U.S. EXPORT-IMPORT BANK PROVIDES $37.5 MILLION DIRECT LOAN TO SUPPORT EXPORTS FOR ENERGY PROJECT

Map:  Trinadad And Tobago.   Credit:  CIA World Factbook

FROM: U.S. EXPORT-IMOPORT BANK

WASHINGTON, D.C., November 20, 2012 – The Export-Import Bank of the United States (Ex-Im Bank) announced today its approval of a $37.5 million direct loan to support exports by McDermott International Inc. and five American suppliers of natural gas compression equipment and technology for a United Kingdom energy project off the coast of Trinidad and Tobago.

The Bank’s financing will support approximately 350 jobs in Texas, California, and Louisiana, according to bank estimates derived from Departments of Commerce and Labor data and methodology.

"I’m pleased that McDermott International Inc. and its suppliers won this project and will support so many American jobs," said Ex-Im Bank Chairman and President Fred P. Hochberg. "In a complex gas production project like this, U.S. engineers and high-tech manufacturers have a lot to offer. The Bank’s financing helped pull these jobs to U.S. companies, instead of seeing them go to foreign competitors."

Under terms of the direct loan, Ex-Im Bank is supporting exports of U.S.-only goods and services to a $150 million project to construct and install a gas compression system on the existing Hibiscus Platform situated off the northern coast of Trinidad. The borrower is BG Energy Holding Limited, and the buyer is BG Trinidad and Tobago (BGTT), which is responsible for 46 percent of the larger project.

McDermott International Inc. was hired to provide the detail engineering, equipment procurement, unit fabrication, transportation, heavy lift and installation. The company is responsible also for start-up and commissioning. Houston-based McDermott International Inc. is an engineering, procurement, construction, and installation (EPCI) company that executes complex offshore oil and gas projects worldwide.

Five U.S. suppliers will manufacture or provide components for the project. SOLAR Turbines Inc., based in San Diego, California, is a Caterpillar Inc. subsidiary that produces gas turbine-powered compressor sets and pipeline equipment to transmit natural gas. Another U.S. manufacturer, Hudson Products Corporation of Sugarland, Texas, will export air-cooled heat exchanger equipment for the Trinidad project. The export supplier of valve controllers will be AWC Inc. (formerly American Warrior Compression) of Houston, Texas. Massive fabricated metal tanks and gas-scrubbers will be supplied by a small business, the South Houston-based manufacturer Gulfex Inc. The Louisiana exporter involved is Point Eight Power of Belle Chasse, a specialty provider of electrical power systems for offshore operations; Point Eight will supply instrumentation and switchgear.

Location Trinadad And Tobago.  Credit:  CIA World Factbook

ABOUT EX-IM BANK:

Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years (from Fiscal Year 2008), Ex-Im Bank has earned for U.S. taxpayers nearly $1.6 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.

Ex-Im Bank approved $35.8 billion in total authorizations in FY 2012 – an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales – also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $50 billion in U.S. export sales and approximately 255,000 American jobs in communities across the country. For more information, visit www.exim.gov.

ADDITIONAL INFORMATION ON TRINADAD AND TOBAGGO FROM CIA WORLD FACTBOOK

First colonized by the Spanish, the islands came under British control in the early 19th century. The islands' sugar industry was hurt by the emancipation of the slaves in 1834. Manpower was replaced with the importation of contract laborers from India between 1845 and 1917, which boosted sugar production as well as the cocoa industry. The discovery of oil on Trinidad in 1910 added another important export. Independence was attained in 1962. The country is one of the most prosperous in the Caribbean thanks largely to petroleum and natural gas production and processing. Tourism, mostly in Tobago, is targeted for expansion and is growing. The government is coping with a rise in violent crime.

U.S. OFFICIAL'S REMARKS FOLLOWING MEETING WITH GEORGIA PRIME MINISTER IVANISHVILI

Philip H. Gordon, Assistant Secretary, Bureau Of European And Eurasian Affairs

FROM: U.S. STATE DEPARTMENT

Press Availability Following Meeting with Prime Minister Ivanishvili

Remarks
Philip H. Gordon
Assistant Secretary, Bureau of European and Eurasian Affairs
Tbilisi, Georgia
November 16, 2012

Assistant Secretary Gordon: We had an excellent and comprehensive meeting, and I started by congratulating the Prime Minister on his election victory, on the majority that his party won on behalf of the United States and Secretary Clinton.

I noted how impressed we are with Georgia’s democratic development. Showing that you could have a free and fair and transparent election and a democratic and peaceful transfer of power is a huge step for this country and in some ways a model for the region and beyond, and I made it a point to underscore how supportive we are of that process.

The Prime Minister stressed Georgia’s interest and his interest in continued good relations with the United States, which is certainly a priority that we share, and I was able to stress to him how committed the United States is and will remain in terms of our support for Georgia, for its sovereignty and territorial integrity, for its economic development, which is really truly impressive, and for the democratic transition that is ongoing.

I also stressed how important it is and will continue to be for the two sides to work together. We know it’s not easy after a bitter election campaign -- we just had an election campaign in the United States as well, you may have noticed -- it’s not always easy to work with your political opponents, but it’s essential for a democracy to thrive.

In that context I stressed, we talked about the issue of arrest and detention, which I know is a lot in the media today, and I stressed how critically important it is for the process to be absolutely transparent, with due process. Everybody wants to see the rule of law implemented, and anybody who has committed a crime to be held accountable, but at the same time it’s essential to avoid any perception or reality of selective prosecutions and that was a point that I stressed, and I think it’s important for Georgia’s reputation in the world and its path towards the Euro-Atlantic institutions that we again strongly support.

Finally let me note how much I expressed appreciation for Georgia’s contribution in Afghanistan. I know that it required great sacrifices from this country and its troops, but it’s something that the United States is deeply grateful for in the name of our common interest and our friendship.

That’s the essence of our meeting and I’d be happy to take a couple of questions.

Question: How can you imagine a cohabitation between Saakashvili and [inaudible] detentions and parliamentary minority claims that this is political?

Assistant Secretary Gordon: Indeed, and that’s what we’re watching very closely.

First I would note there have been some positive signs. The simple fact of President Saakashvili acknowledging the results of the election, accepting that the voters had spoken and the other side won, and supporting that peaceful, democratic transition is already a positive step and we welcome the magnanimous way in which he recognized the election results.

We’ve also seen some positive signs from Prime Minister Ivanishvili I believe as recently as yesterday saying that he plans to work with President Saakashvili, respects that the constitution leaves the President in place, and at least for now you have a Prime Minister and a government and a President of different political orientations -- already those are positive steps.

But at the same time, naturally there are tensions -- that’s inevitable after a hard-fought political campaign. We’re just stressing to both sides how important it is not to let those tensions stand in the way of rule of law, constitutional authority and due process.

In our favor, if you will, is the fact that I think both sides have Georgia’s interests at heart and they both know that it’s not in their interest either as parties or individuals or as a country to let this turn into a real fight, an act of political retributions and accusations, and that’s what I would appeal to both sides to keep that in mind: the world is watching, the international community is watching; the United States certainly feels that if Georgia continues on the path of being a stable, prosperous country integrated into the West, it needs to allow this peaceful democratic transition to move forward.

Question: Mr. Gordon, your European colleagues made quite strong statements about the arrests in Georgia. Does the United States share these concerns you have talked a lot about? [Inaudible] strong statements. Also how would you see the balance in foreign policy between relations of Georgia with United States and Russia?

Assistant Secretary Gordon: First, I think I was pretty clear myself and I was clear with the Prime Minister that once again, nobody wants to see an absence of rule of law and if people are guilty of crimes, those crimes should be investigated and people should be held accountable, and I haven’t found anyone I’ve met with in Georgia, so far -- and I’ve met with people from both sides -- that disagrees with that.

But I was equally clear that, in that context, it is absolutely critical to be scrupulous in both the reality and the perception of how this process is working. If it looks like, or it is, designed solely to go after political adversaries, or it’s not done in a transparent way, then the whole country would pay a price, and so that was my message to the Prime Minister. Everyone wants to see criminals prosecuted but it needs to be done in a way that fully acknowledges the needs of due process and transparency and that’s what we hope to see in Georgia moving forward.

In terms of relations with the United States, as I mentioned, we’ve been encouraged by the first indications coming out of the new government. Where that is concerned, the Prime Minister was certainly clear with me that he wants to see the United States-Georgia relationship remain very strong, which it is. He reiterated his interest in continuing to pursue NATO membership and integration into the West and to sustaining Georgia’s free market economy, and we will look forward to welcoming him in Washington, to continue the dialogue -- our relations are strong with this government.

Question: When will be the visit?

Assistant Secretary Gordon: We’ll announce it when we have something to announce.

Question: Are you going to meet with the Georgian President?

Assistant Secretary Gordon: I do expect to meet him, yeah.

Question: Thank you very much.

Assistant Secretary Gordon: Thank you.

NEW YORK SANDY SURVIVORS RECEIVED $564 MILLION IN TOTAL INDIVIDUAL ASSISTANCE GRANTS



Photo:  Hurricane Sandy.  Credit:  NOAA

FROM: U.S. FEDERAL EMERGENCY MANAGEMENT AGENCY

NEW YORK – New York survivors of Hurricane Sandy have received $564 million in federal individual assistance grants to help them recover from damages caused by the storm.

The assistance includes $531 million in housing grants, including short-term rental assistance and home repair costs, and $33 million to cover other essential disaster-related needs, such as medical and dental expenses and lost personal possessions.

Disaster assistance grants must be used for disaster-related expenses. Shortly after receiving the funds, survivors receive a letter from the Federal Emergency Management Agency explaining how the money may be used. Survivors should keep receipts for all disaster-related expenses.

Housing Assistance funds may be used for:
Repairs to return the home to a safe and functional condition. These may include repairs to windows, doors, water and ventilation systems or other structural parts of a home.
Rebuilding a home that has been destroyed.
Reimbursement for hotel or motel lodging expenses directly related to the disaster while the survivor’s home is being repaired. Those who must remain in temporary housing for an extended period may request more assistance until their home can be reoccupied or other permanent housing arrangements can be made.
Other Needs Assistance funds may be used for:
Medical, dental and funeral expenses.
Repair or replacement of damaged personal property, specialized tools for employment, household items, furniture and appliances.
Reimbursement for moving expenses and transportation costs (vehicle repair).
Other approved disaster-related expenses.
Survivors with questions about use of FEMA grants may call the FEMA Helpline at 800-621-3362.

INTERNATIONAL SPACE STATION NEWS FOR NOVEMBER 19, 2012

FROM:  NASA

President Obama and Prime Minister Shinawatra Deliver Remarks | The White House

President Obama and Prime Minister Shinawatra Deliver Remarks | The White House

President Obama and Aung San Suu Kyi Deliver Remarks | The White House

President Obama and Aung San Suu Kyi Deliver Remarks | The White House

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY, USS DWIGHT D. EISENHOWER
121116-N-NB538-195 U.S. 5th FLEET AREA OF RESPONSIBILITY (Nov. 16, 2012) A plane director gives an all-clear signal on the flight deck of Nimitz-class aircraft carrier USS Dwight D. Eisenhower (CVN 69). Dwight D. Eisenhower is deployed to the U.S. 5th Fleet area of responsibility conducting maritime security operations, theater security cooperation efforts and support missions as part of Operation Enduring Freedom. (U.S. Navy photo by Mass Communication Specialist Seaman Sabrina Fine/Released)

121120-N-XF988-052 TOKYO BAY (Nov. 20, 2012) The aircraft carrier USS George Washington (CVN 73) underway in Tokyo Bay on its way to Yokosuka, Japan, after completing its 2012 patrol. George Washington and embarked Carrier Air Wing (CVW) 5 provide a combat-ready force that protects and defends the collective maritime interest of the U.S. and its allies and partners in the Asia-Pacific region. (U.S. Navy photo by Mass Communication Specialist Seaman Michelle N. Rasmusson/Released)

 

THREE MONTHS AFTER HURRICANE ISAAC

Venice, La., Nov. 1, 2012 -- One of the teams assigned to collect Orphan Containers in air boats heads back to the collection site after retrieving one of the biggest containers found in the Louisiana Marshland after Hurricane Isaac. Photo by Daniel Llargues-FEMA

 
FROM: FEDERAL EMERGENCY MANAGEMENT AGENCY

BATON ROUGE, La. – Nearly three months ago, Hurricane Isaac swamped Louisiana with torrential rains, high winds and storm surge. Since then, local, state, federal and voluntary agencies, plus the private sector, have worked hand in hand with survivors to help them recover from the storm’s destruction.

Hundreds of millions of dollars in state and federal assistance have jump-started the recovery efforts of individual survivors, their families and their communities in the 55 parishes designated for Individual Assistance and/or Public Assistance. And more help will arrive with the rollout of recovery programs designed to help Louisianians over the long haul.

"Louisianians have made tremendous progress in their journey toward recovery from Hurricane Isaac," said Federal Coordinating Officer Gerard M. Stolar of the Federal Emergency Management Agency (FEMA). "The efforts of the survivors themselves, combined with those of the whole recovery community, have made all the difference in Louisiana."

Even before Hurricane Isaac made its first landfall on Aug. 28 before wobbling back out to sea, then hitting the coast again, emergency workers at all levels of government, law enforcement and voluntary agencies mobilized to prepare for the storm’s onslaught. On Aug. 27, President Obama issued an emergency disaster declaration authorizing FEMA to provide assistance for emergency protective measures to alleviate the hurricane’s impact on life and property. The major disaster declaration came just two days later.

Although weaker than Hurricane Katrina, Hurricane Isaac moved inland much more slowly, causing devastating flooding, some of it in areas largely unscathed by the 2005 storm. Along with the seasoned storm veterans of the coastal parishes and New Orleans, survivors unaccustomed to major storms found themselves needing help.

For many, assistance came almost immediately. Just a week after the Aug. 29 disaster declaration for Hurricane Isaac in Louisiana, more than $10 million in state and federal disaster assistance had already headed to survivors. Within 16 days, that total had soared to $100 million.

Today, disaster assistance has topped $365 million. This includes more than $116 million in grants from FEMA’s Individual Assistance (IA) program, more than $135 million in low-interest disaster loans from the U.S. Small Business Administration (SBA), and more than $113 million in reimbursements to the state and local governments from FEMA’s Public Assistance (PA) program. Separately, the FEMA-administered National Flood Insurance Program has paid more than $370 million on claims from policyholders in Louisiana.

Beyond the funds disbursed to individuals, families, businesses and communities, federal programs have helped survivors stay temporarily in hotels when their homes were unlivable; funded crisis counseling for Louisianians suffering from the emotional effects of the storm and its aftermath; helped connect survivors to other agencies’ assistance programs to ensure that they would get the help they needed; and reimbursed municipalities for emergency protective measures taken to preserve lives and property, restoring hurricane-damaged infrastructure and removing debris from parish rights-of-way and private property.

Within hours of the Aug. 29 declaration, the first Community Relations specialists began their work of providing crucial recovery information to storm survivors. Over the following weeks, hundreds of Community Relations specialists visited parishes designated for Individual Assistance, answering survivors’ questions in neighborhoods, at Disaster Recovery Centers, and at points of distribution and shelters.

Forty recovery centers served survivors throughout Louisiana, and two centers remain open in hard-hit parishes so residents can meet face to face with specialists who can help them register and answer their questions about state and federal assistance. Mitigation and National Flood Insurance Program specialists joined the staff at the centers, greatly expanding the information available to survivors.

Mitigation outreach specialists also met with more than 24,500 Louisianians in several settings, including the disaster recovery centers, home improvement stores, fairs and festivals, providing advice and tips on rebuilding stronger homes. Two strike teams in Jefferson, Plaquemines and St. Bernard parishes visited residents, some accessible only by boat, to offer advice and mold cleanup kits.

As Louisianians continue to recover from Hurricane Isaac, they may have some needs that go beyond the scope of assistance the state or FEMA can provide. That’s when community-based long-term recovery groups can help.

With support and guidance from FEMA and the state, long-term recovery groups are already working in 15 hard-hit parishes. Formed from a network of nonprofit and voluntary agencies and faith- and community-based organizations, these recovery groups are working with survivors to determine their longer-term needs and connect them to assistance.

Staff and volunteers from some groups have helped clear debris at damaged homes, while others are recruiting volunteers and staff. Some groups have programs to help survivors pay utility bills or obtain necessities such as clothing and furniture.

On a community scale, the state of Louisiana, along with FEMA, has activated the new National Disaster Recovery Framework for the first time. Like initial response efforts, extended recovery requires a united effort beginning at the local level, plus the private sector and individuals — the whole community — and the framework aims to help make that happen.

Already, framework coordinators have held the first public meetings in two parishes to identify local recovery priorities, with more public sessions expected in the coming weeks, said Wayne Rickard, who was appointed the federal disaster recovery coordinator for Louisiana’s Hurricane Isaac recovery effort. After this stage, agencies at the state and federal levels will pool their resources and information to help communities and parishes find alternative pathways to secure technical assistance and funding.

Meanwhile, our Public Assistance mission continues to gain momentum and meet the challenges in Louisiana’s hard-hit coastal parishes. We are coordinating with our state and local partners, and reaching out to the federal family as well as FEMA Headquarters and Region VI leadership to find viable solutions to the more complex issues that stand in the way of full community recovery.

Because we extended the Individual Assistance registration deadline, Hurricane Isaac survivors have until Nov. 29 to register with FEMA for potential assistance. Louisianians can register for assistance or check the status of their cases online at www.disasterassistance.gov, via smartphone at m.fema.gov, or by calling 1-800-621-FEMA (3362) or TTY 1-800-462-7585. Those who use 711 Relay or Video Relay Services may call 1-800-621-3362. FEMA phone lines operate from 7 a.m. to 10 p.m. seven days a week; multilingual operators are available.

REMARKS BEFORE MEETING: ISRAELI PRIME MINISTER NETANYAHU AND U.S. SECRETARY OF STATE CLINTON

FROM:  U.S. STATE DEPARTMENT
Remarks With Israeli Prime Minister Benjamin Netanyahu Before Their Meeting

Remarks
Hillary Rodham Clinton
Secretary of State
Prime Minister's Office
Jerusalem
November 20, 2012

PRIME MINISTER NETANYAHU: I want to welcome Secretary Clinton once again to Jerusalem. I want to thank President Obama, you, and the American Government and people for their strong support for Israel in this hour of need. I want to also thank you especially for your support of Iron Dome that’s been saving lives, and we are in a battle to save lives.

One of the things that we’re doing is trying to resist and counter a terrorist barrage which is aimed directly at our civilians, and doing so by minimizing civilian casualties, whereas the terrorist enemies of Israel are doing everything in their power to maximize the number of civilian casualties. Obviously, no country can tolerate a wanton attack on its civilians.

Now, if there is a possibility of achieving a long-term solution to this problem through diplomatic means, we prefer that. But if not, I am sure you understand that Israel will have to take whatever action is necessary to defend its people. This is something that I don’t have to explain to Americans. I know that President Obama, you, and the American people understand that perfectly well.

And I thank you once again for your support. Welcome to Jerusalem.

SECRETARY CLINTON: Thank you very much, Prime Minister. I look forward to a productive discussion this evening at such a critical moment for Israel and the region. President Obama asked me to come to Israel with a very clear message: America’s commitment to Israel’s security is rock solid and unwavering. That is why we believe it is essential to de-escalate the situation in Gaza.

The rocket attacks from terrorist organizations inside Gaza on Israeli cities and towns must end and a broader calm restored. The goal must be a durable outcome that promotes regional stability and advances the security and legitimate aspirations of Israelis and Palestinians alike.

President Obama has emphasized these same points in his multiple conversations with President Morsi of Egypt, and we appreciate President Morsi’s personal leadership and Egypt’s efforts thus far. As a regional leader and neighbor, Egypt has the opportunity and responsibility to continue playing a crucial and constructive role in this process. I will carry this message to Cairo tomorrow. I will also be consulting with President Abbas in Ramallah.

Let me also say, to echo the Prime Minister, I am very pleased that the Iron Dome defense system is performing so well. Our partnership in support of this system represents America’s enduring commitment to the safety and security of the Israeli people and to Israel’s right to defend itself.

But no defense is perfect and our hearts break for the loss of every civilian – Israeli and Palestinian – and for all those who have been wounded or who are living in fear and danger. I know today was a difficult day, and I offer my deepest condolences to the loved ones of those who were lost and injured. In the end, there is no substitute for security and for a just and lasting peace, and the current crisis certainly focuses us on the urgency of this broader goal.

So in the days ahead, the United States will work with our partners here in Israel and across the region toward an outcome that bolsters security for the people of Israel, improves conditions for the people of Gaza, and moves toward a comprehensive peace for all people of the region. And I thank you, Prime Minister, for your hospitality and look forward to our discussion.

PRIME MINISTER NETANYAHU: Thank you.

NEWS FROM AFGHANISTAN FOR NOVEMBER 20, 2012

Afghanistan.  Credit:  U.S. Army Photo.

FROM: U.S. DEPARTMENT OF DEFENSE 

Combined Force Arrests Taliban Weapons Facilitator
From an International Security Assistance Force Joint Command News Release

KABUL, Afghanistan, Nov. 20, 2012 - An Afghan and coalition security force arrested a Taliban weapons facilitator in Afghanistan's Kandahar province today, military officials reported.

The arrested facilitator is alleged to have supplied weapons, ammunition and improvised explosive devices to insurgents throughout Kandahar province, officials said.

The security force also seized an assault rifle and assorted ammunition during the operation.

In other Afghanistan operations today:
-- A combined force arrested a Haqqani senior leader in Khost province. The arrested leader is believed to have facilitated the movement of insurgents and directed IED emplacements for attacks on Afghan and coalition forces. The security force also detained one other suspected insurgent.

-- In Logar province, a combined force arrested a Haqqani leader and weapons facilitator. The arrested leader is alleged to have organized the acquisition and transfer of weapons to insurgents for attacks against Afghan and coalition forces throughout the province.

In operations yesterday:
-- A combined force killed a number of heavily-armed insurgents in Ghazni province. The security force observed the armed insurgents firing several heavy weapons toward the Khugyani District Center. The security force engaged the insurgents, killing them.

-- A combined force killed an insurgent in Nangarhar province.

And on Nov. 18, combined forces in Helmand province arrested a Taliban IED facilitator and seized 20 pounds of illegal narcotics. The arrested facilitator is believed responsible for the storage and shipment of homemade explosives and IED-making materials from across the Afghan border into central Helmand.

IRANIAN CITIZEN CHARGED WITH TRYING TO SMUGGLE MILITARY ANTENNAS TO SINGAPORE AND HONG KONG

Map:  Singapore.  Credit:  CIA World Factbook.

FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, November 20, 2012

Iranian National and His Company Charged in Plot Involving Export of Military Antennas from the United States

Amin Ravan, a citizen of Iran, and his Iran-based company, IC Market Iran (IMI), have been charged in an indictment unsealed today with conspiracy to defraud the United States, smuggling, and violating the Arms Export Control Act (AECA) in connection with the unlawful export of 55 military antennas from the United States to Singapore and Hong Kong.

The indictment was announced by Lisa Monaco, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John Morton, Director of the Department of Homeland Security’s U.S. Immigration and Customs Enforcement (ICE); Stephanie Douglas, Executive Assistant Director of the FBI’s National Security Branch; and Eric L. Hirschhorn, Under Secretary for Industry and Security at the Commerce Department.

According to the indictment, which was returned under seal by a grand jury in the District of Columbia on Nov. 16, 2011, Ravan was based in Iran and, at various times, acted as an agent of IMI in Iran and an agent of Corezing International, Pte, Ltd, a company based in Singapore that also maintained offices in Hong Kong and China.

On Oct. 10, 2012, Ravan was arrested by authorities in Malaysia in connection with a U.S. provisional arrest warrant. The United States is seeking to extradite him from Malaysia to stand trial in the District of Columbia. If convicted of the charges against him, Ravan faces a potential 20 years in prison for the AECA violation, 10 years in prison for the smuggling charge and five years in prison for the conspiracy charge.

According to the indictment, in late 2006 and early 2007, Ravan attempted to procure for shipment to Iran export-controlled antennas made by a company in Massachusetts, through an intermediary in Iran. The antennas sought by Ravan were cavity-backed spiral antennas suitable for airborne or shipboard direction finding systems or radar warning receiver applications, as well as biconical antennas that are suitable for airborne and shipboard environments, including in several military aircraft.

After this first attempt was unsuccessful, Ravan joined with two co-conspirators at Corezing in Singapore so that Corezing would contact the Massachusetts company and obtain the antennas on behalf of Ravan for shipment to Iran. When Corezing was unable to purchase the export-controlled antennas from the Massachusetts firm, Corezing then contacted another individual in the United States who was ultimately able to obtain these items from the Massachusetts firm by slightly altering the frequency range of the antennas to avoid detection by the company’s export compliance officer.

In March 2007, Ravan and the co-conspirators at Corezing agreed on a purchase price of $86,750 for 50 cavity-backed antennas from the United States and discussed structuring payment from Ravan to his Corezing co-conspirators in a manner that would avoid transactional delays caused by the Iran embargo. Ultimately, between July and September 2007, a total of 50 cavity-backed spiral antennas and five biconical antennas were exported from the United States to Corezing in Singapore and Hong Kong.

According to the indictment, no party to these transactions -- including Ravan or IMI -- ever applied for or received a license from the State Department’s Directorate of Defense Trade Controls to export any of these antennas from the United States to Singapore or Hong Kong.

Two of Ravan’s co-conspirators, Lim Kow Seng (aka Eric Lim) and Hia Soo Gan Benson (aka Benson Hia), principals of Corezing, have been charged in a separate indictment in the District of Columbia in connection with this particular transaction involving the export of military antennas to Singapore and Hong Kong. The two Corezing principals were arrested in Singapore last year and the United States is seeking their extradition.

This investigation was jointly conducted by ICE agents in Boston and Los Angeles; FBI agents and analysts in Minneapolis; and Department of Commerce, Office of Export Enforcement agents and analysts in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the State Department’s Directorate of Defense Trade Controls, and U.S. Department of Justice, Office of International Affairs.

The prosecution is being handled by Assistant U.S. Attorney Anthony Asuncion of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Richard S. Scott of the Counterespionage Section of the Justice Department’s National Security Division.

An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.

140 Characters, 100 Different Ways

140 Characters, 100 Different Ways

U.S. SUES KBR AND KUWAITI SUBCONTRACTOR FOR FALSE CLAIMS ON CONTRACTS IN IRAQ

FROM: U.S. DEPARTMENT OF JUSTICE

Monday, November 19, 2012
United States Sues Houston-based KBR and Kuwaiti Subcontractor for False Claims on Contracts to House American Troops in Iraq

The government’s complaint arises from the Bed Down Mission, a push to replace the tents used to house soldiers during the early days of the war with trailers, also called living containers. KBR performed many of the services required under LOGCAP III, including the Bed Down Mission, through foreign and domestic subcontractors. According to the complaint, KBR awarded a subcontract to First Kuwaiti on Oct. 16, 2003, to supply, transport and install 2,252 living containers at Camp Anaconda in Iraq for about $80 million. The government alleges that First Kuwaiti was required to complete delivery and installation of the trailers at Camp Anaconda by Dec. 15, 2003. The government further alleges that in July 2004, First Kuwaiti presented two claims to KBR contending that government-caused delays in providing military escorts for convoys into Iraq entitled the company to an increase in the contract price to cover its increased costs. According to the complaint, KBR agreed to pay First Kuwaiti an additional $48.8 million and passed that cost on to the United States.

The government’s complaint alleges that First Kuwaiti knowingly inflated its crane and truck costs, among other items, and misrepresented the cause of its delays. The complaint further alleges that KBR charged these costs to the United States knowing they were improper.

"We depend on companies like KBR to provide valuable noncombat services to our military such as housing and feeding our troops," said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. "We will en sure that contractors live up to their promises, and are not permitted to profit at the expense of the taxpayers at home who are supporting our men and women in uniform."

"When dealing with the government, just like dealing with anyone else, it’s important to give an honest account," said Jim Lewis, U.S. Attorney for the Central District of Illinois. "The facts alleged in the complaint indicate that KBR and First Kuwaiti did not provide an honest accounting."

The United States is suing KBR and First Kuwaiti under the False Claims Act. The act holds persons responsible for presenting, or causing to be presented, claims for gov ernment money or property they know are false. The statute entitles the government to recover three times its damages, plus a $5,500 to $11,000 civil penalty for each false claim.

The United States is also suing KBR under the antifraud section of the Contract Disputes Act and for breach of contract. The Contract Disputes Act establishes liability for contractors who certify that they are entitled to money under a contract, if any part of their claim is unsupported due to a misrepresentation of fact or fraud. Under the Contract Disputes Act, the government may recover the false and unsupported part of the claim, plus its costs of review.

This matter was investigated by the Commercial Litigation Branch of the Justice Department’s Civil Division; the U.S. Attorney’s Office for the Central District of Illinois; and the Defense Contract Audit Agency, the Defense Criminal Investigative Service, and the Defense Contract Management Agency of the Department of Defense. The claims asserted against KBR and First Kuwaiti in the United States’ complaint are allegations only and there has been no determination of liability.

The lawsuit was filed in the Central District of Illinois and is captioned United States v. Kellogg, Brown & Root Services, Inc., et al.

The United States has filed a civil complaint against Kellogg, Brown & Root Services Inc. (KBR) and First Kuwaiti Trading Company for submitting inflated claims for the delivery and installation of trailers to house troops in Iraq, the Justice Department announced today. KBR is headquartered in Houston. First Kuwaiti, a KBR subcontractor, is based in Kuwait.

KBR is the Army’s primary contractor for logistical support in Iraq. On Dec. 14, 2001, t he Army awarded KBR the LOGCAP III contract, the third generation of contracts under the Army’s Logistics Civil Augmentation Program (LOGCAP) since the program’s inception in the 1980s. LOGCAP III required KBR to provide logistical support in the military theater whenever and wherever it was needed. Support included services such as transportation, dining services, facilities management, maintenance and living accommodations for United States and coalition forces. LOGCAP III was originally awarded to Brown and Root Services, a division of KBR. The United States has paid KBR tens of billions of dollars for logistical support services since awarding the contract.

SEC CHARGES NEW YORK-BASED MAN WHO ALLEGEDLY SPENT INVESTOR FUNDS ON DRUGS AND GAMBLING

Credi:  CIA World Factbook

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission today charged a purported investment adviser in New York with defrauding investors who he convinced to invest in his start-up businesses while in reality he was spending their money on illegal drugs and gambling.

The SEC alleges that Stephen A. Colangelo, Jr. repeatedly misled investors while raising $3 million in investments for four start-up companies that he created. He also persuaded three other investors to let him act as their investment adviser, and they gave him more than $1 million to invest in the markets on their behalf. Colangelo boasted a phony professional and educational background and hid his past criminal activities from potential investors, and he falsely claimed to have historically achieved extremely high returns buying and selling securities. Meanwhile, Colangelo siphoned off at least $1 million in investor funds to pay such unauthorized personal expenses as his federal income taxes, illegal narcotics, gambling, cigars, and travel for him and his family.

In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Colangelo.

According to the SEC’s complaint filed in the U.S. District Court for the Southern District of New York, Colangelo’s fraudulent scheme began in 2009 when he induced investors to invest more than $750,000 in the Brickell Fund LLC, a pooled investment vehicle that he created, advised, and controlled. In March 2009 when the Brickell Fund did not have any investors and Colangelo was not buying and selling securities on behalf of the fund, he sent numerous e-mails to potential investors boasting phony information. For instance, one e-mail claimed, "BEST TRADING DAY OF MY LIFE!!!!!!!. . . . Up over 400% and documented. Mind boggling to say the least." In reality, Colangelo did not make any trades that day.

The SEC alleges that after spending or losing all of the money invested in the Brickell Fund, Colangelo continued to fraudulently raise funds from investors for three other startup businesses he created — Hedge Community LLC, Start a Hedge Fund LLC, and Under the Radar SEO LLC. Some individuals provided Colangelo with funds directly to invest on their behalf. Colangelo continued to use investor funds for a variety of purposes that weren’t disclosed to investors, namely personal expenses and unrelated business expenses.

According to the SEC’s complaint, Colangelo created a profile on the LinkedIn website used for professional networking and misrepresented that he had studied finance at Nyack College from 1986 to 1989. Colangelo provided a link to his profile to potential and existing investors in one of his start-up companies. His representations to investors were false because he never attended Nyack College and has not graduated from high school.

The SEC’s complaint charges Colangelo with violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1), 206(2), and 206(4) of the Advisers Act and Rule 206(4)-8 thereunder.

The SEC’s investigation was conducted in the New York Regional Office by Senior Attorney Christina McGill and Assistant Regional Director Wendy B. Tepperman. The SEC’s litigation will be led by Senior Trial Counsel Kevin McGrath. The SEC thanks the U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation for their assistance in this matter.

U.S. SECRETARY OF STATE CLINTON HEADS TO MIDDLE EAST

FROM:  U.S. STATE DEPARTMENT

Secretary of State Hillary Rodham Clinton's Travel to the Middle East
Press Statement
Victoria Nuland
Department Spokesperson, Office of the Spokesperson
Washington, DC
November 20, 2012
Secretary Clinton will depart today on travel to Jerusalem, Ramallah, and Cairo, leaving from the East Asia Summit in Phnom Penh, Cambodia. She will meet with regional leaders, starting with our Israeli partners, to consult on the situation in Gaza.

Her visits will build on American engagement with regional leaders over the past days - including intensive engagement by President Obama with Prime Minister Netanyahu and President Morsi - to support de-escalation of violence and a durable outcome that ends the rocket attacks on Israeli cities and towns and restores a broader calm. As President Obama noted in his conversations with President Morsi, we commend Egypt's efforts to de-escalate the situation and are hopeful that these efforts will be successful.

She will emphasize the United States' interest in a peaceful outcome that protects and enhances Israel's security and regional stability; that can lead to improved conditions for the civilian residents of Gaza; and that can reopen the path to fulfill the aspirations of Palestinians and Israelis for two states living in peace and security. She will continue to express U.S. concern for the loss of civilian life on both sides.

Younger strokes

Younger strokes

U.S. SECRETARY OF STATE CLINTON AND PRESIDENT OBAMA ATTEND ASEAN LEADERS MEETING

The Throne Hall at the Royal Palace grounds in Phnom Penh. Built in 1917, the building was where the king's confidants, generals, and royal officials once carried out their duties. Today it is used for religious and royal ceremonies, and as a meeting place for guests of the king. Photo Credit: CIA World Factbook.

FROM: U.S. DEPARTMENT OF STATE, ASEAN, EAST ASIA SUMMIT, CAMBODIA

U.S. Institutional Support for ASEAN
Fact Sheet
Office of the Spokesperson
Washington, DC
November 19, 2012

On November 19 and 20, Secretary Clinton accompanied President Obama to the U.S.-ASEAN Leaders Meeting and East Asia Summit (EAS) in Phnom Penh, Cambodia. Their attendance at these events for the second consecutive year reaffirms U.S. commitment to the Association of Southeast Asian Nations (ASEAN) and to Southeast Asia as a whole. At EAS and the U.S.-ASEAN Leaders Meeting, the United States highlighted our broad engagement with the region across ASEAN’s political-security, economic, and socio-cultural pillars and introduced initiatives to deepen these ties.

EAS provided an opportunity to highlight the United States’ enduring commitment to supporting ASEAN as it becomes a driver of peace, security, prosperity, and democracy in the region. The United States has demonstrated our institutional support for ASEAN in a number of ways.
The U.S. Mission to ASEAN: In June 2010, the United States became the first non-ASEAN country to establish a dedicated Mission to ASEAN in Jakarta. Under the leadership of Ambassador David L. Carden, the United States’ first resident Ambassador to ASEAN, the Mission provides a venue for regular engagement and cooperation with ASEAN as well as the most visible symbol of our commitment to ASEAN’s success.
Support for U.S.-ASEAN Scholarship: Building on more than 60 years of supporting scholar and student exchanges between the United States and countries in the region through the Fulbright Program, recruitment for the pilot U.S.-ASEAN Fulbright initiative started this fall, with the first group of exchange scholars beginning study in early 2013. The United States also supports both U.S. and ASEAN Member States’ scholars working on issues central to the region through symposia held at American University’s ASEAN Studies Center in Washington DC. Our participation in the Brunei-U.S. English Language Enrichment Project for ASEAN reflects a commitment to help unify the diverse members of ASEAN, improve English language capacity, and advance educational and teaching opportunities in the region. This five-year, $25 million initiative is supported by the governments of Brunei and the United States with the East-West Center in Hawaii as an implementing coordinator, and the first cohort of 59 government officials and teacher-trainers traveled to Universiti Brunei Darussalam and East-West Center this fall.
Institutional Support in Disaster Management: Since mid-2011, the United States has supported a full-time, resident Advisor to the ASEAN Secretariat’s ASEAN Regional Forum (ARF) Unit and to broader Disaster Management efforts through the Secretariat and ASEAN Centre for Humanitarian Assistance and Disaster Relief (AHA Centre). The Advisor works closely with ASEAN officials and our fellow ASEAN Dialogue Partners to oversee activities such as:
The installation of a multi-hazard Disaster Monitoring and Response System in the AHA Centre. Along with Japan, the United States is providing the hardware and software AHA Centre operators need to improve response times and use relief resources more efficiently.
Building the search and rescue capacity of ASEAN Member States and creating guidelines for mobilization of assets for disaster relief across the region.
Supporting efforts to share best practices in Peacekeeping Operations.
Promoting Public-Private Dialogue Economic Partnerships: The United States has partnered with ASEAN in private-sector outreach in several areas:
Secretary Clinton opened the first-ever U.S.-ASEAN Business Forum in July in Siem Reap, which brought government and private actors from across the spectrum together to find ways to further economic engagement and integration.
The U.S. Trade and Development Agency’s first connectivity event, which brought representatives together from ASEAN governments, seven U.S. Government agencies, and several private businesses. Participants shared expertise in disaster reduction and disaster recovery, and attendees showcased technology which enables more effective disaster preparation and emergency response.
We have supported the ASEAN Single Window Steering Committee, which incorporates the views of businesses active in the region into the planning for the ASEAN Single Window project, a state-of-the-art regional electronic customs clearance information sharing system, which will help to enable the integration of the broader ASEAN economic community.
Economic Partnerships:
At the U.S.-ASEAN Leaders Meeting, the United States and ASEAN announced agreement to develop an Expanded Economic Engagement (E3) initiative. The U.S.-ASEAN E3 will provide capacity building and technical assistance to ASEAN members as they move toward high-standard trade obligations. The E3 will also prioritize the negotiation of a U.S.-ASEAN Trade Facilitation Agreement, a U.S.-ASEAN Bilateral (Regional) Investment Treaty, and a U.S.-ASEAN Agreement on Information and Communication Technology (ICT).
We support triennial conferences to encourage private sector engagement with ASEAN’s food security agenda. The U.S.-funded Maximizing Agricultural Revenue through Knowledge, Enterprise Development, and Trade (MARKET) Program is helping to carry these critical private-public partnerships. We will support the Second Annual Dialogue between ASEAN Agriculture Ministers and food industry business leaders in September. ASEAN Science & Technology Cooperation:
Recognizing the key role that science, technology, and health expertise play in promoting sustained economic development, at the U.S.-ASEAN Leaders Meeting the United States and ASEAN agreed to launch the U.S.-ASEAN Innovation in Science through Partners in Regional Engagement (INSPIRE) initiative. Through INSPIRE, the United States will enhance our scientific engagement and exchange across these fields with ASEAN, complementing the existing, excellent bilateral cooperation between the United States and ASEAN member states.
The United States funded an expert to work closely with the ASEAN Secretariat to improve IT operations and prepare a medium-term IT strategy that was presented to the Committee of Permanent Representatives. In early September, the ASEAN Secretariat and United States will jointly launch a new ASEAN Web Portal with a redesign of the front end of the website, the creation of central repository for past, current and future ASEAN documents, and a user-friendly interface with a searchable function. U.S.-ASEAN Eminent Persons Group (EPG): President Obama announced the names of the three representatives, Ambassador Charlene Barshefsky (a former U.S. Trade Representative), Muhtar Kent (Chairman and CEO of the Coca-Cola Company), and Ambassador J. Stapleton Roy (former U.S. Ambassador to Singapore, China, and Indonesia,) in November 2011 at the U.S.-ASEAN Leaders Meeting. This year, the group met with their ASEAN counterparts in Manila and Rangoon. In these meetings and through extensive additional consultations, the group formulated a report containing recommendations on enhanced U.S.-ASEAN engagement for consideration by President Obama, Secretary Clinton, and ASEAN Leaders. The EPG report offers expert insights on topics including engagement and integration among ASEAN Member States across all three Pillars of the ASEAN Community: political/security, economic, and socio-cultural. This important Presidential initiative demonstrates our deepening engagement with multilateral institutions in the Asia-Pacific, and specifically with ASEAN, as we celebrate the 35th anniversary of the establishment of the U.S.-ASEAN Dialogue this year.
ASEAN Secretariat Committee of Permanent Representatives Visit: This September, the United States sponsored a trip to Washington, DC and San Francisco, CA for the ASEAN Committee of Permanent Representatives (CPR), led by U.S. Mission to ASEAN Ambassador David L. Carden. The CPR oversees ASEAN Member States’ interactions with the ASEAN Secretariat and Dialogue Partners such as the United States, and includes one Representative from each of the 10 ASEAN Member States. During their visit, the CPR exchanged best practices across a variety of disciplines with officials drawn from U.S. Government, the private sector, think tanks, and universities, with the goal of improving ASEAN’s capacity to promote sustainable development, improve regional rule of law, and create an environment conducive to economic growth across Southeast Asia.
Dialogue Partner/Donor Coordination: The United States places a high priority on outreach and collaboration with our development partners in the region and in helping ASEAN strengthen its role in partner coordination. For example, the USAID-AusAID-ASEAN collaboration with the MTV End Exploitation and Trafficking (EXIT) campaign is highlighting ASEAN’s commitment to end trafficking in persons in cooperation with its Dialogue Partners. We are also coordinating support to the AHA Centre. The United States, Japan, Australia, the EU, and New Zealand are working directly with the AHA Centre and the ASEAN Secretariat to balance the types of assistance from each partner to cover AHA Centre's priority needs for systems, staffing and training. The United States and Canada also co-chair the working group on human rights cooperation with ASEAN.
Defense Liaison Officer: In 2011 the United States Pacific Command (PACOM) deployed a Liaison Officer to the U.S. Mission to ASEAN with the objectives of encouraging information-sharing between DOD and other U.S. agencies on multi-national security programs in Southeast Asia, and encouraging deepening and sustained engagement by DOD in ASEAN defense-related fora such as the ASEAN Defense Ministers Meeting Plus (ADMM+) mechanism. Over the past year the Mission's PACOM liaison has assisted with arrangements for the first informal dialogue between the ASEAN Defense Ministers and U.S. Secretary of Defense; coordinated U.S. co-chairmanship with Indonesia of the ADMM+ Expert Working Group on Counterterrorism; and organized a PACOM-sponsored regional workshop on environmental security.

TWO BIG FIRMS WILL PAY OVER $400 MILLION COMBINED TO SETTLE SEC CHARGES RELATED TO RMBS

 FROM: U.S. SECURITES AND EXCHANGE COMMISSION

Washington, D.C., Nov. 16, 2012 — In coordination with the federal-state Residential Mortgage-Backed Securities Working Group, the Securities and Exchange Commission today charged J.P. Morgan Securities LLC and Credit Suisse Securities (USA) with misleading investors in offerings of residential mortgage-backed securities (RMBS). The firms agreed to settlements in which they will pay more than $400 million combined, and the SEC plans to distribute the money to harmed investors.

The SEC alleges that J.P. Morgan misstated information about the delinquency status of mortgage loans that provided collateral for an RMBS offering in which it was the underwriter. J.P. Morgan received fees of more than $2.7 million, and investors sustained losses of at least $37 million on undisclosed delinquent loans. J.P. Morgan also is charged for Bear Stearns' failure to disclose its practice of obtaining and keeping cash settlements from mortgage loan originators on problem loans that Bear Stearns had sold into RMBS trusts. The proceeds from this bulk settlement practice were at least $137.8 million.

J.P. Morgan has agreed to pay $296.9 million to settle the SEC's charges.

According to the SEC's order against Credit Suisse, the firm similarly failed to accurately disclose its practice of retaining cash for itself from the settlement of claims against mortgage loan originators for problems with loans that Credit Suisse had sold into RMBS trusts and no longer owned. Credit Suisse also made misstatements in SEC filings about when it would repurchase mortgage loans from trusts if borrowers missed the first payment due. The firm made $55.7 million in profits and losses avoided from its bulk settlement practice, and its investors lost more than $10 million due to Credit Suisse's practices concerning first payment defaults.

Credit Suisse has agreed to pay $120 million to settle the SEC's charges.

"In many ways, mortgage products such as RMBS were ground zero in the financial crisis," said Robert Khuzami, Director of the SEC's Division of Enforcement. "Misrepresentations in connection with the creation and sale of mortgage securities contributed greatly to the tremendous losses suffered by investors once the U.S. housing market collapsed. Today's actions involving RMBS securities are a continuation of the SEC's strong efforts to pursue wrongdoing committed in connection with the financial crisis."

Mr. Khuzami is a co-chair of the RMBS Working Group, which brings together federal and state agencies to investigate those responsible for misconduct that contributed to the financial crisis through the pooling and sale of RMBS.

RMBS Working Group Co-Chair and U.S. Attorney for the District of Colorado John Walsh said, "Today's filings represent significant steps towards the accomplishment of the Working Group's mission - to investigate and confront the abuses in the residential mortgage-backed securities market that significantly contributed to the Financial Crisis. The Working Group model allows the Department of Justice to lend a hand to other enforcement partners around the country who, in turn, have their own unique resources, talents, and legal tools to contribute to the effort. And the Justice Department's efforts in this area have benefited from SEC's work on its own cases."

RMBS Working Group Co-Chair and New York State Attorney General Eric Schneiderman said, "Today's actions are another step forward in the process of bringing accountability for the misconduct that led to the collapse of the housing market. We will continue to work together on behalf of consumers and investors to ensure that it never happens again."

According to the SEC's complaint against J.P. Morgan filed in federal court in Washington D.C., federal regulations under the securities laws require the disclosure of delinquency information related to assets that provide collateral for an asset-backed securities offering. Information about the delinquency status of mortgage loans in an RMBS transaction is important to investors because those loans are the primary source of funds by which investors can earn interest and obtain repayment of their principal.

The SEC alleges that in the prospectus supplement for the $1.8 billion RMBS offering that occurred in December 2006, J.P. Morgan made materially false and misleading statements about the loans that provided collateral for the transaction. The firm represented that only four loans (.04 percent of the total loans collateralizing the transaction) were delinquent by 30 to 59 days, and that those four were the only loans that had had an instance of delinquency of 30 or more days in the 12 months prior to the "cut-off date" for the transaction. However, at the time J.P. Morgan made these representations, the firm actually had information showing that more than 620 loans (above 7 percent of the total loans collateralizing the transaction) were, and had been, 30 to 59 days delinquent, and the four loans represented as being 30 to 59 days delinquent were in fact 60 to 89 days delinquent.

The SEC's complaint also alleges that Bear Stearns' bulk settlements covered loans collateralizing 156 different RMBS transactions issued from 2005 to 2007. Loan originators were usually required by contract to buy back loans that suffered early payment defaults or had other defects. However, Bear Stearns frequently negotiated discounted cash settlements with these loan originators in lieu of a buy-back on loans that were owned by the RMBS trusts. The firm - both before and after the merger with J.P. Morgan - then kept most of the bulk settlement proceeds. The firm failed to disclose the practice to investors who owned the loans. Bear Stearns repurchased only about 13 percent of these defective bulk settlement loans from the trusts, compared to a nearly 100 percent repurchase rate when loan originators agreed to buy back the defective loans. For most loans covered by bulk settlements, the firm collected money from originators without paying anything to the trusts.

J.P. Morgan settled the SEC's charges by consenting to pay $50.5 million in disgorgement and prejudgment interest and a $24 million penalty for the delinquency misstatements, which the SEC will seek to distribute to harmed investors in the transaction through a Fair Fund. J.P. Morgan agreed to pay $162,065,536 in disgorgement and prejudgment interest and a $60.35 million penalty for the bulk settlement practice misconduct, and the SEC will seek to distribute these funds to harmed investors through a separate Fair Fund. J.P. Morgan consented, without admitting or denying the allegations, to the entry of a final judgment permanently enjoining them from violating Section 17(a)(2) and (3) of the Securities Act of 1933. The settlement is subject to court approval.

According to the SEC's order instituting a settled administrative proceeding against Credit Suisse, the firm and its affiliated entities misled investors in 75 different RMBS transactions through the bulk settlement practice. From 2005 to 2010, Credit Suisse frequently negotiated bulk settlements with loan originators in lieu of a buy-back of loans that were owned by the RMBS trusts. Credit Suisse kept the bulk settlement proceeds for itself and failed to disclose the practice to investors who owned the loans. In nine of the 75 RMBS trusts, Credit Suisse failed to comply with offering document provisions that required it to repurchase certain early defaulting loans. Credit Suisse also applied different quality review procedures for loans that it sought to put back to originators, instituted a practice of not repurchasing such loans from trusts unless the originators had agreed to repurchase them, and failed to disclose the bulk settlement practice when answering investor questions about early payment defaults.

The SEC's order also found that Credit Suisse made misleading statements about a key investor protection known as the First Payment Default (FPD) provision in two RMBS offerings. The FPD provision required the mortgage loan originator to repurchase or substitute loans that missed payments shortly before or after they were securitized. Credit Suisse misled investors by falsely claiming that "all First Payment Default Risk" was removed from its RMBS, and at the same time limiting the number of FPD loans that were put back to the originator.

Credit Suisse settled the SEC's charges by consenting to pay $68,747,769 in disgorgement and prejudgment interest and a $33 million penalty, which the SEC will seek to distribute through a Fair Fund to harmed investors in the 75 RMBS transactions affected by the bulk settlement practice. Credit Suisse agreed to pay $12,256,651 in disgorgement and prejudgment interest and a $6 million penalty, which the SEC will seek to distribute through a separate Fair Fund to harmed investors in the two transactions affected by the FPD misstatements. Credit Suisse agreed to an order, without admitting or denying the allegations, requiring them to cease and desist from violations of Section 17(a)(2) and (3) of the Securities Act and Section 15(d) of the Securities Exchange Act of 1934.

These investigations were conducted by members of the SEC Enforcement Division's Structured and New Products Unit in both the Denver and Washington, D.C. offices, including Zachary Carlyle, Mark Cave, Sarra Cho, Allison Herren Lee, Laura Metcalfe, Colin Rand, Thomas Silverstein, John Smith, Andrew Sporkin, Amy Sumner, and Jeffrey Weiss. The trial unit members assigned to this matter were Dugan Bliss, Kyle DeYoung, Jan Folena, and Christian Schultz. The Enforcement Division was assisted by Eugene Canjels and Vance Anthony in the Division of Risk, Strategy and Financial Innovation. The SEC thanks the other agencies who are members of the RMBS Working Group for their assistance and cooperation regarding these enforcement actions.

"These actions demonstrate that we intend to hold accountable those who misled investors through poor disclosures in the sale of RMBS and other financial products commonly marketed and sold during the financial crisis. Our efforts in that regard continue," said Kenneth Lench, Chief of the SEC Enforcement Division's Structured and New Products Unit.

FEMA APPROVED OVER $500 MILLION FOR HURRICANE SANDY RECOVERY

A House Blown Away By Hurricane Sandy

FROM: U.S. FEDERAL EMERGENCY MANAGEMENT AGENCY

More Than $500 Million Approved for Hurricane Sandy Recovery

NEW YORK, N.Y. -- Since Hurricane Sandy struck New York, the Federal Emergency Management Agency (FEMA) has approved more than $500 million to help individuals and families recover from the disaster.

FEMA is reaching out to all the 13 declared counties with attention to the hardest hit areas of New York state. To date, more than $500 million has been approved. Assistance to the hardest hit areas includes:
Bronx $998,825
Kings $102,621,916
Nassau $178,016,765
New York $4,437,375
Queens $134,415,479
Richmond $55,414,997
Suffolk $30,424,541
FEMA provides the following snapshot of the disaster recovery effort as of Nov. 18:
More than 212,000 New Yorkers have contacted FEMA for information or registered for assistance with FEMA and more than $500 million has been approved. More than 109,000 have applied through the online application site at www.disasterassistance.gov, or on their smart phone at m.fema.gov.
30 Disaster Recovery Centers (DRC) are open in the affected areas. These include mobile sites as well as fixed sites, and to date more than 34,000 survivors have been assisted at DRCs in New York.
969 Community Relations (CR) specialists are strategically positioned throughout affected communities, going door to door explaining the types of disaster assistance available and how to register. More teams continue to arrive daily.
Nearly 1,300 inspectors in the field have completed nearly 87,000 home inspections.
19 Points of Distribution (PODs) are open and providing supplies to the affected residents.
9 Disaster Medical Assistance Teams (DMATs), and 1 National Veterinary Response Team (NVRT) from the Department of Health and Human Services are deployed in New York.
13 New York counties are designated for both individual and public assistance, including: Bronx, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster and Westchester.
The U.S. Small Business Administration (SBA) has staff members at 18 Business Recovery Centers in the New York area to provide one-on-one help to business owners seeking disaster assistance and has approved more than $3.5 million in disaster loans.

SNAILS AND HUMAN DISEASE

Countries worldwide where people are at risk for the snail-borne disease schistosomiasis.

Credit-CDC

FROM: NATIONAL SCIENCE FOUNDATION
Snails in the Waters, Disease in the Villages
November 19, 2012

Watch where you jump in for a swim or where your bath water comes from, especially if you live in Africa, Asia or South America. Snails that live in tropical freshwater in these locations are intermediaries between disease-causing parasitic worms and humans.

People in developing countries who don't have access to clean water and good sanitation facilities are often exposed to the infected snails. Then they're left open to the parasitic worms.

The worms' infectious larvae emerge from the snails, cruise in shallow water, easily penetrate human skin and mature in internal organs.

The result is schistosomiasis, the second most socioeconomically devastating disease after malaria. As of 2009, 74 developing nations had identified significant rates of schistosomiasis in human populations.

There has been much debate about how best to prevent the disease, says Charles King, a physician and researcher at Case Western Reserve University in Cleveland, Ohio. "Beyond that," he asks, "how long should treatment last once someone has schistosomiasis?"

"Current guidelines focus on suppressing the disease's effects by limiting the infection during childhood," says King. "But that may not be enough to cure it or to prevent re-infection, leaving children still at risk for stunted growth and anemia."

King and colleagues recently published results of a study of long-term treatment of schistosomiasis in the journal PLOS Neglected Tropical Diseases.

The team's work is funded by the National Science Foundation (NSF)-National Institutes of Health (NIH) Evolution and Ecology of Infectious Diseases (EEID) program.

At NSF, the EEID program is supported by the Directorate for Biological Sciences and Directorate for Geosciences. At NIH, it's supported through the Fogarty International Center.

Schistosomiasis is usually treated with a single dose of the oral drug praziquantel.

World Health Organization (WHO) guidelines set forth in 2006 recommend that when a village reports that more than 50 percent of its children have parasite eggs in their urine or stool--a clear sign of schistosomiasis--everyone in the village should receive treatment.

When 10 to 50 percent of children are affected, say the guidelines, only school-age children should be treated--every two years. With less than 10 percent, mass treatment is not suggested.

But because of the long-term health effects of schistosomiasis, says King, "we now think it's better to provide regular yearly treatment."

He and scientists Xiaoxia Wang, David Gurarie and Peter Mungai of Case Western Reserve University; Eric Muchiri of the Ministry of Public Health and Sanitation in Nairobi, Kenya; and Uriel Kitron of Emory University in Atlanta, Georgia, used data collected in 10 villages in southeastern Kenya to run advanced models of village-level schistosomiasis transmission.

They scored the number of years each of the 10 villages would be projected to remain below a 10 percent infection level during a simulated 10-to-20-year treatment program.

All strategies that included an initial four annual treatments reduced community prevalence of the disease to less than 10 percent. Programs with gaps in treatment, however, didn't reach this objective in half the villages.

At typical levels of treatment, the researchers found, current WHO recommendations likely could not achieve full suppression of schistosomiasis.

"With more aggressive annual intervention that lasts at least four years," says King, "some communities might be able to continue without further treatment for 8 to 10 years.

"But in higher-risk villages, repeated annual treatment may be necessary for an indefinite period--until the eco-social factors that foster the disease [such as poor wastewater treatment] are removed."

In high-risk places, ongoing surveillance for the disease and annual drug treatment, the scientists say, need to become the mainstays of control.

In short, these villages require what they call "re-worming after de-worming."

But what happens if townspeople move to a more arid location, one with less freshwater and fewer snails?

In drier landscapes, schistosomiasis is a rare event that happens only during floods. Response to treatment therefore may be much better. Unless or until another flood occurs.

Although drier locales carry less risk for the disease, they're by no means free and clear. Even in arid locations, people would likely need to be treated more than once to get rid of the parasites.

"This research demonstrates the value of understanding where disease-causing organisms are in the environment," says Sam Scheiner, NSF program officer for EEID.

"Such knowledge can reduce human diseases much more effectively and at a lower cost than simply focusing on treatment."

The best goal, says King, is complete eradication of schistosomiasis.

To achieve that, scientists need to determine what makes a "wormy village," how often therapy is needed to prevent disease in such locations--and what can be done to change the environment such that a high-risk village becomes a low-risk one.

　

HIGH-RESOLUTION GLOBAL ATMOSPHERIC MODELING GIVES LOOK AT GLOBAL AERSOLS

FROM: NASA
Portrait of Global Aerosols
High-resolution global atmospheric modeling run on the Discover supercomputer at the NASA Center for Climate Simulation at Goddard Space Flight Center, Greenbelt, Md., provides a unique tool to study the role of weather in Earth's climate system. The Goddard Earth Observing System Model, Version 5 (GEOS-5) is capable of simulating worldwide weather at resolutions of 10 to 3.5 kilometers (km).

This portrait of global aerosols was produced by a GEOS-5 simulation at a 10-kilometer resolution. Dust (red) is lifted from the surface, sea salt (blue) swirls inside cyclones, smoke (green) rises from fires, and sulfate particles (white) stream from volcanoes and fossil fuel emissions.

Image credit-William Putman, NASA-Goddard

COMBATING TRAINING MISCONDUCT IN U.S. AIR FORCE

Air Force Chief of Safety Maj. Gen. Margaret H. Woodward briefs reporters on the findings and recommendations of the investigation of misconduct of the Air Force's basic military training on Joint Base San Antonio-Lackland at the Pentagon, Nov. 14, 2012. DOD photo by Glenn Fawcett

FROM: U.S. DEPARTMENT OF DEFENSE

Air Force Leadership Council to Combat Training Misconduct

By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

WASHINGTON, Nov. 14, 2012 - Air Force officials discussed the results of a commander-directed investigation into basic military training instructor misconduct and the service's commitment to correcting those issues at a press conference.

Air Force Gen. Edward A. Rice Jr., commander of the Air Education and Training Command, and Air Force Maj. Gen. Margaret H. Woodward, chief of Air Force Safety, outlined the underlying causes of basic training leader misconduct.

In his review of Woodward's report on the investigation, Rice said he found weaknesses in institutional safeguards, leadership, and the instructor culture of self-accountability, with the conditions leading to abuse of power in basic military training "ever-present."

"To that end, I am directing the establishment of the Military Training Oversight Council, which will be chaired by a three-star general," he said. "The purpose of this council is to ensure we have the appropriate level of leadership oversight over issues associated with trainee safety and the maintenance of good order and discipline."

According to Rice, the report includes nearly two-dozen findings and more than 40 recommendations based on 215 in-depth interviews, surveys of 18,000 service members, and meetings with basic trainees and training instructor spouses.

The report's findings and recommendations "accurately reflect the deficiencies in our basic military training program and provide effective proposals to remedy those deficiencies," he said.

Rice noted he intends to implement 45 of the 46 recommendations, with the final recommendation -- adjusting the length of basic training -- still under review, as part of a previous evaluation.

"Because we know the basic military training environment is highly susceptible to the abuse of power, we have established a set of institutional safeguards to prevent misconduct by instructors," Rice said.

Rice also noted he intends to hold commanders accountable, having "found areas where commanders did not meet my expectations with respect to creating the type of command climate that's necessary for good order and discipline to be in a healthy state."

The Air Force has relieved two commanders since the misconduct cases surfaced -- one at the squadron level and one at the group level, Rice said.

"I have also [taken] disciplinary action with six additional commanders," he said.

Rice and Woodward both emphasized there are honorable men and women in the enlisted basic training complex who continue to serve with distinction.

Rice, quoting Woodward in her report, said, "This report necessarily focuses on the few who violated a sacred trust and broke faith with fellow airmen everywhere."

Woodward said the investigation also determined that instructors found guilty of misconduct "knew that they were violating a regulation or policy, and that was very clear to them," she said.

Moving forward, Rice said, AETC will continue to "fix what went wrong in our basic military training program."

"We are committed to doing everything we can to make our basic military training program the world's finest example of military professionalism," he said.