Wednesday, August 1, 2012

SEC CHARGES MULTIPLE INDIVIDUALS AND COMPANIES FOR MISCONDUCT IN CONNECTION WITH CHINESE REVERSE MERGER COMPANY

FROM: U.S. SECURITIES AND EXCHANGE COMMISSIONThe Securities and Exchange Commission today filed settled fraud charges, among others, against New York-based fund adviser Peter Siris (Siris) in connection with its investigation into China Yingxia International, Inc. (China Yingxia), a now defunct Chinese reverse merger company. The illicit conduct by Siris and/or his associated entities — Guerrilla Capital Management, LLC (Guerrilla Capital), and Hua Mei 21st Century, LLC (Hua Mei) — included insider trading, trading in violation of Rule 105 of Regulation M, fraudulent representations in a securities purchase agreement, misstatements to investors in pooled investment vehicles, acting as an unregistered securities broker, and unregistered sales of securities.

In a separate action, the SEC charged Ren Hu (Hu), former chief financial officer of China Yingxia, for fraudulent representations in Sarbanes-Oxley (SOX) certifications, lying to auditors, failure to implement internal accounting controls, and aiding and abetting China Yingxia’s failure to implement internal controls; and Alan Sheinwald (Sheinwald), and his investor relations firm Alliance Advisors, LLC (Alliance), for acting as unregistered securities brokers.

Additionally, the SEC reached settlements with several other individuals connected to China Yingxia, including Peter Dong Zhou (Zhou) for insider trading, unregistered sales of securities, and aiding and abetting unregistered broker activity; Steve Mazur (Mazur) for acting as an unregistered securities broker; and James Fuld, Jr. (Fuld) for unregistered sales of securities.

Siris and His Entities
The SEC alleges that Siris, a well-known fund manager and active investor in Chinese companies, engaged in a broad range of misconduct. Siris, who has authored one book concerning investing, and until recently was a financial columnist for a New York publication, manages two New York-based hedge funds through which he invested $1.5 million in China Yingxia. Along with being one of three "consultants" that raised money for China Yingxia, Siris and his consulting firm Hua Mei, acted as advisers to China Yingxia, which included review of China Yingxia’s Commission filings and press releases, among other things. Hua Mei received cash and shares, which were received from the CEO’s father and were improperly sold without any registration statement in effect.

Further, in February and March 2009, Siris sold China Yingxia stock while in possession of material, non-public information centered on its CEO’s illegal activity, status of operations at China Yingxia, and a press release concerning the same. Siris, on behalf of his funds, sold over 1.1 million shares in a matter of weeks before China Yingxia’s press release, realizing more than $172,000 in ill-gotten gains. Siris also omitted material information and made material misrepresentations to investors in his funds concerning his role with China Yingxia, depriving his investors of information material to their continued investment decisions with Siris’s funds.

In addition, after agreeing to go "over-the-wall" in connection with ten confidentially marketed offerings for Chinese companies, Siris engaged in insider trading in breach of his duty to not trade on the information. And Siris sold short the securities of two Chinese companies prior to participating in firm-commitment offerings in violation of Rule 105. Further, Siris fraudulently represented in one securities purchase agreement that he had not traded the issuer’s securities, but he had in fact sold short the issuer’s stock. As a result of these violations, Siris generated almost $289,000 in ill-gotten gains

The SEC filed action in the U.S. District Court for the Southern District of New York against Siris and his entities, alleging violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (Securities Act), Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 (Exchange Act), Rule 10b-5 thereunder, Rule 105 of Regulation M, and Section 206(4) of the Investment Advisers Act of 1940 (Advisers Act), and Rule 206(4)-8 thereunder. Without admitting or denying the allegations of the complaint, these defendants have agreed to pay disgorgement in the amount of $592,942.39, prejudgment interest of $70,488.83, and Siris has agreed to pay a civil penalty in the amount of $464,011.93. Defendants Siris, Guerrilla Capital, and Hua Mei, also have consented to the entry of a judgment enjoining them from violations of the respective provisions of the Securities Act, Exchange Act, and Advisers Act. The proposed settlement is subject to approval by the court.

Hu, Sheinwald, and Alliance Advisors
The SEC also filed fraud charges against China Yingxia’s former CFO, Hu, for material misrepresentations concerning his role in designing disclosure and internal controls. In several SOX certifications, the SEC alleges that Hu misrepresented that he had designed or caused to be designed such controls, when he had not done so. The SEC also alleges that Hu knowingly failed to implement internal accounting controls, aided and abetted China Yingxia’s failure to do so, and lied to auditors concerning controls and fraud by the CEO, who has reportedly been convicted by Chinese authorities for illegal fundraising activities, similar to a Ponzi scheme.

In addition, the SEC alleges that Sheinwald and his investor relations firm Alliance Advisors, who were also retained as "consultants," acted as unregistered securities brokers in connection with raising money for China Yingxia and at least one other issuer.

The SEC filed action in the U.S. District Court for the Southern District of New York against Hu alleging violations of Section 10(b) of the Exchange Act, and Rules 10b-5, 13a-14, and 13b2-2 thereunder, and further aided and abetted violations of Section 13(b)(2)(B) of the Exchange Act. The SEC’s action against Sheinwald and Alliance Advisors alleges violations of Section 15(a) of the Exchange Act.

Administrative and/or Cease-and-Desist Proceedings
Finally, today the SEC issued administrative and cease-and-desist orders against Zhou and Mazur, and a cease-and-desist order against Fuld. The order against Zhou, who assisted China Yingxia with its reverse merger and virtually all of its public company tasks, finds that he willfully engaged in insider trading in the securities of China Yingxia, unregistered sales of securities, and aided and abetted unregistered broker-dealer activity. Zhou agreed to pay disgorgement in the amount of $20,900, prejudgment interest of $2,463.39, and a civil monetary penalty in the amount of $50,000. Zhou further agreed to a collateral bar, penny stock bar, and investment company bar, with the right to apply for reentry after three years. The order involving Mazur, whose firm was also retained as a "consultant" to China Yingxia, finds that he willfully acted as an unregistered broker by selling away from the firm with which he was associated in connection with China Yingxia and at least one other issuer. Mazur agreed to pay disgorgement in the amount of $126,800, prejudgment interest of $25,550.01, and a civil monetary penalty in the amount of $25,000. Mazur further agreed to a collateral bar, penny stock bar, and investment company bar, with the right to apply for reentry after two years. The cease-and-desist order against Fuld finds that he engaged in unregistered sales of securities, and he agreed to pay disgorgement of $178,594.85, and $38,096.70 in prejudgment interest.

The New York Regional Office’s Celeste A. Chase, Eduardo A. Santiago-Acevedo, and Osman E. Nawaz conducted the investigation, which is continuing, with assistance from Frank Milewski. The SEC thanks the Financial Industry Regulatory Authority (FINRA) for its assistance in this matter.

AFGHANISTAN'S MINERAL WEALTH EXPLOITATION


FROM: U.S. GEOLOGICAL SURVEY
Using the HyMap data, two surface materials maps of Afghanistan were produced: one that shows carbonates, phyllosilicates, sulfates, altered minerals, and other materials spatial distribution of minerals with diagnostic absorption features in the shortwave infrared wavelengths and another that depicts iron-bearing minerals and other materials having diagnostic absorption features at visible and near-infrared wavelengths. The 31 classes in the list of materials comprising each map key represent a necessary compromise between striving for the highly focused level of detail achievable in the best calibrated flight lines and seeking identifications that were reliably detected across the entire country and present in large enough areas to be perceptible at the scale of a national map.


Surface Materials Map of Afghanistan: Carbonates, Phyllosilicates, Sulfates, Altered Minerals, and Other Materials 


FROM: U.S. DEPARTMENT OF DEFENSE
DOD, U.S. Agencies Help Afghanistan Exploit Mineral Wealth
By Cheryl Pellerin
American Forces Press Service

WASHINGTON, July 30, 2012 - Officials from the Defense Department and the U.S. Geological Survey gathered this month at Afghanistan's U.S. Embassy to unveil what the director of a DOD task force called a "treasure map" of the nation's mineral resources.

At the event, James Bullion of the Defense Department's Task Force for Business and Stability Operations, or TFBSO, shared the podium with USGS Director Marcia McNutt, who described a new remote-sensing technology that has made it possible, for the first time, she said, to map more than 70 percent of the country's surface and identify potential high-value deposits of copper, gold, iron, and other minerals.

DOD officials and USGS scientists work as partners in this initiative with the Afghanistan government and scientists and engineers from the Afghan Ministry of Mines and the Afghan Geological Survey.

"The task force is a Defense Department organization charged to help spur and grow the private-sector economy in Afghanistan, ... and clearly, the mineral and oil and gas extractive areas are critical to that effort," Bullion said.

Since 2009, the DOD task force has funded work there by USGS, including the effort to operate, with help from NASA, an airborne instrument called a hyperspectral imager to map surface indicators of natural resources below Afghanistan's rugged mountainous terrain.

"The work that the U.S. Geological Survey has done has been critical to the whole process," Bullion said. "In essence, what they've done is built a treasure map for Afghanistan, which is full of these hidden mineral and oil and gas treasures."

Scientists from USGS began working in Afghanistan in 2004, when the agency was asked to help rebuild the nation's natural resource sector, McNutt said. The geological data USGS scientists found was 50 to 75 years old, originating from the late 1960s when a Soviet mission for about 10 years helped the Afghan government with geological mapping.

From August to October 2007, NASA contributed its mid-wing, long-range WB-57 aircraft to fly the USGS hyperspectral instrument over Afghanistan, mapping more than 70 percent of the country. In 2009, USGS and the DOD task force became partners and worked closely, Bullion said, to help to get the hyperspectral data into a format that mining companies could use to evaluate opportunities in the mineral sector.

"Hyperspectral data uses the reflectance of light and uses the fact that different minerals reflect light in different wavelength bands," McNutt explained. "Every mineral has its own signature or fingerprint."

Hyperspectral imaging characterizes minerals only on the surface of the Earth, not underground where the minerals are mined. The technology wouldn't work well in countries where forests, grasses and soil cover the ground, but it's perfect for Afghanistan. Over 50 million years, the slow-motion collision of Iran and Eurasian tectonic plates beneath Afghanistan formed rugged, rocky mountains out of what used to be mineral-laden subsurface rock.

The hyperspectral instrument "can be used in a place where there's no vegetative cover, and Afghanistan happens to have almost no vegetation and it is resource-laden," McNutt explained. "And because of plate tectonic properties, ... it has been tectonically uplifted and tectonically unroofed to reveal at the surface the mother lode of resources."

Over 43 days and 23 flights, USGS flew nearly 23,000 miles, collecting data that covered 170,000 square miles.

When compared with conventional ground mapping, McNutt added, hyperspectral technology has accelerated by decades the ability to identify the most promising areas for Afghan economic development.

In December, supported by the DOD task force, officials from Afghanistan's Ministry of Mines opened tender processes, or auctions, for exploration and later exploitation of four project areas in the country.

The Badakhshan gold project is in Badakhshan province, the Zarkashan copper and gold project is in Ghazni province, the Balkhab copper project spans Sar-I-Pul and Balkh provinces, and the Shaida copper project is in Herat province.

Bids for the Balkhab project were opened July 24, and a preferred bidder will be announced when the evaluations are complete, ministry officials said in a statement.

At the Afghan embassy event, a USGS official characterized the value of Afghanistan's mineral and other deposits.

"We have identified somewhere between 10 and 12 world-class copper, gold, iron ore [and] rare earth deposits that no one knew were there," Jack Medlin, regional specialist for the Asia-Pacific region in the USGS international programs office, told the audience.

"In our 2007 publication, we gave an estimate of undiscovered mineral resources for the country, and ... you can add up the tonnages of copper, lead, gold, iron, silver and so forth. ... But this country has many more world-class mineral deposits than most countries in the world, if not more than any country," he said.

That doesn't mean it will be easy to turn these resources into national income, Medlin told American Forces Press Service.

Once a company wins a bid for an Afghan site, it will gather all information about the site, including the hyperspectral data and any geologic, geochemical and geophysical information, he said. It will also send its own geologists to the site to do detailed mapping and arrange for detailed airborne gravity and magnetic studies, Medlin said, which gives the company a subsurface three-dimensional picture of the ore deposit.

The company checks the absolute grade and tonnage of the ore deposit by drilling through the ore body, collecting a rock core and sending it to a chemical laboratory for analysis. If the results are positive, he added, the company creates a mine plan and determines the mining method.

"You're talking about a capital investment of billions of dollars up front before you've even mined a pound of ore," Medlin said. "It's the reason companies want well-defined mining laws ... and they want all the legal and regulatory requirements spelled out."

In the Afghan mining brochure, Minister of Mines Wahidulla Shahrani describes major road and rail development and ongoing work on electric transmission lines, a favorable legal and fiscal regime, stable mineral laws and regulations, and physical security for working mines.

A mine protection unit has 1,500 security personnel at the Aynak copper mine in Logar province, according to the Ministry of Mines, and the Afghan government plans to increase the number of personnel to 7,000 for future mining projects.

At the embassy event, Afghanistan's Ambassador to the United States Eklil Hakimi thanked DOD and the USGS for their help with the mining enterprise and discussed the potential economic benefits.

"The estimated direct revenue to be generated by royalties and taxes from the extractive industries could reach up to $1.5 billion by 2016 and exceed $3.7 billion by 2026," Hakimi said, "and will become a major source of employment, with 165,000 jobs anticipated by 2016 and up to half a million by 2026.

"As we recently stressed at the Tokyo Conference [on Afghanistan in July]," he continued, "a peaceful future for Afghanistan rests in development and a sustainable economy, one that's not dependent on international assistance and can provide jobs for the people."

In response to a question from the audience, McNutt said the Afghans are eager to embrace modern geophysical techniques and technology and to be responsible for their own success.

"The word that I hear is [the Afghans] want to do this themselves," the USGS director added. "They ... are eager to take leadership and ownership of these projects and learn how to do it because they're excited about rebuilding."

SUBSIDIARY OF TRW AUTOMOTIVE AGREES TO PAY $5.1 MILLION FINE FOR PRICE FIXING

FROM: U.S. DEPARTMENT OF JUSTICE
Monday, July 30, 2012
German Subsidiary of TRW Automotive Agrees to Plead Guilty to Price Fixing on Automobile Parts Installed in U.S. Cars

WASHINGTON – TRW Deutschland Holding GmbH, a Koblenz, Germany-based subsidiary of U.S.-based TRW Automotive Holdings Corp., has agreed to plead guilty for its involvement in a conspiracy to fix prices of seatbelts, airbags and steering wheels sold to two German automobile manufacturers, and installed in cars sold in the United States , the Department of Justice announced today. This is the second case filed relating to occupant safety systems sold to auto manufacturers as part of the department’s ongoing antitrust auto parts investigation.

TRW Deutschland has agreed to pay a $5.1 million criminal fine and to cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.

"By agreeing to fix the prices of seatbelts, airbags and steering wheels, the conspirators eliminated competition for occupant safety parts in cars sold to U.S. consumers," said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. "As a result of the division’s close work with its law enforcement partners, more than $785 million in criminal fines have been imposed in this ongoing investigation.


According to a one-count felony charge filed today in the U.S. District Court in Detroit, TRW Deutschland engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of seatbelts, airbags and steering wheels sold to automakers in the United States and elsewhere.

According to court documents, the defendant’s involvement in the conspiracy to fix prices of seatbelts, airbags and steering wheels lasted from January 2008 until at least June 2011. The department said that the TRW Automotive subsidiary and its co-conspirators carried out the conspiracy by agreeing, during meetings and conversations, to allocate the supply of seatbelts, airbags and steering wheels and sold the occupant safety parts at noncompetitive prices to automakers in the United States and elsewhere.

Including TRW Deutschland, seven companies and 10 individuals have been charged in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Furukawa Electric Co. Ltd, DENSO Corp., Yazaki Corp., G.S. Electech Inc., Fujikura Ltd. and Autoliv Inc. pleaded guilty and were sentenced to pay a total of more than $785 million in criminal fines. Additionally, seven of the individuals – Junichi Funo, Hirotsugu Nagata, Tetsuya Ukai, Tsuneaki Hanamura, Ryoki Kawai, Shigeru Ogawa and Hisamitsu Takada – have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each. Makoto Hattori and Norihiro Imai have pleaded guilty and await sentencing. Kazuhiko Kashimoto is scheduled to plead guilty on Aug. 22, 2012.

TRW Deutschland is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s National Criminal Enforcement Section and the FBI’s Detroit Field Office with the assistance of the FBI headquarters’ International Corruption Unit.

NAVY COMPLETES THIN-FILM SOLAR SYSTEM


FROM: U.S. NAVY
20501-N-YZ910-002 JACKSONVILLE, Fla. (May 1, 2012) Some of the 2,534 solar photovoltaic (PV) panels installed on the roof of Naval Air Station Jacksonville's Hangar 1122 to help reduce the building's conventional energy usage and promote environmental sustainability. (U.S. Navy Photo by Clark Pierce/Released)
 
NAVFAC Far East, CFAY Complete Navy's Largest Thin-Film Solar System
By Ron Inman, NAVFAC Far East Public Affairs
YOKOSUKA, Japan (NNS) -- Naval Facilities Engineering Command (NAVFAC) Far East and Commander, Fleet Activities Yokosuka (CFAY) have installed the largest building-integrated photovoltaic (BIPV) system in the U.S. Navy, which became operational, July 19.

According to CFAY Public Works Department Yokosuka Energy Manager Tom Bawden, more than 1,500 250-watt solar modules were installed which will cumulatively generate up to 396 kilowatts of peak output direct current solar energy on the roof of CFAY's Commissary and Navy Exchange.

"This solar energy feeds directly into CFAY's electric grid," said Bawden. "The modules are copper indium gallium diselenide (CIGS) technology and are made into flexible solar panels - 'thin film' - that were attached to our, otherwise, unusable curved roof. The adhesive used for the CIGS modules adds a layer of insulation to the building that further reduces heating and cooling energy loss through the roof, providing additional energy savings.

"Also, since it's a multi-layered, waterproof system placed on top of the existing roof, it will extend the useful life of the roof," Bawden continued. "CFAY is proud to be taking such a large leap forward for energy conservation and establishing sustainable infrastructure."

Construction of the BIPV system began in October 2011 and was completed in July 2012. It began producing energy for CFAY July 19.

Bawden explained that the system will produce its maximum kilowatt electricity output during the middle of hot sunny days, which is highly advantageous since CFAY's peak demand typically occurs at the same time.

"To put the energy savings into perspective, the system will generate enough power annually to provide approximately 20 million mobile phone minutes, or power approximately 80 average U.S. homes in California," Bawden added. "When the system is operating at full capacity, it can provide roughly 1 percent of CFAY's energy requirement.

"The project not only moves CFAY towards satisfying the Federal renewable energy mandates and Navy goals, but installing a larger BIPV system takes advantage of economies of scale to produce greater electricity output per unit cost," explained Bawden. "For a base with limited space, utilizing the unused rooftop spaces of some larger facilities for BIPV projects allows CFAY to capture this additional energy-generating opportunity without negatively impacting the mission of the tenant commands or the installation."

Secretary of the Navy Ray Mabus laid out five aggressive energy goals in October 2009 to improve the Department of the Navy's (DoN) energy security and efficiency, increase its energy independence and help lead the nation toward a clean energy economy. This initiative assists in achieving DoN's energy goal of increasing alternative energy afloat and ashore by 2020, producing at least 50 percent of shore-based energy requirements from alternative sources and having 50 percent of DoN installations achieve net-zero energy status - meaning that they have zero net energy consumption and produce zero carbon emissions annually.

RECENT PHOTOS TAKEN DURING (RIMPAC) 2012



FROM: U.S. NAVY
Mass Communication Specialist 3rd Class Jumar Balacy, right, documents a surface supplied dive during Rim of the Pacific (RIMPAC) 2012. Twenty-two nations, more than 40 ships and submarines, more than 200 aircraft and 25,000 personnel are participating in the biennial Rim of the Pacific (RIMPAC) exercise from June 29 to Aug. 3, in and around the Hawaiian Islands. The world's largest international maritime exercise, RIMPAC provides a unique training opportunity that helps participants foster and sustain the cooperative relationships that are critical to ensuring the safety of sea lanes and security on the world's oceans. RIMPAC 2012 is the 23rd exercise in the series that began in 1971. U.S. Navy photo by Mass Communication Specialist 1st Class Anderson C. Bomjardim (Released) 120727-N-VF350-055

 



Ships and submarines participating in Rim of the Pacific (RIMPAC) exercise 2012 are in formation in the waters around the Hawaiian islands. Twenty-two nations, more than 40 ships and submarines, more than 200 aircraft and 25,000 personnel are participating in the biennial Rim of the Pacific (RIMPAC) exercise from June 29 to Aug. 3, in and around the Hawaiian Islands. The world's largest international maritime exercise, RIMPAC provides a unique training opportunity that helps participants foster and sustain the cooperative relationships that are critical to ensuring the safety of sea lanes and security on the world's oceans. RIMPAC 2012 is the 23rd exercise in the series that began in 1971. U.S. Navy photo by Chief Mass Communication Specialist Keith Devinney (Released) 120727-N-VD564-015

Tuesday, July 31, 2012

TWO EMPLOYEES OF NEW YORK PRESBYTERIAN HOSPITAL PLEAD GUILTY TO FRAUD

FROM: U.S. DEPARTMENT OF JUSTICE

WASHINGTON — Two former high-ranking employees of facilities operations at New York Presbyterian Hospital (NYPH) pleaded guilty today to an indictment charging them with conspiring to defraud NYPH, the Department of Justice announced.

Former vice president of facilities operations, Santo Saglimbeni, and former director of facilities operations, Emilio "Tony" Figueroa, were charged in a four-count superseding indictment filed on June 16, 2011. Saglimbeni, who was charged on all four counts, was convicted of counts one and two on Feb. 2, 2012. Figueroa, who was charged on counts one, three and four, was convicted on count one on Feb. 2, 2012. Counts three and four were severed from that indictment, and Saglimbeni and Figueroa pleaded guilty in the U.S. District Court in Manhattan to those counts today.

Saglimbeni and Figueroa pleaded guilty today for their participation in a mail fraud conspiracy, which lasted from as early as June 2001 and continued through June 2006. The scheme to defraud NYPH centered on Saglimbeni, who with the assistance of Figueroa, awarded contracts for the installation and repair of heating, ventilation and air conditioning systems (HVAC), to a co-conspirator’s company in return for kickbacks given to Saglimbeni and Figueroa in the form of cash, goods and services from that co-conspirator. Saglimbeni and Figueroa also pleaded guilty to a substantive mail fraud offense based upon a payment made to the co-conspirator by NYPH on an HVAC contract awarded in furtherance of the HVAC conspiracy.

"By awarding contracts in return for kickbacks, Saglimbeni and Figueroa used their positions to subvert the competitive bidding process for essential services at NYPH," said Joseph Wayland, Acting Assistant Attorney General in charge of the Justice Department’s Antitrust Division. "Today’s guilty pleas demonstrate the Antitrust Division’s commitment to holding purchasing officials accountable for this type of illegal conduct."

On Feb. 2, 2012, after a four week trial, Saglimbeni and Figueroa were convicted of the first two counts of the indictment. At the trial, Michael Yaron and two companies owned by him, Cambridge Environmental & Construction Corp., which does business as National Environmental Associates (Cambridge/NEA), an asbestos abatement company, and Oxford Construction & Development Corp., a construction company; Moshe Buchnik, the president of two asbestos abatement companies; and Artech Corporation, a company owned by a relative of Saglimbeni, were also convicted of conspiracy to defraud NYPH. Yaron, his companies, Buchnik, Saglimbeni and Artech were also convicted of a substantive wire fraud violation.

These convictions centered on a scheme to defraud NYPH, whereby Saglimbeni, who with the assistance of Figueroa, awarded asbestos abatement, air monitoring and general construction contracts to Yaron, Buchnik and their companies in return for more than $2.3 million in kickbacks paid to Saglimbeni. Those kickbacks were funneled by Yaron to Saglimbeni through Artech, a sham company Saglimbeni created in the name of his mother.

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. 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.

Including today’s pleas, 15 individuals and six companies have been convicted or pleaded guilty to charges arising out of this federal antitrust investigation. On July 10, 2012, Yaron was sentenced to serve 60 months in jail and Buchnik was sentenced to serve 48 months. Each was sentenced to pay a $500,000 criminal fine. Cambridge/NEA, Oxford and Artech, were each sentenced to pay a $1 million criminal fine.

The investigation was conducted by the Antitrust Division’s New York Field Office with the assistance of the FBI and the Internal Revenue Service - Criminal Investigation’s New York Field Office.

COMA SURVIVOR WORKS TO HELP OTHERS


FROM: U.S. DEPARTMENT OF DEFENSE 

Army Sgt. Merrell Lowe stops to catch his breath between exercises. On his own time, he conducts daily fitness classes that he developed to help other soldiers. U.S. Army photo by Spc. Jamie PhilbrookFace of Defense: Coma Survivor Works to Improve Others' Lives
By Army Spc. Jamie Philbrook
1st Theater Sustainment Command

FORT BRAGG, N.C., July 31, 2012 - Army Sgt. Merrell Lowe went to a doctor for what he thought was a minor issue, but his next memory was waking up from a coma

I woke up to the beeping noises of the heart monitor. When I opened my eyes, I saw my company commander looking down at me asking if I was OK," said Lowe, an automated logistical specialist with 1st Theater Sustainment Command. "I remember thinking to myself, 'Why is he at my house?' I was completely unaware that I had just spent the past week in a coma. The last thing I remembered was going to the doctor for a cramp in my leg."

In 2010, Lowe found himself consumed with a demanding job and long hours that left little time for anything else. In a few short months, lack of proper nutrition and fitness put his health in danger and his life at risk. His blood sugar spiked to more than 10 times higher than normal, causing a diabetic coma.

"I was diagnosed with Type 2 diabetes and rhabdomyolysis," Lowe explained. Rhabdomyolysis is a condition in which the muscle fibers break down, releasing myoglobin into the bloodstream.

"After waking up from that state, I came to the conclusion that I would not be back in the hospital again," Lowe said. "From that point on, I said, 'This is it'. Once I got out of there, the healthy eating [and] the training started immediately."

After struggling to meet the Army's physical fitness and weight standards, Lowe took matters into his own hands. He created a system that worked. Later, he found success implementing his system to help other soldiers with their fitness.

"I 'guinea pigged' myself," he said. "I went out and did exercises to see if I would improve. I started focusing on eating, exercising and praying so I could get back to helping soldiers."

That was more than two years ago. Now, Lowe can be found helping others who are struggling with weight, fitness and nutrition.

While physical fitness is a staple of everyday military life, some soldiers need a little extra help in that department. Whether it is to improve Army Physical Fitness Test scores, to get back in shape after having a baby, or to recover from an injury, the command's soldiers seek out Lowe.

During the duty day, Lowe, the operations noncommissioned officer in charge, can be found in the orderly room of the 1st TSC Headquarters and Headquarters Company. However, while most soldiers are enjoying their lunches or are home with their families after the duty day, Lowe is at various facilities on and off post, helping others get to where they need and strive to be.

When Army Sgt. 1st Class Mary Upshaw found out about an upcoming duty assignment, she knew she needed to take her physical fitness to the next level. She went straight to Lowe for that additional support.

"I am about to go to a new and challenging job as an advanced individual training platoon sergeant," Upshaw said. "I knew with [the AIT soldiers] being so young that I was going to have the extra challenge of keeping up with them."

Upshaw rapidly noticed drastic improvements, not only in her physical capabilities, but also in her overall health.

"I am no longer sluggish in the morning," she said. "I am full of energy. I can run further and faster, and the weight loss has been phenomenal."

Noting that he had to work through a rough period with his health, weight and physical fitness, Lowe said he encourages others who may be having some of the same struggles to join him during his workout sessions.

"You are going to get maximum results," he said. "I am out here doing it with you. I may laugh and joke, but I am hurting just like you." Lowe said he uses humor to cover up the pain he endures.

"No one helped me, so I want to help others," he said. "I love helping people. It's who I am. It's my personality." Lowe also runs a two-week recovery program to ease injured soldiers back into physical training.

Upshaw is among many who are grateful for the time Lowe spends helping soldiers.

"I appreciate Sergeant Lowe," she said. "He makes time for anybody that needs that extra push. He is a great motivator."

U.S. SEC. OF STATE CLINTON'S REMARKS ON 2011 INTERNATIONAL RELIGIOUS FREEDOM REPORT

FROM: U.S. STATE DEPARTMENT
Remarks at the Release of the 2011 International Religious Freedom Report
Remarks
Hillary Rodham Clinton
Secretary of State
Carnegie Endowment for International Peace
Washington, DC
July 30, 2012

SECRETARY CLINTON: Well, thank you very much, and it’s indeed a pleasure to join you here today to talk about an issue that shapes the lives of people worldwide as much as any other, religious freedom. And I want to thank Jessica Matthews not just for that introduction, but more importantly for her service of many years, but in particular her leadership as the president of the Carnegie Endowment for International Peace.

Fifteen years ago, Jessica was writing about trends that were just then beginning to get people’s attention, like the rise of information technologies and the creation of global networks that existed outside governments. She said then that those changes would shape global events in ways both good and bad and that governments would have to adapt if they wanted to stay on top of global change. Well, she was certainly right about that. And indeed, I’ve worked to make the integration of new technologies and outreach to civil society groups and the private sector, diaspora communities, and other nongovernmental organizations a hallmark of my time as Secretary of State so that it’s not an afterthought, it’s not an add-on, but it is integrated into the work we do, because clearly the work we do will be influenced and affected by all of those non-state actors.

I want to acknowledge two people: Michael Posner, our Assistant Secretary of State for Democracy, Human Rights, and Labor, someone with whom I’ve had just the great privilege and honor of working so closely with over the last several years; and Suzan Johnson Cook, the U.S. Ambassador at Large for International Religious Freedom, someone who I’ve also had not only the privilege of working with in the State Department, but in one of my previous incarnations as a senator from New York. Chris Seiple and Bill Vendley, two of my top advisors from civil society on this issue, I’m grateful for their efforts; and all the representatives from Congress, from embassies, members of the Religion and Foreign Policy Working Group, and others who recognize and are committed to the importance of this issue and what it represents.

Now, earlier today, the State Department released its latest International Religious Freedom Report. It opens with the words that guide our work and the work of governments and individuals devoted to freedom of religion around the world. They are the words of Article 18 of the Universal Declaration of Human Rights. And listen to those words again, because much of what I will say today is of course rooted in our Constitution, in our belief about the importance of the free exercise of religion. But it’s important to remember that these words were adopted by the international community, not just by the United States.

Here they are: Everyone has the right to freedom of thought, conscience, and religion. This right includes freedom to change his religion or belief and freedom either alone or in community with others and in public or private, to manifest his religion or belief in teaching, practice, worship, and observance.

Now, these are clear and straightforward principles that bring people together in both heartfelt unity and furious disagreement. For the United States, of course, religious freedom is a cherished constitutional value, a strategic national interest, and a foreign policy priority.

It’s particularly urgent that we highlight religious freedom, because when we consider the global picture and ask whether religious freedom is expanding or shrinking, the answer is sobering. More than a billion people live under governments that systematically suppress religious freedom. New technologies have given repressive governments additional tools for cracking down on religious expression. Members of faith communities that have long been under pressure report that the pressure is rising. Even some countries that are making progress on expanding political freedom are frozen in place when it comes to religious freedom. So when it comes to this human right, this key feature of stable, secure, peaceful societies, the world is sliding backwards.

Meanwhile, several countries with diverse faith communities are now in the process of navigating transitions toward democracy. They are wrestling with questions of whether and how to protect religious freedom for their citizens. This goes from Tunisia to Burma and many places in between. But take, for example, Egypt, which I visited two weeks ago. I had a very emotional, very personal conversation with Christians who are deeply anxious about what the future holds for them and their country. What Egypt and other countries decide will have a major impact on the lives of their people and will go a long way toward determining whether these countries are able to achieve true democracy.

So this is an issue that transcends religious divides. All faiths everywhere have a stake in defending and expanding religious freedom. I personally feel very strongly about this, because I have seen firsthand how religious freedom is both an essential element of human dignity and of secure, thriving societies. It’s been statistically linked with economic development and democratic stability. And it creates a climate in which people from different religions can move beyond distrust and work together to solve their shared problems.

I’ve also seen how the opposite operates. The absence of religious freedom can create a climate of fear and suspicion that weakens social cohesion and alienates citizens from their leaders. And that, of course, can make it more difficult to achieve national progress. And because the impact of religious freedom extends beyond the realm of religion and has ramifications for a country’s security and its economic and political progress, more students and practitioners of foreign policy need to focus more time and attention on it.

Today, I want to make the case for religious freedom and why all people and all governments should support it. And I want to address directly the arguments that people who stand in the way of religious freedom use to try to justify their actions.

Let me start with what life is like for many who live without this freedom. In the harshest places, certain religions are banned completely, and a believer can be sentenced to death. Strict laws ban blasphemy and defamation of religion. And when your words are interpreted as violations of those laws, you can be sentenced to death. Violence toward religious minorities often goes unpunished by authorities who look the other way. So the message is clear: If your beliefs don’t have government approval, beware.

The same message is delivered by governments that seek the illusion of freedom by creating official state-sanctioned religious associations. They say, "Look, our people can practice whichever of these pre-approved faiths they choose." But if people are caught going outside these associations to form their own communities or receive instruction from their own religious leaders, they can be imprisoned.

Religious freedom is not just about religion. It’s not just about the right of Roman Catholics to organize a mass, or Muslims to hold a religious funeral, or Baha’is to meet in each others’ homes for prayer, or Jews to celebrate High Holy Days together – as important as those rituals are. Religious freedom is also about the right of people to think what they want, say what they think, and come together in fellowship without the state looking over their shoulder.

That’s why the free exercise of religion is the first freedom enshrined in our First Amendment, along with the freedoms to speak and associate. Because where religious freedom exists, so do the others. It’s also why the Universal Declaration of Human Rights protects freedom of thought, conscience, and religion – all three together – because they all speak to the same capacity within each and every human being to follow our conscience, to make moral choices for ourselves, our families, our communities.

These rights give our lives meaning and dignity, whatever religion we belong to, or if we belong to no religion at all. And like all human beings and all human rights, they are our birthright by the mere fact of us being who we are – thinking, acting human beings – men and women alike. They are not granted to us by any government. Rather, it is the responsibility of government to protect them.

Now, this, of course, is not the view held by regimes that block religious freedom. They choose to see things differently. In particular, there are two arguments they make to justify their actions. Both are worth examining.

The first is that only some people should be allowed to practice their faith – those who belong to the right faith. They define religion in such a way that if you do not believe what they want you to believe, then what you are doing is not practicing religion, because there is only one definition of religion. They, and only they and the religious leaders with whom they work, are in possession of the ultimate truth. Everyone else, including people of the same faith who diverge on some interpretation of religious law or tradition, are wrong, heretical, infidels, and they don’t deserve the protection of the law. They may not even deserve to live.

Because this is an issue that inflames emotions, it can be hard to talk about it constructively. You can’t debate someone who believes that anyone who disagrees with him by definition disagrees with God. So let me simply say this:

People can believe that they and only those like them possess the one and only truth. That’s their right. Though they do not have the right to harm those they think harbor incorrect views. But their societies pay a cost when they choose to look at others with hate or disgust. Human rights become real not only in interactions between citizens and their governments, but also in those millions of ordinary moments among neighbors and classmates, coworkers, even strangers on the street. Every time people choose tolerance and respect over fear and animosity, they strengthen human rights for themselves as well as everyone else, because they affirm their shared humanity. That’s how religious freedom inscribed in law becomes religious harmony flourishing throughout a society.

Now religious leaders have a critical role to play in this process. And we need them to encourage their followers to embrace the principles of peace and respect, which are not only tenets of nearly every religion but also at the heart of religious freedom. And then, most importantly, we need leaders to affirm that respecting the religious freedom of others is in keeping with – not in opposition to – one’s own rights. When people of all religions can practice freely, it creates an environment in which everyone’s freedom is more secure.

Leaders and governments, meanwhile, have their own responsibilities. People can think what they want, but governments have to act in favor of protecting the rights of all. The world should and must hold governments to a different standard than individuals. Whether they are secular or religious, Muslim or Christian or Hindu or officially atheistic or anything else, governments have solemn obligations to protect the human rights of all citizens, no matter what religions they believe or don’t believe.

Now some leaders try to excuse treating some citizens differently than others by saying, "But that’s what the people want." They say they personally believe in religious freedom, but if a majority of citizens want to see a group locked up or thrown out of schools or fired from their jobs, well, doesn’t democracy mean following the will of the people?

Well the answer to that is there’s a big difference between democracy and the tyranny of the majority. The liberty that democracy provides does not include the freedom to do violence to the equality of all citizens before the law. That’s why universal rights are often embedded in constitutions. They provide guardrails against laws that deprive members of minority groups of their rights. When popular opinion supports restricting the rights of a minority, leaders should remember that they owe their people both their loyalty and their judgment. Leaders should lead, and remind citizens that when rights apply only to some citizens and not to others – that is, when principles are subverted to power – that sows the seeds for legitimate grievances and instability. Genuine democracies use principles to guide power and to protect the rights of citizens equally.

The second argument leaders who oppose religious freedom make is that freedom is a luxury they just can’t afford – not yet, anyway. If laws restricting religious practice and expression were lifted, they argue the result would be instability: a rise in anti-government sentiment, the fraying of social ties, more acts of vandalism, harassment, and violence. Now this, by the way, is the same argument that leaders invoke to justify clamping down on political expression, press freedom, or civil society groups, or any activities that question the status quo and reflect their citizens’ democratic aspirations.

But in fact, long practice and even academic studies show that it is the absence of religious freedom that is correlated with religious conflict and violent extremism. There is also evidence that conflict is more likely when states have official religions and persecute religious minorities.

That makes sense if you think about it. When people are treated as equal under the law, hostilities among neighbors subside, and social unity has a chance to grow. And so does trust in the democratic process, because people are confident that their rights will be protected no matter who is in power.

In other words, religious freedom is one of those safety valves. It lets people have a say over important aspects of their lives, join their societies fully, and channel their frustrations into constructive outlets. When governments clamp down on religious freedom, they close those safety valves. The result can be humiliation, discontent, despair that has nowhere to go – a recipe for conflict and extremism.

Now some governments are coming to realize this. For example, in Libya since the overthrow of Qadhafi, the new government has chosen not to enforce some of his laws that restricted religious activity, and they’ve enshrined the free practice of religion in their interim constitution and outlawed discrimination on the basis of religion or sect. And earlier this year, the Libyan Supreme Court overturned a law that criminalized insults against Islam, because they have come to believe that the best way to deal with offensive speech is not to ban it, but to counter it with more speech that reveals the emptiness of the insults and the lies.

Now meanwhile, Egypt is grappling with these challenges as it navigates its unprecedented democratic transition. And during my recent visit, I met with members of the new government, including President Morsi, and representatives from Egypt’s Christian communities. Religious freedom was very present behind closed doors and out in the streets. President Morsi has said clearly and repeatedly, in public and private, that he intends to be the president of all the Egyptian people. He has pledged to appoint an inclusive government and put women and Christians in high leadership positions. The Egyptian people and the international community are looking to him to follow through on those commitments.

But I heard from Christians who want to know that they will be accorded the same rights and respect as all Egyptians in a new government led by an Islamist party. They wonder, understandably, will a government looking explicitly to greater reliance on Islamic principles stand up for non-Muslims and Muslims equally? Since this is the first time that Egypt has ever been in this situation, it’s a fair question. Egyptians are building a brand new democracy. What it will look like, how it will work, how it will handle religious pluralism – Egyptians will be writing the answers to those and many other questions for years to come.

As I told the Christians with whom I met, the United States does not take the side of one political party over another. What we do is stand firmly on the side of principles. Yes, we do support democracy – real democracy, where every citizen has the right to live, work, and worship how they choose, whether they be Muslim or Christian or from any other background; where no group or faction can impose their authority or their ideology or their religion on anyone else; where there is healthy competition, and what we call checks and balances, so no one institution or leader gets too powerful and the rights of all citizens are respected and protected.

The Egyptian people will look to their elected leaders to protect the rights of all citizens and to govern in a fair and inclusive manner, and so will we. And if voters make different choices in future elections, then they and we will expect their leaders to respond to the will of the people and give up power. We are prepared to work with the leaders that the Egyptian people choose. But our engagement with those leaders will be based on their commitment to universal human rights and universal democratic principles.

Another important aspect of Egypt’s transition is whether citizens themselves respect each other’s differences. Now we saw that capacity vividly in Tahrir Square, when Christians formed a circle around Muslims in prayer, and Muslims clasped hands to protect Christians celebrating a mass. I think that spirit of unity and fellowship was a very moving part of how Egyptians and all the rest of us responded to what happened in those days in that square. And if, in the years ahead, if Egyptians continue to protect that precious recognition of what every single Egyptian can contribute to the future of their country, where people of different faiths will be standing together in fellowship, then they can bring hope and healing to many communities in Egypt who need that message.

As we look to the future – not only in Egypt, not only in the newly free and democratically seeking states of North Africa and the Middle East, but far beyond – we will continue to advocate strongly for religious freedom. This is a bedrock priority of our foreign policy, one that we carry out in a number of ways.

Earlier today, the United States did release our annual International Religious Freedom Report. This is the fourth time I’ve had the honor of presenting it. It comprehensively catalogues the official and societal restrictions people around the world face as they try to practice their faith, and it designates Countries of Particular Concern that have engaged in or tolerated particularly severe violations of religious freedom. This report sends a signal to the worst offenders that the world is watching, but it also provides information to help us and others target our advocacy, to make sure we reach the people who most need our help.

In the Obama Administration, we’ve elevated religious freedom as a diplomatic priority. Together with governments, international organizations, and civil society, we have worked to shape and implement United Nations Human Rights Council Resolution 16/18, which seeks to protect people under attack or discriminated against because of their faith. We raise these issues at the highest levels in international settings; I personally have discussed religious freedom in every region of the world, sometimes over and over again. We’ve appointed our first envoy to the Organization of Islamic Cooperation. We’ve launched a strategic dialogue with civil society, in which we collaborate with religious leaders and their communities to promote religious freedom, conflict prevention and mitigation, development, and inter-religious dialogue. It includes a Religion and Foreign Policy Working Group that has provided concrete recommendations on how we can strengthen our approach to religious freedom and engagement with religious communities.

Beyond diplomacy, we expanded our assistance to individuals under attack because of their religious beliefs and to human rights activists working in hostile environments to promote religious freedom. These men and women are doing vital, often dangerous work with great courage, and we are proud to stand with them.

As part of our human rights dialogue with China, for example, we’ve taken Chinese officials on site visits to see how religious organizations in our country provide valuable social services. We organized a visit to a Catholic charity that provides help to people with intellectual disabilities, an organization that fights discrimination against Arab-Americans, and more.

We’re also taking the message of tolerance and inclusion to young people. A few years ago, Hannah Rosenthal, our Special Envoy to Monitor and Combat Anti-Semitism, and Farah Pandith, our Special Representative to Muslim communities, attended an OSCE tolerance summit together, and they came away with an idea. They began asking young people to pledge to spend one just hour working with people who don’t look like them or pray like them. Jews were encouraged to volunteer to clean a mosque, Muslims to volunteer to help elderly Christians get to church, and many other examples. The campaign, now called 2012 Hours Against Hate, has elicited commitments from young people around the world to spend tens of thousands of hours walking in someone else’s shoes. It’s even become one of the London Olympics’ official initiatives.

And that’s something we all have a responsibility to do. Seven years ago when I was a Senator, I spoke at a dinner on religious liberty, and I challenged everyone there to think of ways that we could personally further religious freedom, including, in the words of Eleanor Roosevelt, in "those small places, close to home." I said that it was up to each of us to ensure that our nation, which has always been an exemplar of religious freedom, continues to be.

Our mission is as important today as it has ever been.

The United States was founded, amongst others, by people fleeing religious persecution who dreamed of a place where they could live according to their beliefs, without fear, without shame, without the need to hide. And today, we are that place. With all of our challenges, there is no doubting the importance of religion to the vast majority of Americans or to the fact that people of all faiths and people of no faith live in America openly and at peace with each other. The religious life of our nation is vibrant and alive. And that has been possible because of our citizens’ capacity over time for tolerance and respect, but also because of the work of our government, all three branches, to uphold our Constitution, to take extraordinary care not to favor one religion over another, and to protect equally the rights of all.

This has required perpetual vigilance and effort, and we all know there have been clashes and stumbles and vigorous impassioned debate along the way. We are still searching for and moving toward that more perfect union. Of course, we, like any non-divine entity, are not perfect. But we should be proud and grateful for the wisdom of our founders and for the diligence of those who came after to protect this essential freedom. It is rare in this world. But it shouldn’t be.

Because people aren’t asking for much. They just want to worship their god and raise their children and make their homes and honor their ancestors and mourn their loved ones in a way that speaks to their hearts and reflects their beliefs. What could be more fundamental to human dignity than that?

That is what religious freedom makes possible. And that is why the United States will also stand for the value, the principle that religious freedom represents, not only for us but for people everywhere. It is not only a value that we enshrined in our constitution, but we know from long experience it goes right to the heart of the stability and security of so many countries in the world. And in this interconnected world we live in, that means it affects the security and stability of the United States of America. So thank you for understanding the importance of this value and principle, and I hope for seeking ways that we all can continue to further it, to protect it, and to spread it.

Thank you very much. (Applause.)

Now, I think we will maybe take a few questions, Jessica. Okay. Well, in no particular order, this lady right there.

QUESTION: Thank you.

SECRETARY CLINTON: And here comes a microphone.

QUESTION: Thank you. Thank you so much, Madam Secretary, for what you do in the world and for our United States. My name is Samia Harris, and I’m Egyptian American, and thank you very much for caring about Egypt. I’m the founder of Democracy for Egypt, and so my question to you, Madam, is: It’s not only the Christians that are worried in Eygpt; the liberals are, too. And I don’t know if you have read the last report from Al-Jama’iyya al-Wataniyya lit-Taghyir, that – the change for Egypt, it really is asking President Morsi right now that he is not delivering what he promised in forming the new government. And you have mentioned that you will be observing closely, and there will be steps to be taken, if you can enlighten us on what’s next. Thank you so much for your effort.

SECRETARY CLINTON: Well, thank you. And let me start by saying that I do recognize that a democratic transition is a complicated one for any country. And in all humility, it took us quite some time to get it right, to include all of our citizens, starting with African Americans and women, and to really fulfill not only the letter of our Constitution but the aspirations of our people. So as I monitor what is happening in Egypt, I am conscious of how challenging it is to get off on the right footing, to be absolutely clear what your principles and values are.

And as you’re aware, there was certainly a very concerted effort by the President and the Freedom and Justice Party and others associated with it, including the Muslim Brotherhood, to make commitments about the kind of inclusivity that the government would represent, the respect that all Egyptians would be held in, and the protection of the rights of all Egyptians. Now we are waiting to see how that gets translated into action.

And we are certainly aware of the forming of the new government, with the announcement of a new Prime Minister. We’re waiting to see who’s in that government. That will be an important step along the way. We are looking for ways to try to support the government, particularly in fulfilling the economic aspirations of all Egyptians. But we are going to judge by actions, not words. And the actions are really just at the very beginning stages.

I think it’s important to make absolutely clear to everyone that we are not supporting any individual party or any individual. There seems to be a view on the part of some that we are. But that is not the case, never has been the case. We have supported a transition that we hope does lead to a democracy, which, as we have made clear, is not just about elections. I think there were mistakes in the past in some of the ways that we shorthanded our support for democracy in our country, that people thought, okay, let’s have an election, then we’re a democracy and maybe we never have to have another one. One election, one time, and that’s it; we don’t have to be held to any standard about how we actually continue to reach out and include people and respect people. And I’ve tried to make it very clear that that is not the case, that an election is not a democracy make.

So we’re emphasizing the independence of the press, the freedom of expression, freedom of religion, respect for minorities. The kinds of things that we have learned over many years of practice now are what sustains a democracy. And we’re hoping that as Egypt adopts a new constitution, as it votes again for a parliament, as its government takes office, we will see a recognition, a commitment to what we view as essential for democracy to be sustainable.

Now, I am concerned that respect for religious freedom is quite tenuous. And I don’t know that that’s going to quickly be resolved, but since 2011 and the fall of the Mubarak regime, sectarian violence has increased. Attacks on Christians and Muslims, sectarian violence from – in both communities has cost lives, and we don’t think that there’s been a consistent commitment to investigate and to apply the laws equally to the perpetrators of such violence. That then sends a message to the minority community in particular but to the larger community that there’s not going to be any consequences for acting out one’s own religious prejudices or social insecurities. And that’s the kind of recipe that can quickly get out of control in terms of conflict and also undermine the new democracy.

So I am urging the Egyptian Government at all levels to respect the rights of all Egyptians. And I’m urging those who are concerned, not only Christians but also moderates, liberals, secularists, to organize themselves. I mean, this is something that I started talking to the Tahrir Square veterans about shortly after the fall of Mubarak, that it’s been my experience that when democratic space opens up, when freedom opens up in authoritarian regimes falling, those who are unorganized will not be successful. How’s that for a profound statement? (Laughter.) But all too often, people who are in the moderate, liberal world don’t have the same commitment to organization and follow-through that those whose beliefs are so certain that they know exactly what they’re going to try to achieve.

So there is the religious dimension, the constitutional inclusivity dimension, but there’s also the political dimension, that in a democracy you have to get out there and work to elect people who represent your views. And otherwise, you are going to be sidelined. So it is my hope that as we judge Egypt’s leaders by their actions, that Egyptian activists really get more focused on how to influence the government themselves. And I know this is a long haul, but that’s the way democracy works. It doesn’t happen overnight.

Oh my goodness. (Laughter.) I don’t know. Jessica, you should be calling on these people. I think – you know. This young man right there in the middle. Yes, sir. In the striped shirt.

QUESTION: (Inaudible). It’s very lucky to see you here.

SECRETARY CLINTON: Thank you.

QUESTION: Religion is sometimes mixed with some other issues like terrorism and separatism. And the terrorists and the separatists usually takes religion as a tool to mobilize supporters. So how to balance the dilemma of protecting religion, religious freedom, and counterterrorism as well as counter-separatism? Thank you.

SECRETARY CLINTON: That’s an important question, because oftentimes when we talk about religious freedom, there is a tendency for people to worry about the free exercise of religion is somehow supporting terrorists and separatists.

I have almost the opposite view. I think the more respect there is for the freedom of religion, the more people will useful ways to participate in their societies. If they feel suppressed, if there is not that safety valve that they can exercise their own religion, they then oftentimes feel such anger, despair that they turn to violence. They become extremists.

Now, there will always be people in nearly every society who are going to believe that God is talking right to them and saying, what you really need to do is overthrow the government. What you really need to do is to kill the unbelievers. What you really – there will be people like that. But we’re talking about organizing society for the vast majority of people, having people who exercise their religious beliefs lawfully protected by the law, and people who engage in violence, harassment, intimidation, or other antisocial, criminal behavior punished by the law.

But one should not be punished or harassed merely because of who one is or what one believes unless there are actions associated with that. And that often is the difficult rub in many areas when we talk about religious freedom. And it’s not just religions against one another, it’s even within religions – within Christianity, within Judaism, within Islam, within Hinduism – there are people who believe their version of that religion is the only right way to believe.

And so, in some of the countries we are most concerned about that are majority Muslim countries, it’s the intimidation and violence against Muslims who are in minority sects that we most worry about. We watched for many years the conflict in Northern Ireland against Catholics on the one side, Protestants on the other. So I think you’re right that there always are issues about terrorism, about separatism, but those should be dealt with under the law without infringing on the rights of people whose religious believes are different from the majority. So I hope that governments can begin to make those distinctions.

And it’s not only important to do because you don’t want to breed extremism, which you can do by cracking down on religion, especially if it’s associated with a different ethnic group or a tribal group, other identifying characteristics. But it’s also because if you’re not careful, people will feel that they are in a life or death struggle to protect their religion in the majority against the minority.

I remember going to Bosnia after the end of the war in Bosnia, and a woman telling me that she couldn’t believe the hostility she started to feel from her neighbors. And she said to a neighbor, "Why are you behaving like this? We’ve known each other for many years; we went to school together. We went to weddings, we buried our dead together. Why are you treating me like this?" And the answer was: "Because we were told, if we didn’t do that to you first, you would do it to us."

So if the government doesn’t step in and say no, we’re not going to let people be acting this way, we’re not going to let them be discriminating, we’re not going to let them be harming others on the basis of religion or any other characteristic, but focusing on religion, it can get out of control of any government. And then, unfortunately, as we know, governments can sometimes stoke religious discrimination for their own political reasons. You got problems at home, the economy’s not doing so well, let’s find an enemy, and let’s go find those people over there. They’re a different religion, and that gets everybody excited. And then you can light a match and you can’t put the fire out.

So I think that we need to be very thoughtful in separating out the problems posed by extremism – no matter where they’re coming from – and terrorism, from legitimate religious differences that should be tolerated, respected, and protected.

MS. MATTHEWS: We have time for just one more. And may I ask you, when Secretary Clinton (inaudible).

SECRETARY CLINTON: Jessica, why don’t you call on the last person? (Laughter.)

MS. MATTHEWS: (Inaudible) one in the back.

QUESTION: Thank you, Secretary Clinton. I’m Randa Fahmy Hudome. I am serving as general counsel of the American-Egyptian Strategic Alliance. We’re a new lobbying organization working to bring together Egypt and the United States in a stronger alliance.

One of the issues we’ve been talking to the new Egyptian Government about is this issue of religious freedom. And we’ve told them, "Look to your left," meaning to places like Jordan, Lebanon, and Palestine, where Muslims and Christians – particularly in Palestine – have lived in peace for centuries. And so I’m wondering if your conversations touched upon that; look to your fellow Arab countries where this is not a problem, frankly.

And then just a quick follow-up question: I appreciate your emphasis on America, but we also have our problems here with respect to, of course, Islamophobia, which I’m sure you’re very aware of. And I’m wondering whether you have any comments about this recent activity in Congress targeting one of your own aides.

SECRETARY CLINTON: Well, as to the first question, I think it is important to look at the historical precedents. But there’s also been a lot of disturbing recent developments with Christians being attacked and driven out of Iraq, Christians in Syria feeling like they are really going to be at risk almost regardless of what develops in the terrible conflict that is now raging, Christians feeling that they’re under pressure in lots of places in the Middle East, where, as you rightly say, they have lived for centuries side by side. And I think it’s quite important for us to unpack that. Why is it happening now? What is it? And of course, it’s a new political identity. It’s an effort by Islamists, primarily but not exclusively, to claim democracy but trying to figure out how it fits with their preexisting frameworks of belief.

So there is a lot of tension and concern going on right now across the Arab world, particularly in places where Christians have lived and would love to continue living. And as several Christians in Egypt told me, "Our people have been here. I can trace my family back 2,000 years. I love this country. I want to be a part of this country. I want to help build this country. I just hope I’m going to be able to."

So it’s at this point that leadership is incredibly important. Leaders have to be active in stepping in and sending messages about protecting the diversity within their countries. And frankly, I don’t see enough of that, and I want to see more of it. I want to see more of it, and we did see some of that in our own country. We saw Republicans stepping up and standing up against the kind of assaults that really have no place in our politics.

So we have to set an example. There’s no doubt about that. And we have to continue doing so. But we also have to expect other leaders to do the same. And when I think about how scared so many minorities – religious minorities – are all over the world, and governments are not – I mean, I believe that governments have a bigger role to play and more leverage than they exercise. I think too many governments – particularly in these fast-transitioning societies where there’s so much going on at the same time – too many governments believe that religious freedom is something you get to after you deal with everything else; it’s just not a priority for them.

And we want to raise it up on the visibility list of what they need to be dealing with, and to try to send a clear message: You need to stand up for the rights of all your people. You are now a leader of a diverse society. If you’re in Iraq, you need to be protecting every community, not just one or maybe two at the most. If you’re in Lebanon, you need to be standing up for the rights of everyone in the community, every confession. And similarly in Egypt or Pakistan or Indonesia or China or India or anywhere, leaders need to be out front saying that, and then acting on it.

So I’m hoping that we will see more actions that move in that direction. And the United States will continue to try to push and prod and persuade and then, if necessary, look at ways to use consequences that can send a very clear message that we believe that you will not be successful, you will not be stable, you will not be secure, and you will certainly not have a sustainable democracy.

Let me add one other thought about this, though. I think in some societies where we’re seeing – to go back to the young man’s question – terrorism, extremism and religion, there can also be fertile ground out of which that grows if a government is not paying attention to the needs of all of its people. So it’s not just we respect your right to exercise your religion, but we also are going to have policies that if you’re living in Northern Nigeria, you’re going to see more development, so that you can not only take on Boko Haram on the security front, but you take it on on the economic development front. There are lots of ways to try to knit this together. And it is probably the most exciting time but the most daunting time to be a leader in the world right now, especially in these new transitioning democracies, because there is just so many high expectations that will be so difficult to meet.

So stand for principles, stand for values, gain people’s trust that you’re trying to help their lives improve, and you’re going to leave to them the space they should have to exercise the most precious freedoms that any human being should have regardless of who their leaders are, and begin to make that case. And the United States will stand ready to assist in any way possible.

Thank you very much. (Applause.)

Secretary Of Defense Leon E. Panetta; Ambassador Anne Patterson, United States Ambassador to Egypt

Secretary Of Defense Leon E. Panetta; Ambassador Anne Patterson, United States Ambassador to Egypt

Drinking where kids don’t fit in

Drinking where kids don’t fit in

HAITI AND CHOLERA

Map Credit:  U.S. State Department
FROM: U.S. STATE DEPARTMENT
Fast Facts on the U.S. Government's Work in Haiti: Cholera
Fact Sheet
Office of the Haiti Special Coordinator
July 25, 2012
The Challenge
On October 21, 2010, the Haitian Ministry of Health and Population (MSPP) confirmed cases of cholera for the first time in at least a century.

Accomplishments
At the request of the Government of Haiti, the U.S. Centers for Disease Control and Prevention (CDC) and the U.S. Agency for International Development (USAID)—already helping Haiti to build sustainable health systems to detect and combat the spread of communicable diseases in the aftermath of the devastating January 2010 earthquake—immediately began working with the MSPP and the Pan American Health Organization (PAHO) to lessen the severity of the outbreak.

Through June 2012, the U.S. Government (USG) provided expertise and more than $95 million to prevent additional cholera cases and support the response by:
Distributing products to purify drinking water, soap for washing hands and household items, and oral rehydration salts to prevent dehydration in people with acute, watery diarrhea.
Working side-by-side with MSPP and other partners to establish a national system for tracking cases of cholera.
Supporting staff and commodities for 45 cholera treatment facilities and 117 oral rehydration posts through cooperative agreements with USAID, CDC, the President’s Emergency Plan for AIDS Relief (PEPFAR) partners, other non-governmental organizations, and MSPP.
Developing cholera education materials to train more than 6,000 community health workers who are funded to conduct educational activities and outreach on cholera prevention and treatment in communities throughout Haiti.
Improving access to clean water in communities by providing support to drill new wells, repair others, and promote safe water practices.
Evaluating the effectiveness of large-scale distributions of hygiene items in collaboration with Haiti’s National Direction for Potable Water and Sanitation (DINEPA) and the U.N. Children’s Fund (UNICEF).

As of June 2012, Haiti has reported approximately 554,114 cases of cholera and an estimated 7,249 deaths. Though deaths from cholera were high in the first few months of the epidemic, Haitian-led, internationally-supported efforts have helped to significantly reduce fatality rates.

Challenges Ahead
Access to clean water and availability of sanitation systems are limited in Haiti, and cholera is likely to persist until access to adequate water and sanitation improves. The USG is committed to strengthening the Haitian healthcare system to contain the future outbreaks and treat the Haitian people. In line with MSPP’s desire to integrate cholera prevention and treatment into overall health programming, the USG is working more broadly on the prevention and treatment of all causes of diarrheal diseases. To reduce vulnerability to cholera and other diarrheal diseases, we are supporting the Haitian government and USG partners in improving access to treated drinking water at the community and household levels in both urban and rural communities. In addition, the USG, in collaboration with PAHO, UNICEF, and the Haitian government, helped launch the Coalition on Water and Sanitation for the Elimination of Cholera on the island of Hispaniola. This initiative calls for major investments in safe water, sanitation, and hygiene, particularly in Haiti.



TWO UBS CLIENTS GO TO PRISON FOR HIDING MONEY IN SWISS BANK ACCOUNTS

FROM: U.S. DEPARTMENT OF JUSTICE
Monday, July 30, 2012

California UBS Clients Sentenced to Prison for Hiding Asssets in Secret Bank Accounts Around the WorldSean Roberts and Nadia Roberts of Tehachapi, Calif., were sentenced today before U.S. District Court Chief Judge Anthony W. Ishii in Fresno, Calif., to 12 months and 1 day in prison for hiding millions of dollars in secret offshore bank accounts in Switzerland and other banks around the world. The Roberts were also ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $709,675, and to pay more than $2.5 million to resolve their civil liability with the IRS for failing to file the required Reports of Foreign Bank and Financial Reports (FBARs).

According to court documents and statements made in court, Sean and Nadia Roberts filed false individual U.S. income tax return for 2004 through 2008 in which they failed to report that they had an interest in or a signature authority over a secret Swiss financial account at UBS, which was subsequently transferred to the Swiss branch of a Liechtenstein bank. They also failed to report several other foreign accounts in the Isle of Man, Hong Kong, New Zealand and South Africa. The Roberts failed to report any income earned on the foreign accounts and falsely deducted millions of dollars in transfers from their domestic business to the Swiss bank accounts on their corporate tax returns. The false deductions allowed the Roberts to under-report their income on their individual income tax returns. The Roberts previously operated the National Test Pilot School (NTPS) in Mojave, Calif. NTPS is a non-profit educational institute that trains test pilots from domestic and foreign aerospace industries and governments. The Roberts also owned and operated Flight Research Incorporated, which owns and maintains most of the aircraft used by NTPS.

Based on court records, in or about 1991, the Robertses opened a bank account at an Isle of Man branch of a United Kingdom bank, in the name of nominee entity Interline Trade Associates Limited. From at least 2002 through 2004, the Robertses transferred funds from their company, Flight Research Incorporated of Mississippi (FRI Mississippi), to the Interline account, and caused the transfers to be falsely deducted as interest payments on corporate income tax returns as a sham aircraft loan.

Court records also established that, in or about May 2008, the Robertses closed their Excalibur UBS account and transferred over $4.8 million to an account in Excalibur’s name at a Swiss branch of a Liechtenstein bank. This was done after the Robertses learned that UBS was under investigation by U.S. authorities and that they should leave UBS to ensure the continued secrecy of their account. In 2008, the Robertses transferred more than $1.4 million from FRI Mississippi to the Excalibur account at the Liechtenstein bank, and again caused the transfers to be falsely deducted on a corporate income tax return. Also in May 2008, the Robertses opened a bank account in the name of Modest Winner, a nominee Hong Kong entity, at the Liechtenstein bank. In 2008 and 2009, the Robertses transferred funds from another of their entities, Tisours, LLC, to that Modest Winner account. In 2009, the Robertses transferred that account to a bank in Hong Kong. The Robertses also maintained numerous undeclared foreign bank accounts in New Zealand and South Africa held in their own names. Many of the financial transactions were done with the assistance of the same operator of the Swiss wealth management and tax advisory business.

In February 2009, UBS entered into a deferred prosecution agreement under which the bank admitted to helping U.S. taxpayers hide accounts from the IRS. As part of their agreement, UBS provided the U.S. government with the identities of, and account information for, certain U.S. customers of UBS’s cross-border business, including the Robertses.

Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, commended the investigative efforts of IRS - Criminal Investigation special agents, who investigated the case, and Tax Division Trial Attorneys Timothy J. Stockwell and John P. Scully, who are prosecuting the case.

U.S. AMBASSADOR CROCKER SAYS AFGHANISTAN MOVING TOWARD NEXT STAGE OF DEVELOPMENT

FROM: U.S. DEPARTMENT OF DEFENSE

Crocker: Afghanistan on Track for Next Stage in Development
By Cheryl Pellerin
American Forces Press Service

WASHINGTON, July 31, 2012 - Afghanistan is on the right trajectory to move to the next stage in its development, U.S. Ambassador to Afghanistan Ryan C. Crocker said yesterday in an interview with NPR's Renee Montagne.

Nearly a year to the day of his July 25 appointment last year, the career diplomat said he is stepping down at the end of this month due to health reasons.

"What I'll miss the most is the chance to see Afghanistan move to the next stage of its development at every level -- economic, governance and security -- because I think they're on the right trajectory," Crocker said.

"I felt we had a pretty good last year in setting that up," he added. "I would have liked to have been part of the process of seeing it through. I'm confident they will get there. It would have been nice to be on deck to watch them do it."

Crocker was the sixth ambassador to Afghanistan since 2001. He had retired from the Foreign Service in April 2009 after a 37-year career and was serving as dean of the Bush School of Government and Public Service at Texas A&M University. In April 2011, President Barack Obama nominated Crocker to serve as the next U.S. ambassador to Afghanistan, and Crocker came out of retirement to accept the position. He was unanimously confirmed by the Senate in June 2011.

Crocker served as ambassador to Iraq from 2007 to 2009 after three years as ambassador to Pakistan.

He joined the National War College faculty as international affairs advisor in 2003, and from May to August of that year, he was in Baghdad as the first director of governance for the Coalition Provisional Authority.

From 2001 to 2003, he was deputy assistant secretary of state for Near Eastern affairs. He served as ambassador to Syria from 1998 to 2001, ambassador to Kuwait from 1994 to 1997, and Ambassador to Lebanon from 1990 to 1993. Since joining the Foreign Service in 1971, he has had assignments in Iran, Qatar, Iraq, Egypt and Washington.

Crocker was assigned to the U.S. Embassy in Beirut during the Israeli invasion of Lebanon in 1982 and the bombings of the embassy and the Marine barracks in 1983.

As U.S. ambassador to Afghanistan, one of Crocker's accomplishments was to help to secure international pledges of aid worth $16 billion at a donor's conference held this month in Tokyo.

"The Tokyo conference and its outcome, I think, is highly significant because it produced a document in which the international community accepts certain obligations to provide funding, and the Afghan government accepts certain obligations to fight corruption, to build institutions," Crocker said.

As the international community sees the Afghan government deliver on its own obligations, the ambassador added, "both the incentive and the pressure on [the] international community to provide the promised assistance simply increases."

According to news reports, Afghanistan agreed to new conditions to deal with internal corruption, and donors agreed to hold a follow-up conference in 2014 in the United Kingdom.

Crocker said he found it "highly encouraging" that Afghan President Hamid Karzai has created a 14-point decree for all ministries to follow as they begin to deliver on their side of the undertaking. "The way he frames it now is that the international community has done everything that Afghanistan could conceivably ask," Crocker said. "It is now up to the Afghans to put their own house in order."

The ambassador also gave three reasons why he expects no civil war in Afghanistan after NATO's combat drawdown is complete at the end of 2014.

"When I got there at the beginning of 2002, it looked like Berlin in 1945," he said, "and that was because of the Afghan civil war. No one wants to go back to that."

A second point, he said, is that "minority groups clearly see their interests [in] having a voice in national decisions."

"No major minority politician is thinking in terms of separatism," he said. "It's all [about] how can they be more, rather than less, involved in Kabul."

A third point is the enemy itself, Crocker said.

"The Taliban and their allies are equal opportunity killers: Pashtuns, Tajiks, Uzbeks. ... In a sense, an enemy who indiscriminately kills all Afghans regardless of community or ethnicity or political affiliation has actually been a unifying factor," he said.

Crocker's final impression of the Afghan capital of Kabul, he said, is of "a vibrant, bustling city with shops open, streets crowded, horrendous traffic -- which some would consider a problem, but frankly I see as a sign of confidence in the security and stability of the capital."

There's a long way to go, he said. "But from the devastated ghost town of 2002 to the Kabul of today, it's an extraordinary achievement," he added. "And I leave with the sense of a city that is very, very much alive and moving into the future."

U.S. SEC. OF DEFENSE SAYS U.S. READY TO HELP TUNISIA

Map Credit:  U.S. State Department. 

FROM: U.S. DEPARTMENT OF DEFENSE

U.S. Ready to Help Tunisia With Democracy, Panetta Says
By Jim Garamone
American Forces Press Service

CARTHAGE, Tunisia, July 30, 2012 - The 6,565 American troops memorialized at the North Africa American Cemetery here signify America's commitment to freedom, Defense Secretary Leon E. Panetta said during a visit today.

Panetta walked among the 2,841 graves and read the names of 3,734 Americans missing from battles that drove the Axis powers from North Africa in World War II.

In November 1942, the Allies launched Operation Torch to drive the Axis from the southern shores of the Mediterranean Sea. "After six months of fierce fighting and many lives that were lost, Tunisia was liberated from the Axis powers," he said after placing a memorial wreath.

The North Africa campaign and the fight against Nazi Germany was one chapter in the story that has been unfolding for centuries, the secretary said. "It is the story of people struggling to overcome tyranny and oppression," he said. "This struggle ... to achieve basic human rights and freedoms is guided by a simple dream: the dream to secure a better life for our children."

That story has a new chapter, written by the people of Tunisia, Panetta said. In January 2011, Tunisians peacefully took to the streets to demand freedom and basic human rights. "This is the birthplace of the Arab Spring, when the Tunisian people rose up in peaceful protest to demand democratic change," Panetta said. "It not only inspired the region, it inspired the world."

The secretary minced no words, telling the Tunisian people "that America stands with them and that we, too, are inspired by their revolution." The United States, he said, supports the Tunisian people as they continue to strengthen their democracy.

Earlier in the day, Panetta met with Tunisian President Moncef Marzouki, Prime Minister Hamadi Jebali and National Defense Minister Abdelkarim Zbidi. He told them the United States is ready to help them strengthen their economy and talked about shared security concerns.

"I also had the opportunity in my meetings today to commend the Tunisian armed forces for the positive role they are playing in this critical time of change," the secretary said.

The U.S. and Tunisian militaries have long been partners, and the revolution now gives the two countries the opportunity to partner more closely.

"In my discussions today, I was pleased to begin a dialogue on how we can deepen that cooperation in a range of common concerns: countering violent extremism and terrorism to ensure regional stability," Panetta said. "I also conveyed that the Department of Defense stands ready to help Tunisia strengthen the capacity of its defense institutions as part of the broader effort to support Tunisia's democratic transition."

While there is uncertainty in the region deriving from the Arab Spring, there is also opportunity, Panetta said. "For generations, the United States has been the world's greatest force in advancing peace and freedom and prosperity," he added. "We have paid a heavy price to protect our country, as witnessed by this memorial. Today is no different."

The United States is committed to helping people across the region and around the world achieve the freedoms they deserve, Panetta said.

"We are all grateful for the Tunisian government's partnership, and we are inspired by their example to the world," he said. "The torch of greater peace and freedom and democracy burns brightly in this historic land."

Convite à imprensa: a Mars Express apoia a aterragem em Marte da nave Curiosity da NASA

Convite à imprensa: a Mars Express apoia a aterragem em Marte da nave Curiosity da NASA

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