NSA AND U.S. CYBERSECURITY

From:  U.S. Department of Defense

FROM: U.S. DEPARTMENT OF DEFENSE
U.S. Should Lead Cybersecurity Efforts, NSA Director Says
By Amaani Lyle
American Forces Press Service

WASHINGTON, Oct. 4, 2012 - Analyzing and solving the challenge of cybersecurity is critical to the global economy, the National Security Agency director said during the U.S. Chamber of Commerce Cybersecurity Summit here today.

U.S. Army Gen. Keith Alexander, who also heads U.S. Cyber Command and the Central Security Service, discussed the costs and consequences of cybersecurity issues on commerce during his keynote address at the summit.

Well-known, seemingly invulnerable companies such as Symantec, L3, Sony, Google, Visa and even the U.S. Chamber of Commerce itself have been hacked, Alexander said, noting that even the military and government agencies have fallen prey to hackers.

"Either you know you've been hacked, or you've been hacked and you don't know you've been hacked," Alexander said. The greatest threats stem from theft of intellectual property, and disruptive attacks, Alexander said, citing examples since May 2007 that include attacks against Estonia, Georgia, Latvia and Lithuania.
"Distributed denial of service attacks ... are gaining in momentum, intensity and frequency," he said, emphasizing the urgency of defending the United States from attacks and exploitation.

Industry partnership with government agencies such as the Defense Department, Department of Homeland Security, and Federal Bureau of Investigation to counter threats will be a critical component of fortifying cybersecurity, Alexander said, noting that U.S. should develop the solution.

"Our country ... built this Internet and all the stuff that goes with it, and it is absolutely superb," Alexander said. "We're the nation that developed the Internet; we ought to be the first to secure it."

According to Alexander, last year, the average number of emails sent per day was 419,000 billion, or about 70 emails per person. Additionally, there were 4.7 billion Google searches per day and still billions of steadily increasing bytes of global traffic, the general explained.

From a commerce perspective, the growth of new major companies in less than a decade demonstrates the importance of protecting intellectual property and proprietary information, Alexander said. The general offered compelling examples of growth and how quickly it could have been stymied if privileged information had been compromised.

In 2002, he said, Amazon was worth $851 million, compared to $12.83 billion today. Apple, worth $5.7 billion in 2002, is now worth a staggering $148 billion today. Google, worth $3.1 billion in 2004, is now valued at $43 billion in 2012, he said. "The value ... is extraordinary," Alexander said, adding that the government depends on similar networks to defend the country.

"If we've all been hacked, that means that we can all be attacked, and if we can be attacked, we have a vulnerability that ... is critical to the operation of this country," the general said.

Education, training and a defensible architecture such as cloud computing, however, can help steel government networks from such vulnerabilities, Alexander explained. "The cloud ... has tremendous opportunities for a more defensible architecture," Alexander said. "So ... the Defense Department and the [intelligence] community moving to a thin, virtual client approach makes a lot of sense."

Alexander also noted the importance of military, government and industry developing a common view of cyberspace issues and their solutions. "We have to have that understanding, especially when you talk to your [chief executive officers] and others about the solutions that you're trying to put in there," he said.

U.S. SECRETARY OF STATE CLINTON COMMENTS ON PHILIPPINE FRAMEWORK AGREEMENT REGARDING MILF

FROM: U.S. STATE DEPARTMENT

Finalization of the Philippines - Moro Islamic Liberation Front Framework Agreement
Remarks
Hillary Rodham Clinton
Secretary of State
Washington, DC
October 7, 2012

The United States welcomes the announcement of the framework agreement between the Government of the Philippines and the Moro Islamic Liberation Front. This agreement is a testament to the commitment of all sides for a peaceful resolution to the conflict in the southern Philippines. The next steps will be to ensure that the framework agreement is fully implemented. We encourage all parties to work together to build peace, prosperity and greater opportunities for all the people of the Philippines.

MORE INFORMATION FROM U.S. STATE DEPARTMENT

U.S.-PHILIPPINES RELATIONS
The United States recognized the Philippines as an independent state and established diplomatic relations with it in 1946. Except for the 1942-45 Japanese occupation during World War II, the Philippines had been under U.S. sovereignty since the end of the Spanish-American War in 1898.

U.S.-Philippine relations are based on strong historical and cultural links and a commitment to democracy and human rights. The United States has designated the Philippines as a Major Non-NATO Ally, and there are close and abiding security ties between the two nations. The Manila Declaration signed in 2011 reaffirmed the 1951 U.S.-Philippines Mutual Defense Treaty as the foundation for a robust, balanced, and responsive security partnership. There is also a focus on economic, commercial, and people-to-people ties. There are an estimated four million Americans of Philippine ancestry in the United States, and more than 300,000 U.S. citizens in the Philippines. An estimated 600,000 Americans visit the Philippines each year. Many people-to-people programs exist between the United States and the Philippines, including Fulbright, International Visitors, and Aquino Fellowship exchange programs.

FROM: CIA WORLD FACTBOOK

The Philippine Government faces threats from several groups, some of which are on the US Government's Foreign Terrorist Organization list. Manila has waged a decades-long struggle against ethnic Moro insurgencies in the southern Philippines, which has led to a peace accord with the Moro National Liberation Front and on-again/off-again peace talks with the Moro Islamic Liberation Front. The decades-long Maoist-inspired New People's Army insurgency also operates through much of the country. The Philippines faces increased tension with China over disputed territorial claims in the South China Sea.

CONVICTED FELON FRAUDSTER CHARGED WITH STEERING RETIREES TO FRAUDULENT INVESTMENT SCHEMES

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

SEC Charges Unlicensed Financial Advisor James S. Quay for Defrauding Investors in Atlanta Area

The Securities and Exchange Commission today charged an Atlanta-based unlicensed financial advisor with a history of steering retirees into fraudulent investment schemes with defrauding two elderly women he convinced to invest with him directly.

The SEC alleges that James S. Quay (Quay) and his brother Jeffrey A. Quay facilitated a scheme in which the women invested $560,000 with the understanding that they were investing in a covered-call equities trading program. The Quays created a sham limited partnership called Trinity Charitable Solutions (TCS) to purportedly operate the program. However, TCS never became a legal entity, and instead the Quays merely deposited the investors’ money in a Scottrade account and personally misused at least $180,000 to afford mortgage payments, lavish restaurant meals, and membership at a massage spa.

According to the SEC’s complaint filed in U.S. District Court for the Northern District of Georgia, Quay concealed from these two women and other investors that he is a convicted felon and disbarred attorney. Previously, Quay steered investors toward fraudulent investment opportunities from which he received $1.4 million in illicit sales commissions. For instance, Quay was an active sales agent and recruiter for a multi-million dollar Ponzi scheme conducted by a Georgia attorney and a scheme involving an unregistered covered-call equities trading program. He has used various aliases and fake names including Jim Quay, Stephen Quay, and Stephen Jameson.

The SEC alleges that Quay would often host free dinner seminars that target retirees in order to gain their trust. Quay would then encourage the attendees to schedule private consultations with him to discuss their financial situation in greater detail. Attendees would receive a biography that detailed Quay’s educational background and professional designations. The follow-up consultations would often take place at Quay’s personal office, where his legal diplomas, bar certification, and other professional licenses and certifications were displayed on the wall. While he would regularly tout his academic background and legal expertise, he typically would not disclose to investors his criminal background, disbarment, and loss of professional designations and licenses.

Quay agreed to settle the SEC’s charges by consenting to the entry of a final judgment by the court providing permanent injunctive relief under Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5. The proposed final judgment orders Quay to pay disgorgement of $1,403,638.62 plus prejudgment interest of $179,118.78 and a penalty of $450,000. Quay agreed to be permanently barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization. Quay also agreed to a penny stock bar and to be barred from appearing or practicing before the SEC as an attorney or an accountant. The settlement, in which Quay neither admits nor denies the allegations, is subject to court approval. The SEC’s litigation against Jeffrey Quay remains pending.

ARIZONA STATE REPRESENTATIVE PLEADS GUILTY TO TAKING BRIBES

FROM: U.S. DEPARTMENT OF JUSTICE
Friday, October 5, 2012

Arizona State Representative Pleads Guilty, Admits Taking Bribe to Influence Official Duties
WASHINGTON – Arizona State Representative Paul Ben Arredondo pleaded guilty today in Phoenix federal court, admitting that he solicited and took a bribe in exchange for promises of official action both as a city councilmember and a state representative. Arredondo also pleaded guilty to mail fraud, admitting that he defrauded donors to the Ben Arredondo scholarship fund. The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Special Agent in Charge James L. Turgal of the FBI’s Phoenix Field Office.

Arredondo pleaded guilty to depriving the citizens of the city of Tempe, Ariz., and the state of Arizona of his honest services as an elected official, and to committing mail fraud. He entered his guilty plea before U.S. Magistrate Judge Frederick J. Martone.

Arredondo, 65, of Tempe, was a Tempe city councilmember for approximately 16 years, until July 2010. In November 2010, Arredondo was elected to the House of Representatives of the Arizona State Legislature.

During his plea, Arredondo admitted that from February 2009 to November 2010, he solicited and accepted things of value, collectively a bribe, from representatives of "Company A," a fictitious company operated by FBI undercover agents that was purportedly seeking to develop real estate projects in Tempe. Arredondo took the bribe with the intent to be influenced in the performance of his official duties, first as a councilmember and later as an elected member of the Arizona House of Representatives. Arredondo admitted that the things he took included tickets to college and professional sporting events, some of which he caused to be mailed to his home, and tables at charity events with his choice of guests.

In exchange for the bribe, Arredondo agreed to take a number of official actions, including revealing confidential information to Company A – such as the price Tempe would be willing to accept for property and the best way to present a purchase proposal. He also agreed to use his position as a councilmember to influence the decisions of other Tempe officials in ways that were favorable to Company A; to contact various Tempe officials to facilitate and promote the company’s efforts to win support for its real estate project; and, following his election to the Arizona House of Representatives, to assure representatives of Company A that he would continue to support Company A’s project. Arredondo did not disclose that he had received anything of value from representatives of the company during any of his interactions with Tempe officials about Company A.

Arredondo also admitted during his plea that he fraudulently used the Arredondo Scholarship Fund – which he established in 2001 and operated through at least 2011 – to benefit his own relatives without informing donors. In support of the fund, Arredondo solicited and received contributions – in part by telling prospective donors that the Fund would pay for college fees and books for "average" students – and assured donors that fund payments would not go to those "whose parents have saved a college fund" or otherwise qualified for scholarships. Arredondo never told prospective donors that a portion of their donations would be used to make scholarship payments for the benefit of his own family members. Through 2011, Arredondo caused the scholarship fund to pay approximately $49,750 to three different educational institutions in Arizona on behalf of seven of his relatives. In furtherance of his scheme to defraud donors, he caused a letter sent to ASU on behalf of the fund which directed how payments should be allocated, stating: "The students are not the children nor any other direct relatives" of the fund’s administrators.

Arredondo pleaded guilty to one count each of honest services mail fraud and mail fraud. Each charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the amount gained or lost in the scheme. Sentencing has been scheduled for Jan. 22, 2013.

The case is being prosecuted by Deputy Chief M. Kendall Day and Trial Attorney Monique T. Abrishami of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney Frederick A. Battista of the District of Arizona. The case is being investigated by agents from the FBI Phoenix Field Office.

MAJOR MEDICARE FRAUD TAKEDOWN

FROM: U.S. DEPARTMENT OF JUSTICE
We are announcing charges against 91 defendants in seven Medicare Fraud Strike Force cities across the country.

From Brooklyn, to Miami, to Los Angeles, these defendants allegedly submitted approximately $430 million in fraudulent claims to the Medicare program. This represents one of the largest Medicare fraud takedowns in Department history, as measured by the amount of alleged fraudulent billings.

Today’s defendants include the owners and operators of two different hospitals, one in Miami and one in Houston; 16 medical professionals, including seven physicians, chiropractors, nurses, a psychologist, and a physical therapist.

We have made it one of our missions at the Department of Justice to hold accountable those who abuse the Medicare program for personal profit. And there are Medicare fraudsters in prisons across the country – some who will be there for decades – who can attest to our determination and our effectiveness.

Today’s actions allege multiple, brazen schemes. In Houston, for example, seven defendants are charged with running a hospital that submitted approximately $158 million in fraudulent claims to Medicare for partial hospitalization program, or PHP, services, which are designed to treat those with severe mental illness.

These defendants allegedly bribed Medicare beneficiaries with cigarettes, food and coupons redeemable for items at the hospital’s "country stores," to entice them to attend the hospital’s PHPs. But, instead of giving these beneficiaries real medical care, the hospital owners and operators allegedly plunked them in front of the television, and billed Medicare on their behalf, for millions of dollars in expensive mental health treatment.

In one of our Miami cases, the owners and operators of a psychiatric hospital are charged with paying cash kickbacks to owners and operators of assisted living facilities and halfway houses to obtain patients, and then billing Medicare for over $67 million in mental health services that were unnecessary or never even provided. The owners and operators even allegedly sought to have the government reimburse them for the kickbacks, by disguising them as legitimate expenses on cost reports submitted to Medicare.

In addition to charging today’s defendants with crimes, we are also restraining their assets. In another Miami case, for example, we are restraining 40 bank accounts, and 16 residences valued at approximately $4.6 million, that belong to the owners and operators of a home health agency charged with defrauding Medicare to the tune of approximately $74 million.

The Criminal Division will continue – together with our partners in the U.S. Attorneys’ offices, the FBI, the Department of Health and Human Services and our many state and local law enforcement colleagues – to fight Medicare fraud across the country, in the smart and effective way we have been doing.

Thank you.

EXPORT-IMPORT BANK ANNOUNCES VIETNAM ROADSHOW FOR U.S. EXPORTS

A few of the many limestone monolithic islands in Halong Bay.  Credit:  CIA World Factbook.

FROM: U.S. EXPORT-IMPORT BANK
Friday, October 5, 2012

Ex-Im to Offer Trade-Finance Seminars in Vietnam
Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) is scheduled to offer a series of trade-finance seminars in cities throughout Vietnam, one of the Bank’s nine key markets, from Oct. 10 to Oct. 16 as part of a "roadshow" designed to boost U.S. exports to the region.


The half-day seminars, organized in conjunction with the American Chambers of Commerce of Hanoi and Ho Chi Minh City, will introduce the Vietnamese participants to Ex-Im Bank’s menu of products by way of outreach, training, and market sounding.

Ex-Im Bank representatives will publicize the availability of the Bank’s export financing, explain how Vietnamese companies can access the Bank’s programs, and listen to Vietnamese buyers to learn how the Bank can accommodate their needs.

"We are excited about the growth opportunities in Vietnam and want to see companies tap into Ex-Im Bank for their financing," said Ex-Im Bank Chairman and President Fred P. Hochberg. "Our exports will help grow jobs both in the United States and Vietnam."

Ex-Im Bank recently approved a $118 million direct loan to the government of Vietnam for the export of a Lockheed Martin Space Systems Company telecommunications satellite.

NEAR EARTH PLANET CENSUS SPACE TELESCOPE

FROM:  NASA-JPL PHOTOS
SIM PlanetQuest Mission
SIM PlanetQuest, scheduled for launch within the next decade, will be the most powerful planet-hunting space telescope ever devised. Using two separated mirrors and combining their light with a technique known as interferometry, SIM PlanetQuest will able to detect planets as small as Earth. These are the kind of planets that scientists believe have the most potential to support life.

Although more than 160 planets have been discovered beyond our solar system since 1995, the "holy grail" - Earthlike planets located in the habitable zone - remains beyond the reach of current telescopes.

SIM PlanetQuest will perform the first census of nearby Earth-like planets by observing the "wobble" in each parent star's apparent motion as the planet orbits, to an accuracy of one millionth of an arcsecond.

The SIM PlanetQuest study of neighboring planetary systems will set the stage for future space telescopes, like Terrestrial Planet Finder, that will be able to directly image these distant worlds, and probe their atmospheres for the signatures of life.

nasa, Image credit- NASA-JPL

NAVAIR Clips: RQ-21A Small Tactical Unmanned Aircraft System

COURT ORDERS NOTICE TO CORPUS CHRISTI RESIDENTS REGARDING ALLEGED EVNIROMENTAL CRIMES BY CITGO REFINERY

FROM:  U.S. DEPARTMENT OF JUSTICE, 
Thursday, October 4, 2012

U.S. District Court Orders Community Notice to Corpus Christi, Texas, Residents Who May Be Victims of Environmental Crimes by Citgo Refinery

WASHINGTON – Persons living around the CITGO refinery in Corpus Christi, Texas, who suffered immediate negative health effects from emissions from two large tanks at the facility that were operated between January 1994 and May 2003 in violation of the federal Clean Air Act, may be crime victims in United States v. CITGO Petroleum Corporation et al.

U.S. District Judge John D. Rainey has ordered the government to make this announcement so that any member of the community at large who believes they may be a crime victim and wishes to participate in the proceeding is made aware of their potential rights. To be able to participate, members of the community must submit by Nov. 4, 2012, (40 days from the order) a victim impact statement consistent with the Sept. 14, 2012, order, which is attached to this release. Under the Crime Victim’s Rights Act, persons who are directly and proximately harmed by the commission of a crime are crime victims and have certain, enumerated rights under the law. In this instance, community members may be considered crime victims based on the immediate negative health effects they suffered from breathing noxious fumes from Tanks 116 and 117 during the 1994 – 2003 time frame.


In June 2007, a jury convicted CITGO Petroleum Corporation and CITGO Refining and Chemicals Company L.P. for illegally operating two massive tanks at their Corpus Christi East Plant Refinery between January 1994 and March 2002. The tanks were the source of emissions including benzene, a known carcinogen, that may have affected persons in the surrounding communities of Hillcrest and Oak Park. Witnesses at the trial testified that emissions from the tanks could be detected in Oak Park and Hillcrest in the form of strong gaseous type odors.


On Sept. 25 and 26, 2007, the U.S. Department of Justice and the U.S. Environmental Protection Agency held community meetings at the Oveale Williams Senior Center in Corpus Christi during which more than 300 persons submitted victim impact statements. The current order is to identify any additional persons who may qualify as crime victims.

WORLD FOOD PROGRAM-USA AWARDS CEREMONY

FROM: U.S. DEPARTMENT OF STATE
Remarks at the World Food Program - USA Awards Ceremony Remarks

Hillary Rodham Clinton
Secretary of State
Ben Franklin Room
Washington, DC
October 3, 2012

SECRETARY CLINTON: Thank you. Thank you so much. Halima, please tell all of the women in the valley how proud I am of them and what they are doing, and thank them for taking such good care of that sweet pepper plant – (laughter) – so it would have a good yield. And thank you for coming to be with us for this event today, because really what you represent and what you just said is so important to us to know that our efforts are helping you make a difference.

And let me welcome all of you here to the State Department, to the Benjamin Franklin Room. I think Mr. Franklin would be very happy we’re having this event here. There are so many champions in the fight against hunger and food insecurity who are here with us today. I thank Frank Sesno for once again lending his experience and expertise to this important mission that we share. I thank Hunter Biden for, as was said, continuing his extraordinary family’s record of service and stewardship. Thank you so much, Hunter. And Rick Leach, who provides essential leadership for World Food Program USA.

And I also want to pay tribute to Dr. Raj Shah, who is here in his capacity as the Administrator of USAID, but the real story behind his becoming Administrator of USAID is that I stole him from USDA, where he was working on these issues and was one of our absolutely indispensible partners in conceiving and putting together Feed the Future. And under Raj’s leadership, USAID is doing an amazing job of implementing the vision that we had at the beginning of this Administration.

I also want to thank David Lane, Ambassador Lane, who is our Ambassador to the World Food Program. And it’s good to see you here and thank you for your leadership. I also want to acknowledge a dear friend, a Congressman who, upon hearing that I would be nominated to be Secretary of State, set up an appointment to talk to me about hunger. Jim McGovern, thank you for your years of commitment on these issues that affect people’s lives and futures. (Applause.)

Dan Glickman, a former Secretary at the U.S. Department of Agriculture and one of the real brains behind the Chicago Council Report on Food Security and Ending Hunger, and so many others who are here who have been involved in this struggle. And of course, we wouldn’t be here were it not for the man who inspired this award, Senator George McGovern, who his entire 90 years has been at the forefront of our nation’s fight against hunger. And I was thrilled to receive this award from him two years ago because I admire and respect the work that he’s done over a lifetime.

And then finally, the two people that we are here to honor today. You’ll hear more about David and Christina, but I am personally delighted that they would come from the world of business and entertainment and, with such passion and commitment, really give of themselves to this global issue. And we are so grateful to you both. If I could sing, Christina, I would – (laughter) – want to be on your team. (Laughter and applause.) But since I can’t, I’m glad you’re on this team. (Laughter.)

Before we hear from David and Christina, I want to take just a moment to look at how far we have come since starting this journey together four years ago. We had studied the historic trends and saw that while the Green Revolution had lifted hundreds of millions of people out of poverty, it had largely bypassed many others, especially in Africa. At the same time, if you remember back to the global economic crisis of 2008, one of the impacts was skyrocketing food prices combined with climate problems that really conspired to put so many people into hunger and malnutrition. There were, for the first time in history, more than one billion hungry people in the world.

And so the Obama Administration and partners around the world looked at how both the trend lines and the headlines were talking to us, and said: Look, we can’t wait; we have to act now. And we called on G-8 donor partners, and at the G-8 Summit in L’Aquila, they came up with the Food Security Initiative, which was an unprecedented $22 billion commitment. And the United States did our part with President Obama’s announcement of a $3.5 billion pledge, which led to our Feed the Future program.

As you saw on the video, our efforts are starting to pay off. Feed the Future has helped 9 million children get the nutrition they need to thrive, especially in those first 1,000 days from pregnancy through a child’s second birthday. We’re working with the private sector to help farmers connect with markets where they get better prices for their products. Nearly 2 million more farmers are producing the high-quality, sustainably grown products – like rice, coffee, and cacao – that businesses and customers are demanding. Now, we have an ambitious research agenda, collaborating with the private sector, on the next generation of tools that will accelerate our progress. And we will soon launch an action plan to deepen our work with civil society groups.

So we have a full agenda and we’re moving ahead. But I think it’s fair to say that we’re quite humble about the challenges ahead of us. We are racing to stay ahead of climate change, of droughts, in our country and around the world. We’re racing to stay ahead of conflict that disrupts markets and terrorizes smallholder farmers, particularly women. We’re racing to stay ahead of corruption that stands in the way of farmers getting a decent price for their products or even getting their harvest to market unspoiled.

So we know we face a lot of very big obstacles. But what I’m encouraged by, and excited even, is how far we have come and the fact that we have a vision and a plan about how we’re going to get the rest of the way, because we cannot accept a world where children go hungry simply because of where they are born.

So I often say we need everyone who cares about this issue to stand up and use their voice. And well, with Christina, that is literally true. (Laughter.) Now, although she is best known for her chart-topping hits and her top-rated television show, she’s also a mom and a concerned citizen. And as a World Food Program Ambassador Against Hunger, she has traveled to Latin America and seen firsthand the devastation that malnutrition, especially early in life, can cause. And of all the videos that Christina has made over the years, to me the most heartwarming may be the one where she sits with a group of kids in Haiti and sings "Itsy Bitsy Spider." I even know that song, Christina. (Laughter.)

But I am so appreciative of what you’re giving to the cause. I mean, it’s easy when you’re a big star, as you rightly are, to just stay focused on what you’re doing and producing. But you’ve used your talent to help others, and that is a great gift.

Now, if there is a rock star of the food industry, that is David, the man who oversees some of the best-known brands in the world, and now he is turning his relentless drive and enthusiasm to Yum! Brands’ World Hunger Relief initiative.

With Christina as its global spokesperson, this program has become one of the largest private sector hunger relief efforts in the world, raising $115 million for the World Food Program and other organizations, and providing 460 million meals to hungry children around the globe. That’s the kind of commitment that Rick and the World Food Program here in the United States and around the world are really grateful for. So thank you for taking your business success and just matching those up with values and compassion and doing so much for others.

Now as we look ahead, we are hoping to keep expanding the circle of partners. We want to bring in more private sector partners, more civil society groups, more faith communities, and we want to bring in people who are on the front lines, women who themselves know what we’re talking about. And we need to measure progress not just by what individuals can do, but by what we all together can achieve.

So it’s been my great privilege to work with all of you, and we’re going to make sure that this commitment stays institutionalized at USAID and the State Department for the foreseeable future, because we have a lot to do before we can rest easy.

But it’s been a great honor for me, and now I think we’re going to give out some awards, right? Oh, we’re going to do another video, Frank. Okay. So we’re going to do another video – (laughter) – and pay attention to the video and then we’ll hear from our two honorees. (Applause.)

ALLEGED PONZI SCHEME TARGETED SENIORS

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

SEC Brings Charges in $42 Million Offering Fraud Targeting Seniors

The Securities and Exchange Commission today announced charges against Bradley A. Holcom, of Welches, Oregon, and Jose L. Pinedo, of San Diego, California, in connection with a fraudulent scheme that sold $42 million of promissory notes to more than 150 investors located across the United States, many of whom are senior citizens.

According to the complaint against Holcom, he lured investors by offering them guaranteed monthly interest payments on purportedly safe deals. He promised that their funds would be used to finance the development of specific pieces of real estate, and that each investment would be fully secured. In reality, the investments were unsecured, and the same piece of underlying property was often pledged as purported collateral on numerous investors’ promissory notes.

In addition to his misrepresentations, the complaint alleges that Holcom was also running a classic Ponzi scheme. While Holcom used some of the investors’ money to develop real estate, he also relied on those funds to make interest and principal payments on promissory notes as they came due. Holcom also used investor funds for personal use and on unrelated business ventures. By 2008, as the real estate market declined, Holcom’s scheme collapsed. Investors lost principal in excess of $25 million.

The Commission also alleges that Pinedo, who served as Holcom’s bookkeeper and as an officer or manager of Holcom’s numerous corporate entities, routinely signed promissory notes and other false and misleading documents that were sent to investors.

The Commission alleges that Holcom violated 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, and Rule 10b-5 thereunder. The Commission is seeking a permanent injunction, disgorgement plus pre- and post-judgment interest, and civil penalties against Holcom. Without admitting or denying the allegations in the Commission’s complaint against him, Pinedo has agreed to settle the matter, and consented to a final judgment enjoining him from violations of Sections 5(a), 5(c), 17(a)(2) and 17(a)(3) of the Securities Act.

C-17 GLOBMASTER III AIRCRAFT VISITS CHRISTCHURCH, NEW ZEALAND

People line up to take a tour of a C-17 Globemaster III aircraft, Sept. 29, 2012 at Christchurch International Airport, New Zealand. The plane, deployed from Joint Base Lewis-McChord, accomodated more than 10,000 visitors from the Christchurch area as part of the city's IceFest event. (U.S. Air Force photo/Staff Sgt. Sean Tobin)

Airmen showcase C-17 to New Zealanders

by Staff Sgt. Sean J. Tobin
62nd Airlift Wing Public Affairs
10/3/2012 - CHRISTCHURCH, New Zealand (AFNS) -- Thousands of New Zealanders visited the Christchurch International Airport for a chance to get a glimpse inside the cockpit of a C-17 Globemaster III aircraft, which deployed to Christchurch from Joint Base Lewis-McChord, Wash., Sep. 29 in support of Operation Deep Freeze 2012.

Airmen from the 62nd and 446th Airlift Wings guided visitors onto the aircraft and answered questions about the plane's capabilities. The tour was one of the many attractions arranged for the city's first ever New Zealand IceFest, an event with Antarctic-themed attractions throughout the city.

The event, which started Sept. 14 and is scheduled to last until Oct. 14, is a celebration of New Zealand's long history with Antarctica.

Upon arrival into Christchurch, the aircraft made a grand entrance performing a low-altitude flyover of various parts of the city. This included a flyover of Hagley Park, in the city center, where hundreds of school children gathered in a large formation to spell the word "IceFest" as a gesture to welcome the jet and its occupants to Christchurch.

The following day, people waited in line for as long as three hours for their chance to tour the jet that will soon be transporting cargo and National Science Foundation personnel to McMurdo Station, Antarctica.

"Christchurch is celebrating a century of being the gateway to Antarctica," said Jo Blair, the IceFest event director. "The goal of this event is to showcase our heritage with Antarctica and to help get kids interested in science, as well."

Getting a chance to tour the C-17 that will be transporting hundreds of NSF personnel is great for the kids in that respect, she said.

Also in attendance was the United States ambassador to New Zealand, David Huebner.

"This tour helps put a human face on U.S. military personnel," said Huebner. "Often, people tend to form their opinions from what they see on TV, and this tour is a great way to interact with U.S. Airmen and meet them face to face."

Christchurch got hit hard by the earthquakes in the past couple years and it hurt the city's morale and the people's confidence in the city's future, he said.

"This tour is a very tangible sign of the relationship the U.S. has with Christchurch," said Huebner. "It's great for the city to have friends demonstrate that they care."

Edwina Cordwell, a resident of Christchurch and one of the local attendees on the C-17 tour, described her amazement at seeing the large aircraft maneuver so effortlessly over her home.

"It gives you goose bumps," she said. "Seeing how nimble that huge plane can be. It's almost acrobatic."

Cordwell got choked up describing how she felt seeing the U.S. Air Force visiting Christchurch, especially in light of the devastation the city has suffered over recent years.

"It's quite emotional knowing someone cares," said Cordwell. "Seeing all this is just magical."

According to a representative of the event, more than 10,000 people showed up to tour the aircraft.

The first of 52 main season ODF missions departed Christchurch International Airport, en route to McMurdo Station, Antarctica, Oct. 1.



　

OBSTACLES AND MOTIVATION

Army Sgt. 1st Class Oscar Ayala does situps during a physical fitness test for the Sullivan Cup at Fort Benning, Ga, May 7, 2012. In the past two years, Ayala has had two hip surgeries, but has not let it affect his physical condition. "It's all in how you maintain yourself," he explained. U.S. Army photo by Spc. Bailey Kramer

Face of Defense: Soldier Uses Obstacles as Motivation
By Army Spc. Bailey Kramer
1st Brigade Combat Team, 1st Cavalry Division

FORT HOOD, Texas, Oct. 3, 2012 - Growing up, his dream was to be a United States soldier. So even after two hip surgeries only months apart, Army Sgt. 1st Class Oscar Ayala, a platoon sergeant assigned to 1st Cavalry Division's Company D, 2nd Battalion, 8th Cavalry Regiment, "Ironhorse," 1st Brigade Combat Team, still manages to outperform his soldiers.

"I always wanted to be a soldier," Ayala said. "When I was in high school, I told my recruiter I wanted to join the Army. I didn't ask for anything. I just joined."

Ayala, a native of Kearny, N.J., enlisted as a tanker in the National Guard in 1999. After a year and a half, he switched to active duty.

Serving as a platoon sergeant is special to Ayala.

"I never pictured myself being in the position I am in now," he said. "I mean, I am just one of many at my position, but going back to my childhood, I never thought I would have this impact on other soldiers, or even [noncommissioned officers]."

After converting to active duty, Ayala was stationed at Fort Lewis, Wash., where he stayed for two years before moving to here. Since then, he has been deployed four times in support of Operation Iraqi Freedom, Operation New Dawn and, in his most recent deployment in Kuwait, Operation Spartan Shield.

Although he has deployed numerous times, Ayala said, he has not let it affect his attitude toward the Army.

"I know I have younger soldiers looking up to me," he said. "I have to show my soldiers that even though we go through tough times, we are still soldiers, and that's what we get paid to do. We have to get the mission accomplished whether we are going through good or bad times."

One of Ayala's soldiers, Army Spc. Sam Garcia, said he can look to Ayala for guidance and leadership.

"[Ayala] has always been approachable," Garcia said about his respected mentor. "He's [seasoned], and I know I can count on him to help me when I need him most."

Ayala sustained a hip injury during his 2006-2008 Iraq deployment. During his check-up, problems were found in both hips, resulting in a dual surgery -- the first in April 2011 and the second following less than two months later.

Even with the surgeries and the pain, Ayala said, his motivation hasn't wavered.

"I am still motivated, probably a little more," he said. "I learned to ignore the majority of the pain. Whether I am injured or not, I still go up there and lead my guys."

Ayala still receives a perfect score of 300 on his physical fitness test, consisting of pushups, situps and a two-mile run.

"I feel as though I set the bar for my platoon," he said. "If I can do it, they can, too. A lot of my guys see me trying and they get behind me. It keeps me and them motivated."

Ayala was the tank commander of the Ironhorse tank team that participated in the prestigious Sullivan Cup, a competition testing tankers' skills across the Army. He was one of only two competitors to earn a perfect score of 300 in the fitness test portion of the competition.

"It made me feel that although I am on the older side of the competitors, that age is just a number," Ayala said. "It's all in how you maintain yourself."

His wife of 25 years, Katherine, also is aware of his self-motivation, he said.

"[She] keeps telling me to slow down on the physical side of work, exercising and such," Ayala said with a chuckle. "But I remind her I am a leader, and I can't lead my soldiers from the rear. She understands and is very supportive of my choices."

With everything that has happened, Ayala said, having a supportive wife has helped him push through his obstacles.

"It's a little bit hard," he said. "But like I tell my guys, even though we go through tough times, I am a soldier."

HURRICANE HUNTERS

 FROM: NATIONAL SCIENCE FOUNDATION
September 24, 2012

The Deep Convective Clouds & Chemistry (DC3) Experiment, which began in mid-May, explores the influence of thunderstorms on air just beneath the stratosphere, a region that influences Earth's climate and weather patterns. Scientists used three research aircraft, mobile radars, lightning mapping arrays and other tools to pull together a comprehensive picture. Credit: NOAA

Dropsondes--Work Horses in Hurricane Forecasting
Small cylinders dropped from airplanes gather atmospheric data on their way down

Inside a cylinder that is about the size of a roll of paper towels lives a circuit board filled with sensors. It's called a dropsonde, or "sonde" for short. It's a work horse of hurricane forecasting, dropping out of "Hurricane Hunter" airplanes right into raging storms. As the sonde falls through the air, its sensors gather data about the atmosphere to help us better understand climate and other atmospheric conditions.

"Dropsondes have a huge impact on our understanding of hurricanes and our ability to predict hurricanes," explains electrical engineer Terry Hock at the Earth Observing Laboratory in the National Center for Atmospheric Research (NCAR), located in Boulder, Colo.

With support from the National Science Foundation (NSF), Hock and his colleagues at NCAR have been designing, building and improving dropsonde technology for more than 30 years. "Our most current development is a fully automated dropsonde system for NASA's unmanned Global Hawk aircraft," says Hock.

Compared to earlier models, today's sondes are lighter weight, relatively inexpensive and loaded with sensors.

"We have a lot of electronics and, on the back side, a battery pack to operate the sonde. We have a temperature and two humidity sensors, and we have a GPS receiver," explains Hock, as he points out the different circuit board components. "As the sonde moves, we're using that GPS receiver to track the sonde's movements very precisely, which is then telling us the wind speed and wind direction. At the top of the sonde is a parachute which slows down the descent."

Electrical engineer Dean Lauritsen, a member of Hock's team, developed the system software on the aircraft, which controls the aircraft data system and process, and also displays dropsonde data during the sondes free fall to earth. There's such a system on the HIAPER, the NSF/NCAR Gulfstream V Research Aircraft, which uses sondes for scientific research, and a similar system used by the U.S. Air Force Reserve Hurricane Hunters in Biloxi, Miss., and the NOAA Hurricane Hunters in Tampa, Fla. On board each aircraft are a computer and a rack of electronic equipment to monitor and receive information from sondes. "The system is capable of tracking as many as eight dropsondes in the air at the same time. Each one of them is transmitting data on a separate frequency as it falls." says Lauritsen.

From the time the sonde leaves the aircraft, it is checking surroundings two times a second and sending information back to the aircraft, including pressure, temperature, humidity, wind speed, and wind direction. Future developments are expected to include sensors for chemicals such as ozone.

"We're taking vertical slices of the atmosphere constantly as the sonde falls," says Hock. "We're seeing very precise single measurements show up immediately on the computer screen."

Researchers process the information using NCAR-developed custom software, and then send it to weather forecasters and researchers around the world. In the case of the Hurricane Hunters, the information goes to the National Hurricane Center in Miami.

NCAR software engineer Charlie Martin develops custom software called ASPEN, which stands for Atmospheric Sounding Processing Environment. ASPEN helps make sense of all the dropsonde data. "Once the dropsonde has fallen through the atmosphere and the data has come back to the aircraft, that raw data needs a little more treatment before we send it to weather services around the world," explains Martin.

Martin points to a map showing a compilation of dropsonde wind data collected in August 2011, as Hurricane Irene was churning its way toward the Florida coast. "The winds are in a circular pattern," says Martin, as he identifies small triangles on the map that represent the wind and wind direction. "The center of the hurricane is clearly depicted in the center of the circular pattern. The National Hurricane Center uses this data along with other data to classify the hurricane and assign a category to it."

Hock and his team also custom fit aircraft with launchers to deploy the sondes, including one system for helium-filled balloons. In 2010, American and French researchers deployed balloons over Antarctica that dropped 600 sondes over a four-month period to study atmospheric conditions and the shifting ozone layer. "There is now a very dense set of measurements that came out of this project that has mapped the Antarctic atmosphere like it has never been done before," notes Martin.

"Atmospheric conditions above the Antarctic continent are hard to study since only a handful of sounding stations are regularly maintained there," says Peter Milne, program manager for ocean and atmospheric sciences within NSF's Office of Polar Programs. "Fortunately, the Antarctic polar vortex, a huge cyclone that sets up above the entire continent, is like the NASCAR of long distance ballooning, with balloons sweeping around the continent for as long as they stay aloft. Using these drifting platforms provided a unique data set."

Such "inside information" is helping scientists learn more about climate and hurricanes. Data from dropsondes is also giving scientists a better understanding about atmospheric conditions that spawn any number of weather conditions. Hock expects this will help forecasters make earlier and more precise hurricane predictions, giving people in the path of a killer storm more time to get out of harm's way.

LOST 'TONIGHT SHOW' EPISODES FOUND AT MILITARY STORAGE FACILITY

FROM: U.S. DEPARTMENT OF DEFENSE

Pedro Loureiro, left, archivist at the Defense Imagery Management Operations Center, and Jeff Sotzing, CEO at Carson Entertainment Group, review a 1963 film of "The Tonight Show Starring Johnny Carson" once thought to be lost, that was found at DIMOC's facility in Riverside, Calif. DIMOC turned over the film to Sotzing to be added to the Carson archives. DOD photo by Navy Petty Officer 3rd Class Will Gaskill
'Tonight' Episodes Believed Lost Turn Up at DOD Facility
By Navy Petty Officer 3rd Class Will Gaskill
American Forces Network Broadcast Center

RIVERSIDE, Calif., Oct. 3, 2012 - Once thought to be lost, a film reel containing clips of "The Tonight Show Starring Johnny Carson" was discovered in a military visual information storage facility here and was turned over Oct. 1 to Jeff Sotzing, nephew of Johnny Carson.

The clips, dating back to 1963, were found on an archived 16 mm film reel stored at the Defense Imagery Management Operations Center, known as DIMOC, just outside of March Air Reserve Base.

In the 1960s, the Armed Forces Radio and Television Service received film reels from the production studios and distributed the programming to its stations for service members around the world. After the footage was shown and no longer needed, it was returned to the studios, destroyed, or sometimes kept on site at the AFRTS facility, now called the American Forces Network Broadcast Center.

"Somebody had the brains or historical foresight to save this reel," said Pedro Loureiro, archivist at DIMOC.

The television industry used to reuse tapes, Loureiro said. Newer episodes were recorded over the older material without much thought of archiving what is now thought of as part of the "golden age" of television.

"Everything from the 1960s is considered lost," he said. "That's what they did with everybody's show," said Sotzing, CEO of the Carson Entertainment Group, the owners of Carson's archive. Besides being related to the late entertainer, Sotzing worked on the show from 1977 to 1992, working his way up from being a runner to producing the show.

"I'm really looking forward to adding this film to the collection. Almost everything from 1962 to 1973 is gone," Sotzing said.

Mary Carnes, a retired program support manager at the broadcast center, discovered the reel as she was sorting through a box of old items that had been overlooked for years.

"As soon as I saw it, I knew it was a gem," Carnes said. "Giving it back to the family and the Carson archives will be like a birthday or Christmas for them.

"This is one of the great parts of the job here," she continued. We can do the work we do to entertain our troops, and document history at the same time. It's really great."

In all, "The Tonight Show Starring Johnny Carson" highlighted nearly 23,000 stars in 4,351 episodes over a 30-year span. Carson won six Emmy Awards, the Peabody Award, the Presidential Medal of Freedom and Kennedy Center Honors, and is enshrined in the Television Academy Hall of Fame.

"Johnny would make an on-air plea [for lost footage]," Sotzing said. "He would be thrilled to get this. A lot of young people don't know who Johnny Carson is. This helps show them."

The newly discovered footage will be digitally recorded, transcribed and then made available for users of the Carson Entertainment Group's searchable online archives. The physical film will be stored at a former salt mine in Hutchinson, Kan., which currently houses the Carson archives as well as many other Hollywood film archives, Sotzing said.

NEW U.S. GUIDED-MISSILE DESTROYER HONORS NAVY SEAL HERO

FROM:  U.S. NAVY

121001-G-TG089-038 NEW YORK (Oct. 1, 2012) The guided-missile destroyer Pre-Commissioning Unit (PCU) Michael Murphy (DDG 112) makes its way through New York Harbor in preparation for its commissioning Oct. 6. The new destroyer honors the late Lt. (SEAL) Michael P. Murphy, a New York native, who was posthumously awarded the Medal of Honor for his actions in combat as leader of a four-man reconnaissance team in Afghanistan. Murphy was the first person to be awarded the Medal of Honor for actions in Afghanistan, and the first member of the U.S. Navy to receive the award since the Vietnam War. #murph (U.S. Coast Guard photo by Petty Officer 2nd Class Erik Swanson/Released)

NEW YORK (NNS) -- The Navy will commission the newest guided-missile destroyer, Michael Murphy (DDG 112), Oct. 6, during a 10 a.m. EDT ceremony at Pier 88 in Manhattan, N.Y.

The newest destroyer honors Navy SEAL (Sea, Air, Land) Lt. Michael P. Murphy, who was posthumously awarded the Medal of Honor for his heroic actions during Operation Red Wings in Afghanistan June 28, 2005.

Murphy led a four-man team tasked with finding a key Taliban leader in the mountainous terrain near Asadabad, Afghanistan, when they came under fire from a much larger enemy force with superior tactical position.

Mortally wounded while exposing himself to enemy fire, Murphy knowingly left his position of cover to get a clear signal in order to communicate with his headquarters. While being shot at repeatedly, Murphy calmly provided his unit's location and requested immediate support for his element. He returned to his cover position to continue the fight until finally succumbing to wounds.

Secretary of the Navy Ray Mabus will deliver the ceremony's principal address. Maureen Murphy will serve as sponsor of the ship named for her late son. The ceremony will be highlighted by a time-honored Navy tradition when she gives the first order to "man our ship and bring her to life!"

"This ship honors the courage, service and sacrifice of Lt. Michael Murphy, his Red Wings brothers, fellow SEALs, special operators and service members around the world who answer the call of duty every day," said Mabus. "It is absolutely fitting that the USS Michael Murphy bears a SEAL trident on her crest because, much like Michael and every Navy SEAL who has earned the honor of wearing the trident, this ship is designed to counter threats from above and below the surface of the oceans, in the air and on land."

Designated DDG 112, Michael Murphy is the 62nd Arleigh Burke-class destroyer, capable of conducting operations from peacetime presence and crisis management to sea control and power projection. Michael Murphy is capable of fighting air, surface and subsurface battles simultaneously and will contain a myriad of offensive and defensive weapons designed to support maritime warfare.

"USS Michael Murphy, the most flexible, lethal and multi-mission capable ship of its kind, represents the backbone of our surface combatant fleet," said Adm. Jonathan Greenert, chief of naval operations. "It is one of the best destroyers in the world. This ship will operate forward around the globe, assuring allies, projecting power and defending our nation. And, like its namesake Lt. Michael Murphy, this ship will serve to protect, influence and win in an era of uncertainty."

Cmdr. Thomas E. Shultz, a native of El Cajon, Calif., is the commanding officer of the ship and will lead the crew of 279 officers and enlisted personnel. The 9,200-ton Michael Murphy was built by General Dynamics Bath Iron Works. The ship is 509 feet in length, has a waterline beam of 59 feet, and has a navigational draft of 31 feet. Four gas turbine engines will power the ship to speeds in excess of 30 knots.

U.S. STATE DEPARTMENT DAILY PRESS BRIEFING

http://www.google.com/url?q=http://www.addthis.com/bookmark.php&sa=D&sntz=1&usg=AFQjCNFYzDlKeLL_IMEm7XBQrYQa1f17Zg

TRADING SECURITIES IN THE "DARK POOL"

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., Oct. 3, 2012 — The Securities and Exchange Commission today charged Boston-based dark pool operator eBX LLC with failing to protect the confidential trading information of its subscribers and failing to disclose to all subscribers that it allowed an outside firm to use their confidential trading information.

According to the SEC’s order instituting a settled administrative proceeding, eBX operates the alternative trading system LeveL ATS, which it calls a "dark pool" trading program. Dark pools do not display quotations to the public, meaning that investors who subscribe to a dark pool have access to potential trade opportunities that other investors using public markets do not. eBX inaccurately informed its subscribers that their flow of orders to buy or sell securities would be kept confidential and not shared outside of LeveL. eBX instead allowed an outside technology firm to use information about LeveL subscribers’ unexecuted orders for its own business purposes. The outside firm’s separate order routing business therefore received an information advantage over other LeveL subscribers because it was able to use its knowledge of their orders to make routing decisions for its own customers’ orders and increase its execution rate. eBX had insufficient safeguards and procedures to protect subscribers’ confidential trading information.

eBX agreed to pay an $800,000 penalty to settle the charges.

"Dark pools are dark for a reason: buyers and sellers expect confidentiality of their trading information," said Robert Khuzami, Director of the SEC’s Division of Enforcement. "Many eBX subscribers didn’t get the benefit of that bargain – they were unaware that another order routing system was given exclusive access to trading information that it used for its own benefit."

According to the SEC’s order, eBX and the outside firm it hired to run LeveL signed a subscription agreement in February 2008, after which the outside firm’s separate order routing business began to use certain LeveL subscribers’ confidential trading data. In November 2008, eBX signed a new agreement with the outside firm that allowed its order routing business to remember and use all LeveL subscribers’ unexecuted order information. As a result of the agreements, the outside firm’s order routing business began to fill far more of its orders than other LeveL users did. Its order router also knew how other eBX subscribers’ orders in LeveL were priced and could use that information to determine whether to route orders to LeveL or another venue based on where it knew it might get a better price for its own customers’ orders.

According to the SEC’s order, eBX failed to disclose in required SEC filings that it allowed LeveL subscribers’ unexecuted order information to be shared outside of LeveL.

In addition to the $800,000 penalty, eBX was censured and ordered to cease and desist from committing or causing further violations of certain provisions of the federal securities laws regulating alternative trading systems.

The SEC’s investigation was conducted by Mark Gera, James Goldman, Kathleen Shields, and Dawn Edick in the SEC’s Boston Regional Office. Mr. Gera led the related examination with assistance from Paul D’Amico and Rhonda Wilson under the supervision of Associate Regional Director Lucile Corkery.

SEC SHARES TIPS ON SELECTING A FINANCIAL PROFESSIONAL

Credit:  U.S. Marshals Service 

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Investor Bulletin: Top Tips for Selecting a Financial Professional

Choosing a financial professional-whether a stockbroker, a financial planner, or an investment adviser-is an important decision. Consider the tips below as you make your choice. Also the third page of this document has a list of questions you can ask a financial professional whose services you are considering.

Tip 1. Do your homework and ask questions.

A lot of the information you’ll need to make a choice will be in the documents the financial professional can provide you about opening an account or starting a relationship. You should read them carefully. If you don’t understand something, ask questions until you do. It’s your money and you should feel comfortable asking about it.

Tip 2. Find out whether the products and services available are right for you.

Financial professionals offer a range of financial and investment services such as:
Financial planning
Ongoing money management
Advice on choosing securities
Tax and retirement planning
Insurance advice
Just like a grocery store offers more products than a convenience store, some financial professionals offer a wide range of products or services, while others offer a more limited selection. Think about what you might need, and ask about what would be available to you. For example, do you want or need:

Access to a broad range of securities, such as stocks, options and bonds, or will you mostly want a few types such as mutual funds, exchange traded funds, or insurance products?
A one-time review or financial plan?
To do your own research, but use the financial professional to make your trades or to provide a second opinion occasionally?
A recommendation each time you think about changing or making an investment?
Ongoing investment management, with the financial professional getting your permission before any purchase or sale is made?
Ongoing investment management, where the financial professional decides what purchases or sales are made, and you are told about it afterwards?
Tip 3. Understand how you’ll pay for services and products, and how your financial professional gets paid as well.

Many firms offer more than one type of account. You may be able to pay for services differently depending on the type of account you choose. For example, you might pay:
An hourly fee for advisory services;
A flat fee, such as $500 per year, for an annual portfolio review or $2,000 for a financial plan;
A commission on the securities bought or sold, such as $12 per trade;
A fee (sometimes called a "load") based on the amount you invest in a mutual fund or variable annuity
A "mark-up" when you buy "house" products (such as bonds that the broker holds in inventory), or a "mark-down" when you sell them
Depending on what services you want, one type of account may cost you less than another. Ask about what alternatives make sense for you.
And remember: even if you don’t pay the financial professional directly, such as through an annual fee, that person is still getting paid. For example, someone else may be paying the financial professional for selling specific products. However, those payments may be built into the costs you ultimately pay, such as the expenses associated with buying or holding a financial product.

While some of these fees may seem small, it is important to keep in mind that they can add up, and in the end take away from the profits you otherwise could be making from your investments.

Tip 4. Ask about the financial professional’s experience and credentials.

Financial professionals hold different licenses. For example, financial professionals who are broker-dealers must take an exam to hold a license, while state regulators often require investment advisers to hold certain licenses. Financial professionals also have a wide range of educational and professional backgrounds. They may also have certain designations after their names, which are titles given by industry groups that themselves are not regulated or subject to standards other than their own. If a financial professional has an industry designation, like "CFA," you can look up what it stands for at the "Understanding Investment Professional Designations" page on FINRA’s website at www.finra.org. Don’t accept a professional designation as a badge of knowledge without knowing what it means.

Tip 5. Ask the financial professional if he or she has had a disciplinary history with a government regulator or had customer complaints.
Even if a close friend or relative has recommended a financial professional, you should check the person’s background for signs of any potential problems, such as a disciplinary history by a regulator or customer complaints. The SEC, FINRA, and state securities regulators keep records on the disciplinary history of many of the financial professionals they regulate.
Check the background of your financial professional to learn more or to help confirm what he or she has told you:
For financial professionals who are brokers: you can find background information on the person and his/her firm at FINRA’s BrokerCheck website.
For financial professionals who are investment advisers registered with the SEC: you can find background information on the person and his/her firm at the SEC’s Investment Adviser Public Disclosure database.
State securities regulators also have background information on brokers as well as certain investment advisers. You can find your state regulator at www.nasaa.org.

Investor Checklist
Some Key Questions for Hiring a Financial Professional

Expectations of the RelationshipHow often should I expect to hear from you?
How often will you review my account or make recommendations to me?
If my investments aren’t doing well, will you call me and recommend something else?
If I invest with you, how can I keep track of how well my investments are doing?
Experience and BackgroundWhat experience do you have, especially with people like me? What percentage of your time would you estimate that you spend on people with situations and goals that are similar to mine?
What education have you had that relates to your work?
What professional licenses do you hold?
Are you registered with the SEC, a state securities regulator, or FINRA?
How long have you done this type of work?
Have you ever been disciplined by a regulator? If yes, what was the problem and how was it resolved?
Have you had customer complaints? If yes, how many, what were they about, and how were they resolved?
ProductsWhat type of products do you offer?
How many different products do you offer?
Do you offer "house" products? If so, what types of products are they, and do you receive any incentives for selling these products, or for maintaining them in a customer’s account? What kind of incentives are they?
Payments and FeesGiven my situation and what I’m looking for, what is the [best / most cost effective] way for me to pay for financial services? Why?
What are the fees that I will pay for products and services?
How and when will I see the fees I pay?
Which of those fees will I pay directly (such as a commission on a stock trade) and which are taken directly from the products I own (such as some mutual fund expenses)
How do you get paid?
If I invested $1000 with you today, approximately how much would you get paid during the following year, based on my investment?
Does someone else (such as a fund company) pay you for offering or selling these products or services?

U.S. HIGH SCHOOL STUDENT DRINKING AND DRIVING HAS DECREASED SINCE 1991

Credit:  Wikimedia.

FROM: CENTERS FOR DISEASE CONTROL
The percentage of teens in high school who drink and drive has decreased by more than half since 1991,* but more can be done. Nearly one million high school teens drank alcohol and got behind the wheel in 2011. Teen drivers are 3 times more likely than more experienced drivers to be in a fatal crash. Drinking any alcohol greatly increases this risk for teens.

Research has shown that factors that help to keep teens safe include parental involvement, minimum legal drinking age and zero tolerance laws, and graduated driver licensing systems. These proven steps can protect the lives of more young drivers and everyone who shares the road with them.

*High school students aged 16 years and older who, when surveyed, said they had driven a vehicle one or more times during the past 30 days when they had been drinking alcohol.

Drinking and driving can be deadly, especially for teens
Fewer teens are drinking and driving, but this risky behavior is still a major threat.
Drinking and driving among teens in high school has gone down by 54% since 1991. Still, high school teens drive after drinking about 2.4 million times a month.
85% of teens in high school who report drinking and driving in the past month also say they binge drank. In the survey, binge drinking was defined as having 5 or more alcoholic drinks within a couple of hours.
1 in 5 teen drivers involved in fatal crashes had some alcohol in their system in 2010. Most of these drivers (81%) had BACs* higher than the legal limit for adults.
*Blood alcohol concentration. It is illegal for adults to drive with a BAC of .08% or higher. It is illegal for anyone under age 21 to drive after drinking any alcohol in all US states.

ANDERS FOGH RASMUSSEN HAS NATO TERM AS SECRETARY GENERAL EXTENDED





FROM: U.S. DEPARTMENT OF DEFENSE

 

NATO Extends Rasmussen's Term as Secretary General

By Cheryl Pellerin

WASHINGTON, Oct. 3, 2012 - The North Atlantic Council has extended Anders Fogh Rasmussen's four-year term as NATO secretary general for another year, until July 31, 2014, the council announced today.

"Allies will support Secretary General Anders Fogh Rasmussen in his dedicated work to carry forward NATO's tasks, missions and objectives, based on consensual allied decisions," a written statement from the council read.

In a short briefing from NATO headquarters in Brussels this morning, Rasmussen said he is honored by the trust and support of allied governments.

"My first years in office presented many challenges," Rasmussen said. "We developed and agreed to a new strategic concept for the alliance. We took crucial decisions to develop a NATO missile defense system to protect our people and territory against a grave and growing threat."

NATO also has reached out to Russia and the alliance's partners around the world, and successfully enforced the historic resolution of the U.N. Security Council to protect civilians in Libya, he said.

"But we still face other pressing tasks: completing the process of transition in Afghanistan within the timeline we have set, strengthening our unique network of partners and keeping our Alliance fit for the future," the secretary general added.

"I have dedicated myself to these issues since I took office," Rasmussen said. "I am privileged to have had the chance to lead this Alliance through these testing times."

American Forces Press Service

TWO DOCTORS GET 10 YEARS IN PRISON FOR ROLES IN $205 MILLION MEDICARE FRAUD

FROM: U.S. JUSTICE DEPARTMENT
Monday, October 1, 2012

Two Miami-Area Doctors Sentenced to 10 Years in Prison for Participating in $205 Million Medicare Fraud Scheme

WASHINGTON – Miami-area residents Dr. Mark Willner and Dr. Alberto Ayala, former medical directors at the mental health care company American Therapeutic Corporation (ATC), were each sentenced today to 10 years in prison for participating in a $205 million Medicare fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent-in-Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.

Willner, 56, and Ayala, 68, were sentenced by U.S. District Judge Patricia A. Seitz in the Southern District of Florida. Judge Seitz ordered Willner to pay more than $57 million in restitution and Ayala to pay more than $87 million in restitution, both jointly and severally with their co-defendants. Willner and Ayala were also both sentenced to three years of supervised release following their prison terms.

On June 1, 2012, after a seven week trial, a federal jury in the Southern District of Florida found Willner and Ayala each guilty of one count of conspiracy to commit health care fraud.

Evidence at trial demonstrated that the defendants and their co-conspirators caused the submission of false and fraudulent claims to Medicare through ATC, a Florida corporation headquartered in Miami that operated purported partial hospitalization programs (PHPs) in seven different locations throughout South Florida and Orlando. A PHP is a form of intensive treatment for severe mental illness. The defendants and their co-conspirators also used a related company, American Sleep Institute (ASI), to submit fraudulent Medicare claims.

Evidence at trial revealed that ATC secured patients by paying kickbacks to assisted living facility owners and halfway house owners who would then steer patients to ATC. These patients attended ATC, where they were ineligible for the treatment ATC billed to Medicare and where they did not receive the treatment that was billed to Medicare. After Medicare paid the claims, some of the co-conspirators then laundered the Medicare money in order to create cash to pay the patient kickbacks.

The defendants were charged in an indictment returned on Feb. 8, 2011. ATC, the management company associated with ATC, and 20 individuals, including the ATC owners, have all previously pleaded guilty or have been convicted at trial.

Evidence at trial revealed that doctors at ATC, including Willner and Ayala, signed patient files without reading them or seeing the patients. Evidence further revealed that ATC then billed Medicare for more than $100 million in PHP treatment for these patients under the names of Willner and Ayala. Included in these false and fraudulent submissions to Medicare were claims for patients in neuro-vegetative states, along with patients who were in the late stages of diseases causing permanent cognitive memory loss, and patients who had substance abuse issues and were living in halfway houses. These patients were ineligible for PHP treatment, and because they were forced by their assisted living facility owners and halfway house owners to attend ATC, they were not receiving treatment for the diseases they actually had.

Willner and Ayala have been in federal custody since their convictions.

ATC executives Lawrence Duran, Marianella Valera, Judith Negron and Margarita Acevedo were sentenced to 50 years, 35 years, 35 years and 91 months in prison, respectively, for their roles in the fraud scheme. The 50- and 35-year sentences represent the longest sentences for health care fraud ordered to date. Acevedo, who pleaded guilty early on and has been cooperating with the government since November 2010, testified at the doctors’ trial.

ATC and Medlink pleaded guilty in May 2011 to conspiracy to commit health care fraud. ATC also pleaded guilty to conspiracy to defraud the United States and to pay and receive illegal health care kickbacks. On Sept. 16, 2011, the two corporations were sentenced to five years of probation per count and ordered to pay restitution of $87 million. Both corporations have been defunct since their owners were arrested in October 2010.

The case was prosecuted by Trial Attorneys Jennifer L. Saulino, Robert A. Zink and James V. Hayes of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.

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