FROM: U.S. STATE DEPARTMENT
Iraq: Decade of U.S. Support for Conventional Weapons Destruction Saves Lives and Builds Capacity
Fact Sheet
Office of the Spokesperson
Washington, DC
December 26, 2013
In 2013, we mark ten years of U.S. Government assistance to Iraq for Conventional Weapons Destruction, including Humanitarian Mine Action, and are proud of the programs and partnerships that enable countless Iraqi citizens to live and work in their communities more safely. The United States has invested more than $235 million in Iraq since 2003 toward the clearance and safe disposal of landmines, unexploded ordnance, and excess conventional weapons and munitions. This assistance, directed through several Iraqi and international nongovernmental organizations, has made significant progress toward protecting communities from potential risks, restoring access to land and infrastructure, and developing Iraqi capacity to manage weapons abatement programs independently over the long term.
The Landmine/Unexploded Ordnance Challenge
Iraq faces a significant challenge from landmines and unexploded ordnance as a result of conflicts dating back to the 1940s. In addition, large stocks of abandoned ordnance and unstable, poorly-secured munitions stockpiles also remain a threat to communities across the country. In FY 2009, the Office of Weapons Removal and Abatement in the U.S. Department of State’s Bureau of Political-Military Affairs invested $4.3 million with the Iraq Mine/UXO Clearance Organization (IMCO) to conduct a CWD program that included the destruction of 37,939 weapons, ranging from pistols to 120mm mortars.
Explosive remnants of war, such as unexploded artillery shells, mortars, and other munitions still present daily hazards to Iraqi citizens across the country. Information Management and Mine Action Programs (iMMAP) conducted two Landmine Impact Surveys in 2006 and 2011 that estimated 1,513 million square meters (585 square miles) of land in Iraq contain as many as 20 million landmines and millions more pieces of unexploded ordnance.
As many as 1,430 Iraqi cities, towns and villages remain at risk from explosive hazards. Landmines and unexploded ordnance contaminate significant acreage of agricultural land, making clearance an economic necessity for communities to regain their livelihoods as well as a security priority for Iraq’s future. Additional surveys will determine the full extent of the challenge facing Iraq in the years to come.
FY 2012 Accomplishments
During Fiscal Year 2012 (the last fiscal year for which complete data is available), the Department of State’s Office of Weapons Removal and Abatement in the Bureau of Political-Military Affairs provided $25 million in Iraq for Conventional Weapons Destruction (CWD) efforts that:
Safely cleared landmines and unexploded ordnance from more than 687 million square meters (265 square miles) of land across Iraq, which has revitalized economic and agricultural development throughout the nation.
Destroyed more than 135,430 pieces of unexploded ordnance, and abandoned or otherwise at-risk munitions.
Provided outreach education to more than 40,000 Iraqi men, women and children about potential dangers from landmines and unexploded ordnance in their communities.
U.S.-funded partner initiatives include:
Geneva International Centre for Humanitarian Demining (GICHD): With U.S. support and funding, the GICHD completed an assessment of Iraq’s mine action capabilities and developed a two- to three-year development plan for Iraqi training and capacity development. GICHD also led a course with the Ministry of Defense and Directorate for Mine Action staff on quality assurance (QA) and quality control and on the use of demining machines in October 2012.
Information Management and Mine Action Programs (iMMAP): With U.S. financial support, advisors continue to provide operational management, strategic planning, and Victims’ Assistance support. In FY 2012, iMMAP delivered six workshops, 13 training courses, and trained 128 students in information management, data collection, and mapping. In addition, iMMAP also trained 50 rehabilitation technicians to treat thousands of landmine/unexploded ordnance and improvised explosive device survivors.
Iraq Mine/UXO Clearance Organization (IMCO) Central/Southern Iraq: IMCO supported four technical advisors and provided landmine and unexploded ordnance clearance remediation in central and southern Iraq. Since May 2012, IMCO has returned over 3,300,000 square meters (815 acres) of land to communities through quality control checks and clearance methodologies. In addition, IMCO conducted technical and non-technical surveys of over 1,800,000 square meters (450 acres) of land, and located and handed over almost 2000 landmines and pieces of UXO to the Iraqi Ministry of Defense.
MAG (Mines Advisory Group) Northern and Central CWD: As a result of minefield and Battle Area Clearance in FY 2012, MAG has returned more than two million square meters (507 acres) of land to local communities for agriculture and economic development.
Marshall Legacy Institute (MLI): In partnership with IMCO, in FY 2012 MLI expanded its mine detection dog program in southern Iraq and linked three American schools to three Iraqi schools through its Children Against Mines Program to promote mine risk education in schools and provide medical assistance to young survivors.
MLI and the Polus Center for Social and Economic Development: Working together, MLI and the Polus Center oversaw the Partnership for Iraq Program, which is establishing a cost-sharing program to create a center to provide vocational and medical rehabilitation for thousands of mine and war survivors in Basrah and the surrounding area.
Norwegian Peoples Aid (NPA): NPA provided technical advisors to the Regional Mine Action Center - South (RMAC-S) to assist the RMAC-S in fulfilling its role as a regulatory body that is able to coordinate and monitor mine action activities. This project has enabled the RMAC-S to implement a Non-Technical Survey (NTS) designed to provide a more accurate picture of the mine/ERW situation in southern Iraq.
Spirit of Soccer (SoS): Spirit of Soccer expanded its landmine/unexploded ordnance risk education projects throughout Iraq. Spirit of Soccer is implementing innovative projects using soccer as a means to promote education and outreach to children about risks from landmines and unexploded ordnance.
U.S. Government FY 2013 Conventional Weapons Destruction funding allocated for Iraq totals $23.75 million. The Bureau of Political-Military Affairs is using that funding to continue humanitarian mine action programs similar to those described above and will continue these efforts in FY 2014.
The United States is the world’s single largest financial supporter of efforts to clear landmines and unexploded ordnance. Since 1993, the United States has contributed more than $2.1 billion to more than 90 countries around the world to reduce the harmful worldwide effects of at-risk, illicitly proliferated, and indiscriminately used conventional weapons of war. For more information on U.S. humanitarian demining and Conventional Weapons Destruction programs, check out the latest edition of our annual report, To Walk the Earth in Safety.
Friday, December 27, 2013
SEC AND BIOTECH COMPANY SETTLE CIVIL ACTION IN UNREGISTERED DISTRIBUTION OF STOCK CASE
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
SEC Settles Civil Action Against Advanced Cell Technology, Inc. Concerning Its Illegal Unregistered Distributions of Stock - Relief Includes Payment of More Than $4 Million
The Commission today settled a pending civil action against Advanced Cell Technology, Inc. (“Advanced Cell”), arising out of Advanced Cell’s issuance of hundreds of millions of unregistered shares of common stock on thirteen separate occasions without qualifying for any exemption from registration. The settlement, which was filed with the Court earlier today, is subject to the Court’s approval.
In its Complaint filed on May 30, 2012, the Commission alleged that seven defendants, including Advanced Cell, a biotechnology company with headquarters in Marlborough, Massachusetts, violated the federal securities laws by engaging in the illegal unregistered distribution of billions of shares of penny stocks through the repeated misuse of the exemption from registration contained in Section 3(a)(10) of the Securities Act of 1933. Section 3(a)(10) permits a company to issue common stock to public investors other than pursuant to an effective registration statement “in exchange for one or more bona fide outstanding securities, claims or property interests . . . where the terms and conditions of such issuance and exchange are approved after a hearing [held before a court or other governmental authority authorized to conduct such hearings] upon the fairness of such terms and conditions.” The Section 3(a)(10) exemption may not be relied upon for capital formation by issuers, and it was improperly used for that purpose in these transactions.
According to the Commission’s Complaint, in or about early 2006, Mark A. Lefkowitz, a penny stock financier, developed an illegal strategy for penny stock issuers to pay off past due debts and also raise capital by issuing stock purportedly pursuant to the Section 3(a)(10) exemption. The Complaint alleges that in September 2008, Lefkowitz introduced the strategy to William Caldwell IV, who was then the Chief Executive Officer of Advanced Cell.
The Complaint alleges that from September 2008 through January 2009, pursuant to an agreement between Lefkowitz and Caldwell, several entities affiliated with Lefkowitz (collectively, the “Lefkowitz Related Entities”) purchased past due debts of Advanced Cell from various Advanced Cell debtholders. Shortly after a Lefkowitz Related Entity acquired each debt, Lefkowitz and Caldwell agreed on the terms of a settlement, and the Lefkowitz Related Entity filed a lawsuit against Advanced Cell in a Florida state court purportedly to collect on the debt. The principal purpose of the lawsuits, according to the Complaint, was to present the settlements to the Florida state court for a fairness hearing, as required by Section 3(a)(10).
The Complaint alleges that, in each instance, the Florida state court found the settlements to be fair and entered an order granting a Section 3(a)(10) exemption. However, the Commission’s Complaint asserts that the parties never informed the Florida state court of the full terms and conditions of the settlements, thereby compromising the fairness hearings. According to the Complaint, the parties falsely represented to the Florida state court that they were settling for the face value of the past due debts and did not inform the Florida state court of the actual market value of the settlement shares or that the market value of the shares greatly exceeded the amount of the debts that were to be extinguished. Nor was the Florida state court told that the Lefkowitz Related Entities had agreed to sell the settlement shares quickly and remit a substantial portion of the sales proceeds to Advanced Cell.
According to the Complaint, Advanced Cell ultimately issued a total of 260,115,983 shares of unrestricted common stock to settle the thirteen lawsuits filed against it by the Lefkowitz Related Entities. The settlement shares, which had a total market value of approximately $9,230,000 as of the respective settlement dates, were issued to satisfy past due debts totaling approximately $1,110,000. According to the Complaint, after retaining a portion of the profits from the sale of the shares for themselves, the Lefkowitz Related Entities remitted $3.5 million to Advanced Cell.
The Complaint alleges that, as a result of the foregoing, Advanced Cell’s unregistered distributions to the Lefkowitz Related Entities violated Section 5 of the Securities Act. The Complaint also alleges that Advanced Cell failed to timely disclose the settlement agreements and its issuance of unregistered shares of common stock in connection with the Section 3(a)(10) settlements by filing current reports on Forms 8-K with the Commission.
The proposed final judgment would enjoin Advanced Cell from violating Section 5(a) and 5(c) of the Securities Act of 1933 and Section 13(a) of the Securities Exchange Act of 1934 and Rule 13a-11 thereunder. It would also order Advanced Cell to disgorge $3.5 million in ill-gotten payments from the Lefkowitz Related Entities, plus prejudgment interest in the amount of $586,619, for a total of $4,086,619, but would not impose a civil penalty based upon Advanced Cell’s financial condition. Advanced Cell consented to the entry of the proposed Final Judgment without admitting or denying the allegations in the Commission’s Complaint.
The Commission’s litigation against the five remaining defendants, Mark A. Lefkowitz, Mark A. Lopez, Unico, Inc., Steven R. Peacock, and Shane H. Traveller, is ongoing.
SEC Settles Civil Action Against Advanced Cell Technology, Inc. Concerning Its Illegal Unregistered Distributions of Stock - Relief Includes Payment of More Than $4 Million
The Commission today settled a pending civil action against Advanced Cell Technology, Inc. (“Advanced Cell”), arising out of Advanced Cell’s issuance of hundreds of millions of unregistered shares of common stock on thirteen separate occasions without qualifying for any exemption from registration. The settlement, which was filed with the Court earlier today, is subject to the Court’s approval.
In its Complaint filed on May 30, 2012, the Commission alleged that seven defendants, including Advanced Cell, a biotechnology company with headquarters in Marlborough, Massachusetts, violated the federal securities laws by engaging in the illegal unregistered distribution of billions of shares of penny stocks through the repeated misuse of the exemption from registration contained in Section 3(a)(10) of the Securities Act of 1933. Section 3(a)(10) permits a company to issue common stock to public investors other than pursuant to an effective registration statement “in exchange for one or more bona fide outstanding securities, claims or property interests . . . where the terms and conditions of such issuance and exchange are approved after a hearing [held before a court or other governmental authority authorized to conduct such hearings] upon the fairness of such terms and conditions.” The Section 3(a)(10) exemption may not be relied upon for capital formation by issuers, and it was improperly used for that purpose in these transactions.
According to the Commission’s Complaint, in or about early 2006, Mark A. Lefkowitz, a penny stock financier, developed an illegal strategy for penny stock issuers to pay off past due debts and also raise capital by issuing stock purportedly pursuant to the Section 3(a)(10) exemption. The Complaint alleges that in September 2008, Lefkowitz introduced the strategy to William Caldwell IV, who was then the Chief Executive Officer of Advanced Cell.
The Complaint alleges that from September 2008 through January 2009, pursuant to an agreement between Lefkowitz and Caldwell, several entities affiliated with Lefkowitz (collectively, the “Lefkowitz Related Entities”) purchased past due debts of Advanced Cell from various Advanced Cell debtholders. Shortly after a Lefkowitz Related Entity acquired each debt, Lefkowitz and Caldwell agreed on the terms of a settlement, and the Lefkowitz Related Entity filed a lawsuit against Advanced Cell in a Florida state court purportedly to collect on the debt. The principal purpose of the lawsuits, according to the Complaint, was to present the settlements to the Florida state court for a fairness hearing, as required by Section 3(a)(10).
The Complaint alleges that, in each instance, the Florida state court found the settlements to be fair and entered an order granting a Section 3(a)(10) exemption. However, the Commission’s Complaint asserts that the parties never informed the Florida state court of the full terms and conditions of the settlements, thereby compromising the fairness hearings. According to the Complaint, the parties falsely represented to the Florida state court that they were settling for the face value of the past due debts and did not inform the Florida state court of the actual market value of the settlement shares or that the market value of the shares greatly exceeded the amount of the debts that were to be extinguished. Nor was the Florida state court told that the Lefkowitz Related Entities had agreed to sell the settlement shares quickly and remit a substantial portion of the sales proceeds to Advanced Cell.
According to the Complaint, Advanced Cell ultimately issued a total of 260,115,983 shares of unrestricted common stock to settle the thirteen lawsuits filed against it by the Lefkowitz Related Entities. The settlement shares, which had a total market value of approximately $9,230,000 as of the respective settlement dates, were issued to satisfy past due debts totaling approximately $1,110,000. According to the Complaint, after retaining a portion of the profits from the sale of the shares for themselves, the Lefkowitz Related Entities remitted $3.5 million to Advanced Cell.
The Complaint alleges that, as a result of the foregoing, Advanced Cell’s unregistered distributions to the Lefkowitz Related Entities violated Section 5 of the Securities Act. The Complaint also alleges that Advanced Cell failed to timely disclose the settlement agreements and its issuance of unregistered shares of common stock in connection with the Section 3(a)(10) settlements by filing current reports on Forms 8-K with the Commission.
The proposed final judgment would enjoin Advanced Cell from violating Section 5(a) and 5(c) of the Securities Act of 1933 and Section 13(a) of the Securities Exchange Act of 1934 and Rule 13a-11 thereunder. It would also order Advanced Cell to disgorge $3.5 million in ill-gotten payments from the Lefkowitz Related Entities, plus prejudgment interest in the amount of $586,619, for a total of $4,086,619, but would not impose a civil penalty based upon Advanced Cell’s financial condition. Advanced Cell consented to the entry of the proposed Final Judgment without admitting or denying the allegations in the Commission’s Complaint.
The Commission’s litigation against the five remaining defendants, Mark A. Lefkowitz, Mark A. Lopez, Unico, Inc., Steven R. Peacock, and Shane H. Traveller, is ongoing.
FUTURE LITTORAL COMBAT SHIP CHRISTENED
FROM: U.S. NAVY USS MILWAUKEE
Future USS Milwaukee (LCS 5) Christened and Launched, Marks Production Milestone
Story Number: NNS131218-14 Release
Date: 12/18/2013 5:00:00
From Program Executive Office Littoral Combat Ships Public Affairs
MARINETTE, Wis. (NNS) -- The Navy, along with the Lockheed Martin-led industry team, christened and launched the future USS Milwaukee in a ceremony at the Marinette Marine Corporation shipyard Dec. 18, marking an important production milestone for the littoral combat ship program.
The ship joins the future USS Jackson (LCS 6), which launched Dec. 14 following construction at the Austal USA shipyard in Alabama. These ships are the first vessels procured under the block buy contract awarded in 2010 and represent the true beginning of "serial production" for the class. With serial production, the Navy is able to realize benefits such as improved cost structure per vessel and reduced construction time.
"Milwaukee will be an exceptional ship and I am pleased with the progress being made," said Rear Adm. Brian Antonio, program executive officer, Littoral Combat Ships. "With serial production lines now in full swing at both LCS building yards, we are looking forward to each new ship joining the fleet on a regular and consistent timeline. This is a significant step for the program and the Navy."
As is tradition, ship sponsor Sylvia Panetta struck the bow with a bottle of champagne, officially naming the ship. LCS 5 is the sixth U.S. Navy vessel christened in tribute to the Wisconsin city. Panetta, wife of former Secretary of Defense Leon Panetta, has been a tireless supporter of the military and longtime advocate for public service.
"It is a true privilege to serve as the sponsor for this ship as it begins its journey of service and commitment to our powerful fleet," said Mrs. Panetta. "I am proud to support the ship's crew members over the course of her service to ensure it leads with strength and protects our freedom. My congratulations to the city of Milwaukee as this ship assumes its name."
The christening ceremony was followed by a dramatic side launch of the ship into the Menominee River.
Milwaukee will continue to undergo outfitting and testing at Marinette Marine. The ship is expected to deliver to the Navy in early 2015 following acceptance trials.
The LCS Class consists of two variants, the monohull design Freedom variant and the trimaran design Independence variant. The ships are designed and built by two industry teams, led by Lockheed Martin and Austal USA, respectively. Milwaukee is the third LCS constructed by the Lockheed Martin team.
Both variants of the LCS are fast, agile, focused-mission platforms designed for operation in near-shore environments yet capable of open-ocean operation. They are designed to embark specialized mission packages to defeat "anti-access" threats such as mines, quiet diesel submarines, and fast surface craft.
The Navy has been able to incorporate much of the knowledge gained in the construction, test and operation of LCS 1 and LCS 2, the lead ships of the class, into follow on ships. Many of those are currently in various stages of construction, and will deliver to the Navy over the next few years. These include Milwaukee's sister ships - Detroit (LCS 7), Little Rock (LCS 9), Sioux City (LCS 11), Wichita (LCS 13), and Billings (LCS 15).
Program Executive Office Littoral Combat Ships is affiliated with the Naval Sea Systems Command and provides a single program executive responsible for acquiring and sustaining mission capabilities of the littoral combat ship class, from procurement through fleet employment and sustainment. Delivering high-quality warfighting assets while balancing affordability and capability is key to supporting the nation's maritime strategy.
Future USS Milwaukee (LCS 5) Christened and Launched, Marks Production Milestone
Story Number: NNS131218-14 Release
Date: 12/18/2013 5:00:00
From Program Executive Office Littoral Combat Ships Public Affairs
MARINETTE, Wis. (NNS) -- The Navy, along with the Lockheed Martin-led industry team, christened and launched the future USS Milwaukee in a ceremony at the Marinette Marine Corporation shipyard Dec. 18, marking an important production milestone for the littoral combat ship program.
The ship joins the future USS Jackson (LCS 6), which launched Dec. 14 following construction at the Austal USA shipyard in Alabama. These ships are the first vessels procured under the block buy contract awarded in 2010 and represent the true beginning of "serial production" for the class. With serial production, the Navy is able to realize benefits such as improved cost structure per vessel and reduced construction time.
"Milwaukee will be an exceptional ship and I am pleased with the progress being made," said Rear Adm. Brian Antonio, program executive officer, Littoral Combat Ships. "With serial production lines now in full swing at both LCS building yards, we are looking forward to each new ship joining the fleet on a regular and consistent timeline. This is a significant step for the program and the Navy."
As is tradition, ship sponsor Sylvia Panetta struck the bow with a bottle of champagne, officially naming the ship. LCS 5 is the sixth U.S. Navy vessel christened in tribute to the Wisconsin city. Panetta, wife of former Secretary of Defense Leon Panetta, has been a tireless supporter of the military and longtime advocate for public service.
"It is a true privilege to serve as the sponsor for this ship as it begins its journey of service and commitment to our powerful fleet," said Mrs. Panetta. "I am proud to support the ship's crew members over the course of her service to ensure it leads with strength and protects our freedom. My congratulations to the city of Milwaukee as this ship assumes its name."
The christening ceremony was followed by a dramatic side launch of the ship into the Menominee River.
Milwaukee will continue to undergo outfitting and testing at Marinette Marine. The ship is expected to deliver to the Navy in early 2015 following acceptance trials.
The LCS Class consists of two variants, the monohull design Freedom variant and the trimaran design Independence variant. The ships are designed and built by two industry teams, led by Lockheed Martin and Austal USA, respectively. Milwaukee is the third LCS constructed by the Lockheed Martin team.
Both variants of the LCS are fast, agile, focused-mission platforms designed for operation in near-shore environments yet capable of open-ocean operation. They are designed to embark specialized mission packages to defeat "anti-access" threats such as mines, quiet diesel submarines, and fast surface craft.
The Navy has been able to incorporate much of the knowledge gained in the construction, test and operation of LCS 1 and LCS 2, the lead ships of the class, into follow on ships. Many of those are currently in various stages of construction, and will deliver to the Navy over the next few years. These include Milwaukee's sister ships - Detroit (LCS 7), Little Rock (LCS 9), Sioux City (LCS 11), Wichita (LCS 13), and Billings (LCS 15).
Program Executive Office Littoral Combat Ships is affiliated with the Naval Sea Systems Command and provides a single program executive responsible for acquiring and sustaining mission capabilities of the littoral combat ship class, from procurement through fleet employment and sustainment. Delivering high-quality warfighting assets while balancing affordability and capability is key to supporting the nation's maritime strategy.
FOUR INDICTED IN FALSE TAX RETURN CONSPIRACY CASE
FROM: U.S. JUSTICE DEPARTMENT T
Monday, December 23, 2013
Four Minneapolis-based Return Preparers Indicted for Conspiracy, Aggravated Identity Theft, Preparing False Returns
A 63-count superseding indictment charging Chatonda Khofi, Ishmael Kosh, Amadou Sangaray and Francis Saygbay in a conspiracy to defraud the Internal Revenue Service (IRS) was unsealed on Monday, December 23, in Minneapolis, Minn., the Justice Department and IRS announced today. The superseding indictment was returned by a federal grand jury on Nov. 19, 2013, and alleges that Primetime Tax Services Inc. was a tax return preparation business with three storefronts in the Minneapolis area. Khofi worked as the Chief Executive Officer of Primetime, and Kosh and Sangaray worked as managers of the Brooklyn Center location of Primetime. All four named defendants allegedly prepared false tax returns under the name of Primetime.
According to court documents, Khofi, Kosh, Sangaray and Saygbay conspired amongst themselves and with others to prepare and file false individual income tax returns for the customers of Primetime. Some of these returns reported false dependents, false deductions, false Schedule C business losses and false wage income. These false entries resulted in fraudulently inflated refunds for their customers. As part of the scheme, court documents allege that the defendants prepared and filed false Minnesota state income tax returns for their customers that contained the same or similar false information as reported on the federal income tax returns. From 2007 to 2009, Primetime filed over 2,000 customer federal income tax returns with the IRS.
The indictment further charges each defendant with multiple counts of aggravated identity theft and multiple counts of aiding and assisting in the preparation of false individual income tax returns. The aggravated identity theft charges stem from the defendants’ alleged use of the names and social security numbers of actual persons to falsely claim as dependents on their customers’ individual income tax returns.
According to the indictment, the defendants also accompanied some customers to check-cashing businesses to cash their falsely inflated tax refund checks, then demanded a portion of the cashed refund check in addition to tax preparation fees already collected. The indictment alleges that, in some instances, the defendants withdrew cash from debits cards containing their customers’ refunds without permission, again in addition to the tax preparation fees they had already collected.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the defendants face a maximum potential sentence of five years in prison for the conspiracy count and three years in prison for each count of aiding in the preparation of a false tax return. The aggravated identity theft counts have a mandatory two year sentence.
The case was investigated by special agents of IRS-Criminal Investigation. It is being prosecuted by Trial Attorneys Dennis Kihm and Thomas Flynn of the Justice Department's Tax Division.
Monday, December 23, 2013
Four Minneapolis-based Return Preparers Indicted for Conspiracy, Aggravated Identity Theft, Preparing False Returns
A 63-count superseding indictment charging Chatonda Khofi, Ishmael Kosh, Amadou Sangaray and Francis Saygbay in a conspiracy to defraud the Internal Revenue Service (IRS) was unsealed on Monday, December 23, in Minneapolis, Minn., the Justice Department and IRS announced today. The superseding indictment was returned by a federal grand jury on Nov. 19, 2013, and alleges that Primetime Tax Services Inc. was a tax return preparation business with three storefronts in the Minneapolis area. Khofi worked as the Chief Executive Officer of Primetime, and Kosh and Sangaray worked as managers of the Brooklyn Center location of Primetime. All four named defendants allegedly prepared false tax returns under the name of Primetime.
According to court documents, Khofi, Kosh, Sangaray and Saygbay conspired amongst themselves and with others to prepare and file false individual income tax returns for the customers of Primetime. Some of these returns reported false dependents, false deductions, false Schedule C business losses and false wage income. These false entries resulted in fraudulently inflated refunds for their customers. As part of the scheme, court documents allege that the defendants prepared and filed false Minnesota state income tax returns for their customers that contained the same or similar false information as reported on the federal income tax returns. From 2007 to 2009, Primetime filed over 2,000 customer federal income tax returns with the IRS.
The indictment further charges each defendant with multiple counts of aggravated identity theft and multiple counts of aiding and assisting in the preparation of false individual income tax returns. The aggravated identity theft charges stem from the defendants’ alleged use of the names and social security numbers of actual persons to falsely claim as dependents on their customers’ individual income tax returns.
According to the indictment, the defendants also accompanied some customers to check-cashing businesses to cash their falsely inflated tax refund checks, then demanded a portion of the cashed refund check in addition to tax preparation fees already collected. The indictment alleges that, in some instances, the defendants withdrew cash from debits cards containing their customers’ refunds without permission, again in addition to the tax preparation fees they had already collected.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the defendants face a maximum potential sentence of five years in prison for the conspiracy count and three years in prison for each count of aiding in the preparation of a false tax return. The aggravated identity theft counts have a mandatory two year sentence.
The case was investigated by special agents of IRS-Criminal Investigation. It is being prosecuted by Trial Attorneys Dennis Kihm and Thomas Flynn of the Justice Department's Tax Division.
FDIC SETTLES WITH AMERICAN EXPRESS CENTURION BANK IN DECEPTIVE PRACTICES CASE
FROM: FEDERAL DEPOSIT INSURANCE CORPORATION
FDIC Announces Settlement With American Express Centurion Bank for Unfair and Deceptive Practices
Today, the Federal Deposit Insurance Corporation (FDIC) announced a settlement with American Express Centurion Bank, Salt Lake City, Utah, (Bank) for unfair and deceptive marketing practices related to credit card "add-on products," in violation of Section 5 of the Federal Trade Commission (FTC) Act.
This action results from a review of the Bank's credit card products by the FDIC and the Consumer Financial Protection Bureau (CFPB). As part of the settlement, the Bank stipulated to the issuance of a Consent Order, Order for Restitution, and Order to Pay Civil Money Penalty (collectively, FDIC Order). The FDIC Order requires the Bank to pay a civil money penalty (CMP) of $3.6 million. The CFPB is also taking a parallel enforcement action against the Bank for the same practices and will assess a separate CMP of $3.6 million. Together, the FDIC and CFPB will require restitution of no less than $40.9 million to harmed consumers.
The Office of the Comptroller of the Currency (OCC) and the CFPB also announced actions against other American Express affiliated institutions for the same unfair and deceptive practices identified in those institutions. Collectively, these actions will result in restitution of approximately $59.5 million to more than 335,000 consumers.
The FDIC determined that the Bank violated federal law prohibiting unfair and deceptive practices by, among other things:
Misrepresenting to consumers the benefits and costs of its "Account Protector" add-on product. Consumers were led to believe that the benefits would continue for up to 24 months in the event of a qualifying life event, when in fact the majority of events had benefit periods of one, two, or three months. Consumers were also led to believe that if they purchased the product their monthly minimum payment would be cancelled in the event of a qualifying event. However, the benefit payment was limited to 2.5% of the consumer's outstanding balance, up to $500, which could be less than the minimum monthly payment.
Misrepresenting the terms and conditions of the "Lost Wallet" add-on product through telemarketing calls conducted in Spanish to consumers in Puerto Rico. American Express did not provide uniform Spanish language scripts to its customer service representatives for enrollment calls, and all written materials provided to consumers were in English.
Consumers were not informed during telemarketing calls or during the enrollment process for identity theft products that two steps were necessary to fully utilize credit monitoring and public records monitoring benefits. The second step was not completed by 85 % of consumers. These consumers were thus unfairly billed for benefits they did not receive.
In addition, the Order requires the Bank to take affirmative steps to correct its marketing and billing practices, and to ensure that all of the add-on products offered by the Bank are marketed and administered in compliance with applicable laws.
FDIC Announces Settlement With American Express Centurion Bank for Unfair and Deceptive Practices
Today, the Federal Deposit Insurance Corporation (FDIC) announced a settlement with American Express Centurion Bank, Salt Lake City, Utah, (Bank) for unfair and deceptive marketing practices related to credit card "add-on products," in violation of Section 5 of the Federal Trade Commission (FTC) Act.
This action results from a review of the Bank's credit card products by the FDIC and the Consumer Financial Protection Bureau (CFPB). As part of the settlement, the Bank stipulated to the issuance of a Consent Order, Order for Restitution, and Order to Pay Civil Money Penalty (collectively, FDIC Order). The FDIC Order requires the Bank to pay a civil money penalty (CMP) of $3.6 million. The CFPB is also taking a parallel enforcement action against the Bank for the same practices and will assess a separate CMP of $3.6 million. Together, the FDIC and CFPB will require restitution of no less than $40.9 million to harmed consumers.
The Office of the Comptroller of the Currency (OCC) and the CFPB also announced actions against other American Express affiliated institutions for the same unfair and deceptive practices identified in those institutions. Collectively, these actions will result in restitution of approximately $59.5 million to more than 335,000 consumers.
The FDIC determined that the Bank violated federal law prohibiting unfair and deceptive practices by, among other things:
Misrepresenting to consumers the benefits and costs of its "Account Protector" add-on product. Consumers were led to believe that the benefits would continue for up to 24 months in the event of a qualifying life event, when in fact the majority of events had benefit periods of one, two, or three months. Consumers were also led to believe that if they purchased the product their monthly minimum payment would be cancelled in the event of a qualifying event. However, the benefit payment was limited to 2.5% of the consumer's outstanding balance, up to $500, which could be less than the minimum monthly payment.
Misrepresenting the terms and conditions of the "Lost Wallet" add-on product through telemarketing calls conducted in Spanish to consumers in Puerto Rico. American Express did not provide uniform Spanish language scripts to its customer service representatives for enrollment calls, and all written materials provided to consumers were in English.
Consumers were not informed during telemarketing calls or during the enrollment process for identity theft products that two steps were necessary to fully utilize credit monitoring and public records monitoring benefits. The second step was not completed by 85 % of consumers. These consumers were thus unfairly billed for benefits they did not receive.
In addition, the Order requires the Bank to take affirmative steps to correct its marketing and billing practices, and to ensure that all of the add-on products offered by the Bank are marketed and administered in compliance with applicable laws.
DOL ANNOUNCES $5 MILLION GRANT TO REDUCE CHILD LABOR IN BURMA
FROM: U.S. LABOR DEPARTMENT
$5M grant to reduce child labor in Burma awarded by US Labor Department
WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today announced the award of a $5 million cooperative agreement to the International Labour Organization to implement a project to reduce child labor in Burma and support the Government of Burma's efforts to comply with international standards.
The project will:
support research and collection of data on the extent and nature of child labor in Burma, build the capacity of national and local organizations to carry out efforts to reduce child labor, implement pilot programs to remove or prevent children from involvement in exploitative labor and raise awareness about child labor in the country.
"This project will develop effective strategies for reducing child labor in Burma," said Deputy Undersecretary of Labor for International Affairs Carol Pier. "It will expand understanding of the extent and nature of the problem and help stakeholders in the country increase efforts to protect children."
The project involves collaboration among key government agencies and ministries at the national, regional and local levels, including the Ministry of Labour, Employment and Social Security. It will also work with workers' organizations, employers' organizations, civil society organizations and teachers.
Since 1995, ILAB projects have rescued approximately 1.7 million children from exploitative child labor. The Labor Department has funded 275 such projects implemented by more than 65 organizations in 93 countries. ILAB currently oversees more than $245 million of active programming to combat the worst forms of child labor.
$5M grant to reduce child labor in Burma awarded by US Labor Department
WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today announced the award of a $5 million cooperative agreement to the International Labour Organization to implement a project to reduce child labor in Burma and support the Government of Burma's efforts to comply with international standards.
The project will:
support research and collection of data on the extent and nature of child labor in Burma, build the capacity of national and local organizations to carry out efforts to reduce child labor, implement pilot programs to remove or prevent children from involvement in exploitative labor and raise awareness about child labor in the country.
"This project will develop effective strategies for reducing child labor in Burma," said Deputy Undersecretary of Labor for International Affairs Carol Pier. "It will expand understanding of the extent and nature of the problem and help stakeholders in the country increase efforts to protect children."
The project involves collaboration among key government agencies and ministries at the national, regional and local levels, including the Ministry of Labour, Employment and Social Security. It will also work with workers' organizations, employers' organizations, civil society organizations and teachers.
Since 1995, ILAB projects have rescued approximately 1.7 million children from exploitative child labor. The Labor Department has funded 275 such projects implemented by more than 65 organizations in 93 countries. ILAB currently oversees more than $245 million of active programming to combat the worst forms of child labor.
OHIO LOBBYIST PLEADS GUILTY IN KICKBACK AND MONEY LAUNDERING CASE
FROM: U.S. JUSTICE DEPARTMENT
Monday, December 23, 2013
Ohio Lobbyist Pleads Guilty for Role in Kickback and Money Laundering Scheme
An Ohio attorney and lobbyist pleaded guilty today for his role in a bribery and money laundering scheme involving the Ohio Treasurer’s Office.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Mark T. D’Alessandro of the Southern District of Ohio, and Special Agent in Charge Kevin R. Cornelius of the FBI’s Cincinnati Division made the announcement.
Mohammed Noure Alo, 35, of Columbus, Ohio, appeared before U.S. District Judge Michael H. Watson of the Southern District of Ohio and pleaded guilty to aiding and abetting honest services wire fraud. He faces a maximum penalty of 20 years in prison, and sentencing will be set at a later date.
Alo is a partner and founding member of a Columbus-based law firm and became a registered lobbyist to the State of Ohio in 2010. Court records state that from approximately January 2009 through January 2011, Alo admitted he conspired with his close personal friend Amer Ahmad, 38, of Chicago, and others to use Ahmad’s role as deputy treasurer to direct official State of Ohio broker services business to Douglas E. Hampton, 39, a securities broker from Canton, Ohio, in return for payments from Hampton. Hampton funneled in excess of $123,000 to Alo. Ahmad and Joseph M. Chiavaroli, 33, of Chicago, concealed additional payments from Hampton by passing them through the accounts of a landscaping business in which Ahmad and Chiavaroli held ownership interests.
As a result of the scheme, Hampton received approximately $3.2 million in commissions for 360 trades on behalf of the Ohio Treasurer’s Office. Ahmad and his co-conspirators received in excess of $500,000 from Hampton. Both Hampton and Chiavaroli entered guilty pleas in August 2013.
Ahmad was indicted on Aug. 15, 2013, on charges of conspiracy, honest services wire fraud, money laundering, conspiracy to commit money laundering, federal program bribery, and false statements. He is scheduled for trial on March 3, 2014. A criminal indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
The case was investigated by the FBI’s Central Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Douglas W. Squires of the Southern District of Ohio and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section.
Monday, December 23, 2013
Ohio Lobbyist Pleads Guilty for Role in Kickback and Money Laundering Scheme
An Ohio attorney and lobbyist pleaded guilty today for his role in a bribery and money laundering scheme involving the Ohio Treasurer’s Office.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Mark T. D’Alessandro of the Southern District of Ohio, and Special Agent in Charge Kevin R. Cornelius of the FBI’s Cincinnati Division made the announcement.
Mohammed Noure Alo, 35, of Columbus, Ohio, appeared before U.S. District Judge Michael H. Watson of the Southern District of Ohio and pleaded guilty to aiding and abetting honest services wire fraud. He faces a maximum penalty of 20 years in prison, and sentencing will be set at a later date.
Alo is a partner and founding member of a Columbus-based law firm and became a registered lobbyist to the State of Ohio in 2010. Court records state that from approximately January 2009 through January 2011, Alo admitted he conspired with his close personal friend Amer Ahmad, 38, of Chicago, and others to use Ahmad’s role as deputy treasurer to direct official State of Ohio broker services business to Douglas E. Hampton, 39, a securities broker from Canton, Ohio, in return for payments from Hampton. Hampton funneled in excess of $123,000 to Alo. Ahmad and Joseph M. Chiavaroli, 33, of Chicago, concealed additional payments from Hampton by passing them through the accounts of a landscaping business in which Ahmad and Chiavaroli held ownership interests.
As a result of the scheme, Hampton received approximately $3.2 million in commissions for 360 trades on behalf of the Ohio Treasurer’s Office. Ahmad and his co-conspirators received in excess of $500,000 from Hampton. Both Hampton and Chiavaroli entered guilty pleas in August 2013.
Ahmad was indicted on Aug. 15, 2013, on charges of conspiracy, honest services wire fraud, money laundering, conspiracy to commit money laundering, federal program bribery, and false statements. He is scheduled for trial on March 3, 2014. A criminal indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
The case was investigated by the FBI’s Central Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Douglas W. Squires of the Southern District of Ohio and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section.
Thursday, December 26, 2013
DOD REPORTS TO CONGRESS ON THE FUTURE OF UNMANNED VEHICLES
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| Members of the Unmanned Underwater Vehicle detachment, Commander, Task Group 56.1, guide a UUV as it is lowered into the water off the coast of Bahrain, June 5, 2013. U.S. Navy photo by Mass Communication Specialist 1st Class Peter Lewis. |
DOD Looks 25 Years Ahead in Unmanned Vehicle Roadmap
By Jim Garamone
American Forces Press Service
WASHINGTON, Dec. 23, 2013 – Strategy and budget realities are two aspects of the Defense Department’s new Unmanned Systems Integrated Roadmap, released today.
The report to Congress is an attempt to chart how unmanned systems fit into the defense of the nation.
“The 2013 Unmanned Systems Integrated Roadmap articulates a vision and strategy for the continued development, production, test, training, operation and sustainment of unmanned systems technology across DOD,” said Dyke Weatherington, the director of the unmanned warfare and intelligence, surveillance and reconnaissance office at the Pentagon.
“This road map establishes a technological vision for the next 25 years and outlines the actions and technologies for DOD and industry to pursue to intelligently and affordably align with this vision,” he continued.
Unmanned aerial vehicles have received the most press, but unmanned underwater vehicles and ground vehicles are also providing warfighters with incredible capabilities.
Although unmanned vehicles have proved their worth in combat operations throughout the Middle East and Central Asia, current technologies must be expanded and integrated into the sinews of the defense establishment, the report says.
It also calls for unmanned systems to be programs of record in order to achieve “the levels of effectiveness, efficiency, affordability, commonality, interoperability, integration and other key parameters needed to meet future operational requirements.”
Of course, all DOD programs have to face the reality of the budget crunch. “Achieving affordable and cost-effective technical solutions is imperative in this fiscally constrained environment,” the report notes.
Strategy really drives the technology. Unmanned systems will be crucial as the U.S. military shifts its focus to the Asia-Pacific region and puts the air-sea doctrine into effect. In the future, unmanned vehicles will be required to operate in more complex environments involving difficult weather, terrain, distance and airspace. All this will require extensive coordination with allies and host nations, the report says.
“The road map describes the challenges of logistics and sustainment, training and international cooperation while providing insight on the strategic planning and policy, capability needs, technology development and operational environments relevant to the spectrum of unmanned systems,” Weatherington said.
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING DECEMBER 21, 2013
FROM: U.S. LABOR DEPARTMENT
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT
SEASONALLY ADJUSTED DATA
In the week ending December 21, the advance figure for seasonally adjusted initial claims was 338,000, a decrease of 42,000 from the previous week's revised figure of 380,000. The 4-week moving average was 348,000, an increase of 4,250 from the previous week's revised average of 343,750.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending December 14, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending December 14 was 2,923,000, an increase of 46,000 from the preceding week's revised level of 2,877,000. The 4-week moving average was 2,836,750, an increase of 39,500 from the preceding week's revised average of 2,797,250.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 413,920 in the week ending December 21, a decrease of 159 from the previous week. There were 457,578 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 2.3 percent during the week ending December 14, an increase of 0.1 percentage point from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,984,815, an increase of 113,284 from the preceding week. A year earlier, the rate was 2.5 percent and the volume was 3,254,315.
The total number of people claiming benefits in all programs for the week ending December 7 was 4,279,284, a decrease of 132,858 from the previous week. There were 5,471,714 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending December 7.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,869 in the week ending December 14, a decrease of 306 from the prior week. There were 2,004 initial claims filed by newly discharged veterans, a decrease of 352 from the preceding week.
There were 20,880 former Federal civilian employees claiming UI benefits for the week ending December 7, a decrease of 1,559 from the previous week. Newly discharged veterans claiming benefits totaled 31,459, a decrease of 1,478 from the prior week.
States reported 1,333,332 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending December 7, a decrease of 40,699 from the prior week. There were 2,096,243 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending December 14 were in Alaska (5.3), Puerto Rico (3.8), Pennsylvania (3.5), California (3.3), Connecticut (3.1), Montana (3.1), West Virginia (3.1), Illinois (2.8), Oregon (2.8), and Wisconsin (2.8).
The largest increases in initial claims for the week ending December 14 were in California (+4,622), Illinois (+3,686), Massachusetts (+2,331), Ohio (+1,529), and Indiana (+1,473), while the largest decreases were in New York (-12,706), Pennsylvania (-10,866), Georgia (-8,340), Texas (-4,904), and Wisconsin (-4,821).
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT
SEASONALLY ADJUSTED DATA
In the week ending December 21, the advance figure for seasonally adjusted initial claims was 338,000, a decrease of 42,000 from the previous week's revised figure of 380,000. The 4-week moving average was 348,000, an increase of 4,250 from the previous week's revised average of 343,750.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending December 14, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending December 14 was 2,923,000, an increase of 46,000 from the preceding week's revised level of 2,877,000. The 4-week moving average was 2,836,750, an increase of 39,500 from the preceding week's revised average of 2,797,250.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 413,920 in the week ending December 21, a decrease of 159 from the previous week. There were 457,578 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 2.3 percent during the week ending December 14, an increase of 0.1 percentage point from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,984,815, an increase of 113,284 from the preceding week. A year earlier, the rate was 2.5 percent and the volume was 3,254,315.
The total number of people claiming benefits in all programs for the week ending December 7 was 4,279,284, a decrease of 132,858 from the previous week. There were 5,471,714 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending December 7.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,869 in the week ending December 14, a decrease of 306 from the prior week. There were 2,004 initial claims filed by newly discharged veterans, a decrease of 352 from the preceding week.
There were 20,880 former Federal civilian employees claiming UI benefits for the week ending December 7, a decrease of 1,559 from the previous week. Newly discharged veterans claiming benefits totaled 31,459, a decrease of 1,478 from the prior week.
States reported 1,333,332 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending December 7, a decrease of 40,699 from the prior week. There were 2,096,243 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending December 14 were in Alaska (5.3), Puerto Rico (3.8), Pennsylvania (3.5), California (3.3), Connecticut (3.1), Montana (3.1), West Virginia (3.1), Illinois (2.8), Oregon (2.8), and Wisconsin (2.8).
The largest increases in initial claims for the week ending December 14 were in California (+4,622), Illinois (+3,686), Massachusetts (+2,331), Ohio (+1,529), and Indiana (+1,473), while the largest decreases were in New York (-12,706), Pennsylvania (-10,866), Georgia (-8,340), Texas (-4,904), and Wisconsin (-4,821).
U.S. DEFENSE DEPARTMENT CONTRACTS FOR DECEMBER 26, 2013
FROM: U.S. DEFENSE DEPARTMENT
CONTRACTS
AIR FORCE
The Aerospace Corp., El Segundo, Calif., was awarded a $24,000,000 modification (P00006) on an existing cost-plus-fixed-fee, five year contract (FA8802-14-C-0001) for general life cycle systems engineering and integration for the National Security Space Community. Contractor will provide planning, systems definition, and technical specification support, analyze user needs, design and design alternative, interoperability, manufacturing and quality control, and assist with test and evaluation, launch support, flight tests, orbital operations and integration of space systems into effective systems of systems. Work will be performed at El Segundo, Calif., and is expected to be completed by Sept. 30, 2014. The contract is being incrementally funded using fiscal 2014 operations and maintenance funds. Space and Missile Systems Center/PKE, Los Angeles Air Force Base, Calif., is the contracting activity.
ARMY
Boeing Co, Ridley, Park, Pa., was awarded a $617,676,589 modification (P0004) to contract W58RGZ-14-C-0003 for the remanufacture of twenty- two CH-47F helicopters, six new CH-47F helicopters, and long lead funding for remanufacturing thirteen CH-47F helicopters. Fiscal 2014 other procurement funds in the amount of $615,046,591 were obligated at the time of the award. Estimated completion date is Dec. 31, 2020. Work will be performed at Ridley Park, Pa. Army Contracting Command, Redstone, Arsenal, Ala., is the contracting activity.
General Dynamics Information Technology, Fairfax, Va., was awarded a $26,491,522 modification (P00021) to contract W52P1J-11-C-0019 to sort and classify material turned in by units and to re-issue serviceable material to deploying units. Fiscal 2014 operations and maintenance funds in the amount of $26,491,522 were obligated at the time of the award. Estimated completion date is Dec. 29, 2014. Work will be performed in Kuwait. Army Contracting Command, Rock Island Arsenal, Ill., is the contracting activity.
Science Applications International Corp., McLean, Va., was awarded a $24,958,310 modification (P00024) to contract W52P1J-11-C-0005 to support the ammunition supply point/theater storage area, Camp Arifjan, Kuwait for the issue, storage, and receipt of Class V munitions for the 1st Theater Support Command and other Central Command forces. Fiscal 2014 operations and maintenance funds in the amount of $22,006,134 were obligated at the time of the award. Estimated completion date is Dec. 29, 2014. Work will be performed in Kuwait. Army Contracting Command, Rock Island Arsenal, Ill., is the contracting activity.
*Dills Architects, P.C., Virginia Beach, Va., (W91236-14-D-0016); *KZF Design, Inc., Cincinnati, Ohio (W91236-14-D-0017); and *CEMS Engineering Inc., Ladson, S.C., (W91236-14-D-0018) were awarded a $10,000,000 firm-fixed-price, multiple-award contract for architectural and engineering services for the planning, design and construction of a dependent elementary and secondary school area office. Funding and location will be determined with each order. Estimated completion date is Dec. 25, 2017. Bids were solicited via the Internet with thirty-nine received. Army Corps of Engineers, Norfolk, Va., is the contracting activity.
Trax International Corp, Las Vegas, Nev., was awarded an $8,647,158 modification (P00116) to contract W9124R-09-C-0003 for test services supporting the Army's Yuma Proving Ground, Ariz. Fiscal 2014 research development test and evaluation funds in the amount of $8,647,158 were obligated at the time of the award. Estimated completion date is Jan. 31, 2014. Work will be performed in Yuma, Ariz. and at Fort Greely, Alaska. Army Contracting Command, Yuma Proving Ground, Ariz., is the contracting activity.
General Dynamics C4 Systems, Huntsville, Ala. was awarded a $6,657,441 cost-plus-fixed-fee contract for engineering services and logistics for the tactical airspace integration air traffic control system. Fiscal 2014 operations and maintenance funds in the amount of $6,657,441 were obligated at the time of the award. Estimated completion date is Jun 30, 2016. Bids were solicited via the Internet with one received. Work will be performed in Huntsville, Ala, Afghanistan, and South Korea. Army Contracting Command, Rock Island Arsenal, Ill., is the contracting activity (W58RGZ-14-C-0003).
NAVY
General Dynamics, NASSCO, Norfolk, Va., (formerly Metro Machine Corp.) is being awarded an $171,961,941 undefinitized contract action as a modification to a previously awarded contract (N00024-09-C-4416) for USS Carter Hall fiscal 2014 extended dry-docking planned maintenance availability. Work will be performed in Norfolk, Va., and is expected to be completed by April 2015. Fiscal 2014 operations and maintenance, Navy and Fiscal 2014 other procurement, Navy funds in the amount of $104,155,547 will be obligated at time of award. Contract funds in the amount of $123,702,226 will expire at the end of the current fiscal year. The Norfolk Ship Support Activity, Norfolk, Va., is the contracting activity.
The Boeing Co., Oklahoma City, Okla., is being awarded a $43,200,000 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract to provide engineering and technical field services to inform, instruct and train Navy and Marine Corps military and civilian personnel at various fleet and shore activities on how to install, operate and maintain equipment on AV-8B, EA-18G and F/A-18 aircraft. Work will be performed in Whidbey Island, Wash. (16 percent); Oceana, Va. (12 percent); Cherry Point, N.C. (8 percent); New Orleans, La. (8 percent); Lemoore, Calif. (8 percent); Miramar, Calif. (8 percent); Pensacola, Fla. (8 percent); Yuma, Ariz. (8 percent); Atsugi, Japan (8 percent); Kuwait (8 percent); Beaufort, N.C. (4 percent), and Fort Worth, Texas. (4 percent) and is expected to be completed in December 2018. Fiscal 2014 operation and maintenance, Navy and Foreign Military Sales contract funds in the amount of $1,458,850 are being obligated on this award, $708,850 of which will expire at the end of the current fiscal year. This contract combines purchases for the U.S. Navy ($30,240,000; 70 percent); U.S. Marine Corps ($9,504,000, 22 percent); and the Government of Kuwait ($3,456,000, 8 percent) under the Foreign Military Sales Program. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Warfare Center Weapons Division, China Lake, Calif. is the contracting activity (N68936-14-D-0010)
Sensor and Antenna Systems, Lansdale, Pa., is being awarded a $21,804,323 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0047) to exercise an option for the procurement of eight Low Band Transmitters (LBT), 11 Vertically Polarized (VPOL) Antennas, and 17 High Band Horizontally Polarized (HPOL) Antennas for the AN/ALQ-99 Tactical Jamming System (TJS) for the U.S. Navy. In addition, this option provides for the procurement of 11 LBT, 6 VPOL Antennas, 6 Band-2 Adapter Interface Assemblies, and 7 High Band Horizontally Polarized HPOL Antennas for the AN/ALQ-99 TJS for the Government of Australia. Work will be performed in Lansdale, Pa., and is expected to be completed in July 2016. Fiscal 2012, 2013, 2014 aircraft procurement Navy, and Foreign Military Sales funds in the amount of $21,804,323 will be obligated at time of award, $180,080 of which will expire at the end of the fiscal year. This contract combines purchases for the U.S. Navy ($9,973,
082; 45.7 percent); the Government of Australia ($11,831,241; 54.3 percent) under the Foreign Military Sales Program. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
Lockheed Martin Corp., Marietta, Ga., is being awarded an $11,060,628 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for logistics and engineering services in support of the C/KC-130J Aircraft for the U.S. Marine Corps/Marine Corps Reserve, U.S. Coast Guard and the Kuwait Air Force. Work will be performed in Marietta, Ga. (65.3 percent); Afghanistan (12 percent); Palmdale, Calif. (9.2 percent); Kuwait (3.3 percent); Okinawa, Japan (3 percent); Miramar, Calif. (1.8 percent); Cherry Point, N.C. (1.7 percent); Elizabeth City, N.C. (1.6 percent); Fort Worth, Texas (1.5 percent); and Greenville, S.C. (.6 percent); and is expected to be completed in December 2014. No funds are being obligated at time of award. Funds will be obligated against individual delivery orders as they are issued. This contract combines purchases for the U.S. Marine Corps/Marine Corps Reserve ($8,886,223; 80.3 percent); U.S. Coast Guard ($1,423,148; 12.9 percent); and the Government of Kuwait ($751,257; 6.8 percent) under the Foreign Military Sales Program. This contract was not competitively procured pursuant to 10 U.S.C. 2304(c)(1). The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-14-D-0006).
Raytheon Technical Services Co. LLC, Norfolk, Va., is being awarded an $8,496,327 task order under a previously awarded cost-plus-fixed-fee basic ordering agreement (N00024-09-G-5442) for technical support services, Overhaul, Turnaround and Life Extension Refurbishment program in support of the NATO SEASPARROW Surface Missile System and Test Acquisition System (TAS). Work will be performed in Norfolk, Va., (50 percent) and Chula Vista, Calif., (50 percent) and is expected to be completed by September 2014. Fiscal 2014 other procurement, Navy and Fiscal 2014 shipbuilding and conversion, Navy funds in the amount of $50,000 will be obligated at time of award. Contract funds will not expire at the end of the current fiscal year. Naval Surface Warfare Center, Port Hueneme, Calif., is the contracting activity.
*Small Business
CONTRACTS
AIR FORCE
The Aerospace Corp., El Segundo, Calif., was awarded a $24,000,000 modification (P00006) on an existing cost-plus-fixed-fee, five year contract (FA8802-14-C-0001) for general life cycle systems engineering and integration for the National Security Space Community. Contractor will provide planning, systems definition, and technical specification support, analyze user needs, design and design alternative, interoperability, manufacturing and quality control, and assist with test and evaluation, launch support, flight tests, orbital operations and integration of space systems into effective systems of systems. Work will be performed at El Segundo, Calif., and is expected to be completed by Sept. 30, 2014. The contract is being incrementally funded using fiscal 2014 operations and maintenance funds. Space and Missile Systems Center/PKE, Los Angeles Air Force Base, Calif., is the contracting activity.
ARMY
Boeing Co, Ridley, Park, Pa., was awarded a $617,676,589 modification (P0004) to contract W58RGZ-14-C-0003 for the remanufacture of twenty- two CH-47F helicopters, six new CH-47F helicopters, and long lead funding for remanufacturing thirteen CH-47F helicopters. Fiscal 2014 other procurement funds in the amount of $615,046,591 were obligated at the time of the award. Estimated completion date is Dec. 31, 2020. Work will be performed at Ridley Park, Pa. Army Contracting Command, Redstone, Arsenal, Ala., is the contracting activity.
General Dynamics Information Technology, Fairfax, Va., was awarded a $26,491,522 modification (P00021) to contract W52P1J-11-C-0019 to sort and classify material turned in by units and to re-issue serviceable material to deploying units. Fiscal 2014 operations and maintenance funds in the amount of $26,491,522 were obligated at the time of the award. Estimated completion date is Dec. 29, 2014. Work will be performed in Kuwait. Army Contracting Command, Rock Island Arsenal, Ill., is the contracting activity.
Science Applications International Corp., McLean, Va., was awarded a $24,958,310 modification (P00024) to contract W52P1J-11-C-0005 to support the ammunition supply point/theater storage area, Camp Arifjan, Kuwait for the issue, storage, and receipt of Class V munitions for the 1st Theater Support Command and other Central Command forces. Fiscal 2014 operations and maintenance funds in the amount of $22,006,134 were obligated at the time of the award. Estimated completion date is Dec. 29, 2014. Work will be performed in Kuwait. Army Contracting Command, Rock Island Arsenal, Ill., is the contracting activity.
*Dills Architects, P.C., Virginia Beach, Va., (W91236-14-D-0016); *KZF Design, Inc., Cincinnati, Ohio (W91236-14-D-0017); and *CEMS Engineering Inc., Ladson, S.C., (W91236-14-D-0018) were awarded a $10,000,000 firm-fixed-price, multiple-award contract for architectural and engineering services for the planning, design and construction of a dependent elementary and secondary school area office. Funding and location will be determined with each order. Estimated completion date is Dec. 25, 2017. Bids were solicited via the Internet with thirty-nine received. Army Corps of Engineers, Norfolk, Va., is the contracting activity.
Trax International Corp, Las Vegas, Nev., was awarded an $8,647,158 modification (P00116) to contract W9124R-09-C-0003 for test services supporting the Army's Yuma Proving Ground, Ariz. Fiscal 2014 research development test and evaluation funds in the amount of $8,647,158 were obligated at the time of the award. Estimated completion date is Jan. 31, 2014. Work will be performed in Yuma, Ariz. and at Fort Greely, Alaska. Army Contracting Command, Yuma Proving Ground, Ariz., is the contracting activity.
General Dynamics C4 Systems, Huntsville, Ala. was awarded a $6,657,441 cost-plus-fixed-fee contract for engineering services and logistics for the tactical airspace integration air traffic control system. Fiscal 2014 operations and maintenance funds in the amount of $6,657,441 were obligated at the time of the award. Estimated completion date is Jun 30, 2016. Bids were solicited via the Internet with one received. Work will be performed in Huntsville, Ala, Afghanistan, and South Korea. Army Contracting Command, Rock Island Arsenal, Ill., is the contracting activity (W58RGZ-14-C-0003).
NAVY
General Dynamics, NASSCO, Norfolk, Va., (formerly Metro Machine Corp.) is being awarded an $171,961,941 undefinitized contract action as a modification to a previously awarded contract (N00024-09-C-4416) for USS Carter Hall fiscal 2014 extended dry-docking planned maintenance availability. Work will be performed in Norfolk, Va., and is expected to be completed by April 2015. Fiscal 2014 operations and maintenance, Navy and Fiscal 2014 other procurement, Navy funds in the amount of $104,155,547 will be obligated at time of award. Contract funds in the amount of $123,702,226 will expire at the end of the current fiscal year. The Norfolk Ship Support Activity, Norfolk, Va., is the contracting activity.
The Boeing Co., Oklahoma City, Okla., is being awarded a $43,200,000 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract to provide engineering and technical field services to inform, instruct and train Navy and Marine Corps military and civilian personnel at various fleet and shore activities on how to install, operate and maintain equipment on AV-8B, EA-18G and F/A-18 aircraft. Work will be performed in Whidbey Island, Wash. (16 percent); Oceana, Va. (12 percent); Cherry Point, N.C. (8 percent); New Orleans, La. (8 percent); Lemoore, Calif. (8 percent); Miramar, Calif. (8 percent); Pensacola, Fla. (8 percent); Yuma, Ariz. (8 percent); Atsugi, Japan (8 percent); Kuwait (8 percent); Beaufort, N.C. (4 percent), and Fort Worth, Texas. (4 percent) and is expected to be completed in December 2018. Fiscal 2014 operation and maintenance, Navy and Foreign Military Sales contract funds in the amount of $1,458,850 are being obligated on this award, $708,850 of which will expire at the end of the current fiscal year. This contract combines purchases for the U.S. Navy ($30,240,000; 70 percent); U.S. Marine Corps ($9,504,000, 22 percent); and the Government of Kuwait ($3,456,000, 8 percent) under the Foreign Military Sales Program. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Warfare Center Weapons Division, China Lake, Calif. is the contracting activity (N68936-14-D-0010)
Sensor and Antenna Systems, Lansdale, Pa., is being awarded a $21,804,323 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0047) to exercise an option for the procurement of eight Low Band Transmitters (LBT), 11 Vertically Polarized (VPOL) Antennas, and 17 High Band Horizontally Polarized (HPOL) Antennas for the AN/ALQ-99 Tactical Jamming System (TJS) for the U.S. Navy. In addition, this option provides for the procurement of 11 LBT, 6 VPOL Antennas, 6 Band-2 Adapter Interface Assemblies, and 7 High Band Horizontally Polarized HPOL Antennas for the AN/ALQ-99 TJS for the Government of Australia. Work will be performed in Lansdale, Pa., and is expected to be completed in July 2016. Fiscal 2012, 2013, 2014 aircraft procurement Navy, and Foreign Military Sales funds in the amount of $21,804,323 will be obligated at time of award, $180,080 of which will expire at the end of the fiscal year. This contract combines purchases for the U.S. Navy ($9,973,
082; 45.7 percent); the Government of Australia ($11,831,241; 54.3 percent) under the Foreign Military Sales Program. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
Lockheed Martin Corp., Marietta, Ga., is being awarded an $11,060,628 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for logistics and engineering services in support of the C/KC-130J Aircraft for the U.S. Marine Corps/Marine Corps Reserve, U.S. Coast Guard and the Kuwait Air Force. Work will be performed in Marietta, Ga. (65.3 percent); Afghanistan (12 percent); Palmdale, Calif. (9.2 percent); Kuwait (3.3 percent); Okinawa, Japan (3 percent); Miramar, Calif. (1.8 percent); Cherry Point, N.C. (1.7 percent); Elizabeth City, N.C. (1.6 percent); Fort Worth, Texas (1.5 percent); and Greenville, S.C. (.6 percent); and is expected to be completed in December 2014. No funds are being obligated at time of award. Funds will be obligated against individual delivery orders as they are issued. This contract combines purchases for the U.S. Marine Corps/Marine Corps Reserve ($8,886,223; 80.3 percent); U.S. Coast Guard ($1,423,148; 12.9 percent); and the Government of Kuwait ($751,257; 6.8 percent) under the Foreign Military Sales Program. This contract was not competitively procured pursuant to 10 U.S.C. 2304(c)(1). The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-14-D-0006).
Raytheon Technical Services Co. LLC, Norfolk, Va., is being awarded an $8,496,327 task order under a previously awarded cost-plus-fixed-fee basic ordering agreement (N00024-09-G-5442) for technical support services, Overhaul, Turnaround and Life Extension Refurbishment program in support of the NATO SEASPARROW Surface Missile System and Test Acquisition System (TAS). Work will be performed in Norfolk, Va., (50 percent) and Chula Vista, Calif., (50 percent) and is expected to be completed by September 2014. Fiscal 2014 other procurement, Navy and Fiscal 2014 shipbuilding and conversion, Navy funds in the amount of $50,000 will be obligated at time of award. Contract funds will not expire at the end of the current fiscal year. Naval Surface Warfare Center, Port Hueneme, Calif., is the contracting activity.
*Small Business
RECENT U.S. DEFENSE DEPARTMENT PHOTOS FROM AFGHANISTAN
FROM: U.S. DEFENSE DEPARTMENT
U.S. soldiers gather in a team huddle after prepping their mine-resistant, ambush-protected vehicle before moving out on missions on Bagram Airfield in Afghanistan's Parwan province, Dec. 22, 2013. U.S. Army photo by Sgt. Sinthia Rosario.
U.S. Army Staff Sgt. Jose A. Antepara guides a mine-resistant, ambush-protected vehicle before conducting missions on Bagram Airfield in Afghanistan's Parwan province, Afghanistan, Dec. 22, 2013. Antepara is a truck commander assigned to the 51st Transportation Company, 77th Combat Sustainment Support Battalion. U.S. Army photo by Sgt. Sinthia Rosario.
U.S. MARSHALS ANNOUNCE FUGITIVE ON THE RUN FOR 36 YEARS WAS ARRESTED
FROM: U.S. MARSHALS SERVICE
Chris Bozeman, Lone Star Fugitive Task Force
Deputy U.S. Marshal/Public Information Officer (PIO)
Western District of Texas – San Antonio (210) 657-8500
36 Years On The Run Can’t Out Run Justice
Fugitive To Face Attempted Murder Charges
LSFTF LogoFarmington Hills, MI – Kathlyn Regina Huff, 58, was arrested this evening by the United States Marshals Service Detroit Fugitive Apprehension Team (DFAT) in Farmington Hills, MI. An arrest warrant was issued pursuant to an investigation by the San Antonio Police Department (SAPD), where more than 36 years ago Huff was indicted on allegations of attempted murder.
On December 9, 2013, the Lone Star Fugitive Task Force Cold Case Squad (LSFTF CCS) initiated an investigation in the search for Huff. Subsequent to the investigation, task force officers discovered that Huff had previously fled from San Antonio, TX to Farmington Hills, MI. The LSFTF CCS then contacted the DFAT in Detroit, MI for assistance in locating and apprehending Huff. This evening, task force officers determined through investigative efforts that Huff was residing at a house in the 30000 block of Gladstone Street in Farmington Hills, MI. Task force officers conducted a brief surveillance and observed Huff arrive and park her vehicle in the driveway of the residence. Task force officers approached the vehicle, identified themselves, made contact with Huff, and took her into custody without incident.
On September 14, 1977, Huff was formally indicted by a Grand Jury in Bexar County on allegations of attempted murder. A warrant for Huff’s arrest was issued the same day. Reports stated that Huff allegedly shot a man in the head after a heated argument. Sometime after the alleged incident, Huff fled San Antonio, married, and started a new life as Kathlyn Regenia Rose. Huff may have eluded capture by law enforcement over the past 36 years due to her name change.
Huff is currently being held in custody at the Oakland County Jail awaiting extradition to Bexar County.
Robert R. Almonte, United States Marshal for the Western District of Texas, stated, “Words alone cannot express how proud I am of the investigative efforts displayed by the Lone Star Fugitive Task Force Cold Case Squad and the Detroit Fugitive Apprehension Team. This is a perfect example of how diligent and determined our task force officers are at solving the most challenging cases. No matter how many years a fugitive is on the run, we will hunt, we will search, and we will pursue until they are brought to justice.”
Members of the Lone Star Fugitive Task Force:
New Braunfels Police Department
San Antonio Police Department
San Antonio Independent School District Police Department
Bexar County Sheriff’s Office
Comal County Sheriff’s Office
Bexar County Fire Marshal’s Office
Bexar County District Attorney’s Office
Texas Office of The Attorney General
Texas Department of Public Safety
Texas Department of Criminal Justice – Office of the Inspector General
Immigration & Customs Enforcement – Office of Detention & Removal
U.S. Marshals Service
Chris Bozeman, Lone Star Fugitive Task Force
Deputy U.S. Marshal/Public Information Officer (PIO)
Western District of Texas – San Antonio (210) 657-8500
36 Years On The Run Can’t Out Run Justice
Fugitive To Face Attempted Murder Charges
LSFTF LogoFarmington Hills, MI – Kathlyn Regina Huff, 58, was arrested this evening by the United States Marshals Service Detroit Fugitive Apprehension Team (DFAT) in Farmington Hills, MI. An arrest warrant was issued pursuant to an investigation by the San Antonio Police Department (SAPD), where more than 36 years ago Huff was indicted on allegations of attempted murder.
On December 9, 2013, the Lone Star Fugitive Task Force Cold Case Squad (LSFTF CCS) initiated an investigation in the search for Huff. Subsequent to the investigation, task force officers discovered that Huff had previously fled from San Antonio, TX to Farmington Hills, MI. The LSFTF CCS then contacted the DFAT in Detroit, MI for assistance in locating and apprehending Huff. This evening, task force officers determined through investigative efforts that Huff was residing at a house in the 30000 block of Gladstone Street in Farmington Hills, MI. Task force officers conducted a brief surveillance and observed Huff arrive and park her vehicle in the driveway of the residence. Task force officers approached the vehicle, identified themselves, made contact with Huff, and took her into custody without incident.
On September 14, 1977, Huff was formally indicted by a Grand Jury in Bexar County on allegations of attempted murder. A warrant for Huff’s arrest was issued the same day. Reports stated that Huff allegedly shot a man in the head after a heated argument. Sometime after the alleged incident, Huff fled San Antonio, married, and started a new life as Kathlyn Regenia Rose. Huff may have eluded capture by law enforcement over the past 36 years due to her name change.
Huff is currently being held in custody at the Oakland County Jail awaiting extradition to Bexar County.
Robert R. Almonte, United States Marshal for the Western District of Texas, stated, “Words alone cannot express how proud I am of the investigative efforts displayed by the Lone Star Fugitive Task Force Cold Case Squad and the Detroit Fugitive Apprehension Team. This is a perfect example of how diligent and determined our task force officers are at solving the most challenging cases. No matter how many years a fugitive is on the run, we will hunt, we will search, and we will pursue until they are brought to justice.”
Members of the Lone Star Fugitive Task Force:
New Braunfels Police Department
San Antonio Police Department
San Antonio Independent School District Police Department
Bexar County Sheriff’s Office
Comal County Sheriff’s Office
Bexar County Fire Marshal’s Office
Bexar County District Attorney’s Office
Texas Office of The Attorney General
Texas Department of Public Safety
Texas Department of Criminal Justice – Office of the Inspector General
Immigration & Customs Enforcement – Office of Detention & Removal
U.S. Marshals Service
ADJUSTMENTS PROPOSED TO EXCEPTED BENEFITS REGULATIONS
FROM: U.S. DEPARTMENT OF LABOR
Obama administration proposes adjustments to excepted benefits regulations
WASHINGTON — The U.S. Departments of Labor, Health and Human Services, and Treasury today proposed rules that would adjust regulations under the Health Insurance Portability and Accountability Act of 1996 regarding excepted benefits to include employee assistance programs (EAPs). The proposed rules would also provide added options for employees and employers in connection with the Affordable Care Act.
"This proposal would give employers and workers more options for their health-care coverage while staying true to the consumer protections put in place by the Affordable Care Act," said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. "This is another example of federal agencies listening to public concerns and responding with solutions."
Under the HIPAA, excepted benefits are exempt from certain health reform requirements, including some requirements added by the Affordable Care Act. Since the passage of the Affordable Care Act, employers, employees and other stakeholders expressed concerns that past HIPAA definitions should be updated in light of new Affordable Care Act standards.
The proposed rules would amend current regulations to treat certain EAPs as excepted benefits, effective immediately. EAPs are typically free programs offered by employers that can provide wide-ranging benefits to address circumstances that might otherwise adversely affect employees’ work and health. Benefits may include short-term substance abuse or mental health counseling or referral services, as well as financial counseling and legal services. Under the proposed rules, EAPs would be considered excepted benefits if the program is free to employees and does not provide significant benefits in the nature of medical care or treatment. As excepted benefits, EAPs would be exempt from private insurance market reforms, and EAP coverage would not make individuals ineligible for a premium tax credit for enrolling in qualified health plans through the Health Insurance Marketplace.
Similarly, under the proposed regulations, vision and dental benefits provided by employers on a self-insured basis would be able to qualify as excepted benefits effective immediately, even if they do not require contributions from employees. Insured vision and dental benefits, as well as self-insured vision and dental coverage that requires employee contributions, already qualify as excepted benefits.
Effective for plan years starting in 2015, the proposed rules also would treat as excepted benefits certain limited coverage provided by plan sponsors that "wraps around" an individual market policy. The "wraparound" coverage would be available to employees for whom the plan sponsor’s primary group health coverage is not affordable and who instead get coverage through a nongrandfathered individual market policy. The wraparound coverage would provide extra benefits or broader networks, and may also reduce cost sharing. The proposal would not allow the wraparound coverage to substitute for employment-based coverage. The value of the wraparound coverage could not exceed 15 percent of the value of the primary coverage offered by the plan sponsor, which must be affordable for at least the majority of employees.
Obama administration proposes adjustments to excepted benefits regulations
WASHINGTON — The U.S. Departments of Labor, Health and Human Services, and Treasury today proposed rules that would adjust regulations under the Health Insurance Portability and Accountability Act of 1996 regarding excepted benefits to include employee assistance programs (EAPs). The proposed rules would also provide added options for employees and employers in connection with the Affordable Care Act.
"This proposal would give employers and workers more options for their health-care coverage while staying true to the consumer protections put in place by the Affordable Care Act," said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. "This is another example of federal agencies listening to public concerns and responding with solutions."
Under the HIPAA, excepted benefits are exempt from certain health reform requirements, including some requirements added by the Affordable Care Act. Since the passage of the Affordable Care Act, employers, employees and other stakeholders expressed concerns that past HIPAA definitions should be updated in light of new Affordable Care Act standards.
The proposed rules would amend current regulations to treat certain EAPs as excepted benefits, effective immediately. EAPs are typically free programs offered by employers that can provide wide-ranging benefits to address circumstances that might otherwise adversely affect employees’ work and health. Benefits may include short-term substance abuse or mental health counseling or referral services, as well as financial counseling and legal services. Under the proposed rules, EAPs would be considered excepted benefits if the program is free to employees and does not provide significant benefits in the nature of medical care or treatment. As excepted benefits, EAPs would be exempt from private insurance market reforms, and EAP coverage would not make individuals ineligible for a premium tax credit for enrolling in qualified health plans through the Health Insurance Marketplace.
Similarly, under the proposed regulations, vision and dental benefits provided by employers on a self-insured basis would be able to qualify as excepted benefits effective immediately, even if they do not require contributions from employees. Insured vision and dental benefits, as well as self-insured vision and dental coverage that requires employee contributions, already qualify as excepted benefits.
Effective for plan years starting in 2015, the proposed rules also would treat as excepted benefits certain limited coverage provided by plan sponsors that "wraps around" an individual market policy. The "wraparound" coverage would be available to employees for whom the plan sponsor’s primary group health coverage is not affordable and who instead get coverage through a nongrandfathered individual market policy. The wraparound coverage would provide extra benefits or broader networks, and may also reduce cost sharing. The proposal would not allow the wraparound coverage to substitute for employment-based coverage. The value of the wraparound coverage could not exceed 15 percent of the value of the primary coverage offered by the plan sponsor, which must be affordable for at least the majority of employees.
DETROIT-BASED ALLY BANK RESOLVES ALLEGATIONS OF LENDING DISCRIMINATION
FROM: U.S. JUSTICE DEPARTMENT
Friday, December 20, 2013
Justice Department and Consumer Financial Protection Bureau Reach $98 Million Settlement to Resolve Allegations of Auto Lending Discrimination by Ally
Settlement Is Department’s Third Largest Fair Lending Agreement Ever and Largest Ever Auto Lending Agreement
The Department of Justice and the Consumer Financial Protection Bureau (CFPB) today announced the federal government’s largest auto loan discrimination settlement in history to resolve allegations that Detroit-based Ally Financial Inc. and Ally Bank have engaged in an ongoing nationwide pattern or practice of discrimination against African-American, Hispanic and Asian/Pacific Islander borrowers in their auto lending since April 1, 2011. The agreement is the first joint fair lending enforcement action by the department and CFPB. With this agreement, eight of the top 10 largest fair lending settlements in the department’s history have been under Attorney General Eric Holder’s leadership.
The settlement provides $80 million in compensation for victims of past discrimination by one of the nation’s largest auto lenders and requires Ally to pay $18 million to the CFPB’s Civil Penalty Fund. Ally also must refund discriminatory overcharges to borrowers for the next three years unless it significantly reduces disparities in unjustified interest rate markups. This system will create a strong financial incentive to eliminate discriminatory overcharges.
“With this largest-ever settlement in an auto loan discrimination case, we are taking a firm stand against discrimination in a critical lending market,” said Attorney General Eric Holder. “By requiring Ally to provide refunds to those who are overcharged because of their race or national origin, this agreement will ensure relief for Americans who are victimized. It will enable the Justice Department and the CFPB to work closely with Ally and others to prevent discriminatory practices in the future. And it will reinforce our determination to respond aggressively to discrimination in America’s lending markets – wherever it is found.”
The settlement resolves claims by the department and the CFPB that Ally discriminated by charging approximately 235,000 African-American, Hispanic and Asian/Pacific Islander borrowers higher interest rates than non-Hispanic white borrowers. The agencies claim that Ally charged borrowers higher interest rates because of their race or national origin, and not because of the borrowers’ creditworthiness or other objective criteria related to borrower risk. The average victim paid between $200 and $300 extra during the term of the loan. The Equal Credit Opportunity Act (ECOA) prohibits such discrimination in all forms of lending, including auto lending. Ally’s settlement with the DOJ, which is subject to court approval, was filed today in the U.S. District Court for the Eastern District of Michigan in conjunction with the DOJ’s complaint. Ally resolved the CFPB’s claims by entering into a public administrative settlement.
“Discrimination is a serious issue across every consumer credit market,” said CFPB Director Richard Cordray. “We are returning $80 million to hard-working consumers who paid more for their cars or trucks based on their race or national origin. We look forward to working closely with the Justice Department and Ally to make sure this serious issue will be addressed appropriately in the years ahead as well.”
Rather than taking applications directly from consumers, Ally makes most of its loans through over 12,000 car dealers nationwide who help their customers pay for their new or used car by submitting their loan application to Ally. Ally’s business practice, like most other major auto lenders, allows car dealers discretion to vary a loan’s interest rate from the price Ally initially sets based on the borrower’s objective credit-related factors. Dealers receive greater payments from Ally on loans that include a higher interest rate markup. The coordinated investigations by the department and the CFPB that preceded today’s settlement determined this system of subjective and unguided pricing discretion directly results in Ally’s qualified African-American, Hispanic and Asian/Pacific Islander borrowers paying more than qualified non-Hispanic white borrowers.
The agencies claim that Ally fails to adequately monitor its interest rate markups for discrimination or require dealers to document their markup decisions. Ally’s first effort to monitor for discrimination in interest rate markups began only earlier this year after it learned of the CFPB’s preliminary findings of discrimination, and resulted in only two dealers being sanctioned and subjected to nothing more than voluntary training.
“This settlement provides relief to those who were harmed by this discrimination,” said U.S. Attorney for the Eastern District of Michigan Barbara McQuade. “Lenders must consider an individual borrower’s credit worthiness, based on income, savings, credit history and other objective factors when determining the terms of a loan. This settlement will ensure that in the future, borrowers will be able to obtain loans from Ally based on their own credit history free from discrimination based on race or national origin.”
Today’s settlement represents the first resolution of the department’s joint effort with the CFPB to address discriminatory auto lending practices. The 2010 Dodd-Frank Act gave both the DOJ and the CFPB authority to take action against large banks like Ally for violating the ECOA. Although the department has filed previously filed lawsuits alleging violations of ECOA involving car loans, today is the first ECOA lawsuit against an auto lender that operates nationwide.
In addition to the $98 million in payments for its past conduct and requirement to refund future discriminatory charges, the settlement requires Ally to improve its monitoring and compliance systems. The settlement allows Ally to experiment with different approaches toward lessening discrimination and requires it to regularly report to the department and the CFPB on the results of its efforts as well as discuss potential ways to improve results. The department commends Ally for working cooperatively to reach an appropriate resolution of this case. The department looks forward to Ally’s commitment, as part of the settlement, to work with the Civil Rights Division and the CFPB to find improved ways to fairly charge all consumers while also fairly compensating auto dealers for the services they provide.
The department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Rights Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 30 lending matters under the Fair Housing Act, ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for a minimum of $775 million in monetary relief for impacted communities and more than 535,000 individual borrowers.
The settlement provides for an independent administrator to locate victims and distribute payments of compensation at no cost to borrowers whom the department and the CFPB identify as victims of Ally’s discrimination. The department and the CFPB will make a public announcement and post information on their websites once more details about the compensation process become available. Borrowers who are eligible for compensation from the settlement will be contacted by the administrator, and do not need to contact the department or the CFPB at this time. Individuals who have auto loan questions or would like to submit a complaint can contact the CFPB at (855) 411-2372.
The Civil Rights Division, the U.S. Attorney’s Office for the Eastern District of Michigan and the CFPB are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
Friday, December 20, 2013
Justice Department and Consumer Financial Protection Bureau Reach $98 Million Settlement to Resolve Allegations of Auto Lending Discrimination by Ally
Settlement Is Department’s Third Largest Fair Lending Agreement Ever and Largest Ever Auto Lending Agreement
The Department of Justice and the Consumer Financial Protection Bureau (CFPB) today announced the federal government’s largest auto loan discrimination settlement in history to resolve allegations that Detroit-based Ally Financial Inc. and Ally Bank have engaged in an ongoing nationwide pattern or practice of discrimination against African-American, Hispanic and Asian/Pacific Islander borrowers in their auto lending since April 1, 2011. The agreement is the first joint fair lending enforcement action by the department and CFPB. With this agreement, eight of the top 10 largest fair lending settlements in the department’s history have been under Attorney General Eric Holder’s leadership.
The settlement provides $80 million in compensation for victims of past discrimination by one of the nation’s largest auto lenders and requires Ally to pay $18 million to the CFPB’s Civil Penalty Fund. Ally also must refund discriminatory overcharges to borrowers for the next three years unless it significantly reduces disparities in unjustified interest rate markups. This system will create a strong financial incentive to eliminate discriminatory overcharges.
“With this largest-ever settlement in an auto loan discrimination case, we are taking a firm stand against discrimination in a critical lending market,” said Attorney General Eric Holder. “By requiring Ally to provide refunds to those who are overcharged because of their race or national origin, this agreement will ensure relief for Americans who are victimized. It will enable the Justice Department and the CFPB to work closely with Ally and others to prevent discriminatory practices in the future. And it will reinforce our determination to respond aggressively to discrimination in America’s lending markets – wherever it is found.”
The settlement resolves claims by the department and the CFPB that Ally discriminated by charging approximately 235,000 African-American, Hispanic and Asian/Pacific Islander borrowers higher interest rates than non-Hispanic white borrowers. The agencies claim that Ally charged borrowers higher interest rates because of their race or national origin, and not because of the borrowers’ creditworthiness or other objective criteria related to borrower risk. The average victim paid between $200 and $300 extra during the term of the loan. The Equal Credit Opportunity Act (ECOA) prohibits such discrimination in all forms of lending, including auto lending. Ally’s settlement with the DOJ, which is subject to court approval, was filed today in the U.S. District Court for the Eastern District of Michigan in conjunction with the DOJ’s complaint. Ally resolved the CFPB’s claims by entering into a public administrative settlement.
“Discrimination is a serious issue across every consumer credit market,” said CFPB Director Richard Cordray. “We are returning $80 million to hard-working consumers who paid more for their cars or trucks based on their race or national origin. We look forward to working closely with the Justice Department and Ally to make sure this serious issue will be addressed appropriately in the years ahead as well.”
Rather than taking applications directly from consumers, Ally makes most of its loans through over 12,000 car dealers nationwide who help their customers pay for their new or used car by submitting their loan application to Ally. Ally’s business practice, like most other major auto lenders, allows car dealers discretion to vary a loan’s interest rate from the price Ally initially sets based on the borrower’s objective credit-related factors. Dealers receive greater payments from Ally on loans that include a higher interest rate markup. The coordinated investigations by the department and the CFPB that preceded today’s settlement determined this system of subjective and unguided pricing discretion directly results in Ally’s qualified African-American, Hispanic and Asian/Pacific Islander borrowers paying more than qualified non-Hispanic white borrowers.
The agencies claim that Ally fails to adequately monitor its interest rate markups for discrimination or require dealers to document their markup decisions. Ally’s first effort to monitor for discrimination in interest rate markups began only earlier this year after it learned of the CFPB’s preliminary findings of discrimination, and resulted in only two dealers being sanctioned and subjected to nothing more than voluntary training.
“This settlement provides relief to those who were harmed by this discrimination,” said U.S. Attorney for the Eastern District of Michigan Barbara McQuade. “Lenders must consider an individual borrower’s credit worthiness, based on income, savings, credit history and other objective factors when determining the terms of a loan. This settlement will ensure that in the future, borrowers will be able to obtain loans from Ally based on their own credit history free from discrimination based on race or national origin.”
Today’s settlement represents the first resolution of the department’s joint effort with the CFPB to address discriminatory auto lending practices. The 2010 Dodd-Frank Act gave both the DOJ and the CFPB authority to take action against large banks like Ally for violating the ECOA. Although the department has filed previously filed lawsuits alleging violations of ECOA involving car loans, today is the first ECOA lawsuit against an auto lender that operates nationwide.
In addition to the $98 million in payments for its past conduct and requirement to refund future discriminatory charges, the settlement requires Ally to improve its monitoring and compliance systems. The settlement allows Ally to experiment with different approaches toward lessening discrimination and requires it to regularly report to the department and the CFPB on the results of its efforts as well as discuss potential ways to improve results. The department commends Ally for working cooperatively to reach an appropriate resolution of this case. The department looks forward to Ally’s commitment, as part of the settlement, to work with the Civil Rights Division and the CFPB to find improved ways to fairly charge all consumers while also fairly compensating auto dealers for the services they provide.
The department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Rights Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 30 lending matters under the Fair Housing Act, ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for a minimum of $775 million in monetary relief for impacted communities and more than 535,000 individual borrowers.
The settlement provides for an independent administrator to locate victims and distribute payments of compensation at no cost to borrowers whom the department and the CFPB identify as victims of Ally’s discrimination. The department and the CFPB will make a public announcement and post information on their websites once more details about the compensation process become available. Borrowers who are eligible for compensation from the settlement will be contacted by the administrator, and do not need to contact the department or the CFPB at this time. Individuals who have auto loan questions or would like to submit a complaint can contact the CFPB at (855) 411-2372.
The Civil Rights Division, the U.S. Attorney’s Office for the Eastern District of Michigan and the CFPB are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
NSF ON STUDYING "SOCIAL BACTERIA"
FROM: NATIONAL SCIENCE FOUNDATION
"Social" bacteria that work together to hunt for food and survive under harsh conditions
Research into multi-cell bacterium could lead to new antibiotics or to development of new pest-resistant seeds
When considering the behavior of bacteria, the word "social" doesn't often come to mind.
Yet some bacteria are quite social, chief among them Myxococcus xanthus, a soil-dwelling bacterium that organizes itself into multi-cellular, three-dimensional structures made up of thousands of cells that work together to hunt for food and survive under harsh conditions.
"For the first 100 years of microbiology, researchers were trying to find model organisms to study bacteria, and most were selected because they had some medical or industrial significance influence, such as E. coli, and because they grow very well in the standard test tube," says Oleg Igoshin, an assistant professor of bioengineering at Rice University. "But when you base your choice on their behavior in a test tube, and not on social behavior or spatial structure, you lose some interesting species to study.
"The story is quite different for Myxococcus xanthus," he adds. "They are a very social bacteria that form really cool structures, and rely on each other for survival."
Myxococcus xanthus is "predatory," meaning it eats other microbes, although it is not harmful to humans. It is of great interest to researchers because of its self-made complex spatial formations, some even visible to the naked eye, and because it can kill efficiently and digest a wide range of microbial species.
"Their three-dimensional structures contain hundreds of thousands of bacteria, plus extra cellular material that holds the bacteria together like glue," says the National Science Foundation (NSF)-funded computational biologist, who is using both data-driven modeling and simulations to learn how M. xanthus behaves when there is sufficient food available, and when there is not. "We are trying to identify the mechanisms to understand how they achieve their multi-cellular behaviors."
Studying this organism addresses fundamental biological questions about how individual cells can break their symmetry to organize into these complicated many-celled compositions, teaching scientists about the evolution of multi-cellularity. "The most primitive form of life is single-cell life," Igoshin says. "The next step up would be going from single cells to multicellular organisms. These bacteria are somewhat in the middle."
When food is plentiful, these bacteria move in coordinated swarms, called ripples, often containing thousands of cells, which secrete enzymes into the environment to kill their prey and digest it outside their structure before taking in the resulting nutrients.
"M. xanthus has the ability to produce some powerful antibiotics that kill other species and enzymes that chew up the prey proteins into small segments," Igoshin says. "Single cells can't produce enough of these antibiotics or enzymes to effectively kill their prey, which is why they hunt together as a group."
But when food is scarce, M. xanthus takes another shape, forming itself into mounds of spores called fruiting bodies, where they can survive for a long time, sometimes for many years, until conditions improve and they can germinate again. "A single spore wouldn't survive," he says. "They need to be together."
The insights gained from a better understanding of how this bacterium functions potentially could help future researchers in designing new antibiotics, or possibly have a role in agricultural practices, such as developing new pest-resistant seeds. Moreover, deciphering the basic biology of multicellular organization can help to understand its more complex manifestations, such as embryonic development.
Igoshin is using M. xanthus as a model system for his computational tools, using approaches that involve both data analysis and simulation, both of which "have become a cornerstone of biological research in the modern era of biology," he says.
"I use reverse engineering approaches to look at these microscopic structures and try to figure out what these individual cells should do in order to produce this type of behavior," he adds. "I put in parameters such as size, velocity, flexibility, speed--some we can measure, some we can guess--and see whether the computer simulations will produce structures similar to those observed."
Igoshin is conducting his research under an NSF Faculty Early Career Development (CAREER) award, which he received in 2009. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education, and the integration of education and research within the context of the mission of their organization. NSF is funding his work with $640,000 over five years.
He is collaborating with other experimental labs to study this organism, including Roy Welch, associate professor of biology at Syracuse University; Lawrence Shimkets, professor of biology at the University of Georgia; and Heidi Kaplan, associate professor of microbiology and genetics at the University of Texas-Houston Medical School.
As part of the grant's educational component, Igoshin and his colleagues created a new interdisciplinary graduate program at Rice offering doctoral degree in systems, synthetic, and physical biology, that began in the fall of 2013. Igoshin, who co-wrote the program proposal, serves on the program steering committee, and the admission and recruitment committee.
"Answering complex biological questions in the post-genomic era will require multidisciplinary approaches combining both experimental and computational methods" he says. "Our new program aims to educate a new generation of life-scientists that have truly interdisciplinary training and therefore can work together on these challenges."
-- Marlene Cimons, National Science Foundation
Investigators
Oleg Igoshin
"Social" bacteria that work together to hunt for food and survive under harsh conditions
Research into multi-cell bacterium could lead to new antibiotics or to development of new pest-resistant seeds
When considering the behavior of bacteria, the word "social" doesn't often come to mind.
Yet some bacteria are quite social, chief among them Myxococcus xanthus, a soil-dwelling bacterium that organizes itself into multi-cellular, three-dimensional structures made up of thousands of cells that work together to hunt for food and survive under harsh conditions.
"For the first 100 years of microbiology, researchers were trying to find model organisms to study bacteria, and most were selected because they had some medical or industrial significance influence, such as E. coli, and because they grow very well in the standard test tube," says Oleg Igoshin, an assistant professor of bioengineering at Rice University. "But when you base your choice on their behavior in a test tube, and not on social behavior or spatial structure, you lose some interesting species to study.
"The story is quite different for Myxococcus xanthus," he adds. "They are a very social bacteria that form really cool structures, and rely on each other for survival."
Myxococcus xanthus is "predatory," meaning it eats other microbes, although it is not harmful to humans. It is of great interest to researchers because of its self-made complex spatial formations, some even visible to the naked eye, and because it can kill efficiently and digest a wide range of microbial species.
"Their three-dimensional structures contain hundreds of thousands of bacteria, plus extra cellular material that holds the bacteria together like glue," says the National Science Foundation (NSF)-funded computational biologist, who is using both data-driven modeling and simulations to learn how M. xanthus behaves when there is sufficient food available, and when there is not. "We are trying to identify the mechanisms to understand how they achieve their multi-cellular behaviors."
Studying this organism addresses fundamental biological questions about how individual cells can break their symmetry to organize into these complicated many-celled compositions, teaching scientists about the evolution of multi-cellularity. "The most primitive form of life is single-cell life," Igoshin says. "The next step up would be going from single cells to multicellular organisms. These bacteria are somewhat in the middle."
When food is plentiful, these bacteria move in coordinated swarms, called ripples, often containing thousands of cells, which secrete enzymes into the environment to kill their prey and digest it outside their structure before taking in the resulting nutrients.
"M. xanthus has the ability to produce some powerful antibiotics that kill other species and enzymes that chew up the prey proteins into small segments," Igoshin says. "Single cells can't produce enough of these antibiotics or enzymes to effectively kill their prey, which is why they hunt together as a group."
But when food is scarce, M. xanthus takes another shape, forming itself into mounds of spores called fruiting bodies, where they can survive for a long time, sometimes for many years, until conditions improve and they can germinate again. "A single spore wouldn't survive," he says. "They need to be together."
The insights gained from a better understanding of how this bacterium functions potentially could help future researchers in designing new antibiotics, or possibly have a role in agricultural practices, such as developing new pest-resistant seeds. Moreover, deciphering the basic biology of multicellular organization can help to understand its more complex manifestations, such as embryonic development.
Igoshin is using M. xanthus as a model system for his computational tools, using approaches that involve both data analysis and simulation, both of which "have become a cornerstone of biological research in the modern era of biology," he says.
"I use reverse engineering approaches to look at these microscopic structures and try to figure out what these individual cells should do in order to produce this type of behavior," he adds. "I put in parameters such as size, velocity, flexibility, speed--some we can measure, some we can guess--and see whether the computer simulations will produce structures similar to those observed."
Igoshin is conducting his research under an NSF Faculty Early Career Development (CAREER) award, which he received in 2009. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education, and the integration of education and research within the context of the mission of their organization. NSF is funding his work with $640,000 over five years.
He is collaborating with other experimental labs to study this organism, including Roy Welch, associate professor of biology at Syracuse University; Lawrence Shimkets, professor of biology at the University of Georgia; and Heidi Kaplan, associate professor of microbiology and genetics at the University of Texas-Houston Medical School.
As part of the grant's educational component, Igoshin and his colleagues created a new interdisciplinary graduate program at Rice offering doctoral degree in systems, synthetic, and physical biology, that began in the fall of 2013. Igoshin, who co-wrote the program proposal, serves on the program steering committee, and the admission and recruitment committee.
"Answering complex biological questions in the post-genomic era will require multidisciplinary approaches combining both experimental and computational methods" he says. "Our new program aims to educate a new generation of life-scientists that have truly interdisciplinary training and therefore can work together on these challenges."
-- Marlene Cimons, National Science Foundation
Investigators
Oleg Igoshin
FTC REPORTS TO CONGRESS ON "DO NOT CALL REGISTRY"
FROM: U.S. FEDERAL TRADE COMMISSION
The Federal Trade Commission published a biennial report to Congress focusing on the use of the Do Not Call Registry by both consumers and businesses over the past two years. The report also highlights how the FTC is responding to new technologies that have increased the number of illegal robocalls made to telephone numbers on the Do Not Call Registry.
As of September 2013, more than 223 million active numbers were registered for Do Not Call, an increase of more than 5.8 million registrations from the previous fiscal year. The Biennial Report to Congress Under the Do Not Call Registry Fee Extension Act of 2007 notes the FTC recently launched a mobile-friendly way for consumers to sign up for Do Not Call and register Do Not Call complaints, and that the agency received 27 percent of its registrations from mobile devices.
During fiscal year 2013, a total of 2,875 businesses and other entities paid more than $14 million to access the Do Not Call Registry. Another 27,626 entities were provided access, but are exempt from paying fees (because they access five or fewer area codes free of charge or are a charity).
The report notes that voice over internet protocol (VoIP), caller ID spoofing, and automated dialing technology have made it easier for individuals and companies who disregard the law to make high volumes of calls at very little cost. This led to an increase in illegal robocalls, which peaked at approximately 200,000 complaints to the FTC per month at the end of fiscal year 2012.
To combat the increase in illegal robocalls, the FTC hosted a robocall summit, sponsored a public challenge to develop technological solutions, and produced new resources for consumers. .
The Commission vote authorizing the report to Congress was 4-0.
The Federal Trade Commission published a biennial report to Congress focusing on the use of the Do Not Call Registry by both consumers and businesses over the past two years. The report also highlights how the FTC is responding to new technologies that have increased the number of illegal robocalls made to telephone numbers on the Do Not Call Registry.
As of September 2013, more than 223 million active numbers were registered for Do Not Call, an increase of more than 5.8 million registrations from the previous fiscal year. The Biennial Report to Congress Under the Do Not Call Registry Fee Extension Act of 2007 notes the FTC recently launched a mobile-friendly way for consumers to sign up for Do Not Call and register Do Not Call complaints, and that the agency received 27 percent of its registrations from mobile devices.
During fiscal year 2013, a total of 2,875 businesses and other entities paid more than $14 million to access the Do Not Call Registry. Another 27,626 entities were provided access, but are exempt from paying fees (because they access five or fewer area codes free of charge or are a charity).
The report notes that voice over internet protocol (VoIP), caller ID spoofing, and automated dialing technology have made it easier for individuals and companies who disregard the law to make high volumes of calls at very little cost. This led to an increase in illegal robocalls, which peaked at approximately 200,000 complaints to the FTC per month at the end of fiscal year 2012.
To combat the increase in illegal robocalls, the FTC hosted a robocall summit, sponsored a public challenge to develop technological solutions, and produced new resources for consumers. .
The Commission vote authorizing the report to Congress was 4-0.
Wednesday, December 25, 2013
RECENT DOD PHOTOS: CHRISTMAS HOLIDAY 2013
FROM: U.S. DEFENSE DEPARTMENT
U.S. soldiers and civilians help unload holiday gifts for a USO Christmas convoy tour during its stop on Forward Operating Base Gamberi, Afghanistan, Dec. 19, 2013. The USO visited several locations across Afghanistan, where it delivered presents to soldiers. U.S. Army photo by Sgt. 1st Class E.L. Craig.
U.S. Air Firce Capt. Christopher Bennett poses for a photograph Christmas Holiday party on Kandahar Airfield, Afghanistan, Dec. 22, 2013. Bennett is assigned to the 451st Expeditionary Aircraft Maintenance Squadron. U.S. Air Force photo by Senior Airman Alexandria Bandin.
Tuesday, December 24, 2013
U.S. DEFENSE DEPARTMENT CONTRACTS FOR DECEMBER 24, 2013
FROM: U.S. DEFENSE DEPARTMENT
CONTRACTS
AIR FORCE
General Atomics Aeronautical Systems, Inc., doing business as GA-ASI, Poway, Calif., has been awarded a $362,193,866 cost-plus-fixed-fee contract for Predator (MQ1)/Reaper (MQ9) Unmanned Aerial Systems contractor logistic support sustainment. Contract performance includes, but is not limited to, program management, logistics support, configuration management, technical manual and software maintenance, contractor field service representative support, inventory control point management, flight operations support, depot repair, and depot field maintenance. Work will be performed at Poway, Calif., and is expected to be completed Dec. 31, 2014. This award is the result of a sole-source acquisition. Fiscal 2014 operations and maintenance funds in the amount of $89,976,837 are being obligated at time of award. Air Force Life Cycle Management Center/WIKBA at Robins Air Force Base, Ga., is the contracting activity (FA8528-14-C-0001).
Gulfstream Aerospace Corp., Savannah, Ga., is being awarded a $22,458,901 modification (P00002) on firm-fixed-price contract (FA8106-13-D-0001) for contractor logistics support services for the C-37 aircraft. This is a three month extension of services on the existing contract. Work will be performed at Savannah, Ga., and is expected to be completed by March 2014. Fiscal 2014 Operations and Maintenance funds in the amount of $7,732,945 are being obligated at time of award. Air Force Life Cycle Management Center/WLKLB, Tinker Air Force Base, Okla., is the contracting activity.
Raytheon Intelligence and Information Systems, Aurora, Colo., has been awarded an unpriced change order (P00112) with a not-to-exceed of $8,595,748 on an existing contract (FA8807-10-C-0001) for M-Code Implementation on the Operational Control System. The contract modification is to assure implementation of M-Code Capabilities across OCX Block 1 and 2. Work will be performed at Aurora, Colo., and is expected to be completed by Aug. 31, 2016. Fiscal 2014 research and development funds will be obligated at definitization. The Air Force Space and Missile Systems Contracting Directorate, Los Angeles Air Force Base, Calif., is the contracting activity.
CORRECTION: The contract modification (P00024) released on Dec 13, 2013 to existing firm-fixed-price contract (FA8807-13-C-0001) to Boeing Co., Seal Beach Calif., listed an inaccurate award amount. The actual award amount was $56,867,404.
ARMY
Four Thirteen, Inc., Texarkana, Texas, (W911RQ-14-D-0004); Blackhawk Milcon LLC, San Antonio, Texas, (W911RQ-14-D-0005); Altec, Inc., Texarkana, Texas, (W911RQ-14-D-0006); PentaCon, LLC, Catoosa, Okla., (W911RQ-14-D-0007); American Contractor and Technology Inc., Scott, La., (W911RQ-14-D-0008); Abba Construction, Inc., Jacksonville, Fla., (W911RQ-14-D-0009); Jireh Group, LLC doing business as Blackwood Services, Texarkana, Texas, (W911RQ-14-D-0010); LeeTex Construction, LLC, Dallas, Texas, (W911RQ-14-D-0011) were awarded a $48,000,000 firm-fixed-price, multiple-award, indefinite-delivery/indefinite-quantity contract for construction, alteration, repair, and rehabilitation of buildings, highways and other real property at the Red River Army Depot, Texarkana, Texas. Funding will be determined with each order. Estimated completion date is Dec. 19, 2018. Bids were solicited via the internet with twenty-four received. Army Contracting Command, Red River Army Depot, Texarkana,
Texas is the contracting activity.
Computer Sciences Corp. was awarded an $11,420,438 modification (P00006) to contract W81K04-13-C-0001 for U.S. Army Reserve specialty medical training, equipment and site maintenance, administrative support and all training for combat support hospitals. Fiscal 2014 operations and maintenance (Army) funds in the amount of $11,420,438 were obligated at the time of the award. Estimated completion date is Dec. 31, 2017. Bids were solicited via the Internet with six received. Work will be performed in Dublin, Calif., Augusta, Ga., and Monroe, Wisc. U.S. Army Medical Command Contracting Center, Fort Sam Houston, Texas is the contracting activity.
CONTRACTS
AIR FORCE
General Atomics Aeronautical Systems, Inc., doing business as GA-ASI, Poway, Calif., has been awarded a $362,193,866 cost-plus-fixed-fee contract for Predator (MQ1)/Reaper (MQ9) Unmanned Aerial Systems contractor logistic support sustainment. Contract performance includes, but is not limited to, program management, logistics support, configuration management, technical manual and software maintenance, contractor field service representative support, inventory control point management, flight operations support, depot repair, and depot field maintenance. Work will be performed at Poway, Calif., and is expected to be completed Dec. 31, 2014. This award is the result of a sole-source acquisition. Fiscal 2014 operations and maintenance funds in the amount of $89,976,837 are being obligated at time of award. Air Force Life Cycle Management Center/WIKBA at Robins Air Force Base, Ga., is the contracting activity (FA8528-14-C-0001).
Gulfstream Aerospace Corp., Savannah, Ga., is being awarded a $22,458,901 modification (P00002) on firm-fixed-price contract (FA8106-13-D-0001) for contractor logistics support services for the C-37 aircraft. This is a three month extension of services on the existing contract. Work will be performed at Savannah, Ga., and is expected to be completed by March 2014. Fiscal 2014 Operations and Maintenance funds in the amount of $7,732,945 are being obligated at time of award. Air Force Life Cycle Management Center/WLKLB, Tinker Air Force Base, Okla., is the contracting activity.
Raytheon Intelligence and Information Systems, Aurora, Colo., has been awarded an unpriced change order (P00112) with a not-to-exceed of $8,595,748 on an existing contract (FA8807-10-C-0001) for M-Code Implementation on the Operational Control System. The contract modification is to assure implementation of M-Code Capabilities across OCX Block 1 and 2. Work will be performed at Aurora, Colo., and is expected to be completed by Aug. 31, 2016. Fiscal 2014 research and development funds will be obligated at definitization. The Air Force Space and Missile Systems Contracting Directorate, Los Angeles Air Force Base, Calif., is the contracting activity.
CORRECTION: The contract modification (P00024) released on Dec 13, 2013 to existing firm-fixed-price contract (FA8807-13-C-0001) to Boeing Co., Seal Beach Calif., listed an inaccurate award amount. The actual award amount was $56,867,404.
ARMY
Four Thirteen, Inc., Texarkana, Texas, (W911RQ-14-D-0004); Blackhawk Milcon LLC, San Antonio, Texas, (W911RQ-14-D-0005); Altec, Inc., Texarkana, Texas, (W911RQ-14-D-0006); PentaCon, LLC, Catoosa, Okla., (W911RQ-14-D-0007); American Contractor and Technology Inc., Scott, La., (W911RQ-14-D-0008); Abba Construction, Inc., Jacksonville, Fla., (W911RQ-14-D-0009); Jireh Group, LLC doing business as Blackwood Services, Texarkana, Texas, (W911RQ-14-D-0010); LeeTex Construction, LLC, Dallas, Texas, (W911RQ-14-D-0011) were awarded a $48,000,000 firm-fixed-price, multiple-award, indefinite-delivery/indefinite-quantity contract for construction, alteration, repair, and rehabilitation of buildings, highways and other real property at the Red River Army Depot, Texarkana, Texas. Funding will be determined with each order. Estimated completion date is Dec. 19, 2018. Bids were solicited via the internet with twenty-four received. Army Contracting Command, Red River Army Depot, Texarkana,
Texas is the contracting activity.
Computer Sciences Corp. was awarded an $11,420,438 modification (P00006) to contract W81K04-13-C-0001 for U.S. Army Reserve specialty medical training, equipment and site maintenance, administrative support and all training for combat support hospitals. Fiscal 2014 operations and maintenance (Army) funds in the amount of $11,420,438 were obligated at the time of the award. Estimated completion date is Dec. 31, 2017. Bids were solicited via the Internet with six received. Work will be performed in Dublin, Calif., Augusta, Ga., and Monroe, Wisc. U.S. Army Medical Command Contracting Center, Fort Sam Houston, Texas is the contracting activity.
LABOR DEPARTMENT ANNOUNCES $5 MILLION AWARD TO REDUCE CHILD LABOR IN MOROCCO
FROM: U.S. DEPARTMENT OF LABOR
$5M grant to reduce child labor in Morocco awarded by US Labor Department
WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today announced the award of a $5 million cooperative agreement to Creative Associates International to implement a project to reduce child labor in Morocco.
The project aims to reduce child labor in the Marrakesh-Tensift-Al-Haouz region of Morocco by promoting children's participation in educational programs and delivering vocational training focused on sectors, such as farming and ecotourism. Additionally, it will offer support to youth of legal working age to secure quality employment opportunities.
"This grant will fund a multifaceted project to protect children and families in Morocco," said Deputy Undersecretary of Labor for International Affairs Carol Pier. "Especially for those children at risk of engaging in the worst forms of child labor, education and vocational training hold the promise of a safer and more secure economic future."
Creative Associates International will promote access to social services for families and help them improve their livelihoods by providing access to microlending and savings programs and other activities to increase household resilience. It will also strengthen the capacity of government at the national and local levels to address child labor and of civil society organizations to provide assistance to working children and their families.
The project will collaborate with key government agencies and ministries at the national, regional and local levels, including the Ministry of Employment and Social Affairs.
Since 1995, ILAB projects have rescued approximately 1.7 million children from exploitative child labor. The Labor Department has funded 275 such projects implemented by more than 65 organizations in 93 countries. ILAB currently oversees more than $245 million of active programming to combat the worst forms of child labor.
$5M grant to reduce child labor in Morocco awarded by US Labor Department
WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today announced the award of a $5 million cooperative agreement to Creative Associates International to implement a project to reduce child labor in Morocco.
The project aims to reduce child labor in the Marrakesh-Tensift-Al-Haouz region of Morocco by promoting children's participation in educational programs and delivering vocational training focused on sectors, such as farming and ecotourism. Additionally, it will offer support to youth of legal working age to secure quality employment opportunities.
"This grant will fund a multifaceted project to protect children and families in Morocco," said Deputy Undersecretary of Labor for International Affairs Carol Pier. "Especially for those children at risk of engaging in the worst forms of child labor, education and vocational training hold the promise of a safer and more secure economic future."
Creative Associates International will promote access to social services for families and help them improve their livelihoods by providing access to microlending and savings programs and other activities to increase household resilience. It will also strengthen the capacity of government at the national and local levels to address child labor and of civil society organizations to provide assistance to working children and their families.
The project will collaborate with key government agencies and ministries at the national, regional and local levels, including the Ministry of Employment and Social Affairs.
Since 1995, ILAB projects have rescued approximately 1.7 million children from exploitative child labor. The Labor Department has funded 275 such projects implemented by more than 65 organizations in 93 countries. ILAB currently oversees more than $245 million of active programming to combat the worst forms of child labor.
"PIRACY OFF THE COAST OF SOMALIA: QUARTERLY UPDATE"
FROM: U.S. STATE DEPARTMENT
Contact Group on Piracy off the Coast of Somalia: Quarterly Update
Fact Sheet
Bureau of Political-Military Affairs
December 24, 2013
The Contact Group on Piracy off the Coast of Somalia was created on January 14, 2009 pursuant to UN Security Council Resolution 1851. This voluntary ad hoc international forum brings together over 80 countries, organizations, and industry groups with a shared interest in combating piracy. Chaired in 2013 by the United States, the Contact Group coordinates political, military, and non-governmental efforts to tackle piracy off the coast of Somalia, ensure that pirates are brought to justice, and support regional states to develop sustainable maritime security capabilities. The European Union will assume the chairmanship in 2014.
Through its five thematic working groups, the Contact Group draws on a wide range of international expertise and adopts a problem-solving approach to piracy, working closely with Somali officials from the central government and regional administrations and officials in Indian Ocean States. Working Group 1, chaired by the United Kingdom, focuses on operational naval coordination, information sharing, and capacity building; Working Group 2, chaired by Denmark, addresses legal and judicial issues; Working Group 3, chaired by the Republic of Korea, works closely with the shipping industry to enhance awareness and build capabilities among seafarers transiting the region; Working Group 4, chaired by Egypt, aims at raising public awareness of the dangers of piracy; and Working Group 5, chaired by Italy, focuses on disrupting the pirate criminal enterprise ashore, including the illicit financial flows associated with maritime piracy.
This unique international partnership is contributing to a significant decline in piracy off the Horn of Africa. Thanks in part to the Contact Group’s concerted efforts, there has not been a successful pirate attack on a commercial vessel off the Horn of Africa in more than a year and a half, and pirates no longer control a single hijacked vessel.
Recent Developments
• On November 18, the United Nations Security Council adopted Resolution 2125, renewing the call for international action to fight piracy off the Coast of Somalia.
• The Contact Group convened November 10-15 for Counter Piracy Week in Djibouti. This first ever extended duration gathering of the CGPCS included meetings of all five working groups, a number of stand-alone thematic discussions, and the 15th Plenary. In all, the event drew 55 delegations totaling approximately 220 participants. Notably, the first ever plenary session in the Horn of Africa included active participation by the Federal Government of Somalia and a number of regional partners in the fight against piracy. Participants agreed that, while significant progress has been made in the last two years, the underlying conditions that allowed piracy to flourish remain. Somalia will continue require significant capacity building assistance to ensure pirate gangs cannot return to peak. The 15th Plenary also marked the handover of the Contact Group chairmanship from the United States to the European Union, which will chair during 2014.
• On October 11, India detained the Sierra Leone-flagged S/V SEAMAN GUARD OHIO and later charged 33 men aboard for failing to produce papers authorizing the carriage of weapons in Indian waters. A U.S. maritime company, Advanfort, operates the ship with a crew that includes British, Estonian, Indian and Ukrainian nationals.
• On November 13, Japan’s parliament enacted a bill to allow security guards to carry rifles aboard Japanese-registered vessels to counter piracy in waters off Somalia and elsewhere. The new law allows armed guards employed by foreign security contractors to fire warning shots at approaching pirates.
• On December 3, France announced it would change its laws to allow private armed guards to protect its shipping fleet against pirates. News reports indicated that although tougher ship security and Western naval patrols have reduced attacks from Somali pirates, French ships are increasingly being targeted in the Gulf of Guinea off West Africa, where France has trade ties with former colonies.
Apprehensions at Sea
• On October 18, the Combined Task Force (CTF)-151 reported the capture of nine suspected pirates believed responsible for two attacks in the Indian Ocean. The RFA FORT VICTORIA, HMAS MELBOURNE and ROKS WANG GEON from CTF-151 were involved, as well as the European Union flagship HMLMS JOHAN DE WITT and a Seychelles based maritime patrol aircraft. Pirates exchanged gunfire with security personnel aboard a super tanker on October 11 before attacking a Spanish fishing vessel three days later. CTF-151 apprehended the suspects and destroyed two skiffs and associated pirate equipment.
• On November 10, the Danish warship HDMS ESBERN SNARE, part of NATO’s OPERATION OCEAN SHIELD, arrested nine suspected pirates in the Indian Ocean. The warship tracked down a pirate skiff and mother ship (a whaler) overnight after the suspects attacked the MV TORM Kansas, a Danish flagged oil tanker on November 9. A skiff of five armed pirates had approached the tanker, exchanging fire with private security guards on board before breaking off. On November 30, Seychelles agreed to try the suspects, which were then handed over.
Piracy Trials and Prosecution Support
• On November 26, seven Somalis convicted of piracy in Kenya were repatriated to Somalia by the UNODC upon the completion of their sentence. They were flown to Galkayo.
• Also in Kenya, judgment in the piracy case concerning an attack on the vessel ARIA has been delayed until 23 December 2013.
• Forty Somalis held in Maldives have been repatriated to Somalia by UNODC. They were detained on suspicion of engaging in piracy, but were not charged as Maldives has no legislation on the subject. They were held as prohibited immigrants prior to their return to Somalia. UNODC is engaging with Maldives to develop its piracy legislation.
• On November 14, a U.S. District Court Judge passed life sentences on the last two Somali pirates convicted of killing four Americans on a yacht off the Horn of Africa in 2011. The third convicted pirate was sentenced on November 12. All three were given 21 life sentences. Eleven others previously pled guilty and are serving life sentences.
• On November 5, there was a procedural delay in the Mauritius trial of nine suspected Somali pirates. One of the accused demanded the presence of the French officer who arrested him. The court advised the defendant to enter a motion to that effect.
• On October 30, a court in Madrid convicted six Somalis for piracy and sentenced them to between eight and 12 and a half years in jail for attacking a Spanish warship in 2012 off the coast of Somalia. The six were caught following a firefight when they tried to board the SPS PATINO, a Spanish navy supply ship supporting the European Union's OPERATION ATALANTA.
• On October 23, four Somali pirates were sentenced to seven years each in prison on by a Kenyan court that found them guilty of hijacking a fishing dhow in the Indian Ocean in 2010. The men were arrested by Spanish naval forces and handed over to Kenyan authorities.
• On October 18, a French court sentenced three Somali pirates to nine years in prison each for the 2009 hijacking off the Somali coast of a French yacht that led to the death of its skipper. The three pirates had asked for leniency, saying they were forced into piracy by lives of abject poverty. French troops stormed a sailboat in April 2009 and captured the trio during a bid to free the captain, his wife, their three-year-old son and two crew members.
• On November 26, a federal jury in the U.S. State of Virginia acquitted Ali Mohammed Ali of piracy charges in connection with the takeover of a Danish merchant ship, the CEC FUTURE, in the Gulf of Aden in 2008. Ali worked as a translator for both ship owners and pirates as they negotiated terms for release of the ship and crew. The jury deadlocked on two hostage-taking charges against Ali. U.S prosecutors said that they will retry Ali on those two allegations.
• On November 29 in Seychelles, the conviction for piracy of a Somali man was overturned on appeal. The man, who was originally sentenced in December 2010, claimed to be 16 years old at the time of the offences. He is being held in custody due to his immigration status and will be repatriated to Somalia by UNODC at the earliest opportunity.
Related Meetings
• On October 15-16, the United Nations’ Interregional Crime and Justice Research Institute hosted the second of a series of workshops for legal experts in Rome on to draft a code of conduct on Rules for the Use of Force by Privately Contracted Armed Security Personnel on board merchant ships.
• On November 8 and 9, UNODC conducted a tour for CGPCS Trust Fund donors in Puntland and Somaliland. Representatives from Denmark, DPA, the EU, Germany, UNODC HQ, Norway, the UK and the US were able to visit the projects in Garowe, Berbera and Hargeisa that they have supported through the Trust Fund.
Significant Developments
• On the night of 8 November 2013, Al-Shabaab fighters launched a deadly attack on Bosasso Prison in Puntland, which was substantially rebuilt in previous years by UNODC using money from the CGPCS Trust Fund. The Deputy Commander of the prison and one guard were killed. Prison defense forces fought off the attack and no prisoners escaped.
• The UN Assistant Secretary-General for Political Affairs told Counter-Piracy Week in Djibouti participants that the Trust Fund to Support Initiatives of States Countering Piracy off the Coast of Somalia (Trust Fund) will fund the Hostage Support Programme, administered by the UN Office on Drugs and Crime, for an additional 18 months.
• The Trust Fund Board of Directors also approved a project submitted by INTERPOL and the International Maritime Bureau which will support debriefing of former hostages held by Somali pirates in support of law enforcement investigations.
• RAPPICC, the Regional Anti-Piracy Prosecutions Intelligence Coordination Centre, changed its name to REFLECS3, the Regional Fusion Law Enforcement Centre for Safety and Security at Sea, to better describe its new three-part mission – combating transnational organized crime; improving maritime shipping information sharing; and coordinating local and regional capacity building programs. Additionally, the Seychelles government agreed to enact legislation to incorporate the Centre as a legal entity. The Steering Group also decided to invite countries from the East African and South Asian regions to join as new members.
• On November 22, the EU/UNODC launched its Programme to Support Maritime Security, known as MASE. The 5 million Euro (approx. 6.8 million USD) MASE programme will address maritime crime in the Indian Ocean including piracy, drugs and arms smuggling, human trafficking, illegal fishing and maritime pollution.
Hostages in Custody
• At least 49 seafarers remain in pirate custody, including:
-- 27 (Taiwanese, Chinese, Cambodian, Filipino, Vietnamese and Indonesian) from the F/V NAHAM 3, Omani-flagged, hijacked March 26, 2012, now aground in Somalia;
-- 11 (7 Bangladeshi, 2 Sri Lankan, 1 Indian, 1 Iranian) from the M/V ALBEDO, Malaysian-flagged, hijacked November 26, 2010, which sank at anchor on July 8, 2013, with a further 4 (Sri Lankans) missing;
-- 4 (Thais) from the M/V PRANTALAY 12, Thailand-flagged, held since April 18, 2010; which was grounded after the anchor chain broke July, 20, 2011; and
-- 7 (Indians) held since September 29, 2010 from M/V ASHPALT VENTURE, Panama-flagged; the ship and other crew were released April 15, 2011.
Contact Group on Piracy off the Coast of Somalia: Quarterly Update
Fact Sheet
Bureau of Political-Military Affairs
December 24, 2013
The Contact Group on Piracy off the Coast of Somalia was created on January 14, 2009 pursuant to UN Security Council Resolution 1851. This voluntary ad hoc international forum brings together over 80 countries, organizations, and industry groups with a shared interest in combating piracy. Chaired in 2013 by the United States, the Contact Group coordinates political, military, and non-governmental efforts to tackle piracy off the coast of Somalia, ensure that pirates are brought to justice, and support regional states to develop sustainable maritime security capabilities. The European Union will assume the chairmanship in 2014.
Through its five thematic working groups, the Contact Group draws on a wide range of international expertise and adopts a problem-solving approach to piracy, working closely with Somali officials from the central government and regional administrations and officials in Indian Ocean States. Working Group 1, chaired by the United Kingdom, focuses on operational naval coordination, information sharing, and capacity building; Working Group 2, chaired by Denmark, addresses legal and judicial issues; Working Group 3, chaired by the Republic of Korea, works closely with the shipping industry to enhance awareness and build capabilities among seafarers transiting the region; Working Group 4, chaired by Egypt, aims at raising public awareness of the dangers of piracy; and Working Group 5, chaired by Italy, focuses on disrupting the pirate criminal enterprise ashore, including the illicit financial flows associated with maritime piracy.
This unique international partnership is contributing to a significant decline in piracy off the Horn of Africa. Thanks in part to the Contact Group’s concerted efforts, there has not been a successful pirate attack on a commercial vessel off the Horn of Africa in more than a year and a half, and pirates no longer control a single hijacked vessel.
Recent Developments
• On November 18, the United Nations Security Council adopted Resolution 2125, renewing the call for international action to fight piracy off the Coast of Somalia.
• The Contact Group convened November 10-15 for Counter Piracy Week in Djibouti. This first ever extended duration gathering of the CGPCS included meetings of all five working groups, a number of stand-alone thematic discussions, and the 15th Plenary. In all, the event drew 55 delegations totaling approximately 220 participants. Notably, the first ever plenary session in the Horn of Africa included active participation by the Federal Government of Somalia and a number of regional partners in the fight against piracy. Participants agreed that, while significant progress has been made in the last two years, the underlying conditions that allowed piracy to flourish remain. Somalia will continue require significant capacity building assistance to ensure pirate gangs cannot return to peak. The 15th Plenary also marked the handover of the Contact Group chairmanship from the United States to the European Union, which will chair during 2014.
• On October 11, India detained the Sierra Leone-flagged S/V SEAMAN GUARD OHIO and later charged 33 men aboard for failing to produce papers authorizing the carriage of weapons in Indian waters. A U.S. maritime company, Advanfort, operates the ship with a crew that includes British, Estonian, Indian and Ukrainian nationals.
• On November 13, Japan’s parliament enacted a bill to allow security guards to carry rifles aboard Japanese-registered vessels to counter piracy in waters off Somalia and elsewhere. The new law allows armed guards employed by foreign security contractors to fire warning shots at approaching pirates.
• On December 3, France announced it would change its laws to allow private armed guards to protect its shipping fleet against pirates. News reports indicated that although tougher ship security and Western naval patrols have reduced attacks from Somali pirates, French ships are increasingly being targeted in the Gulf of Guinea off West Africa, where France has trade ties with former colonies.
Apprehensions at Sea
• On October 18, the Combined Task Force (CTF)-151 reported the capture of nine suspected pirates believed responsible for two attacks in the Indian Ocean. The RFA FORT VICTORIA, HMAS MELBOURNE and ROKS WANG GEON from CTF-151 were involved, as well as the European Union flagship HMLMS JOHAN DE WITT and a Seychelles based maritime patrol aircraft. Pirates exchanged gunfire with security personnel aboard a super tanker on October 11 before attacking a Spanish fishing vessel three days later. CTF-151 apprehended the suspects and destroyed two skiffs and associated pirate equipment.
• On November 10, the Danish warship HDMS ESBERN SNARE, part of NATO’s OPERATION OCEAN SHIELD, arrested nine suspected pirates in the Indian Ocean. The warship tracked down a pirate skiff and mother ship (a whaler) overnight after the suspects attacked the MV TORM Kansas, a Danish flagged oil tanker on November 9. A skiff of five armed pirates had approached the tanker, exchanging fire with private security guards on board before breaking off. On November 30, Seychelles agreed to try the suspects, which were then handed over.
Piracy Trials and Prosecution Support
• On November 26, seven Somalis convicted of piracy in Kenya were repatriated to Somalia by the UNODC upon the completion of their sentence. They were flown to Galkayo.
• Also in Kenya, judgment in the piracy case concerning an attack on the vessel ARIA has been delayed until 23 December 2013.
• Forty Somalis held in Maldives have been repatriated to Somalia by UNODC. They were detained on suspicion of engaging in piracy, but were not charged as Maldives has no legislation on the subject. They were held as prohibited immigrants prior to their return to Somalia. UNODC is engaging with Maldives to develop its piracy legislation.
• On November 14, a U.S. District Court Judge passed life sentences on the last two Somali pirates convicted of killing four Americans on a yacht off the Horn of Africa in 2011. The third convicted pirate was sentenced on November 12. All three were given 21 life sentences. Eleven others previously pled guilty and are serving life sentences.
• On November 5, there was a procedural delay in the Mauritius trial of nine suspected Somali pirates. One of the accused demanded the presence of the French officer who arrested him. The court advised the defendant to enter a motion to that effect.
• On October 30, a court in Madrid convicted six Somalis for piracy and sentenced them to between eight and 12 and a half years in jail for attacking a Spanish warship in 2012 off the coast of Somalia. The six were caught following a firefight when they tried to board the SPS PATINO, a Spanish navy supply ship supporting the European Union's OPERATION ATALANTA.
• On October 23, four Somali pirates were sentenced to seven years each in prison on by a Kenyan court that found them guilty of hijacking a fishing dhow in the Indian Ocean in 2010. The men were arrested by Spanish naval forces and handed over to Kenyan authorities.
• On October 18, a French court sentenced three Somali pirates to nine years in prison each for the 2009 hijacking off the Somali coast of a French yacht that led to the death of its skipper. The three pirates had asked for leniency, saying they were forced into piracy by lives of abject poverty. French troops stormed a sailboat in April 2009 and captured the trio during a bid to free the captain, his wife, their three-year-old son and two crew members.
• On November 26, a federal jury in the U.S. State of Virginia acquitted Ali Mohammed Ali of piracy charges in connection with the takeover of a Danish merchant ship, the CEC FUTURE, in the Gulf of Aden in 2008. Ali worked as a translator for both ship owners and pirates as they negotiated terms for release of the ship and crew. The jury deadlocked on two hostage-taking charges against Ali. U.S prosecutors said that they will retry Ali on those two allegations.
• On November 29 in Seychelles, the conviction for piracy of a Somali man was overturned on appeal. The man, who was originally sentenced in December 2010, claimed to be 16 years old at the time of the offences. He is being held in custody due to his immigration status and will be repatriated to Somalia by UNODC at the earliest opportunity.
Related Meetings
• On October 15-16, the United Nations’ Interregional Crime and Justice Research Institute hosted the second of a series of workshops for legal experts in Rome on to draft a code of conduct on Rules for the Use of Force by Privately Contracted Armed Security Personnel on board merchant ships.
• On November 8 and 9, UNODC conducted a tour for CGPCS Trust Fund donors in Puntland and Somaliland. Representatives from Denmark, DPA, the EU, Germany, UNODC HQ, Norway, the UK and the US were able to visit the projects in Garowe, Berbera and Hargeisa that they have supported through the Trust Fund.
Significant Developments
• On the night of 8 November 2013, Al-Shabaab fighters launched a deadly attack on Bosasso Prison in Puntland, which was substantially rebuilt in previous years by UNODC using money from the CGPCS Trust Fund. The Deputy Commander of the prison and one guard were killed. Prison defense forces fought off the attack and no prisoners escaped.
• The UN Assistant Secretary-General for Political Affairs told Counter-Piracy Week in Djibouti participants that the Trust Fund to Support Initiatives of States Countering Piracy off the Coast of Somalia (Trust Fund) will fund the Hostage Support Programme, administered by the UN Office on Drugs and Crime, for an additional 18 months.
• The Trust Fund Board of Directors also approved a project submitted by INTERPOL and the International Maritime Bureau which will support debriefing of former hostages held by Somali pirates in support of law enforcement investigations.
• RAPPICC, the Regional Anti-Piracy Prosecutions Intelligence Coordination Centre, changed its name to REFLECS3, the Regional Fusion Law Enforcement Centre for Safety and Security at Sea, to better describe its new three-part mission – combating transnational organized crime; improving maritime shipping information sharing; and coordinating local and regional capacity building programs. Additionally, the Seychelles government agreed to enact legislation to incorporate the Centre as a legal entity. The Steering Group also decided to invite countries from the East African and South Asian regions to join as new members.
• On November 22, the EU/UNODC launched its Programme to Support Maritime Security, known as MASE. The 5 million Euro (approx. 6.8 million USD) MASE programme will address maritime crime in the Indian Ocean including piracy, drugs and arms smuggling, human trafficking, illegal fishing and maritime pollution.
Hostages in Custody
• At least 49 seafarers remain in pirate custody, including:
-- 27 (Taiwanese, Chinese, Cambodian, Filipino, Vietnamese and Indonesian) from the F/V NAHAM 3, Omani-flagged, hijacked March 26, 2012, now aground in Somalia;
-- 11 (7 Bangladeshi, 2 Sri Lankan, 1 Indian, 1 Iranian) from the M/V ALBEDO, Malaysian-flagged, hijacked November 26, 2010, which sank at anchor on July 8, 2013, with a further 4 (Sri Lankans) missing;
-- 4 (Thais) from the M/V PRANTALAY 12, Thailand-flagged, held since April 18, 2010; which was grounded after the anchor chain broke July, 20, 2011; and
-- 7 (Indians) held since September 29, 2010 from M/V ASHPALT VENTURE, Panama-flagged; the ship and other crew were released April 15, 2011.
RECENT U.S. DEFENSE DEPARTMENT PHOTOS
FROM: U.S. DEFENSE DEPARTMENT
U.S. Marine Corps Cpl. Dylan Tucker patrols during an operation in Qul'ah Zer in Helmand province, Afghanistan, Dec. 20, 2013. Tucker, a rifleman, is assigned to India Company, 3rd Battalion, 7th Marine Regiment. U.S. Marine Corps photo by Lance Cpl. James Mast.
U.S. Marine Corps Lance Cpl. Richard Munoz provides security during an operation in Qul'ah Zer in Helmand province, Afghanistan, Dec. 20, 2013. Munoz, a rifleman, is assigned to India Company, 3rd Battalion, 7th Marine Regiment. U.S. Marine Corps photo by Lance Cpl. James Mast.
AFRICA COMMAND REPOSITIONS FORCES
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U.S. soldiers and East Africa Response Force soldiers depart a U.S. Air Force C-130 Hercules aircraft in Juba, Sudan, Dec. 18, 2013. The U.S. State Department requested the assistance of U.S. military forces in evacuating personnel from the embassy in Juba to Nairobi, Kenya, amid political and ethnic violence in South Sudan. DOD photo by Tech. Sgt. Micah Theurich, U.S. Air Force
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FROM: U.S. DEFENSE DEPARTMENT
Africa Command Repositions Forces to Increase Flexibility
By Jim Garamone
American Forces Press Service
WASHINGTON, Dec. 23, 2013 – The commander of U.S. Africa Command is repositioning forces in East Africa in an effort to attain maximum flexibility to respond to State Department requests, Pentagon spokesman Army Col. Steve Warren told reporters here today.
Warren also told reporters that three of the four U.S. personnel who were wounded Dec. 21 when they attempted to evacuate Americans from the town of Bor, South Sudan, will be evacuated to Landstuhl Army Hospital in Germany. The fourth will be evacuated when his condition stabilizes.
The four injured U.S. service members are currently in a hospital in Nairobi, the Kenyan capital. They were hit by small-arms fire when their Osprey aircraft attempted to land in Bor.
Based on the current situation in South Sudan, Army Gen. David M. Rodriguez, the commander of Africom, moved elements from the Special-Purpose Marine Air-Ground Task Force Crisis Response from Moron, Spain, to Camp Lemonnier, Djibouti.
“By positioning these forces forward, we are able to more quickly respond to crisis in the region, if required,” a defense official said. The Djiboutian government fully agrees with the movement.
The moves are precautionary, and there is risk associated with this or any other military operation, the colonel said.
“As everyone would expect, the combatant commander is repositioning forces in the region in an effort to give himself the maximum flexibility to respond to any follow-on request from the Department of State,” Warren said.
Defense Secretary Chuck Hagel has been following the situation very closely, and is in nearly continuous communication with the combatant commander, the official said.
There has been no discussion about the U.S. military helping reposition United Nations forces, Warren said.
Defense Department and other government contracted aircraft have evacuated more than 300 personnel out of South Sudan’s capital of Juba including about 100 yesterday.
HHS SAYS 123 ACCOUNTABLE CARE ORGANIZATIONS SHOULD IMPROVE MEDICARE
FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
More partnerships between doctors and hospitals strengthen coordinated care for Medicare beneficiaries
123 New Accountable Care Organizations Join Program to Improve Care for Medicare beneficiaries
Doctors, hospitals and other health care providers have formed 123 new Accountable Care Organizations (ACOs) in Medicare, providing approximately 1.5 million more Medicare beneficiaries with access to high-quality coordinated care across the United States, Health and Human Services Secretary Kathleen Sebelius announced today.
Doctors, hospitals and health care providers establish ACOs in order to work together to provide higher-quality coordinated care to their patients, while helping to slow health care cost growth. Since passage of the Affordable Care Act, more than 360 ACOs have been established, serving over 5.3 million Americans with Medicare. Beneficiaries seeing health care providers in ACOs always have the freedom to choose doctors inside or outside of the ACO. ACOs share with Medicare any savings generated from lowering the growth in health care costs when they meet standards for high quality care.
“Accountable Care Organizations are delivering higher-quality care to Medicare beneficiaries and are using Medicare dollars more efficiently,” Secretary Sebelius said. “This is a great example of the Affordable Care Act rewarding hospitals and doctors that work together to help our beneficiaries get the best possible care.”
“This program puts the control in the hands of physicians and allows them to take the lead in an innovative way to deliver the right care to the right patient at the right time,” said Kelly A. Conroy, executive director of the Palm Beach ACO and South Florida ACO. “We are honored to be a Medicare Shared Savings Program Accountable Care Organization, and after 18 months in the program, can proudly say that we have seen measurable success. We are so impressed with our participating physicians’ enthusiasm towards the cultural shift, and it demonstrates that physicians are primed for the future of medicine.”
The ACOs must meet quality standards to ensure that savings are achieved through improving care coordination and providing care that is appropriate, safe, and timely. The Centers for Medicare & Medicaid Services (CMS) evaluates ACO quality performance using 33 quality measures on patient and caregiver experience of care, care coordination and patient safety, appropriate use of preventive health services, and improved care for at-risk populations.
The new ACOs include a diverse cross-section of health care providers across the country, including providers delivering care in underserved areas. More than half of ACOs are physician-led organizations that serve fewer than 10,000 beneficiaries. Approximately 1 in 5 ACOs include community health centers, rural health clinics, and critical access hospitals that serve low-income and rural communities.
Affordable Care Act provisions have a substantial effect on reducing the growth rate of Medicare spending. Growth in Medicare spending per beneficiary hit historic lows during the 2010-2012 period, and this trend has continued into 2013. Projections by both the Office of the Actuary at CMS and the Congressional Budget Office estimate that Medicare spending per beneficiary will grow at approximately the rate of growth of the economy for the next decade, breaking a decades-old pattern of spending growth outstripping economic growth.
The next application period for organizations interested in participating in the Shared Savings Program beginning January 2015 will be in summer 2014.
More partnerships between doctors and hospitals strengthen coordinated care for Medicare beneficiaries
123 New Accountable Care Organizations Join Program to Improve Care for Medicare beneficiaries
Doctors, hospitals and other health care providers have formed 123 new Accountable Care Organizations (ACOs) in Medicare, providing approximately 1.5 million more Medicare beneficiaries with access to high-quality coordinated care across the United States, Health and Human Services Secretary Kathleen Sebelius announced today.
Doctors, hospitals and health care providers establish ACOs in order to work together to provide higher-quality coordinated care to their patients, while helping to slow health care cost growth. Since passage of the Affordable Care Act, more than 360 ACOs have been established, serving over 5.3 million Americans with Medicare. Beneficiaries seeing health care providers in ACOs always have the freedom to choose doctors inside or outside of the ACO. ACOs share with Medicare any savings generated from lowering the growth in health care costs when they meet standards for high quality care.
“Accountable Care Organizations are delivering higher-quality care to Medicare beneficiaries and are using Medicare dollars more efficiently,” Secretary Sebelius said. “This is a great example of the Affordable Care Act rewarding hospitals and doctors that work together to help our beneficiaries get the best possible care.”
“This program puts the control in the hands of physicians and allows them to take the lead in an innovative way to deliver the right care to the right patient at the right time,” said Kelly A. Conroy, executive director of the Palm Beach ACO and South Florida ACO. “We are honored to be a Medicare Shared Savings Program Accountable Care Organization, and after 18 months in the program, can proudly say that we have seen measurable success. We are so impressed with our participating physicians’ enthusiasm towards the cultural shift, and it demonstrates that physicians are primed for the future of medicine.”
The ACOs must meet quality standards to ensure that savings are achieved through improving care coordination and providing care that is appropriate, safe, and timely. The Centers for Medicare & Medicaid Services (CMS) evaluates ACO quality performance using 33 quality measures on patient and caregiver experience of care, care coordination and patient safety, appropriate use of preventive health services, and improved care for at-risk populations.
The new ACOs include a diverse cross-section of health care providers across the country, including providers delivering care in underserved areas. More than half of ACOs are physician-led organizations that serve fewer than 10,000 beneficiaries. Approximately 1 in 5 ACOs include community health centers, rural health clinics, and critical access hospitals that serve low-income and rural communities.
Affordable Care Act provisions have a substantial effect on reducing the growth rate of Medicare spending. Growth in Medicare spending per beneficiary hit historic lows during the 2010-2012 period, and this trend has continued into 2013. Projections by both the Office of the Actuary at CMS and the Congressional Budget Office estimate that Medicare spending per beneficiary will grow at approximately the rate of growth of the economy for the next decade, breaking a decades-old pattern of spending growth outstripping economic growth.
The next application period for organizations interested in participating in the Shared Savings Program beginning January 2015 will be in summer 2014.
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