FROM: U.S. STATE DEPARTMENT
Remarks at Joint Press Availability With Secretary of Defense Chuck Hagel, Australian Foreign Minister Julie Bishop, and Australian Defence Minister David Johnston
Remarks
John Kerry
Secretary of State
Ben Franklin Room
Washington, DC
November 20, 2013
SECRETARY KERRY: Well, good afternoon. I’m delighted to welcome Foreign Minister Bishop and Defence Minister Johnston to Washington for what has been a very productive Australia-United States Ministerial meeting, or AUSMIN as we call it for short.
I think everybody understands that the relationship between the United States and Australia is really extraordinary, and though we live in different hemispheres and at opposite ends of the globe, the relationship between us really is as close as a relationship can get. To start with, Australia is a vital partner as we strengthen U.S. engagement throughout the Asia-Pacific, and together we are growing closer and closer to finalizing the Trans-Pacific Partnership agreement. That will create jobs and investment on both of our shores, and it will also raise the standards of business transactions within that region and raise them to a higher level which we all aspire to. In addition, it will create, we think, a significant strengthening of the infrastructure between us, promoting democracy and good government and supporting gender equality throughout Southeast Asia.
As we meet today, the United States and Australia are working very closely on the emergency assistance efforts with respect to the Philippines, and we are together bringing significant relief to many, many Filipinos as a consequence of the super-typhoon that caused unspeakable devastation a few days ago.
We also work very closely to address the region’s security challenges, including the peaceful denuclearization of the Korean Peninsula, and we spent some period of time discussing that today.
Just a few minutes ago, as you witnessed, my colleagues and I signed a nonbinding Statement of Principles that will help to guide us as we move to put together a force posture agreement which will strengthen further the U.S. and Australia relationship over the course of the years to come. And we are trying to see if we can accelerate those negotiations and complete that agreement as rapidly as possible.
Our partnership, important to note, extends well beyond Asia-Pacific. In September, I sat in the chamber of the UN Security Council to join the global community in putting an end to the appalling use of chemical weapons in Syria. Australia held the rotating presidency of the Security Council that particular month, and as we signed that resolution, I was particularly proud to look to my left and see where Ambassador Gary Quinlan was sitting to be able to thank Australia for its leadership of the Security Council during that important period of time.
Today, we discussed our shared efforts to reach a political solution with respect to the conflict in Syria. We both share the goal of realizing a peaceful resolution not just for the Syrian conflict through the Geneva discussions, but also for the longstanding conflict between Israelis and Palestinians, and our efforts – all of us – to try to reach a constructive and acceptable agreement with respect to the threat of a nuclear weapon in Iran. We agreed on each of these that diplomacy is always the preferred approach and that it’s important to exhaust the remedies and possibilities of diplomacy.
We have the best chance we’ve had in a decade, we believe, to halt progress and roll back Iran’s program. And I made clear to our friends from Australia, as I have made clear to my former colleagues in meetings on Capitol Hill over this last week, we will not allow this agreement, should it be reached – and I say “should it be reached” – to buy time or to allow for the acceptance of an agreement that does not properly address our core fundamental concerns.
In the Asia-Pacific, the Middle East, and around the world, the U.S.-Australia partnership contributes significantly to our mutual goal of our search for peace and stability and security on a broader basis. This is, I think for all of us, our first AUSMIN, certainly my first as Secretary of State. I’ve had the really good fortune to work with our friends from Australia over the years as a United States Senator, as Chairman of the Foreign Relations Committee, and I worked very closely with our Australian counterparts on a wide range of issues over that period of time. And when Secretary Hagel and I served in Vietnam, the both of us remember well that we fought alongside our Australian brothers. In fact, American and Australian men and women have fought together in every major conflict since World War I. And this morning, Secretary Hagel and I joined Foreign Minister Bishop and Defence Minister Johnston for a moving ceremony at Arlington National Cemetery. There we honored together the enormous sacrifice that our nations have endured together and in our – and we also paid tribute to our shared efforts now in Afghanistan and elsewhere to promote democracy and peace.
These sacrifices between our countries continue even to this day, and now we honor the remarkable service of all of our men and women in uniform and we reconfirm and restate our commitment to completing the transfer of security responsibility to the Afghan National Security Forces by the end of 2014. I’m pleased to say that in a series of conversations with President Karzai in the course of this morning, even interrupting some of our conversations, that we reached an agreement as to the final language of the Bilateral Security Agreement that will be placed before the Loya Jirga tomorrow.
Now, when we open up trade and when we work on our mutual investment throughout the Asia-Pacific, I’m pleased to underscore that the United States and Australia work hand in hand, as closely as possible. When we’re providing relief to nations in need, our two nations are side by side. And when we’re taking historic steps to ensure that the world’s most heinous weapons are never used again, we are sitting and working side by side. And when we’re on the battlefield fighting to protect our shared values, we are standing side by side.
The United States could ask for no better friend and no closer ally than Australia. And it’s been a great pleasure for Secretary Hagel and me to host the Australian delegation, and we really look forward to continuing our work side-by-side over the years to come. Thank you.
Minister Bishop.
MINISTER BISHOP: First I’d like to thank Secretary Kerry and Secretary Hagel for their gracious hospitality and for hosting this AUSMIN meeting here in Washington. Both Senator Johnston and I were deeply moved by the arrangements that were made to hold a ceremony at Arlington this morning as we paid tribute to the memories of those who have died in service of your country and reflecting on the fact that, as you say, Mr. Secretary, our forces have fought side-by-side in every conflict in which we have been engaged.
Senator Johnston and I took this opportunity to reaffirm the Australian Government’s commitment to the bilateral relationship and the ANZUS alliance, which is the cornerstone of Australian foreign policy. But as our wide-ranging discussion today made clear, our relationship is much more than just defense cooperation. We engage on every level, whether it be in education or scientific and research collaboration, whether it be tourism, whether it be the new frontiers of space, whether it be trade and investment.
Indeed, I’m reminded that when you take trade and investment together, the United States is Australia’s most important economic partner. And the considerable investment that we see from the United States in Australia and from Australia in the United States means that our economies are stronger, the job opportunities are greater, as our two countries work closely together on economic matters.
We took the opportunity today to discuss a range of issues regarding our region in particular, the Indian Ocean Asia-Pacific. We looked at the challenges – economic, security, strategic – that face the region. We support wholeheartedly the United States rebalance to our region. And it’s most certainly the case that countries in our region look forward to more United States leadership in the region, not less. We also focused on the Indian Ocean and the countries of the Indian Ocean, as well as the Pacific Ocean. We spoke more generally about global issues – about the Middle East, Syria, Egypt, Iran. We talked about the need for denuclearization on the Korean Peninsula.
Specifically, we spoke about our joint force posture initiatives, and I’ll ask Senator Johnston to say a little more about that. And we also recognize that the joint membership we have of the regional architecture, the global architecture, including the East Asia Summit, APEC, the G20, means that not only do we work bilaterally, but we also work regionally and globally as partners.
There is no doubt that the relationship we have, the friendship we have, the partnership, the alliance makes us both stronger countries. And I thank our American hosts for having us here. It has been our first AUSMIN. It certainly, I hope, will not be our last.
SECRETARY HAGEL: Secretary Kerry, thank you. Good afternoon. I very much appreciated the opportunity to host, with Secretary Kerry, our friends from Australia, Minister Bishop, Minister Johnston. For me, it also was a personal privilege. As Secretary Kerry noted, we – John and I served together in Vietnam with many Australians. I – as John served in the United States Senate and worked closely with our friends in Australia during those times and visited Australian a number of times. My father served in the South Pacific, including Australia, during World War II. And I celebrated my 22nd birthday in Sydney, Australia. So I am particularly personally grateful for this opportunity to participate in our consultations today.
AUSMIN, as has been noted, is really quite a unique forum, that demonstrates how much the United States values its close relationship with Australia and the continued vitality of this important alliance. Today’s meeting reflected not only the breadth of cooperation between our two countries, two old and good friends, but also the deep bonds we share – bonds of shared values, shared interests, and shared history. We were reminded of these common bonds earlier today as Secretary Kerry, Minister Bishop has noted, at the Arlington National Cemetery. Australians and Americans have fought side by side in every major conflict over the last 100 years and over this last decade. Australia has been the largest non-NATO troop contributor to the war in Afghanistan. The American people are grateful to the Australians for Australia’s continued commitment to that effort. And we deeply respect the great sacrifices made by the Australian defense forces.
Today we discussed America’s force posture initiative with Australia. That force posture was announced during President Obama’s trip to Canberra two years ago. These initiatives remain on track. Two companies of Marines have rotated through Darwin. And we have increased exercises between our air forces. Next year, our Marine rotational force near Darwin will expand to 1,100 Marines. We reaffirm plans for this rotating force to grow. These ongoing rotational deployments to Australia are important to making the U.S. military presence in Asia-Pacific more geographically distributed, operationally resilient, and also politically sustainable.
Our relationships in the South Pacific are historic. The rebalance to this – to the Pacific Asia area that the President announced two years ago are based on our common interests with the nations of Asia-Pacific: trade, commerce, culture, education, stability, security. They’ll also help strengthen our capacity and the capacity of our partners in the region, like humanitarian assistance disaster relief efforts currently underway, as Secretary Kerry noted, in the Philippines. The United States and Australia are working side by side in support of the people of the Philippines.
As we continue to implement our force posture initiatives with Australia, we also agreed today on a Statement of Principles that we just signed that will ensure these efforts are closely aligned with both our nations’ shared regional security objectives and our future. Negotiations will begin next month on a binding agreement that will govern these force posture initiatives and further defense cooperation. As we adapt our alliance to an evolving security environment, we are also focused on new challenges, including those in space and cyber. We will continue to work closely together on the full range of cyber threats.
We also are continuing to implement previous agreements to expand our situational awareness in space. Earlier today, Defence Minister Johnston and I signed an agreement to relocate a unique advanced space surveillance telescope to western Australia. This telescope provides highly accurate detection, tracking, and identification of deep space objects, and will further strengthen our existing space cooperation.
All of these steps are helping strengthen our alliance as we continue to work together to face the challenges and opportunities of this new century. It has been an honor, again, to join Secretary Kerry in hosting Foreign Minister Bishop and Defence Minister Johnston and the Australian delegation. And we thank the delegation – their ambassador to Washington D.C.; their former ambassador, General Hurley; and the rest of their very distinguished delegation. I look forward to continue working with all of them to advance our common interests, as I do with our partners in the Pacific Asia region. And I know I speak for General Dempsey, Chairman of the Joint Chiefs of Staff. Admiral Locklear was here with us this morning, as other leaders of the defense institution. We look forward to advancing our common interests in our friendships, and a more secure and prosperous future for both our nations. Thank you very much.
MINISTER JOHNSTON: Thank you, Mr. Secretary. Can I adopt and support the remarks of my Foreign Minister Julie Bishop? Secretary Kerry and Secretary Hagel, today is the third occasion I’ve had the opportunity to discuss Australia’s defense relationship with the United States with Secretary Hagel. And I thank him for his leadership and his friendship on this very important subject to my country.
I also thanked him during the course of the meetings for not just his leadership, but for the leadership of his senior commanders – General Dempsey; General Breedlove, Supreme Allied Commander in Europe; General Dunford, ISAF Commander; and of course, in the Pacific, Admiral Locklear. The leadership that is shown by the United States here and more broadly in our engagements across the world – and obviously, Afghanistan is a very important engagement for Australia – is simply splendid. And I thank him and I thank the United States for that.
This is, of course, the first AUSMIN for all of us. It has been, may I say, a very successful exchange. And I trust that Secretary Hagel feels as I do, that he can ring me at any time on any subject as a friend, and we can discuss important relationship matters as we bring Marines to Darwin, as we further explore interrelationships, interoperability, and of the vast number of contacts and technical operations we conduct together into the future.
This is Australia’s most important strategic alliance. The friendship and the demeanor by which we have conducted this has been a very effective, productive, and also a very happy relationship in frankly discussing all of the issues that we both consider to be very important. I want to thank Secretary Kerry and Secretary Hagel for their hospitality, and it has been a delight to be here. I thank you again.
MS. PSAKI: The first question will be from Jill Dougherty of CNN.
QUESTION: Thank you. Secretary Kerry, thank you. I wanted to – now that you’ve mentioned that you’ve reached agreement on the final language for the BSA, the security agreement between the United States and Australia, I wanted to ask if you could clear up some of the confusion about this issue of a letter to be issued by the United States. We believe that that was your idea, and perhaps you can enlighten us. Some of the words that have been used are “appropriate assurances,” “express regret.” Susan Rice says there’s no apology. So is this – if it’s not an apology to the Afghans, what is it? Who would sign such a letter? And why is it necessary?
And then also, if there’s anything that you could add about details of this agreement, how long – especially how long U.S. forces would remain in Afghanistan. Thank you.
SECRETARY KERRY: Jill, thank you. First of all, let me comment that I can’t help but look out from this table with the four of us sitting here and see our two delegations facing each other, and I feel like we’re judges looking at a tag-team wrestling match or a dance contest or something. (Laughter.) General Dempsey versus General Hurley now. (Laughter.) We’ll score you. A diversion.
I don’t know where this idea – I honestly don’t know where the idea of an apology started, because I think someone in the chain of press or something said something to somebody over there, not here. But let me be clear: President Karzai didn’t ask for an apology. There was no discussion of an apology. There will be – there is no – I mean, it’s just not even on the table. He didn’t ask for it. We’re not discussing it. And that is not the subject that we have been talking about.
What we’ve been talking about are the terms of the BSA itself, which provide the outline of the structure, the process by which ISAF, international forces, the United States forces themselves would be engaged going forward. As I think you know, it is a very limited role. It is entirely train, equip, and assist. There is no combat role for United States forces. And the Bilateral Security Agreement is an effort to try to clarify for Afghans and for United States military forces exactly what the rules are with respect to that ongoing relationship.
It’s very important for President Karzai to know that issues that he’s raised with us for many years have been properly addressed, and it’s very important for us to know that issues we have raised with him for a number of years are properly addressed. The agreement will speak for itself when the agreement is approved. And as we sit here tonight, we have agreed on the language that would be submitted to a Loya Jirga, but they have to pass it. So I think it’s inappropriate for me to comment at all on any of the details. It’s up to the people of Afghanistan.
When I left Kabul that late night when President Karzai and I had finished the major part of the negotiation, we both said it has to go to the Loya Jirga. There were some people who may have questioned or doubted whether that was going to happen. Well, it’s happening tomorrow, and it’s happening tomorrow with agreed-upon language between us. And I think it’s up to President Karzai to speak to the Loya Jirga, its process, and how it will work and what the results will be, and it’s up to President Obama and the White House to address any issues with respect to any possible communication between the President or President Karzai. So let’s see where we are.
But the important thing for people to understand is there has never been a discussion of or the word “apology” used in our discussions whatsoever.
MS. PSAKI: The next question will be from Nick O’Malley of the Sydney Morning Herald.
QUESTION: Secretary Kerry, I was wondering, after the revelations that the NSA had conducted surveillance of the German leadership, the response from America was to seek to placate and reassure Germany.
SECRETARY KERRY: Sorry, I couldn’t hear your last – the response?
QUESTION: The response from America was to seek to placate German leadership. Do you think that would be a useful approach for Australia to be taking after revelations of Australian espionage against Indonesia?
SECRETARY KERRY: Well, let me just say, fundamentally, each situation is its own situation. We have great respect, obviously, for the work we do together with our friends in Australia, as we’ve said here today. We have an unbreakable and a critical working relationship, and we have worked together in counterterrorism and many activities on a global basis, and will continue to.
Likewise, we have great respect and affection for Indonesia, we work with our friends in Indonesia on many different issues, and we will continue to do that. But whatever has been or not been released or being discussed in the papers, I believe – as I think our friends in Australia do – is a matter of intelligence and intelligence procedures, and we don’t discuss intelligence procedures in any sort of public way at this point in time, certainly, unless the President indicates otherwise. But that’s where we are.
MS. PSAKI: The next question will be from Scott Stearns of VOA.
QUESTION: A question for Secretary Kerry and Foreign Minister Bishop: We understand where the international community is on Iran’s right to enrich uranium regarding the NPT. But can you foresee a resolution to this standoff that includes Iran in any way enriching uranium? Or does access to a civilian nuclear program on the part of Iran mean that it needs to access that uranium elsewhere? Thank you.
SECRETARY KERRY: Well, given that there is no stated right within the NPT, which we have reaffirmed again and again with respect to enrichment, whatever a country decides or doesn’t decide to do or is allowed to do and permitted under the rules depends on a negotiation, depends on a process. We’re not in that – we’re at the initial stage of determining whether or not there is a first step that can be taken. And that certainly will not be resolved in any first step, I can assure you.
So the President has said many times Iran, like other nations that are signatories to the NPT, the Non-Proliferation Treaty, have a right to peaceful nuclear energy. Now, what that contains depends on the standing of that particular nation with respect to NPT requirements and the international community.
So that’s what the negotiation is about, and I’m not going to predetermine its outcome except to say to you that no right is recognized or granted within anything that I’ve seen in the early discussions. It is a subject of negotiation. It would have to be resolved in negotiation and subject to extraordinary standards and scrutiny and process, which is the heart of the negotiation. So there’s no way to suggest anything but that it’s important to get to a negotiation and see what can or cannot be reached.
MINISTER BISHOP: Australia is monitoring the P5+1 scenario very closely, and I’m grateful to Secretary Kerry for keeping us informed in the context of this AUSMIN meeting as to where the proposed negotiations are, where they’re likely to head. But we also reiterate that should a nation require nuclear aspects for the purposes of civilian purpose – for civilian uses, peaceful purposes, then of course, it’s subject to international safeguards, it’s subject to a range of protocols, and that would apply in this case. But we’re not at that stage. We’re not at a stage where Iran has convinced us that its use is for peaceful civilian purposes. Should it get to that point, then of course, the appropriate international safeguards and protocols would apply, as they would to any other country in that situation.
MS. PSAKI: The final question will be from Jane Cowan of the Australian Broadcasting Corporation.
QUESTION: Foreign Minister Bishop, given the furor now over the revelations of Australian spying on Indonesia, have you registered Australia’s displeasure with those security lapses that gave rise to the Snowden leaks that have now caused so much discord in that relationship?
And Secretary Kerry, can you confirm that the spying was done at the request of the U.S.?
MINISTER BISHOP: As I have said on numerous occasions, and as the Prime Minister has said, we do not discuss intelligence matters, certainly not allegations. We do not discuss them publicly, and we will not do so. The Prime Minister has made two statements to the Parliament now on this issue, and I would refer you to those statements.
In regard to our discussions today, we had a very wide-ranging discussion about a whole raft of issues that affect our bilateral relationship, very productive and very fruitful discussions. And long may they continue.
SECRETARY KERRY: As Prime Minister Abbott has said and the comments that he has addressed, and as Minister Bishop has said here today and on many occasions, and as I have said in my previous comments, we just don’t talk about intelligence matters in public and we’re not about to begin now.
MS. PSAKI: Thank you, everyone.
Thursday, November 21, 2013
MODIS IMAGE SHOWS LARGE ICEBERG SEPARATING FROM PINE ISLAND GLACIER IN ANTARCTICA
FROM: NASA
Pine Island Glacier 2013: Nov. 10
This MODIS image taken by NASA’s Aqua satellite on Nov. 10, 2013, shows an iceberg that was part of the Pine Island Glacier and is now separating from the Antarctica continent. What appears to be a connection point on the top left portion of the iceberg is actually ice debris floating in the water.
The original rift that formed the iceberg was first observed in October 2011 but as the disconnection was not complete, the “birth” of the iceberg had not yet happened. It is believed the physical separation took place on or about July 10, 2013, however the iceberg persisted in the region, adjacent to the front of the glacier.
The iceberg is estimated to be 21 miles by 12 miles (35 km by 20 km) in size, roughly the size of Singapore. A team of scientists from Sheffield and Southampton universities will track it and try to predict its path using satellite data. Image credit: NASA
Pine Island Glacier 2013: Nov. 10
This MODIS image taken by NASA’s Aqua satellite on Nov. 10, 2013, shows an iceberg that was part of the Pine Island Glacier and is now separating from the Antarctica continent. What appears to be a connection point on the top left portion of the iceberg is actually ice debris floating in the water.
The original rift that formed the iceberg was first observed in October 2011 but as the disconnection was not complete, the “birth” of the iceberg had not yet happened. It is believed the physical separation took place on or about July 10, 2013, however the iceberg persisted in the region, adjacent to the front of the glacier.
The iceberg is estimated to be 21 miles by 12 miles (35 km by 20 km) in size, roughly the size of Singapore. A team of scientists from Sheffield and Southampton universities will track it and try to predict its path using satellite data. Image credit: NASA
MAN PLEADS GUILTY IN CASE INVOLVING THE SALE OF SEA TURTLE MEAT
FROM: U.S. JUSTICE DEPARTMENT
Monday, November 18, 2013
Puerto Rico Man Pleads Guilty to Felony Violation of the Lacey Act for Illegal Sale of Sea Turtle Meat
SAN JUAN, Puerto Rico – Manuel Garcia-Figueroa, a resident of Playa Añasco, Puerto Rico, pleaded guilty to a bill of information charging him with a felony violation of the Lacey Act for the illegal sale of sea turtle meat, the Justice Department announced today.
According to the information filed in the U.S. District Court in Puerto Rico, Garcia-Figueroa knowingly sold more than $350 of meat and carapaces from endangered hawksbill sea turtles (Eretmochelys imbricata) and meat from a threatened green sea turtle (Chelonia mydas), while knowing that the sea turtles had been taken in violation of the Endangered Species Act (ESA). The illegal sales took place on or about Dec.11, 2009, to on or about Jan. 4, 2010, in and around Playa Añasco. The case resulted from a joint-undercover operation by the National Oceanic and Atmospheric Administration Office of Law Enforcement (NOAA-OLE) and the FBI.
All species of sea turtles found in the Gulf of Mexico, Atlantic Ocean, Caribbean Sea and waters adjacent to the United States are protected by the ESA. Sea turtles are long-lived and slow to reach maturity. Pressures from habitat loss, fishing operations, pollution, illegal harvesting of eggs, and poaching of adults exacerbate the extinction risk faced by these animals. In Puerto Rico, the green sea turtle (Chelonia mydas) is listed as “threatened” under the ESA; the hawksbill sea turtle (Eretmochelys imbricata) is listed as “endangered.”
The Lacey Act is the principal U.S. statute designed to reduce the role that wildlife poaching, selling, and smuggling plays in depleting protected species. Once an ESA-listed wildlife species is taken or possessed illegally, it is unlawful to “import, export, transport, sell, receive, acquire, or purchase” that species. A person commits a criminal violation of the Lacey Act if the illegal conduct involves the sale or purchase of wildlife with a market value in excess of $350, while knowing that the wildlife was taken in violation of or in a manner unlawful under, any underlying law, treaty, or regulation.
The waters around Puerto Rico are designated as a critical habitat for the hawksbill and the green sea turtle. The most significant nesting for the hawksbill within the U.S. occurs in Puerto Rico and the U.S. Virgin Islands. Each year, about 500-1,000 hawksbill nests are laid on Mona Island, Puerto Rico. The green sea turtle population has declined by 48-65 percent over the past century. Puerto Rico is also home to nesting sites for the endangered leatherback sea turtle, the largest species of turtle in the world.
The commonwealth of Puerto Rico contains six national wildlife refuges (Cabo Rojo, Culebra, Desecheo, Laguna Cartagena, Navassa Island and Vieques) and is home to 25 endangered and threatened animal species, 21 of which are found nowhere else on earth
In 2013, the Justice Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office in Puerto Rico announced the formation of the Puerto Rico Environmental Crimes Task Force to investigate and prosecute environmental crimes on the island. Under the new task force, federal investigative agencies are coordinating their efforts to investigate and prosecute those responsible for committing serious environmental crimes.
The cases are being prosecuted by Trial Attorney Christopher Hale of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorneys Carmen Márquez and Hector Ramirez of the District of Puerto Rico. If convicted, the defendant faces a maximum sentence of five years in prison and a $250,000 fine.
Sentencing is scheduled for Feb. 18, 2014.
Monday, November 18, 2013
Puerto Rico Man Pleads Guilty to Felony Violation of the Lacey Act for Illegal Sale of Sea Turtle Meat
SAN JUAN, Puerto Rico – Manuel Garcia-Figueroa, a resident of Playa Añasco, Puerto Rico, pleaded guilty to a bill of information charging him with a felony violation of the Lacey Act for the illegal sale of sea turtle meat, the Justice Department announced today.
According to the information filed in the U.S. District Court in Puerto Rico, Garcia-Figueroa knowingly sold more than $350 of meat and carapaces from endangered hawksbill sea turtles (Eretmochelys imbricata) and meat from a threatened green sea turtle (Chelonia mydas), while knowing that the sea turtles had been taken in violation of the Endangered Species Act (ESA). The illegal sales took place on or about Dec.11, 2009, to on or about Jan. 4, 2010, in and around Playa Añasco. The case resulted from a joint-undercover operation by the National Oceanic and Atmospheric Administration Office of Law Enforcement (NOAA-OLE) and the FBI.
All species of sea turtles found in the Gulf of Mexico, Atlantic Ocean, Caribbean Sea and waters adjacent to the United States are protected by the ESA. Sea turtles are long-lived and slow to reach maturity. Pressures from habitat loss, fishing operations, pollution, illegal harvesting of eggs, and poaching of adults exacerbate the extinction risk faced by these animals. In Puerto Rico, the green sea turtle (Chelonia mydas) is listed as “threatened” under the ESA; the hawksbill sea turtle (Eretmochelys imbricata) is listed as “endangered.”
The Lacey Act is the principal U.S. statute designed to reduce the role that wildlife poaching, selling, and smuggling plays in depleting protected species. Once an ESA-listed wildlife species is taken or possessed illegally, it is unlawful to “import, export, transport, sell, receive, acquire, or purchase” that species. A person commits a criminal violation of the Lacey Act if the illegal conduct involves the sale or purchase of wildlife with a market value in excess of $350, while knowing that the wildlife was taken in violation of or in a manner unlawful under, any underlying law, treaty, or regulation.
The waters around Puerto Rico are designated as a critical habitat for the hawksbill and the green sea turtle. The most significant nesting for the hawksbill within the U.S. occurs in Puerto Rico and the U.S. Virgin Islands. Each year, about 500-1,000 hawksbill nests are laid on Mona Island, Puerto Rico. The green sea turtle population has declined by 48-65 percent over the past century. Puerto Rico is also home to nesting sites for the endangered leatherback sea turtle, the largest species of turtle in the world.
The commonwealth of Puerto Rico contains six national wildlife refuges (Cabo Rojo, Culebra, Desecheo, Laguna Cartagena, Navassa Island and Vieques) and is home to 25 endangered and threatened animal species, 21 of which are found nowhere else on earth
In 2013, the Justice Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office in Puerto Rico announced the formation of the Puerto Rico Environmental Crimes Task Force to investigate and prosecute environmental crimes on the island. Under the new task force, federal investigative agencies are coordinating their efforts to investigate and prosecute those responsible for committing serious environmental crimes.
The cases are being prosecuted by Trial Attorney Christopher Hale of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorneys Carmen Márquez and Hector Ramirez of the District of Puerto Rico. If convicted, the defendant faces a maximum sentence of five years in prison and a $250,000 fine.
Sentencing is scheduled for Feb. 18, 2014.
Wednesday, November 20, 2013
SECRETARY OF STATE KERRY'S REMARKS ON INTERNATIONAL MISSION IN THE CENTRAL AFRICAN REPUBLIC
FROM: U.S. STATE DEPARTMENT
Support for the African Union International Support Mission in the Central African Republic
Remarks
John Kerry
Secretary of State
Washington, DC
November 20, 2013
I am deeply concerned by the ongoing crisis in the Central African Republic and the deplorable levels of violence and lawlessness that affect millions of people every day. In the continuing aftermath of the March 2013 overthrow of the government by the Seleka rebel alliance, militia groups are now organizing themselves along increasingly sectarian lines and engaging in a cycle of retaliatory abuses against civilians. At this moment, the United States sees no evidence that the CAR transitional government has the capacity or political will to end the violence, especially the abuses committed by elements of the Seleka rebel alliance that are affiliated with the government.
Pending notification to the United States Congress, the Department of State plans to provide $40 million in assistance to MISCA, the African Union-led peacekeeping mission in the CAR, to help protect civilians and provide security throughout the country. This assistance may provide logistical backing, non-lethal equipment, training, and planning support. In the immediate term, we believe that MISCA is the best mechanism to help quickly address the ongoing violence in the CAR and prevent further atrocities. MISCA is also in the best position to help establish an environment that allows for the provision of humanitarian assistance and an eventual political transition to a democratically elected government.
There are nearly 400,000 internally displaced persons and over 220,000 CAR refugees in neighboring countries, including approximately 68,000 new refugees who have fled in recent months. In the past year, the U.S. government has provided more than $24 million in humanitarian assistance to support programs that provide food, health services, and other aid in the CAR. We have also provided an additional $6 million in humanitarian assistance to specifically support new Central African refugees.
We call on the region and the international community to support and fully deploy MISCA in order to restore security in the country, and we will continue to work with others in the region and the international community to implement a credible political transition and assist the people of the CAR who have suffered so greatly in this conflict.
Support for the African Union International Support Mission in the Central African Republic
Remarks
John Kerry
Secretary of State
Washington, DC
November 20, 2013
I am deeply concerned by the ongoing crisis in the Central African Republic and the deplorable levels of violence and lawlessness that affect millions of people every day. In the continuing aftermath of the March 2013 overthrow of the government by the Seleka rebel alliance, militia groups are now organizing themselves along increasingly sectarian lines and engaging in a cycle of retaliatory abuses against civilians. At this moment, the United States sees no evidence that the CAR transitional government has the capacity or political will to end the violence, especially the abuses committed by elements of the Seleka rebel alliance that are affiliated with the government.
Pending notification to the United States Congress, the Department of State plans to provide $40 million in assistance to MISCA, the African Union-led peacekeeping mission in the CAR, to help protect civilians and provide security throughout the country. This assistance may provide logistical backing, non-lethal equipment, training, and planning support. In the immediate term, we believe that MISCA is the best mechanism to help quickly address the ongoing violence in the CAR and prevent further atrocities. MISCA is also in the best position to help establish an environment that allows for the provision of humanitarian assistance and an eventual political transition to a democratically elected government.
There are nearly 400,000 internally displaced persons and over 220,000 CAR refugees in neighboring countries, including approximately 68,000 new refugees who have fled in recent months. In the past year, the U.S. government has provided more than $24 million in humanitarian assistance to support programs that provide food, health services, and other aid in the CAR. We have also provided an additional $6 million in humanitarian assistance to specifically support new Central African refugees.
We call on the region and the international community to support and fully deploy MISCA in order to restore security in the country, and we will continue to work with others in the region and the international community to implement a credible political transition and assist the people of the CAR who have suffered so greatly in this conflict.
NSC SPOKESPERSON MAKES STATEMENT ON UK SHIFT TOWARD CLEANER ENERGY
FROM: THE WHITE HOUSE
Statement by NSC Spokesperson Caitlin Hayden on UK Announcement on Clean Energy
We are delighted that the United Kingdom is joining the United States in shifting public financing toward cleaner energy sources. This is an important component of President Obama's Climate Action Plan, and we look forward to working with the UK to encourage other countries to implement similar polices.
The President’s Climate Action Plan calls for an end to U.S. support for public financing of new coal-fired power plants overseas except for plants deploying carbon capture and sequestration technologies or in the world’s poorest countries, and encourages other countries to adopt similar policies.
Statement by NSC Spokesperson Caitlin Hayden on UK Announcement on Clean Energy
We are delighted that the United Kingdom is joining the United States in shifting public financing toward cleaner energy sources. This is an important component of President Obama's Climate Action Plan, and we look forward to working with the UK to encourage other countries to implement similar polices.
The President’s Climate Action Plan calls for an end to U.S. support for public financing of new coal-fired power plants overseas except for plants deploying carbon capture and sequestration technologies or in the world’s poorest countries, and encourages other countries to adopt similar policies.
U.S. DEFENSE DEPARTMENT CONTRACTS FOR NOVEMBER 20, 2013
FROM: U.S. DEFENSE DEPARTMENT
NAVY
Pacific Architects and Engineers Applied Technologies, Fort Worth, Texas, is being awarded a $44,577,164 indefinite-delivery/indefinite-quantity contract for the development, testing, and installation of the SureTrak Surveillance System for the U.S. Navy, U.S. Air Force, the National Aeronautics and Space Administration, and governments in Africa under the foreign military sales program. The SureTrak System is a state-of-the-art, fully integrated, multi-sensor, data acquisition and display system used for airspace surveillance, waterway clearance, shoreline surveillance, and environmental monitoring functions. Work will be performed at the Naval Air Warfare Center (NAWC) Aircraft Division, Patuxent River, Md. (10 percent); NASA Wallops Test Facility, Wallops, Va. (4 percent); Vandenberg Air Force Base, Lompoc, Calif. (2 percent); Patrick Air Force Base, Fla. (2 percent); NAWC Weapons Division, Pt. Mugu, Calif. (1 percent); Naval Surface Warfare Center, Dahlgren, Va. (1 percent); and at various locations outside the United States (80 percent), and is expected to be completed in November 2017. No funds will be obligated at time of award; funds will be obligated on individual orders as they are issued. This contract was not competitively procured pursuant to 10 U.S.C. 2304(c)(1). The Naval Air Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity (N00421-14-D-0001).
The Boeing Co., Seattle, Wash., is being awarded a $26,879,866 modification to a previously awarded fixed-price-incentive-firm contract (N00019-12-C-0112) to exercise an option for the diminishing manufacturing sources re-design in support of the U.S. Navy P-8A Full Rate Production Lot I aircraft. Work will be performed in Seattle, Wash., and is expected to be completed in April 2017. Fiscal 2014 aircraft procurement, Navy contract funds in the amount of $26,879,866 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md. is the contracting activity.
Vigor Marine LLC, Portland, Ore., is being awarded a $12,954,046 firm-fixed-price contract for a 120-calendar day post shakedown availability, regular overhaul and dry-docking availability of missile range instrumentation ship the USNS Howard O. Lorenzen (T-AGM 25). Work will include fuel oil fill; transfer and overflow systems modifications; main diesel engine fuel oil service piping modifications; relocation of AC seawater pumps; docking and undocking; and underwater hull cleaning and painting. Lorenzen’s primary mission is to monitor missile launches and collect data. The contract includes options which, if exercised, would bring the cumulative value of this contract to $15,214,713. Work will be performed in Portland, Ore., and is expected to be completed by April 2014. Working capital contract funds in the amount of $12,954,046 are obligated for fiscal 2014 and will expire at the end of the current fiscal year. This contract was competitively procured with proposals solicited via the Military Sealift Command procurement page and the Federal Business Opportunities website, with two offers received. The U.S. Navy’s Military Sealift Command, Washington, D.C., is the contracting activity (N32205-14-C-2001).
Glidepath Technologies*, Harrisburg, Pa., is being awarded a $12,205,945 firm-fixed-price indefinite-delivery/indefinite-quantity contract for the procurement of up to 40 each AN/SPN-41B Azimuth and elevation radomes for the U.S. Navy. The radomes provide protection for the AN/SPN-41B transmitting set from environmental conditions existing on U.S. Navy aircraft carrier and amphibious assault class ships. Work will be performed in Harrisburg, Pa., and is expected to be completed in November 2018. Fiscal 2012 shipbuilding and conversion, Navy contract funds in the amount of $310,806 are being obligated on this award, none of which will expire at the end of the current year. This contract was competitively procured as a full and open competition via an electronic request for proposals, with one offer received. The Naval Air Warfare Center Aircraft Division, Lakehurst, N.J., is the contracting activity (N68335-14-D-0010).
General Dynamics National Steel and Shipbuilding Co., San Diego, Calif., is being awarded a $12,144,761 modification to previously awarded contract (N00024-12-C-2400) to exercise the option for the fitting-out availability of the USS Somerset (LPD 25). Specific efforts include engineering, planning, management, labor and material in support of the fitting-out availability. Work will be performed in San Diego, Calif., and is expected to be completed by December 2014. Fiscal 2014 shipbuilding and conversion, Navy; fiscal 2014 operations and maintenance, Navy; and fiscal 2013 other procurement, Navy funding in the amount of $730,431 will be obligated at time of award. Contract funds in the amount of $215,383 will expire at the end of the current fiscal year. This contract was competitively procured with four proposals received. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
The Boeing Co., Defense and Space Group, Seattle Wash., is being awarded at $10,119,307 firm-fixed-price requirements contract to repair 559 items required to support the P8 aircraft. Work will be performed in Dallas, Texas, and is expected to be completed by Sept. 30, 2015. No funds will be obligated at the time of award. Fiscal 2014 aircraft procurement funds will be used on task orders as they are issued. No funds will expire at the end of the current fiscal year. This sole source contract was not competitively procured in accordance with FAR 6.302-1. NAVSUP Weapon Systems Support, Philadelphia, Pa., is the contracting activity (N00383-14-D-006F).
General Dynamics Electric Boat Corp., Groton, Conn., is being awarded an $8,766,998 cost-plus-fixed-fee modification to the previously awarded contract (N00024-13-C-4311) to provide a Nuclear Regional Maintenance Department in support of operational nuclear submarines at the Naval Submarine Support Facility, Naval Submarine Base, New London, Conn. Electric Boat will continue to provide staff and operate a Nuclear Regional Maintenance Department at the Naval Submarine Base, in support of returning mission ready submarines to the fleet. The contract will also require project management, technical analysis, engineering and planning, training, inspection and nuclear services to accomplish intermediate-level nuclear submarine maintenance, modernization, and repairs in support of operational nuclear submarines, including maintaining and modernizing government-owned facilities and equipment and providing off-hull support of submarine maintenance. This contract includes options which, if exercised, would bring the cumulative value of this contract to $163,999,997. Work will be performed in New London, Conn., and is expected to be completed by March 2014. Fiscal 2014 operations and maintenance, Navy contract funds in the amount of $8,766,998 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S.C. 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
General Dynamics Electric Boat Corp., Groton, Conn., is being awarded an $8,000,000 cost-plus-fixed-fee modification to previously awarded contract (N00024-13-C-4308) to exercise options to provide non-nuclear submarine repair work on Groton based submarines under the New England Maintenance Manpower Initiative (NEMMI). Under the terms of the contract, Electric Boat will provide NEMMI tasks in support of non-nuclear maintenance, modernization and repair of operational nuclear powered submarines, floating dry docks, support and service craft and plant equipment assigned to the Naval Submarine Support Facility, New London, Conn. Work will be performed in New London, Conn., and is expected to be completed by December 2014. Fiscal 2014 operations and maintenance, Navy contract funds in the amount of $8,000,000 will be obligated at time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Exelis Inc., Fort Wayne, Ind., is being awarded a $7,028,919 indefinite-delivery/indefinite-quantity contract for the procurement of up to 62 radar signal simulators in support of the MH-60R and S70-B aircraft for the U.S Navy (33), the Government of Australia (27), and the Government of Brazil (2) under the foreign military sales program. Work will be performed in Fort Wayne, Ind., and is expected to be completed in November 2017. FMS funds in the amount of $1,093,932 are being obligated on this award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to the FAR 6.302-1. The Naval Air Warfare Center Aircraft Division, Lakehurst, N.J., is the contracting activity (N68335-14-D-0005).
ARMY
Carothers Construction, Inc., Oxford, Miss., was awarded a $24,622,000 firm-fixed-price contract with options, case contract line item numbers (CLINs) 0001-0003 and optional CLINs 0004-0007, 0009-0010 for the construction of a replacement general purpose warehouse at New Cumberland, Pa. Construction includes a permanent, non-combustible, general-purpose warehouse with concrete floors and 20 foot clear stacking height. Estimated completion date is July 18, 2015. Fiscal 2014 military construction funds in the amount of 24,622,000 were obligated. Bids were solicited via the Internet with nine received. Army Corps of Engineers, Baltimore, Md. is the contracting agency (W912DR-14-C-0005).
POND – FSB (joint venture), Norcross, Ga., was awarded a $13,000,000 firm-fixed-price, indefinite-delivery contract for architect, engineer services to support the Air Force KC-46A aircraft beddown within the continental United States. Estimated completion date is Nov. 19, 2018. Bids were solicited via the Internet with fifty-seven received. Funding and location will be determined with each order. Army Corps of Engineers, Mobile, Ala., is the contracting agency (W91278-14-D-0001).
DEFENSE LOGISTICS AGENCY
Sterling Foods, LLC, San Antonio, Texas, has been awarded a maximum $32,785,593 modification (P00006) exercising the second one-year option period on a one-year base contract (SPM3S1-12-D-Z100) with four one-year option periods for bakery components used in the meal-ready-to-eat program. This is a firm-fixed-price contract. Location of performance is Texas with a Dec. 31, 2014 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal year 2014 through fiscal year 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa. (Awarded Nov. 17)
Coast Citrus Distributors,* San Diego, Calif., has been awarded a maximum $15,000,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for fresh fruit and vegetable support. This contract is a competitive acquisition, and two offers were received. Location of performance is California with a May 19, 2015 performance completion date. This contract is an 18-month base period with two 18-month option-year periods. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE300-14-D-P230).
American Innotek Inc.*, Escondido, Calif., has been awarded a maximum $12,000,000 fixed-price with economic-price-adjustment contract for disposable solid waste relief bags. This contract is a sole-source acquisition. Location of performance is California with a Nov. 20, 2015 performance completion date. This contract is a two-year base period with three one-year option periods. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2013 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE8ES-14-D-0002).
Excel Garment Manufacturing LTD.**, El Paso, Texas, has been awarded a maximum $7,125,286 firm-fixed-price contract for men’s and women’s rip-stop airmen battle uniform coats and trousers, maternity coats, and slacks. This contract is a competitive acquisition, and five offers were received. Location of performance is Texas with a Nov. 19, 2014, performance completion date. This contract is a one-year base period with four one-year option periods. Using military service is Air Force. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM1C1-14-D-1054).
WASHINGTON HEADQUARTERS SERVICES
Muscogee Nation Business Enterprise, Okmuglee, Okla., is being awarded an $8,218,006 firm-fixed-price contract for life support services to the Department of Defense Task Force for Business and Stability Operations. These services will provide basic necessities, complex security, and personnel security details for safe travel in the immediate region around the Western Area of Responsibility in Afghanistan. Work will be performed primarily in Herat, Afghanistan. This contract was awarded as a sole-source acquisition. The estimated completion date is July 31, 2014. Washington Headquarters Services, Washington, D.C., is the contracting activity (HQ0034-13-C-0101).
*Small Business
**Small Business in HUBZone
NAVY
Pacific Architects and Engineers Applied Technologies, Fort Worth, Texas, is being awarded a $44,577,164 indefinite-delivery/indefinite-quantity contract for the development, testing, and installation of the SureTrak Surveillance System for the U.S. Navy, U.S. Air Force, the National Aeronautics and Space Administration, and governments in Africa under the foreign military sales program. The SureTrak System is a state-of-the-art, fully integrated, multi-sensor, data acquisition and display system used for airspace surveillance, waterway clearance, shoreline surveillance, and environmental monitoring functions. Work will be performed at the Naval Air Warfare Center (NAWC) Aircraft Division, Patuxent River, Md. (10 percent); NASA Wallops Test Facility, Wallops, Va. (4 percent); Vandenberg Air Force Base, Lompoc, Calif. (2 percent); Patrick Air Force Base, Fla. (2 percent); NAWC Weapons Division, Pt. Mugu, Calif. (1 percent); Naval Surface Warfare Center, Dahlgren, Va. (1 percent); and at various locations outside the United States (80 percent), and is expected to be completed in November 2017. No funds will be obligated at time of award; funds will be obligated on individual orders as they are issued. This contract was not competitively procured pursuant to 10 U.S.C. 2304(c)(1). The Naval Air Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity (N00421-14-D-0001).
The Boeing Co., Seattle, Wash., is being awarded a $26,879,866 modification to a previously awarded fixed-price-incentive-firm contract (N00019-12-C-0112) to exercise an option for the diminishing manufacturing sources re-design in support of the U.S. Navy P-8A Full Rate Production Lot I aircraft. Work will be performed in Seattle, Wash., and is expected to be completed in April 2017. Fiscal 2014 aircraft procurement, Navy contract funds in the amount of $26,879,866 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md. is the contracting activity.
Vigor Marine LLC, Portland, Ore., is being awarded a $12,954,046 firm-fixed-price contract for a 120-calendar day post shakedown availability, regular overhaul and dry-docking availability of missile range instrumentation ship the USNS Howard O. Lorenzen (T-AGM 25). Work will include fuel oil fill; transfer and overflow systems modifications; main diesel engine fuel oil service piping modifications; relocation of AC seawater pumps; docking and undocking; and underwater hull cleaning and painting. Lorenzen’s primary mission is to monitor missile launches and collect data. The contract includes options which, if exercised, would bring the cumulative value of this contract to $15,214,713. Work will be performed in Portland, Ore., and is expected to be completed by April 2014. Working capital contract funds in the amount of $12,954,046 are obligated for fiscal 2014 and will expire at the end of the current fiscal year. This contract was competitively procured with proposals solicited via the Military Sealift Command procurement page and the Federal Business Opportunities website, with two offers received. The U.S. Navy’s Military Sealift Command, Washington, D.C., is the contracting activity (N32205-14-C-2001).
Glidepath Technologies*, Harrisburg, Pa., is being awarded a $12,205,945 firm-fixed-price indefinite-delivery/indefinite-quantity contract for the procurement of up to 40 each AN/SPN-41B Azimuth and elevation radomes for the U.S. Navy. The radomes provide protection for the AN/SPN-41B transmitting set from environmental conditions existing on U.S. Navy aircraft carrier and amphibious assault class ships. Work will be performed in Harrisburg, Pa., and is expected to be completed in November 2018. Fiscal 2012 shipbuilding and conversion, Navy contract funds in the amount of $310,806 are being obligated on this award, none of which will expire at the end of the current year. This contract was competitively procured as a full and open competition via an electronic request for proposals, with one offer received. The Naval Air Warfare Center Aircraft Division, Lakehurst, N.J., is the contracting activity (N68335-14-D-0010).
General Dynamics National Steel and Shipbuilding Co., San Diego, Calif., is being awarded a $12,144,761 modification to previously awarded contract (N00024-12-C-2400) to exercise the option for the fitting-out availability of the USS Somerset (LPD 25). Specific efforts include engineering, planning, management, labor and material in support of the fitting-out availability. Work will be performed in San Diego, Calif., and is expected to be completed by December 2014. Fiscal 2014 shipbuilding and conversion, Navy; fiscal 2014 operations and maintenance, Navy; and fiscal 2013 other procurement, Navy funding in the amount of $730,431 will be obligated at time of award. Contract funds in the amount of $215,383 will expire at the end of the current fiscal year. This contract was competitively procured with four proposals received. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
The Boeing Co., Defense and Space Group, Seattle Wash., is being awarded at $10,119,307 firm-fixed-price requirements contract to repair 559 items required to support the P8 aircraft. Work will be performed in Dallas, Texas, and is expected to be completed by Sept. 30, 2015. No funds will be obligated at the time of award. Fiscal 2014 aircraft procurement funds will be used on task orders as they are issued. No funds will expire at the end of the current fiscal year. This sole source contract was not competitively procured in accordance with FAR 6.302-1. NAVSUP Weapon Systems Support, Philadelphia, Pa., is the contracting activity (N00383-14-D-006F).
General Dynamics Electric Boat Corp., Groton, Conn., is being awarded an $8,766,998 cost-plus-fixed-fee modification to the previously awarded contract (N00024-13-C-4311) to provide a Nuclear Regional Maintenance Department in support of operational nuclear submarines at the Naval Submarine Support Facility, Naval Submarine Base, New London, Conn. Electric Boat will continue to provide staff and operate a Nuclear Regional Maintenance Department at the Naval Submarine Base, in support of returning mission ready submarines to the fleet. The contract will also require project management, technical analysis, engineering and planning, training, inspection and nuclear services to accomplish intermediate-level nuclear submarine maintenance, modernization, and repairs in support of operational nuclear submarines, including maintaining and modernizing government-owned facilities and equipment and providing off-hull support of submarine maintenance. This contract includes options which, if exercised, would bring the cumulative value of this contract to $163,999,997. Work will be performed in New London, Conn., and is expected to be completed by March 2014. Fiscal 2014 operations and maintenance, Navy contract funds in the amount of $8,766,998 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S.C. 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
General Dynamics Electric Boat Corp., Groton, Conn., is being awarded an $8,000,000 cost-plus-fixed-fee modification to previously awarded contract (N00024-13-C-4308) to exercise options to provide non-nuclear submarine repair work on Groton based submarines under the New England Maintenance Manpower Initiative (NEMMI). Under the terms of the contract, Electric Boat will provide NEMMI tasks in support of non-nuclear maintenance, modernization and repair of operational nuclear powered submarines, floating dry docks, support and service craft and plant equipment assigned to the Naval Submarine Support Facility, New London, Conn. Work will be performed in New London, Conn., and is expected to be completed by December 2014. Fiscal 2014 operations and maintenance, Navy contract funds in the amount of $8,000,000 will be obligated at time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Exelis Inc., Fort Wayne, Ind., is being awarded a $7,028,919 indefinite-delivery/indefinite-quantity contract for the procurement of up to 62 radar signal simulators in support of the MH-60R and S70-B aircraft for the U.S Navy (33), the Government of Australia (27), and the Government of Brazil (2) under the foreign military sales program. Work will be performed in Fort Wayne, Ind., and is expected to be completed in November 2017. FMS funds in the amount of $1,093,932 are being obligated on this award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to the FAR 6.302-1. The Naval Air Warfare Center Aircraft Division, Lakehurst, N.J., is the contracting activity (N68335-14-D-0005).
ARMY
Carothers Construction, Inc., Oxford, Miss., was awarded a $24,622,000 firm-fixed-price contract with options, case contract line item numbers (CLINs) 0001-0003 and optional CLINs 0004-0007, 0009-0010 for the construction of a replacement general purpose warehouse at New Cumberland, Pa. Construction includes a permanent, non-combustible, general-purpose warehouse with concrete floors and 20 foot clear stacking height. Estimated completion date is July 18, 2015. Fiscal 2014 military construction funds in the amount of 24,622,000 were obligated. Bids were solicited via the Internet with nine received. Army Corps of Engineers, Baltimore, Md. is the contracting agency (W912DR-14-C-0005).
POND – FSB (joint venture), Norcross, Ga., was awarded a $13,000,000 firm-fixed-price, indefinite-delivery contract for architect, engineer services to support the Air Force KC-46A aircraft beddown within the continental United States. Estimated completion date is Nov. 19, 2018. Bids were solicited via the Internet with fifty-seven received. Funding and location will be determined with each order. Army Corps of Engineers, Mobile, Ala., is the contracting agency (W91278-14-D-0001).
DEFENSE LOGISTICS AGENCY
Sterling Foods, LLC, San Antonio, Texas, has been awarded a maximum $32,785,593 modification (P00006) exercising the second one-year option period on a one-year base contract (SPM3S1-12-D-Z100) with four one-year option periods for bakery components used in the meal-ready-to-eat program. This is a firm-fixed-price contract. Location of performance is Texas with a Dec. 31, 2014 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal year 2014 through fiscal year 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa. (Awarded Nov. 17)
Coast Citrus Distributors,* San Diego, Calif., has been awarded a maximum $15,000,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for fresh fruit and vegetable support. This contract is a competitive acquisition, and two offers were received. Location of performance is California with a May 19, 2015 performance completion date. This contract is an 18-month base period with two 18-month option-year periods. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE300-14-D-P230).
American Innotek Inc.*, Escondido, Calif., has been awarded a maximum $12,000,000 fixed-price with economic-price-adjustment contract for disposable solid waste relief bags. This contract is a sole-source acquisition. Location of performance is California with a Nov. 20, 2015 performance completion date. This contract is a two-year base period with three one-year option periods. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2013 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE8ES-14-D-0002).
Excel Garment Manufacturing LTD.**, El Paso, Texas, has been awarded a maximum $7,125,286 firm-fixed-price contract for men’s and women’s rip-stop airmen battle uniform coats and trousers, maternity coats, and slacks. This contract is a competitive acquisition, and five offers were received. Location of performance is Texas with a Nov. 19, 2014, performance completion date. This contract is a one-year base period with four one-year option periods. Using military service is Air Force. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM1C1-14-D-1054).
WASHINGTON HEADQUARTERS SERVICES
Muscogee Nation Business Enterprise, Okmuglee, Okla., is being awarded an $8,218,006 firm-fixed-price contract for life support services to the Department of Defense Task Force for Business and Stability Operations. These services will provide basic necessities, complex security, and personnel security details for safe travel in the immediate region around the Western Area of Responsibility in Afghanistan. Work will be performed primarily in Herat, Afghanistan. This contract was awarded as a sole-source acquisition. The estimated completion date is July 31, 2014. Washington Headquarters Services, Washington, D.C., is the contracting activity (HQ0034-13-C-0101).
*Small Business
**Small Business in HUBZone
GSA ADMINISTRATOR'S STATEMENT ON PROPERTY REDEVELOPMENT BEFORE HOUSE COMMITTEE
FROM: U.S. GENERAL SERVICES ADMINISTRATION
Federal Triangle South: Redeveloping Underutilized Federal Property
Statement of Dan Tangherlini
Administrator, General Services Administration
Before the House Committee on Transportation and Infrastructure,
Subcommittee on Economic Development, Public Buildings, and Emergency Management
November 19, 2013
Introduction
Good morning Chairman Barletta, Ranking Member Carson and Members of the Subcommittee. Thank you for inviting me to appear before you today.
At a time when budgets are tightening across the government, the mission of GSA to provide value to the government and the American people is more important than ever before. The savings and services we provide allow our partner agencies to focus their important resources on their critical missions. However, the fact is that in the current fiscal environment, reduced budgets are having an undeniable effect on the public infrastructure.
Today’s hearing looks to explore increased utilization of public-private partnerships, both at GSA and across government. In a very real way, GSA’s Public Buildings Service is a public-private partnership. Approximately 92 percent of the revenue in the Federal Buildings Fund is invested right back in to the private sector. These funds pay private sector landlords for existing lease obligations, private sector service companies to operate and maintain our buildings, and private sector design and construction firms to repair and construct our buildings.
At GSA, we are dealing with a building inventory that includes some of the oldest buildings in the country, buildings that not only need repairs to keep them in working order, but often require renovations to ensure that they are up to the standards of 21st century government.
Unfortunately, in recent fiscal years, GSA has been unable to use the rent that we receive from our partner agencies to fund the high priority mission needs of partner Federal agencies and to make basic repairs to the public buildings we hold in trust. In fact, we are now faced with cuts that could force GSA to default even on our existing lease obligations. In the face of these continued challenges, I am committed to exploring all of GSA’s authorities to reduce the cost of real estate, meet our partner Federal agencies’ needs, and repair and maintain our public buildings
Savings at GSA
GSA partners with private industry to deliver needed space and service to our fellow agencies. Utilizing our consolidated buying power and real estate expertise, we are able to drive down the costs of leasing, operating, and maintaining the government’s real estate footprint. GSA negotiates leases that, on average, are more than 11 percent below market rates.
By aggregating the space needs of a variety of agencies, we are also able to aggressively utilize our public buildings. Nationally, GSA’s vacancy rate is 3.1 percent, far below the private sector average of 17.4 percent. If our vacancy rate was as high as the private sector’s, it would cost the taxpayers an additional $1 billion this year alone.
New Tools
Beyond our traditional, ongoing partnership with private industry, GSA is interested in further exploring the use of flexible authorities that do not require upfront appropriations. To that end, and with direction from Congress and this Committee in particular, this year, GSA used its authority under Section 111 of the National Historic Preservation Act to outlease the Old Post Office. We reached an agreement for the investment of $200 million in private sector funds in the restoration of this 114-year old federal building. This significant investment will allow us to convert the Old Post Office into a mixed-use development that will serve the local community, preserve the historic facility, and save taxpayer dollars. We also will receive a base rent of $250,000 per month, which escalates at the Consumer Price Index over the term of the 60-year lease. The funds that GSA receives from the Old Post Office lease can be used for repair and upkeep of historic federal buildings across GSA’s inventory, saving additional taxpayer dollars.
We are also actively exploring new approaches to leverage the value of our older, outdated buildings to get new, highly efficient space for our partner agencies. Across the country, we have put in motion several potential exchange projects, including the J. Edgar Hoover building here in Washington, D.C., and, of course, the project that is the subject of today’s hearing: Federal Triangle South.
Federal Triangle South
Federal Triangle South is a proposed exchange that looks to leverage the value of several buildings in southwest DC to fund new, highly efficient space for the agencies currently housed there. Right now, the buildings that comprise this area represent a significant challenge as well as an opportunity for both GSA and the agencies that occupy them.
The Cotton Annex is empty. The GSA Regional Office Building at 7th and D Streets Southwest is an inefficient and unattractive space that was not constructed with the modern realities of a mobile workplace in mind. The Department of Energy Building is another facility that does not accommodate its tenants’ needs for space or facility amenities and underutilizes the valuable land on which it sits. The Federal Aviation Administration buildings are in the best shape of any of these facilities, but they too are not equipped for the needs of a 21st century government agency.
On December 2, 2012, GSA issued a Request for Information to identify creative solutions to the challenges presented by these buildings, and on February 4, 2013, we received 10 responses. GSA has evaluated these responses and developed a strategy for how best to proceed, and we expect to issue a Request for Proposals in the near term.
We are excited with the prospect that GSA’s initiative to exchange some of our existing inefficient and outdated properties for facilities that better serve today’s needs will facilitate the District’s effort to transform the properties at Federal Triangle South to create a mixed-use neighborhood connecting the National Mall to the Southwest Waterfront as envisioned in the SW Ecodistrict Plan, a plan jointly developed by the National Capital Planning Commission, GSA, and 15 federal and District government partner agencies. We believe we can both provide for the 21st Century space needs of Federal employees and create a place in which people will want to work, live, play, and learn. By exchanging underperforming federal property for the upgrade and renovation of other federal facilities, we can help replace a cold, sterile, utilitarian, single use enclave with a vibrant, diverse, and special community of its own.
In Federal Triangle South, we will be able to reexamine how the federal government uses these buildings and also reassess how this space fits into the surrounding community. Furthermore, as we look to address the needs of our partner agencies, we also have important opportunities to contribute to the economic development and sustainability of the places they call home. As the committee has noted, Federal Triangle South is a great example of where this approach can be successful.
Conclusion
GSA is committed to meet the challenge we have been given by both President Obama and Congress to make the entire government more efficient. That will require changing the way our buildings work, but it also means shrinking the federal footprint and creating more sustainable space. The current fiscal stress means that we simply cannot afford to do business as usual. We must look for new ways to maximize the value of our assets. Working together with industry, we have a chance to shape a better, more efficient government for the 21st century, as well as fuel the transformation of a core area of Washington DC.
I thank the committee for the opportunity to testify today and look forward to answering your questions.
Federal Triangle South: Redeveloping Underutilized Federal Property
Statement of Dan Tangherlini
Administrator, General Services Administration
Before the House Committee on Transportation and Infrastructure,
Subcommittee on Economic Development, Public Buildings, and Emergency Management
November 19, 2013
Introduction
Good morning Chairman Barletta, Ranking Member Carson and Members of the Subcommittee. Thank you for inviting me to appear before you today.
At a time when budgets are tightening across the government, the mission of GSA to provide value to the government and the American people is more important than ever before. The savings and services we provide allow our partner agencies to focus their important resources on their critical missions. However, the fact is that in the current fiscal environment, reduced budgets are having an undeniable effect on the public infrastructure.
Today’s hearing looks to explore increased utilization of public-private partnerships, both at GSA and across government. In a very real way, GSA’s Public Buildings Service is a public-private partnership. Approximately 92 percent of the revenue in the Federal Buildings Fund is invested right back in to the private sector. These funds pay private sector landlords for existing lease obligations, private sector service companies to operate and maintain our buildings, and private sector design and construction firms to repair and construct our buildings.
At GSA, we are dealing with a building inventory that includes some of the oldest buildings in the country, buildings that not only need repairs to keep them in working order, but often require renovations to ensure that they are up to the standards of 21st century government.
Unfortunately, in recent fiscal years, GSA has been unable to use the rent that we receive from our partner agencies to fund the high priority mission needs of partner Federal agencies and to make basic repairs to the public buildings we hold in trust. In fact, we are now faced with cuts that could force GSA to default even on our existing lease obligations. In the face of these continued challenges, I am committed to exploring all of GSA’s authorities to reduce the cost of real estate, meet our partner Federal agencies’ needs, and repair and maintain our public buildings
Savings at GSA
GSA partners with private industry to deliver needed space and service to our fellow agencies. Utilizing our consolidated buying power and real estate expertise, we are able to drive down the costs of leasing, operating, and maintaining the government’s real estate footprint. GSA negotiates leases that, on average, are more than 11 percent below market rates.
By aggregating the space needs of a variety of agencies, we are also able to aggressively utilize our public buildings. Nationally, GSA’s vacancy rate is 3.1 percent, far below the private sector average of 17.4 percent. If our vacancy rate was as high as the private sector’s, it would cost the taxpayers an additional $1 billion this year alone.
New Tools
Beyond our traditional, ongoing partnership with private industry, GSA is interested in further exploring the use of flexible authorities that do not require upfront appropriations. To that end, and with direction from Congress and this Committee in particular, this year, GSA used its authority under Section 111 of the National Historic Preservation Act to outlease the Old Post Office. We reached an agreement for the investment of $200 million in private sector funds in the restoration of this 114-year old federal building. This significant investment will allow us to convert the Old Post Office into a mixed-use development that will serve the local community, preserve the historic facility, and save taxpayer dollars. We also will receive a base rent of $250,000 per month, which escalates at the Consumer Price Index over the term of the 60-year lease. The funds that GSA receives from the Old Post Office lease can be used for repair and upkeep of historic federal buildings across GSA’s inventory, saving additional taxpayer dollars.
We are also actively exploring new approaches to leverage the value of our older, outdated buildings to get new, highly efficient space for our partner agencies. Across the country, we have put in motion several potential exchange projects, including the J. Edgar Hoover building here in Washington, D.C., and, of course, the project that is the subject of today’s hearing: Federal Triangle South.
Federal Triangle South
Federal Triangle South is a proposed exchange that looks to leverage the value of several buildings in southwest DC to fund new, highly efficient space for the agencies currently housed there. Right now, the buildings that comprise this area represent a significant challenge as well as an opportunity for both GSA and the agencies that occupy them.
The Cotton Annex is empty. The GSA Regional Office Building at 7th and D Streets Southwest is an inefficient and unattractive space that was not constructed with the modern realities of a mobile workplace in mind. The Department of Energy Building is another facility that does not accommodate its tenants’ needs for space or facility amenities and underutilizes the valuable land on which it sits. The Federal Aviation Administration buildings are in the best shape of any of these facilities, but they too are not equipped for the needs of a 21st century government agency.
On December 2, 2012, GSA issued a Request for Information to identify creative solutions to the challenges presented by these buildings, and on February 4, 2013, we received 10 responses. GSA has evaluated these responses and developed a strategy for how best to proceed, and we expect to issue a Request for Proposals in the near term.
We are excited with the prospect that GSA’s initiative to exchange some of our existing inefficient and outdated properties for facilities that better serve today’s needs will facilitate the District’s effort to transform the properties at Federal Triangle South to create a mixed-use neighborhood connecting the National Mall to the Southwest Waterfront as envisioned in the SW Ecodistrict Plan, a plan jointly developed by the National Capital Planning Commission, GSA, and 15 federal and District government partner agencies. We believe we can both provide for the 21st Century space needs of Federal employees and create a place in which people will want to work, live, play, and learn. By exchanging underperforming federal property for the upgrade and renovation of other federal facilities, we can help replace a cold, sterile, utilitarian, single use enclave with a vibrant, diverse, and special community of its own.
In Federal Triangle South, we will be able to reexamine how the federal government uses these buildings and also reassess how this space fits into the surrounding community. Furthermore, as we look to address the needs of our partner agencies, we also have important opportunities to contribute to the economic development and sustainability of the places they call home. As the committee has noted, Federal Triangle South is a great example of where this approach can be successful.
Conclusion
GSA is committed to meet the challenge we have been given by both President Obama and Congress to make the entire government more efficient. That will require changing the way our buildings work, but it also means shrinking the federal footprint and creating more sustainable space. The current fiscal stress means that we simply cannot afford to do business as usual. We must look for new ways to maximize the value of our assets. Working together with industry, we have a chance to shape a better, more efficient government for the 21st century, as well as fuel the transformation of a core area of Washington DC.
I thank the committee for the opportunity to testify today and look forward to answering your questions.
PRODUCE COMPANY TO PAY $4.2 MILLION TO RESOLVE CHARGES IT OVERBILLED DOD
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, November 19, 2013
FreshPoint Inc. to Pay $4.2 Million for Overbilling the Department of Defense for Produce
The Justice Department announced today that FreshPoint Inc., a Houston, Texas-based food distribution company and wholly owned subsidiary of Sysco Corp., has agreed to pay $4.2 million to resolve allegations that it overcharged the Department of Defense for fresh fruit and vegetables purchased under 15 separate contracts. The contracts were awarded to East Coast Fruit Company and subsequently performed by FreshPoint following FreshPoint’s acquisition of East Coast Fruit Company in 2007.
“The Department of Justice is committed to ensuring the integrity of federal contracts and will pursue contractors that knowingly overcharge the government for goods or services,” said Assistant Attorney General for the Department of Justice’s Civil Division Stuart F. Delery. “Contractors that do business with the government must do so honestly and fairly or suffer the consequences of their misconduct.”
“This settlement demonstrates one of the many types of fraud inflicted upon the American taxpayers,” said U.S. Attorney for the Southern District of Georgia Edward Tarver. “The U.S. Attorney’s Office will honor our commitment to vigorously enforce the False Claims Act in order to protect the financial soundness of our nation and its military.”
The settlement resolves allegations that from Dec. 17, 2007, through Sept. 11, 2009, FreshPoint overcharged the government on hundreds of sales of fresh fruit and vegetables by improperly inflating its prices to the government to reflect FreshPoint’s view of the prevailing market price of the goods at the time of sale. The government alleged that this practice violated FreshPoint’s contracts with the government that required FreshPoint to provide the produce at cost, plus a pre-established mark-up for profit, and did not allow FreshPoint to make additional price adjustments based upon perceived changes in market prices.
The allegations arose from a lawsuit filed under the whistleblower provisions of the False Claims Act, which allow private individuals to sue on behalf of the government and to share in the proceeds of any settlement or judgment. The whistleblower in this case, former FreshPoint employee Charles Hall, will receive $798,000.
This settlement was the result of a coordinated effort by the Justice Department’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Southern District of Georgia; the Defense Criminal Investigative Service; the Defense Contract Audit Agency and the Defense Logistics Agency Office of General Counsel. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Tuesday, November 19, 2013
FreshPoint Inc. to Pay $4.2 Million for Overbilling the Department of Defense for Produce
The Justice Department announced today that FreshPoint Inc., a Houston, Texas-based food distribution company and wholly owned subsidiary of Sysco Corp., has agreed to pay $4.2 million to resolve allegations that it overcharged the Department of Defense for fresh fruit and vegetables purchased under 15 separate contracts. The contracts were awarded to East Coast Fruit Company and subsequently performed by FreshPoint following FreshPoint’s acquisition of East Coast Fruit Company in 2007.
“The Department of Justice is committed to ensuring the integrity of federal contracts and will pursue contractors that knowingly overcharge the government for goods or services,” said Assistant Attorney General for the Department of Justice’s Civil Division Stuart F. Delery. “Contractors that do business with the government must do so honestly and fairly or suffer the consequences of their misconduct.”
“This settlement demonstrates one of the many types of fraud inflicted upon the American taxpayers,” said U.S. Attorney for the Southern District of Georgia Edward Tarver. “The U.S. Attorney’s Office will honor our commitment to vigorously enforce the False Claims Act in order to protect the financial soundness of our nation and its military.”
The settlement resolves allegations that from Dec. 17, 2007, through Sept. 11, 2009, FreshPoint overcharged the government on hundreds of sales of fresh fruit and vegetables by improperly inflating its prices to the government to reflect FreshPoint’s view of the prevailing market price of the goods at the time of sale. The government alleged that this practice violated FreshPoint’s contracts with the government that required FreshPoint to provide the produce at cost, plus a pre-established mark-up for profit, and did not allow FreshPoint to make additional price adjustments based upon perceived changes in market prices.
The allegations arose from a lawsuit filed under the whistleblower provisions of the False Claims Act, which allow private individuals to sue on behalf of the government and to share in the proceeds of any settlement or judgment. The whistleblower in this case, former FreshPoint employee Charles Hall, will receive $798,000.
This settlement was the result of a coordinated effort by the Justice Department’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Southern District of Georgia; the Defense Criminal Investigative Service; the Defense Contract Audit Agency and the Defense Logistics Agency Office of General Counsel. The claims settled by this agreement are allegations only, and there has been no determination of liability.
TROPICAL CYCLONE 04B HEADS FOR SOUTHEASTERN INDIA
FROM: NASA
Tropical Cyclone 04B Forms in Northern Indian Ocean
Cyclone 04B
NASA's TRMM satellite saw broken bands of thunderstorms with moderate rainfall (yellow, orange) in the northern and eastern quadrants of Tropical Cyclone 04B on Nov. 19, 2013 in this image overlaid on ESA's METEO-7 Satellite.
Image Credit: NRL/NASA/ESA.
The fourth tropical cyclone of the Northern Indian Ocean season formed and is headed for landfall in a couple of days in southeastern India. NASA's TRMM satellite saw broken bands of thunderstorms with moderate rainfall in the northern and eastern quadrants of Tropical Cyclone 04B on Nov. 19.
Tropical Cyclone 04B was located just 180 nautical miles south-southeast of Visakhapatnam, India near 15.0 north and 84.5 east at 1500 UTC/10 a.m. EST on Nov. 19. 04B had maximum sustained winds near 35 knots/40 mph/64 kph and is moving to the west at 8 knots/9.2 mph/14.8 kph.
Satellite imagery showed that the low-level center is organized and there is convection (building thunderstorms) flaring around the storm's center and there is broken bands of thunderstorms around the northern quadrant of the storm. TRMM satellite data showed rainfall rates were as high as 1.2 inches/30.4 mm per hour.
A microwave image from Nov. 19 at 1058 UTC/5:58 a.m. EST showed that the cyclone is well-defined and has curved bands of thunderstorms along the western quadrant.
The Joint Typhoon Warning Center or JTWC expects 04B to track slowly west slowly intensify before making landfall in India as a tropical storm. The JTWC expects landfall between Ongole south to Nellore, both cities in the southern India state of Andhra Pradesh late on Nov. 21.
ACTING ASSISTANT AG RAMAN'S SENATE TESTIMONY ON VIRTUAL CURRENCIES
FROM: U.S. JUSTICE DEPARTMENT
Monday, November 18, 2013
Statement of Mythili Raman Acting Assistant Attorney General U.S. Justice Department Criminal Division Before the Committee on Homeland Security and Governmental Affairs United States Senate for a Hearing Entitled “Beyond the Silk Road: Potential Risks, Threats and Promises of Virtual Currencies”
Chairman Carper, Ranking Member Coburn, and distinguished Members of the Committee: Thank you for the opportunity to appear before the Committee today to discuss the Department of Justice’s work regarding virtual currencies. I am honored to represent the Department at this hearing and to describe for you our approach to virtual currencies, our recent successes in prosecuting criminals who use virtual currencies for illicit purposes, and some of the challenges we face as virtual currency systems continue to evolve.
The Department of Justice recognizes that many virtual currency systems offer legitimate financial services and have the potential to promote more efficient global commerce. We have also seen, however, that certain aspects of virtual currencies appeal to criminals and present a host of new challenges to law enforcement.
The concept of virtual currencies is not new to the Department and, indeed, the Department has investigated and prosecuted the illicit use of virtual currencies since the late 1990s, when criminals first began using systems such as WebMoney and e-Gold to conduct their business. Over the last 15 years, however, virtual currencies have evolved and diversified significantly, challenging the Department to adapt our capabilities to deal with new systems and threats.
As with all emerging technologies, the Department has aggressively used our existing tools and capabilities to combat illegal activities involving virtual currencies. The Department has two primary law enforcement interests in virtual currency: (1) deterring and prosecuting criminals using virtual currency systems to move or hide money that is used to facilitate, or is derived from, criminal or terrorist acts, i.e., money laundering; and (2) investigating and prosecuting those virtual currency services that themselves violate laws aimed at illegal money transmission and money laundering. As I will describe in my testimony, the Department is committed to using all the tools at our disposal to ensure that those law enforcement interests are met, even as virtual currency systems evolve.
“Virtual currency” is a medium of exchange circulated over a network, typically the Internet, which is not backed by a government. These systems can be both centralized and decentralized.
Early centralized models, where the currency is controlled by a single private entity, have expanded and now encompass a wide range of business concepts. Some centralized virtual currencies take the form of digital precious metals, such as e-Gold and Pecunix, where users exchange digital currency units ostensibly backed by gold bullion or other precious metals. Others exist within popular online games or virtual worlds, such as Farmville, Second Life, or World of Warcraft. Still others are online payment systems such as WebMoney and Liberty Reserve, which are available generally outside of specific online communities and denominate users’ accounts in virtual currency rather than U.S. Dollars, Euros, or some other national currency. Decentralized systems such as Bitcoin, which have no centralized administrating authority and instead operate as peer-to-peer transaction networks, entered the scene relatively recently but are growing rapidly. A network of sites and services, including exchangers who buy and sell virtual currencies in exchange for national currencies or other mediums of value, have developed around virtual currency systems, as well.
Criminals are nearly always early adopters of new technologies and financial systems, and virtual currency is no exception. As virtual currency has grown, it has attracted illicit users along with legitimate ones. Our experience has shown that some criminals have exploited virtual currency systems because of the ability of those systems to conduct transfers quickly, securely, and often with a perceived higher level of anonymity than that afforded by traditional financial services. The irreversibility of many virtual currency transactions additionally appeals to a variety of individuals seeking to engage in illicit activity, as does their ability to send funds cross-border.
Cyber criminals were among the first illicit groups to take widespread advantage of virtual currency. We have seen that many players in the cyber underground rely on virtual currency to conduct financial transactions. Early users of virtual currency also included criminals involved in the trafficking of child pornography, credit card fraud, identity theft, and high-yield investment schemes. As virtual currency became more widespread and criminals became increasingly computer savvy, other criminal groups moved to capitalize on virtual currency, as well. There are now public examples of virtual currency being used by nearly every type of criminal imaginable.
It is not surprising that criminals are drawn to services that allow users to conduct financial transactions while remaining largely anonymous. And, indeed, some of the criminal activity occurs through online black markets, many of which operate as Tor hidden services. Tor hidden services are sites accessible only through Tor, an anonymizing network that masks users’ Internet traffic by routing it through a series of volunteer servers, called “nodes,” across the globe. Online black markets capitalize on Tor’s anonymizing features to offer a wide selection of illicit goods and services, ranging from pornographic images of children to dangerous narcotics to stolen credit card information.
At the same time, we have seen that though virtual currency systems are growing rapidly, few systems currently exist that could easily accommodate the hundreds of millions of dollars often moved in a single large-scale money laundering scheme. Transaction size is limited by the carrying capacity of the virtual currency systems and the exchangers. When taken in the aggregate, however, the relatively small dollar values associated with most illicit virtual currency transactions quickly add up. At their prime, e-Gold and Liberty Reserve, two virtual currency systems prosecuted by the Department, each moved the equivalent of over $1 billion in illegal proceeds annually. As virtual currencies grow, the capacity for larger single transactions grows, as well.
The Department has prosecuted several of these systems, such as e-Gold, based on evidence that they can be, and often are, intentionally designed to facilitate illegal activity. These services typically do not conduct any meaningful customer due diligence and do not screen for transactions related to money laundering or terrorist financing. At the same time, these complicit and illicit businesses allow users to conceal their identities and maintain high levels of anonymity during transactions.
To be clear, virtual currency is not necessarily synonymous with anonymity. A convertible virtual currency with appropriate anti-money laundering and know-your-customer controls, as required by U.S. law, can safeguard its system from exploitation by criminals and terrorists in the same way any other money services business could. As virtual currency systems develop, it is imperative to law enforcement interests that those systems comply with applicable anti-money laundering and know-your-customer controls.
Exploitation by malicious actors is a problem faced by all types of financial services and is not unique to virtual currency systems. Although malicious actors have utilized emerging technologies to further their criminal schemes, the Department has thus far been able to apply existing tools to ensure vigorous prosecution of these schemes.
The Department relies on money services business, money transmission, and anti-money laundering statutes to curtail this sort of unlawful activity. Many virtual currency systems, exchangers, and related services operate as money transmitters, which are part of a larger class of institutions called money services businesses. Money transmitters are required under 31 U.S.C. § 5330 to register with the Financial Crimes Enforcement Network (FinCEN). Most states also require money transmitters to obtain a state license in order to conduct business in the state. Any money transmitter that fails to register with FinCEN or to obtain the requisite state licensing may be subject to criminal prosecution under 18 U.S.C. § 1960. Additionally, the general money laundering and spending statutes, 18 U.S.C. §§ 1956 and 1957, cover financial transactions involving virtual currencies. Finally, where virtual currencies are used in furtherance of underlying criminal activity, the Department can rely on traditional criminal statutes proscribing that activity, such as narcotics, cybercrime, child exploitation, and firearms laws.
Some of the major prosecutions in recent years involving virtual currency services are as follows.
The Department first took major action against an illicit virtual currency service in 2007, when it indicted e-Gold and its three principal owners on charges related to money laundering and operating an unlicensed money transmitting business. E-Gold offered digital accounts purportedly backed by physical gold bullion. A valid e-mail address was the only information required to set up an account, allowing users to conduct highly anonymous international transactions over the Internet. As a result, e-Gold became a popular payment method for sellers of child pornography, operators of investment scams, and perpetrators of credit card and identity fraud. At its peak, e-Gold reportedly moved over $6 million each day for more than 2.5 million accounts. In 2008, e-Gold and the three individuals pleaded guilty.
Following the e-Gold indictment, several similar but smaller systems and exchangers were indicted or closed themselves down to evade law enforcement detection. According to publicly filed charging documents, an executive of one of those businesses, Arthur Budovsky, then set out to create Liberty Reserve, an improved centralized virtual currency variation allegedly designed to evade U.S. law enforcement. Among other things, Liberty Reserve operated offshore –it was based in Costa Rica--and purportedly recommended that its customers use money exchangers located in countries without significant governmental money-laundering oversight or regulation. Moreover, Budovsky, the principal founder of Liberty Reserve, was so committed to avoiding the reach of U.S. law that, according to the indictment, in 2011, he formally renounced his U.S. citizenship and became a Costa Rican citizen in order to avoid facing justice in the United States .
Despite Budovsky’s alleged efforts, earlier this year, the Department indicted Liberty Reserve and its executives, including Budovsky, for running a $6 billion money laundering operation. In a coordinated action, the Department of the Treasury identified Liberty Reserve as a financial institution of primary money laundering concern under Section 311 of the USA PATRIOT Act, effectively cutting it off from the U.S. financial system.
According to the indictment, Liberty Reserve allowed users to send and receive funds with a high level of anonymity by not requiring users to validate their identities and allowing users to make untraceable fund transfers in exchange for a privacy fee. Many of the transactions were sent to or from users in the United States, but Liberty Reserve never registered with the appropriate U.S. authorities. As revealed in the Department’s filings, Liberty Reserve became a system of choice for cyber criminals and was used in a wide array of illegal activity, including credit card fraud, identity theft, investment fraud, computer hacking, and child pornography. As a result of the Department’s action, the site was shuttered and effectively put out of business, and five defendants were arrested. One is in custody in the United States, one has entered a guilty plea, and three others, including the lead defendant Budovsky, are pending extradition. The case exemplifies the Department’s resolve to pursue purported major money laundering facilitators, even those who hide offshore.
Just last month, the Department took action against one of the most popular online black markets, Silk Road. Allegedly operated by a U.S. citizen living in California at the time of his arrest, Silk Road accepted bitcoins exclusively as a payment mechanism on its site. The Department’s complaint alleges that, in less than three years, Silk Road served as a venue for over 100,000 buyers to purchase hundreds of kilograms of illegal drugs and other illicit goods from several thousand drug dealers and other criminal vendors. The site also purportedly laundered the proceeds of these transactions, amounting to hundreds of millions of dollars in bitcoins. In addition to arresting the site’s operator and shutting down the service, the Department to date has seized over 170 thousand bitcoins, valued as of Friday, November 15, 2013, at over $70 million.
A separate indictment charges Silk Road’s operator with drug distribution conspiracy, attempted witness murder, and using interstate commerce facilities in the commission of murder-for-hire. With regard to the murder-related charges, the indictment alleges that the Silk Road operator paid an undercover federal agent to murder one of the operator’s employees.
The cases I just described illustrate not only Department successes in combating illicit use of virtual currency, but also many of the challenges investigators face when they encounter these systems, some of which may ultimately require additional legal or regulatory tools.
Virtual currency allows users to send money across the globe without dealing with a traditional financial institution. While this feature provides several benefits for legitimate customers, it can significantly complicate law enforcement efforts to follow the money.
Virtual currency systems have a global reach and clientele. Virtual currency businesses can cater to U.S. clientele while operating on the other side of the world. Investigations into illicit virtual currency businesses therefore often require considerable cooperation from international partners. The Liberty Reserve investigation and takedown, for example, involved coordinated law enforcement action in 17 countries.
The international nature of the transactions poses an additional challenge where the overseas regulatory regime treats virtual currency differently or, as is true in some cases, fails to cover it at all. While this challenge may diminish with the Financial Action Task Force’s recent guidance addressing the need for all countries to develop a risk-based approach to new payment products and services, incongruent regulatory regimes will likely remain a challenge when dealing with virtual currency services overseas.
Among the most significant challenges the Department faces in dealing with virtual currency is the difficulty in obtaining customer records. Because decentralized systems lack any sort of administering authority to collect user information or receive legal process, investigators must rely on information collected by other sources, such as exchangers. Even if the target used a centralized system or exchanger, however, accurate customer records may still be difficult to obtain, or may not exist at all. Illicit users are typically attracted to systems with lax anti-money laundering and know-your-customer controls. These services often attempt to evade U.S. action by operating out of countries that have poor regulatory oversight and are less willing to cooperate with U.S. law enforcement. Even if the system at issue operates in a country with effective regulation and a cooperative relationship with the United States, the legal process for obtaining foreign records is relatively slow when compared to the near-instantaneous speed at which the virtual currency user can send the funds to another jurisdiction.
A final challenge arises from the link between virtual currency and encryption. Decentralized virtual currencies typically rely on an encryption algorithm, rather than a central authority, to administer the currency. These encryption-based currencies, also known as cryptocurrencies, lack a central administering authority that might otherwise possess valuable evidence. In addition, users of these currencies often encrypt their digital wallets, complicating our efforts to seize and forfeit criminal proceeds.
The Department recognizes that virtual currency’s ability to facilitate the global movement of funds by a wide array of illicit actors necessitates a comprehensive and collaborative approach with our domestic and international partners. To promote such coordination, the Department is an active participant in the Virtual Currency Emerging Threats Working Group (VCET). VCET was founded by the Federal Bureau of Investigation (FBI) in early 2012 to mitigate the cross-programmatic threats arising from illicit actors’ use of virtual currency systems. The group leverages the collective subject matter expertise of its members to address issues arising from illicit actors’ use of virtual currency, and deconflicts and shares information and concerns. VCET members represent an array of U.S. Government agencies, including, within the Department, the FBI, the Drug Enforcement Administration, multiple U.S. Attorney’s Offices, and the Criminal Division’s Asset Forfeiture and Money Laundering Section and Computer Crime and Intellectual Property Section.
The Department contributes to several additional interagency groups concerning virtual currencies and emerging payment systems, including the New Payment Methods Ad Hoc Working Group, a subgroup of the Terrorist Finance Working Group, led by the State Department. The FBI specifically has issued numerous intelligence products related to virtual currency, many of which were coauthored with other members of the U.S. Intelligence Community.
The Department is committed to working with our regulatory partners to ensure appropriate coordination on regulatory issues related to virtual currency. The Department participated in meetings and discussions with FinCEN regarding the July 2011 Final Rule on Money Services Businesses and its applicability to virtual currencies, as well as the related March 18, 2013, FinCEN guidance. The Department regards FinCEN’s regulation of many virtual currency services as money transmitters, as well as the resulting applicability of anti-money laundering and know-your-customer requirements under the Bank Secrecy Act, as crucial tools in preventing malicious actors from exploiting virtual currency systems in furtherance of illicit activity.
The Department works closely with FinCEN and the Department of Treasury to coordinate enforcement actions when appropriate. This relationship allowed the Department to unseal the Liberty Reserve indictment in coordination with Treasury’s announcement naming the company as a financial institution of primary money laundering concern under Section 311 of the USA PATRIOT Act. Such coordinated actions are integral tools in combating illicit finance.
The Department anticipates that virtual currency will continue to evolve and grow in popularity. That growth inevitably will be accompanied by an increase in illicit transactions, which makes it critical that virtual currency services understand their legal obligations and requirements. The Department is encouraged by the increasing prominence of legitimate virtual currency services that are attempting to comply with U.S. law. While a number of services have registered at the federal level, many are still struggling with implementing appropriate anti-money laundering, know-your-customer, and customer due diligence programs, as well as complying with state-level regulations and licensing requirements. As members of the U.S. financial community, virtual currency services can and must safeguard themselves from exploitation by criminals and terrorists by implementing legally required anti-money laundering and know-your-customer controls.
As the Administration’s Strategy to Combat Transnational Organized Crime recognizes, transnational organized crime networks are increasingly involved in cybercrime, and can imperil consumers’ faith in emerging digital systems. We must also pay close attention to the critical role of facilitators who cross both the licit and illicit worlds and provide services to legitimate customers and criminals alike.
The Department recognizes that malicious actors are often resourceful, and even legitimate virtual currency services can become unwitting conduits for illicit transactions when these actors are able to defeat or circumvent anti-money laundering controls. Outreach to these systems, much as the Department conducts with the formal financial sector, is an important tool in combating the exploitation of the systems for criminal and terrorist purposes. Because centralized payment systems and exchangers often interact with the traditional financial sector and hold bank accounts at major financial institutions, the range of such Department outreach extends to the financial services community at large, complementing the outreach and training efforts of FinCEN, the primary BSA regulator, and the Department of the Treasury. Department of Justice personnel routinely provide trainings to the private sector, as well as to domestic and international law enforcement and intelligence personnel, and specifically address virtual currency.
Law enforcement, Congress, and regulators must remain vigilant to ensure that the U.S. legal and regulatory structure is sufficiently robust to cover decentralized virtual currencies. The Department looks forward to working with Congress to ensure that law enforcement continues to have the tools necessary to combat the use of virtual currency for illicit purposes.
Chairman Carper and Ranking Member Coburn, I thank you for this opportunity to discuss the Department’s work on virtual currency.
I look forward to any questions that you may have.
Monday, November 18, 2013
Statement of Mythili Raman Acting Assistant Attorney General U.S. Justice Department Criminal Division Before the Committee on Homeland Security and Governmental Affairs United States Senate for a Hearing Entitled “Beyond the Silk Road: Potential Risks, Threats and Promises of Virtual Currencies”
Chairman Carper, Ranking Member Coburn, and distinguished Members of the Committee: Thank you for the opportunity to appear before the Committee today to discuss the Department of Justice’s work regarding virtual currencies. I am honored to represent the Department at this hearing and to describe for you our approach to virtual currencies, our recent successes in prosecuting criminals who use virtual currencies for illicit purposes, and some of the challenges we face as virtual currency systems continue to evolve.
The Department of Justice recognizes that many virtual currency systems offer legitimate financial services and have the potential to promote more efficient global commerce. We have also seen, however, that certain aspects of virtual currencies appeal to criminals and present a host of new challenges to law enforcement.
The concept of virtual currencies is not new to the Department and, indeed, the Department has investigated and prosecuted the illicit use of virtual currencies since the late 1990s, when criminals first began using systems such as WebMoney and e-Gold to conduct their business. Over the last 15 years, however, virtual currencies have evolved and diversified significantly, challenging the Department to adapt our capabilities to deal with new systems and threats.
As with all emerging technologies, the Department has aggressively used our existing tools and capabilities to combat illegal activities involving virtual currencies. The Department has two primary law enforcement interests in virtual currency: (1) deterring and prosecuting criminals using virtual currency systems to move or hide money that is used to facilitate, or is derived from, criminal or terrorist acts, i.e., money laundering; and (2) investigating and prosecuting those virtual currency services that themselves violate laws aimed at illegal money transmission and money laundering. As I will describe in my testimony, the Department is committed to using all the tools at our disposal to ensure that those law enforcement interests are met, even as virtual currency systems evolve.
“Virtual currency” is a medium of exchange circulated over a network, typically the Internet, which is not backed by a government. These systems can be both centralized and decentralized.
Early centralized models, where the currency is controlled by a single private entity, have expanded and now encompass a wide range of business concepts. Some centralized virtual currencies take the form of digital precious metals, such as e-Gold and Pecunix, where users exchange digital currency units ostensibly backed by gold bullion or other precious metals. Others exist within popular online games or virtual worlds, such as Farmville, Second Life, or World of Warcraft. Still others are online payment systems such as WebMoney and Liberty Reserve, which are available generally outside of specific online communities and denominate users’ accounts in virtual currency rather than U.S. Dollars, Euros, or some other national currency. Decentralized systems such as Bitcoin, which have no centralized administrating authority and instead operate as peer-to-peer transaction networks, entered the scene relatively recently but are growing rapidly. A network of sites and services, including exchangers who buy and sell virtual currencies in exchange for national currencies or other mediums of value, have developed around virtual currency systems, as well.
Criminals are nearly always early adopters of new technologies and financial systems, and virtual currency is no exception. As virtual currency has grown, it has attracted illicit users along with legitimate ones. Our experience has shown that some criminals have exploited virtual currency systems because of the ability of those systems to conduct transfers quickly, securely, and often with a perceived higher level of anonymity than that afforded by traditional financial services. The irreversibility of many virtual currency transactions additionally appeals to a variety of individuals seeking to engage in illicit activity, as does their ability to send funds cross-border.
Cyber criminals were among the first illicit groups to take widespread advantage of virtual currency. We have seen that many players in the cyber underground rely on virtual currency to conduct financial transactions. Early users of virtual currency also included criminals involved in the trafficking of child pornography, credit card fraud, identity theft, and high-yield investment schemes. As virtual currency became more widespread and criminals became increasingly computer savvy, other criminal groups moved to capitalize on virtual currency, as well. There are now public examples of virtual currency being used by nearly every type of criminal imaginable.
It is not surprising that criminals are drawn to services that allow users to conduct financial transactions while remaining largely anonymous. And, indeed, some of the criminal activity occurs through online black markets, many of which operate as Tor hidden services. Tor hidden services are sites accessible only through Tor, an anonymizing network that masks users’ Internet traffic by routing it through a series of volunteer servers, called “nodes,” across the globe. Online black markets capitalize on Tor’s anonymizing features to offer a wide selection of illicit goods and services, ranging from pornographic images of children to dangerous narcotics to stolen credit card information.
At the same time, we have seen that though virtual currency systems are growing rapidly, few systems currently exist that could easily accommodate the hundreds of millions of dollars often moved in a single large-scale money laundering scheme. Transaction size is limited by the carrying capacity of the virtual currency systems and the exchangers. When taken in the aggregate, however, the relatively small dollar values associated with most illicit virtual currency transactions quickly add up. At their prime, e-Gold and Liberty Reserve, two virtual currency systems prosecuted by the Department, each moved the equivalent of over $1 billion in illegal proceeds annually. As virtual currencies grow, the capacity for larger single transactions grows, as well.
The Department has prosecuted several of these systems, such as e-Gold, based on evidence that they can be, and often are, intentionally designed to facilitate illegal activity. These services typically do not conduct any meaningful customer due diligence and do not screen for transactions related to money laundering or terrorist financing. At the same time, these complicit and illicit businesses allow users to conceal their identities and maintain high levels of anonymity during transactions.
To be clear, virtual currency is not necessarily synonymous with anonymity. A convertible virtual currency with appropriate anti-money laundering and know-your-customer controls, as required by U.S. law, can safeguard its system from exploitation by criminals and terrorists in the same way any other money services business could. As virtual currency systems develop, it is imperative to law enforcement interests that those systems comply with applicable anti-money laundering and know-your-customer controls.
Exploitation by malicious actors is a problem faced by all types of financial services and is not unique to virtual currency systems. Although malicious actors have utilized emerging technologies to further their criminal schemes, the Department has thus far been able to apply existing tools to ensure vigorous prosecution of these schemes.
The Department relies on money services business, money transmission, and anti-money laundering statutes to curtail this sort of unlawful activity. Many virtual currency systems, exchangers, and related services operate as money transmitters, which are part of a larger class of institutions called money services businesses. Money transmitters are required under 31 U.S.C. § 5330 to register with the Financial Crimes Enforcement Network (FinCEN). Most states also require money transmitters to obtain a state license in order to conduct business in the state. Any money transmitter that fails to register with FinCEN or to obtain the requisite state licensing may be subject to criminal prosecution under 18 U.S.C. § 1960. Additionally, the general money laundering and spending statutes, 18 U.S.C. §§ 1956 and 1957, cover financial transactions involving virtual currencies. Finally, where virtual currencies are used in furtherance of underlying criminal activity, the Department can rely on traditional criminal statutes proscribing that activity, such as narcotics, cybercrime, child exploitation, and firearms laws.
Some of the major prosecutions in recent years involving virtual currency services are as follows.
The Department first took major action against an illicit virtual currency service in 2007, when it indicted e-Gold and its three principal owners on charges related to money laundering and operating an unlicensed money transmitting business. E-Gold offered digital accounts purportedly backed by physical gold bullion. A valid e-mail address was the only information required to set up an account, allowing users to conduct highly anonymous international transactions over the Internet. As a result, e-Gold became a popular payment method for sellers of child pornography, operators of investment scams, and perpetrators of credit card and identity fraud. At its peak, e-Gold reportedly moved over $6 million each day for more than 2.5 million accounts. In 2008, e-Gold and the three individuals pleaded guilty.
Following the e-Gold indictment, several similar but smaller systems and exchangers were indicted or closed themselves down to evade law enforcement detection. According to publicly filed charging documents, an executive of one of those businesses, Arthur Budovsky, then set out to create Liberty Reserve, an improved centralized virtual currency variation allegedly designed to evade U.S. law enforcement. Among other things, Liberty Reserve operated offshore –it was based in Costa Rica--and purportedly recommended that its customers use money exchangers located in countries without significant governmental money-laundering oversight or regulation. Moreover, Budovsky, the principal founder of Liberty Reserve, was so committed to avoiding the reach of U.S. law that, according to the indictment, in 2011, he formally renounced his U.S. citizenship and became a Costa Rican citizen in order to avoid facing justice in the United States .
Despite Budovsky’s alleged efforts, earlier this year, the Department indicted Liberty Reserve and its executives, including Budovsky, for running a $6 billion money laundering operation. In a coordinated action, the Department of the Treasury identified Liberty Reserve as a financial institution of primary money laundering concern under Section 311 of the USA PATRIOT Act, effectively cutting it off from the U.S. financial system.
According to the indictment, Liberty Reserve allowed users to send and receive funds with a high level of anonymity by not requiring users to validate their identities and allowing users to make untraceable fund transfers in exchange for a privacy fee. Many of the transactions were sent to or from users in the United States, but Liberty Reserve never registered with the appropriate U.S. authorities. As revealed in the Department’s filings, Liberty Reserve became a system of choice for cyber criminals and was used in a wide array of illegal activity, including credit card fraud, identity theft, investment fraud, computer hacking, and child pornography. As a result of the Department’s action, the site was shuttered and effectively put out of business, and five defendants were arrested. One is in custody in the United States, one has entered a guilty plea, and three others, including the lead defendant Budovsky, are pending extradition. The case exemplifies the Department’s resolve to pursue purported major money laundering facilitators, even those who hide offshore.
Just last month, the Department took action against one of the most popular online black markets, Silk Road. Allegedly operated by a U.S. citizen living in California at the time of his arrest, Silk Road accepted bitcoins exclusively as a payment mechanism on its site. The Department’s complaint alleges that, in less than three years, Silk Road served as a venue for over 100,000 buyers to purchase hundreds of kilograms of illegal drugs and other illicit goods from several thousand drug dealers and other criminal vendors. The site also purportedly laundered the proceeds of these transactions, amounting to hundreds of millions of dollars in bitcoins. In addition to arresting the site’s operator and shutting down the service, the Department to date has seized over 170 thousand bitcoins, valued as of Friday, November 15, 2013, at over $70 million.
A separate indictment charges Silk Road’s operator with drug distribution conspiracy, attempted witness murder, and using interstate commerce facilities in the commission of murder-for-hire. With regard to the murder-related charges, the indictment alleges that the Silk Road operator paid an undercover federal agent to murder one of the operator’s employees.
The cases I just described illustrate not only Department successes in combating illicit use of virtual currency, but also many of the challenges investigators face when they encounter these systems, some of which may ultimately require additional legal or regulatory tools.
Virtual currency allows users to send money across the globe without dealing with a traditional financial institution. While this feature provides several benefits for legitimate customers, it can significantly complicate law enforcement efforts to follow the money.
Virtual currency systems have a global reach and clientele. Virtual currency businesses can cater to U.S. clientele while operating on the other side of the world. Investigations into illicit virtual currency businesses therefore often require considerable cooperation from international partners. The Liberty Reserve investigation and takedown, for example, involved coordinated law enforcement action in 17 countries.
The international nature of the transactions poses an additional challenge where the overseas regulatory regime treats virtual currency differently or, as is true in some cases, fails to cover it at all. While this challenge may diminish with the Financial Action Task Force’s recent guidance addressing the need for all countries to develop a risk-based approach to new payment products and services, incongruent regulatory regimes will likely remain a challenge when dealing with virtual currency services overseas.
Among the most significant challenges the Department faces in dealing with virtual currency is the difficulty in obtaining customer records. Because decentralized systems lack any sort of administering authority to collect user information or receive legal process, investigators must rely on information collected by other sources, such as exchangers. Even if the target used a centralized system or exchanger, however, accurate customer records may still be difficult to obtain, or may not exist at all. Illicit users are typically attracted to systems with lax anti-money laundering and know-your-customer controls. These services often attempt to evade U.S. action by operating out of countries that have poor regulatory oversight and are less willing to cooperate with U.S. law enforcement. Even if the system at issue operates in a country with effective regulation and a cooperative relationship with the United States, the legal process for obtaining foreign records is relatively slow when compared to the near-instantaneous speed at which the virtual currency user can send the funds to another jurisdiction.
A final challenge arises from the link between virtual currency and encryption. Decentralized virtual currencies typically rely on an encryption algorithm, rather than a central authority, to administer the currency. These encryption-based currencies, also known as cryptocurrencies, lack a central administering authority that might otherwise possess valuable evidence. In addition, users of these currencies often encrypt their digital wallets, complicating our efforts to seize and forfeit criminal proceeds.
The Department recognizes that virtual currency’s ability to facilitate the global movement of funds by a wide array of illicit actors necessitates a comprehensive and collaborative approach with our domestic and international partners. To promote such coordination, the Department is an active participant in the Virtual Currency Emerging Threats Working Group (VCET). VCET was founded by the Federal Bureau of Investigation (FBI) in early 2012 to mitigate the cross-programmatic threats arising from illicit actors’ use of virtual currency systems. The group leverages the collective subject matter expertise of its members to address issues arising from illicit actors’ use of virtual currency, and deconflicts and shares information and concerns. VCET members represent an array of U.S. Government agencies, including, within the Department, the FBI, the Drug Enforcement Administration, multiple U.S. Attorney’s Offices, and the Criminal Division’s Asset Forfeiture and Money Laundering Section and Computer Crime and Intellectual Property Section.
The Department contributes to several additional interagency groups concerning virtual currencies and emerging payment systems, including the New Payment Methods Ad Hoc Working Group, a subgroup of the Terrorist Finance Working Group, led by the State Department. The FBI specifically has issued numerous intelligence products related to virtual currency, many of which were coauthored with other members of the U.S. Intelligence Community.
The Department is committed to working with our regulatory partners to ensure appropriate coordination on regulatory issues related to virtual currency. The Department participated in meetings and discussions with FinCEN regarding the July 2011 Final Rule on Money Services Businesses and its applicability to virtual currencies, as well as the related March 18, 2013, FinCEN guidance. The Department regards FinCEN’s regulation of many virtual currency services as money transmitters, as well as the resulting applicability of anti-money laundering and know-your-customer requirements under the Bank Secrecy Act, as crucial tools in preventing malicious actors from exploiting virtual currency systems in furtherance of illicit activity.
The Department works closely with FinCEN and the Department of Treasury to coordinate enforcement actions when appropriate. This relationship allowed the Department to unseal the Liberty Reserve indictment in coordination with Treasury’s announcement naming the company as a financial institution of primary money laundering concern under Section 311 of the USA PATRIOT Act. Such coordinated actions are integral tools in combating illicit finance.
The Department anticipates that virtual currency will continue to evolve and grow in popularity. That growth inevitably will be accompanied by an increase in illicit transactions, which makes it critical that virtual currency services understand their legal obligations and requirements. The Department is encouraged by the increasing prominence of legitimate virtual currency services that are attempting to comply with U.S. law. While a number of services have registered at the federal level, many are still struggling with implementing appropriate anti-money laundering, know-your-customer, and customer due diligence programs, as well as complying with state-level regulations and licensing requirements. As members of the U.S. financial community, virtual currency services can and must safeguard themselves from exploitation by criminals and terrorists by implementing legally required anti-money laundering and know-your-customer controls.
As the Administration’s Strategy to Combat Transnational Organized Crime recognizes, transnational organized crime networks are increasingly involved in cybercrime, and can imperil consumers’ faith in emerging digital systems. We must also pay close attention to the critical role of facilitators who cross both the licit and illicit worlds and provide services to legitimate customers and criminals alike.
The Department recognizes that malicious actors are often resourceful, and even legitimate virtual currency services can become unwitting conduits for illicit transactions when these actors are able to defeat or circumvent anti-money laundering controls. Outreach to these systems, much as the Department conducts with the formal financial sector, is an important tool in combating the exploitation of the systems for criminal and terrorist purposes. Because centralized payment systems and exchangers often interact with the traditional financial sector and hold bank accounts at major financial institutions, the range of such Department outreach extends to the financial services community at large, complementing the outreach and training efforts of FinCEN, the primary BSA regulator, and the Department of the Treasury. Department of Justice personnel routinely provide trainings to the private sector, as well as to domestic and international law enforcement and intelligence personnel, and specifically address virtual currency.
Law enforcement, Congress, and regulators must remain vigilant to ensure that the U.S. legal and regulatory structure is sufficiently robust to cover decentralized virtual currencies. The Department looks forward to working with Congress to ensure that law enforcement continues to have the tools necessary to combat the use of virtual currency for illicit purposes.
Chairman Carper and Ranking Member Coburn, I thank you for this opportunity to discuss the Department’s work on virtual currency.
I look forward to any questions that you may have.
JOINT STATEMENT FOLLOWING EU-US JUSTICE AND HOME AFFAIRS MINISTERIAL MEETING
FROM: U.S. JUSTICE DEPARTMENT
Monday, November 18, 2013
Joint Statement Following the EU-US Justice and Home Affairs Ministerial Meeting
Attorney General Eric Holder and Acting Department of Homeland Security (DHS) Secretary Rand Beers today hosted an EU/U.S. Justice and Home Affairs Ministerial with their counterparts in the European Union: Lithuanian Minister of Justice Juozas Bernatonis and Lithuanian Vice Minister of Interior Elvinas Jankevicius representing the Lithuanian Presidency of the Council of the EU; Greek Minister of Justice, Transparency and Human Rights Charalampos Athanasiou representing the incoming Greek Presidency of the EU; and European Commission Vice President Viviane Reding and Commissioner Cecilia Malmström representing the EU Commission.
The U.S. and EU together released the following statement on the meeting:
“Our meeting was constructive and productive. We discussed a broad array of issues critical to the European Union and the United States, including: addressing the problem of sexual abuse of children online; coordinating work on counter-terrorism and security issues; countering violent extremism; expanding cooperation in criminal matters; joint efforts in the areas of cybercrime and cybersecurity; and mobility, migration and border issues. In addition, we discussed the rights of victims of crime, the rights of persons with disabilities and the prosecution of hate crimes.
Of special note, we discussed the threat posed by foreign fighters going to third countries, in particular Syria, and the possible response to address it. We intend to promote close information sharing between our respective agencies, as well as coordinated initiatives in third countries. We also discussed efforts of the U.S. and the EU in countering violent extremism, and agreed to intensify our cooperation.
Our meeting also addressed data protection, and issues related to alleged activities of U.S. intelligence agencies. We together recognize that this has led to regrettable tensions in the transatlantic relationship, which we seek to lessen. In order to protect all our citizens, it is of the utmost importance to address these issues by restoring trust and reinforcing our cooperation on justice and home affairs issues.
The EU and the U.S. are allies. Since 9/11 and subsequent terrorist attacks in Europe, the EU and U.S. have stepped up cooperation, including in the areas of police and criminal justice. Sharing relevant information, including personal data, while ensuring a high level of protection, is an essential element of this cooperation, and it must continue.
We are therefore, as a matter of urgency, committed to advancing rapidly in the negotiations for a meaningful and comprehensive data protection umbrella agreement in the field of law enforcement. The agreement would act as a basis to facilitate transfers of data in the context of police and judicial cooperation in criminal matters, by ensuring a high level of personal data protection for U.S. and EU citizens. We are committed to working to resolve the remaining issues raised by both sides, including judicial redress (a critical issue for the EU). Our aim is to complete the negotiations on the agreement ahead of summer 2014.
We also underline the value of the EU-U.S. Mutual Legal Assistance Agreement. We reiterate our commitment to ensure that it is used broadly and effectively for evidence purposes in criminal proceedings. There were also discussions on the need to clarify that personal data held by private entities in the territory of the other party will not be accessed by law enforcement agencies outside of legally authorized channels. We also agree to review the functioning of the Mutual Legal Assistance Agreement, as contemplated in the Agreement, and to consult each other whenever needed.
We take stock of the work done by the joint EU-U.S. ad hoc Working Group. We underline the importance of the ongoing reviews in the U.S. of U.S. Intelligence collection activities, including the review of activities by the Privacy and Civil Liberties Oversight Board (PCLOB) and the President’s Review Group on Intelligence and Communications Technology (Review Group). The access that has been given to the EU side of the ad hoc Working Group to officials in the U.S. intelligence community, the PCLOB, the Review Group, and U.S. congressional intelligence committees will help restore trust. This included constructive discussions about oversight practices in the U.S. The EU welcomes that the U.S. is considering adopting additional safeguards in the intelligence context that also would benefit EU citizens.
As these ongoing processes continue, they contribute to restoring trust, and to ensuring that we continue our vital law enforcement cooperation in order to protect EU and U.S. citizens.”
Monday, November 18, 2013
Joint Statement Following the EU-US Justice and Home Affairs Ministerial Meeting
Attorney General Eric Holder and Acting Department of Homeland Security (DHS) Secretary Rand Beers today hosted an EU/U.S. Justice and Home Affairs Ministerial with their counterparts in the European Union: Lithuanian Minister of Justice Juozas Bernatonis and Lithuanian Vice Minister of Interior Elvinas Jankevicius representing the Lithuanian Presidency of the Council of the EU; Greek Minister of Justice, Transparency and Human Rights Charalampos Athanasiou representing the incoming Greek Presidency of the EU; and European Commission Vice President Viviane Reding and Commissioner Cecilia Malmström representing the EU Commission.
The U.S. and EU together released the following statement on the meeting:
“Our meeting was constructive and productive. We discussed a broad array of issues critical to the European Union and the United States, including: addressing the problem of sexual abuse of children online; coordinating work on counter-terrorism and security issues; countering violent extremism; expanding cooperation in criminal matters; joint efforts in the areas of cybercrime and cybersecurity; and mobility, migration and border issues. In addition, we discussed the rights of victims of crime, the rights of persons with disabilities and the prosecution of hate crimes.
Of special note, we discussed the threat posed by foreign fighters going to third countries, in particular Syria, and the possible response to address it. We intend to promote close information sharing between our respective agencies, as well as coordinated initiatives in third countries. We also discussed efforts of the U.S. and the EU in countering violent extremism, and agreed to intensify our cooperation.
Our meeting also addressed data protection, and issues related to alleged activities of U.S. intelligence agencies. We together recognize that this has led to regrettable tensions in the transatlantic relationship, which we seek to lessen. In order to protect all our citizens, it is of the utmost importance to address these issues by restoring trust and reinforcing our cooperation on justice and home affairs issues.
The EU and the U.S. are allies. Since 9/11 and subsequent terrorist attacks in Europe, the EU and U.S. have stepped up cooperation, including in the areas of police and criminal justice. Sharing relevant information, including personal data, while ensuring a high level of protection, is an essential element of this cooperation, and it must continue.
We are therefore, as a matter of urgency, committed to advancing rapidly in the negotiations for a meaningful and comprehensive data protection umbrella agreement in the field of law enforcement. The agreement would act as a basis to facilitate transfers of data in the context of police and judicial cooperation in criminal matters, by ensuring a high level of personal data protection for U.S. and EU citizens. We are committed to working to resolve the remaining issues raised by both sides, including judicial redress (a critical issue for the EU). Our aim is to complete the negotiations on the agreement ahead of summer 2014.
We also underline the value of the EU-U.S. Mutual Legal Assistance Agreement. We reiterate our commitment to ensure that it is used broadly and effectively for evidence purposes in criminal proceedings. There were also discussions on the need to clarify that personal data held by private entities in the territory of the other party will not be accessed by law enforcement agencies outside of legally authorized channels. We also agree to review the functioning of the Mutual Legal Assistance Agreement, as contemplated in the Agreement, and to consult each other whenever needed.
We take stock of the work done by the joint EU-U.S. ad hoc Working Group. We underline the importance of the ongoing reviews in the U.S. of U.S. Intelligence collection activities, including the review of activities by the Privacy and Civil Liberties Oversight Board (PCLOB) and the President’s Review Group on Intelligence and Communications Technology (Review Group). The access that has been given to the EU side of the ad hoc Working Group to officials in the U.S. intelligence community, the PCLOB, the Review Group, and U.S. congressional intelligence committees will help restore trust. This included constructive discussions about oversight practices in the U.S. The EU welcomes that the U.S. is considering adopting additional safeguards in the intelligence context that also would benefit EU citizens.
As these ongoing processes continue, they contribute to restoring trust, and to ensuring that we continue our vital law enforcement cooperation in order to protect EU and U.S. citizens.”
U.S. LABOR DEPARTMENT AWARDS $14.7 MILLION IN GRANTS TO CURB CHILD LABOR
FROM: U.S. LABOR DEPARTMENT
US Department of Labor awards $14.7 million to ILO for two multi-country grants to reduce child labor
WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today announced the award of two cooperative agreements to the International Labor Organization to address the worst forms of child labor by providing direct technical assistance to governments in 20 countries and support for updating statistics related to child labor in another 100 countries.
The department awarded $7.7 million for a cooperative agreement to build the capacity of governments to reduce child labor in at least 10 countries, including Bangladesh, Paraguay, Philippines, Suriname and Uganda. The project will: support efforts to bring national legislation on child labor issues into compliance with international standards, improve monitoring and enforcement of child labor laws and policies, and improve national plans of action on child labor. The project will also enhance implementation of policies and programs to increase access to basic education, vocational training, social protection services and poverty reduction initiatives for populations vulnerable to the worst forms of child labor. The project will collaborate with key government agencies and ministries at the national, regional and local levels.
The department awarded a second cooperative agreement for $7 million to collect and analyze data on working children in 10 countries, including Armenia, El Salvador, Ethiopia, Georgia, Jamaica, Malawi, Morocco, Peru, Tanzania and an additional country to be identified. The project will: conduct surveys to collect data on child labor at the national or sector-level, develop policy appraisals, prepare and publish public-use data files, and build capacity of national statistical offices to conduct research and analyze data on child labor. The project will also update statistics on children's work and education for approximately 100 countries.
Since 1995, ILAB projects have rescued approximately 1.7 million children from exploitive child labor. The Labor Department has funded 269 such projects implemented by more than 65 organizations in 91 countries. ILAB currently oversees more than $220 million of active programming to combat the worst forms of child labor.
US Department of Labor awards $14.7 million to ILO for two multi-country grants to reduce child labor
WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today announced the award of two cooperative agreements to the International Labor Organization to address the worst forms of child labor by providing direct technical assistance to governments in 20 countries and support for updating statistics related to child labor in another 100 countries.
The department awarded $7.7 million for a cooperative agreement to build the capacity of governments to reduce child labor in at least 10 countries, including Bangladesh, Paraguay, Philippines, Suriname and Uganda. The project will: support efforts to bring national legislation on child labor issues into compliance with international standards, improve monitoring and enforcement of child labor laws and policies, and improve national plans of action on child labor. The project will also enhance implementation of policies and programs to increase access to basic education, vocational training, social protection services and poverty reduction initiatives for populations vulnerable to the worst forms of child labor. The project will collaborate with key government agencies and ministries at the national, regional and local levels.
The department awarded a second cooperative agreement for $7 million to collect and analyze data on working children in 10 countries, including Armenia, El Salvador, Ethiopia, Georgia, Jamaica, Malawi, Morocco, Peru, Tanzania and an additional country to be identified. The project will: conduct surveys to collect data on child labor at the national or sector-level, develop policy appraisals, prepare and publish public-use data files, and build capacity of national statistical offices to conduct research and analyze data on child labor. The project will also update statistics on children's work and education for approximately 100 countries.
Since 1995, ILAB projects have rescued approximately 1.7 million children from exploitive child labor. The Labor Department has funded 269 such projects implemented by more than 65 organizations in 91 countries. ILAB currently oversees more than $220 million of active programming to combat the worst forms of child labor.
GRAND JURY RETURNS INDICTMENT AGAINST 6 INVESTORS FOR ROLES IN TAX LIEN SALE BID RIGGING
FROM: U.S. JUSTICE DEPARTMENT
Investigation Has Yielded 20 Charges to Date
WASHINGTON — A federal grand jury in Newark, N.J., returned an indictment against six investors for their roles in a conspiracy to rig bids at auctions conducted by New Jersey municipalities for the sale of tax liens, the Department of Justice announced.
The indictment, filed today in U.S. District Court for the District of New Jersey in Newark, charges four individuals, Joseph Wolfson, Gregg Gehring, James Jeffers Jr. and Robert Jeffrey, and two entities, Betty Simon Trustee LLC and Richard Simon Trustee, with participating in a conspiracy to rig bids at tax lien auctions in New Jersey. According to the indictment, from at least as early as 1998 and continuing until as late as February 2009, the investors participated in a conspiracy to rig bids at auctions for the sale of municipal tax liens in New Jersey by agreeing to allocate among certain bidders which liens each would bid on. The indictment alleges that the investors proceeded to submit bids in accordance with the agreements and purchased tax liens at collusive and non-competitive interest rates.
Joseph Wolfson, of Margate, N.J., was a part-owner of two entities that invested in municipal tax liens, Betty Simon Trustee and Richard Simon Trustee, both of Northfield, N.J. Gregg Gehring, of Newton, N.J., was employed by a major tax lien investment company as a vice president. James Jeffers Jr., of Burlington, N.J., was a bidder for Crusader Servicing Corp., which pleaded guilty to its role in the conspiracy in September 2012, and also a bidder for Crusader’s successor corporation. Robert Jeffrey, of Bradenton, Fla., was a bidder for both Crusader and its successor corporation.
“The individuals and entities charged today demonstrated a blatant disregard for the competitive process by allocating the purchase of certain municipal tax liens by, from time to time, flipping a coin, drawing numbers out of a hat or drawing from a deck of cards,” said Leslie C. Overton, Deputy Assistant Attorney General for the Antitrust Division. “The Antitrust Division remains committed to prosecuting those who thwart the competitive bidding process.”
The department said that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected municipal tax liens offered at public auctions at non-competitive interest rates. When the owner of real property fails to pay taxes on that property, the municipality in which the property is located may attach a lien for the amount of the unpaid taxes. If the taxes remain unpaid after a waiting period, the lien may be sold at auction. State law requires that investors bid on the interest rate delinquent property owners will pay upon redemption. By law, the bid opens at 18 percent interest and, through a competitive bidding process, can be driven down to zero percent. If a lien remains unpaid after a certain period of time, the investor who purchased the lien may begin foreclosure proceedings against the property to which the lien is attached. Since the conspiracy permitted the conspirators to purchase tax liens with limited competition, each conspirator was able to obtain liens which earned a higher interest rate. Property owners were therefore made to pay higher interest on their tax debts than they would have paid had their liens been purchased in open and honest competition, the department said.
The indictment alleges, among other things, that from at least as early as 1998 and continuing until as late as February 2009, prior to the commencement of certain tax lien auctions in New Jersey, the investors and their co-conspirators agreed not to compete for the purchase of certain municipal tax liens.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act violation may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than the $1 million statutory maximum.
Including today’s charges, 20 individuals and entities have been charged as part of an ongoing investigation into bid rigging or fraud related to municipal tax lien auctions in New Jersey. To date, 11 individuals – Isadore H. May, Richard J. Pisciotta Jr., William A. Collins, Robert W. Stein, David M. Farber, Robert E. Rothman, Stephen E. Hruby, David Butler, Norman T. Remick, Robert U. Del Vecchio Sr., and Michael Mastellone – and three companies, DSBD LLC, Crusader Servicing Corp., and Mercer S.M.E. Inc., have pleaded guilty aspart of this investigation.
Today’s charge is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This ongoing investigation is being conducted by the Antitrust Division’s New York Field Office and the FBI’s Atlantic City, N.J., office.
Investigation Has Yielded 20 Charges to Date
WASHINGTON — A federal grand jury in Newark, N.J., returned an indictment against six investors for their roles in a conspiracy to rig bids at auctions conducted by New Jersey municipalities for the sale of tax liens, the Department of Justice announced.
The indictment, filed today in U.S. District Court for the District of New Jersey in Newark, charges four individuals, Joseph Wolfson, Gregg Gehring, James Jeffers Jr. and Robert Jeffrey, and two entities, Betty Simon Trustee LLC and Richard Simon Trustee, with participating in a conspiracy to rig bids at tax lien auctions in New Jersey. According to the indictment, from at least as early as 1998 and continuing until as late as February 2009, the investors participated in a conspiracy to rig bids at auctions for the sale of municipal tax liens in New Jersey by agreeing to allocate among certain bidders which liens each would bid on. The indictment alleges that the investors proceeded to submit bids in accordance with the agreements and purchased tax liens at collusive and non-competitive interest rates.
Joseph Wolfson, of Margate, N.J., was a part-owner of two entities that invested in municipal tax liens, Betty Simon Trustee and Richard Simon Trustee, both of Northfield, N.J. Gregg Gehring, of Newton, N.J., was employed by a major tax lien investment company as a vice president. James Jeffers Jr., of Burlington, N.J., was a bidder for Crusader Servicing Corp., which pleaded guilty to its role in the conspiracy in September 2012, and also a bidder for Crusader’s successor corporation. Robert Jeffrey, of Bradenton, Fla., was a bidder for both Crusader and its successor corporation.
“The individuals and entities charged today demonstrated a blatant disregard for the competitive process by allocating the purchase of certain municipal tax liens by, from time to time, flipping a coin, drawing numbers out of a hat or drawing from a deck of cards,” said Leslie C. Overton, Deputy Assistant Attorney General for the Antitrust Division. “The Antitrust Division remains committed to prosecuting those who thwart the competitive bidding process.”
The department said that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected municipal tax liens offered at public auctions at non-competitive interest rates. When the owner of real property fails to pay taxes on that property, the municipality in which the property is located may attach a lien for the amount of the unpaid taxes. If the taxes remain unpaid after a waiting period, the lien may be sold at auction. State law requires that investors bid on the interest rate delinquent property owners will pay upon redemption. By law, the bid opens at 18 percent interest and, through a competitive bidding process, can be driven down to zero percent. If a lien remains unpaid after a certain period of time, the investor who purchased the lien may begin foreclosure proceedings against the property to which the lien is attached. Since the conspiracy permitted the conspirators to purchase tax liens with limited competition, each conspirator was able to obtain liens which earned a higher interest rate. Property owners were therefore made to pay higher interest on their tax debts than they would have paid had their liens been purchased in open and honest competition, the department said.
The indictment alleges, among other things, that from at least as early as 1998 and continuing until as late as February 2009, prior to the commencement of certain tax lien auctions in New Jersey, the investors and their co-conspirators agreed not to compete for the purchase of certain municipal tax liens.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act violation may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than the $1 million statutory maximum.
Including today’s charges, 20 individuals and entities have been charged as part of an ongoing investigation into bid rigging or fraud related to municipal tax lien auctions in New Jersey. To date, 11 individuals – Isadore H. May, Richard J. Pisciotta Jr., William A. Collins, Robert W. Stein, David M. Farber, Robert E. Rothman, Stephen E. Hruby, David Butler, Norman T. Remick, Robert U. Del Vecchio Sr., and Michael Mastellone – and three companies, DSBD LLC, Crusader Servicing Corp., and Mercer S.M.E. Inc., have pleaded guilty aspart of this investigation.
Today’s charge is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This ongoing investigation is being conducted by the Antitrust Division’s New York Field Office and the FBI’s Atlantic City, N.J., office.
JPMORGAN SETTLES RMBS CASE WITH GOVERNEMNT FOR $13 BILLION
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, November 19, 2013
Justice Department, Federal and State Partners Secure Record $13 Billion Global Settlement with JPMorgan for Misleading Investors About Securities Containing Toxic Mortgages
The Justice Department, along with federal and state partners, today announced a $13 billion settlement with JPMorgan - the largest settlement with a single entity in American history - to resolve federal and state civil claims arising out of the packaging, marketing, sale and issuance of residential mortgage-backed securities (RMBS) by JPMorgan, Bear Stearns and Washington Mutual prior to Jan. 1, 2009. As part of the settlement, JPMorgan acknowledged it made serious misrepresentations to the public - including the investing public - about numerous RMBS transactions. The resolution also requires JPMorgan to provide much needed relief to underwater homeowners and potential homebuyers, including those in distressed areas of the country. The settlement does not absolve JPMorgan or its employees from facing any possible criminal charges.
This settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group.
“Without a doubt, the conduct uncovered in this investigation helped sow the seeds of the mortgage meltdown,” said Attorney General Eric Holder. “JPMorgan was not the only financial institution during this period to knowingly bundle toxic loans and sell them to unsuspecting investors, but that is no excuse for the firm’s behavior. The size and scope of this resolution should send a clear signal that the Justice Department’s financial fraud investigations are far from over. No firm, no matter how profitable, is above the law, and the passage of time is no shield from accountability. I want to personally thank the RMBS Working Group for its tireless work not only in this case, but also in the investigations that remain ongoing.”
The settlement includes a statement of facts, in which JPMorgan acknowledges that it regularly represented to RMBS investors that the mortgage loans in various securities complied with underwriting guidelines. Contrary to those representations, as the statement of facts explains, on a number of different occasions, JPMorgan employees knew that the loans in question did not comply with those guidelines and were not otherwise appropriate for securitization, but they allowed the loans to be securitized – and those securities to be sold – without disclosing this information to investors. This conduct, along with similar conduct by other banks that bundled toxic loans into securities and misled investors who purchased those securities, contributed to the financial crisis.
“Through this $13 billion resolution, we are demanding accountability and requiring remediation from those who helped create a financial storm that devastated millions of Americans,” said Associate Attorney General Tony West. “The conduct JPMorgan has acknowledged - packaging risky home loans into securities, then selling them without disclosing their low quality to investors - contributed to the wreckage of the financial crisis. By requiring JPMorgan both to pay the largest FIRREA penalty in history and provide needed consumer relief to areas hardest hit by the financial crisis, we rectify some of that harm today.”
Of the record-breaking $13 billion resolution, $9 billion will be paid to settle federal and state civil claims by various entities related to RMBS. Of that $9 billion, JPMorgan will pay $2 billion as a civil penalty to settle the Justice Department claims under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), $1.4 billion to settle federal and state securities claims by the National Credit Union Administration (NCUA), $515.4 million to settle federal and state securities claims by the Federal Deposit Insurance Corporation (FDIC), $4 billion to settle federal and state claims by the Federal Housing Finance Agency (FHFA), $298.9 million to settle claims by the State of California, $19.7 million to settle claims by the State of Delaware, $100 million to settle claims by the State of Illinois, $34.4 million to settle claims by the Commonwealth of Massachusetts, and $613.8 million to settle claims by the State of New York.
JPMorgan will pay out the remaining $4 billion in the form of relief to aid consumers harmed by the unlawful conduct of JPMorgan, Bear Stearns and Washington Mutual. That relief will take various forms, including principal forgiveness, loan modification, targeted originations and efforts to reduce blight. An independent monitor will be appointed to determine whether JPMorgan is satisfying its obligations. If JPMorgan fails to live up to its agreement by Dec. 31, 2017, it must pay liquidated damages in the amount of the shortfall to NeighborWorks America, a non-profit organization and leader in providing affordable housing and facilitating community development.
The U.S. Attorney’s Offices for the Eastern District of California and Eastern District of Pennsylvania and the Justice Department’s Civil Division, along with the U.S. Attorney’s Office for the Northern District of Texas, conducted investigations into JPMorgan’s, Washington Mutual’s and Bear Stearns’ practices related to the sale and issuance of RMBS between 2005 and 2008.
“Today’s global settlement underscores the power of FIRREA and other civil enforcement tools for combatting financial fraud,” said Assistant Attorney General for the Civil Division Stuart F. Delery, co-chair of the RMBS Working Group. “The Civil Division, working with the U.S. Attorney’s Offices and our state and agency partners, will continue to use every available resource to aggressively pursue those responsible for the financial crisis.”
“Abuses in the mortgage-backed securities industry helped turn a crisis in the housing market into an international financial crisis,” said U.S. Attorney for the Eastern District of California Benjamin Wagner. “The impacts were staggering. JPMorgan sold securities knowing that many of the loans backing those certificates were toxic. Credit unions, banks and other investor victims across the country, including many in the Eastern District of California, continue to struggle with losses they suffered as a result. In the Eastern District of California, we have worked hard to prosecute fraud in the mortgage industry. We are equally committed to holding accountable those in the securities industry who profited through the sale of defective mortgages.”
“Today's settlement represents another significant step towards holding accountable those banks which exploited the residential mortgage-backed securities market and harmed numerous individuals and entities in the process,” said U.S. Attorney for the Eastern District of Pennsylvania Zane David Memeger. “These banks packaged and sold toxic mortgage-backed securities, which violated the law and contributed to the financial crisis. It is particularly important that JPMorgan, after assuming the significant assets of Washington Mutual Bank, is now also held responsible for the unscrupulous and deceptive conduct of Washington Mutual, one of the biggest players in the mortgage-backed securities market.”
This settlement resolves only civil claims arising out of the RMBS packaged, marketed, sold and issued by JPMorgan, Bear Stearns and Washington Mutual. The agreement does not release individuals from civil charges, nor does it release JPMorgan or any individuals from potential criminal prosecution. In addition, as part of the settlement, JPMorgan has pledged to fully cooperate in investigations related to the conduct covered by the agreement.
To keep JPMorgan from seeking reimbursement from the federal government for any money it pays pursuant to this resolution, the Justice Department required language in the settlement agreement which prohibits JPMorgan from demanding indemnification from the FDIC, both in its capacity as a corporate entity and as the receiver for Washington Mutual.
“The settlement announced today will provide a significant recovery for six FDIC receiverships. It also fully protects the FDIC from indemnification claims out of this settlement,” said FDIC Chairman Martin J. Gruenberg. “The FDIC will continue to pursue litigation where necessary in order to recover as much as possible for FDIC receiverships, money that is ultimately returned to the Deposit Insurance Fund, uninsured depositors and creditors of failed banks.”
“NCUA’s Board extends our thanks and appreciation to our attorneys and to the Department of Justice, who have worked closely together for more than three years to bring this matter to a successful resolution,” said NCUA Board Chairman Debbie Matz. “The faulty mortgage-backed securities created and packaged by JPMorgan and other institutions created a crisis in the credit union industry, and we’re pleased a measure of accountability has been reached.”
“JPMorgan and the banks it bought securitized billions of dollars of defective mortgages,” said Acting FHFA Inspector General Michael P. Stephens. “Investors, including Fannie Mae and Freddie Mac, suffered enormous losses by purchasing RMBS from JPMorgan, Washington Mutual and Bear Stearns not knowing about those defects. Today’s settlement is a significant, but by no means final step by FHFA-OIG and its law enforcement partners to hold accountable those who committed acts of fraud and deceit. We are proud to have worked with the Department of Justice, the U.S. attorneys in Sacramento and Philadelphia and the New York and California state attorneys general; they have been great partners and we look forward to our continued work together.”
The attorneys general of New York, California, Delaware, Illinois and Massachusetts also conducted related investigations that were critical to bringing about this settlement.
“Since my first day in office, I have insisted that there must be accountability for the misconduct that led to the crash of the housing market and the collapse of the American economy,” said New York Attorney General Eric Schneiderman, Co-Chair of the RMBS Working Group. “This historic deal, which will bring long overdue relief to homeowners around the country and across New York, is exactly what our working group was created to do. We refused to allow systemic frauds that harmed so many New York homeowners and investors to simply be forgotten, and as a result we’ve won a major victory today in the fight to hold those who caused the financial crisis accountable.”
“JP Morgan Chase profited by giving California’s pension funds incomplete information about mortgage investments,” California Attorney General Kamala D. Harris said. “This settlement returns the money to California’s pension funds that JP Morgan wrongfully took from them.”
“Our financial system only works when everyone plays by the rules,” said Delaware Attorney General Beau Biden. “Today, as a result of our coordinated investigations, we are holding accountable one of the financial institutions that, by breaking those rules, helped cause the economic crisis that brought our nation to its knees. Even as the American people recover from this crisis, we will continue to seek accountability on their behalf.”
“We are still cleaning up the mess that Wall Street made with its reckless investment schemes and fraudulent conduct,” said Illinois Attorney General Lisa Madigan. “Today’s settlement with JPMorgan will assist Illinois in recovering its losses from the dangerous and deceptive securities that put our economy on the path to destruction.”
“This is a historic settlement that will help us to hold accountable those investment banks that played a role in creating and exacerbating the housing crisis,” said Massachusetts Attorney General Martha Coakley. “We appreciate the work of the Department of Justice and the other enforcement agencies in bringing about this resolution and look forward to continuing to work together in other securitization cases.”
The RMBS Working Group is a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis. The RMBS Working Group brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, 10 U.S. attorney’s offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than 10 state attorneys general offices around the country.
The RMBS Working Group is led by five co-chairs: Assistant Attorney General for the Civil Division Stuart Delery, Acting Assistant Attorney General for the Criminal Division Mythili Raman, Co-Director of the SEC’s Division of Enforcement George Canellos, U.S. Attorney for the District of Colorado John Walsh and New York Attorney General Eric Schneiderman.
Tuesday, November 19, 2013
Justice Department, Federal and State Partners Secure Record $13 Billion Global Settlement with JPMorgan for Misleading Investors About Securities Containing Toxic Mortgages
The Justice Department, along with federal and state partners, today announced a $13 billion settlement with JPMorgan - the largest settlement with a single entity in American history - to resolve federal and state civil claims arising out of the packaging, marketing, sale and issuance of residential mortgage-backed securities (RMBS) by JPMorgan, Bear Stearns and Washington Mutual prior to Jan. 1, 2009. As part of the settlement, JPMorgan acknowledged it made serious misrepresentations to the public - including the investing public - about numerous RMBS transactions. The resolution also requires JPMorgan to provide much needed relief to underwater homeowners and potential homebuyers, including those in distressed areas of the country. The settlement does not absolve JPMorgan or its employees from facing any possible criminal charges.
This settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group.
“Without a doubt, the conduct uncovered in this investigation helped sow the seeds of the mortgage meltdown,” said Attorney General Eric Holder. “JPMorgan was not the only financial institution during this period to knowingly bundle toxic loans and sell them to unsuspecting investors, but that is no excuse for the firm’s behavior. The size and scope of this resolution should send a clear signal that the Justice Department’s financial fraud investigations are far from over. No firm, no matter how profitable, is above the law, and the passage of time is no shield from accountability. I want to personally thank the RMBS Working Group for its tireless work not only in this case, but also in the investigations that remain ongoing.”
The settlement includes a statement of facts, in which JPMorgan acknowledges that it regularly represented to RMBS investors that the mortgage loans in various securities complied with underwriting guidelines. Contrary to those representations, as the statement of facts explains, on a number of different occasions, JPMorgan employees knew that the loans in question did not comply with those guidelines and were not otherwise appropriate for securitization, but they allowed the loans to be securitized – and those securities to be sold – without disclosing this information to investors. This conduct, along with similar conduct by other banks that bundled toxic loans into securities and misled investors who purchased those securities, contributed to the financial crisis.
“Through this $13 billion resolution, we are demanding accountability and requiring remediation from those who helped create a financial storm that devastated millions of Americans,” said Associate Attorney General Tony West. “The conduct JPMorgan has acknowledged - packaging risky home loans into securities, then selling them without disclosing their low quality to investors - contributed to the wreckage of the financial crisis. By requiring JPMorgan both to pay the largest FIRREA penalty in history and provide needed consumer relief to areas hardest hit by the financial crisis, we rectify some of that harm today.”
Of the record-breaking $13 billion resolution, $9 billion will be paid to settle federal and state civil claims by various entities related to RMBS. Of that $9 billion, JPMorgan will pay $2 billion as a civil penalty to settle the Justice Department claims under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), $1.4 billion to settle federal and state securities claims by the National Credit Union Administration (NCUA), $515.4 million to settle federal and state securities claims by the Federal Deposit Insurance Corporation (FDIC), $4 billion to settle federal and state claims by the Federal Housing Finance Agency (FHFA), $298.9 million to settle claims by the State of California, $19.7 million to settle claims by the State of Delaware, $100 million to settle claims by the State of Illinois, $34.4 million to settle claims by the Commonwealth of Massachusetts, and $613.8 million to settle claims by the State of New York.
JPMorgan will pay out the remaining $4 billion in the form of relief to aid consumers harmed by the unlawful conduct of JPMorgan, Bear Stearns and Washington Mutual. That relief will take various forms, including principal forgiveness, loan modification, targeted originations and efforts to reduce blight. An independent monitor will be appointed to determine whether JPMorgan is satisfying its obligations. If JPMorgan fails to live up to its agreement by Dec. 31, 2017, it must pay liquidated damages in the amount of the shortfall to NeighborWorks America, a non-profit organization and leader in providing affordable housing and facilitating community development.
The U.S. Attorney’s Offices for the Eastern District of California and Eastern District of Pennsylvania and the Justice Department’s Civil Division, along with the U.S. Attorney’s Office for the Northern District of Texas, conducted investigations into JPMorgan’s, Washington Mutual’s and Bear Stearns’ practices related to the sale and issuance of RMBS between 2005 and 2008.
“Today’s global settlement underscores the power of FIRREA and other civil enforcement tools for combatting financial fraud,” said Assistant Attorney General for the Civil Division Stuart F. Delery, co-chair of the RMBS Working Group. “The Civil Division, working with the U.S. Attorney’s Offices and our state and agency partners, will continue to use every available resource to aggressively pursue those responsible for the financial crisis.”
“Abuses in the mortgage-backed securities industry helped turn a crisis in the housing market into an international financial crisis,” said U.S. Attorney for the Eastern District of California Benjamin Wagner. “The impacts were staggering. JPMorgan sold securities knowing that many of the loans backing those certificates were toxic. Credit unions, banks and other investor victims across the country, including many in the Eastern District of California, continue to struggle with losses they suffered as a result. In the Eastern District of California, we have worked hard to prosecute fraud in the mortgage industry. We are equally committed to holding accountable those in the securities industry who profited through the sale of defective mortgages.”
“Today's settlement represents another significant step towards holding accountable those banks which exploited the residential mortgage-backed securities market and harmed numerous individuals and entities in the process,” said U.S. Attorney for the Eastern District of Pennsylvania Zane David Memeger. “These banks packaged and sold toxic mortgage-backed securities, which violated the law and contributed to the financial crisis. It is particularly important that JPMorgan, after assuming the significant assets of Washington Mutual Bank, is now also held responsible for the unscrupulous and deceptive conduct of Washington Mutual, one of the biggest players in the mortgage-backed securities market.”
This settlement resolves only civil claims arising out of the RMBS packaged, marketed, sold and issued by JPMorgan, Bear Stearns and Washington Mutual. The agreement does not release individuals from civil charges, nor does it release JPMorgan or any individuals from potential criminal prosecution. In addition, as part of the settlement, JPMorgan has pledged to fully cooperate in investigations related to the conduct covered by the agreement.
To keep JPMorgan from seeking reimbursement from the federal government for any money it pays pursuant to this resolution, the Justice Department required language in the settlement agreement which prohibits JPMorgan from demanding indemnification from the FDIC, both in its capacity as a corporate entity and as the receiver for Washington Mutual.
“The settlement announced today will provide a significant recovery for six FDIC receiverships. It also fully protects the FDIC from indemnification claims out of this settlement,” said FDIC Chairman Martin J. Gruenberg. “The FDIC will continue to pursue litigation where necessary in order to recover as much as possible for FDIC receiverships, money that is ultimately returned to the Deposit Insurance Fund, uninsured depositors and creditors of failed banks.”
“NCUA’s Board extends our thanks and appreciation to our attorneys and to the Department of Justice, who have worked closely together for more than three years to bring this matter to a successful resolution,” said NCUA Board Chairman Debbie Matz. “The faulty mortgage-backed securities created and packaged by JPMorgan and other institutions created a crisis in the credit union industry, and we’re pleased a measure of accountability has been reached.”
“JPMorgan and the banks it bought securitized billions of dollars of defective mortgages,” said Acting FHFA Inspector General Michael P. Stephens. “Investors, including Fannie Mae and Freddie Mac, suffered enormous losses by purchasing RMBS from JPMorgan, Washington Mutual and Bear Stearns not knowing about those defects. Today’s settlement is a significant, but by no means final step by FHFA-OIG and its law enforcement partners to hold accountable those who committed acts of fraud and deceit. We are proud to have worked with the Department of Justice, the U.S. attorneys in Sacramento and Philadelphia and the New York and California state attorneys general; they have been great partners and we look forward to our continued work together.”
The attorneys general of New York, California, Delaware, Illinois and Massachusetts also conducted related investigations that were critical to bringing about this settlement.
“Since my first day in office, I have insisted that there must be accountability for the misconduct that led to the crash of the housing market and the collapse of the American economy,” said New York Attorney General Eric Schneiderman, Co-Chair of the RMBS Working Group. “This historic deal, which will bring long overdue relief to homeowners around the country and across New York, is exactly what our working group was created to do. We refused to allow systemic frauds that harmed so many New York homeowners and investors to simply be forgotten, and as a result we’ve won a major victory today in the fight to hold those who caused the financial crisis accountable.”
“JP Morgan Chase profited by giving California’s pension funds incomplete information about mortgage investments,” California Attorney General Kamala D. Harris said. “This settlement returns the money to California’s pension funds that JP Morgan wrongfully took from them.”
“Our financial system only works when everyone plays by the rules,” said Delaware Attorney General Beau Biden. “Today, as a result of our coordinated investigations, we are holding accountable one of the financial institutions that, by breaking those rules, helped cause the economic crisis that brought our nation to its knees. Even as the American people recover from this crisis, we will continue to seek accountability on their behalf.”
“We are still cleaning up the mess that Wall Street made with its reckless investment schemes and fraudulent conduct,” said Illinois Attorney General Lisa Madigan. “Today’s settlement with JPMorgan will assist Illinois in recovering its losses from the dangerous and deceptive securities that put our economy on the path to destruction.”
“This is a historic settlement that will help us to hold accountable those investment banks that played a role in creating and exacerbating the housing crisis,” said Massachusetts Attorney General Martha Coakley. “We appreciate the work of the Department of Justice and the other enforcement agencies in bringing about this resolution and look forward to continuing to work together in other securitization cases.”
The RMBS Working Group is a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis. The RMBS Working Group brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, 10 U.S. attorney’s offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than 10 state attorneys general offices around the country.
The RMBS Working Group is led by five co-chairs: Assistant Attorney General for the Civil Division Stuart Delery, Acting Assistant Attorney General for the Criminal Division Mythili Raman, Co-Director of the SEC’s Division of Enforcement George Canellos, U.S. Attorney for the District of Colorado John Walsh and New York Attorney General Eric Schneiderman.
Tuesday, November 19, 2013
SECRETARY OF STATE KERRY'S PRESS STATEMENT ON BOMB ATTACKS IN LEBANON
FROM: U.S. STATE DEPARTMENT
Bomb Attacks in Lebanon
Press Statement
John Kerry
Secretary of State
Washington, DC
November 19, 2013
The United States strongly condemns today’s senseless and despicable terrorist bombings at the Iranian Embassy in Beirut. We extend our condolences to the victims and their families. We urge all parties to exercise calm and restraint to avoid inflaming the situation further. The United States knows too well the cost of terrorism directed at our own diplomats around the world, and our hearts go out to the Iranian people after this violent and unjustifiable attack claimed the life of at least one of their diplomats.
The details of today’s attack are not yet clear, and we support the Government of Lebanon’s commitment to conduct a thorough investigation. We call on all parties to cooperate with the Lebanese government’s investigation of this crime and urge that those responsible are brought to justice.
Acts of terror only reinforce our determination to support the institutions of the Lebanese state, including the Lebanese Armed Forces and the Internal Security Forces, to ensure a stable, sovereign, and secure Lebanon.
Bomb Attacks in Lebanon
Press Statement
John Kerry
Secretary of State
Washington, DC
November 19, 2013
The United States strongly condemns today’s senseless and despicable terrorist bombings at the Iranian Embassy in Beirut. We extend our condolences to the victims and their families. We urge all parties to exercise calm and restraint to avoid inflaming the situation further. The United States knows too well the cost of terrorism directed at our own diplomats around the world, and our hearts go out to the Iranian people after this violent and unjustifiable attack claimed the life of at least one of their diplomats.
The details of today’s attack are not yet clear, and we support the Government of Lebanon’s commitment to conduct a thorough investigation. We call on all parties to cooperate with the Lebanese government’s investigation of this crime and urge that those responsible are brought to justice.
Acts of terror only reinforce our determination to support the institutions of the Lebanese state, including the Lebanese Armed Forces and the Internal Security Forces, to ensure a stable, sovereign, and secure Lebanon.
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