PINNACLES BECOMES 59TH U.S. NATIONAL PARK



Photo:  California Condor.  Credit:  Wikimedia Commons.

FROM: U.S. DEPARTMENT OF INTERIOR

AMERICA’S GREAT OUTDOORS: Salazar, Jarvis Celebrate Pinnacles’ New Status as 59th National Park

President signs legislation to elevate status of 1908 national monument in California’s Gabilan Mountains

WASHINGTON – Secretary of the Interior Ken Salazar and Director of the National Park Service Jonathan B. Jarvis today celebrated the establishment of America’s 59th national park with President Obama’s signature of legislation to elevate Pinnacles National Monument to become Pinnacles National Park.

"This ancient and awe-inspiring volcanic field with its massive monoliths, spires, cave passages and canyons is a place that restores our souls and energizes our bodies with its beauty and abundant opportunities for outdoor recreation," Salazar said. "I commend Rep. Sam Farr and Sen. Barbara Boxer for their vision in sponsoring the legislation to make it a national park."

"As with our other national parks and lands, Pinnacles also is an economic engine, supporting jobs in local communities," he said, noting that last year Pinnacles hosted more than 343,000 visitors. Each year, visitors spent about $4.8 million and support 48 jobs in the local economy.

Rising out of the Gabilan Mountains east of central California's Salinas Valley, Pinnacles is the result of millions of years of erosion, faulting and tectonic plate movement. Within the park's boundaries lie nearly 27,000 acres of diverse wild lands. Visitors delight in the beauty and variety of its spring wildflowers and more than 400 species of native bees. The Pinnacles rock formations are a popular destination to challenge technical and beginner climbers alike.

Designated as a national monument in 1908 by President Theodore Roosevelt, the park’s management will not change by the legislation. The Pinnacles National Park Act recognizes the broader significance of park resources, specifically the chaparral, grasslands, blue oak woodlands, and majestic valley oak savanna ecosystems of the area, the area's geomorphology, riparian watersheds, unique flora and fauna, and the ancestral and cultural history of native Americans, settlers and explorers.

"We are proud to add Pinnacles to our family of national parks," said Jarvis. "The beauty of the land and the diversity of recreational and educational opportunities offer a unique experience to every visitor. Pinnacles is a place worthy to be called part of ‘America’s Best Idea.'"

Pinnacles National Park is also well known as an incubator of America’s fragile population of California Condors. It is one of three condor release sites in the country, and the only release site in a national park. Pinnacles has been a partner of the California Condor Recovery Program since 2003. The park manages 31 free-flying condors. Each bird is monitored after its release to increase its chances of survival. Park biologists and volunteers monitor chicks hatched in the wild. They check blood and feather samples for signs of poisoning from ingestion of lead-contaminated food. They also monitor condors to aid research about their habitat and movement.

In addition to changing the park’s status from national monument to national park, the legislation names the park’s 16,000 acres of wilderness as the Hain Wilderness. The name honors Schuyler Hain who was an 1891 homesteader from Michigan. Within 20 years he became known as the "Father of Pinnacles" leading tours up through Bear Valley and into the caves. Hain spoke to groups and wrote articles urging preservation of the area and acted as unofficial caretaker for many years. His efforts proved fruitful with the establishment of Pinnacles as a 2,500-acre national monument in 1908 by President Theodore Roosevelt.

The rock formations of Pinnacles National Monument and the Gabilan Mountain Range divide the park into East and West Districts which are connected by trails, but not by a vehicle road. More than 30 miles of trails access geological formations, spectacular vistas and wildland communities. Pinnacles National Park is a day-use park, with occasional full moon hikes and dark sky astronomical observations led by ranger-interpreters.

The National Park System is more than 84 million acres in size and contains 398 natural, cultural and historic landscapes. This system includes 59 national parks, 125 national historical parks, national and international historic sites, 75 national monuments, as well as many national memorials, battlefields, parkways, preserves, recreation areas, seashores and lakeshores and trails.

AIR FORCE STAFF SGT. COMPETES IN MIXED-MARTIAL ARTS DURING FREE TIME

 

Air Force Staff Sgt. Jeremy Caudillo works as a fitness supervisor at Barksdale Air Force Base, La. During his free time, he trains and competes in mixed martial arts competitions and helps his fellow airmen stay fit to fight. U.S. Air Force photo illustration by Senior Airman Micaiah Anthony

FROM: U.S. DEPARTMENT OF DEFENSE, 2ND FORCE SUPPORT SQUADRON,
Face of Defense: Airman Strives to Become Pro Fighter

By Senior Airman Micaiah Anthony
2nd Bomb Wing
BARKSDALE AIR FORCE BASE, La., Jan. 11, 2013 - Many people dream of becoming rich, or of houses with white picket fences, but one airman's dream is to be locked in a blood-stained steel cage with a professional mixed martial artist.

For most, this would be a nightmare. But for Air Force Staff Sgt. Jeremy Caudillo, the 2nd Force Support Squadron fitness center supervisor here, his dream of becoming a professional MMA fighter is about to become reality.

"This has been a big dream of mine," Caudillo said. "My goal is to be the Ultimate Fighting Championship champion. I feel like MMA is my destiny."

Caudillo began his fighting career as a wrestler in high school and college. It wasn't until one of his deployments that he decided to pursue a career in MMA.

"I got interested in MMA when I was deployed to Afghanistan," he said. "I saw a few soldiers and some other guys doing combatives and jiu-jitsu, so I asked if I could partake. I started training with them, and it really started my career in MMA."

After Caudillo returned from his deployment, he joined an MMA gym and started competing in local amateur fights. His success in the ring attracted attention from producers of MTV's reality show "Caged."

"Being on the show was good for publicity," Caudillo said. "It helped me meet a couple of people in UFC and make a lot of great connections."

After more than two years of hard work and training, Caudillo recently finished his amateur career with a 6-3 record.

"I feel like I am ready to go pro," he said. "I'm setting up my first pro fight for March, and I'll make my debut in the 135-pound weight class."

Though his MMA career is taking off, Caudillo still wants to be an airman.

"I still want to keep my Air Force career," he said. "It is nice to be able to work here at the fitness center. My job in the Air Force is to train people and keep them fit to fight."

The training he receives from the Air Force and MMA go hand in hand, Caudillo said, and help him to be a better fighter and airman.

"MMA has helped me learn a lot more as far as different types of workouts [are concerned]," he added. "What I learn at the MMA gym I take back to my squadron and use it to train people. I also use some of the fitness fundamentals that I learned in the Air Force to help me with my strength and endurance training for MMA."

Caudillo uses full-body workouts along with core and strength training to help his fellow airmen pass their physical fitness tests and stay in shape.

"Before, I would just do basic exercises like running, pushups and situps to pass my [fitness] test," said Air Force Staff Sgt. Crystal McElvane, 2nd Force Support Squadron unit deployment manager. "Working out with [Caudillo] is a different level of intensity; it's a total-body workout. I am definitely getting more tone."

In return, Caudillo receives a lot of support from the base community.

"A lot of my co-workers and other airmen come to my fights to support me," he said. "It feels great to have them come and cheer me on."

With his last amateur fight behind him and a promising professional MMA career in front of him, Caudillo will be in the gym doing one of two things: working or training.

CHIROPRACTOR ASSOCIATION REACHES SETTLEMENT WITH DOJ REGARDING SETTING PRICES ACROSS COMPETITORS

FROM: U.S. DEPARTMENT OF JUSTICE

Thursday, January 10, 2013
Justice Department Challenges Joint Contracting on Behalf of Oklahoma Chiropractors

Settlement Bars Chiropractor Association and Its Executive Director from Conspiring to Raise Fees

WASHINGTON – The Department of Justice announced today that it has reached a settlement that will require the Oklahoma State Chiropractic Independent Physicians Association (OSCIPA) and its executive director to stop jointly determining prices and negotiating contracts with insurers on behalf of competing chiropractors in Oklahoma. The department said that the association and executive director negotiated at least seven contracts with insurers that set prices for chiropractic services on behalf of OSCIPA’s members, and that their conduct caused consumers to pay higher fees for chiropractic services in Oklahoma.

The department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the Northern District of Oklahoma against OSCIPA and executive director, Larry M. Bridges. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the lawsuit.

"By jointly negotiating fees on behalf of competing chiropractors, the association and its executive director increased the prices that consumers paid for chiropractic services in Oklahoma," said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. "Today’s settlement promotes competition among Oklahoma chiropractors and prevents the association and its executive director from engaging in illegal conduct that caused consumers to pay more for their health care."

According to the complaint, OSCIPA–which is comprised of approximately 45 percent of all practicing chiropractors in Oklahoma–and Bridges collectively negotiated the rates and price-related terms for at least seven contracts with insurers on behalf of OSCIPA’s members and required members to suspend their pre-existing contracts with those same insurers. The association and Bridges also required OSCIPA’s members to accept only reimbursements above a certain level and prohibited members from offering insurers incentives or rebates, such as by waiving deductibles. Except for members who were part of the same practice groups, OSCIPA’s members were not clinically or financially integrated, and the association’s and Bridges’ actions were not necessary to achieve any benefits for consumers.

The proposed settlement will prevent the association and Bridges from establishing prices or terms for chiropractic services and from negotiating with insurers on behalf of competing chiropractors. The proposed settlement also will prevent them from attempting to facilitate joint negotiations and from communicating with chiropractors about any aspect of pricing or contracting.

The Oklahoma State Chiropractic Independent Physicians Association is headquartered in Tulsa, Okla. Bridges has been employed by OSCIPA as its executive director since at least 1999.

The proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Peter J. Mucchetti, Chief, Litigation I Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon finding that it serves the public interest.

PLANNING FOR DISASTERS

FROM: FEMA
Preparedness Is For Everyone

WINDSOR, Conn. — How quickly people recover from an emergency may depend on the thought and planning put into preparing for a possible event.

"Every person has unique needs that should be taken into account," said FEMA’s Federal Coordinating Officer Albert Lewis, in charge of the federal recovery in Connecticut. "Everyone – and this includes people with disabilities, children, families and older Americans – should plan for all types of emergencies."

Make a plan that includes letting family and friends know your location if you are required to evacuate from your home. Another first action is to put together a basic emergency kit. This should include:
Three-day supply of water and nonperishable food
Medications to last at least a week
Battery-powered or crank radio
Flashlight and extra batteries
Whistle to signal for help
Wrench or pliers to turn off utilities
First aid kit, extra glasses, hearing aids with extra batteries, and copies of prescriptions
Important documents such as insurance and bank information, Social Security numbers for every family member, and cash and credit cards
Put these important documents in a waterproof container ready to pick up at a moment’s notice. Move anything that may block your path to the exit if you need to evacuate, particularly if the power is out.

Plan for pets as well. Plan to take them with you if you have to evacuate. Take along appropriate food, water and other necessities. Who knows when you might be able to return?

Stay informed about your local situation. Know what the local officials are advising and be ready with your emergency kit. You may need more than one kit: one for sheltering at home and one to take with you.

NASA Rules Out Earth Impact in 2036 for Asteroid Apophis - NASA Jet Propulsion Laboratory

NASA Rules Out Earth Impact in 2036 for Asteroid Apophis - NASA Jet Propulsion Laboratory

Zero Robotics - Scholieren besturen minisatellieten ín het ISS

Zero Robotics - Scholieren besturen minisatellieten ín het ISS

NEW ORLEANS POLICE DEPARTMENT WILL BE TRANSFORMED

FROM: U.S. DEPARTMENT OF JUSTICE

Friday, January 11, 2013

Court Finalizes Consent Decree to Transform the New Orleans Police Department

Today, U.S. District Court for the Eastern District of Louisiana entered an order granting the joint motion of the United States and the city of New Orleans to enter the consent decree regarding the New Orleans Police Department (NOPD). This order is a critical milestone in reforming the long-troubled NOPD and is an important step in dealing with the public safety crisis in New Orleans and in restoring community confidence in the New Orleans criminal justice system. The court’s order ensures critical changes to policy and practices, oversight by a federal monitor and transparency so that the community can continue to participate in and track the reform process. The order finalizes this binding agreement that was extensively negotiated between the department and the city, and allows for that agreement’s immediate implementation. The department and the city signed the agreement in July 2012.

"The Department of Justice appreciates the court’s careful attention to this matter," said Thomas E. Perez, Assistant Attorney General for Civil Rights. "The court’s action today ensures that the people of New Orleans will have a police department that respects the Constitution, ensures public safety and earns the confidence of the community. This decree will provide the city with important tools to reduce crime, ensure effective, constitutional policing and restore public confidence in NOPD."

As outlined in the court’s order, approval of the consent decree comes after thorough review of the consent decree to determine if it is fair, reasonable and adequate to address the long-standing constitutional deficiencies within NOPD. The review included hearing extensive testimony from the United States, the city, the Office of the Independent Police Monitor, the Fraternal Order of Police and the Police Association of New Orleans and many other New Orleans stakeholders and residents. The testimony reaffirmed both that NOPD engages in unconstitutional conduct, and that there is a public safety crisis in New Orleans that the NOPD can only address by implementing the reforms required by the decree.

The court’s approval of the consent decree comes at a time of continuing and serious public safety challenges in New Orleans.

"The deficiencies within NOPD that the Department of Justice identified during its extensive investigation continue to plague New Orleans," said Assistant Attorney General Perez. "Time is of the essence. We look forward to the immediate implementation of the agreement, and stand ready to work with all stakeholders in New Orleans to continue the reform process."

The department opened an investigation into NOPD in May 2010 after Mayor Landrieu asked for the department’s help with a complete transformation of NOPD. After a thorough investigation of NOPD’s policies and practices the department issued a letter of findings in March 2011 that outlined a pattern of unconstitutional conduct and violations of federal law that stemmed from entrenched practices within NOPD. These constitutional violations include use of excessive force; unconstitutional stops, searches and arrests, and; discriminatory and biased policing based on gender, race, national origin and sexual orientation.

"In his first days in office, Mayor Landrieu called for a comprehensive federal civil rights investigation of NOPD, and said that ‘nothing short of the complete transformation is necessary and essential to ensure safety for the citizens of New Orleans.’ This consent decree provides the roadmap for the complete transformation of NOPD," said Assistant Attorney General Perez.

U.S. DEFENSE DEPARTMENT LAUDS DUAL-STATUS COMMANDERS

Deputy Defense Secretary Ashton B. Carter, left, talks with Army Brig. Gen. Michael Swezey, the designated dual-status commander for the joint task force that responded to the Hurricane Sandy disaster in New York, while visiting relief sites manned by active- and reserve-component forces under Swezey's command operating in Breezy Point, N.Y., Nov. 11, 2012. U.S. Army photo by Sgt. Ferdinand Detres

FROM: U.S. DEPARTMENT OF DEFENSE

Sandy Response Reaffirms Value of Dual-status Commanders
By Donna Miles
American Forces Press Service

PETERSON AIR FORCE BASE, Colo., Jan. 11, 2013 - The response to Superstorm Sandy reaffirmed the value of a new command structure that Army Gen. Charles H. Jacoby Jr., the U.S. Northern Command commander, calls one of the most important initiatives to improve defense support of civilian authorities in more than a decade.

As Sandy was whirling its way toward the U.S. coastline in late October, Defense Secretary Leon E. Panetta responded to requests by several state governors in its anticipated path by appointing dual-status commanders in New Jersey, New Hampshire, New York, Maryland and Rhode Island.

The appointments gave these National Guard officers the authority to command both federal and state National Guard forces if they would serve as joint task force commanders during a Sandy response.

The dual-status commander concept represents a dramatic shift from past practices that dictated two distinct chains of command for forces responding to domestic disasters. Federal troops who operated under "Title 10" authority reported to one commander, and National Guard members serving under "Title 32," or state active duty authority, to another.

Hurricane Katrina underscored the problems of those parallel tracks when it pounded the Gulf Coast in 2005. As some 70,000 military poured into the region to assist, their efforts were hampered because no single joint task force commander was calling the shots. This caused duplicated efforts, delays, and in some cases, gaps in the support provided.

Navy Adm. James A. "Sandy" Winnefeld Jr., vice chairman of the Joint Chiefs of Staff, created the concept while he served as Northcom commander, and has called it one of his proudest accomplishments.

Jacoby has embraced the concept as well. "It harnesses DOD support in a unified way and connects it intimately to the needs and power of our communities," he told participants a domestic preparedness workshop last year.

The dual-status commander typically is a National Guard general officer who has authority over both Title 10 and Title 32/state active-duty troops. With a Title 10 deputy commander and staff members assigned to provide assistance, dual-status commanders report through both chains while supporting their respective state governors.

The concept made sense on paper, and was tested in several planned venues ranging from political conventions to a G8 Summit to a Boy Scout Jamboree, officials here said. The Defense Departmrnt had geared up to apply it last year during the Hurricane Irene response, but ended up not needing to, because no federal troops were needed.

Superstorm Sandy provided the first unplanned, no-notice implementation of the dual-status construct.

In the days before the storm made landfall, Northcom deployed its designated Title 10 deputy commanders, each accompanied by two planners, to embed with the dual-status commander in their designated state. Northcom also dispatched a team of experts in logistics, operations, law, public affairs and other disciplines to Harrisburg, Pa., ready to fan out as needed to provide specialized support.

It was a mission that Air Force Col. Paula Gregory and Army Col. Thomas Salo, along with other Northcom staff who had volunteered for the additional duty, had long prepared for. They had communicated with and made visits to their assigned states -- New York for Gregory and New Jersey for Salo -- and became familiar members of the state emergency response teams.

"We were past the 'get-to-know-you' stage," Gregory said. "We were already at the 'How do we get together and start working?' stage."

So when Army Brig. Gen. James Grant was activated as the joint task force commander for New Jersey, and Army Brig. Gen. Michael Swezey for New York, the commanders and their staffs knew they could rely on their Title 10 deputies to bring valued expertise to the table. This included a solid grounding in how to identify and tap into federal capabilities, but also understood the distinct lines between the type of assistance federal forces can provide and what the law prohibits, Salo said.

This understanding paid off, as Guardsman and active forces with a long history of working together under a single command in combat did so for the first time for an unplanned event in the United States, he said.

Salo said he was impressed at how easily active-duty soldiers from the 10th Mountain Division at Fort Drum, N.Y., were able to meld with their Guard counterparts when they deployed to New Jersey to provide fuel support for civilian first responders. "They worked right alongside the National Guard guys in an integrated structure that started at the top and continued through the lower levels," he said.

In New York, active-duty soldiers, sailors, Marines and airmen, as well as Army reservists, joined the New York National Guard in pumping water out of key infrastructure sites. "Everything was so seamless. It really was a total force, blended together to form a composite team," Gregory said.

Activating dual-status commanders to coordinate active-duty, National Guard and reserve force recovery efforts improved the response dramatically, Gregory said. "Having that one person able to oversee both efforts that were happening within their states brought a lot of synergy into the overall effort and better support to the citizens that needed the help," she said.

Gregory and Salo said they expect the dual-status commander concept to be fine-tuned as it's applied to more response operations. "It's been a great learning experience. A lot of lessons will come out of this about how you employ Title 10 [forces], how you use a dual-status command-led structure and response to large and complex catastrophes," Salo said.

More needs to be done to balance a disaster response system designed to pull the resources it needs with supporting organizations anxious to push assistance, he said. And more education is needed across all ranks of the military, particularly among federal forces, to increase awareness about defense support of civil authorities, Gregory said.

"But the key thing we both agree on is, it works," Salo said.

Salo called his experience as a Title 10 deputy commander a career highlight. After multiple overseas deployments during his 25 years of service, he said it was gratifying to be able to help his fellow Americans.

"This was a chance to do something at home, and it paid off in spades for me personally to be able to do that," he said.

REGULATION OF "SPECIAL NUCLEAR MATERIAL"

Photo:  Nuclear Plant.  Credit:  NRC.

FROM: U.S. NUCLEAR REGULATORY AGENCY

Special Nuclear Material
What is meant by special nuclear material?

"Special nuclear material" (SNM) is defined by Title I of the Atomic Energy Act of 1954 as plutonium, uranium-233, or uranium enriched in the isotopes uranium-233 or uranium-235. The definition includes any other material that the Commission determines to be special nuclear material, but does not include source material. The NRC has not declared any other material as SNM.

Where does special nuclear material come from?

Uranium-233 and plutonium do not occur naturally but can be formed in nuclear reactors and extracted from the highly radioactive spent fuel by chemical separation. Uranium-233 can be produced in special reactors that use thorium as fuel. Only small quantities of uranium-233 have ever been made in the United States. Plutonium is produced in reactors using U-238/U-235 fuel. No U.S. commercial plutonium reprocessing plant is currently licensed by the NRC for operation. Uranium enriched in uranium-235 is created by an enrichment facility (see Uranium Enrichment). The NRC regulates two gaseous diffusion enrichment plants operated by the U.S. Enrichment Corporation.

Why is control of special nuclear material important?

Congress enacted Title I of the Atomic Energy Act of 1954 , as part of President Eisenhower's Atoms for Peace program, including the clause:
Source and special nuclear material, production facilities, and utilization facilities are affected with the public interest, and regulation by the United States of the production and utilization of atomic energy and of the facilities used in connection therewith is necessary in the national interest to assure the common defense and security and to protect the health and safety of the public.
Special nuclear material is only mildly radioactive, but it includes some fissile material -- uranium-233, uranium-235, and plutonium-239 -- that, in concentrated form, can be the primary ingredients of nuclear explosives. These materials, in amounts greater than formula quantities, are defined as "strategic special nuclear material" (SSNM). The uranium-235 content of low-enriched uranium can be concentrated (i.e., enriched) to make highly enriched uranium, the primary ingredient of an atomic bomb.

The NRC regulates peaceful use of special nuclear material through licensing and oversight of licensee operations.

NEXT-GENERATION SATELLITE

FROM: NASA
Next-Generation Satellite Prepared for Launch

The Tracking and Data Relay Satellite (TDRS-K) spacecraft is part of the next-generation series in the Tracking and Data Relay Satellite System, a constellation of space-based communication satellites providing tracking, telemetry, command and high-bandwidth data return services.

Launch of the TDRS-K on the Atlas V rocket is planned for January 29, 2013. The first stage of the Atlas V rocket that will carry the Tracking and Data Relay Satellite, TDRS-K, into orbit has been erected at Cape Canaveral Air Force Station's Space Launch Complex 41 in Florida. Photo Credit-NASA-Ben Smegelsky

CAPE CANAVERAL, Fla. -- At Cape Canaveral Air Force Station's Space Launch Complex 41 in Florida, the Centaur stage has been mated to the Atlas V rocket that will carry the Tracking and Data Relay Satellite, TDRS-K, into orbit. The TDRS-K spacecraft is part of the next-generation series in the Tracking and Data Relay Satellite System, a constellation of space-based communication satellites providing tracking, telemetry, command and high-bandwidth data return services. Photo credit-NASA-Charisse Nahser.

The Gravity of Water :

The Gravity of Water :

WHITE HOUSE PHOTO OF NEETING TO DISCUSS NEWTOWN SCHOOL TRADGEDY

FROM: THE WHITE HOUSE
             
Vice President Joe Biden listens to Annette Nance-Holt as she holds a photo of her son Blair, who was shot and killed while riding a bus from school in 2007, during a meeting in the Eisenhower Executive Office Building in Washington, D.C., Jan. 9, 2013. The Vice President, along with Attorney General Eric Holder, met with representatives of victims’ groups and gun safety organizations as part of the Administration’s effort to develop policy proposals in response to the tragedy in Newtown, Conn. Colin Goddard, who was shot four times at Virginia Tech in 2007, is seated second from left. (Official White House Photo by David Lienemann)

FLORIDA WOMAN AGREES TO PPAY $21 MILLION PENALTY FOR NOT DISCLOSING SWISS BANK ACCOUNT INCOME

FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, January 8, 2013

South Florida Woman Pleads Guilty to Failing to Disclose Income from Swiss Bank Accounts and Agrees to $21 Million Penalty

Mary Estelle Curran of Palm Beach, Fla., pleaded guilty today in the U.S. District Court for the Southern District of Florida to filing false tax returns for tax years 2006 and 2007, the Justice Department and Internal Revenue Service, Criminal Investigation (IRS-CI) announced.

According to court documents, Curran, a U.S. citizen, maintained undeclared bank accounts at UBS AG in Switzerland and a bank in Liechtenstein, which she inherited from her husband in 2000. The accounts at UBS AG were held in the names of nominee foreign entities, including the Flognet Foundation and Norega Investment. The account earned income each year, which Curran failed to report on her 2001 through 2007 individual income tax returns.

According to the plea agreement, Curran’s conduct caused a tax loss to the government of approximately $667,716. The value of all undeclared foreign financial accounts owned or controlled by Curran exceeded $42 million in 2007. In order to resolve her civil liability for failure to report her foreign bank accounts, Curran has agreed to pay a civil penalty in the amount of 50 percent of the high balance of the accounts, which is $21,666,929.

"The Justice Department continues to pursue those who hide income and assets from the IRS through the use of nominee businesses and offshore bank accounts," said Assistant Attorney General Keneally. "U.S. taxpayers who fail to come forward in the voluntary disclosure program risk prosecution and substantial fines, as this case demonstrates."

"U.S. citizens who seek to avoid their tax obligations by hiding income in undeclared bank accounts abroad should by now be fully on notice that they will be held accountable for their actions, both civilly and criminally," said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. "The U.S. Attorney’s Office is committed to helping the IRS enforce our nation’s tax laws."

"Offshore accounts can no longer be used to hide from the IRS and avoid paying the fair amount of tax," said Richard Weber, Chief, IRS Criminal Investigation. "IRS Criminal Investigation is aggressively pursuing tax cheats – both domestically and internationally. We owe it to every American taxpayer to use all lawful means to identify and prosecute both those who evade their taxes and those who assist them in evading their tax obligations."

Curran faces a potential maximum prison term of six years. A sentencing date has not been set.

Assistant Attorney General Keneally and U.S. Attorney Ferrer thanked Special Agents of IRS - CI, who investigated the case, and Tax Division Senior Litigation Counsel Mark F. Daly and Trial Attorney Michelle M. Petersen and Assistant U.S. Attorney Thomas P. Lanigan, who prosecuted the case.

U.S. DOD PHOTOS: 2012 WARRIOR GAMES

FROM: U.S. DEPARTMENT OF DEFENSE,
Lighting Ceremony - Retired Army veteran Melissa Stockwell performs the torch-lighting ceremony with Royal Marine Capt. Simon Maxwell to kick off the 2012 Warrior Games in Colorado Springs, Colo., April 30, 2012. The U.S. Olympic Committee hosts the sporting competition for wounded members of the armed services. U.S. Army photo by Sgt. Tierney P. Nowland

Warrior Dive - Marine Corps Cpl. Marcus Chischilly, a wounded warrior with the West Team, dives in the pool at the start of the 50-meter race during the 2012 Marine Corps Trials hosted by the Wounded Warrior Regiment on Marine Corps Base Camp Pendleton, Calif., Feb. 21, 2012. Chischilly won the silver medal in the race for single-leg amputees. Wounded warrior Marines, veterans and allies are competing in the second annual trials. U.S. Marine Corps photo by Sgt. Mark Fayloga

Rugby Risk - William Groulx, center, U.S. wheelchair rugby captain and retired Navy sailor, falls after a member of the British team crashes into him at the basketball arena during the 2012 Paralympic Games in London, Sept. 5, 2012. DOD photo by U.S. Air Force Master Sgt. Sean M. Worrell.

 

MARS MOSAIC

FROM: NASA
Panoramic View From Near 'Point Lake' in Gale Crater, Sol 106

This panorama is a mosaic of images taken by the Mast Camera (Mastcam) on the NASA Mars rover Curiosity during the 106th Martian day, or sol, of the mission (Nov. 22, 2012). The rover was near a location called "Point Lake" for an overlook of a shallow depression called "Yellowknife Bay" which is in the left third of this scene, in the middle distance.

The image spans 360 degrees, with south at the center. It has been white-balanced to show what the rocks and soils in it would look like if they were on Earth.

Image Credit-NASA-JPL-Caltech-Malin Space Science Systems

HOW INDIVIDUALS ARE AFFECTED BY THE TAXPAYER RELIEF ACT

FROM: USA.GOV
How Does the American Taxpayer Relief Act Affect You?

On January 2, 2013, President Obama signed the American Taxpayer Relief Act (ATRA) into law. This new law addresses many of the tax issues that were debated by Congress at the end of 2012, and which were referred to by many as the "fiscal cliff."

Here is what the law addressed, and how it could affect you:

The "Bush-era tax cuts"

The new law permanently extended reduced tax rates on income and capital gains and dividends if you make less than $400,000 ($450,000 if you’re married and file jointly). If you make more than that, the marginal tax rate for income beyond the new levels rose from 35 percent to 39.6 percent.

This change also increased the top tax rate on long term capital gains and dividends from 15 percent to 20 percent and made changes to several other tax credits, the marriage penalty and education-related incentives.

The Estate Tax Rules

ATRA permanently extended the estate tax laws as they currently exist, except for the top tax rate, which was increased from 35 percent to 40 percent. Now up to $5 million of an estate’s worth is exempt from taxes.

The American Recovery and Reinvestment Act of 2009 Tax Provisions

The child tax credit, some provisions surrounding the Earned Income Tax credit and an education tax credit, the American Opportunity Tax Credit, were all temporarily extended through 2017.

The Payroll Tax Reduction

There was a two percent reduction in the amount of money you paid through the Social Security payroll tax that Congress put in place in 2010. This tax reduction was not extended as part of ATRA. As a result, the tax rate reverted back to the original amount — 6.2 percent for employees and 12.4 percent for the self-employed. You may notice a change in the amount of your take-home pay in your first paycheck of the 2013 calendar year.

The ATRA also addressed several other issues, including unemployment, Medicare and other health provisions and the farm bill.

U.S. GOVERNMENT INVESTS IN HAITI

Map:  Haiti.  Credit:  CIA World Factbook.

FROM: U.S. DEPARTMENT OF STATE

U.S. Government Investments in Haiti's Rebuilding and Renewal
Fact Sheet
Office of the Haiti Special Coordinator
January 11, 2013

In early 2009, Secretary of State Hillary Rodham Clinton made Haiti a foreign policy priority and committed to working to change the way we partnered with Haiti. For more than three and a half years, the U.S. Government (USG) has worked closely to be a good partner to the government and people of Haiti. After the devastating earthquake of 2010, the U.S. worked to support the Government of Haiti (GOH) and meet the most immediate life saving and life sustaining needs on the ground. For some time the U.S. pursued two tracks of engagement and has ensured that they complement one another: the first to address immediate humanitarian and emergency aid needs; and the second to continue to pursue a strategy to promote long-term sustainable development in Haiti.

Below is a high-level overview of some of the U.S. contributions to help Haiti on a path to economic prosperity and political stability.

Government Stability and Capacity Building: The United States and other donors supported the Government of Haiti’s free and fair presidential and legislative elections in late 2010 and early 2011. These elections paved the way for the complete re-establishment of all three branches of government. The U.S. provided capacity building support, including the provision of experts to work within the Government of Haiti and the provision of temporary office space. As a result, the Government of Haiti has been able to lead more effectively in many areas of governance, including efforts to: combat crime; prepare for emergency responses to Hurricanes Tomas, Tropical Storms Isaac and Sandy; collect taxes; increase transparency; alleviate housing shortages; promote foreign direct investments; and expand basic services for Haitians, including in education and health services.

Energy: Only 12 percent of the population has regular legal access to electricity. The Martelly Administration has made access to energy one of its priorities and views it as a necessary step in Haiti’s economic development.
The U.S. Government, through USAID, is funding the services of an experienced management firm to help improve the commercial and operational sustainability of Haiti's electric utility EDH. The firm is working with the utility to expand active customers by a third. Progress to date shows significant improvements in the utility’s financial performance and service delivery, having added over 20,000 households and business as active customers.
The USG is helping to improve the reliability of electricity in Port-au-Prince through renovation of five electricity sub-stations. The project is expected to be complete by the end of February 2013.
The USG commissioned a 10 mega-watt power plant in the north, contributing to reliable power for the tenants of the Caracol Industrial Park as well as houses around the park. The first households in the northern town of Caracol, which never had electricity before, were connected to the grid of the power plant in October 2012, designed to provide reliable power to residences and industry.
The USG also launched a competitive tender in December 2012 [available online at www.FBO.gov] to design, build, and operate Haiti’s first industrial scale solar facility. This is part of an ongoing effort to work with Haitian partners to harness renewable energy opportunities.

Housing: The United States has worked to address immediate shelter needs, including the removal of rubble to make space for shelter, as well as the construction of permanent housing settlements.
To date, the Government of Haiti, the international community, private firms, and individual households have removed approximately 7.4 million cubic meters of rubble, or 74 percent of the rubble created by the earthquake. The USG has removed one third of this total. USAID-funded programs helped some 65,700 households (roughly 328,000 individuals) find safer housing through the construction of temporary shelters (29,000), rental vouchers, and housing repairs (6,000).
The United States is currently constructing two new settlements, with construction underway of 750 homes in the north near Caracol and 156 homes near Port-au-Prince in the Saint Marc region. The next five settlements of approximately 1,250 houses, where all engineering designs, environmental studies and water tests have been completed and tenders are due to be launched shortly, will be developed together with a diverse set of partners such as the Qatar Haiti Fund, the Inter-American Development Bank, and the American Red Cross, enabling the United States to leverage resources for greater impact.
Business and agricultural loans: Eighty percent of the credit available in Haiti is used by only ten percent of the borrowers.
The United States has partnered with Haiti’s existing banks, credit unions, and other lenders to provide credit guarantees and help design new ways to lend to entrepreneurs and farmers.
The United States has supported efforts to computerize data and processes for loan officers, in order to support approximately $21.7 million in loans disbursed to over 6,500 businesses.
Agriculture: With more than 60 percent of Haitians reliant on agriculture for income, the United States has expanded its support in the sector through its global food security initiative, Feed the Future.
To date the United States has worked with more than 9,700 farmers, introducing improved seeds, fertilizer, and technologies.
2012 results include a 58 percent increase in rice yields, 341 percent increase in corn, 100 percent increase in bean yields, and 21 percent increase in plantain yields. Our goal is to increase incomes for 100,000 farmers in three geographical focus regions over five years.
Additionally, Feed the Future just launched the bean planting season at a cost of another $1 million, which will provide farmers with seeds and other inputs.
Transformation of Haiti’s North: The United States is partnering with the Government of Haiti, the Inter-American Development Bank, and the private sector to create access to jobs, housing, electrification, transportation, and agricultural development in Haiti’s north. These types of investments, when married with the entrepreneurial spirit of the Haitian people, are helping to catalyze growth in the region. As part of this partnership, by 2015, the United States will have helped create:
New housing settlements for over 13,000 people complete with electricity, water, social services, and job opportunities nearby;
15,000 new formal jobs at the Caracol Industrial Park, one of the Caribbean’s largest industrial parks, which is projected to grow to 20,000 jobs by 2016;
Reliable electricity to up to 100,000 people and businesses that currently have none; and,
Rehabilitated health clinics and reference hospitals in regional towns.
The first tenant of the Caracol Industrial Park, Sae-A, one of the largest garment manufacturers in the world, already has 1,300 employees, most of them women who have never had a formal sector job before. Many are graduates of a new, nearby vocational training center that the USG built and supports. Sae-A is on track to reach the goal of creating 20,000 jobs by 2016. A second tenant, a Haitian company, has moved in September of 2012 and a third tenant is due to start operations shortly. Additionally, a new U.S.-funded power plant opened this year to serve the industrial park and surrounding communities. Nine buildings, including factories, warehouses, and offices, have been built. At least twelve new buildings are scheduled for completion in 2013, more than doubling the industrial park’s capacity.

Health Services: Prior to the earthquake, the United States was providing access to health care for approximately 50 percent of the Haitian population; after the earthquake, the United States has been able to maintain this level of care. The United States provides a basic package of health services (primarily maternal and child health) and more sophisticated HIV/AIDS prevention and treatment services.
The Haitian Ministry of Health and Population is working to achieve a sustainable network of health facilities. To help them realize this goal, the United States entered into the Health Partnership Framework with the Haitian government, which promotes sustainability by emphasizing country ownership and leadership, and includes a five-year plan that encompasses contributions of the government, civil society, the private sector, and other donors.
The United States supports 251 primary care and 52 secondary care sites nationwide.
The United States increased the number of eligible patients on anti-retroviral (ARV) treatment from 60 percent in March 2012 to 65 percent in June 2012. We are working with the Global Fund to Fight HIV/AIDS, tuberculosis, and malaria to reach universal coverage of ARVs for all eligible patients by June 2015.
The United States recently convened the two largest umbrella networks of disabled people organizations to coordinate a single national strategy and move forward with plans to strengthen local advocacy groups. In addition, work is underway to establish four to six disabled service centers nationwide and to build government capacity to promote inclusion of people with disabilities in policy and legislation.
Through June 2012, the United States provided expertise and more than $95 million during the emergency phase of the cholera response.
Education: President Martelly has identified free and universal education as one of the key priorities of his administration.
Since January 2010, the United States has constructed more than 600 semi-permanent furnished classrooms and provided teaching and learning kits enabling more than 60,000 children and 1,200 teachers to return to school.
Over the next two years, the United States will partner with the Haitian Ministry of Education to develop and test an instructional model in over 300 schools, reaching 28,000 students, and training 900 teachers.
Improving Access to Justice and Legal Assistance: The rule of law, as supported by justice and security institutions, is a basic foundation of citizen security and economic growth. The United States is committed to supporting a responsive, just, and effective Government in Haiti. Our efforts include:
Supporting the formation of the Superior Judicial Council (CSJP), a new body which will provide oversight of the judiciary – a major step towards judicial independence in Haiti;
Providing legal assistance to over 2,700 individuals in Cite Soleil, Martissant, Saint-Marc, and Petit-Goave since October 2011;
Renovating corrections facilities; and
Providing equipment and technical assistance to reduce pre-trial detention and improve case management in targeted jurisdictions.
Strengthening the Security Sector: The Haitian National Police (HNP) is Haiti’s sole indigenous security force. Improving and expanding the capacity of the HNP is critical to the Government of Haiti’s ability to maintain public order and protect vulnerable populations.
The United States is supporting the recruitment and training of new officers, bolstering the counternarcotics unit, and providing communications equipment.
The UN Stabilization Mission in Haiti (MINUSTAH) also helps promote a secure and stable environment in Haiti. U.S. support includes 100 UN police officers, 10 corrections officers, and nine military officers seconded to MINUSTAH.
Protecting Human Rights and Vulnerable Populations: Increasing protection of human rights and vulnerable populations is key to U.S. assistance in Haiti. The United States is funding a number of initiatives to provide services to victims of abuse, and empower vulnerable populations. Efforts include:
Supporting economic opportunities for women and survivors of sexual violence through microcredit and short-term jobs programs; and
Providing job skills training, health services, and reintegration and repatriation assistance to Haitian migrants.

'BUDGET GYMNASTICS'

FROM: U.S. DEPARTMENT OF DEFENSE

Air Force Leaders Call for End to 'Budget Gymnastics'
By Jim Garamone
American Forces Press Service


WASHINGTON, Jan. 11, 2013 - The government's "ongoing budget gymnastics" are having an effect on service members, Air Force Secretary Michael B. Donley said here today.

Donley and Gen. Mark A. Welsh III, the Air Force chief of staff, said the looming "fiscal cliff" as well as conducting government business under repeated continuing budget resolutions create an atmosphere of unease among Air Force military and civilian personnel.

"Failure to enact a settled budget leads to repeated budget iterations, which, along with the overhanging threat of large and largely arbitrary cuts, creates wasteful churn," Donley said during a Pentagon news conference.

This churn could lead to many airmen voting with their feet and leaving the service, he said. "They see and understand what's going on in Washington," he added. "They're very well-connected. They're the most educated force we have ever had. And they stay connected to what's going on in our Air Force and what's going on in our military [and] what's happening in Washington. ... They are watching this and ... making their own judgments about the process."

The secretary said it is extremely inefficient and disruptive to operate a "$100-plus billion enterprise, which is the United States Air Force, on a budget a month or two at a time."

Welsh said that although re-enlistment remains solid for the service, the burden of deploying time and again since 1990 and working to keep "antique" aircraft such as the B-52 flying is wearing on airmen.

"They're not begging to get out the door," the general said. "Our retention rates are great. They're still proud of who they are and what they do. They express it every single day. But they want to know what's coming."

He said he has been working to keep airmen informed. "They're phenomenally engaged, and so we're trying very hard to keep them informed and improve the communication with them."

"Communication for us right now is absolutely essential internally if we're going to be successful down the road'" the general added. "And so we're working this pretty hard."

U.S.-SOMALIA RELATIONS

The orange and tan colors of this high-oblique photograph of the Horn of Africa indicate an arid-to-semiarid landscape in the northern half of the east African country of Somalia. Except for the darker areas where thicker vegetation can be found (usually in elevated areas), most of the vegetation in this part of Somalia is shrub brush and grasslands. The southern extent of the Saudi Arabian Peninsula is visible north across the Gulf of Aden. Image courtesy of NASA. From: CIA World Factbook.

FROM: U.S. STATE DEPARTMENT

The United States established diplomatic relations with Somalia in 1960, following its constituent parts' independence from British and Italian administrations, respectively. A 1969 coup replaced Somalia's elected government with military rule that reflected both ideological and economic dependence on the Soviet Union. Following war with Ethiopia in the 1970s, Somalia began turning toward the West, including the United States, for international support, military equipment, and economic aid. Civil war in the 1980s led to the collapse of Somalia's central government in 1991.

Following this, various groupings of Somali factions, sometimes supported by outside forces, sought to control the national territory (or portions thereof) and fought one another. From 1992-94, the United States took part in operations that aimed to provide assistance to Somalis. Numerous efforts at mediation and reconciliation were attempted over the years, and a transitional government was established in 2004. In 2012, Somalia completed its political transition with the election of a new federal parliament and speaker, the national constituent assembly's adoption of a provisional constitution, the election of a new president, President Hassan Sheikh Mahamud, and the naming of a new prime minister and cabinet.

U.S. foreign policy objectives in Somalia are to promote political and economic stability, prevent the use of Somalia as a haven for international terrorism, and alleviate the humanitarian crisis caused by years of conflict, drought, flooding, and poor governance. The United States is committed to helping Somalia's Government strengthen democratic institutions, improve stability and security, and deliver results for the Somali people. It has urged the Somali leadership to continue to consolidate gains by helping local governance structures emerge through community dialogue and reconciliation, rapidly providing services, and drafting legislation to facilitate implementation of the provisional constitution. The United States also has welcomed the African Union Mission in Somalia's (AMISOM) success in driving the al-Shabaab terrorist organization out of strategically important population centers, and has underscored the continued U.S. commitment to support AMISOM and the Somali national forces in their responsibility of extending security throughout Somalia.

Although the United States never formally severed diplomatic relations with Somalia, the U.S. Embassy in Somalia was closed in 1991. The United States has maintained regular dialogue with Somali authorities and other key stakeholders in Somalia through the U.S. Embassy in Kenya, which also handles consular coverage for Somalia, including to U.S. citizens in the self-declared "Republic of Somaliland."

U.S. Assistance to Somalia

The United States has provided humanitarian assistance in Somalia to address the problems of drought, famine, and refugees. U.S. development assistance in Somalia has supported the establishment of a post-transitional national government working to foster a unified Somali state in the long term. U.S. assistance also aims to focus on the more stable areas of Somaliland and the semi-autonomous state of Puntland. The United States works closely with other donor partners and international organizations to support social services and the development of an effective and representative security sector, including military, police, and justice sector, while supporting ongoing African Union peacekeeping efforts.

Bilateral Economic Relations

The United States has little trade or investment with Somalia. U.S. exports to Somalia include legumes, grain, baking-related goods, donated products, and machinery. U.S. imports from Somalia include precious stones and low-value shipments.

Somalia's Membership in International Organizations

Somalia and the United States belong to a number of the same international organizations, including the United Nations, International Monetary Fund, and World Bank.

Wisconsin Guard artillery unit ready for Afghanistan mission

Wisconsin Guard artillery unit ready for Afghanistan mission

REHEARSING THE INAUGURATION BAND AND HONOR GUARD

Air Force Col. Larry H. Lang, commander of the U.S. Air Force Band, conducts during a dress rehearsal for the Inaugural Parade, at Joint Base Andrews, Md., Jan. 11, 2013. DOD photo by Claudette Roulo

FROM: U.S. DEPARTMENT OF DEFENSE
Air Force Band, Honor Guard Prepare for Inauguration Day
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

WASHINGTON, Jan. 11, 2013 - Preparation is nothing new to the U.S. Air Force Band and Honor Guard as they get ready for Jan. 21's 57th presidential inauguration, bringing a total Air Force presence to the massive event.

After a dress rehearsal here today, Air Force Col. Larry Lang, commander and conductor of the U.S. Air Force Band, talked about some of the band's efforts as the musical airmen prepare to continue the military tradition of support to presidential inaugurations.

"We have a ceremonial mission, so we're always preparing for that," he said. "We do parades and ceremonies throughout the year, so it's not something new to us. The difference here is the size of it."

Lang said the magnitude of the event requires more members of the band to participate.

"The band is 184 members. It's divided into six different flights – six different ensembles, basically," he said. "We're using about 100 of those for this particular parade. So we've been rehearsing really hard; we rehearsed all day yesterday."

Lang said tomorrow's rehearsal will include the Air National Guard and the Air Force Reserve, before joining all the military services on the actual parade route Jan. 13.

"I think we're preparing very steadily, very focused, and by the time the inauguration gets here, we'll be ready," he said.

The band commander and conductor, an El Paso, Texas, native and 22-year Air Force band officer, said he looks forward to representing the Air Force in his first inauguration.

"This is exciting," Lang said. "Even though the band performs for the president and the vice president on a fairly regular basis, I am excited because this is on a worldwide stage. We have the privilege of representing all of our airmen all around the world, and I'm looking forward to it."

Senior Airman Anthony Wagner, a Cambridge, Ill., native and noncommissioned officer for the U.S. Air Force Honor Guard's color team, also is participating in his first inauguration.

"I feel pretty honored, pretty proud and a little nervous as well," he said. "Representing the Air Force to the whole world, you want to put on a good show. I hope I can represent them well, because everyone's seeing it as me carrying the nation's colors, representing our country to the world as well."

Wagner, who has served on the Air Force Honor Guard for three and a half years, said he'll be nervous, but still confident, because preparation is second nature to the Honor Guard.

"The nerves, they'll be there," he said. "It's not just another job, but at the same time, we're prepared. And we've done many other big jobs as well, so we feel comfortable with what we're doing."

Wagner said he'll advise his younger troops to stay cool and collected and that if they're doing their job to the best of their abilities, everything will be fine.

"We're excited and pretty honored that we get this opportunity," he said.

From a planning and operational standpoint, senior NCOs such as Master Sgt. Kimberly Muhlecke are charged with maintaining the high standards of the Air Force Honor Guard.

"I can't say there wasn't a time since I got in the Air Force Honor Guard that we weren't prepping for this day," Muhlecke said. "Every single ceremony is unique, but they do share some commonalities. I feel like our guys, as sharp as they are, are ready all the time, to be honest."

The standardizations NCO said the biggest difference is adjusting to the layout of the venue for a particular event, and "making what we do so well fit into that venue."

One challenge, Muhlecke noted, will be the "nine-by-nine" formation in which 81 airmen march together. Formations for most parades, she added, consist of 15 to 18 airmen.

"This is only the second time we've used the nine-by-nine, so we have to get all of our airmen used to marching that large," she said.

Muhlecke said she enjoys working alongside the "staunch professionals" in the Honor Guard, and that she looks forward to seeing all the military services together during the inauguration.

"I'm looking forward to seeing all the other elite members of my sister services and brother services," she said. "We always look good when we're out in full force."

HEDGE FUND MANAGER AND FIRM TO PAY ALMOST $5 MILLION FOR ENGAGING IN DECEPTIVE CONDUCT

FROM: U.S. SECRUITIES AND EXCHANGE COMMISSION

Court Orders New York-Based Hedge Fund Manager and Firm to Pay Nearly $5 Million in Disgorgement and Penalties

The Securities and Exchange Commission announced today that, on January 3, 2013, Judge Paul A. Engelmayer of the U.S. District Court for the Southern District of New York entered final judgments against hedge fund manager Chetan Kapur and his firm, ThinkStrategy Capital Management (ThinkStrategy), ordering them to jointly and severally pay disgorgement of $3,988,196.59 and civil penalties in the amount of $1,000,000.

The final judgments stem from a partially-settled civil injunctive action filed by the Commission on November 10, 2011. The SEC’s complaint alleged that over nearly seven years, Kapur and ThinkStrategy engaged in a pattern of deceptive conduct designed to bolster their track record, size, and credentials. In particular, Kapur and ThinkStrategy materially overstated the performance of their ThinkStrategy Capital Fund, giving investors the false impression that the fund’s returns were consistently positive and minimally volatile. The complaint also alleged that Kapur and ThinkStrategy repeatedly inflated the firm’s assets, exaggerated the firm’s longevity and performance history, and misrepresented the size and credentials of ThinkStrategy’s management team.

With respect to a second hedge fund they managed, the TS Multi-Strategy Fund, the complaint alleged that Kapur and ThinkStrategy misstated the scope and quality of due diligence checks on certain managers and funds selected for inclusion in the fund-of-funds’ portfolio. As a result, the TS Multi-Strategy Fund made investments in certain hedge funds that were later revealed to be Ponzi schemes or other serious frauds, including Bayou Superfund, Valhalla/Victory Funds, and Finvest Primer Fund.

The Commission charged Kapur and ThinkStrategy with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. Without admitting or denying the allegations in the Commission’s complaint, Kapur and ThinkStrategy consented to the entry of November 18, 2011 judgments permanently enjoining them from violating the above provisions. Kapur also consented to a November 30, 2011 SEC order permanently barring him from association with any investment adviser, broker, dealer, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization.

TRAFFICKING IN COUNTERFEIT GM DIAGNOSTIC EQUIPMENT GAINS MAN PRISON SENTENCE

FROM: U.S. DEPARTMENT OF JUSTICE

Friday, January 11, 2013
Virginia Man Sentenced for Trafficking in Counterfeit Gm Diagnostic Equipment

WASHINGTON – A Virginia man was sentenced today in federal court to serve one year and one day in prison for selling counterfeit General Motors (GM) automotive diagnostic devices used by mechanics to identify problems with and assure the safety of motor vehicles, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride, FBI Assistant Director Ronald T. Hosko of the Criminal Investigative Division and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office.

Justin DeMatteo, 31, of Saxe, Va., was sentenced by Senior U.S. District Judge Claude M. Hilton in the Eastern District of Virginia, following his Sept. 26, 2012, guilty plea to one count of trafficking in goods bearing counterfeit marks. In addition to his prison term, DeMatteo was sentenced to three years of supervised release and ordered to pay restitution of $328,500 (the full amount of GM’s losses). At DeMatteo’s plea proceeding, the court entered a consent order of forfeiture requiring him to forfeit $109,074 in criminal proceeds and all facilitating property and contraband seized during the execution of search warrants at his business and home on Dec. 15, 2011.

In court documents, DeMatteo admitted he sold counterfeit GM Corporation-branded "Tech 2" vehicle diagnostic systems between January and May 2011. The Tech 2 is a hand-held computer used to diagnose problems in vehicles that use electronic controls and interfaces. For newer vehicles, GM designed a new diagnostic interface – the Controller Area Network diagnostic interface (CANdi) module, which serves as an enhancement to the Tech 2 and completes the interface necessary to communicate with future on-board computer systems.

DeMatteo also admitted he offered for sale purported Tech 2 units and CANdi modules that bore counterfeit GM marks. DeMatteo sold the counterfeit Tech 2 units on eBay and accepted payment via PayPal. DeMatteo purchased the units from unauthorized manufacturers in the People’s Republic of China (PRC) and in many cases had them drop-shipped directly from the PRC to U.S. customers. On Dec. 15, 2011, federal agents executed search warrants at DeMatteo’s residence in Saxe and place of business in South Boston, Va. Among other things, agents seized numerous counterfeit GM Tech 2 units and CANdi modules, and various computer equipment and documents that contained evidence linking DeMatteo to the sale of the counterfeit Tech 2 units. According to the stipulated statement of facts and plea agreement, the number of Tech 2 and CANdi units sold by DeMatteo or seized during the searches totaled nearly 100. The retail price of 100 authentic products would have been more than $380,000.

The case was prosecuted by Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia and Trial Attorney Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and was investigated by the FBI’s Intellectual Property Rights Unit, as part of "Operation Engine Newity," an international initiative targeting the production and distribution of counterfeit automotive products that impact the safety of the consumer, and the FBI Richmond Division.

The FBI is a full partner at the National Intellectual Property Rights Coordination Center (IPR Center). The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. The IPR Center uses the expertise of its 19 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to intellectual property (IP) theft. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety, the U.S. economy and the war fighters.

GETTING READY FOR A SMALLER AIR FORCE

Photo:  B-2.  Credit:  U.S. Air Force

FROM: U.S. DEPARTMENT OF DEFENSE
Smaller Air Force Will Protect Quality, Readiness
By Cheryl Pellerin
American Forces Press Service

WASHINGTON, Jan. 11, 2013 - To roll with unprecedented strategic and fiscal challenges, the best path forward for the Air Force is to become smaller to protect a high-quality, ready force, top Air Force officials said today.

Air Force Secretary Michael B. Donley and Air Force Chief of Staff Gen. Mark A. Welsh III briefed Pentagon reporters, addressing budget constraints, progress in the year just passed, and the development of future capabilities.

"Like the other services, the Air Force will work with our defense and national leadership to fine-tune our plans and programs as we confront both a dynamic security environment and the nation's fiscal challenges," Donley said.

"We'll adjust and compromise as necessary," he added, "but we will need broad consensus with the Congress on the way forward to avoid a hollow military. This must be our priority."

The Air Force secretary said the service would continue to balance competing defense needs with the size of its force structure, readiness and modernization.

"To avoid the perils of a hollow Air Force," the secretary said, "we believe the best path forward is to become smaller in order to protect a high-quality and ready force that will improve in capability over time."

Donley also described progress and accomplishments for the Air Force in 2012, including confronting the problem of sexual assaults and unprofessional relationships at basic military training and convicting offenders.

"We're strengthening our sexual assault prevention efforts," Donley said, citing recent initiatives that implement health and welfare inspections and establish a special victims' counsel program throughout the Air Force. The inspections are designed to reinforce expectations for the work environment, correct deficiencies and deter disruptive conditions, Air Force officials said.


Last year in space launch operations, the Air Force completed nine national security space launch campaigns in the Evolved Expendable Launch Vehicle program, bringing the total number of consecutive EELV program launches to 55, and total consecutive national security space missions to 90, Donley said.

The Air Force implemented a new EELV acquisition strategy to efficiently purchase up to 36 existing rocket stages, called "cores," and is making it easier for commercial space companies, starting as early as fiscal 2015, to compete to produce up to 14 new core stages and in the process become new entrants in contributing to rigorous national security space operations.

"This, for the first time, gives new entrants a clear path to compete for national security space missions," Donley said.

The Air Force's procurement strategy is driving down satellite costs, he said, resulting in savings of more than $1 billion on the advanced extremely high frequency satellites. This system is a joint service satellite communications system that will provide survivable global, secure, protected and jam-resistant communications for high-priority military ground, sea and air assets.

The Air Force also is projecting savings of more than $500 million for the Space Based Infrared Systems program, which the officials say will provide critical missile defense and warning capability well into the 21st century.

Donley also reported on a vexing issue with the F-22 Raptor fighter jet. "We've resolved as best we know how the previously unexplained hypoxia incidents in the F-22 and put this critical aircraft on the path from return to flight to full operational capability," he said.

Also in 2012, Donley told reporters, the next-generation F-35 Lightning II joint strike fighter "continues to mature, and with the completion of our operational utility evaluation, the OUE, training at Eglin Air Force Base [in Florida] will begin this month." The OUE is a critical step in beginning joint strike fighter pilot and maintenance training for the service.

Welsh, who became Air Force chief of staff in 2012, said Donley's tough budget decisions, reflected in the fiscal 2013 National Defense Authorization Act, translate into an active duty Air Force of about 329,000 airmen, about the same size it was when the Air Force became a separate service in 1947. In the past 10 years, the Air Force has retired about 1,900 airplanes and dropped about 30,000 active-duty billets, he said.

"None of those things is inherently bad, by the way," the general added. "They are simply reflective of today's fiscal and strategic environment."

For the Air Force, Welsh said, the future depends on "figuring out how to integrate data, how to better integrate information, how to move it quicker, how to connect platforms and sensors together."

"That's not as expensive as new weapons systems, ... and it benefits us in the way we do the job today," he added. "So we have people all around the Air Force focused on that problem right now."

Donley said the Air Force has been through many ups and downs over the years and the way through the challenges is to support the service's active, Air National Guard, Reserve and civilian members and their families in their work.

"I am confident that by making prudent choices -- difficult decisions among force structure, readiness and modernization -- we can and will stay the world's finest air force," he said.