"BATTERIES" AND SENATOR CARL LEVEN

FROM: CARL LEVEN'S WEBSITE, SENATE CHAIRMAN OF THE ARMED SERVICES COMMITTEE

Battery Effort Helps Secure Our Economic Future
Michigan's economic future, and indeed the nation's, depends on winning a race against our economic competition around the world. That race is to find the technologies that will power homes, vehicles and businesses in the decades to come. Win that race, and we claim the economic high ground.

That's why an announcement in November by the Department of Energy was so important to Michigan. Energy Secretary Steven Chu announced the Joint Center for Energy Storage Research, a consortium of government, university and private-sector research labs aimed at revolutionizing battery technology.

Fittingly, Michigan is playing a key role in the effort. The consortium, headquartered at Argonne National Laboratory in Illinois, will include research hubs at Johnson Controls in Holland, and on the University of Michigan campus. Dow Chemical in Midland is also a key corporate partner.

The JCESR is nothing short of a Manhattan Project-styled effort to blow through the technical and economic limitations imposed by existing battery technology. Despite enormous progress that has allowed impressive accomplishments in hybrid vehicles and plug-in electric vehicles such as the Chevy Volt, today’s batteries are still bigger, heavier, more expensive and lower capacity than we’d like. With technical improvements, we can bring down costs, reduce our dependence on imported oil and protect our environment.

The answer to this challenge is an effort that, as my colleague Sen. Richard Durbin of Illinois put it, "brings together, under a single organizational roof, the world’s leading scientists, engineers and manufacturers in energy storage and provides them with the tools, resources and market reach necessary to produce major breakthroughs."

And if you're bringing together world-class experts in battery technology, you’re right in Michigan’s wheelhouse. Our universities are hubs of research on this and other automotive technologies. Companies such as Johnson Controls, Dow, the Big Three automakers, Sakti3, Compact Power and others are leading the drive to develop and market new battery technologies. And no place on earth can rival Michigan’s concentration of scientific, engineering and workforce talent.

So, at Johnson Controls' lithium-ion battery manufacturing facility in Holland, technical experts will work on ways to commercialize next-generation technology. At U-M, engineers and chemists will simulate new battery materials and build large-scale prototypes. Dow will bring its world-leading skill in chemistry and energy storage.

It's impressive that President Obama's administration and these companies and research facilities have made this commitment. But the truth is, we have little choice in terms of our economy. Advanced battery technology is going to dominate the future of the automotive industry. It's vitally important to reducing our dependence on foreign oil, a dependence that doesn't just damage our environment, but threatens our economy and our national security.

This effort will no doubt have its ups and downs, just as any innovative new technology would. It's important that we keep in mind our long-term goal: Innovation that ensures these technologies are made in America, by American workers.

We're not the only country seeking these breakthroughs. Foreign companies are too, and they have financing and research support from governments. If our own government refuses to make the same kinds of investments in our companies and research labs, we'll allow those offshore companies and governments to take this vital economic high ground. If we want the next generation of vehicle technology to be manufactured here in America, these investments are a necessity.

Thanks to JCESR and other key investments, we're on the way to winning this economic competition. That’s good news for Michigan workers, Michigan companies, the U.S. auto industry and America's economic future.

FORMER RWANDAN PLANNING MINISTER CONVICTED OF GENOCIDE

Map:  Rwanda.  Credit:  CIA World Factbook. 

FROM: U.S. DEPARTMENT OF STATE

ICTR Convicts Former Rwandan Planning Minister for Genocide
Press Statement
Victoria Nuland
Department Spokesperson, Office of the Spokesperson
Washington, DC
December 20, 2012

Today, the Trial Chamber of the International Criminal Tribunal for Rwanda (ICTR) convicted Augustin Ngirabatware, a former government minister in Rwanda, of genocide, incitement to commit genocide, and rape as a crime against humanity. He was sentenced to 35 years in prison.

The United States welcomes this ruling as an important step in providing justice and accountability for the Rwandan people and the international community. As the Rwandan minister of planning at the time of the genocide in 1994, Mr. Ngirabatware was accused of using funds from his department to finance the genocide. He was a fugitive from justice until his arrest in Germany in 2007. With the conclusion of this trial, judgments have now been rendered as to all of the 81 arrested persons who were tried at the ICTR. We commend the ICTR for carrying out its trials according to the principles of fairness and due process; and for its efficient steps towards completing its work.

There are still nine ICTR fugitives at-large, including three high level fugitives who will be prosecuted by the residual mechanism of the ICTR upon capture: Felicien Kabuga, Protais Mpiranya, and Augustin Bizimana. The other six fugitives are slated to be tried in Rwandan courts once they are captured. Yesterday’s conviction sends a strong signal that the international community will not rest until the remaining fugitives are brought to account. The United States continues to offer monetary rewards of up to $5 million for information leading to the arrest or transfer of all ICTR fugitives, whether those individuals will be prosecuted by the residual mechanism of the ICTR or in Rwandan courts. We urge all countries to redouble their cooperation with the ICTR so that fugitives can be arrested. Those who harbor fugitives obstruct justice and stand on the wrong side of history.

Midiendo la presión intracraneal sin dolor de cabeza

Midiendo la presión intracraneal sin dolor de cabeza

Space research has developed a new method to measure the pressure within the skull using simple waves of sound from headphones. The device is an effective warning system for patients in recovery phase which have undergone any damage to the head or some kind of brain surgery early.

NEWS FROM AFGHANISTAN FOR DECEMBER 20, 2012

From:  U.S. Department Of Defense.

FROM: U.S. DEPARTMENT OF DEFENSE
Combined Force Arrests 15 Insurgents in Afghanistan
From an International Security Assistance Force Joint Command News Release

KABUL, Afghanistan, Dec. 20, 2012 - An Afghan and coalition security force arrested 15 insurgents in the Bati Kot district of Afghanistan's Nangarhar province during a search for a Taliban facilitator today, military officials reported.

Officials said the sought-after facilitator is responsible for manufacturing and emplacing improvised explosive devices throughout Nangarhar province.

In Afghanistan operations yesterday:

-- A combined force killed the Taliban leader, Mahjur, along with one other insurgent in the Nari district of Kunar province. Mahjur was responsible for planning attacks against Afghanistan government officials and coalition forces. He also acquired and facilitated the movement of IED-making components, other weapons and ammunition used in attacks.

-- In the Alingar district of Laghman province, a combined force killed one insurgent and detained one suspect during a search for a Taliban leader. The sought-after Taliban leader is responsible for attacks against Afghan government officials and coalition forces.

Also, a Haqqani leader was arrested Dec. 17 in the Pul-e 'Alam district of Logar province. The arrested Haqqani leader purchased weapons and ammunition for insurgents and was directly involved in planning and coordinating attacks against Afghan and coalition forces.

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT

FROM: U.S. DEPARTMENT OF LABOR

SEASONALLY ADJUSTED DATA

In the week ending December 15, the advance figure for seasonally adjusted initial claims was 361,000, an increase of 17,000 from the previous week's revised figure of 344,000. The 4-week moving average was 367,750, a decrease of 13,750 from the previous week's unrevised average of 381,500.

The advance seasonally adjusted insured unemployment rate was 2.5 percent for the week ending December 8, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending December 8 was 3,225,000, an increase of 12,000 from the preceding week's revised level of 3,213,000. The 4-week moving average was 3,240,500, a decrease of 33,500 from the preceding week's revised average of 3,274,000.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 400,422 in the week ending December 15, a decrease of 28,766 from the previous week. There were 421,103 initial claims in the comparable week in 2011.

The advance unadjusted insured unemployment rate was 2.5 percent during the week ending December 8, unchanged from the prior week's unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,231,115, an increase of 56,406 from the preceding week. A year earlier, the rate was 2.9 percent and the volume was 3,628,343.

The total number of people claiming benefits in all programs for the week ending December 1 was 5,402,429, a decrease of 238,637 from the previous week. There were 7,152,130 persons claiming benefits in all programs in the comparable week in 2011.

Extended Benefits were only available in New York during the week ending December 1.

Initial claims for UI benefits filed by former Federal civilian employees totaled 2,054 in the week ending December 8, an increase of 28 from the prior week. There were 2,831 initial claims filed by newly discharged veterans, a decrease of 125 from the preceding week.

There were 21,340 former Federal civilian employees claiming UI benefits for the week ending December 1, an increase of 562 from the previous week. Newly discharged veterans claiming benefits totaled 39,480, a decrease of 2,017 from the prior week.

States reported 2,096,545 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending December 1, a decrease of 97,708 from the prior week. There were 2,941,157 persons claiming EUC in the comparable week in 2011. EUC weekly claims include first, second, third, and fourth tier activity.

The highest insured unemployment rates in the week ending December1 were in Alaska (6.2), New Jersey (3.9), Pennsylvania (3.9), Puerto Rico (3.7), Montana (3.4), California (3.3), Nevada (3.3), Oregon (3.3), Connecticut (3.2), and Wisconsin (3.1).

The largest increases in initial claims for the week ending December 8 were in California (+5,952), Florida (+749), Ohio (+743), Rhode Island (+197), and Colorado (+161), while the largest decreases were in New York (-11,295), Pennsylvania (-11,247), North Carolina (-8,564), Wisconsin (-5,726) and Georgia (-5,317).

Incubation à Redu de jeunes pousses à orientation spatiale

Incubation à Redu de jeunes pousses à orientation spatiale

NEW YORK SANDY SURVIVORS RECEIVE OVER $1 BILLION BROM FEMA AND SBA

Breezy Point, N.Y., Dec. 15, 2012 -- The close-knit community of Breezy Point lost more than one hundred homes to fire during Hurricane Sandy. FEMA is providing ongoing support and resources to the Queens, NY community. Andre R. Aragon-FEMA

FROM:  U.S. FEDERAL EMERGENCY MANAGEMENT AGENCY

FEMA, SBA Assistance to New York Survivors Tops $1 Billion

NEW YORK – Federal disaster assistance for Hurricane Sandy survivors tops $1 billion in New York.

The Federal Emergency Management Agency has approved grants of more than $802 million for rental assistance, home repairs and other needs. The U.S. Small Business Administration has approved low-interest disaster loans of more than $232 million to help homeowners and renters recover from uninsured property loss and other damages.

SBA has also issued loans totaling nearly $17 million to help business owners recover from damages caused by Hurricane Sandy.

"This billion dollar milestone follows President Obama’s words to me," said Michael F. Byrne, FEMA federal coordinating officer. "He told me ‘stay on it’ after he saw the devastation first hand. As a New Yorker, I can speak for FEMA and all of our partners when I promise that we will stay on it right through recovery."

Hurricane Sandy caused damage in 13 New York counties that were designated for Individual Assistance grants to help survivors repair homes, replace lost property and pay for other essential disaster-related needs.

The 13 counties designated for Individual Assistance include: Bronx, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster and Westchester.

, 2013 to register for federal disaster assistance.

President Barack Obama declared a major disaster on Oct. 30, 2012 following Hurricane Sandy’s impact on New York beginning Oct. 27.

U.S. DEPUTY SECRETARY BURN'S TESTIMONY ON BENGHAZI ATTACK



Map:  Libya.  From:  CIA World Factbook

FROM: U.S. DEPARTMENT OF STATE

Benghazi: The Attack and the Lessons Learned
Testimony
William J. Burns
Deputy Secretary
Thomas Nides
Deputy Secretary for Management and Resources
Opening Remarks Before the Senate Committee on Foreign Relations
Washington, DC
December 20, 2012
　

DEPUTY SECRETARY BURNS: Thank you. Mr. Chairman, Senator Lugar, members of the committee, thank you for this opportunity. Secretary Clinton asked me to express how much she regrets not being able to be here today. And I’d like to join you, Mr. Chairman, on behalf of the Secretary and the men and women of the Department of State in expressing our deep respect and admiration for the many years of service of Senator Lugar to our nation.

Since the terrorist attacks on our compounds in Benghazi, State Department officials and senior members from other agencies have testified in four congressional hearings, provided more than 20 briefings for members and staff, and submitted thousands of pages of documents, including the now-full-classified report of the Accountability Review Board. Secretary Clinton has also sent a letter covering a wide range of issues for the record. So today I would like to highlight just a few key points.

The attacks in Benghazi took the lives of four courageous Americans. Ambassador Stevens was a friend and a beloved member of the State Department community for 20 years. He was a diplomat’s diplomat, and he embodied the very best of America. Even as we grieved for our fallen friends and colleagues, we took action on three fronts.

First, we took immediate steps to further protect our people and our posts. We stayed in constant contact with embassies and consulates around the world facing large protests, dispatched emergency security teams, received reporting from the intelligence community, and took additional precautions where needed. You will hear more about all this from my partner, Tom Nides.

Second, we intensified a diplomatic campaign aimed at combating the threat of terrorism across North Africa. We continue to work to bring to justice the terrorists responsible for the attacks in Benghazi, and we are working with our partners to close safe havens, cut off terrorist finances, counter extremist ideology, and slow the flow of new recruits.

And third, Secretary Clinton ordered an investigation to determine exactly what happened in Benghazi. I want to convey our appreciation to the Accountability Review Board’s chairman and vice chairman, Ambassador Tom Pickering and former Chairman of the Joint Chiefs of Staff Admiral Mike Mullen, and also Hugh Turner, Richard Shinnick, and Catherine Bertini. The board’s report takes a clear-eyed look at serious systemic problems, problems which are unacceptable, problems for which, as Secretary Clinton has said, we take responsibility, and problems which we have already begun to fix.

Before Tom walks you through what we are doing to implement fully all of the board’s recommendations, I would like to add a few words based on my own experiences as a career diplomat in the field. I have been a very proud member of the Foreign Service for more than 30 years, and I have had the honor of serving as a chief of mission overseas. I know that diplomacy, by its very nature, must sometimes be practiced in dangerous places. As Secretary Clinton has said, our diplomats cannot work in bunkers and do their jobs. When America is absent, there are consequences: Our interests suffer and our security at home is threatened. Chris Stevens understood that as well as anyone. Chris also knew that every chief of mission has the responsibility to ensure the best possible security and support for our people.

As senior officials here in Washington, we share that profound responsibility. We have to constantly improve, reduce the risks our people face, and make sure they have all the resources they need. That includes the men and women at the State Department’s Diplomatic Security service. I have been deeply honored to serve with many of these brave men and women. They are professionals and patriots who serve in many places where there are no Marines on post and little or no U.S. military presence in country. Like Secretary Clinton, I trust them with my life.

It’s important to recognize that our colleagues in the Bureaus of Diplomatic Security and Near East Affairs and across the Department, at home and abroad, get it right countless times a day, for years on end, in some of the toughest circumstances imaginable. We cannot lose sight of that. But we learned some very hard and painful lessons in Benghazi. We are already acting on them. We have to do better.

We owe it to our colleagues who lost their lives in Benghazi. We owe it to the security professionals who acted with such extraordinary heroism that awful night to try to protect them. And we owe it to thousands of our colleagues serving America with great dedication every day in diplomatic posts around the world. We will never prevent every act of terrorism or achieve perfect security, but we will never stop working to get better and safer. As Secretary Clinton has said, the United States will keep leading and keep engaging around the world, including in those hard places where America’s interests and values are at stake.

Thank you very much.

CHAIRMAN KERRY: Secretary Nides.

DEPUTY SECRETARY NIDES: Mr. Chairman, Senator Lugar, members of the committee, I also want to thank you for this opportunity. I want to reiterate what Bill has said. All of us have a responsibility to provide the men and women who serve this country with the best possible security and support. From senior Department leadership setting the priorities, the supervisors evaluating security needs, to the Congress appropriating sufficient funds, we all share this responsibility. Secretary Clinton has said that, as Secretary of State, this is her greatest responsibility and her highest priority.

Today I will focus on the steps we have been taking at Secretary Clinton’s direction, and that we will continue to take. As Bill said, the board reports takes a clear-eyed look at serious, systemic problems for which we take responsibility and that we have already begun to fix. We are grateful for the recommendations from Ambassador Pickering and his team. We accept every one of them – all 29 recommendations. Secretary Clinton has charged my office with leading a task force that will ensure that all 29 are implemented quickly and completely, and to pursue steps above and beyond the board’s report.

The Under Secretary of Political Affairs, the Under Secretary for Management, the Director General of the Foreign Service and the Deputy Legal Advisor will work with me to drive this forward. The task force has already met to translate the recommendation into actual 60 specific action items. We’ve assigned every single one to the responsible bureau for immediate implementation, and several will be completed by the end of this calendar year. Implementation of each and every recommendation will be underway by the time the next Secretary of State takes office. There will be no higher priority for the Department in the coming weeks and months. And should we require more resources to execute these recommendations, we’ll work closely with the Congress to ensure that they are met.

As I said, Secretary Clinton wants us to implement the ARB’s findings and do no more. Let me offer some very clear specifics. For more than 200 years, the United States, like every other country around the world, has relied on host nations to provide security for embassies and consulates. But in today’s evolving threat environment, we have to take a new and harder look at the capabilities and the commitments of our hosts. We have to re-examine how we operate in places facing emerging threats, where national security forces are fragmented or may be weak.

So at Secretary Clinton’s direction, we have moved quickly to conduct a worldwide review of our overall security posture, with particular scrutiny on a number of high-threat posts. With the Department of Defense, we’ve deployed five interagency security assessment teams, made up of diplomatic and military security experts, to 19 posts in 13 countries – an unprecedented cooperation between our Departments at a critical time. These teams have provided us a roadmap for addressing emergency – emerging security challenges.

We’re also partnering with the Pentagon to send 35 additional Marine detachments – that’s about 225 Marines – to medium and high-threat posts where they’ll serve visible deterrence to hostile acts. This is on top of the approximate 150 detachments we have already deployed. We are aligning our resources to our 2013 budget requests to address physical vulnerabilities and reinforce structures wherever needed and to reduce risk from fire.

And let me add, we may need your help in ensuring that we have the authority to streamline the usual processes that produce faster results. We’re seeking to hire more than 150 additional Diplomatic Security personnel, an increase of about 5 percent, and to provide them with the equipment and training they need. As the ARB recommended, we will target them squarely at security at our high-threat posts.

I want to second Bill’s praise for these brave security professionals. I have served in this Department for only two years, having come from the private sector. However, I have traveled to places like Iraq and Afghanistan and Pakistan, and I have seen firsthand how these dedicated men and women risk their lives every day. We owe them a debt of gratitude as they go to work every day to protect us in more than 270 posts around the world. And as we make these improvements in the field, we’re also making changes here in Washington. We’ve named the first-ever Deputy Assistant Secretary for State for High-Threat Posts within the Bureau of Diplomatic Security. We’re updating our deployment procedures to increase the number of experience and well-trained staff serving in those posts. And we’re working to ensure that the State Department makes decisions about where our people operate in a way that reflects our shared responsibility for security.

Our regional assistant secretaries were directed – directly involved in our interagency security assessment process, and will assume greater accountability for securing our people and our posts. We will provide the Congress with a detailed report on every step we’re taking to improve security and implement the board’s recommendations. We’ll look to you for support and guidance as we do this.

Obviously, part of this is about resources. We must equip our people with what they need to deliver results safely, and will work with you as needs arise. But Congress has a bigger role than that. You have visited our posts. You know our diplomats on the ground and the challenges they face. You know our vital national security interests are at stake, and that we are all in this together. We look forward to working with you.

Thank you, Mr. Chairman, for your support and counsel and for this opportunity to discuss these important matters. We’d both be happy to take your questions.

U.S. SECRETARY OF DEFENSE PANETTA WARNS ABOUT UPCOMMING SEQUESTRATION EFFECTS

FROM: U.S. DEPARTMENT OF DEFENSE

Panetta Memo Describes Possible Sequestration Effects
By Jim Garamone
American Forces Press Service

WASHINGTON, Dec. 20, 2012 - While many remain hopeful that Congress and the administration will reach a deal that avoids sequestration, Defense Secretary Leon E. Panetta has issued a memo describing the potential implications of going over the fiscal cliff.

Planning for the effects of an across-the-board cut in defense spending as part of the Budget Reduction Act of 2011 "is only prudent," said DOD officials. Under the law, the reductions are due to take place Jan. 2, 2013.

Panetta said it is too early to assess what effects sequestration will have. He did say that it will not affect military personnel or military end strength as President Barack Obama announced his intent to exempt the military personnel accounts from sequestration last summer.

The secretary did clarify the potential implications of sequestration in his memo.

"If it occurs, sequestration will reduce our budgetary resources for the remainder of the fiscal year," the memo says. "These cuts, while significant and harmful to our collective mission as an agency, would not necessarily require immediate reductions in spending."

There is no threat of a government shutdown because of sequestration, Panetta said in the memo.

"Everyone will show up for work on January 3, 2013, and continue to drive on," said Army Lt. Col. Elizabeth Robbins, a Pentagon spokeswoman.

The memo states that there will be no immediate civilian personnel actions such as furloughs.

"Should we have to operate under reduced funding levels for an extended period of time, we may have to consider furloughs or other actions in the future," Panetta said in the memo. "But let me assure you that we will carefully examine other options to reduce costs within the agency before taking such actions."

If the department does need to take these actions, affected employees will receive all appropriate notifications, the secretary noted.

The Defense Department is already reducing its budget by $487 billion over 10 years. The Budget Control Act calls for a further $500 billion in cuts at DOD unless Congress and the administration pass a new law averting it.

"Sequestration was never intended to be implemented and there is no reason why both sides should not be able to come together and prevent this scenario," Panetta wrote.

THREE MORE JOURNEY INTO SPACE

FROM:  NASA

New Trio Launches to Join Expedition 34
The Soyuz TMA-07M spacecraft launched from the Baikonur Cosmodrome in Kazakhstan to the International Space Station at 7:12 a.m. EST on Wednesday, Dec. 19.

States move forward

States move forward

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY
The aircraft carrier USS Dwight D. Eisenhower (CVN 69) transits the Atlantic Ocean en route to homeport at Naval Station Norfolk after operating in the U.S. 5th and 6th Fleet areas of responsibility in support of Operation Enduring Freedom, maritime security operations and theater security cooperation efforts. (U.S. Navy photo by Mass Communication Specialist Seaman Jermaine M. Ralliford/Released)

The Los Angeles-class attack submarine USS Greeneville (SSN 772) moors to the pier at Joint Base Pearl Harbor-Hickam after a six-month deployment to the western Pacific region. (U.S. Navy photo by Mass Communication Specialist 2nd Class Steven Khor Released)

Press Briefing | The White House

Press Briefing | The White House

ELI LILLY AND COMPANY SETTLES FOREIGN CORRUPT PRACTICES CHARGES WITH SEC

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today charged Eli Lilly and Company with violations of the Foreign Corrupt Practices Act (FCPA) for improper payments its subsidiaries made to foreign government officials to win millions of dollars of business in Russia, Brazil, China and Poland.

The SEC alleges that the Indianapolis-based pharmaceutical company’s subsidiary in Russia used offshore "marketing agreements" to pay millions of dollars to third parties chosen by government customers or distributors, despite knowing little or nothing about the third parties beyond their offshore address and bank account information. These offshore entities rarely provided any services, and in some instances were used to funnel money to government officials in order to obtain business for the subsidiary. Transactions with off-shore or government-affiliated entities did not receive specialized or closer review for possible FCPA violations. Paperwork was accepted at face value and little was done to assess whether the terms or circumstances surrounding a transaction suggested the possibility of foreign bribery.

The SEC alleges that when the company did become aware of possible FCPA violations in Russia, Lilly did not curtail the subsidiary’s use of the marketing agreements for more than five years. Lilly subsidiaries in Brazil, China, and Poland also made improper payments to government officials or third party entities associated with government officials. Lilly agreed to pay more than $29 million to settle the SEC’s charges.

As alleged in the SEC’s complaint filed in federal court in Washington D.C.:
Lilly’s subsidiary in Russia paid millions of dollars to off-shore entities for alleged "marketing services" in order to induce pharmaceutical distributors and government entities to purchase Lilly’s drugs, including approximately $2 million to an off-shore entity owned by a government official and approximately $5.2 million to off-shore entities owned by a person closely associated with an important member of Russia’s Parliament. Despite the company’s recognition that the marketing agreements were being used to "create sales potential" with government customers and that it did not appear that any actual services were being rendered under the agreements, Eli Lilly allowed its subsidiary to continue using the agreements for years.
Employees at Lilly’s subsidiary in China falsified expense reports in order to provide spa treatments, jewelry, and other improper gifts and cash payments to government-employed physicians.
Lilly’s subsidiary in Brazil allowed one of its pharmaceutical distributors to pay bribes to government health officials to facilitate $1.2 million in sales of a Lilly drug product to state government institutions.
Lilly’s subsidiary in Poland made eight improper payments totaling $39,000 to a small charitable foundation that was founded and administered by the head of one of the regional government health authorities in exchange for the official’s support for placing Lilly drugs on the government reimbursement list.
Lilly agreed to pay disgorgement of $13,955,196, prejudgment interest of $6,743,538, and a penalty of $8,700,000 for a total payment of $29,398,734. Without admitting or denying the allegations, Lilly consented to the entry of a final judgment permanently enjoining the company from violating the anti-bribery, books and records, and internal controls provisions of the FCPA, Sections 30A, 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act. Lilly also agreed to comply with certain undertakings including the retention of an independent consultant to review and make recommendations about its foreign corruption policies and procedures. The settlement is subject to court approval.

STRAW BUYER MORTGAGE FRAUD SCHEME NETS A 70 MONTH PRISON TERM FOR LAS VEGAS REAL ESTATE AGENT

FROM: U.S. DEPARTMENT OF JUSTICE

Wednesday, December 19, 2012
Las Vegas Real Estate Agent Sentenced to 70 Months in Prison for Her Role in Mortgage Fraud Scheme

WASHINGTON – A Las Vegas real estate agent was sentenced today to serve 70 months in prison for her participation in a mortgage fraud scheme that netted more than $10 million in fraudulent mortgage loans, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada, and Special Agent in Charge Kevin Favreau of the FBI’s Las Vegas Field Office.

Linda Marie Kot, 58, was sentenced by U.S. District Judge Kent J. Dawson in the District of Nevada. In addition to her prison term, Kot was sentenced to serve five years of supervised release and ordered to pay $3,891,811 in forfeiture.

In May 2012, after a five-day trial, a federal jury in Las Vegas found Kot guilty of three counts of bank fraud and one count of conspiracy to commit mail, wire and bank fraud.

According to court documents and evidence presented at trial, Kot participated in a scheme with members of an investment group to submit fraudulent loan documents to lenders that involved "straw buyers," individuals with good credit scores whose names were put on the properties but who were not intended to be responsible for the payment of the mortgages or other expenses of the properties. The scheme took place in 2006 and involved 13 new home purchases, three existing home sales and several loan applications that were not approved.

According to the evidence at trial and court documents, Kot and her co-conspirators caused material misstatements to be placed on loan applications, including information about the true owners and controllers of the properties; whether the properties would be primary residences; and the level of assets and income of the straw buyers. In some cases, Kot put straw buyers on her bank account to make it appear that the straw buyers had assets that they did not have, in order to help them qualify for mortgage loans for which they otherwise would not have been eligible. Kot made over $276,000 in commissions on the fraudulent sales, the evidence at trial showed.

One of the counts of conviction involved a similar scheme that Kot engaged in with members of her family from 2005 to 2006. The evidence at trial showed that Kot and members of her family used straw buyers and fraudulent loan applications to buy properties. Kot and members of her family paid the straw buyers fees, and any profits on sale of the houses were split among family members.

While Kot and her family members were able to sell most of the properties they bought with straw buyers before the market downturn, the investment group that Kot conspired with was not able to do so, according to evidence presented at trial. As a result, most of the mortgages for the houses that the investment group bought in 2006, where Kot acted as the realtor, ended up in default and foreclosure, with many of the straw buyers ending up in bankruptcy.

Three co-conspirators, Hugo Coutelin, Jeff Thomas and Michael Perry, previously pleaded guilty for their roles in the fraud scheme. In September 2012, Coutelin and Perry were each sentenced to 15 months in prison and Thomas was sentenced to time served.

This case was investigated by the FBI. Trial Attorneys Nicholas S. Acker and Fred Medick of the Fraud Section in the Justice Department’s Criminal Division prosecuted the case, with assistance from the U.S. Attorney’s Office for the District of Nevada. Fraud Section Trial Attorney Brian Young and former Fraud Section Trial Attorneys Matt Klecka and Joseph Capone also assisted with the investigation.

Today’s sentencing was a result of efforts 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

LS3 ROBOT: NOT QUITE R2D2, YET!

The Defense Advanced Research Projects Agency's Legged Squad Support System will relieve troops of their 100-pound equipment load, take voice commands and maneuver around obstacles, in addition to numerous other tasks in the field. DARPA photo.

FROM: U.S. DEPARTMENT OF DEFENSE

Robot to Serve as Future Military's 'Pack Mule'
By Terri Moon Cronk
American Forces Press Service

WASHINGTON, Dec. 19, 2012 - The warfighter who carries up to 100 pounds of equipment on his back is expected to get relief from the cumbersome weight, officials at the Defense Advanced Research Projects Agency say.

Enter the robot.

It's not just any robot. DARPA's semiautonomous Legged Squad Support System -- also known as the LS3 -- will carry 400 pounds of warfighter equipment, walk 20 miles at a time, and act as an auxiliary power source for troops to recharge batteries for radios and handheld devices while on patrol.

Now in trials, the "pack mule" robot might have numerous functions, but its primary responsibility is to support the warfighter, said Army Lt. Col. Joseph K. Hitt, program manager in DARPA's tactical technology office.

"It's about solving a real military problem: the incredible load of equipment our soldiers and Marines carry in Afghanistan today," Hitt said. The consequences of that kind of load can be soft-tissue injuries and other complications, he added.

And as the weight of their equipment has increased, so have instances of fatigue, physical strain and degraded performance, officials have noted. Reducing the load warfighters carry has become a major point for research and development, DARPA officials say, because the increasing weight of equipment has a negative effect on warfighter readiness.

DARPA's five-year, $54 million LS3 project began in September 2009, and now is undergoing trials in the field. The LS3 must become familiar with different types of terrain, from wooded areas to deserts, and with varying weather conditions such as rain and snow, Hitt explained.

The LS3 prototype completed its first outdoor assessment in January, demonstrating its mobility by climbing and descending a hill and exercising its perception capabilities.

Following a "highly successful" trial at Fort Pickett near Blackstone, Va., earlier this month, Hitt said, the robot worked with the Marine Corps Warfighting Laboratory there and developed additional behaviors.

The robot's sensors allow it to navigate around obstacles at night, maneuver in urban settings, respond to voice commands, and gauge distances and directions. The LS3 also can distinguish different forms of vegetation, Hitt said, when walking through fields and around bushes. With the ability to avoid logs and rocks, the LS3's intelligent foot placement on rough terrain is a key element, he said.

The next trial will challenge the robot with the desert terrain at Twentynine Palms Marine Corps Base in California, and subsequent trials will follow every three months, Hitt said.

"The vision is a trained animal and its handler," he said, adding that a squad leader would learn 10 basic commands to tell the robot to do such things as stop, sit, follow him tightly, follow him on the corridor, and go to specific coordinates.

"The technology of the robot focuses on mobility, perception and human-robot interaction," Hitt said.

With the expectation of delivering the first LS3 to a Marine Corps squad in two years, the program culminates a decade of research and development. Yet it still needs some tweaks, Hitt acknowledged.

"We have to make sure the robot is smart like a trained animal," he said. "We need to make sure it can follow a leader in his path, or follow in its own chosen path that's best for itself. The interaction between the leader and the robot [must be] intuitive and natural."

President Obama Speaks on Preventing Gun Violence | The White House

President Obama Speaks on Preventing Gun Violence | The White House

Diplomatic Corps Holiday Reception | The White House

Diplomatic Corps Holiday Reception | The White House

CLINICAL DIRECTOR FOR HEALTH CARE CLINIC SENTENCED IN $50 MILLION MEDICARE FRAUD

FROM: U.S. DEPARTMENT OF JUSTICE

Thursday, December 20, 2012
Clinical Director for Miami-based Health Care Clinic Sentenced to Prison for Role in $50 Million Medicare Fraud Scheme

WASHINGTON – A former clinical director for Biscayne Milieu, a Miami-based mental-health clinic, was sentenced today to 100 months in prison for his participation in a Medicare fraud scheme involving the submission of more than $50 million in fraudulent billings to Medicare, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.

Rafael Alalu, 47, of Miami, was sentenced today by U.S. District Judge Robert N. Scola Jr. in the Southern District of Florida. Alalu was convicted on Aug. 24, 2012, of one count of conspiracy to commit health care fraud and two substantive counts of health care fraud, following a two-month jury trial. The evidence at trial showed that Alalu participated in treating ineligible patients, concealing that fact by falsifying patient files and writing fraudulent group therapy notes, and instructing others to do the same. In addition to the prison term, Alalu was ordered to pay more than $5.6 million in restitution, jointly and severally with his co-defendants.

Various owners, doctors, managers, therapists, patient brokers and other employees of Biscayne Milieu have also been charged with various health care fraud, kickback, money laundering and other offenses in two indictments unsealed in September 2011 and May 2012. Biscayne Milieu, its owners, and more than 25 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial. Antonio and Jorge Macli and Sandra Huarte – the owners and operators of Biscayne Milieu – and Dr. Gary Kushner – its medical director – were each convicted at trial of various offenses and are scheduled for sentencing in March 2013.

According to the evidence at trial, the defendants and their co-conspirators caused the submission of over $50 million dollars in false and fraudulent claims to Medicare through Biscayne Milieu, which purportedly operated a partial hospitalization program (PHP) – a form of intensive treatment for severe mental illness. Instead, the defendants devised a scheme in which they paid patient recruiters to refer ineligible Medicare beneficiaries to Biscayne Milieu for services that were never provided. Many of the patients admitted to Biscayne Milieu were not eligible for PHP because they were chronic substance abusers, suffered from severe dementia and would not benefit from group therapy, or had no mental health diagnosis but were seeking exemptions for their U.S. citizenship applications. The evidence at trial showed that once these ineligible patients were admitted to Biscayne Milieu, Alalu and others concealed the fraud by falsifying patients’ group therapy notes to reflect legitimate PHP treatment that was never provided, and directed others to do so.

The case is being prosecuted by Assistant U.S. Attorneys Michael Davis and Marlene Rodriguez of the U.S. Attorney’s Office for the Southern District of Florida, and by Trial Attorney James V. Hayes of the Fraud Section of the Justice Department’s Criminal Division. The case was investigated by the FBI with the assistance of HHS-OIG, and was brought by the U.S. Attorney’s Office for the Southern District of Florida in coordination with the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

OPERATION CHRISTMAS DROP



Crew members on a C-130 Hercules from Yokota Air Base, Japan, push a donated bundle of humanitarian supplies and gifts out the side door of the aircraft over an island in Micronesia, Dec. 18, 2012. Each year, the C-130s fly to Guam to carry bundles to islands in need during Operation Christmas Drop. U.S. Air Force photo by Tech. Sgt. Samuel Morse.

FROM: U.S. DEPARTMENT OF DEFENSE

Operation Christmas Drop Wraps Up in Pacific

By Donna Miles
American Forces Press Service

WASHINGTON, Dec. 19, 2012 - The world's longest-running humanitarian mission came to a close yesterday as U.S. military members and volunteers delivered more than 39,000 pounds of aid and holiday cheer to Pacific islanders during Operation Christmas Drop.

This year marked the 61st anniversary of the mission, providing support to more than 30,000 islanders from Chuuk, Palau, Yap, the Marshall Islands and the Commonwealth of the Northern Mariana Islands, officials reported.

Airmen from the 36th Wing at Andersen Air Force Base, Guam, as well as family members and local volunteers, and airmen from the 36th Airlift Squadron at Yokota Air Base, Japan, kicked off the mission Dec. 11, officials reported. Carefully preparing packages of toys, clothing, fishing equipment, sporting goods, food items, tools and other goods, they airdropped them from C-130 Hercules aircraft to 54 islands.

The mission, the oldest of U.S. Pacific Command's outreach activities across the Asia-Pacific region, dates back to 1952. An aircrew from the 54th Weather Reconnaissance Squadron, based at the time in Guam, noticed islanders waving to them as they flew over the Micronesian atoll of Kapingamarangi. The crewmembers gathered items from their WB-29 Superfortress aircraft, attached them to a parachute they had fashioned, and airdropped them from the plane.

The islanders -- who lived at the time without running water or electricity and had recently been hit by a string of ferocious typhoons -- scrambled to retrieve the gifts from above.

The tradition continues today, bringing together military members, students at the University of Guam, and local community and charitable organizations to support a common purpose.

"The time and dedication that people are willing to give is astounding," said Air Force Capt. Mitchell Foy, who led the Operation Christmas Drop committee. "It's amazing, watching everyone come together to make this humanitarian effort happen."

Air Force Col. David Gould, the 374th Operations Group commander, said he felt humbled to be part of the outpouring.

"When we all signed up to join the military, it was about service – not only service for our country, but service to the world," he said. "There are few operations on this planet that demonstrate as much commitment to service as Operation Christmas Drop."



　

　

Reacting to stress

Reacting to stress

U.S. JUSTICE REACHES SETTLEMENT WITH PUBLISHER REGARDING ALLEGED NON-COMPETITIVE PRICING OF E-BOOKS

FROM: U.S. DEPARTMENT OF JUSTICE

Tuesday, December 18, 2012
Justice Department Reaches Settlement with Penguin Group (USA) Inc. in E-Books Case
Department Continues to Litigate Against Apple Inc. and Macmillan to Prevent Continued Restrictions on Price Competition

WASHINGTON – The Department of Justice announced today that it has reached a settlement with Penguin Group (USA) Inc.–one of the largest book publishers in the United States–and will continue to litigate against Apple Inc. and Holtzbrinck Publishers LLC, which does business as Macmillan, for conspiring to raise e-book prices to consumers.

Today’s proposed settlement was filed in the U.S. District Court for the Southern District of New York. If approved by the court, the settlement will resolve the department’s competitive concerns as to Penguin, ending Penguin’s role as a defendant in the civil antitrust lawsuit filed by the department on April 11, 2012.


The department’s Antitrust Division previously settled its claims against three book publishers–Hachette Book Group Inc., HarperCollins Publishers L.L.C. and Simon & Schuster Inc. The department said that the publishers eliminated retail price competition, resulting in consumers paying millions of dollars more for their e-books. The settlement with those three publishers was approved by the court in September 2012. A trial against Macmillan and Apple currently is scheduled to begin in June 2013.


"Since the department’s settlement with Hachette, HarperCollins and Simon & Schuster, consumers are already paying lower prices for the e-book versions of many of those publishers’ new releases and bestsellers," said Jamillia Ferris, Chief of Staff and Counsel at the Department of Justice’s Antitrust Division. "If approved by the court, the proposed settlement with Penguin will be an important step toward undoing the harm caused by the publishers’ anticompetitive conduct and restoring retail price competition so consumers can pay lower prices for Penguin’s e-books."


According to the complaint, the five publishers and Apple were unhappy that competition among e-book sellers had reduced e-book prices and the retail profit margins of the book sellers to levels they thought were too low. To address these concerns, the department said the companies worked together to enter into contracts that eliminated price competition among bookstores selling e-books, substantially increasing prices paid by consumers. Before the companies began their conspiracy, retailers regularly sold e-book versions of new releases and bestsellers for, as described by one of the publisher’s CEO, the "wretched $9.99 price point." As a result of the conspiracy, consumers were typically forced to pay $12.99, $14.99, or more for the most sought-after e-books, the department said.

Under the proposed settlement agreement, Penguin will terminate its agreements with Apple and other e-books retailers and will be prohibited for two years from entering into new agreements that constrain retailers’ ability to offer discounts or other promotions to consumers to encourage the sale of the Penguin’s e-books. The proposed settlement agreement also will impose a strong antitrust compliance program on Penguin, which will include a requirement that it provide advance notification to the department of any e-book ventures it plans to undertake jointly with other publishers and that it regularly report to the department on any communications it has with other publishers. Also for five years, Penguin will be forbidden from agreeing to any kind of most favored nation (MFN) agreement that could undermine the effectiveness of the settlement.

The department is currently reviewing the proposed joint venture announced by Penguin and Random House Inc., the largest U.S. book publisher. Should the proposed joint venture proceed to consummation, the terms of Penguin’s settlement will apply to it.

Penguin Group (USA) Inc. has its principal place of business in New York City. It publishes e-books and print books through publishers such as The Viking press and Gotham Books. Penguin Group (USA) Inc. is the U.S. subsidiary of The Penguin Group, a division of Pearson plc, which has its principal place of business in London.

Hachette Book Group USA has its principal place of business in New York City. It publishes e-books and print books through its publishers such as Little, Brown and Company and Grand Central Publishing.

HarperCollins Publishers, L.L.C. has its principal place of business in New York City. It publishes e-books and print books through publishers such as Harper and William Morrow.

Macmillan has its principal place of business in New York City. It publishes e-books and print books through publishers such as Farrar, Straus and Giroux, and St. Martin’s Press. Verlagsgruppe Georg von Holtzbrinck GmbH owns Holtzbrinck Publishers LLC, which does business as Macmillan, and has its principal place of business in Stuttgart, Germany.

Simon & Schuster Inc. has its principal place of business in New York City. It publishes e-books and print books through publishers such as Free Press and Touchstone.

Apple Inc. has its principal place of business in Cupertino, Calif. Among many other businesses, Apple distributes e-books through its iBookstore.

The proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register, consistent with the requirements of the Antitrust Procedures and Penalties Act.

AU OPTRONICS CORPORATION EXECUTIVE CONVICTED FOR ROLE IN LCD PRICE-FIXING CONSPIRACY

FROM: U.S. DEPARTMENT OF JUSTICE ANTITRUST DIVISION

WASHINGTON — Following a three-week trial, a federal jury in San Francisco today convicted an executive of the largest Taiwan liquid crystal display (LCD) producer for his participation in a worldwide conspiracy to fix the prices of thin-film transistor-liquid crystal display (TFT-LCD) panels sold worldwide, the Department of Justice announced.

Shiu Lung Leung, AU Optronics Corp.’s former senior manager in the Desktop Display Business Group, was found guilty today in U.S. District Court for the Northern District of California in San Francisco, of participating in a worldwide TFT-LCD price-fixing conspiracy from May 15, 2002 to Dec. 1, 2006.

AU Optronics Corp., based in Hsinchu, Taiwan, and its American subsidiary, AU Optronics Corp. America, headquartered in Houston, were found guilty on March 13, 2012, following an eight-week trial. Former AU Optronics Corp. president Hsuan Bin Chen and former AU Optronics Corp. executive vice president Hui Hsiung were also found guilty at that time. A mistrial was declared against Leung after that trial. Today’s verdict is the result of Leung’s retrial.

"This international price-fixing conspiracy impacted countless American consumers by raising the price of computer monitors, notebooks and televisions containing LCD panels," said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. "Today’s guilty verdict demonstrates that the Antitrust Division will continue to hold executives accountable for crimes that undermine a competitive marketplace."

The indictment charged that AU Optronics Corp. participated in the worldwide price-fixing conspiracy from Sept. 14, 2001, to Dec. 1, 2006, and that its subsidiary joined the conspiracy as early as spring 2003. Today a jury found that Leung, along with the previously convicted companies and former executives, was guilty of fixing the prices of LCD panels sold in the United States. The conspirators fixed the prices of LCD panels during monthly meetings with their competitors, which were secretly held in hotel conference rooms, karaoke bars and tea rooms around Taiwan.

LCD panels are used in computer monitors and notebooks, televisions and other electronic devices. By the end of the conspiracy, the worldwide market for LCD panels was valued at $70 billion annually. The LCD price-fixing conspiracy affected some of the largest computer manufacturers in the world, including Hewlett Packard, Dell and Apple.

The company and its U.S. subsidiary were sentenced on Sept. 20, 2012, before Judge Susan Illston, to pay a $500 million criminal fine, matching the largest fine imposed against a company for violating U.S. antitrust laws. Chen and Hsiung were each sentenced to serve three years in prison and to each pay a $200,000 criminal fine.

As a result of this ongoing investigation, eight companies have pleaded guilty or been convicted to date and have been sentenced to pay criminal fines totaling more than $1.39 billion. Of the 22 charged executives, 13 have pleaded guilty or have been convicted and seven remain fugitives. The executives who have been sentenced have been ordered to serve a combined total of 4,871 days in prison.

The maximum penalty for a Sherman Act violation for an individual is 10 years in prison and a $1 million fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory fine.

HOUSING DEVELOPMENT OR, IS IT REDEVELOPMENT?

Early Settler Cabin In Lower Michigan.

FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY
EPA Study Reveals Shift in Housing Developments Across the U.S.
More communities embrace redevelopment

WASHINGTON – The U.S. Environmental Protection Agency (EPA) released a new report examining residential construction trends in America’s metropolitan regions, which finds that nearly three out of four large metropolitan regions saw an increased share of new housing development in previously developed areas during 2005 - 2009 compared to 2000 - 2004.

Known as infill housing, this type of development provides economic and public health benefits to metropolitan areas while protecting the local environment. Infill housing saves money and energy by taking advantage of previous investments in existing infrastructure (such as water, sewer, and roads). This type of development can also help preserve open space, protect natural resources, and reduce transportation emissions and the amount of polluted stormwater washing off new roadways and other paved surfaces.

Infill housing has also been shown to help raise property values, increase a community’s tax base, and attract retail businesses to serve the larger residential population.

This report examines data on the location of new home development in metropolitan regions, as well as data on pre-existing land cover. The report also includes a listing of resources available to local, regional, and state leaders who wish to coordinate land use, housing, and transportation policies.

The findings of the report demonstrate that infill has become a significant portion of the U.S. housing market. Among all 209 metropolitan regions examined, 21 percent of new homes were infill, while the remaining share was built on undeveloped land outside existing communities. Seventy-one percent of large metropolitan regions saw an increased share of infill housing development. Among 51 large metropolitan regions examined in this study, 36 saw an increased share of infill housing development during 2005-2009 compared to 2000-2004. For example, eight out of ten new homes in San Jose, Calif. were infill. New York, Los Angeles, and San Francisco all saw a majority of new home construction in previously developed areas during the same time period.

EPA published the first and second editions of Residential Construction Trends in America's Metropolitan Regions in 2009 and 2010. This 2012 report builds on previous work with the HUD-DOT-EPA Partnership for Sustainable Communities to measure metropolitan development trends.

21ST CENTURY ENERGY DIPLOMACY

Photo:  Wind Power Turbines.  From U.S. Air Force.

FROM: U.S. STATE DEPARTMENT

Energy Diplomacy in the 21st Century
Fact Sheet
Washington, DC
December 19, 2012
　

ENERGY DIPLOMACY IN THE 21st CENTURY
Energy cuts across the entirety of U.S. foreign policy. It’s a matter of national security and global stability. It’s at the heart of the global economy. It’s also an issue of democracy and human rights."
- Secretary of State Hillary Rodham Clinton

Energy is at the intersection of national security and economic prosperity. The Department of State’s efforts in bilateral and multilateral diplomacy, economic statecraft, security, and development are widely affected by energy concerns. Secretary Clinton created the Bureau of Energy Resources in 2011 to integrate energy security interests into foreign policy decision making, putting energy diplomacy at the forefront of U.S. foreign policy. We are working to advance U.S. energy policy goals along three main pillars:

Energy Diplomacy

To meet the need for the traditional hydrocarbon resources we predominantly rely upon today and to manage the implications those resources have on national wealth and geopolitical power and influence, we:
Promote a stable global energy supply by engaging diplomatic partners and private producers to maintain supply, calm markets, and pursue alternative energy options. This includes extensive diplomatic efforts to maintain global oil supplies in the context of implementing sanctions on Iran, as well as coordinating with our diplomatic partners the effective implementation of sanctions, particularly on petroleum and petroleum products.
Continue to strengthen energy diplomacy efforts with new and emerging producers of all forms of energy by supporting the development of energy resources and transportation options.
Engage through international fora to build broad agreements on policies to boost global energy security.
Energy Transformation

To aid in the development of international markets that drive private demand and finance for the technologies and fuels that will transform the ways nations use and produce energy, we:
Encourage regional approaches to transmission grid interconnection and market development to help create larger markets, enhance system reliability, and energy efficiency, and facilitate the integration and trade of electricity from renewable technologies.
Create an enabling environment for U.S. companies to provide the technology, innovation, and capital to help guide the global transition to a twenty-first century energy economy estimated at $20 trillion in value through 2035.
Lead international efforts on energy transformation and clean energy, for example by working within the International Renewable Energy Agency to promote diffusion of renewable energy technologies and adoption of best practices.
Energy Governance and Access

To counter poverty and lack of development resulting from a lack of access to energy, poor resource management, or both, we:
Encourage responsible resource management by sharing best practices for sound, transparent energy sector governance, including development of technical understanding, transparent and accountable legal and regulatory regimes, financial management, and health, safety, and environmental practices in line with international standards.
Expand energy access through economic statecraft and partnerships with development agencies to help encourage creation of commercially viable models backed by private investment.
Examples of Energy Diplomacy in Action

There is a wide array of initiatives and practices underway that illustrate our focus on energy issues. Examples include:
Sustainable Energy for All (SEA4ALL): The United States is a key participant in the UN Secretary-General’s SE4ALL initiative, which aims, to provide by 2030 universal access to modern energy service while doubling the global rate of improvement in energy efficiency and the share of renewable energy.
Connecting the Americas 2022: This Presidential initiative seeks to enhance electrical interconnections across the Western Hemisphere to achieve universal access over the next decade for the more than 31 million people without electricity.

U.S. ASSISTANT ATTORNEY GENERAL BREUER COMMENTS ON UBS LIBOR MANIPULATION CASE

FROM: U.S. DEPARTMENT OF JUSTICE

Assistant Attorney General Lanny A. Breuer Speaks at the UBS Press Conference
Washington, D.C. ~ Wednesday, December 19, 2012

UBS Japan has agreed to plead guilty in connection with one of the most significant scandals ever to hit the global banking industry. For years, including at the height of the financial crisis, UBS manipulated its submissions to the British Bankers’ Association for calculation of the London Interbank Offered Rate, or LIBOR. UBS AG, the banking giant and parent company of UBS Japan, has also entered into a non-prosecution agreement with the Justice Department, agreeing together with UBS Japan to pay $500 million to resolve our allegations related to the bank’s manipulation of LIBOR. Together with approximately $1 billion in regulatory penalties and disgorgement, these criminal penalties bring the total amount of today’s resolution to $1.5 billion.

The bank’s conduct was simply astonishing. Hundreds of trillions of dollars in mortgages, student loans, credit card debt, financial derivatives, and other financial products worldwide are tied to LIBOR, which serves as the premier benchmark for short-term interest rates. In short, the global marketplace depends upon an accurate LIBOR. Yet UBS, like Barclays before it, sought repeatedly to fix LIBOR for its own ends – in this case, so UBS traders could maximize profit on their trading positions, and so the bank wouldn’t appear vulnerable to the public during the financial crisis.

In addition to UBS Japan’s agreement to plead guilty, two former UBS traders – Tom Alexander William Hayes and Roger Darin – have been charged, in a criminal complaint unsealed today, with conspiracy to manipulate LIBOR. Hayes has also been charged with wire fraud and an antitrust violation. There was nothing subtle about these traders’ alleged conduct. In one instance, according to the complaint, Hayes explained to a junior rate submitter that he and Darin "generally coordinate" and "skew the libors a bit." In another instance, according to the complaint, Hayes told a trader at another bank that, "3m libor is too high cause i have kept it artificially high."

The scope of the misconduct admitted to by UBS AG and UBS Japan is far-reaching. For years, traders at UBS sought to manipulate the bank’s LIBOR submissions for their own profit. The traders had positions in interest rate swaps that depended on UBS’s LIBOR submissions. And, on numerous occasions, they caused UBS to make LIBOR submissions that directly benefited their own trading books. UBS’s manipulation was extensive, and covered several currencies and interest rates.

Make no mistake: for UBS traders, the manipulation of LIBOR was about getting rich. As one broker told a UBS derivatives trader, according to the statement of facts appended to our agreement with the bank, "mate yur getting bloody good at this libor game . . . think of me when yur on yur yacht in monaco wont yu."

From 2006 to 2009, according to the complaint unsealed today against Hayes and Darin, Hayes arranged to move UBS’s Yen LIBOR submissions in directions that would maximize his profit on the trading positions he took for the bank; and Darin repeatedly made false Yen LIBOR submissions on behalf of Hayes. The complaint also alleges that Hayes contacted brokers to influence them to disseminate false information about LIBOR. Hayes further allegedly made efforts to coordinate with traders at other banks to try to move their banks’ LIBOR submissions in directions that would help his trading positions.

Since the government’s investigation began, UBS has changed its senior leadership and improved its compliance and training programs. UBS has also cooperated with the Justice Department, and has agreed to continue doing so, as we pursue our ongoing, and active investigation into the manipulation of LIBOR.

We cannot, and we will not, tolerate misconduct on Wall Street of the kind admitted to by UBS today, and by Barclays last June. We will continue to follow the facts and the law wherever they lead us in this matter, as we do in every case.

I want to thank the many tenacious prosecutors in the Criminal Division, as well as the Antitrust Division, who are working on the LIBOR investigation, as well as the many talented agents and analysts at the FBI who have worked so hard on this case. I would also like to thank our colleagues at the Commodity Futures Trading Commission, the United Kingdom Financial Services Authority, and the Securities and Exchange Commission for their important parallel investigations; and the Swiss Financial Market Supervisory Authority, the Japanese Ministry of Justice, and the Japan Financial Services Authority for their valuable assistance.

Thank you.

THE 2012 DOOMSDAY PROPHECY NASA VIDEO

FROM: NASA

Beyond 2012: NASA Seeks to Debunk Doomsday Prophecy
As 2012 draws to a close, many websites, books and cable television shows are erroneously predicting the end of the world. These claims range from fears that a rogue planet is heading toward Earth, to solar flares torching our planet.

David Morrison, a senior scientist and astrobiologist at NASA's Ames Research Center is working to inform the public that each of the claims are false and there is no reason that December 21, 2012 will be different from any other day on Earth

U.S. State Department Briefing on the Accountability Review Board Report Regarding Benghazi

Briefing on the Accountability Review Board Report

USO WRAPS-UP TOUR

Marine Corps Sgt. Maj. Bryan B. Battaglia, senior enlisted advisor to Army Gen. Martin E. Dempsey, hosts this year's final USO holiday tour show on behalf of the chairman at Patch Barracks in Stuttgart, Germany, Dec. 17, 2012. DOD photo by U.S. Army Sgt. 1st Class Tyrone C. Marshall Jr.

FROM: U.S. DEPARTMENT OF DEFENSE

USO Wraps-up Annual Holiday Tour Show in Germany
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

STUTTGART, Germany, Dec. 18, 2012 - Marine Corps Sgt. Maj. Bryan B. Battaglia, senior advisor to Chairman of the Joint Chiefs of Staff Army Gen. Martin E. Dempsey, hosted the final stop of this year's USO holiday tour show here yesterday on behalf of the chairman, the tour's sponsor.

Battaglia attended the show with his wife, Lisa.

Service members' wives, husbands, sons and daughters attended the event to see their favorite celebrities.

This year's USO holiday tour show featured Washington Nationals Major League Baseball players Ross Detwiler and Craig Stammen; Matt Hendricks from the National Hockey League's Washington Capitals; comedian Iliza Schlesinger, winner of NBC's Last Comic Standing and country music singer Kellie Pickler and her band.

And USO President Sloan D. Gibson and Shane Hudella of "Defending the Blue Line," an organization that donates hockey equipment to military families, accompanied the tour show.

"It was certainly a different sort of demographic, and dynamic [when compared] to the other shows that were more troop oriented because they were in-country, in Afghanistan," Battaglia said. "So, I think it provided the entertainers and athletes another side of their U.S. armed forces overseas, and [they saw] that protection and defense of the nation doesn't only come from the service member.

"It also comes from the sacrifice of the family, having to serve overseas and away from home as well," he added.
Lisa Battaglia, a former Marine herself enjoyed the family aspect of the final show.

"I liked it a lot, because most of the time we see the military members," she said. "I know they truly appreciate the USO, but [I enjoyed] being able to see these young kids out there, able to enjoy what's going to be a great holiday season ... [and] let their hair down and hang out with their friends.

"I think it was great, and a nice ending to the tour," she added.

The sergeant major deemed the USO tour a hit, with stops coming in Bahrain, Kyrgyzstan, Afghanistan and two stops in Germany -- Stuttgart and Landstuhl Regional Medical Center.

"It was a great success," he said. "Just having the opportunity to witness troops across the [area of responsibility] -- Afghanistan and beyond -- with smiles on their faces especially around this time with Christmas.

"You know, with a comedian telling a joke, or singing a country song that may be one of their favorites, or a sports fanatic getting an autograph or a handshake from one of the athletes," he continued. "Just seeing a smile on their faces is pretty invaluable, and it accomplishes the USO's mission, writ large, with providing morale to the troops."

The USO holiday tour's entertainers came all the way from the U.S. and maintained a strenuous schedule, the sergeant major said.

"The [itinerary's] ruggedness was only driven by trying to get them to as many [bases] as we possibly can, even if we had to split them up to see as many troops as we could so they could have that face-to-face engagement," Battaglia said.

"Nobody wants to watch this on AFN," he added. "They want to see it in person -- that was the objective, that was the goal, and it was accomplished."

U.S. DOL AWARDS $10 MILLION TO COMBAT CHILD LABOR IN TANZANIA

Photo:  Site of former slave market, south of Stone Town.  From:  CIA World Factbook.

　
FROM: U.S. DEPARTMENT OF LABOR

US Department of Labor awards $10 million to International Rescue Committee to combat child labor in Tanzania

WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today awarded $10 million for a cooperative agreement with the International Rescue Committee to combat child labor in Tanzania. The project will target regions where there is a prevalence of child labor in agriculture and domestic service.

The International Rescue Committee will partner on this project with World Vision, the Foundation for Civil Society, Kiota Women's Health Development, the Tanga Youth Development Association and The Institute for Development Studies at the University of Dar es Salaam.

These organizations will help provide services to protect children from the worst forms of child labor. The project will get children into school, train youths in business and entrepreneurial skills, help raise household income, and link families to existing village community banks and social protection services. It also will work with local and national government to build their capacity to implement policies to eliminate child labor.

Since 1995, ILAB projects have rescued approximately 1.5 million children from exploitive child labor. The Labor Department has funded 260 such projects implemented by more than 65 organizations in 91 countries. ILAB currently oversees more than $210 million of active programming to combat the worst forms of child labor.