FROM: U.S. DEFENSE DEPARTMENT
CONTRACTS
AIR FORCE
ManTech SRS, Technologies, Inc., Arlington, Va., has been awarded a $15,515,683 cost-plus-fixed-fee modification (P00024) to an existing contract (FA8811-10-C-0002) to exercise term one, option one for systems engineering, product assurance, program safety, systems security, risk management, and launch integration management for the Launch and Range Systems Directorate. Work will be performed at Los Angeles Air Force Base, Calif., Cape Canaveral Air Force Station, Fla., and Vandenberg AFB, Calif., and is expected to be completed by March 22, 2015. Fiscal 2013 procurement funds for $13,930,481 and 2014 operations and maintenance funds for $871,635 are being obligated at time of award. Space and Missile Systems Center/LRK, Los Angeles AFB, Calif., is the contracting activity.
ARMY
ASI Government, Inc., Arlington, Va., (W52P1J-14-D-0018); Engility Corporation, Alexandria, Va., (W52P1J-14-D-0019); Logistics Management Institute, McLean, Va., (W52P1J-14-D-0020); Sysorex Government Services, Inc. *, Herndon, Va., (W52P1J-14-D-0032); Suntiva, LLC*, Falls Church, Va., (W52P1J-14-D-0033); and Zantech IT Services, Inc*., Tysons Corner, Va., (W52P1J-14-D-0034) were awarded a maximum $461,000,000 indefinite-delivery/indefinite-quantity, multiple-award contract for program management support services for the Program Executive Office Enterprise Information Systems headquarters, directorates, project/product offices and related organizations. The contract will provide for the full range of program management support in the functional areas of project/product management; business process reengineering; information systems security; contingency planning; and physical security. Each company will receive a minimum guarantee of $20,000 and compete for task orders under the IDIQ. Funding and performance locations will be determined with each order. The estimated completion date is March 13, 2019. Bids were solicited via the Internet with twenty-four received. Army Contracting Command, Rock Island Arsenal, Ill., is the contracting activity.
AAI Corp. Hunt Valley, Md., was awarded a $38,523,230 modification (P00120) to contract W58RGZ-08-C-0023 to purchase five tactical common data link retrofit kits and mobile maintenance facility spares sets for the shadow unmanned aircraft systems for the U.S. Marine Corps. Fiscal 2014 other procurement funds in the amount of $38,523,230 were obligated at the time of the award. Estimated completion date is May 31, 2017. Work will be performed at Hunt Valley, Md. Army Contracting Command is the contracting activity.
The Mason & Hanger Group, Inc., Lexington, Ky., was awarded a $9,000,000 firm-fixed-price indefinite-delivery/indefinite-quantity contract for architectural and engineering services, Army reserve projects nationwide and military projects within the Great Lakes and Ohio River Division mission boundaries. Funding and performance location will be determined with each order. Estimated completion date is March 20, 2019. Bids were solicited via the Internet with thirty-two received. Army Corps of Engineers, Louisville, Ky., is the contracting activity (W912QR-14-D-0007).
DEFENSE LOGISTICS AGENCY
Government Scientific Source, Inc.,** Reston, Va., has been awarded a maximum $333,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for selection of distributor who will make available for purchase medical laboratory supplies and wares. This is a one-year base contract with four one-year option periods. This is a competitive acquisition, and four offers were received. Location of performance is Virginia with a March 20, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal year 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM2DE-14-D-7350).
Raytheon Company, Space and Airborne Systems, McKinney, Texas, has been awarded a maximum $7,420,000 firm-fixed-price contract for system electronic units. This is a sixteen-month base contract with no option periods. This is a sole-source acquisition. Location of performance is Texas with a July 31, 2015 performance completion date. Using military service is Navy. Type of appropriation is fiscal year 2014 Navy working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pa., (SPRPA1-14-G-001X-1003).
NAVY
Raytheon Co., Integrated Defense Systems, Sudbury, Mass., is being awarded a $45,057,874 modification to previously awarded contract (N00024-13-C-5115) for the production of one AN/SPY-1D(V) Transmitter Group and select Missile Fire Control System MK 99 equipment to support Aegis Ashore Missile Defense System in Poland. Work will be performed in Andover, Mass. (78.3 percent); Sudbury, Mass. (19.3 percent); Canada (1 percent); Moorestown, N.J. (0.9 percent); and Norfolk, Va. (0.5 percent), and is expected to be completed by March 2016. Fiscal 2014 defense procurement contract funds in the amount of $45,057,874 will be obligated at the time of award, and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Chugach Federal Solutions Inc.*, Anchorage, Alaska, is being awarded a $30,862,237 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for base operations support at various installations in the Naval Facilities Engineering Command (NAVFAC) Northwest area of responsibility (AOR). The maximum dollar value including the base period and five option periods performance is $275,822,190. The work to be performed provides for, but is not limited to, all management and administration, visual services, security operations services, fire and emergency services, facilities management services, facility investment services, medical facility investment services, pest control services, integrated solid waste services, pavement clearance services, base support vehicle and equipment services, environmental services, and utilities services to provide base operations support services. Work will be performed at various installations in the NAVFAC Northwest AOR including but not limited to, Washington (95 percent), Alaska (1 percent), Idaho (1 percent), Montana (1 percent), Oregon (1 percent), and Wyoming (1 percent), and work is expected to be completed September 2014. Fiscal 2014 operation and maintenance, Navy; fiscal 2014 Navy working capital funds; and fiscal 2014 defense health program contract funds in the amount of $11,239,788 will be obligated at time of award. Funds in the amount of $6,583,257 will expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website, with nine proposals received. The Naval Facilities Engineering Command, Northwest, Silverdale, Wash., is the contracting activity (N44255-14-D-9000).
Raytheon Co., McKinney, Texas, is being awarded $17,707,050 for modification 0044-01 to previously awarded firm-fixed-price contract (N00164-12-G-JQ66) for 19 Multi-Spectral Targeting Systems for U.S. Navy MH-60R/S helicopters. The system is an airborne, electro-optic, forward-looking infra-red, turreted sensor package that provides long-range surveillance, high altitude target acquisition, tracking, range-finding, and laser designation, and for all tri-service and NATO laser guided munitions. Work will be performed in McKinney, Texas, and is expected to be completed by March 2016. Fiscal 2014 aircraft procurement Navy contract funds in the amount of $17,707,050 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Surface Warfare Center, Crane, Ind., is the contracting activity.
DEFENSE ADVANCED RESEARCH PROJECTS AGENCY
The Boeing Company, Huntington Beach, Calif., has been awarded a $30,673,934 cost-plus-fixed-fee contract. The work will support the Defense Advanced Research Projects Agency's Airborne Launch Assist Space Access program. Work will be performed in Huntington Beach, Calif. (53 percent); Houston, Texas (13 percent); Redondo Beach, Calif. (13 percent); Santa Maria, Calif. (11 percent); Bothell, Wash. (2 percent); Simsbury, Conn. (5 percent); Titusville, Fla. (2 percent); Joplin, Mo. (1 percent); Ontario, Calif. (1 percent). The estimated completion date is Feb. 20, 2015. Fiscal 2013 research and development funds in the amount of $22,041,570 are being obligated at time of award. The contracting activity is DARPA, Arlington, Va., (HR0011-14-C-0051).
U.S. TRANSPORTATION COMMAND
American Auto Logistics, Limited Partnership, Park Ridge, N.J., is being awarded a $25,000,000 delivery order modification to previously awarded delivery order DAMT01-03-D-0184-0009 to provide for Department of Defense-sponsored shipments of privately owned vehicles belonging to military service members and DOD civilian employees. Work will be performed at multiple locations both within and outside of the continental U.S., with an expected completion date of April 30, 2014. Fiscal year 2014 Transportation Working Capital Funds of $25,000,000 are being obligated at the time of modification execution. The contracting activity is the U.S. Transportation Command Directorate of Acquisition, Scott Air Force Base, Ill.
*Small Business
**Veteran Owned Small Business
Friday, March 21, 2014
LABOR SECRETARY PEREZ ISSUES STATEMENT ON 2013 VETERANS EMPLOYMENT REPORT
FROM: U.S. LABOR DEPARTMENT
Statement by US Secretary of Labor Thomas E. Perez on veterans' employment
WASHINGTON — U.S. Secretary of Labor Thomas E. Perez today issued the following statement regarding the release of the 2013 Employment Situation of Veterans report by the department's Bureau of Labor Statistics:
"Today's veterans' employment report for 2013 from the Bureau of Labor Statistics shows an encouraging drop in overall veterans' unemployment from 7 percent in 2012 to 6.6 percent. It included a significant reduction in 2013 unemployment for women veterans from 8.3 percent in 2012 to 6.9 percent in 2013 and a decrease from 9.9 percent to 9 percent for all Gulf War-era II veterans.
"Our nation's veterans and their families have made countless sacrifices on behalf of our nation. Who deserves opportunity more than those who have put their lives on the line defending it?
"Veterans have the skills that employers are looking for. They make our nation's workforce more productive, our companies more profitable and our economy more competitive. Smart businesses recruit veterans because it's in their self-interest, because they know it's a sound investment in their bottom line.
"At the Labor Department, we are working hard to help veterans and military service members as they transition to the civilian workforce. We provide priority services for veterans through more than 2,500 American Job Centers across the country. We have also launched an online tool, My Next Move for Veterans, where veterans and transitioning service members can enter their military occupation code and discover civilian occupations for which they are well qualified. We also announced this past summer a new regulation encouraging companies that do business with the federal government to focus on hiring more veterans.
"This report shows that the private and public sectors are making progress on veterans' employment. But much more needs to be done. I urge all employers to renew their commitment to veterans, so that those who served and sacrificed can realize their highest dreams. The best way to honor our veterans is to hire them."
Statement by US Secretary of Labor Thomas E. Perez on veterans' employment
WASHINGTON — U.S. Secretary of Labor Thomas E. Perez today issued the following statement regarding the release of the 2013 Employment Situation of Veterans report by the department's Bureau of Labor Statistics:
"Today's veterans' employment report for 2013 from the Bureau of Labor Statistics shows an encouraging drop in overall veterans' unemployment from 7 percent in 2012 to 6.6 percent. It included a significant reduction in 2013 unemployment for women veterans from 8.3 percent in 2012 to 6.9 percent in 2013 and a decrease from 9.9 percent to 9 percent for all Gulf War-era II veterans.
"Our nation's veterans and their families have made countless sacrifices on behalf of our nation. Who deserves opportunity more than those who have put their lives on the line defending it?
"Veterans have the skills that employers are looking for. They make our nation's workforce more productive, our companies more profitable and our economy more competitive. Smart businesses recruit veterans because it's in their self-interest, because they know it's a sound investment in their bottom line.
"At the Labor Department, we are working hard to help veterans and military service members as they transition to the civilian workforce. We provide priority services for veterans through more than 2,500 American Job Centers across the country. We have also launched an online tool, My Next Move for Veterans, where veterans and transitioning service members can enter their military occupation code and discover civilian occupations for which they are well qualified. We also announced this past summer a new regulation encouraging companies that do business with the federal government to focus on hiring more veterans.
"This report shows that the private and public sectors are making progress on veterans' employment. But much more needs to be done. I urge all employers to renew their commitment to veterans, so that those who served and sacrificed can realize their highest dreams. The best way to honor our veterans is to hire them."
AG HOLDER ANNOUNCES FINDINGS FROM SURVEY OF STUDENT DISCIPLINE PRACTICES
FROM: U.S. JUSTICE DEPARTMENT
Attorney General Eric Holder Delivers Remarks at J.O. Wilson Elementary School to Announce Findings from Expansive Survey of Student Discipline Practices at America’s Public Schools
~ Friday, March 21, 2014
Thank you, Secretary [Arne] Duncan, for that introduction – and for your outstanding leadership of the Department of Education. It’s a pleasure to join you and Assistant Secretary [Catherine] Lhamon here at J.O. Wilson Elementary School – as we discuss the challenges facing America’s young people, and the essential steps that today’s public servants and policymakers must take in order to secure equal opportunities for the leaders of tomorrow. I also want to recognize Acting Assistant Attorney General Jocelyn Samuels, and our team from the Civil Right Division’s Educational Opportunities Section, who work tirelessly to combat discrimination in education.
As the Secretary indicated, we come together this morning at a moment of great challenge – but also great opportunity. The 2011-2012 Civil Rights Data Collection shines a light on many of the obstacles we face in creating constructive, equitable, and supportive learning environments for all of our students. For the first time in more than a decade, the CRDC paints a comprehensive picture by drawing on information from every public school in the nation. And this data shows us that we have a long way to go to ensure that every child has access to the kind of programs offered here at J.O. Wilson. A great deal remains to be done to address the deficit of experience among educators who teach many of our students of color. And some of the racial disparities in the administration of school discipline that are well-documented among older students actually begin as early as preschool.
For instance, African American students made up just under one in five preschoolers enrolled during the 2011-2012 school year. But they accounted for nearly half of all preschool students who faced more than one out-of-school suspension. Nationally, students of color were subjected to suspensions and expulsions at a rate three times higher than that of their white peers. They were far more likely to face referral to law enforcement or even arrest. And although this shocking breakdown reflects a disproportionate impact of school discipline on students of color the divide isn’t purely racial. According to the CRDC, fully three quarters of students who faced disciplinary physical restraint were classified as students with disabilities.
This is astonishing. It’s unacceptable. And it’s important to bear in mind, as we begin today’s discussion, that – as Secretary Duncan noted – these are not abstract statistics. This isn’t a projection, a snapshot, or a rough estimate. The CRDC covers actual, documented disparities in school discipline policies and practices across the country. So every data point represents a life impacted, a future potentially diverted or derailed, and a young man or woman who was placed at increased likelihood of becoming involved with the criminal justice system.
Now, effective school discipline will always be a necessity. Schools must support children as they learn expectations about behavior and conduct. But a routine school discipline infraction should land a student in a principal’s office – not in a police precinct. That’s why the two of us traveled to Baltimore in January to announce a sweeping new set of guidelines aimed at reducing our overreliance on zero-tolerance discipline policies that transform some schools from doorways of opportunity into gateways to the criminal justice system. It’s why we’re working, through our Supportive School Discipline Initiative, to disrupt this so-called “school-to-prison pipeline.” And it’s why this Administration as a whole – led by the Departments of Justice and Education – is committed to doing everything we can to ensure that, as President Obama said in December, “every striving, hardworking, optimistic kid in America has the same incredible chance that this country gave [each of us]” – both in the classroom and far beyond.
As we speak, the Justice Department’s Civil Rights Division is collaborating with school districts and states to ensure that they’re meeting their obligations under federal civil rights laws. Six decades after Brown v. Board of Education, we’re working tirelessly – in hundreds of individual cases – to dismantle racial segregation wherever it’s found. We’re fighting to make sure that students with disabilities are appropriately accommodated, not denied school admission, and provided with the same opportunities to communicate, to learn, and to grow as every one of their peers. We’re vigorously enforcing laws that require school districts to support English Language Learners so they can overcome language barriers and meaningfully participate in school. And we’re striving to reduce abusive behavior against and among students of every age and grade level – by working to protect them from threats, derogatory language, physical violence, and other forms of discriminatory harassment and bullying.
Going forward, our efforts to promote school safety and effective discipline will be guided and informed by the Comprehensive School Safety Initiative – which is managed by the National Institute of Justice, and will allocate $75 million in funding for large-scale research into the causes of school violence, the most effective ways to address it, and the steps we can take to create a comprehensive, data-driven school safety model that can be tailored to individual needs.
This important new initiative will complement work that’s already underway through the Department’s landmark Defending Childhood Initiative and the National Forum on Youth Violence Prevention – which are rallying federal leaders, state officials, educators, private organizations, and community groups to better understand, address, and prevent young people's exposure to violence. Across the country, these and other broad-based programs are showing tremendous promise in improving our response to this pernicious phenomenon. And thanks to the innovative, Administration-wide “My Brother’s Keeper” initiative that President Obama announced last month, we’re poised to rally a broader coalition to do even more.
It’s no exaggeration to say that America’s future will be defined, and our progress determined, by the doors we open and the support we offer to our nation’s young people. From bolstering early childhood education to promoting youth literacy; from increasing mentorship to reducing juvenile violence; from extending access to social services to expanding employment opportunities – I’m convinced that, so long as we work together, we’ll be able to empower millions of students to pursue their dreams, to achieve their full potential, and to forge the better, brighter futures they deserve.
Now, I recognize – as you do – that achieving these goals will not be easy, and progress will not take hold overnight. But with the continued dedication of this Administration and its partners; with the engagement of advocates across the country; and with the passion of young people like the students here at J.O. Wilson – I am confident in where this work will take us. I thank you all, once again, for the opportunity to be here today. And I look forward to all that we will accomplish together.
Attorney General Eric Holder Delivers Remarks at J.O. Wilson Elementary School to Announce Findings from Expansive Survey of Student Discipline Practices at America’s Public Schools
~ Friday, March 21, 2014
Thank you, Secretary [Arne] Duncan, for that introduction – and for your outstanding leadership of the Department of Education. It’s a pleasure to join you and Assistant Secretary [Catherine] Lhamon here at J.O. Wilson Elementary School – as we discuss the challenges facing America’s young people, and the essential steps that today’s public servants and policymakers must take in order to secure equal opportunities for the leaders of tomorrow. I also want to recognize Acting Assistant Attorney General Jocelyn Samuels, and our team from the Civil Right Division’s Educational Opportunities Section, who work tirelessly to combat discrimination in education.
As the Secretary indicated, we come together this morning at a moment of great challenge – but also great opportunity. The 2011-2012 Civil Rights Data Collection shines a light on many of the obstacles we face in creating constructive, equitable, and supportive learning environments for all of our students. For the first time in more than a decade, the CRDC paints a comprehensive picture by drawing on information from every public school in the nation. And this data shows us that we have a long way to go to ensure that every child has access to the kind of programs offered here at J.O. Wilson. A great deal remains to be done to address the deficit of experience among educators who teach many of our students of color. And some of the racial disparities in the administration of school discipline that are well-documented among older students actually begin as early as preschool.
For instance, African American students made up just under one in five preschoolers enrolled during the 2011-2012 school year. But they accounted for nearly half of all preschool students who faced more than one out-of-school suspension. Nationally, students of color were subjected to suspensions and expulsions at a rate three times higher than that of their white peers. They were far more likely to face referral to law enforcement or even arrest. And although this shocking breakdown reflects a disproportionate impact of school discipline on students of color the divide isn’t purely racial. According to the CRDC, fully three quarters of students who faced disciplinary physical restraint were classified as students with disabilities.
This is astonishing. It’s unacceptable. And it’s important to bear in mind, as we begin today’s discussion, that – as Secretary Duncan noted – these are not abstract statistics. This isn’t a projection, a snapshot, or a rough estimate. The CRDC covers actual, documented disparities in school discipline policies and practices across the country. So every data point represents a life impacted, a future potentially diverted or derailed, and a young man or woman who was placed at increased likelihood of becoming involved with the criminal justice system.
Now, effective school discipline will always be a necessity. Schools must support children as they learn expectations about behavior and conduct. But a routine school discipline infraction should land a student in a principal’s office – not in a police precinct. That’s why the two of us traveled to Baltimore in January to announce a sweeping new set of guidelines aimed at reducing our overreliance on zero-tolerance discipline policies that transform some schools from doorways of opportunity into gateways to the criminal justice system. It’s why we’re working, through our Supportive School Discipline Initiative, to disrupt this so-called “school-to-prison pipeline.” And it’s why this Administration as a whole – led by the Departments of Justice and Education – is committed to doing everything we can to ensure that, as President Obama said in December, “every striving, hardworking, optimistic kid in America has the same incredible chance that this country gave [each of us]” – both in the classroom and far beyond.
As we speak, the Justice Department’s Civil Rights Division is collaborating with school districts and states to ensure that they’re meeting their obligations under federal civil rights laws. Six decades after Brown v. Board of Education, we’re working tirelessly – in hundreds of individual cases – to dismantle racial segregation wherever it’s found. We’re fighting to make sure that students with disabilities are appropriately accommodated, not denied school admission, and provided with the same opportunities to communicate, to learn, and to grow as every one of their peers. We’re vigorously enforcing laws that require school districts to support English Language Learners so they can overcome language barriers and meaningfully participate in school. And we’re striving to reduce abusive behavior against and among students of every age and grade level – by working to protect them from threats, derogatory language, physical violence, and other forms of discriminatory harassment and bullying.
Going forward, our efforts to promote school safety and effective discipline will be guided and informed by the Comprehensive School Safety Initiative – which is managed by the National Institute of Justice, and will allocate $75 million in funding for large-scale research into the causes of school violence, the most effective ways to address it, and the steps we can take to create a comprehensive, data-driven school safety model that can be tailored to individual needs.
This important new initiative will complement work that’s already underway through the Department’s landmark Defending Childhood Initiative and the National Forum on Youth Violence Prevention – which are rallying federal leaders, state officials, educators, private organizations, and community groups to better understand, address, and prevent young people's exposure to violence. Across the country, these and other broad-based programs are showing tremendous promise in improving our response to this pernicious phenomenon. And thanks to the innovative, Administration-wide “My Brother’s Keeper” initiative that President Obama announced last month, we’re poised to rally a broader coalition to do even more.
It’s no exaggeration to say that America’s future will be defined, and our progress determined, by the doors we open and the support we offer to our nation’s young people. From bolstering early childhood education to promoting youth literacy; from increasing mentorship to reducing juvenile violence; from extending access to social services to expanding employment opportunities – I’m convinced that, so long as we work together, we’ll be able to empower millions of students to pursue their dreams, to achieve their full potential, and to forge the better, brighter futures they deserve.
Now, I recognize – as you do – that achieving these goals will not be easy, and progress will not take hold overnight. But with the continued dedication of this Administration and its partners; with the engagement of advocates across the country; and with the passion of young people like the students here at J.O. Wilson – I am confident in where this work will take us. I thank you all, once again, for the opportunity to be here today. And I look forward to all that we will accomplish together.
ISIDRO LEON-YORK AWARDED 2013 IQBAL MASIH AWARD FOR ELIMINATION OF CHILD LABOR
FROM: U.S. LABOR DEPARTMENT
Nicaraguan coffee producer Isidro León-York awarded US Labor Department's
Iqbal Masih Award for the Elimination of Child Labor
ASHINGTON — Carol Pier, deputy undersecretary for the U.S. Department of Labor's Bureau of International Labor Affairs, announced Isidro León-York of Nicaragua as the recipient of the department's 2013 Iqbal Masih Award for the Elimination of Child Labor. U.S. Ambassador to Nicaragua Phyllis M. Powers presented the award to Mr. León-York at a ceremony today in Managua.
U.S. Secretary of Labor Thomas E. Perez selected León-York in recognition of his efforts to eliminate child labor from the production of coffee, which includes the prohibition of child labor on his own coffee farm that employs over 760 workers. León-York uses a portion of his farm's profits to fund a school for the children of workers there and has committed to provide his workers and their families with decent wages, food and health care. He is also helping expand a public-private partnership called Educational Bridges, which provides education to children of coffee workers and prevents child labor during the coffee harvests.
León-York has been a prominent advocate for child labor reduction efforts in Nicaragua's coffee sector, supporting a network of coffee growers and seeking to gain commitments from other coffee plantation owners to eliminate the use of child labor in the sector. León-York is the first award recipient to come from the private sector.
In announcing the award, Pier said, "Every day, millions of children around the world toil under dangerous and exploitative conditions, producing agricultural goods for the marketplace. Isidro León-York exemplifies the positive role that the private sector can play combatting harmful child labor. This award is a tribute to all those private-sector leaders, who like Mr. León-York, have embraced this role as a better way of doing business."
Congress established the Iqbal Masih Award for the Elimination of Child Labor in 2009 to recognize exceptional efforts by an individual, company, organization or national government to end the worst forms of child labor.
This non-monetary award honors the spirit of Iqbal Masih, a Pakistani child sold into bonded labor as a carpet weaver at age four. He escaped his servitude and became an outspoken advocate for children's rights, drawing international attention in his fight against child labor. Masih was killed in Pakistan at age 12 in 1995.
Since 1995, the Labor Department has supported global efforts to combat exploitative child labor internationally.
Nicaraguan coffee producer Isidro León-York awarded US Labor Department's
Iqbal Masih Award for the Elimination of Child Labor
ASHINGTON — Carol Pier, deputy undersecretary for the U.S. Department of Labor's Bureau of International Labor Affairs, announced Isidro León-York of Nicaragua as the recipient of the department's 2013 Iqbal Masih Award for the Elimination of Child Labor. U.S. Ambassador to Nicaragua Phyllis M. Powers presented the award to Mr. León-York at a ceremony today in Managua.
U.S. Secretary of Labor Thomas E. Perez selected León-York in recognition of his efforts to eliminate child labor from the production of coffee, which includes the prohibition of child labor on his own coffee farm that employs over 760 workers. León-York uses a portion of his farm's profits to fund a school for the children of workers there and has committed to provide his workers and their families with decent wages, food and health care. He is also helping expand a public-private partnership called Educational Bridges, which provides education to children of coffee workers and prevents child labor during the coffee harvests.
León-York has been a prominent advocate for child labor reduction efforts in Nicaragua's coffee sector, supporting a network of coffee growers and seeking to gain commitments from other coffee plantation owners to eliminate the use of child labor in the sector. León-York is the first award recipient to come from the private sector.
In announcing the award, Pier said, "Every day, millions of children around the world toil under dangerous and exploitative conditions, producing agricultural goods for the marketplace. Isidro León-York exemplifies the positive role that the private sector can play combatting harmful child labor. This award is a tribute to all those private-sector leaders, who like Mr. León-York, have embraced this role as a better way of doing business."
Congress established the Iqbal Masih Award for the Elimination of Child Labor in 2009 to recognize exceptional efforts by an individual, company, organization or national government to end the worst forms of child labor.
This non-monetary award honors the spirit of Iqbal Masih, a Pakistani child sold into bonded labor as a carpet weaver at age four. He escaped his servitude and became an outspoken advocate for children's rights, drawing international attention in his fight against child labor. Masih was killed in Pakistan at age 12 in 1995.
Since 1995, the Labor Department has supported global efforts to combat exploitative child labor internationally.
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING MARCH 21, 2014
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT
SEASONALLY ADJUSTED DATA
In the week ending March 15, the advance figure for seasonally adjusted initial claims was 320,000, an increase of 5,000 from the previous week's unrevised figure of 315,000. The 4-week moving average was 327,000, a decrease of 3,500 from the previous week's unrevised average of 330,500.
In the week ending March 15, the advance figure for seasonally adjusted initial claims was 320,000, an increase of 5,000 from the previous week's unrevised figure of 315,000. The 4-week moving average was 327,000, a decrease of 3,500 from the previous week's unrevised average of 330,500.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending March 8, unchanged from the prior week's unrevised rate. The advance number for seasonally adjustedinsured unemployment during the week ending March 8 was 2,889,000, an increase of 41,000 from the preceding week's revised level of 2,848,000. The 4-week moving average was 2,897,250, a decrease of 16,750 from the preceding week's revised average of 2,914,000.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 285,316 in the week ending March 15, a decrease of 16,995 from the previous week. There were 300,951 initial claims in the comparable week in 2013.
The advance unadjusted insured unemployment rate was 2.5 percent during the week ending March 8, unchanged from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,247,226, a decrease of 30,757 from the preceding week. A year earlier, the rate was 2.7 percent and the volume was 3,461,493.
The total number of people claiming benefits in all programs for the week ending March 1 was 3,350,028, a decrease of 100,729 from the previous week. There were 5,369,007 persons claiming benefits in all programs in the comparable week in 2013.
No state was triggered "on" the Extended Benefits program during the week ending March 1.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,057 in the week ending March 8, a decrease of 102 from the prior week. There were 1,968 initial claims filed by newly discharged veterans, an increase of 59 from the preceding week.
There were 19,115 former Federal civilian employees claiming UI benefits for the week ending March 1, a decrease of 1,697 from the previous week. Newly discharged veterans claiming benefits totaled 27,878, a decrease of 1,597 from the prior week.
The highest insured unemployment rates in the week ending March 1 were in Alaska (5.5), New Jersey (4.0), Rhode Island (4.0), Connecticut (3.9), Connecticut (3.8), California (3.7), Montana (3.6), Wisconsin (3.5), Illinois (3.4), and Massachusetts (3.4).
The largest increases in initial claims for the week ending March 8 were in Pennsylvania (+1,961), Washington (+982), Wisconsin (+830), Arkansas (+745), and Illinois (+590), while the largest decreases were in New York (-17,548), Michigan (-1,971), California (-1,262), Connecticut (-1,079), and New Hampshire (-783).
U.S. DEFENSE DEPARTMENT CONTRACTS FOR MARCH 20, 2014
FROM: U.S. DEFENSE DEPARTMENT
CONTRACTS
ARMY
AECOM Technical Services Inc., Los Angeles, Calif., (W912DQ-14-D-3000); CH2M Hill Constructors Inc., Englewood, Colo., (W912DQ-14-D-3001); Environmental Chemical Corp., Burlingame, Calif., (W912DQ-14-D-3002); SAIC-CDM Solutions LLC, Denver, Colo. (W912DQ-14-D-3003); Sevenson Environmental Services Inc., Niagara Falls, N.Y., (W912DQ-14-D-3004); and Shaw Environmental & Infrastructure Inc., Centennial, Colo., (W912DQ-14-D-3005) were awarded a $120,000,000 multiple-award, indefinite-delivery/indefinite-quantity task order contract for environmental remediation and long term response action for the Army Corps of Engineers, Northwestern Division, and the Environmental Protection Agency Region 2. Funding and performance location will be determined with each order. Estimated completion date is March 19, 2019. Bids were solicited via the Internet with 11 received. Army Corps of Engineers, Kansas City, Mo., is the contracting activity.
General Dynamics Ordnance and Tactical Systems Inc, St. Petersburg, Fla., was awarded a $20,575,038 modification (P00009) to contract W52P1J-12-C-0026 to procure M1002 new production cartridges for 120mm tank training ammunition. Fiscal 2012 other procurement funds in the amount of $93,147; fiscal 2013 other procurement funds in the amount of $292,299 and fiscal 2014 other procurement funds in the amount of $20,189,592 were obligated at the time of the award. Estimated completion date is May 31, 2016. Work will be performed in St. Petersburg, Fla. Army Contracting Command, Rock Island Arsenal, Ill., is the contracting activity.
Alliant Techsystems Operations LLC, Plymouth, Minn. was awarded a $19,225,386 modification (P00015) to contract W52P1J-12-C-0027 to procure M1002 new production cartridges for 120mm tank training ammunition. Fiscal 2014 other procurement funds in the amount of $19,225,386 were obligated at the time of the award. Estimated completion date is Jan 31, 2016. Work will be performed in Plymouth, Minn. Army Contracting Command is the contracting activity.
General Atomics Aeronautical Systems Inc., Poway, Calif., was awarded a $10,523,125 modification (P00078) to contract W58RGZ-10-C-0068 for five remote ground data terminals, five local ground data terminals, and initial related spares for the Gray Eagle Unmanned Air Vehicle System. Fiscal 2012 other procurement funds in the amount of $10,523,125 were obligated at the time of the award. Estimated completion date is Nov. 30, 2018. Work will be performed in Poway, Calif. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.
DEFENSE LOGISTICS AGENCY
Allergan USA Inc., Irvine, Calif., has been awarded a maximum $37,242,251 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for various pharmaceutical surge, re-supply, and sustainment products. This is a one-year base contract with seven one-year option periods. This is a competitive acquisition, and fourteen offers were received. Location of performance is California with a March 20, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 warstopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPME2D0-14-D-0004).
NAVY
Raytheon Co., El Segundo, Calif., is being awarded $23,651,848 for cost-plus-fixed-fee delivery order 0052 against a previously issued basic ordering agreement (N00019-10-G-0006) for the procurement of 63 ECP-6279 retrofit kits in support of F/A-18 E/F and EA-18G aircraft. Work will be performed in Forest, Miss. (80 percent) and El Segundo, Calif. (20 percent), and is expected to be completed in August 2016. Fiscal 2014 aircraft procurement, Navy funds in the amount of $23,651,848 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.
Centurum Information Technology Inc., Marlton, N.J., is being awarded an $18,158,832 cost-plus-fixed-fee contract to provide depot-level repair and restoration support to include fabrication, manufacturing, re-manufacturing, restoration, repair, overhaul, and calibration involving electro-mechanical and mechanical units both ground and airborne, assemblies, subassemblies, and test equipment. Support will also include worldwide technical support to the fleet, shore facilities, and government agencies. This two-year contract includes a one-year option period which, if exercised, would bring the cumulative value of this contract to an estimated $27,618,466. Work will be performed in San Diego, Calif., and work is expected to be completed March 19, 2016. Fiscal 2014 operations and maintenance, Navy funds in the amount of $100,000 will be obligated at the time of award, and will not expire at the end of the current fiscal year. This contract was competitively procured with open competition via the Space and Naval Warfare Systems Center e-Commerce website and the Federal Business Opportunities website, with four offers received with one selected for award. The Space and Naval Warfare Systems Center Pacific, San Diego, Calif., is the contracting activity (N66001-14-D-0041).
Bulltrack-Watts A Joint Venture*, Marysville, Calif., is being awarded $13,349,723 for firm-fixed-price task order KB01under a previously awarded multiple award construction contract (N40192-10-D-2801) for the design and construction of a dehumidified supply storage facility at Polaris Point, Naval Base, Guam. The warehouse shall also include support areas for office spaces, rest rooms and utility rooms. The structural system for the facility shall be a reinforced concrete structure with overhead roll-up doors and man-doors providing access into the warehouse. The work will also provide paved driveways around the warehouse, new parking spaces and secure bicycle racks, stormwater collection and management system, and mechanical systems to include warehouse dehumidification, administrative area air conditioning, and general ventilation. The task order also contains one unexercised option, which if exercised would increase cumulative task order value to $13,650,996. Work will be performed in Santa Rita, Guam, and is expected to be completed by March 2016. Fiscal 2010 and 2014 military construction, Navy contract funds in the amount of $13,349,723 are being obligated on this award and will not expire at the end of the current fiscal year. Four proposals were received for this task order. The Naval Facilities Engineering Command, Pacific, Joint Base Pearl Harbor Hawaii, Hawaii, is the contracting activity.
The Boeing Co., St. Louis, Mo., is being awarded $9,650,433 for firm-fixed-price delivery order 0051 against a previously issued basic ordering agreement (N68335-10-G-0012) for the procurement of major structural repair and maintenance equipment for the F/A-18E/F and EA-18G aircraft. Work will be performed in St. Louis, Mo., and is expected to be completed in September 2016. Fiscal 2013 aircraft procurement, Navy funds in the amount of $9,650,433 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Lakehurst, N.J., is the contracting activity.
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded an $8,500,000 modification to a previously awarded cost-plus-incentive-fee contract (N00019-12-C-0004) to procure additional long lead-time efforts required for the incorporation of a drag chute in the Joint Strike Fighter conventional take off and landing air systems for the government of Norway. Work will be performed in Fort Worth, Texas (55 percent); El Segundo, Calif. (15 percent); Warton, United Kingdom (10 percent); Orlando, Fla. (5 percent); Nashua, N.H. (5 percent); Baltimore, Md. (5 percent); and Cameri, Italy (5 percent), and is expected to be completed in November 2015. International partner funds in the amount of $8,500,000 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.
Michael Baker Jr., Inc., Virginia Beach, Va., is being awarded $7,603,530 for firm-fixed-price task order 0048 under a previously awarded indefinite-delivery/indefinite-quantity contract (N62470-10-D-3000) for leak detection testing for Navy, Marine Corps and Defense Logistics Agency Energy Facilities. The work to be performed provides for services for environmental and engineering assessments at Department of Defense fuel systems including preparing program management documentation, environmental compliance reports and plans, release detection, optimization, and pollution prevention reports in support of DLA Energy fuel facilities, and other facilities of interest to the government at various worldwide locations and in accordance with applicable regulatory guidance. Work will be performed at various Navy and DoD installations worldwide, and is expected to be completed by March 2016. Fiscal 2014 Navy working capital contract funds in the amount of $7,603,530 are being obligated on this award and will not expire at the end of the current fiscal year. One proposal was received for this task order. The Naval Facilities Engineering Command, Atlantic, Norfolk, Va., is the contracting activity.
QinetiQ North America, Waltham, Mass., is being awarded a $6,779,411 modification to previously awarded contract (N00174-13-D-0007) for the procurement of Man Transportable Robotic System (MTRS) MK2 post-production support. The MTRS MK2 provides military explosive ordnance disposal technicians with a man transportable capability to remotely perform reconnaissance. Work will be performed in Waltham, Mass., and is expected to be completed by July 2016. No funds are being obligated at the time of award and contract funds will not expire at the end of the current fiscal year. The Naval Surface Warfare Center Indian Head Explosive Ordnance Disposal Technology Division, Indian Head, Md., is the contracting activity.
Viasat Inc., Carlsbad, Calif., is being awarded a $6,707,025 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the procurement of spares, repairs and satellite support for the ArcLight Mobile Satellite Communication System in support of special projects aircraft and the EP-3 aircraft. The ArcLight Mobile Satellite Communication System is a high frequency data link for airborne applications that provides a means to transmit data between aircraft, command posts and other military organizations that have access to the system. Work will be performed in Carlsbad, Calif., and is expected to be completed by March 2019. Fiscal 2014 operations and maintenance, Navy funding in the amount of $12,000 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with FAR 6.302-1(a)(2)(iii) - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Surface Warfare Center, Crane, Ind., is the contracting activity (N00164-14-D-WT25).
WASHINGTON HEADQUARTERS SERVICES
HSU Construction, Rockville, Md., (HQ0034-14-D-0004); Athena Construction Group, Dumfries, Va., (HQ0034-14-D-0005); APC Construction, New Orleans, La., (HQ0034-14-D-0006); Cherokee CRC, LLC., Tulsa, Okla., (HQ0034-14-D-0007); FEI Construction Co., Washington, D.C., (HQ0034-14-D-0008), are each being awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity contract for design-build or design-bid-build general building construction for various locations under the cognizance of the Washington Headquarters Services area of responsibility. The aggregate not-to-exceed amount for these multiple award contracts combined is $60,000,000. The five companies will have the opportunity to bid on each individual task order as they are issued. Funding and performance location will be determined with each order. Work will be performed in the WHS area of responsibility. The expected completion date is March 19, 2019. Fiscal 2014 Pentagon Reservation Maintenance Revolving Fund contract funds in the amount of $10,000 are being obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured via FedBizOpps, with 12 proposals received. Washington Headquarters Services is the contracting activity.
*Small Business
U.S. TUBERCULOSIS TRENDS
FROM CENTERS FOR DISEASE CONTROL AND PREVENTION
1. Trends in Tuberculosis — United States, 2013
Data indicate that cases and rates of TB disease continue to fall in the U.S.; however, a higher burden in some populations – such as foreign-born individuals and racial/ethnic minorities – keeps TB elimination out of reach. Preliminary data from the CDC National TB Surveillance System show a total of 9,588 cases were reported in the U.S. in 2013, marking a 4.2 percent decline in the 2012 rate (from 3.2 to 3.0 cases per 100,000 population). Despite overall progress, the TB rate for foreign-born individuals is 13 times higher than among individuals born in the U.S., and the proportion of TB cases in the foreign-born group continues to increase. Racial disparities persist. Hispanics, blacks and Asians face higher TB rates—7, 7 and 26 times higher, respectively—than whites. Persons infected with HIV and people who are homeless are also especially vulnerable to TB. Although the proportion of drug-resistant cases remains relatively small, drug resistant TB is a concern because it is difficult and costly to treat and more often fatal. In 2012, multidrug-resistant TB accounted for 1.2 percent of cases (86 cases). Two cases of extensively-drug-resistant TB were reported in 2013. The authors note that eliminating TB in the U.S. requires continuing to address TB in affected populations and improvements in awareness, testing and treatment of TB disease.
2. Implementation of New TB Screening Requirements for U.S.-Bound Immigrants and Refugees — 2007–2014
Updated CDC recommendations for overseas tuberculosis screening of immigrants and refugees has resulted in better diagnosis of TB before individuals arrive in the United States. CDC reports the completion of implementation of new tuberculosis screening and treatment requirements for US-bound immigrants and refugees. Implementation of these requirements has resulted in twice as many cases of tuberculosis being diagnosed and treated before immigrants and refugees arrive in the U.S. compared with the previous screening program. Since the new requirements were implemented, reports of cases of foreign-born tuberculosis have declined. In addition, the increase in persons diagnosed and treated overseas is projected to result in a savings of more than $15 million in US health care costs.
1. Trends in Tuberculosis — United States, 2013
Data indicate that cases and rates of TB disease continue to fall in the U.S.; however, a higher burden in some populations – such as foreign-born individuals and racial/ethnic minorities – keeps TB elimination out of reach. Preliminary data from the CDC National TB Surveillance System show a total of 9,588 cases were reported in the U.S. in 2013, marking a 4.2 percent decline in the 2012 rate (from 3.2 to 3.0 cases per 100,000 population). Despite overall progress, the TB rate for foreign-born individuals is 13 times higher than among individuals born in the U.S., and the proportion of TB cases in the foreign-born group continues to increase. Racial disparities persist. Hispanics, blacks and Asians face higher TB rates—7, 7 and 26 times higher, respectively—than whites. Persons infected with HIV and people who are homeless are also especially vulnerable to TB. Although the proportion of drug-resistant cases remains relatively small, drug resistant TB is a concern because it is difficult and costly to treat and more often fatal. In 2012, multidrug-resistant TB accounted for 1.2 percent of cases (86 cases). Two cases of extensively-drug-resistant TB were reported in 2013. The authors note that eliminating TB in the U.S. requires continuing to address TB in affected populations and improvements in awareness, testing and treatment of TB disease.
2. Implementation of New TB Screening Requirements for U.S.-Bound Immigrants and Refugees — 2007–2014
Updated CDC recommendations for overseas tuberculosis screening of immigrants and refugees has resulted in better diagnosis of TB before individuals arrive in the United States. CDC reports the completion of implementation of new tuberculosis screening and treatment requirements for US-bound immigrants and refugees. Implementation of these requirements has resulted in twice as many cases of tuberculosis being diagnosed and treated before immigrants and refugees arrive in the U.S. compared with the previous screening program. Since the new requirements were implemented, reports of cases of foreign-born tuberculosis have declined. In addition, the increase in persons diagnosed and treated overseas is projected to result in a savings of more than $15 million in US health care costs.
DOJ OFFICIAL SPEAKS AT GLOBAL ANTI-CORRUPTION COMPLIANCE CONGRESS
FROM: U.S. JUSTICE DEPARTMENT
Acting Assistant Attorney General Mythili Raman Speaks at the Global Anti-corruption Compliance Congress
WASHINGTON, D.C. ~ Thursday, March 20, 2014
Remarks As Prepared for Delivery
I was honored to speak at this conference last year, and I am delighted to be here for a second year in a row.
When I spoke with you last year, I told you that fighting global corruption was, and would continue to be, a core priority of the Department of Justice. That remains as true now as it was a year ago. But now, more than ever, we are fighting global corruption on multiple fronts and in real time. We are going after corrupt individuals and corporations using all of the investigative and legal tools at our disposal. We are making clear to companies the benefits of cooperation and transparently identifying the reasons behind our corporate resolutions. We are seeking criminal and civil forfeiture to seize proceeds of corruption. And we are enlisting even more support from foreign law enforcement. This multi-faceted approach has made a difference, and it has markedly advanced our efforts to root out, punish and deter foreign corruption.
Our fight against foreign corruption is critical for so many reasons. The corrosive effects of transnational corruption are felt not just overseas, but also here in the United States. Although we may not experience as acutely, or as personally, some of the consequences of foreign bribery – such as hospitals or roads that go unbuilt because infrastructure funds are siphoned off by a corrupt official – the negative effects of foreign corruption invariably and directly are felt here at home.
For one, given the global nature of our economy, when corruption takes hold overseas, American companies are harmed. They are denied the ability to compete in a fair and transparent marketplace. Instead of being rewarded for their efficiency, innovation and honest business practices, U.S. companies suffer at the hands of corrupt governments and lose out to corrupt competitors.
But, foreign corruption also creates another very real danger for the United States that I think bears emphasis. Very simply, corrupt countries are less safe. When public officials are more interested in their own personal wealth than the prosperity of the citizens they are supposed to serve, people lose faith in political institutions; and, when there is no respect for the rule of law, civilized society falters and opportunities are created for organized criminal groups and terrorist networks. As the head of the Criminal Division, I am acutely aware of the opportunities corrupt regimes provide for criminals of all stripes, and the very real dangers they present for us in the United States. Indeed, I know from the work that the Criminal Division does – from human trafficking, to cybercrime, to child exploitation and narcotics trafficking – that transnational criminal networks rely on international corruption to gain an advantage and evade the justice system. They often choose to operate in countries governed by corrupt officials because they know that those officials are willing to turn a blind eye to their crimes. Corrupt regimes can be bought off by criminal syndicates; they are less likely to cooperate with U.S. law enforcement; and they create safe havens for organized criminals by giving them a secure base from which they can orchestrate massive criminal activity.
For all of these reasons, fighting foreign corruption is not just a choice we have made; it is a necessity. By now, the Justice Department’s commitment to fighting foreign corruption is clear – not because I am telling you so or because my predecessors have, but because our record of successful foreign bribery prosecutions speaks for itself. In just the last year, since the beginning of 2013, the department has entered into nine corporate resolutions in foreign bribery cases – including three of the top ten FCPA resolutions ever reached. Together, those nine resolutions resulted in over $730 million in criminal penalties and forfeitures. We have also this past year announced charges against 18 individuals – from CEOs of companies, to general counsels, to brokers and traders at financial institutions. And, we have launched and continued other major investigations that touch numerous industries and span the globe.
These efforts and these successes are the product of the skill, hard work and determination of the talented prosecutors in our Fraud Section’s FCPA Unit, working in tandem with federal prosecutors across the country at many of the 94 U.S. Attorney’s Offices. Together, with our partners at the FBI, the Department of Homeland Security, IRS-Criminal Investigations, the SEC and our foreign law enforcement and regulatory colleagues, we are pursuing more cases than ever before.
Notably, we also identified in the FCPA Resource Guide several instances in which we declined to prosecute companies that had detected corrupt conduct, voluntarily disclosed it and fully remediated the problem. Our decision not to prosecute in those instances demonstrates that strong compliance programs and efforts to prevent corrupt conduct will be recognized and credited. However, when companies fail to implement or enforce robust compliance programs, and they then violate the law, we will not hesitate to hold them – and their executives – to account.
This was highlighted just yesterday when Marubeni Corporation, a Japanese trading company, pleaded guilty in federal district court in Connecticut and agreed to pay an $88 million fine in connection with its involvement in a scheme to pay bribes to Indonesian officials in exchange for assistance in securing a valuable contract for the company and its consortium partner to provide power-related services in Indonesia. This is one of only a handful of parent-level guilty pleas in an FCPA prosecution by the department. And the resolution papers make clear why. As the resolution papers set out, the criminal conduct was extremely serious; not surprisingly, Marubeni did not have an effective compliance and ethics program at the time of the offense; it did not voluntarily disclose the conduct at issue to the department; it failed to properly remediate the conduct; and it refused to cooperate with the department in its investigation even though Marubeni was under a deferred prosecution agreement with the Criminal Division in connection with other FCPA violations. Under those circumstances, a guilty plea by the parent company was the fair and appropriate result – a result that should cause other companies to pay closer attention to the misconduct of their employees, the seriousness with which they try to solve a foreign bribery problem when they detect one, and their decision whether or not to cooperate with the government.
In addition to the corporate resolutions we entered into last year, since the beginning of 2013, the department has announced charges against 18 individuals in connection with their participation in foreign bribery schemes or related criminal conduct – charges that resulted from least seven separate investigations. This upward trend in the prosecution of individuals is an important one.
We have been successful in our efforts to prosecute individuals in part because we are using all of the law enforcement techniques that are at our disposal. Our commitment to aggressively utilizing all our tools was vividly demonstrated in our prosecution of a French citizen, Frederic Cilins, who pleaded guilty just last week. Cilins admitted to obstructing an investigation into whether a mining company and its affiliates, for whom Cilins had worked, paid bribes to win lucrative mining rights in the Republic of Guinea. The evidence against Cilins was, in large part, obtained through the use of a cooperating witness, a wiretap, body wires and surveillance. Cilins was caught on tape by the FBI agreeing to pay substantial sums of money to induce a witness to the bribery scheme to give Cilins documents to destroy that Cilins knew had been requested by the FBI. Cilins was recorded telling the witness, who, unbeknownst to Cilins, was cooperating with the FBI, to “destroy everything, everything, everything,” that “we need to urgently, urgently, urgently destroy all of this” and even that “it’s necessary to find a place to destroy, destroy them completely; to burn them.”
As the Cilins prosecution and guilty plea demonstrate, our FCPA investigations are no longer dependent on our ability to look back at misconduct and to piece together what may have happened years before. Rather, we are working in real time to find and stop ongoing corrupt activity. Prosecutions like that of Cilins means that those who are committing acts of foreign bribery right now should be acutely aware that the middleman they are engaging could be an undercover agent, that the telephone calls they are making may be being recorded pursuant to a court order, and that the public official they are bribing may be cooperating with U.S. law enforcement.
The Cilins case also illustrates that we are attacking foreign corruption by charging individuals and companies using a wide range of federal criminal statutes. We are using the FCPA, of course, but we are also charging, where appropriate, wire fraud, Travel Act violations, money laundering and obstruction of justice.
And, we are not only prosecuting the bribe givers, we are prosecuting the bribe takers as well. As an example, in May of last year, we charged a senior official from Venezuela’s state-owned economic development bank with accepting over $5 million in bribes from a U.S. broker-dealer to which she had agreed to direct trading business, and with laundering her bribe money through U.S. banks. In November, that official pleaded guilty to several charges, including money laundering and Travel Act violations, and she agreed to forfeit the proceeds of her criminal conduct. This comprehensive, flexible and nimble approach to fighting foreign corruption ensures that all who are involved in the criminal conduct are held to account, whether the FCPA covers them or not.
Aside from criminal prosecutions, we are using our civil authorities to strip corrupt officials of the proceeds of their conduct – and thus depriving them of the very profits that are driving the corrupt conduct in the first place. Several years ago, the Department of Justice created the Kleptocracy Asset Recovery Initiative to recover corruptly obtained monies that are hidden across the globe. Through the Kleptocracy Initiative, prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section (or AFMLS) work to identify the proceeds of foreign corruption, seize them, and, where possible, repatriate the recouped funds for the benefit of the people harmed by the corrupt officials.
Just a few weeks ago, as the world was transfixed watching the events in Ukraine unfold, the U.S. government quickly deployed to Ukraine an interagency team to work with Ukrainian authorities and other international partners to help trace and freeze governmental assets that may have been stolen from Ukraine. The team included prosecutors from AFMLS and agents with the FBI – the Justice Department’s experts in kleptocracy, corruption, and financial analysis – who were tasked with advising Ukrainian officials on document recovery, asset tracing and U.S. legal procedures related to the recovery of assets. That U.S. team is also partnering with other foreign governments that have sent teams to Kyiv in order to assist, including a team from the United Kingdom. To me, the fact that anti-corruption prosecutors and law enforcement agents were part of the immediate and visible U.S. and global response to the unfolding events in Ukraine made clear, if it wasn’t already, that having a robust capacity within the Justice Department to fight foreign corruption matters.
At just about the same time as those prosecutors and agents were deployed to Ukraine two weeks ago, we announced the largest kleptocracy forfeiture action in the department’s history against property owned by former Nigerian dictator General Sani Abacha, one of the most notorious kleptocrats in memory, who embezzled billions from the people of Nigeria while millions lived in poverty. We froze more than $450 million of his corrupt proceeds, and filed a civil forfeiture complaint seeking more than $550 million in ill-gotten riches, that Abacha and his conspirators had hidden around the world – including in bank accounts and investment portfolios in Bailiwick of Jersey, France and the United Kingdom. Those actions – which were taken with the full cooperation of law enforcement authorities around the world who assisted us in enforcing U.S. arrest warrants for the assets – sent a powerful message: that we are equipped and determined to confiscate the ill-gotten riches of corrupt leaders who drain the resources of their countries.
Whether through our FCPA prosecutors in our Fraud Section, our kleptocracy unit at AFMLS, or our rule of law programs that allow us to train our counterparts on anti-bribery efforts, our fight against foreign bribery is built into the structure, function and priorities of the Criminal Division and the Justice Department.
Today happens to be my last day as head of the Criminal Division. As I prepare to leave, I am certain – just as my predecessors were – that my successors will carry on that fight. And, I know that to be true because fighting global corruption has become, over several years, a baseline imperative for law enforcement. It is as much a part of the fabric of the department’s enforcement efforts as is fighting violent crime, white collar crime, and organized crime. And, for good reason: it matters.
I am so proud that the Criminal Division has been at the forefront of the fight against international corruption. We have devoted considerable resources to this critical mission and we have seen tangible benefits from our hard work. But the fight is not over. We intend to keep up our multi-front assault by using the latest investigative techniques, utilizing our full range of statutes, seeking criminal and civil forfeiture and building on our record of strong collaboration with our foreign counterparts. In this way, we will hold the perpetrators of corruption to account and continue to advance our efforts to stamp out corruption across the globe.
It has been a privilege to speak with you once again. Thank you so much for having me here.
Acting Assistant Attorney General Mythili Raman Speaks at the Global Anti-corruption Compliance Congress
WASHINGTON, D.C. ~ Thursday, March 20, 2014
Remarks As Prepared for Delivery
I was honored to speak at this conference last year, and I am delighted to be here for a second year in a row.
When I spoke with you last year, I told you that fighting global corruption was, and would continue to be, a core priority of the Department of Justice. That remains as true now as it was a year ago. But now, more than ever, we are fighting global corruption on multiple fronts and in real time. We are going after corrupt individuals and corporations using all of the investigative and legal tools at our disposal. We are making clear to companies the benefits of cooperation and transparently identifying the reasons behind our corporate resolutions. We are seeking criminal and civil forfeiture to seize proceeds of corruption. And we are enlisting even more support from foreign law enforcement. This multi-faceted approach has made a difference, and it has markedly advanced our efforts to root out, punish and deter foreign corruption.
Our fight against foreign corruption is critical for so many reasons. The corrosive effects of transnational corruption are felt not just overseas, but also here in the United States. Although we may not experience as acutely, or as personally, some of the consequences of foreign bribery – such as hospitals or roads that go unbuilt because infrastructure funds are siphoned off by a corrupt official – the negative effects of foreign corruption invariably and directly are felt here at home.
For one, given the global nature of our economy, when corruption takes hold overseas, American companies are harmed. They are denied the ability to compete in a fair and transparent marketplace. Instead of being rewarded for their efficiency, innovation and honest business practices, U.S. companies suffer at the hands of corrupt governments and lose out to corrupt competitors.
But, foreign corruption also creates another very real danger for the United States that I think bears emphasis. Very simply, corrupt countries are less safe. When public officials are more interested in their own personal wealth than the prosperity of the citizens they are supposed to serve, people lose faith in political institutions; and, when there is no respect for the rule of law, civilized society falters and opportunities are created for organized criminal groups and terrorist networks. As the head of the Criminal Division, I am acutely aware of the opportunities corrupt regimes provide for criminals of all stripes, and the very real dangers they present for us in the United States. Indeed, I know from the work that the Criminal Division does – from human trafficking, to cybercrime, to child exploitation and narcotics trafficking – that transnational criminal networks rely on international corruption to gain an advantage and evade the justice system. They often choose to operate in countries governed by corrupt officials because they know that those officials are willing to turn a blind eye to their crimes. Corrupt regimes can be bought off by criminal syndicates; they are less likely to cooperate with U.S. law enforcement; and they create safe havens for organized criminals by giving them a secure base from which they can orchestrate massive criminal activity.
For all of these reasons, fighting foreign corruption is not just a choice we have made; it is a necessity. By now, the Justice Department’s commitment to fighting foreign corruption is clear – not because I am telling you so or because my predecessors have, but because our record of successful foreign bribery prosecutions speaks for itself. In just the last year, since the beginning of 2013, the department has entered into nine corporate resolutions in foreign bribery cases – including three of the top ten FCPA resolutions ever reached. Together, those nine resolutions resulted in over $730 million in criminal penalties and forfeitures. We have also this past year announced charges against 18 individuals – from CEOs of companies, to general counsels, to brokers and traders at financial institutions. And, we have launched and continued other major investigations that touch numerous industries and span the globe.
These efforts and these successes are the product of the skill, hard work and determination of the talented prosecutors in our Fraud Section’s FCPA Unit, working in tandem with federal prosecutors across the country at many of the 94 U.S. Attorney’s Offices. Together, with our partners at the FBI, the Department of Homeland Security, IRS-Criminal Investigations, the SEC and our foreign law enforcement and regulatory colleagues, we are pursuing more cases than ever before.
Notably, we also identified in the FCPA Resource Guide several instances in which we declined to prosecute companies that had detected corrupt conduct, voluntarily disclosed it and fully remediated the problem. Our decision not to prosecute in those instances demonstrates that strong compliance programs and efforts to prevent corrupt conduct will be recognized and credited. However, when companies fail to implement or enforce robust compliance programs, and they then violate the law, we will not hesitate to hold them – and their executives – to account.
This was highlighted just yesterday when Marubeni Corporation, a Japanese trading company, pleaded guilty in federal district court in Connecticut and agreed to pay an $88 million fine in connection with its involvement in a scheme to pay bribes to Indonesian officials in exchange for assistance in securing a valuable contract for the company and its consortium partner to provide power-related services in Indonesia. This is one of only a handful of parent-level guilty pleas in an FCPA prosecution by the department. And the resolution papers make clear why. As the resolution papers set out, the criminal conduct was extremely serious; not surprisingly, Marubeni did not have an effective compliance and ethics program at the time of the offense; it did not voluntarily disclose the conduct at issue to the department; it failed to properly remediate the conduct; and it refused to cooperate with the department in its investigation even though Marubeni was under a deferred prosecution agreement with the Criminal Division in connection with other FCPA violations. Under those circumstances, a guilty plea by the parent company was the fair and appropriate result – a result that should cause other companies to pay closer attention to the misconduct of their employees, the seriousness with which they try to solve a foreign bribery problem when they detect one, and their decision whether or not to cooperate with the government.
In addition to the corporate resolutions we entered into last year, since the beginning of 2013, the department has announced charges against 18 individuals in connection with their participation in foreign bribery schemes or related criminal conduct – charges that resulted from least seven separate investigations. This upward trend in the prosecution of individuals is an important one.
We have been successful in our efforts to prosecute individuals in part because we are using all of the law enforcement techniques that are at our disposal. Our commitment to aggressively utilizing all our tools was vividly demonstrated in our prosecution of a French citizen, Frederic Cilins, who pleaded guilty just last week. Cilins admitted to obstructing an investigation into whether a mining company and its affiliates, for whom Cilins had worked, paid bribes to win lucrative mining rights in the Republic of Guinea. The evidence against Cilins was, in large part, obtained through the use of a cooperating witness, a wiretap, body wires and surveillance. Cilins was caught on tape by the FBI agreeing to pay substantial sums of money to induce a witness to the bribery scheme to give Cilins documents to destroy that Cilins knew had been requested by the FBI. Cilins was recorded telling the witness, who, unbeknownst to Cilins, was cooperating with the FBI, to “destroy everything, everything, everything,” that “we need to urgently, urgently, urgently destroy all of this” and even that “it’s necessary to find a place to destroy, destroy them completely; to burn them.”
As the Cilins prosecution and guilty plea demonstrate, our FCPA investigations are no longer dependent on our ability to look back at misconduct and to piece together what may have happened years before. Rather, we are working in real time to find and stop ongoing corrupt activity. Prosecutions like that of Cilins means that those who are committing acts of foreign bribery right now should be acutely aware that the middleman they are engaging could be an undercover agent, that the telephone calls they are making may be being recorded pursuant to a court order, and that the public official they are bribing may be cooperating with U.S. law enforcement.
The Cilins case also illustrates that we are attacking foreign corruption by charging individuals and companies using a wide range of federal criminal statutes. We are using the FCPA, of course, but we are also charging, where appropriate, wire fraud, Travel Act violations, money laundering and obstruction of justice.
And, we are not only prosecuting the bribe givers, we are prosecuting the bribe takers as well. As an example, in May of last year, we charged a senior official from Venezuela’s state-owned economic development bank with accepting over $5 million in bribes from a U.S. broker-dealer to which she had agreed to direct trading business, and with laundering her bribe money through U.S. banks. In November, that official pleaded guilty to several charges, including money laundering and Travel Act violations, and she agreed to forfeit the proceeds of her criminal conduct. This comprehensive, flexible and nimble approach to fighting foreign corruption ensures that all who are involved in the criminal conduct are held to account, whether the FCPA covers them or not.
Aside from criminal prosecutions, we are using our civil authorities to strip corrupt officials of the proceeds of their conduct – and thus depriving them of the very profits that are driving the corrupt conduct in the first place. Several years ago, the Department of Justice created the Kleptocracy Asset Recovery Initiative to recover corruptly obtained monies that are hidden across the globe. Through the Kleptocracy Initiative, prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section (or AFMLS) work to identify the proceeds of foreign corruption, seize them, and, where possible, repatriate the recouped funds for the benefit of the people harmed by the corrupt officials.
Just a few weeks ago, as the world was transfixed watching the events in Ukraine unfold, the U.S. government quickly deployed to Ukraine an interagency team to work with Ukrainian authorities and other international partners to help trace and freeze governmental assets that may have been stolen from Ukraine. The team included prosecutors from AFMLS and agents with the FBI – the Justice Department’s experts in kleptocracy, corruption, and financial analysis – who were tasked with advising Ukrainian officials on document recovery, asset tracing and U.S. legal procedures related to the recovery of assets. That U.S. team is also partnering with other foreign governments that have sent teams to Kyiv in order to assist, including a team from the United Kingdom. To me, the fact that anti-corruption prosecutors and law enforcement agents were part of the immediate and visible U.S. and global response to the unfolding events in Ukraine made clear, if it wasn’t already, that having a robust capacity within the Justice Department to fight foreign corruption matters.
At just about the same time as those prosecutors and agents were deployed to Ukraine two weeks ago, we announced the largest kleptocracy forfeiture action in the department’s history against property owned by former Nigerian dictator General Sani Abacha, one of the most notorious kleptocrats in memory, who embezzled billions from the people of Nigeria while millions lived in poverty. We froze more than $450 million of his corrupt proceeds, and filed a civil forfeiture complaint seeking more than $550 million in ill-gotten riches, that Abacha and his conspirators had hidden around the world – including in bank accounts and investment portfolios in Bailiwick of Jersey, France and the United Kingdom. Those actions – which were taken with the full cooperation of law enforcement authorities around the world who assisted us in enforcing U.S. arrest warrants for the assets – sent a powerful message: that we are equipped and determined to confiscate the ill-gotten riches of corrupt leaders who drain the resources of their countries.
Whether through our FCPA prosecutors in our Fraud Section, our kleptocracy unit at AFMLS, or our rule of law programs that allow us to train our counterparts on anti-bribery efforts, our fight against foreign bribery is built into the structure, function and priorities of the Criminal Division and the Justice Department.
Today happens to be my last day as head of the Criminal Division. As I prepare to leave, I am certain – just as my predecessors were – that my successors will carry on that fight. And, I know that to be true because fighting global corruption has become, over several years, a baseline imperative for law enforcement. It is as much a part of the fabric of the department’s enforcement efforts as is fighting violent crime, white collar crime, and organized crime. And, for good reason: it matters.
I am so proud that the Criminal Division has been at the forefront of the fight against international corruption. We have devoted considerable resources to this critical mission and we have seen tangible benefits from our hard work. But the fight is not over. We intend to keep up our multi-front assault by using the latest investigative techniques, utilizing our full range of statutes, seeking criminal and civil forfeiture and building on our record of strong collaboration with our foreign counterparts. In this way, we will hold the perpetrators of corruption to account and continue to advance our efforts to stamp out corruption across the globe.
It has been a privilege to speak with you once again. Thank you so much for having me here.
JAPANESE TRADING COMPANY PLEADS GUILTY TO FOREIGN BRIBERY CHARGES
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, March 19, 2014
Marubeni Corporation Agrees to Plead Guilty to Foreign Bribery Charges and to Pay an $88 Million Fine
Marubeni Corporation, a Japanese trading company involved in the handling of products and provision of services in a broad range of sectors around the world, including power generation, entered a plea of guilty today for its participation in a scheme to pay bribes to high-ranking government officials in Indonesia to secure a lucrative power project.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting U.S. Attorney Michael J. Gustafson of the District of Connecticut and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
“Marubeni pleaded guilty to engaging in a seven-year scheme to pay – and conceal – bribes to a high-ranking member of Parliament and other foreign officials in Indonesia,” said Acting Assistant Attorney General Raman. “The company refused to play by the rules, then refused to cooperate with the government’s investigation. Now Marubeni faces the consequences for its crooked business practices in Indonesia .”
“For several years, the Marubeni Corporation worked in concert with a Connecticut company, among others, to bribe Indonesian officials in order to secure a contract to provide power-related services in Indonesia,” said Acting U.S. Attorney Michael J. Gustafson. “Today’s guilty plea by Marubeni Corporation is an important reminder to the business community of the significant consequences of participating in schemes to bribe government officials, whether at home or abroad.”
“Companies that wish to do business in the United States or with U.S. companies must adhere to U.S. law, and that means bribery is unacceptable,” said Assistant Director in Charge Parlave. “The FBI continues to work with our international law enforcement partners as demonstrated in this case to ensure that companies are held accountable for their criminal conduct. I want to thank the agents, analysts and prosecutors who brought this case to today’s conclusion.”
Marubeni entered a plea of guilty to an eight-count criminal information filed today in the U.S. District Court for the District of Connecticut, charging Marubeni with one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and seven counts of violating the FCPA. Marubeni admitted its criminal conduct and has agreed to pay a criminal fine of $88 million, subject to the district court’s approval. Sentencing has been scheduled for May 15, 2014.
As part of the plea agreement, Marubeni has agreed to maintain and implement an enhanced global anti-corruption compliance program and to cooperate with the department’s ongoing investigation. The plea agreement cites Marubeni’s decision not to cooperate with the department’s investigation when given the opportunity to do so, its lack of an effective compliance and ethics program at the time of the offense, its failure to properly remediate and the lack of its voluntary disclosure of the conduct as some of the factors considered by the department in reaching an appropriate resolution.
Frederic Pierucci, who was the vice president of global boiler sales at Marubeni’s consortium partner, pleaded guilty on July 29, 2013, to one count of conspiring to violate the FCPA and one count of violating the FCPA. David Rothschild, a former vice president of regional sales at the consortium partner, pleaded guilty on Nov. 2, 2012, to one count of conspiracy to violate the FCPA. Lawrence Hoskins, a former senior vice president for the Asia region for the consortium partner, and William Pomponi, a former vice president of regional sales at the consortium partner, were charged in a second superseding indictment on July 30, 2013. The charges against Hoskins and Pomponi are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
According to court filings, Marubeni and its employees, together with others, paid bribes to officials in Indonesia – including a high-ranking member of the Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia – in exchange for assistance in securing a $118 million contract, known as the Tarahan project, for Marubeni and its consortium partner to provide power-related services for the citizens of Indonesia. To conceal the bribes, Marubeni and its consortium partner retained two consultants purportedly to provide legitimate consulting services on behalf of the power company and its subsidiaries in connection with the Tarahan project. The primary purpose for hiring the consultants, however, was to use the consultants to pay bribes to Indonesian officials.
As admitted in court documents, Marubeni and its co-conspirators retained the first consultant in the fall of 2002. However, in the fall of 2003, before the Tarahan contract had been awarded, Marubeni and its co-conspirators determined that the first consultant was not bribing key officials at PLN effectively. One e-mail between employees of the power company’s subsidiary in Indonesia described a meeting between Marubeni employees, employees of its consortium partner, and PLN officials during which the PLN officials expressed “concern” that if Marubeni and its consortium partner win the project, whether the agent would give the officials “rewards” that they would consider “satisfactory,” or “only give them pocket money and disappear. Nothing has been shown by the agent that the agent is willing to spend money.” Shortly thereafter, a Marubeni employee sent an e-mail to other employees at Marubeni and its consortium partner stating that “unfortunately our agent almost did not execute his function at all, so far. In case we don’t take immediate action now now [sic], we don’t have any chance to get this project forever.”
As a result, Marubeni and its consortium partner decided to reduce the first consultant’s commission from three percent of the total contract value to one percent, and pay the remaining two percent to a second consultant who could more effectively bribe officials at PLN. In an e-mail between two employees of Marubeni’s consortium partner, they discussed a meeting between Marubeni, an executive from the consortium partner, and the first consultant, stating that the first consultant “committed to convince [the member of Parliament] that ‘one’ [percent] is enough.”
Marubeni and its co-conspirators were successful in securing the Tarahan project and subsequently made payments to the consultants for the purpose of bribing the Indonesian officials. Marubeni and its co-conspirators paid hundreds of thousands of dollars into the first consultant’s bank account in Maryland to be used to bribe the member of Parliament. The consultant then allegedly transferred the bribe money to a bank account in Indonesia for the benefit of the official.
This case is being investigated by FBI agents from the Washington Field Office, with assistance from the Resident Agency of the FBI in Meriden, Conn. Significant assistance was provided by the Criminal Division’s Office of International Affairs. In addition, the department greatly appreciates the significant cooperation provided by its law enforcement colleagues in Indonesia at the Komisi Pemberantasan Korupsi (Corruption Eradication Commission), the Office of the Attorney General in Switzerland and the Serious Fraud Office in the United Kingdom.
The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut.
Wednesday, March 19, 2014
Marubeni Corporation Agrees to Plead Guilty to Foreign Bribery Charges and to Pay an $88 Million Fine
Marubeni Corporation, a Japanese trading company involved in the handling of products and provision of services in a broad range of sectors around the world, including power generation, entered a plea of guilty today for its participation in a scheme to pay bribes to high-ranking government officials in Indonesia to secure a lucrative power project.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting U.S. Attorney Michael J. Gustafson of the District of Connecticut and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
“Marubeni pleaded guilty to engaging in a seven-year scheme to pay – and conceal – bribes to a high-ranking member of Parliament and other foreign officials in Indonesia,” said Acting Assistant Attorney General Raman. “The company refused to play by the rules, then refused to cooperate with the government’s investigation. Now Marubeni faces the consequences for its crooked business practices in Indonesia .”
“For several years, the Marubeni Corporation worked in concert with a Connecticut company, among others, to bribe Indonesian officials in order to secure a contract to provide power-related services in Indonesia,” said Acting U.S. Attorney Michael J. Gustafson. “Today’s guilty plea by Marubeni Corporation is an important reminder to the business community of the significant consequences of participating in schemes to bribe government officials, whether at home or abroad.”
“Companies that wish to do business in the United States or with U.S. companies must adhere to U.S. law, and that means bribery is unacceptable,” said Assistant Director in Charge Parlave. “The FBI continues to work with our international law enforcement partners as demonstrated in this case to ensure that companies are held accountable for their criminal conduct. I want to thank the agents, analysts and prosecutors who brought this case to today’s conclusion.”
Marubeni entered a plea of guilty to an eight-count criminal information filed today in the U.S. District Court for the District of Connecticut, charging Marubeni with one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and seven counts of violating the FCPA. Marubeni admitted its criminal conduct and has agreed to pay a criminal fine of $88 million, subject to the district court’s approval. Sentencing has been scheduled for May 15, 2014.
As part of the plea agreement, Marubeni has agreed to maintain and implement an enhanced global anti-corruption compliance program and to cooperate with the department’s ongoing investigation. The plea agreement cites Marubeni’s decision not to cooperate with the department’s investigation when given the opportunity to do so, its lack of an effective compliance and ethics program at the time of the offense, its failure to properly remediate and the lack of its voluntary disclosure of the conduct as some of the factors considered by the department in reaching an appropriate resolution.
Frederic Pierucci, who was the vice president of global boiler sales at Marubeni’s consortium partner, pleaded guilty on July 29, 2013, to one count of conspiring to violate the FCPA and one count of violating the FCPA. David Rothschild, a former vice president of regional sales at the consortium partner, pleaded guilty on Nov. 2, 2012, to one count of conspiracy to violate the FCPA. Lawrence Hoskins, a former senior vice president for the Asia region for the consortium partner, and William Pomponi, a former vice president of regional sales at the consortium partner, were charged in a second superseding indictment on July 30, 2013. The charges against Hoskins and Pomponi are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
According to court filings, Marubeni and its employees, together with others, paid bribes to officials in Indonesia – including a high-ranking member of the Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia – in exchange for assistance in securing a $118 million contract, known as the Tarahan project, for Marubeni and its consortium partner to provide power-related services for the citizens of Indonesia. To conceal the bribes, Marubeni and its consortium partner retained two consultants purportedly to provide legitimate consulting services on behalf of the power company and its subsidiaries in connection with the Tarahan project. The primary purpose for hiring the consultants, however, was to use the consultants to pay bribes to Indonesian officials.
As admitted in court documents, Marubeni and its co-conspirators retained the first consultant in the fall of 2002. However, in the fall of 2003, before the Tarahan contract had been awarded, Marubeni and its co-conspirators determined that the first consultant was not bribing key officials at PLN effectively. One e-mail between employees of the power company’s subsidiary in Indonesia described a meeting between Marubeni employees, employees of its consortium partner, and PLN officials during which the PLN officials expressed “concern” that if Marubeni and its consortium partner win the project, whether the agent would give the officials “rewards” that they would consider “satisfactory,” or “only give them pocket money and disappear. Nothing has been shown by the agent that the agent is willing to spend money.” Shortly thereafter, a Marubeni employee sent an e-mail to other employees at Marubeni and its consortium partner stating that “unfortunately our agent almost did not execute his function at all, so far. In case we don’t take immediate action now now [sic], we don’t have any chance to get this project forever.”
As a result, Marubeni and its consortium partner decided to reduce the first consultant’s commission from three percent of the total contract value to one percent, and pay the remaining two percent to a second consultant who could more effectively bribe officials at PLN. In an e-mail between two employees of Marubeni’s consortium partner, they discussed a meeting between Marubeni, an executive from the consortium partner, and the first consultant, stating that the first consultant “committed to convince [the member of Parliament] that ‘one’ [percent] is enough.”
Marubeni and its co-conspirators were successful in securing the Tarahan project and subsequently made payments to the consultants for the purpose of bribing the Indonesian officials. Marubeni and its co-conspirators paid hundreds of thousands of dollars into the first consultant’s bank account in Maryland to be used to bribe the member of Parliament. The consultant then allegedly transferred the bribe money to a bank account in Indonesia for the benefit of the official.
This case is being investigated by FBI agents from the Washington Field Office, with assistance from the Resident Agency of the FBI in Meriden, Conn. Significant assistance was provided by the Criminal Division’s Office of International Affairs. In addition, the department greatly appreciates the significant cooperation provided by its law enforcement colleagues in Indonesia at the Komisi Pemberantasan Korupsi (Corruption Eradication Commission), the Office of the Attorney General in Switzerland and the Serious Fraud Office in the United Kingdom.
The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut.
JOINT STATEMENT ON GLOBAL INITIATIVE CONTRIBUTIONS TO COMBAT NUCLEAR TERROR
FROM: U.S. STATE DEPARTMENT
Joint Statement on the Contributions of the Global Initiative to Combat Nuclear Terrorism (GICNT) to Enhancing Nuclear Security
Office of the Spokesperson
Washington, DC
March 20, 2014
The text of the following statement was released by the Governments of the United States of America, Russia, Spain, Republic of Korea, the Netherlands, Australia, and the Kingdom of Morocco on the occasion of the contributions of the Global Initiative to Combat Nuclear Terrorism (GICNT) to enhancing nuclear security.
Begin Text:
The Global Initiative to Combat Nuclear Terrorism (GICNT) has made valuable contributions in strengthening global capacity to prevent, detect, and respond to nuclear terrorism. To date, the 85 partner nations have completed more than 60 activities under the auspices of the GICNT aimed at building partners’ capabilities in this area. We, the Co-Chairs of the GICNT (Russia and the United States), the past and present Implementation and Assessment Group (IAG) Coordinators (Spain and Republic of Korea), and leaders of the three IAG Working Groups (the Kingdom of Morocco, the Netherlands and Australia) wish to inform the states in attendance at the 2014 Netherlands Nuclear Security Summit of the activities of the GICNT since the Nuclear Security Summit hosted by the Republic of Korea in Seoul in March 2012.
Over 250 representatives of GICNT partner nations and representatives from all four GICNT official observers (the International Atomic Energy Agency (IAEA), the European Union (EU), the United Nations Office on Drugs and Crime (UNODC), and the International Criminal Police Organization (INTERPOL)) participated in the eighth GICNT Plenary Meeting, hosted by Mexico in Mexico City on May 24, 2013. This robust participation demonstrates the vital importance that GICNT partner nations place on enhancing nuclear security and underscores their desire to work cooperatively to further this goal. At the Plenary meeting, GICNT partners recognized the valuable contribution of the IAG mechanism created at the June 2010 GICNT Plenary meeting in Abu Dhabi. The U.S. and Russian Co-Chairs further recognized the contributions of Spain in serving as the IAG Coordinator for three years, including organizing and chairing the Implementation and Assessment Group meetings in Arona and Ispra, Italy, in October 2012 and in Madrid, Spain, in February 2013. Through its leadership, Spain brought strong focus and coordination to GICNT activities. At the 2013 Plenary, the Republic of Korea was endorsed as the new IAG Coordinator.
The collaborative efforts fostered by the GICNT are especially significant in light of the 2010 Washington Nuclear Security Summit, the 2012 Seoul Nuclear Security Summit, and the 2014 The Hague Nuclear Security Summit. Already, GICNT collaboration has produced important results that complement the Nuclear Security Summit process and help advance critical elements addressed in the Summit:
The Nuclear Detection Working Group (NDWG), chaired by the Netherlands, is finalizing theDeveloping a Nuclear Detection Architecture series of documents following the publication of Volume I, Model Guidelines Document for Nuclear Detection Architectures, in 2009. Volume II in the series, Guidelines for Awareness, Training, and Exercises, and Volume III, Guidelines for Planning and Organization, focused on issues inherent to successful implementation and enhancement of nuclear detection architectures. Ukraine hosted a meeting of the NDWG in Lviv in November 2012 to further the development of the third document in the series. Volumes II and III in the foundational series were approved at the May 2013 GICNT Plenary meeting. At a workshop hosted by Greece in Athens in October 2013, the NDWG continued work on Volume IV, Guidelines for Detection Within a State’s Interior, the final best practices guide in the series. Also during the Athens workshop, the NDWG began efforts to develop a tabletop exercise “playbook,” a compendium of detection-related exercise scenarios available to all GICNT partner nations.
The United Kingdom hosted the GICNT’s 2nd Symposium on Enhanced Detection of Special Nuclear Material in November 2012, to take stock of current advancements in detection technologies, drawing widely on the experiences of other GICNT partner nations.
In September 2012, Russia conducted an exercise on nuclear detection, “Guardian 2012.” During the exercise, Russia used a realistic scenario and real time activity to demonstrate the different aspects of Russia’s national system for detecting nuclear threats, thereby further raising awareness of best practices for the practical implementation of basic principles of nuclear detection architectures in the framework of the GICNT.
In February 2014, Mexico hosted a field training exercise under the auspices of the NDWG, during which the participants had the opportunity to observe implementation of a radiation detection alarm adjudication process and interagency communications protocol in response to realistic nuclear detection scenarios at the Port of Manzanillo. This exercise highlighted national best practices in detection systems and in coordination of a domestic interagency response to a nuclear terrorism event.
The Nuclear Forensics Working Group (NFWG), chaired by Australia, completed a document entitled,Nuclear Forensics Fundamentals for Policy Makers and Decision Makers, which was endorsed at the GICNT Plenary Meeting in May 2013. This document is intended to raise policy maker and decision maker awareness of nuclear forensics as a tool to enhance nuclear material security and to prevent illicit uses of nuclear and other radioactive material. In May 2012, Australia hosted “Iron Koala,” a nuclear forensics seminar and tabletop exercise, which examined the importance of information sharing partnerships, both nationally and internationally, to effectively respond to cases related to nuclear smuggling. This exercise identified an interest amongst GICNT partners in further study of the topic of information sharing in the nuclear forensics field. Thus the working group has commenced development of a document seeking to frame the issues related to sharing nuclear forensics information in the response to and investigation of a nuclear terrorism-related event, currently titled Sharing Nuclear Forensics Information: Benefits, Resources, and Challenges.
Also under the auspices of the NFWG, the United Kingdom hosted in January 2014 the “Nuclear Forensics Workshop and Exercise – Exploring the Nuclear Forensics Chain of Custody: Guidance on the Development of Legally Compliant Nuclear Forensics Capabilities and Systems.” The workshop incorporated a tabletop exercise “Blue Beagle” that demonstrated the British system for control and use of forensics evidence from a crime scene through its development and presentation as evidence in a courtroom and to its disposal. The workshop and exercise presented best practices for investigating a crime scene contaminated with radioactive material and showcased the critical steps needed to successfully introduce the evidence into legal proceedings.
Additionally, awareness-building information modules based on the GICNT Global Initiative Information Portal (GIIP) are in development. Currently, the NFWG is testing a National Nuclear Forensics Library module that provides policy-makers an outline of the national nuclear forensics library concept and identifies key resources for partner nations interested in further information on this subject.
The Response and Mitigation Working Group (RMWG), chaired by the Kingdom of Morocco, is working collaboratively to develop the Response and Mitigation Framework Document, a collection of key considerations that a country with limited capabilities should consider when initializing its national nuclear/radiological emergency response system. This document includes substantial input from the Moroccan experience in setting up its response capabilities. The Framework Document is intended as a living document, meant to be routinely updated and improved through follow-on practical activities and further input from partner nations. In its capacity as RMWG Chair, Morocco continues to work on an action plan for future activities aimed at strengthening GICNT partner capabilities in responding to a nuclear terrorism event. Morocco continues to work on an action plan for future RMWG activities aimed at strengthening GICNT partner capabilities in responding to a nuclear terrorism incident.
Under the auspices of the RMWG, Canada hosted the RADEX exercise in May 2012 in Toronto, to provide an overview of Canada’s emergency management and national security authorities and demonstrate its response to a terrorist attack. Spain and Morocco jointly hosted the REMEX-2013 exercise, in Madrid, Spain, in April 2013. This exercise helped to test the national capabilities of both countries and their cooperation on responding to and mitigating simultaneous terrorist attacks involving radioactive substances.
In October 2012, the RMWG and NWFG met jointly in Ispra, Italy, to address the intersections of the two working groups in responding to nuclear and radiological events. Based on the success of this joint activity, in February 2014, the NFWG and RMWG jointly held a workshop incorporating the tabletop exercise “Tiger Reef” focused on interagency coordination and training that highlighted best practices and key resources for integrating cross-disciplinary training into national response frameworks. “Tiger Reef” was hosted by Malaysia in Kuala Lumpur and was supported by Australia, New Zealand and Malaysia.
Looking to the future, the GICNT Co-Chairs, the IAG Coordinator and the Working Group Leaders remain committed to working with GICNT partner nations to pursue focused efforts and activities that foster nuclear security collaboration and advance nuclear security goals. Moving forward, the GICNT leadership will seek to engage partner nations in practical exercises and workshops that enable them to prepare for and practice responding to nuclear security events. Such activities will focus on encouraging interagency, regional, and international cooperation and communication, in accordance with the proposals for GICNT work endorsed by the partners at the 2013 Plenary meeting in Mexico City. By enhancing partner nations’ capacity to prevent, detect, and respond to nuclear terrorism, GICNT will continue to strengthen nuclear security capabilities globally through efforts that complement and support the objectives of the Nuclear Security Summit.
Begin Text:
The Global Initiative to Combat Nuclear Terrorism (GICNT) has made valuable contributions in strengthening global capacity to prevent, detect, and respond to nuclear terrorism. To date, the 85 partner nations have completed more than 60 activities under the auspices of the GICNT aimed at building partners’ capabilities in this area. We, the Co-Chairs of the GICNT (Russia and the United States), the past and present Implementation and Assessment Group (IAG) Coordinators (Spain and Republic of Korea), and leaders of the three IAG Working Groups (the Kingdom of Morocco, the Netherlands and Australia) wish to inform the states in attendance at the 2014 Netherlands Nuclear Security Summit of the activities of the GICNT since the Nuclear Security Summit hosted by the Republic of Korea in Seoul in March 2012.
Over 250 representatives of GICNT partner nations and representatives from all four GICNT official observers (the International Atomic Energy Agency (IAEA), the European Union (EU), the United Nations Office on Drugs and Crime (UNODC), and the International Criminal Police Organization (INTERPOL)) participated in the eighth GICNT Plenary Meeting, hosted by Mexico in Mexico City on May 24, 2013. This robust participation demonstrates the vital importance that GICNT partner nations place on enhancing nuclear security and underscores their desire to work cooperatively to further this goal. At the Plenary meeting, GICNT partners recognized the valuable contribution of the IAG mechanism created at the June 2010 GICNT Plenary meeting in Abu Dhabi. The U.S. and Russian Co-Chairs further recognized the contributions of Spain in serving as the IAG Coordinator for three years, including organizing and chairing the Implementation and Assessment Group meetings in Arona and Ispra, Italy, in October 2012 and in Madrid, Spain, in February 2013. Through its leadership, Spain brought strong focus and coordination to GICNT activities. At the 2013 Plenary, the Republic of Korea was endorsed as the new IAG Coordinator.
The collaborative efforts fostered by the GICNT are especially significant in light of the 2010 Washington Nuclear Security Summit, the 2012 Seoul Nuclear Security Summit, and the 2014 The Hague Nuclear Security Summit. Already, GICNT collaboration has produced important results that complement the Nuclear Security Summit process and help advance critical elements addressed in the Summit:
The Nuclear Detection Working Group (NDWG), chaired by the Netherlands, is finalizing theDeveloping a Nuclear Detection Architecture series of documents following the publication of Volume I, Model Guidelines Document for Nuclear Detection Architectures, in 2009. Volume II in the series, Guidelines for Awareness, Training, and Exercises, and Volume III, Guidelines for Planning and Organization, focused on issues inherent to successful implementation and enhancement of nuclear detection architectures. Ukraine hosted a meeting of the NDWG in Lviv in November 2012 to further the development of the third document in the series. Volumes II and III in the foundational series were approved at the May 2013 GICNT Plenary meeting. At a workshop hosted by Greece in Athens in October 2013, the NDWG continued work on Volume IV, Guidelines for Detection Within a State’s Interior, the final best practices guide in the series. Also during the Athens workshop, the NDWG began efforts to develop a tabletop exercise “playbook,” a compendium of detection-related exercise scenarios available to all GICNT partner nations.
The United Kingdom hosted the GICNT’s 2nd Symposium on Enhanced Detection of Special Nuclear Material in November 2012, to take stock of current advancements in detection technologies, drawing widely on the experiences of other GICNT partner nations.
In September 2012, Russia conducted an exercise on nuclear detection, “Guardian 2012.” During the exercise, Russia used a realistic scenario and real time activity to demonstrate the different aspects of Russia’s national system for detecting nuclear threats, thereby further raising awareness of best practices for the practical implementation of basic principles of nuclear detection architectures in the framework of the GICNT.
In February 2014, Mexico hosted a field training exercise under the auspices of the NDWG, during which the participants had the opportunity to observe implementation of a radiation detection alarm adjudication process and interagency communications protocol in response to realistic nuclear detection scenarios at the Port of Manzanillo. This exercise highlighted national best practices in detection systems and in coordination of a domestic interagency response to a nuclear terrorism event.
The Nuclear Forensics Working Group (NFWG), chaired by Australia, completed a document entitled,Nuclear Forensics Fundamentals for Policy Makers and Decision Makers, which was endorsed at the GICNT Plenary Meeting in May 2013. This document is intended to raise policy maker and decision maker awareness of nuclear forensics as a tool to enhance nuclear material security and to prevent illicit uses of nuclear and other radioactive material. In May 2012, Australia hosted “Iron Koala,” a nuclear forensics seminar and tabletop exercise, which examined the importance of information sharing partnerships, both nationally and internationally, to effectively respond to cases related to nuclear smuggling. This exercise identified an interest amongst GICNT partners in further study of the topic of information sharing in the nuclear forensics field. Thus the working group has commenced development of a document seeking to frame the issues related to sharing nuclear forensics information in the response to and investigation of a nuclear terrorism-related event, currently titled Sharing Nuclear Forensics Information: Benefits, Resources, and Challenges.
Also under the auspices of the NFWG, the United Kingdom hosted in January 2014 the “Nuclear Forensics Workshop and Exercise – Exploring the Nuclear Forensics Chain of Custody: Guidance on the Development of Legally Compliant Nuclear Forensics Capabilities and Systems.” The workshop incorporated a tabletop exercise “Blue Beagle” that demonstrated the British system for control and use of forensics evidence from a crime scene through its development and presentation as evidence in a courtroom and to its disposal. The workshop and exercise presented best practices for investigating a crime scene contaminated with radioactive material and showcased the critical steps needed to successfully introduce the evidence into legal proceedings.
Additionally, awareness-building information modules based on the GICNT Global Initiative Information Portal (GIIP) are in development. Currently, the NFWG is testing a National Nuclear Forensics Library module that provides policy-makers an outline of the national nuclear forensics library concept and identifies key resources for partner nations interested in further information on this subject.
The Response and Mitigation Working Group (RMWG), chaired by the Kingdom of Morocco, is working collaboratively to develop the Response and Mitigation Framework Document, a collection of key considerations that a country with limited capabilities should consider when initializing its national nuclear/radiological emergency response system. This document includes substantial input from the Moroccan experience in setting up its response capabilities. The Framework Document is intended as a living document, meant to be routinely updated and improved through follow-on practical activities and further input from partner nations. In its capacity as RMWG Chair, Morocco continues to work on an action plan for future activities aimed at strengthening GICNT partner capabilities in responding to a nuclear terrorism event. Morocco continues to work on an action plan for future RMWG activities aimed at strengthening GICNT partner capabilities in responding to a nuclear terrorism incident.
Under the auspices of the RMWG, Canada hosted the RADEX exercise in May 2012 in Toronto, to provide an overview of Canada’s emergency management and national security authorities and demonstrate its response to a terrorist attack. Spain and Morocco jointly hosted the REMEX-2013 exercise, in Madrid, Spain, in April 2013. This exercise helped to test the national capabilities of both countries and their cooperation on responding to and mitigating simultaneous terrorist attacks involving radioactive substances.
In October 2012, the RMWG and NWFG met jointly in Ispra, Italy, to address the intersections of the two working groups in responding to nuclear and radiological events. Based on the success of this joint activity, in February 2014, the NFWG and RMWG jointly held a workshop incorporating the tabletop exercise “Tiger Reef” focused on interagency coordination and training that highlighted best practices and key resources for integrating cross-disciplinary training into national response frameworks. “Tiger Reef” was hosted by Malaysia in Kuala Lumpur and was supported by Australia, New Zealand and Malaysia.
Looking to the future, the GICNT Co-Chairs, the IAG Coordinator and the Working Group Leaders remain committed to working with GICNT partner nations to pursue focused efforts and activities that foster nuclear security collaboration and advance nuclear security goals. Moving forward, the GICNT leadership will seek to engage partner nations in practical exercises and workshops that enable them to prepare for and practice responding to nuclear security events. Such activities will focus on encouraging interagency, regional, and international cooperation and communication, in accordance with the proposals for GICNT work endorsed by the partners at the 2013 Plenary meeting in Mexico City. By enhancing partner nations’ capacity to prevent, detect, and respond to nuclear terrorism, GICNT will continue to strengthen nuclear security capabilities globally through efforts that complement and support the objectives of the Nuclear Security Summit.
Thursday, March 20, 2014
DEFENSE SECRETARY HAGEL HAS DISCUSSION OVER IRAN WITH ISRAELI DEFENSE MINISTER YAALON
FROM: U.S. DEFENSE DEPARTMENT
Secretary Discusses Iran With Israeli Defense Minister
American Forces Press Service
WASHINGTON, March 20, 2014 – During a phone conversation with Israeli Defense Minister Moshe Yaalon yesterday, Defense Secretary Chuck Hagel expressed his deep concern about Yaalon’s reported comments on U.S. policy towards Iran and reiterated the U.S. commitment to preventing Iran from obtaining a nuclear weapon, Pentagon Press Secretary Navy Rear Adm. John Kirby said in a Defense Department news release.
News reports say Yaalon had recently criticized the U.S. policy towards preventing Iran from obtaining a nuclear weapon.
During his conversation with Hagel, Yaalon clarified his remarks by underscoring his commitment to the strength of the U.S.-Israel relationship, Kirby said in the release.
Kirby added that Yaalon also provided Hagel with an update on Israel's security situation, and yesterday's Israeli operation against Syrian military and security targets on the Syrian side of the Golan Heights launched in retaliation for a March 18 bomb attack in the Golan Heights near the Syrian border that left four Israeli soldiers injured.
Hagel expressed his sympathy for the wounded Israeli forces and their families, Kirby said in the release, as well as his concern for the ongoing situation in Syria.
“The secretary and minister pledged to continue working closely with one another on the range of security issues facing the United States and Israel,” Kirby added.
Secretary Discusses Iran With Israeli Defense Minister
American Forces Press Service
WASHINGTON, March 20, 2014 – During a phone conversation with Israeli Defense Minister Moshe Yaalon yesterday, Defense Secretary Chuck Hagel expressed his deep concern about Yaalon’s reported comments on U.S. policy towards Iran and reiterated the U.S. commitment to preventing Iran from obtaining a nuclear weapon, Pentagon Press Secretary Navy Rear Adm. John Kirby said in a Defense Department news release.
News reports say Yaalon had recently criticized the U.S. policy towards preventing Iran from obtaining a nuclear weapon.
During his conversation with Hagel, Yaalon clarified his remarks by underscoring his commitment to the strength of the U.S.-Israel relationship, Kirby said in the release.
Kirby added that Yaalon also provided Hagel with an update on Israel's security situation, and yesterday's Israeli operation against Syrian military and security targets on the Syrian side of the Golan Heights launched in retaliation for a March 18 bomb attack in the Golan Heights near the Syrian border that left four Israeli soldiers injured.
Hagel expressed his sympathy for the wounded Israeli forces and their families, Kirby said in the release, as well as his concern for the ongoing situation in Syria.
“The secretary and minister pledged to continue working closely with one another on the range of security issues facing the United States and Israel,” Kirby added.
RUSSIA MUST SUFFER CONSEQUENCES" SAYS NATO SECRETARY GENERAL
FROM: U.S. DEFENSE DEPARTMENT
NATO Secretary General: Russia Must Suffer Consequences
By Jim Garamone
American Forces Press Service
WASHINGTON, March 19, 2014 – There must be consequences for Russia’s actions against Ukraine, the NATO secretary general said at the Brookings Institution here today.
Anders Fogh Rasmussen told the think tank that “the only way for us to address these challenges is for Europe and North America to stand together.”
Russia’s aggression against Ukraine has changed the world, the secretary general said. “Russia’s military aggression in Ukraine is a blatant breach of its international commitments, and it is a violation of Ukraine sovereignty and territorial integrity,” he said. “The annexation of Crimea through a so-called referendum held at gunpoint is illegal and illegitimate, and it undermines all efforts to find a peaceful political solution.”
The Russian action is a wake-up call for the Euro-Atlantic community, for NATO and for all those committed to a Europe whole, free and at peace, he said. The action directly violates the 1994 agreement Russia signed with Ukraine.
Further, the action has occurred right on NATO’s doorstep, the secretary general said.
Rasmussen called the action the gravest threat to European security and stability since the end of the Cold War and said the move threatens the freedom of 45 million people. He called the Russian action “21t-century revisionism” and labeled it as an attempt to turn back the clock to draw new dividing lines on the European map.
It also signals an attempt “to use force to solve problems rather than the international mechanisms that we have spent decades to build,” he said. “We had thought such behavior had been confined to history,” he added. “But it’s back, and it’s dangerous, because it violates international norms of accepted behaviors.”
Combating the move is not easy and will not be quick, the secretary general acknowledged, noting that it is the nature of democracies to debate, deliberate and consider the options before making decisions. The NATO nations do this because “we value transparency and seek legitimacy for our choices, and because we see force as the last not the first resort,” he said.
NATO has condemned Russia’s military actions in Ukraine and is standing firmly behind the Ukrainian government in Kiev. The alliance also is making it clear that Russian President Vladimir Putin’s decision to escalate the situation have consequences.
“As a first step, we have suspended joint planning for maritime escort mission for the destruction of Syria’s chemical weapons,” Rasmussen said. “This would have been the first joint operation of the NATO-Russia Council.”
NATO has suspended all staff-level civilian or military meetings with Russia, and the alliance is re-examining the entire range of NATO-Russia cooperation.
NATO foreign ministers will make decisions when they meet in Brussels early next month, the secretary general said. Still, the alliance will keep the door open for political dialogue in the NATO-Russia Council. He hopes this will give Russia the opportunity to engage.
On the military side, the alliance has increased readiness. More assets have been assigned to the Baltic air police mission, and NATO has launched surveillance flights over Poland and Romania.
All this is in addition to steps allies have taken to impose diplomatic and economic consequences. “These are not our preferred choices,” Rasmussen said, “but they are inevitable and appropriate consequences of Russia’s choices.”
NATO Secretary General: Russia Must Suffer Consequences
By Jim Garamone
American Forces Press Service
WASHINGTON, March 19, 2014 – There must be consequences for Russia’s actions against Ukraine, the NATO secretary general said at the Brookings Institution here today.
Anders Fogh Rasmussen told the think tank that “the only way for us to address these challenges is for Europe and North America to stand together.”
Russia’s aggression against Ukraine has changed the world, the secretary general said. “Russia’s military aggression in Ukraine is a blatant breach of its international commitments, and it is a violation of Ukraine sovereignty and territorial integrity,” he said. “The annexation of Crimea through a so-called referendum held at gunpoint is illegal and illegitimate, and it undermines all efforts to find a peaceful political solution.”
The Russian action is a wake-up call for the Euro-Atlantic community, for NATO and for all those committed to a Europe whole, free and at peace, he said. The action directly violates the 1994 agreement Russia signed with Ukraine.
Further, the action has occurred right on NATO’s doorstep, the secretary general said.
Rasmussen called the action the gravest threat to European security and stability since the end of the Cold War and said the move threatens the freedom of 45 million people. He called the Russian action “21t-century revisionism” and labeled it as an attempt to turn back the clock to draw new dividing lines on the European map.
It also signals an attempt “to use force to solve problems rather than the international mechanisms that we have spent decades to build,” he said. “We had thought such behavior had been confined to history,” he added. “But it’s back, and it’s dangerous, because it violates international norms of accepted behaviors.”
Combating the move is not easy and will not be quick, the secretary general acknowledged, noting that it is the nature of democracies to debate, deliberate and consider the options before making decisions. The NATO nations do this because “we value transparency and seek legitimacy for our choices, and because we see force as the last not the first resort,” he said.
NATO has condemned Russia’s military actions in Ukraine and is standing firmly behind the Ukrainian government in Kiev. The alliance also is making it clear that Russian President Vladimir Putin’s decision to escalate the situation have consequences.
“As a first step, we have suspended joint planning for maritime escort mission for the destruction of Syria’s chemical weapons,” Rasmussen said. “This would have been the first joint operation of the NATO-Russia Council.”
NATO has suspended all staff-level civilian or military meetings with Russia, and the alliance is re-examining the entire range of NATO-Russia cooperation.
NATO foreign ministers will make decisions when they meet in Brussels early next month, the secretary general said. Still, the alliance will keep the door open for political dialogue in the NATO-Russia Council. He hopes this will give Russia the opportunity to engage.
On the military side, the alliance has increased readiness. More assets have been assigned to the Baltic air police mission, and NATO has launched surveillance flights over Poland and Romania.
All this is in addition to steps allies have taken to impose diplomatic and economic consequences. “These are not our preferred choices,” Rasmussen said, “but they are inevitable and appropriate consequences of Russia’s choices.”
SEC INVESTOR ALERT: FALSE CLAIMS OF BEING REGISTERED WITH THE SEC
FROM: SECURITIES AND EXCHANGE COMMISSION
Investor Alert: Beware of False Claims of SEC Registration
03/20/2014
The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to warn investors about potentially fraudulent investment schemes that involve individuals or firms misrepresenting that they are registered with the SEC. Investors should be careful to check the background, including license and registration status, of any person who tries to sell them an investment product or service, and should avoid investing with anyone who falsely represents that they are registered with the SEC.
Fraudsters may try to lure you into investing with them by falsely claiming to be registered with the SEC. In a recent fraud case brought by the SEC, SEC v Fleet Mutual Wealth, the defendants allegedly promised investors guaranteed returns of 2-3% per week through the use of a high frequency trading strategy, but instead used investors’ money to operate a pyramid scheme. The defendants allegedly recruited investors by misrepresenting that their firm was “registered” or “duly registered” with the SEC and pointing to the firm’s Form D filings to support this misrepresentation.
A Form D filing has nothing to do with whether an individual or firm is registered with the SEC.
Registration of Individuals and Firms
Many sellers of investment products or services are either brokers, investment advisers, or both. Most brokers must register with the SEC and join the Financial Industry Regulatory Authority (FINRA). Investment advisers that provide investment advice to retail investors generally must register with the SEC or the state securities regulator where they have their principal place of business.
The fact that an individual or firm has made a filing with the SEC does not mean that the individual or firm is registered with the SEC. If an individual or firm offering you an investment product or service claims to be registered with the SEC, verify that this is true:
Determine whether a firm is registered with the SEC as a broker and whether key individuals are duly licensed, and check whether there is a history of investor complaints or problems with regulators, by using FINRA’s BrokerCheck or by calling the FINRA BrokerCheck Hotline at (800) 289-9999.
Determine whether a firm’s registration with the SEC as an investment adviser is active and whether any required licenses of individuals are current, and review disciplinary history by searching the SEC’s Investment Adviser Public Disclosure (IAPD) database:
To check a firm, select the SEC Registration Status hyperlink.
To check an individual, review the Qualifications section of an Investment Adviser Representative Report Summary.
In addition, always contact your state securities regulator to determine whether an individual or firm is licensed or registered with your state securities regulator to do business with you, and ask about any complaints. Find contact information for your state securities regulator by visiting the North American Securities Administrators Association (NASAA)’s website or by calling NASAA at (202) 737-0900.
Registration of Securities Offerings and Form D
Under the federal securities laws, a company or private fund may not offer or sell securities unless the transaction has been registered with the SEC or an exemption from registration applies. Companies and private funds that offer and sell securities in reliance on certain exemptions from registration are required to file a brief notice known as Form D. Form D filings are publicly available in the EDGAR database.
Form D requires basic information about the issuer of the securities and the unregistered securities offering, such as information about the issuer’s executive officers, the size of the offering, and the date of first sale. The SEC does not verify the accuracy of the information in a Form D filing, and a Form D filing cannot be used to accomplish registration of individuals or firms with the SEC, or registration of securities offerings with the SEC.
Investor Alert: Beware of False Claims of SEC Registration
03/20/2014
The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to warn investors about potentially fraudulent investment schemes that involve individuals or firms misrepresenting that they are registered with the SEC. Investors should be careful to check the background, including license and registration status, of any person who tries to sell them an investment product or service, and should avoid investing with anyone who falsely represents that they are registered with the SEC.
Fraudsters may try to lure you into investing with them by falsely claiming to be registered with the SEC. In a recent fraud case brought by the SEC, SEC v Fleet Mutual Wealth, the defendants allegedly promised investors guaranteed returns of 2-3% per week through the use of a high frequency trading strategy, but instead used investors’ money to operate a pyramid scheme. The defendants allegedly recruited investors by misrepresenting that their firm was “registered” or “duly registered” with the SEC and pointing to the firm’s Form D filings to support this misrepresentation.
A Form D filing has nothing to do with whether an individual or firm is registered with the SEC.
Registration of Individuals and Firms
Many sellers of investment products or services are either brokers, investment advisers, or both. Most brokers must register with the SEC and join the Financial Industry Regulatory Authority (FINRA). Investment advisers that provide investment advice to retail investors generally must register with the SEC or the state securities regulator where they have their principal place of business.
The fact that an individual or firm has made a filing with the SEC does not mean that the individual or firm is registered with the SEC. If an individual or firm offering you an investment product or service claims to be registered with the SEC, verify that this is true:
Determine whether a firm is registered with the SEC as a broker and whether key individuals are duly licensed, and check whether there is a history of investor complaints or problems with regulators, by using FINRA’s BrokerCheck or by calling the FINRA BrokerCheck Hotline at (800) 289-9999.
Determine whether a firm’s registration with the SEC as an investment adviser is active and whether any required licenses of individuals are current, and review disciplinary history by searching the SEC’s Investment Adviser Public Disclosure (IAPD) database:
To check a firm, select the SEC Registration Status hyperlink.
To check an individual, review the Qualifications section of an Investment Adviser Representative Report Summary.
In addition, always contact your state securities regulator to determine whether an individual or firm is licensed or registered with your state securities regulator to do business with you, and ask about any complaints. Find contact information for your state securities regulator by visiting the North American Securities Administrators Association (NASAA)’s website or by calling NASAA at (202) 737-0900.
Registration of Securities Offerings and Form D
Under the federal securities laws, a company or private fund may not offer or sell securities unless the transaction has been registered with the SEC or an exemption from registration applies. Companies and private funds that offer and sell securities in reliance on certain exemptions from registration are required to file a brief notice known as Form D. Form D filings are publicly available in the EDGAR database.
Form D requires basic information about the issuer of the securities and the unregistered securities offering, such as information about the issuer’s executive officers, the size of the offering, and the date of first sale. The SEC does not verify the accuracy of the information in a Form D filing, and a Form D filing cannot be used to accomplish registration of individuals or firms with the SEC, or registration of securities offerings with the SEC.
DEFENDANTS SETTLE CHARGES IN "WORK-AT-HOME" OPPORTUNITY SCAM
FROM: FEDERAL TRADE COMMISSION
Defendants Behind ‘Online Entrepreneur’ Work-at-Home Scheme Settle FTC Charges
The operators of a business opportunity scheme have agreed to settle Federal Trade Commission charges that they defrauded consumers through the sale of a work-at-home program that purportedly provided consumers with their own websites that would enable them to earn a significant income by affiliate marketing with websites of well-known companies such as Prada, Sony, Louis Vuitton, and Verizon.
The settlement is part of a federal-state crackdown on scams that falsely promise jobs and opportunities to “be your own boss” to people who are unemployed or underemployed. Under the settlement, the defendants behind the operation, The Online Entrepreneur, will be banned from selling business and work-at-home opportunities.
According to an FTC complaint filed in November 2012, the defendants sold the “Six Figure Program” to consumers as a purportedly no-risk, money-back guaranteed opportunity to make money via their own website, falsely claiming that, for a $27 fee, they would enable consumers to affiliate with well-known companies’ websites and earn commissions. After purchasing the program, consumers learned that they had to pay $100 or more in additional costs just to set up their websites. The court subsequently halted the allegedly deceptive practices, froze the defendants’ assets, and put the companies into receivership pending a court hearing.
The settlement order announced today permanently prohibits The Online Entrepreneur Inc., Ben and Dave’s Consulting Associates, Inc., and David Clabeaux from selling business and work-at-home opportunities, misrepresenting that consumers are likely to earn money and misrepresenting any material fact about a product or service. They also are barred from failing to clearly disclose the terms of any offer before consumers provide billing information, and making a representation unless it is true and the defendants have competent and reliable evidence to substantiate the claim. In addition, the order prohibits these defendants from selling or otherwise benefitting from consumers’ personal information, and failing to properly dispose of customer information.
The order imposes a judgment of more than $2.9 million, which will be suspended when Clabeaux has surrendered real estate, personal property, and bank and investment accounts. The full judgment will become due immediately if the defendants are found to have misrepresented their financial condition. Litigation continues against the remaining defendant, Benjamin Moskel.
The Commission vote authorizing the staff to file the proposed consent judgment was 4-0. The consent judgment was entered by the U.S. District Court for the Middle District of Florida on March 13, 2014.
NOTE: Consent judgments have the force of law when approved and signed by the District Court judge.
Defendants Behind ‘Online Entrepreneur’ Work-at-Home Scheme Settle FTC Charges
The operators of a business opportunity scheme have agreed to settle Federal Trade Commission charges that they defrauded consumers through the sale of a work-at-home program that purportedly provided consumers with their own websites that would enable them to earn a significant income by affiliate marketing with websites of well-known companies such as Prada, Sony, Louis Vuitton, and Verizon.
The settlement is part of a federal-state crackdown on scams that falsely promise jobs and opportunities to “be your own boss” to people who are unemployed or underemployed. Under the settlement, the defendants behind the operation, The Online Entrepreneur, will be banned from selling business and work-at-home opportunities.
According to an FTC complaint filed in November 2012, the defendants sold the “Six Figure Program” to consumers as a purportedly no-risk, money-back guaranteed opportunity to make money via their own website, falsely claiming that, for a $27 fee, they would enable consumers to affiliate with well-known companies’ websites and earn commissions. After purchasing the program, consumers learned that they had to pay $100 or more in additional costs just to set up their websites. The court subsequently halted the allegedly deceptive practices, froze the defendants’ assets, and put the companies into receivership pending a court hearing.
The settlement order announced today permanently prohibits The Online Entrepreneur Inc., Ben and Dave’s Consulting Associates, Inc., and David Clabeaux from selling business and work-at-home opportunities, misrepresenting that consumers are likely to earn money and misrepresenting any material fact about a product or service. They also are barred from failing to clearly disclose the terms of any offer before consumers provide billing information, and making a representation unless it is true and the defendants have competent and reliable evidence to substantiate the claim. In addition, the order prohibits these defendants from selling or otherwise benefitting from consumers’ personal information, and failing to properly dispose of customer information.
The order imposes a judgment of more than $2.9 million, which will be suspended when Clabeaux has surrendered real estate, personal property, and bank and investment accounts. The full judgment will become due immediately if the defendants are found to have misrepresented their financial condition. Litigation continues against the remaining defendant, Benjamin Moskel.
The Commission vote authorizing the staff to file the proposed consent judgment was 4-0. The consent judgment was entered by the U.S. District Court for the Middle District of Florida on March 13, 2014.
NOTE: Consent judgments have the force of law when approved and signed by the District Court judge.
U.S. CONGRATULATES CITIZENS OF NAMIBIA ON THEIR INDEPENDENCE DAY
FROM: U.S. STATE DEPARTMENT
On the Occasion of the Republic of Namibia's National Day
John Kerry
Secretary of State
Secretary of State
Washington, DC
March 20, 2014
On behalf of President Obama and the American people, I congratulate the citizens of Namibia as you celebrate 24 years of independence on March 21.
The United States remains committed to building on the strong legacy of partnership between our nations.
I am proud of the work we have undertaken in the battle against HIV/AIDS. The success we have achieved in agriculture, education, and conservation is laying the foundation for a more prosperous future.
Together, our countries are creating new opportunities for the Namibian people by working to improve public health and promote sustainable economic growth.
We will continue our close partnership with Namibia to achieve our mutual goal of a stable, healthy, and prosperous society for all Namibians.
As you celebrate this special day from Oshakati to Oranjemund, I offer all Namibians warmest wishes for continued peace, security, and lasting prosperity.
The United States remains committed to building on the strong legacy of partnership between our nations.
I am proud of the work we have undertaken in the battle against HIV/AIDS. The success we have achieved in agriculture, education, and conservation is laying the foundation for a more prosperous future.
Together, our countries are creating new opportunities for the Namibian people by working to improve public health and promote sustainable economic growth.
We will continue our close partnership with Namibia to achieve our mutual goal of a stable, healthy, and prosperous society for all Namibians.
As you celebrate this special day from Oshakati to Oranjemund, I offer all Namibians warmest wishes for continued peace, security, and lasting prosperity.
STATEMENT BY PRESIDENT OBAMA ON NEW SANCTIONS REGARDING SITUATION IN UKRAINE
FROM: THE WHITE HOUSE
Statement by the President on Ukraine
South Lawn
11:05 A.M. EDT
THE PRESIDENT: Good morning, everybody. I wanted to provide an update on the situation in Ukraine and the steps that the United States is taking in response.
Over the last several days, we’ve continued to be deeply concerned by events in Ukraine. We've seen an illegal referendum in Crimea; an illegitimate move by the Russians to annex Crimea; and dangerous risks of escalation, including threats to Ukrainian personnel in Crimea and threats to southern and eastern Ukraine as well. These are all choices that the Russian government has made -- choices that have been rejected by the international community, as well as the government of Ukraine. And because of these choices, the United States is today moving, as we said we would, to impose additional costs on Russia.
Based on the executive order that I signed in response to Russia’s initial intervention in Ukraine, we’re imposing sanctions on more senior officials of the Russian government. In addition, we are today sanctioning a number of other individuals with substantial resources and influence who provide material support to the Russian leadership, as well as a bank that provides material support to these individuals.
Now, we’re taking these steps as part of our response to what Russia has already done in Crimea. At the same time, the world is watching with grave concern as Russia has positioned its military in a way that could lead to further incursions into southern and eastern Ukraine. For this reason, we’ve been working closely with our European partners to develop more severe actions that could be taken if Russia continues to escalate the situation.
As part of that process, I signed a new executive order today that gives us the authority to impose sanctions not just on individuals but on key sectors of the Russian economy. This is not our preferred outcome. These sanctions would not only have a significant impact on the Russian economy, but could also be disruptive to the global economy. However, Russia must know that further escalation will only isolate it further from the international community. The basic principles that govern relations between nations in Europe and around the world must be upheld in the 21st century. That includes respect for sovereignty and territorial integrity -- the notion that nations do not simply redraw borders, or make decisions at the expense of their neighbors simply because they are larger or more powerful.
One of our other top priorities continues to be providing assistance to the government of Ukraine so it can stabilize its economy and meet the basic needs of the Ukrainian people. As I travel to Europe next week to meet with the G7 and other European and Asian allies, I once again urge Congress to pass legislation that is necessary to provide this assistance -- and do it right away. Expressions of support are not enough. We need action. I also hope that the IMF moves swiftly to provide a significant package of support for Ukrainians as they pursue reforms.
In Europe, I’ll also be reinforcing a message that Vice President Biden carried to Poland and the Baltic states this week: America’s support for our NATO allies is unwavering. We’re bound together by our profound Article 5 commitment to defend one another, and by a set of shared values that so many generations sacrificed for. We’ve already increased our support for our Eastern European allies, and we will continue to strengthen NATO’s collective defense, and we will step up our cooperation with Europe on economic and energy issues as well.
Let me close by making a final point. Diplomacy between the United States and Russia continues. We’ve emphasized that Russia still has a different path available -- one that de-escalates the situation, and one that involves Russia pursuing a diplomatic solution with the government in Kyiv, with the support of the international community. The Russian people need to know, and Mr. Putin needs to understand that the Ukrainians shouldn’t have to choose between the West and Russia. We want the Ukrainian people to determine their own destiny, and to have good relations with the United States, with Russia, with Europe, with anyone that they choose. And that can only happen if Russia also recognized the rights of all the Ukrainian people to determine their future as free individuals, and as a sovereign nation -- rights that people and nations around the world understand and support.
Thank you very much, everybody.
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