MAN SENTENCED TO PRISON FOR PART IN FORECLOSURE RESUCE SCAM

FROM: U.S. DEPARTMENT OF JUSTICE

Las Vegas Man Sentenced to 37 Months in Prison for Foreclosure Rescue Scam and Theft of Government Funds

WASHINGTON – A Las Vegas man was sentenced today to 37 months in prison for operating a foreclosure rescue scam that defrauded distressed homeowners who were struggling to pay their mortgages, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.

Alex P. Soria, 65, was sentenced today by U.S. District Judge Lloyd D. George in the District of Nevada. In addition to his prison term, Soria was sentenced to serve three years of supervised release and ordered to pay $320,266 in restitution.

In August 2012, Soria pleaded guilty to one count of wire fraud in connection with his scheme to defraud distressed homeowners and one count of theft of government funds for defrauding the Social Security Disability Insurance benefits program.

According to court documents, Soria identified homeowners whose mortgage debt exceeded the value of their homes and charged them a fee purportedly to reduce the principal balance of their mortgages using money from the Department of the Treasury’s Troubled Asset Relief Program (TARP). Soria admitted in court that he lied to homeowners about his affiliation with several mortgage lenders and that he provided victims with fraudulent letters stating they had been approved for loans. Soria also admitted he falsely told victims that his loan program had been successful in the past and charged homeowners for loan modifications he knew he could not deliver. Court documents show that Soria concealed from homeowners the fact that the state of Nevada had issued a cease and desist order which legally prohibited him from working in the mortgage industry. Soria collected over $100,000 in fees from distressed homeowners, many of whom lost their homes to foreclosure after Soria failed to deliver the loan modifications he promised.

As part of the same case, Soria also admitted to stealing government funds by continuing to collect Social Security Disability Insurance benefits while at the same time receiving income from his foreclosure relief operation. The Social Security Disability Insurance program is a federal program that replaces the wages of individuals who become unable to work due to a disability. Soria admitted to collecting over $200,000 in disability benefits from 1990 to 2010 while at the same time receiving income that he concealed from the Social Security Administration.

This case is being prosecuted by Trial Attorneys Brian R. Young and Mary Ann McCarthy of the Criminal Division’s Fraud Section. The U.S. Attorney’s Office for the District of Nevada assisted with the investigation and prosecution. The case was investigated by the Offices of Inspector General for the Department of Housing and Urban Development and the Social Security Administration.

This prosecution is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

CONTRACTOR PLEADS GUILTY IN FRAUDULENT POLICE VEHICLE SALE TO IRAQ

FROM: U.S. DEPARTMENT OF JUSTICE

Monday, December 10, 2012

British Contractor Agrees to Plead Guilty to Wire Fraud Conspiracy Related to Iraq Reconstruction Efforts

WASHINGTON – British contractor APTx Vehicle Systems Limited agreed today to plead guilty to conspiracy to defraud the United States, the Coalition Provisional Authority that governed Iraq from April 2003 to June 2004, the government of Iraq and JP Morgan Chase Bank. A civil settlement agreement resolving a related action filed under the False Claims Act was also announced today.

APTx was charged with one count of wire fraud conspiracy in a criminal information filed today in U.S. District Court in Massachusetts. As part of the plea agreement filed with the information, APTx agreed to pay a criminal fine of $1 million.

The charges and resolutions were announced today by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, Principal Deputy Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division and U.S. Attorney for the District of Massachusetts Carmen M. Ortiz.

According to the criminal information, APTx engaged in a fraudulent scheme involving an August 2004 contract valued at over $8.4 million for the procurement of 51 vehicles for the Iraqi Police Authority. The contract was initially awarded to a different, "prime" contractor, which in turn subcontracted the procurement to APTx for over $5.7 million. Payment under the contract was by letters of credit issued by JP Morgan Bank.

The criminal information further charges that in May and June 2005, APTx submitted shipping documents to JP Morgan to draw down on the letters of credit, which falsely and fraudulently asserted that all 51 vehicles were produced and ready to ship to Iraq. In fact, as APTx knew, none of the vehicles had been built, none of the vehicles were legally owned or held by APTx and none of the vehicles were in the process of transport to Iraq. The fraudulent shipping documents also listed a company as the freight carrier that APTx knew was not a shipping company and named a fictitious company as the freight forwarder.

In a related civil settlement agreement, APTx, along with Alchemie Grp Ltd., a United Kingdom corporation, and Haslen Back, the director and shareholder of Alchemie, agreed to pay $2 million to the United States to resolve claims originated by Ian Rycroft, an individual retained by the prime contractor to oversee transportation of the vehicles, under the qui tam, or whistleblower, provisions of the False Claims Act in the District of Massachusetts. The False Claims Act authorizes private whistleblowers to bring suit for false claims submitted to the United States and to share in any recovery. Rycroft’s estate will receive $540,000 as its share of the settlement amount.

Benjamin Kafka, a representative for APTx in the United States, was charged on April 13, 2009, with one count of misprision of a felony in connection with his role in the wire fraud conspiracy. According to court documents, Kafka allegedly allowed APTx to use his corporate name and identity as the freight carrier and freight forwarder on the fraudulent shipping documents presented to JP Morgan.

The criminal case is being prosecuted by Director of Procurement Fraud Catherine Votaw and Trial Attorney William H. Bowne III of the Criminal Division’s Fraud Section, and by Assistant U.S. Attorneys Eugenia M. Carris and Jeffrey Cohen of the District of Massachusetts. The civil case is being handled by Trial Attorney Diana Younts of the Civil Division, and by Assistant U.S. Attorney Christine Wichers of the District of Massachusetts. The investigation was conducted by the Special Inspector General for Iraq Reconstruction, the Defense Criminal Investigative Service Boston Resident Agency and U.S. Immigration and Customs Enforcement Homeland Security Investigations in Washington, D.C.

FEMA SAYS HURRICANE SANDY DEBRIS REMOVAL "ON TRACK"

Far Rockaway, N.Y., Dec. 12, 2012 -- The U.S. Army Corps of Engineers is removing debris from Far Rockaway, Long Island beaches boardwalk. Using a fleet of front-end loaders, crawler excavators and dump trucks, the Army Corps is working block by block to clear debris and make way for new sand. Replenishing the beach falls under the New York Department of Parks and Recreation authority. Eliud Echevarria/FEMA

FROM: FEDERAL EMERGENCY MANAGEMENT AGENCY
Debris Removal on Track
Release date:
December 16, 2012

NEW YORK – The partnership between New York State, New York City, other municipalities, the Army Corps of Engineers and the Federal Emergency Management Agency has made significant progress in removing the massive amounts of debris left by Hurricane Sandy. To date, along with private contractors, they have removed in excess of four million cubic yards of debris from New York City’s five boroughs and Nassau, Rockland, Suffolk, and Westchester counties.

FEMA’s Public Assistance program has approved more than $17 million to reimburse Nassau County for 75 percent of the costs of overtime for 270 employees and the rental of heavy duty wood chippers to reduce the volume of the debris. Approved this week is a $2.2 million reimbursement to supplement the $15 million approved for the county in November. More Public Assistance funding is anticipated to offset county costs for debris removal and disposal.

Strong winds and heavy rains from Hurricane Sandy brought down trees, tree limbs and power lines throughout the New York area. Collecting and clearing out piles of debris has been one of the most difficult and time-consuming challenges of the recovery. But despite this, the debris piles are disappearing.

After collection, debris is trucked to staging areas where it is inspected, separated into categories and disposed of in the safest manner possible. To reduce the amount of material going into landfills, the Army Corps of Engineers, in cooperation with the New York City’s Sanitation Department, is looking at alternate ways of using the vegetative debris (wood, tree branches, leaves and other organic matter) that will be of benefit to the communities.

FEMA’s Public Assistance program reimburses state and local governments and certain private nonprofit organizations 75 percent of eligible debris removal costs. The remaining 25 percent is provided by non-federal funds. The state forwards the federal funds to the eligible local governments or organizations that incurred costs.

For debris removal to be eligible, the damage must be direct result of Hurricane Sandy, and the work must be necessary to:
Eliminate an immediate threat to lives, public health and safety,
Eliminate immediate threats of significant damage to improved public and private property when the measures are cost effective, or
Ensure the economic recovery of the affected community to the benefit of the community-at-large.

NEW TECH DEVELOPING TO PROTECT SOLDIERS FROM CHEMICAL AND BIOLOGICAL THREATS

 

Dr. Calvin Chue, a research biologist with the U.S. Army Research, Development and Engineering Command, is focused on the next generation of devices to protect Soldiers and civilians against unknown chemical or biological threats. Photo by Tom Faulkner RDECOM PAO

FROM:  U.S. DEPARTMENT OF DEFENSE 'ARMED WITH SCIENCE'
Written on December 7, 2012 at 7:09 am by jtozer
Army Biologist Developiing NetGen Tools for Soldiers

U.S. Army scientists are developing new technologies, including smartphones that detect and identify chemical and biological agents, to empower soldiers.


Dr. Calvin Chue, a research biologist with the U.S. Army Research Develoopment and Engineering Command, or RDECOM, is focused on the next generation of devices to protect soldiers and civilians against unknown chemical or biological threats.

"The biggest threat is always going to be the emerging pathogen, the things you hear about on the news where pools of disease pop up randomly," Chue said.
"We have soldiers deployed around the world. Being able to develop tools and technologies to pick up those unknown hazards before [soldiers] are exposed to them is a large measure of what we do."
"I’ve chosen to come to the government side because we’re able to make the most practical impact in developing tools that directly meet the needs of soldiers. The other nice thing about here at government labs is having direct interaction with warfighters. We can build tools that they tell us they need," he said.

DETECTING HAZARDS WITH A SMARTPHONE

ECBC’s BioSciences Division is conducting research on sensors embedded with smartphones to identify unknown or suspicious samples, Chue said.

"We’re trying to develop new kinds of sensors that a soldier could use to amplify their knowledge in the field," Chue said. "For example, a soldier might go to a new area and plant 30 or 40 different chemical and biological sensor devices.
"They would be tied back to a smartphone or tablet that is providing the user interface display. That is a new modality, and it expands the soldier’s senses."
In addition to on-site diagnostics in the field, the smartphone could send results to a command post or a laboratory for further analysis. The work on chem-bio sensors at ECBC will be integrated with the communications and electronics research community within the Army, Chue said. He anticipates a practical application for soldier use within five to six years.

Chue said another benefit of the smartphone sensors will be to unburden soldiers by reducing the size and weight of detectors they already have access to.

"If [soldiers] have a weight limitation, they have to choose what they’re not carrying. By going with the small, distributed sensors, we’re hoping to give them the power without the limitations," he said. "They will be able to deploy a chemical sensor at a distance or a biological detector that perhaps will be based on odorant detection or sampling the air for nucleic acids.

"All of that information comes back to a phone or platform that has been deployed with them. It gives them integration and power that they would not have otherwise."

FUSING BIOLOGY, ENGINEERING

Another key initiative within the BioSciences Division is fusing the disciplines of biology and engineering.

Chue described a partnership between ECBC, Specific Technologies of Mountain View, Calif., and the Defense Science Technology Laboratory in Great Britain to replace the sense of smell by using paper.

"A paper-based modality is where you get a color change in the presence of certain kinds of odorants. That’s a fusing of the biology with engineering and chemistry to create a simple, easy-to-use product that doesn’t require any special equipment," he said.

ECBC is also developing processes to test grown human organs using new three-dimensional printer technology with the Wake Forest University for Regenerative Medicine, Harvard University Medical School, Morgan State University and The Johns Hopkins University, Chue said. Instead of printing ink, the printer places layer upon layer of cells to build on organ.

The artificial organs could help scientists understand how the body responds to chemical and biological agents.

"This may allow us to grow new kinds of sensors. We would like to grow an immune organ that could respond to chemical and biological insults," he said. "It’s probably at least several decades before it has a practical application. It’s the kind of long-term science that we’re making an investment in because it will benefit the service member in the end."

FOUNDATION FOR FUTURE MILITARY SCIENTISTS

Chue said many life-science researchers do not understand the contributions they could make to soldiers and the public while working in a military laboratory. He is trying to reverse those misconceptions.

"It was fortuitous to begin my career with the U.S. military and it has been a great place to work to be able to continue that," he said. "It’s most important to be at the scientific forefront for our soldiers to know what risks they may be exposed to and protect them from that as best we can.

"We hope to inspire a new generation of scientists and engineers to choose a career working for a government or military laboratory. It’s rare that people in the life sciences think about working for the military. We’re doing a wide variety of things to not just benefit the soldier, but also the American public."

By Mr. Dan Lafontaine (RDECOM)

U.S. Department of Defense Armed with Science Update

U.S. Department of Defense Armed with Science Update

VIDEO: NASA'S GROUND SYSTEMS DEVELOPMENT AND OPERATIONS PROGRAM

FROM: NASA
GSDO: Exploration Begins Here

NASA's Ground Systems Development and Operations Program is developing the technologies and innovations to launch the next generation of rockets and spacecraft.

CHAIRMAN OF THE U.S. HOUSE WAYS AND MEANS COMMITTEE'S VIEWS ON THE FISCAL CLIFF, HIGHER TAXES, AND FIXING SOCIAL SECURITY

FROM: CONGRESSMAN DAVE CAMP'S WEBSITE
Camp Statement on the Fiscal Cliff

Monday, December 10, 2012

Midland, MI – Today, Congressman Dave Camp (R-MI) released the following statement in response to President Obama’s event in Redford, MI.

"Today the President restated his same old demand to raise taxes on nearly 1 million small businesses. The time for campaign events is over, Michigan families and small businesses are at risk. Raising taxes will not create jobs. Tax reform, however, will create jobs here in Michigan and across America and produce more revenues – something the President demands. I urge the President to abandon his push for higher tax rates that threatens middle-class jobs. Comprehensive tax reform, which is supported by Republicans and Democrats in Congress, can help solve both the fiscal and jobs crisis we face in this country."

Social Security

Social Security must be protected for all Americans, especially those who are retired or near retirement age. The Social Security Trust Fund, however, faces significant financial challenges in the coming years. Without Congressional action, retirees could see reduced benefits as soon as 25 years from now.

The biggest strain on the Social Security Trust Fund is the simple fact that individuals live much longer lives today than in 1935, and the program has never truly been updated to keep pace with America’s demographic changes. Successfully fixing Social Security means that Americans who retire in 2035 will not be faced with a system that was built for the world of 1935, but a system that has been modernized to meet the realities of the 21st Century.

While adjustments to the system must be made sooner rather than later to ensure the Social Security Trust Fund remains solvent, I believe any reforms must assure Americans they will get back from Social Security what they have paid into the system over their lifetime. I also believe that the current system should remain in place for those at or near retirement age, who would not have time to plan for any changes.

While Congress faces difficult choices in order to improve Social Security’s long term financial outlook, I know this mission can be accomplished in a way that strengthens this vital government program.

KEYNOTE REMARKS AT EUROPEAN UNION'S HUMAN RIGHTS DAY EVENT

Sun Rise From Space.  Credit:  ISS/NASA/Ron Garan.

FROM: U.S. DEPARTMENT OF STATE

Under Secretary Otero's Keynote Remarks at the European Union's Human Rights Day Event
Remarks
Daniel Baer
Deputy Assistant Secretary, Bureau of Democracy, Human Rights, and Labor
EU Mission To The United States
Washington, DC
December 11, 2012

Thank you, Mr. Ambassador, for that kind introduction. It is a special honor to be with you the day after the European Union was awarded the 2012 Peace Prize. My warm congratulations to you.

And thank you also to the embassies that are cohosting today’s event—Cyprus, Finland, and Lithuania—as well as the embassies of the Czech Republic, Sweden and the UK which have supported this event as well.

I am very sorry that Maria Otero could not be here. As you’ve heard, there was a death in her family overnight, and certainly my thoughts are with her. Those of you who know her know that she brings wisdom, grace and warmth to all that she does, and so I am glad that she can be with her family, as I’m sure she is a comfort to them.

Maria and I have traveled together and worked on many issues together over the last three and a half years—so it’s an honor to be her understudy today, and I thank the mission for inviting me to deliver her remarks in her stead.

Today’s meeting fits well with the EU’s legacy of working for peace and justice. And I am pleased you have organized such a distinguished panel to address the issue of human rights, a key pillar of U.S. foreign policy.

Yesterday was International Human Rights Day, when we celebrate the adoption of the Universal Declaration of Human Rights. In adopting the Declaration, governments around the world recognized that human beings are, by virtue of their birth, endowed with certain inalienable rights. And these rights serve as "the foundation of freedom, justice and peace in the world."

Today, we continue to look to the Universal Declaration not just as a reminder of our values, but as a guide for action. As Secretary of State Clinton said last week in Dublin, "it is a time-tested blueprint for successful societies."

The theme of today’s event – "Supporting Freedom of Expression, Freedom of Association, and Political Participation" – is particularly appropriate. For we recognize that human rights are not just about freedom from violence, torture, unlawful detention, discrimination, and oppression. Human rights also include the fundamental freedoms to speak, associate, assemble, and follow one’s faith.

The European Union and the United States have been strong partners in promoting these basic rights that are so important to securing other rights. We are bound together by a common history and shared values, within which these fundamental freedoms play a key role.

Today, I’d like to highlight a few areas where the EU and the United States are working together to promote and strengthen human rights around the world.

First, we both work to ensure that the freedoms of expression, association, and political participation enhance citizen involvement in the democratic electoral process. As Secretary Clinton has said on numerous occasions, a vibrant civil society in which citizens and activists engage in vigorous public debate is one of the fundaments of free, democratic nations. Such public deliberation helps keep citizens informed, exposes them to a variety of opinions, values and interests, and induces them to refine their own views and defend them with good reasons.

And democratic elections, in turn, help to protect fundamental freedoms and to promote good governance, by enabling citizens to hold their leaders accountable. Thus, the mutually reinforcing feedback loop between civil society and democratic institutions creates a virtuous circle of vibrant democracy.

Second, we work together to protect freedom of expression, enshrined in Article 19 of the Universal Declaration of Human Rights, as well as a number of other international instruments. Of course, protecting the right of expression does not mean endorsing everything that people say. There are billions of people on earth; some of them will say terrible, hurtful things. They may offend our religious feelings or defame groups we belong to. Rather than banning such speech, the rest of us should use our own freedom of expression to challenge, condemn, and reject hateful or offensive speech.

Working with youth from many European Union countries over the past few years, we have shown that it is possible to stop bigotry and promote respect across lines of culture, religion, tradition, class, disability, and gender. The 2012 Hours Against Hate campaign uses social media to invite youth throughout Europe and around the world to volunteer their time with someone who does not look like them, live like them, or pray like them. The success of the campaign is evident through the more than 20,000 volunteer hours pledged globally. People from faith groups, NGOs, international organizations, universities, businesses, governments, and other individuals in Europe and around the world have joined the campaign.

Third, we share the same objectives in the fight against anti-Semitism, anti-Muslim sentiment, and discrimination against religious and ethnic minorities, LGBT individuals, and persons with disabilities. The EU continues to play the leading role in combating all forms of discrimination across the European continent. We applaud the EU’s Framework for National Roma Integration Strategies as an important step in protecting the rights of the members of the Romani minority, and we encourage the EU to press forward in its commitments to promote the social and economic inclusion of members of all marginalized groups.

We also applaud the EU Council’s adoption in June of an "EU Strategic Framework on Human Rights and Democracy." And we look forward to continue working closely with newly appointed EU Special Representative Mr. Lambrinidis on the implementation of our human rights policy. (Incidentally we are already working together-- I was in Geneva last week for the first UN Forum on Business and Human Rights where Mr. Lambrinidis and Mike Posner both addressed the plenary session.)

Fourth, as Secretary of State Clinton noted in a recent speech in Washington, we will cooperate with the EU to promote democracy and human rights in those parts of Europe that are not yet where they need to be. The Secretary reiterated this message in Dublin last week when she met with embattled civil society organizations from across Europe on the sidelines of the OSCE ministerial meetings.

Beyond Europe, we applaud some of the newest members of the EU for using their recent experiences with democratization to support democratic aspirations in Eurasia, the Middle East, and North Africa.

And we look to our European allies to help improve security and build new relationships in Asia. As Secretary Clinton said, "our pivot to Asia is not a pivot away from Europe. On the contrary, we want Europe to engage more in Asia along with us, to see the region not only as a market, but as a focus of common strategic engagement."

And as a good example, European governments, including Germany, UK, Switzerland, the Czech Republic, and Poland, have joined the call for Chinese authorities to address the worsening human rights conditions in Tibetan areas.

The United States is deeply concerned and saddened by the continuing violence in Tibetan areas of China and the increasing frequency of self-immolations by Tibetans.

Chinese authorities have responded to these tragic incidents with measures that tighten already strict controls on the freedoms of religion, expression, assembly and association of Tibetans. Official rhetoric that denigrates the Tibetan language, the Dalai Lama, and those that have self-immolated has further exacerbated tensions.

The United States government has consistently urged the Chinese government to address policies in Tibetan areas that have created tensions. These policies include increasingly severe government controls on Tibetan Buddhist religious practice and monastic institutions; education practices that undermine the preservation of Tibetan language; intensive surveillance, arbitrary detentions and disappearances of Tibetans, including youth and Tibetan intellectual and cultural leaders; escalating restrictions on news, media and communications; and the use of force against Tibetans seeking peacefully to exercise their universal human rights.

Ladies and gentlemen, in conclusion, we celebrate Human Rights Day every December. But advancing freedom and human rights is our daily work, as the Secretary noted in Dublin, and we must continue the hard work of "making human rights a human reality." We continue to press for the fundamental rights and freedoms of all people, and we will stand with citizens, activists, and governments around the world that do the same, as we strive for a world in which each human being lives freely and with dignity. Thank you.

FEMA INFRASTRUCTURE REPAIRS CONTINUE AFTER HURRICANE SANDY

FROM: FEDERAL EMERGENCY MANAGEMENT AGENCY
Rockaway Beach, N.Y., Dec. 11, 2012 -- Emergency generators sit abandoned after being submerged in the Hurricane Sandy water surge. FEMA public assistance will often help finance generators to public entities and for public infrastructure. Ed Edahl-FEMA

Rockway Beach, N.Y., Dec. 11, 2012 -- Contractors run new telephone cables to replace equipment ruined by Hurricane Sandy. Contractors are routinely hired to facilitate a more rapid recovery. Ed Edah-FEMA

GEN. DEMPSEY DISCUSSES STRATEGIC REBALANCE

 

FROM: U.S. DEPARTMENT OF DEFENSE

Dempsey Discusses North Korea, U.S. Strategic Rebalance
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

WASHINGTON, Dec. 15, 2012 – The decision by North Korea to conduct another missile launch is unfortunate and counterproductive to stability in the region, the chairman of the Joint Chiefs of Staff said today.

Army Gen. Martin E. Dempsey took a moment during his travel on his annual USO holiday tour for a one-on-one interview with American Forces Press Service to discuss North Korea's recent actions and the U.S. strategic rebalance to the Asia-Pacific.

"My thoughts are that the North Koreans continue to be a force of instability in a region while we're working diligently to increase stability," Dempsey said.

"So their decision to do that [missile launch] was very unwise, very unfortunate and I think the international community increasingly sees them for what they are -- which is a force of instability during a time when they ought to be looking for opportunities to contribute to regional stability," he said.

The chairman also discussed the progress made in the U.S. strategic rebalance to the Asia-Pacific region.

"Last year, we talked about our strategic interests, globally, and how they would change over time," Dempsey said. "But that's an important point -- over time. This wasn't a light switch."

"And so, as we thought about that rebalancing of our interests, kind of horizontally, this year we're looking at the impact of that vertically," he said.

The chairman explained the three-part, vertical aspect of the rebalancing, "which is to say how much of our force structure is forward, how much is rotational and how much is retained in the homeland to provide surge capability for security issues that we may not anticipate."

Asked of the "gains" seen in this strategic pivot, Dempsey described what he perceives as a gain, although he said he doesn't necessarily view the rebalancing in terms of "losses and gains."

"When you use the term 'gains,' I would say the single biggest gain is we've got this, I think, pretty coherent vision of how our security will be shaped between now and [the year] 2020," he said. "[This is] the first step and that's a significant step."

Over the course of the next three or four years, "we've got to put into place a system, processes, resources [and the] intellectual energy to deliver," Dempsey said.

THE "SCAREWARE" INFECTION CRIME

Credit:  U.S. GSA

FROM: U.S. DEPARTMENT OF JUSTICE

Friday, December 14, 2012
Payment Processor for Scareware Cybercrime Ring Sentenced to 48 Months in Prison

WASHINGTON – A Swedish credit card payment processor was sentenced today to 48 months in prison for his role in an international cybercrime ring that netted $71 million by infecting victims’ computers with "scareware" and selling rogue antivirus software that was supposed to secure victims’ computers but was, in fact, useless, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Western District of Washington Jenny A. Durkan and Special Agent in Charge Laura M. Laughlin of the FBI Seattle Division.

Mikael Patrick Sallnert, 37, a citizen of Sweden, was sentenced by Chief U.S. District Judge Marsha J. Pechman in the Western District of Washington. In addition to his prison term, Sallnert was ordered to pay $650,000 in forfeiture.

"Mikael Patrick Sallnert played an instrumental role in carrying out a massive cybercrime ring that victimized approximately 960,000 innocent victims," said Assistant Attorney General Breuer. "By facilitating payment processing, Sallnert allowed the cybercrime ring to collect millions of dollars from victims who were duped into believing their computers were compromised and could be fixed by the bogus software created by Sallnert’s co-conspirators. Cybercrime poses a real threat to American consumers and businesses, and the Justice Department is committed to pursuing cybercriminals across the globe."

"Payment processors like this defendant are the backbone of the cybercrime underworld," said U.S. Attorney Durkan. "As an established businessman, this defendant put a stamp of legitimacy on cyber criminals. He was involved in defrauding thousands of victims, and his actions contributed to insecurities in e-commerce that stifle the development of legitimate enterprises and increase the costs of e-commerce for everyone."

"Partnerships are central to the FBI in accomplishing its mission," said Special Agent in Charge Laughlin. "This cyber crime ring spanned multiple countries—increasing the threat it posed and complicating the necessary law enforcement response. Thanks to the commitment of many foreign partners and FBI entities across the nation, we were able to dismantle that threat and ensure Mr. Sallnert faced justice. The FBI and its partners will continue to work tirelessly until we bring in the remaining perpetrators of this malicious scheme."

Sallnert was arrested in Denmark on Jan. 19, 2012, and extradited to the United States in March 2012. He pleaded guilty on Aug. 17, 2012, to one count of conspiracy to commit wire fraud and one count of accessing a protected computer in furtherance of fraud.

The prosecution of Sallnert is part of Operation Trident Tribunal, an ongoing, coordinated enforcement action targeting international cybercrime. The operation targeted international cybercrime rings that caused more than $71 million in total losses to more than one million computer users through the sale of fraudulent computer security software known as "scareware." Scareware is malicious software that poses as legitimate computer security software and purports to detect a variety of threats on the affected computer that do not actually exist. Users are then informed they must purchase what they are told is anti-virus software in order to repair their computers. The users are then barraged with aggressive and disruptive notifications until they supply their credit card number and pay for the "anti-virus" product, which is, in fact, fake.

The scareware scheme used a variety of ruses to trick consumers into unknowingly infecting their computers with the malicious scareware products, including web pages featuring fake computer scans. Once the scareware was downloaded, victims were notified that their computers were infected with a range of malicious software, such as viruses and Trojans and badgered into purchasing the fake antivirus software to resolve the non-existent problem at a cost of up to $129. An estimated 960,000 users were victimized by this scareware scheme, leading to $71 million in actual losses.

According to Sallnert’s plea agreement, he agreed to establish and operate credit card payment processing services for the scareware ring, knowing that his co-conspirators were intentionally causing fake and fraudulent messages to display on victims’ computers that would fraudulently induce the victims into purchasing the rogue security software. According to court documents, between approximately August 2008 and October 2009, the payment processing mechanisms established by Sallnert processed approximately $5 million in credit card payments on behalf of the scheme.

This case is being investigated by the FBI Seattle Division Cyber Task Force and other FBI entities. The case is being prosecuted by Trial Attorneys Carol Sipperly and Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Norman Barbosa and Kathryn Warma of the Western District of Washington. Substantial assistance was provided by the Criminal Division’s Office of International Affairs.

Critical assistance in the prosecution was provided by the Security Service of Ukraine, German Federal Criminal Police, Netherlands National High-Tech Crime Unit, London Metropolitan Police, Latvian State Police, Lithuanian Criminal Police Bureau, Swedish National Police Cyber Unit, French Police Judiciare, Royal Canadian Mounted Police, Romania’s Directorate for Combating Organized Crime, Cyprus National Police in cooperation with the Unit for Combating Money Laundering and the Danish National Police.

To avoid falling victim to a scareware scheme, computer users should avoid purchasing computer security products that use unsolicited "free computer scans" to sell their products. It is also important for users to protect their computers by maintaining an updated operating system and using legitimate, up-to-date antivirus software, which can detect and remove fraudulent scareware products.

Additional tips on how to spot a scareware scam include:

• Scareware advertising is difficult to dismiss. Scareware purveyors employ aggressive techniques and badger users with pop-up messages into purchasing their products. These fake alerts are often difficult to close and quickly reappear.

• Fake anti-virus products are designed to appear legitimate and can use names such as Virus Shield, Antivirus or VirusRemover. Only install software from trusted sources that you seek out. Internet service providers often make name-brand anti-virus products available to their customers for free.

• Become familiar with the brand, look and functionality of the legitimate anti-virus software that is installed on your computer. This will assist you in identifying scareware.

Computer users who think they have been victimized by scareware should file a complaint with the FBI’s Internet Crime Complaint Center, www.ic3.gov.

EXPORT-IMPORT BANK LOANS $1 BILLION TO FINANCE MANUFACTRUING EQUIPMENT EXPORT TO GERMANY

Part of Schloss Cecilienhof where the Potsdam Conference - which established post-World War II order in Europe - took place in the summer of 1945.

FROM: U.S. EXPORT-IMPORT BANK

Ex-Im Approves $1 Billion Direct Loan to Finance Export
of U.S. Manufacturing Equipment to Germany


Washington, D.C. – In a decision that will support nearly 10,000 high-tech jobs, the Export-Import Bank of the United States (Ex-Im Bank) has approved a $1.03 billion loan to GLOBALFOUNDRIES to finance the export of American-made semiconductor manufacturing equipment to Germany.

The transaction, which is Ex-Im Bank’s third with GLOBALFOUNDRIES and its related entities, will support approximately 9,700 jobs, according to Bank estimates derived from Departments of Commerce and Labor data and methodology.


Four American exporters from California, Massachusetts, and Oregon will participate in the transaction.

Ex-Im Bank’s credit will support the expansion of the GLOBALFOUNDRIES Fab 1 silicon-wafer-fabrication facility in Dresden, Germany. The expansion will increase the company’s capacity to manufacture semiconductor products, which are critical components of personal computers, tablets, and smart phones.

"Our financing allows American manufacturers to capture a larger share of a growing market," said Ex-Im Bank Chairman and President Fred P. Hochberg. "The export sales will in turn support U.S. jobs and increase American competiveness in a vital industry."

Launched in March 2009 and based in Milpitas, Calif., GLOBALFOUNDRIES is the second largest dedicated semiconductor foundry in the world. Its global footprint is supported by major facilities for research, development, and design enablement. GLOBALFOUNDRIES is owned by the Advanced Technology Investment Company.

Applied Materials Inc., one of the exporters involved in the transaction, is a global leader in providing innovative equipment to enable the manufacture of advanced semiconductors. Headquartered in Santa Clara, Calif., Applied Materials has more than 7,000 employees in the U.S., located primarily at corporate, manufacturing, and research-and-development facilities in California, Massachusetts, Montana, and Texas.

"The ability of our customer GLOBALFOUNDRIES to access this financing benefits Applied Materials’ manufacturing and R&D in the United States, as well as our supply chain, at a time of tremendous global competition for high-tech jobs," said Mike Splinter, chairman and CEO of Applied Materials, Inc.

Atradius of the Netherlands is also lending to GLOBALFOUNDRIES as part of an export-credit-agency facility totaling $1.5 billion.

DVIDS - Video - Sec. of Defense Panetta, President Karzai Joint Press Conference

DVIDS - Video - Sec. of Defense Panetta, President Karzai Joint Press Conference

VIDEO: THE DEVASTATING CRISIS IN EASTERN CONGO

FROM:  U.S. STATE DEPARTMENT

RECENT U.S. MARINE CORPS PHOTOS

FROM: U.S. MARINE CORPS

U.S. Marines assigned to Marine Light Attack Helicopter Squadron 169, Marine Aircraft Group 39, 3rd Marine Aircraft Wing (Forward), land at Camp Dwyer, Helmand province, Afghanistan, Nov. 27, 2012. HMLA-169 conducted Operation Aero Hunter in Southern Helmand. U.S. Marine Corps photo by Sgt. Keonaona C. Paulo
　

U.S. Army Capt. Peggy Hu, Zabul Provincial Reconstruction Team civil affairs officer, speaks with a local child during a routine patrol in the Zabul Province, Afghanistan, Nov. 21, 2012. U.S. Air Force photo by Senior Airman Patrice Clarke

KAZAKHSTAN'S INDEPENDENCE DAY

 

Map:  Kazakhstan.  Credit:  CIA

FROM: U.S. STATE DEPARTMENT

Kazakhstan's Independence Day
Press Statement
Hillary Rodham Clinton
Secretary of State
Washington, DC
December 14, 2012

On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the people of Kazakhstan as you celebrate your Independence Day this December 16. The United States was the first country in the world to recognize Kazakhstan's independence in 1991, so this December also marks 21 years of U.S.-Kazakhstani relations.

Today, through our Strategic Partnership Dialogue, the people of the United States and Kazakhstan continue to work closely together to improve economic ties, chart a responsible and reliable energy future, promote innovation through cooperation on science and technology, and enhance regional and global security. In Seoul this past spring, President Obama was privileged to meet with President Nursultan Nazarbayev and honor Kazakhstan’s global leadership on non-proliferation and disarmament issues. The United States is also working with Kazakhstan’s civil society, private sector leaders, and government officials to improve human rights and help build a more stable, secure, democratic, and prosperous future.

As you celebrate this special day, know that the United States joins with you in honoring Kazakhstan's cultural heritage and working together towards a peaceful and prosperous future.
　

Kazakhstan Locator Map.  Credit:  CIA World Factbook

ADDITONAL INFORMATION FROM CIA WORLD FACTBOOK

Ethnic Kazakhs, a mix of Turkic and Mongol nomadic tribes who migrated into the region in the 13th century, were rarely united as a single nation. The area was conquered by Russia in the 18th century, and Kazakhstan became a Soviet Republic in 1936. During the 1950s and 1960s agricultural "Virgin Lands" program, Soviet citizens were encouraged to help cultivate Kazakhstan's northern pastures. This influx of immigrants (mostly Russians, but also some other deported nationalities) skewed the ethnic mixture and enabled non-ethnic Kazakhs to outnumber natives. Independence in 1991 drove many of these newcomers to emigrate. Kazakhstan's economy is larger than those of all the other Central Asian states largely due to the country's vast natural resources. Current issues include: developing a cohesive national identity; expanding the development of the country's vast energy resources and exporting them to world markets; diversifying the economy outside the oil, gas, and mining sectors; enhancing Kazakhstan's economic competitiveness; developing a multiparty parliament and advancing political and social reform; and strengthening relations with neighboring states and other foreign powers.

OVER $50 MILLION IN SETTLEMENTS ENTERED INTO FOR CLEAN UP OF SUPERFUND SITE IN RIALTO, CALIFORNIA

Credit:  U.S. Fish And Wildlife Service.

FROM: U.S. JUSTICE DEPARTMENT

Wednesday, December 5, 2012
US and Local Governments Achieve $50 Million Settlement to Address Contamination at Superfund Site in Rialto, Calif.

WASHINGTON – The United States has entered into two settlements worth more than $50 million to clean up contamination from the B.F. Goodrich Superfund Site in San Bernardino County, Calif. There are a dozen settling parties including Emhart Industries and Pyro Spectaculars, Inc. (PSI), as well as the cities of Rialto and Colton and County of San Bernardino.

The Superfund site has been used to store, test and manufacture fireworks, munitions, rocket motors and pyrotechnics and was added to the EPA’s National Priorities List in September 2009. The area’s groundwater is contaminated with trichloroethylene (TCE) and perchlorate, which have resulted in the closure of public drinking water supply wells in the communities of Rialto and Colton.

"After decades of harmful groundwater contamination and following protracted and costly litigation, the parties responsible for releases of TCE and perchlorate at the BF Goodrich Superfund Site have agreed to a comprehensive long-term plan to clean up the contaminated groundwater at the site," said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division. "The commitment made under the consent decrees announced today will provide immeasurable benefits to the environment and the communities who live in Rialto and Colton, California."

"For decades, the defendants have been polluting this critical source of drinking water with both perchlorate and industrial solvents," said Jared Blumenfeld, EPA’s Regional Administrator for the Pacific Southwest. "Today's historic settlement ensures that the impacted communities in Southern California will finally have their drinking water sources restored."

Under one agreement, Emhart will perform the first portion of the cleanup, which is estimated to cost $43 million over the next 30 years to design, build and operate groundwater wells, treatment systems and other equipment needed to clean up the contaminated groundwater at the site. A significant portion of these funds will come from other settling parties, including the Department of Defense. The cities of Rialto and Colton will receive $8 million.

The Emhart settlement includes the following entities: Emhart Industries Inc., Black & Decker Inc, American Promotional Events Inc., the Department of Defense, the Ensign-Bickford Company, Raytheon, Whittaker Corporation, Broco Inc., and J. S. Brower & Associates Inc. and related companies, as well as the cities of Rialto and Colton and the County of San Bernardino.

As part of the second agreement, six entities, including PSI and its former subsidiary, will pay a combined $4.3 million to the EPA toward cleanup at the site and $1.3 million to the cities of Rialto and Colton and San Bernardino County. The entities involved in this settlement are PSI; Astro Pyrotechnics (a defunct subsidiary of PSI); Trojan Fireworks; Thomas O. Peters and related trusts; and Stonehurst Site, LLC.

EPA used government funds to pay for investigation and clean up work at the site while investigating potentially responsible parties for their role in the contamination. The United States, on behalf of EPA, sued Emhart and PSI, as well as the Goodrich Corporation, the estate of Harry Hescox and its representative, Wong Chung Ming, Ken Thompson Inc. and Rialto Concrete Products, in 2010 and 2011 to require cleanup and recover federal money spent at the site. Prior to EPA’s lawsuit, the cities of Rialto and Colton initiated litigation against many of the settling parties, including the Department of Defense, in 2004.

A company acquired by Emhart manufactured flares and other pyrotechnics at the site for the military in the 1950s. PSI has operated at the site since 1979, designing fireworks shows produced throughout the United States.

TCE is an industrial cleaning solvent. Drinking or breathing high levels may cause damage to the nervous system, liver and lungs. Perchlorate is an ingredient in many flares and fireworks, and in rocket propellant, and may disrupt the thyroid’s ability to produce hormones needed for normal growth and development.

The consent decree for the Emhart settlement (City of Colton v. American Promotional Events Inc., et al.) will be lodged with the federal district court by the U.S. Department of Justice and is subject to a comment period and final court approval. Copies of the proposed decrees are available on the Justice Department website at: www.justice.gov/enrd/Consent_Decrees.html. The PSI settlement is also subject to court approval.

U.S. LABOR DEPT. RELEASES TOOLKIT TO BATTLE CHILD AND FORCED LABOR

Where Are The Kids?  Credit:  U.S. EPA. 

FROM: U.S. DEPARTMENT OF LABOR

US Department of Labor releases toolkit to help businesses combat child and forced labor in global supply chains

WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today introduced Reducing Child Labor and Forced Labor: A Toolkit for Responsible Businesses, the first guide developed by the U.S. government to help businesses combat child labor and forced labor in their global supply chains.

"Encouraging businesses to reduce child and forced labor in their supply chains helps advance fundamental human rights that are at the core of worker dignity, whether here in the U.S. or abroad," Secretary of Labor Hilda L. Solis said in a video message announcing the toolkit.

The free, easy-to-use toolkit was unveiled during an event at Labor Department headquarters for representatives of government, industry, labor and civil society organizations that are at the forefront of efforts to prevent labor abuses in the production of goods. Speakers included Carol Pier, acting deputy undersecretary of ILAB; Eric Biel, acting associate deputy undersecretary of ILAB; and David Abramowitz, vice president of policy and government relations at Humanity United.

The toolkit highlights the need for a social compliance program that integrates a company's policies and practices to ensure that the company addresses child labor and forced labor throughout its supply chain. It provides practical, step-by-step guidance on eight critical elements that will be helpful for companies that do not have a social compliance system in place or those needing to strengthen existing systems. An integrated social compliance system includes: engaging stakeholders and partners, assessing risks and impacts, developing a code of conduct, communicating and training across the supply chain, monitoring compliance, remediating violations, independent review and reporting performance.

HOW TO KNOW IF A NUKE STILL NUKES IF YOU CAN'T NUKE WITH NUKES NO MORE

Photo Credit:  NASA

FROM: U.S. STATE DEPARTMENT
Enhanced U.S. Nuclear Weapon Stockpile Surveillance Tools
Fact Sheet
Bureau of Arms Control, Verification and Compliance
December 13, 2012


Key Point: The use of data from surveillance of our nuclear weapons enables us to predict how the weapons will perform over time without nuclear explosive testing. This capability has improved significantly over the past decade and provides us with the capability to ensure an effective nuclear stockpile.

Surveillance information is critical for the predictive models used in the annual nuclear weapon assessment process. These tools and the detailed quantitative modeling they support serve as key elements of the capability to maintain a safe, secure and effective U.S. nuclear weapons stockpile without underground nuclear explosive testing

The National Nuclear Security Administration (NNSA) annual assessment process has evolved significantly since the end of underground nuclear explosive testing to ensure an effective nuclear weapons stockpile. The current approach aims to achieve a comprehensive, science-based understanding of nuclear weapon systems. Surveillance tools and models play critical roles in providing information essential to assessing weapon safety, security, and performance changes that would impact military effectiveness without performing underground nuclear explosive tests.

These surveillance tools aid in the understanding of two conditions of weapons systems: the "as-built" and "as-aged" conditions. The "as-built" condition reflects the frequency and severity of original design or manufacturing defects. The "as-aged" condition reflects the evolution of age-related changes in materials, components, and subsystems that can alter performance. Over the last few years, several advances in this area have contributed to a better understanding of the condition of our existing nuclear weapons and the ways in which the current condition could affect safety, reliability or performance.

Through the weapons surveillance program, we have in-depth knowledge of the core plutonium components housed within weapons, also referred as "pits," by using technologies such as laser gas sampling, and high-resolution pit computed tomography (commonly referred to as a Pit CT). System tests also assess the functionality of all major non-nuclear components.

As an example, Pit CT enables the evaluation of the nuclear weapon’s "pit" to assess aging issues that were previously not detectable. Data collected from these and other advanced diagnostic tools help to ensure that predictive models reflect both the "as-built" condition and age-related changes. With this information, models can be used to assess changes in performance relative to the design baseline.

ISS RECAP FOR DECEMBER 14, 2012

FROM:  NASA

NEW YORK STATE HURRICANE SANDY SURVIVOR APPROVED FUNDS TOP $780 MILLION

 

Photo:  Just After Hurricane Sandy Struck New York State.  Credit:  U.S. Army.

FROM: U.S. FEDERAL EMERGENCY MANAGEMENT AGENCY

Approved Funds for New York State Hurricane Sandy Survivors Tops $780 Million
December 14, 2012

NEW YORK — Since Hurricane Sandy struck New York, the Federal Emergency Management Agency’s mission has been to help individuals and families recover from the disaster and will continue to support residents until the mission is completed. As of today, FEMA has approved more than $784 million in individual assistance for New York Sandy survivors.

FEMA is reaching out to all 13 designated counties, focusing on the hardest hit areas of New York state. Assistance to the hardest-hit areas includes:
Bronx $2 million
Kings $169.1 million
Nassau $257.8 million
New York $11.5 million
Queens $200.4 million
Richmond $80.6 million
Suffolk $57.9 million
FEMA provides the following snapshot of the disaster-recovery effort as of December 14:

FEMA is reaching out to all 13 designated counties, focusing on the hardest hit areas of New York state. Assistance to the hardest-hit areas includes:
Bronx $2 million
Kings $169.1 million
Nassau $257.8 million
New York $11.5 million
Queens $200.4 million
Richmond $80.6 million
Suffolk $57.9 million
FEMA provides the following snapshot of the disaster-recovery effort as of December 14:
More than 253,000 New Yorkers have contacted FEMA for information or registered for assistance with FEMA and more than $784 million has been approved. More than 128,000 people have applied through the online application site at www.DisasterAssistance.gov, or on their smart phone at m.fema.gov.
26 Disaster Recovery Centers are open in the affected areas. These include mobile sites as well as fixed sites, and to date more than 94,000 survivors have been assisted at DRCs in New York.
114 inspectors in the field have completed 160,986 home inspections – completing 98 percent of inspections.
2 Points of Distribution or PODs remain open providing meals, water and blankets, both in Nassau County.
13 New York counties are designated for both individual and public assistance. These are Bronx, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster and Westchester.
The U.S. Small Business Administration has approved nearly $163 million in disaster loans to homeowners, renters and businesses. The SBA has staff members at every FEMA/State Disaster Recovery Center and 19 Business Recovery Centers in the New York area to provide one-on-one help to business owners seeking disaster assistance.

U.S. SECRETARY OF DEFENSE PANETTA MEETS WITH AFGHAN LEADERS

Morning In Afghanistan.  From:  U.S. Army

FROM: U.S. DEPARTMENT OF DEFENSE

Panetta Meets with U.S., Afghan Leaders
By Cheryl Pellerin
American Forces Press Service

KABUL, Afghanistan, Dec. 13, 2012 - Over two days in Afghanistan, Defense Secretary Leon E. Panetta has met with U.S. and Afghan leaders here and in Kandahar, gathering information he says will help inform the decision President Barack Obama will soon make on troop levels there after 2014.

Last night here Panetta spent an hour-long meeting with Marine Corps Gen. John R. Allen, commander of the International Security Assistance Force and U.S. Forces Afghanistan.

Afterward, Panetta and Allen attended a dinner with other military leaders. The event was closed to press but according to a pool report Panetta and Allen each made comments while photographs were being taken before dinner.

Panetta walked around the table, shaking hands with each general officer in attendance, including Army Maj. Gen. Anthony Thomas, commanding general at Special Operations Joint Task Force-Afghanistan; Army Maj. Gen. William C. Mayville, ISAF Regional Command-East commander; Army Lt. Gen. Daniel P. Bolger, commander of the NATO Training Mission-Afghanistan; Army Maj. Gen. Robert B. Abrams, commander of ISAF Regional Command-South and others.

Allen said the leaders here were honored to have Panetta with them for a candid conversation and to hear the secretary's guidance and views.

Panetta wished them all the best for the holidays, adding that the people of the United States appreciate their service and sacrifice.

The secretary said he traveled to Afghanistan to understand the "situation on the ground" and plans to meet with Afghan leaders in advance of President Obama's upcoming decision about future troop levels in post-2014 Afghanistan.

This morning, Panetta met with Afghan Minister of Defense Bismillah Khan Mohammadi and Afghan Interior Minister Mujtaba Patang here, then flew to Kandahar Air Field to meet with the leadership of Regional Command-South, including Abrams.

Afterward the secretary spoke with and took questions from troops who serve at RC-South headquarters.

The RC-South area of responsibility includes Kandahar, Uruzgan, Zabul and Daykundi provinces. The U.S. Army's 3rd Infantry Division soldiers at headquarters are joined by troops from NATO member nations Albania, Bulgaria, Canada, France, Romania, Slovakia, the United Kingdom and the United States. Non-NATO member nations Australia, Jordan and Singapore also have troops there.

Panetta stood in near-freezing temperatures with the troops around him, talking about the progress made in Afghanistan.

"As far as I'm concerned, 2011 was a real turning point. We've seen levels of violence go down. We've seen that the Taliban has found it almost impossible to regain any of the territory that they lost during that period," he said.

The Afghan army now conducts 85 percent of patrols, he said.

"That's moving it in the right direction," Panetta said. "They're taking over more and more of the responsibility, which has to happen if we're eventually going to have an Afghanistan that can secure and govern itself."

Every country that has troops in Afghanistan has spilled blood over nearly 11 years to complete the mission there, the secretary said.

"The bottom line is that those sacrifices -- all of those sacrifices -- are not in vain," Panetta said. "We have made good progress in achieving the mission that we're embarked on, and it's because of all of you."

"That's why I'm here -- to say thank you for all of your service and for your sacrifice. Thank you for giving back -- giving back in duty is the kind of service that is at the heart of our strength," he added.

"Military strength, as far as I'm concerned ... none of that would be worth a damn without the men and women in uniform who serve this country. You are the real strength of our military power," Panetta said.

In response to a question from one of the troops, Panetta said his proudest achievements as defense secretary include working with the Joint Chiefs and other military leaders to formulate a new defense strategy for the future, and helping open up service in the military to anyone who wants to serve by expanding roles for women and in 2011 ending the Don't Ask, Don't Tell policy.

"I think that when it comes to serving the United States of America, anybody who wants to serve this country ought to have the opportunity to do it," he said.

After Panetta and his group left Kandahar and returned to Kabul, insurgents detonated a vehicle bomb near Kandahar Airfield, killing one service member and wounded three others and several Afghans.

Hanukkah at the White House 2012 | The White House

Hanukkah at the White House 2012 | The White House

SEC ALLEGES CREATION OF FRAUDULENT VALUATIONS OF COMPANY STOCK

Photo:  Patterns In Nature.  Credit:  National Science Foundation.

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

SEC Charges Massachusetts Company, CEO and Promoters With $9 Million Securities Fraud


The Securities and Exchange Commission filed an enforcement action today in federal court in Boston against BioChemics, Inc., a biopharmaceutical company based in Danvers, Massachusetts, its CEO and two individuals it paid to solicit investors. The SEC alleges, among other things, that the defendants made false statements to investors about collaborations with major pharmaceutical companies and the status and results of drug trials of the company’s main product, and that they created fraudulent valuations of the company’s stock in order to raise millions of dollars from investors. The action charges BioChemics, its CEO John Masiz of Topsfield, Massachusetts, Craig Medoff of New York, New York and Gregory Kroning of Norwood, New Jersey, with violating the federal securities laws in a fraudulent scheme that raised at least $9 million from 70 investors in 19 states from at least 2009 until 2012.

According to the SEC’s complaint, filed in the United States District Court for the District of Massachusetts, BioChemics purportedly makes a transdermal drug delivery system. The defendants allegedly told investors that BioChemics was engaged in active research and development collaborations with major pharmaceutical companies, that it had two drugs under FDA review, and that it was conducting specific clinical trials—all of which was false. According to the complaint, when BioChemics finally did conduct one clinical trial, it misrepresented the results of that trial. The SEC’s complaint further alleges that defendants Masiz and Medoff created and gave to investors fraudulent valuations setting the worth of BioChemics at between $500 million and $2 billion. However, according to the complaint, the valuations had no reasonable basis and the defendants’ representations that the valuations had been developed by reputable independent investment banks were false. In addition, the complaint alleges that defendants told investors their money would be used to fund clinical trials and for operating expenses, but in fact used some investor funds to pay for personal expenses for Masiz including meals, massages, clothes and sporting goods and to make interest-free loans of over $200,000 to Kroning in addition to paying for his personal expenses including a leased BMW.

Masiz and Medoff have previously been sued by the Commission in connection with earlier securities frauds. Masiz was a defendant in a 2004 SEC enforcement action alleging false and misleading statements by VASO Active Pharmaceuticals, a BioChemics subsidiary. A final judgment by consent was entered against Masiz that permanently enjoined him from violating the antifraud provisions of the federal securities laws. Medoff was a defendant in a 1993 SEC enforcement action alleging the fraudulent offering of unregistered securities. That case resulted in a final judgment by consent against Medoff in 1994 that permanently enjoined him from violating the antifraud provisions of the federal securities laws. The Commission also issued an Order in January 1995 barring Medoff from associating with, among others, brokers, dealers, and investment advisers. In a separate case involving different conduct, Medoff also pled guilty to criminal securities fraud charges in 1995.

The complaint charges all defendants with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 thereunder and also charges Kroning and Medoff with violating Section 15(a) of the Exchange Act by acting as unlicensed brokers and Medoff with violating Section 15(b) of the Exchange Act by acting as a broker after being permanently barred from the industry in a previous action by the Commission. The complaint seeks injunctive relief, disgorgement, and civil penalties, as well as an order barring Masiz from serving as an officer or director of any public company. The complaint also seeks an order barring Masiz and Medoff and any entity they own or control from participating in the issuance, offer, or sale of any security aside from their own personal trading accounts.

MARINE VOLUNTEERS TIME AND FISHING SKILLS WITH WOUNDED VETS

 

Marine Corps Cpl. Joshua T. Shakeshaft, a combat engineer and head instructor for improvised explosive device awareness at the Battle Skills Training School on Camp Lejeune, N.C., accepts the 2012 Veteran of the Year award from Mayor Sammy Phillips of Jacksonville, N.C., during a ceremony held Nov. 20, 2012. Shakeshaft received the award for his ongoing efforts to help wounded veterans. Photo by Lisa Miller

FROM: U.S. DEPARTMENT OF DEFENSE

Face of Defense: Marine Shares Love of Fishing With Injured Vets
By Marine Corps Cpl. Paul Peterson
2nd Marine Logistics Group

CAMP LEJEUNE, N.C., Dec. 13, 2012 - They called his name, and the rest was just a blur

Marine Corps Cpl. Joshua T. Shakeshaft, a combat engineer and head instructor for improvised explosive device awareness at the Battle Skills Training School here, walked to the head of the council chambers at City Hall in Jacksonville, N.C., Nov. 20 to accept the 2012 Veteran of the Year award.

Jacksonville is proud of its unique bond with local veterans, said Mayor Sammy Phillips, who personally handed the award to Shakeshaft. Every year since 1988, the city takes a moment to recognize veterans from each of the city's veteran organizations for demonstrating outstanding volunteerism, support and leadership.

More than 100 people filled the council chambers as Phillips thanked each of the 30 recipients for their continued service to the local community and the nation.

"I was perfectly happy with a pat on the back," said Shakeshaft, who accepted the award as the nominee for Heroes on the Water, an organization that provides wounded and disabled veterans with an outlet for stress though kayak fishing. "The last thing I ever expected was to get an award from the mayor."

Shakeshaft, a Castle Rock, Colo., native and veteran of Operation Enduring Freedom, first became active with the organization after returning to the states to be with his mother, who was dying of cancer.

He instantly found an outlet for his own combat stress and personal loss through an activity he loved from his time back home: fishing.

"He was hooked the very first time he went out with us, and he has gone out ever since," said Patrick Curley, one of Shakeshaft's personal mentors and the Chrystal Coast Chapter coordinator for Heroes on the Water. "He has found something he enjoys doing, and now he is sharing it with other people."

Shakeshaft saw his participation as a personal means of healing and a way to help his fellow veterans struggling with visible and unseen wounds. It increasingly consumed his free time.

"No one here knew I was taking veterans out fishing every weekend," Shakeshaft said. "I don't expect recognition for it. I'm doing it for me. I'm doing it for my gratification -- helping people helps me. I got that from my mom."

Shakeshaft continues to share his expertise with IEDs as an instructor during his working hours here, but his weekends belonged to the waterways of North Carolina.

"It has changed my life," he said. "It is like the brotherhood you see when you are in combat ... [whether] it is a double amputee or someone who has post-traumatic stress disorder, everybody can relate with each other."

Shakeshaft said his wife, Traci, is his biggest supporter. Fishing and volunteering cut into the couple's small amount of free time, but she understands its importance and even tells him to go out.

He takes particular joy in seeing what he calls a "hero's moment," when a wounded warrior finds a few minutes of peaceful sleep in a kayak while his feet dangle in the water.

Shakeshaft's contributions to the community quickly grew after his first volunteering experience with the group. He regularly brought new participants to events and became increasingly involved in other volunteer opportunities.

Whether it is mentoring local youth, participating in veterans meetings and parades or simply providing an open ear to a fellow service member, he said the gratification of doing something good helps him heal.

Shakeshaft is planning additional outreach programs. He hopes someday to return to Colorado, where he can help veteran communities find some of the peace he experiences nearly every weekend in North Carolina.