.

GSK has agreed to pay $1.043 billion relating to false claims arising from this alleged conduct. The federal share of this settlement is $832 million and the state share is $210 million.

This off-label civil settlement resolves four lawsuits pending in federal court in the District of Massachusetts under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery.

Avandia: In its civil settlement agreement, the United States alleges that GSK promoted Avandia to physicians and other health care providers with false and misleading representations about Avandia’s safety profile, causing false claims to be submitted to federal health care programs. Specifically, the United States alleges that GSK stated that Avandia had a positive cholesterol profile despite having no well-controlled studies to support that message. The United States also alleges that the company sponsored programs suggesting cardiovascular benefits from Avandia therapy despite warnings on the FDA-approved label regarding cardiovascular risks.   GSK has agreed to pay $657 million relating to false claims arising from misrepresentations about Avandia. The federal share of this settlement is $508 million and the state share is $149 million.

Price Reporting:  GSK is also resolving allegations that, between 1994 and 2003, GSK and its corporate predecessors reported false drug prices, which resulted in GSK’s underpaying rebates owed under the Medicaid Drug Rebate Program. By law, GSK was required to report the lowest, or “best” price that it charged its customers and to pay quarterly rebates to the states based on those reported prices. When drugs are sold to purchasers in contingent arrangements known as “bundles,” the discounts offered for the bundled drugs must be reallocated across all products in the bundle proportionate to the dollar value of the units sold. The United States alleges that GSK had bundled sales arrangements that included steep discounts known as “nominal” pricing and yet failed to take such contingent arrangements into account when calculating and reporting its best prices to the Department of Health and Human Services. Had it done so, the effective prices on certain drugs would have been different, and, in some instances, triggered a new, lower best price than what GSK reported. As a result, GSK underpaid rebates due to Medicaid and overcharged certain Public Health Service entities for its drugs, the United States contends. GSK has agreed to pay $300 million to resolve these allegations, including $160,972,069 to the federal government, $118,792,931 to the states, and $20,235,000 to certain Public Health Service entities who paid inflated prices for the drugs at issue.

Except to the extent that GSK has agreed to plead guilty to the three-count criminal information, the claims settled by these agreements are allegations only, and there has been no determination of liability.

“This landmark settlement demonstrates the Department’s commitment to protecting the American public against illegal conduct and fraud by pharmaceutical companies,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “Doctors need truthful, fair, balanced information when deciding whether the benefits of a drug outweigh its safety risks.  By the same token, the FDA needs all necessary safety-related information to identify safety trends and to determine whether a drug is safe and effective.  Unlawful promotion of drugs for unapproved uses and failing to report adverse drug experiences to the FDA can tip the balance of those important decisions, and the Justice Department will not tolerate attempts by those who seek to corrupt our health care system in this way.”

Non-monetary Provisions and Corporate Integrity Agreement 
In addition to the criminal and civil resolutions, GSK has executed a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services, Office of Inspector General (HHS-OIG).   The plea agreement and CIA include novel provisions that require that GSK implement and/or maintain major changes to the way it does business, including changing the way its sales force is compensated to remove compensation based on sales goals for territories, one of the driving forces behind much of the conduct at issue in this matter. Under the CIA, GSK is required to change its executive compensation program to permit the company to recoup annual bonuses and long-term incentives from covered executives if they, or their subordinates, engage in significant misconduct. GSK may recoup monies from executives who are current employees and those who have left the company.  Among other things, the CIA also requires GSK to implement and maintain transparency in its research practices and publication policies and to follow specified policies in its contracts with various health care payors.

“Our five-year integrity agreement with GlaxoSmithKline requires individual accountability of its board and executives,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services. “For example, company executives may have to forfeit annual bonuses if they or their subordinates engage in significant misconduct, and sales agents are now being paid based on quality of service rather than sales targets.”  

“The FDA Office of Criminal Investigations will aggressively pursue pharmaceutical companies that choose to put profits before the public’s health,” said Deborah M. Autor, Esq., Deputy Commissioner for Global Regulatory Operations and Policy, U.S. Food and Drug Administration. “We will continue to work with the Justice Department and our law enforcement counterparts to target companies that disregard the protections of the drug approval process by promoting drugs for uses when they have not been proven to be safe and effective for those uses, and that fail to report required drug safety information to the FDA.”

“The record settlement obtained by the multi-agency investigative team shows not only the importance of working with our partners, but also the importance of the public providing their knowledge of suspect schemes to the government,” said Kevin Perkins, Acting Executive Assistant Director of the FBI’s Criminal, Cyber, Response and Services Branch. “Together, we will continue to bring to justice those engaged in illegal schemes that threaten the safety of prescription drugs and other critical elements of our nation’s healthcare system.”

“ Federal employees deserve health care providers and suppliers, including drug manufacturers, that meet the highest standards of ethical and professional behavior,” said Patrick E. McFarland, Inspector General of the U.S. Office of Personnel Management. “Today’s settlement reminds the pharmaceutical industry that they must observe those standards and reflects the commitment of Federal law enforcement organizations to pursue improper and illegal conduct that places health care consumers at risk.”

“Today’s announcement illustrates the efforts of VA OIG and its law enforcement partners in ensuring the integrity of the medical care provided our nation’s veterans by the Department of Veterans Affairs,” said George J. Opfer, Inspector General of the Department of Veterans Affairs. “The monetary recoveries realized by VA in this settlement will directly benefit VA healthcare programs that provide for veterans’ continued care.”

“This settlement sends a clear message that taking advantage of federal health care programs has substantial consequences for those who try,”  said Rafael A. Medina, Special Agent in Charge of the Northeast Area Office of Inspector General for the U.S. Postal Service. “The U.S. Postal Service pays more than one billion dollars a year in workers' compensation benefits and our office is committed to pursuing those individuals or entities whose fraudulent acts continue to unfairly add to that cost.”

A Multilateral Effort 
The criminal case is being prosecuted by the U.S. Attorney’s Office for the District of Massachusetts and the Civil Division’s Consumer Protection Branch. The civil settlement was reached by the U.S. Attorney’s Office for the District of Massachusetts, the U.S. Attorney’s Office for the District of Colorado and the Civil Division’s Commercial Litigation Branch.   Assistance was provided by the HHS Office of Counsel to the Inspector General, Office of the General Counsel-CMS Division and FDA’s Office of Chief Counsel as well as the National Association of Medicaid Fraud Control Units.

This matter was investigated by agents from the HHS-OIG; the FDA’s Office of Criminal Investigations; the Defense Criminal Investigative Service of the Department of Defense; the Office of the Inspector General for the Office of Personnel Management; the Department of Veterans Affairs; the Department of Labor; TRICARE Program Integrity; the Office of Inspector General for the U.S. Postal Service and the FBI.

This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Kathleen Sebelius, Secretary of HHS.   The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. Over the last three years, the department has recovered a total of more than $10.2 billion in settlements, judgments, fines, restitution, and forfeiture in health care fraud matters pursued under the False Claims Act and the Food, Drug and Cosmetic Act.

FEMA AUTHORIZED FUNDS FOR ROSE CREST FIRE IN SALT LAKE COUNTY

Photo Credit:  U.S. Army National Guard.

FROM:  U.S. FEDERAL EMERGENCY MANAGEMENT AGENCY

DENVER, Colo. -- The U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) has authorized the use of federal funds to help with firefighting costs for Utah’s Rose Crest Fire in Salt Lake County. This is the fourth Fire Management Assistance Grant has approved in the last week.

FEMA Regional Administrator Robin Finegan approved a Fire Management Assistance Grant (FMAG) upon receiving the state’s request. At the time of the request, the fire was threatening approximately 150 homes in Herrmann City, Utah with a population of 20,000.  The fire is also threatening a military installation, a residential subdivision and volatile brush.

The authorization makes FEMA funding available to pay 75 percent of the state’s eligible firefighting costs for managing, mitigating and controlling the fire. These grants do not provide assistance to individual home or business owners and do not cover other infrastructure damage caused by the fire.

Fire Management Assistance Grants are provided through the President's Disaster Relief Fund and made available by FEMA to assist in fighting fires that threaten to cause a major disaster. Eligible items can include expenses for field camps; equipment use, repair and replacement; mobilization and demobilization activities; and tools, materials and supplies.

Since Friday, June 22, FEMA has approved Fire Management Assistance Grants for the Dump Fire in Utah County, the Wood Hollow Fire in Sanpete County and the Clay Springs Fire in Millard County, after it was determined that the fires threatened to create a major disaster. There are currently five other large fires burning uncontrolled in Utah.

FEMA's mission is to support our citizens and first responders and to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.