SEC CHARGES MAN WITH USING PHONY CREDIT UNION TO DEFRAUD INVESTORS

FROM:  SECURITIES AND EXCHANGE COMMISSION 

SEC Charges Indiana Man for Defrauding Investors in "Credit Union" Ponzi Scheme

On April 11, 2014, the Securities and Exchange Commission filed an action charging Indianapolis-based Timothy J. Coughlin, 63, and two entities that did business as "Oxford International Credit Union" or "Oxford International Cooperative Union" with conducting an Internet offering fraud in which investors lost millions of dollars by investing funds in a fictitious credit union. The complaint alleges that between June 2007 and December 2009, Coughlin and Oxford International Credit Union collected deposits from more than 5,000 investors exceeding $12.8 million dollars. Approximately 3,300 of the investors were U.S. residents, with victims residing in all 50 states and the District of Columbia. The SEC's complaint alleges that Coughlin misappropriated investor money to pay personal expenses, fund unrelated business expenses, and make distributions to other investors in a classic Ponzi-scheme fashion.

According to the SEC's complaint, to further the fraud, the defendants posted false information to investors' online accounts to create the appearance that their deposits in the fake credit union were earning substantial daily investment returns. The Oxford International Credit Union website for example, showed investors that their deposits were purportedly earning investment returns that averaged, during the January 2007 through December 2009 period, 0.471% each trading day, equating to an approximately 356% average annual rate of return. According to the complaint, however, the defendants did not actually make investments with the members' deposits sufficient to generate the returns they boasted. Coughlin and Oxford International Credit Union also falsely claimed that member accounts were insured by a private insurance company. Then, beginning in December 2008, Coughlin began operating a successor to Oxford International Credit Union, called Oxford International Cooperative Union, which also boasted bogus investment returns on its website from its inception in late 2008 through December 2011.

The SEC's complaint alleges that Coughlin misappropriated at least $5.97 million and used investor money for illegitimate purposes, including $1.57 million used for personal expenditures and $4.4 million (or approximately 35%) to pay other investors who had requested withdrawals from their Oxford International Credit Union accounts . Coughlin also transferred money from Oxford International Credit Union's accounts to bank accounts he controlled in the names of two relief defendants.

According to the SEC's complaint, in late 2008 and 2009, Coughlin began to deny investors' requests for withdrawals from their accounts. To explain his refusal to allow investors to access their funds, Coughlin falsely claimed that Internal Revenue Service and foreign tax authorities had frozen Oxford International Credit Union and Oxford International Cooperative Union's accounts.

In a parallel action, the U.S. Attorney's Office for the Eastern District of Virginia today unsealed a criminal complaint against Coughlin.

The SEC's complaint charges Coughlin, OICU Ltd. and OICU Investments Corp. with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and seeks disgorgement of all ill-gotten gains with prejudgment interest, civil penalties, conduct-based injunctions, and an officer-and-director bar against Coughlin. The SEC also seeks disgorgement and prejudgment interest from relief defendants American Quality Cleaning Services, Inc. (d/b/a "Oxford Privacy Group") and Avocalon LLC.

The SEC's investigation was conducted by Adam J. Eisner and Carolyn E. Kurr in the Washington, D.C. office, and supervised by C. Joshua Felker. The SEC's litigation is being led by Stephan J. Schlegelmilch and Bridget M. Fitzpatrick.

The SEC appreciates the assistance of the U.S. Attorney's Office for the Eastern District of Virginia; the Federal Bureau of Investigation; the Department of the Treasury, Treasury Inspector General for Tax Administration; the Indiana Secretary of State, Securities Division; the National Credit Union Administration; and the Ontario Securities Commission.

The SEC's investigation is continuing.

HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN CAMP'S STATEMENT ON THE U.S. TAX CODE

 FROM: U.S.  HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAVE CAMP 

"Every April when I file my taxes, I can’t help but stop and think: there is no better example of Washington inefficiency and ineffectiveness than the tax code.   The tax code is too complicated, takes too much time to comply with and it certainly costs too much.

Yet, some in Washington think taxes need to be even higher.  At a time when we’re all paying more for gas, more for groceries and more for health care, the last thing we need is to pay more to Washington.  

It's time to stand up and say 'enough is enough.'  Washington needs to live within its means, and make the tax code simpler and fairer so our economy gets stronger, more jobs are created and paychecks start going up again.  We’ve already lost a decade due to how weak the economy is, and before we lose a generation, it’s time for real, meaningful tax reform to get this economy back on track.

Earlier this year I released a blueprint for tax reform that does just that.   The non-partisan experts have looked at my bill, and they say it would grow the economy by over $1 trillion.  That means an extra $1,300 in the pockets of average families.

My draft makes the tax code more effective and efficient by getting rid of special interest handouts to lower tax rates for individuals, families and businesses.

We make the tax code so simple, that 95 percent of taxpayers get the lowest possible tax rate by simply claiming the standard deduction – no more gathering all those receipts and filling out all those forms.

This will not only help families, but it will help large and small businesses alike expand, hire new workers and increase benefits and take home pay for American workers.

So this year, as you fill out your taxes, think about what it would be like if you only had to fill out one form.  And on top of that, think about what it would be like if you could trust that Washington wouldn’t waste your hard-earned money."

FTC SETTLES CHARGES WITH PLASTIC LUMBER MANUFACTURER REGARDING MISLEADING CLAIMS

FROM:  FEDERAL TRADE COMMISSION 

FTC Approves Final Order Settling Charges That N.E.W. Plastics’ Environmental Claims for its Plastic Lumber Products Were Misleading

Following a public comment period, the Federal Trade Commission has approved a final consent order settling charges that N.E.W. Plastics Corp., a Wisconsin-based manufacturer of plastic lumber products, misled consumers and distributors about the recycled content, post-consumer recycled content, and recyclability of its products.

The FTC’s February 2014 complaint alleges that between September 2012 and March 2013 the company made false and misleading claims that its Evolve plastic lumber products are made from 90 percent or more recycled content. It also alleged that the company made false and misleading claims that its Trimax plastic lumber products are made from mostly post-consumer recycled content and that both Evolve and Trimax are recyclable.

Under the FTC’s final order, the company must have credible evidence to support any claims it makes about its products’ recycled content, post-consumer recycled content, recyclability, or any other environmental benefit, and is required to tell its distributors to stop using marketing material for the two products provided by the company before December 2013.

The final order also bars N.E.W. from making unqualified recyclable claims about any product or package, unless the product or package can be recycled in an established recycling program, and such facilities are available to at least 60 percent of consumers or communities where the product or package is sold.

EPA PROPOSES LARGEST TOXIC CLEANUP IN EPA HISTORY

FROM:  ENVIRONMENTAL PROTECTION AGENCY 

2014 News Releases

 EPA Proposes Plan to Remove Toxic Sediment from the Passaic River; Largest Cleanup in EPA History Will Protect People’s Health and Create Jobs

Release Date: 04/11/2014

Contact Information: Elias Rodriguez, (212) 637-3664, rodriguez.elias@epa.gov
(New York, N.Y.) In an historic action that will protect people’s health and the environment, and benefit riverfront communities, the U.S. Environmental Protection Agency today proposed a plan to remove 4.3 million cubic yards of highly contaminated sediment from the lower eight miles of the Passaic River in New Jersey. The sediment in the Passaic River is severely contaminated with dioxin, polychlorinated biphenyls (PCBs), heavy metals, pesticides and other contaminants from more than a century of industrial activity. The lower eight miles of the Passaic is the most heavily contaminated section of the river. Ninety percent of the volume of contaminated sediments in the lower Passaic are in the lower eight miles of the river.

The EPA is proposing bank-to-bank dredging – one of the largest volumes ever to be dredged under the EPA’s Superfund program – followed by capping of the river bottom.

The proposed plan is based on an extensive seven-year study of the lower eight miles of the river, known as a focused feasibility study, and was developed in consultation with the New Jersey Department of Environmental Protection, the U.S. Army Corps of Engineers, the U.S. Fish and Wildlife Service, and the National Oceanic and Atmospheric Administration and with outreach to representatives of the many communities along the lower Passaic River. The study examined the contamination and analyzed options for reducing the risks that the contaminants in this segment of the river pose to people’s health and the environment. The EPA will accept public comments on its proposed plan from April 21 to June 20.

The EPA will hold three public meetings to explain the proposal.
* May 7, 2014 at 7 p.m.
Portuguese Sports Club
55 Prospect Street
Newark, New Jersey, 07105

* May 2014 in Kearny, New Jersey
Specific date and location To Be Determined

* June 2014 in Belleville, New Jersey
Specific date and location To Be Determined

“High concentrations of dioxin, PCBs and other contaminants in the lower eight miles of the Passaic River are a serious threat to the people who eat fish and crabs from this river,” said Judith A. Enck, EPA Regional Administrator. “The EPA’s proposed cleanup plan will result in a cleaner river that protects people’s health and increases the productive use of one of New Jersey’s most important natural resources and creates jobs during the cleanup. Doing less is not good enough for this river or the people who live along it.”

A major source of dioxin in the river was pollution from the Diamond Alkali facility in Newark, New Jersey, where the production of Agent Orange and pesticides during the 1960s generated dioxin that contaminated the land and the river. In addition, approximately 100 companies are potentially responsible for generating and releasing dioxin, PCBs, heavy metals, pesticides and other contaminants into the river. Fish and shellfish in the lower Passaic, its tributaries and Newark Bay are highly contaminated with mercury, PCBs and dioxin. Fisheries along the river have long been closed due to the contamination. Catching crabs is prohibited and there are “Do Not Eat” advisories for all fish. Local plans for riverfront development have also been hindered because of sediment contamination. The site was added to the federal Superfund List in 1984.

The lower 17 miles of the Passaic River, which stretches from its mouth at Newark Bay to the Dundee Dam, are part of the Diamond Alkali Superfund site. From 1983 to 2001 extensive cleanup work was conducted on land at the Diamond Alkali facility and in the streets and homes near it. The proposed cleanup plan announced today addresses the lower eight miles of the river portion of the site.

Because of the nature and complexity of the Passaic River contamination, the EPA divided the investigation and consideration of cleanup options into two studies – one of the entire 17-mile stretch of the Lower Passaic from its mouth to the Dundee Dam and the other focused on just the lower eight miles. The study of the lower eight miles was conducted by the EPA. A long-term study of contaminated sediment in the 17-mile stretch is ongoing. It is being conducted by a group of approximately 70 parties potentially responsible for the pollution, with the EPA oversight. Information gained from the 17-mile study was integrated into EPA’s proposal for the cleanup of the lower eight miles. A portion of Newark Bay is also being studied by one of the parties potentially responsible for the contamination.

In the lower Passaic River, there is an approximately 10-to-15-foot deep reservoir of contaminated fine-grained sediment in the lower eight miles of the river. Under this plan, about 4.3 million cubic yards of contaminated sediment will be dredged and removed from the Passaic River. Once the top layer of contaminated sediment is removed from the river, a protective cap will be placed over the area that was dredged. The cap will consist of two feet of sand except along the shore where it will be one foot of sand and one foot of materials to support habitat for fish and plants. The cap will be monitored and maintained to ensure that the cleanup remains protective.

The proposed plan includes several options for managing the contaminated sediment after dredging. Air and water quality will be monitored during the work.

After receiving and considering comments from the public, the EPA will finalize a cleanup plan by early next year. Once a plan is finalized, engineering and design work necessary to carry out the plan will be done in the following years.

The proposed plan builds on dredging that has already occurred in two smaller areas with high concentrations of contaminants. In 2012, the EPA oversaw dredging in the Passaic near the Diamond Alkali facility in Newark. About 40,000 cubic yards of the most highly dioxin contaminated sediment were removed, treated and then transported by rail to licensed disposal facilities. In 2013, the EPA oversaw dredging of approximately 16,000 cubic yards of highly contaminated sediment from a half-mile stretch of the Passaic River that runs by Riverside County Park North in Lyndhurst, New Jersey. This area is located about 11 miles north of the river mouth and outside of the lower eight miles addressed in today’s proposed plan. The work, which is ongoing, was necessary because the EPA identified particularly high levels of contamination in the sediment in this portion of the river.

The Superfund program operates on the principle that polluters should pay for the cleanups, rather than passing the costs to taxpayers. The EPA searches for parties legally responsible for the contamination at sites that are placed on the Superfund list and seeks to hold those parties accountable for the costs of investigations and cleanups. Most of the work to-date to clean up the Passaic has been performed by parties responsible for the contamination. The EPA will similarly pursue agreements to ensure that the cleanup work proposed today be carried out and paid for by those responsible for the contamination at the site.

MISSION CONTROL ROOM FOR ORION SPACECRAFT

FROM:  NASA 

Mission Operations Director Paul Hill talks to the media as NASA Administrator Charles Bolden and Johnson Space Center Director Ellen Ochoa visit Mission Control in the newly renovated and historic White Flight Control Room, which will be used to support NASA’s Orion spacecraft. The mission patches that adorn the walls reflect the control room's previous use in the Space Shuttle Program. Orion is the exploration spacecraft designed to carry astronauts to destinations in deep space, including an asteroid and Mars. It will have emergency abort capability, sustain the crew during space travel and provide safe re-entry from deep space return velocities. Exploration Flight Test-1 (EFT-1), planned for December 2014, will be Orion's first mission. EFT-1 will send an uncrewed spacecraft 3,600 miles above the Earth for a two-orbit flight that will give engineers the chance to verify its design and test some of the systems most critical for the safety of the astronauts who will fly on it in the future. After traveling 15 times farther into space than the International Space Station, Orion will return to Earth at speeds near 20,000 mph, generating temperatures of up to 4,000 degrees Fahrenheit, before splashing down in the Pacific Ocean. Image Credit: NASA

IMMIGRATION SERVICES SCAMMERS ORDERED TO PAY REFUNDS TO CLIENTS

FROM:  FEDERAL TRADE COMMISSION 

FTC Wins Court Judgment Against Immigration Services Scam

Court Bans Baltimore-based Defendants from Providing Immigration Services
A federal court has ordered the operators of a Baltimore-based immigration services scam to pay as much as $616,000 in refunds to Spanish-speaking immigrants, who were deceived into paying the defendants for immigration services that they were not qualified or authorized to provide. The order bans the defendants from providing or promoting these services in the future.

The court found that some customers “suffered severely” for relying on the defendants. Several were deported and one was arrested and jailed for almost 11 months, according to the court.

In March 2013, the court found Manuel Alban, his wife Lola Alban, and their company, Loma International Business Group, Inc., liable for violating the FTC Act. Targeting Spanish speakers from El Salvador and Honduras, the Albans misled immigrants to believe they were authorized to provide immigration services for a fee, according to the court. Under federal regulations, except for attorneys, only authorized providers may accept money in exchange for preparing immigration forms on someone else’s behalf.

The court found that although the defendants were not authorized providers, they took in an estimated $479,000 to $753,000 from unsuspecting immigrants. The Court also noted that according to United States Citizenship and Immigration Services data, the agency denied or rejected more than 60 percent of the immigration applications handled by the Albans.

“Misleading people to steal their money and destroy their dreams crosses the line,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “The FTC is here to protect people from just these kinds of scams.”          

The court order requires Manuel Alban and his wife Lola Alban to pay the refund judgment in installments totaling up to $616,000, depending on the number of victims the FTC is able to locate to receive a refund.        

In addition to banning the defendants from providing immigration services, the order prohibits them, their employees, and others representing them from misrepresenting anything about goods or services they are promoting – including that they are qualified or authorized to provide immigration or tax preparation services.  It also requires all customer information held by the defendants to be destroyed, and all customer information held by a court-ordered monitor to be turned over to the FTC.

Consumer Information            

Spanish-speaking immigrants often are targeted by scammers who call themselves “immigration consultants” or “notarios” – or falsely claim that they are attorneys. The FTC has information in Spanish that explains how to find legitimate free or low-cost immigration advice from authorized providers, and where to report immigration services fraud. Because scammers target immigrants from around the world, the FTC’s immigration-related materials also are in Chinese, Korean, Creole, and Vietnamese.

AG HOLDER'S REMARKS AT BRIDGE DRUG COURT CEREMONY

FROM:  JUSTICE DEPARTMENT 

Attorney General Eric Holder Delivers Remarks at the Bridge Drug Court Ceremony in Charleston, South Carolina

~ Friday, April 11, 2014

Thank you, Your Honor – and good morning, everyone.  It is a pleasure to be in Charleston today, and a privilege to join you in celebrating such an important milestone in the life of today’s BRIDGE graduate.

I appreciate the opportunity to see firsthand the critical work that you all are doing to strengthen public health and build stronger, safer communities.  And I’d like to thank Judge [Bruce Howe] Hendricks for allowing me to observe today’s proceedings – and for your leadership of this outstanding program.  Just as importantly, I want to thank all of our program participants for sharing your stories.

I know the paths that brought you to this courtroom have been anything but easy.  But each of you is here today because you’ve decided not to let past choices – and challenges – define you.  You’re working hard to stay on a constructive path.  And I am proud of every one of you.

Since its inception, the BRIDGE pilot program has shown tremendous promise in helping to reduce recidivism by empowering determined people like you to overcome addiction, to fight through adversity, and to contribute to their communities.  None of this would be possible without the dedication of the judges of this Court; the prosecutors and staff of the U.S. Attorney’s Office for the District of South Carolina, including your outstanding U.S. Attorney, Bill Nettles; their counterparts in the Probation Office and in the Office of the Federal Defender; treatment service providers and members of the defense bar; and a wide range of community partners.

As a result of their efforts – and the work of participants like the graduate we recognize today, who has refused to give up or give in – to date, more than a dozen people have successfully completed this program.

That’s why I’m so pleased to celebrate with Katie this morning – as she joins this distinguished group and takes her place among the ranks of well over a million people across the country who have graduated from drug courts like this one.

Katie is a remarkable person who has demonstrated an uncommon ability to persevere in the face of tremendous challenges.  She has seen how drug addiction can bring a young mother who had never before been charged with anything but a motor vehicle violation into federal court – and put her family at risk.  Fortunately, through her involvement in the BRIDGE program, Katie has moved beyond associations that contributed to her substance dependency.  She has earned her GED.  And she’s learned important life skills that are helping her reach her potential – as a worker, as a citizen, and, most importantly, as the mother of two great kids.

Katie and her peers in this courtroom aren’t merely data points.  They are passionate individuals who have taken on the rigors of a cutting-edge drug court program in order to build brighter futures.  They’re also living proof that programs like this one can not only improve – and save – countless lives; they can help us conserve resources at a time when they could hardly be more scarce.

That’s why I made it a priority to be here, and why I’ve traveled around America to highlight innovative programs like this one – so jurisdictions across the country can emulate, learn from, and expand upon the work you’re doing right here in Charleston.

Last August, I launched a new “Smart on Crime” initiative that’s driving the Justice Department’s efforts to strengthen the federal criminal justice system and increase our focus on proven programs like this one.  As part of this initiative, I have directed every U.S. Attorney to designate a Prevention and Reentry coordinator in his or her office – something that U.S. Attorney Nettles has already done.

Just yesterday, the U.S. Sentencing Commission voted to modestly reduce federal sentencing guidelines for certain drug crimes – a change that marks a major step forward in our effort to reshape the criminal justice system’s approach to dealing with drug offenses.  This measured reduction sends a strong message about the need to reserve the harshest penalties for the most serious crimes.  And it will help rein in spending on our overburdened prison system, which consumes nearly a third of the Justice Department’s total budget, while preserving public safety.

Going forward, my colleagues and I will work with Congress to advance commonsense legislation like the bipartisan Smarter Sentencing Act to further enhance the fairness of our criminal justice system – and to secure the passage of President Obama’s budget request, which includes $173 million to sustain and advance this important work – so we can ensure that it remains a top priority throughout the nation.

I want to thank everyone here for their support of these ongoing efforts.  And I want to congratulate Katie, once again, on this extraordinary achievement.  I am inspired by your success.  And I encourage you to keep working hard.  Keep striving to transform your community and strengthen your country.  And never lose sight of your responsibility to serve as a role model for those around you – particularly the young people who need your support and look up to your example.

Each of you has the power to make a profound, positive difference in our collective effort to forge a more just, more fair, and more inclusive society.  And I look forward to hearing great things about all that you accomplish in the months and years ahead.

Thank you.

U.S. SENDS BEST WISHES TO CAMBODIAN PEOPLE ON THEIR KHMER NEW YEAR

FROM:  U.S. STATE DEPARTMENT 

Khmer New Year

Press Statement

John Kerry

Secretary of State

Washington, DC

April 11, 2014

---

On behalf of President Obama and the American people, I am delighted to send best wishes to the Cambodian people as you celebrate the Khmer New Year starting on April 14.
Since my time as Chairman of the Senate Foreign Relations Committee I have been strongly committed to helping the Cambodian people build a better tomorrow for future generations. I believe the path to a better tomorrow includes addressing the atrocities of Cambodia’s past and building a more democratic future.

The United States and Cambodia share common interests in promoting regional stability, fostering economic development, and improving health and education in Cambodia. And we look forward to strengthening our partnership in the years to come.
I wish your country peace, prosperity and a joyful New Year celebration.

EX-IM BANK AND PTA BANK SIGN MEMORANDUM OF UNDERSTANDING WORTH $100 MILLION

FROM:  EXPORT-IMPORT BANK 
Ex-Im Bank Signs $100 Million Agreement with PTA Bank

Washington, DC – Fred P. Hochberg, chairman and president of the Export-Import Bank of the United States (Ex-Im Bank), and Admassu Tadesse, president and chief executive of the Eastern and Southern African Trade and Development Bank (PTA Bank), signed a $100 million memorandum of understanding (MOU) at a conference hosted by the U.S. Chamber of Commerce at the GE “Garage” here yesterday.

“Yesterday we reached an agreement to work with members of the sub-Saharan African Diaspora community in America who wish to export U.S. goods and services to their home countries. The agreement aligns with the White House’s ‘U.S. Strategy Toward sub-Saharan Africa,’ which focuses on growth in the region,” said Chairman Hochberg. “By engaging Diaspora-owned businesses, the arrangement will help U.S. companies capitalize on unique opportunities abroad and support jobs here at home while contributing to the development of sub-Saharan Africa.”

The MOU signing capped a conference titled “Unlocking Growth in Africa: How the Diaspora can Partner with the Public and Private Sectors in the U.S. and Africa” held at the GE-powered “Garage,” a new high-tech experiential showcase where visitors can try out the latest technologies, including 3D printers and laser cutters.

According to the MOU, Ex-Im Bank and PTA Bank will explore options for utilizing up to $100 million in Ex-Im Bank medium- and long-term loan guarantees and/or direct loans to finance U.S. exports to sub-Saharan Africa that target both Diaspora businesses in the U.S. and PTA Bank’s member states.

Ex-Im Bank and PTA Bank have joined forces on number of transactions over the last 15 years to boost trade finance and U.S. exports to Africa. In 2011, Ex-Im Bank guaranteed a $60 million loan extended by HSBC to PTA Bank that financed the sale of American aircraft to Rwanda's RwandAir Express.

“PTA Bank has been growing its financing by about 30% per annum, of which close to half has gone into energy and infrastructure, with the renewable sub-sector a beneficiary. In the past two years, we have co-financed several independent power producers in various countries such as Kenya, Mauritius, Tanzania and Uganda, including wind farms and mini-hydros,” Mr. Tadesse said. “We are keen on furthering our financing of infrastructure and power development, and are looking forward to expanded financial cooperation with long-standing partners such as U.S. Exim Bank, among others.”

PTA Bank is a multilateral development bank that provides development capital and services to advance regional growth and integration.

In the past four years, Ex-Im Bank has authorized more than $4 billion in financing for U.S. exports to sub-Saharan Africa. In FY 2013 alone, Ex-Im Bank authorized a record 188 transactions totaling $604 million to facilitate exports to the region. Ex-Im Bank-supported exports accounted for three percent of all U.S. merchandise exports to sub-Saharan Africa during the same timeframe.

FLASHLIGHT APP CREATOR SETTLES CHARGES WITH FTC

FROM:  U.S. FEDERAL TRADE COMMISSION 

FTC Approves Final Order Settling Charges Against Flashlight App Creator

Following a public comment period, the Federal Trade Commission has approved a final order settling charges against Goldenshores, Inc., and its owner, Erik Geidl.

According to the FTC’s complaint, the company created a popular flashlight app for Android devices that the FTC charged deceived consumers with a privacy policy that did not reflect the app’s use of personal data and presented consumers with a false choice on whether to share their information.

The settlement, first announced in December 2013, prohibits Goldenshores and Geidl from misrepresenting how consumers’ information is collected and shared and how much control consumers have over the way their information is used.

The settlement also requires the defendants to provide a just-in-time disclosure that fully informs consumers when, how, and why their geolocation information is being collected, used and shared, and requires defendants to obtain consumers’ affirmative express consent before doing so.

The defendants also will be required to delete any personal information collected from consumers through the Brightest Flashlight app.

The Commission vote approving the final order and letters to members of the public who commented on it was 4-0.  (FTC File No. 132-3087

DOD PROVIDES VETERINARY CARE IN REMOTE LOCATIONS ON KODIAK ISLAND

FROM:  U.S. DEFENSE DEPARTMENT 

An Alaska Army National Guard UH-60 Black Hawk helicopter prepares to land at Coast Guard Air Station Kodiak in Alaska, April 6, 2014. The helicopter transported military medical and veterinary professionals to remote locations on Kodiak Island for Operation Arctic Care, a Defense Department training program to provide free medical, dental, vision and veterinary care to underserved communities. DOD photo by EJ Hersom.

Army Capt. Andrew Ciccolini, left, performs surgery on a dog with his assistant, Army Spc. Carla Rodulfo, during Operation Arctic Care at a military veterinary clinic on Kodiak Island, Alaska, April 7, 2014. Ciccolini is a veterinarian and Rodulfo is an animal care specialist assigned to the 218th Medical Detachment, Veterinary Services, Fort Lewis, Wash. DOD photo by EJ Hersom.

U.S. URGES SUPPORTING GLOBAL AGRICULTURE, FOOD SECURITY

FROM:  U.S. STATE DEPARTMENT 

United States Urges Partner Countries To Increase Support for the Global Agriculture and Food Security Program

Media Note

Office of the Spokesperson

Washington, DC

April 12, 2014

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Trust Fund Produces High Impact, Sustainable Results in the Global Fight against Poverty and Hunger

The Secretaries of the U.S. Department of the Treasury and the U.S. Department of State yesterday sent a letter to international partner countries urging nations around the world to expand their support for the Global Agriculture and Food Security Program (GAFSP).
The United States spearheaded the creation of GAFSP in the wake of the 2007-2008 food price crisis. It assists in the implementation of pledges made by the G-20 in Pittsburgh in September 2009. GAFSP promotes food security by providing merit-based financing for the agricultural sector in low-income countries, with a focus on smallholder farmers in poor communities. GAFSP financing and technical assistance helps to increase agricultural productivity, link farmers to markets, reduce risk and vulnerability, and improve rural livelihoods. Managed by the World Bank, GAFSP is a multi-donor trust fund and partnership among developing countries, development partners, civil society, and the private sector.
“Since GAFSP was established, we have seen sustainable reductions in hunger and malnutrition, but the challenge of meeting the global demand for food is just as pressing as ever,” wrote Treasury Secretary Jacob J. Lew and Secretary of State John F. Kerry. “We are proud to champion this innovative program, and we call upon our international partners to join us in supporting the work of GAFSP. Together, we can make progress in the effort to eradicate hunger and poverty.”

As leaders gather for the World Bank-International Monetary Fund 2014 Spring Meetings this week, yesterday’s letter highlights the important role that GAFSP is playing in supporting the efforts of some of the world’s poorest countries in alleviating hunger and malnutrition. The letter calls on international partners to pledge additional support to meet funding goals for GAFSP. In October 2012, the United States challenged the international community to provide much needed funding for food security, by committing to contribute $1 to GAFSP for every $2 from other donors, up to a maximum U.S. contribution of $475 million. Since the announcement of the funding challenge, other donors have provided $230 million in new pledges. An additional $720 million in pledges from other donors is needed in order to fully leverage matching funds from the United States.

GAFSP consistently produces high impact, sustainable results, and the program is expected to improve the livelihoods of at least 13 million farmers across 25 countries in Africa, Asia, and Latin America. Already, some countries have seen rural incomes increase by more than 200 percent. In Bangladesh, GAFSP has already reached more than 430,000 farmers in the first two years of a five-year program, providing smallholder producers with training and improved drought- and heat-tolerant seeds and fertilizer that will help farmers adapt to climate change. Two and a half years into its five year-long Rwanda project, GAFSP has already reached more than 92,000 direct beneficiaries, of which half are women. By helping to increase soil fertility in hillside areas, GAFSP has enabled farmers to improve their yields by an average of fourfold across various crops. GAFSP has also supported the introduction of new high nutrient crop varieties that could improve nutritional outcomes for farmers and their families.

U.S. EXTENDS NEW YEAR'S GREETINGS TO PEOPLE OF THAILAND

FROM:  U.S. STATE DEPARTMENT 

Thai New Year

Press Statement

John Kerry

Secretary of State

Washington, DC

April 11, 2014

On behalf of President Obama and the American people, it is my great pleasure to extend New Year’s greetings to the people of Thailand. I hope this Songkran provides all Thais an occasion to spend an enjoyable time with family and friends and to look forward to good luck and prosperity in the New Year.

We are proud to mark another year in the enduring friendship between Thailand and the United States. Our nations enjoy an unshakable bond that transcends politics in either of our countries, and we look forward to working together in the New Year on important issues such as trade relations, health research, security cooperation, and educational exchange.

I look forward to the opportunities that the New Year holds for both of our nations and for our alliance. I wish you a happy and healthy Songkran!

U.S. OFFERS WARMEST GREETINGS TO PEOPLE OF SRI LANKA ON THEIR NEW YEAR

FROM:  U.S. STATE DEPARTMENT 

Sinhala and Tamil New Year's Message

Press Statement

John Kerry

Secretary of State

Washington, DC

April 11, 2014

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On behalf of President Obama and the American people, I offer warmest greetings to the people of Sri Lanka and the vibrant global Sri Lankan diaspora.

This New Year brings a new opportunity for all Sri Lankans to join together in the spirit of tolerance, reconciliation, and peace. As Sri Lankans gather to mark the potential of the New Year, we join in celebrating with you.

As you continue your work to build a prosperous, democratic Sri Lanka, I offer my best wishes for a safe and happy holiday and a prosperous, peaceful year ahead.

PRESIDENT OBAMA'S WEEKLY ADDRESS FOR APRIL 12, 2014

April 12, 2014

FROM:  THE WHITE HOUSE 

Weekly Address: Ensuring Equal Pay for Equal Work

WASHINGTON, DC – In this week’s address, the President underscored the importance of ensuring equal pay for equal work and highlighted the steps his Administration has taken to expand opportunity and narrow the pay gap that exists between men and women. Just this week – on Equal Pay Day – the President took action to increase transparency and make it easier to recognize pay discrimination. Women make up half of America’s workforce, and are increasingly the primary-breadwinners in American families. Ensuring that women are paid fairly is a commonsense step to grow our economy.  That is why the President again called on Republicans in Congress to support the Paycheck Fairness Act and stop blocking progress that would benefit women – because when women succeed, America succeeds.

Remarks of President Barack Obama
Weekly Address
The White House
April 12, 2014

Hi, everybody.  Earlier this week was Equal Pay Day.  It marks the extra time the average woman has to work into a new year to earn what a man earned the year before.  You see, the average woman who works full-time in America earns less than a man – even when she’s in the same profession and has the same education. 

That's wrong.  In 2014, it’s an embarrassment. Women deserve equal pay for equal work.

This is an economic issue that affects all of us.  Women make up about half our workforce.  And more and more, they’re our families’ main breadwinners.  So it’s good for everyone when women are paid fairly.  That’s why, this week, I took action to prohibit more businesses from punishing workers who discuss their salaries – because more pay transparency makes it easier to spot pay discrimination.  And I hope more business leaders will take up this cause.

But equal pay is just one part of an economic agenda for women.

Most lower-wage workers in America are women.  So I’ve taken executive action to require federal contractors to pay their federally-funded employees at least ten dollars and ten cents an hour.  I ordered a review of our nation’s overtime rules, to give more workers the chance to earn the overtime pay they deserve.  Thanks to the Affordable Care Act, tens of millions of women are now guaranteed free preventive care like mammograms and contraceptive care, and the days when you could be charged more just for being a woman are over for good.  Across the country, we’re bringing Americans together to help us make sure that a woman can have a baby without sacrificing her job, or take a day off to care for a sick child or parent without hitting hardship.  It’s time to do away with workplace policies that belong in a “Mad Men” episode, and give every woman the opportunity she deserves.

Here’s the problem, though.  On issues that would benefit millions of women, Republicans in Congress have blocked progress at every turn. Just this week, Senate Republicans blocked the Paycheck Fairness Act, commonsense legislation that would help more women win equal pay for equal work.  House Republicans won’t vote to raise the minimum wage or extend unemployment insurance for women out of work through no fault of their own.  The budget they passed this week would force deep cuts to investments that overwhelmingly benefit women and children – like Medicaid, food stamps, and college grants.  And of course, they’re trying to repeal the Affordable Care Act for the fiftieth or so time, which would take away vital benefits and protections from millions of women.

I’m going to keep fighting to make sure that doesn’t happen.  Because we do better when our economy grows for everybody, not just a few.  And when women succeed, America succeeds.  Thanks, and have a great weekend.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR APRIL 11, 2014

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

AIR FORCE

Northrop Grumman Systems Corp., Rolling Meadows, Ill., has been awarded a $234,134,172 modification (P00082) on an existing contract (FA8625-12-C-6598) for the Large Aircraft Infrared Counter Measures (LAIRCM) calendar year 2014 base hardware buy and needed LAIRCM support. Work will be performed at Rolling Meadows, Ill., and is expected to be completed by April 29, 2016. A majority of the acquisition supports U.S. Air Force aircraft needs using fiscal 2014, 2013, and 2012 funds as well as National Guard and overseas contingency operations funds with a total amount of $234,134,172 being obligated at time of award. Thirteen percent of the current action relates to unclassified foreign military sales including the following countries: Germany, Australia, Saudi Arabia, and Strategic Airlift Capability-North Atlantic Treaty Organization Airlift Management Programme. Air Force Life Cycle Management Center/WLYK, Wright-Patterson Air Force Base, Ohio, is the contracting activity.
Boeing Co., McDonnell Douglas Corp., St. Louis. Mo., has been awarded a $9,901,126 undefinitized modification (P0005) to an existing undefinitized contract, FA3002-13-D-0012, with an initial face value of $75,598,874 for Royal Saudi Air Force F-15SA Training. This contract modification provides for an increase to accommodate emerging in-scope activities to include continental United States and outside the continental United States maintenance and aircrew and academic training. Work will be performed at St. Louis, Mo., and King Khalid Air Base, Khamis Mushayt, Kingdom of Saudi Arabia, and is expected to be completed by Aug. 5, 2019. This is 100 percent foreign military sales (FMS) for the Kingdom of Saudi Arabia. The FMS customer is the Air Force Security Assistance Training Squadron. The 338 Security Contracting Squadron/LGCI, Joint Base San Antonio, Randolph Air Force Base, Texas, is the contracting activity.

NAVY

Science Applications International Corp., McLean, Va., is being awarded a $9,422,253 modification to previously awarded contract (N00174-10-D-0009) to exercise option year four to perform engineering and demilitarization of munitions by providing analytical engineering and technical support services. The analytical engineering and technical support services will analyze requirements, perform assessment, data analysis/management, technical support, and program management support. Work will be performed in Quantico, Va. (60 percent), Indian Head, Md. (20 percent), and Tulsa, Okla. (20 percent) and is expected to be completed by May 2015. Contract funding will not be obligated at the time of award. Contract funding will be obligated on future individual task orders. Contract funds will not expire at the end of the current fiscal year. The Naval Surface Warfare Center, Indian Head Naval Ordnance Disposal Technology Division, Indian Head, Md., is the contracting activity.

El Dorado Engineering, Salt Lake City, Utah, is being awarded an $8,912,643 modification to previously awarded contract (N00174-10-D-0007) to exercise option year four to perform engineering and demilitarization of munitions by providing analytical engineering and technical support services. The analytical engineering and technical support services will analyze requirements, perform assessment, data analysis/management, technical support, and program management support. Work will be performed in Quantico, Va. (60 percent), Indian Head, Md. (20 percent), and Tulsa, Okla. (20 percent) and is expected to be completed by May 2015. Contract funding will not be obligated at the time of award. Contract funding will be obligated on future individual task orders. Contract funds will not expire at the end of the current fiscal year. The Naval Surface Warfare Center, Indian Head Naval Ordnance Disposal Technology Division, Indian Head, Md., is the contracting activity.

Northrop Grumman Systems Corp.-Electronics Sector, Linthicum, Md., is being awarded $8,900,000 for firm-fixed-price order 0002 under previously awarded Basic Ordering Agreement (N00164-13-G-WT15) to build two sets of AN/ALQ 240 (V) 1 weapons repairable assemblies in support of the P-8A AN/ALQ 240 Electronic Support Measures Repair Depot standup at the Naval Surface Warfare Center (NSWC) Crane Division. Work will be performed in Linthicum, Md., and is expected to be completed by July 2016. Fiscal 2012 and 2013 aircraft procurement, Navy funding in the amount of $8,900,000 will be obligated at the time of award and the funds will not expire at the end of the current fiscal year. NSWC Crane, Crane, Ind., is the contracting activity.

Raytheon Integrated Defense Systems, Largo Fla., is being awarded an $8,347,097 modification to previously awarded contract (N00024-12-C-5231) to exercise options for Cooperative Engagement Capability (CEC) for two AN/USG-2B Shipboard System, one DDG Mod Kit, and one DDG Mod INCO-R Kit. CEC is a sensor netting system that significantly improves battle force anti-air warfare capability. CEC improves battle force effectiveness by improving overall situational awareness and by enabling longer range, cooperative, multiple, or layered engagement strategies. Work will be performed in St. Petersburg Fla. (90 percent), Largo, Fla. (10 percent), and is expected to be completed by October 2015. Fiscal 2013 and 2014 shipbuilding and conversion, Navy and fiscal 2013 other procurement, Navy contract funds in the amount of $8,347,097 will be obligated at 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.

ARMY

RLB Contracting Inc.,* Port Lavaca, Texas, was awarded an $8,286,850 firm-fixed-price contract for deep draft maintenance dredging of the Houston Ship Channel from Carpenters to Greens. Fiscal 2014 other procurement funds in the amount of $8,286,850 were obligated at the time of the award. Estimated completion date is Oct. 20, 2014. Bids were solicited via the Internet with six received. Work will be performed in Houston, Texas. U.S. Army Corps of Engineers, Galveston, Texas, is the contracting activity (W9126G-14-C-0019).
Strata G Solutions, New Hope, Ala., awarded a $6,743,271 modification (P00001) to contract W31P4Q-12-D-0019 to incorporate the revised Smart, Wireless, Internal Combustion Engine Spiral 3 Technical Data Package, including increased quantity prices for each contract line item number. Funding and work performance location will be determined with each order. Estimated completion date is April 30, 2017. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.
*Small Business

DEFENSE SECRETARY HAGEL SIGNS JOINT VISION STATEMENT WITH MONGOLIAN DEFENSE MINISTER BAT-ERDENE

FROM:  U.S. DEFENSE DEPARTMENT 

Secretary of Defense Chuck Hagel and Mongolia Minister of Defense Dashdemberel Bat-Erdene sign a joint vision statement at the Ministry of Defense in Ulaanbaatar, Mongolia, April 10, 2014. DOD Photo by Erin A. Kirk-Cuomo.

Hagel, Mongolian Defense Minister Agree to Deepen Ties

By Cheryl Pellerin
American Forces Press Service

ULAANBAATAR, Mongolia, April 11, 2014 – Defense Secretary Chuck Hagel and Defense Minister Dashdemberel Bat-Erdene signed a joint vision statement here yesterday designed to deepen a decade-long defense relationship built on shared interests and forged in combat as troops of both nations fought together in Iraq and Afghanistan.

Mongolia was the final stop of a 10-day Asia-Pacific trip -- Hagel’s fourth in less than 12 months -- that began in Hawaii with a meeting of defense ministers of the 10 member states of the Association of Southeast Asian Nations, or ASEAN, and continued in Japan, China and Mongolia.

When Hagel arrived at Ulaanbaatar’s Chinggis Khaan International Airport, among the U.S. Embassy and Mongolian Ministry of Defense officials there to greet him was a woman dressed in a traditional Mongolian garment -- one similar to Mongolian bridal designs used as the basis for costumes worn by Queen Padme Amidala in “Star Wars Episode I: The Phantom Menace,” according to embassy officials.

On the ground, Hagel was presented with traditional welcoming gifts: a blue silk scarf and a silver bowl containing a Mongolian dairy product called aaruul, a dried fermented milk curd.

At the Ministry of Defense, Hagel was greeted by Bat-Erdene and reviewed the colorfully uniformed Mongolian Armed Forces Honor Guard before the two leaders sat down for a meeting and later signed the Joint Vision Statement for the U.S.-Mongolia Security Relationship.

The statement, Hagel said, “expresses our shared desire to continue deepening that defense relationship.”

At a joint press conference after the meeting, Hagel characterized Mongolia, which adopted democracy in 1990, as “a valued partner of the United States” and “a growing state in regional and global security.”

During the meeting with Bat-Erdene, Hagel told the press, “I commended the minister for significant contributions the Mongolian Armed Forces have made to security around the world through participation in many activities. These include United Nations Peacekeeping Operations and fighting alongside the United States in Afghan and Iraq.”

Over the past decade the two militaries have benefited from working together and learning from each other, the secretary added.

According to a U.S. official, the Defense Department provides about $1 million annually in International Military Education and Training, or IMET, funding for MAF troops. IMET graduates have led all 10 rotations to Iraq and Afghanistan.
Foreign Military Financing funds have been used to equip the Mongolian peacekeeping brigade with vehicles, communications equipment and personal equipment. That funding is about $2 million annually, the official said.
At the press conference Hagel said, “As Mongolia invests in defense modernization, the United States will continue to work with our Mongolian partners to include joint training and exercises. This would include increasing opportunities for Mongolia to observe and participate in multilateral exercises.”
The secretary said the defense leaders had also discussed opportunities for the forces to work even more closely together.

A current exercise in which the United States and Mongolia participate is Khaan Quest, one of the world’s largest training exercises focused on peacekeeping operations. A joint venture, Hagel said, is the Five Hills Training Center near Ulaanbaatar, established in 1983. The joint-training military site gives units large areas for field training and exercises and classroom settings for strategic planning lessons.

“We’ll continue to do more together regarding humanitarian assistance and disaster relief, the secretary said, “and more joint training exercises that we discussed.”

Hagel added, “We in the United States believe that military-to-military cooperation between Mongolia and the United States is very solid, it is very strong, and we look forward to continuing to deepen and strengthen our military cooperation and relationship.”

A strong U.S.-Mongolia defense relationship is important to America’s rebalance to the Asia-Pacific region, the secretary noted, adding that he’s made that point during his current visit to the region and in discussions with Minister Bat-Erdene.
“I did share with the minister some of my reflections on this 10-day trip. I briefed him on all the stops I’ve made,” Hagel said. “I told him about the candid exchanges I’ve had at every stop, including my most recent stop in China, and I specifically mentioned the conversations I had in China regarding the regional security issue and China’s and America’s shared interest in putting our military-to-military relationship on stronger footing, which we think is good for the Asia-Pacific region.”

Hagel said he’d met with 13 Asia-Pacific defense ministers on the trip “and for all those discussions in this 10-day trip it’s clear to me that to preserve the region’s growth and dynamism and opportunities depends on 14 strong security relationships throughout the region, increasing cooperation in areas of common interest, and resolving disputes peacefully.”

Many challenges face all nations in the region today, he added, but also many opportunities.
“We must continue to work together to seize these opportunities as we all build a better future for all of our people,” the secretary said.

After the press conference, Hagel met with 26 Mongolian soldiers who have deployed to Iraq and Afghanistan and for peacekeeping missions in Africa, including Sierra Leone, South Sudan and Chad. The secretary thanked them for their service and sacrifices.

Mongolia has about 350 troops in Afghanistan today and they are on their 10th rotation conducting security operations. They also had 10 rotations of troops in Iraq, a defense official said.

Hagel’s final stop in Ulaanbaatar was the Government House where he met with Mongolian President Tsakhia Elbegdorj.

Hagel’s visit was the first time in 10 years Mongolia’s defense minister and president have met with a U.S. defense secretary, a senior defense official said, and the visit was critical to Mongolia's "Third Neighbor Policy" of outreach to governments beyond China and Russia.

But before Hagel left to meet with the president he received one more traditional gift from the minister of defense -- a 9.5-year old Mongolian horse, small but sturdy with a reddish coat, led by a handler to the area where the secretary was visiting MAF troops.

Hagel beamed and announced that he was naming the horse Shamrock.
“The reason I’m naming him Shamrock,” Hagel told the smiling crowd, “is that shamrock was the mascot of a place I graduated from, St. Bonaventure School in Columbus, Neb.”

Before he left for his meeting with the president, Hagel admired the horse, thanked the minister, and posed with the horse, throwing his arm across Shamrock’s withers as he was told that he would receive letters about Shamrock’s activities and well-being since the secretary was unable to take the horse to the United States.

Later, in the military aircraft on the way home, the secretary showed the reporters traveling with him a large framed photograph of Hagel and Shamrock standing cozily together, Shamrock wearing a hackamore of leather and polished stones and metal tied with a blue silk scarf.

The secretary said he would send the framed photograph to St. Bonaventure for the school’s permanent collection of graduate memorabilia.

PREPARING A COMPOSITE ROCKET PROPELLANT TANK

FROM:  NASA 

NASA and Boeing engineers are inspecting and preparing one of the largest composite rocket propellant tanks ever manufactured for testing. The composite cryotank is part of NASA’s Game Changing Development Program and Space Technology Mission Directorate, which is innovating, developing, testing and flying hardware for use in NASA's future missions. NASA focused on this technology because composite tanks promise a 30 percent weight reduction and a 25 percent cost savings over the best metal tanks used today. The outer shell of the 18-foot-diameter (5.5-meter) cryotank is the same size as propellant tanks used on today’s full-size rockets. The tank was manufactured at the Boeing Developmental Center in Tukwila, Wash., and like artists, the team demonstrated their passion and commitment by signing their work. The silver signatures of the NASA and Boeing team members are visible on the black dome end of the tank. NASA’s Super Guppy delivered the tank in March 2014 to NASA’s Marshall Space Flight Center in Huntsville, Ala., and the Kmag, a 96-wheeled cargo truck, transported the tank to a Marshall Center test area. The 28,000-gallons (105.992- liter) tank will be insulated and placed in a test stand where it will be loaded with liquid hydrogen cooled to extremely cold, or cryogenic temperatures. The orange ends of the tank are made of metal and will attach to the test stand so that structural loads can be applied similar to those the tank would experience during a rocket launch. This advanced composite cryotank could benefit many of NASA’s deep space exploration spacecraft including NASA's Space Launch System, the largest most powerful rocket ever built. Image Credit-NASA-MSFC-Fred Deaton.

HHS SAYS U.S. POPULATION GETTING HEALTHIER

FROM:  DEPARTMENT OF HEALTH AND HUMAN SERVICES

HHS announces progress in disease prevention and health promotion

The nation’s health is improving in more than half of the critical measures that are known to have major influence in reducing preventable disease and death, according to a new report from the U.S. Department of Health and Human Services.

Healthy People 2020 represents the nation’s current 10-year goals and objectives for health promotion and disease prevention. Twenty-six specific measures—in categories such as access to care, maternal and child health, tobacco use, nutrition and physical activity—were identified as high-priority health issues. These Leading Health Indicators (LHI), if addressed appropriately, have the potential to significantly reduce major influences or threats on the public’s health that cause illness and death.

“The Leading Health Indicators are intended to motivate action to improve the health of the whole population. Today’s LHI Progress Report shows that we are doing just that,” says Dr. Howard Koh, Assistant Secretary for Health. Koh also notes that with the full implementation of the Affordable Care Act, we can expect to see more improvements across these indicators.

There are 14 health indicators that have either been met or are improving in this first third of the decade, including:

Fewer adults smoking cigarettes;
Fewer children exposed to secondhand smoke;
More adults meeting physical activity targets; and
Fewer adolescents using alcohol or illicit drugs.
While progress has been made across several indicators, the LHI Progress Report highlights areas where further work is needed to improve the health of all Americans. There are 11 Leading Health Indicators that have not shown significant improvement at this point in the decade, and 1 indicator where only baseline data are available.

FTC, DOJ ANTITRUST STATEMENT ON SHARING CYBERSECURITY INFORMATION

FROM:  FEDERAL TRADE COMMISSION 

FTC, DOJ Issue Antitrust Policy Statement on Sharing Cybersecurity Information

Sharing Cyber Threat Information Can Help Secure Nation’s Networks and Improve Efficiency; Properly Designed Sharing Not Likely to Raise Antitrust Concerns
The Federal Trade Commission and the Department of Justice today issued a policy statement on the sharing of cyber-security information that makes clear that properly designed cyber threat information sharing is not likely to raise antitrust concerns and can help secure the nation’s networks of information and resources. The policy statement provides the agencies’ analytical framework for information sharing among private entities and is designed to reduce uncertainty for those who want to share ways to prevent and combat cyberattacks.

“Because of the FTC’s long experience promoting data security, we understand the serious threat posed by cyberattacks,” said FTC Chairwoman Ramirez. “This statement should help private businesses by making it clear that antitrust laws do not stand in the way of legitimate sharing of cybersecurity threat information.”

“The Department of Justice is committed to doing all it can to protect the security of our nation’s networks.  Through the FBI and the National Security and Criminal Divisions, the department plays a critical role in preventing and prosecuting cybercrime,” said Deputy Attorney General James M. Cole.  “Private parties play a critical role in mitigating and responding to cyber threats, and this policy statement should encourage them to share cybersecurity information.”

“Cyber threats are increasing in number and sophistication, and sharing information about these threats, such as incident reports, indicators and threat signatures, is something companies can do to protect their information systems and help secure our nation’s infrastructure,” said Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division. “With proper safeguards in place, cyber threat information sharing can occur without posing competitive concerns.”

In the policy statement, the federal antitrust agencies recognize that the sharing of cyber threat information has the potential to improve the security, availability, integrity and efficiency of the nation’s information systems. The policy statement also emphasizes that the legitimate sharing of cyber threat information is very different from the sharing of competitively sensitive information such as current or future prices and output or business plans, which may raise antitrust concerns. Cyber threat information is typically technical in nature and covers a limited type of information, and disseminating that information appears unlikely to raise competitive concerns.

The joint Department of Justice/Federal Trade Commission “Antitrust Guidelines for Collaborations Among Competitors” provide an overview of the agencies’ analysis of information sharing as a general matter. The agencies consider whether the relevant agreement likely harms competition by increasing the ability or incentive to raise price above or reduce output, quality, service or innovation below what likely would prevail in the absence of the relevant agreement.

Previous antitrust analysis on cyber threat information sharing was issued in October 2000, when the Antitrust Division issued specific guidance in a business review letter to Electric Power Research Institute Inc. Under the Justice Department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the division will challenge the action under the antitrust laws. In that letter, the Antitrust Division confirmed that it had no intention of taking enforcement action against the company’s proposal to exchange certain cyber-security information, including exchanging actual real-time cyber threat and attack information. In that matter, the division concluded that as long as the information exchanged was limited to physical and cyber-security issues, the proposed interdictions on price, purchasing and future product innovation discussions should be sufficient to avoid any threats to competition. The legal analysis in that matter remains current.

PRESIDENT OBAMA'S REMARKS ON NOMINATING SYLVIA BURWELL FOR SECRETARY OF HHS

FROM:   THE WHITE HOUSE 

Remarks by the President Nominating Sylvia Mathews Burwell as Secretary of Health and Human Services

Rose Garden

10:54 A.M. EDT

THE PRESIDENT:  Hey!  (Applause.)  All right, everybody, have a seat.  Have a seat.  Have a seat.  Well, good morning.  In my sixth year in office, I am extraordinarily grateful to have so many aides and advisors who have been there since the earliest days.  But it’s still somewhat bittersweet when any of them leave for new endeavors -- even when their successor is wonderful.

In early March, Kathleen Sebelius, my Secretary of Health and Human Services, told me she’d be moving on once the first open enrollment period under the Affordable Care Act came to an end.  And after five years of extraordinary service to our country -- and 7.5 million Americans who have signed up for health coverage through the exchanges -- (applause) -- she’s earned that right.  I will miss her advice, I will miss her friendship, I will miss her wit -- but I am proud to nominate someone to succeed her who holds those same traits in abundance:  Sylvia Mathews Burwell.  (Applause.)

Now, just a couple things about Kathleen.  When I nominated Kathleen more than five years ago -- I had gotten to know Kathleen when she was governor at Kansas and had shown extraordinary skills there; was a great advisor and supporter during my presidential campaign, and so I knew that she was up for what was a tough job -- I mentioned that one of her many responsibilities at HHS would be to make sure our country is prepared for a pandemic flu outbreak.  I didn’t know at the time that that would literally be her first task.  (Laughter.)  Nobody remembers that now -- but it was.  And it just gives you a sense of the sorts of daily challenges that Kathleen has handled, often without fanfare, often unacknowledged, but that have been critical to the health and welfare of the American people. 

She has fought to improve children’s health, from birth to kindergarten; expanded mental health care; reduced racial and ethnic disparities; brought us closer to the first AIDS-free generation.  She’s been a tireless advocate for women’s health.   

And, of course, what Kathleen will go down in history for is serving as the Secretary of Health and Human Services when the United States of America finally declared that quality, affordable health care is not a privilege, but it is a right for every single citizen of these United States of America.  (Applause.)

Kathleen has been here through the long fight to pass the Affordable Care Act.  She helped guide its implementation, even when it got rough.  She’s got bumps, I’ve got bumps, bruises -- but we did it because we knew of all the people that we had met, all across the country, who had lost a home, had put off care, had decided to stay with the job instead of start a business because they were uncertain about their health care situation.  We had met families who had seen their children suffer because of the uncertainty of health care.  And we were committed to get this done.  And that’s what we’ve done, and that’s what Kathleen has done.

Yes, we lost the first quarter of open enrollment period with the problems with HealthCare.gov -- and they were problems.  But under Kathleen’s leadership, her team at HHS turned the corner, got it fixed, got the job done, and the final score speaks for itself:  There are 7.5 million people across the country that have the security of health insurance, most of them for the very first time.  And that's because of the woman standing next to me here today.  (Applause.)  And we are proud of her for that.  That's an historic accomplishment.  (Applause.)  That's right.

And, by the way, in the meantime, alongside 7.5 million people being enrolled, health care costs under Kathleen’s leadership are growing at their slowest rate in 50 years.  I keep on reading folks saying, oh, they're not doing anything about cost, except they're growing at the slowest rate in 50 years.  What does that mean?  That's in part because of Kathleen’s extraordinary leadership.

Health records are moving from dog-eared paper to high-tech systems.  Kathleen partnered with the Department of Justice to aggressively pursue health care fraud and return billions of dollars -- record sums -- to the Medicare Trust Fund. 

So, all told, Kathleen’s work over the past five years will benefit our families and this country for decades to come.  So we want to thank Kathleen’s husband, Gary, the “First Dude” of Kansas.  (Laughter.)  We got two outstanding sons, Ned and John, who have been willing to share their mom with us these past five years.  And, Kathleen, I know that your dad -- who served as governor of Ohio, and who inspired you to pursue public service and who passed away last year -- would have been so proud of you today.  So, Kathleen, we want to thank you once again for your service to our country.  (Applause.)

Now, we know there’s still more work to do at HHS.  There’s more work to do to implement the Affordable Care Act.  There’s another enrollment period coming up about six months from now.  There’s a whole array of responsibilities to meet over at this large and very important agency.  And I could choose no manager as experienced, as competent as my current Director of the Office of Management and Budget:  Sylvia Mathews Burwell.  (Applause.)

Sylvia is from a small town -- Hinton, West Virginia.  So she brings the common sense that you see in small towns.  She brings the values of caring about your neighbor and ordinary folks to some of the biggest and most complex challenges of her time.  She’s a proven manager who’s demonstrated her ability to field great teams, forge strong relationships, and deliver excellent results at the highest levels.  And she’s done it both in the public and private sectors.

As COO and later president for global development of the Gates Foundation, Sylvia worked on the cutting edge of the world’s most pressing health challenges.  As the head of the Walmart Foundation, and a member of the board at MetLife, she gained firsthand experience into how insurance markets work, and how they can work better for businesses and families alike.

Here, as my Budget Director at the White House, she’s already delivered results.  After all, in the year since she arrived, the deficit has plunged by more than $400 billion.  I’m just saying.  (Laughter.)  That's happened during that time.  (Applause.)

When the government was forced to shut down last October, and even as most of her own team was barred from reporting to work, Sylvia was a rock -- a steady hand on the wheel who helped navigate the country through a very challenging time.  Once the government was allowed to reopen, Sylvia was vital to winning the two-year budget agreement that put an end to these manufactured crises that we had seen here in Washington so that we could keep our full focus on growing the economy and creating new jobs, and expanding opportunity for everybody who is seeking opportunity.  And all the while, she’s helped advance important initiatives to bring the government into the 21st century, including her efforts to speed up job creation by dramatically speeding up the permitting process for big infrastructure projects.

So Sylvia is a proven manager, and she knows how to deliver results.  And she’ll need to be a proven manager because these are tough tasks, big challenges.  From covering more families with economic security that health insurance provides, to ensuring the safety of our food and drug supply, to protecting the country from outbreak or bioterror attacks, to keeping America at the forefront of job-creating medical research, all of us rely on the dedicated servants and scientists, the researchers at HHS and the FDA and CDC and NIH.  All of them are an extraordinary team, and sometimes the American people take for granted the incredible network of outstanding public servants that we have who are helping to keep us healthy and helping improve our lives every single day.

So I want to thank Stephen, Sylvia’s husband, and Mathew and Helene for sharing wife and mom with us a little bit longer.  We’ll miss seeing you around the White House, but I know that you’re going to do an outstanding job as America’s Secretary of Health and Human Services.  I hope that the Senate confirms Sylvia without delay.  She’s going to do great.  Last time she was confirmed unanimously -- I’m assuming not that much has changed since that time.  (Laughter.) 

And with that, I want to give them both an opportunity to say a few words, starting with Kathleen.  (Applause.) 

SECRETARY SEBELIUS:  Thank you.  Well, I want to start by thanking you, Mr. President, and Mr. Vice President, for giving me the opportunity of a lifetime to serve in this Cabinet.  I want to thank my HHS family, many of whom are here -- at least the health leaders are here -- for their incredible work.  And my personal family, represented today by our older son Ned, and my wonderful daughter-in-law Lisa; my husband Gary is on the Bench in Kansas today doing multiple hearings, which he does each and every day, and our younger son is in Ecuador.  But they’re with us in spirit.

The President has already made this case, but I want to remake it.  HHS is an amazing department.  It’s full of bright and talented and hardworking people who believe strongly in our important mission:  providing health care and essential human services to all Americans.

Now, inscribed on the walls of the Humphrey Building, where your office will be, are the words of the namesake.  And what Hubert Humphrey said is, “The moral test of government is how that government treats those who are in the dawn of life, the children; those who are in the twilight of life, the elderly; and those who are in the shadow of life.”  And that really, I think, describes what we do at HHS. 

From our work on birth-to-kindergarten initiatives to providing for the elderly and disabled, our employees help their friends and neighbors every day.  The researchers in NIH labs and scientists working to improve new drugs and devices are helping change the face of humanity by advancing new cures, research and innovation.  We’re advancing public health in the U.S. and around the globe with anti-smoking efforts and promoting maternal and child health. 

Finally, behavioral health and physical health issues will be considered both part of a central treatment, and that’s a big step forward.  Our workers, as the President said, look out for a safe and secure food and drug supply in a global market.  And our smart diplomacy, sharing health expertise and advances, win the hearts and minds of nations across the globe.  We have done transformational work in tribal communities across this country that will never be the same again.

So at any point in our history, that mission would be highly rewarding and some of the most important work anybody could do.  But I’ve had an additional amazing opportunity -- no one has ever had this before -- I got to be a leader of HHS during these most historic times.  We are on the front lines of a long overdue national change -- fixing a broken health system.  Now, this is the most meaningful work I’ve ever been a part of.  In fact, it’s been the cause of my life.  And I knew it wouldn’t be easy.  There’s a reason that no earlier President was successful in passing health reform, despite decades of attempts. 

But throughout the legislative battles, the Supreme Court challenge, a contentious reelection and years of votes to turn back the clock, we are making progress, tremendous progress.  And critics and supporters alike are benefitting from this law.  My professional work as a legislator and insurance commissioner and a governor have been tremendously helpful in navigating the policy and politics of this historic change. 

But at the end of the day, health is personal.  It’s personal to all of us.  Family illnesses and personal health challenges touch us to our core.  I’ve spent time as a daughter navigating care for ill parents.  As a mother and now a grandmother, I have experienced and worried about prenatal care and healthy babies.  We’ve had family health challenges, as all of us have.  And finding the right care can be difficult even with the best contacts and the right resources.

So the personal reward for me at the end of the day are the folks who approach me, the strangers who approach me at a meeting or pass me a note on a plane, or hand me a phone with someone on the other end saying thank you.  Their stories are so heartening about finally feeling secure and knowing they can take care of themselves and their families. 

Unfortunately, a page is missing.  (Laughter.) 

So I’m just grateful for having had this wonderful opportunity.  The President was in Austin yesterday at the LBJ Library, commemorating 50 years in the civil rights efforts led by Lyndon Johnson.  And 50 years ago, my father was part of that historic Congress.  He served in the Congress with the passage of Medicare and Medicaid, with Head Start.  And those programs are now in the agency I’ve had the honor to lead.  It seems like a wonderful passing of the baton.   

And the Affordable Care Act is the most significant social change in this country in that 50-year period of time.  So I am so grateful to have had this opportunity.  I appreciate all of the effort and support.  I thank my Cabinet colleagues who are here on the front row.  And not only are they here today on the front row, but they’ve been part of an all-hands-on-deck effort making sure that that 7.5 million people were able to sign up for affordable health care. 

So thank you, Mr. President.  And what I know is that Sylvia -- in the year I’ve had the opportunity to work with her -- is a trusted and valued friend, a great partner.  She will be a terrific leader for HHS.  So I’ll turn it over to Sylvia.  (Applause.)

MS. BURWELL:  First, I’d like to thank you, Mr. President and Mr. Vice President, for the trust you’ve placed in me at my role at OMB and your confidence in nominating me for this new role.

Second, as we all honor Kathleen’s accomplishments here today, I also want to personally thank her for her support and friendship through this year.  I want to express my heartfelt thanks to the team at the Office of Management and Budget and to our congressional counterparts, with whom I’ve had the privilege to work closely throughout this year.

OMB is an extraordinary institution.  It’s a credit to the professionalism and commitment of OMB’s people that we’ve been able to meaningfully improve our nation’s fiscal policy and government management over the past year.  I also want to thank my family, especially my husband, Stephen.  It’s their support that allows me to serve.

I’m humbled, honored, and excited by the opportunity to build on the achievements that Kathleen, the President, and so many others have put in place.  If confirmed by the Senate, I look forward to carrying on the important work of ensuring that children, families, and seniors have the building blocks of healthy and productive lives, whether it’s through implementing the Affordable Care Act, supporting affordable childcare, or finding new frontiers to prevent and treat disease.

Thank you, Mr. President.  (Applause.)

THE PRESIDENT:  Give these extraordinary women one more big round of applause.  Thank you, Kathleen, for your service.  Thank you, Sylvia, for your great work.  (Applause.)

END
11:16 A.M. EDT