FROM: U.S. FEDERAL TRADE COMMISSION
FTC Settlements Crack Down on Payment Processing Operation that Enabled 'Google Money Tree' Scammers to Charge Consumers $15 Million in Hidden Fees
The Federal Trade Commission is continuing its crackdown on payment processing operations that enable scam artists to charge consumer accounts despite signs of ongoing fraud and unauthorized transactions. Today, the Commission announced a proposed settlement resolving allegations that a payment processor, Process America Inc., and its owners, Kim Ricketts, Keith Phillips and Craig Rickard, used unfair tactics to open and maintain scores of merchant accounts for Infusion Media Inc., which perpetrated the “Google Money Tree” work-at-home scheme. Using these merchant accounts, Infusion Media charged more than $15 million in unauthorized charges on consumers’ debit and credit card accounts.
Payment processors and Independent Sales Organizations (ISOs) enable merchants to charge consumers’ credit cards for products and services. In exchange, payment processors and ISOs get paid for each payment transaction the merchant processes.
In June 2009, the FTC charged the Infusion Media defendants with falsely claiming that consumers could earn $100,000 in six months, misrepresenting an affiliation with Google, and tricking consumers into signing up for automatic monthly charges that would continue until the consumer took affirmative steps to cancel.
The complaint against Process America alleges that the defendants knew or should have known that they were processing charges that consumers had not authorized. Evidence that consumers were being charged without their permission included plainly deceptive statements on merchant websites, notices that the merchant should be placed in Visa and MasterCard chargeback monitoring programs, and chronically excessive chargeback rates – the percentage of charges that are challenged by consumers and result in the charges being reversed. From 2008 through 2009, the defendants opened and maintained 131 merchant accounts through which the perpetrators processed more than $15 million in unauthorized charges on consumer debit and credit card accounts.
To keep Infusion Media’s merchant accounts open, the defendants allegedly engaged in tactics that were designed to evade fraud monitoring programs implemented by Visa and MasterCard. These tactics included submitting merchant applications containing false information and “load balancing” – distributing transaction volume among numerous merchant accounts. As a result, Infusion Media’s scam operated for nearly a year, and Process America continued to earn fees from its payment processing activity.
To resolve the allegations in the complaint, the individual defendants have agreed to separate permanent injunctions containing prohibitions and restrictions on their future payment processing activities:
Rickard is banned from payment processing and acting as an ISO. He is prohibited from acting as a sales agent for any client engaged in (a) unfair or deceptive business practices; (b) certain categories of high-risk activities, including negative-option marketing (where the seller interprets consumers’ silence or inaction as permission to charge them), money-making opportunities, credit card or identity theft protection, timeshare resale services, buying clubs, medical discount plans; or (c) conduct that has qualified a client for a chargeback monitoring program.
Rickard is also prohibited from acting as a sales agent for any client without first screening them for unfair or deceptive business practices. The order imposes a judgment of more than $184,000 that will be suspended based on his inability to pay. The full judgment will become due immediately if Rickard is found to have misrepresented his financial condition.
Ricketts and Phillips are prohibited from acting as payment processors, ISOs, or sales agents for any client engaged in (a) unfair or deceptive business practices; or (b) certain categories of high-risk activities certain categories of high-risk clients. They also are barred from acting as a sales agent for any client without screening and monitoring them for unfair or deceptive business practices.
In addition, Process America’s Chief Restructuring Officer has agreed to recommend and seek authority from the United States Bankruptcy Court for the Central District of California to enter into the proposed settlement with the FTC. Under the proposed settlement:
Process America is prohibited from payment processing or acting as an ISO or sales agent for any client engaged in negative-option marketing or unfair or deceptive business practices, and from failing to screen, monitor, and promptly investigate clients for such practices.
The orders prohibit all of the defendants from selling or otherwise benefitting from consumers’ personal information, and failing to properly dispose of customer information.
The Commission vote authorizing the staff to file the complaint and approving the proposed consent judgment was 4-0. The proposed settlement with Process America is subject to the United States Bankruptcy Court for the Central District of California’s approval of a Federal Rule of Bankruptcy Procedure 9019 Motion for Compromise. The proposed consent judgments with Process America and the individual defendants are also subject to court approval.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. Consent judgments have the force of law when approved and signed by the District Court judge.
Tuesday, November 19, 2013
DEPUTY AG COLE MAKES REMARKS AT MONEY LAUNDERING ENFORCEMENT CONFERENCE
FROM: U.S. JUSTICE DEPARTMENT
Deputy Attorney General James M. Cole Delivers Remarks at Money Laundering Enforcement Conference in Washington, D.C.
~ Monday, November 18, 2013
Thank you, Amy, for that kind introduction. I would also like to thank both the American Bar Association and the American Bankers Association for hosting this money laundering enforcement conference and inviting me to speak today. I am honored to be here, especially on the 25th anniversary of this important conference, which provides invaluable Bank Secrecy Act and anti-money laundering training – and underscores the vital importance of the compliance function at financial institutions.
As all of you know, banking and financial services play a vital role in our country. They spawn growth, spread risk, facilitate the creation of jobs, and generally drive our economy. Without it, much of the prosperity that allows for our freedoms and our power in the world would not exist.
But it is also susceptible to abuse. It can be used to launder the illegal proceeds of criminal and terrorist organizations. It can be used to defraud people, particularly when the transactions are complex. And the flow of dollars through our financial system is so large, that even a small fraudulent adjustment of a rate or a fee can result in billions of dollars being illegally diverted. Just as the financial industry has the power to create great good, it has the power to create great harm. The crash in 2008 was a stark reminder of this power to harm.
At the Department of Justice, we know that compliance officers within financial institutions, and the lawyers, bankers, and others who work with them, are the first line of defense against abuse within these institutions. Compliance officers are critical to protecting both a bank’s reputation and its bottom line. They’re essential when it comes to preventing criminal activity – and if that effort is not entirely successful, detecting and reporting such conduct. It is not an exaggeration to say that compliance is fundamental to protecting the security of our financial institutions and is essential to the integrity of our entire financial system.
Despite, and in some ways because of, this crucial role, I know that working in compliance is often difficult. Compliance is seldom thought of as a “money-maker” for any bank, and it may be challenging to get sufficient resources and authority to do the job well. To some, compliance may not seem to fit within the culture of a fast-moving, cutting-edge institution. And at times, certain business units or managers may seem downright hostile toward the compliance function.
We at the Department of Justice understand this reality. And we appreciate that, despite these challenges, you and your colleagues are fully committed to helping protect the integrity of your institutions and our financial system.
I want to assure you today that I am grateful for that, because you are our strongest partners in the fight against money laundering, fraud, and other financial crimes. You’re in a unique position to understand that a strong compliance culture is not only good for a bank’s overall standing and reputation in the business community, it is ultimately good for its business.
Right now, compliance within financial institutions is of particular concern to the Department, because we have recently seen cases that involved not only criminal conduct by bank customers, but – more concerning – serious criminal conduct by bank employees, including managerial employees. I’d like to speak with you today about how the Department evaluates financial institutions that violate the law, along with some of the considerations that all bankers should be mindful of as they decide how their institutions should operate.
I want to begin with the fundamental proposition that no individual or business – including a financial institution – is immune from prosecution. As I’m sure you’ve noticed, the Justice Department is taking a hard look at financial institutions in all areas – including AML, BSA, IEEPA, securities laws, tax violations, and all other forms of financial fraud. We are committed to holding banks and their employees responsible for their misconduct.
In recent years, we have proven our determination to pursue a range of challenging and complex financial crimes. For example, in one of the more brazen types of misconduct we have encountered in the financial industry, the Department and other law enforcement agencies and regulators around the world are investigating the manipulation of LIBOR and other benchmark interest rates. As you all know, LIBOR serves as the premier benchmark for short-term interest rates around the globe. Hundreds of trillions of dollars in financial derivatives, corporate debt, credit card debt, mortgages, student loans, and other financial instruments worldwide are tied to LIBOR. But LIBOR necessarily depends on the integrity of the rate setting process and the bankers who provide input into that process. The investigation revealed that traders in some banks were manipulating their bank’s LIBOR submissions in the hopes of affecting the final published LIBOR fix – thereby increasing their trading profits. Some even coordinated with traders at other banks and inter-dealer brokers to try to get several banks to submit LIBORs favorable to their trading positions. We’ve also seen that certain banks artificially lowered their LIBORs in order to appear more credit-worthy during the financial crisis.
Unfortunately, these manipulations were not isolated incidents involving a few rogue traders. In some institutions, LIBOR manipulation was pervasive. We found institutions with traders in multiple offices around the world attempting to manipulate LIBOR and other benchmark rates tied to multiple currencies, with the conduct at some banks extending over a period of five or more years. During our investigation, it became apparent that certain institutions condoned a culture of illegal behavior. And it was this culture that led the Justice Department to investigate and prosecute not just the individuals engaged in LIBOR manipulation, but the institutions that condoned it.
As a result of our enforcement actions stemming from this illegal conduct, billions of dollars have been paid in penalties, banks have admitted to serious crimes, and certain employees have been criminally charged. To date, corporate LIBOR resolutions with Rabobank, Barclays, UBS, RBS, and the brokerage firm ICAP have resulted in over $3.7 billion in penalties paid to law enforcement and regulatory agencies. Thus far, the Department has charged five individuals – two former senior traders at UBS, and three former brokers at ICAP – with crimes in connection with the LIBOR investigation. In addition, many in executive management on whose watch these crimes took place have paid a heavy price. Two CEOs have resigned, other senior managers have stepped down; executives have testified before the U.K. Parliament; bonuses have been withheld; and other compensation has been clawed back. And this may be only the beginning – because our investigation of LIBOR is far from over.
As another example, just last month, a jury in the Southern District of New York found Countrywide, Bank of America, and a senior executive liable for making bad loans and removing quality control checks. Countrywide initiated the “hustle” program to move loans quickly through the origination process and eliminate quality control steps that could slow it down. Countrywide, then Bank of America, sold the toxic mortgage loans to Fannie Mae and Freddie Mac, knowing that they did not meet the representations of quality.
We have also seen IEEPA violations involving the circumvention of sanctions against Cuba and Iran; violations of the Bank Secrecy Act; Residential Mortgage Backed Securities fraud and mortgage origination fraud; anti-trust violations; tax violations involving off-shore accounts; and civil rights violations for discriminatory lending practices.
And in one of the more recent developments, the Department's Criminal and Antitrust Divisions, along with the FBI, regulators and other law enforcement agencies around the world, are aggressively investigating possible manipulation of foreign exchange rates, involving a number of financial institutions, and you will be hearing more about these investigations in the future.
These investigations are just a few examples of how the Justice Department is pursuing corporate financial malfeasance. Financial institutions have agreed to pay about $17 billion in settlements with law enforcement and regulators in the United States this year alone. And that number will increase, as we are more committed than ever to investigating crimes committed by and within financial institutions, and to hold the perpetrators of those crimes accountable.
In every case and circumstance, our decisions about prosecuting corporate crime are guided by the Principles of Federal Prosecution of Business Organizations, which describes nine factors we consider when determining whether to charge a corporation. Those factors include, among other things: the nature and seriousness of the offense; the pervasiveness of the wrongdoing within the corporation, including the complicity of corporate management; the corporation’s history of similar misconduct, including prior criminal, civil, and regulatory actions against it; and the adequacy of a corporation’s pre-existing compliance program. We have found that these factors are often linked. How widespread the misconduct is, how high in the corporate hierarchy knowledge of it goes, and how effective a corporate compliance program is – are often related to each other, and to a corporation’s criminal history.
The notion that compliance must be firmly embedded in a corporation’s culture has been raised before, including at this conference, by many government officials. You’ve heard a great deal about the importance of “tone at the top.” Indeed, companies regularly argue during negotiations that they have taken various steps to set the right tone at the highest levels of their institutions. But based on what we have seen, we cannot help but feel that the message is not getting through often enough or clearly enough.
Despite years of admonitions by government officials that compliance must be an important part of a corporation’s culture, we continue to see significant violations of law at banks, inadequate compliance programs, and missed opportunities to prevent and detect crimes.
We are concerned that too many bank employees and supervisors value coming as close to the line as possible, or even crossing the line, as being “competitive” or “aggressive.” Too many seem to be willing to take advantage of any edge – including those of dubious legality – to make money. Too many supervisors seem to incentivize excessive risk-taking – knowing that risky products can be unloaded down the road, or anticipating that they will have left for another bank by the time such risks are played out, leaving someone else to deal with the consequences. And we are troubled that many employees believe that their supervisors, including in some cases corporate management, actually want them to behave this way. Even a single employee who thinks this way is one too many. And what we’ve been seeing and making public in a number of our recently-announced resolutions should give everyone pause, and cause all leaders and managers within financial institutions to reflect on how they can do better.
Now we’ve seen numerous news reports of senior bank management condemning the uncovered conduct after an announced resolution – calling the conduct “shameful”[1]; “contrary to our core values”[2]; “reprehensible.”[3] One CEO said that he “strongly condemn[ed]” the behavior at issue;[4] another said that learning about the misconduct made him “physically ill.”[5] While it’s easy for everyone to agree with these after-the-fact condemnations of the discovered misconduct, our collective goal must be to establish cultures within these important institutions that prevent people from engaging in this type of conduct in the first instance. Labeling certain behavior “shameful” after being caught is simply too little, too late.
This is why, when deciding whether to prosecute an institution for the actions of its employees, we look hard at the messages that bank management and supervisors are actually giving to employees in the context of their day-to-day work. We look at chats, emails, and recorded phone calls -- things that are readily available to senior management and compliance professionals. We talk to witnesses in order to determine what kinds of messages about compliance have been conveyed, or, on the flip side of that coin, what encouragement they may have received to exploit any possible edge to make money. We examine the incentives that banks provide their employees to either cross the line, or to exhibit compliant behavior. If a financial institution wants to encourage compliance – if its values are not skewed towards making money at all costs – then that message must be conveyed to employees in a meaningful and effective way if they’d like Department to view it as credible. To have an effective compliance program, we expect banks to put in place procedures to detect problems, and proactively utilize those procedures -- without waiting until the government comes knocking at their door with a subpoena.
When a problem is identified, we expect banks to undertake a thorough search – at every level, across the institution – for misconduct that may have been committed elsewhere, by similarly-situated employees or in similar business units. We expect that banks will not look only at employees in the same positions or in the same offices to determine whether they are violating the law – but that, cognizant of the ways in which violations have occurred, they will also look to other places or other types of employees where similar misconduct could take place. Whenever employees in different units, or in different office locations, or involved in different product lines, are engaging in criminal conduct at the same institution, it is well past time for that institution to think more broadly about problems that may span across the organization as a whole. In fact, we have seen this pattern in a number of financial institutions and what this tells us is that even if a specific conduct didn't directly involve senior management, that repetition speaks volumes about the culture senior management has create in the institution. A culture that breeds violations instead of a culture that encourages compliance.
The benefits of having a strong compliance program can go a long way toward mitigating institutional liability. For instance, last year, we announced the guilty plea of a former managing director of Morgan Stanley to a violation of the Foreign Corrupt Practices Act. The managing director admitted that he had conspired to evade Morgan Stanley’s internal accounting controls in order to transfer a multi-million dollar ownership interest in a Shanghai building to himself and a Chinese public official. The Department announced that it was declining to bring any enforcement action against Morgan Stanley – in large part because the bank had voluntarily disclosed the misconduct, cooperated throughout the investigation, and had constructed and maintained a system of internal controls that provided reasonable assurances that its employees were not bribing government officials. Our decision not to prosecute Morgan Stanley was founded primarily on the strength of its robust and active compliance program.
But where we do not see such exemplary conduct, we must – and we will – use all of the tools available to us to hold banks answerable for their crimes.
When we see criminal violations in multiple business units or locations, we will hold banks accountable. When we see compliance programs that are not comprehensive, or are not funded, or lack sufficient resources to be effective, we cannot give them credit. When we see repeat players – such as banks that have previously entered into non-prosecution agreements or deferred prosecution agreements with the Department, and yet come under scrutiny again for other violations of law – we will have no choice but to consider all of the possible actions at our disposal. And when we see crimes condoned by management, banks, like all corporations, will face significant consequences.
Of course, we are mindful of the consequences of our actions, and we must act responsibly. Collateral consequences, including harm to innocent employees and to the public, is one of the nine factors we carefully consider in determining what action to take. And in this regard, we work closely with our regulatory partners, both here and abroad, to ensure that we understand the specific, likely consequences for a bank when it is accused of criminal conduct or when when it is resolving criminal conduct. And we take steps to minimize those consequences, while holding the individuals and institutions that are responsible to account. But to be clear, the size of a financial institution does not mean that it gets immunity in a criminal case.
The last session in this conference is entitled “What to tell your CEO when you return to the bank: A 30-minute recap of the critical issues from the conference.” With this in mind, here is my message to you: Businesses need to create a culture of compliance. To do this, compliance programs must be real, effective, and proactive. Banks need to think more broadly about problems within their institutions, and redouble their efforts to detect and prevent them. It will never be enough merely to identify and address a particular problem once it surfaces. If we see illegal conduct at a number of the bank's business units, the old saw of "It's an isolated instance of bad actors in a single business unit. The institution as a whole should not be held accountable" won't cut it. Instead, banks must actively seek out whether there could be similar misconduct elsewhere. They must analyze what steps are necessary to reduce the risk of such misconduct occurring. And then they must take those steps. All banks should demonstrate their institutional commitments to ensuring that a clear and powerful message is being sent to their employees: that compliance matters, and if they cross the line, both they and their employer will face serious consequences. I know these can be difficult messages to deliver, but they are important messages to deliver -- messages that in the long run are good for the bank as well as good for society as a whole.
I want to thank you for the opportunity to discuss these issues with you today. I’m grateful for your hard work, your dedication to the goals we share, and your resolve to help strengthen compliance programs and instill cultures of accountability throughout the financial sector. I look forward to continuing this critical dialogue at future forums like this one.
Deputy Attorney General James M. Cole Delivers Remarks at Money Laundering Enforcement Conference in Washington, D.C.
~ Monday, November 18, 2013
Thank you, Amy, for that kind introduction. I would also like to thank both the American Bar Association and the American Bankers Association for hosting this money laundering enforcement conference and inviting me to speak today. I am honored to be here, especially on the 25th anniversary of this important conference, which provides invaluable Bank Secrecy Act and anti-money laundering training – and underscores the vital importance of the compliance function at financial institutions.
As all of you know, banking and financial services play a vital role in our country. They spawn growth, spread risk, facilitate the creation of jobs, and generally drive our economy. Without it, much of the prosperity that allows for our freedoms and our power in the world would not exist.
But it is also susceptible to abuse. It can be used to launder the illegal proceeds of criminal and terrorist organizations. It can be used to defraud people, particularly when the transactions are complex. And the flow of dollars through our financial system is so large, that even a small fraudulent adjustment of a rate or a fee can result in billions of dollars being illegally diverted. Just as the financial industry has the power to create great good, it has the power to create great harm. The crash in 2008 was a stark reminder of this power to harm.
At the Department of Justice, we know that compliance officers within financial institutions, and the lawyers, bankers, and others who work with them, are the first line of defense against abuse within these institutions. Compliance officers are critical to protecting both a bank’s reputation and its bottom line. They’re essential when it comes to preventing criminal activity – and if that effort is not entirely successful, detecting and reporting such conduct. It is not an exaggeration to say that compliance is fundamental to protecting the security of our financial institutions and is essential to the integrity of our entire financial system.
Despite, and in some ways because of, this crucial role, I know that working in compliance is often difficult. Compliance is seldom thought of as a “money-maker” for any bank, and it may be challenging to get sufficient resources and authority to do the job well. To some, compliance may not seem to fit within the culture of a fast-moving, cutting-edge institution. And at times, certain business units or managers may seem downright hostile toward the compliance function.
We at the Department of Justice understand this reality. And we appreciate that, despite these challenges, you and your colleagues are fully committed to helping protect the integrity of your institutions and our financial system.
I want to assure you today that I am grateful for that, because you are our strongest partners in the fight against money laundering, fraud, and other financial crimes. You’re in a unique position to understand that a strong compliance culture is not only good for a bank’s overall standing and reputation in the business community, it is ultimately good for its business.
Right now, compliance within financial institutions is of particular concern to the Department, because we have recently seen cases that involved not only criminal conduct by bank customers, but – more concerning – serious criminal conduct by bank employees, including managerial employees. I’d like to speak with you today about how the Department evaluates financial institutions that violate the law, along with some of the considerations that all bankers should be mindful of as they decide how their institutions should operate.
I want to begin with the fundamental proposition that no individual or business – including a financial institution – is immune from prosecution. As I’m sure you’ve noticed, the Justice Department is taking a hard look at financial institutions in all areas – including AML, BSA, IEEPA, securities laws, tax violations, and all other forms of financial fraud. We are committed to holding banks and their employees responsible for their misconduct.
In recent years, we have proven our determination to pursue a range of challenging and complex financial crimes. For example, in one of the more brazen types of misconduct we have encountered in the financial industry, the Department and other law enforcement agencies and regulators around the world are investigating the manipulation of LIBOR and other benchmark interest rates. As you all know, LIBOR serves as the premier benchmark for short-term interest rates around the globe. Hundreds of trillions of dollars in financial derivatives, corporate debt, credit card debt, mortgages, student loans, and other financial instruments worldwide are tied to LIBOR. But LIBOR necessarily depends on the integrity of the rate setting process and the bankers who provide input into that process. The investigation revealed that traders in some banks were manipulating their bank’s LIBOR submissions in the hopes of affecting the final published LIBOR fix – thereby increasing their trading profits. Some even coordinated with traders at other banks and inter-dealer brokers to try to get several banks to submit LIBORs favorable to their trading positions. We’ve also seen that certain banks artificially lowered their LIBORs in order to appear more credit-worthy during the financial crisis.
Unfortunately, these manipulations were not isolated incidents involving a few rogue traders. In some institutions, LIBOR manipulation was pervasive. We found institutions with traders in multiple offices around the world attempting to manipulate LIBOR and other benchmark rates tied to multiple currencies, with the conduct at some banks extending over a period of five or more years. During our investigation, it became apparent that certain institutions condoned a culture of illegal behavior. And it was this culture that led the Justice Department to investigate and prosecute not just the individuals engaged in LIBOR manipulation, but the institutions that condoned it.
As a result of our enforcement actions stemming from this illegal conduct, billions of dollars have been paid in penalties, banks have admitted to serious crimes, and certain employees have been criminally charged. To date, corporate LIBOR resolutions with Rabobank, Barclays, UBS, RBS, and the brokerage firm ICAP have resulted in over $3.7 billion in penalties paid to law enforcement and regulatory agencies. Thus far, the Department has charged five individuals – two former senior traders at UBS, and three former brokers at ICAP – with crimes in connection with the LIBOR investigation. In addition, many in executive management on whose watch these crimes took place have paid a heavy price. Two CEOs have resigned, other senior managers have stepped down; executives have testified before the U.K. Parliament; bonuses have been withheld; and other compensation has been clawed back. And this may be only the beginning – because our investigation of LIBOR is far from over.
As another example, just last month, a jury in the Southern District of New York found Countrywide, Bank of America, and a senior executive liable for making bad loans and removing quality control checks. Countrywide initiated the “hustle” program to move loans quickly through the origination process and eliminate quality control steps that could slow it down. Countrywide, then Bank of America, sold the toxic mortgage loans to Fannie Mae and Freddie Mac, knowing that they did not meet the representations of quality.
We have also seen IEEPA violations involving the circumvention of sanctions against Cuba and Iran; violations of the Bank Secrecy Act; Residential Mortgage Backed Securities fraud and mortgage origination fraud; anti-trust violations; tax violations involving off-shore accounts; and civil rights violations for discriminatory lending practices.
And in one of the more recent developments, the Department's Criminal and Antitrust Divisions, along with the FBI, regulators and other law enforcement agencies around the world, are aggressively investigating possible manipulation of foreign exchange rates, involving a number of financial institutions, and you will be hearing more about these investigations in the future.
These investigations are just a few examples of how the Justice Department is pursuing corporate financial malfeasance. Financial institutions have agreed to pay about $17 billion in settlements with law enforcement and regulators in the United States this year alone. And that number will increase, as we are more committed than ever to investigating crimes committed by and within financial institutions, and to hold the perpetrators of those crimes accountable.
In every case and circumstance, our decisions about prosecuting corporate crime are guided by the Principles of Federal Prosecution of Business Organizations, which describes nine factors we consider when determining whether to charge a corporation. Those factors include, among other things: the nature and seriousness of the offense; the pervasiveness of the wrongdoing within the corporation, including the complicity of corporate management; the corporation’s history of similar misconduct, including prior criminal, civil, and regulatory actions against it; and the adequacy of a corporation’s pre-existing compliance program. We have found that these factors are often linked. How widespread the misconduct is, how high in the corporate hierarchy knowledge of it goes, and how effective a corporate compliance program is – are often related to each other, and to a corporation’s criminal history.
The notion that compliance must be firmly embedded in a corporation’s culture has been raised before, including at this conference, by many government officials. You’ve heard a great deal about the importance of “tone at the top.” Indeed, companies regularly argue during negotiations that they have taken various steps to set the right tone at the highest levels of their institutions. But based on what we have seen, we cannot help but feel that the message is not getting through often enough or clearly enough.
Despite years of admonitions by government officials that compliance must be an important part of a corporation’s culture, we continue to see significant violations of law at banks, inadequate compliance programs, and missed opportunities to prevent and detect crimes.
We are concerned that too many bank employees and supervisors value coming as close to the line as possible, or even crossing the line, as being “competitive” or “aggressive.” Too many seem to be willing to take advantage of any edge – including those of dubious legality – to make money. Too many supervisors seem to incentivize excessive risk-taking – knowing that risky products can be unloaded down the road, or anticipating that they will have left for another bank by the time such risks are played out, leaving someone else to deal with the consequences. And we are troubled that many employees believe that their supervisors, including in some cases corporate management, actually want them to behave this way. Even a single employee who thinks this way is one too many. And what we’ve been seeing and making public in a number of our recently-announced resolutions should give everyone pause, and cause all leaders and managers within financial institutions to reflect on how they can do better.
Now we’ve seen numerous news reports of senior bank management condemning the uncovered conduct after an announced resolution – calling the conduct “shameful”[1]; “contrary to our core values”[2]; “reprehensible.”[3] One CEO said that he “strongly condemn[ed]” the behavior at issue;[4] another said that learning about the misconduct made him “physically ill.”[5] While it’s easy for everyone to agree with these after-the-fact condemnations of the discovered misconduct, our collective goal must be to establish cultures within these important institutions that prevent people from engaging in this type of conduct in the first instance. Labeling certain behavior “shameful” after being caught is simply too little, too late.
This is why, when deciding whether to prosecute an institution for the actions of its employees, we look hard at the messages that bank management and supervisors are actually giving to employees in the context of their day-to-day work. We look at chats, emails, and recorded phone calls -- things that are readily available to senior management and compliance professionals. We talk to witnesses in order to determine what kinds of messages about compliance have been conveyed, or, on the flip side of that coin, what encouragement they may have received to exploit any possible edge to make money. We examine the incentives that banks provide their employees to either cross the line, or to exhibit compliant behavior. If a financial institution wants to encourage compliance – if its values are not skewed towards making money at all costs – then that message must be conveyed to employees in a meaningful and effective way if they’d like Department to view it as credible. To have an effective compliance program, we expect banks to put in place procedures to detect problems, and proactively utilize those procedures -- without waiting until the government comes knocking at their door with a subpoena.
When a problem is identified, we expect banks to undertake a thorough search – at every level, across the institution – for misconduct that may have been committed elsewhere, by similarly-situated employees or in similar business units. We expect that banks will not look only at employees in the same positions or in the same offices to determine whether they are violating the law – but that, cognizant of the ways in which violations have occurred, they will also look to other places or other types of employees where similar misconduct could take place. Whenever employees in different units, or in different office locations, or involved in different product lines, are engaging in criminal conduct at the same institution, it is well past time for that institution to think more broadly about problems that may span across the organization as a whole. In fact, we have seen this pattern in a number of financial institutions and what this tells us is that even if a specific conduct didn't directly involve senior management, that repetition speaks volumes about the culture senior management has create in the institution. A culture that breeds violations instead of a culture that encourages compliance.
The benefits of having a strong compliance program can go a long way toward mitigating institutional liability. For instance, last year, we announced the guilty plea of a former managing director of Morgan Stanley to a violation of the Foreign Corrupt Practices Act. The managing director admitted that he had conspired to evade Morgan Stanley’s internal accounting controls in order to transfer a multi-million dollar ownership interest in a Shanghai building to himself and a Chinese public official. The Department announced that it was declining to bring any enforcement action against Morgan Stanley – in large part because the bank had voluntarily disclosed the misconduct, cooperated throughout the investigation, and had constructed and maintained a system of internal controls that provided reasonable assurances that its employees were not bribing government officials. Our decision not to prosecute Morgan Stanley was founded primarily on the strength of its robust and active compliance program.
But where we do not see such exemplary conduct, we must – and we will – use all of the tools available to us to hold banks answerable for their crimes.
When we see criminal violations in multiple business units or locations, we will hold banks accountable. When we see compliance programs that are not comprehensive, or are not funded, or lack sufficient resources to be effective, we cannot give them credit. When we see repeat players – such as banks that have previously entered into non-prosecution agreements or deferred prosecution agreements with the Department, and yet come under scrutiny again for other violations of law – we will have no choice but to consider all of the possible actions at our disposal. And when we see crimes condoned by management, banks, like all corporations, will face significant consequences.
Of course, we are mindful of the consequences of our actions, and we must act responsibly. Collateral consequences, including harm to innocent employees and to the public, is one of the nine factors we carefully consider in determining what action to take. And in this regard, we work closely with our regulatory partners, both here and abroad, to ensure that we understand the specific, likely consequences for a bank when it is accused of criminal conduct or when when it is resolving criminal conduct. And we take steps to minimize those consequences, while holding the individuals and institutions that are responsible to account. But to be clear, the size of a financial institution does not mean that it gets immunity in a criminal case.
The last session in this conference is entitled “What to tell your CEO when you return to the bank: A 30-minute recap of the critical issues from the conference.” With this in mind, here is my message to you: Businesses need to create a culture of compliance. To do this, compliance programs must be real, effective, and proactive. Banks need to think more broadly about problems within their institutions, and redouble their efforts to detect and prevent them. It will never be enough merely to identify and address a particular problem once it surfaces. If we see illegal conduct at a number of the bank's business units, the old saw of "It's an isolated instance of bad actors in a single business unit. The institution as a whole should not be held accountable" won't cut it. Instead, banks must actively seek out whether there could be similar misconduct elsewhere. They must analyze what steps are necessary to reduce the risk of such misconduct occurring. And then they must take those steps. All banks should demonstrate their institutional commitments to ensuring that a clear and powerful message is being sent to their employees: that compliance matters, and if they cross the line, both they and their employer will face serious consequences. I know these can be difficult messages to deliver, but they are important messages to deliver -- messages that in the long run are good for the bank as well as good for society as a whole.
I want to thank you for the opportunity to discuss these issues with you today. I’m grateful for your hard work, your dedication to the goals we share, and your resolve to help strengthen compliance programs and instill cultures of accountability throughout the financial sector. I look forward to continuing this critical dialogue at future forums like this one.
MASA EXPLAINS MARS ROVER IMAGE OF WESTERN RIM OF ENDEAVOUR CRATER
This scene shows the "Murray Ridge" portion of the western rim of Endeavour Crater on Mars. The ridge is the NASA's Mars Exploration Rover Opportunity's work area for the rover's sixth Martian winter. The ridge rises about 130 feet (40 meters) above the surrounding plain, between "Solander Point" at the north end of the ridge and "Cape Tribulation," beyond Murray Ridge to the south. This view does not show the entire ridge. The visible ridge line is about 10 meters (33 feet) above the rover's location when the component images were taken. The scene sweeps from east to south. The planar rocks in the foreground at the base of the hill are part of a layer of rocks laid down around the margins of the crater rim. At this location, Opportunity is sitting at the contact between the Meridiani Planum sandstone plains and the rocks of the Endeavour Crater rim. On the upper left, the view is directed about 22 kilometers (14 miles) across the center of Endeavour crater to the eastern rim. Opportunity landed on Mars in January 2004 and has been investigating parts of Endeavour's western rim since August 2011. The scene combines several images taken by the panoramic camera (Pancam) on NASA's Mars Exploration Rover Opportunity during the 3,446th Martian day, or sol, of the mission's work on Mars (Oct. 3, 2013) and the following three sols. On Sol 3451 (Oct. 8, 2013), Opportunity began climbing the ridge. The slope offers outcrops that contain clay minerals detected from orbit and also gives the rover a northward tilt that provides a solar-energy advantage during the Martian southern hemisphere's autumn and winter. The rover team chose to call this feature Murray Ridge in tribute to Bruce Murray (1931-2013), an influential advocate for planetary exploration who was a member of the science teams for NASA's earliest missions to Mars and later served as director of NASA's Jet Propulsion Laboratory, in Pasadena. This view is presented in approximately true color, merging exposures taken through three of the Pancam's color filters, centered on wavelengths of 753 nanometers (near-infrared), 535 nanometers (green) and 432 nanometers (violet). Image Credit: NASA/JPL-Caltech/Cornell/ASU.
Monday, November 18, 2013
U.S. DOD CONTRACTS FOR NOVEMBER 18, 2013
FROM; U.S. DEFENSE DEPARTMENT
CONTRACTS
ARMY
Sikorsky Aircraft Corp., Stratford, Conn., was awarded a $77,524,748 modification (P00113) to firm-fixed-price contract W58RGZ-12-C-0008 to exercise an option for the procurement of seven Army UH-60M Black Hawk helicopters in accordance with contract clause H-23, “Option for Increased Quantity of Helicopters.” Estimated completion date is June 30, 2015. Work location is Stratford, Conn. One bid was solicited and one received. Fiscal 2013 other procurement funds in the amount of $77,524,748 are being obligated. Army Contracting Command, Redstone Arsenal (Aviation), Ala., is the contracting agency.
McTech Corp.*, Cleveland, Ohio, was awarded a $51,784,000 firm-fixed-price contract with options for the construction of a dormitory and conference center, advanced training center. Base plus all contract option contract line item numbering systems are awarded in this contract. Estimated completion date is May 30, 2016. Work location is Harpers Ferry, W.Va. Thirteen bids were solicited, and thirteen received. Fiscal 2014 other procurement funds in the amount of $51,784,000 are being obligated at time of award. Army Corps of Engineers, Baltimore, Md., is the contracting agency (W912DR-14-C-0004).
Birdon America Inc.*, New Orleans, La., was awarded a $9,397,711 firm-fixed-price contract for hardware, test, logistics demonstration, contractor support and data deliverables for the Bridge Erection Boat. The contract also includes options for additional production units and services. Estimated completion date is Feb. 8, 2015. Work location is New Orleans, La., ($7,518,169) and Clackamas, Ore. ($1,879,542). Fiscal 2012 other procurement funds in the amount of $7,520,577 are being obligated at time of award. Bids were solicited via the Internet, with five received. Army Contracting Command - Tank and Automotive, Warren, Mich., is the contracting agency (W56HZV-14-C-0015).
Alliant Corp.*, Knoxville, Tenn., was awarded a $9,000,000 firm-fixed-price, architect/engineer indefinite-delivery/indefinite-quantity contract for environmental services for the Army Corps of Engineers, Louisville Mission Boundaries. Estimated completion date is Nov. 17, 2018. Work location and funding will be determined by each order. Army Corps of Engineers, Louisville, Ky., is the contracting agency (W912QR-14-D-0001).
NAVY
TerraGroup Corp., Allentown, Pa., is being awarded a $49,900,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the Lightweight Water Purification System (LWPS) in support of the product manager, expeditionary power systems, program manager, combat support systems. The LWPS is a lightweight, modular, highly transportable, self-contained water purification system used to produce potable water from water sources such as rivers, lakes, wells, and oceans for Marines operating in austere environments. The initial delivery order 0001 will procure LWPS and enhanced pump modules. Work will be performed in Allentown, Pa., and is expected to be completed by November 2018. Delivery order 0001 has an expected completion date of January 2015. No funds will be obligated on the base contract. Fiscal 2013 Marine Corps procurement contract funds in the amount of $14,994,714 will be obligated on delivery order 0001, and funds will not expire at the end of the current fiscal year. This contract was competitively awarded via the Federal Business Opportunities website, with three offers received. The Marine Corps Systems Command, Quantico, Va., is the contracting activity (M67854-14-D-5001).
Delta Resources Inc., Alexandria, Va., (N00189-14-D-Z003), Group W Inc.*, Fairfax, Va., N00189-14-D-Z004), Metron Scientific Solutions Inc., Reston, Va., (N00189-14-D-Z005), Serco Inc. Reston, Va. (N00189-14-D-Z006), and Systems Planning and Analysis Inc. Alexandria, Va., (N00189-14-D-Z007), are each being awarded cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contracts to provide world class modeling and simulation services in support of the Office of the Chief of Naval Operations (OPNAV) Assessment Division (N81). The services are for systems engineering, model development and research, model modification and improvements, and model testing, transition, and demonstration support. The models support OPNAV in the areas of warfighting, manpower, and fleet readiness. Work will be performed in Washington, D.C., and work is expected to be completed by Nov. 30, 2016. These five contractors shall compete for task orders under the terms and conditions of the awarded contract. The maximum value of all task orders will be $43,042,246. A minimum guarantee of $30,000 will be provided to each of the five contractors at the time of award. Fiscal 2014 operations and maintenance, Navy funds in the amount of $150,000 will be obligated at the time of award, and will expire at the end of the current fiscal year. The requirement was competitively procured through full and open competition and solicited via the Federal Business Opportunities website, with five offers received in response to this solicitation. NAVSUP Fleet Logistics Center Norfolk, Contracting Department, Philadelphia Office, Philadelphia, Pa., is the contracting activity.
Bell Boeing Joint Project Office, Amarillo, Texas, is being awarded a $9,256,869 modification to a previously awarded firm-fixed-price contract (N00019-12-C-0091) to exercise an option for the procurement of four Block A to B 50 - 69 series upgrade installs for the V-22 aircraft. Work will be performed in Philadelphia, Pa. (60 percent); Havelock, N.C. (20 percent); and Fort Worth, Texas (20 percent), and is expected to be completed in September 2015. Fiscal 2014 aircraft procurement, Navy funds in the amount of $9,256,869 will be obligated at time of 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.
DEFENSE LOGISTICS AGENCY
DMS Pharmaceutical Group Inc.**, Park Ridge, Ill., has been awarded a maximum $46,647,841 modification (P00094) exercising the second one-year option period on a one-year base contract (SPM2D0-11-D-0005) with five one-year option periods for various pharmaceutical products in support of the vendor managed inventory program which provides access to inventory to ensure material availability of medical and surgical surge, and re-supply and sustainment material. This is a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract. Location of performance is Illinois with a Nov. 20, 2014 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 warstopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
URS Federal Technical Services Inc., Germantown, Md., has been awarded a maximum $7,976,352 modification (P00056) exercising the fourth one-year option period on a one-year base contract (SP3300-10-C-0006) with four one-year option periods for material distribution services to include receipt, storage, and issuance. This is a fixed-price, incentive-firm-target, award-fee, hybrid contract. Locations of performance are Maryland and Florida with a Dec. 31, 2014 performance completion date. Using service is DLA Distribution, Pennsylvania. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Distribution, New Cumberland, Pa.
AIR FORCE
Raytheon Space and Airborne Systems, McKinney, Texas, has been awarded a $9,084,334 order (0011) under basic ordering agreement (FA8620-11-G-4050) for Multispectral Targeting System (MTS)-B High Definition/Target Location Accuracy (HD/TLA) Production Readiness which entails the delivery of an economical fabrication, assembly, inspection, test, delivery readiness and ability for the contractor to achieve full-rate production readiness for an MTS-B HD/TLA turret unit. Work will be performed at McKinney, Texas and is expected to be complete by Oct. 31, 2014. This award is the result of a sole-source acquisition. Fiscal 2012 procurement funds in the amount of $9,084,334 are being obligated at time of award. Air Force Life Cycle Management Center/WIIK, Wright Patterson Air Force Base, Ohio, is the contracting activity.
*Small Business
**Woman Owned Small Business
CONTRACTS
ARMY
Sikorsky Aircraft Corp., Stratford, Conn., was awarded a $77,524,748 modification (P00113) to firm-fixed-price contract W58RGZ-12-C-0008 to exercise an option for the procurement of seven Army UH-60M Black Hawk helicopters in accordance with contract clause H-23, “Option for Increased Quantity of Helicopters.” Estimated completion date is June 30, 2015. Work location is Stratford, Conn. One bid was solicited and one received. Fiscal 2013 other procurement funds in the amount of $77,524,748 are being obligated. Army Contracting Command, Redstone Arsenal (Aviation), Ala., is the contracting agency.
McTech Corp.*, Cleveland, Ohio, was awarded a $51,784,000 firm-fixed-price contract with options for the construction of a dormitory and conference center, advanced training center. Base plus all contract option contract line item numbering systems are awarded in this contract. Estimated completion date is May 30, 2016. Work location is Harpers Ferry, W.Va. Thirteen bids were solicited, and thirteen received. Fiscal 2014 other procurement funds in the amount of $51,784,000 are being obligated at time of award. Army Corps of Engineers, Baltimore, Md., is the contracting agency (W912DR-14-C-0004).
Birdon America Inc.*, New Orleans, La., was awarded a $9,397,711 firm-fixed-price contract for hardware, test, logistics demonstration, contractor support and data deliverables for the Bridge Erection Boat. The contract also includes options for additional production units and services. Estimated completion date is Feb. 8, 2015. Work location is New Orleans, La., ($7,518,169) and Clackamas, Ore. ($1,879,542). Fiscal 2012 other procurement funds in the amount of $7,520,577 are being obligated at time of award. Bids were solicited via the Internet, with five received. Army Contracting Command - Tank and Automotive, Warren, Mich., is the contracting agency (W56HZV-14-C-0015).
Alliant Corp.*, Knoxville, Tenn., was awarded a $9,000,000 firm-fixed-price, architect/engineer indefinite-delivery/indefinite-quantity contract for environmental services for the Army Corps of Engineers, Louisville Mission Boundaries. Estimated completion date is Nov. 17, 2018. Work location and funding will be determined by each order. Army Corps of Engineers, Louisville, Ky., is the contracting agency (W912QR-14-D-0001).
NAVY
TerraGroup Corp., Allentown, Pa., is being awarded a $49,900,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the Lightweight Water Purification System (LWPS) in support of the product manager, expeditionary power systems, program manager, combat support systems. The LWPS is a lightweight, modular, highly transportable, self-contained water purification system used to produce potable water from water sources such as rivers, lakes, wells, and oceans for Marines operating in austere environments. The initial delivery order 0001 will procure LWPS and enhanced pump modules. Work will be performed in Allentown, Pa., and is expected to be completed by November 2018. Delivery order 0001 has an expected completion date of January 2015. No funds will be obligated on the base contract. Fiscal 2013 Marine Corps procurement contract funds in the amount of $14,994,714 will be obligated on delivery order 0001, and funds will not expire at the end of the current fiscal year. This contract was competitively awarded via the Federal Business Opportunities website, with three offers received. The Marine Corps Systems Command, Quantico, Va., is the contracting activity (M67854-14-D-5001).
Delta Resources Inc., Alexandria, Va., (N00189-14-D-Z003), Group W Inc.*, Fairfax, Va., N00189-14-D-Z004), Metron Scientific Solutions Inc., Reston, Va., (N00189-14-D-Z005), Serco Inc. Reston, Va. (N00189-14-D-Z006), and Systems Planning and Analysis Inc. Alexandria, Va., (N00189-14-D-Z007), are each being awarded cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contracts to provide world class modeling and simulation services in support of the Office of the Chief of Naval Operations (OPNAV) Assessment Division (N81). The services are for systems engineering, model development and research, model modification and improvements, and model testing, transition, and demonstration support. The models support OPNAV in the areas of warfighting, manpower, and fleet readiness. Work will be performed in Washington, D.C., and work is expected to be completed by Nov. 30, 2016. These five contractors shall compete for task orders under the terms and conditions of the awarded contract. The maximum value of all task orders will be $43,042,246. A minimum guarantee of $30,000 will be provided to each of the five contractors at the time of award. Fiscal 2014 operations and maintenance, Navy funds in the amount of $150,000 will be obligated at the time of award, and will expire at the end of the current fiscal year. The requirement was competitively procured through full and open competition and solicited via the Federal Business Opportunities website, with five offers received in response to this solicitation. NAVSUP Fleet Logistics Center Norfolk, Contracting Department, Philadelphia Office, Philadelphia, Pa., is the contracting activity.
Bell Boeing Joint Project Office, Amarillo, Texas, is being awarded a $9,256,869 modification to a previously awarded firm-fixed-price contract (N00019-12-C-0091) to exercise an option for the procurement of four Block A to B 50 - 69 series upgrade installs for the V-22 aircraft. Work will be performed in Philadelphia, Pa. (60 percent); Havelock, N.C. (20 percent); and Fort Worth, Texas (20 percent), and is expected to be completed in September 2015. Fiscal 2014 aircraft procurement, Navy funds in the amount of $9,256,869 will be obligated at time of 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.
DEFENSE LOGISTICS AGENCY
DMS Pharmaceutical Group Inc.**, Park Ridge, Ill., has been awarded a maximum $46,647,841 modification (P00094) exercising the second one-year option period on a one-year base contract (SPM2D0-11-D-0005) with five one-year option periods for various pharmaceutical products in support of the vendor managed inventory program which provides access to inventory to ensure material availability of medical and surgical surge, and re-supply and sustainment material. This is a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract. Location of performance is Illinois with a Nov. 20, 2014 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 warstopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
URS Federal Technical Services Inc., Germantown, Md., has been awarded a maximum $7,976,352 modification (P00056) exercising the fourth one-year option period on a one-year base contract (SP3300-10-C-0006) with four one-year option periods for material distribution services to include receipt, storage, and issuance. This is a fixed-price, incentive-firm-target, award-fee, hybrid contract. Locations of performance are Maryland and Florida with a Dec. 31, 2014 performance completion date. Using service is DLA Distribution, Pennsylvania. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Distribution, New Cumberland, Pa.
AIR FORCE
Raytheon Space and Airborne Systems, McKinney, Texas, has been awarded a $9,084,334 order (0011) under basic ordering agreement (FA8620-11-G-4050) for Multispectral Targeting System (MTS)-B High Definition/Target Location Accuracy (HD/TLA) Production Readiness which entails the delivery of an economical fabrication, assembly, inspection, test, delivery readiness and ability for the contractor to achieve full-rate production readiness for an MTS-B HD/TLA turret unit. Work will be performed at McKinney, Texas and is expected to be complete by Oct. 31, 2014. This award is the result of a sole-source acquisition. Fiscal 2012 procurement funds in the amount of $9,084,334 are being obligated at time of award. Air Force Life Cycle Management Center/WIIK, Wright Patterson Air Force Base, Ohio, is the contracting activity.
*Small Business
**Woman Owned Small Business
NLRB GENERAL COUNSEL'S OFFICE AUTHORIZES COMPLAINTS AGAINST WALMART, NO MERIT TO OTHER CHARGES
FROM: NATIONAL LABOR RELATIONS BOARD
NLRB Office of the General Counsel Authorizes Complaints against Walmart, Also Finds No Merit to Other Charges
The National Labor Relations Board Office of the General Counsel has investigated charges alleging that Walmart violated the rights of its employees as a result of activities surrounding employee protests. The Office of the General Counsel found merit in some of the charges and no merit in others. The Office of the General Counsel has authorized complaints on alleged violations of the National Labor Relations Act. If the parties cannot reach settlements in these cases, complaints will issue.
The Office of the General Counsel found merit to alleged violations of the National Labor Relations Act against Walmart, such as the following:
During two national television news broadcasts and in statements to employees at Walmart stores in California and Texas, Walmart unlawfully threatened employees with reprisal if they engaged in strikes and protests on November 22, 2012.
Walmart stores in California, Colorado, Florida, Illinois, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, North Carolina, Ohio, Texas and Washington unlawfully threatened, disciplined, and/or terminated employees for having engaged in legally protected strikes and protests.
Walmart stores in California, Florida, Missouri and Texas unlawfully threatened, surveilled, disciplined, and/or terminated employees in anticipation of or in response to employees’ other protected concerted activities.
The Office of the General Counsel found no merit, absent appeal, to alleged violations of the National Labor Relations Act against Walmart, such as the following:
Walmart stores in Illinois and Texas did not interfere with their employees’ right to strike by telling large groups of non-employee protestors to move from Walmart’s property to public property, pursuant to a lawful Solicitation and Distribution policy, where the groups contained only a small number of employees who either did not seek to stay on Walmart’s property or were permitted to remain without non-employee protesters.
Walmart stores in California and Washington did not unlawfully change work schedules, disparately apply their policies, or otherwise coerce employees in retaliation for their exercise of statutory rights.
The National Labor Relations Act guarantees the right of private sector employees to act together to try to improve their wages and working conditions with or without a union.
NLRB Office of the General Counsel Authorizes Complaints against Walmart, Also Finds No Merit to Other Charges
The National Labor Relations Board Office of the General Counsel has investigated charges alleging that Walmart violated the rights of its employees as a result of activities surrounding employee protests. The Office of the General Counsel found merit in some of the charges and no merit in others. The Office of the General Counsel has authorized complaints on alleged violations of the National Labor Relations Act. If the parties cannot reach settlements in these cases, complaints will issue.
The Office of the General Counsel found merit to alleged violations of the National Labor Relations Act against Walmart, such as the following:
During two national television news broadcasts and in statements to employees at Walmart stores in California and Texas, Walmart unlawfully threatened employees with reprisal if they engaged in strikes and protests on November 22, 2012.
Walmart stores in California, Colorado, Florida, Illinois, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, North Carolina, Ohio, Texas and Washington unlawfully threatened, disciplined, and/or terminated employees for having engaged in legally protected strikes and protests.
Walmart stores in California, Florida, Missouri and Texas unlawfully threatened, surveilled, disciplined, and/or terminated employees in anticipation of or in response to employees’ other protected concerted activities.
The Office of the General Counsel found no merit, absent appeal, to alleged violations of the National Labor Relations Act against Walmart, such as the following:
Walmart stores in Illinois and Texas did not interfere with their employees’ right to strike by telling large groups of non-employee protestors to move from Walmart’s property to public property, pursuant to a lawful Solicitation and Distribution policy, where the groups contained only a small number of employees who either did not seek to stay on Walmart’s property or were permitted to remain without non-employee protesters.
Walmart stores in California and Washington did not unlawfully change work schedules, disparately apply their policies, or otherwise coerce employees in retaliation for their exercise of statutory rights.
The National Labor Relations Act guarantees the right of private sector employees to act together to try to improve their wages and working conditions with or without a union.
COURT ORDERS MF GLOBAL TO PAY OVER $1 BILLION TO CUSTOMERS
FROM: U.S. COMMODITY FUTURES EXCHANGE COMMISSION
Federal Court in New York Orders MF Global Inc. to Pay over $1 Billion in Restitution to Customers of MF Global Inc.
The court’s Order also imposes a $100 million penalty on MF Global
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court consent Order against Defendant MF Global Inc. (MF Global) requiring it to pay $1.212 billion in restitution to customers of MF Global to ensure customers recover their losses sustained when MF Global failed in 2011.
The consent Order, entered on November 8, 2013 by U.S. District Court Judge Victor Marrero of the U.S. District Court for the Southern District of New York, also imposes a $100 million civil monetary penalty on MF Global, to be paid after MF Global has fully paid customers and certain other creditors entitled to priority under bankruptcy law. The Trustee for MF Global obtained permission from the bankruptcy court to pay restitution in full to customers to remedy any shortfall with funds of the MF Global general estate.
The consent Order arises out of the CFTC’s complaint, filed on June 27, 2013, charging MF Global and the other Defendants with unlawful use of customer funds (see CFTC Press Release 6626-13, June 27, 2013). In the consent Order, MF Global admits to the allegations pertaining to its liability based on the acts and omissions of its employees as set forth in the consent Order and the Complaint. The CFTC’s litigation continues against the remaining defendants: MF Global Holdings Ltd., Jon S. Corzine, and Edith O’Brien.
Gretchen Lowe, Acting Director of the CFTC’s Division of Enforcement, stated, “Division staff have worked tirelessly to ensure that 100 percent restitution be awarded to satisfy customer losses. The CFTC will continue to ensure that those who violate U.S. commodity laws and regulations designed to protect customer funds will be vigorously prosecuted.”
The CFTC’s Complaint charged MF Global, a registered Futures Commission Merchant (FCM), with violating provisions of the Commodity Exchange Act and CFTC Regulations intended to protect FCM customer funds and requiring diligent supervision by registrants. Specifically, the Complaint charged that during the last week of October 2011, MF Global unlawfully used customer segregated funds to support its own proprietary operations and the operations of its affiliates. In addition to the misuse of customer funds, the Complaint alleged that MF Global (i) unlawfully failed to notify the CFTC immediately when it knew or should have known of the deficiencies in its customer accounts, (ii) made false statements in reports it filed with the CFTC that failed to show the deficits in the customer accounts, (iii) used customer funds for impermissible investments in securities that were not considered readily marketable or highly liquid in violation of CFTC regulation, and (iv) failed to diligently supervise the handling of commodity interest accounts carried by MF Global and the activities of its partners, officers, employees, and agents.
The CFTC appreciates the assistance of the U.S. Attorneys’ Offices for the Southern District of New York and the Northern District of Illinois, the Federal Bureau of Investigation, the Securities and Exchange Commission, and the Financial Conduct Authority in the United Kingdom.
The consent Order recognizes the cooperation of the Trustee for MF Global and requires the Trustee’s continued cooperation with the CFTC.
CFTC Division of Enforcement staff members responsible for this case are Sheila Marhamati, David W. Oakland, Chad Silverman, K. Brent Tomer, Douglas K. Yatter, Steven Ringer, Lenel Hickson, and Manal Sultan. Staff from the CFTC’s Division of Swap Dealer and Intermediary Oversight, Division of Clearing and Risk, and Office of Data and Technology also assisted in this matter.
Federal Court in New York Orders MF Global Inc. to Pay over $1 Billion in Restitution to Customers of MF Global Inc.
The court’s Order also imposes a $100 million penalty on MF Global
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court consent Order against Defendant MF Global Inc. (MF Global) requiring it to pay $1.212 billion in restitution to customers of MF Global to ensure customers recover their losses sustained when MF Global failed in 2011.
The consent Order, entered on November 8, 2013 by U.S. District Court Judge Victor Marrero of the U.S. District Court for the Southern District of New York, also imposes a $100 million civil monetary penalty on MF Global, to be paid after MF Global has fully paid customers and certain other creditors entitled to priority under bankruptcy law. The Trustee for MF Global obtained permission from the bankruptcy court to pay restitution in full to customers to remedy any shortfall with funds of the MF Global general estate.
The consent Order arises out of the CFTC’s complaint, filed on June 27, 2013, charging MF Global and the other Defendants with unlawful use of customer funds (see CFTC Press Release 6626-13, June 27, 2013). In the consent Order, MF Global admits to the allegations pertaining to its liability based on the acts and omissions of its employees as set forth in the consent Order and the Complaint. The CFTC’s litigation continues against the remaining defendants: MF Global Holdings Ltd., Jon S. Corzine, and Edith O’Brien.
Gretchen Lowe, Acting Director of the CFTC’s Division of Enforcement, stated, “Division staff have worked tirelessly to ensure that 100 percent restitution be awarded to satisfy customer losses. The CFTC will continue to ensure that those who violate U.S. commodity laws and regulations designed to protect customer funds will be vigorously prosecuted.”
The CFTC’s Complaint charged MF Global, a registered Futures Commission Merchant (FCM), with violating provisions of the Commodity Exchange Act and CFTC Regulations intended to protect FCM customer funds and requiring diligent supervision by registrants. Specifically, the Complaint charged that during the last week of October 2011, MF Global unlawfully used customer segregated funds to support its own proprietary operations and the operations of its affiliates. In addition to the misuse of customer funds, the Complaint alleged that MF Global (i) unlawfully failed to notify the CFTC immediately when it knew or should have known of the deficiencies in its customer accounts, (ii) made false statements in reports it filed with the CFTC that failed to show the deficits in the customer accounts, (iii) used customer funds for impermissible investments in securities that were not considered readily marketable or highly liquid in violation of CFTC regulation, and (iv) failed to diligently supervise the handling of commodity interest accounts carried by MF Global and the activities of its partners, officers, employees, and agents.
The CFTC appreciates the assistance of the U.S. Attorneys’ Offices for the Southern District of New York and the Northern District of Illinois, the Federal Bureau of Investigation, the Securities and Exchange Commission, and the Financial Conduct Authority in the United Kingdom.
The consent Order recognizes the cooperation of the Trustee for MF Global and requires the Trustee’s continued cooperation with the CFTC.
CFTC Division of Enforcement staff members responsible for this case are Sheila Marhamati, David W. Oakland, Chad Silverman, K. Brent Tomer, Douglas K. Yatter, Steven Ringer, Lenel Hickson, and Manal Sultan. Staff from the CFTC’s Division of Swap Dealer and Intermediary Oversight, Division of Clearing and Risk, and Office of Data and Technology also assisted in this matter.
IS TASMANIAN DEVIL HEADED FOR EXTINCTION?
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| Tasmanian Devil. Credit: Wikimedia Commons. |
Tasmanian devils: Will rare infectious cancer lead to their extinction?
Taz, was his name, the Tasmanian devil of Warner Bros. cartoon fame. A scrappy omnivore who ate anything and everything, he spun in a vortex and bit through everything in his path.
The devil was short-lived, however, making television appearances for a few years in the late 1950s and early 1960s before disappearing from view. In 1991, Taz got a reprieve: His own show, "Taz-Mania," which ran for three seasons. Then he was gone for good.
From the screen to the wild
Tasmanian devils in the wild are no less imperiled. Carnivorous marsupials, they're found only on the Australian island of Tasmania. With a stocky build, black fur, keen sense of smell and ferocity when feeding, "real-life" Tasmanian devils and their cartoon namesake have much in common.
The size of small dogs, Tasmanian devils became the largest carnivorous marsupials in the world following the 1936 extinction of thylacines (Thylacinus cynocephalus), known as Tasmanian tigers or Tasmanian wolves. Thylacines lived on continental Australia, Tasmania and New Guinea.
Will the fate of Sarcophilus harrisii, the scientific name for the Tasmanian devil, mimic that of the thylacine?
"If a way isn't found to stop devil facial tumor disease, or DFTD," says disease ecologist Andrew Storfer of Washington State University, "models predict that Tasmanian devils could be extinct in as few as10 years."
And vanishing with them, valuable clues to diseases in other species, including humans.
DFTD is an aggressive, non-viral, transmissible parasitic cancer that is 100 percent lethal, says Storfer. "In short," he says, "it's bad news."
Can we save the Tasmanian devil?
To study DFTD and find ways of understanding its emergence and spread, Storfer has received a grant from the National Science Foundation (NSF)- National Institutes of Health (NIH) Ecology and Evolution of Infectious Diseases (EEID) Program.
Collaborators include Paul Hohenlohe of the University of Idaho, Hamish McCallum of Griffith University, Menna Jones of the University of Tasmania and Elizabeth Murchison of the Wellcome Trust Sanger Institute.
The NSF-NIH EEID Program supports efforts to understand the ecological and biological mechanisms that link environmental changes and the emergence and transmission of infectious diseases.
Projects funded through the program allow scientists to study how large-scale environmental events--such as habitat destruction, invasions of nonnative species and pollution--alter the risks of emergence of viral, parasitic and bacterial diseases.
Storfer's research may lead to new insights about the spread of flu in humans. It also may help scientists understand other infectious diseases in animals such as bats, and how certain cancers progress.
"This study provides an excellent test-bed for understanding the spread of infectious diseases," says Sam Scheiner, EEID program director at NSF. "The results may help us control the spread of seasonal flu in people, West Nile virus in birds and white-nose syndrome in bats, among many other diseases."
Tasmanian devils: extinction on the horizon
The first official case of devil tumor facial disease was reported in 1996. Since then, Tasmania's devil population has declined by 70 percent. Findings reported in 2010 show that 80 percent of the remaining devils are affected.
"Tasmanian devils that live in high-density populations may suffer drastic reductions a few years after emergence of the disease," Storfer says.
DFTD has been slowly moving from east to west across Tasmania for the last 17 years; it's now approaching the west coast. "Soon there may be no known uninfected devils," says Storfer.
The disease is spread when Tasmanian devils bite each other's heads while fighting over food, during territorial interactions and when they spar during mating season.
Devils that contract the disease develop lesions around their mouths that become cancerous tumors. The tumors may spread from their faces to their entire bodies. Devils almost always die within six to nine months.
Devil facial tumor disease likely began in what are called Schwann cells. Schwann cells are found in the peripheral nervous system; they produce myelin and other proteins essential for the functions of nerve cells.
In response to DFTD, Tasmanian devils have changed their reproductive habits. Before the outbreak, females started breeding at two years old. Now they breed by the end of their first year--and often die of DFTD soon afterward.
There's a ray of light, however, in this dark day for devils. Some devils have been found with partial immunity to the disease. Breeding in captivity is underway to try to save the species.
"Emerging infectious diseases like DFTD are one of the great scientific challenges of the 21st century," says Storfer. "Infectious diseases are now the sixth leading cause of species extinctions."
Answers in Tasmanian devils' genomes?
Extensive research by Storfer and others, including thousands of samples taken before and after devil die-offs, has given scientists a rare opportunity to study the genomic interactions of an infectious disease and its host--the devils--across an entire species' range.
"The research will tell us about the genetic basis of Tasmanian devils' susceptibility to the tumors," says Storfer, "providing environmental managers with information about which particular devils would be best suited for captive breeding programs."
Knowledge of the rates and direction of past tumor spread will enable scientists to uncover the likely locations of future infections.
Although only a few infectious cancers have been documented, Storfer says, "this disease shares properties with human cancers.
"Our research, especially genetic studies, may reveal the underlying reasons why DTFD is so prevalent and can hold on for so long in a population, perhaps providing information on cancer recurrence in humans."
To test predictions of the course of the epidemic, he and colleagues plan to meld what they call "devil contact network modeling" with genomic studies of Tasmanian devil populations expected to become infected.
"The answers will help in developing responses to this and other disease outbreaks in Tasmanian devils--and potentially in people," says Storfer.
Taz may be gone, but, says Storfer, "Hopefully it's not too late for the real Tasmanian devil."
-- Cheryl Dybas, NSF
U.S. MILITARY CONTINUES PROVIDING RELIEF TO VICTIMS OF TYPHOON HAIYAN
FROM: U.S. DEFENSE DEPARTMENT
WASHINGTON, Nov. 17, 2013 – U.S. military assets have as of early today delivered approximately 655,000 pounds of relief supplies provided by the U.S. Agency for International Development since the start of Operation Damayan, the relief effort in support of the government of the Philippines in the wake of Typhoon Haiyan/Yolanda.
The duration and extent of U.S. military support will depend on the request from the government of the Philippines. American forces will be present as long as they are needed, but no longer than required.
In addition to the delivery of relief supplies, U.S. military aircraft have to date logged nearly 650 flight hours, moved nearly 1,200 relief workers into Tacloban and have airlifted nearly 4,900 survivors from typhoon-impacted areas.
Over the last 24 hours, more than 66,000 pounds of food, water and shelter items have been delivered to Tacloban, Borongan and Guiuan -- some of the hardest-hit regions.
At the request of the government of the Philippines, international military forces in the region are also ramping up their support. Australia, India, Japan, Malaysia, Singapore, South Korea and Taiwan are currently providing aircraft and/or medical personnel to assist in the relief operations. Similar military support from Brunei, Great Britain, New Zealand and Thailand is also expected.
U.S. Marine Corps Forces, Pacific is coordinating efforts by Marine forces in the U.S. Pacific Command area of responsibility and working with the Philippine government to rapidly deliver humanitarian assistance and disaster relief to the areas the Philippine government deems most in need. The U.S.-Philippines visiting forces agreement helped facilitate the speed of this response.
U.S. Marine Corps Forces, Pacific’s ability to coordinate with all available Defense Department resources in Pacom’s area of responsibility to respond rapidly to the Philippine government’s request reaffirms the value of the close cooperation the two nations share.
The people of the Philippines are responding to the typhoon’s impact with characteristic resilience, aided by the effective measures their government took to help prepare them for the storm.
In the immediate aftermath of the typhoon, the 3rd Marine Expeditionary Brigade deployed a humanitarian assistance survey team to conduct assessments of impacted areas.
USDA REMINDS FARMERS OF AFFECTS OF SEQUESTRATION ON FARM PROGRAMS
FROM: U.S. DEPARTMENT OF AGRICULTURE
FSA Advises Producers to Anticipate Payment Reductions Due to Mandated Sequester
WASHINGTON, Nov. 15, 2013 ---USDA’s Farm Service Agency (FSA) is reminding farmers and ranchers who participate in FSA programs to plan accordingly in FY2014 for automatic spending reductions known as sequestration. The Budget Control Act of 2011 (BCA) mandates that federal agencies implement automatic, annual reductions to discretionary and mandatory spending limits. For mandatory programs, the sequestration rate for FY2014 is 7.2%. Accordingly, FSA is implementing sequestration for the following programs:
Dairy Indemnity Payment Program; Marketing Assistance Loans; Loan Deficiency Payments; Sugar Loans; Noninsured Crop Disaster Assistance Program; Tobacco Transition Payment Program; 2013 Direct and Counter-Cyclical Payments; 2013 Average Crop Revenue Election Program; 2011 and 2012 Supplemental Revenue Assistance Program; Storage, handling; and Economic Adjustment Assistance for Upland Cotton.
Conservation Reserve Program payments are specifically exempt by statute from sequestration, thus these payments will not be reduced.
“These sequester percentages reflect current law estimates; however with the continuing budget uncertainty, Congress still may adjust the exact percentage reduction. Today’s announcement intends to help producers plan for the impact of sequestration cuts in FY2014,” said FSA Administrator Juan M. Garcia. “At this time, FSA is required to implement the sequester reductions. Due to the expiration of the Farm Bill on September 30, FSA does not have the flexibility to cover these payment reductions in the same manner as in FY13. FSA will provide notification as early as practicable on the specific payment reductions. ”
FSA Advises Producers to Anticipate Payment Reductions Due to Mandated Sequester
LIBRARY OF CONGRESS & WGBH BOSTON WILL PRESERVE COLLECTION OF PUBLIC RADIO AND TV CONTENT
FROM: U.S. LIBRARY OF CONGRESS
Corporation for Public Broadcasting Awards Library of Congress and WGBH with Stewardship of the American Archive of Public Broadcasting
An unprecedented and historic collection of American public radio and television content - dating back through the 1950s - will be permanently preserved and made available to the public through a collaboration between the Library of Congress and WGBH Boston as the American Archive of Public Broadcasting.
In 2007, the Corporation for Public Broadcasting (CPB) initiated an inventory of public media content from contributing stations, resulting in 2.5 million records representing complete programs, raw footage, unedited interviews, recorded speeches, and live music sessions. Now, 40,000 hours of that content is being digitized and is slated for transfer and long-term preservation through a collaboration between the Library of Congress and WGBH, with funding support from CPB.
"The American Archive of Public Broadcasting is a national asset that will preserve thousands of hours of iconic, at-risk, local, and national content," said Pat Harrison, CPB president and CEO. "I want to congratulate and thank the public media stations, and the local communities they represent, who provided content for the Archive. For the past six years, CPB has created, defined and managed this initiative and we are very pleased to announce that it has finally found a permanent home with the Library of Congress and WGBH."
The American Archive of Public Broadcasting includes local, regional, and national history, news, public affairs, civic affairs, religion, education, environmental issues, music, art, literature, filmmaking, dance, and poetry from the mid-20th century through the first decade of the 21st century.
"The American people have made a huge investment in public radio and television over many decades," said James H. Billington, Librarian of Congress. "This collaboration will ensure that this rich and creative cultural history will be saved and made available to future generations."
"We are very excited and proud to become the home for the American Archive, and to be part of keeping history alive for audiences and for the public," said Jon Abbott, president and CEO of WGBH. "We couldn’t have a better partner than the Library of Congress in making these treasures available, and we’re grateful to the Corporation for Public Broadcasting for their leadership and support of this effort."
The collection includes interviews and performances by local and national luminaries from a broad variety of professions and cultural genres. Just a few examples of the items in the collection include: Iowa Public Television’s interview with Olympic runner Jesse Owens, recorded in 1979, the last year of his life; KUSC’s (Los Angeles) broadcast of commentary by George Lucas on the original three Star Wars movies; Twin Cities Public Television’s recording of a 1960 interview with presidential candidates John F. Kennedy and Minnesota Senator Hubert Humphrey; and WGBH’s 1967 interviews with then-California Governor Ronald Reagan.
Regional coverage and programming abounds, such as an award-winning series of 48 programs on the history of Southwest Florida from WGCU in Fort Myers; WCTE’s (Tennessee) news magazine which highlights the Upper Cumberland, a region that most Americans have never seen; KUED’s (Salt Lake City) films from the 1950s of performances by the famed organist of the Mormon Tabernacle; a 1929 film reel of a hike on Mount Katahdin, Maine’s highest peak, discovered by Maine Public Broadcasting; and WEDU’s (Tampa) collection of several dozen Aeronautics & Space Report programs from NASA.
"This is an important step in CPB’s commitment to preserve and make available to the American public the tremendous amount of high quality programming and content produced by public media television and radio stations over the past several decades and in the future," said Patty Cahill, Chairman of the CPB Board of Directors. "We are pleased that the Library of Congress and WGBH will continue this culturally and historically significant project on behalf of the public media system and the American people."
A national advisory panel, comprised of leaders from public media, the arts, academia, technology, and business recommended to the CPB Board of Directors the collaborative team of the Library of Congress and WGBH to lead this historic project. The panel was instrumental in guiding the selection process, providing questions, observations, and recommendations regarding core elements of the Archive’s future success.
American Archive National Advisory Panel members include: Bruce Ramer, partner at Gang, Tyre, Ramer & Brown, a Los Angeles entertainment and media law firm, and member of the CPB board of directors; Henry Becton, vice chair and former president of the board of trustees of the WGBH Educational Foundation; Ken Burns, award winning filmmaker; John W. Carlin, former Governor of Kansas and archivist of the United States, and currently visiting professor, executive-in-residence in the School of Leadership Studies at Kansas State University; Dr. Jeffrey Cole, founder and director of the Center for the Digital Future at the University of Southern California’s Annenberg School for Communication and Journalism; Dr. Henry Louis Gates, Jr., professor, author, documentary filmmaker and director of the W. E. B. Du Bois Institute for African and African American Research; Deanna Marcum, managing director at Ithaka S+R, a not-for-profit research and consulting organization, and former associate librarian of Congress; John Ptak, film producer and former talent agent at CAA, William Morris and ICM, and member of the National Film Preservation Board and the National Film Preservation Foundation; Cokie Roberts, commentator for ABC News and contributor to NPR’s Morning Edition; Dr. Stephen D. Smith, executive director of the University of Southern California Shoah Foundation – The Institute for Visual History and Education; Hon. Margaret Spellings, senior advisor to the U.S. Chamber of Commerce, president of the U.S. Chamber of Commerce Foundation, and former U.S. Secretary of Education from 2005 to 2009; Sir Howard Stringer, chairman of the board of directors, Sony Corporation; and Jesús Salvador Treviño, writer, director, and producer.
"The American Archive of Public Broadcasting continues to be a priority for CPB – to preserve decades of high quality local and national public media content," said Bruce Ramer, who, in addition to being a member of the American Archive National Advisory Panel, is also chairman of the USC Institute on Entertainment Law and Business. "I want to thank the panel for their leadership which helped to ensure the preservation and permanent availability of public broadcasting’s rich legacy."
Responsibilities for governance and long-term strategy development will be shared by the Library of Congress and WGBH, including expansion of the digital archive by acquiring additional content, and providing on-site access to the material at both WGBH in Boston and at the Library of Congress in Washington, DC. They will work with AudioVisual Preservation Services to develop and manage the website/content management system for the digitization of the 40,000 hours of content, and with Crawford Media Services to do the digitization for the stations.
More information is available at the American Archive blog.
About The Library of Congress
The Library of Congress, the nation’s oldest federal cultural institution, is the world’s preeminent reservoir of knowledge, providing unparalleled collections and integrated resources to Congress and the American people. The Library holds the largest collection of audio visual recordings in the world and has been collecting and preserving historically, culturally and aesthetically significant recordings in all genres for nearly 120 years. Many of the Library’s rich resources and treasures may also be accessed through the Library’s website, www.loc.gov.
About WGBH
WGBH Boston is America’s preeminent public broadcaster and the largest producer of PBS content for TV and the Web, including Frontline, Nova, American Experience, Masterpiece, Antiques Roadshow, Arthur, Curious George and more than a dozen other award-winning prime-time, lifestyle, and children’s series, reaching nearly 75 million people each month. WGBH also is a major supplier of programming for public radio, and oversees Public Radio International (PRI). A leader in educational multimedia for the classroom, WGBH supplies content to PBS LearningMedia. WGBH also is a pioneer in technologies and services that make media accessible to those with hearing or visual impairments. Find more information at www.wgbh.org.
About CPB
The Corporation for Public Broadcasting (CPB), a private, nonprofit corporation created by Congress in 1967, is the steward of the federal government's investment in public broadcasting. It helps support the operations of more than 1,400 locally-owned and -operated public television and radio stations nationwide, and is the largest single source of funding for research, technology, and program development for public radio, television and related online services. Visit us at www.cpb.org.
Corporation for Public Broadcasting Awards Library of Congress and WGBH with Stewardship of the American Archive of Public Broadcasting
An unprecedented and historic collection of American public radio and television content - dating back through the 1950s - will be permanently preserved and made available to the public through a collaboration between the Library of Congress and WGBH Boston as the American Archive of Public Broadcasting.
In 2007, the Corporation for Public Broadcasting (CPB) initiated an inventory of public media content from contributing stations, resulting in 2.5 million records representing complete programs, raw footage, unedited interviews, recorded speeches, and live music sessions. Now, 40,000 hours of that content is being digitized and is slated for transfer and long-term preservation through a collaboration between the Library of Congress and WGBH, with funding support from CPB.
"The American Archive of Public Broadcasting is a national asset that will preserve thousands of hours of iconic, at-risk, local, and national content," said Pat Harrison, CPB president and CEO. "I want to congratulate and thank the public media stations, and the local communities they represent, who provided content for the Archive. For the past six years, CPB has created, defined and managed this initiative and we are very pleased to announce that it has finally found a permanent home with the Library of Congress and WGBH."
The American Archive of Public Broadcasting includes local, regional, and national history, news, public affairs, civic affairs, religion, education, environmental issues, music, art, literature, filmmaking, dance, and poetry from the mid-20th century through the first decade of the 21st century.
"The American people have made a huge investment in public radio and television over many decades," said James H. Billington, Librarian of Congress. "This collaboration will ensure that this rich and creative cultural history will be saved and made available to future generations."
"We are very excited and proud to become the home for the American Archive, and to be part of keeping history alive for audiences and for the public," said Jon Abbott, president and CEO of WGBH. "We couldn’t have a better partner than the Library of Congress in making these treasures available, and we’re grateful to the Corporation for Public Broadcasting for their leadership and support of this effort."
The collection includes interviews and performances by local and national luminaries from a broad variety of professions and cultural genres. Just a few examples of the items in the collection include: Iowa Public Television’s interview with Olympic runner Jesse Owens, recorded in 1979, the last year of his life; KUSC’s (Los Angeles) broadcast of commentary by George Lucas on the original three Star Wars movies; Twin Cities Public Television’s recording of a 1960 interview with presidential candidates John F. Kennedy and Minnesota Senator Hubert Humphrey; and WGBH’s 1967 interviews with then-California Governor Ronald Reagan.
Regional coverage and programming abounds, such as an award-winning series of 48 programs on the history of Southwest Florida from WGCU in Fort Myers; WCTE’s (Tennessee) news magazine which highlights the Upper Cumberland, a region that most Americans have never seen; KUED’s (Salt Lake City) films from the 1950s of performances by the famed organist of the Mormon Tabernacle; a 1929 film reel of a hike on Mount Katahdin, Maine’s highest peak, discovered by Maine Public Broadcasting; and WEDU’s (Tampa) collection of several dozen Aeronautics & Space Report programs from NASA.
"This is an important step in CPB’s commitment to preserve and make available to the American public the tremendous amount of high quality programming and content produced by public media television and radio stations over the past several decades and in the future," said Patty Cahill, Chairman of the CPB Board of Directors. "We are pleased that the Library of Congress and WGBH will continue this culturally and historically significant project on behalf of the public media system and the American people."
A national advisory panel, comprised of leaders from public media, the arts, academia, technology, and business recommended to the CPB Board of Directors the collaborative team of the Library of Congress and WGBH to lead this historic project. The panel was instrumental in guiding the selection process, providing questions, observations, and recommendations regarding core elements of the Archive’s future success.
American Archive National Advisory Panel members include: Bruce Ramer, partner at Gang, Tyre, Ramer & Brown, a Los Angeles entertainment and media law firm, and member of the CPB board of directors; Henry Becton, vice chair and former president of the board of trustees of the WGBH Educational Foundation; Ken Burns, award winning filmmaker; John W. Carlin, former Governor of Kansas and archivist of the United States, and currently visiting professor, executive-in-residence in the School of Leadership Studies at Kansas State University; Dr. Jeffrey Cole, founder and director of the Center for the Digital Future at the University of Southern California’s Annenberg School for Communication and Journalism; Dr. Henry Louis Gates, Jr., professor, author, documentary filmmaker and director of the W. E. B. Du Bois Institute for African and African American Research; Deanna Marcum, managing director at Ithaka S+R, a not-for-profit research and consulting organization, and former associate librarian of Congress; John Ptak, film producer and former talent agent at CAA, William Morris and ICM, and member of the National Film Preservation Board and the National Film Preservation Foundation; Cokie Roberts, commentator for ABC News and contributor to NPR’s Morning Edition; Dr. Stephen D. Smith, executive director of the University of Southern California Shoah Foundation – The Institute for Visual History and Education; Hon. Margaret Spellings, senior advisor to the U.S. Chamber of Commerce, president of the U.S. Chamber of Commerce Foundation, and former U.S. Secretary of Education from 2005 to 2009; Sir Howard Stringer, chairman of the board of directors, Sony Corporation; and Jesús Salvador Treviño, writer, director, and producer.
"The American Archive of Public Broadcasting continues to be a priority for CPB – to preserve decades of high quality local and national public media content," said Bruce Ramer, who, in addition to being a member of the American Archive National Advisory Panel, is also chairman of the USC Institute on Entertainment Law and Business. "I want to thank the panel for their leadership which helped to ensure the preservation and permanent availability of public broadcasting’s rich legacy."
Responsibilities for governance and long-term strategy development will be shared by the Library of Congress and WGBH, including expansion of the digital archive by acquiring additional content, and providing on-site access to the material at both WGBH in Boston and at the Library of Congress in Washington, DC. They will work with AudioVisual Preservation Services to develop and manage the website/content management system for the digitization of the 40,000 hours of content, and with Crawford Media Services to do the digitization for the stations.
More information is available at the American Archive blog.
About The Library of Congress
The Library of Congress, the nation’s oldest federal cultural institution, is the world’s preeminent reservoir of knowledge, providing unparalleled collections and integrated resources to Congress and the American people. The Library holds the largest collection of audio visual recordings in the world and has been collecting and preserving historically, culturally and aesthetically significant recordings in all genres for nearly 120 years. Many of the Library’s rich resources and treasures may also be accessed through the Library’s website, www.loc.gov.
About WGBH
WGBH Boston is America’s preeminent public broadcaster and the largest producer of PBS content for TV and the Web, including Frontline, Nova, American Experience, Masterpiece, Antiques Roadshow, Arthur, Curious George and more than a dozen other award-winning prime-time, lifestyle, and children’s series, reaching nearly 75 million people each month. WGBH also is a major supplier of programming for public radio, and oversees Public Radio International (PRI). A leader in educational multimedia for the classroom, WGBH supplies content to PBS LearningMedia. WGBH also is a pioneer in technologies and services that make media accessible to those with hearing or visual impairments. Find more information at www.wgbh.org.
About CPB
The Corporation for Public Broadcasting (CPB), a private, nonprofit corporation created by Congress in 1967, is the steward of the federal government's investment in public broadcasting. It helps support the operations of more than 1,400 locally-owned and -operated public television and radio stations nationwide, and is the largest single source of funding for research, technology, and program development for public radio, television and related online services. Visit us at www.cpb.org.
HUSBAND AND WIFE CONVICTED OF FILING LIENS AGAINST IRS COMMISSIONER AND FILING FALSE TAX REFUND CLAIMS
FROM: U.S. JUSTICE DEPARTMENT
Friday, November 15, 2013
Northern California Couple Indicted for Filing False Claims for Refunds and for Filing Liens Against the IRS Commissioner
Robert Eldon Robertson and his wife Esther Lynne Robertson of Manteca, Calif., were indicted on charges of filing two false claims for federal tax refunds, filing liens against the former Internal Revenue Service (IRS) commissioner and impeding the administration of federal tax laws, the Justice Department and IRS announced today. The indictment was unsealed yesterday in the Eastern District of California.
According to the indictment, the Robertsons filed two false federal income tax returns claiming large refunds based on fictitious Form 1099-OID withholdings: one for tax year 2005 claiming a $90,538 refund and one for 2007 claiming a $313,248 refund. The indictment also charges each of the Robertsons with filing a false lien against the property of the IRS commissioner for “a sum certain amount determined as triple the stated amount of any purported determination of tax liability.” According to the indictment, the Robertsons also sent a bogus “international promissory note” with a request that the IRS apply the purported $800,000 face value of the note towards their outstanding tax liabilities. The IRS also received a letter containing credit card bills belonging to the Robertsons asking the IRS to pay nearly $20,000 worth of their credit card debt.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the Robertsons face a maximum of five years in prison for each false claim count, three years for the obstruction count and 10 years for the count of filing false liens.
The case was investigated by both IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration. It is being prosecuted by Trial Attorney Ignacio Perez de la Cruz of the department’s Tax Division and Assistant U.S. Attorney Matthew Segal in the Eastern District of California.
Friday, November 15, 2013
Northern California Couple Indicted for Filing False Claims for Refunds and for Filing Liens Against the IRS Commissioner
Robert Eldon Robertson and his wife Esther Lynne Robertson of Manteca, Calif., were indicted on charges of filing two false claims for federal tax refunds, filing liens against the former Internal Revenue Service (IRS) commissioner and impeding the administration of federal tax laws, the Justice Department and IRS announced today. The indictment was unsealed yesterday in the Eastern District of California.
According to the indictment, the Robertsons filed two false federal income tax returns claiming large refunds based on fictitious Form 1099-OID withholdings: one for tax year 2005 claiming a $90,538 refund and one for 2007 claiming a $313,248 refund. The indictment also charges each of the Robertsons with filing a false lien against the property of the IRS commissioner for “a sum certain amount determined as triple the stated amount of any purported determination of tax liability.” According to the indictment, the Robertsons also sent a bogus “international promissory note” with a request that the IRS apply the purported $800,000 face value of the note towards their outstanding tax liabilities. The IRS also received a letter containing credit card bills belonging to the Robertsons asking the IRS to pay nearly $20,000 worth of their credit card debt.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the Robertsons face a maximum of five years in prison for each false claim count, three years for the obstruction count and 10 years for the count of filing false liens.
The case was investigated by both IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration. It is being prosecuted by Trial Attorney Ignacio Perez de la Cruz of the department’s Tax Division and Assistant U.S. Attorney Matthew Segal in the Eastern District of California.
RATTLESNAKE TRAFFICKERS CONVICTED FOR VIOLATION OF LACEY ACT
FROM: U.S. JUSTICE DEPARTMENT
Friday, November 15, 2013
Two Florida Men Convicted in Philadelphia of Conspiring and Trafficking in Protected Reptiles
A federal jury today found Robroy MacInnes, 54, of Inverness, Fla., and Robert Keszey, 47, of Bushnell, Fla., guilty of conspiracy to traffic in state and federally protected reptiles. MacInnes also was convicted of trafficking in protected timber rattlesnakes in violation of the Lacey Act.
Between 2007 and 2008, the defendants, who own the reptile wholesaler Glades Herp Farm Inc., collected protected snakes from the wild in Pennsylvania and New Jersey, purchased protected eastern timber rattlesnakes that had been illegally collected from the wild in violation of New York law, and transported federally threatened eastern indigo snakes from Florida to Pennsylvania. MacInnes also violated the Lacey Act by purchasing illegal eastern timber rattlesnakes and having the snakes transported from Pennsylvania to Florida. The evidence at trial showed that the protected species were destined for sale at reptile shows in Europe, where a single timber rattlesnake can sell for up to $800. Snakes that were not sold in Europe were sold through the defendants’ business in the United States.
“These defendants broke numerous wildlife laws seeking to profit from an illegal trade in threatened species,” said Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division. “The Justice Department is committed to enforcing wildlife laws like the Endangered Species Act and the Lacey Act that protect our environment and these threatened species from a destructive and dangerous black market trade.”
The eastern timber rattlesnake is a species of venomous pit viper native to the eastern United States, and is listed as threatened in New York. It is also illegal to possess an eastern timber rattlesnake without a permit in Pennsylvania. The eastern indigo snake, the longest native North American snake species, is listed as threatened by both Florida and federal law.
The Lacey Act, one of the oldest statutes in the United States, prohibits interstate trafficking in wildlife known to be illegally obtained. The maximum penalty for conspiring to commit offenses and for violations of the Lacey Act is up to five years in prison and a $250,000 fine for each violation.
This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from the New York Department of Environmental Conservation. The case was prosecuted by Trial Attorney Patrick M. Duggan and paralegal Ashleigh Nye of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorney Mary Kay Costello of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Friday, November 15, 2013
Two Florida Men Convicted in Philadelphia of Conspiring and Trafficking in Protected Reptiles
A federal jury today found Robroy MacInnes, 54, of Inverness, Fla., and Robert Keszey, 47, of Bushnell, Fla., guilty of conspiracy to traffic in state and federally protected reptiles. MacInnes also was convicted of trafficking in protected timber rattlesnakes in violation of the Lacey Act.
Between 2007 and 2008, the defendants, who own the reptile wholesaler Glades Herp Farm Inc., collected protected snakes from the wild in Pennsylvania and New Jersey, purchased protected eastern timber rattlesnakes that had been illegally collected from the wild in violation of New York law, and transported federally threatened eastern indigo snakes from Florida to Pennsylvania. MacInnes also violated the Lacey Act by purchasing illegal eastern timber rattlesnakes and having the snakes transported from Pennsylvania to Florida. The evidence at trial showed that the protected species were destined for sale at reptile shows in Europe, where a single timber rattlesnake can sell for up to $800. Snakes that were not sold in Europe were sold through the defendants’ business in the United States.
“These defendants broke numerous wildlife laws seeking to profit from an illegal trade in threatened species,” said Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division. “The Justice Department is committed to enforcing wildlife laws like the Endangered Species Act and the Lacey Act that protect our environment and these threatened species from a destructive and dangerous black market trade.”
The eastern timber rattlesnake is a species of venomous pit viper native to the eastern United States, and is listed as threatened in New York. It is also illegal to possess an eastern timber rattlesnake without a permit in Pennsylvania. The eastern indigo snake, the longest native North American snake species, is listed as threatened by both Florida and federal law.
The Lacey Act, one of the oldest statutes in the United States, prohibits interstate trafficking in wildlife known to be illegally obtained. The maximum penalty for conspiring to commit offenses and for violations of the Lacey Act is up to five years in prison and a $250,000 fine for each violation.
This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from the New York Department of Environmental Conservation. The case was prosecuted by Trial Attorney Patrick M. Duggan and paralegal Ashleigh Nye of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorney Mary Kay Costello of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Sunday, November 17, 2013
GSA LOOKING FOR SITES FOR NEW FBI HEADQUARTERS
FROM: GENERAL SERVICES ADMINISTRATION
GSA Seeks Sites for FBI Headquarters
November 15, 2013
WASHINGTON -- Today, the U.S. General Services Administration (GSA) announced that it is taking the next step in the process of finding a new headquarters for the Federal Bureau of Investigation. GSA seeks to identify sites that would be acceptable to include in a future competitive procurement that will provide the best deal for taxpayers. GSA has issued an advertisement for Expressions of Interest to landowners requesting that they offer a parcel of land to accommodate the next FBI headquarters in the District of Columbia or the surrounding counties in Maryland and Virginia. GSA will accept site proposals beginning now through December 17, 2013.
Today’s advertisement is the next phase in an overall procurement strategy that is expected to conclude sometime in 2015. GSA will include one or more of the sites in a future procurement that would allow GSA to exchange the existing J. Edgar Hoover Building on Pennsylvania Ave. in Washington, D.C. for a new facility that can accommodate the FBI’s headquarters operations and allow it to consolidate into one location.
The advertisement asks interested parties to provide information on sites that they would donate to the government or sites that they would sell to the government. Additionally, GSA will consider sites currently in the government inventory. After GSA receives responses, it will begin evaluating the submitted sites, along with those in the federal inventory, to identify sites that meet or exceed GSA’s and FBI’s requirements. GSA anticipates that selected sites will be specified in a future request for development proposals for a new FBI Headquarters.
There is significant interest from the private sector and local governments in developing a new FBI headquarters facility in the National Capital Region. Last March, GSA received 38 responses from the development community about exchanging the FBI’s current headquarters in the J. Edgar Hoover building, which no longer meets the FBI needs for a new, consolidated headquarters. GSA is using the input it is receiving to outline its future procurement.
GSA Seeks Sites for FBI Headquarters
November 15, 2013
WASHINGTON -- Today, the U.S. General Services Administration (GSA) announced that it is taking the next step in the process of finding a new headquarters for the Federal Bureau of Investigation. GSA seeks to identify sites that would be acceptable to include in a future competitive procurement that will provide the best deal for taxpayers. GSA has issued an advertisement for Expressions of Interest to landowners requesting that they offer a parcel of land to accommodate the next FBI headquarters in the District of Columbia or the surrounding counties in Maryland and Virginia. GSA will accept site proposals beginning now through December 17, 2013.
Today’s advertisement is the next phase in an overall procurement strategy that is expected to conclude sometime in 2015. GSA will include one or more of the sites in a future procurement that would allow GSA to exchange the existing J. Edgar Hoover Building on Pennsylvania Ave. in Washington, D.C. for a new facility that can accommodate the FBI’s headquarters operations and allow it to consolidate into one location.
The advertisement asks interested parties to provide information on sites that they would donate to the government or sites that they would sell to the government. Additionally, GSA will consider sites currently in the government inventory. After GSA receives responses, it will begin evaluating the submitted sites, along with those in the federal inventory, to identify sites that meet or exceed GSA’s and FBI’s requirements. GSA anticipates that selected sites will be specified in a future request for development proposals for a new FBI Headquarters.
There is significant interest from the private sector and local governments in developing a new FBI headquarters facility in the National Capital Region. Last March, GSA received 38 responses from the development community about exchanging the FBI’s current headquarters in the J. Edgar Hoover building, which no longer meets the FBI needs for a new, consolidated headquarters. GSA is using the input it is receiving to outline its future procurement.
NSF AND THE SUN'S MYSTERIOUS CORONA
FROM: NATIONAL SCIENCE FOUNDATION
It's hot...super hot
Finding answers around the sun
November 12, 2013
Astronomers have collectively puzzled over two working theories for a conundrum involving the sun that have been discussed in Astronomy 101 classes for decades: Why is the sun's corona (the atmosphere beyond the sun) so hot? The sun's core is a searing 15 million Kelvins, but by the time that heat reaches the sun's surface, it cools off to a mere 6,000 degrees, only to again heat up to more than a million degrees in the corona.
Two National Science Foundation- (NSF) funded researchers at Columbia University recently published what they believe is the solution, and it has to do with magnetic waves known as Alfven waves. The researchers present their findings today at the Hinode 7 Science Meeting in Japan.
Michael Hahn and Daniel Wolf Savin analyzed data from the Extreme Ultraviolet Imaging Spectrometer on the Japanese satellite Hinode over a polar coronal hole and found that, much like the vibrations of a plucked guitar string, the solar magnetic field lines also pulsate, and in doing so transfer energy from below the sun's surface into the corona. Hinode's spectrometer captured the waves penetrating the upper solar atmosphere.
"This is a fundamentally important finding," said Ilia Roussev, NSF program director for solar terrestrial research. "This issue is the holy grail of solar physics. If this allows us to better understand the mechanics, then it has tremendous consequences."
The coronal heating problem has been debated for 70 years with researchers essentially falling into two camps: one involving the Alfven waves and the other attributing the heating "problem" to magnetic field loops that stretch across the solar surface with the potential to "snap" and release energy. The important key to Hahn and Savin's findings comes with Hinode satellite observations. The team has been studying Hinode data since 2009 with funding since 2011 from the NSF Solar, Heliospheric and INterplanetary Environment (SHINE) Program.
"This is the big, unanswered question in solar physics, and nearly everyone in the field is somehow working on trying to solve it," Savin said. "We really had no idea where the research would lead us, but we were hoping to at least be able to add another piece to the puzzle. We did not expect it to be such a big piece."
In fact, technology had to catch up to theory to make this happen. The Hinode satellite, a Japanese mission with the Extreme Ultraviolet Imaging Spectrometer developed as collaboration between Japan, the United Kingdom and the United States, offered unique, previously unattainable observations.
"Until that time, we could only see the sun in white light; we didn't have UV observations. But, now we do," Roussev noted. With the UV capability, researchers can glean information on chemical makeup and physical conditions near the sun's surface that until the mid-1990s could not be observed. Hinode has been studying the sun since 2006.
"Some in the community have responded enthusiastically to our findings; others more cautiously, but that is to be expected," Savin said. "Others, including us, have pointed out that there may not be just one solution to the problem as there are different structures on the Sun. Our work is relevant for coronal holes, which are the source of the fast solar wind. A different mechanism or mechanisms may be operating in the quiet sun."
The "in's and out's" of Earth's atmosphere
While the sun is almost 93 million miles from earth, the electrons and protons from the sun move toward Earth via a wind of particles. This solar wind has impacts on the Earth's atmosphere in locations where satellites provide important imagery of our planet and allow technology like GPS and cell phones to operate.
"Ultimately, this kind of research does provide new perspective on space weather, which is known to affect the Earth" said Hahn, who was awarded a 2012 Blavatnik Award for Young Scientists by the New York Academy of Sciences for his work on the coronal heating problem. "Understanding these fundamental processes improves our understanding, of not just the solar corona, but also of space weather."
Specifically, the high temperature of the sun's corona causes it to emit X-rays that can affect the conditions of Earth's atmosphere where satellites roam. "The sun is the biggest X-ray machine in the solar system," Roussev explained. "The upper layers of earth's atmosphere absorb those X-rays, but what they do is heat that upper atmosphere. It expands almost like the Earth breathing in and out. This has a direct impact on the lifetime of satellites. The more the atmosphere expands, the slower the satellites move. That shortens their lifetime as they slow to a point where they re-enter the atmosphere."
Puzzle solved. Now what?
The interesting thing about potentially solving a puzzle like this one is that the solution raises more questions.
"What causes Alfven waves to be damped at such surprisingly low heights in the corona?" Savin asked, who is now proposing a series of experiments in plasma physics to simulate conditions in a coronal hole and explore possible mechanisms that would cause the waves to lose their energy. "We are also analyzing Hinode observations of other solar structures in the corona to see what role waves play in heating those structures."
Other researchers will likely explore replication, especially involving observations elsewhere in the corona, rather than just polar coronal holes.
"People have been claiming to solve the coronal heating problem for decades," Hahn said. "We are reasonably confident in our results and wait now for others to reproduce our findings."
-- Ivy F. Kupec
Investigators
Michael Hahn
Daniel Wolf Savin
Related Institutions/Organizations
Columbia University
Locations
Columbia University , New York
NSF SAYS MECHANICAL ENGINEERING TEAM DESIGNING CAR WITH INDEPENDENT MOTOR FOR EACH WHEEL
FROM: NATIONAL SCIENCE FOUNDATION
An unconventional car: no engine, no transmission, no differential
This car has no engine, no transmission and no differential. It weighs half as much as a conventional car. Each of its four wheels has its own built-in electric battery-powered motor, meaning the car has the ability to make sharp turns and change direction very quickly.
Without an exceptional traction and motion control system, however, this car would be quite difficult to drive, providing a driving experience vastly different from anything else on the road, and almost certainly more dangerous.
This is where Junmin Wang's expertise comes in.
Wang, assistant professor of mechanical engineering at Ohio State University, and his team are designing algorithms for the vehicle's onboard computer that will calculate and ensure motion control to keep the car stable and operating smoothly. The system, which receives and analyzes input data 100 times per second from the steering wheel, the gas pedal and brake, works out how each wheel should respond.
"Without it, the car is quite difficult to drive because the wheels are not coordinated," says the National Science Foundation (NSF)-funded researcher, who also directs the university's vehicle systems and control laboratory. "You feel like you are driving something uncontrollable. You could flip over, or travel along an undesired path, or cause a crash. But when the 'controller' is active, based on feedback loops, the vehicle motion can be controlled, just as the driver expects."
With a safe and reliable control system, this new electric vehicle ultimately should make the perfect in-city car. It's efficient and maneuverable--and has no emissions. Because it is all electric, "you can use wind power or solar power, and contribute toward reducing our dependency on fossil oils," Wang says.
The computer calculates exactly how much torque the car needs for each of its four wheels. Moreover, because each wheel is independent, "one wheel can be doing the braking, while another is doing the driving," Wang says. "The computer gets signals from the driver from the steering wheel and pedal positions, then calculates the desired speed, or vehicle motion, based on a mathematical model."
Wang's work on the car began in 2009 with a grant from the Office of Naval Research Young Investigator Program. In February 2012 he received an NSF Faculty Early Career Development (CAREER) award, which supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education, and the integration of education and research within the context of the mission of their organization. He is receiving $400,000 over five years.
As part of the grant's educational component, Wang's lab hosted a summer program for high school students where, among other things, the teenagers disassembled and reassembled radio-controlled toy electric cars to increase their understanding of their mechanics.
Additionally, students from the Columbus Metro School, a public STEM (science, technology, engineering, math) high school open to students from around the state, participated in research internships on the experimental car in Wang's lab.
Wang's research also receives funding from the Honda-Ohio State University Partnership Program and the Ohio State University Transportation Research Endowment Program.
The experimental car weighs only about 800 kg., or a little more than 1,750 pounds, which makes it energy efficient. The researchers retrofitted a commercially available utility terrain vehicle chassis and removed the engine, transmission and differential, then added a 7.5 kW electric motor to each wheel and a 15 kW lithium-ion battery pack. A single electrical cable connects the motors to a central computer. This type of car design, where each wheel has its own individual motor, is known as "four wheel independently actuated."
The researchers tested the car and its controller on normal road conditions at the Transportation Research Center in East Liberty, Ohio, an independent automotive site for vehicle crash, emissions and durability testing. On roads with good conditions, the car followed a driver's "desired" path within four inches.
To see how it performs on slippery roads, they brought the car to an empty west campus parking lot on a snowy day. The car maneuvered with an accuracy of up to eight inches, and the vehicle traction and motion control system prevented "fishtailing" through independent control of the left and right sides of the car.
The researchers, including doctoral student Rongrong Wang, described the car's ability to follow a specific trajectory in a paper published in January 2013 in the journal Control Engineering Practice.
Wang can't yet estimate the mileage for a single charge, since the car only has been driven during experimental testing. But he says the car provides "about 8 to 10 hours of driving on a single charge, although not continuously."
Wang thinks it will take another five- to- 10 years before the car is ready for commercial use. The researchers still must fine-tune the computer algorithms and add more safety features. Wang says it is difficult to compare their test results to a conventional car, since the latter's maneuverability is limited by the transmission and differential systems that link the wheels together mechanically.
Nevertheless, he predicts that, ultimately, the research will produce an electric car that will be clean, fuel-efficient and "handle better than typical conventional cars," he says.
-- Marlene Cimons, National Science Foundation
An unconventional car: no engine, no transmission, no differential
This car has no engine, no transmission and no differential. It weighs half as much as a conventional car. Each of its four wheels has its own built-in electric battery-powered motor, meaning the car has the ability to make sharp turns and change direction very quickly.
Without an exceptional traction and motion control system, however, this car would be quite difficult to drive, providing a driving experience vastly different from anything else on the road, and almost certainly more dangerous.
This is where Junmin Wang's expertise comes in.
Wang, assistant professor of mechanical engineering at Ohio State University, and his team are designing algorithms for the vehicle's onboard computer that will calculate and ensure motion control to keep the car stable and operating smoothly. The system, which receives and analyzes input data 100 times per second from the steering wheel, the gas pedal and brake, works out how each wheel should respond.
"Without it, the car is quite difficult to drive because the wheels are not coordinated," says the National Science Foundation (NSF)-funded researcher, who also directs the university's vehicle systems and control laboratory. "You feel like you are driving something uncontrollable. You could flip over, or travel along an undesired path, or cause a crash. But when the 'controller' is active, based on feedback loops, the vehicle motion can be controlled, just as the driver expects."
With a safe and reliable control system, this new electric vehicle ultimately should make the perfect in-city car. It's efficient and maneuverable--and has no emissions. Because it is all electric, "you can use wind power or solar power, and contribute toward reducing our dependency on fossil oils," Wang says.
The computer calculates exactly how much torque the car needs for each of its four wheels. Moreover, because each wheel is independent, "one wheel can be doing the braking, while another is doing the driving," Wang says. "The computer gets signals from the driver from the steering wheel and pedal positions, then calculates the desired speed, or vehicle motion, based on a mathematical model."
Wang's work on the car began in 2009 with a grant from the Office of Naval Research Young Investigator Program. In February 2012 he received an NSF Faculty Early Career Development (CAREER) award, which supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education, and the integration of education and research within the context of the mission of their organization. He is receiving $400,000 over five years.
As part of the grant's educational component, Wang's lab hosted a summer program for high school students where, among other things, the teenagers disassembled and reassembled radio-controlled toy electric cars to increase their understanding of their mechanics.
Additionally, students from the Columbus Metro School, a public STEM (science, technology, engineering, math) high school open to students from around the state, participated in research internships on the experimental car in Wang's lab.
Wang's research also receives funding from the Honda-Ohio State University Partnership Program and the Ohio State University Transportation Research Endowment Program.
The experimental car weighs only about 800 kg., or a little more than 1,750 pounds, which makes it energy efficient. The researchers retrofitted a commercially available utility terrain vehicle chassis and removed the engine, transmission and differential, then added a 7.5 kW electric motor to each wheel and a 15 kW lithium-ion battery pack. A single electrical cable connects the motors to a central computer. This type of car design, where each wheel has its own individual motor, is known as "four wheel independently actuated."
The researchers tested the car and its controller on normal road conditions at the Transportation Research Center in East Liberty, Ohio, an independent automotive site for vehicle crash, emissions and durability testing. On roads with good conditions, the car followed a driver's "desired" path within four inches.
To see how it performs on slippery roads, they brought the car to an empty west campus parking lot on a snowy day. The car maneuvered with an accuracy of up to eight inches, and the vehicle traction and motion control system prevented "fishtailing" through independent control of the left and right sides of the car.
The researchers, including doctoral student Rongrong Wang, described the car's ability to follow a specific trajectory in a paper published in January 2013 in the journal Control Engineering Practice.
Wang can't yet estimate the mileage for a single charge, since the car only has been driven during experimental testing. But he says the car provides "about 8 to 10 hours of driving on a single charge, although not continuously."
Wang thinks it will take another five- to- 10 years before the car is ready for commercial use. The researchers still must fine-tune the computer algorithms and add more safety features. Wang says it is difficult to compare their test results to a conventional car, since the latter's maneuverability is limited by the transmission and differential systems that link the wheels together mechanically.
Nevertheless, he predicts that, ultimately, the research will produce an electric car that will be clean, fuel-efficient and "handle better than typical conventional cars," he says.
-- Marlene Cimons, National Science Foundation
U.S. STATE DEPARTMENT ANNOUNCES SWITZERLAND HOSTED INITIAL PLANNING MEETING FOR THE GLOBAL FUND
FROM: U.S. STATE DEPARTMENT
Initial Planning Meeting for the Global Fund for Community Engagement and Resilience
Media Note
Office of the Spokesperson
Washington, DC
November 15, 2013
The Government of Switzerland hosted the initial planning meeting to develop the Global Fund for Community Engagement and Resilience, November 14–15. The Fund will mobilize public and private sector resources to support local, community-based efforts to counter violent extremism.
This two-day event, held in Lucerne, was facilitated by Carol Bellamy, the former Executive Director of UNICEF and former Chair of the Global Partnership for Education. Some 40 officials and experts from around the world met to begin discussions on the mandate, organizational architecture, and legal foundation of the Fund. Discussions are expected to continue over the coming months with a view to having the Fund become operational by mid-2014.
The Fund was announced by U.S. Secretary of State John Kerry and Turkish Foreign Minister Ahmet Davutoglu at a Global Counterterrorism Forum Ministerial meeting in New York on September 27. Once established, the Fund is expected to provide and monitor the implementation of grants to local, grass-roots organizations for community-based projects on education, vocational training, civic engagement, media, and women’s advocacy that target those individuals or groups most vulnerable to radicalization or recruitment by violent extremists.
Initial Planning Meeting for the Global Fund for Community Engagement and Resilience
Media Note
Office of the Spokesperson
Washington, DC
November 15, 2013
The Government of Switzerland hosted the initial planning meeting to develop the Global Fund for Community Engagement and Resilience, November 14–15. The Fund will mobilize public and private sector resources to support local, community-based efforts to counter violent extremism.
This two-day event, held in Lucerne, was facilitated by Carol Bellamy, the former Executive Director of UNICEF and former Chair of the Global Partnership for Education. Some 40 officials and experts from around the world met to begin discussions on the mandate, organizational architecture, and legal foundation of the Fund. Discussions are expected to continue over the coming months with a view to having the Fund become operational by mid-2014.
The Fund was announced by U.S. Secretary of State John Kerry and Turkish Foreign Minister Ahmet Davutoglu at a Global Counterterrorism Forum Ministerial meeting in New York on September 27. Once established, the Fund is expected to provide and monitor the implementation of grants to local, grass-roots organizations for community-based projects on education, vocational training, civic engagement, media, and women’s advocacy that target those individuals or groups most vulnerable to radicalization or recruitment by violent extremists.
PHILLY DEMOLITION CONTRACTOR CITED FOR VIOLATIONS RELATED TO BUILDING COLLAPSE AND FATALITIES
FROM: U.S. LABOR DEPARTMENT
Philadelphia demolition contractors cited by US Labor Department's OSHA
for willful and serious safety violations following fatal June building collapse
Contractors removed support for wall that collapsed onto the Salvation Army store
PHILADELPHIA — The U.S. Department of Labor's Occupational Safety and Health Administration today cited Griffin Campbell, doing business as Campbell Construction, and Sean Benschop, doing business as S&R Contracting, for safety violations, including three willful per-instance violations, following the June 5, 2013, building collapse that killed six people and injured 14. Campbell Construction was demolishing the four-story building known as the "Hoagie City" building adjacent to the Salvation Army Thrift Store, located at the 2100 block of Market Street in Philadelphia. S&R Contracting was operating the building's interior walls and floors.
"Campbell Construction and S&R Contracting sacrificed worker and public safety through the deliberate neglect of demolition safety fundamentals," said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. "This tragic incident could and should have been prevented."
OSHA found several violations of OSHA's demolition construction standards. On the three days leading up to the collapse, Campbell Construction removed critical, structural supports for the wall that collapsed. The OSHA demolition standards prohibit the removal of lateral support walls more than one story high, leaving the wall unsupported. Campbell Construction also removed parts of the lower floors prior to the removal of the upper floors, again, contrary to the OSHA standards. Campbell Construction also failed to provide an engineering survey as promised. As a result, Campbell Construction has been cited for three willful, egregious violations for each day that it left the wall without sufficient lateral support, and two willful violations alleging the failures to demolish the building from the top down and to have an engineering survey by a competent person on the possibility of collapse prior to starting the demolition. S&R Contracting has been cited for one willful violation. A willful violation is one committed with intentional, knowing or voluntary disregard for the law's requirements, or with plain indifference to worker safety and health.
Additionally, Campbell Construction was cited for serious violations for the company's failures to provide: employees with hard hats when there was a possible risk of head injury; fall protection for employees working on surfaces at least six feet high; training on fall hazards; and adequate personal fall arrest systems. Campbell Construction also failed to inspect all stairs periodically and to maintain them in a clean, safe condition. S&R Contracting was cited for two serious violations for failing to protect employees from falling through holes and to provide fall hazard training. A serious violation occurs when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known if an accident were to occur.
OSHA proposed penalties of $313,000 for Campbell Construction and $84,000 for S&R Contracting. Both companies have 15 business days from receipt of the citations to comply, request an informal conference with the OSHA area director in Philadelphia, or contest the citations and proposed penalties before the independent Occupational Safety and Health Review Commission.
To ask questions; obtain compliance assistance; file a complaint; or report workplace hospitalizations, fatalities or situations posing imminent danger to workers, the public should call OSHA's toll-free hotline at 800-321-OSHA (6742) or the agency's Philadelphia Area Office at 215-597-4955.
Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA's role is to ensure these conditions for America's working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit http://www.osha.gov.
Philadelphia demolition contractors cited by US Labor Department's OSHA
for willful and serious safety violations following fatal June building collapse
Contractors removed support for wall that collapsed onto the Salvation Army store
PHILADELPHIA — The U.S. Department of Labor's Occupational Safety and Health Administration today cited Griffin Campbell, doing business as Campbell Construction, and Sean Benschop, doing business as S&R Contracting, for safety violations, including three willful per-instance violations, following the June 5, 2013, building collapse that killed six people and injured 14. Campbell Construction was demolishing the four-story building known as the "Hoagie City" building adjacent to the Salvation Army Thrift Store, located at the 2100 block of Market Street in Philadelphia. S&R Contracting was operating the building's interior walls and floors.
"Campbell Construction and S&R Contracting sacrificed worker and public safety through the deliberate neglect of demolition safety fundamentals," said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. "This tragic incident could and should have been prevented."
OSHA found several violations of OSHA's demolition construction standards. On the three days leading up to the collapse, Campbell Construction removed critical, structural supports for the wall that collapsed. The OSHA demolition standards prohibit the removal of lateral support walls more than one story high, leaving the wall unsupported. Campbell Construction also removed parts of the lower floors prior to the removal of the upper floors, again, contrary to the OSHA standards. Campbell Construction also failed to provide an engineering survey as promised. As a result, Campbell Construction has been cited for three willful, egregious violations for each day that it left the wall without sufficient lateral support, and two willful violations alleging the failures to demolish the building from the top down and to have an engineering survey by a competent person on the possibility of collapse prior to starting the demolition. S&R Contracting has been cited for one willful violation. A willful violation is one committed with intentional, knowing or voluntary disregard for the law's requirements, or with plain indifference to worker safety and health.
Additionally, Campbell Construction was cited for serious violations for the company's failures to provide: employees with hard hats when there was a possible risk of head injury; fall protection for employees working on surfaces at least six feet high; training on fall hazards; and adequate personal fall arrest systems. Campbell Construction also failed to inspect all stairs periodically and to maintain them in a clean, safe condition. S&R Contracting was cited for two serious violations for failing to protect employees from falling through holes and to provide fall hazard training. A serious violation occurs when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known if an accident were to occur.
OSHA proposed penalties of $313,000 for Campbell Construction and $84,000 for S&R Contracting. Both companies have 15 business days from receipt of the citations to comply, request an informal conference with the OSHA area director in Philadelphia, or contest the citations and proposed penalties before the independent Occupational Safety and Health Review Commission.
To ask questions; obtain compliance assistance; file a complaint; or report workplace hospitalizations, fatalities or situations posing imminent danger to workers, the public should call OSHA's toll-free hotline at 800-321-OSHA (6742) or the agency's Philadelphia Area Office at 215-597-4955.
Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA's role is to ensure these conditions for America's working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit http://www.osha.gov.
SBA SIGNS ALLIANCE WITH NONPROFIT SOCIAL INVESTMENT BANK
FROM: U.S. SMALL BUSINESS ADMINISTRATION
SBA Signs Strategic Alliance with Operation HOPE to Foster Entrepreneurship and Economic Empowerment
WASHINGTON ─ The U.S. Small Business Administration and Operation HOPE, Inc., signed a Strategic Alliance Memorandum (SAM) to encourage entrepreneurship and economic empowerment through increased collaboration on entrepreneurial and financial education for small business owners.
The alliance signing took place at Operation HOPE’s HOPE Global Financial Dignity Summit November 13, 2013, in Atlanta, Ga. with John Hope Bryant, Operation HOPE’s founder and CEO, Tameka Montgomery, SBA Associate Administrator for Entrepreneurial Development, and SBA Region Four Administrator Cassius Butts.
“The SBA is pleased to work with Operation HOPE, Inc. to drive economic development through business ownership,” said SBA Associate Administrator Montgomery. “We believe our efforts will help foster entrepreneurial empowerment to communities across the nation. The benefit for Americans is clear—by encouraging entrepreneurism, we’ll be helping people through their hard work and ideas gain a firm economic footing and achieve the American Dream.”
The SAM is designed to spur economic development through small business growth, and to improve entrepreneurial education that advances greater access to capital, expanded technical assistance and access to procurement programs.
Operation HOPE, Inc. is America’s first nonprofit social investment bank and a national provider of financial literacy and economic empowerment programs. Through ongoing collaborations and long-term partnerships with leading government, private sector, and community interests, Operation HOPE works to bring self-sufficiency and a sustained spirit of revitalization to America’s inner-city communities.
At the core of Operation HOPE’s mission is to empower communities through financial capability and dignity for all through its movement of “Silver Rights” or the right to financial literacy, making free enterprise work for everyone.
SBA, its resource partners and Operation Hope will collaborate to provide small business counseling and training, and work together to make resources available to benefit entrepreneurs across the country.
SBA Signs Strategic Alliance with Operation HOPE to Foster Entrepreneurship and Economic Empowerment
WASHINGTON ─ The U.S. Small Business Administration and Operation HOPE, Inc., signed a Strategic Alliance Memorandum (SAM) to encourage entrepreneurship and economic empowerment through increased collaboration on entrepreneurial and financial education for small business owners.
The alliance signing took place at Operation HOPE’s HOPE Global Financial Dignity Summit November 13, 2013, in Atlanta, Ga. with John Hope Bryant, Operation HOPE’s founder and CEO, Tameka Montgomery, SBA Associate Administrator for Entrepreneurial Development, and SBA Region Four Administrator Cassius Butts.
“The SBA is pleased to work with Operation HOPE, Inc. to drive economic development through business ownership,” said SBA Associate Administrator Montgomery. “We believe our efforts will help foster entrepreneurial empowerment to communities across the nation. The benefit for Americans is clear—by encouraging entrepreneurism, we’ll be helping people through their hard work and ideas gain a firm economic footing and achieve the American Dream.”
The SAM is designed to spur economic development through small business growth, and to improve entrepreneurial education that advances greater access to capital, expanded technical assistance and access to procurement programs.
Operation HOPE, Inc. is America’s first nonprofit social investment bank and a national provider of financial literacy and economic empowerment programs. Through ongoing collaborations and long-term partnerships with leading government, private sector, and community interests, Operation HOPE works to bring self-sufficiency and a sustained spirit of revitalization to America’s inner-city communities.
At the core of Operation HOPE’s mission is to empower communities through financial capability and dignity for all through its movement of “Silver Rights” or the right to financial literacy, making free enterprise work for everyone.
SBA, its resource partners and Operation Hope will collaborate to provide small business counseling and training, and work together to make resources available to benefit entrepreneurs across the country.
FDA TELLS PEOPLE TO CUT DOWN ON ACRYLAMIDE', OFFERS WAYS TO CUT BACK ON CONSUMPTION
FROM: U.S. FOOD AND DRUG ADMINISTRATION
You Can Help Cut Acrylamide in Your Diet
If you're trying to lose weight, you may already be telling your waiter to hold the fries. Now there's another health benefit you can reap: Cutting down on certain fried foods can also help you cut down on the amount of acrylamide you eat. That's a good thing because high levels of acrylamide have been found to cause cancer in animals, and on that basis scientists believe it is likely to cause cancer in humans as well.
FDA chemist Lauren Robin explains that acrylamide is a chemical that can form in some foods—mainly plant-based foods—during high-temperature cooking processes like frying and baking. These include potatoes, cereals, coffee, crackers or breads, dried fruits and many other foods. According to the Grocery Manufacturers Association, acrylamide is found in 40 percent of the calories consumed in the average American diet.
While acrylamide has probably been around as long as people have been baking, roasting, toasting or frying foods, it was only in 2002 that scientists first discovered the chemical in food. Since then, the FDA has been actively investigating the effects of acrylamide as well as potential measures to reduce it. Today, the FDA posts a draft document with practical strategies to help growers, manufacturers and food service operators lower the amount of acrylamide in foods associated with higher levels of the chemical.
In addition, there are a number of steps you and your family can take to cut down on the amount of acrylamide in the foods you eat.
Acrylamide forms from sugars and an amino acid that are naturally present in food. It does not form, or forms at lower levels, in dairy, meat and fish products. The formation occurs when foods are cooked at home and in restaurants as well as when they are made commercially.
"Generally speaking, acrylamide is more likely to accumulate when cooking is done for longer periods or at higher temperatures," Robin says. Boiling and steaming foods do not typically form acrylamide.
Tips for Cutting Down on Acrylamide
Given the widespread presence of acrylamide in foods, it isn't feasible to completely eliminate acrylamide from one's diet, Robin says. Nor is it necessary. Removing any one or two foods from your diet would not have a significant effect on overall exposure to acrylamide.
However, here are some steps you can take to help decrease the amount of acrylamide that you and your family consume:
Frying causes acrylamide formation. If frying frozen fries, follow manufacturers' recommendations on time and temperature and avoid overcooking, heavy crisping or burning.
Toast bread to a light brown color rather than a dark brown color. Avoid very brown areas.
Cook cut potato products such as frozen french fries to a golden yellow color rather than a brown color. Brown areas tend to contain more acrylamide.
Do not store potatoes in the refrigerator, which can increase acrylamide during cooking. Keep potatoes outside the refrigerator in a dark, cool place, such as a closet or a pantry.
FDA also recommends that you adopt a healthy eating plan, consistent with the Dietary Guidelines for Americans, including:
Eat plenty of fruits, vegetables, whole grains, and fat-free or low-fat milk products.
Include lean meats, poultry, fish, beans, eggs and nuts.
Choose foods low in saturated fats, trans fat (which both raises your bad LDL cholesterol and lowers your good HDL cholesterol and is linked to heart attacks), cholesterol, salt and added sugars.
This article appears on FDA's Consumer Updates page, which features the latest on all FDA-regulated products.
November 14, 2013
You Can Help Cut Acrylamide in Your Diet
If you're trying to lose weight, you may already be telling your waiter to hold the fries. Now there's another health benefit you can reap: Cutting down on certain fried foods can also help you cut down on the amount of acrylamide you eat. That's a good thing because high levels of acrylamide have been found to cause cancer in animals, and on that basis scientists believe it is likely to cause cancer in humans as well.
FDA chemist Lauren Robin explains that acrylamide is a chemical that can form in some foods—mainly plant-based foods—during high-temperature cooking processes like frying and baking. These include potatoes, cereals, coffee, crackers or breads, dried fruits and many other foods. According to the Grocery Manufacturers Association, acrylamide is found in 40 percent of the calories consumed in the average American diet.
While acrylamide has probably been around as long as people have been baking, roasting, toasting or frying foods, it was only in 2002 that scientists first discovered the chemical in food. Since then, the FDA has been actively investigating the effects of acrylamide as well as potential measures to reduce it. Today, the FDA posts a draft document with practical strategies to help growers, manufacturers and food service operators lower the amount of acrylamide in foods associated with higher levels of the chemical.
In addition, there are a number of steps you and your family can take to cut down on the amount of acrylamide in the foods you eat.
Acrylamide forms from sugars and an amino acid that are naturally present in food. It does not form, or forms at lower levels, in dairy, meat and fish products. The formation occurs when foods are cooked at home and in restaurants as well as when they are made commercially.
"Generally speaking, acrylamide is more likely to accumulate when cooking is done for longer periods or at higher temperatures," Robin says. Boiling and steaming foods do not typically form acrylamide.
Tips for Cutting Down on Acrylamide
Given the widespread presence of acrylamide in foods, it isn't feasible to completely eliminate acrylamide from one's diet, Robin says. Nor is it necessary. Removing any one or two foods from your diet would not have a significant effect on overall exposure to acrylamide.
However, here are some steps you can take to help decrease the amount of acrylamide that you and your family consume:
Frying causes acrylamide formation. If frying frozen fries, follow manufacturers' recommendations on time and temperature and avoid overcooking, heavy crisping or burning.
Toast bread to a light brown color rather than a dark brown color. Avoid very brown areas.
Cook cut potato products such as frozen french fries to a golden yellow color rather than a brown color. Brown areas tend to contain more acrylamide.
Do not store potatoes in the refrigerator, which can increase acrylamide during cooking. Keep potatoes outside the refrigerator in a dark, cool place, such as a closet or a pantry.
FDA also recommends that you adopt a healthy eating plan, consistent with the Dietary Guidelines for Americans, including:
Eat plenty of fruits, vegetables, whole grains, and fat-free or low-fat milk products.
Include lean meats, poultry, fish, beans, eggs and nuts.
Choose foods low in saturated fats, trans fat (which both raises your bad LDL cholesterol and lowers your good HDL cholesterol and is linked to heart attacks), cholesterol, salt and added sugars.
This article appears on FDA's Consumer Updates page, which features the latest on all FDA-regulated products.
November 14, 2013
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