FROM: STATE DEPARTMENT
Remarks to the UN Conference on Disarmament
Remarks
Rose Gottemoeller
Acting Under Secretary for Arms Control and International Security
Geneva, Switzerland
February 4, 2014
As Delivered
Mr. President, Acting Secretary-General Moeller, I am pleased to have this opportunity to address the Conference on Disarmament. To start, I would like to congratulate Israel and Ambassador Manor and his team on assuming the first Presidency of the 2014 CD session, and to thank them for their very dedicated efforts in guiding our deliberations. I would also like to extend our best wishes to the other CD Presidents for 2014 – Italy, Japan, Kazakhstan, Kenya, and Malaysia. We look forward to working with all of you in the year ahead.
In his January 21 remarks to the Conference, UN Secretary General Ban Ki-moon spoke about the importance of substantive discussion in laying groundwork for future CD negotiations. The United States believes it is crucial for the CD to adopt a program of work, but we also believe we must continue to engage substantively with one another – both about the disarmament steps we are taking and the steps we hope to take next – as we work to break this body’s impasse.
As colleagues here are well aware, we stand ready to begin negotiations on an FMCT, the next logical – and necessary – step in creating the conditions for a world without nuclear weapons. It has been frustrating to watch the CD remain deadlocked over this issue, but negotiation of an FMCT is an essential prerequisite for global nuclear disarmament. In recognition of this fact, Action 15 of the 2010 NPT Review Conference Action Plan included an agreement that the CD should begin immediate negotiation of an FMCT. The United States will continue to urge negotiation of an FMCT in this body, convinced that FMCT negotiations at the CD will provide each member state the ability not only to protect, but also to enhance its national security. With that as our guiding conviction, we look forward to engaging fully in the upcoming meetings of the Group of Governmental Experts (GGE), with a view to providing further impetus to long-sought FMCT negotiations in the CD.
As disappointed as we are that a Program of Work for the CD remains elusive, we are not standing still. The United States has slashed its nuclear stockpile by 85% from Cold War levels. Under the New START Treaty, US and Russian deployed strategic nuclear warheads will decline to their lowest levels in over half a century. Recently, the US-Russia Highly Enriched Uranium (HEU) Purchase Agreement culminated with the final shipment of low enriched uranium converted from the equivalent of 20,000 dismantled Russian nuclear warheads to fuel US nuclear reactors. Those former warheads have been providing ten percent of all US electricity. One in ten light bulbs in the U.S. are lit by former Soviet weapon material
Historic efforts like this one reflect the ongoing and significant progress we are making toward our Nuclear Non-Proliferation Treaty Article VI commitments. Here I would add that there are no shortcuts to reaching our shared goal of a world without nuclear weapons. It is necessarily an incremental process that requires hard work by governments operating in the realm of supreme national and international security commitments impacting regional and global stability. The United States is expending tremendous effort to meet its commitments, and we look forward to continuing to engage the Russian Federation regarding issues of strategic stability and with a view to achieving further bilateral reductions.
Like many of you, we are preparing for the upcoming meeting of the NPT Third Preparatory Committee, where we look forward to discussing the important roles both nuclear weapons states and non-nuclear weapons states play in implementing the 2010 Action Plan, in anticipation of the 2015 NPT Review Conference. We are also preparing for the fifth P5 Conference, which we thank China for hosting this year.
The United States attaches great value to the P5 process. I like to stress, the importance of the P5 process is not what it can produce in the immediate-term, but rather what it means for the prospects of multilateral nuclear disarmament efforts in years to come. These conferences are an essential means for laying the foundation for future agreements that could involve parties beyond the United States and Russia. Most people understand that we and Russia likely will need to take some additional bilateral steps before our arsenals are to a level where other nuclear weapon states would be prepared to join us at the negotiating table. The work we are doing now in these conferences will help to ensure that when that day arrives, we will not be starting at square one. Our partners will have the opportunity to benefit from the experience we have gained and shared regarding how monitoring activities like on-site inspections can be conducted to gain an understanding about the technology required to conduct arms control activities and methods of information sharing that build confidence that treaty partners are adhering to the agreement.
We also hope this process will lead to cooperative work in addressing the significant verification challenges we will face as we move to lower numbers and categories of nuclear weapons beyond strategic weapons. The United States and the UK have begun some of this work on developing verification procedures and technologies, and we have briefed our P5 partners on the results. The P5 are uniquely positioned to engage in such research and development given their experience as nuclear weapon states. In the context of a P5 working group chaired by China, we continue to develop a common glossary of nuclear weapons-related terms. A glossary may not sound important or interesting, until you consider that verifiable multilateral nuclear disarmament will require clear agreement on the definitions and concepts for the vital aspects that must be covered in future treaties.
We continue to work to build support for ratification of the CTBT, making the case to our citizens and legislators that the Treaty will serve to enhance our collective security. We ask for the support of the international community in continuing to build and maintain the International Monitoring System and On-Site Inspection regime. As we make the case for the Treaty’s verifiability, this support will be crucial.
These are just a few of the practical measures we are taking to advance toward our shared goal. We celebrate the progress these step-by-step efforts have achieved, but we know we still have much work to do. We remain committed to fulfilling our obligations and working to take additional practical and meaningful steps. Like UN Secretary General Ban Ki-moon, the United States agrees the CD continues to possess promise. It must surmount its deadlock regarding a Program of Work, and in pursuit f that goal the United States is open to renewing the Informal Working Group. At the same time, we believe that CD member states should foster substantive discussions aimed at future progress, with a view to promoting the prospects for work on issues ripe for negotiation, above all, an FMCT. Like the Secretary General, we hope the CD helps to build “a safer world and a better future” because we also believe “that is its very mission.” Thank you.
Wednesday, February 5, 2014
Tuesday, February 4, 2014
SECRETARY KERRY'S PRESS STATEMENT ON ALEPO BARREL-BOMBINGS
FROM: STATE DEPARTMENT
Barrel Bombs in Aleppo
Press Statement
John Kerry
Secretary of State
Washington, DC
February 4, 2014
Each and every day that the barrel-bombing of Aleppo continues, the Asad regime reminds the world of its true colors. It is the latest barbaric act of a regime that has committed organized, wholesale torture, used chemical weapons, and is starving whole communities by blocking delivery of food to Syrian civilians in urgent need.
Now, with air raids killing dozens more civilians in just the past few days, destroying apartment buildings, and barrel bombs striking a mosque today, the staggering civilian toll dramatically climbs. Each and every barrel bomb filled with metal shrapnel and fuel launched against innocent Syrians underscores the barbarity of a regime that has turned its country into a super magnet for terror. Given this horrific legacy, the Syrian people would never accept as legitimate a government including Asad.
While the opposition and the international community are focused on ending the war, as outlined in the Geneva communiqué, the regime is single-mindedly focused on inflicting further destruction to strengthen its hand on the battlefield and undermining hopes for the success of the Geneva II process.
Barrel Bombs in Aleppo
Press Statement
John Kerry
Secretary of State
Washington, DC
February 4, 2014
Each and every day that the barrel-bombing of Aleppo continues, the Asad regime reminds the world of its true colors. It is the latest barbaric act of a regime that has committed organized, wholesale torture, used chemical weapons, and is starving whole communities by blocking delivery of food to Syrian civilians in urgent need.
Now, with air raids killing dozens more civilians in just the past few days, destroying apartment buildings, and barrel bombs striking a mosque today, the staggering civilian toll dramatically climbs. Each and every barrel bomb filled with metal shrapnel and fuel launched against innocent Syrians underscores the barbarity of a regime that has turned its country into a super magnet for terror. Given this horrific legacy, the Syrian people would never accept as legitimate a government including Asad.
While the opposition and the international community are focused on ending the war, as outlined in the Geneva communiqué, the regime is single-mindedly focused on inflicting further destruction to strengthen its hand on the battlefield and undermining hopes for the success of the Geneva II process.
U.S. DEFENSE DEPARTMENT CONTRACTS FOR FEBRUARY 4, 2014
FROM: DEFENSE DEPARTMENT
CONTRACTS
AIR FORCE
KS International LLC, has been awarded a $623,300,000 firm-fixed-price, undefinitized contract action for Iraq base operating support, base life support, and security services at Balad Air Base, Iraq. Work will be performed at Balad Air Base, Iraq, and is expected to be completed by January 2017. This award is the result of a sole-source acquisition. This requirement is 100 percent foreign military sales for the government of Iraq. Air Force Life Cycle Management Center/WWMK, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8615-14-C-6020).
NAVY
Electric Boat Corp., Groton, Conn., is being awarded a $520,000,000 undefinitized contract action under existing contract (N00024-12-C-2115), for additional long lead time material associated with the two fiscal 2015 Virginia-class submarines (SSN 794 and SSN 795) and the two fiscal 2016 Virginia-class submarines (SSN 796 and SSN 797). This contract modification provides additional long lead time material for steam and electric plant components, the main propulsion unit efforts and ship service turbine generator efforts, steel and miscellaneous hull, mechanical and electrical system components. Work will be performed in Sunnyvale, Calif. (30 percent); Coatesville, Pa. (10 percent); Phillipsburg, N.J. (10 percent); Groton, Conn. (7 percent); Newport News, Va. (7 percent); Tempe, Ariz. (5 percent); Charlottesville, Va. (3 percent); East Farmingdale, N.Y. (3 percent); Tucson, Ariz. (3 percent); Florence, N.J. (2 percent); Manchester, N.H. (2 percent); Milwaukee, Wis. (2 percent); Peoria, Ill. (2 percent); Warren, Mass. (2 percent), and other efforts performed at various sites, less than one percent, throughout the United States (12 percent). Work is expected to be complete by January 2015. Fiscal 2014 shipbuilding and conversion, Navy funds in the amount of $283,711,000 will be obligated at the time of the award. Contract funds will not expire at the end of the current fiscal year. This contract was a sole source in accordance with 10 U.S.C. 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-12-C-2115).
The Boeing Co., Seattle, Wash., was awarded a $21,697,098 modification to a previously awarded firm-fixed-price contract (N00019-12-C-0112) on Feb. 3, 2014, to exercise an option for instructional system design courseware and training support for the P-8A program. Work will be performed in St. Louis, Mo., and is expected to be completed in December 2016. Fiscal 2014 aircraft procurement, Navy funds in the amount of $21,697,098 are being obligated at the time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
DEFENSE LOGISTICS AGENCY
Sagent Pharmaceuticals Inc.*, Schaumburg, Ill., has been awarded a maximum $28,407,510 modification (P00004) exercising the second option year on a one-year base contract (SPM2D0-13-D-0001) with seven one-year option periods for various pharmaceutical products. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance Illinois with a Feb. 7, 2015 performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2014 warstopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
Imperial Flying Service Inc.*, Imperial, Calif., has been awarded a maximum $15,613,492 fixed-price with economic-price-adjustment contract for jet fuel. This contract is a competitive acquisition and one offer was received. Location of performance is California with a March 31, 2018 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va.; (SP0600-14-D-0050).
Denisply Caulk, Milford, Del., has been awarded a maximum $13,098,664 modification (P00011) exercising the fourth option year on a 16-month base contract (SPM2DE-09-D-7445) with three one-year option periods and one eight-month option period for distribution of a wide range of general dental supplies. This is a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract. Location of performance Delaware with an Oct. 11, 2014 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
ARMY
Booz Allen Hamilton, McLean, Va. (W15QKN-14-D-0010); Dynamics Research Corp., Andover, Mass. (W15QKN-14-D-0011); D&S Consultants Inc., Eatontown, N.J. (W15QKN-14-D-0012); EOIR Technologies Inc., Aberdeen Proving Ground, Md. (W15QKN-14-D-0013); SAIC, McLean, Va. (W15QKN-14-D-0014) were awarded a $9,990,000 firm-fixed-price contract for support to the Systems Engineering Directorate, Picatinny Arsenal, for the research and development of engineering integration systems. Funding and work location will be determined with each order. Estimated completion date is Feb. 3, 2017. Bids were solicited via the Internet with six received. Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity.
*Small Business
CONTRACTS
AIR FORCE
KS International LLC, has been awarded a $623,300,000 firm-fixed-price, undefinitized contract action for Iraq base operating support, base life support, and security services at Balad Air Base, Iraq. Work will be performed at Balad Air Base, Iraq, and is expected to be completed by January 2017. This award is the result of a sole-source acquisition. This requirement is 100 percent foreign military sales for the government of Iraq. Air Force Life Cycle Management Center/WWMK, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8615-14-C-6020).
NAVY
Electric Boat Corp., Groton, Conn., is being awarded a $520,000,000 undefinitized contract action under existing contract (N00024-12-C-2115), for additional long lead time material associated with the two fiscal 2015 Virginia-class submarines (SSN 794 and SSN 795) and the two fiscal 2016 Virginia-class submarines (SSN 796 and SSN 797). This contract modification provides additional long lead time material for steam and electric plant components, the main propulsion unit efforts and ship service turbine generator efforts, steel and miscellaneous hull, mechanical and electrical system components. Work will be performed in Sunnyvale, Calif. (30 percent); Coatesville, Pa. (10 percent); Phillipsburg, N.J. (10 percent); Groton, Conn. (7 percent); Newport News, Va. (7 percent); Tempe, Ariz. (5 percent); Charlottesville, Va. (3 percent); East Farmingdale, N.Y. (3 percent); Tucson, Ariz. (3 percent); Florence, N.J. (2 percent); Manchester, N.H. (2 percent); Milwaukee, Wis. (2 percent); Peoria, Ill. (2 percent); Warren, Mass. (2 percent), and other efforts performed at various sites, less than one percent, throughout the United States (12 percent). Work is expected to be complete by January 2015. Fiscal 2014 shipbuilding and conversion, Navy funds in the amount of $283,711,000 will be obligated at the time of the award. Contract funds will not expire at the end of the current fiscal year. This contract was a sole source in accordance with 10 U.S.C. 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-12-C-2115).
The Boeing Co., Seattle, Wash., was awarded a $21,697,098 modification to a previously awarded firm-fixed-price contract (N00019-12-C-0112) on Feb. 3, 2014, to exercise an option for instructional system design courseware and training support for the P-8A program. Work will be performed in St. Louis, Mo., and is expected to be completed in December 2016. Fiscal 2014 aircraft procurement, Navy funds in the amount of $21,697,098 are being obligated at the time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
DEFENSE LOGISTICS AGENCY
Sagent Pharmaceuticals Inc.*, Schaumburg, Ill., has been awarded a maximum $28,407,510 modification (P00004) exercising the second option year on a one-year base contract (SPM2D0-13-D-0001) with seven one-year option periods for various pharmaceutical products. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance Illinois with a Feb. 7, 2015 performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2014 warstopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
Imperial Flying Service Inc.*, Imperial, Calif., has been awarded a maximum $15,613,492 fixed-price with economic-price-adjustment contract for jet fuel. This contract is a competitive acquisition and one offer was received. Location of performance is California with a March 31, 2018 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va.; (SP0600-14-D-0050).
Denisply Caulk, Milford, Del., has been awarded a maximum $13,098,664 modification (P00011) exercising the fourth option year on a 16-month base contract (SPM2DE-09-D-7445) with three one-year option periods and one eight-month option period for distribution of a wide range of general dental supplies. This is a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract. Location of performance Delaware with an Oct. 11, 2014 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
ARMY
Booz Allen Hamilton, McLean, Va. (W15QKN-14-D-0010); Dynamics Research Corp., Andover, Mass. (W15QKN-14-D-0011); D&S Consultants Inc., Eatontown, N.J. (W15QKN-14-D-0012); EOIR Technologies Inc., Aberdeen Proving Ground, Md. (W15QKN-14-D-0013); SAIC, McLean, Va. (W15QKN-14-D-0014) were awarded a $9,990,000 firm-fixed-price contract for support to the Systems Engineering Directorate, Picatinny Arsenal, for the research and development of engineering integration systems. Funding and work location will be determined with each order. Estimated completion date is Feb. 3, 2017. Bids were solicited via the Internet with six received. Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity.
*Small Business
FORMER ALABAMA KKK LEADER PLEADS GUILTY IN CROSS BURNING CASE
FROM: JUSTICE DEPARTMENT
Monday, February 3, 2014
Former Alabama KKK Leader Pleads Guilty to Cross Burning and Obstruction of Justice
Steven Joshua Dinkle, 28, former Exalted Cyclops of the Ozark, Ala., chapter of the International Keystone Knights of the Ku Klux Klan (KKK), pleaded guilty in federal court today to hate crime and obstruction of justice charges for his role in a 2009 cross burning, the Justice Department and the U.S. Attorney’s Office for the Middle District of Alabama announced.
According to documents filed with the court, Dinkle and one of his KKK recruits, Thomas Windell Smith, met at Dinkle’s home on May 8, 2009, and decided to burn a cross in a local African-American neighborhood.
Dinkle constructed a wooden cross about six feet tall, wrapped jeans and a towel around it to make it more flammable and loaded it into Smith’s truck. Around 8:00 p.m., Dinkle and Smith drove to an African-American neighborhood in Ozark. Dinkle unloaded the cross at the entrance to the community and dug a hole in the ground, then poured fuel on the cross, stood it up in the hole in view of several houses and set it on fire. Dinkle and Smith then drove away.
When questioned by local investigators, Dinkle falsely denied his involvement in the incident and stated that he had resigned his office and withdrawn from the KKK months before the cross burning. When approached by the FBI, Dinkle again lied and told a special agent that he had been at home with his girlfriend when the cross burning occurred. He further claimed that he did not know one of his superiors in the KKK at the time of the cross burning. During the plea hearing, Dinkle admitted that in burning the cross, he intended to scare and intimidate residents of the African-American community by threatening the use of force against them. He further admitted that he burned the cross because of the victims’ race and color and because they were occupying homes in that area.
Dinkle pleaded guilty to one count of conspiracy to violate housing rights, one count of criminal interference with the right to fair housing and two counts of obstruction of justice.
Dinkle faces a statutory maximum sentence of 10 years in prison and a $250,000 maximum fine on the conspiracy and criminal interference counts and a statutory maximum sentence of 25 years in prison and a $500,000 maximum fine for obstructing justice by making false statements to both local investigators and federal agents. Sentencing for Dinkle has not yet been scheduled.
Dinkle’s co-conspirator, Smith, pleaded guilty to one count of conspiracy to violate housing rights in December 2013. He is scheduled to be sentenced on March 11, 2014.
“By targeting the victims with a blazing cross in the night, one of the most threatening racial symbols in our nation’s history, the defendant attempted to terrorize a neighborhood because of the color of the residents’ skin,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Prosecuting these racially motivated crimes will continue to be a priority for the Department of Justice.”
“ As a society we hope to never see this type of hate,” said U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. “We will continue to prosecute those that commit these horrible acts of hate to the fullest extent of the law.”
This case was investigated by the FBI, with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.
Monday, February 3, 2014
Former Alabama KKK Leader Pleads Guilty to Cross Burning and Obstruction of Justice
Steven Joshua Dinkle, 28, former Exalted Cyclops of the Ozark, Ala., chapter of the International Keystone Knights of the Ku Klux Klan (KKK), pleaded guilty in federal court today to hate crime and obstruction of justice charges for his role in a 2009 cross burning, the Justice Department and the U.S. Attorney’s Office for the Middle District of Alabama announced.
According to documents filed with the court, Dinkle and one of his KKK recruits, Thomas Windell Smith, met at Dinkle’s home on May 8, 2009, and decided to burn a cross in a local African-American neighborhood.
Dinkle constructed a wooden cross about six feet tall, wrapped jeans and a towel around it to make it more flammable and loaded it into Smith’s truck. Around 8:00 p.m., Dinkle and Smith drove to an African-American neighborhood in Ozark. Dinkle unloaded the cross at the entrance to the community and dug a hole in the ground, then poured fuel on the cross, stood it up in the hole in view of several houses and set it on fire. Dinkle and Smith then drove away.
When questioned by local investigators, Dinkle falsely denied his involvement in the incident and stated that he had resigned his office and withdrawn from the KKK months before the cross burning. When approached by the FBI, Dinkle again lied and told a special agent that he had been at home with his girlfriend when the cross burning occurred. He further claimed that he did not know one of his superiors in the KKK at the time of the cross burning. During the plea hearing, Dinkle admitted that in burning the cross, he intended to scare and intimidate residents of the African-American community by threatening the use of force against them. He further admitted that he burned the cross because of the victims’ race and color and because they were occupying homes in that area.
Dinkle pleaded guilty to one count of conspiracy to violate housing rights, one count of criminal interference with the right to fair housing and two counts of obstruction of justice.
Dinkle faces a statutory maximum sentence of 10 years in prison and a $250,000 maximum fine on the conspiracy and criminal interference counts and a statutory maximum sentence of 25 years in prison and a $500,000 maximum fine for obstructing justice by making false statements to both local investigators and federal agents. Sentencing for Dinkle has not yet been scheduled.
Dinkle’s co-conspirator, Smith, pleaded guilty to one count of conspiracy to violate housing rights in December 2013. He is scheduled to be sentenced on March 11, 2014.
“By targeting the victims with a blazing cross in the night, one of the most threatening racial symbols in our nation’s history, the defendant attempted to terrorize a neighborhood because of the color of the residents’ skin,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Prosecuting these racially motivated crimes will continue to be a priority for the Department of Justice.”
“ As a society we hope to never see this type of hate,” said U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. “We will continue to prosecute those that commit these horrible acts of hate to the fullest extent of the law.”
This case was investigated by the FBI, with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.
HHS HELPS PATIENTS ACCESS LAB TEST REPORTS
FROM: DEPARTMENT OF HEALTH AND HUMAN SERVICES
HHS strengthens patients’ right to access lab test reports
As part of an ongoing effort to empower patients to be informed partners with their health care providers, the Department of Health and Human Services (HHS) has taken action to give patients or a person designated by the patient a means of direct access to the patient’s completed laboratory test reports.
“The right to access personal health information is a cornerstone of the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule,” said Secretary Kathleen Sebelius. “Information like lab results can empower patients to track their health progress, make decisions with their health care professionals, and adhere to important treatment plans.”
The final rule announced today amends the Clinical Laboratory Improvement Amendments of 1988 (CLIA) regulations to allow laboratories to give a patient, or a person designated by the patient, his or her “personal representative,” access to the patient’s completed test reports on the patient’s or patient’s personal representative’s request. At the same time, the final rule eliminates the exception under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Privacy Rule to an individual’s right to access his or her protected health information when it is held by a CLIA-certified or CLIA-exempt laboratory. While patients can continue to get access to their laboratory test reports from their doctors, these changes give patients a new option to obtain their test reports directly from the laboratory while maintaining strong protections for patients’ privacy.
The final rule is issued jointly by three agencies within HHS: the Centers for Medicare & Medicaid Services (CMS), which is generally responsible for laboratory regulation under CLIA, the Centers for Disease Control and Prevention (CDC), which provides scientific and technical advice to CMS related to CLIA, and the Office for Civil Rights (OCR), which is responsible for enforcing the HIPAA Privacy Rule.
Under the HIPAA Privacy Rule, patients, patient’s designees and patient’s personal representatives can see or be given a copy of the patient’s protected health information, including an electronic copy, with limited exceptions. In doing so, the patient or the personal representative may have to put their request in writing and pay for the cost of copying, mailing, or electronic media on which the information is provided, such as a CD or flash drive. In most cases, copies must be given to the patient within 30 days of his or her request.
HHS strengthens patients’ right to access lab test reports
As part of an ongoing effort to empower patients to be informed partners with their health care providers, the Department of Health and Human Services (HHS) has taken action to give patients or a person designated by the patient a means of direct access to the patient’s completed laboratory test reports.
“The right to access personal health information is a cornerstone of the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule,” said Secretary Kathleen Sebelius. “Information like lab results can empower patients to track their health progress, make decisions with their health care professionals, and adhere to important treatment plans.”
The final rule announced today amends the Clinical Laboratory Improvement Amendments of 1988 (CLIA) regulations to allow laboratories to give a patient, or a person designated by the patient, his or her “personal representative,” access to the patient’s completed test reports on the patient’s or patient’s personal representative’s request. At the same time, the final rule eliminates the exception under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Privacy Rule to an individual’s right to access his or her protected health information when it is held by a CLIA-certified or CLIA-exempt laboratory. While patients can continue to get access to their laboratory test reports from their doctors, these changes give patients a new option to obtain their test reports directly from the laboratory while maintaining strong protections for patients’ privacy.
The final rule is issued jointly by three agencies within HHS: the Centers for Medicare & Medicaid Services (CMS), which is generally responsible for laboratory regulation under CLIA, the Centers for Disease Control and Prevention (CDC), which provides scientific and technical advice to CMS related to CLIA, and the Office for Civil Rights (OCR), which is responsible for enforcing the HIPAA Privacy Rule.
Under the HIPAA Privacy Rule, patients, patient’s designees and patient’s personal representatives can see or be given a copy of the patient’s protected health information, including an electronic copy, with limited exceptions. In doing so, the patient or the personal representative may have to put their request in writing and pay for the cost of copying, mailing, or electronic media on which the information is provided, such as a CD or flash drive. In most cases, copies must be given to the patient within 30 days of his or her request.
RECENT U.S. MARINE CORPS PHOTOS FROM AFGHANISTAN
FROM: U.S. DEFENSE DEPARTMENT  |
| U.S. Marines conduct rocket range training outside of Camp Leatherneck in Helmand province, Afghanistan, Jan. 31, 2014. U.S. Marine Corps photo by Eric S. Wilterdink |
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| A U.S. Marine fires a shoulder mounted rocket during rocket range training outside of Camp Leatherneck in Helmand province, Afghanistan, Jan. 31, 2014. U.S. Marine Corps photo by Eric S. Wilterdink. |
SEC SUSPENDS TRADING IN 255 SHELL COMPANIES TO FIGHT FRAUD
FROM: SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today announced the latest actions in its microcap fraud-fighting initiative known as Operation Shell-Expel, suspending trading in 255 dormant shell companies ripe for abuse in the over-the-counter market.
Pump-and-dump schemes are among the most common types of fraud involving microcap companies. Perpetrators will tout a thinly-traded microcap stock through false and misleading statements about the company to the marketplace. After purchasing low and pumping the stock price higher by creating the appearance of market activity, they dump the stock to make huge profits by selling it into the market at the higher price.
Since Operation Shell-Expel began in 2012, the SEC Enforcement Division’s Office of Market Intelligence has been cleaning up the microcap marketplace by scrutinizing penny stocks nationwide and identifying clearly inactive companies. This has enabled the SEC to proactively suspend trading in several hundred dormant shell companies before fraudsters have an opportunity to manipulate them.
“A frequent element in pump-and-dump schemes has been the use of dormant shells,” said Andrew J. Ceresney, director of the SEC Enforcement Division. “Because these shells all too often are used by those looking to manipulate stock prices, we will continue to protect unwary investors by suspending trading in shells.”
Today’s massive trading suspension involves dormant shell companies uncovered in 26 states and two foreign countries. Once a stock has been suspended from trading, it cannot be relisted unless the company provides updated financial information to prove it is still operational. It is extremely rare for a company to fulfill this requirement, so the trading suspension essentially renders the shells worthless and useless to scam artists.
“Policing this sector of the markets can be a challenge,” said Margaret Cain, a microcap specialist in the Office of Market Intelligence. “There is often little or no reliable information about a microcap issuer, and the sheer number of these companies stretches law enforcement resources thin and makes this sector particularly dangerous for investors. The approach we take with Operation Shell-Expel is both economical and efficient as the SEC continues its commitment to preventing microcap fraud.”
In addition to Ms. Cain, the Operation Shell-Expel initiative has been led by William Hankins, Robert Bernstein, Victoria Adraktas, Jessica P. Regan, Leigh Barrett, John Gibbons, and Megan Alcorn in the Office of Market Intelligence with assistance from the Enforcement Division’s Delinquent Filings Group. The SEC appreciates the assistance of the FBI’s Economic Crimes Unit.
The Securities and Exchange Commission today announced the latest actions in its microcap fraud-fighting initiative known as Operation Shell-Expel, suspending trading in 255 dormant shell companies ripe for abuse in the over-the-counter market.
Pump-and-dump schemes are among the most common types of fraud involving microcap companies. Perpetrators will tout a thinly-traded microcap stock through false and misleading statements about the company to the marketplace. After purchasing low and pumping the stock price higher by creating the appearance of market activity, they dump the stock to make huge profits by selling it into the market at the higher price.
Since Operation Shell-Expel began in 2012, the SEC Enforcement Division’s Office of Market Intelligence has been cleaning up the microcap marketplace by scrutinizing penny stocks nationwide and identifying clearly inactive companies. This has enabled the SEC to proactively suspend trading in several hundred dormant shell companies before fraudsters have an opportunity to manipulate them.
“A frequent element in pump-and-dump schemes has been the use of dormant shells,” said Andrew J. Ceresney, director of the SEC Enforcement Division. “Because these shells all too often are used by those looking to manipulate stock prices, we will continue to protect unwary investors by suspending trading in shells.”
Today’s massive trading suspension involves dormant shell companies uncovered in 26 states and two foreign countries. Once a stock has been suspended from trading, it cannot be relisted unless the company provides updated financial information to prove it is still operational. It is extremely rare for a company to fulfill this requirement, so the trading suspension essentially renders the shells worthless and useless to scam artists.
“Policing this sector of the markets can be a challenge,” said Margaret Cain, a microcap specialist in the Office of Market Intelligence. “There is often little or no reliable information about a microcap issuer, and the sheer number of these companies stretches law enforcement resources thin and makes this sector particularly dangerous for investors. The approach we take with Operation Shell-Expel is both economical and efficient as the SEC continues its commitment to preventing microcap fraud.”
In addition to Ms. Cain, the Operation Shell-Expel initiative has been led by William Hankins, Robert Bernstein, Victoria Adraktas, Jessica P. Regan, Leigh Barrett, John Gibbons, and Megan Alcorn in the Office of Market Intelligence with assistance from the Enforcement Division’s Delinquent Filings Group. The SEC appreciates the assistance of the FBI’s Economic Crimes Unit.
FTC TESTIFIES ON DATA SECURITY
FROM: FEDERAL TRADE COMMISSION
FTC Testifies on Data Security before Senate Banking Subcommittee
In testimony before a U.S. Senate Banking subcommittee, the Federal Trade Commission updated Congress on the agency’s ongoing efforts to promote data security through civil law enforcement, education, and policy initiatives.
Testifying on behalf of the Commission before the Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on National Security and International Trade and Finance, Bureau of Consumer Protection Director Jessica Rich told lawmakers that hackers and others seek to exploit vulnerabilities in order to obtain consumers’ sensitive information and potentially misuse it.
“Data security is of critical importance to consumers. If companies do not protect the personal information they collect and store, that information could fall into the wrong hands, resulting in fraud and other harm,” the testimony states.
The testimony notes that, to promote data security, the FTC enforces several statutes and rules that impose obligations upon businesses that collect and maintain consumer data. These include the proscription against unfair or deceptive acts or practices in Section 5 of the FTC Act; the Gramm-Leach-Bliley Act; the Fair Credit Reporting Act; and the Children’s Online Privacy Protection Act.
Since 2001, FTC has used its authority to bring cases against businesses that it charged with failing to provide reasonable protections for consumers’ personal information, the testimony states. Last week, the agency announced it had reached a milestone with its 50th data security settlement. GMR Transcription Services, Inc., a medical transcription company, agreed to settle FTC charges that it that had unreasonable data security measures, exposing the personal information of thousands of consumers on the Internet.
“In each of these cases, the Commission has examined a company’s practices as a whole and challenged alleged data security failures that were multiple and systemic,” the testimony states.
The testimony also outlines policy initiatives the FTC has undertaken to promote privacy and data security. The agency encourages companies to provide reasonable data security by following certain key principles. These include: knowing what consumer information they have; limiting the information they collect and retain; assessing risks and implementing protections for the information they maintain; properly disposing of information that they no longer need; and having a plan in place to respond to security incidents.
The testimony states that the FTC also is committed to promoting better data security practices through consumer education and business guidance. On the consumer education front, the Commission sponsors OnGuard Online, a website designed to educate consumers about basic computer security, as well as its Spanish-language counterpart Alerta en Línea. For consumers who may have been affected by the recent Target and other breaches, the FTC posted information online about steps they should take to protect themselves.
The FTC also widely disseminates a business guide on data security, along with an online tutorial, that are designed to provide diverse businesses –especially small businesses – with practical, concrete advice as they develop data security programs and plans for their companies, the testimony notes.
Finally, the testimony points out the FTC’s long history of working closely with federal and state agencies, as well as the private sector, to promote privacy and data security. The agency works with state Attorneys General to coordinate investigations and leverage its resources. It also has worked with criminal law enforcement agencies, such as the Federal Bureau of Investigation and Secret Service, that prosecute identity thieves, fraudsters, and other criminals.
“The FTC remains committed to promoting reasonable security for consumer data and we look forward to continuing to work with Congress on this critical issue,” the testimony states.
The Commission vote approving the testimony and its inclusion in the formal record was 4-0.
FTC Testifies on Data Security before Senate Banking Subcommittee
In testimony before a U.S. Senate Banking subcommittee, the Federal Trade Commission updated Congress on the agency’s ongoing efforts to promote data security through civil law enforcement, education, and policy initiatives.
Testifying on behalf of the Commission before the Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on National Security and International Trade and Finance, Bureau of Consumer Protection Director Jessica Rich told lawmakers that hackers and others seek to exploit vulnerabilities in order to obtain consumers’ sensitive information and potentially misuse it.
“Data security is of critical importance to consumers. If companies do not protect the personal information they collect and store, that information could fall into the wrong hands, resulting in fraud and other harm,” the testimony states.
The testimony notes that, to promote data security, the FTC enforces several statutes and rules that impose obligations upon businesses that collect and maintain consumer data. These include the proscription against unfair or deceptive acts or practices in Section 5 of the FTC Act; the Gramm-Leach-Bliley Act; the Fair Credit Reporting Act; and the Children’s Online Privacy Protection Act.
Since 2001, FTC has used its authority to bring cases against businesses that it charged with failing to provide reasonable protections for consumers’ personal information, the testimony states. Last week, the agency announced it had reached a milestone with its 50th data security settlement. GMR Transcription Services, Inc., a medical transcription company, agreed to settle FTC charges that it that had unreasonable data security measures, exposing the personal information of thousands of consumers on the Internet.
“In each of these cases, the Commission has examined a company’s practices as a whole and challenged alleged data security failures that were multiple and systemic,” the testimony states.
The testimony also outlines policy initiatives the FTC has undertaken to promote privacy and data security. The agency encourages companies to provide reasonable data security by following certain key principles. These include: knowing what consumer information they have; limiting the information they collect and retain; assessing risks and implementing protections for the information they maintain; properly disposing of information that they no longer need; and having a plan in place to respond to security incidents.
The testimony states that the FTC also is committed to promoting better data security practices through consumer education and business guidance. On the consumer education front, the Commission sponsors OnGuard Online, a website designed to educate consumers about basic computer security, as well as its Spanish-language counterpart Alerta en Línea. For consumers who may have been affected by the recent Target and other breaches, the FTC posted information online about steps they should take to protect themselves.
The FTC also widely disseminates a business guide on data security, along with an online tutorial, that are designed to provide diverse businesses –especially small businesses – with practical, concrete advice as they develop data security programs and plans for their companies, the testimony notes.
Finally, the testimony points out the FTC’s long history of working closely with federal and state agencies, as well as the private sector, to promote privacy and data security. The agency works with state Attorneys General to coordinate investigations and leverage its resources. It also has worked with criminal law enforcement agencies, such as the Federal Bureau of Investigation and Secret Service, that prosecute identity thieves, fraudsters, and other criminals.
“The FTC remains committed to promoting reasonable security for consumer data and we look forward to continuing to work with Congress on this critical issue,” the testimony states.
The Commission vote approving the testimony and its inclusion in the formal record was 4-0.
U.S. STATE DEPARTMENT SAYS HAITIAN POLICE ACADEMY HAS LARGEST GRADUATING CLASS IN RECENT HISTORY
FROM: STATE DEPARTMENT
Largest Class in Recent History Graduates from Haitian National Police Academy
It was 80 degrees and sunny on Friday, December 27, 2013, when 1,058 newly minted Haitian National Police (HNP) cadets stood in perfect formation on the parade grounds of the Police Academy in Port-au-Prince. More than ten percent of this 24th class of graduating cadets is female, and all were wearing uniforms donated by the United States Government, through INL. Observing the newest inductees to Haiti’s sole security force were Haitian President Michel Martelly, U.S. Ambassador Pamela White, the Minister of Justice, and the Director General of the HNP.
Portland Police Bureau joined the Department of Justice’s International Criminal Investigative Training Assistance Program (ICITAP) to implement INL’s community policing program in Bangladesh. The program was launched in 2010, and takes place in Rajshahi Division of northwestern Bangladesh, an area previously identified as vulnerable to violent extremism. The program supports a model of policing that emphasizes the establishment of police-community partnerships and a problem-solving approach that is responsive to community concerns. Program objectives include: 1) teaching Bangladesh police officers and citizens community policing strategies and assisting them with implementation; 2) providing hands-on instruction, modeling and mentoring to Bangladesh police officers and citizens using an embedding strategy and; 3) supporting the overall community by identifying additional stakeholders with the Rajshahi Metropolitan Police.
Four years after the 2010 earthquake, Haiti is slowly rebuilding itself with the help of the international community. The HNP, with assistance from the UN Stabilization Force for Haiti (MINUSTAH), is responsible for keeping the peace in Haiti. Crime and citizen security, a history of political demonstrations, and responding to natural disasters such as hurricanes are key challenges facing Haiti’s police. U.S. assistance has included the provision of new infrastructure and equipment, but training on democratic policing standards is now a cornerstone of our support to Haiti’s efforts to develop a more credible and competent police force – progress that is clearly reflected in the 1,058 men and women who donned their crisp yellow uniforms for the first time last month. The class is one of the largest since the establishment of the HNP in 1995 and represents a major step towards achieving the Government of Haiti’s goal of increasing force size from 10,000 in 2012 to 15,000 by 2016.
A number of the graduates are slated for specialized functions. Eighty will serve as corrections officers, 100 will receive additional training as special counter-narcotics police in the elite La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS) unit, and 40 will be assigned to the recently established community policing program in an underserved area of Port-au-Prince. The community policing program, the brainchild of an FBI-trained HNP Commander, was developed through assistance from a cadre of NYPD officers that INL supports on long-term deployments to Haiti.
In addition to uniforms, INL also provides a food supplement and hygiene supplies to all of the recruits who can receive no compensation during their basic training at the academy. The academy itself has benefitted from INL-funded refurbishments and renovations. The medical and psychological phases of the next recruiting process are already underway for the 25th Promotion, with training due to begin in February. Thanks to a grant from INL to a local clinic for these services, approximately 1,900 candidates have already been screened. The goal is to identify and select more than 1,000 cadets, who would graduate in the fall. With this added strength, hopefully the HNP will soon enjoy a future just as promising as the bright sun at last month’s graduation ceremony in Port-au-Prince.
Largest Class in Recent History Graduates from Haitian National Police Academy
It was 80 degrees and sunny on Friday, December 27, 2013, when 1,058 newly minted Haitian National Police (HNP) cadets stood in perfect formation on the parade grounds of the Police Academy in Port-au-Prince. More than ten percent of this 24th class of graduating cadets is female, and all were wearing uniforms donated by the United States Government, through INL. Observing the newest inductees to Haiti’s sole security force were Haitian President Michel Martelly, U.S. Ambassador Pamela White, the Minister of Justice, and the Director General of the HNP.
Portland Police Bureau joined the Department of Justice’s International Criminal Investigative Training Assistance Program (ICITAP) to implement INL’s community policing program in Bangladesh. The program was launched in 2010, and takes place in Rajshahi Division of northwestern Bangladesh, an area previously identified as vulnerable to violent extremism. The program supports a model of policing that emphasizes the establishment of police-community partnerships and a problem-solving approach that is responsive to community concerns. Program objectives include: 1) teaching Bangladesh police officers and citizens community policing strategies and assisting them with implementation; 2) providing hands-on instruction, modeling and mentoring to Bangladesh police officers and citizens using an embedding strategy and; 3) supporting the overall community by identifying additional stakeholders with the Rajshahi Metropolitan Police.
Four years after the 2010 earthquake, Haiti is slowly rebuilding itself with the help of the international community. The HNP, with assistance from the UN Stabilization Force for Haiti (MINUSTAH), is responsible for keeping the peace in Haiti. Crime and citizen security, a history of political demonstrations, and responding to natural disasters such as hurricanes are key challenges facing Haiti’s police. U.S. assistance has included the provision of new infrastructure and equipment, but training on democratic policing standards is now a cornerstone of our support to Haiti’s efforts to develop a more credible and competent police force – progress that is clearly reflected in the 1,058 men and women who donned their crisp yellow uniforms for the first time last month. The class is one of the largest since the establishment of the HNP in 1995 and represents a major step towards achieving the Government of Haiti’s goal of increasing force size from 10,000 in 2012 to 15,000 by 2016.
A number of the graduates are slated for specialized functions. Eighty will serve as corrections officers, 100 will receive additional training as special counter-narcotics police in the elite La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS) unit, and 40 will be assigned to the recently established community policing program in an underserved area of Port-au-Prince. The community policing program, the brainchild of an FBI-trained HNP Commander, was developed through assistance from a cadre of NYPD officers that INL supports on long-term deployments to Haiti.
In addition to uniforms, INL also provides a food supplement and hygiene supplies to all of the recruits who can receive no compensation during their basic training at the academy. The academy itself has benefitted from INL-funded refurbishments and renovations. The medical and psychological phases of the next recruiting process are already underway for the 25th Promotion, with training due to begin in February. Thanks to a grant from INL to a local clinic for these services, approximately 1,900 candidates have already been screened. The goal is to identify and select more than 1,000 cadets, who would graduate in the fall. With this added strength, hopefully the HNP will soon enjoy a future just as promising as the bright sun at last month’s graduation ceremony in Port-au-Prince.
CELLS TRANSPORTING ANTICANCER DRUGS MAY STUNT GROWTH IN BRAIN TUMORS
FROM: NATIONAL SCIENCE FOUNDATION
Radically modified cells may stunt brain tumor growth
Cell-based treatment could lead to a new standard of care for brain cancer patients
The American Brain Tumor Association says this year nearly 70,000 people in the United States will be diagnosed with tumors that form in blood vessels, cranial nerves, lymphatic tissue and other parts of the brain. Of those, nearly 12,000 people will be diagnosed with a particularly deadly form of brain cancer called glioblastoma multiforme (GBM).
GBMs hide behind a protective barrier in the brain and, among other things, attack white blood cells that serve as the body's defense. Now, with some innovative science, National Science Foundation (NSF)-funded researchers are working to improve the ability of those same white blood cells to attack the cancer right back.
Stefan Bossmann and Deryl Troyer at Kansas State University in Manhattan, Kan., are developing a new materials treatment method that uses a type of white blood cell called a neutrophil to slip medications past the brain's protective barrier and strike down malignant tumors directly.
More than 100 years ago, when blue dye was injected into the bloodstream of an animal, scientists discovered that tissues in the animal's whole body turned blue, except in its brain and spinal cord. They determined that a "blood-brain barrier" protects the brain from extraneous materials in the blood. It was later determined that the blood-brain barrier also protects tumors in the brain from being readily exposed to anticancer drugs.
"Defensive cells--essentially, white blood cells--have the ability of moving through [the blood-brain barrier] to tumors and metastases," explains Bossmann. "The goal of our research is to use cells as transport ships for anticancer drugs."
In principle, using cells to carry drugs to intended targets is a pretty straightforward concept. However, creating a "cargo hold" within the cells that is sturdy enough to successfully carry a medicinal payload past the blood-brain barrier to a desired endpoint has been a challenge.
Previous efforts have resulted in cargo holds that leak, burst prematurely or fuse with the cells that carry them, causing the drugs to be released before reaching the target and killing the transport cells, not the tumors.
For doctors treating patients with GBM, new treatment methods are sorely needed.
"Innovation in designing new therapeutic strategies is urgently needed to tackle GBM, one of the most lethal human tumors and the most aggressive adult brain tumor," says Erwin Van Meir, a brain tumor researcher and director of the Winship Cancer Institute's Cancer Cell Biology Program at Emory University in Atlanta, Ga.
"The challenge has been that tumors have developed strategies to avoid immune detection, or they render the immune cells [helpless] or even switch them to a state that helps tumor growth," he says. "Developing cell-based therapeutics in new ways is certainly exciting."
A new class of "cages"
To solve the problem of getting drugs past the blood-brain barrier and directly to tumors, Bossmann and Troyer are developing a new class of protease-activatable polymer-caged liposomes (PPCLs). Liposomes essentially are artificial bubbles created within cells that can be used as vessels to carry and administer therapeutic medicines.
The researchers are creating self-assembling "cages" that wrap around liposomes--turning them into more secure cargo-holds. Their process involves loading caged liposomes with anticancer medicine before up-take by neutrophils that will self-destruct and release the drugs when they reach tumors.
The PPCLs proposed by the researchers are designed to be more stable than classic liposomes, prevent systemic leaking during transport and activate only once they integrate into tumors. This should facilitate the killing of fast growing tumor cells and slow growing cancer stem cells responsible for the reappearance of tumors and the formation of metastases that spread tumors to other parts of the body.
The proposed cell therapy method would work by taking whole blood from cancer patients, then loading redesigned cargo holds within the whole blood's neutrophils with anticancer drugs and afterwards re-injecting the modified neutrophils into the patient's blood stream.
"The advantage of using defensive white blood cells is that they are patient-derived. This means that they are available in sufficient numbers for repetitive treatments," explains Troyer, an expert in veterinary medicine and preclinical models of cancer at Kansas State. "It also means there are absolutely no issues of rejection of the transport cell by the patient's immune system."
Chemo, nano, cell
Currently physicians use two basic methods to deliver anticancer drugs: traditional chemotherapy and nanotherapy.
Chemotherapy delivers drugs via the infusion of liquid medicines directly into a vein, typically through an IV bag or drip chamber. The process also may involve delivering drugs by an injection into a layer of skin or orally as pills and capsules. Unfortunately, the process comes with potentially harmful side effects, including toxicity that can compromise liver, kidney and immune function. Chemo also may cause secondary malignancies or cancerous growths.
Meanwhile, nanotherapy uses nano-sized drug particles, on the order of about a billionth of a meter, to enhance drug-dosage performance. Particles at this size move more easily through the blood-brain barrier and can saturate tumors at higher rates, providing faster therapeutic action. Still, they deliver only about 10 percent of a therapeutic dose of anticancer drugs--better than the 1-2 percent delivered by chemotherapy, but still inefficient.
"Neither classic chemotherapy nor conventional nanotherapy is capable of delivering more than a fraction of a prescribed dosage of anticancer drugs to tumors and metastases," says Bossmann, a professor of chemistry at Kansas State. "Consequently, other cells of the body are damaged, including stem cells in bone marrow that form immune cells, as well as stem cells in the digestive system. Cell therapy offers the opportunity to transport more than 50 percent of anticancer drugs to their target, while leaving the patient's immune system intact."
"If they can actually do that and deliver the amount of drugs that they think they can, it could make a difference," says Mark Dewhirst, director of Duke University's Tumor Microcirculation Laboratory in Durham, N.C., "a big difference." Dewhirst, who has published more than 400 peer-reviewed articles, book chapters and reviews, is one of a number of interested observers.
A new standard of care
The project, "Neutrophil Delivery of Apoptosis-Inducing Anticancer Drugs," is one of 40 projects funded in the first round of an NSF initiative that addresses extremely complicated and pressing scientific problems. Called INSPIRE, the initiative funds potentially transformative research that does not fit neatly into any one, scientific field, but crosses disciplinary boundaries.
"New ideas oftentimes come when researchers from disciplines other than the traditional ones attack a frustrating problem as they see it from a novel perspective and have different methodologies they can put to use," says Van Meir. "Cancer has been the realm of oncological and biological disciplines for decades and we need others to join in our efforts to solve the problem."
"More than half of the patients with GBM will die within a year, and more than 90 percent within three years," says the Director of NSF's Biophotonics program Leon Esterowitz. "The results from this project will exploit patient-specific, tumor-homing cells for treatment delivery and could lead to a new standard of care for brain cancers."
NSF's Biomaterials program in its Directorate for Mathematical and Physical Sciences (MPS) funds the research. It is also co-funded by NSF's Biophotonics program along with its Materials Surface Engineering program, both in the Directorate for Engineering.
"The focus of this INSPIRE project is to develop basic scientific knowledge of the materials that are being studied," says Joseph Akkara, director of the Biomaterials program in MPS. "In a larger sense, biomedical applications are at present supported by the National Institutes of Health."
Uphill challenges
Bossmann and Troyer already have successfully synthesized PPCL prototypes and used 4T1 breast cancer--a well-known mouse model for metastasizing cancer--to prove that tumors are capable of attracting large numbers of defensive white blood cells.
Still, these preliminary results face uphill challenges.
Pathology examinations, for example, reveal that neutrophils are rarely seen in human brain cancers, even though the cancers produce signaling molecules that attract neutrophils. In fact, research has shown another type of defensive cell, the macrophage, plays a more prominent role than neutrophils in the growth of brain cancers.
"So, the challenge is to figure out how to enable neutrophil trafficking into glioblastoma," says Dewhirst. "Using the cells by themselves, without some local stimulus to attract them may not work."
Van Meir, who has authored more than 140 scientific publications on brain tumor biology and genetics, posits the findings from the researchers' preliminary breast cancer model may not be directly applicable to brain cancers as a result.
Bossmann and Troyer are aware of the issue, and now in the second year of the research grant, their team is developing protocols to attract neutrophils to brain tumors in mice.
Creating a condition that causes tumors to attract white blood cells is only one of the remaining obstacles, however. Determining the optimum size of the PPCLs for effective drug delivery; reducing impediments to the health of delivery cells during transport; determining what to expect from white blood cells loaded with medicines that can become toxic when they do not reach the tumor and designing protocols that stimulate, not deactivate, the patient's immune system during cell therapy are some of the remaining concerns.
Still, "I am confident that our research will reach our goals," says Bossmann.
If successful, the strategy could expand to targeting other cell types. The researchers believe the method's principles could evolve into targeted therapies for viral, bacterial and protozoal infections. However, they acknowledge there is still a ways to go to truly beat cancer.
"Early recognition of cancer is vital, because early cancer is much easier to treat, compared to late stage cancer," says Troyer. "In addition, preventing or treating metastases and eradicating cancer stem cell populations by combined chemotherapy and immunotherapy are important keys to survival."
"Brain tumors remain a disease for which there are many challenges because of the eloquence of the site where they are," says Henry Friedman, an internationally recognized neuro-oncologist and deputy director of Duke's Preston Robert Tisch Brain Tumor Center. "No one therapy is going to be the magic bullet, but the more different interventions we have, the more likely we're going to be successful."
This new treatment method "is not going to be the only intervention necessary, but it certainly is going to be part of the spectrum of different therapies that we use," he says. "It is going to be one of additional weapons that may find a place in the treatment of malignant brain tumors."
Radically modified cells may stunt brain tumor growth
Cell-based treatment could lead to a new standard of care for brain cancer patients
The American Brain Tumor Association says this year nearly 70,000 people in the United States will be diagnosed with tumors that form in blood vessels, cranial nerves, lymphatic tissue and other parts of the brain. Of those, nearly 12,000 people will be diagnosed with a particularly deadly form of brain cancer called glioblastoma multiforme (GBM).
GBMs hide behind a protective barrier in the brain and, among other things, attack white blood cells that serve as the body's defense. Now, with some innovative science, National Science Foundation (NSF)-funded researchers are working to improve the ability of those same white blood cells to attack the cancer right back.
Stefan Bossmann and Deryl Troyer at Kansas State University in Manhattan, Kan., are developing a new materials treatment method that uses a type of white blood cell called a neutrophil to slip medications past the brain's protective barrier and strike down malignant tumors directly.
More than 100 years ago, when blue dye was injected into the bloodstream of an animal, scientists discovered that tissues in the animal's whole body turned blue, except in its brain and spinal cord. They determined that a "blood-brain barrier" protects the brain from extraneous materials in the blood. It was later determined that the blood-brain barrier also protects tumors in the brain from being readily exposed to anticancer drugs.
"Defensive cells--essentially, white blood cells--have the ability of moving through [the blood-brain barrier] to tumors and metastases," explains Bossmann. "The goal of our research is to use cells as transport ships for anticancer drugs."
In principle, using cells to carry drugs to intended targets is a pretty straightforward concept. However, creating a "cargo hold" within the cells that is sturdy enough to successfully carry a medicinal payload past the blood-brain barrier to a desired endpoint has been a challenge.
Previous efforts have resulted in cargo holds that leak, burst prematurely or fuse with the cells that carry them, causing the drugs to be released before reaching the target and killing the transport cells, not the tumors.
For doctors treating patients with GBM, new treatment methods are sorely needed.
"Innovation in designing new therapeutic strategies is urgently needed to tackle GBM, one of the most lethal human tumors and the most aggressive adult brain tumor," says Erwin Van Meir, a brain tumor researcher and director of the Winship Cancer Institute's Cancer Cell Biology Program at Emory University in Atlanta, Ga.
"The challenge has been that tumors have developed strategies to avoid immune detection, or they render the immune cells [helpless] or even switch them to a state that helps tumor growth," he says. "Developing cell-based therapeutics in new ways is certainly exciting."
A new class of "cages"
To solve the problem of getting drugs past the blood-brain barrier and directly to tumors, Bossmann and Troyer are developing a new class of protease-activatable polymer-caged liposomes (PPCLs). Liposomes essentially are artificial bubbles created within cells that can be used as vessels to carry and administer therapeutic medicines.
The researchers are creating self-assembling "cages" that wrap around liposomes--turning them into more secure cargo-holds. Their process involves loading caged liposomes with anticancer medicine before up-take by neutrophils that will self-destruct and release the drugs when they reach tumors.
The PPCLs proposed by the researchers are designed to be more stable than classic liposomes, prevent systemic leaking during transport and activate only once they integrate into tumors. This should facilitate the killing of fast growing tumor cells and slow growing cancer stem cells responsible for the reappearance of tumors and the formation of metastases that spread tumors to other parts of the body.
The proposed cell therapy method would work by taking whole blood from cancer patients, then loading redesigned cargo holds within the whole blood's neutrophils with anticancer drugs and afterwards re-injecting the modified neutrophils into the patient's blood stream.
"The advantage of using defensive white blood cells is that they are patient-derived. This means that they are available in sufficient numbers for repetitive treatments," explains Troyer, an expert in veterinary medicine and preclinical models of cancer at Kansas State. "It also means there are absolutely no issues of rejection of the transport cell by the patient's immune system."
Chemo, nano, cell
Currently physicians use two basic methods to deliver anticancer drugs: traditional chemotherapy and nanotherapy.
Chemotherapy delivers drugs via the infusion of liquid medicines directly into a vein, typically through an IV bag or drip chamber. The process also may involve delivering drugs by an injection into a layer of skin or orally as pills and capsules. Unfortunately, the process comes with potentially harmful side effects, including toxicity that can compromise liver, kidney and immune function. Chemo also may cause secondary malignancies or cancerous growths.
Meanwhile, nanotherapy uses nano-sized drug particles, on the order of about a billionth of a meter, to enhance drug-dosage performance. Particles at this size move more easily through the blood-brain barrier and can saturate tumors at higher rates, providing faster therapeutic action. Still, they deliver only about 10 percent of a therapeutic dose of anticancer drugs--better than the 1-2 percent delivered by chemotherapy, but still inefficient.
"Neither classic chemotherapy nor conventional nanotherapy is capable of delivering more than a fraction of a prescribed dosage of anticancer drugs to tumors and metastases," says Bossmann, a professor of chemistry at Kansas State. "Consequently, other cells of the body are damaged, including stem cells in bone marrow that form immune cells, as well as stem cells in the digestive system. Cell therapy offers the opportunity to transport more than 50 percent of anticancer drugs to their target, while leaving the patient's immune system intact."
"If they can actually do that and deliver the amount of drugs that they think they can, it could make a difference," says Mark Dewhirst, director of Duke University's Tumor Microcirculation Laboratory in Durham, N.C., "a big difference." Dewhirst, who has published more than 400 peer-reviewed articles, book chapters and reviews, is one of a number of interested observers.
A new standard of care
The project, "Neutrophil Delivery of Apoptosis-Inducing Anticancer Drugs," is one of 40 projects funded in the first round of an NSF initiative that addresses extremely complicated and pressing scientific problems. Called INSPIRE, the initiative funds potentially transformative research that does not fit neatly into any one, scientific field, but crosses disciplinary boundaries.
"New ideas oftentimes come when researchers from disciplines other than the traditional ones attack a frustrating problem as they see it from a novel perspective and have different methodologies they can put to use," says Van Meir. "Cancer has been the realm of oncological and biological disciplines for decades and we need others to join in our efforts to solve the problem."
"More than half of the patients with GBM will die within a year, and more than 90 percent within three years," says the Director of NSF's Biophotonics program Leon Esterowitz. "The results from this project will exploit patient-specific, tumor-homing cells for treatment delivery and could lead to a new standard of care for brain cancers."
NSF's Biomaterials program in its Directorate for Mathematical and Physical Sciences (MPS) funds the research. It is also co-funded by NSF's Biophotonics program along with its Materials Surface Engineering program, both in the Directorate for Engineering.
"The focus of this INSPIRE project is to develop basic scientific knowledge of the materials that are being studied," says Joseph Akkara, director of the Biomaterials program in MPS. "In a larger sense, biomedical applications are at present supported by the National Institutes of Health."
Uphill challenges
Bossmann and Troyer already have successfully synthesized PPCL prototypes and used 4T1 breast cancer--a well-known mouse model for metastasizing cancer--to prove that tumors are capable of attracting large numbers of defensive white blood cells.
Still, these preliminary results face uphill challenges.
Pathology examinations, for example, reveal that neutrophils are rarely seen in human brain cancers, even though the cancers produce signaling molecules that attract neutrophils. In fact, research has shown another type of defensive cell, the macrophage, plays a more prominent role than neutrophils in the growth of brain cancers.
"So, the challenge is to figure out how to enable neutrophil trafficking into glioblastoma," says Dewhirst. "Using the cells by themselves, without some local stimulus to attract them may not work."
Van Meir, who has authored more than 140 scientific publications on brain tumor biology and genetics, posits the findings from the researchers' preliminary breast cancer model may not be directly applicable to brain cancers as a result.
Bossmann and Troyer are aware of the issue, and now in the second year of the research grant, their team is developing protocols to attract neutrophils to brain tumors in mice.
Creating a condition that causes tumors to attract white blood cells is only one of the remaining obstacles, however. Determining the optimum size of the PPCLs for effective drug delivery; reducing impediments to the health of delivery cells during transport; determining what to expect from white blood cells loaded with medicines that can become toxic when they do not reach the tumor and designing protocols that stimulate, not deactivate, the patient's immune system during cell therapy are some of the remaining concerns.
Still, "I am confident that our research will reach our goals," says Bossmann.
If successful, the strategy could expand to targeting other cell types. The researchers believe the method's principles could evolve into targeted therapies for viral, bacterial and protozoal infections. However, they acknowledge there is still a ways to go to truly beat cancer.
"Early recognition of cancer is vital, because early cancer is much easier to treat, compared to late stage cancer," says Troyer. "In addition, preventing or treating metastases and eradicating cancer stem cell populations by combined chemotherapy and immunotherapy are important keys to survival."
"Brain tumors remain a disease for which there are many challenges because of the eloquence of the site where they are," says Henry Friedman, an internationally recognized neuro-oncologist and deputy director of Duke's Preston Robert Tisch Brain Tumor Center. "No one therapy is going to be the magic bullet, but the more different interventions we have, the more likely we're going to be successful."
This new treatment method "is not going to be the only intervention necessary, but it certainly is going to be part of the spectrum of different therapies that we use," he says. "It is going to be one of additional weapons that may find a place in the treatment of malignant brain tumors."
Monday, February 3, 2014
JAPAN-BASED AUTOMOBILE PARTS COMPANY PLEADS GUILTY TO PRICE FIXING
FROM: JUSTICE DEPARTMENT
AISAN INDUSTRY CO. LTD. AGREES TO PLEAD GUILTY TO PRICE FIXING ON AUTOMOBILE PARTS INSTALLED IN U.S. CARS
Company Agrees to Pay $6.86 Million Criminal Fine
WASHINGTON — Aisan Industry Co. Ltd., an Obu, Japan-based company, has agreed to plead guilty and to pay a criminal fine of $6.86 million for its role in a price-fixing conspiracy involving electronic throttle bodies sold in the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Aisan engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of electronic throttle bodies sold to Nissan Motor Co. Ltd. and certain of its subsidiaries in the United States and elsewhere. In addition to the criminal fine, Aisan has also agreed to cooperate with the department’s ongoing auto parts investigations. The plea agreement is subject to court approval.
“The Antitrust Division will continue to hold companies accountable for anticompetitive conduct that impacts the automobile industry in the United States,” said Brent Snyder, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “To date, 25 companies have been charged as part of the Antitrust Division’s ongoing auto parts investigation.”
According to the charges, Aisan and its co-conspirators carried out the price-fixing conspiracy through meetings and conversations in which they discussed and agreed upon bids and price quotations for electronic throttle bodies. Aisan’s involvement in the conspiracy to fix prices of electronic throttle bodies lasted from at least as early as October 2003 until at least February 2010.
Aisan manufactures and sells automotive electronic throttle bodies, which are part of the air intake system in an engine that controls the amount of air flowing into an engine’s combustion chamber. By controlling air flow within an engine, the electronic throttle body controls engine speed.
Including Aisan, 25 corporations have pleaded guilty or agreed to plead guilty in the department’s investigation into price fixing and bid rigging in the auto parts industry. The companies have agreed to pay a total of more than $1.8 billion in fines. Additionally, 28 individuals have been charged.
Aisan is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the San Francisco Office of the Antitrust Division with assistance provided by the National Criminal Enforcement Section of the Antitrust Division, the Detroit Field Office of the FBI, and the FBI headquarters’ International Corruption Unit.
AISAN INDUSTRY CO. LTD. AGREES TO PLEAD GUILTY TO PRICE FIXING ON AUTOMOBILE PARTS INSTALLED IN U.S. CARS
Company Agrees to Pay $6.86 Million Criminal Fine
WASHINGTON — Aisan Industry Co. Ltd., an Obu, Japan-based company, has agreed to plead guilty and to pay a criminal fine of $6.86 million for its role in a price-fixing conspiracy involving electronic throttle bodies sold in the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Aisan engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of electronic throttle bodies sold to Nissan Motor Co. Ltd. and certain of its subsidiaries in the United States and elsewhere. In addition to the criminal fine, Aisan has also agreed to cooperate with the department’s ongoing auto parts investigations. The plea agreement is subject to court approval.
“The Antitrust Division will continue to hold companies accountable for anticompetitive conduct that impacts the automobile industry in the United States,” said Brent Snyder, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “To date, 25 companies have been charged as part of the Antitrust Division’s ongoing auto parts investigation.”
According to the charges, Aisan and its co-conspirators carried out the price-fixing conspiracy through meetings and conversations in which they discussed and agreed upon bids and price quotations for electronic throttle bodies. Aisan’s involvement in the conspiracy to fix prices of electronic throttle bodies lasted from at least as early as October 2003 until at least February 2010.
Aisan manufactures and sells automotive electronic throttle bodies, which are part of the air intake system in an engine that controls the amount of air flowing into an engine’s combustion chamber. By controlling air flow within an engine, the electronic throttle body controls engine speed.
Including Aisan, 25 corporations have pleaded guilty or agreed to plead guilty in the department’s investigation into price fixing and bid rigging in the auto parts industry. The companies have agreed to pay a total of more than $1.8 billion in fines. Additionally, 28 individuals have been charged.
Aisan is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the San Francisco Office of the Antitrust Division with assistance provided by the National Criminal Enforcement Section of the Antitrust Division, the Detroit Field Office of the FBI, and the FBI headquarters’ International Corruption Unit.
U.S. DEFENSE DEPARTMENT CONTRACTS FOR FEBRUARY 3, 2014
FROM: U.S. DEFENSE DEPARTMENT
CONTRACTS
NAVY
Armag Corp., Bardstown, Ky., is being awarded a $49,971,770 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for pre-engineered/pre-fabricated deployable standard steel armories, forward operating base armories, portable steel storage magazines, earth covered magazines, watertight magazines and associated optional features. These items serve as stand-alone high security storage facilities for conventional small arms, ammunition and explosives. It is anticipated that the arms, ammunition and explosives programs of various government activities will be supported through this contract. The contract also includes on-site installation support. Work will be performed in Bardstown, Ky., and is expected to be completed by January 2019. Fiscal 2014 operation and maintenance Army Reserve funding in the amount of $54,236 will be obligated at time of award, and will expire at the end of the current fiscal year. The Naval Surface Warfare Center, Crane, Ind., is the contracting activity (N00164-14-D-GQ35).
The Boeing Co., St. Louis, Mo., is being awarded a $42,179,054 modification to a previously awarded firm-fixed-price contract (N00019-09-C-0019) for the procurement of aircraft armament equipment for F/A-18E/F and EA-18G aircraft, including jumper bundles, pylons, and bomb racks. Work will be performed in Meza, Ariz. (71 percent) and St. Louis, Mo. (29 percent), and is expected to be completed in May 2018. Fiscal 2013 aircraft procurement, Navy funds in the amount of $42,179,054 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
DEFENSE LOGISTICS AGENCY
Sklar Instruments Corp.*, West Chester, Pa., has been awarded a maximum $41,426,795 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for various medical and surgical components including dental equipment and supplies. This contract is a competitive acquisition and four offers were received. Location of performance is Pennsylvania with a Feb. 2, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2015 warstopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.; (SPE2D0-14-D-0002).
Avfuel Corp.*, Ann Arbor, Mich., has been awarded a maximum $12,058,113 fixed-price with economic-price-adjustment contract for into-plane fuel. This contract is a competitive acquisition and two offers were received. Locations of performance are Michigan and Idaho with a March 31, 2018 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va.; (SP0600-14-D-0060).
O.E.S., Inc.,* Wainwright, Alaska, has been awarded a maximum $8,566,833 modification (P00032) exercising the third option year on a one-year base contract (SP3300-10-C-0037) with four one-year option periods for facility maintenance and repair for warehouse and distribution support services. This is a fixed-price, incentive-firm-target contract with cost-reimbursement and labor-hour line items. Locations of performance are Alaska and California with a Jan. 31, 2016 performance completion date. Using military service is federal civilian agency. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Distribution, New Cumberland, Pa.
ARMY
Cray Inc.*, Seattle, Wash., was awarded a $21,800,000 modification (P0001) to contract W912DY-13-G-0022 to acquire balanced, commercially available, production-grade high performance computing systems to conduct complex, large-scale scientific calculations at the U.S. Air Force Research Laboratory DoD Supercomputing Resource Center. Fiscal 2013 other procurement, Army funds in the amount of $21,800,000 were obligated at the time of the award. Estimated completion date is July 28, 2018. Work will be performed at Wright-Patterson, Air Force Base, Ohio. Army Corps of Engineers, Huntsville, Ala., is the contracting activity.
Cray Inc.*, Seattle, Wash. was awarded a $21,800,000 modification (P0002) to contract W912DY-13-G-0022 to acquire balanced, commercially available, production-grade high performance computing systems to conduct complex, large-scale scientific calculations at U.S. Navy DoD Supercomputing Resource Center John C. Stennis Space Center in Mississippi. Fiscal 2013 other procurement, Army funds in the amount of $21,800,000 were obligated at the time of the award. Estimated completion date is July 28, 2018. Work will be performed at the Stennis Space Center, Miss.. Army Corps of Engineers, Huntsville, Ala., is the contracting activity.
AIR FORCE
Lockheed Martin Corp., Newtown, Pa., has been awarded a $14,430,612 fixed-price-incentive-firm modification (P00006) for an existing contract (FA8807-13-C-0002) for GPS III long lead material for space vehicles 07 and 08. The contract modification provides for the acquisition of long lead material under the basic contract. Work will be performed predominantly in Clifton, N.J., and is expected to be completed by June 2015. Fiscal 2013 missile procurement funds in the amount of $14,430,612 are being obligated at time of award. The Space and Missile Systems Center Global Positioning Systems Directorate, Los Angeles Air Force Base, Calif., is the contracting activity.
*Small Business
**Small, Disadvantaged, In HubZone Business
CONTRACTS
NAVY
Armag Corp., Bardstown, Ky., is being awarded a $49,971,770 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for pre-engineered/pre-fabricated deployable standard steel armories, forward operating base armories, portable steel storage magazines, earth covered magazines, watertight magazines and associated optional features. These items serve as stand-alone high security storage facilities for conventional small arms, ammunition and explosives. It is anticipated that the arms, ammunition and explosives programs of various government activities will be supported through this contract. The contract also includes on-site installation support. Work will be performed in Bardstown, Ky., and is expected to be completed by January 2019. Fiscal 2014 operation and maintenance Army Reserve funding in the amount of $54,236 will be obligated at time of award, and will expire at the end of the current fiscal year. The Naval Surface Warfare Center, Crane, Ind., is the contracting activity (N00164-14-D-GQ35).
The Boeing Co., St. Louis, Mo., is being awarded a $42,179,054 modification to a previously awarded firm-fixed-price contract (N00019-09-C-0019) for the procurement of aircraft armament equipment for F/A-18E/F and EA-18G aircraft, including jumper bundles, pylons, and bomb racks. Work will be performed in Meza, Ariz. (71 percent) and St. Louis, Mo. (29 percent), and is expected to be completed in May 2018. Fiscal 2013 aircraft procurement, Navy funds in the amount of $42,179,054 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
DEFENSE LOGISTICS AGENCY
Sklar Instruments Corp.*, West Chester, Pa., has been awarded a maximum $41,426,795 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for various medical and surgical components including dental equipment and supplies. This contract is a competitive acquisition and four offers were received. Location of performance is Pennsylvania with a Feb. 2, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2015 warstopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.; (SPE2D0-14-D-0002).
Avfuel Corp.*, Ann Arbor, Mich., has been awarded a maximum $12,058,113 fixed-price with economic-price-adjustment contract for into-plane fuel. This contract is a competitive acquisition and two offers were received. Locations of performance are Michigan and Idaho with a March 31, 2018 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va.; (SP0600-14-D-0060).
O.E.S., Inc.,* Wainwright, Alaska, has been awarded a maximum $8,566,833 modification (P00032) exercising the third option year on a one-year base contract (SP3300-10-C-0037) with four one-year option periods for facility maintenance and repair for warehouse and distribution support services. This is a fixed-price, incentive-firm-target contract with cost-reimbursement and labor-hour line items. Locations of performance are Alaska and California with a Jan. 31, 2016 performance completion date. Using military service is federal civilian agency. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Distribution, New Cumberland, Pa.
ARMY
Cray Inc.*, Seattle, Wash., was awarded a $21,800,000 modification (P0001) to contract W912DY-13-G-0022 to acquire balanced, commercially available, production-grade high performance computing systems to conduct complex, large-scale scientific calculations at the U.S. Air Force Research Laboratory DoD Supercomputing Resource Center. Fiscal 2013 other procurement, Army funds in the amount of $21,800,000 were obligated at the time of the award. Estimated completion date is July 28, 2018. Work will be performed at Wright-Patterson, Air Force Base, Ohio. Army Corps of Engineers, Huntsville, Ala., is the contracting activity.
Cray Inc.*, Seattle, Wash. was awarded a $21,800,000 modification (P0002) to contract W912DY-13-G-0022 to acquire balanced, commercially available, production-grade high performance computing systems to conduct complex, large-scale scientific calculations at U.S. Navy DoD Supercomputing Resource Center John C. Stennis Space Center in Mississippi. Fiscal 2013 other procurement, Army funds in the amount of $21,800,000 were obligated at the time of the award. Estimated completion date is July 28, 2018. Work will be performed at the Stennis Space Center, Miss.. Army Corps of Engineers, Huntsville, Ala., is the contracting activity.
AIR FORCE
Lockheed Martin Corp., Newtown, Pa., has been awarded a $14,430,612 fixed-price-incentive-firm modification (P00006) for an existing contract (FA8807-13-C-0002) for GPS III long lead material for space vehicles 07 and 08. The contract modification provides for the acquisition of long lead material under the basic contract. Work will be performed predominantly in Clifton, N.J., and is expected to be completed by June 2015. Fiscal 2013 missile procurement funds in the amount of $14,430,612 are being obligated at time of award. The Space and Missile Systems Center Global Positioning Systems Directorate, Los Angeles Air Force Base, Calif., is the contracting activity.
*Small Business
**Small, Disadvantaged, In HubZone Business
GULF AF ADEN COUNTERTERRORISM FORUM OPENING REMARKS
FROM: STATE DEPARTMENT
Opening Remarks at the Second Gulf of Aden Counterterrorism Forum
Media Note
Geeta Pasi
U.S. Ambassador to Djibouti
Djibouti, Djibouti
February 3, 2014
Good morning. Welcome to the Second Gulf of Aden Regional Counterterrorism Forum. I am honored to join Djibouti in welcoming you. I would like to acknowledge the strong and growing partnership that we enjoy with the Government of Djibouti in countering terrorism in the region and beyond. Our strategic partnership continues to contribute to a region and a world with a brighter and better future.
The Gulf of Aden region is a critical front in the fight against terrorism. Many of you seated here today play a vital role in advancing this effort – whether within your Ministries of Justice, Foreign Affairs, Interior, Defense, or other services. Your hard work, and that of your governments, help all of us make progress towards our shared goals of regional peace and stability. Our conference this week provides us the opportunity to reflect on our successes, identify challenges, and determine ways forward.
The U.S. government is committed to the fight against both al Qa’ida in the Arabian Peninsula and al-Shabaab.
In Somalia, U.S. security assistance is focused on two key efforts: first, support for peacekeeping operations, including the provision of training, equipment, and transportation to the troop contributors to AMISOM, and second, support to security sector reform activities and related mentoring, training, equipment, and logistical support for the Somali National Forces. Working together with international partners and the Somali National Security Forces, the U.S. government has a vision to see Somalia’s security sector capacity increase, through the training, equipping, and professionalization of its security institutions, to one day effectively address, on its own, the threats posed by al-Shabaab.
In Yemen, we are working to build local capacity to counter the terrorist threat as well. But first, let me take a moment to commend the people of Yemen on the conclusion of their National Dialogue on January 25, a critical milestone in the political transition process. A democratic, unified, and stable Yemen will be best able to meet the needs of its citizens and participate fully as a partner in supporting regional security. The United States remains firmly committed to supporting the Yemeni people and the government throughout the subsequent stages of the transition process.
As part of the political transition process, President Hadi and the Yemeni government have taken important steps toward restructuring the military and security services and toward enhancing the professionalism and capacity of Yemen’s armed forces. We encourage the Yemeni government to continue progress on this important aspect of the transition agreement, which will strengthen Yemeni capacity to secure the country against internal and external threats. The United States provides assistance to help develop the capacity of Yemen’s security forces to conduct counterterrorism operations and to secure maritime and land borders and territorial waters.
We are encouraged by the counterterrorism efforts President Hadi and the Yemeni government have taken, and remain committed to continued close coordination in the fight against terrorism.
I would like to share with you why the United States wanted to organize this second forum in Djibouti. Djibouti plays a critical security and counterterrorism role in the region and beyond -- as an active participant in regional bodies such as the Intergovernmental Authority on Development (IGAD), and as a troop-contributing country to the African Union Mission in Somalia (AMISOM) and in other international fora.
Djiboutian troops have played a crucial role in stabilizing Somalia…and some of their soldiers have made the ultimate sacrifice in that effort. The combined efforts of the Somali National Security Forces and AMISOM against al-Shabaab – with financial support, training, and other support from partner nations have been key to the creation of the security conditions necessary for Somalia’s government to operate. Al-Shabaab has attacked Djiboutian forces in Beletweyne and threated to attack all troop contributing countries at home. We applaud Djibouti’s commitment to Somalia by announcing the deployment of a second battalion.
Djibouti hosts Camp Lemonnier, the largest U.S. military facility in Africa, which provides an operational headquarters for the Combined Joint Task Force for the Horn of Africa – whose mission includes supporting efforts to defeat violent extremist organizations. The United States would like to thank Djibouti for their contributions to AMISOM, as well as their continued commitment to hosting U.S. troops stationed at Camp Lemonnier.
The United States enjoys a strong partnership with Djibouti. I would like to take a moment to provide a few examples of how the United States partners with Djibouti to counter terrorism in the region.
Funds from the U.S. Regional Strategic Initiative (RSI) funded patrol boats and training for the Djiboutian Coast Guard. December marked the third anniversary of the establishment of Djibouti’s Coast Guard – we congratulate them on the progress they have made in such a short time – particularly in interdicting small boats used to smuggle illegal goods and people.
With funding from the U.S. interagency Partnership for Regional East Africa Counterterrorism program – or “PREACT”—the United States has trained the Djiboutian Navy, the Republican Guard, and Border Security Forces.
U.S. Department of Defense programs such as the Counterterrorism Fellowship Program (CTFP) fund courses that range from short-term professional training seminars to full-time programs in the United States.
Programs are designed to strengthen the capabilities of friendly countries to fight terrorism, as well as construct and strengthen the dedicated global network of counterterrorism experts and professionals.
In looking at the terrorist threat beyond the Gulf of Aden over the past decade, the United States and our partners can count many accomplishments, including remarkable success in weakening al-Qa’ida’s core leadership in Afghanistan and Pakistan. Yet the nature of the threat has evolved. Today’s terrorist organizations are more diverse, more independent, and more inclined to focus on smaller-scale attacks closer to their home base. A great deal of work remains to be done.
Continuing our counterterrorism efforts demands creativity, flexibility, and—above all – partnership. Building, strengthening, and leveraging partnerships is vital to our counterterrorism efforts. This is one of the reasons why we are so pleased to be able to convene the Second Gulf of Aden Regional Counterterrorism Forum here in Djibouti. Our goal for the week is for you to share experiences and to develop new ideas with your colleagues from the region that will help all of us counter the constantly evolving threats we face each day. We look forward to your participation in the coming days. Thank you very much.
Opening Remarks at the Second Gulf of Aden Counterterrorism Forum
Media Note
Geeta Pasi
U.S. Ambassador to Djibouti
Djibouti, Djibouti
February 3, 2014
Good morning. Welcome to the Second Gulf of Aden Regional Counterterrorism Forum. I am honored to join Djibouti in welcoming you. I would like to acknowledge the strong and growing partnership that we enjoy with the Government of Djibouti in countering terrorism in the region and beyond. Our strategic partnership continues to contribute to a region and a world with a brighter and better future.
The Gulf of Aden region is a critical front in the fight against terrorism. Many of you seated here today play a vital role in advancing this effort – whether within your Ministries of Justice, Foreign Affairs, Interior, Defense, or other services. Your hard work, and that of your governments, help all of us make progress towards our shared goals of regional peace and stability. Our conference this week provides us the opportunity to reflect on our successes, identify challenges, and determine ways forward.
The U.S. government is committed to the fight against both al Qa’ida in the Arabian Peninsula and al-Shabaab.
In Somalia, U.S. security assistance is focused on two key efforts: first, support for peacekeeping operations, including the provision of training, equipment, and transportation to the troop contributors to AMISOM, and second, support to security sector reform activities and related mentoring, training, equipment, and logistical support for the Somali National Forces. Working together with international partners and the Somali National Security Forces, the U.S. government has a vision to see Somalia’s security sector capacity increase, through the training, equipping, and professionalization of its security institutions, to one day effectively address, on its own, the threats posed by al-Shabaab.
In Yemen, we are working to build local capacity to counter the terrorist threat as well. But first, let me take a moment to commend the people of Yemen on the conclusion of their National Dialogue on January 25, a critical milestone in the political transition process. A democratic, unified, and stable Yemen will be best able to meet the needs of its citizens and participate fully as a partner in supporting regional security. The United States remains firmly committed to supporting the Yemeni people and the government throughout the subsequent stages of the transition process.
As part of the political transition process, President Hadi and the Yemeni government have taken important steps toward restructuring the military and security services and toward enhancing the professionalism and capacity of Yemen’s armed forces. We encourage the Yemeni government to continue progress on this important aspect of the transition agreement, which will strengthen Yemeni capacity to secure the country against internal and external threats. The United States provides assistance to help develop the capacity of Yemen’s security forces to conduct counterterrorism operations and to secure maritime and land borders and territorial waters.
We are encouraged by the counterterrorism efforts President Hadi and the Yemeni government have taken, and remain committed to continued close coordination in the fight against terrorism.
I would like to share with you why the United States wanted to organize this second forum in Djibouti. Djibouti plays a critical security and counterterrorism role in the region and beyond -- as an active participant in regional bodies such as the Intergovernmental Authority on Development (IGAD), and as a troop-contributing country to the African Union Mission in Somalia (AMISOM) and in other international fora.
Djiboutian troops have played a crucial role in stabilizing Somalia…and some of their soldiers have made the ultimate sacrifice in that effort. The combined efforts of the Somali National Security Forces and AMISOM against al-Shabaab – with financial support, training, and other support from partner nations have been key to the creation of the security conditions necessary for Somalia’s government to operate. Al-Shabaab has attacked Djiboutian forces in Beletweyne and threated to attack all troop contributing countries at home. We applaud Djibouti’s commitment to Somalia by announcing the deployment of a second battalion.
Djibouti hosts Camp Lemonnier, the largest U.S. military facility in Africa, which provides an operational headquarters for the Combined Joint Task Force for the Horn of Africa – whose mission includes supporting efforts to defeat violent extremist organizations. The United States would like to thank Djibouti for their contributions to AMISOM, as well as their continued commitment to hosting U.S. troops stationed at Camp Lemonnier.
The United States enjoys a strong partnership with Djibouti. I would like to take a moment to provide a few examples of how the United States partners with Djibouti to counter terrorism in the region.
Funds from the U.S. Regional Strategic Initiative (RSI) funded patrol boats and training for the Djiboutian Coast Guard. December marked the third anniversary of the establishment of Djibouti’s Coast Guard – we congratulate them on the progress they have made in such a short time – particularly in interdicting small boats used to smuggle illegal goods and people.
With funding from the U.S. interagency Partnership for Regional East Africa Counterterrorism program – or “PREACT”—the United States has trained the Djiboutian Navy, the Republican Guard, and Border Security Forces.
U.S. Department of Defense programs such as the Counterterrorism Fellowship Program (CTFP) fund courses that range from short-term professional training seminars to full-time programs in the United States.
Programs are designed to strengthen the capabilities of friendly countries to fight terrorism, as well as construct and strengthen the dedicated global network of counterterrorism experts and professionals.
In looking at the terrorist threat beyond the Gulf of Aden over the past decade, the United States and our partners can count many accomplishments, including remarkable success in weakening al-Qa’ida’s core leadership in Afghanistan and Pakistan. Yet the nature of the threat has evolved. Today’s terrorist organizations are more diverse, more independent, and more inclined to focus on smaller-scale attacks closer to their home base. A great deal of work remains to be done.
Continuing our counterterrorism efforts demands creativity, flexibility, and—above all – partnership. Building, strengthening, and leveraging partnerships is vital to our counterterrorism efforts. This is one of the reasons why we are so pleased to be able to convene the Second Gulf of Aden Regional Counterterrorism Forum here in Djibouti. Our goal for the week is for you to share experiences and to develop new ideas with your colleagues from the region that will help all of us counter the constantly evolving threats we face each day. We look forward to your participation in the coming days. Thank you very much.
NASA'S DAY OF REMEMBERANCE
NASA Administrator Charles Bolden participates in a wreath laying ceremony as part of NASA's Day of Remembrance, Friday, Jan. 31, 2014, at Arlington National Cemetery. The wreaths were laid in memory of those men and women who lost their lives in the quest for space exploration. President's Message Administrator's Message Image Credit: NASA/Bill Ingalls
COMPANY SETTLES FTC CHARGES OF INADEQUATE DATA HANDLING
FROM: FEDERAL TRADE COMMISSION
Medical Transcript Services Settles FTC Charges That It Failed to Adequately Protect Consumers’ Personal Information
Settlement with GMR Transcription Marks the 50th Data Security Case Settled by the Agency
A company that provides medical transcription services has agreed to settle Federal Trade Commission charges that its inadequate data security measures unfairly exposed the personal information of thousands of consumers on the open Internet, in some instances including consumers’ medical histories and examination notes.
In its complaint against California-based GMR Transcription Services, Inc. and the company’s two principal owners, the FTC alleges that GMR hired contractors to transcribe audio files received from the company’s customers. The contractors downloaded the files from the company’s network, transcribed them, and then uploaded transcripts back to the network. GMR then made the transcripts available to customers either directly or by e-mail.
Because of inadequate security, the complaint alleges, medical transcript files prepared between March 2011 and October 2011 by Fedtrans, GMR’s service provider, were indexed by a major internet search engine and were publicly available to anyone using the search engine. Some of the files contained notes from medical examinations of children and other highly sensitive medical information, such as information about psychiatric disorders, alcohol use, drug abuse, and pregnancy loss.
The FTC’s consent order with GMR marks the 50th data security case the Commission has settled since undertaking its data security program 12 years ago. The Commission issued a statement today reaffirming the basic principles behind the FTC’s data security enforcement program.
“What started in 2002 with a single case applying established FTC Act precedent to the area of data security has grown into a vital enforcement program that has helped to increase protections for consumers and has encouraged companies to make safeguarding consumer data a priority,” the Commission statement says.
In the case of GMR, the files handled by the company included sensitive information about consumers, including their driver’s license numbers, tax information, medical histories, notes from children’s medical examinations, medications and psychiatric notes, according to the FTC’s complaint.
According to the complaint, GMR’s privacy statements and policies promised that “materials going through our system are highly secure and are never divulged to anyone.” However, the company never required the individual typists it hired as contractors to implement security measures, such as installing anti-virus software. In addition, an independent service provider GMR hired to transcribe medical files stored and transmitted the files in clear and readable text on a server that was configured so that they could be accessed online by anyone without authentication.
Under the terms of GMR’s settlement with the FTC, GMR and its owners are prohibited from misrepresenting the extent to which they maintain the privacy and security of consumers’ personal information. They also must establish a comprehensive information security program that will protect consumers’ sensitive personal information, including information the company provided to independent service providers. In addition, the company must have the program evaluated both initially and every two years by a certified third party. The settlement will be in force for the next 20 years.
The Commission vote to accept the consent agreement package containing the proposed consent order for public comment was 4-0. The FTC will publish a description of the consent agreement package in the Federal Register shortly. The agreement will be subject to public comment for 30 days, beginning today and continuing through March 3, 2014, after which the Commission will decide whether to make the proposed consent order final. Interested parties can submit written comments electronically or in paper form by following the instructions in the “Invitation To Comment” part of the “Supplementary Information” section. Comments in electronic form should be submitted online and following the instructions on the web-based form. Comments in paper form should be mailed or delivered to: Federal Trade Commission, Office of the Secretary, Room H-113 (Annex D), 600 Pennsylvania Avenue, N.W., Washington, DC 20580. The FTC requests that any comment filed in paper form near the end of the public comment period be sent by courier or overnight service, if possible, because U.S. postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions.
NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
Medical Transcript Services Settles FTC Charges That It Failed to Adequately Protect Consumers’ Personal Information
Settlement with GMR Transcription Marks the 50th Data Security Case Settled by the Agency
A company that provides medical transcription services has agreed to settle Federal Trade Commission charges that its inadequate data security measures unfairly exposed the personal information of thousands of consumers on the open Internet, in some instances including consumers’ medical histories and examination notes.
In its complaint against California-based GMR Transcription Services, Inc. and the company’s two principal owners, the FTC alleges that GMR hired contractors to transcribe audio files received from the company’s customers. The contractors downloaded the files from the company’s network, transcribed them, and then uploaded transcripts back to the network. GMR then made the transcripts available to customers either directly or by e-mail.
Because of inadequate security, the complaint alleges, medical transcript files prepared between March 2011 and October 2011 by Fedtrans, GMR’s service provider, were indexed by a major internet search engine and were publicly available to anyone using the search engine. Some of the files contained notes from medical examinations of children and other highly sensitive medical information, such as information about psychiatric disorders, alcohol use, drug abuse, and pregnancy loss.
The FTC’s consent order with GMR marks the 50th data security case the Commission has settled since undertaking its data security program 12 years ago. The Commission issued a statement today reaffirming the basic principles behind the FTC’s data security enforcement program.
“What started in 2002 with a single case applying established FTC Act precedent to the area of data security has grown into a vital enforcement program that has helped to increase protections for consumers and has encouraged companies to make safeguarding consumer data a priority,” the Commission statement says.
In the case of GMR, the files handled by the company included sensitive information about consumers, including their driver’s license numbers, tax information, medical histories, notes from children’s medical examinations, medications and psychiatric notes, according to the FTC’s complaint.
According to the complaint, GMR’s privacy statements and policies promised that “materials going through our system are highly secure and are never divulged to anyone.” However, the company never required the individual typists it hired as contractors to implement security measures, such as installing anti-virus software. In addition, an independent service provider GMR hired to transcribe medical files stored and transmitted the files in clear and readable text on a server that was configured so that they could be accessed online by anyone without authentication.
Under the terms of GMR’s settlement with the FTC, GMR and its owners are prohibited from misrepresenting the extent to which they maintain the privacy and security of consumers’ personal information. They also must establish a comprehensive information security program that will protect consumers’ sensitive personal information, including information the company provided to independent service providers. In addition, the company must have the program evaluated both initially and every two years by a certified third party. The settlement will be in force for the next 20 years.
The Commission vote to accept the consent agreement package containing the proposed consent order for public comment was 4-0. The FTC will publish a description of the consent agreement package in the Federal Register shortly. The agreement will be subject to public comment for 30 days, beginning today and continuing through March 3, 2014, after which the Commission will decide whether to make the proposed consent order final. Interested parties can submit written comments electronically or in paper form by following the instructions in the “Invitation To Comment” part of the “Supplementary Information” section. Comments in electronic form should be submitted online and following the instructions on the web-based form. Comments in paper form should be mailed or delivered to: Federal Trade Commission, Office of the Secretary, Room H-113 (Annex D), 600 Pennsylvania Avenue, N.W., Washington, DC 20580. The FTC requests that any comment filed in paper form near the end of the public comment period be sent by courier or overnight service, if possible, because U.S. postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions.
NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
ROXBURY CORRECTIONAL SERGEANT CONVICTED OF OBSTRUCTING JUSTICE
FROM: JUSTICE DEPARTMENT
Friday, January 31, 2014
Roxbury Correctional Institution Sergeant Convicted of Obstructing Justice
The Justice Department, the U.S. Attorney’s Office for the District of Maryland and the FBI announced that Josh Hummer, a sergeant at the Roxbury Correctional Institution (RCI) in Hagerstown, Md., was convicted today by a federal jury of obstructing justice during the investigation of an assault against an inmate.
Hummer faces a statutory maximum of 20 years when he is sentenced by U.S. District Judge James K. Bredar. The assault against the inmate occurred on March 9, 2008.
In related cases, Judge Bredar has accepted guilty pleas from former RCI officers Ryan Lohr, Dustin Norris, Tyson Hinckle, Reginald Martin, Michael Morgan, Edwin Stigile, Lanny Harris, Philip Mayo, Jeremy McCusker, Walter Steele, Keith Morris and Robert Harvey. Two former RCI officers previously pleaded guilty in state court.
Two current or former RCI officers still face federal charges in connection with this incident. The officers, who are presumed innocent until proven guilty, will stand trial in February.
The investigation by the Fredrick Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorneys Christine Siscaretti and Sanjay Patel for the Civil Rights Division.
Friday, January 31, 2014
Roxbury Correctional Institution Sergeant Convicted of Obstructing Justice
The Justice Department, the U.S. Attorney’s Office for the District of Maryland and the FBI announced that Josh Hummer, a sergeant at the Roxbury Correctional Institution (RCI) in Hagerstown, Md., was convicted today by a federal jury of obstructing justice during the investigation of an assault against an inmate.
Hummer faces a statutory maximum of 20 years when he is sentenced by U.S. District Judge James K. Bredar. The assault against the inmate occurred on March 9, 2008.
In related cases, Judge Bredar has accepted guilty pleas from former RCI officers Ryan Lohr, Dustin Norris, Tyson Hinckle, Reginald Martin, Michael Morgan, Edwin Stigile, Lanny Harris, Philip Mayo, Jeremy McCusker, Walter Steele, Keith Morris and Robert Harvey. Two former RCI officers previously pleaded guilty in state court.
Two current or former RCI officers still face federal charges in connection with this incident. The officers, who are presumed innocent until proven guilty, will stand trial in February.
The investigation by the Fredrick Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorneys Christine Siscaretti and Sanjay Patel for the Civil Rights Division.
NSF LOOKS FOR INTEGRATED COMPUTER MODELING SYSTEM
FROM: NATIONAL SCIENCE FOUNDATION
An integrated computer modeling system for water resource management
Water resource management involves numerous and often distinct areas, such as hydrology, engineering, economics, public policy, chemistry, ecology and agriculture, among others. It is a multi-disciplinary field, each with its own set of challenges and, in turn, its own set of computer models.
Jonathan Goodall's mission is "to take all these models from different groups and somehow glue them together," he says.
The National Science Foundation (NSF)-funded scientist and associate professor of civil and environmental engineering at the University of Virginia, is working to design an integrated computer modeling system that will seamlessly connect all the different models, enabling everyone involved in the water resources field to see the big picture.
"We are trying to computationally design models as components within a larger modeling framework so that we can integrate them," he says. "We want to be able to look at connections across the systems. For example, if you grow corn for ethanol for fuel, there are economic, water quality and agricultural aspects. How do you look at the issues and problems holistically? How do you look at all the components of the system and their interactions? We need to have this perspective if we want to understand all the consequences that happen to water, so we can manage it properly."
In doing so, "it will make the models we use to address water resources challenges more accurate and more robust," he says. "There are a lot of current water challenges that require sophisticated computational models."
He lists, among others, the Chesapeake Bay and the Gulf of Mexico, where fertilizer runoff has created dead zones; Southern California, which faces water shortages resulting from an over allocation of the Colorado River, and depleted groundwater resources; and floods along rivers in the Midwest, which prompted difficult decisions about releasing water through levies, and flooding lands, to avoid significant downstream flooding of cities, such as New Orleans.
"Models are used by water resource engineers every day to make predictions, such as when will a river crest following a heavy rain storm, or how long until a city's water supply runs dry during a period of drought," he adds. "One of the problems with our current models is that they often consider only isolated parts of the water cycle. Our work argues that when you look at all the pieces together, you will come up with a more comprehensive picture that will result in more accurate predictions."
His work was motivated and builds off an initiative funded by the European Union called Open Modeling Interface, known as OpenMI, originally conceived to facilitate the simulation of interacting processes, particularly environmental ones, by enabling independent computer models to exchange data as they ran.
Later, it became a generic solution to the problem of data exchange among any models, not just environmental, and soon after, not just models but software components, thereby connecting any combination of models, databases and analytical and visualization tools.
"We are trying to advance the software that bridges all the models," Goodall says. "One of the ways we are trying to strengthen the software is by trying to understand which kinds of problems it can handle."
For example, one challenge with bridging models of different systems is that one system might be more dynamic than another. In water resources, water movement in the atmosphere is more dynamic than water movement in deep aquifers.
"When the models are bridged, you need to allow for the flexibility that allows for these differences, otherwise you may run into significant computationally efficiencies," Goodall says.
"Also, you can quickly get into semantics problems, where different models have different vocabularies in their internal systems," he adds. "You may need to have a variable passed between two different models, but each model might have its own semantics for naming the variable. Computers do not handle this well without very specific runs, such as unified, controlled vocabulary, or clear rules for how to translate terminology between the two models."
These semantic differences can be complex, since variables in models may have slight differences in units or dimensions that, if not properly handled, can cause major problems when linking the models together, he says.
While this work applies generally across water resource modeling challenges, Goodall and his team are applying the work specifically to the challenge of modeling water and nutrient transport within watersheds. They are using the Neuse River Basin in North Carolina as a case study, running widely used models alongside their new modeling framework system in order to test and verify whether the new system reaches the same answers as well-tested models.
"The modeling framework system will then be used to go beyond the capabilities of current models by including new disciplines into the watershed modeling process, and then eventually allowing specialized groups to advance components of the overall modeling system," he says.
Goodall is conducting his research under an NSF Faculty Early Career Development (CAREER) award, which he received in 2009 as part of NSF's American Recovery and Reinvestment Act. 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 $408,042 over five years.
Goodall is using the educational component of the grant to plan courses, as well as a workshop for graduate students across different water-related disciplines who "will come up with a water problem that is cross-disciplinary, and then construct a model using the new modeling system that can really test our approach," he says. "We will be talking about the integration we have to do so we can have an integrated system where each person contributes his or her own component."
In 2013, Goodall volunteered as a mentor at a local middle school, where he guided students through design a city of the future and "specifically think about how that city would handle its storm water," he says. "We discussed the general problems cause by storm water," which is runoff caused by heavy rain storms, "falling on impervious surfaces such as roads, roofs and parking lots.
"Because this rain does not infiltrate into the soil, it can cause problems such as flooding or erosion of river beds," he adds. "We talked about the ways engineers handle storm water so that it does not cause these problems, as well as how the philosophy for handling storm water runoff has changed over the years."
While many urban storm water systems were designed in the past simply to remove rain water from a city as quickly as possible--for example, by using large concrete channels--the focus has changed in recent years. Many cities now employ new practices, such as using pervious surfaces for roads or lots, or capturing rainfall in ponds or rain gardens distributed across the city, allowing water to slowly infiltrate into the soil.
"Storm water is something that most people spend very little time thinking about and these students were no different," he says. "But as they began to think about the problem and the challenge of not only solving the problem, but doing it in a sustainable way, they were hooked. You could see their minds go as they tried to come up with solutions to the problem, and that was fun."
An integrated computer modeling system for water resource management
Water resource management involves numerous and often distinct areas, such as hydrology, engineering, economics, public policy, chemistry, ecology and agriculture, among others. It is a multi-disciplinary field, each with its own set of challenges and, in turn, its own set of computer models.
Jonathan Goodall's mission is "to take all these models from different groups and somehow glue them together," he says.
The National Science Foundation (NSF)-funded scientist and associate professor of civil and environmental engineering at the University of Virginia, is working to design an integrated computer modeling system that will seamlessly connect all the different models, enabling everyone involved in the water resources field to see the big picture.
"We are trying to computationally design models as components within a larger modeling framework so that we can integrate them," he says. "We want to be able to look at connections across the systems. For example, if you grow corn for ethanol for fuel, there are economic, water quality and agricultural aspects. How do you look at the issues and problems holistically? How do you look at all the components of the system and their interactions? We need to have this perspective if we want to understand all the consequences that happen to water, so we can manage it properly."
In doing so, "it will make the models we use to address water resources challenges more accurate and more robust," he says. "There are a lot of current water challenges that require sophisticated computational models."
He lists, among others, the Chesapeake Bay and the Gulf of Mexico, where fertilizer runoff has created dead zones; Southern California, which faces water shortages resulting from an over allocation of the Colorado River, and depleted groundwater resources; and floods along rivers in the Midwest, which prompted difficult decisions about releasing water through levies, and flooding lands, to avoid significant downstream flooding of cities, such as New Orleans.
"Models are used by water resource engineers every day to make predictions, such as when will a river crest following a heavy rain storm, or how long until a city's water supply runs dry during a period of drought," he adds. "One of the problems with our current models is that they often consider only isolated parts of the water cycle. Our work argues that when you look at all the pieces together, you will come up with a more comprehensive picture that will result in more accurate predictions."
His work was motivated and builds off an initiative funded by the European Union called Open Modeling Interface, known as OpenMI, originally conceived to facilitate the simulation of interacting processes, particularly environmental ones, by enabling independent computer models to exchange data as they ran.
Later, it became a generic solution to the problem of data exchange among any models, not just environmental, and soon after, not just models but software components, thereby connecting any combination of models, databases and analytical and visualization tools.
"We are trying to advance the software that bridges all the models," Goodall says. "One of the ways we are trying to strengthen the software is by trying to understand which kinds of problems it can handle."
For example, one challenge with bridging models of different systems is that one system might be more dynamic than another. In water resources, water movement in the atmosphere is more dynamic than water movement in deep aquifers.
"When the models are bridged, you need to allow for the flexibility that allows for these differences, otherwise you may run into significant computationally efficiencies," Goodall says.
"Also, you can quickly get into semantics problems, where different models have different vocabularies in their internal systems," he adds. "You may need to have a variable passed between two different models, but each model might have its own semantics for naming the variable. Computers do not handle this well without very specific runs, such as unified, controlled vocabulary, or clear rules for how to translate terminology between the two models."
These semantic differences can be complex, since variables in models may have slight differences in units or dimensions that, if not properly handled, can cause major problems when linking the models together, he says.
While this work applies generally across water resource modeling challenges, Goodall and his team are applying the work specifically to the challenge of modeling water and nutrient transport within watersheds. They are using the Neuse River Basin in North Carolina as a case study, running widely used models alongside their new modeling framework system in order to test and verify whether the new system reaches the same answers as well-tested models.
"The modeling framework system will then be used to go beyond the capabilities of current models by including new disciplines into the watershed modeling process, and then eventually allowing specialized groups to advance components of the overall modeling system," he says.
Goodall is conducting his research under an NSF Faculty Early Career Development (CAREER) award, which he received in 2009 as part of NSF's American Recovery and Reinvestment Act. 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 $408,042 over five years.
Goodall is using the educational component of the grant to plan courses, as well as a workshop for graduate students across different water-related disciplines who "will come up with a water problem that is cross-disciplinary, and then construct a model using the new modeling system that can really test our approach," he says. "We will be talking about the integration we have to do so we can have an integrated system where each person contributes his or her own component."
In 2013, Goodall volunteered as a mentor at a local middle school, where he guided students through design a city of the future and "specifically think about how that city would handle its storm water," he says. "We discussed the general problems cause by storm water," which is runoff caused by heavy rain storms, "falling on impervious surfaces such as roads, roofs and parking lots.
"Because this rain does not infiltrate into the soil, it can cause problems such as flooding or erosion of river beds," he adds. "We talked about the ways engineers handle storm water so that it does not cause these problems, as well as how the philosophy for handling storm water runoff has changed over the years."
While many urban storm water systems were designed in the past simply to remove rain water from a city as quickly as possible--for example, by using large concrete channels--the focus has changed in recent years. Many cities now employ new practices, such as using pervious surfaces for roads or lots, or capturing rainfall in ponds or rain gardens distributed across the city, allowing water to slowly infiltrate into the soil.
"Storm water is something that most people spend very little time thinking about and these students were no different," he says. "But as they began to think about the problem and the challenge of not only solving the problem, but doing it in a sustainable way, they were hooked. You could see their minds go as they tried to come up with solutions to the problem, and that was fun."
Sunday, February 2, 2014
RECENT U.S. DEFENSE DEPARTMENT PHOTOS
FROM: U.S. DEFENSE DEPARTMENT
Army Rangers prepare to lay down suppressive fire during live-fire training on Fort Hunter Liggett, Calif., Jan. 23, 2014. The Rangers are assigned to Company B, 2nd Battalion, 75th Ranger Regiment. The training enables the soldiers to maintain proficiency on their tactical skills. U.S. Army photo by Pfc. Rashene Mincy.
A U.S. soldier hands another soldier a round to be loaded before firing their 120mm mortars during a live-fire exercise on Forward Operating Base Lightning in Afghanistan's Paktia province, Jan. 17, 2014. U.S. Army photo by Capt. John Landry.
SPORTS BETTING RACKETEER ENTERS GUILTY PLEA
FROM: JUSTICE DEPARTMENT
Friday, January 31, 2014
Leader of Alleged Sports Betting Ring Pleads Guilty to Racketeering Charges
Joseph Vito Mastronardo Jr., 63, of Meadowbrook, Pa., pleaded guilty today to conspiring to participate in a racketeering enterprise (RICO), conducting an illegal gambling business, four counts of conspiring to launder money, eight counts of interstate travel in aid of racketeering, transmitting wagering information and aggravated structuring of cash deposits.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Zane D. Memeger of the Eastern District of Pennsylvania made the announcement.
The guilty plea stems from Mastronardo’s leadership of the Mastronardo Bookmaking Organization, a multi-million dollar sports betting operation with bettors throughout the U.S. No sentencing date has been scheduled.
Mastronardo is one of 19 defendants charged in the case. Three defendants were charged by information and 16 defendants were charged by indictment. In the indictment, 15 of the 16 defendants were charged with conspiring to participate in a racketeering enterprise and conducting an illegal gambling business. With today’s guilty plea, 11 of the 16 defendants charged in the indictment have pleaded guilty.
At its peak, the organization had more than 1,000 bettors and was generating millions of dollars a year. According to the indictment, between Jan. 1, 2005, and Jan. 1, 2011, the organization used websites ( www.betroma.com and www.betrose.com ) and telephone numbers that allowed bettors to place sports bets on football, baseball, basketball, golf, horse racing and other sporting events. Residents of Costa Rica staffed the websites and answered the telephones. In 2006 and 2010, law enforcement seized over $2 million of cash that Mastronardo had hidden in and around his home, including in specially built secret compartments and in PVC pipes that were buried in his backyard.
Mastronardo ran the organization by using the Internet, telephone, Skype, e-mail, U.S. mail, and in-person communication. The Mastronardo Bookmaking Organization laundered the gambling proceeds by using a check cashing agency, two private bank accounts and numerous international bank accounts. On occasion, Mastronardo also provided instructions so a losing bettor could pay a gambling debt through a charitable donation.
Mastronardo supervised the agents, sub-agents and office employees and oversaw the websites. He laundered millions of dollars of betting proceeds, collected debts, and instructed others to collect debts. Other indicted defendants who have pleaded guilty include: Mastronardo’s son, Joseph F. Mastronardo, who worked as an office employee, collected debts and performed other financial duties; Eric Woehlcke, who worked as an office employee, collected debts and served as a sub-agent; Joseph and Anna Rose Vitelli, who owned J & A Check Cashing, which laundered the gambling proceeds; and Patrick Tronoski, Schuyler Twaddle, Michael Loftus, Michael Squillante, David Rounick and Ronald Gendrachi.
The case was investigated by the FBI, the Internal Revenue Service Criminal Investigation, the Montgomery County Detective Bureau, and the Montgomery County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jason P. Bologna of the Eastern District of Pennsylvania and Trial Attorney Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section.
Friday, January 31, 2014
Leader of Alleged Sports Betting Ring Pleads Guilty to Racketeering Charges
Joseph Vito Mastronardo Jr., 63, of Meadowbrook, Pa., pleaded guilty today to conspiring to participate in a racketeering enterprise (RICO), conducting an illegal gambling business, four counts of conspiring to launder money, eight counts of interstate travel in aid of racketeering, transmitting wagering information and aggravated structuring of cash deposits.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Zane D. Memeger of the Eastern District of Pennsylvania made the announcement.
The guilty plea stems from Mastronardo’s leadership of the Mastronardo Bookmaking Organization, a multi-million dollar sports betting operation with bettors throughout the U.S. No sentencing date has been scheduled.
Mastronardo is one of 19 defendants charged in the case. Three defendants were charged by information and 16 defendants were charged by indictment. In the indictment, 15 of the 16 defendants were charged with conspiring to participate in a racketeering enterprise and conducting an illegal gambling business. With today’s guilty plea, 11 of the 16 defendants charged in the indictment have pleaded guilty.
At its peak, the organization had more than 1,000 bettors and was generating millions of dollars a year. According to the indictment, between Jan. 1, 2005, and Jan. 1, 2011, the organization used websites ( www.betroma.com and www.betrose.com ) and telephone numbers that allowed bettors to place sports bets on football, baseball, basketball, golf, horse racing and other sporting events. Residents of Costa Rica staffed the websites and answered the telephones. In 2006 and 2010, law enforcement seized over $2 million of cash that Mastronardo had hidden in and around his home, including in specially built secret compartments and in PVC pipes that were buried in his backyard.
Mastronardo ran the organization by using the Internet, telephone, Skype, e-mail, U.S. mail, and in-person communication. The Mastronardo Bookmaking Organization laundered the gambling proceeds by using a check cashing agency, two private bank accounts and numerous international bank accounts. On occasion, Mastronardo also provided instructions so a losing bettor could pay a gambling debt through a charitable donation.
Mastronardo supervised the agents, sub-agents and office employees and oversaw the websites. He laundered millions of dollars of betting proceeds, collected debts, and instructed others to collect debts. Other indicted defendants who have pleaded guilty include: Mastronardo’s son, Joseph F. Mastronardo, who worked as an office employee, collected debts and performed other financial duties; Eric Woehlcke, who worked as an office employee, collected debts and served as a sub-agent; Joseph and Anna Rose Vitelli, who owned J & A Check Cashing, which laundered the gambling proceeds; and Patrick Tronoski, Schuyler Twaddle, Michael Loftus, Michael Squillante, David Rounick and Ronald Gendrachi.
The case was investigated by the FBI, the Internal Revenue Service Criminal Investigation, the Montgomery County Detective Bureau, and the Montgomery County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jason P. Bologna of the Eastern District of Pennsylvania and Trial Attorney Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section.
DEPARTMENT OF LABOR TOUTS COSTCO
FROM: LABOR DEPARTMENT
After the Address, Making the Case for a Higher Minimum Wage
Secretary Perez joined President Obama during a visit to a Costco warehouse in Lanham, Md., on Jan. 29, where he heralded the company that treats "their employees well — with a good salary, benefits and opportunity for advancement." During the secretary's visit, a number of employees expressed their satisfaction with the company and said they feel that they are paid fairly for a day's work. According to Perez, "It's not just employees, but everyone who's involved in your supply chain should be treated fairly." Costco is known for paying its workers above the minimum wage, and President Obama discussed the need for action. He encouraged Congress to pass the Harkin-Miller proposal, which would increase the minimum wage to $10.10 per hour. Earlier, he announced that he would issue an executive order requiring federal contractors to pay their federally funded employees $10.10 per hour. "Because if you cook our troops' meals and wash their dishes, you shouldn't have to live in poverty," the president said. Teressa Allen has worked at Costco for more than 27 years. She started with the company serving hot dogs, and today she is an assistant general manager. Allen's story is just one of many that exemplifies the opportunities for success at Costco. Maryland Gov. Martin O'Malley also participated in the event.
After the Address, Making the Case for a Higher Minimum Wage
Secretary Perez joined President Obama during a visit to a Costco warehouse in Lanham, Md., on Jan. 29, where he heralded the company that treats "their employees well — with a good salary, benefits and opportunity for advancement." During the secretary's visit, a number of employees expressed their satisfaction with the company and said they feel that they are paid fairly for a day's work. According to Perez, "It's not just employees, but everyone who's involved in your supply chain should be treated fairly." Costco is known for paying its workers above the minimum wage, and President Obama discussed the need for action. He encouraged Congress to pass the Harkin-Miller proposal, which would increase the minimum wage to $10.10 per hour. Earlier, he announced that he would issue an executive order requiring federal contractors to pay their federally funded employees $10.10 per hour. "Because if you cook our troops' meals and wash their dishes, you shouldn't have to live in poverty," the president said. Teressa Allen has worked at Costco for more than 27 years. She started with the company serving hot dogs, and today she is an assistant general manager. Allen's story is just one of many that exemplifies the opportunities for success at Costco. Maryland Gov. Martin O'Malley also participated in the event.
RECENT U.S. AIR FORCE PHOTOS
FROM: DEFENSE DEPARTMENT
U.S. Air Force Capt. Lauren Hoyt and U.S. Air Force 1st Lt. Mark Benischeck prepare to land a C-17 Globemaster III aircraft on Bagram Airfield, Afghanistan, Jan. 23, 2014. Hoyt and Benischeck, pilots, are assigned to the 816th Expeditionary Airlift Squadron. The crew landed at Bagram to airlift mine-resistant, ambush protected vehicles out of Afghanistan as part of Operation Enduring Freedom retrograde operations. U.S. Air Force photo by Tech. Sgt. Jason Robertson.
A U.S. Air Force C-17 Globemaster III aircraft sits idle on the flightline on Bagram Airfield, Afghanistan, Jan. 23, 2014, before a mission to airlift mine-resistant, ambush protected vehicles out of Afghanistan as part of Operation Enduring Freedom retrograde operations. U.S. Air Force photo by Tech.
TWO COLLEGE PROFESSORS CHARGED IN ELABORATE NAKED SHORT SELLING SCHEME
FROM: SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today charged a pair of college professors in Tallahassee, Fla., with perpetrating a complex naked short selling scheme for more than $400,000 in illicit profits.
Abusive naked short selling occurs when shares are sold without having the shares to deliver, and then intentionally failing to deliver the securities within the standard three-day settlement period. An SEC investigation found that Gonul Colak and Milen Kostov repeatedly engaged in a series of sham transactions designed to perpetuate a naked short position as part of an elaborate options trading strategy. Colak and Kostov were required to deliver the securities underlying their short positions within the standard three days. Instead, their sham reset transactions created the illusion that they had delivered the underlying securities when in fact they had taken no steps to do so. They maintained the uncovered naked short positions and profited.
Colak and Kostov agreed to settle the SEC’s charges by paying more than $670,000.
Colak and Kostov used multiple brokerage accounts to disguise the spurious nature of the sham transactions, moving a short position from one brokerage firm to another every few days in order to spread the failures to deliver across multiple firms in an effort to avoid detection. SEC investigators uncovered the complicated scheme while looking into unusual trading in one of the companies whose options were being traded by Colak and Kostov. An SEC examiner separately noted Kostov’s large volume options trading in a different company. By cross referencing their findings and crunching blue sheet data, it became clear that Colak and Kostov were likely trading with one another. SEC investigators pieced together the complex trading strategy – which involved literally thousands of trades – by tracing one of the trading sequences from start to finish.
“Colak and Kostov engaged in trickery and deceit to avoid their delivery obligations and conceal their short selling scheme,” said Daniel M. Hawke, chief of the SEC Enforcement Division’s Market Abuse Unit. “No matter how complex the trading scheme, we are committed to exposing and halting abusive naked short selling and holding wrongdoers like Colak and Kostov accountable for their misconduct.”
According to the SEC’s order instituting settled administrative proceedings, Colak and Kostov set their scheme in motion in early 2010 and went on to sell more than $800 million worth of call options in more than 20 companies. Their trading strategy involved purchasing and writing two pairs of options for the same underlying stock, and targeting options in hard-to-borrow securities in which the price of the put options was higher than the price of the call options. Colak and Kostov profited by avoiding the cost of instituting and maintaining the short positions caused by their paired options trading.
The SEC’s order finds that Colak and Kostov violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rules 10b-5 and 10b-21 thereunder. Colak agreed to pay $285,600 in disgorgement, $21,957 in prejudgment interest, and a $150,000 penalty. Kostov agreed to pay $134,400 in disgorgement, $10,340 in prejudgment interest, and a penalty of $70,000. Without admitting or denying the findings, Colak and Kostov agreed to cease and desist from committing or causing such violations.
The SEC’s investigation was conducted by Jason Breeding and Diana Tani of the Market Abuse Unit in the Los Angeles Regional Office with assistance from the unit’s securities operations specialist Patrick McCluskey. The investigation was supervised by Daniel M. Hawke and Joseph G. Sansone. The SEC appreciates the assistance of the Financial Industry Regulatory Authority (FINRA).
The Securities and Exchange Commission today charged a pair of college professors in Tallahassee, Fla., with perpetrating a complex naked short selling scheme for more than $400,000 in illicit profits.
Abusive naked short selling occurs when shares are sold without having the shares to deliver, and then intentionally failing to deliver the securities within the standard three-day settlement period. An SEC investigation found that Gonul Colak and Milen Kostov repeatedly engaged in a series of sham transactions designed to perpetuate a naked short position as part of an elaborate options trading strategy. Colak and Kostov were required to deliver the securities underlying their short positions within the standard three days. Instead, their sham reset transactions created the illusion that they had delivered the underlying securities when in fact they had taken no steps to do so. They maintained the uncovered naked short positions and profited.
Colak and Kostov agreed to settle the SEC’s charges by paying more than $670,000.
Colak and Kostov used multiple brokerage accounts to disguise the spurious nature of the sham transactions, moving a short position from one brokerage firm to another every few days in order to spread the failures to deliver across multiple firms in an effort to avoid detection. SEC investigators uncovered the complicated scheme while looking into unusual trading in one of the companies whose options were being traded by Colak and Kostov. An SEC examiner separately noted Kostov’s large volume options trading in a different company. By cross referencing their findings and crunching blue sheet data, it became clear that Colak and Kostov were likely trading with one another. SEC investigators pieced together the complex trading strategy – which involved literally thousands of trades – by tracing one of the trading sequences from start to finish.
“Colak and Kostov engaged in trickery and deceit to avoid their delivery obligations and conceal their short selling scheme,” said Daniel M. Hawke, chief of the SEC Enforcement Division’s Market Abuse Unit. “No matter how complex the trading scheme, we are committed to exposing and halting abusive naked short selling and holding wrongdoers like Colak and Kostov accountable for their misconduct.”
According to the SEC’s order instituting settled administrative proceedings, Colak and Kostov set their scheme in motion in early 2010 and went on to sell more than $800 million worth of call options in more than 20 companies. Their trading strategy involved purchasing and writing two pairs of options for the same underlying stock, and targeting options in hard-to-borrow securities in which the price of the put options was higher than the price of the call options. Colak and Kostov profited by avoiding the cost of instituting and maintaining the short positions caused by their paired options trading.
The SEC’s order finds that Colak and Kostov violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rules 10b-5 and 10b-21 thereunder. Colak agreed to pay $285,600 in disgorgement, $21,957 in prejudgment interest, and a $150,000 penalty. Kostov agreed to pay $134,400 in disgorgement, $10,340 in prejudgment interest, and a penalty of $70,000. Without admitting or denying the findings, Colak and Kostov agreed to cease and desist from committing or causing such violations.
The SEC’s investigation was conducted by Jason Breeding and Diana Tani of the Market Abuse Unit in the Los Angeles Regional Office with assistance from the unit’s securities operations specialist Patrick McCluskey. The investigation was supervised by Daniel M. Hawke and Joseph G. Sansone. The SEC appreciates the assistance of the Financial Industry Regulatory Authority (FINRA).
NEW APPROACH TO SAVE ON OFFICE SUPPLY PURCHASES SAYS GSA
FROM: GENERAL SERVICES ADMINISTRATION
GSA Unveils New Approach to Government Office Supplies Purchasing
Agency issues RFP for 3rd generation office supply purchasing initiative
I
WASHINGTON, DC -- The General Services Administration (GSA) today posted a Request for Proposals (RFP) for the third generation of a Federal Strategic Sourcing Initiative (FSSI) aimed at reducing costs for federal office supply purchases. Office Supply Third Generation or OS3 is the agency’s latest effort to cut costs and increase efficiencies by buying everyday supplies like pens, paper, and printing items from a list of vendors with negotiated low prices. This initiative builds upon the success of OS2, which generated more than $350 million in savings and achieved a small business utilization rate of 76 percent. OS3 is expected to provide government savings of $65 million annually on administrative costs plus an additional $90 million in annual savings captured through lower prices.
To increase transparency, gather feedback, and help Industry prepare for the final solicitation, GSA is collaborating with interested office supplies vendors through its OS3 Interact Community. Through video tutorials, a draft RFP comment period and an Industry Engagement Event with more than 400 registrants, GSA provided the vendor community an opportunity to participate in shaping the solicitation and requirements outlined the final OS3 RFP.
FAS Commissioner Tom Sharpe Weighs in:
“With increasingly constrained resources and budgets, GSA’s mission of saving the government time and money has never been more important. The success of GSA’s FSSI programs requires ongoing collaboration and dialog with our partners across government and industry in order deliver millions in savings for taxpayers.”
Collaboration with Industry Shapes Final RFP:
Based on comments, suggested changes, and information shared by industry and by various associations, GSA made some adjustments to the final RFP:
GSA is increasing the number of awardees for certain sections and will add two small business awards to the existing three Service Disabled Veteran Owned Small Business (SDVOB) awards.
To align with commercial practice, GSA will reduce some of the data-reporting requirements.
GSA is removing the price reduction requirement. Industry comments indicated it would increase costs leading to increased prices.
Building on the successes of OS2, OS3 will include the following new and additional benefits:
This procurement will be a full-and-open solicitation, open to all office supply businesses, including any businesses that do not have a GSA Multiple Award Schedule contract.
Additional purchasing channel options for agencies with the inclusion of a requisition channel and eventually the 4th Party Logistics (vendor direct-delivery requisition/fulfillment) channel
Increased opportunities for small businesses with open season on-ramping and an increase in the number of awards reserved for small business
Lower prices through increased competition and a dynamic pricing model, which reduces price variances
How OS3 Works:
GSA’s FSSI programs help federal agencies buy smarter and save money for taxpayers by leveraging the large quantity the government purchases to negotiate lower prices from suppliers. The OS3 program does this by working with agencies to figure out how much they are spending on common supplies and then working with office supplies vendors to agree on bulk prices that reflect how much the government is buying each year.
GSA Unveils New Approach to Government Office Supplies Purchasing
Agency issues RFP for 3rd generation office supply purchasing initiative
I
WASHINGTON, DC -- The General Services Administration (GSA) today posted a Request for Proposals (RFP) for the third generation of a Federal Strategic Sourcing Initiative (FSSI) aimed at reducing costs for federal office supply purchases. Office Supply Third Generation or OS3 is the agency’s latest effort to cut costs and increase efficiencies by buying everyday supplies like pens, paper, and printing items from a list of vendors with negotiated low prices. This initiative builds upon the success of OS2, which generated more than $350 million in savings and achieved a small business utilization rate of 76 percent. OS3 is expected to provide government savings of $65 million annually on administrative costs plus an additional $90 million in annual savings captured through lower prices.
To increase transparency, gather feedback, and help Industry prepare for the final solicitation, GSA is collaborating with interested office supplies vendors through its OS3 Interact Community. Through video tutorials, a draft RFP comment period and an Industry Engagement Event with more than 400 registrants, GSA provided the vendor community an opportunity to participate in shaping the solicitation and requirements outlined the final OS3 RFP.
FAS Commissioner Tom Sharpe Weighs in:
“With increasingly constrained resources and budgets, GSA’s mission of saving the government time and money has never been more important. The success of GSA’s FSSI programs requires ongoing collaboration and dialog with our partners across government and industry in order deliver millions in savings for taxpayers.”
Collaboration with Industry Shapes Final RFP:
Based on comments, suggested changes, and information shared by industry and by various associations, GSA made some adjustments to the final RFP:
GSA is increasing the number of awardees for certain sections and will add two small business awards to the existing three Service Disabled Veteran Owned Small Business (SDVOB) awards.
To align with commercial practice, GSA will reduce some of the data-reporting requirements.
GSA is removing the price reduction requirement. Industry comments indicated it would increase costs leading to increased prices.
Building on the successes of OS2, OS3 will include the following new and additional benefits:
This procurement will be a full-and-open solicitation, open to all office supply businesses, including any businesses that do not have a GSA Multiple Award Schedule contract.
Additional purchasing channel options for agencies with the inclusion of a requisition channel and eventually the 4th Party Logistics (vendor direct-delivery requisition/fulfillment) channel
Increased opportunities for small businesses with open season on-ramping and an increase in the number of awards reserved for small business
Lower prices through increased competition and a dynamic pricing model, which reduces price variances
How OS3 Works:
GSA’s FSSI programs help federal agencies buy smarter and save money for taxpayers by leveraging the large quantity the government purchases to negotiate lower prices from suppliers. The OS3 program does this by working with agencies to figure out how much they are spending on common supplies and then working with office supplies vendors to agree on bulk prices that reflect how much the government is buying each year.
PATIENT RECRUITER PLEADS GUILTY IN $13 MILLION HEALTH CARE FRAUD
FROM: JUSTICE DEPARTMENT
Tuesday, January 28, 2014
Patient Recruiter Pleads Guilty in Connection With $13 Million Health Care Fraud Scheme
Pavel Zborovskiy, 57, of Brooklyn, N.Y., pleaded guilty today to conspiracy to pay and receive illegal health care kickbacks in connection with a $13 million health care fraud and money laundering scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office, and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) made the announcement.
Zborovskiy pleaded guilty before U.S. District Judge Nina Gershon of the Eastern District of New York and is the sixth defendant to plead guilty in connection with the scheme. At sentencing on May 28, 2014, Zborovskiy faces a maximum penalty of five years in prison and a fine of more than $2.5 million.
According to court documents, from 2010 to 2012, Zborovskiy, working through an ambulette company, recruited patients to attend a Brooklyn clinic called Cropsey Medical Care PLLC. An ambulette is a vehicle that is licensed by New York State’s Medicaid program to transport beneficiaries to and from medical facilities when such transportation is medically necessary. Zborovskiy’s ambulette company transported the patients he had recruited to and from Cropsey Medical, and billed Medicaid for such transportation. Once Zborovskiy’s beneficiaries were transported to Cropsey Medical, Zborovskiy and others paid such beneficiaries cash kickbacks to induce them to continue to attend the clinic and to receive medically unnecessary physical therapy, diagnostic testing and other services. Such purported medical services were then billed by Cropsey Medical to Medicare and Medicaid.
According to court documents, from approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
The case was investigated by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shannon Jones of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Tuesday, January 28, 2014
Patient Recruiter Pleads Guilty in Connection With $13 Million Health Care Fraud Scheme
Pavel Zborovskiy, 57, of Brooklyn, N.Y., pleaded guilty today to conspiracy to pay and receive illegal health care kickbacks in connection with a $13 million health care fraud and money laundering scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office, and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) made the announcement.
Zborovskiy pleaded guilty before U.S. District Judge Nina Gershon of the Eastern District of New York and is the sixth defendant to plead guilty in connection with the scheme. At sentencing on May 28, 2014, Zborovskiy faces a maximum penalty of five years in prison and a fine of more than $2.5 million.
According to court documents, from 2010 to 2012, Zborovskiy, working through an ambulette company, recruited patients to attend a Brooklyn clinic called Cropsey Medical Care PLLC. An ambulette is a vehicle that is licensed by New York State’s Medicaid program to transport beneficiaries to and from medical facilities when such transportation is medically necessary. Zborovskiy’s ambulette company transported the patients he had recruited to and from Cropsey Medical, and billed Medicaid for such transportation. Once Zborovskiy’s beneficiaries were transported to Cropsey Medical, Zborovskiy and others paid such beneficiaries cash kickbacks to induce them to continue to attend the clinic and to receive medically unnecessary physical therapy, diagnostic testing and other services. Such purported medical services were then billed by Cropsey Medical to Medicare and Medicaid.
According to court documents, from approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
The case was investigated by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shannon Jones of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
JUSTICE SETTLES HIRING DISCRIMINATION CASE WITH CITY OF WATERLOO, IOWA
FROM: JUSTICE DEPARTMENT
Thursday, January 30, 2014
Justice Department Reaches Settlement to Resolve Claim of Citizenship Status Hiring Discrimination in Waterloo, Iowa
The Justice Department announced today that it has reached an agreement with the city of Waterloo, Iowa, resolving allegations that the city violated the anti-discrimination provision of the Immigration and Nationality Act (INA).
The department initiated its investigation after a charge was filed by a work-authorized, lawful permanent resident alleging that the city refused to consider him for a fire fighter position because he was not a U.S. citizen. The department’s investigation confirmed that the city of Waterloo improperly restricted fire fighter positions to U.S. citizens despite the fact that no law, regulation, executive order or government contract authorized the city to legally restrict employment in such a manner under the INA. The investigation further revealed that the city of Waterloo had refused to consider the charging party’s application on the basis of his citizenship status.
Under the settlement agreement, the city of Waterloo must provide the charging party with another opportunity to apply for the position and must hire or otherwise compensate the charging party if the charging party’s performance on the city’s hiring tests confirm that he would have been hired in the absence of discrimination. In addition, the city of Waterloo will pay $13,000 in civil penalties to the United States, and has agreed to make changes to its policies and practices to ensure unlawful citizenship requirements are not imposed, to provide training to city officials, and to be subject to monitoring by the department for one year.
“Employers must make sure that they are not erecting unlawful, discriminatory barriers in hiring,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department is committed to knocking down these barriers through its enforcement of the INA and making sure that work-authorized applicants have equal employment opportunities.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA.
Thursday, January 30, 2014
Justice Department Reaches Settlement to Resolve Claim of Citizenship Status Hiring Discrimination in Waterloo, Iowa
The Justice Department announced today that it has reached an agreement with the city of Waterloo, Iowa, resolving allegations that the city violated the anti-discrimination provision of the Immigration and Nationality Act (INA).
The department initiated its investigation after a charge was filed by a work-authorized, lawful permanent resident alleging that the city refused to consider him for a fire fighter position because he was not a U.S. citizen. The department’s investigation confirmed that the city of Waterloo improperly restricted fire fighter positions to U.S. citizens despite the fact that no law, regulation, executive order or government contract authorized the city to legally restrict employment in such a manner under the INA. The investigation further revealed that the city of Waterloo had refused to consider the charging party’s application on the basis of his citizenship status.
Under the settlement agreement, the city of Waterloo must provide the charging party with another opportunity to apply for the position and must hire or otherwise compensate the charging party if the charging party’s performance on the city’s hiring tests confirm that he would have been hired in the absence of discrimination. In addition, the city of Waterloo will pay $13,000 in civil penalties to the United States, and has agreed to make changes to its policies and practices to ensure unlawful citizenship requirements are not imposed, to provide training to city officials, and to be subject to monitoring by the department for one year.
“Employers must make sure that they are not erecting unlawful, discriminatory barriers in hiring,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department is committed to knocking down these barriers through its enforcement of the INA and making sure that work-authorized applicants have equal employment opportunities.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA.
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