JUSTICE CHARGES FIVE CORPORATIONS WITH IMPORTING AND SELLING HAZARDOUS TOYS

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, February 6, 2013
Five Individuals and Five Corporations Charged in New York for Importing and Selling Hazardous and Counterfeit Toys

Five individuals and five corporations have been charged in an indictment unsealed today in Brooklyn, N.Y., for allegedly importing hazardous and counterfeit toys from China for sale in the United States, announced Assistant Attorney General Lanny Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of New York Loretta E. Lynch; Special Agent in Charge of Homeland Security Investigations (HSI) in New York James T. Hayes Jr.; Robert E. Perez, New York Field Operations Director of Customs and Border Protection (CBP); Chairman Inez Tenenbaum of the Consumer Product Safety Commission (CPSC); and Commissioner Raymond W. Kelly of the New York City Police Department (NYPD).

The 24-count indictment charges Chenglan Hu, 51, Hua Fei Zhang, 52, and Xiu Lan Zhang, 60, all Chinese nationals and residents of Queens, N.Y., and Guan Jun Zhang, 29, and Jun Wu Zhang, 28, both naturalized citizens and Queens residents, along with their closely held companies Family Product USA Inc., H.M. Import USA Corp., ZCY Trading Corp., Zone Import Corp. and ZY Wholesale Inc., with importing and trafficking hazardous toys in violation of the Consumer Product Safety Act (CPSA) and toys bearing copyright-infringing images and counterfeit trademarks, smuggling, money laundering and structuring.

"The defendants are accused of importing and selling toys that posed significant health hazards to children or were the product of blatant intellectual property theft," said Assistant Attorney General Breuer. "They allegedly retooled their operations many times in order to avoid detection, and despite repeated citations by the authorities, they continued to peddle counterfeit toys featuring Dora the Explorer, SpongeBob SquarePants and other popular children’s characters. Today’s actions reflect a Justice Department focused on ensuring that consumers receive safe and legitimate goods."

"For years, the defendants sought to enrich themselves by importing and selling dangerous and counterfeit children’s toys without regard for the law or the health of our children," said U.S. Attorney Lynch. "Profits from the counterfeit items, as well as toys riddled with lead and choking hazards, went to provide the defendants with luxury cars. We stand committed to protecting the residents of our communities from those who would engage in such conduct."

The five individual defendants were arrested this morning, and a federal task force comprising HSI agents, other federal agents and NYPD officers, aided by CBP officers and CPSC investigators, executed four search warrants and nine seizure warrants. The agents, officers and investigators searched the defendants’ warehouse, two residences and an email account. In addition, three luxury vehicles, including a Porsche and Lexus, three personal bank accounts and three corporate accounts were seized. The agents also filed lis pendens on two of the defendants’ properties in Queens, N.Y. The defendants’ initial appearances are scheduled this afternoon before U.S. Magistrate Judge Ramon E. Reyes Jr. in the Eastern District of New York.

The indictment charges that from July 2005 through January 2013 the individual defendants used their companies, the corporate defendants, to import toys from China that they sold, both wholesale and retail, from a storefront and warehouse in Ridgewood, N.Y., and other locations in Brooklyn and Queens.

According to the indictment, the defendants’ companies had children’s toys seized by CBP from shipping containers entering the United States from China on 33 separate occasions. Seventeen of the 33 seizures were of violative toys – toys prohibited from import into and distribution in the United States, under laws and regulations enforced by the CPSC, because of excessive lead content, excessive phthalate levels, small parts that presented choking, aspiration or ingestion hazards, and easily accessible battery compartments. Sixteen of the 33 seizures were of toys bearing copyright-infringing images and counterfeit trademarks, including knockoff versions of toys featuring a wide variety of popular children’s characters, such as Winnie the Pooh, Dora the Explorer, SpongeBob SquarePants, Betty Boop, Teenage Mutant Ninja Turtles, Power Rangers, Spiderman, Tweety, Mickey Mouse, Pokémon, as well as those from movies, such as the "Cars," "Toy Story" and "High School Musical."

The indictment charges that following each of the 33 seizures, the violator toy company was served written notice by CBP detailing the reason for the seizure, and a representative of the company signed a release form acknowledging the seizure and abandoning the seized goods. Additionally, the violator company and its principal were served written notice by CPSC of the specific safety violations of the toys, and each time a representative of the company signed a release form acknowledging the seizure and abandoning the seized goods.

Due to the number and volume of the seizures, the individual defendants allegedly shifted their use of the companies and alternated formal roles, in order to continue importing and distributing violative and infringing toys. Each time the number of seizures accumulated for one company, the individual defendants allegedly formed a new toy company to continue importing the violative and infringing toys.

"The people and companies involved in this illegal trade not only allegedly infringed on intellectual property rights, they placed the lives of innocent children in danger," said HSI Special Agent in Charge Hayes. "They allegedly sold toys with high lead content and cheap knock offs with substandard parts that break easily and pose a choking hazard. HSI is firm on using its unique customs expertise and law enforcement partnerships to put an end to the importation and sale of dangerous goods."

"Customs and Border Protection is on the forefront of intercepting unsafe, counterfeit products," said CBP New York Field Operations Director Perez. "We are proud to have done our part preventing these dangerous toys from getting in the hands of our children."

"Today’s action highlights the unprecedented level of cooperation and coordination among federal regulatory and law enforcement partners to keep U.S. consumers safe," said CPSC Chairman Tenenbaum. "The United States has some of the strongest toy standards and lowest lead limits in the world, and CPSC is committed to enforcing these child safety requirements at the ports and in the marketplace."

"When it comes to trademark infringement, don’t mess with Mickey or other American icons," said NYPD Commissioner Kelly.

In the indictment, the government is seeking forfeiture of the seized vehicles and bank accounts and the restrained properties, in addition to a money judgment to be determined at trial.

The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The case is being prosecuted by Trial Attorney Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Claire Kedeshian and William Campos of the Eastern District of New York. This case was jointly investigated by the HSI Intellectual Property Rights Group and the NYPD, through its participation in the New York Border Enforcement Security Taskforce, with the assistance of CPSC and CBP.

The enforcement action announced today is one of many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation, and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state, and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.

Uno sconosciuto nella notte: asteroide passa vicino alla Terra

Uno sconosciuto nella notte: asteroide passa vicino alla Terra

PRIMARY CARE WORKFORCE EXPANDING

Examination Room.   Credit:  U.S. DOD.

FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
National Health Service Corps expands the primary care workforce
Physicians to practice in communities that need them most

The National Health Service Corps awarded more than $10 million in funding for loan repayment to 87 medical students in 29 states, the District of Columbia and Puerto Rico, who will serve as primary care doctors and help strengthen the health care workforce, Department of Health and Human Services Secretary Kathleen Sebelius announced today.

Made possible by the Affordable Care Act, the National Health Service Corps’ Students to Service Loan Repayment Program provides financial support to fourth year primary care medical students in exchange for their service in the communities that need them most.

"This new National Health Service Corps initiative is an innovative approach to encouraging more medical students to work in primary care, and to bring more primary care doctors to communities," Secretary Sebelius said. "This is an important part of the administration’s commitment to building the future health care workforce."

The Health Resources and Services Administration’s (HRSA) Students to Service pilot program provides loan repayment assistance of up to $120,000 to medical students in MD and DO programs in their last year of education in return for their commitment to practice in the communities that need them most upon completion of their primary care residency.

"The average medical school debt is often more than $200,000," said HRSA Administrator Mary K. Wakefield, Ph.D., R.N. "The Students to Service program help relieve a tremendous debt burden, allowing them to follow their passion for primary care." These newest NHSC providers must provide three years of full-time service or six years of half-time service in designated rural and urban areas.

As a result of historic investments in the Affordable Care Act and the Recovery Act, the numbers of National Health Service Corps clinicians are at all-time highs. The number of providers serving in the Corps has nearly tripled since 2008. Today nearly 10,000 National Health Service Corps providers are providing primary care to approximately 10.4 million people at nearly 14,000 health care sites in urban, rural, and frontier areas.

Statement on the Attacks on the US Facilities in Benghazi, Libya before the Senate Armed Services Committee

Statement on the Attacks on the US Facilities in Benghazi, Libya before the Senate Armed Services Committee

USS COLE BOMBER SUSPECT HEARINGS DELAYED

FROM: U.S. DEPARTMENT OF DEFENSE
Mental Health Test Delays Cole Bombing Suspect Hearings
By Donna Miles
American Forces Press Service


FORT MEADE, Md., Feb. 7, 2013 - Pretrial hearings for the suspected USS Cole bomber are on hold until mid-April as doctors assess his mental competency and the military commission determines how that will affect future proceedings.

The latest round of hearings for Abd al-Rahim al-Nashiri kicked off Jan. 4 at Naval Station Guantanamo Bay, Cuba, and had been scheduled to conclude today.

However, that schedule got derailed after the prosecution requested a mental-health assessment, challenging the defense claim that Nashiri suffers from long-term post-traumatic stress allegedly caused by enhanced interrogation techniques the CIA used on him before he was transferred to Guantanamo Bay.

Members of the defense questioned what such an assessment would provide, telling the commission judge, Army Col. James L. Pohl, they lack faith in any medical practitioner the convening authority might appoint to conduct it. Pohl authorized the exam, but granted the defense's request that Dr. Vincent Iacopino, a member of the Physicians for Human Rights organization with expertise in torture, be called on to provide advice on how to conduct it without "doing harm."

Iacopino testified via teleconference Feb. 5, explaining special requirements for mental health exams on torture victims. He acknowledged that he has neither met nor examined Nashiri.

Dr. Sondra Crosby, who reportedly has examined hundreds of torture victims as director of medical care at the Boston Center for Refugee Health and Human Rights, is expected to conduct the exam.

Pohl told the court Feb. 4 that he would not take up other legal and administrative issues surrounding the case until after the mental-health assessment is complete. He recessed the court following Iacopino's testimony, and proceedings are expected to continue in mid-April.

Nashiri is the alleged mastermind behind the attack off the Yemeni coast that killed 17 sailors. He is charged with perfidy, murder in violation of the law of war, attempted murder in violation of the law of war, terrorism, conspiracy, intentionally causing serious bodily injury, attacking civilians, attacking civilian objects and hazarding a vessel.

The charges arise out of an attempted attack on the USS The Sullivans in January 2000, the actual attack on the USS Cole in October 2000, and an attack on the motor vessel Limburg -- a civilian oil tanker -- in October 2002.

Nashiri is a Saudi-born member of al-Qaida. U.S. officials allege he was under the personal supervision of Osama bin Laden, and that bin Laden personally approved the attacks on the U.S. Navy ships.

SEQUESTRATION WILL CUT B-52 FLYING HOURS BY 10%



A B-52 Stratofortress flies April 20, 2011, during an eight-hour sortie to practice bomb-dropping sequences and aerial refueling. (U.S. Air Force photo/Staff Sgt. Andy M. Kin)

FROM: U.S. DEPARTMENT OF DEFENSE
Air Force Nuclear Force Anticipates Budget Constraints
By Jim Garamone
American Forces Press Service

WASHINGTON, Feb. 6, 2013 - The Air Force Global Strike Command predicts budget cuts triggered by sequestration will reduce B-52 flying hours by 10 percent and lead to a 20 percent reduction in overall flying hours should the law kick in on March 1, Air Force Lt. Gen. James M. Kowalski said.

Kowalski, the commander of Air Force Global Strike Command, spoke to reporters at the Defense Writers Group here today.

The command handles two parts of the nation's nuclear triad: manned bombers and intercontinental ballistic missiles.

The general said he's satisfied with readiness in the command today, but the fiscal problems confronting the military in the months and years ahead would, at best, cause readiness to level off or decline.

"As we look downstream at the continuing impacts of both the continuing resolution and sequestration, it's pretty clear there's going to be some degradation there," he said.

The biggest and most disturbing impact for the command is on flying hours, Kowalski said.

"We are looking at up to a 20-percent reduction in flying hours," he said.

One defense is to keep the sortie count high, Kowalski said, because the importance of flying hours is not just the time in the air for aircrews. Sorties exercise the entire process, he said, generating aircraft, fueling aircraft, arming bombs, recovering the aircraft, the maintenance of the aircraft and so on.

"All of that is exercised because that's what we pick up and deploy to a forward operating base," Kowalski said. "What we want to do is maintain the sortie count to maintain readiness across all of those."

The general said he's carefully keeping an eye on personnel issues in the command as well. There is an issue with airmen in the missile fields, he said, noting this is remote duty and there are concerns about the suicide rate among these personnel.

Reenlistment has not been a problem within Global Strike Command to date, Kowalski said. Part of the willingness to reenlist may be tied to the state of the economy, he said, and part of it is because the young airmen believe in the mission.

"All of those folks are going to continue to do a great job, but they need to know what to do and they need to know that what they are doing is important," Kowalski said. "We have been very active in reminding them of the job's importance."

The force structure may change in the command, the general said, but it doesn't change the basic mission for the command.

"This is one of the most important missions in the military -- to make sure that the nuclear inventory remains safe, secure and effective," Kowalski said.

EPA REQUIRES GOLD MINERS IN NEVADA TO CORRECTLY REPORT TOXIC CHEMICAL RELEASES

Photo:  Nevada Landscape.  Credit:  Wikimedia Commons.

FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY
EPA Requires Nevada Gold Mining Companies to Correct Reporting Violations

WASHINGTON – The U.S. Environmental Protection Agency (EPA) settled with three gold mining companies, all subsidiaries of Barrick Gold Corporation, for failing to correctly report toxic chemical releases and waste management activities as required by the Emergency Planning and Community Right-to-Know Act (EPCRA).

"The Toxic Release Inventory program is a vital tool for tracking toxic releases across the country, providing transparency about chemicals in communities," said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. "The program is undermined if companies do not report or misreport the use or release of chemicals at their facilities."

The companies, Barrick Cortez, Inc., Barrick Gold US, Inc. and Homestake Mining Company, agreed to pay a total of $278,000 in penalties and spend an additional $340,000 to conduct an environmentally beneficial project.

The violations involved incorrect reporting under the federal Emergency Planning and Community Right-to-Know Act (EPCRA) at the Cortez Gold Mine near Crescent Valley, the Ruby Hill Gold Mine near Eureka, and the Bald Mountain Gold Mine near the Ruby Lake National Wildlife Refuge, all in Nevada.

After EPA inspectors analyzed the mines’ records they found that the facilities failed to submit timely, complete and correct Toxics Release Inventory (TRI) reports in 2005, 2006, 2007 and 2008, for toxic chemicals. These chemicals include cyanide compounds used to extract gold from the ore mined at the facilities, and lead and mercury compounds produced during the extraction process. Under the settlement, the Barrick gold companies will audit and correct their TRI reports for 2005 through 2011 to comply with EPCRA. There is no evidence to suggest that the violations posed any immediate danger to workers at the facilities or local communities.

The agreement requires a $340,000 supplemental environmental project at the Cortez mine to identify the metal compounds formed in its oxide mill process. The gold companies will also perform audits at other Barrick facilities in the U.S. (in Nevada and Montana), correct reporting violations, if any, and pay a $10,000 penalty per violation, not to exceed $250,000.

Under EPCRA, facilities that manufacture, process, or use toxic chemicals over certain quantities must file annual reports estimating the amounts released to the environment, treated or recycled on-site, or transferred off-site for waste management. These reports are submitted to EPA and the State or Tribe with jurisdiction over the facility. EPA compiles this information into a national TRI database and makes it available to the public.

Metal ore mining accounts for 98 percent of total TRI releases reported to EPA in Nevada. This investigation and enforcement are part of an ongoing national effort that began in 2008 to ensure that gold mining facilities are in compliance, and that the public has accurate and complete information about the facilities in their community. Barrick gold mining facilities in the U.S. produced approximately 3.38 million ounces (105.6 tons) of gold in 2011, and the Cortez Gold Mine is the second largest gold mine in the world.

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY
The Arleigh Burke-class guided-missile destroyer USS Gridley (DDG 101) returns to homeport at San Diego after a six-month independent deployment to the U.S. 7th and 5th Fleet areas of responsibility. Gridley conducted eight successful Strait of Hormuz transits, escorting high value units in and out of the Arabian Gulf and conducted six high-visibility operations in the East and South China Seas to maintain U.S. maritime presence and improve regional stability. U.S. Navy photo by Mass Communication Specialist 2nd Class Rosalie Garcia (Released) 130205-N-DH124-020

Sailors man the forecastle during a sea and anchor detail aboard the San Antonio-class amphibious transport dock USS Mesa Verde (LPD 19) as the ship departs Norfolk. Mesa Verde is on its way to New Orleans. U.S. Navy photo by Mass Communication Specialist 2nd Class Stuart Phillips (Released) 130204-N-NL541-080

 

Leon Panetta At Georgetown University

Georgetown University

RBS SUBSIDIARY AGREES TO GUILTY PLEA IN LIBOR INTERST MANIPULATION CASE

FROM: U.S. JUSTICE DEPARTMENT

Wednesday, February 6, 2013
RBS Securities Japan Limited Agrees to Plead Guilty in Connection with Long-Running Manipulation of Libor Benchmark Interest Rates
Second Financial Institution to Plead Guilty to Libor Fraud and Pay Substantial Criminal Penalties; RBS Parent Company Also Admits Fault in Deferred Prosecution Agreement

RBS Securities Japan Limited, a wholly owned subsidiary of The Royal Bank of Scotland plc (RBS), has agreed to plead guilty to felony wire fraud and admit its role in manipulating the Japanese Yen London Interbank Offered Rate (LIBOR), a leading benchmark used in financial products and transactions around the world, Assistant Attorney General Lanny Breuer of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Scott D. Hammond of the Justice Department’s Antitrust Division and Special Agent in Charge Timothy A. Gallagher of the FBI’s Washington Field Office Criminal Division announced today.

A criminal information, being filed in U.S. District Court for the District of Connecticut, charges RBS Securities Japan with one count of wire fraud for engaging in a scheme to defraud counterparties to interest rate derivatives trades by secretly manipulating Yen LIBOR benchmark interest rates. RBS Securities Japan has signed a plea agreement with the government admitting its criminal conduct, and has agreed to pay a $50 million fine.

In addition, the government is filing a criminal information in the District of Connecticut which charges parent company RBS as part of a deferred prosecution agreement (DPA). The information charges RBS with wire fraud for its role in manipulating LIBOR benchmark interest rates, and with participation in a price-fixing conspiracy in violation of the Sherman Act by rigging the Yen LIBOR benchmark interest rate with other banks. The DPA requires the bank to admit and accept responsibility for its misconduct as described in an extensive statement of facts, to continue cooperating with the Justice Department in its ongoing investigation and to pay a $100 million penalty beyond the fine imposed upon RBS Securities Japan.

Together with approximately $462 million in regulatory penalties and disgorgement – $325 million as a result of a Commodity Futures Trading Commission (CFTC) action and approximately $137 million as a result of a U.K. Financial Services Authority (FSA) action – the Justice Department’s criminal penalties bring the total amount of the resolution with RBS and RBS Securities Japan to approximately $612 million.

"As we have done with Barclays and UBS, we are today holding RBS accountable for a stunning abuse of trust," said Assistant Attorney General Breuer. "The bank has admitted to manipulating one of the cornerstone benchmark interest rates in our global financial system, and its Japanese subsidiary has agreed to plead guilty to felony wire fraud. The department’s ongoing investigation has now yielded two guilty pleas by significant financial institutions. These are extraordinary results, and our investigation is far from finished. Our message is clear: no financial institution is above the law."

"RBS secretly rigged the benchmark interest rates upon which many transactions and consumer financial products are based," said Deputy Assistant Attorney General Hammond. "RBS’ conduct not only harmed its unsuspecting counterparties, it undermined the integrity and the competitiveness of financial markets everywhere."

"The manipulation of LIBOR by RBS and its subsidiary directly affected the rates referenced by financial products held by and on behalf of American companies and investors. The FBI works to uncover wrongdoing such as this in order to protect American consumers and the integrity of financial markets," said Special Agent in Charge Gallagher. "Today’s announcement is the result of the hard work of the FBI special agents, financial analysts, and forensic accountants as well as the prosecutors who dedicated significant time and resources to investigating this case."

According to court documents, LIBOR is an average interest rate, calculated based upon submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR serves as the primary benchmark for short-term interest rates globally, and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.

LIBOR, published by the British Bankers’ Association (BBA), a trade association based in London, is calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The LIBOR for a given currency at a specific maturity is the result of a calculation based upon submissions from a panel of banks for that currency (the Contributor Panel) selected by the BBA. From at least 2006 through 2010, RBS has been a member of the Contributor Panel for a number of currencies, including Yen LIBOR and Swiss Franc LIBOR, which are the focus of the plea agreement and DPA.

According to the filed charging documents, at various times from at least 2006 through 2010, certain RBS Yen and Swiss Franc derivatives traders – whose compensation was directly connected to their success in trading financial products tied to LIBOR – engaged in efforts to move LIBOR in a direction favorable to their trading positions. Through these schemes, RBS allegedly defrauded counterparties who were unaware of the manipulation affecting financial products referencing Yen and Swiss Franc LIBOR. The alleged schemes included hundreds of instances in which RBS employees sought to influence LIBOR submissions in a manner favorable to their trading positions in two principal ways: internally at RBS through requests by derivatives traders for Yen and Swiss Franc LIBOR submissions, and externally through an agreement with a separately charged derivatives trader to request Yen LIBOR submissions. The trader, Tom Alexander William Hayes, was formerly employed by a Japanese subsidiary of another Contributor Panel bank, UBS AG (UBS).

According to court documents, RBS employees engaged in this conduct through electronic communications, which included both emails and electronic chats.

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY
Sailors muster for quarters on the flight deck aboard USS Carl Vinson (CVN 70). Carl Vinson is underway conducting sea trials as the final stage of a six-month planned incremental availability. U.S. Navy photo by Mass Communication Specialist 3rd Class Giovanni Squadrito (Released) 130202-N-DI878-097

130205-N-ZK021-001 JOINT BASE PEARL HARBOR-HICKAM (Feb. 5, 2013) Master-at-Arms Seaman Christopher Rivera, assigned to Joint Base Pearl Harbor-Hickam Military Working Dogs (JBPHH MWD) Section, runs his K-9 partner Asga through an obstacle course at the base kennel. MWD provides explosive/narcotic detection capabilities and performs patrol functions both on JBPHH and in support of worldwide contingencies. (U.S. Navy photo by Mass Communication Specialist 2nd Class Nardel Gervacio/Released)

2013 LUNAR NEW YEAR

U.S. Secretary Of State John Kerry

FROM: U.S. DEPARTMENT OF DEFENSE
2013 Lunar New Year
Press Statement
John Kerry
Secretary of State
Washington, DC
February 6, 2013
　

On behalf of the American people, I am delighted to send my heartfelt wishes for good health, good fortune, happiness, and prosperity to all those around the world celebrating the arrival of the Lunar New Year this February 10.

This week, millions of people will make the journey – some across great distances – to reunite with their loved ones to mark the Lunar New Year. Here in the United States, many families will likewise gather to welcome the New Year. These public and private celebrations, held by multigenerational immigrant communities, highlight the diversity of American society and the deep and complex bonds that link the American people with peoples from around the world. President Obama and I look forward to strengthening our commitment to building ever-stronger relations with the people of the Asia-Pacific through initiatives that foster economic growth, improve regional security, and advance cooperative friendships among our peoples.

In this festive time, I would like to wish all great success in the coming year as we continue to work together to deepen partnerships and find solutions to the challenges we face.

WATCHING COMET ISON

This series of images of comet C/2012 S1 (ISON) was taken by the Medium-Resolution Imager of NASA’s Deep Impact spacecraft over a 36-hour period on Jan. 17 and 18, 2013. At the time, the spacecraft was 493 million miles (793 million kilometers) from the comet. NASA Video.

FROM: NASA

PASADENA, Calif. - NASA's Deep Impact spacecraft has acquired its first images of comet C/2012 S1 (ISON). The images were taken by the spacecraft's Medium-Resolution Imager over a 36-hour period on Jan. 17 and 18, 2013, from a distance of 493 million miles (793 million kilometers). Many scientists anticipate a bright future for comet ISON; the spaceborne conglomeration of dust and ice may put on quite a show as it passes through the inner solar system this fall.

"This is the fourth comet on which we have performed science observations and the farthest point from Earth from which we've tried to transmit data on a comet," said Tim Larson, project manager for the Deep Impact spacecraft at NASA's Jet Propulsion Laboratory in Pasadena, Calif. "The distance limits our bandwidth, so it's a little like communicating through a modem after being used to DSL. But we're going to coordinate our science collection and playback so we maximize our return on this potentially spectacular comet."

Deep Impact has executed close flybys of two comets - Tempel 1 and Hartley 2 - and its mission scientists, led by University of Maryland Astronomer Michael A'Hearn, have performed scientific observations on two more - comet Garradd and now ISON. The ISON imaging campaign is expected to yield infrared data, and light curves (which are used in defining the comet's rotation rate) in addition to visible-light images. A movie of comet ISON was generated from initial data acquired during this campaign. Preliminary results indicate that although the comet is still in the outer solar system, more than 474 million miles (763 million kilometers) from the sun, it is already active. As of Jan. 18, the tail extending from ISON's nucleus was already more than 40,000 miles (64,400 kilometers) long.

Long-period comets like ISON are thought to arrive from the solar system's Oort cloud, a giant spherical cloud of icy bodies surrounding our solar system so far away its outer edge is about a third of the way to the nearest star (other than our sun). Every once in a while, one of these loose conglomerations of ice, rock, dust and organic compounds is disturbed out of its established orbit in the Oort cloud by a passing star or the combined gravitational effects of the stars in the Milky Way galaxy. With these gravitational nudges, so begins a comet's eons-long, arching plunge toward the inner solar system.

ISON was discovered on Sept. 21, 2012, by two Russian astronomers using the International Scientific Optical Network's 16-inch (40-centimeter) telescope near Kislovodsk. NASA's Near-Earth Object Program Office, based at JPL, has plotted its orbit and determined that the comet is more than likely making it first-ever sweep through the inner solar system. Having not come this way before means the comet's pristine surface has a higher probability of being laden with volatile material just spoiling for some of the sun's energy to heat it up and help it escape. With the exodus of these clean ices could come a boatload of dust, held in check since the beginnings of our solar system. This released gas and dust is what is seen on Earth as comprising a comet's atmosphere (coma) and tail.

ISON will not be a threat to Earth - getting no closer to Earth than about 40 million miles on Dec. 26, 2013. But stargazers will have an opportunity to view the comet's head and tail before and after its closest approach to the sun -- if the comet doesn't fade early or break up before reaching the sun.

Launched in January 2005, NASA's Deep Impact spacecraft traveled about 268 million miles (431 million kilometers) to the vicinity of comet Tempel 1. On July 3, 2005, the spacecraft deployed an impactor that was essentially "run over" by the nucleus of Tempel 1 on July 4. Sixteen days after comet encounter, the Deep Impact team placed the spacecraft on a trajectory to fly past Earth in late December 2007. This extended mission of the Deep Impact spacecraft culminated in the successful flyby of comet Hartley 2 on Nov. 4, 2010. In January of 2012, the spacecraft performed, from a distance, an imaging campaign on comet C/2009 P1 (Garradd).

To date, Deep Impact has traveled about 4.39 billion miles (7.06 billion kilometers) in space.

JPL, a division of the California Institute of Technology in Pasadena, manages the Deep Impact mission for NASA's Science Mission Directorate, Washington. The University of Maryland is the Principal Investigator institution for the mission. Deep Impact is part of the Discovery Program managed at NASA's Marshall Space Flight Center in Huntsville, Ala.

Jet Propulsion Laboratory, Pasadena, Calif.
agle@jpl.nasa.gov

Secretary of Sate Kerry"s Remarks at the Ceremonial Swearing-In Ceremony

Remarks at the Ceremonial Swearing-In Ceremony

PANETTA SAYS CHINA RELATIONSHIP IMPORTANT FOR PEACE

Map:  China.  Credit:  CIA World Factbook.

FROM: U.S. DEFENSE DEPARTMENT
China Important to Pacific Peace, Panetta Tells Students
By Karen Parrish
American Forces Press Service
WASHINGTON, Feb. 6, 2013 – The United States seeks to establish a strategic dialogue with China as well as a common approach to challenges, Defense Secretary Leon E. Panetta told a Georgetown University audience here today.

Following a speech on leadership and government this morning, the secretary took audience questions. One international student from Japan asked the secretary to comment on "the islands dispute between China and Japan."

Panetta noted in his response that he had visited both Japanese and Chinese leaders in recent months and had discussed the issue with both sides. Each country claims rights to a group of islands east of China and south of Japan.

The secretary said repeatedly throughout his September, 2012, trip, touching down in both nations, that the United States does not take sides in territorial disputes, but urges peaceful resolution of any such issues.

The danger in territorial clashes between nations, Panetta explained today at Georgetown, is that an unmeasured act could create an even greater crisis.

"Part of our reason to rebalance to the Pacific is because we think that in many ways … our future economic security, our trade relationships, our security relationships are going to be critical in that part of the world," he said.

Panetta said maintaining and improving those relationships, both with allies like Japan and South Korea and with "rising powers" such as China, is central to U.S. strategy.

"We've got a set of common challenges here," the secretary told his audience. "One is our ability to respond to disasters in that part of the world."

Another challenge is the threat of missile proliferation, particularly in North Korea, he added.

Panetta’s message to Chinese leaders during his visit, he noted, was, "It is in your interest to work with other countries to resolve these issues. Because if your interest is in a Pacific region that can be peaceful and that can prosper in the future, you have to be part of that."

Pacific stability requires that China not threaten other countries, the secretary said.

"It cannot be a China that threatens … to go after their territories and create territorial disputes," he said. "They have to be part of a family of nations in that region, working together in order to ensure peace and prosperity."

The secretary said recently appointed Chinese leaders he met on his trip "recognize the importance of trying to develop that kind of communication."

Panetta said he urged Chinese leaders to discuss cyber and missile defense issues with their U.S. counterparts.

"And they indicated that they were willing to engage in those kinds of strategic talks," the secretary said.

Panetta said it’s important that China recognizes "that the United States, Japan, Korea and other countries in that part of the world are going to do everything we have to do to promote security and prosperity, and that they should be a part of that, not against it."

Press Briefing For February 6, 2013 | The White House

Press Briefing | The White House

A REVERSE MORTGAGE SCHEME RESULTS IN CONVICTIONS FOR TITLE AGENT AND BROKER

FROM: U.S. JUSTICE

Tuesday, February 5, 2013
Former Title Agent and Broker Convicted in Miami for Role in Reverse Mortgage Scheme

A Miami title agent and former mortgage broker was found guilty late yesterday, Feb. 4, 2013, for her role in a "reverse mortgage" fraud scheme in connection with a loan worth more than $400,000, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.

After a six-day jury trial before the Honorable Richard W. Goldberg, sitting by designation in the Southern District of Florida, a federal jury convicted Yesenia Pouparina (aka Yesenia Campos), 40, of four counts of wire fraud and one count of mail fraud for her role in securing a fraudulent Home Equity Conversion Mortgage (HECM), commonly referred to as a reverse mortgage loan, and making false representations related to the occupancy of the property and its subsequent "short sale." A HECM is a federally insured loan that enables older Americans to withdraw equity from a home so they can remain independent and financially secure. The jury also found that three bank accounts controlled by the defendant, which were seized by the government during the course of the investigation, should be forfeited.

According to court documents and evidence presented at trial, Pouparina, a licensed title agent in the state of Florida, devised a scheme to obtain a reverse mortgage loan on her own property in the name of her mother, an individual who failed to meet the requirements of the HECM program. Pouparina submitted to a lending institution a false loan application and doctored records in support of that application, misrepresenting her mother’s eligibility to participate in the HECM program. Pouparina acted as the title agent for the loan and disbursed the loan proceeds directly to her own personal bank accounts. Pouparina also enriched herself by collecting fees generated by the loan, and also profited by using the loan proceeds in connection with her business as a "hard money lender" in other mortgage deals.

Judge Goldberg ordered Pouparina to surrender to the U.S. Marshals on Feb. 20, 2013. At sentencing, currently scheduled for May 9, 2013, Pouparina faces a maximum potential penalty per count of 20 years in prison and a $250,000 fine, or twice the net gain or loss from the offense.

This case was investigated by the Office of Inspector General, U.S. Department of Housing and Urban Development. Trial Attorneys Sandra L. Moser and Mary Ann McCarthy of the Justice Department Criminal Division’s Fraud Section prosecuted the case, with assistance from the U.S. Attorney’s Office for the Southern District of Florida.

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

U.S. ADMIRAL STAVRIDIS SPEAKS OF A CAPABILITY GAP

FROM: U.S. DEFENSE DEPARTMENT,
Stavridis Presses to Close Language, Cultural Skills Gap
By Donna Miles
American Forces Press Service

WASHINGTON, Feb. 5, 2013 – Despite "the widest imaginable set of skills" among the Defense Department’s 3.2 million military and civilian members, the Defense Department has an "obvious capability gap" in its lack of foreign language skills that affect its global missions, the supreme allied commander for Europe and commander of U.S. European Command lamented in his command blog.

Navy Adm. James G. Stavridis quoted Charlemagne, who observed that "to know another language is to have a second soul."

"In this rapidly globalizing 21st century world, that simple statement summarizes the gift of regional expertise, cultural understanding and the ability to communicate directly in the language of an ally, partner or colleague," Stavridis wrote. Yet, he noted, fewer than 10 percent of DOD members speak a second language.

That leaves a gap that goes beyond mere linguists, he said.

"In order to operate in a world that relies more and more on coalition action to succeed," the admiral said, "we must develop the attendant skills of regional expertise and cultural understanding."

Yet, Stavridis said, he has seen "a mixed bag" of forces arriving at their combatant command assignments: some highly skilled in language, culture and history of their region, some with just a "dusting" of exposure, and others totally inexperienced.

"We can do better," he said. "I've learned that the shipmates who truly have the language, culture, and regional skills are often ‘silver bullets’ that can transform a difficult challenge into a success."

Stavridis said he regularly sees the fruits of these abilities as he oversees NATO’s global operations.

It’s evident in Afghanistan, where 50 troop-contributing nations are operating in a nation with complex language, culture and historical challenges as they conduct supporting the "largest single security mission in the world today," he noted. But it’s equally important elsewhere in the world where nations with diverse histories, traditions and beliefs come together to support common missions, he said, noting peacekeeping in Kosovo and counterpiracy off the Horn of Africa as examples.

"As opposed to many of our European partners, who effortlessly speak four or five languages and have a deep knowledge of each other's background and culture, we in the U.S. are failing to fully train and prepare for this kind of international work," Stavridis said. "This is an area in which we have much work to do."

As a linguist himself, Stavridis said, these skills have paid off during his seven years as a combatant commander at U.S. Southern Command and Eucom. He learned French as a child living in Europe, and uses that ability in his NATO role. He studied Spanish to the point that he could use it to conduct meetings, improving his ability to work with his Latin-American counterparts. Reading Russian literature and history and learning the culture improved his ability to work with his Russian colleagues, he noted.

So to promote language and cultural skills more widely across the Defense Department, he offered three recommendations:

-- Strengthen language programs, while considering mandatory second-language skills at least among officers, and more incentives and training militarywide;

-- Boost the foreign affairs officer field by providing better promotion opportunities, recruiting top-quality candidates into the field and ensuring continued growth through appropriate grade education; and

-- Build on the "Afghan-Pakistan Hands" model to establish similar programs in other parts of the world, including the Asia-Pacific, Latin America and Caribbean, Africa and other regions.

"These individuals would be the equivalent of ‘special forces’ in the world of global engagement, with truly deep, repetitive tours in the region, utter fluency in the language and graduate-level knowledge of history, literature, geography, economics and the like," Stavridis wrote.

"All of this requires investment -- not huge amounts, but smart money spent on smart programs," Stavridis recognized. But more importantly, he said, it requires "a belief that part of providing security in this turbulent 21st century will mean we must ‘know the world’ so much better than we do today."

NEWS FROM AFGHANISTAN FOR FEBRUARY 6, 2013

U.S. Afghan Soldiers Encounter Firefight in Panjwa'i District, Afghanistan. 

A U.S. soldier leads a foot patrol using a Minehound metal detector in search of potential improvised explosive devices along their path in Panjwa’i District, Afghanistan, Jan. 29, 2013. The soldiers are assigned to the 2nd Infantry Division's 1st Battalion, 38th Infantry Regiment, 4th Stryker Brigade Combat Team. U.S. Army photo by Sgt. Kimberly Hackbarth

FROM: U.S. DEPARTMENT OF DEFENSE
Combined Force Arrests Taliban Facilitator
From an International Security Assistance Force Joint Command News Release

KABUL, Afghanistan, Feb. 6, 2013 - A combined Afghan and coalition security force arrested a Taliban facilitator in the Panjwai district of Afghanistan's Kandahar province today, military officials reported.

The detained facilitator is believed to have overseen the management of weapons caches for his network and ensured the facilitation of equipment, vehicles and weapons to insurgent fighters, officials said.

He also is accused of having acquired and transferred large amounts of improvised explosive devices and IED-making materials. The security force also detained two suspected insurgents and seized nearly 700 pounds of illegal narcotics in the operation.

In Kandahar province's Maiwand district yesterday, a combined force arrested a Taliban leader believed to be responsible for coordinating insurgent operations, including the distribution of weapons and funds to insurgent fighters for attacks against Afghan and coalition forces. The security force also detained another suspected insurgent.

Your eye to your brain

Your eye to your brain

BIOGRAPHY: U.S. SECRETARY OF STATE JOHN FORBES KERRY

FROM: U.S. STATE DEPARTMENT

On February 1, 2013, John Forbes Kerry was sworn in as the 68th Secretary of State of the United States, becoming the first sitting Senate Foreign Relations Committee Chairman to become Secretary in over a century.

Secretary Kerry joined the State Department after 28 years in the United States Senate, the last four as Chairman of the Senate Foreign Relations Committee.

Secretary Kerry was born on December 11, 1943, at Fitzsimons Army Hospital in Aurora, Colorado, one of four children of the late Rosemary Forbes Kerry and Richard Kerry, a Foreign Service Officer.

Shortly before he graduated from Yale University, Secretary Kerry enlisted to serve in the United States Navy, and went on to serve two tours of duty. He served in combat as a Swift Boat skipper patrolling the rivers of the Mekong Delta, returning home from Vietnam with a Silver Star, a Bronze Star with Combat V, and three Purple Hearts.

Back in the United States, Secretary Kerry began to forcefully speak out against the Vietnam War. Testifying at the invitation of Chairman J. William Fulbright before the Senate Foreign Relations Committee, he asked the poignant question, "How do you ask a man to be the last man to die for a mistake?" He also began a lifelong fight for his fellow veterans as a co-founder of the Vietnam Veterans of America, and later as a United States Senator who fought to secure veterans’ benefits, extension of the G.I. Bill for Higher Education, and improved treatment for PTSD (post-traumatic stress disorder).

In 1976, Secretary Kerry received his law degree from Boston College Law School and went to work as a top prosecutor in Middlesex County, Massachusetts, where he took on organized crime, fought for victims' rights, and created programs for rape counseling. He was elected Lieutenant Governor of Massachusetts in 1982, and 2 years later, he was elected to the United States Senate where he served for 28 years.

In 2009, Secretary Kerry became Chairman of the Senate Foreign Relations Committee, assuming a leadership role on key foreign policy and national security issues facing the United States, including Afghanistan and Pakistan, nuclear nonproliferation, and global climate change. His service as Chairman built on his previous Senate work that included helping to expose the Iran-Contra scandal and leadership on global AIDS.

As Chairman of the Senate Select Committee on POW/MIA Affairs, he worked to learn the truth about American soldiers missing in Vietnam and to normalize relations with that country.

In 2010, as Chairman of the Foreign Relations Committee, Secretary Kerry was instrumental in the ratification of the New START (Strategic Arms Reduction Treaty) Treaty, a vital nuclear arms reduction agreement with Russia that helps steer both countries away from dangerous nuclear confrontations.

In his 28 years on the Senate Foreign Relations Committee, Secretary Kerry chaired the Asia and Middle East subcommittees where he authored and passed major legislation on international drug trafficking, international money laundering, humanitarian aid, and climate change, and he helped negotiate the UN’s genocide tribunal to prosecute war crimes in Cambodia.

He also held senior positions on the Finance, Commerce, and Small Business committees, as well as served as a member of the bipartisan Joint Committee on Deficit Reduction, where he worked across party lines to try and reduce the country’s debt and strengthen our economy. Prior to his departure from the Senate, Secretary Kerry was the seventh-most senior Senator.

Secretary Kerry was the Democratic Party's nominee for President of the United States in 2004.

Secretary Kerry is the author of best-selling books, including A Call to Service: My Vision for a Better America and This Moment on Earth, a book on the environment which he co-authored with his wife, Teresa Heinz Kerry. Together they are proud of a blended family that includes two daughters, three sons, and three grandchildren.

NEW WARRIOR CENTER

Senior Army leaders, United Service Organizations leaders, and corporate sponsors participate in a ribbon-cutting ceremony for a new 20,000-square foot warrior and family care facility at Fort Belvoir, Va., Feb. 5. DOD photo by U.S. Army Sgt. 1st Class Tyrone C. Marshall Jr.

FROM: U.S. DEPARTMENT OF DEFENSE
New Warrior Center ‘Gift From American People’
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

FORT BELVOIR, Va., Feb. 5, 2013 – The USO, two days after its 72nd birthday, again demonstrated its commitment to wounded, ill and injured U.S. troops and their families by opening its largest center in the world.

The USO hosted a ribbon cutting ceremony here today to showcase its new 20,000-square foot Warrior and Family Care Center which will serve all U.S. service members and their families.

Sloan D. Gibson, USO president, identified a number of corporate sponsors such as the Northrop Grumman Foundation which, at $5,000,000, provided the largest donation in the USO’s history for the center.

"But what you won’t see are the names of nearly a quarter of a million individual Americans that have made a donation honoring the wounded, ill and injured troops and their families to Operation Enduring Care," he said.

"I think when we talk about this center being a gift from the American people that’s what we’re talking about," Gibson said.

The USO says this new center will support the non-clinical needs of wounded, ill and injured troops and their families throughout their rehabilitation. It will be staffed by USO of Metropolitan Washington and 350 volunteers.

Army Lt. Gen. William J. Troy, director of the Army Staff, said this new center will help troops and their families cope as they recuperate from their injuries.

"This will give the families a place to come -- a home away from home if you will -- to relax and visit," he said. "And to have a place that will be very supportive and nourishing to them as they go through this."

"It’s extremely important that they have a place that they feel comfortable -- that they feel at home," Troy said. "Especially when you’re going through some of the things that you have to go through as a wounded warrior or someone who’s here at Fort Belvoir for treatment. It’s a great asset to have a place like this here."

Army Col. Gregory Gadson, garrison commander of Fort Belvoir, praised the USO for recognizing the need for a warrior care center.

"The USO has not only identified a need, but they’ve taken action, and that is so commendable," he said. "And it’s their leadership and their partners – corporate, private, volunteers, members of the board – that have mustered the efforts that have made this day possible."

"I’ve had the privilege, over the past few years, of watching the USO’s efforts evolve as they’ve continued to provide for our service members," Gadson said. "[And] not just overseas, but in a very visible way, stateside."

Gadson, a double amputee, said the USO’s efforts in building the center in two and half years will vastly improve the quality of life of troops and their families.

"I know that my family and so many other families are in a better place because of the efforts of the USO," he said. "And there’s a lot of personal emotion that I have as I’ve seen this building."

"And now it’s about to come alive with so much hope and so much promise," Gadson added.

U.S. JUSTICE DEPARTMENT SUES S & P, ALLEGING MORTGAGE-BACKED SECURITIES RATING FRAUD

FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, February 5, 2013
Department of Justice Sues Standard & Poor’s for Fraud in Rating Mortgage-Backed Securities in the Years Leading Up to the Financial Crisis

Complaint Alleges that S&P Lied About its Objectivity and Independence And Issued Inflated Ratings for Certain Structured Debt Securities.

Attorney General Eric Holder announced today that the Department of Justice has filed a civil lawsuit against the credit rating agency Standard & Poor’s Ratings Services alleging that S&P engaged in a scheme to defraud investors in structured financial products known as Residential Mortgage-Backed Securities (RMBS) and Collateralized Debt Obligations (CDOs). The lawsuit alleges that investors, many of them federally insured financial institutions, lost billions of dollars on CDOs for which S&P issued inflated ratings that misrepresented the securities’ true credit risks. The complaint also alleges that S&P falsely represented that its ratings were objective, independent, and uninfluenced by S&P’s relationships with investment banks when, in actuality, S&P’s desire for increased revenue and market share led it to favor the interests of these banks over investors.

"Put simply, this alleged conduct is egregious – and it goes to the very heart of the recent financial crisis," said Attorney General Holder. "Today’s action is an important step forward in our ongoing efforts to investigate – and – punish the conduct that is believed to have contributed to the worst economic crisis in recent history. It is just the latest example of the critical work that the President’s Financial Fraud Enforcement Task Force is making possible."

Attorney General Eric Holder was joined in announcing the filing of the civil complaint by Acting Associate Attorney General Tony West, Principal Deputy Assistant Attorney General for the Civil Division Stuart F. Delery, and U.S. Attorney for the Central District of California André Birotte Jr. Also joining the Department of Justice in making this announcement were the attorneys general from California, Connecticut, Delaware, the District of Columbia, Illinois, Iowa and Mississippi, who have filed or will file civil fraud lawsuits against S&P alleging similar misconduct in the rating of structured financial products. Additional state attorneys general are expected to make similar filings today.

"Many investors, financial analysts and the general public expected S&P to be a fair and impartial umpire in issuing credit ratings, but the evidence we have uncovered tells a different story," said Acting Associate Attorney General West. "Our investigation revealed that, despite their representations to the contrary, S&P’s concerns about market share, revenues and profits drove them to issue inflated ratings, thereby misleading the public and defrauding investors. In so doing, we believe that S&P played an important role in helping to bring our economy to the brink of collapse."

Today’s action was filed in the Central District of California, home to the now defunct Western Federal Corporate Credit Union (WesCorp), which was the largest corporate credit union in the country. Following the 2008 financial crisis, WesCorp collapsed after suffering massive losses on RMBS and CDOs rated by S&P.

"Significant harm was caused by S&P’s alleged conduct in the Central District of California," said U.S. Attorney for the Central District of California Birotte. "Across the seven counties in my district, we had huge numbers of homeowners who took out subprime mortgage loans, many of which were made by some of the country’s most aggressive lenders only because they later could be securitized into debt instruments that were given flawed ‘AAA’ ratings by S&P. This led to an untold number of foreclosures in my district. In addition, institutional investors located in my district, such as WesCorp, suffered massive losses after putting billions of dollars into RMBS and CDOs that received flawed and inflated ratings from S&P."

The complaint, which names McGraw-Hill Companies, Inc. and its subsidiary, Standard & Poor’s Financial Services LLC (collectively S&P) as defendants, seeks civil penalties under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) based on three forms of alleged fraud by S&P: (1) mail fraud affecting federally insured financial institutions in violation of 18 U.S.C. § 1341; (2) wire fraud affecting federally insured financial institutions in violation of 18 U.S.C. § 1343; and (3) financial institution fraud in violation of 18 U.S.C. § 1344. FIRREA authorizes the Attorney General to seek civil penalties up to the amount of the losses suffered as a result of the alleged violations. To date, the government has identified more than $5 billion in losses suffered by federally insured financial institutions in connection with the failure of CDOs rated by S&P from March to October 2007.

"The fraud underpinning the crisis took many different forms, and for that reason, so must our response," said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department’s Civil Division. "As today’s filing demonstrates, the Department of Justice is committed to using every available legal tool to bring to justice those responsible for the financial crisis."

According to the complaint, S&P publicly represented that its ratings of RMBS and CDOs were objective, independent and uninfluenced by the potential conflict of interest posed by S&P being selected to rate securities by the investment banks that sold those securities. Contrary to these representations, from 2004 to 2007, the government alleges, S&P was so concerned with the possibility of losing market share and profits that it limited, adjusted and delayed updates to the ratings criteria and analytical models it used to assess the credit risks posed by RMBS and CDOs. According to the complaint, S&P weakened those criteria and models from what S&P’s own analysts believed was necessary to make them more accurate. The complaint also alleges that, from at least March to October 2007, and because of this same desire to increase market share and profits, S&P issued inflated ratings on hundreds of billions of dollars’ worth of CDOs. At the time, according to the allegations in the complaint, S&P knew that the quality of non-prime RMBS was severely impaired, and that the ratings on those mortgage bonds would not hold. The government alleges that S&P failed to account for this impairment in the CDO ratings it was assigning on a daily basis. As a result, nearly every CDO rated by S&P during this time period failed, causing investors to lose billions of dollars.

The underlying federal investigation, code-named "Alchemy," that led to the filing of this complaint was initiated in November 2009 in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants.

EPA POSTS LARGE FACILITY GREENHOUSE GAS EMMISSION UPDATE

Credit:  NASA

FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY
EPA Updates Greenhouse Gas Emissions Data from Large Facilities

WASHINGTON – Today, the Environmental Protection Agency (EPA) posted the second year of greenhouse gas (GHGs) emissions data on its website, which provides public access to emissions data by sector, by greenhouse gas, and by geographic region such as county or state.

Greenhouse gases are the primary driver of climate change, which can lead to hotter, longer heat waves that threaten the health of the sick, poor or elderly; increases in ground-level ozone pollution linked to asthma and other respiratory illnesses; as well as other threats to the health and welfare of Americans.

"Transparency ensures a better informed public, which leads to a better protected environment," said Gina McCarthy, assistant administrator for EPA’s Office of Air and Radiation. "With this second data release, communities, businesses and others can track and compare facilities' greenhouse gas emissions and identify opportunities to cut pollution, minimize wasted energy, and save money."

The 2011 data, collected through the congressionally mandated Greenhouse Gas (GHG) Reporting Program, includes information from facilities in 41 source categories that emit large quantities of greenhouse gasses. The 2011 data also contains new data collected from 12 additional source categories, including petroleum and natural gas systems and coal mines.

For facilities that are direct emitters of GHGs the data show that in 2011:

- Power plants remain the largest stationary source of GHG emissions, with 2,221 million metric tons carbon dioxide equivalent (mmtCO2e), roughly one-third of total U.S. emissions. 2011 emissions from this source were approximately 4.6 percent below 2010 emissions, reflecting an ongoing increase in power generation from natural gas and renewable sources.

- Petroleum and natural gas systems were the second largest sector, with emissions of 225 mmtCO2e in 2011, the first year of reporting for this group.

- Refineries were the third-largest emitting source, with 182 mmtCO2e, a half of a percent increase over 2010.

EPA now has two years of greenhouse gas data for 29 source categories. Some industrial sectors, such as metals production and chemicals production, reported overall increases in emissions, while others, such as power plants, reported decreases. Overall emissions reported from these 29 sources were 3 percent lower in 2011 than in 2010. In the future the data collected through the program will provide the public with the opportunity to compare emissions and developing trends for all 41 industry types –by facility and sector.

This data is accessible through the Facility Level Information on Green House gases Tool (FLIGHT) – a web-based data publication tool. EPA has also expanded accessibility of this data through EPA’s online database EnviroFacts that allows a user to search for information by zip code.

The data collection program is required by Congress in the FY2008 Consolidated Appropriations Act, which requires facilities to report data from large emission sources across a range of industry sectors, as well as suppliers of certain greenhouse gases, and products that would emit GHGs if released or combusted. EPA’s GHG Reporting Program includes information from more than 8,000 sources and represents 85-90 percent of total U.S. GHG emissions. This data only includes large facilities and does not include small sources, agriculture, or land use, which can also be significant sources of greenhouse gas emissions.

 

FORMER SECRETARY OF DEFENSE PANETTA WARNS OF GROWING CYBER THREAT

Photo:  Cyberspace.  Credit:  U.S. Navy 

FROM: U.S. DEPARTMENT OF DEFENSE
Panetta Warns Cyber Threat Growing Quickly
By Karen Parrish
American Forces Press Service

WASHINGTON, Feb. 6, 2013 - Pentagon officials are concerned about the growing threat of cyber warfare, Defense Secretary Leon E. Panetta told a Georgetown University audience today.

Following a speech on leadership and government this morning, the secretary responded to questions from the audience. All were from Georgetown students, one of whom asked Panetta if "cyber warfare ... will be a viable and important part of future U.S. defense policy?"

"The developments that have taken place in the cyber arena have been incredible over these last 10 years," the secretary responded, noting that 21st-century technology makes cyber attacks a primary threat to U.S. national security.

"There is no question, in my mind, that part and parcel of any attack on this country in the future, by any enemy, is going to include a cyber element," he said.

The secretary, who is expected to retire this month, has warned of cyber attacks' potential "crippling" effect on government, financial and commercial networks with increasing intensity throughout his nearly two-year tenure since leaving his post as CIA director to head the Defense Department.

When the Cybersecurity Act of 2012 stalled in the Senate in November, the Pentagon released a statement expressing Panetta's disappointment.

In that statement Pentagon Press Secretary George Little said, "The U.S. defense strategy calls for greater investments in cybersecurity measures, and we will continue to explore ways to defend the nation against cyber threats."

New legislation would have enhanced those efforts, Little said, adding, "If the Congress neglects to address this security problem urgently, the consequences could be devastating."

In today's remarks, Panetta again urged Congress to act to enhance the department's cyber capabilities. U.S. defense strategy considers cyber potential in planning "how we will go after an enemy," he told today's audience during the question-and-answer period.

"So, yes, we are living in that world," the secretary said. "I believe that it is very possible the next Pearl Harbor could be a cyber attack ... [that] would have one hell of an impact on the United States of America. That is something we have to worry about and protect against."

NEW ZEALAND WAITANGI DAY

FROM: U.S. STATE DEPARTMENT
New Zealand Waitangi Day
Press Statement
John Kerry
Secretary of State
Washington, DC
February 5, 2013

On behalf of President Obama and the people of the United States, I send congratulations and best wishes to the people of New Zealand as you commemorate the February 6 anniversary of the Treaty of Waitangi, or Te Tiriti o Waitangi. This is an opportunity to reflect both upon New Zealand’s unique culture and diverse heritage and to celebrate the promise of the future as new generations carry on your rich traditions.

The United States and New Zealand share a strong and enduring friendship, which has continued to deepen since we first established diplomatic relations in 1942. Our countries share a commitment to work together to bring peace, stability, and sustainability to the Pacific region and beyond.

As New Zealanders around the world come together to celebrate, I wish you a happy Waitangi Day, and a prosperous and successful year.

 
ADDITIONAL INFORMATION FROM CIA WORLD FACTBOOK

The Polynesian Maori reached New Zealand in about A.D. 800. In 1840, their chieftains entered into a compact with Britain, the Treaty of Waitangi, in which they ceded sovereignty to Queen Victoria while retaining territorial rights. In that same year, the British began the first organized colonial settlement. A series of land wars between 1843 and 1872 ended with the defeat of the native peoples. The British colony of New Zealand became an independent dominion in 1907 and supported the UK militarily in both world wars. New Zealand's full participation in a number of defense alliances lapsed by the 1980s. In recent years, the government has sought to address longstanding Maori grievances.

THE MUTANT PIGEON GENE

Victoria Crown Pigeon.  Credit:  Wikimedia Commons.

FROM: NATIONAL SCIENCE FOUNDATION
Mutant Gene Responsible for Pigeons' Head Crests
Decoded genome reveals secrets of pigeon traits and origins
January 31, 2013

Scientists have decoded the genetic blueprint of the rock pigeon, unlocking secrets about pigeons' Middle East origins, feral pigeons' kinship with escaped racing birds and how mutations give pigeons traits like feather head crests.

"Birds are a huge part of life on Earth, but we know surprisingly little about their genetics," says Michael Shapiro, one of the study's two principal authors and a biologist at the University of Utah.

In the new study, "we've shown a way forward to find the genetic basis of traits--the molecular mechanisms controlling animal diversity in pigeons," he says. "Using this approach, we expect to be able to do this for other traits in pigeons, and it can be applied to other birds and many other animals as well."

The findings appear in a paper published this week in the online journal Science Express.

Shapiro conducted the research with Jun Wang of China's BGI-Shenzhen (formerly Beijing Genomics Institute) and other scientists from BGI, the University of Utah, Denmark's University of Copenhagen and the University of Texas M.D. Anderson Cancer Center in Houston.

"The research identified the genes contributing to variation in the avian head crest, using the domesticated pigeons that so fascinated and inspired Charles Darwin in developing his theory of natural selection," says George Gilchrist, program director in the National Science Foundation's (NSF) Division of Environmental Biology, which funded the research. "This finding illustrates the power of comparative genomics."

Pigeons were domesticated some 5,000 years ago in the Mediterranean region. Key results of this study include sequencing of the genome of the rock pigeon Columba livia, which is among the most common bird species.

There are some 350 breeds of rock pigeons--all with different sizes, shapes, colors, color patterns, beaks, bone structure, vocalizations and arrangements of feathers on the feet and head--including head crests in shapes known as hoods, manes, shells and peaks.

The pigeon's genetic blueprint is among the few bird genomes sequenced so far, along with those of the chicken, turkey, zebra finch and a common parakeet known as a budgerigar or budgie. "This will give us new insights into bird evolution," Shapiro says.

Using software developed by paper co-author Mark Yandell, a geneticist at the University of Utah, the scientists revealed that a single mutation in a gene named EphB2 causes head and neck feathers to grow upward instead of downward, creating head crests.

"This same gene in humans has been implicated as a contributor to Alzheimer's disease, as well as prostate cancer and possibly other cancers," Shapiro says, noting that more than 80 of the 350 pigeon breeds have head crests, which play a role in attracting mates in many bird species.

The researchers compared the pigeon genome to those of chickens, turkeys and zebra finches. "Despite 100 million years of evolution since these bird species diverged, their genomes are very similar," Shapiro says.

A genome for the birds, a gene for head crests

The biologists assembled 1.1 billion base pairs of DNA in the rock pigeon genome; the researchers believe there are about 1.3 billion total, compared with 3 billion base pairs in the human genome. The rock pigeon's 17,300 genes compare in number with the approximately 21,000 genes in humans.

The researchers first constructed a "reference genome"--a full genetic blueprint--from a male of the pigeon breed named the Danish tumbler.

Shapiro says the study is the first to pinpoint a gene mutation responsible for a pigeon trait, in this case, head crests.

"A head crest is a series of feathers on the back of the head and neck," Shapiro says. "Some are small and pointed. Others look like a shell behind the head; some people think they look like mullets. They can be as extreme as an Elizabethan collar."

The researchers found strong evidence that the EphB2 (Ephrin receptor B2) gene acts as an on-off switch to create a head crest when mutant, and no head crest when normal.

They also showed that the mutation and related changes in nearby DNA are shared by all crested pigeons, so the trait evolved just once and was spread to numerous pigeon breeds by breeders.

Full or partial genetic sequences were analyzed for 69 crested birds from 22 breeds, and 95 uncrested birds from 57 breeds. The biologists found a perfect association between the mutant gene and the presence of head crests.

They also showed that while the head crest trait becomes apparent in juvenile pigeons, the mutant gene affects pigeon embryos by reversing the direction of feather buds--from which feathers later grow--at a molecular level.

Other genetic factors determine what kind of head crest each pigeon develops: shell, peak, mane or hood.

Tracking the origins of pigeons

A 2012 study by Shapiro provided limited evidence of pigeons' origins in the Middle East and some breeds' origins in India and indicated kinship between common feral or free-living, city pigeons and escaped racing pigeons.

In the new study, "we included some different breeds that we didn't include in the last analysis," Shapiro says. "Some of those breeds only left the Middle East in the last few decades. They've probably been there for hundreds if not thousands of years. If we find that other breeds are closely related to them, then we can infer those other breeds probably also came from the Middle East."

The scientists found that the owl breeds--pigeon breeds with very short beaks that are popular with breeders--likely came from the Middle East. They're closely related to breeds from Syria, Lebanon and Egypt.

The research also uncovered a shared genetic heritage between breeds from Iran and breeds likely from India, consistent with historical records of trade routes between those regions. People were not only sharing goods along those routes, but probably also interbreeding their pigeons.

As for the idea that free-living pigeons descended from escaped racing pigeons, Shapiro says his 2012 study was based on "relatively few genetic markers scattered throughout the genome. We now have stronger evidence based on 1.5 million markers, confirming the previous result with much better data."

The scientists analyzed partial genomes of two feral pigeons: one from a U.S. Interstate-15 overpass in Utah's Salt Lake Valley, the other from Lake Anna in Virginia.

"Despite being separated by 1,000 miles, they are genetically very similar to each other and to the racing homer breed," Shapiro says.

"Darwin used this striking example to communicate how natural selection works," he says. "Now we can get to the DNA-level changes that are responsible for some of the diversity that intrigued Darwin 150 years ago."

The study's co-authors from the University of Utah include Yandell, Eric Domyan, Zev Kronenberg, Michael Campbell, Anna Vickery and Sydney Stringham; Chad Huff is a co-author from the University of Texas.

The study was also funded by the Burroughs Wellcome Fund, the University of Utah Research Foundation, the National Institutes of Health and the Danish National Research Foundation.

-NSF-