FROM: COMMODITY FUTURES TRADING COMMISSION
A Transformed Marketplace – Remarks of Chairman Gary Gensler's before the FIA 2013 Futures & Options Expo
November 6, 2013
Thank you, Walt, for that kind introduction. I also would like to thank the Futures Industry Association (FIA) for the invitation – I’m honored that you’ve invited me to speak each of these last five years.
Ever since Adam Smith and the Wealth of Nations, economists have consistently written that access to and transparency in markets benefits the broad public.
President Roosevelt understood this when he asked Congress during the Great Depression to bring transparency, access and competition to the commodities and securities markets.
The reforms of the 1930s transformed markets. They helped establish the foundation for the U.S. economic growth engine for decades.
Those reforms have given farmers, ranchers, producers, merchants and commercial companies confidence to use the futures market to manage their risks. They are able to lock in the price of a commodity at harvest time, or lock in an interest rate or currency rate, and focus on that which they do best – producing goods and services for the economy.
The swaps market emerged in the 1980s. It remained outside these time-tested reforms until last year.
Both futures and swaps, though, are just two forms of the same thing – derivatives. Both had become essential to our economy and to the way people and businesses manage risks.
The swaps market also had grown to dwarf the futures market in total notional outstanding. We now know the swaps market is $400 trillion in size, compared to the $30 trillion futures market.
Lacking of common-sense rules of the road, the swaps market contributed to the 2008 crisis. Need I remind anyone about AIG.
It became time to bring this vast, dark market into transparency. It became time to ensure that the broad public gained the benefits of central clearing and oversight of dealers.
Thus, the President and Congress passed reform borrowing from what had worked best for decades in the futures market.
Now, the swaps marketplace has been transformed.
It’s been a remarkable journey these past five years – and all of you have been part of this journey. It not only took 65 finalized rules, orders and guidances by the CFTC. Your thousands of comments, meetings and questions were a critical part of the process as well. You worked hard – with real costs and against deadlines – to implement these reforms to bring us to a new marketplace.
Transparency
Foremost, the swaps marketplace now has transparency that simply did not exist in 2008.
The public now can see the price and volume of each swap transaction as it occurs. This post-trade transparency spans the entire market, regardless of product, counterparty, or whether it’s a standardized or customized transaction.
This information is available, free of charge, to everyone in the public. The data is listed in real time – like a modern-day tickertape – on the websites of each of the three swap data repositories.
Regulators get even greater transparency. Though there is more work to be done regarding the data flowing into data repositories, we now are able to see and filter the details on each of the 1.8 million transactions and positions in the data repositories.
Further, starting last month, the public – for the first time – has been benefitting from new transparency, access and competition on regulated swap trading platforms.
Economists have known the benefits of such transparency since the time of Adam Smith; it just wasn’t a reality in the swaps marketplace.
Now, as a result of reforms, swap execution facilities (SEFs) are required to provide all market participants with impartial access. They must provide dealers and non-dealers alike the ability to make and respond to bids, offers and requests for quotes. This is a basic tenant that Adam Smith and so many economists have laid out – that access and transparency promote competition and benefit the economy.
We now have 18 temporarily registered SEFs where more than a quarter of a trillion dollars in swaps trading is occurring on average per day. That is a big number by any measure.
We’ll continue to address questions as they arise to help smooth the transition to the transparency and impartial access of exchange trading.
Addressing one such question, as our cross border guidance directs, if a multilateral trading platform is a U.S. person, or it is located or operating in the U.S., it should register.
A multilateral trading platform that provides persons located in the U.S. with the ability to trade or execute swaps on the platform’s market (either directly or indirectly through an intermediary), should register.
Registration applies whether those persons are U.S. persons or non-U.S. persons whose personnel or agents are located in the U.S. This is regardless of the location where the swap is ultimately booked, including in circumstances where a swap dealer arranges, negotiates, or executes the terms of a swap in a non-U.S. branch, but trades swaps on a multilateral swaps trading platform using personnel or agents of the swap dealer located in the U.S.
This will trigger some SEF registrations for foreign-based platforms that are already registered with their home country. For instance, one Australian platform is going to register with the CFTC, and we’re working with the Australian home country regulators. We’re prepared to figure out where we might defer to those home country regulators.
Clearing
Second, the swaps market has been transformed to a market with mandated central clearing for financial entities as well as dealers.
Customers now gain the benefit that until recently only dealers had. Central clearing of swaps lowers risk and allows customers more ready access to the market.
Clearinghouses have operated successfully at the center of the futures market for over 100 years – through two world wars, the Great Depression and the 2008 financial crisis.
Reforms have taken us from only 21 percent of the interest rate swaps market being cleared in 2008 to 80 percent during the week ending October 25, 2013.
That same week, we saw 62 percent of new credit index swaps being cleared.
Further, we no longer have the significant time delays that were once associated with swaps clearing.
Five years ago, swaps clearing happened either at the end of the day or even just once a week. This left a significant period of bilateral credit risk in the market, undermining one of the key benefits of central clearing.
Now reforms require pre-trade credit checks and straight-through processing for swaps trades intended for clearing.
As a result, 99 percent of swaps clearing occurs within 10 seconds, with 93 percent actually doing so within three seconds. No longer do market participants have to worry about credit risk when entering into swaps trades intended to be cleared.
Thus, breakage agreements – agreements that had been requested by dealers in the event a swap wasn’t accepted for clearing – are not needed and should not be required for access to trading on a SEF or designated contract market.
Taken as a whole, these reforms have completely transformed the swaps market to a new marketplace.
Swap Dealers
Third, the market has been transformed for swap dealer.
In 2008, swap dealers had no specific requirements with regard to their swap dealing activity.
Today, with 90 swap dealers registered, all of the world’s largest financial institutions in the global swaps market are coming under reforms.
These reforms include new business conduct standards for risk management, documentation of swap transactions, confirmations, sales practices, recordkeeping and reporting.
Just to note how significant this is – this past summer, swap dealers and their over 10,000 counterparties around the globe changed their swap documentation, lowering risk by cleaning up the back office.
These documentation reforms build on what the Federal Reserve Bank of New York had tried to achieve with dealers voluntarily.
I would note from my own experience in the financial community, those back office documents really matter in a bankruptcy or other crisis.
International Coordination on Swap Market Reform
Further, the transformed marketplace covers the far-flung operations of U.S. enterprises.
Congress was clear in the Dodd-Frank Act that we had to learn the lessons of the 2008 crisis.
AIG nearly brought down the U.S. economy through its guaranteed affiliate operating under a French bank license in London.
Lehman Brothers had 3,300 legal entities when it failed. Its main overseas affiliate was guaranteed here in the U.S., and it had 130,000 outstanding swap transactions.
A decade earlier, Long-Term Capital Management was operating out of Connecticut but actually booked their $1.2 trillion derivatives book in the Cayman Islands.
Based upon CFTC guidance, swaps market reform covers transactions between non-U.S. swap dealers and guaranteed affiliates of U.S. persons, as well as swaps between two guaranteed affiliates.
As of last month, offshore branches and guaranteed affiliates, as well as hedge funds, like Long-Term Capital Management, all had to come into central clearing and the other Dodd-Frank reforms.
Customer Protection
Market events of the last two years also highlighted the need to further ensure the protection of customer funds.
Segregation of customer funds is the core foundation of the commodity futures and swaps markets.
Segregation must be maintained at all times. That means every moment of every day.
The CFTC went through a two-year process with market participants, including significant input from the FIA, to ensure that customers have confidence that their funds are segregated and protected. Last week, the sixth set of customer protection rules were finalized by the Commission.
The Future
Before I take questions, I wanted to share a few thoughts looking forward.
First there will be the continued implementation of reforms. Among the highlights is the trade execution mandate likely going live in the first quarter of 2014. Also, there is the critical implementation of the recently completed customer protection rules. The CFTC will continue pivoting from rulewriting to ensuring compliance with these reforms.
Second, it is critical that we preserve the pre-trade transparency that has been a longstanding hallmark of the futures market. The Commission finalized a block rules for swaps and soon will consider staff recommendations for a proposal on a futures block rule.
Third, we have witnessed a fundamental shift in markets from human-based trading to highly automated trading. The Commission looks forward to hearing back on our concept release on automated and high frequency trading.
Fourth, we must deal with the fact that LIBOR is more akin to fiction than fact. Through five settlements the CFTC has brought against banks, we have seen how the public trust can be violated through bad actors readily manipulating benchmark interest rates. As LIBOR and Euribor are not anchored in observable transactions, they have been and can be again readily and pervasively rigged.
The work of the Financial Stability Board to find alternatives and consider potential transitions to these alternatives is critical. This will mean significant changes in the futures and swaps markets. There is a need for these reforms, though, if we’re going to protect the integrity of the markets.
CFTC Resources
Lastly, one of the greatest threats to well-functioning, open, and competitive futures and swaps markets is that the CFTC – the agency tasked with overseeing your markets – is not sized to the task at hand.
That the CFTC completed 65 rulemakings should not be confused with the agency having sufficient people and technology to oversee the markets.
At 673 people, we are only slightly larger than we were 20 years ago. Since then though, the futures market has grown and changed significantly. Further, we have this new job of overseeing the vast swaps market.
The overall branding of these markets is dependent on customers having confidence in using them.
It’s also critical that we have the resources for the timely reviews of applications, registrations, petitions and answers to market participants’ questions.
The President has asked for $315 million for the CFTC. This year we’ve been operating with only $195 million.
Worse yet, as a result of continued funding challenges, sequestration, and a required minimum level Congress set for the CFTC’s outside technology spending, the CFTC already has shrunk 5 percent, and was forced to notify employees of an administrative furlough for up to 14 days this fiscal year.
Congress and the President have real challenges with regard to our federal budget. I believe, though, that the CFTC is a good investment for the American public. It’s a good investment for transparent, well-functioning markets.
Conclusion
Let me close by thanking all of you. These last five years have been a remarkable journey. The futures market performed well straight through the crisis. That’s why we borrowed so much from the futures market in an effort to bring much-needed reform to the swaps market.
On a personal note, I want to thank you for all that we’ve achieved together. I want to thank you because this may be my last speech as the CFTC’s Chairman at an FIA conference. I assure you, though, if invited, I’ll be with you again.
Thank you, I look forward to answering your questions.
Friday, November 8, 2013
OSHA PROPOSES NEW RULE TO TRACK WORKPLACE INJURIES AND ILLNESSES
FROM: U.S. LABOR DEPARTMENT
OSHA announces proposed new rule to improve tracking of workplace injuries and illnesses
WASHINGTON — The Occupational Safety and Health Administration today issued a proposed rule to improve workplace safety and health through improved tracking of workplace injuries and illnesses. The announcement follows the Bureau of Labor Statistics' release of its annual Occupational Injuries and Illnesses report, which estimates that three million workers were injured on the job in 2012.
"Three million injuries are three million too many," said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. "With the changes being proposed in this rule, employers, employees, the government and researchers will have better access to data that will encourage earlier abatement of hazards and result in improved programs to reduce workplace hazards and prevent injuries, illnesses and fatalities. The proposal does not add any new requirement to keep records; it only modifies an employer's obligation to transmit these records to OSHA."
The public will have 90 days, through Feb. 6, 2014, to submit written comments on the proposed rule. On Jan. 9, 2014, OSHA will hold a public meeting on the proposed rule in Washington, D.C. A Federal Register notice announcing the public meeting will be published shortly.
The proposed rule was developed following a series of stakeholder meetings in 2010 to help OSHA gather information about electronic submission of establishment-specific injury and illness data. OSHA is proposing to amend its current recordkeeping regulations to add requirements for the electronic submission of injury and illness information employers are already required to keep under existing standards, Part 1904. The first proposed new requirement is for establishments with more than 250 employees (and who are already required to keep records) to electronically submit the records on a quarterly basis to OSHA.
OSHA is also proposing that establishments with 20 or more employees, in certain industries with high injury and illness rates, be required to submit electronically only their summary of work-related injuries and illnesses to OSHA once a year. Currently, many such firms report this information to OSHA under OSHA's Data Initiative.
OSHA plans to eventually post the data online, as encouraged by President Obama's Open Government Initiative. Timely, establishment-specific injury and illness data will help OSHA target its compliance assistance and enforcement resources more effectively by identifying workplaces where workers are at greater risk, and enable employers to compare their injury rates with others in the same industry. Additional information on the proposed rule can be found at http://www.dol.gov/find/20131107/ and http://www.osha.gov/recordkeeping/proposed_data_form.html.
OSHA announces proposed new rule to improve tracking of workplace injuries and illnesses
WASHINGTON — The Occupational Safety and Health Administration today issued a proposed rule to improve workplace safety and health through improved tracking of workplace injuries and illnesses. The announcement follows the Bureau of Labor Statistics' release of its annual Occupational Injuries and Illnesses report, which estimates that three million workers were injured on the job in 2012.
"Three million injuries are three million too many," said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. "With the changes being proposed in this rule, employers, employees, the government and researchers will have better access to data that will encourage earlier abatement of hazards and result in improved programs to reduce workplace hazards and prevent injuries, illnesses and fatalities. The proposal does not add any new requirement to keep records; it only modifies an employer's obligation to transmit these records to OSHA."
The public will have 90 days, through Feb. 6, 2014, to submit written comments on the proposed rule. On Jan. 9, 2014, OSHA will hold a public meeting on the proposed rule in Washington, D.C. A Federal Register notice announcing the public meeting will be published shortly.
The proposed rule was developed following a series of stakeholder meetings in 2010 to help OSHA gather information about electronic submission of establishment-specific injury and illness data. OSHA is proposing to amend its current recordkeeping regulations to add requirements for the electronic submission of injury and illness information employers are already required to keep under existing standards, Part 1904. The first proposed new requirement is for establishments with more than 250 employees (and who are already required to keep records) to electronically submit the records on a quarterly basis to OSHA.
OSHA is also proposing that establishments with 20 or more employees, in certain industries with high injury and illness rates, be required to submit electronically only their summary of work-related injuries and illnesses to OSHA once a year. Currently, many such firms report this information to OSHA under OSHA's Data Initiative.
OSHA plans to eventually post the data online, as encouraged by President Obama's Open Government Initiative. Timely, establishment-specific injury and illness data will help OSHA target its compliance assistance and enforcement resources more effectively by identifying workplaces where workers are at greater risk, and enable employers to compare their injury rates with others in the same industry. Additional information on the proposed rule can be found at http://www.dol.gov/find/20131107/ and http://www.osha.gov/recordkeeping/proposed_data_form.html.
SECRETARY OF LABOR PEREZ ISSUES STATEMENT ON SENATE PASSAGE OF LGBT WORKER RIGHTS BILL
FROM: U.S. LABOR DEPARTMENT
Statement by US Secretary of Labor Thomas E. Perez on the US Senate's passage of the Employment Non-Discrimination Act
WASHINGTON — U.S. Secretary of Labor Thomas E. Perez today issued the following statement regarding the passage of the Employment Non-Discrimination Act by the U.S. Senate:
"The arc of the moral universe bent a little more toward justice today. Protecting the workplace rights of LGBT workers is a moral imperative that is long overdue. We still have a long road ahead of us, but today's historic vote moves us one step closer to a nation that truly embodies its founding principles of equality, opportunity and fairness for all."
Statement by US Secretary of Labor Thomas E. Perez on the US Senate's passage of the Employment Non-Discrimination Act
WASHINGTON — U.S. Secretary of Labor Thomas E. Perez today issued the following statement regarding the passage of the Employment Non-Discrimination Act by the U.S. Senate:
"The arc of the moral universe bent a little more toward justice today. Protecting the workplace rights of LGBT workers is a moral imperative that is long overdue. We still have a long road ahead of us, but today's historic vote moves us one step closer to a nation that truly embodies its founding principles of equality, opportunity and fairness for all."
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING NOVEMBER 2, 2013
SEASONALLY ADJUSTED DATA
In the week ending November 2, the advance figure for seasonally adjusted initial claims was 336,000, a decrease of 9,000 from the previous week's revised figure of 345,000. The 4-week moving average was 348,250, a decrease of 9,250 from the previous week's revised average of 357,500.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending October 26, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending October 26 was 2,868,000, an increase of 4,000 from the preceding week's revised level of 2,864,000. The 4-week moving average was 2,866,000, a decrease of 8,500 from the preceding week's revised average of 2,874,500.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 327,074 in the week ending November 2, an increase of 4,222 from the previous week. There were 361,800 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 1.9 percent during the week ending October 26, unchanged from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,495,070, a decrease of 13,964 from the preceding week. A year earlier, the rate was 2.2 percent and the volume was 2,783,667.
The total number of people claiming benefits in all programs for the week ending October 19 was 3,958,691, an increase of 74,777 from the previous week. There were 5,078,237 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending October 19.
Initial claims for UI benefits filed by former Federal civilian employees totaled 4,011 in the week ending October 26, a decrease of 10,412 from the prior week. There were 2,433 initial claims filed by newly discharged veterans, an increase of 279 from the preceding week.
There were 27,834 former Federal civilian employees claiming UI benefits for the week ending October 19, a decrease of 49,717 from the previous week. Newly discharged veterans claiming benefits totaled 31,841, a decrease of 265 from the prior week.
States reported 1,370,774 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending October 19, an increase of 64,837 from the prior week. There were 2,118,175 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending October 26 were in Alaska (4.4), Virgin Islands (4.1), Puerto Rico (3.8), California (3.0), New Jersey (3.0), Connecticut (2.7), Pennsylvania (2.7), District of Columbia (2.6), Illinois (2.4), and Oregon (2.4).
The largest increases in initial claims for the week ending October 26 were in Oregon (+2,956), Florida (+2,873), Illinois (+2,460), New York (+2,033), and Pennsylvania (+1,542), while the largest decreases were in California (-4,460), Virginia (-1,807), Washington (-833), Maryland (-431), and Missouri (-343).
In the week ending November 2, the advance figure for seasonally adjusted initial claims was 336,000, a decrease of 9,000 from the previous week's revised figure of 345,000. The 4-week moving average was 348,250, a decrease of 9,250 from the previous week's revised average of 357,500.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending October 26, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending October 26 was 2,868,000, an increase of 4,000 from the preceding week's revised level of 2,864,000. The 4-week moving average was 2,866,000, a decrease of 8,500 from the preceding week's revised average of 2,874,500.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 327,074 in the week ending November 2, an increase of 4,222 from the previous week. There were 361,800 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 1.9 percent during the week ending October 26, unchanged from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,495,070, a decrease of 13,964 from the preceding week. A year earlier, the rate was 2.2 percent and the volume was 2,783,667.
The total number of people claiming benefits in all programs for the week ending October 19 was 3,958,691, an increase of 74,777 from the previous week. There were 5,078,237 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending October 19.
Initial claims for UI benefits filed by former Federal civilian employees totaled 4,011 in the week ending October 26, a decrease of 10,412 from the prior week. There were 2,433 initial claims filed by newly discharged veterans, an increase of 279 from the preceding week.
There were 27,834 former Federal civilian employees claiming UI benefits for the week ending October 19, a decrease of 49,717 from the previous week. Newly discharged veterans claiming benefits totaled 31,841, a decrease of 265 from the prior week.
States reported 1,370,774 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending October 19, an increase of 64,837 from the prior week. There were 2,118,175 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending October 26 were in Alaska (4.4), Virgin Islands (4.1), Puerto Rico (3.8), California (3.0), New Jersey (3.0), Connecticut (2.7), Pennsylvania (2.7), District of Columbia (2.6), Illinois (2.4), and Oregon (2.4).
The largest increases in initial claims for the week ending October 26 were in Oregon (+2,956), Florida (+2,873), Illinois (+2,460), New York (+2,033), and Pennsylvania (+1,542), while the largest decreases were in California (-4,460), Virginia (-1,807), Washington (-833), Maryland (-431), and Missouri (-343).
THERAPIST SENTENCED FOR ROLE IN $55 MILLION MEDICARE FRAUD
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, November 6, 2013
Former Mental-Health Clinic Therapist Sentenced for Role in $55 Million Medicare Fraud Scheme
A former therapist for Biscayne Milieu, a Miami-based mental-health clinic, was sentenced today to serve 120 months in prison for his participation in a $55 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) Miami office made the announcement.
Jose Rojo, 39, of Miami, was sentenced by U.S. District Judge Marcia G. Cooke in the Southern District of Florida. Rojo was convicted on Aug. 7, 2013, of one count of conspiring to commit health care fraud following a one-month jury trial. In addition to the prison term, Rojo was ordered to pay more than $11 million in restitution, jointly and severally with his co-defendants, and to serve three years of supervised release.
According to the evidence at trial, Rojo and his co-conspirators caused the submission of more than $55 million dollars in fraudulent claims to Medicare through Biscayne Milieu, which purportedly operated a partial hospitalization program (PHP) – a form of intensive treatment for severe mental illness. Instead of providing PHP services, the defendants devised a scheme in which they paid patient recruiters to refer ineligible Medicare beneficiaries to Biscayne Milieu for services that were never provided. Many of the patients admitted to Biscayne Milieu were not eligible for PHP because they were chronic substance abusers, suffered from severe dementia and would not benefit from group therapy, or had no mental health diagnosis but were seeking exemptions for their U.S. citizenship applications.
The evidence at trial further showed that, as a therapist at Biscayne Milieu, Rojo conducted sham therapy sessions for patients he knew were ineligible for PHP treatment. Often Rojo showed up late for these sessions or not at all, but Medicare was still billed as if a full session took place. Rojo created fraudulent documents to help cover-up Biscayne Milieu’s massive fraud, including bogus treatment plans and phony group therapy notes that were copied from one document to the other. Deliberately inaccurate group therapy notes for different patients on different days – often years apart – were in many respects identical, including having the same descriptions of patients’ statements in group sessions and even the same misspelled words. Further, Rojo provided other therapists at the clinic with fake group therapy notes for a fee. Biscayne Milieu billed Medicare for tens of millions of dollars in PHP treatments for these patients.
Various owners, doctors, managers, therapists, patient brokers and other employees of Biscayne Milieu have also been charged with health care fraud, kickback violations, money laundering and other offenses in two indictments unsealed in September 2011 and May 2012. Biscayne Milieu, its owners, and more than 25 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial. Antonio and Jorge Macli and Sandra Huarte – the owners and operators of Biscayne Milieu – were each convicted at trial and were sentenced in April 2013 to 30 years, 25 years and 22 years in prison, respectively.
This case was investigated by the FBI with the assistance of HHS-OIG and was brought by the the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant U.S. Attorneys Marlene Rodriguez and James V. Hayes of the Southern District of Florida; Hayes was formerly a trial attorney of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Wednesday, November 6, 2013
Former Mental-Health Clinic Therapist Sentenced for Role in $55 Million Medicare Fraud Scheme
A former therapist for Biscayne Milieu, a Miami-based mental-health clinic, was sentenced today to serve 120 months in prison for his participation in a $55 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) Miami office made the announcement.
Jose Rojo, 39, of Miami, was sentenced by U.S. District Judge Marcia G. Cooke in the Southern District of Florida. Rojo was convicted on Aug. 7, 2013, of one count of conspiring to commit health care fraud following a one-month jury trial. In addition to the prison term, Rojo was ordered to pay more than $11 million in restitution, jointly and severally with his co-defendants, and to serve three years of supervised release.
According to the evidence at trial, Rojo and his co-conspirators caused the submission of more than $55 million dollars in fraudulent claims to Medicare through Biscayne Milieu, which purportedly operated a partial hospitalization program (PHP) – a form of intensive treatment for severe mental illness. Instead of providing PHP services, the defendants devised a scheme in which they paid patient recruiters to refer ineligible Medicare beneficiaries to Biscayne Milieu for services that were never provided. Many of the patients admitted to Biscayne Milieu were not eligible for PHP because they were chronic substance abusers, suffered from severe dementia and would not benefit from group therapy, or had no mental health diagnosis but were seeking exemptions for their U.S. citizenship applications.
The evidence at trial further showed that, as a therapist at Biscayne Milieu, Rojo conducted sham therapy sessions for patients he knew were ineligible for PHP treatment. Often Rojo showed up late for these sessions or not at all, but Medicare was still billed as if a full session took place. Rojo created fraudulent documents to help cover-up Biscayne Milieu’s massive fraud, including bogus treatment plans and phony group therapy notes that were copied from one document to the other. Deliberately inaccurate group therapy notes for different patients on different days – often years apart – were in many respects identical, including having the same descriptions of patients’ statements in group sessions and even the same misspelled words. Further, Rojo provided other therapists at the clinic with fake group therapy notes for a fee. Biscayne Milieu billed Medicare for tens of millions of dollars in PHP treatments for these patients.
Various owners, doctors, managers, therapists, patient brokers and other employees of Biscayne Milieu have also been charged with health care fraud, kickback violations, money laundering and other offenses in two indictments unsealed in September 2011 and May 2012. Biscayne Milieu, its owners, and more than 25 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial. Antonio and Jorge Macli and Sandra Huarte – the owners and operators of Biscayne Milieu – were each convicted at trial and were sentenced in April 2013 to 30 years, 25 years and 22 years in prison, respectively.
This case was investigated by the FBI with the assistance of HHS-OIG and was brought by the the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant U.S. Attorneys Marlene Rodriguez and James V. Hayes of the Southern District of Florida; Hayes was formerly a trial attorney of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
FLORIDA HOSPICE WILL PAY $3 MILLION TO RESOLVE ALLEGATIONS FALSE CLAIMS ALLEGATIONS
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, November 5, 2013
Orlando, Fla., Area Hospice to Pay $3 Million to Resolve Allegations That It Billed Medicare for Patients Not Terminally Ill
Hospice of the Comforter Inc. (HOTCI) has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by submitting false claims to the Medicare program for hospice services provided to patients who were not eligible for the Medicare hospice benefit, the Justice Department announced today. HOTCI is headquartered in Altamonte Springs, Fla., and provides hospice services to patients residing in Seminole, Osceola and Orange counties in Florida.
“This settlement is a result of the Justice Department’s continuing efforts to prevent the abuse of the taxpayer-funded Medicare hospice program, which is intended to provide comfort and care to terminally ill persons during the last six months of their lives,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will pursue those who seek to misuse this important benefit for their own enrichment.”
The government alleged that between December 2005 and December 2010, HOTCI engaged in practices that resulted in billing Medicare for patients who were not terminally ill. Specifically, HOTCI allegedly directed its staff to admit all referred patients without regard to whether they were eligible for the Medicare hospice benefit, falsified medical records to make it appear that certain patients were eligible for the benefit when they were not, employed field nurses without hospice training, established procedures to limit physicians’ roles in assessing patients’ terminal status and delayed discharging patients when they became ineligible for the benefit.
As part of this settlement, HOTCI has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to promptly detect and prevent future conduct similar to that which gave rise to the settlement. In addition, HOTCI’s former Chief Executive Officer Robert Wilson has agreed to a three-year, voluntary exclusion from Medicare, Medicaid and other federal health care programs.
“This settlement represents a fair and appropriate resolution of this troubling matter,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Hospice providers in our district should be on notice that our office will do what it takes to protect our citizens from this kind of misconduct.”
“Hospice care is a sacred trust from which no provider should fraudulently profit,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Claiming tax dollars for people who are not terminally ill ?? and therefore ineligible for hospice care ?? cannot be tolerated.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $16.7 billion through False Claims Act cases, with more than $11.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The allegations settled today arose from a lawsuit filed by a former HOTCI employee, Douglas Stone, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Stone’s share of the recovery has not been determined.
This matter was handled by the Justice Department’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Middle District of Florida and the Department of Health and Human Services Office of the Inspector General.
The case is United States ex rel. Stone v. Hospice of the Comforter Inc ., No. 6:11-cv-1498-ORL-22-DAB (M.D. Fla.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Tuesday, November 5, 2013
Orlando, Fla., Area Hospice to Pay $3 Million to Resolve Allegations That It Billed Medicare for Patients Not Terminally Ill
Hospice of the Comforter Inc. (HOTCI) has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by submitting false claims to the Medicare program for hospice services provided to patients who were not eligible for the Medicare hospice benefit, the Justice Department announced today. HOTCI is headquartered in Altamonte Springs, Fla., and provides hospice services to patients residing in Seminole, Osceola and Orange counties in Florida.
“This settlement is a result of the Justice Department’s continuing efforts to prevent the abuse of the taxpayer-funded Medicare hospice program, which is intended to provide comfort and care to terminally ill persons during the last six months of their lives,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will pursue those who seek to misuse this important benefit for their own enrichment.”
The government alleged that between December 2005 and December 2010, HOTCI engaged in practices that resulted in billing Medicare for patients who were not terminally ill. Specifically, HOTCI allegedly directed its staff to admit all referred patients without regard to whether they were eligible for the Medicare hospice benefit, falsified medical records to make it appear that certain patients were eligible for the benefit when they were not, employed field nurses without hospice training, established procedures to limit physicians’ roles in assessing patients’ terminal status and delayed discharging patients when they became ineligible for the benefit.
As part of this settlement, HOTCI has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to promptly detect and prevent future conduct similar to that which gave rise to the settlement. In addition, HOTCI’s former Chief Executive Officer Robert Wilson has agreed to a three-year, voluntary exclusion from Medicare, Medicaid and other federal health care programs.
“This settlement represents a fair and appropriate resolution of this troubling matter,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Hospice providers in our district should be on notice that our office will do what it takes to protect our citizens from this kind of misconduct.”
“Hospice care is a sacred trust from which no provider should fraudulently profit,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Claiming tax dollars for people who are not terminally ill ?? and therefore ineligible for hospice care ?? cannot be tolerated.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $16.7 billion through False Claims Act cases, with more than $11.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The allegations settled today arose from a lawsuit filed by a former HOTCI employee, Douglas Stone, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Stone’s share of the recovery has not been determined.
This matter was handled by the Justice Department’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Middle District of Florida and the Department of Health and Human Services Office of the Inspector General.
The case is United States ex rel. Stone v. Hospice of the Comforter Inc ., No. 6:11-cv-1498-ORL-22-DAB (M.D. Fla.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Thursday, November 7, 2013
U.S. DEFENSE DEPARTMENT CONTRACTS FOR NOVEMBER 7, 2013
FROM: U.S. DEFENSE DEPARTMENT
CONTRACTS
DEFENSE LOGISTICS AGENCY
Easy Street JD&S LLC*, Carol Stream, Ill., has been awarded a maximum $633,000,000 fixed-price with economic-price-adjustment contract for procurement of commercial type material handling equipment. This contract is a competitive acquisition, and 31 offers were received. Locations of performance are Illinois and Ireland with a Nov. 6, 2018 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE8EC-14-D-0001).
US Food Service Baltimore/Washington Division, Severn, Md., has been awarded a maximum $12,581,939 fixed-price with economic-price-adjustment, bridge contract for prime vendor full line food distribution. This contract is a sole-source acquisition. This is a one-year base contract with no option periods. Locations of performance are Maryland and mid-Atlantic North region with a Nov. 8, 2014, performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and Coast Guard. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM300-14-D-3719).
Shamrock Foods Co., Phoenix, Ariz., has been awarded a maximum $8,700,000 fixed-price with economic-price-adjustment, indefinite-quantity, bridge contract for prime vendor full line food distribution. This contract is a sole-source acquisition. This is a one-year base contract with no option periods. Location of performance is Arizona with a Nov. 8, 2014, performance completion date. Using military services are Army, Air Force, and federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM300-14-D-3656).
Greenstone Limited*, Peapack, N.J., has been awarded a maximum $8,026,537 modification (P00017) exercising the seventh one-year option period on a one-year base contract (SPM200-06-D-7703) with seven one-year option periods for various pharmaceutical products. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is New Jersey with a Nov. 3, 2014, performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2014 warstopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
ARMY
Northrop Grumman, Huntsville, Ala., was awarded a $39,200,000 modification (P00095) to a previously existing cost-plus-incentive-fee, multi-year, option-included contract (W31P4Q-08-C-0418) to provide research and development services in support of integrated air missile defense. The estimated completion date is Sept. 30, 2015. Fiscal 2013 research, development, test and evaluation funds are being obligated on this award. The Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.
Great Lakes Dock and Dredge Company LLC, Oak Brook, Ill., was awarded a $10,273,971 firm-fixed-price contract for dredging services in support of the Baltimore Harbor Dredging Project. Work will be performed in Baltimore, Md., with an estimated completion date of March 28, 2014. Fiscal 2013 and fiscal 2014 operations and maintenance funds are being obligated on this award. One bid was solicited, with one bid received. The Army Corps of Engineers, Baltimore, Md., is the contracting activity (W912DR-14-C-0003).
K&N Industrial Equipment, Spokane Valley, Wash., was awarded a $7,976,384 firm-fixed-price, option-included contract to provide for the rehabilitation of bridge cranes located at Lower Granite Dam and Little Goose Dam. Work will be performed in Dayton, Wash.; and Pomeroy, Wash.; with an estimated completion date of Aug. 13, 2015. Fiscal 2014 procurement funds in the amount of $3,734,955 are being obligated on this award. The bid was solicited through the Internet, with four bids received. The Army Corps of Engineers, Walla Walla, Wash., is the contracting activity (W912EF-14-C-0002).
AIR FORCE
Lockheed Martin Corp., Fort Worth, Texas, has been awarded a $19,763,075 option exercise (P0050) to an existing cost-plus-fixed-fee contract (FA8611-08-C-2897) to retrofit fielded mission training centers with out the window visual systems upgrade and night vision goggles capability. Effort includes upgrades for F-22 training systems at Sheppard Air Force Base (AFB), Texas; Tyndall AFB, Fla.; Langley AFB, Va.; Hickam AFB, Hawaii, and Elmendorf AFB, Alaska. Work will be performed at St. Louis, Mo., with an expected completion date of Dec. 31, 2016. Fiscal 2014 aircraft procurement funds in the amount of $19,763,075 are being obligated at time of option exercise. The Air Force Life Cycle Management Center, Wright-Patterson AFB, Ohio, is the contracting activity.
NAVY
Ultra Armoring LLC*, Kings Mountain, N.C., is being awarded a $15,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the light capability rough terrain forklift (LCRTF) crew protection kit (CPK). The LCRTF CPK shall provide a CPK for integration to increase survivability and provide protection in the event of small arms fire or improvised explosive Device attack. The basic contract will be for four test assets, development costs, 100 production units, technical manuals, supply support and training. The initial delivery order (0001) will be for six test assets, development costs, shipping of test assets, testing provisioning support and the technical manual development and procurement. Work will be performed in Kings Mountain, N.C., and work is expected to be completed in November 2018. No funds are being obligated on the base contract. Fiscal 2013 research, development, testing and evaluation funds in the amount of $1,427,168 will be obligated on the delivery order, and will expire at the end of the current fiscal year. This contract was competitively procured through full and open competition via the Federal Business Opportunities website, with five proposals received. Marine Corps System Command in Quantico, Va., is the procuring contracting activity (M67854-14-D-5024).
CTC Enterprise Ventures Corp., Johnstown, Pa., is being awarded a $14,205,582 firm-fixed-price modification to previously awarded contract (N61331-12-C-0007) for the production of 10 carriage, stream, tow and recovery system kits in support of the MH-60S Airborne Mine Countermeasures program. Work will be performed in Johnstown, Pa., and is expected to be completed by October 2016. Fiscal 2013 aircraft procurement, Navy funds in the amount of $14,205,582 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Surface Warfare Center Panama City Division, Panama City, Fla., is the contracting activity.
Trimble Navigation Ltd., Dayton, Ohio, is being awarded $12,788,333 for delivery order 0007 under a previously awarded indefinite-delivery/indefinite-quantity contract (M67854-13-D-5023) for the Laser Leveling System (LLS) to support the Product Manager, Engineering Systems, Material Handling Equipment and Construction Equipment Product Management Team. Collectively, the LLS consists of surveying equipment and grade control equipment. This procurement requires the original equipment manufacturer to provide 33 LLS systems, operator and maintainer training and training aids, transportation of the systems, and logistics and life cycle support for all items procured. Work will be performed in Dayton, Ohio, and is expected to be completed by April 2018. Fiscal 2013 procurement, Marine Corps funds in the amount of $12,788,333 will be obligated at the time of award. Contract funds will not expire at the end of the current fiscal year. The basic contract was competitively procured, with two offers received. Marine Corps Systems Command, Quantico, Va., is the contracting activity.
The Boeing Co., St. Louis, Mo., is being awarded an $8,343,276 modification to a previously awarded fixed-price-incentive-fee contract (N00019-09-C-0019) for the replacement and/or refurbishment of production life limit tooling for the F/A-18E/F and EA-18G aircraft. Work will be performed in St. Louis, Mo., and is expected to be completed in October 2014. Fiscal 2013 aircraft procurement, Navy contract funds in the amount of $8,343,276 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
General Dynamics Electric Boat Corp., Groton, Conn., is being awarded a $7,103,796 modification to previously awarded contract (N00024-10-C-4301) to provide ship’s force duties; protection and operation; and organizational-level repairs and preservation of floating dry dock ARDM-4 at the Naval Submarine Support Facility, Naval Submarine Base, New London, Conn. Work will be performed in New London, Conn., and is expected to be completed by September 2014. Fiscal 2014 operations and maintenance, Navy contract funds in the amount of $7,103,796 will be obligated at time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Weston Solutions Inc., West Chester, Pa., is being awarded $6,576,624 for firm-fixed-price task order FZ01 under a previously awarded multiple award construction contract (N62583-09-D-0131) for design and construction of an MV-22 Aviation Fuel Storage Facility at Marine Corps Air Station, Camp Pendleton. The work to be performed provides for expansion of the existing fuel storage facility by adding two additional fuel storage tanks, relocating loading pad and expanding the current petroleum oil lubricants operations building to support the fuel requirements of the MV-22 aircraft. Work will be performed in Oceanside, Calif., and is expected to be completed by January 2015. Fiscal 2012 military construction, Navy contract funds in the amount of $6,576,624 are obligated on this award and will not expire at the end of the current fiscal year. Four proposals were received for this task order. The Naval Facilities Engineering Command, Southwest, San Diego, Calif., is the contracting activity.
*Small Business
CONTRACTS
DEFENSE LOGISTICS AGENCY
Easy Street JD&S LLC*, Carol Stream, Ill., has been awarded a maximum $633,000,000 fixed-price with economic-price-adjustment contract for procurement of commercial type material handling equipment. This contract is a competitive acquisition, and 31 offers were received. Locations of performance are Illinois and Ireland with a Nov. 6, 2018 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE8EC-14-D-0001).
US Food Service Baltimore/Washington Division, Severn, Md., has been awarded a maximum $12,581,939 fixed-price with economic-price-adjustment, bridge contract for prime vendor full line food distribution. This contract is a sole-source acquisition. This is a one-year base contract with no option periods. Locations of performance are Maryland and mid-Atlantic North region with a Nov. 8, 2014, performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and Coast Guard. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM300-14-D-3719).
Shamrock Foods Co., Phoenix, Ariz., has been awarded a maximum $8,700,000 fixed-price with economic-price-adjustment, indefinite-quantity, bridge contract for prime vendor full line food distribution. This contract is a sole-source acquisition. This is a one-year base contract with no option periods. Location of performance is Arizona with a Nov. 8, 2014, performance completion date. Using military services are Army, Air Force, and federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM300-14-D-3656).
Greenstone Limited*, Peapack, N.J., has been awarded a maximum $8,026,537 modification (P00017) exercising the seventh one-year option period on a one-year base contract (SPM200-06-D-7703) with seven one-year option periods for various pharmaceutical products. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is New Jersey with a Nov. 3, 2014, performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2014 warstopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
ARMY
Northrop Grumman, Huntsville, Ala., was awarded a $39,200,000 modification (P00095) to a previously existing cost-plus-incentive-fee, multi-year, option-included contract (W31P4Q-08-C-0418) to provide research and development services in support of integrated air missile defense. The estimated completion date is Sept. 30, 2015. Fiscal 2013 research, development, test and evaluation funds are being obligated on this award. The Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.
Great Lakes Dock and Dredge Company LLC, Oak Brook, Ill., was awarded a $10,273,971 firm-fixed-price contract for dredging services in support of the Baltimore Harbor Dredging Project. Work will be performed in Baltimore, Md., with an estimated completion date of March 28, 2014. Fiscal 2013 and fiscal 2014 operations and maintenance funds are being obligated on this award. One bid was solicited, with one bid received. The Army Corps of Engineers, Baltimore, Md., is the contracting activity (W912DR-14-C-0003).
K&N Industrial Equipment, Spokane Valley, Wash., was awarded a $7,976,384 firm-fixed-price, option-included contract to provide for the rehabilitation of bridge cranes located at Lower Granite Dam and Little Goose Dam. Work will be performed in Dayton, Wash.; and Pomeroy, Wash.; with an estimated completion date of Aug. 13, 2015. Fiscal 2014 procurement funds in the amount of $3,734,955 are being obligated on this award. The bid was solicited through the Internet, with four bids received. The Army Corps of Engineers, Walla Walla, Wash., is the contracting activity (W912EF-14-C-0002).
AIR FORCE
Lockheed Martin Corp., Fort Worth, Texas, has been awarded a $19,763,075 option exercise (P0050) to an existing cost-plus-fixed-fee contract (FA8611-08-C-2897) to retrofit fielded mission training centers with out the window visual systems upgrade and night vision goggles capability. Effort includes upgrades for F-22 training systems at Sheppard Air Force Base (AFB), Texas; Tyndall AFB, Fla.; Langley AFB, Va.; Hickam AFB, Hawaii, and Elmendorf AFB, Alaska. Work will be performed at St. Louis, Mo., with an expected completion date of Dec. 31, 2016. Fiscal 2014 aircraft procurement funds in the amount of $19,763,075 are being obligated at time of option exercise. The Air Force Life Cycle Management Center, Wright-Patterson AFB, Ohio, is the contracting activity.
NAVY
Ultra Armoring LLC*, Kings Mountain, N.C., is being awarded a $15,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the light capability rough terrain forklift (LCRTF) crew protection kit (CPK). The LCRTF CPK shall provide a CPK for integration to increase survivability and provide protection in the event of small arms fire or improvised explosive Device attack. The basic contract will be for four test assets, development costs, 100 production units, technical manuals, supply support and training. The initial delivery order (0001) will be for six test assets, development costs, shipping of test assets, testing provisioning support and the technical manual development and procurement. Work will be performed in Kings Mountain, N.C., and work is expected to be completed in November 2018. No funds are being obligated on the base contract. Fiscal 2013 research, development, testing and evaluation funds in the amount of $1,427,168 will be obligated on the delivery order, and will expire at the end of the current fiscal year. This contract was competitively procured through full and open competition via the Federal Business Opportunities website, with five proposals received. Marine Corps System Command in Quantico, Va., is the procuring contracting activity (M67854-14-D-5024).
CTC Enterprise Ventures Corp., Johnstown, Pa., is being awarded a $14,205,582 firm-fixed-price modification to previously awarded contract (N61331-12-C-0007) for the production of 10 carriage, stream, tow and recovery system kits in support of the MH-60S Airborne Mine Countermeasures program. Work will be performed in Johnstown, Pa., and is expected to be completed by October 2016. Fiscal 2013 aircraft procurement, Navy funds in the amount of $14,205,582 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Surface Warfare Center Panama City Division, Panama City, Fla., is the contracting activity.
Trimble Navigation Ltd., Dayton, Ohio, is being awarded $12,788,333 for delivery order 0007 under a previously awarded indefinite-delivery/indefinite-quantity contract (M67854-13-D-5023) for the Laser Leveling System (LLS) to support the Product Manager, Engineering Systems, Material Handling Equipment and Construction Equipment Product Management Team. Collectively, the LLS consists of surveying equipment and grade control equipment. This procurement requires the original equipment manufacturer to provide 33 LLS systems, operator and maintainer training and training aids, transportation of the systems, and logistics and life cycle support for all items procured. Work will be performed in Dayton, Ohio, and is expected to be completed by April 2018. Fiscal 2013 procurement, Marine Corps funds in the amount of $12,788,333 will be obligated at the time of award. Contract funds will not expire at the end of the current fiscal year. The basic contract was competitively procured, with two offers received. Marine Corps Systems Command, Quantico, Va., is the contracting activity.
The Boeing Co., St. Louis, Mo., is being awarded an $8,343,276 modification to a previously awarded fixed-price-incentive-fee contract (N00019-09-C-0019) for the replacement and/or refurbishment of production life limit tooling for the F/A-18E/F and EA-18G aircraft. Work will be performed in St. Louis, Mo., and is expected to be completed in October 2014. Fiscal 2013 aircraft procurement, Navy contract funds in the amount of $8,343,276 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
General Dynamics Electric Boat Corp., Groton, Conn., is being awarded a $7,103,796 modification to previously awarded contract (N00024-10-C-4301) to provide ship’s force duties; protection and operation; and organizational-level repairs and preservation of floating dry dock ARDM-4 at the Naval Submarine Support Facility, Naval Submarine Base, New London, Conn. Work will be performed in New London, Conn., and is expected to be completed by September 2014. Fiscal 2014 operations and maintenance, Navy contract funds in the amount of $7,103,796 will be obligated at time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Weston Solutions Inc., West Chester, Pa., is being awarded $6,576,624 for firm-fixed-price task order FZ01 under a previously awarded multiple award construction contract (N62583-09-D-0131) for design and construction of an MV-22 Aviation Fuel Storage Facility at Marine Corps Air Station, Camp Pendleton. The work to be performed provides for expansion of the existing fuel storage facility by adding two additional fuel storage tanks, relocating loading pad and expanding the current petroleum oil lubricants operations building to support the fuel requirements of the MV-22 aircraft. Work will be performed in Oceanside, Calif., and is expected to be completed by January 2015. Fiscal 2012 military construction, Navy contract funds in the amount of $6,576,624 are obligated on this award and will not expire at the end of the current fiscal year. Four proposals were received for this task order. The Naval Facilities Engineering Command, Southwest, San Diego, Calif., is the contracting activity.
*Small Business
REMARKS BY SECRETARY OF STATE KERRY AND JORDANIAN FOREIGN MINISTER NASSER JUDEH
FROM: U.S. STATE DEPARTMENT
Joint Press Availability With Jordanian Foreign Minister Nasser Judeh
Press Availability
John Kerry
Secretary of State
Amman, Jordan
November 7, 2013
FOREIGN MINISTER JUDEH: (Via interpreter) In the name of Allah, I am very pleased to welcome His Excellency, the Secretary of State of USA. He is very close friend for His Majesty the King, and a friend of Jordan and a friend of mine, personally. And his visit – which I believe it is the fifth or the sixth visit for him to Jordan since the beginning of his term as Secretary of State, and I think this is the seventh or eighth visit to the region. This shows his keenness to communicate with His Majesty the King and with the leaders and the senior officials in the region, especially concerning the important files which require consultation and communication and constant contact.
We were honored to meet His Majesty the King, and we have very plain and frank dialogue, comprehensive and in-depth, about all the issues of – common issues, and you know that a few days ago before His Excellency started his visit, there was a phone call with His Majesty, and before the 10 days, there was a meeting with His Excellency in Washington. I met him there and the call of the speech or the theme of the speech before was involving about the nature of this tour and the issues to be debated with the leaders and officials in the region. There was a prolonged speech at the phone call, and before that, Mr. Kerry visited the Kingdom of Saudi Arabia and Egypt, and today, he has just arrived from the Palestinian Territories and Israel, where he met the officials there. Many developments, and we were very pleased in our meeting with His Majesty a while ago.
And in our bilateral negotiations here, we listened to detailed discussions about the negotiations made by Mr. Kerry in the countries that he visited, and we discussed all the common issues – the Syrian issue, the peace process, and other issues in addition to our bilateral (inaudible) relationships, and these distinguished relationships that can be performed by two parties to enhance them in the future.
Many issues happened in the region since Mr. Kerry visited Jordan last time at the summer of this year, starting the negotiations between the Palestinians and Israel about the final peace settlement, and which came as intensive efforts exerted by Mr. Kerry to launch these negotiations under the auspices of the Americans. Our position in the Hashemite Kingdom with the leadership of His Majesty King Abdullah, we have affirmed this and – which is linked to the two-state solutions that can result of a Palestinian independent and viable state, which has full sovereignty on its territories and the capital is East Jerusalem, and addressing all the issues of the final settlement to establish this state on the territory – on the Palestinian Territories. And this comes within the framework of the two-state statement, and then the framework of the Arab Peace Initiative.
And here, I would like to point out that His Excellency is very keen to communicate not just with the leaders, but with the committee of the Arab Peace Initiative. We have met for four times in Washington and in the region and in Paris. This shows his keenness to update the committee member about the latest developments in the negotiations between the Palestinians and the Israelis, and to focus upon the positive points that will be witnessed for the people and for the countries in the region by applying the items of the Arab Peace Initiative which guarantees peace and security for all, including Israel, including a relationship not just with the Arab states but also with the Islamic states and the whole world, so that all the countries in the region will enjoy peace and security and stability.
We have talked about the latest issues, and there would be a meeting with the Palestinian President this evening, and we have talked about the negotiations and the atmosphere of the negotiations, and we agreed since the beginning when Mr. Kerry launched his efforts for these negotiations to be – to have a reference for this discussion for the media with the American Administration and to be away from the (inaudible) in order to achieve the aspired results. And I think until now, this has been committed to and it proved success in leaving the negotiators to perform the required role and to achieve the required results.
We reaffirm our stance in the Hashemite Kingdom of Jordan that the settlement is impeding peace, it is illegal, and illegitimate. That is why we have to accelerate the negotiations to address through talking about the final peace settlement – a basic item which is the borders, which will terminate settlements forever, where the globe agrees that it is illegal and illegitimate. And we have a stance concerning the unilateral procedures, especially in the occupied Jerusalem, and the violations we see that would not serve the exerted efforts for the success of the negotiations between the two sides.
We reaffirm always that in Jordan, we have a national interest in achieving peace between the Palestinians and the Israelis. We have interest in establishing a viable Palestinian state. We are not monitoring our mediators, but we have interest also in these matters. This is reaffirmed with His Excellency Mr. Kerry and with the USA. So we support the efforts of Mr. Kerry and we reaffirm also the necessity that these negotiations would meet in success.
Since we met in Amman, there were development in the Syrian issues. There was an agreement between Russia and America concerning the chemical weapons in Syria. And we always say that as a neighboring state for Syria, we warned always from the risks of these chemicals and using them not just on the Palestinian people, but on the people of the region. And we reconfirm here that settling this file would serve our interest also. But we have to focus on the political settlement, which will restore peace, stability, and security and put an end to violence and destruction and killing in Syria within the efforts exerted by Mr. Kerry with the Russian side and with other countries to convene Geneva 2 conference, which hopefully would open the road for applying the peaceful settlement, and Jordan stance that the peaceful negotiations will guarantee the unity of the Syrian territories and put an end to violence.
We are very pleased with this visit. We reaffirm our support for these efforts and for the personal effort exerted by Mr. Secretary.
(In English.) (Inaudible) and to say that we had an extremely productive audience with His Majesty earlier on today, and I believe that your lengthy phone call with His Majesty before embarking on your current trip was extremely productive. We salute your efforts in terms of the peace negotiations between the Palestinians and the Israelis. We salute your commitment and your dedication. And thank you for briefing us today on the latest on that front. We also salute your efforts on bringing about a political solution to the ongoing crisis in Syria and your efforts towards convening Geneva 2 with the intention, as we are all in agreement, of implementing what was agreed upon in Geneva 1. And I believe that your visit at this time is extremely critical in that regard, and the efforts that are conducted by you and by your colleagues are ones that we support and encourage you to continue trying to bring the parties together at the conference that will herald a political solution that will end the violence and end the killing and end the danger that is ever present on our border.
In this regard, we discussed today the presence of 600,000 Syrian refugees on Jordanian soil, as well as 700,000 others who were there from before the crisis, a total of 1.3 million Syrians, almost 21 percent of the population, and the burden that Jordan is shouldering on behalf of the international community. And we addressed the need for the international community to help Jordan in hosting these refugees and in carrying this burden on behalf of the international community.
So our economy is already challenged, as all of you know, and this extra burden is not making things any easier. And I want to thank the Secretary of State for his understanding of this predicament that we find ourselves in, and for his support and his country’s support for Jordan in this regard.
We discussed bilateral relations, and I want to thank the United States of America through the Secretary of State for the assistance that it provides to Jordan. I had extremely productive meetings in Washington when I was there, across the spectrum – the Administration, on Capitol Hill, both sides – and there was so much goodwill, and there is always so much goodwill towards His Majesty and towards Jordan. It’s truly a special relationship that I am always careful to remind is a relationship that goes beyond friendship into a true partnership, and the commonality of interests that we have and the common challenges that we all face, and a relationship that is over 60 years old and continues to grow stronger by the day.
Thank you for your friendship, Mr. Secretary. Thank you for your efforts and for your dedication. Thank you for your visit.
SECRETARY KERRY: Well, Foreign Minister Judeh – I got it right this time. (Laughter.) He lacks confidence in me. (Laughter.) Foreign Minister Judeh, my friend, Nasser, I really appreciate your warm welcome, your generous comments, and I appreciate your terrific food. Thank you for a wonderful lunch.
Nasser is really one of the foreign ministers I have come to know the best over these last months, and I’m particularly grateful to him for his constant willingness to engage and help all of the parties. Not just with respect to the peace talks, but in the region, he has been particularly creative, particularly engaged. And I especially want to thank His Majesty, His Royal Highness King Abdullah II for his tremendous engagement, his creative engagement in this process. We had a very constructive conversation this morning. His Majesty put a number of ideas on the table that have possibilities, and was really engaged in a very important way in this.
And I want to emphasize there is a reason why I have come here to Jordan as many times. Jordan is not just a neighbor, not a passive bystander in this process. Jordan is integrally involved in and has high stakes in the outcome of the Palestinian-Israeli conflict and the questions of peace. Jordan has a long border with Israel and the West Bank, the Palestinian Territories, and Jordan has been a partner for peace with Israel, with the United States, and with all those people who are looking for stability and peace and an end of conflict in this region. Jordan is already engaged in a major security relationship with the parties, and whatever resolution there is with respect to the issue of peace between Israel and the Palestinians, Jordan will be a partner in that process.
So it is important for the President of the United States, and through me to him, for the United States to be able to be engaged in this process with Jordan. And I came here today to Amman on President Obama’s behalf directly from Jerusalem and Bethlehem, where I held meetings with both Prime Minister Netanyahu and with President Abbas. The meetings obviously are about the critical question of how we can bring peace to Palestinians and Israelis – long overdue, long consuming, now, generations.
And I’m pleased to say, that despite difficulties – and we all understand what they are – these discussions were productive, and they will continue even today. Tonight, I will see President Abbas yet again, and tomorrow morning, as I leave the region, I will have breakfast with Prime Minister Netanyahu. And the purpose of this is not just to have a meeting for the sake of a meeting. The purpose is to explore and discuss and examine the various possibilities of how we can resolve very complicated issues in ways that meet the needs of both parties, in ways that lead us to the kind of compromise that will be necessary in order to achieve peace. President Obama and the United States are deeply committed to this peace effort, and we are committed to a peaceful, prosperous future for the people of Israel and the people of Palestine.
Now, both Prime Minister Netanyahu and President Abbas reaffirmed their commitment to these negotiations despite the fact that at moments, there are obviously tensions over one happening or another in one place or another, whether it’s in Israel or in the territories. No secret that these negotiations are always difficult, particularly this kind. But I want to say something that I think is important for Palestinians and Israelis to really think about.
What is the alternative to peace? Prolonged, continued conflict? The absence of peace really means you have a sort of low-grade kind of conflict, war, whatever you want to call it. And as long as the aspirations of people are held down one way or the other in one place or another, whether it’s the aspirations of the people of Israel to be free from violence, free from rockets, free from the diversion of their lives to the energy of maintaining security, or whether it’s the aspirations of young Palestinians who want to go to school, get an education, have a job, have a future – as long as there is this conflict, and if the conflict frustrates yet again so that people cannot find a solution, the possibilities of violence, of other kinds of confrontation, of other alternatives, become more real. This region has been there before, and this region consciously has made decisions and choices to try to move away from that in a different direction.
So this is really important. It’s important not just for the Palestinian Territories or for Israel, but it’s important to people all through the region, which is why there is an Arab Peace Initiative. It’s why the follow-on committee of the Arab League has been taking time to meet, I think four or five times now. It’s why they have reaffirmed their commitment to peace. It’s why they have said that if we can achieve peace, they are ready to make peace with Israel.
The stakes here are huge, and obviously, the lack of peace confronts everybody with choices, frankly, that nobody wants to contemplate. This region does not benefit by continued conflict. The possibility of a peace agreement with 22 Arab countries and 35 Muslim nations, 57 countries in all, brings a whole new economic possibility to this region. At one of the meetings we had recently, I heard one Arab minister, foreign minister, say to his fellow ministers at the meeting that if peace could be made between Israel and the Palestinians, that this region would be one of the wealthiest regions in the world, one of the most visited regions in the world, with economic opportunity that dwarfs the imagination today.
So that’s what these stakes are. That’s what we are pursuing. And nothing, I think, is more worthy of our time. We will continue this work in the days ahead with the close cooperation of King Abdullah II, who is following in his father’s great legacy of seeking peace through the important work of the Arab League as a whole, as well as the Arab Peace Initiative Follow-up Committee.
Foreign Minister Judeh and I, as I know he just shared with you, also discussed the question of Syria. We understand in the United States how impactful what is happening in Syria is on Jordan. And we care about Jordan. Jordan is not just a partner; Jordan is a great friend, and we’re grateful to the Jordanian people for their commitment not just to peace, but to their efforts in the region to take in refugees to try to deal with other crises. And so we feel that it is very important for us to respect the generosity that has led Jordanians to open their doors to refugees despite the fact that it is difficult and complicated for the people of Jordan. It’s a heavy toll on the economy. It’s the right thing to do. At lunch, I learned today how a huge number of children – how many in total?
FOREIGN MINISTER JUDEH: 78,000.
SECRETARY KERRY: 78,000 Syrian children are not being left in a camp or left to their own devices; they’re in schools. Jordan has made its schools open and available for Syrian children so that their education and opportunities will not be cut off as a fact of this war. That is amazingly generous and very difficult and very trying for teachers and for the schools and for the systems. So we applaud that, and that’s why the United States is very proud that we are the number-one donor to the humanitarian crisis of Syria. And we will continue to work with our Jordanian partners in this effort.
We discussed today the humanitarian crisis, which has received insufficient attention from the global community. The world needs to be outraged at the unbelievable consequences of Assad’s brutality, where families are forced from their homes, are displaced within their own nation, forced to eat stray dogs or cats, and struggle for survival on a day-to-day basis, while the regime blocks humanitarian aid and engages in starvation as a tactic of war. So we believe that even as winter approaches, it is more compelling for us to try to find a way to address this humanitarian challenge.
And we cannot forget that this war in Syria has much bigger stakes than just Bashar al-Assad. It has to deal with the entire question of tens of thousands of families who’ve lost loved ones, lost their homes, and don’t want to lose their great country to an endless conflict and killing. So the global community needs to step up. We will continue to work with our partner, Jordan, in order to try to get to Geneva 2 so we can have the negotiation that is really the only way to end this conflict. We discussed trying to get there as rapidly as possible, and both Jordan and the United States will continue to work together to do that.
So, Mr. Foreign Minister, we also touched a little bit on Iran and Egypt, both issues of concern to all of us. And we pledged to continue to consult with our friends in Jordan with respect to those issues as we go forward.
Finally, I’ll just say that Nasser mentioned the work he’s done on the Hill, and he’s grateful for the relationship there. I think that His Majesty King Abdullah and Foreign Minister Judeh have done as effective a job of reaching out and building friendships and relationships for their country, and helping to give people a sense of the stakes in this region, as any head of state or foreign minister that I’ve met. And I thank them for those efforts, and I particularly thank them on behalf of President Obama for their highly valued friendship and partnership. Thank you.
FOREIGN MINISTER JUDEH: Thank you very much, John. I think the Secretary needs to get ready for his meeting this evening, so we’ll take three questions if I’m not mistaken. We’ll start with the Jordanian side. Let’s see who’s – and then take the U.S. I love press conferences where there are no questions. (Laughter.)
QUESTION: (Via interpreter) Good evening. I’m Majed al-Dabbas from Ammon news agency. His Majesty The King said that Jordan would take procedures to protect its interest in case the situation escalated in Syria. Do you have understandings about the nature of these procedures or measures taken by Jordan?
My question to Mr. Kerry: Some people think that the Syrian – the Russian policy has overcame the American policy. How do you evaluate this thing?
FOREIGN MINISTER JUDEH: (Via interpreter) First of all, concerning His Majesty’s speech and the speech at the throne, this is not the first time where His Majesty confirm our stance concerning the flow of the Syrian refugees to Jordan, and His Majesty’s speech is very clear. It doesn’t need clarification from myself.
What is reiterated by His Majesty that we open our heart and our country to receive our brothers from Syria who sought shelter in Jordan, fleeing away from destruction and killing. And this is the history of Jordan and of which we are very proud. Our obligation performed in fully, as His Majesty says, that there is no country in the whole world, whatever its economy or political situation, as strong or acquire natural resources can tolerate an increase of 20 to 21 percent of its population during a period which does not exceed two years.
Jordan is continuing to perform its obligation and ask for the international community to bear its responsibility for the humanitarian effort performed by Jordan on behalf of the international community. The problem is not related to the Jordan location, as a neighbor to Syria, but it is a humanitarian crisis that needs the whole world to take responsibility in it. And in the absence of this support to Jordan and which enables Jordan to show that – this responsibility, His Majesty said that all options are open to Jordan to select whatever possible to protect our interest and our people.
However, there are many countries and many international organizations that extended help to Jordan, whether directly by opening the camp at that time and the infrastructure for Zaatari camp, or through extending aids to Jordan, which is still less – far less than what we bear of social and economical and a political burden on Jordan. So the international community has to bear its responsibility towards Jordan performing this mission on behalf of the international community.
SECRETARY KERRY: With respect to your question about Russia (inaudible), obviously, the United States and Russia differ with respect to Assad. Russia is supporting Assad, and the United States believes that Assad has lost any legitimacy for the governance of Syria and must go.
But Russia and the United States are two countries, both members of the Permanent Five of the United Nations, and important countries that need to be able to work together, cooperate together where we can, and find ways to help solve problems. So we were very pleased to join in an initiative, which our presidents talked about in St. Petersburg, and which Sergey Lavrov and I talked about several times, to try to remove the weapons of mass destruction – the chemical weapons – from Syria. And we have joined together in that effort, as we have joined together to help call for Geneva 2 in order to implement Geneva 1.
So that is a shared priority, a shared sense of responsibility, and we welcome the work with Russia in an effort to try to provide stability and peace. So I don’t think it’s a question of one besting the other. Those are unnecessary judgments to be made about relationships. Sometimes, countries can find mutual interests that have very positive impact, and in this case that is precisely what we are doing. And I think it’s very good, not just for the beneficiaries directly, but for the rest of the world to see our two nations working together in that effect.
FOREIGN MINISTER JUDEH: We’ll take a question from the U.S. side, perhaps.
SECRETARY KERRY: Karen DeYoung.
FOREIGN MINISTER JUDEH: Karen, yeah.
SECRETARY KERRY: Karen DeYoung, Washington Post, yep.
FOREIGN MINISTER JUDEH: Good to see you again, Karen.
QUESTION: For the Secretary, when you began the peace process, you said your objective was to achieve final status agreements over the course of nine months, and you rejected suggestions that only a partial or interim agreement was acceptable. Do you still think that that’s possible? On the current trip, you told King Abdullah this morning that you thought some clarity had been achieved during your meetings over the past two days. Can you provide us of any sense of what is clearer now than it was when you arrived?
And to the Minister, two stops on this trip for Secretary Kerry, both Saudi Arabia and Israel, have cautioned the Obama Administration about accepting what they called a partial nuclear agreement with Iran. Do you share their concerns? And if you do, what have you learned today from Secretary Kerry about the first-phase agreement that was described yesterday by negotiators in Geneva? And has that assuaged your concerns?
And if I can just ask both of you, on Syria, it now looks like the Geneva 2 meeting will not take place at least until December. That meeting, as you know, has been repeatedly postponed since it was first proposed earlier this year. What makes you think that the problems that led to the earlier postponements are any different now than they were before? Thank you.
SECRETARY KERRY: Well, let me answer the last part first and then come back to the first part of your question on the peace process.
With respect to the movement, I understand it might be moved by a week or something like that. The date has not been set, incidentally, and part of the reason for that is that I think – what is today, the 7th – two days from now, the opposition is meeting and they’re having a vote, and people are trying to respect their process appropriately.
So I’m confident that somewhere in the next days a date is going to be set. And whether it’s a week later or seven days – eight days or whatever it is, two weeks later – is not – it’s going to give people time to prepare, it’s going to open up more opportunity for, I think, the variations of options to be able to be explored, and some pre-work to be done by the parties after they are named by Special Envoy Brahimi.
So I think a lot of clarity will come in the next days, and I’m not deterred by that at all. I think it’s good that it is as much on everybody’s minds as it is. We had a good meeting in Geneva two days ago with our – with Under Secretary Wendy Sherman and Deputy Bogdanov of Russian, together with Brahimi, and I think we’re heading in the right direction.
With respect to the peace process and clarity, do I believe, with respect to a final status element – absolutely. An interim agreement, only if it embraces the concept of the final status, might be a step along the way, but you cannot just do an interim agreement and pretend you are dealing with the problem. We’ve been there before. We’ve had interim agreements. We’ve had roadmaps. But if you leave the main issues hanging out there, mischief-makers will make the most of that and bad things will happen in the interval that then make it even harder to get to the final status. It is imperative that we keep final status and settle this before it can’t be settled because events on the ground or other events interfere with that possibility.
So I remain absolutely committed to this ability to get a final status solution. And do I think it is possible to do it? The answer is yes. I believe when I say clarity is coming to things, as we surface ideas in discussions with the leaders, we begin to see what range they have for moving or what possibilities there are for another alternative, or for something you haven’t thought of. And that brings a clarity to the range of choices that you have and therefore it defines in a sense the needle that you have to thread as you are proceeding forward. So I think listening to everybody – frankly, we made significant progress in our discussions about a couple of the areas of concern in the panorama of concerns that exist. But these are some of the principal ones.
And so I have promised I’m not going to go into the details of the negotiation. By agreement, all the parties are not going to discuss what we are discussing. And since I’m the one who invoked that rule, I’m not going to stand up here and break it. But it is important for us to be able to proceed carefully, quietly, and secretly, frankly. And that’s what gives the leaders the ability to be able to explore different possibilities. But I’m convinced, in my own judgment, that what happened here over the course of the last day, and it’s not over yet, has opened up a number of different possibilities for things that could be included as we proceed forward, and that’s a constructive way in which this goes on.
Now I can’t tell you precisely – maybe in a few weeks I can give you a better sense of timing about what we’re thinking about one thing or another, but for the moment we still have a nine-month period. We’re only three months into this. So we have a considerable amount of discussion that has taken place, and we’ve got, obviously, a decent road ahead of us to continue to march down, and we intend to continue to march down it.
FOREIGN MINISTER JUDEH: Thank you very much for that. And if I may just add a comment on what John has just said, first of all, I agree that he shouldn’t break his own rule, and one of the secrets for the success of this – I hesitate to say process, because we’ve had too many processes in the past. But this is a serious negotiating process, the success of which depends on avoiding these negotiations across the airwaves, as we have seen in the past. So this is a rule, I think, that all parties are accepting and respecting, and it’s important that it continues.
Now on your question, Karen, I don’t know what you mean by “partial solutions.” I – whether it’s the Palestinian-Israeli conflict or any other dispute, partial solutions, in my book, that leave issues hanging which could potentially come back and fly at our throats in the future, are not solutions. And therefore when we talk about the Middle East, and I don’t want to go back to nuances of U.S. foreign policy at different milestones by talking about linkage or no linkage, but everything in the Middle East is connected. So there may not be a linkage when it comes to a certain file with another file that happened to be parallel, but there is a connection somehow. This is the Middle East. Everything is connected. And the overall picture is certainly one that consists of many dots that have to be connected.
We have always said that the – a diplomatic solution, through dialogue and diplomacy, to the Iranian nuclear file is something that not only we welcome but something that we support and appreciate. I mean, look at the last three months. Look at the agreements that have come out of intensive diplomacy conducted by the United States and the Russian Federation, an agreement to eliminate the chemical weapons arsenal in Syria, an agreement to go to Geneva 2 to implement Geneva 1, overtures that took place on the margins of the United Nations General Assembly that resulted in a high-level contact between a senior U.S. official and a senior Iranian official. And there was an effort of the P5+1, and Cathy Ashton, that was ongoing for a number of years, and it has been given new impetus. And therefore the end of that line would be a solution to that file that satisfies everyone.
I mean, there is a threat of a nuclear arms race in the region, there’s a threat of instability, because of that nuclear file, to the Gulf region, to the hinterland inside. There’s a threat of military strikes that would cause further instability in this region. We’ve always said we want to avoid further factors of instability. So a diplomatic solution is not only welcome, but it has to be one that is comprehensive and that alleviates the fears of everyone concerned and bring back peace and potential peace of mind for this entire region.
QUESTION: (Via interpreter) You said we are not observing or not mediators. How can we get our rights while we have continuous settlement and the problem of Jerusalem is still continuing? So we are facing a full Israeli rejection. Do you think that we have practical steps to face such rejection and reluctance by the side of Israel? And is there any American assistance concerning the Syrian refugees?
FOREIGN MINISTER JUDEH: (Via interpreter) The most important issue when talking about (inaudible) is that there is a timeframe. This timeframe work mentioned by Mr. Kerry for nine years started in July last year – this year, and has been there for four months. And there is an end for this road after these nine months when both sides look for the comprehensive pictures, although we have bilateral procedures on the ground that handle the peace process, but there is an end for this road. And this is expressed by Mr. Kerry frankly and clearly and with commitment.
The settlement is illegal and illegitimate. This is the position of the whole world, including the USA, and we have heard the speech of Mr. Kerry. Although the settlement should stop, but it should be solved from the root through the negotiations and whether we like or not. But we like that whether the settlement is continuing because of the occupation, the occupation should be end. And the negotiations between the Palestinians and the Israelis have gone through real examination through some declaration of settlements and some violations for the sacred places and resulted in some killing and death. However, the more comprehensive framework and the commitment from the USA for final settlement, this would put an end for this rejection and for the suffering, and we are full of hope that this would happen.
Concerning the American assistance for the Syria refugees, it is continuing, and the USA was among the first countries that provided assistance to Jordan. And there was a visit by President Obama at the beginning of the year, and we have received assistance in this year concerning, in particular, the Syrian refugees. And also among the issues that discussed between His Majesty with Secretary Kerry about this assistance of which the USA is understanding in full the burden shouldered by Jordan. So we appreciate and value the assistance provided to Jordan.
Thank you very much.
Joint Press Availability With Jordanian Foreign Minister Nasser Judeh
Press Availability
John Kerry
Secretary of State
Amman, Jordan
November 7, 2013
FOREIGN MINISTER JUDEH: (Via interpreter) In the name of Allah, I am very pleased to welcome His Excellency, the Secretary of State of USA. He is very close friend for His Majesty the King, and a friend of Jordan and a friend of mine, personally. And his visit – which I believe it is the fifth or the sixth visit for him to Jordan since the beginning of his term as Secretary of State, and I think this is the seventh or eighth visit to the region. This shows his keenness to communicate with His Majesty the King and with the leaders and the senior officials in the region, especially concerning the important files which require consultation and communication and constant contact.
We were honored to meet His Majesty the King, and we have very plain and frank dialogue, comprehensive and in-depth, about all the issues of – common issues, and you know that a few days ago before His Excellency started his visit, there was a phone call with His Majesty, and before the 10 days, there was a meeting with His Excellency in Washington. I met him there and the call of the speech or the theme of the speech before was involving about the nature of this tour and the issues to be debated with the leaders and officials in the region. There was a prolonged speech at the phone call, and before that, Mr. Kerry visited the Kingdom of Saudi Arabia and Egypt, and today, he has just arrived from the Palestinian Territories and Israel, where he met the officials there. Many developments, and we were very pleased in our meeting with His Majesty a while ago.
And in our bilateral negotiations here, we listened to detailed discussions about the negotiations made by Mr. Kerry in the countries that he visited, and we discussed all the common issues – the Syrian issue, the peace process, and other issues in addition to our bilateral (inaudible) relationships, and these distinguished relationships that can be performed by two parties to enhance them in the future.
Many issues happened in the region since Mr. Kerry visited Jordan last time at the summer of this year, starting the negotiations between the Palestinians and Israel about the final peace settlement, and which came as intensive efforts exerted by Mr. Kerry to launch these negotiations under the auspices of the Americans. Our position in the Hashemite Kingdom with the leadership of His Majesty King Abdullah, we have affirmed this and – which is linked to the two-state solutions that can result of a Palestinian independent and viable state, which has full sovereignty on its territories and the capital is East Jerusalem, and addressing all the issues of the final settlement to establish this state on the territory – on the Palestinian Territories. And this comes within the framework of the two-state statement, and then the framework of the Arab Peace Initiative.
And here, I would like to point out that His Excellency is very keen to communicate not just with the leaders, but with the committee of the Arab Peace Initiative. We have met for four times in Washington and in the region and in Paris. This shows his keenness to update the committee member about the latest developments in the negotiations between the Palestinians and the Israelis, and to focus upon the positive points that will be witnessed for the people and for the countries in the region by applying the items of the Arab Peace Initiative which guarantees peace and security for all, including Israel, including a relationship not just with the Arab states but also with the Islamic states and the whole world, so that all the countries in the region will enjoy peace and security and stability.
We have talked about the latest issues, and there would be a meeting with the Palestinian President this evening, and we have talked about the negotiations and the atmosphere of the negotiations, and we agreed since the beginning when Mr. Kerry launched his efforts for these negotiations to be – to have a reference for this discussion for the media with the American Administration and to be away from the (inaudible) in order to achieve the aspired results. And I think until now, this has been committed to and it proved success in leaving the negotiators to perform the required role and to achieve the required results.
We reaffirm our stance in the Hashemite Kingdom of Jordan that the settlement is impeding peace, it is illegal, and illegitimate. That is why we have to accelerate the negotiations to address through talking about the final peace settlement – a basic item which is the borders, which will terminate settlements forever, where the globe agrees that it is illegal and illegitimate. And we have a stance concerning the unilateral procedures, especially in the occupied Jerusalem, and the violations we see that would not serve the exerted efforts for the success of the negotiations between the two sides.
We reaffirm always that in Jordan, we have a national interest in achieving peace between the Palestinians and the Israelis. We have interest in establishing a viable Palestinian state. We are not monitoring our mediators, but we have interest also in these matters. This is reaffirmed with His Excellency Mr. Kerry and with the USA. So we support the efforts of Mr. Kerry and we reaffirm also the necessity that these negotiations would meet in success.
Since we met in Amman, there were development in the Syrian issues. There was an agreement between Russia and America concerning the chemical weapons in Syria. And we always say that as a neighboring state for Syria, we warned always from the risks of these chemicals and using them not just on the Palestinian people, but on the people of the region. And we reconfirm here that settling this file would serve our interest also. But we have to focus on the political settlement, which will restore peace, stability, and security and put an end to violence and destruction and killing in Syria within the efforts exerted by Mr. Kerry with the Russian side and with other countries to convene Geneva 2 conference, which hopefully would open the road for applying the peaceful settlement, and Jordan stance that the peaceful negotiations will guarantee the unity of the Syrian territories and put an end to violence.
We are very pleased with this visit. We reaffirm our support for these efforts and for the personal effort exerted by Mr. Secretary.
(In English.) (Inaudible) and to say that we had an extremely productive audience with His Majesty earlier on today, and I believe that your lengthy phone call with His Majesty before embarking on your current trip was extremely productive. We salute your efforts in terms of the peace negotiations between the Palestinians and the Israelis. We salute your commitment and your dedication. And thank you for briefing us today on the latest on that front. We also salute your efforts on bringing about a political solution to the ongoing crisis in Syria and your efforts towards convening Geneva 2 with the intention, as we are all in agreement, of implementing what was agreed upon in Geneva 1. And I believe that your visit at this time is extremely critical in that regard, and the efforts that are conducted by you and by your colleagues are ones that we support and encourage you to continue trying to bring the parties together at the conference that will herald a political solution that will end the violence and end the killing and end the danger that is ever present on our border.
In this regard, we discussed today the presence of 600,000 Syrian refugees on Jordanian soil, as well as 700,000 others who were there from before the crisis, a total of 1.3 million Syrians, almost 21 percent of the population, and the burden that Jordan is shouldering on behalf of the international community. And we addressed the need for the international community to help Jordan in hosting these refugees and in carrying this burden on behalf of the international community.
So our economy is already challenged, as all of you know, and this extra burden is not making things any easier. And I want to thank the Secretary of State for his understanding of this predicament that we find ourselves in, and for his support and his country’s support for Jordan in this regard.
We discussed bilateral relations, and I want to thank the United States of America through the Secretary of State for the assistance that it provides to Jordan. I had extremely productive meetings in Washington when I was there, across the spectrum – the Administration, on Capitol Hill, both sides – and there was so much goodwill, and there is always so much goodwill towards His Majesty and towards Jordan. It’s truly a special relationship that I am always careful to remind is a relationship that goes beyond friendship into a true partnership, and the commonality of interests that we have and the common challenges that we all face, and a relationship that is over 60 years old and continues to grow stronger by the day.
Thank you for your friendship, Mr. Secretary. Thank you for your efforts and for your dedication. Thank you for your visit.
SECRETARY KERRY: Well, Foreign Minister Judeh – I got it right this time. (Laughter.) He lacks confidence in me. (Laughter.) Foreign Minister Judeh, my friend, Nasser, I really appreciate your warm welcome, your generous comments, and I appreciate your terrific food. Thank you for a wonderful lunch.
Nasser is really one of the foreign ministers I have come to know the best over these last months, and I’m particularly grateful to him for his constant willingness to engage and help all of the parties. Not just with respect to the peace talks, but in the region, he has been particularly creative, particularly engaged. And I especially want to thank His Majesty, His Royal Highness King Abdullah II for his tremendous engagement, his creative engagement in this process. We had a very constructive conversation this morning. His Majesty put a number of ideas on the table that have possibilities, and was really engaged in a very important way in this.
And I want to emphasize there is a reason why I have come here to Jordan as many times. Jordan is not just a neighbor, not a passive bystander in this process. Jordan is integrally involved in and has high stakes in the outcome of the Palestinian-Israeli conflict and the questions of peace. Jordan has a long border with Israel and the West Bank, the Palestinian Territories, and Jordan has been a partner for peace with Israel, with the United States, and with all those people who are looking for stability and peace and an end of conflict in this region. Jordan is already engaged in a major security relationship with the parties, and whatever resolution there is with respect to the issue of peace between Israel and the Palestinians, Jordan will be a partner in that process.
So it is important for the President of the United States, and through me to him, for the United States to be able to be engaged in this process with Jordan. And I came here today to Amman on President Obama’s behalf directly from Jerusalem and Bethlehem, where I held meetings with both Prime Minister Netanyahu and with President Abbas. The meetings obviously are about the critical question of how we can bring peace to Palestinians and Israelis – long overdue, long consuming, now, generations.
And I’m pleased to say, that despite difficulties – and we all understand what they are – these discussions were productive, and they will continue even today. Tonight, I will see President Abbas yet again, and tomorrow morning, as I leave the region, I will have breakfast with Prime Minister Netanyahu. And the purpose of this is not just to have a meeting for the sake of a meeting. The purpose is to explore and discuss and examine the various possibilities of how we can resolve very complicated issues in ways that meet the needs of both parties, in ways that lead us to the kind of compromise that will be necessary in order to achieve peace. President Obama and the United States are deeply committed to this peace effort, and we are committed to a peaceful, prosperous future for the people of Israel and the people of Palestine.
Now, both Prime Minister Netanyahu and President Abbas reaffirmed their commitment to these negotiations despite the fact that at moments, there are obviously tensions over one happening or another in one place or another, whether it’s in Israel or in the territories. No secret that these negotiations are always difficult, particularly this kind. But I want to say something that I think is important for Palestinians and Israelis to really think about.
What is the alternative to peace? Prolonged, continued conflict? The absence of peace really means you have a sort of low-grade kind of conflict, war, whatever you want to call it. And as long as the aspirations of people are held down one way or the other in one place or another, whether it’s the aspirations of the people of Israel to be free from violence, free from rockets, free from the diversion of their lives to the energy of maintaining security, or whether it’s the aspirations of young Palestinians who want to go to school, get an education, have a job, have a future – as long as there is this conflict, and if the conflict frustrates yet again so that people cannot find a solution, the possibilities of violence, of other kinds of confrontation, of other alternatives, become more real. This region has been there before, and this region consciously has made decisions and choices to try to move away from that in a different direction.
So this is really important. It’s important not just for the Palestinian Territories or for Israel, but it’s important to people all through the region, which is why there is an Arab Peace Initiative. It’s why the follow-on committee of the Arab League has been taking time to meet, I think four or five times now. It’s why they have reaffirmed their commitment to peace. It’s why they have said that if we can achieve peace, they are ready to make peace with Israel.
The stakes here are huge, and obviously, the lack of peace confronts everybody with choices, frankly, that nobody wants to contemplate. This region does not benefit by continued conflict. The possibility of a peace agreement with 22 Arab countries and 35 Muslim nations, 57 countries in all, brings a whole new economic possibility to this region. At one of the meetings we had recently, I heard one Arab minister, foreign minister, say to his fellow ministers at the meeting that if peace could be made between Israel and the Palestinians, that this region would be one of the wealthiest regions in the world, one of the most visited regions in the world, with economic opportunity that dwarfs the imagination today.
So that’s what these stakes are. That’s what we are pursuing. And nothing, I think, is more worthy of our time. We will continue this work in the days ahead with the close cooperation of King Abdullah II, who is following in his father’s great legacy of seeking peace through the important work of the Arab League as a whole, as well as the Arab Peace Initiative Follow-up Committee.
Foreign Minister Judeh and I, as I know he just shared with you, also discussed the question of Syria. We understand in the United States how impactful what is happening in Syria is on Jordan. And we care about Jordan. Jordan is not just a partner; Jordan is a great friend, and we’re grateful to the Jordanian people for their commitment not just to peace, but to their efforts in the region to take in refugees to try to deal with other crises. And so we feel that it is very important for us to respect the generosity that has led Jordanians to open their doors to refugees despite the fact that it is difficult and complicated for the people of Jordan. It’s a heavy toll on the economy. It’s the right thing to do. At lunch, I learned today how a huge number of children – how many in total?
FOREIGN MINISTER JUDEH: 78,000.
SECRETARY KERRY: 78,000 Syrian children are not being left in a camp or left to their own devices; they’re in schools. Jordan has made its schools open and available for Syrian children so that their education and opportunities will not be cut off as a fact of this war. That is amazingly generous and very difficult and very trying for teachers and for the schools and for the systems. So we applaud that, and that’s why the United States is very proud that we are the number-one donor to the humanitarian crisis of Syria. And we will continue to work with our Jordanian partners in this effort.
We discussed today the humanitarian crisis, which has received insufficient attention from the global community. The world needs to be outraged at the unbelievable consequences of Assad’s brutality, where families are forced from their homes, are displaced within their own nation, forced to eat stray dogs or cats, and struggle for survival on a day-to-day basis, while the regime blocks humanitarian aid and engages in starvation as a tactic of war. So we believe that even as winter approaches, it is more compelling for us to try to find a way to address this humanitarian challenge.
And we cannot forget that this war in Syria has much bigger stakes than just Bashar al-Assad. It has to deal with the entire question of tens of thousands of families who’ve lost loved ones, lost their homes, and don’t want to lose their great country to an endless conflict and killing. So the global community needs to step up. We will continue to work with our partner, Jordan, in order to try to get to Geneva 2 so we can have the negotiation that is really the only way to end this conflict. We discussed trying to get there as rapidly as possible, and both Jordan and the United States will continue to work together to do that.
So, Mr. Foreign Minister, we also touched a little bit on Iran and Egypt, both issues of concern to all of us. And we pledged to continue to consult with our friends in Jordan with respect to those issues as we go forward.
Finally, I’ll just say that Nasser mentioned the work he’s done on the Hill, and he’s grateful for the relationship there. I think that His Majesty King Abdullah and Foreign Minister Judeh have done as effective a job of reaching out and building friendships and relationships for their country, and helping to give people a sense of the stakes in this region, as any head of state or foreign minister that I’ve met. And I thank them for those efforts, and I particularly thank them on behalf of President Obama for their highly valued friendship and partnership. Thank you.
FOREIGN MINISTER JUDEH: Thank you very much, John. I think the Secretary needs to get ready for his meeting this evening, so we’ll take three questions if I’m not mistaken. We’ll start with the Jordanian side. Let’s see who’s – and then take the U.S. I love press conferences where there are no questions. (Laughter.)
QUESTION: (Via interpreter) Good evening. I’m Majed al-Dabbas from Ammon news agency. His Majesty The King said that Jordan would take procedures to protect its interest in case the situation escalated in Syria. Do you have understandings about the nature of these procedures or measures taken by Jordan?
My question to Mr. Kerry: Some people think that the Syrian – the Russian policy has overcame the American policy. How do you evaluate this thing?
FOREIGN MINISTER JUDEH: (Via interpreter) First of all, concerning His Majesty’s speech and the speech at the throne, this is not the first time where His Majesty confirm our stance concerning the flow of the Syrian refugees to Jordan, and His Majesty’s speech is very clear. It doesn’t need clarification from myself.
What is reiterated by His Majesty that we open our heart and our country to receive our brothers from Syria who sought shelter in Jordan, fleeing away from destruction and killing. And this is the history of Jordan and of which we are very proud. Our obligation performed in fully, as His Majesty says, that there is no country in the whole world, whatever its economy or political situation, as strong or acquire natural resources can tolerate an increase of 20 to 21 percent of its population during a period which does not exceed two years.
Jordan is continuing to perform its obligation and ask for the international community to bear its responsibility for the humanitarian effort performed by Jordan on behalf of the international community. The problem is not related to the Jordan location, as a neighbor to Syria, but it is a humanitarian crisis that needs the whole world to take responsibility in it. And in the absence of this support to Jordan and which enables Jordan to show that – this responsibility, His Majesty said that all options are open to Jordan to select whatever possible to protect our interest and our people.
However, there are many countries and many international organizations that extended help to Jordan, whether directly by opening the camp at that time and the infrastructure for Zaatari camp, or through extending aids to Jordan, which is still less – far less than what we bear of social and economical and a political burden on Jordan. So the international community has to bear its responsibility towards Jordan performing this mission on behalf of the international community.
SECRETARY KERRY: With respect to your question about Russia (inaudible), obviously, the United States and Russia differ with respect to Assad. Russia is supporting Assad, and the United States believes that Assad has lost any legitimacy for the governance of Syria and must go.
But Russia and the United States are two countries, both members of the Permanent Five of the United Nations, and important countries that need to be able to work together, cooperate together where we can, and find ways to help solve problems. So we were very pleased to join in an initiative, which our presidents talked about in St. Petersburg, and which Sergey Lavrov and I talked about several times, to try to remove the weapons of mass destruction – the chemical weapons – from Syria. And we have joined together in that effort, as we have joined together to help call for Geneva 2 in order to implement Geneva 1.
So that is a shared priority, a shared sense of responsibility, and we welcome the work with Russia in an effort to try to provide stability and peace. So I don’t think it’s a question of one besting the other. Those are unnecessary judgments to be made about relationships. Sometimes, countries can find mutual interests that have very positive impact, and in this case that is precisely what we are doing. And I think it’s very good, not just for the beneficiaries directly, but for the rest of the world to see our two nations working together in that effect.
FOREIGN MINISTER JUDEH: We’ll take a question from the U.S. side, perhaps.
SECRETARY KERRY: Karen DeYoung.
FOREIGN MINISTER JUDEH: Karen, yeah.
SECRETARY KERRY: Karen DeYoung, Washington Post, yep.
FOREIGN MINISTER JUDEH: Good to see you again, Karen.
QUESTION: For the Secretary, when you began the peace process, you said your objective was to achieve final status agreements over the course of nine months, and you rejected suggestions that only a partial or interim agreement was acceptable. Do you still think that that’s possible? On the current trip, you told King Abdullah this morning that you thought some clarity had been achieved during your meetings over the past two days. Can you provide us of any sense of what is clearer now than it was when you arrived?
And to the Minister, two stops on this trip for Secretary Kerry, both Saudi Arabia and Israel, have cautioned the Obama Administration about accepting what they called a partial nuclear agreement with Iran. Do you share their concerns? And if you do, what have you learned today from Secretary Kerry about the first-phase agreement that was described yesterday by negotiators in Geneva? And has that assuaged your concerns?
And if I can just ask both of you, on Syria, it now looks like the Geneva 2 meeting will not take place at least until December. That meeting, as you know, has been repeatedly postponed since it was first proposed earlier this year. What makes you think that the problems that led to the earlier postponements are any different now than they were before? Thank you.
SECRETARY KERRY: Well, let me answer the last part first and then come back to the first part of your question on the peace process.
With respect to the movement, I understand it might be moved by a week or something like that. The date has not been set, incidentally, and part of the reason for that is that I think – what is today, the 7th – two days from now, the opposition is meeting and they’re having a vote, and people are trying to respect their process appropriately.
So I’m confident that somewhere in the next days a date is going to be set. And whether it’s a week later or seven days – eight days or whatever it is, two weeks later – is not – it’s going to give people time to prepare, it’s going to open up more opportunity for, I think, the variations of options to be able to be explored, and some pre-work to be done by the parties after they are named by Special Envoy Brahimi.
So I think a lot of clarity will come in the next days, and I’m not deterred by that at all. I think it’s good that it is as much on everybody’s minds as it is. We had a good meeting in Geneva two days ago with our – with Under Secretary Wendy Sherman and Deputy Bogdanov of Russian, together with Brahimi, and I think we’re heading in the right direction.
With respect to the peace process and clarity, do I believe, with respect to a final status element – absolutely. An interim agreement, only if it embraces the concept of the final status, might be a step along the way, but you cannot just do an interim agreement and pretend you are dealing with the problem. We’ve been there before. We’ve had interim agreements. We’ve had roadmaps. But if you leave the main issues hanging out there, mischief-makers will make the most of that and bad things will happen in the interval that then make it even harder to get to the final status. It is imperative that we keep final status and settle this before it can’t be settled because events on the ground or other events interfere with that possibility.
So I remain absolutely committed to this ability to get a final status solution. And do I think it is possible to do it? The answer is yes. I believe when I say clarity is coming to things, as we surface ideas in discussions with the leaders, we begin to see what range they have for moving or what possibilities there are for another alternative, or for something you haven’t thought of. And that brings a clarity to the range of choices that you have and therefore it defines in a sense the needle that you have to thread as you are proceeding forward. So I think listening to everybody – frankly, we made significant progress in our discussions about a couple of the areas of concern in the panorama of concerns that exist. But these are some of the principal ones.
And so I have promised I’m not going to go into the details of the negotiation. By agreement, all the parties are not going to discuss what we are discussing. And since I’m the one who invoked that rule, I’m not going to stand up here and break it. But it is important for us to be able to proceed carefully, quietly, and secretly, frankly. And that’s what gives the leaders the ability to be able to explore different possibilities. But I’m convinced, in my own judgment, that what happened here over the course of the last day, and it’s not over yet, has opened up a number of different possibilities for things that could be included as we proceed forward, and that’s a constructive way in which this goes on.
Now I can’t tell you precisely – maybe in a few weeks I can give you a better sense of timing about what we’re thinking about one thing or another, but for the moment we still have a nine-month period. We’re only three months into this. So we have a considerable amount of discussion that has taken place, and we’ve got, obviously, a decent road ahead of us to continue to march down, and we intend to continue to march down it.
FOREIGN MINISTER JUDEH: Thank you very much for that. And if I may just add a comment on what John has just said, first of all, I agree that he shouldn’t break his own rule, and one of the secrets for the success of this – I hesitate to say process, because we’ve had too many processes in the past. But this is a serious negotiating process, the success of which depends on avoiding these negotiations across the airwaves, as we have seen in the past. So this is a rule, I think, that all parties are accepting and respecting, and it’s important that it continues.
Now on your question, Karen, I don’t know what you mean by “partial solutions.” I – whether it’s the Palestinian-Israeli conflict or any other dispute, partial solutions, in my book, that leave issues hanging which could potentially come back and fly at our throats in the future, are not solutions. And therefore when we talk about the Middle East, and I don’t want to go back to nuances of U.S. foreign policy at different milestones by talking about linkage or no linkage, but everything in the Middle East is connected. So there may not be a linkage when it comes to a certain file with another file that happened to be parallel, but there is a connection somehow. This is the Middle East. Everything is connected. And the overall picture is certainly one that consists of many dots that have to be connected.
We have always said that the – a diplomatic solution, through dialogue and diplomacy, to the Iranian nuclear file is something that not only we welcome but something that we support and appreciate. I mean, look at the last three months. Look at the agreements that have come out of intensive diplomacy conducted by the United States and the Russian Federation, an agreement to eliminate the chemical weapons arsenal in Syria, an agreement to go to Geneva 2 to implement Geneva 1, overtures that took place on the margins of the United Nations General Assembly that resulted in a high-level contact between a senior U.S. official and a senior Iranian official. And there was an effort of the P5+1, and Cathy Ashton, that was ongoing for a number of years, and it has been given new impetus. And therefore the end of that line would be a solution to that file that satisfies everyone.
I mean, there is a threat of a nuclear arms race in the region, there’s a threat of instability, because of that nuclear file, to the Gulf region, to the hinterland inside. There’s a threat of military strikes that would cause further instability in this region. We’ve always said we want to avoid further factors of instability. So a diplomatic solution is not only welcome, but it has to be one that is comprehensive and that alleviates the fears of everyone concerned and bring back peace and potential peace of mind for this entire region.
QUESTION: (Via interpreter) You said we are not observing or not mediators. How can we get our rights while we have continuous settlement and the problem of Jerusalem is still continuing? So we are facing a full Israeli rejection. Do you think that we have practical steps to face such rejection and reluctance by the side of Israel? And is there any American assistance concerning the Syrian refugees?
FOREIGN MINISTER JUDEH: (Via interpreter) The most important issue when talking about (inaudible) is that there is a timeframe. This timeframe work mentioned by Mr. Kerry for nine years started in July last year – this year, and has been there for four months. And there is an end for this road after these nine months when both sides look for the comprehensive pictures, although we have bilateral procedures on the ground that handle the peace process, but there is an end for this road. And this is expressed by Mr. Kerry frankly and clearly and with commitment.
The settlement is illegal and illegitimate. This is the position of the whole world, including the USA, and we have heard the speech of Mr. Kerry. Although the settlement should stop, but it should be solved from the root through the negotiations and whether we like or not. But we like that whether the settlement is continuing because of the occupation, the occupation should be end. And the negotiations between the Palestinians and the Israelis have gone through real examination through some declaration of settlements and some violations for the sacred places and resulted in some killing and death. However, the more comprehensive framework and the commitment from the USA for final settlement, this would put an end for this rejection and for the suffering, and we are full of hope that this would happen.
Concerning the American assistance for the Syria refugees, it is continuing, and the USA was among the first countries that provided assistance to Jordan. And there was a visit by President Obama at the beginning of the year, and we have received assistance in this year concerning, in particular, the Syrian refugees. And also among the issues that discussed between His Majesty with Secretary Kerry about this assistance of which the USA is understanding in full the burden shouldered by Jordan. So we appreciate and value the assistance provided to Jordan.
Thank you very much.
FDA SEEKS TO STOP 7,000 DEATHS PER YEAR BY ELIMINATING TRANS FATS FROM AMERICAN DIET
FROM: U.S. FOOD AND DRUG ADMINISTRATION
FDA Targets Trans Fat in Processed Foods
More than decade ago, a sea change began in the American diet, with consumers starting to avoid foods with trans fat and companies responding by reducing the amount of trans fat in their products.
This evolution began when FDA first proposed in 1999 that manufacturers be required to declare the amount of trans fat on Nutrition Facts labels because of public health concerns. That requirement became effective in 2006.
However, there are still many processed foods made with partially hydrogenated oils (PHOs), the major dietary source of trans fat in processed food. Trans fat has been linked to an increased risk of coronary heart disease, in which plaque builds up inside the arteries and may cause a heart attack.
The Centers for Disease Control and Prevention estimates that a further reduction of trans fat in the food supply can prevent an additional 7,000 deaths from heart disease each year and up to 20,000 heart attacks each year.
Part of the FDA's responsibility to the public is to ensure that food in the American food supply is safe. Therefore, due to the risks associated with consuming PHOs, FDA has issued a Federal Register notice with its preliminary determination that PHOs are no longer "generally recognized as safe," or GRAS, for short. If this preliminary determination is finalized, then PHOs would become food additives subject to premarket approval by FDA. Foods containing unapproved food additives are considered adulterated under U.S. law, meaning they cannot legally be sold.
If FDA determines that PHOs are not GRAS, it could, in effect, mean the end of artificial, industrially-produced trans fat in foods, says Dennis M. Keefe, Ph.D., director of FDA's Office of Food Additive Safety. FDA is soliciting comments on how such an action would impact small businesses and how to ensure a smooth transition if a final determination is issued.
Trans fat wouldn't be completely gone, Keefe notes, because it also occurs naturally in small amounts in meat and dairy products. It is also present at very low levels in other edible oils, such as fully hydrogenated oils, where it is unavoidably produced during the manufacturing process.
back to top
About Trans Fat and PHOs
PHOs are found in many popular processed foods, like baked goods and frozen foods that time-crunched Americans use to feed their families. They have been widely used as ingredients since the 1950s to increase the shelf-life and flavor stability of foods.
But over time, various studies have linked trans fat—produced when hydrogen is added to vegetable oil to make it more solid—to heart disease. A 2002 report by the National Academy of Science's Institute of Medicine found a direct correlation between intake of trans fat and increased levels of low density lipoprotein (LDL) cholesterol, commonly referred to as "bad" cholesterol, and, therefore, increased risk of heart disease.
Keefe says that even though the FDA requirement that trans fat be listed on the Nutrition Facts label took effect in January 2006, consumers took the health warnings to heart early. They started turning away from foods with trans fat soon after publication of FDA's final rule in 2003. Taking the lead from consumers, many processed food manufacturers followed suit and voluntarily changed their food formulations to reduce or eliminate trans fat.
However, Mical E. Honigfort, a consumer safety officer at FDA, says that trans fat can still be found in such processed foods as:
crackers, cookies, cakes, frozen pies and other baked goods
snack foods (such as microwave popcorn)
frozen pizza
vegetable shortenings and stick margarines
coffee creamers
refrigerated dough products (such as biscuits and cinnamon rolls)
ready-to-use frostings
back to top
About GRAS
Under section 409 of the Federal Food, Drug, and Cosmetic Act, any substance intentionally added to food is a food additive subject to premarket approval and review by FDA, with some exceptions. The exceptions include substances "generally recognized as safe," or GRAS, because they are generally recognized by qualified experts as safe under the conditions of intended use.
The most widely used PHOs have long been considered GRAS ingredients by the food industry. Keefe explains that companies may voluntarily notify FDA that they have determined that the use of an ingredient is GRAS, but there is no legal requirement for food manufacturers to submit a GRAS notification before going to market. If FDA ultimately determines that PHOs are not GRAS, food manufacturers would have to obtain premarket approval by FDA before adding PHOs to food.
FDA can act when it believes an ingredient is, in fact, not GRAS. And that's what the agency's preliminary determination is doing now with partially hydrogenated oils. A Federal Register notice was published on Nov., 7 2013 announcing the preliminary determination that PHOs are not GRAS, which includes the opening of a 60-day public comment period.
If FDA makes a final determination that PHOs are not GRAS, the agency and food industry would have to figure out a way to phase out the use of PHOs over time. To help address this concern in an appropriate manner, the Federal Register notice calls for comment on how long it would take the food industry to phase out its use of PHOs.
back to top
What Should the Consumer Do?
In the meantime, what should the average consumer do if he or she picks up a favorite food and sees that it has trans fat on the Nutrition Facts label? The best thing to do is to consider the amounts of saturated fat, cholesterol and trans fat. Choose the product that has the lowest combined amount of these nutrients, Keefe says.
Even if a food claims on its packaging to have "0 grams trans fat," it's a good idea to look at the ingredients, says Honigfort. Under current regulations, companies can make that claim if the food contains less than 0.5 grams of trans fat per serving. But if there is partially hydrogenated oil listed with the ingredients, there might be a small amount of trans fat. Selecting foods with even small amounts of trans fat can add up to a significant intake.
This article appears on FDA's Consumer Updates page, which features the latest on all FDA-regulated products.
Nov. 7, 2013
FDA Targets Trans Fat in Processed Foods
More than decade ago, a sea change began in the American diet, with consumers starting to avoid foods with trans fat and companies responding by reducing the amount of trans fat in their products.
This evolution began when FDA first proposed in 1999 that manufacturers be required to declare the amount of trans fat on Nutrition Facts labels because of public health concerns. That requirement became effective in 2006.
However, there are still many processed foods made with partially hydrogenated oils (PHOs), the major dietary source of trans fat in processed food. Trans fat has been linked to an increased risk of coronary heart disease, in which plaque builds up inside the arteries and may cause a heart attack.
The Centers for Disease Control and Prevention estimates that a further reduction of trans fat in the food supply can prevent an additional 7,000 deaths from heart disease each year and up to 20,000 heart attacks each year.
Part of the FDA's responsibility to the public is to ensure that food in the American food supply is safe. Therefore, due to the risks associated with consuming PHOs, FDA has issued a Federal Register notice with its preliminary determination that PHOs are no longer "generally recognized as safe," or GRAS, for short. If this preliminary determination is finalized, then PHOs would become food additives subject to premarket approval by FDA. Foods containing unapproved food additives are considered adulterated under U.S. law, meaning they cannot legally be sold.
If FDA determines that PHOs are not GRAS, it could, in effect, mean the end of artificial, industrially-produced trans fat in foods, says Dennis M. Keefe, Ph.D., director of FDA's Office of Food Additive Safety. FDA is soliciting comments on how such an action would impact small businesses and how to ensure a smooth transition if a final determination is issued.
Trans fat wouldn't be completely gone, Keefe notes, because it also occurs naturally in small amounts in meat and dairy products. It is also present at very low levels in other edible oils, such as fully hydrogenated oils, where it is unavoidably produced during the manufacturing process.
back to top
About Trans Fat and PHOs
PHOs are found in many popular processed foods, like baked goods and frozen foods that time-crunched Americans use to feed their families. They have been widely used as ingredients since the 1950s to increase the shelf-life and flavor stability of foods.
But over time, various studies have linked trans fat—produced when hydrogen is added to vegetable oil to make it more solid—to heart disease. A 2002 report by the National Academy of Science's Institute of Medicine found a direct correlation between intake of trans fat and increased levels of low density lipoprotein (LDL) cholesterol, commonly referred to as "bad" cholesterol, and, therefore, increased risk of heart disease.
Keefe says that even though the FDA requirement that trans fat be listed on the Nutrition Facts label took effect in January 2006, consumers took the health warnings to heart early. They started turning away from foods with trans fat soon after publication of FDA's final rule in 2003. Taking the lead from consumers, many processed food manufacturers followed suit and voluntarily changed their food formulations to reduce or eliminate trans fat.
However, Mical E. Honigfort, a consumer safety officer at FDA, says that trans fat can still be found in such processed foods as:
crackers, cookies, cakes, frozen pies and other baked goods
snack foods (such as microwave popcorn)
frozen pizza
vegetable shortenings and stick margarines
coffee creamers
refrigerated dough products (such as biscuits and cinnamon rolls)
ready-to-use frostings
back to top
About GRAS
Under section 409 of the Federal Food, Drug, and Cosmetic Act, any substance intentionally added to food is a food additive subject to premarket approval and review by FDA, with some exceptions. The exceptions include substances "generally recognized as safe," or GRAS, because they are generally recognized by qualified experts as safe under the conditions of intended use.
The most widely used PHOs have long been considered GRAS ingredients by the food industry. Keefe explains that companies may voluntarily notify FDA that they have determined that the use of an ingredient is GRAS, but there is no legal requirement for food manufacturers to submit a GRAS notification before going to market. If FDA ultimately determines that PHOs are not GRAS, food manufacturers would have to obtain premarket approval by FDA before adding PHOs to food.
FDA can act when it believes an ingredient is, in fact, not GRAS. And that's what the agency's preliminary determination is doing now with partially hydrogenated oils. A Federal Register notice was published on Nov., 7 2013 announcing the preliminary determination that PHOs are not GRAS, which includes the opening of a 60-day public comment period.
If FDA makes a final determination that PHOs are not GRAS, the agency and food industry would have to figure out a way to phase out the use of PHOs over time. To help address this concern in an appropriate manner, the Federal Register notice calls for comment on how long it would take the food industry to phase out its use of PHOs.
back to top
What Should the Consumer Do?
In the meantime, what should the average consumer do if he or she picks up a favorite food and sees that it has trans fat on the Nutrition Facts label? The best thing to do is to consider the amounts of saturated fat, cholesterol and trans fat. Choose the product that has the lowest combined amount of these nutrients, Keefe says.
Even if a food claims on its packaging to have "0 grams trans fat," it's a good idea to look at the ingredients, says Honigfort. Under current regulations, companies can make that claim if the food contains less than 0.5 grams of trans fat per serving. But if there is partially hydrogenated oil listed with the ingredients, there might be a small amount of trans fat. Selecting foods with even small amounts of trans fat can add up to a significant intake.
This article appears on FDA's Consumer Updates page, which features the latest on all FDA-regulated products.
Nov. 7, 2013
CHECK CASHING COMPANY OWNER PLEADS GUILTY RELATED TO $19 MILLION MONEY LAUNDERING SCHEME
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, November 5, 2013
New York Check Cashing Company and Owner Plead Guilty for Roles in $19 Million Scheme
Belair Payroll Services Inc. (Belair), a multi-branch check cashing company in Flushing, N.Y., and its owner, Craig Panzera, 47, pleaded guilty today for failing to follow reporting and anti-money laundering requirements for more than $19 million in transactions, in violation of the Bank Secrecy Act (BSA). Panzera also pleaded guilty to conspiring to defraud the United States by willfully failing to pay income and payroll taxes.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta Lynch of the Eastern District of New York, Acting Director John Sandweg of U.S. Immigration and Customs Enforcement (ICE), and Chief Richard Weber of the Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
As part of the guilty plea, Belair will forfeit $3,267,252.10, and Panzera will pay restitution in the amount of $946,841.17 to the IRS. Sentencing for Belair and Panzera will be determined at a later date.
According to court records, from in or about June 2009 through June 2011, certain individuals presented to Belair’s manager and other employees checks to be cashed at Belair. The checks were written on accounts of shell corporations that appeared to be health care related, but in fact, the corporations did no legitimate business. The shell corporations and their corresponding bank accounts on which the checks were written were established in the names of foreign nationals, many of whom were no longer in the United States.
Belair accepted these checks and provided cash in excess of $10,000 to the individuals. Panzera and others at Belair never obtained any identification documents or information from those individuals. Belair filed currency transaction reports (CTRs) that falsely stated the checks were cashed by the foreign nationals who set up the shell corporations, and in certain CTRs, Belair failed to indicate the full amount of cash provided to the individuals. The individuals cashed more than $19 million through Belair during the course of the scheme. Panzera and Belair willfully failed to maintain an effective anti-money laundering program by cashing these checks.
The charges in the indictment against Panzera’s and Belair’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
The cases are being investigated by agents from ICE Homeland Security Investigations and IRS-CI. These cases are being prosecuted by Trial Attorneys Claiborne W. Porter and Kevin G. Mosley of the Criminal Division’s Asset Forfeiture and Money Laundering Section’s (AFMLS) Money Laundering and Bank Integrity Unit, Trial Attorney Darrin McCullough of AFMLS’s Forfeiture Unit, and Assistant U.S. Attorney Patricia Notopoulos of the Eastern District of New York.
The Money Laundering and Bank Integrity Unit investigates and prosecutes complex, multi-district and international criminal cases involving financial institutions and individuals who violate the money laundering statutes, the Bank Secrecy Act and other related statutes. The Unit’s prosecutions generally focus on three types of violators: financial institutions, including their officers, managers and employees, whose actions threaten the integrity of the individual institution or the wider financial system; professional money launderers and gatekeepers who provide their services to serious criminal organizations; and individuals and entities engaged in using the latest and most sophisticated money laundering techniques and tools.
Tuesday, November 5, 2013
New York Check Cashing Company and Owner Plead Guilty for Roles in $19 Million Scheme
Belair Payroll Services Inc. (Belair), a multi-branch check cashing company in Flushing, N.Y., and its owner, Craig Panzera, 47, pleaded guilty today for failing to follow reporting and anti-money laundering requirements for more than $19 million in transactions, in violation of the Bank Secrecy Act (BSA). Panzera also pleaded guilty to conspiring to defraud the United States by willfully failing to pay income and payroll taxes.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta Lynch of the Eastern District of New York, Acting Director John Sandweg of U.S. Immigration and Customs Enforcement (ICE), and Chief Richard Weber of the Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
As part of the guilty plea, Belair will forfeit $3,267,252.10, and Panzera will pay restitution in the amount of $946,841.17 to the IRS. Sentencing for Belair and Panzera will be determined at a later date.
According to court records, from in or about June 2009 through June 2011, certain individuals presented to Belair’s manager and other employees checks to be cashed at Belair. The checks were written on accounts of shell corporations that appeared to be health care related, but in fact, the corporations did no legitimate business. The shell corporations and their corresponding bank accounts on which the checks were written were established in the names of foreign nationals, many of whom were no longer in the United States.
Belair accepted these checks and provided cash in excess of $10,000 to the individuals. Panzera and others at Belair never obtained any identification documents or information from those individuals. Belair filed currency transaction reports (CTRs) that falsely stated the checks were cashed by the foreign nationals who set up the shell corporations, and in certain CTRs, Belair failed to indicate the full amount of cash provided to the individuals. The individuals cashed more than $19 million through Belair during the course of the scheme. Panzera and Belair willfully failed to maintain an effective anti-money laundering program by cashing these checks.
The charges in the indictment against Panzera’s and Belair’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
The cases are being investigated by agents from ICE Homeland Security Investigations and IRS-CI. These cases are being prosecuted by Trial Attorneys Claiborne W. Porter and Kevin G. Mosley of the Criminal Division’s Asset Forfeiture and Money Laundering Section’s (AFMLS) Money Laundering and Bank Integrity Unit, Trial Attorney Darrin McCullough of AFMLS’s Forfeiture Unit, and Assistant U.S. Attorney Patricia Notopoulos of the Eastern District of New York.
The Money Laundering and Bank Integrity Unit investigates and prosecutes complex, multi-district and international criminal cases involving financial institutions and individuals who violate the money laundering statutes, the Bank Secrecy Act and other related statutes. The Unit’s prosecutions generally focus on three types of violators: financial institutions, including their officers, managers and employees, whose actions threaten the integrity of the individual institution or the wider financial system; professional money launderers and gatekeepers who provide their services to serious criminal organizations; and individuals and entities engaged in using the latest and most sophisticated money laundering techniques and tools.
SECRETARY OF STATE KERRY MAKES REMARKS WITH ISRAELI PRIME MINISTER NETANYAHU BEFORE MEETING
FROM: U.S. STATE DEPARTMENT
Remarks With Israeli Prime Minister Benjamin Netanyahu Before Their Meeting
Remarks
John Kerry
Secretary of State
Jerusalem
November 6, 2013
PRIME MINISTER NETANYAHU: Well, good morning. It’s my pleasure to welcome my friend John Kerry to Jerusalem. We have two big items on our agenda every time we meet, and this time again.
The first is Iran. We just marked the event 34 years ago when the American Embassy was seized and we heard the chants, “Death to America.” We heard that two days ago again in Tehran, and this is, I believe, the true face of this regime or the person who controls this regime, the so-called Supreme Leader. I think that this attitude buttressed by a policy of terror worldwide supporting Hezbollah, Hamas, and all the forces that are against peace participating in a mass murder in Syria – I think such a regime must not have the world’s most dangerous weapons.
We’ve spoken about it many times, and I believe that as long as they continue their goal to enrich uranium to get nuclear weapons, the pressure should be maintained and even increased because they’re increasing enrichment. And I believe that it’s possible, with intense pressure because of the sanctions regime led in large part by the United States, to get Iran to fully dismantle its nuclear weapons program. And that’s really what we’re seeking – a full, peaceful, complete dismantling of Iran’s nuclear weapons capability, end of all enrichment, end of all centrifuges, end of the plutonium reactor.
If this is achieved, I’d welcome it. I’d be very worried of any partial deals that enable Iran to maintain those capabilities but begin to reduce sanctions because this could have – I think this could undermine the longevity and durability of the sanctions regime.
We seek peace with the Palestinians. We’ve spoken, John, many, many times about this, and because of your efforts, we launched several months ago an initiative to seek a peaceful agreement between Israel and the Palestinians. I want peace with the Palestinians; Israel wants peace with the Palestinians. We agreed three months ago on certain terms. We stand by those terms. We abide scrupulously by the terms of the agreement and the understanding on which we launched the negotiations.
I’m concerned about their progress because I see the Palestinians continuing with incitement, continuing to create artificial crises, continuing to avoid, run away from the historic decisions that are needed to make a genuine peace. I hope that your visit will help steer them back to a place where we could achieve the historical peace that we seek and that our people deserve.
And I welcome you again. Thank you.
SECRETARY KERRY: Well, Prime Minister, thank you very much. Thank you, Bibi, for again making time and being here to be part of this really critical process.
We are in the Rabin Suite here, and last night I had the privilege of visiting the site where violence took the life of a great prime minister who was moving towards peace. And I’d often heard President Clinton talk about the meaning of that loss and that moment to the loss of an opportunity for peace.
So I’m honored to be in the Rabin Suite meeting with the Prime Minister of Israel at a moment where we are in critical talks with respect to the possibilities of a long, long sought goal here in the Middle East. Israel deserves security, deserves to live in peace. The Palestinians deserve a state and deserve to live in peace, and that is what we are working towards.
This is a moment where there are many issues of great consequence on the table. As I sit here, a team is arriving in Geneva and they will be negotiating tomorrow with the P5+1 on Iran, on the very topic that Bibi just raised. Our goal is an Iran that has only a peaceful nuclear program, and indeed we must make certain – it is incumbent on us, a responsibility of the world to know with certainty that it is a peaceful program and there is no capacity to produce a weapon of mass destruction. That’s our goal. And as I have said many times, no deal is better than a bad deal. We will not make a bad deal if a deal can be made at all. And we will be pursuing that carefully.
Even as we are here, we’re also meeting in Geneva and in other efforts to try to move forward on Syria. The impact of Syria on this region cannot be overstated. Massive numbers of refugees, enormous violence, now the potential of disease – polio – a breakdown of the health system – perhaps even if we don’t succeed, the destruction of the state of Syria with all of those dangerous implications.
And then of course, finally, this issue of peace between Israel and the Palestinians. We are now three months into this negotiation. There are always difficulties, always tensions. I’m very confident of our ability to work through them. That’s why I’m here. We will spend serious time this morning. I will meet with President Abbas this afternoon. Again this evening, the Prime Minister and I and his team will share a working dinner, and we’ll work as late as it takes. And again tomorrow, I will be here in the region and working on this.
So I hope that we will continue in the good faith that brought the parties together in the first place that this can be achieved. With good faith, with a serious effort on both sides to make real compromises and hard decisions, this can be achieved. President Obama sees the road ahead, as do I, and we share a belief in this process or we wouldn’t put this time into it. So I look forward to the conversations we’ll have beginning today, and I respect everybody’s patience with us that we are not talking every day about what we’re doing. We need the space to negotiate privately, secretly, quietly, and we will continue to do that. We have six months ahead of us on the timetable we’ve set for ourselves, and I’m confident that we have the ability to make progress.
PRIME MINISTER NETANYAHU: Thank you, John.
Remarks With Israeli Prime Minister Benjamin Netanyahu Before Their Meeting
Remarks
John Kerry
Secretary of State
Jerusalem
November 6, 2013
PRIME MINISTER NETANYAHU: Well, good morning. It’s my pleasure to welcome my friend John Kerry to Jerusalem. We have two big items on our agenda every time we meet, and this time again.
The first is Iran. We just marked the event 34 years ago when the American Embassy was seized and we heard the chants, “Death to America.” We heard that two days ago again in Tehran, and this is, I believe, the true face of this regime or the person who controls this regime, the so-called Supreme Leader. I think that this attitude buttressed by a policy of terror worldwide supporting Hezbollah, Hamas, and all the forces that are against peace participating in a mass murder in Syria – I think such a regime must not have the world’s most dangerous weapons.
We’ve spoken about it many times, and I believe that as long as they continue their goal to enrich uranium to get nuclear weapons, the pressure should be maintained and even increased because they’re increasing enrichment. And I believe that it’s possible, with intense pressure because of the sanctions regime led in large part by the United States, to get Iran to fully dismantle its nuclear weapons program. And that’s really what we’re seeking – a full, peaceful, complete dismantling of Iran’s nuclear weapons capability, end of all enrichment, end of all centrifuges, end of the plutonium reactor.
If this is achieved, I’d welcome it. I’d be very worried of any partial deals that enable Iran to maintain those capabilities but begin to reduce sanctions because this could have – I think this could undermine the longevity and durability of the sanctions regime.
We seek peace with the Palestinians. We’ve spoken, John, many, many times about this, and because of your efforts, we launched several months ago an initiative to seek a peaceful agreement between Israel and the Palestinians. I want peace with the Palestinians; Israel wants peace with the Palestinians. We agreed three months ago on certain terms. We stand by those terms. We abide scrupulously by the terms of the agreement and the understanding on which we launched the negotiations.
I’m concerned about their progress because I see the Palestinians continuing with incitement, continuing to create artificial crises, continuing to avoid, run away from the historic decisions that are needed to make a genuine peace. I hope that your visit will help steer them back to a place where we could achieve the historical peace that we seek and that our people deserve.
And I welcome you again. Thank you.
SECRETARY KERRY: Well, Prime Minister, thank you very much. Thank you, Bibi, for again making time and being here to be part of this really critical process.
We are in the Rabin Suite here, and last night I had the privilege of visiting the site where violence took the life of a great prime minister who was moving towards peace. And I’d often heard President Clinton talk about the meaning of that loss and that moment to the loss of an opportunity for peace.
So I’m honored to be in the Rabin Suite meeting with the Prime Minister of Israel at a moment where we are in critical talks with respect to the possibilities of a long, long sought goal here in the Middle East. Israel deserves security, deserves to live in peace. The Palestinians deserve a state and deserve to live in peace, and that is what we are working towards.
This is a moment where there are many issues of great consequence on the table. As I sit here, a team is arriving in Geneva and they will be negotiating tomorrow with the P5+1 on Iran, on the very topic that Bibi just raised. Our goal is an Iran that has only a peaceful nuclear program, and indeed we must make certain – it is incumbent on us, a responsibility of the world to know with certainty that it is a peaceful program and there is no capacity to produce a weapon of mass destruction. That’s our goal. And as I have said many times, no deal is better than a bad deal. We will not make a bad deal if a deal can be made at all. And we will be pursuing that carefully.
Even as we are here, we’re also meeting in Geneva and in other efforts to try to move forward on Syria. The impact of Syria on this region cannot be overstated. Massive numbers of refugees, enormous violence, now the potential of disease – polio – a breakdown of the health system – perhaps even if we don’t succeed, the destruction of the state of Syria with all of those dangerous implications.
And then of course, finally, this issue of peace between Israel and the Palestinians. We are now three months into this negotiation. There are always difficulties, always tensions. I’m very confident of our ability to work through them. That’s why I’m here. We will spend serious time this morning. I will meet with President Abbas this afternoon. Again this evening, the Prime Minister and I and his team will share a working dinner, and we’ll work as late as it takes. And again tomorrow, I will be here in the region and working on this.
So I hope that we will continue in the good faith that brought the parties together in the first place that this can be achieved. With good faith, with a serious effort on both sides to make real compromises and hard decisions, this can be achieved. President Obama sees the road ahead, as do I, and we share a belief in this process or we wouldn’t put this time into it. So I look forward to the conversations we’ll have beginning today, and I respect everybody’s patience with us that we are not talking every day about what we’re doing. We need the space to negotiate privately, secretly, quietly, and we will continue to do that. We have six months ahead of us on the timetable we’ve set for ourselves, and I’m confident that we have the ability to make progress.
PRIME MINISTER NETANYAHU: Thank you, John.
FDA WARNS OF RISKS TO PETS TAKING PAIN MEDICATION
FROM: U.S. FOOD AND DRUG ADMINISTRATION
Pain Medicines for Pets: Know the Risks
Your 9-year-old German Shepherd is limping, and you think that arthritis may be setting in. A trip to the veterinarian proves that you’re right—it’s osteoarthritis, a degeneration of the cartilage and bone that affects joints. The veterinarian prescribes a non-steroidal anti-inflammatory drug (NSAID).
NSAIDs are a class of drugs extensively used in both human and veterinary medicine for their anti-fever, anti-inflammatory and pain-relieving properties, and they are the most commonly prescribed pain relievers for animals. Inflammation—the body’s response to irritation or injury—is characterized by redness, warmth, swelling, and pain. NSAIDs work by blocking the production of chemicals produced by the body that play a role in inflammation.
“Scientists consider NSAIDs the cornerstone of osteoarthritis therapy in dogs,” says Melanie McLean, D.V.M., a veterinarian at the Food and Drug Administration (FDA). Some NSAIDS are also used to manage pain after surgery in both dogs and cats. No NSAID has been approved for long-term use in cats.
NSAIDs carry risks as well as benefits, however, and all dogs and cats should undergo a thorough physical examination by a veterinarian—including a discussion of the pet’s medical history— before beginning NSAID therapy. McLean notes that it’s also important that you talk to your veterinarian about possible side effects, including those that could signal danger.
back to top
Risks and Side Effects
NSAIDS are associated with gastrointestinal ulcers/perforations, kidney, and liver toxicity (damage done by exposure to medications or chemicals) and must be used cautiously in animals with pre-existing kidney or liver problems.
Because most liver-associated toxicities occur during the first three weeks, it’s especially important to closely monitor the results of blood tests during the early stages of long-term NSAID treatment in dogs. Also, before starting long-term treatment with NSAIDs in dogs, blood tests should be conducted to establish baseline data and then repeated on a regular basis. McLean recommends that you talk with your veterinarian about how often this blood work should be done.
Some of the most common side effects of NSAIDS in animals reported to FDA are:
vomiting
decreased to no appetite
decreased activity level
diarrhea
While your animal is taking NSAIDs, continuously monitor the pet for these side effects as well as looking for blood in the feces, tar-like stools, yellowing of the whites of the eyes, or yellowing of the gums. If you see these, call your veterinarian immediately, McLean says. Other reported side effects include stomach and intestinal ulcers, intestinal perforation (a hole in the wall of the intestine), kidney failure, liver failure and death.
Giving two NSAIDs at the same time, or giving an NSAID with a steroid, such as prednisone, can significantly increase the risk and severity of side effects, especially gastrointestinal toxicity.
Risks associated with NSAIDs are detailed on the package inserts and the client information sheets that accompany all FDA-approved veterinary oral NSAIDs.
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Are OTC Meds for People Safe for Pets?
McLean says that it’s not unusual for pet owners to want to give their animals NSAIDs or acetaminophen (Tylenol and other brands, which are not NSAIDs) straight from their own medicine cabinets. “Many people don’t realize that a medicine that’s safe for people may not be safe for dogs or cats, or that a dose that is safe for people may not be safe for their pets,” she notes.
In fact, some over-the-counter (OTC) human pain relievers can be toxic, or even deadly, in pets. McLean suggests that you check with your veterinarian first if you want to give your animal OTC human drugs.
“You should always check with your veterinarian first before giving your animal any kind of medication, prescription or over-the-counter,” she notes. Similarly, pet owners should not assume that a medicine that is safe for one animal is necessarily safe for another.
Communication with your veterinarian is essential. Before giving your animal an NSAID:
Make sure you know what the medication is being prescribed for, how much to give and how long to give it.
Discuss possible side effects and symptoms, especially those that require an immediate call to the vet.
Tell your veterinarian if the pet has a history of gastrointestinal problems, such as stomach ulcers, or surgery on the stomach or intestines.
Tell your veterinarian if your pet is on any other medications or supplements.
This article appears on FDA's Consumer Updates page, which features the latest on all FDA-regulated products.
Pain Medicines for Pets: Know the Risks
Your 9-year-old German Shepherd is limping, and you think that arthritis may be setting in. A trip to the veterinarian proves that you’re right—it’s osteoarthritis, a degeneration of the cartilage and bone that affects joints. The veterinarian prescribes a non-steroidal anti-inflammatory drug (NSAID).
NSAIDs are a class of drugs extensively used in both human and veterinary medicine for their anti-fever, anti-inflammatory and pain-relieving properties, and they are the most commonly prescribed pain relievers for animals. Inflammation—the body’s response to irritation or injury—is characterized by redness, warmth, swelling, and pain. NSAIDs work by blocking the production of chemicals produced by the body that play a role in inflammation.
“Scientists consider NSAIDs the cornerstone of osteoarthritis therapy in dogs,” says Melanie McLean, D.V.M., a veterinarian at the Food and Drug Administration (FDA). Some NSAIDS are also used to manage pain after surgery in both dogs and cats. No NSAID has been approved for long-term use in cats.
NSAIDs carry risks as well as benefits, however, and all dogs and cats should undergo a thorough physical examination by a veterinarian—including a discussion of the pet’s medical history— before beginning NSAID therapy. McLean notes that it’s also important that you talk to your veterinarian about possible side effects, including those that could signal danger.
back to top
Risks and Side Effects
NSAIDS are associated with gastrointestinal ulcers/perforations, kidney, and liver toxicity (damage done by exposure to medications or chemicals) and must be used cautiously in animals with pre-existing kidney or liver problems.
Because most liver-associated toxicities occur during the first three weeks, it’s especially important to closely monitor the results of blood tests during the early stages of long-term NSAID treatment in dogs. Also, before starting long-term treatment with NSAIDs in dogs, blood tests should be conducted to establish baseline data and then repeated on a regular basis. McLean recommends that you talk with your veterinarian about how often this blood work should be done.
Some of the most common side effects of NSAIDS in animals reported to FDA are:
vomiting
decreased to no appetite
decreased activity level
diarrhea
While your animal is taking NSAIDs, continuously monitor the pet for these side effects as well as looking for blood in the feces, tar-like stools, yellowing of the whites of the eyes, or yellowing of the gums. If you see these, call your veterinarian immediately, McLean says. Other reported side effects include stomach and intestinal ulcers, intestinal perforation (a hole in the wall of the intestine), kidney failure, liver failure and death.
Giving two NSAIDs at the same time, or giving an NSAID with a steroid, such as prednisone, can significantly increase the risk and severity of side effects, especially gastrointestinal toxicity.
Risks associated with NSAIDs are detailed on the package inserts and the client information sheets that accompany all FDA-approved veterinary oral NSAIDs.
back to top
Are OTC Meds for People Safe for Pets?
McLean says that it’s not unusual for pet owners to want to give their animals NSAIDs or acetaminophen (Tylenol and other brands, which are not NSAIDs) straight from their own medicine cabinets. “Many people don’t realize that a medicine that’s safe for people may not be safe for dogs or cats, or that a dose that is safe for people may not be safe for their pets,” she notes.
In fact, some over-the-counter (OTC) human pain relievers can be toxic, or even deadly, in pets. McLean suggests that you check with your veterinarian first if you want to give your animal OTC human drugs.
“You should always check with your veterinarian first before giving your animal any kind of medication, prescription or over-the-counter,” she notes. Similarly, pet owners should not assume that a medicine that is safe for one animal is necessarily safe for another.
Communication with your veterinarian is essential. Before giving your animal an NSAID:
Make sure you know what the medication is being prescribed for, how much to give and how long to give it.
Discuss possible side effects and symptoms, especially those that require an immediate call to the vet.
Tell your veterinarian if the pet has a history of gastrointestinal problems, such as stomach ulcers, or surgery on the stomach or intestines.
Tell your veterinarian if your pet is on any other medications or supplements.
This article appears on FDA's Consumer Updates page, which features the latest on all FDA-regulated products.
NAVY COMMANDER, DEFENSE CONTRACTOR CHARGED IN CASH AND PROSTITUTES BRIBERY SCHEME
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, November 6, 2013
Navy Commander Charged with Accepting $100,000 Cash and Prostitutes in Widening International Bribery Scheme
Third Navy Official Charged Along with Owner of Singapore-based Glenn Defense Marine Asia
A third senior U.S. Navy official has been charged in a complaint unsealed today with accepting prostitutes, luxury travel and $100,000 cash from a foreign defense contractor in exchange for classified and internal U.S. Navy information, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Laura E. Duffy of the Southern District of California.
U.S. Navy Commander Jose Luis Sanchez, 41, was arrested in Tampa, Fla., Tuesday evening and made his initial appearance in federal court in the Middle District of Florida this morning. Also named in a complaint unsealed today is Leonard Glenn Francis, 49, of Malaysia, the CEO of Glenn Defense Marine Asia (GDMA), who was arrested on Sept. 16, 2013, in San Diego.
Two other senior Navy officials – Commander Michael Vannak Khem Misiewicz, 46, and Naval Criminal Investigative Service Supervisory Special Agent John Bertrand Beliveau II, 44 – have been charged separately in connection with bribery allegations. GDMA executive Alex Wisidagama, 40, of Singapore, has also been charged with participating in a related scheme to overbill the Navy for services provided in ports throughout Southeast Asia.
“As described in the corruption charges unsealed today, senior officials with the United States Navy abused their trusted positions as leaders in our armed forces by peddling favorable treatment -- and even classified government information -- for their personal benefit,” said Acting Assistant Attorney General Raman. “In turn, the GDMA executives who illicitly sought information and favors from those Navy officials boasted about their unlawful access to those officials and then traded on the influence that they illegally bought. Day by day, this massive Navy fraud and bribery investigation continues to widen, and as the charges announced today show, we will follow the evidence wherever it takes us.”
“According to the allegations in this case, a number of officials were willing to sacrifice their integrity and millions of taxpayer dollars for personal gratification,” said U.S. Attorney Laura Duffy. “While the overwhelming majority of the 400,000 active duty Navy personnel conduct themselves in a manner that is beyond reproach, we and our law enforcement partners at Naval Criminal Investigative Service and Defense Criminal Investigative Service continue to investigate the allegations of fraud and corruption that tarnish the stellar reputation of the U.S. Navy.”
“The arrest and criminal complaint against Commander Sanchez is the result of an ongoing investigation by the Defense Criminal Investigative Service and its law enforcement partners to identify and prosecute those individuals who would abuse their positions of trust within the Department of Defense,” said Special Agent In Charge Chris D. Hendrickson of the Office of the Inspector General, Department of Defense, Defense Criminal Investigative Service Western Field Office. “Allegations like these against Commander Sanchez can tarnish the reputation of honest and hardworking government personnel and put military personnel defending our nation around the globe at risk. The mission of DCIS is to ‘Protect America’s Warfighters’ and we will continue to relentlessly identify and investigate those individuals seeking to enrich themselves at the expense of the U.S. taxpayers.”
According to the complaint, Sanchez received bribes in return for sending sensitive U.S. Navy information to Francis, and making recommendations within the Navy to benefit Francis’s company, GDMA. GDMA is a multinational corporation and longtime government contractor based in Singapore, which provides hundreds of millions of dollars of “husbanding” services for the U.S. Navy in at least a dozen countries throughout the Pacific. Husbanding involves supplying food, water, fuel, tugboats and fenders, security, transportation, trash and liquid waste removal, and other goods and services to ships and submarines in foreign ports.
Like Sanchez, Misiewicz is accused of providing sensitive Navy information to Francis and secretly working on behalf of GDMA in exchange for prostitutes and luxury travel. GDMA, which has operating locations in Japan, Singapore, Thailand, Malaysia, Korea, India, Hong Kong, Indonesia, Australia, Philippines, Sri Lanka and the United States, allegedly overcharged the Navy and submitted bogus invoices for millions of dollars in services. Beliveau, the NCIS agent, is charged in another complaint with illegally supplying Francis with sensitive information, including reports of investigations by NCIS into possible frauds committed by GDMA in billing the U.S. Navy under its contracts. Wisidagama is charged with conspiracy to defraud the United States related to the overbilling.
According to court records, Sanchez allegedly provided Francis with internal Navy information, such as U.S. Navy ship schedules – some of which were classified – and information about husbanding issues that could affect GDMA, in order to help GDMA win and maintain Navy business. Court records allege that Sanchez regularly emailed Francis internal Navy discussions about GDMA, including legal opinions, and made recommendations in GDMA’s favor about port visits and Navy personnel assignments. In return, Francis gave Sanchez over $100,000 in cash, together with travel expenses and prostitutes. Court records allege that the conspiracy started in January 2009, when Sanchez was the Deputy Logistics Officer for the Commander of the U.S. Navy Seventh Fleet in Yokosuka, Japan, and continued when he was transferred to serve as Director of Operations for Fleet Logistics Command in Singapore, until he transferred to Florida in April 2013.
Sanchez and Francis allegedly communicated regularly via email and Facebook. Sanchez referred to Francis as “Lion King” and “Boss” in the emails, while Francis called Sanchez “brudda.”
For his part, Francis allegedly hired female escorts for Sanchez and friends on multiple occasions, on one occasion emailing one escort: “Hey Love Jose is in Manila at the DIAMOND Hotel go and see him he needs some love asap.”
According to court records, in an email exchange on Oct. 16, 2009, Sanchez and Francis allegedly discussed a trip Sanchez planned to take to Kuala Lumpur and Singapore with Navy friends he called his “Wolf Pack.” They discussed the number of rooms the “Wolf Pack” needed, and Sanchez asked Francis for pictures of prostitutes for “motivation.” Francis replied: “J, got it we will hook up after the FLAG dinner, will arrange a nest for you guys and some birds [women].” A few days later, on Oct. 19, 2009, Sanchez sent a Facebook message to Francis saying, “Yummy . . . daddy like.” In an Oct. 23, 2009, Facebook message, Sanchez asked Francis, “Where r we staying in KL [Kuala Lumpur]? No pictures to get our spirits up?”
Between Aug. 26 and 28, 2011, Francis allegedly communicated through email to the address of an escort whom Francis had previously hired for Sanchez. Francis wrote: “Hey Love, Jose is in Manila at the Diamond Hotel go and see him he needs some love asap room.” The escort responded to Francis, “Papi, I'm here jose's fon is not answering. I'm here [h]aving dri[n]ks at the lobby. Call him:: (( maybe his sleeping?” Later that day, she emailed Francis, “I'm with h[i]m already heehhe.”
Court records alleges that Francis sent an email on Oct. 20, 2011, asking Sanchez to help “swing” business his way regarding a U.S. Navy ship’s need to refuel at a port in Thailand. The Navy can use “sea cards” to purchase fuel for its ships at a price negotiated by the Defense Logistics Agency for Energy, as opposed to procuring fuel at usually higher prices from the husbanding contractor. In an email from Sanchez the next day, he told Francis: “Ask and you shall receive...we worked this out this morning…” According to court records, the USS Mustin did conduct a port visit to Laem Chabang, Thailand, during which it purchased fuel from GDMA, not via “sea cards.” As a result, the USS Mustin allegedly paid more than $1 million for fuel – more than twice what the fuel would have cost through use of the “sea card.”
The criminal complaint alleges that in an alleged Dec. 2, 2011, email discussion in which Sanchez told Francis about the status of an investigation of GDMA, Francis replied: “I have inside Intel from NCIS and read all the reports. I will show you a copy of a Classified Command File on me from NCIS ha ha.”
This ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service, the Defense Contract Audit Agency, and the Drug Enforcement Administration. The Criminal Division’s Office of International Affairs provided significant assistance in this matter, and the Royal Thai Police and the Corrupt Practices Investigation Bureau Singapore also provided law enforcement assistance. This case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California, and Catherine Votaw, Director of Procurement Fraud, and Brian Young, Trial Attorney, of the Criminal Division’s Fraud Section.
The details contained in the criminal complaints are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wednesday, November 6, 2013
Navy Commander Charged with Accepting $100,000 Cash and Prostitutes in Widening International Bribery Scheme
Third Navy Official Charged Along with Owner of Singapore-based Glenn Defense Marine Asia
A third senior U.S. Navy official has been charged in a complaint unsealed today with accepting prostitutes, luxury travel and $100,000 cash from a foreign defense contractor in exchange for classified and internal U.S. Navy information, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Laura E. Duffy of the Southern District of California.
U.S. Navy Commander Jose Luis Sanchez, 41, was arrested in Tampa, Fla., Tuesday evening and made his initial appearance in federal court in the Middle District of Florida this morning. Also named in a complaint unsealed today is Leonard Glenn Francis, 49, of Malaysia, the CEO of Glenn Defense Marine Asia (GDMA), who was arrested on Sept. 16, 2013, in San Diego.
Two other senior Navy officials – Commander Michael Vannak Khem Misiewicz, 46, and Naval Criminal Investigative Service Supervisory Special Agent John Bertrand Beliveau II, 44 – have been charged separately in connection with bribery allegations. GDMA executive Alex Wisidagama, 40, of Singapore, has also been charged with participating in a related scheme to overbill the Navy for services provided in ports throughout Southeast Asia.
“As described in the corruption charges unsealed today, senior officials with the United States Navy abused their trusted positions as leaders in our armed forces by peddling favorable treatment -- and even classified government information -- for their personal benefit,” said Acting Assistant Attorney General Raman. “In turn, the GDMA executives who illicitly sought information and favors from those Navy officials boasted about their unlawful access to those officials and then traded on the influence that they illegally bought. Day by day, this massive Navy fraud and bribery investigation continues to widen, and as the charges announced today show, we will follow the evidence wherever it takes us.”
“According to the allegations in this case, a number of officials were willing to sacrifice their integrity and millions of taxpayer dollars for personal gratification,” said U.S. Attorney Laura Duffy. “While the overwhelming majority of the 400,000 active duty Navy personnel conduct themselves in a manner that is beyond reproach, we and our law enforcement partners at Naval Criminal Investigative Service and Defense Criminal Investigative Service continue to investigate the allegations of fraud and corruption that tarnish the stellar reputation of the U.S. Navy.”
“The arrest and criminal complaint against Commander Sanchez is the result of an ongoing investigation by the Defense Criminal Investigative Service and its law enforcement partners to identify and prosecute those individuals who would abuse their positions of trust within the Department of Defense,” said Special Agent In Charge Chris D. Hendrickson of the Office of the Inspector General, Department of Defense, Defense Criminal Investigative Service Western Field Office. “Allegations like these against Commander Sanchez can tarnish the reputation of honest and hardworking government personnel and put military personnel defending our nation around the globe at risk. The mission of DCIS is to ‘Protect America’s Warfighters’ and we will continue to relentlessly identify and investigate those individuals seeking to enrich themselves at the expense of the U.S. taxpayers.”
According to the complaint, Sanchez received bribes in return for sending sensitive U.S. Navy information to Francis, and making recommendations within the Navy to benefit Francis’s company, GDMA. GDMA is a multinational corporation and longtime government contractor based in Singapore, which provides hundreds of millions of dollars of “husbanding” services for the U.S. Navy in at least a dozen countries throughout the Pacific. Husbanding involves supplying food, water, fuel, tugboats and fenders, security, transportation, trash and liquid waste removal, and other goods and services to ships and submarines in foreign ports.
Like Sanchez, Misiewicz is accused of providing sensitive Navy information to Francis and secretly working on behalf of GDMA in exchange for prostitutes and luxury travel. GDMA, which has operating locations in Japan, Singapore, Thailand, Malaysia, Korea, India, Hong Kong, Indonesia, Australia, Philippines, Sri Lanka and the United States, allegedly overcharged the Navy and submitted bogus invoices for millions of dollars in services. Beliveau, the NCIS agent, is charged in another complaint with illegally supplying Francis with sensitive information, including reports of investigations by NCIS into possible frauds committed by GDMA in billing the U.S. Navy under its contracts. Wisidagama is charged with conspiracy to defraud the United States related to the overbilling.
According to court records, Sanchez allegedly provided Francis with internal Navy information, such as U.S. Navy ship schedules – some of which were classified – and information about husbanding issues that could affect GDMA, in order to help GDMA win and maintain Navy business. Court records allege that Sanchez regularly emailed Francis internal Navy discussions about GDMA, including legal opinions, and made recommendations in GDMA’s favor about port visits and Navy personnel assignments. In return, Francis gave Sanchez over $100,000 in cash, together with travel expenses and prostitutes. Court records allege that the conspiracy started in January 2009, when Sanchez was the Deputy Logistics Officer for the Commander of the U.S. Navy Seventh Fleet in Yokosuka, Japan, and continued when he was transferred to serve as Director of Operations for Fleet Logistics Command in Singapore, until he transferred to Florida in April 2013.
Sanchez and Francis allegedly communicated regularly via email and Facebook. Sanchez referred to Francis as “Lion King” and “Boss” in the emails, while Francis called Sanchez “brudda.”
For his part, Francis allegedly hired female escorts for Sanchez and friends on multiple occasions, on one occasion emailing one escort: “Hey Love Jose is in Manila at the DIAMOND Hotel go and see him he needs some love asap.”
According to court records, in an email exchange on Oct. 16, 2009, Sanchez and Francis allegedly discussed a trip Sanchez planned to take to Kuala Lumpur and Singapore with Navy friends he called his “Wolf Pack.” They discussed the number of rooms the “Wolf Pack” needed, and Sanchez asked Francis for pictures of prostitutes for “motivation.” Francis replied: “J, got it we will hook up after the FLAG dinner, will arrange a nest for you guys and some birds [women].” A few days later, on Oct. 19, 2009, Sanchez sent a Facebook message to Francis saying, “Yummy . . . daddy like.” In an Oct. 23, 2009, Facebook message, Sanchez asked Francis, “Where r we staying in KL [Kuala Lumpur]? No pictures to get our spirits up?”
Between Aug. 26 and 28, 2011, Francis allegedly communicated through email to the address of an escort whom Francis had previously hired for Sanchez. Francis wrote: “Hey Love, Jose is in Manila at the Diamond Hotel go and see him he needs some love asap room.” The escort responded to Francis, “Papi, I'm here jose's fon is not answering. I'm here [h]aving dri[n]ks at the lobby. Call him:: (( maybe his sleeping?” Later that day, she emailed Francis, “I'm with h[i]m already heehhe.”
Court records alleges that Francis sent an email on Oct. 20, 2011, asking Sanchez to help “swing” business his way regarding a U.S. Navy ship’s need to refuel at a port in Thailand. The Navy can use “sea cards” to purchase fuel for its ships at a price negotiated by the Defense Logistics Agency for Energy, as opposed to procuring fuel at usually higher prices from the husbanding contractor. In an email from Sanchez the next day, he told Francis: “Ask and you shall receive...we worked this out this morning…” According to court records, the USS Mustin did conduct a port visit to Laem Chabang, Thailand, during which it purchased fuel from GDMA, not via “sea cards.” As a result, the USS Mustin allegedly paid more than $1 million for fuel – more than twice what the fuel would have cost through use of the “sea card.”
The criminal complaint alleges that in an alleged Dec. 2, 2011, email discussion in which Sanchez told Francis about the status of an investigation of GDMA, Francis replied: “I have inside Intel from NCIS and read all the reports. I will show you a copy of a Classified Command File on me from NCIS ha ha.”
This ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service, the Defense Contract Audit Agency, and the Drug Enforcement Administration. The Criminal Division’s Office of International Affairs provided significant assistance in this matter, and the Royal Thai Police and the Corrupt Practices Investigation Bureau Singapore also provided law enforcement assistance. This case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California, and Catherine Votaw, Director of Procurement Fraud, and Brian Young, Trial Attorney, of the Criminal Division’s Fraud Section.
The details contained in the criminal complaints are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
SECRETARY KERRY MAKES REMARKS WITH ISRAELI PRESIDENT SHIMON PERES
FROM: U.S. STATE DEPARTMENT
Remarks With Israeli President Shimon Peres Before Their Meeting
Remarks
John Kerry
Secretary of State
Jerusalem
November 6, 2013
SECRETARY KERRY: Well, thank you very much – very, very much – Mr. President, Shimon. You really are both a good friend, but equally importantly for me, you are both a mentor and an inspiration. And I think you know how much I respect your journey, your many initiatives, your incredible patience, yourself, and commitment to this effort. So I’m really honored to be both sitting with you and working in the same cause with you in this effort.
Last night, I had the privilege – when I arrived here, I was taken to that infamous site, which you know too well, where you were the night that Prime Minister Yitzhak Rabin was assassinated. And you were right there. And I know that the two of you had just finished singing a song together, Don’t Whisper a Prayer, Sing a Song of Peace in a Loud Voice.
PRESIDENT PERES: Let the Sun Shine.
SECRETARY KERRY: And it was very moving. Dalia was there, and I was very touched that members of the family came. But most importantly, I was inspired because that was 18 years ago and he dared to fight for peace then; the least we can do – any of us – in following his example and inspiration is to continue and to try to find the goal line here.
I am convinced from my conversations today with Prime Minister Netanyahu as well as with President Abbas that this is not mission impossible; this can happen. It will require both leaders to make big, historic, difficult decisions. But I am also convinced that those are decisions that are absolutely, totally in the interests of their country, Israel and their country-to-be, Palestine, and in the interests of both peoples.
As you said a moment ago, there is no alternative. There will be chaos, violence, turmoil, confrontation, in the absence of peace. You cannot live with perpetual war, particularly in the Middle East, and not find huge complications. So President Obama has asked me to put this time into this effort. He is deeply committed to this cause. We believe that over the next months, with good effort we can hopefully make some progress.
Obviously, on Iran, our eyes are wide open. We appreciate your comments and we certainly appreciate your support for exhausting the possibilities of diplomacy. And our hope is that Iran will understand that this is a simple obligation: Show the world that you are pursuing a peaceful program. It’s not that hard. Lots of other nations do it. So we will remember our friends and their interests, and we will be very thoughtful and careful as we proceed. But I’m very grateful to you, again, for your support for our diplomatic effort.
So as always, Mr. President, it is a great honor and a special moment for me to visit with you, and I look forward to our conversation.
PRESIDENT PERES: Thank you so much.
SECRETARY KERRY: Thank you, sir.
Remarks With Israeli President Shimon Peres Before Their Meeting
Remarks
John Kerry
Secretary of State
Jerusalem
November 6, 2013
SECRETARY KERRY: Well, thank you very much – very, very much – Mr. President, Shimon. You really are both a good friend, but equally importantly for me, you are both a mentor and an inspiration. And I think you know how much I respect your journey, your many initiatives, your incredible patience, yourself, and commitment to this effort. So I’m really honored to be both sitting with you and working in the same cause with you in this effort.
Last night, I had the privilege – when I arrived here, I was taken to that infamous site, which you know too well, where you were the night that Prime Minister Yitzhak Rabin was assassinated. And you were right there. And I know that the two of you had just finished singing a song together, Don’t Whisper a Prayer, Sing a Song of Peace in a Loud Voice.
PRESIDENT PERES: Let the Sun Shine.
SECRETARY KERRY: And it was very moving. Dalia was there, and I was very touched that members of the family came. But most importantly, I was inspired because that was 18 years ago and he dared to fight for peace then; the least we can do – any of us – in following his example and inspiration is to continue and to try to find the goal line here.
I am convinced from my conversations today with Prime Minister Netanyahu as well as with President Abbas that this is not mission impossible; this can happen. It will require both leaders to make big, historic, difficult decisions. But I am also convinced that those are decisions that are absolutely, totally in the interests of their country, Israel and their country-to-be, Palestine, and in the interests of both peoples.
As you said a moment ago, there is no alternative. There will be chaos, violence, turmoil, confrontation, in the absence of peace. You cannot live with perpetual war, particularly in the Middle East, and not find huge complications. So President Obama has asked me to put this time into this effort. He is deeply committed to this cause. We believe that over the next months, with good effort we can hopefully make some progress.
Obviously, on Iran, our eyes are wide open. We appreciate your comments and we certainly appreciate your support for exhausting the possibilities of diplomacy. And our hope is that Iran will understand that this is a simple obligation: Show the world that you are pursuing a peaceful program. It’s not that hard. Lots of other nations do it. So we will remember our friends and their interests, and we will be very thoughtful and careful as we proceed. But I’m very grateful to you, again, for your support for our diplomatic effort.
So as always, Mr. President, it is a great honor and a special moment for me to visit with you, and I look forward to our conversation.
PRESIDENT PERES: Thank you so much.
SECRETARY KERRY: Thank you, sir.
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