DEFENSE SECRETARY PANETTA'S MESSAGE FOR VETERANS DAY

FROM: U.S. DEPARTMENT OF DEFENSE
Panetta Salutes Veterans' Selflessness, Sacrifice
American Forces Press Service


WASHINGTON, Nov. 11, 2012 - As the nation observes the Veterans Day holiday, Defense Secretary Leon E. Panetta has issued a message paying tribute to the men and women who have served the United States in uniform.

Here is the secretary's message:

Since our nation's founding, brave young Americans from every generation have answered the call to serve in uniform and put their lives on the line to defend this country. Today, we honor all of those who've added new chapters to that very proud legacy of selflessness and sacrifice.

On this Veterans Day I recall how, as a boy in California, I had the great privilege of greeting and thanking soldiers that were stationed near my home and destined to fight in World War II. In the years that followed, I knew veterans of the Korean War, who fought bravely in unimaginably difficult conditions.

During the Vietnam era, I served in the Army and I remember how our nation failed to fully recognize the costs and sacrifices made by those who served in that war. Our nation has learned from that failure, and as we mark the 50th anniversary of that war, we honor our Vietnam veterans for all they have done for our country.

The United States is now emerging from the longest continuous time of war in its history, and a new generation of veterans is returning home. They have carried a very heavy burden. They've dealt with multiple deployments, long separations from loved ones, and the tragic consequences of war. Some have sustained grievous, life-altering injuries, and they are dealing with significant challenges, both seen and unseen.

Our veterans are also much stronger because of their hard won experiences in the deserts of Iraq, the mountains of Afghanistan, and elsewhere around the world. They are leaders who take responsibility and initiative, who think independently, and who inspire others. They are trained to operate some of the world's most sophisticated technical equipment. Above all, they love the country that they've served so well in uniform, and they are already giving back to their communities here at home.

Over the next five years, more than one million service men and women will leave the armed services and transition back to civilian life. Some will finally be able to marry the person they love and start a family. Others will be reunited with husbands, wives, and children after years spent apart. By pursuing the dream of giving their children a better life, our nation's veterans will help shape the future of this country. They will be doctors and lawyers, teachers and nurses, mayors and members of Congress.

America owes each of our veterans – from every generation – gratitude and support. November is Military Family Month, a time for all Americans to do more to recognize and support the members of their community who have fought on our behalf. For those who are transitioning out of military service, in particular, we must do everything we can to help them find a job, start a business, or obtain a quality education. These veterans are national assets who stand ready to contribute to our economic recovery and to a stronger America.

Let us all renew our pledge to fight for those who fight for us with such bravery and distinction. In some small way, today and every day, find a way to thank a veteran. Nothing means more to them than knowing that their service and sacrifice is appreciated right here at home. Thanks to our veterans, the American dream is safe and secure for us and our children.

Thank you, and may God bless all Americans serving around the world in uniform.

CORALS AND CHEMICAL SIGNALS FOR HELP

Goby fish in the genus Gobiodon-the fish are common coral reef residents in Fiji.
Credit-Wikimedia Commons

FROM:  NATIONAL SCIENCE FOUNDATION

Coral Reef 911: Corals Attacked by Seaweed Use Chemical Signals to Summon Help
November 8, 2012
Corals under attack by toxic seaweed do what anyone might when threatened--they call for help.

Results reported this week in the journal Science show that threatened corals send signals to fish "bodyguards" that quickly respond to trim back noxious algae, which can kill the coral if not promptly removed.

Scientists at the Georgia Institute of Technology found evidence that these "mutualistic" fish respond to chemical signals from the coral in a matter of minutes, like a 911 emergency call.

The inch-long fish--known as gobies--spend their entire lives in the crevices of specific corals, receiving protection from their own predators while removing threats to the corals.

"These findings illustrate the complexity of coral reef systems," said David Garrison, program director in the National Science Foundation's Division of Ocean Sciences, which funded the research. "This newly discovered relationship may be a key factor in the resilience of some coral species."

The symbiotic relationship between fish and the coral on which they live is the first known example of one species chemically signaling a consumer species to remove competitors.

It is similar to the symbiotic relationship between Acacia trees and mutualist ants, in which the ants receive food and shelter while protecting the trees from both competitors and consumers.

"This species of coral is recruiting inch-long bodyguards," said Mark Hay, a biologist at Georgia Tech and co-author of the paper. "There is a careful and nuanced dance of odors that makes all this happen.

"The fish have evolved to cue on the odor released into the water by the coral, and they very quickly take care of the problem."

The research was part of a long-term study of chemical signaling on Fiji Island coral reefs. It was aimed at understanding these threatened ecosystems and discovering chemicals that may be useful as pharmaceuticals.

The importance of large herbivorous fish to maintaining the health of coral reefs has been known for some time. They control the growth of seaweeds that damage coral.

But Georgia Tech scientist Danielle Dixson, also a co-author of the paper, suspected that the role of the gobies might be more complicated.

To study that relationship, she and Hay set up a series of experiments to observe how the fish would respond when the coral that shelters them was threatened.

They studied Acropora nasuta, a species in a genus of coral important to reef ecosystems because it grows rapidly and provides much of the structure for reefs.

To threaten the coral, they moved filaments of Chlorodesmis fastigiata, a species of seaweed that is particularly chemically toxic to corals, into contact with the coral.

Within a few minutes of the seaweed touching the coral, two species of gobies--Gobidon histrio and Paragobidon enchinocephalus--moved toward the site of contact and began neatly trimming away the offending seaweed.

"These little fish would come out and mow the seaweed off so it didn't touch the coral," said Hay.

"This takes place very rapidly, which means it must be very important to both the coral and the fish. The coral releases a chemical and the fish respond right away."

In corals occupied by the gobies, the amount of offending seaweed declined 30 percent over a three-day period, and the amount of damage to the coral declined by 70 to 80 percent.

Control corals that had no gobies living with them had no change in the amount of toxic seaweed and were badly damaged by it.

To determine what was attracting the fish, Dixson and Hay collected samples of water from several locations: near the seaweed itself where the seaweed was contacting coral and from coral that had been in contact with the seaweed 20 minutes after the seaweed was removed.

They released the samples near other corals that hosted gobies, which were attracted to the samples taken from the seaweed-coral contact area and the damaged coral, but not the seaweed by itself.

"We demonstrated that the coral is emitting some signal or cue that attracts the fish to remove the encroaching seaweed," Hay said. "The fish are not responding to the seaweed itself."

Similar waters collected from a different species of coral placed in contact with the seaweed did not attract the fish, suggesting they were only interested in removing seaweed from their host coral.

Finally, the researchers obtained the chemical extract of the toxic seaweed and placed it onto nylon filaments designed to simulate the mechanical effects of seaweed.

They also created simulated seaweed samples without the toxic extract.

When placed in contact with the coral, the fish were attracted to areas in which the chemical-containing mimic contacted the coral, but not to the area contacting the mimic without the chemical.

By studying the contents of the fish digestive systems, the researchers learned that one species--Gobion histrio-- actually eats the noxious seaweed, while the other fish apparently bites it off without eating it.

In the former, consuming the toxic seaweed makes the fish less attractive to predators.

The two species of fish also eat mucus from the coral, as well as algae from the coral base and zooplankton from the water column. By defending the corals, the gobies are defending the home in which they shelter and feed.

"The fish are getting protection in a safe place to live and food from the coral," Hay said. "The coral gets a bodyguard in exchange for a small amount of food.

"It's kind of like paying taxes in exchange for police protection."

As a next step, Hay and Dixson plan to determine whether other species of corals and fish have similar symbiotic relationships.

The research was also supported by the National Institutes of Health and the Teasley Endowment at Georgia Tech.

-NSF-

BUCKLEY AIR FORCE BASE POWERS FORWARD TOWARD ENERGY GOALS

Space supports
Space Duty Technician Staff Sgt Cristina Kavanagh, deployed from Buckley Air Force Base, Colo., and Space Duty Officer 1st Lt. Tanya Frazier, deployed from F.E. Warren AFB, Wyo., provide space-based theatre ballistic warning to U.S. forces in the Southwest Asia theatre from the Combat Operations Space Cell inside the Combined Air Operations Center. They also run Global Positioning Satellite predictions to ensure GPS accuracy and support Personnel Recovery/Combat Search and Rescue missions when necessary via space support. (U.S. Air Force photo by Master Sgt. Scott Wagers)

FROM: U.S. AIR FORCE SPACE COMMAND
Buckley endeavors to meet, exceed energy goals
by Staff Sgt. Kali L. Gradishar
460th Space Wing Public Affairs

11/1/2012 - BUCKLEY AIR FORCE BASE, Colo. -- For a base with a main mission that requires immense power sources and an abundance of electricity, the task of reducing energy consumption is no easy feat. However, Buckley is on par with researching the latest and greatest in efficient technologies and implementing them if found cost effective.

"The Air Force is known for its innovation, and researchers and scientists in our labs are working diligently to help develop the game-changing technologies that will be essential to future operations," said Secretary of the Air Force Michael B. Donley at the National Clean Energy Summit 5.0 - Power of Choice in Las Vegas in August.

"Experts in the 460th Civil Engineer Squadron are doing their part as they research efforts in the commercial industry, new and improved technologies, and initiatives within Air Force Space Command," said Ken Webb, 460th CES energy manager. "They explore how much energy the technology saves and if such schemes are employable at Buckley. They also research how much it would cost to run and if the technology is cost effective."

All efforts to reduce Buckley's use of resources fall in line with requirements to reduce energy and water consumption.

"Per federal mandates and Defense Department guidance, we have to reduce energy (intensity) by 30 percent by 2015 and water (intensity) by 26 percent by 2020," Webb said. "That's an intensity metric. It's not necessarily a complete reduction. Since Buckley Air Force Base is growing - we get new base partners and we're also growing the mission - the goal is to build new energy-efficient facilities.

"By building low energy-intensity buildings," Webb noted, "we're being more responsible with the energy we consume."

Webb explained that Buckley is trying to exceed mandated goals to bolster command-wide achievements. Within AFSPC, Buckley accounts for four percent of energy usage.

"In terms of energy efficiency and intensity we're actually below the Air Force average, and we're one of the more energy efficient bases in Space Command currently," Webb said. "Our concern now is energy demand - reducing our consumption during peak periods."

Reducing peak-hour energy consumption can be especially important in a four-season state where residents see all types of weather. Buckley's location requires extra consideration for heating and cooling technology and costs to accommodate for both cold and hot temperatures.

"We see all temperature ranges, for the most part, so we have to be prepared for hot climates and cold climates," Webb explained. "That increases our workload. Geographical location makes us have to be more creative for renewable technologies."

Projects recently completed and those currently being implemented create a more energy-thrifty installation.

Solar panels topping some base buildings and a solar field supply a portion of the energy for the base. Programmed systems regulate temperatures during off times to reduce heating costs. Also, new LED lights now line Aspen Street. The rest of the 460th Space Wing parking lot and street lights will gradually follow suit.

"After replacing nearly 500 light fixtures on base, expected savings from the LED project alone reach $42,000 a year," Webb said. "With the solar panels, temperature regulation and LED lighting projects, you can find a lot of buildings have subtle technologies added to them."

Less subtle is the potential project to update the Buckley Exchange. Tested previously at shoppettes in the continental U.S., energy-minded professionals brainstormed and implemented ways to make the quick-stop shops less of an energy sponge.

"Estimated savings in the shoppettes was around 30 to 40 percent. They ended up receiving about 45 percent actual savings, and now they're rolling out those changes that they made to 270 or so shoppettes across the CONUS," Webb noted. "There is hope that if they get the same sort of results at the Buckley Exchange, we'll have one of the most efficient exchanges in the Air Force.

Another major project currently funded for design under the energy manager's scope is a geothermal system shared between 10 AFSPC facilities, a potential endeavor should it prove cost effective after design and analysis.

"Not only is it a shared geothermal system, it also shares the heating, ventilation and air conditioning system already installed," Webb explained. "It's developing five technologies into one project."
"We're still developing, so it's not 100 percent, but it's what we like to call our second generational projects. We're trying things that are more unique," Webb said. "We feel that the need to be creative on an already energy-efficient base is what we should be doing."

While there are a number of highly technical and large projects ongoing to decrease resource consumption, all Team Buckley members can contribute to consumption reduction efforts.

"Air Force driven initiatives are important, but it is critical to remember that Airmen play a key role in achieving our energy objectives," Donley said during the National Clean Energy Summit. "We will look to their continued creativity and focus on energy to obtain an assured energy advantage in air, space, and cyberspace."

Webb advises people to practice basic energy-saving habits such as turning off lights when not in the room and turning off monitors at the end of the day or when not in use. Offices should also consolidate appliances in the work center and consider replacing old, inefficient appliances if possible, he said. Using windows for lighting when feasible during the day can also reduce electricity usage.

"Additionally, people can report any deficient items, such as leaking water fixtures and improper lighting, their facility managers who then report to the 460th CES customer service. For example, a leaking toilet can waist more than 35,000 gallons, equating to approximately $400 per month," Webb added.

Across the board, the energy manager works with a team of professionals to ensure Buckley is taking the right steps to becoming as energy efficient as possible.

"We're looking at our mission operations and how we can do it more efficiently, and that's a big part of Air Force Space Command as a whole," Webb noted. "We know we can, but the question is how. That's the next big hurdle for us."

　

　

　

DVIDS - Video - Wreath Laying Ceremony

DVIDS - Video - Wreath Laying Ceremony

U.S. SECRETARY OF STATE CLINTON'S REMARKS AT THE PARTNERSHIP MEETING ON WILDLIFE TRAFFICKING

Photo Credit:  CIA World Factbook.

FROM: U.S. DEPARTMENT OF STATE

Remarks at the Partnership Meeting on Wildlife Trafficking
Remarks
Hillary Rodham Clinton
Secretary of State
Benjamin Franklin Room
Washington, DC
November 8, 2012
Thank you very much. Thank you. Thank you all very much. Well, it’s a great delight to see all of you here. And as I look out on this audience, I see many familiar faces from the diplomatic community. And I especially thank each and every one of you for being here on this important issue.

Congressman Moran, thank you for joining us today. I’d also like to welcome Deputy Administrator Steinberg from USAID, Naoko Ishii of the Global Environmental Facility. Thanks to Under Secretary Bob Hormats for his commitment to this issue, along with Under Secretary Maria Otero and Under Secretary Tara Sonenshine and Assistant Secretary Kerri-Ann Jones, and many others here in the State Department, and particularly all of you from the conservation and wildlife community and the private sector who have been involved in this issue for many years and have done extraordinary work. Unfortunately, we now find ourselves with all of that positive effort that started 30, 40 years ago being affected by changes that we have to address at every level of the international community.

Now, some of you might be wondering why a Secretary of State is keynoting an event about wildlife trafficking and conservation, or why we are hosting this event at the State Department in the first place. Well, I think it’s because, as Bob Hormats has just pointed out, and as the public service announcements reinforce, over the past few years wildlife trafficking has become more organized, more lucrative, more widespread, and more dangerous than ever before.

As the middle class grows, which we all welcome and support, in many nations items like ivory or rhinoceros horn become symbols of wealth and social status. And so the demand for these goods rises. By some estimates, the black market in wildlife is rivaled in size only by trade in illegal arms and drugs. Today, ivory sells for nearly $1,000 per pound. Rhino horns are literally worth their weight in gold, $30,000 per pound.

What’s more, we are increasingly seeing wildlife trafficking has serious implications for the security and prosperity of people around the world. Local populations that depend on wildlife, either for tourism or sustenance, are finding it harder and harder to maintain their livelihoods. Diseases are spreading to new corners of the globe through wildlife that is not properly inspected at border crossings. Park rangers are being killed. And we have good reason to believe that rebel militias are players in a worldwide ivory market worth millions and millions of dollars a year.

So yes, I think many of us are here because protecting wildlife is a matter of protecting our planet’s natural beauty. We see it’s a stewardship responsibility for us and this generation and future generations to come. But it is also a national security issue, a public health issue, and an economic security issue that is critical to each and every country represented here.

We all, unfortunately, contribute to the continued demand for illegal animal goods. Wildlife might be targeted and killed across Asia and Africa, but their furs, tusks, bones, and horns are sold all over the world. Smuggled goods from poached animals find their way to Europe, Australia, China, and the United States. I regret to say the United States is the second-largest destination market for illegally trafficked wildlife in the world. And that is something we are going to address.

Now, several conservation groups are here with us today, and we greatly appreciate their invaluable work. But the truth is they cannot solve this problem alone. None of us can. This is a global challenge that spans continents and crosses oceans, and we need to address it with partnerships that are as robust and far-reaching as the criminal networks we seek to dismantle.

Therefore, we need governments, civil society, businesses, scientists, and activists to come together to educate people about the harms of wildlife trafficking. We need law enforcement personnel to prevent poachers from preying on wildlife. We need trade experts to track the movement of goods and help enforce existing trade laws. We need finance experts to study and help undermine the black markets that deal in wildlife. And most importantly, perhaps, we need to reach individuals, to convince them to make the right choices about the goods they purchase.

Now, there’s no quick fix, but by working closely, internationally, with all of these partners, we can take important steps to protect wildlife in their environments and begin to dry up the demand for trafficked goods. So with these goals in mind, the State Department is pursuing a four-part strategy.

First, on the diplomatic front, we are working with leaders from around the world to develop a global consensus on wildlife protection. I spoke with President Putin, Ambassador, when we were together at the APEC summit in Vladivostok. He has been a staunch, vocal, public supporter of Russian wildlife. And I think it’s fair to say his personal efforts over the last years have made the lives of tigers in Russia much safer. There’s still poaching, but at least there is a commitment from the highest level of the Russian Government to protect the wildlife of Russia. In fact, when I was in Vladivostok, there were posters everywhere with tigers on the pictures on the lampposts and walls and everywhere we looked, reminding people that this was an important issue to Russia and the Russian Government. And I worked – I had the great privilege of working with President Putin and the other leaders there to make sure that the leaders’ statement that was issued included, for the first time ever, strong language on wildlife trafficking.

Now, Undersecretaries Bob Hormats and Maria Otero have met with African and Asian leaders to discuss the immediate actions needed to thwart poachers. Next week, President Obama and I will personally bring this message to our partners in ASEAN and the East Asia Summit when we meet in Phnom Penh.

We are also pressing forward with efforts to protect marine life. And last week, we joined forces with New Zealand to propose the world’s largest marine protected area, the Ross Sea region of Antarctica. And we hope to gain support from the international community as this important proposal moves forward.

We’re strengthening our ability to engage diplomatically on these and other scientific issues. Building scientific partnerships is an important tool in addressing such global challenges. That’s why I’m pleased to announce our three new science envoys, Dr. Bernard Amadei of the University of Colorado, the founder of Engineers Without Borders; Dr. Susan Hockfield, the former president and currently faculty member of the Massachusetts Institute of Technology; and renowned evolutionary biologist Dr. Barbara Schaal of Washington University in St. Louis. Are these three scientists with us today? Are they? Okay. But I think it’s working to create a scientific consensus and very preeminent scientists from across the world speaking out that is one of the important steps that we are urging partners to join with us in doing.

Secondly, we are reaching beyond governments to enlist the support of people. As part of this effort, Under Secretary Tara Sonenshine, our Under Secretary for Public Diplomacy, is spearheading a global outreach campaign which we will launch December 4th on Wildlife Conservation Day. Our embassies will use every tool at their disposal to raise awareness about this issue, from honoring local activists, to spreading the word on Facebook and Twitter. We want to make buying goods, products from trafficked wildlife, endangered species unacceptable, socially unacceptable. We want friends to tell friends they don’t want friends who ingest, display, or otherwise use products that come from endangered species anywhere in the world.

Third, we’re launching new initiatives to strengthen and expand enforcement areas. USAID has already provided more than $24 million over the past five years on a range of programs that combat wildlife crimes. Last year, they launched the ARREST program, which is establishing regional centers of expertise and expanding training programs for law enforcement. We really want to work with all of you, and we want both from countries that are victimized by trafficking to countries where consumers are the end-buyers of such products.

Finally, this is a global issue, and it calls, therefore, for a concerted global response. So I hope every government and organization here today will join the Coalition Against Wildlife Trafficking. That is the global partnership for sharing information on poachers and illicit traders. We’ll also be convening meetings with traditional stakeholders like NGOs and governments and with less traditional stakeholders like air and cruise line companies to discuss new potential partnerships.

Some of the most successful initiatives we’ve seen so far are the regional wildlife enforcement networks. These networks are critical to strengthening protection efforts and enhancing cooperation among key countries. To build on these efforts, today I’m calling for the creation of a global system of regional wildlife enforcement networks to take advantage of those networks that already are operating and the lessons we have learned from them. The sooner we get this off the ground, the better, and to that end, the State Department is pledging $100,000 to help get this new global system up and running.

I want to mention one last step we’re taking. Trafficking relies on porous borders, corrupt officials, and strong networks of organized crime, all of which undermine our mutual security. I’m asking the intelligence community to produce an assessment of the impact of large-scale wildlife trafficking on our security interests so we can fully understand what we’re up against. When I was in Africa last summer, I was quite alarmed by the level of anxiety I heard from leaders. It is one thing to be worried about the traditional poachers who come in and kill and take a few animals, a few tusks, a few horns, or other animal parts. It’s something else when you’ve got helicopters, night vision goggles, automatic weapons, which pose a threat to human life as well as wildlife. Local communities are becoming terrified. Local leaders are telling their national leaders that they can lose control of large swaths of territory to these criminal gangs. Where criminal gangs can come and go at their total discretion, we know that begins to provide safe havens for other sorts of threats to people and governments.

So I think we have to look at this in a comprehensive, holistic way. And there’s something for everybody. If you love animals, if you want to see a more secure world, if you want our economy not to be corrupted globally by this kind of illicit behavior, there is so much we can do together. After all, the world’s wildlife, both on land and in our waters, is such a precious resource, but it is also a limited one. It cannot be manufactured. And once it’s gone, it cannot be replenished. And those who profit from it illegally are not just undermining our borders and our economies. They are truly stealing from the next generation. So we have to work together to stop them and ensure a sustainable future for our wildlife, the people who live with them, and the people who appreciate them everywhere.

So let me thank you all for being here. I really appreciate the turnout, and it means a great deal and the fact that so many ambassadors are here representing their countries – and I particularly want to thank our colleagues, the Ambassador of Kenya, the Ambassador from Indonesia, for taking a leading role in this effort. We want to hear your ideas. These are our ideas, but we really are soliciting your ideas – what works, what can we do better, how can we make a difference. Let’s put the poachers out of business and build a more secure and prosperous world for all of us, and particularly for children generations to come.

Thank you, all. (Applause.)

U.S. Department of Defense Armed with Science Update

U.S. Department of Defense Armed with Science Update

MARINE BROTHERS REUNITE IN AFGHANISTAN

Marine Corps Capt. Dustin Kerlin recently reunited with his brother, Marine Corps Lt. Col. Matthew Kerlin for a mission in Afghanistan. U.S. Marine Corps photo by Cpl. Timothy Lenzo

FROM: U.S. DEPARTMENT OF DEFENSE
Face of Defense: Brothers Share Family Time in Afghanistan

By Marine Corps Cpl. Timothy Lenzo
Regional Command Southwest
CAMP BASTION, Afghanistan, Nov. 6, 2012 - A pair of Marine Corps brothers had a chance to get together briefly before an operation over Afghanistan's Helmand province.

Capt. Dustin Kerlin, a pilot with Medium Tiltrotor Squadron 161, recently enjoyed flying with his brother, Lt. Col. Matthew Kerlin.

Matthew, an embedded training team deputy commander, arrived here before the operation. Family members do not often deploy together, and his brother appreciated the opportunity.

"Getting to meet up with my brother in Afghanistan was the highlight of my career," Dustin said. "It was great to get to see him."

The brothers, from Albion, Ind., reunited on the flightline for a brief meeting before a joint operation with the two units to transport service members into Helmand province.

"I am thankful any time I get to see a member of the family," the elder brother said, "even if it is for only 20 minutes on a flightline in Afghanistan."

The brothers do not see each other often. Their family is scattered across the United States making it difficult to meet.

"It was great to see him," Dustin said. "My brother has always been a mentor personally and professionally for me."

Like many families, the brothers picked up right where they left off. Though years had passed since the last time they saw each other, they said, it was easy to be themselves with one another.

The rest of the Kerlin family was shocked, but pleased, to hear the brothers got to work together.

"Being dispersed across the U.S. makes it even better when we have a chance to get together," Matthew said.

While the chance to work together surprised the two Marine pilots, the fact that they both chose to be pilots did not surprise anyone. Their father had his private pilot's license and took them flying when they were children. This sparked their love for flying at a young age.

"As long as I can remember, he would take us up in his plane," Dustin said. "We would fly low by the house [and] do tricks like stalls and go to air shows."

For the brothers, the experiences shaped their lives.

"He is the reason I am a Marine pilot, and it's also his fault I am a helicopter pilot," Matthew said. "Flying is his passion, and his knowledge of military aircraft is incredible."

When Matthew was a young teen, he went to a small airport that had an old Bell 47, a two-bladed, light helicopter. He paid $100 and experienced his first helicopter flight.

Whether it was taking rides in helicopters or flying by their house, the two Marines were hooked. Now, many years later and thousands of miles away from their hometown, the brothers got an early holiday gift. For the one operation they flew together, the Afghanistan skyline temporarily replaced the Indiana landscape of their childhood.

SEC CHARGES HEDGE FUND MAMAGER IN BATON ROUGE, LA., WITH DEFRAUDING INVESTORS



Credit:  Wikimedia Commons

FROM: SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., Nov. 8, 2012 — The Securities and Exchange Commission today charged a hedge fund manager in Baton Rouge, La., with defrauding investors by hiding millions of dollars in losses suffered during the financial crisis from investments tied to residential mortgage-backed securities (RMBS).

The SEC alleges that Walter A. Morales and his firm Commonwealth Advisors Inc. caused the hedge funds they managed to buy the lowest and riskiest tranches of a collateralized debt obligation (CDO) called Collybus. They sold mortgage-backed securities into the CDO at prices they had obtained four months earlier while knowing that the RMBS market had declined precipitously in the meantime. As the CDO investments continued to perform poorly, Morales instructed Commonwealth employees to conduct a series of manipulative trades between the hedge funds they advised (called cross-trades) in order to conceal a $32 million loss experienced by one of the funds in its Collybus investment. Morales and Commonwealth lied to investors about the amount and value of mortgage-backed assets held in the hedge funds, and they created phony internal documents to justify their false valuations.

"Morales and Commonwealth Advisors concealed significant hedge fund losses from investors, including pension fund investors, instead of owning up to them and facing the consequences," said Robert Khuzami, Director of the SEC’s Division of Enforcement. "Investors put their fundamental trust in the hands of their investment adviser, and they deserve better than being manipulated and lied to through deceptive trades and phony documents."

According to the SEC’s complaint filed in U.S. District Court for the Middle District of Louisiana, Commonwealth’s hedge fund clients included pension funds and individual investors. Morales and Commonwealth invested a significant portion of hedge fund assets in RMBS. When the mortgage markets began to decline dramatically in 2007, bond rating agencies began to aggressively downgrade subprime RMBS. Therefore, Commonwealth clients were sustaining heavy investment losses and Morales knew those losses would probably continue.

The SEC alleges that rather than come clean with investors, Morales directed Commonwealth to execute more than 150 deceptive cross-trades from two hedge funds they advised to another one of their hedge funds in June 2008 at prices below Commonwealth’s own valuation for those securities. After the trades, Morales directed a Commonwealth employee to mark the securities at fair market value, which created a fraudulent $19 million gain for the acquiring hedge fund at the expense of the funds that sold. Morales ordered the cross-trades even though Commonwealth had represented in forms filed with the SEC that it would not execute such trades between these hedge fund clients. Moreover, when the trades raised concern from the prime broker, Morales falsely represented that the transactions were for a legitimate business purpose and at prevailing market prices.

The SEC further alleges that Morales deceived Commonwealth’s largest investor about its exposure to the CDO. Morales agreed to limit the investor’s exposure to Collybus through its investment in a particular Commonwealth hedge fund to 10 percent of that hedge fund’s equity. Morales, however, abided by this agreement only temporarily, and the investor’s exposure to Collybus more than doubled by mid-2008. After the large investor learned that Commonwealth was not following its stated valuation procedures, the investor requested valuation committee meeting minutes to review. Morales prepared false minutes that were delivered to the investor purporting to describe meetings that never occurred.

The SEC’s complaint charges Morales and Commonwealth with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8. The SEC also alleges that Commonwealth violated Sections 204, 206(4), and 207 of the Advisers Act and Rules 204-2, 206(4)-2, and 206(4)-7, and that Morales aided and abetted Commonwealth’s violations of Section 10(b) of the Exchange Act, Rule 10b-5, and Sections 204, 206(1), 206(2), 206(4), and 207 of the Advisers Act and Rules 204-2, 206(4)-2, 206(4)-7, and 206(4)-8. Morales was a controlling person of Commonwealth pursuant to Section 20(a) of the Exchange Act, and is therefore liable as a control person for Commonwealth’s violations of the Exchange Act.

The SEC’s investigation, which is continuing, has been conducted by Gary M. Zinkgraf, Carol E. Schultze, Jacob D. Krawitz, and Paul Gunson in coordination with members of the SEC Enforcement Division’s Structured and New Products Unit and Asset Management Unit. Matthew Rossi and Jan Folena will handle the SEC’s litigation.

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY
121109-N-SB121-170 MAYPORT, Fla. (Nov. 9, 2012) The University of Florida Gators, Georgetown University Hoyas and gathered spectators stand for the singing of the national anthem by the country music group Little Big Town and the parading of the colors aboard the amphibious assault ship USS Bataan (LHD-5) during the Navy-Marine Corps Classic. The Hoyas faced off against the Gators in the Navy-Marine Corp Classic hosted by the City of Jacksonville, which along with its surrounding communities has a long tradition of supporting Sailors and Marines. The game honors veterans, active and reserve service members, and military families. America's away team, the Navy and Marine Corps are reliable, flexible, and ready to respond worldwide on, and above and below the sea as well ashore. Join the conversation in social media using #BBallOnDeck. (U.S. Navy photo by Mass Communication Specialist 1st Class Ian W. Anderson/Released)

121109-N-SB121-288 MAYPORT, Fla. (Nov. 9, 2012) Fireworks explode above the guided-missile frigate USS De Wert (FFG-45) in Mayport harbor during the Navy-Marine Corps Classic basketball game. The Georgetown University Hoyas faced off against the University of Florida Gators in the Navy-Marine Corp Classic hosted by the City of Jacksonville, which along with its surrounding communities has a long tradition of supporting Sailors and Marines. The game honors veterans, active and reserve service members, and military families. America's away team, the Navy and Marine Corps are reliable, flexible, and ready to respond worldwide on, and above and below the sea as well ashore. Join the conversation in social media using #BBallOnDeck. (U.S. Navy photo by Mass Communication Specialist 1st Class Ian W. Anderson/Released)
 

GENERAL DEMPSEY HONORS U.S. VETERANS IN SOUTH KOREA

The "Bridge of No Return" in the Demilitarized Zone (DMZ) between North and South Korea was used for prisoner exchanges at the close of the Korean War. Credit:  CIA World Factbook.

FROM: U.S. DEPARTMENT OF DEFENSE
Dempsey Honors U.S. Veterans at Seoul Memorial

By Jim Garamone
American Forces Press Service

YONGSAN GARRISION, South Korea, Nov. 10, 2012 - Veterans of the Korean War would have recognized the weather if nothing else about the South Korean capital of Seoul today, as Pouring rain obscured the skyscrapers that are now a symbol of Seoul on Nov. 11 here, but the Veterans of Foreign War carried through with a ceremony to remember their comrades -- especially the more than 38,000 Americans killed in the Korean War from 1950 to 1953.

Army Gen. Martin E. Dempsey joined Army Gen. James D. Thurman -- commander of Combined Forces Korea and U.S. Forces Korea -- and U.S. Ambassador to South Korea Sung Y. Kim for the ceremony at the 8th Army Memorial here. The ceremony also honored some American and Korean veterans of the war who attended.

Dempsey said it is right and fitting to honor veterans, because while he represents the men and women who make up the finest military the world has ever seen, "we know we stand on very broad shoulders."

"On Veterans Day we honor every man or woman who has worn the uniform of our nation, who have selflessly secured America's promise throughout our history," the general said. "That history teaches us that security doesn't just happen. It demands effort, sacrifice, courage and commitment. It requires generations of men and women willing to go to distant lands and, as the Korean War Memorial in Washington says, 'to defend a country that they never knew and a people that they never met.'"

Dempsey asked the audience to remember not only the veterans of previous wars, but those thousands of service members in harm's way today.

"This isn't just about what we say here today; this is about how we honor our veterans every day of the year," the chairman said. "It's remaining committed to supporting them and their families in every way that we possibly can. It's about serving them as well as they serve and continue to serve our nation."

That, the chairman added, is the sacred trust between America and those who defend it. "It's a trust extolled by the 8th Army – honored by this memorial – that drove the enemy north of the 38th parallel," he said.

Kim thanked the Korean War veterans for giving Americans and Koreans "the freedom to chose their own paths."

The ambassador noted that what began as a purely military alliance in 1950 has morphed to a full and close alliance on every level. Behind the bulwark of U.S. military, the South Korean military has grown to a world-class organization. South Korea has grown from a destitute land destroyed by war in 1953 to the 12th-largest economy in the world. Thanks to the security provided by the U.S.-South Korean alliance, he added, this country has risen from a Third World nation to the First World in a generation.

Kim said the South Korean military has stood with its American allies in Vietnam, Iraq and Afghanistan, and he thanked them for the Korean people for their sacrifices.

Thurman said the ceremony was a chance for both Americans and Koreans to reflect on "our values and our freedoms that we share."

He noted that many U.S. veterans live in South Korea, and said it is fitting to recognize them.

"Today we honor the young men and women who throughout the history of our nation answered the call in times of need," Thurman said. "Our veterans served both at home and overseas to defend our country and its values."

GAMING EXECUTIVES CHARGED BY SEC WITH LYING TO INVESTORS

Photo Credit:  SEC.

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., Nov. 8, 2012 — The Securities and Exchange Commission today charged three executives with repeatedly lying to investors about the operations and financial condition of an Irvine, Calif.-based company that purported to sell credit card-size electronic games. The SEC also charged the company’s independent auditor with facilitating the scheme.

The SEC alleges that chief executive officer Lee Cole and chief financial officer Linden Boyne orchestrated a scheme in which Electronic Game Card Inc. (EGMI) enticed investors by claiming to have millions of dollars in annual revenue, hold millions of dollars in investments, and own an off-shore bank account worth more than $10 million. In reality, many of the company’s purported contracts were phony, the purported investments were merely in entities affiliated with Cole or Boyne, and the bank account did not exist. As a result of EGMI’s false claims, the company’s outstanding common stock was once valued as high as $150 million. EGMI is now bankrupt and its stock is worthless.

The SEC charged the company’s outside auditor — certified public accountant Timothy Quintanilla — with repeatedly issuing clean audit opinions about EGMI based on reckless and deficient audit work. Also charged is Kevin Donovan, who later replaced Cole as CEO and ignored many red flags about the accuracy of the company’s public statements and the integrity of Cole and Boyne. He provided false information during conference calls with analysts and investors.

"Cole and Boyne played a game of make-believe with a publicly-traded microcap company," said Andrew M. Calamari, Director of the SEC’s New York Regional Office. "We will continue to fight microcap fraud and bring charges against not only the company executives but also the auditors or other gatekeepers who legitimize a fraud and allow investors to be victimized."

According to the SEC’s complaint filed in federal court in Manhattan, EGMI’s material misrepresentations and omissions in SEC filings and public statements occurred from 2007 to 2009. The company repeatedly reported non-existent revenues and assets, misrepresented its business operations, and failed to disclose related-party transactions. Those misrepresentations and others like them were just part of a scheme that Cole and Boyne orchestrated through EGMI to reap approximately $12 million in unlawful gains. While they were making material misrepresentations to inflate EGMI’s stock price, Cole and Boyne also secretly funneled millions of shares of EGMI stock to entities based in Gibraltar that they secretly controlled. They directed the Gibraltar entities to sell the shares, and proceeds of those sales were transferred to people or entities associated with Cole and Boyne or to EGMI itself. Cole and Boyne bolstered their lies by providing falsified documents to the company’s outside auditors.

The SEC alleges that as EGMI’s engagement partner, Quintanilla and the public accounting firm Mendoza Berger & Co. LLP issued clean audit opinions for EGMI’s year-end financial statements for 2006, 2007, and 2008, even though those statements were riddled with material misstatements and omissions. Mendoza Berger and Quintanilla knowingly or recklessly misrepresented that the firm had conducted audits of EGMI’s financial statements "in accordance with the standards of the Public Company Accounting Oversight Board (United States)." Mendoza Berger’s opinion stated that EGMI’s financial statements "present[ed] fairly, in all material respects, the financial position" of EGMI. In fact, Mendoza Berger had not audited critical aspects of EGMI’s financial statements, and its work did not conform to the standards of the Public Company Accounting Oversight Board (PCAOB). Quintanilla had no meaningful basis to have Mendoza Berger issue an opinion on EGMI’s financial statements.

The SEC further alleges that shortly after Donovan became CEO, he was notified of many red flags related to the company’s public statements about its operations, finances, and share count. Donovan violated the antifraud provisions of the securities laws when he led several public conference calls with securities analysts and investors in 2009, and knowingly or recklessly relayed false financial information about the company that had been provided to him by Cole and Boyne.

The SEC’s complaint alleges that Cole and Boyne violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933; Sections 10(b), 13(b)(5), 13(d), and 16(a) of the Securities Exchange Act of 1934 and Rules 10b-5, 13a-14, 13b2-1, 13b2-2, 13d-1, 13d-2, 16a-2, and 16a-3; and Section 304 of the Sarbanes-Oxley Act of 2002. The SEC also alleges that Cole and Boyne are liable as control persons and for aiding and abetting violations of Sections 10(b), 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13a-13. The SEC charges that Donovan violated Sections 17(a)(1) and 17(a)(3) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5. The SEC alleges that Quintanilla violated Section 17(a) of the Securities Act and Sections 10(b), 10A(a)(1), and 10A(b)(1) of the Exchange Act and Rule 10b-5. Quintanilla also is charged with aiding and abetting violations of Sections 10(b), 10A(a)(1), and 10A(b)(1) of the Exchange Act and Rule 10b-5 thereunder.

The SEC’s complaint seeks, among other things, a final judgment ordering Cole, Boyne, Donovan, and Quintanilla to pay financial penalties and permanently enjoining them from future violations of the securities laws; enjoining Cole, Boyne, and Donovan from serving as officers and directors of public companies and from participating in penny stock offerings; and ordering Cole, Boyne, and Quintanilla to disgorge their ill-gotten gains with prejudgment interest.

The SEC’s investigation, which is continuing, has been conducted by Michael Paley, Stephen Larson, James Addison, Gwen Licardo, and Aaron Arnzen of the New York Regional Office. Mr. Arnzen will lead the SEC’s litigation. The SEC thanks the PCAOB for its assistance in this matter.

U.S. EXPORT-IMPORT BANK GUARANTEES $35 MILLION FOR CONSTRUCTION OF SULFUR PURIFICATION PLANT IN IRAQ



Trade.  Credit:  CIA World Factbook.

FROM: U.S. EXPORT-IMPORT BANK
Washington, D.C. – The board of the Export-Import Bank of the United States (Ex-Im Bank) voted to guarantee a JPMorgan Chase loan totaling $35 million to Devco International LLC (Devco) of Tulsa, Okla., for the design and construction of a sulfur purification plant in Mosul, Iraq.

Ex-Im Bank’s financing will support approximately 380 U.S. jobs, according to bank estimates derived from Departments of Commerce and Labor data and methodology.

"This significant transaction not only supports American small-business jobs here at home, but it also supports the sulfur and agricultural industries in Iraq," said Ex-Im Bank Chairman and President Fred P. Hochberg. "By providing a working –capital guarantee, Ex-Im Bank is demonstrating that we are always looking to support U.S. exporters and grow our economy by creating quality jobs here at home."

Devco utilizes as part of its design a modular concept that maximizes labor concentration in a fabrication-shop environment. The company will design, procure, fabricate, and pre-assemble the plant in the United States and then ship the plant in modular form to Iraq. Upon arrival, Al Hawarth, an Iraqi-owned company, will re-assemble the facility outside the riverside city of Mosul.

The plant will process sulfur from underground deposits utilizing a priority process, Submerged Combustion Distillation, developed by CTI Consulting of New Orleans, La. The Al-Mishraq Sulphur State Company, which will own and operate the facility, plans to retail the purified sulfur output in Iraq for domestic use. Sulfur is a key ingredient in fertilizer and therefore is in demand within the agricultural sector.

"We are proud to support Devco International LLC in this important transaction which will create hundreds of American jobs," said Lillian Labbat, managing director, J.P. Morgan. "We see exports as a key driver of economic expansion. Our export finance capabilities and global footprint are what enable us to help small businesses to compete and to succeed."

Founded in 1978, Devco is a chemical-engineering firm that designs sulfur-handling equipment. The small-business company developed a wet-processing technology known as the Devco II Wet Pelletizing Technology, which converts molten sulfur into solid sulfur pellets in a process that is both economical and environmentally friendly.

"We are very pleased with the support being provided to us by Ex-Im Bank on this critical project. A project such as this would have been difficult to obtain without their dedicated assistance," said Doug Houston, the owner and chief executive officer of Devco. "Projects of this magnitude allow us to extend and expand our technical staff, while supplying significant job opportunities for our fabrication partners in several locations throughout the United States. This project heightens the company’s opportunity to provide additional United States based technology and equipment solutions for Iraq."

U.S. DOD RELEASES BENGHAZI TIMELINE FOR RESPONSE

Sahara Desert In Libya.  Credit:  CIA World Factbook.

FROM: U.S. DEPARTMENT OF DEFENSE

DOD Releases Detailed Timeline for Benghazi Response
By Karen Parrish
American Forces Press Service
WASHINGTON, Nov. 10, 2012 - The Defense Department released a detailed timeline yesterday of the Pentagon's response to the September attack in Benghazi, Libya, that left four Americans dead, including U.S. Ambassador J. Christopher Stevens.

A senior defense official, speaking on background with Pentagon reporters, emphasized the rapid consultation, planning and troop pre-deployment actions defense leaders undertook in the first hours following the attack.

"With naval, Marine, special operations and air forces either employed or en route to Libya during the attacks, we responded," the official said. "We mourn the loss of four American heroes in Benghazi."

The military's initial response began within minutes of the first incident in Benghazi, the official said: the attack on the U.S. consulate began at 3:42 p.m. EDT [9:42 p.m. Benghazi time], and by 5:10 EDT an unarmed surveillance aircraft was on station over the Benghazi compound.

By 5:30 p.m., all surviving Americans had left the consulate, the official noted, adding that defense officials didn't have that information until later.

The senior official noted that for people to understand the sequence of events in Benghazi, "it's important to discuss the wider context of that tragic day."

In the months before the attack, the official said, hundreds of reports surfaced of possible threats to U.S. citizens and facilities across the globe. In the Middle East and North Africa on Sept. 11, the official added, U.S. facilities in more than 16 countries were operating on a heightened force-protection level, based on specific threats.

"I would note ... that there was no specific or credible threat that we knew of on the day that the attacks ... occurred in Benghazi," the official said.

The official acknowledged that since Sept. 11, many people have speculated on whether increased military intervention, including the use of manned and unmanned aircraft, might have changed the course of events in Libya that night.

"Unfortunately, no alternative or additional aircraft options were available within ... [enough time] to be effective," the official said. "Due to the incomplete intelligence picture on the ground, armed aircraft options were simply not feasible."

The DOD timeline records that in the first hours following the initial attack, Defense Secretary Leon E. Panetta and Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, conferred first with the president, and shortly after with senior officials including Army Gen. Carter F. Ham, who leads U.S. Africa Command. Africom's area of responsibility includes Libya.

During those meetings, the official said, Panetta verbally ordered two fleet antiterrorism security team, or FAST, platoons to prepare to deploy from their base in Rota, Spain. The secretary also issued verbal prepare-to-deploy orders for a U.S. European Command special operations force then training in Central Europe and a second special operations force based in the United States.

At 6:30 p.m. EDT, according to the timeline, a six-person security team, including two DOD members, left the U.S. Embassy in Tripoli for Benghazi.

The official noted the Pentagon's National Military Command Center staff, within hours of the attack, began planning support and contingency operations with transportation and special operations experts, as well as with representatives from the four services and Africa, Europe and Central commands. By 8:39 p.m., the official said, the command center had started issuing written orders for the forces the secretary had alerted.

At 11 p.m. EDT, the official said, a second unmanned, unarmed surveillance aircraft relieved the first, and at 11:15 p.m. -- around 5 a.m. Sept. 12 in Benghazi -- the second U.S. facility there, an annex near the consulate, came under mortar and rocket-propelled grenade fire.

By 1:40 a.m. EDT Sept. 12, the first wave of Americans left Benghazi for Tripoli by airplane, with the second wave, including the bodies of the fallen, following at 4 a.m. A C-17 aircraft, under Africom direction, flew the evacuees from Tripoli to Germany later that day, the official said.

As the timeline makes clear, the official said, the evacuation took place before the FAST platoons or special operations forces arrived, although all were converging on Libya -- noting repeatedly that DOD leaders lacked a clear picture of enemy, civilian and American positions in the area.

"There are people out there who have suggested that an overhead surveillance aircraft could have perfect visibility into what was happening on the ground, and on that basis alone, you could send in a team," the official said. "That is not necessarily how things work."

An overhead surveillance aircraft operating at night over a city can't always help military members separate friend and foe on the ground, the official said.

"You get a lot of good information from a surveillance aircraft, ... but it doesn't necessarily provide you a complete and instant picture of what is happening on the ground. ... If you're going to undertake military action, you'd better have solid information before you decide to take the kinds of steps that are required to effectively complete a military mission of this sort," the official told reporters.

Over the roughly 12 hours between the start of the attacks and the time the last Americans were evacuated from Benghazi, the official said, defense leaders postured forces to meet any contingencies that might develop, as there was no way to know in the early, "murky" stages whether the situation would be resolved within hours, days or longer.

"We absolutely had our forces arrayed in a way that could potentially respond to events that might unfold," the official said. "We are an excellent military -- the finest in the world. We're always prepared. But we're neither omniscient nor omnipresent."

GOVERNMENT, INDUSTRY, ALLIES NEED TO WORK TOGETHER FOR CYBERSECURITY

GEN Keith B. Alexander United States Army

FROM: U.S. DEPARTMENT OF DEFENSE

Cybersecurity Involves Federal, Industry Partners, Allies
By Cheryl Pellerin
American Forces Press Service
WASHINGTON, Nov. 8, 2012 - The $110 billion-a-year cyber economy has never been more vulnerable to crime and other threats, and securing the Internet against attacks demands the expertise of government agencies, industry and allies, the commander of U.S. Cyber Command said here yesterday.

Army Gen. Keith B. Alexander, Cybercom chief and director of the National Security Agency, spoke before a large audience at the Symantec 2012 Government Symposium.

The symposium examines a fundamental question: How to protect sensitive information while enabling collaboration across jurisdictions, nations, citizens and the private sector?

"Government ... operations depend on the network. If we lose that network we can't communicate, [and] ... what happens when [adversaries] disrupt our network or the power grid or our banking institutions?" Alexander said, adding that the U.S. must work with its partners in industry and its allies to solve the problem.

"Many will ask about the roles of [the National Security Agency and Cybercom] in this, and how can we ensure civil liberties and privacy [as well as] the security of cyberspace? We can do both," he said.

One of the first things industry and government must decide is how to make sure all companies involved in U.S. critical infrastructure -- including financial and information services and the defense industrial base -- institute the highest possible levels of computer security.

"How many companies in the United States and among our allies are at this level?" Alexander asked.

"We actually do inspections," he added. "We inspect our government networks to see how many are at 100 percent. And the answer is, very few."

Companies in some sectors, like banking and the high end of the defense industrial base, are "right there at the top" of computer security, the general said.

"Then you go out to some companies that are being [attacked by adversaries in cyberspace] and they don't know what the threat looks like nor what they should do, and some of them are in critical infrastructure," he added.

Nobody wants to make such an effort hard, costly or bureaucratic, Alexander said.

"The question is how do we help them?" he said. "What's the right forum for government and industry to work together to help those companies get to the right level of security?"

Another imperative for government-industry collaboration involves gaps in computer security exploited by what are called "zero-day" attacks -- those that exploit vulnerabilities in computer applications.

Eventually, patches are created to plug the security holes, but not before adversaries have entered and damaged the network or stolen intellectual property.

Alexander used an analogy to explain how Cybercom or the NSA could help industry identify what the general called "bad packets," or those that carry destructive payloads out on the Internet.

"Internet service providers see packets out there. We want them to be able to see bad packets and do something about them. We'll have [an examination process] for every packet. And we'll say, 'Did you see a bad packet in the network? Tell us where it's coming from and going to, and stop it because [it's carrying] a destructive payload,'" the general explained.

"When they see that bad packet, we don't need to know what was in the communications," he added. "All we need to know is a dangerous packet went from point A to point B right now, and that we may need to act."

The federal government "is not looking at the traffic," Alexander said.

"Industry is looking at the traffic and they have to do that to own and operate these networks. We're going to help them with signatures and other things, and they need to tell us when they need our help. But it's got to be done in time for us to help, and that's part of the key issue."

At Cybercom, the general said, experts are training the cyber workforce of the future, determining roles and responsibilities of the federal agencies involved in cybersecurity and exploring a defensible architecture for the Defense Department.

"The DOD architecture, in my opinion, is not defensible per se. We're doing our best to defend it, but we've made this really hard," Alexander said. The department has 15,000 enclaves, each run by separate system administrators and each with its own firewalls, he added.

"What that means is we need to come up with a defensible architecture," the general said, adding that "a ... virtual cloud is key to our success for a couple of areas for the Defense Department," including for a growing number of mobile users.

Cybercom and other agencies are also working on issues related to their authority to respond to a problem, Alexander said.

The key question, he added, is what can the Department of Homeland Security, the FBI, Cybercom and the NSA do to defend the country against a cyberattack, and when can they do it?

Alexander said that he, DHS Secretary Janet Napolitano, and FBI Director Robert S. Mueller III "have laid out lanes in the road for the government entities."

The FBI is responsible for investigation, attribution and domestic problems. DHS is responsible, along with partners like NSA, the National Institute for Standards and Technology and the SANS Institute, for cybersecurity standards.

NSA and Cybercom have a couple of roles and responsibilities, Alexander said, including foreign intelligence.

"NSA has the best folks in the world," the general said. "They have special skills and we want to leverage those skills to help secure cyberspace for our country and for our allies."

Cybercom's role "is not only to operate and defend DOD networks but to defend the country," he said, noting Cybercom would step in if America came under cyberattack.

In the meantime, the general said, he's concerned that attacks like the destructive August attack on computers at Saudi Arabia's government-owned oil company Aramco are happening and "we're spending a lot of time talking about what we should do and when we should do it."

While there is still time, he said, "while you're all in the room together with us ... we ought to argue it out just like we did in the election [on Tuesday], come to a solution and then get going."

PLANET MERCURY'S SMILING FACE

FROM: NASA

It looks like even the craters on Mercury have heard of Bob Ross! The central peaks of this complex crater have formed in such a way that it resembles a smiling face. This image taken by the MESSENGER spacecraft is oriented so north is toward the bottom. The MESSENGER spacecraft is the first ever to orbit the planet Mercury, and the spacecraft's seven scientific instruments and radio science investigation are unraveling the history and evolution of the Solar System's innermost planet. During the one-year primary mission, MESSENGER acquired 88,746 images and extensive other data sets. MESSENGER is now in a yearlong extended mission, during which plans call for the acquisition of more than 80,000 additional images to support MESSENGER's science goals. Image Credit: NASA

ROBOT TEST OF THE INTERPLANETARY INTERNET

Photo:  International Space Station.  Credit:  NASA

FROM: NASA

NASA, ESA Use Experimental Interplanetary Internet to Test Robot From International Space Station

WASHINGTON -- NASA and the European Space Agency (ESA) successfully have used an experimental version of interplanetary Internet to control an educational rover from the International Space Station. The experiment used NASA's Disruption Tolerant Networking (DTN) protocol to transmit messages and demonstrate technology that one day may enable Internet-like communications with space vehicles and support habitats or infrastructure on another planet.

Space station Expedition 33 commander Sunita Williams in late October used a NASA-developed laptop to remotely drive a small LEGO robot at the European Space Operations Centre in Darmstadt, Germany. The European-led experiment used NASA's DTN to simulate a scenario in which an astronaut in a vehicle orbiting a planetary body controls a robotic rover on the planet's surface.

"The demonstration showed the feasibility of using a new communications infrastructure to send commands to a surface robot from an orbiting spacecraft and receive images and data back from the robot," said Badri Younes, deputy associate administrator for space communications and navigation at NASA Headquarters in Washington. "The experimental DTN we've tested from the space station may one day be used by humans on a spacecraft in orbit around Mars to operate robots on the surface, or from Earth using orbiting satellites as relay stations."

The DTN architecture is a new communications technology that enables standardized communications similar to the Internet to function over long distances and through time delays associated with on-orbit or deep space spacecraft or robotic systems. The core of the DTN suite is the Bundle Protocol (BP), which is roughly equivalent to the Internet Protocol (IP) that serves as the core of the Internet on Earth. While IP assumes a continuous end-to-end data path exists between the user and a remote space system, DTN accounts for disconnections and errors. In DTN, data move through the network "hop-by-hop." While waiting for the next link to become connected, bundles are temporarily stored and then forwarded to the next node when the link becomes available.

NASA's work on DTN is part of the agency's Space Communication and Navigation (SCaN) Program. SCaN coordinates multiple space communications networks and network support functions to regulate, maintain and grow NASA's space communications and navigation capabilities in support of the agency's space missions.

The space station also serves as a platform for research focused on human health and exploration, technology testing for enabling future exploration, research in basic life and physical sciences and Earth and space science.

Press Briefing | The White House

Press Briefing | The White House

Weekly Address: Extending Middle Class Tax Cuts to Grow the Economy | The White House

Weekly Address: Extending Middle Class Tax Cuts to Grow the Economy | The White House

U.S. Department of Defense Armed with Science Update: Army's Real UFO

U.S. Department of Defense Armed with Science Update

ENVIRONMENTAL LABORATORY OPERATOR CHARGED WITH FALSIFIYING RECORDS AND OBSTRUCTION

FROM: U.S. JUSTICE DEPARTMENT
Friday, November 9, 2012
Mississippi Laboratory Operator Charged with Falsifying Records on Industrial Wastewater
An owner and sole operator of an environmental laboratory has been charged in U.S. District Court for the Southern District of Mississippi with falsification of records and obstructing a federal criminal investigation, announced U.S. Attorney for the Southern District of Mississippi Gregory K. Davis and Assistant Attorney General Ignacia S. Moreno of the Justice Department’s Environment and Natural Resources Division.

Tennie White, owner, operator and manager of Mississippi Environmental Analytical Laboratories Inc. was charged in a three-count felony indictment with two false statements counts and one count of obstructing proceedings.

According to the indictment, White was hired to perform laboratory testing of a manufacturer’s industrial process waste water samples and then to use those results to complete monthly discharge monitoring reports for submission to the Mississippi Department of Environmental Quality (MDEQ). The indictment alleges that from February to August 2009 White created three discharge monitoring reports (DMRs) that falsely represented that laboratory testing had been performed on samples when, in fact, such testing had not been done. The indictment further alleges that White created a fictitious laboratory report and presented it to her client for use in preparing another DMR.

The indictment further alleges that White made false statements to a federal agent during a subsequent criminal investigation.

An indictment is not a finding of guilt, and a defendant is presumed innocent unless and until proven guilty in a court of law.

The false statements charges carry a maximum sentence of five years in prison and a $250,000 fine per count. The obstructing proceedings charge carries a maximum sentence of 20 years in prison and a $250,000 fine.

This case is being prosecuted by Trial Attorney Richard J. Powers of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, and Assistant U.S. Attorney Gaine Cleveland of the U.S. Attorney’s Office for the Southern District of Mississippi.

TWO PAKISTANI NATIONALS INDICTED FOR ROLES IN ILLEGALLY SHIPPING PHARMACEUTICALS INTO THE U.S.

Credit:  FDA

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, November 7, 2012

Two Pakistani Nationals Indicted for Conspiring to Illegally Ship Pharmaceuticals into the US

Defendants Allegedly Shipped More Than $780,000 of Drugs into U.S.
Two Pakistani nationals have been indicted by a federal grand jury in the District of Columbia on charges alleging that they operated Internet sites that illegally shipped pharmaceuticals from Pakistan and the United Kingdom to customers in the United States.

Sheikh Waseem Ul Haq, 39, and Tahir Saeed, 50, are accused of operating Internet sites that, since late 2005, illegally shipped $2 million of pharmaceuticals from Pakistan and the United Kingdom to customers worldwide, including nearly $780,000 in sales to U.S. purchasers.

According to the indictment, the defendants and others owned, operated and conducted business as Waseem Enterprises and Harry’s Enterprises, wholesale pharmaceutical companies that were located in Pakistan. The businesses were used to unlawfully distribute a wide variety of controlled substances and prescription drugs through Internet sites. The defendants and others also advertised their companies on Internet sites to generate business.

Ul Haq and Saeed directed U.S. customers to submit payments via Western Union to numerous individuals in Karachi, Pakistan, in order to conceal the fact that the funds were going to Ul Haq and Saeed. As alleged in the indictment, the defendants admitted in e-mails that they paid bribes to Pakistani customs officials to facilitate shipment of the drugs out of Pakistan, and warned that U.S. customers bore the risk of interception by U.S. customs officials. The indictment alleges that the defendants packaged the drug shipments in ways which reduced the likelihood of interdiction by customs inspectors and told customers that, despite the packaging, some of the shipments might not get through.

The drugs shipped into the United States included methylphenidate (sold as Ritalin); various anabolic steroids; alprazolam (sold as Xanax); diazepam (sold as Valium), lorazepam (sold as Ativan), clonazepam (sold as Klonapin) and other controlled and non-controlled substances.

The indictment, which was returned on Nov. 6, 2012, was announced today by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Acting Assistant Attorney General Stuart F. Delery of the Department of Justice’s Civil Division; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; Robert Brisolari, Acting Special Agent in Charge of the Washington Division Office of the Drug Enforcement Administration; Gary R. Barksdale, Inspector in Charge, Washington Division, U.S. Postal Inspection Service, and Antoinette V. Henry, Special Agent in Charge of the Metro Washington Field Office of the U.S. Food & Drug Administration’s Office of Criminal Investigations.

The indictment was returned following a presentation of evidence by the U.S. Attorney’s Office for the District of Columbia, working in conjunction with the Department of Justice’s Consumer Protection Branch. It charges the defendants with conspiracy to import controlled substance pharmaceuticals into the United States; conspiracy to distribute controlled substance pharmaceuticals; conspiracy to introduce misbranded pharmaceuticals into interstate commerce; importation and distribution of controlled substance pharmaceuticals; introduction into interstate commerce of misbranded drugs, and conspiracy to commit international money laundering. It also includes a forfeiture allegation seeking all proceeds that can be traced to the scheme.

If convicted, the defendants face up to 20 years in prison for each of the two counts involving the conspiracy to import and distribute controlled substances, as well as up to 20 years for the conspiracy to commit international money laundering. They face a maximum penalty of five years for conspiracy to introduce misbranded pharmaceuticals into interstate commerce, and additional time if convicted of the other charges.

In early October 2012, a law enforcement task force investigating the case learned that the defendants would be traveling from Pakistan to northern Europe. With coordination from the U.S. Department of Justice’s Office of International Affairs, U.S. authorities lodged provisional arrest warrants for the defendants first in Germany and then in the United Kingdom.

With the assistance of Interpol and law enforcement agents in Germany and the United Kingdom, the defendants were tracked from Germany to London, where they were arrested by the London Metropolitan Police Service Fugitive Squad at a hotel near Heathrow Airport on Oct. 19, 2012. They were presented to Westminster Magistrate’s Court in London and ordered held pending extradition to the United States.

"This indictment alleges an international conspiracy to sell anabolic steroids, anti-anxiety medications, and other prescription drugs over the Internet to American consumers without any doctor involved," said U.S. Attorney Machen. "These Pakistani nationals are alleged to have engaged in a scheme to ship unregulated pharmaceuticals to American consumers in exchange for money wired to their cohorts in Pakistan. The controlled substances were packaged to conceal the illegal shipments from being discovered by customs officials. Our Office, along with our law enforcement colleagues, will continue to aggressively investigate and prosecute those who are intent on shipping unregulated and potentially dangerous drugs into the United States."

"This prosecution aims to curb the flow of dangerous drugs into the hands of United States citizens," said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. "The drugs allegedly sold by the defendants were not approved for distribution into the United States, were not dispensed by U.S. licensed pharmacies, and were not prescribed by any physician. Along with the FBI, FDA and our other law enforcement partners, we will continue to protect our citizens from unsafe and potentially harmful drugs."

"This complex investigation and subsequent arrests disrupted an international black market for potentially dangerous drugs entering the United States," said Assistant Director in Charge McJunkin. "This indictment is the direct result of the hard work of FBI Agents in partnership with the Drug Enforcement Administration, U.S. Postal Inspection Service, U.S. Food & Drug Administration’s Office of Criminal Investigations and the London Metropolitan Police Service as well as the prosecutors working on this case."

"This indictment shows the commitment of the U.S. Postal Inspection Service to keep its customers safe from potentially harmful products," said Inspector in Charge Barksdale. "We would also like to thank our federal partners in our continued effort to rid the U.S. Mail of illegal pharmaceuticals."

"The FDA Office of Criminal Investigations is committed to working with our international and domestic law enforcement partners in aggressively pursuing unscrupulous individuals who seek to sell adulterated and misbranded pharmaceuticals to U.S. citizens via the Internet," said Special Agent in Charge Henry.

An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.

This investigation was sponsored and supported by the Department of Justice’s Organized Crime Drug Enforcement Task Force. The case was investigated by the FBI’s Washington Field Office; the Drug Enforcement Administration; the U.S. Postal Inspection Service, and the FDA’s Office of Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney John P. Dominguez and Linda I. Marks, Senior Litigation Counsel for the Department of Justice’s Consumer Protection Branch, who coordinated the investigation and presented the evidence to the grand jury.