PRESIDENT OBAMA'S REMARKS ON ENERGY AT WALMART IN MOUNTAIN VIEW, CALIFORNIA

FROM:  THE WHITE HOUSE 

May 9, 2014

Remarks by the President on American Energy

Walmart
Mountain View, California

9:48 A.M. PDT

THE PRESIDENT:  Hello, Mountain View!  (Applause.)  It’s good to be in California.  Everybody, have a seat.  Have a seat.  This is actually my third day on the West Coast.  On Wednesday, we went to L.A., then we went to San Diego, we’re here in the Bay Area.  But I have to get back because Sunday is what?

AUDIENCE:  Mother’s Day!

THE PRESIDENT:  It is Mother’s Day.  That is a public service announcement -- do not forget.  (Laughter.)  It’s Mother’s Day. 

I told Michelle one time, I said, how come people put so much emphasis on Mother’s Day, and Father’s day not so much?  (Laughter.)  She said every day other than Mother’s Day is Father’s Day.  (Laughter and applause.)  Which I thought kind of quieted me down.

I want to thank your mayor, Chris Clark, for hosting us.  (Applause.)  I want to thank the folks at Walmart.  And I know this looks like a typical Walmart, but it is different -- and that’s why I’m here.  A few years ago, you decided to put solar panels on the roof of the store.  You replaced some traditional light bulbs with LEDs.  You made refrigerator cases more efficient.  And you even put in a charging station for electric vehicles.  And all told, those upgrades created dozens of construction jobs and helped this store save money on its energy bills.  And that’s why I’m here today -- because more and more companies like Walmart are realizing that wasting less energy isn’t just good for the planet, it’s good for business.  It’s good for the bottom line.

AUDIENCE MEMBER:  (Inaudible.)

THE PRESIDENT:  Yes, see, he agrees.  (Applause.)  And it means jobs.

Changing the way we use energy is just one of the ways Americans have been working so hard to move this country forward.  In the wake of the worst financial and economic crisis in generations, our businesses now have created over 9.2 million new jobs.  A housing market that was reeling is rebounding.  An auto industry that was flat-lining is now booming.  You’ve got a manufacturing sector that had lost a third of its jobs during the ‘90s and now is adding jobs for the first time.  More than 8 million Americans have now signed up for health care coverage through the Affordable Care Act.  (Applause.)  Troops that were fighting two wars are coming home.  And rather than create jobs in other countries, more companies are actually choosing to create jobs and invest right here in the United States of America.

But we’ve got a long way to go before we get to where we need to be -- which is an economy where everybody who works hard, everybody who takes responsibility has a chance to get ahead, and that we have a chance to build an economy that works not just for a few at the top, but for everybody.  That’s our goal -- the idea that no matter who you are, no matter what you look like, no matter where you come from, what your last name is, if you work hard, if you take responsibility, you can make it here in America. 

And that starts with helping businesses create more good jobs.  One of the biggest factors in bringing jobs back to America has been our commitment to American energy over the last five years.  When I took office, we set out to break our dependence on foreign oil.  Today, America is closer to energy independence than we have been in decades.  We generate more renewable energy than ever, with tens of thousands of good American jobs to show for it.  We produce more natural gas than anyone -- and nearly everybody’s energy bill is lower because of it.  So are our carbon emissions that cause climate change.

We set new fuel standards for our cars and trucks so that they’ll go twice as far on a gallon of gas by the middle of the next decade.  That saves the typical family about $8,000 at the pump.  And for the first time in nearly 20 years, America produces more oil here at home than we buy from other countries. 

So we’re producing more traditional energy, but we’re also becoming a leader in the energy sources of the future.  We’re becoming a global leader in solar, thanks in part to the investments we’ve made in the Recovery Act.  Over the past few years, the cost of solar panels have fallen by 60 percent; solar installations have increased by 500 percent.  Every four minutes, another American home or business goes solar, and every panel is pounded into place by a worker whose job cannot be overseas.

So today, no matter where you live or where you do business, solar is getting cheaper and is getting easier to use than before.  And with more businesses and rural cooperatives and homes choosing solar, prices keep coming down, manufacturers keep getting more innovative, and more jobs are created.  Last year, jobs in the solar industry increased by 20 percent.
 
But we’ve got more work to do.  And I want to work with Congress to do it.  Unfortunately, Congress has not always been as visionary on these issues as we would like.  It can be a little frustrating.  But in this Year of Action, wherever I can go ahead and create my own opportunities for new jobs, I'm going to take it. 

And so far, I’ve taken more than 20 executive actions -- from launching new hubs to attracting more high-tech manufacturing jobs to America, to reforming our job training programs to make sure more Americans are getting the skills they need to get the jobs that exist right now.

And so today, here at Walmart, I want to announce a few more steps that we’re taking that are going to be good for job growth and good for our economy, and that we don't have to wait for Congress to do.  They are going to be steps that generate more clean energy, waste less energy overall, and leave our kids and our grandkids with a cleaner, safer planet in the process.

So let me list these out.  Number one, we know that making buildings more energy efficient is one of the easiest, cheapest ways to create jobs, save money, and cut down on harmful pollution that causes climate change.  It could save our businesses tens of billions of dollars a year on their energy bills -- and they can then use that money to grow and hire more folks.  It would put construction workers back to work installing new systems and technologies.  So this is what you call a win-win-win.

So that’s why, three years ago, I announced what we called the Better Buildings Initiative.  It's an ambitious plan to improve the energy efficiency of America’s commercial buildings by 20 percent by the year 2020.  And already we've got 190 businesses and organizations that have signed on.  On average, they’re on track to meet their goal -- cutting energy use by 2.5 percent every single year.  Together, they’ve already saved $300 million in energy costs.  So we know it works. 

And that’s why, over the past few months, I’ve been picking up the phone and reaching out to more leaders to get them on board.  And today, they’re stepping up -- from cities, school districts, businesses, universities, you're seeing folks move on energy efficiency.  GM is pledging to improve energy efficiency in 31 plants.  The University of Virginia is doing the same thing in its buildings.  Cities like Little Rock, Kansas City and Detroit are replacing regular street lights with more efficient LEDs. 

And at Walmart, you’ve committed to reducing energy consumption across 850 million square feet of space.  That's a lot.  That's enough to cover more than half of the city of San Francisco.  Taken together, this is going to make a difference, and it's the right thing to do for the planet, but it’s also the right thing to do for the bottom line.  Because when you save that money you can pass that money back to consumers in the form of lower prices, or you can use it to create more jobs. 

So folks in the private sector are doing their part to create jobs and reduce pollution and cut waste.  I’m making sure the federal government does its part.  Two years ago, I ordered $2 billion in energy upgrades to federal buildings.  Today, I’m ordering an additional $2 billion in upgrades over the next three years.  And these upgrades will create tens of thousands of construction jobs and save taxpayers billions of dollars. 

The Department of Energy is putting a new efficiency standard -- set of efficiency standards in place that could save businesses billions of dollars in energy costs and cut carbon pollution -- and it's the equivalent of taking about 80 million cars off the road.  And I want to thank Ernie Moniz, Secretary of Energy, and Secretary Donovan -- Shaun Donovan of HUD -- who are here today because they’ve shown extraordinary leadership on these issues.  That's worth applauding.  (Applause.)

So that’s the first announcement.  Cities, schools, businesses, the federal government -- we’re all going to pledge to waste less energy and we’ve got concrete strategies that we know work.   

The second announcement is about more Americans coming together to use more clean energy.  Last month, I called up leaders from a whole range of industries and made the economic case for why solar is a good idea.  And they listened.  And today, more than 300 organizations -- from homebuilders, to affordable housing owners, to companies like Home Depot and Apple -- announced that they are going to expand the use of solar energy, thereby creating more jobs and cutting carbon pollution. 

We’ve got public banks like Connecticut’s Green Bank and private banks like Goldman Sachs ready to invest billions of dollars in renewable energy.  The Treasury Department and the IRS are making it easier for renewable energy companies to operate and attract investment.  And we’re going to support training programs at community colleges across the country that will help 50,000 workers earn the skills that solar companies are looking for right now.

Walmart has already got the most installed on-site solar capacity of any company in America.  And now you’ve announced plans to double that capacity.  And it’s all part of your goal to buy or produce 7 billion kilowatt hours of renewable energy by 2020 -- something that could save Walmart $1 billion a year in energy costs. 

So we know that generating more clean energy, using less dirty energy, and wasting less energy overall can be good for business and consumers.  And it’s also good for the world that we leave for our children.

So together, the commitments we’re announcing today prove that there are cost-effective ways to tackle climate change and create jobs at the same time.  So often, when we hear about how we’re going to deal with this really serious issue, people say we can’t afford to do it; it won’t be good for the economy.  It will be good for the economy long term -- and if we don’t, that will be bad for the economy.  Rising sea levels, drought, more wildfires, more severe storms -- those are bad for the economy.  So we can’t afford to wait.  And there’s no reason why we can’t even go further than we are so far by working with states and utilities, and other organizations to change the way we power our economy.  Climate change is real and we have to act now.

Earlier this week, I issued -- or we issued a report that was years in the making called the National Climate Assessment.  Hundreds of scientists, experts and businesses, not-for-profits, local communities all contributed over the course of four years.  What they found was unequivocally that climate change is not some far-off problem in the future.  It’s happening now.  It’s causing hardship now.  It’s affecting every sector of our economy and our society -- more severe floods, more violent wildfires.  It’s already costing cities and states and families and businesses money.

Here in California, you’ve seen these effects firsthand.  You know what’s happening.  And increasingly, more and more Americans do -- including, by the way, many Republicans outside of Washington.

So unfortunately, inside of Washington we’ve still got some climate deniers who shout loud, but they’re wasting everybody’s time on a settled debate.  Climate change is a fact.

And while we know the shift to clean energy won’t happen overnight, we’ve got to make some tough choices along the way.  And we know that if we do, it’s going to save us ultimately money and create jobs over the long term.  That's what Walmart understands, and Walmart is pretty good at counting its pennies.

So that’s why this fight is so important.  That’s why the sooner we work together to adapt the economy to this reality of climate change, the more likely it is that we do right by our kids and leave a more stable world.  And ultimately that's what motivates a whole lot of us.

As Americans, we don’t look backwards.  We look forward.  We don’t fear the future, we seize it.  We shape it.  And when it comes to energy, we have a chance to shape that sector that is probably going to have more to do with how well our economy succeeds than just about any other.  We are blessed when it comes to energy, but we’re much more blessed when it comes to the innovation and the dynamism and the creativity of our economy. 

If we do our part right now to rebuild an economy and transition to a clean energy future, we will create new jobs, we will reduce our dependence on foreign oil, we will leave our children with a better America and a better future.

So thank you very much, everybody.  God bless you.  (Applause.)  Thanks to all the companies who are doing the great work, and the not-for-profits.  We appreciate your leadership. 

Thank you, guys.  Happy Mother’s Day, moms!  (Applause.)

END
10:02 A.M. PDT

STATE DEPARTMENT OFFICIAL'S CONGRESSIONAL TESTIMONY ON INTERNATIONAL CRIME

FROM:  U.S. STATE DEPARTMENT 

United States Assistance to Combat Transnational Crime

Testimony

William R. Brownfield
Assistant Secretary, Bureau of International Narcotics and Law Enforcement Affairs

Statement before the House Appropriations Subcommittee on State, Foreign Operations, and Related Programs

Washington, DC

May 7, 2014

---

Chairwoman Granger, Ranking Member Lowey, and distinguished Members of the Subcommittee, thank you for inviting me to discuss the evolving threat of transnational organized crime and the efforts of the Bureau of International Narcotics and Law Enforcement Affairs (INL) to address it.

If I were sitting before you 35 years ago, when the predecessor to INL—the Bureau of International Narcotics Matters—was first established and you asked me what transnational organized crime would look like in the year 2014, I might have informed you of the violent and hierarchical structure of the drug cartels and various mafias and have foretold the success of U.S. counternarcotics assistance to Colombia or the expansion of our anti-drug trafficking efforts worldwide. I might have accurately predicted the efforts of some cartels to move across the Caribbean and destabilize communities across the hemisphere. I might have surmised that, criminals being opportunists, they would diversify and seek out not only new markets but also new forms of criminality with minimal risk and high rewards. And I would have assumed—accurately—that certain elements of illicit trafficking would remain the same regardless of the product being trafficking: demand for the product, which produces a market; a producer at the source; the need for a logistics network to move the product across international borders, a system to market or distribute the product at its destination, and the need to convert the product into cash or some other marketable commodity usable in the licit market. But I could not have predicted the extent to which globalization, coupled with dramatic improvements in technology, would turn criminal organizations that had once had only a domestic or regional impact into networked enterprises posing threats to our and our partners interests across the globe.
Today’s reality is that criminal and illicit networks have expanded their tentacles to all parts of the world, corrupting public and market-based institutions alike. Their activities threaten not only the interdependent commercial, transportation, and transactional systems that facilitate free trade and the movement of people throughout the global economy, but are jeopardizing governance structures, economic development, security, and supply chain integrity. Their penetration of state institutions and financial and security sectors is particularly concerning.
Recognizing the expanding size, scope, and influence of transnational organized crime and its impact on U.S. and international security and governance, in July 2011, the White House released theStrategy to Combat Transnational Organized Crime. The Strategy calls on all departments and agencies to "build, balance, and integrate the tools of American power to combat transnational organized crime…and urge our foreign partners to do the same." The Strategy also calls for the U.S. government and our international partners to work together to combat transnational illicit networks, and take that fight to the next level by breaking their corruptive power, attacking their financial underpinnings, stripping them of their illicit wealth, and severing their access to the financial system.

With our diplomatic reach and foreign assistance authorities, INL is strengthening partner nation capacity to deal with these emerging transnational criminal threats including by combating corruption and targeting the illicit wealth of criminal entrepreneurs. INL’s programs promote regional capacity-building to mitigate the famous "balloon effect" we saw in South America in the 1980s and 1990s, whereby criminal groups jump from one country to another as pressure was applied. Through the Central America Regional Security Initiative, the Merida Initiative, the Caribbean Basin Security Initiative, the West Africa Cooperative Security Initiative, and other programs you have supported, we are focused on coordinating investigations, supporting prosecutions, and facilitating the sharing of information across borders.

Many of the approaches and methods we have refined over the past three decades to reduce the harm of narcotics trafficking are transferable to new and urgent threats – and I will focus on one such threat today -- wildlife trafficking. It is fueled by high demand for wildlife products, high profits -- an ounce of rhino horn is worth more than gold, cocaine, or heroin in weight -- and low risk for detection or meaningful punishment. Its impact on the planet’s natural resources is as obvious as it is devastating – entire animal species are at risk. But even setting aside the risk to wildlife, the United States has cause to be seriously concerned about this criminal enterprise: the corruption that it both encourages and benefits from undermines good governance, the rule of law, and citizens’ confidence in their government institutions; the high tech weaponry and aggressive tactics used by poachers and the syndicates and corrupt officials that support them threaten civilian populations; the crime creates and exacerbates border insecurity; wildlife trafficking can weaken financial stability and economic growth, particularly in countries for which tourism is a major revenue source; and we have seen some evidence of involvement by terrorist entities and armed groups.

For these reasons, we need to address wildlife trafficking not only as a conservation issue but also a national security issue. The President issued an Executive Order calling for a whole of government response to combat wildlife trafficking on July 1, 2013 and on February, 11, 2014, the White House released a National Strategy for Combating Wildlife Trafficking. The Strategy calls on agencies and departments to strengthen domestic and global enforcement, reduce demand for illegal wildlife products, and build international cooperation and public-private partnerships.

INL is playing a significant programmatic and diplomatic role in implementing the National Strategy. For over a decade, we have provided wildlife investigative training delivered by the U.S. Fish and Wildlife Service as part of our International Law Enforcement Academy (ILEA) program. Within the last year, with strong support of this Committee and this Congress, we have begun to greatly expand our assistance, drawing on our experience in addressing other forms of transnational criminal activity. We have organized our work abroad around four key areas that support the enforcement and international cooperation goals of the National Strategy.

First, we will strengthen legislative frameworks to make wildlife trafficking a serious crime with strong penalties to give investigators and prosecutors the legal tools they need to put the traffickers behind bars.

Second, we will improve law enforcement and investigative capabilities -- including intelligence, evidence collection and analysis, investigative skills and methods, and collaboration across agencies and governments – to promote intelligence-led investigations and operations that strive not simply to pick up individual poachers but rather to better understand and begin to dismantle the organizations for which they work.

Third, we will build prosecutorial and judicial capacities. As we have learned, rangers and police will not continue to pick up the bad guys if they believe prosecutors or judges will just let them go so, as we improve legislative frameworks and offer up new tools, we need to ensure prosecutors and judges know how to use those tools effectively and creatively.

And fourth, we will enhance cross-border law enforcement cooperation, particularly by working with the regional Wildlife Enforcement Networks (WENs). There is much that we do not know about how wildlife trafficking organizations operate – but we do know that illegal wildlife products often make their way through multiple transit points as they move from supply – or "range" – states to demand markets. So we need to build alliances and processes across borders for sharing information and intelligence and collaborating on operations.

Our work in these areas will be done on a bilateral basis. A portion of our overall assistance is dedicated towards our programming in Kenya ($3 million in FY13) and South Africa ($3M in FY 2013); regionally in Africa ($4 million in FY 2013) and Asia ($1.45 million in FY 2012); and globally ($4.3 million in FY 2012) through organizations including INTERPOL, the United Nations Office on Drugs and Crime (UNODC), and the World Customs Organizations, who are part of the International Consortium for Combating Wildlife Crime (ICCWC). Using $15 million in FY 2014 funds, we will expand efforts begun or piloted using prior year resources, such as training for customs officers at ports of entry, prosecutorial training, and joint capacity building-operational exercises across continents.

INL is also approaching the wildlife trafficking problem in new ways. We are using new tools such as the Transnational Organized Crime Rewards Program, which Congress, with your support, authorized in 2013. In November 2013, Secretary Kerry announced the first reward offer under the program of up to $1 million for information leading to the dismantling of the Xaysavang Network. The Xaysavang Network, based in Laos and operating across Africa and Asia, facilitates the illegal trade of endangered elephants, rhinos, and other species. This reward offer provides us with an additional tool to dismantle wildlife trafficking networks and bring its leaders and members to justice.

We are also using our diplomatic tools to build an international consensus around the importance of dismantling wildlife trafficking networks. For example, at the UN Crime Commission in April 2013, the United States introduced a successful joint resolution with Peru encouraging governments around the world to treat wildlife trafficking as a "serious crime" pursuant to the U.N. Convention against Transnational Organized Crime. Making it a serious crime unlocks new opportunities for international law enforcement cooperation, provided under the Convention, including mutual legal assistance, asset seizure and forfeiture, extradition, and other tools to hold criminals accountable for wildlife crime. The U.N. Economic and Social Council adopted the resolution in July 2013, further elevating wildlife trafficking as a major concern for the United Nations. These measures provide the mandate that we need, as members of a larger body of concerned nations, to harness our collective capabilities to learn more about these trafficking networks, share information, and collaborate on plans and programs that will undermine them.

The resolution was one of several early successes to which we can point. Another is a month-long global law enforcement cooperative effort that we helped to support in February known as "Cobra II." Participants from 28 countries, including representatives from the U.S. Fish and Wildlife Service and the Department of Justice, executed a global operation to combat wildlife trafficking and poaching that resulted in more than 400 arrests and 350 major seizures of wildlife and wildlife products across Africa and Asia and the U.S.

Although we have more to learn about the links that exist between wildlife trafficking organizations and other transnational criminal groups, we do know that wildlife traffickers do not operate in a vacuum. Like any legal enterprise that seeks to diversify its portfolio, criminal organizations tend to use the same routes and shipping methods as smugglers of weapons, drugs, and counterfeits. They bribe the same customs officials. They deploy poachers in the same restive regions where terrorists and other criminals may sow instability and conflict and exploit weak institutions and porous borders. Money and corruption are common denominators of all forms of transnational organized crime, and wildlife trafficking is no exception.
Corruption greases the wheels of illicit trade in everything from counterfeits to ivory. In the Sahel-Sahara region of Africa, for example, collusion between smugglers and state officials has eroded state authority and created lucrative funding channels for terrorists, militias, and criminal groups. INL is looking at ways to link up our anti-corruption and unit vetting programs used effectively in narcotics-producing regions, to support willing governments afflicted by illicit wildlife trade.

Following the money is equally important. All illicit criminal networks need money to finance their activities and as illicit funds move through the international financial system, they can be detected and monitored. In addition to exercising leadership within the Financial Action Task Force (FATF), we are promoting and applying tools like asset recovery and forfeiture to combat transnational organized crime and money laundering. Through the FATF style regional body for Eastern and Southern Africa, we are working with international partners to uncover and counter money laundering and other illicit financial flows related to wildlife trafficking. When it is finished, our capacity building projects will address the gaps identified.

Madam Chairwoman, Ranking Member Lowey, and distinguished Members, there is no doubt that transnational organized crime presents a growing and profound threat to international security. Illicit networks undercut the ability of law enforcement to protect citizens, deprive the state of vital revenues, promote corruption, and both thrive on and contribute to bad governance. But as organized crime has evolved and diversified, so has INL. Our programs are both tailored to specific threats, such as wildlife trafficking, and cross-cutting, to target the common facilitators of all types of crime.

Thank you, Chairwoman Granger and Ranking Member Lowey. I welcome your questions.

SEC COMMISSIONER GALLAGHER'S REMARKS AT ROCKY MOUNTAIN SECURITIES CONFERENCE

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

Remarks at the 46th Annual Rocky Mountain Securities Conference

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Commissioner Daniel M. Gallagher

Denver, CO

May 9, 2014

Thank you, Julie [Lutz], for that kind introduction. I’m very pleased to be here today, and I’m proud to say that this will be my fourth time addressing this conference, the last three as a Commissioner. I am always happy to visit Denver, in large part given the presence of a key SEC regional office here. I am a big supporter of our regional offices, and I am very pleased to report that yesterday I made good on my oath to visit all of our offices when I made it to Fort Worth. Now I will try to pull off second visits before the end of my term.

* * *

Despite the onslaught of regulation over the past ten years and the consistency with which extremely costly and often frivolous plaintiff actions are brought, our capital markets continue to be the strongest and most vibrant in the world. As the primary U.S. capital markets regulator, the SEC administers a regulatory framework built upon our threefold mandate to protect investors, maintain fair, orderly and efficient markets, and facilitate capital formation.

Consistent with that framework, industry professionals such as registered representatives of broker-dealers and investment advisors are required by law to be licensed or registered and to subject themselves to the regulatory oversight, examination, and reporting requirements of the federal securities laws. In other words, we require market professionals, particularly those who interact with retail investors, to apply for, and prove themselves worthy of, the privilege of working in the industry.

Unfortunately, this privilege is all too often abused by scoundrels, including some that repeatedly engage in egregious misconduct that directly impacts retail “mom and pop” investors, destroying their nest eggs and financial security. These repeat offenders, despite accumulating dozens of customer complaints and disciplinary actions, have been able to remain in the industry by jumping from one disreputable firm to another and hiding behind false and misleading CRD filings and Form BD representations. They are, to be blunt, cockroaches, and it is in all of our interests to purge them from our markets.

This is, of course, not a new problem. After all, capital markets are risk-taking markets, and unfortunately a risk as old and as certain as time is that where there is opportunity, there will be unscrupulous characters trying to take advantage of the unwary. The SEC has been struggling for decades to find the best approach to rooting out recidivist misconduct by the worst of the bad apples, but unfortunately, there are no easy answers.

Illustrating this point, exactly 20 years ago this month, the SEC released a report in conjunction with the NASD and NYSE called the “Large Firm Project” that reviewed the hiring, retention, and supervisory practices of nine of the country’s largest broker dealers, which at the time were responsible for handling approximately 50% of all public customer securities accounts in the United States.[1] The report’s findings were grim, reflecting a number of significant concerns about the business activities and conduct of broker-dealers and their registered representatives. Some of the more noteworthy findings may sound depressingly familiar to you.

For example, the study found high turnover rates: over a third of the registered representatives selected as a sample set for the study had left the industry within the two-year examination period, including many who left involuntarily or were barred from the industry altogether.

It also reflected a high incidence of potential enforcement violations, with fully 25% of exams leading to enforcement referrals. The study showed that bad actors are concentrated in select firms: three of the nine firms examined accounted for 88% of the study group’s enforcement referrals. The study also revealed numerous findings of inadequate supervision. Perhaps most concerning is the fact that these bad actors were able to move between firms freely after customers registered complaints.

Do these findings—now two decades old—sound familiar to you? The sad truth is that these are exactly the same types of behavioral red flags we still see today. Only two months ago, for example, the Wall Street Journal reported the results of a study finding that more than 1,500 broker-dealer registered representatives had failed to report bankruptcy filings in their CRD disclosures, while over 150 had failed to report criminal charges or convictions.[2] In response, FINRA announced that it would perform a comprehensive vetting of public disclosures for the more than 600,000 investment professionals it oversees—brokers, not investment advisors—against public court records. FINRA will also propose rules requiring employee background checks.[3]

I recently asked staff in the Office of Compliance, Inspections, and Examinations to put together some statistics based on disclosure information submitted by broker-dealer registered representatives on FINRA’s BrokerCheck system. The results are eye-opening.

An astounding 20% of the 600,000 plus actively licensed registered representatives have between one and five disclosures for items such as customer complaints, regulatory violations, terminations, bankruptcy, judgments, and liens. One active—and currently employed—registered rep has disclosed a whopping 96 customer complaints and disputes. Another individual has made 21 financial disclosures relating to bankruptcies, yet still is licensed and working in the industry. At the firm level, 17% of broker-dealers had more than six total disclosures, and 5% had more than 20 disclosures.

These numbers illustrate a real and growing problem in the securities industry. These repeat offenders are swindling seniors out of their hard-earned retirement funds, looting our kids’ custodial accounts, and diverting assets from charities and religious organizations. But despite our best efforts, they manage to stay in the industry and continue to wreak havoc on the investing public.

I would be remiss if I did not point out that a common misconception is that this is exclusively or even primarily a broker-dealer problem rather than an investment adviser problem as well. In reality, there are plenty of repeat offenders at investment advisory firms who are engaging in misconduct. We’re just not finding them as quickly because the SEC allocates a disproportionate amount of resources to policing the activities of broker-dealers when compared to those we expend policing investment advisers. There are nearly three times as many investment advisors registered with the SEC than there are broker dealers: approximately 11,100 investment advisors versus about 4,300 broker-dealers. This is due in large part to unfunded mandates imposed upon the SEC by Title IV of Dodd-Frank. Even more importantly in the context of resource allocation, there is no SRO interposed between the adviser industry and the SEC like there is for broker-dealers.

I worry that this has created the unfortunate side effect of underreported investment advisor rule violations, inappropriately skewing our enforcement statistics by revealing a disproportionate amount of problems on the broker-dealer side. Simply put, it is impossible to separate the fact that we find many more broker-dealer violations than investment advisor violations from the fact that thanks to the assistance of the SROs, we examine a greater proportion of broker-dealers than investment advisors.

One way to address this imbalance would be to provide for third party examiners of investment advisors—including, potentially, defining the term “third party” to include SROs in order to allow the SROs currently involved in broker-dealer oversight to conduct examinations of “dual hatted” investment advisors as well.[4] In the past, questions regarding the wisdom of creating an SRO for investment advisors have been addressed in a binary sense: should the Commission push Congress to create an SRO for investment advisors, or keep things as they are? Leveraging the current resources and expertise of broker-dealer SROs to assist in investment advisor examinations could greatly facilitate our ability to examine advisors without undertaking the daunting project, with Congress, of creating a new investment advisor SRO out of whole cloth.

Regardless of how we do so, enhancing our ability to examine investment advisors would also serve the critical purpose of allowing us to have informed deliberations on Section 913 of Dodd-Frank Act. Section 913, as you may know, authorized, but did not require, the Commission to adopt rules establishing a duty of care for brokers-dealers that is no less stringent than that which applies to investment advisors and to undertake further efforts to harmonize the two regulatory regimes.[5]

Mind you, as with so many Dodd-Frank requirements, Section 913 has absolutely nothing to do with the financial crisis, but as we proved in the case of conflict mineral disclosure, that may not dissuade the Commission from pursuing a rulemaking. Indeed, it is becoming painfully obvious that many special interest groups and members of the Administration believe this is a terrific election year issue to pursue. As an independent agency, the SEC should never be persuaded by such political forces.

And, although many in Washington seem to have concluded after the high profile issuance of the Volcker Rule that Dodd-Frank rulemaking is “done,” the Commission still needs to complete almost 60 mandated Dodd-Frank rulemakings. In addition to these rulemakings, which include key elements of Title VII derivatives regulation and the removal of references to credit ratings from Commission rules, the Commission still has significant—and well overdue—work to do on implementing the JOBS Act. And, by the way, we still have eight decades worth of securities laws to administer on a daily basis and critical projects on the horizon such as a much needed holistic equity market structure review, and critical reforms in the fixed income markets, such as the disclosure of riskless principal markups.

In light of this agenda, I question the wisdom of rushing into purely discretionary Section 913 rulemaking, especially when the purported substantive impetus is the potentially false narrative that broker-dealers represent a greater potential threat to retail investors than investment advisors. The truth is that we simply don’t know whether or not that is the case. There have been far too many laws and regulations that stemmed directly from false narratives of the financial crisis and its causes. The Commission should slow down and get all of the facts before adding to the long list of rules resulting from these false narratives.

* * *

So what is the SEC doing to curb the abuses perpetrated by the recidivist bad actors I mentioned, whether on the broker-dealer or investment advisor side? I am pleased to report that in recent years, the agency has made great strides in developing programmatic and technological tools aimed at efficiently ferreting out the most egregious misconduct and identifying those individuals and firms most likely to be recidivists.

Some of the most exciting developments are coming out of OCIE under the able leadership of Drew Bowden. Drew’s dedicated and talented staff has developed a number of innovative tools that have moved the examination program into the 21st Century and enabled the staff to surgically and efficiently zero in on potential abuses.

For example, OCIE’s Risk Assessment and Surveillance group, which is responsible for identifying candidates for examination among registered entities, has developed new analytics to track the migratory patterns of registered representatives. Using public disclosures—including U4 and U5 filings and other data from the SROs—the team can track industry professionals who are hopping from firm to firm and single out firms that appear to be havens for individuals with long rap sheets of customer complaints and disciplinary actions. This targeted approach to risk assessment enables our examiners to immediately identify the statistical outliers who are most likely to engage in misconduct.

OCIE’s boots-on-the-ground examiners also have been deploying a new analytics tool, the National Exam Analytics Program, that allows them to review massive amounts of registrant data in a matter of minutes. Rather than relying on a small sample of activity for a few dozen accounts over a compressed time period, OCIE examiners can import a registrant’s entire trade blotter for multiple years and immediately generate over 50 types of customized reports identifying potential red flags for account churning, excessive commissions, P&L irregularities, suspect asset allocation, front running, and even insider trading.

Complementing these efforts is OCIE’s Risk Analysis Examination initiative, which uses advanced analytics to examine data from the largest clearing firms and broker-dealers to identify potentially problematic trends industry-wide. In 2013 alone, this group reviewed hundreds of millions of transactions by more than 500 firms, including trading data that enables OCIE to target for examination broker-dealer firms that appear to be systematically engaged in high pressure sales tactics and excessive trading. With this data, we are able to zero in on firms that are, in essence, nothing more than a criminal enterprise designed to separate investors from their money.

The best part of the story is that all of these tools were developed in-house by the SEC staff. They have revolutionized the way our teams conduct examinations and have done much to level the playing field in terms of our ability to root out potential misconduct by recidivists.

And, OCIE isn’t the only arm of the agency making progress in this area. Under the strong leadership of Director Andrew Ceresney, the Division of Enforcement has made several programmatic changes that have greatly enhanced the SEC’s efforts in identifying and combatting the worst recidivists.

Perhaps most noteworthy is the creation of a task force late last year, a group near and dear to me, to focus on broker-dealer enforcement issues. Among other initiatives, this new task force will coordinate with OCIE and FINRA to target misconduct by “rogue” registered representatives with prior disciplinary histories or customer complaints.

My hope and expectation is that the task force will complement the work of the two specialty units created by the Division of Enforcement in 2010: the Asset Management Unit, which investigates misconduct by investment advisors, investment companies, and private funds, and the Market Abuse Unit, which focuses on difficult-to-detect frauds in which honest investors are bilked without ever knowing anything is amiss. Working collaboratively both inside and outside of the agency, these groups are making substantial progress in identifying and rooting out misconduct by the worst of the bad actors.

* * *

There is no question that we are making real progress on these issues, but more needs to be done to send a forceful message to the bottom dwellers of the securities industry that their behavior will not be tolerated. As I’ve illustrated today, the SEC has a number of tools to combat abuses by recidivists, but we need to make sure that we are using them in the most efficient manner possible and that the tools we have are sufficient for the task.

Most importantly, the agency needs to take aggressive action aimed at permanently expelling the worst offenders from the securities industry. All too often, we see the same individuals and firms featured prominently in examination reports and enforcement actions. As an agency, we need to seek out the repeat offenders and revoke their licenses and registrations rather than repeatedly mete out injunctions that can be violated and penalties that can be paid from the fruits of misconduct. Unless we put these offenders out of the industry for good, they will continue to take advantage of retail investors.

With respect to the most egregious and recidivist violations of our securities laws and regulations, whether by broker-dealers or investment advisors, we need to ask ourselves a fundamental question: should the violating entity retain the privilege of participating in our capital markets? Unbeknownst to many, both the Exchange Act and the Investment Advisers Act authorize the Commission to deregister entities if it finds such action to be in the public interest, although we have rarely done so.[6] This authority, of course, should only be invoked after full due process has been afforded to the entity in question, but it should indeed be invoked when appropriate. I have seen several instances in which I believe it would be appropriate since I’ve been a Commissioner.

As a federal agency charged with protecting investors, the SEC needs to make such existential threats—and, where appropriate, deliver on them—in the most egregious circumstances. Otherwise, the cockroaches of the industry will continue to abuse the system, shrugging off the well-meaning but all too often ineffective remedial actions taken against them.

* * *

In closing, I want to convey my sincere belief that most of the men and women who work as professionals in the securities industry have proven themselves worthy of that privilege by conducting themselves with honesty and integrity. The unparalleled strength of our capital markets is in large part the product of the work ethic and high moral character of the professionals who work with the millions of individual and institutional investors that participate in those markets.

Unfortunately, the stability, security, and attractiveness of our markets are all too easily tainted by the misconduct of a handful of reprehensible miscreants who abuse the system time and time again. Working as a registered broker-dealer representative or an investment adviser representative, holding a securities license, or operating a securities firm are privileges that carry with them a heavy responsibility, privileges that can and should be taken away in cases of abuse. As an agency, the SEC needs to lead the way in targeting and eradicating the worst offenders from the markets altogether.

Once again, thank you for this opportunity to share my thoughts with you, and I wish you an enjoyable and productive conference.


[1] The Large Firm Project, A Review of Hiring, Retention and Supervisory Practices, Divisions of Market Regulation and Enforcement, United States Securities and Exchange Commission, May 1994, available at http://www.sec.gov/news/studies/rogue.txt.

[2] Regulator Deletes Red Flags From Brokers’ Records, Says Study, Wall St. Jrnl., March 7, 2014, available at http://online.wsj.com/news/articles/SB10001424052702304554004579423270046013550.

[3] Plan to Fix Cracks in Broker Records — Wall Street Regulator to Propose Rules for Background Checks, Measures to Identify Red Flags, Wall St. Jrnl., Apr. 16, 2014, available at http://online.wsj.com/news/articles/SB20001424052702303887804579503653564597512?mg=reno64-wsj%26url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB20001424052702303887804579503653564597512.html.

[4] See Jim Angel, On the Regulation of Investment Advisory Services: Where Do We Go from Here?, available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1951991.

[5] Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. No. 111-203, § 913, 124 Stat. 1376, 1824 (2010) (requiring analysis and rulemaking regarding fiduciary obligations of investment advisers and broker-dealers).

[6] See 15 U.S.C. 78o(b)(4) (stating that the Commission “shall . . . revoke the registration of any broker or dealer if it finds . . .[that such] revocation is in the public interest and that such broker or dealer” committed certain actions enumerated in the statute); 15 U.S.C. 80b-3(e) (stating that the Commission “shall . . . revoke the registration of any investment adviser if it finds . . .[that such] revocation is in the public interest and that such investment adviser” committed certain actions enumerated in the statute).

DARPA SEEKS TECHNOLOGY THAT CHANGES OUTCOMES

Above:  The Defense Advanced Research Projects Agency is seeking to develop the next generation of search technologies to revolutionize the discovery, organization and presentation of search results. The Memex program ultimately would apply to any public-domain content. Initially, DARPA plans to develop Memex to address a key Defense Department mission: fighting human trafficking. An index curated for the countertrafficking domain, along with configurable interfaces for search and analysis, would enable new opportunities to uncover and defeat trafficking enterprises, officials explained. DARPA photo.

FROM:  U.S. DEFENSE DEPARTMENT  

DARPA Sows Seeds of Technological Surprise, Director Says

By Cheryl Pellerin

American Forces Press Service

WASHINGTON, April 30, 2014 – Many of the advances that contribute to national security resulted from early investment in developing new technologies, the director of the Defense Advanced Research Projects Agency told Congress yesterday.

Dr. Arati Prabhakar represented the Defense Department at a Senate Appropriations Committee hearing called to address concern that the national investment in research and development had shrunk since 2001, along with the education pipeline for young scientists and engineers.

The directors of the Office of Science and Technology Policy of the Executive Office of the President, the National Science Foundation, the National Institutes of Health and the Energy Department also testified at the hearing.

“DARPA is part of Defense Department science and technology investments,” Prabhakar said. “We're also part of this much larger national ecosystem for R&D. But within those communities, we have one very specific role: to make the pivotal early investments that change what's possible so we can take big steps forward in our national security capabilities.”

DARPA’s output is technology, but the organization counts its mission complete only when the technologies change outcomes, she added.

“Every time a stealth fighter evades an air defense system, every time a soldier on the ground is able to place himself precisely with GPS and get the data he needs, every time a radar on an aircraft carrier allows us to see a threat to a carrier strike group before it sees us -- that's when we count our mission complete,” Prabhakar said.

In every case, DARPA made a pivotal early investment that showed the technologies were possible, and what followed from that, Prabhakar said, was equally important.

“That was the investment, often by our partners in other parts of the Defense Department and the military services -- their science and technology investments, their development investments or their acquisition programs,” the director said. “Of course,” she added, “many in industry were involved deeply in those efforts, and ultimately to make those technologies into real capabilities for our warfighters.”

Along the way, as DARPA focused on its mission of investments for national security, the organization’s scientists and engineers planted some of the seeds that formed the technology base that the U.S. commercial sector has built layer on layer above the foundation, Prabhakar said.

“Every time you pick up your cell phone and do something as mundane and miraculous as check a social networking site, you're living on top of a set of technologies that trace back to that early work we did,” she added. “Public investment laid that foundation. Billions of dollars of private investment and enormous entrepreneurship is what built those industries and ended up changing how we live and work with these technologies.”

DARPA’s mission of creating breakthrough technologies for national security is unchanged across more than five decades, she told the panel, but the world in which DARPA invests and pursues its mission continues to change, and so do the things DARPA does that reflect the national security and technology context in which the organization must operate today.

“In one arena, we see information at massive scale affecting every aspect of national security,” the director said. “So if you look in our portfolio today, you will find game-changing investments in cyber and in big-data programs.” One example is work DARPA is doing to tackle the networks that drive human trafficking around the world, she added.

In another arena, Prabhakar said, DARPA is looking at what's happening with the cost and complexity of military systems today.

“We recognize that [such systems] are becoming too costly and too inflexible to be effective for the next generation of threats we will face around the world,” Prabhakar explained, “so at DARPA we are investing in programs that are fundamentally rethinking complex military systems.”

DARPA is investing in technology its experts believe will lead to powerful new approaches for radar, communications, weapons and navigation, she said.
“And in a range of research areas, we can see the new seeds of technological surprise,” Prabhakar said. “One example is where biology is intersecting with engineering today, and in areas like that, we are making investments that will lead to new technologies like synthetic biology and neurotechnology.”
Another expert who testified before the committee, National Institutes of Health Director Dr. Francis S. Collins, mentioned a breakthrough neuroscience project that Stanford University is working on with funding from NIH and DARPA and the National Science Foundation.

“Traditionally, researchers have studied the postmortem brain by cutting a specimen into slim slices. While all that slicing generates neat, two-dimensional images, it also makes it impossible to reconstruct the connections of the brain's tens of billions of neurons,” Collins said. “What if we could study the details of the wiring and the location of specific proteins in transparent 3-D?

“Using a chemical cocktail,” he continued, “researchers at Stanford University -- supported by NIH, NSF and DARPA -- have figured out a way to do just that. They've dubbed their technique ‘Clarity,’ and in an extraordinary technical feat, the team made possible a 3-D tour of an intact mouse brain illuminated by a green dye that marks the neurons.”

Clarity is now being applied to human brains, he added, and undoubtedly will advance the BRAIN Initiative, a research effort unveiled by President Barack Obama and Collins in April 2013. In his State of the Union message last year, the president addressed research and development and its value to the nation.
“If we want to make the best products, we also have to invest in the best ideas,” Obama said. “Every dollar we invested to map the human genome returned $140 to our economy -- every dollar. Today, our scientists are mapping the human brain to unlock the answers to Alzheimer’s. They’re developing drugs to regenerate damaged organs, devising new material to make batteries 10 times more powerful.
“Now is not the time to gut these job-creating investments in science and innovation,” Obama added. “Now is the time to reach a level of research and development not seen since the height of the space race.”

During her testimony yesterday, Prabhakar also discussed the nature of the world today and its relation to research and development.

“In many ways we are living in very challenging times,” she said. “Technology is getting more and more complex, [and] it's moving at a very rapid pace. Other nations are jockeying for position in global affairs, and many of them … are making their own aggressive moves to build their own science and technology capabilities.”

Meanwhile, here at home, she added, many are dealing with constrained resources, and many agencies are dealing with the corrosive effects of sequestration.

“But when I step back and look at what we have done over many decades in this country, I would observe that we have had a long and very successful commitment to investing in R&D as a nation,” the director told the panel. “And when we make that investment in R&D, we are investing in two things that are deeply American.”
One is the kind of creativity sparked by the open society that is the hallmark of the United States, she said, and in this case the nation is investing in the creativity of its scientists and engineers.

“The second thing is this drive to create a better future,” Prabhakar added. “And in a sense, this is the most productive kind of restlessness you could possibly imagine.”

FORMER OIL SERVICES COMPANY CEO INDICTED ON FOREIGN BRIBERY AND KICKBACK CHARGES

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, May 9, 2014

Former Chief Executive Officer of Oil Services Company Indicted in New Jersey on Foreign Bribery and Kickback Charges

The former co-chief executive officer (CEO) of PetroTiger Ltd. – a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey – was indicted today for his role in a scheme to pay bribes to foreign government officials in violation of the Foreign Corrupt Practices Act (FCPA) and to defraud PetroTiger.

Acting Principal Deputy Assistant Attorney General Marshall Miller of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Aaron T. Ford of the FBI’s Newark Division made the announcement.

Joseph Sigelman, 43, of Miami and the Philippines, was indicted today by a federal grand jury in the District of New Jersey and charged with conspiracy to violate the FCPA and to commit wire fraud, conspiracy to launder money, and substantive FCPA and money laundering violations.   Gregory Weisman, 42, of Moorestown, New Jersey, the former general counsel of PetroTiger, pleaded guilty on Nov. 8, 2013, to conspiracy to violate the FCPA and to commit wire fraud.   Sigelman’s co-CEO, Knut Hammarskjold, 42, of Greenville, South Carolina, pleaded guilty to the same charge on Feb. 18, 2014.

According to court records, Sigelman and others allegedly paid bribes to an official in Colombia in exchange for the official’s assistance in securing approval for an oil services contract worth roughly $39 million.   To conceal the bribes, they first attempted to make the payments to a bank account in the name of the foreign official’s wife for purported consulting services she did not perform.  Sigelman and Hammarskjold provided Weisman invoices, including her bank account information.   The conspirators made the payments directly to the official’s bank account when attempts to transfer the money to his wife’s account failed.   Sigelman and his conspirators then took steps to conceal the bribe payments from PetroTiger’s board members.

In addition, court documents allege that Sigelman and others attempted to secure kickback payments while negotiating an acquisition of another company on behalf of PetroTiger, including on behalf of several members of PetroTiger’s board of directors who were helping to fund the acquisition.   In exchange for negotiating more favorable terms for the owners of the target company, two of the owners agreed to kick back to the conspirators a portion of the increased purchase price.   To conceal the kickback payments, Sigelman and others had the payments deposited into Sigelman’s bank account in the Philippines, created a “side letter” to falsely justify the payments and used the code name “Manila Split” to refer to the payments amongst themselves.

Sigelman and Hammarskjold were charged by sealed complaints filed in the District of New Jersey on Nov. 8, 2013.   Hammarskjold was arrested Nov. 20, 2013, at Newark Liberty International Airport.   Sigelman was arrested on Jan. 3, 2014, in the Philippines.   The charges against Sigelman, Hammarskjold and Weisman were unsealed on Jan. 6, 2014.

The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

The case was brought to the attention of the department through a voluntary disclosure by PetroTiger, which cooperated with the department’s investigation.   The department has worked closely with and has received significant assistance from its law enforcement counterparts in the Republic of Colombia and greatly appreciates their assistance in this matter.   The department also thanks the Republic of the Philippines, including the Bureau of Immigration, and the Republic of Panama for their assistance in this matter.   Significant assistance was also provided by the Criminal Division’s Office of International Affairs.

The case is being investigated by the FBI’s Newark Division.   The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Zach Intrater of the District of New Jersey.

FUGITIVE ARMED ROBBER OF 100 POUNDS OF GOLD CAPTURED IN BELIZE

FROM:  U.S. MARSHALS SERVICE 

May 07, 2014

USMS Office of Public Affairs 

Fugitive Wanted for $2.8 Million Gold Heist Captured in Belize

and Returned to U.S. to Face Charges

Washington – The international manhunt for a man wanted for allegedly committing armed robbery in Coral Gables, Fla., and making off with more than 100 pounds of gold has ended. The fugitive was captured and is back on U.S. soil after being deported today from Belize.

Raonel Valdez-Valhuerdis, 34, was detained Feb. 18 in Belize after he was stopped by Belize immigration officials while crawling through some bushes at the Guatemala/Belize border. Valdez had a Cuban passport in his possession, but the passport did not bear an immigration stamp documenting his entry into that country.

The immigration officers quickly realized not only did they stop a subject from entering their country illegally, but they had also just captured an international fugitive wanted for allegedly committing the biggest gold heist ever in Florida history.

“Working in conjunction with the government of Belize, we have brought back to South Florida a violent fugitive who will be prosecuted for his alleged crimes,” said Amos Rojas, U.S. Marshal for the Southern District of Florida.

The U.S. Marshals Florida Regional Fugitive Task Force adopted the Valdez case in May 2013 as a task force fugitive investigation since it was believed that Valdez had fled the United States.

Once Valdez was detained in Belize, investigators from the U.S. Marshals Service International Investigations Branch in Washington, D.C., quickly alerted the U.S. Embassy that a fugitive wanted in South Florida had been detained in that country.

On Oct. 12, 2012, an employee for a Bolivian Export company walked out of his apartment building in Coral Gables, only to be met allegedly by Valdez and two other unidentified men. It is alleged that Valdez pointed a gun at the employee and said, “We are only here for the gold.” Valdez is alleged to have struck the victim in the face and held the victim at gunpoint while his two accomplices grabbed the two suitcases filled with more than 100 pounds of gold flakes valued at approximately $2.8 million.

At the time of the armed robbery, Valdez was wearing a court ordered GPS ankle monitor as a result of a previous arrest.

Coral Gables police detectives investigating the gold heist received a tip that Valdez was the mastermind behind the gold robbery. Coral Gables police detectives analyzed the GPS locations on Valdez’ ankle monitor that confirmed Valdez was at the scene of the crime at the exact time the victim was robbed. A further analysis of the GPS locations for weeks prior to the armed gold robbery showed that Valdez appeared to be conducting his own surveillance of the gold broker’s residence.

According to an Oct. 22, 2012, police report, the victim positively identified Valdez from a photographic lineup. That same day, Coral Gables police detectives arrested Valdez for allegedly committing the armed gold heist. Subsequently, a Miami Dade County Circuit judge released Valdez on a $75,000 bond. Valdez failed to appear for any future court hearings, and an arrest warrant was issued March 20, 2013, charging him with armed robbery with a deadly weapon, possession of a firearm by a convicted felon, grand theft of more than $100,000 and altering/tampering with an electronic monitor. Another arrest warrant was issued April 4, 2013, charging Valdez with probation violation.

The Cuban passport in Valdez’ possession was issued Dec. 28, 2012, two months after the fugitive is alleged to have committed the armed robbery of the gold. The passport was issued in Washington, D.C.
Valdez is currently being held in the Miami Dade County Jail.

his arrest and successful extradition has been the result of the combined efforts of the U.S. Marshals Service, Miami Dade Police Department, Coral Gables Police Department, U.S. Department of State – Regional Security Office – Belize, Department of Justice – Office of International Affairs and Interpol.

FDA APPROVES USE OF CARDIAC RESYNCHRONIZATION THERAPY PACEMAKERS (CRT-P) AND DEFIBRILLATORS (CRT-D)

FROM:  U.S. FOOD AND DRUG ADMINISTRATION 

Medtronic CRT-P and CRT-D Devices - P010015/S205 and P010031/S381

This is a brief overview of information related to FDA’s approval to market this product. See the links below to the Summary of Safety and Effectiveness Data (SSED) and product labeling for more complete information on this product, its indications for use, and the basis for FDA’s approval.

Products Name: This approval is for the following Cardiac Resynchronization Therapy Pacemakers (CRT-P) and Cardiac Resynchronization Therapy Defibrillators (CRT-D) devices:Medtronic, Inc.
Address: 8200 Coral Sea Street
Mounds View, MN 55112
Approval Date: April 10, 2014
Approval Letters: http://www.accessdata.fda.gov/ cdrh_docs/pdf/P100015S205a.pdf and http://www.accessdata.fda.gov/cdrh_docs/
pdf/P010031S381a.pdf
Consulta® CRT-P Model C4TR01
Syncra® CRT-P Model C2TR01

Consulta CRT-D Model D224TRK and D204TRM
Maximo II CRT-D Model D284TRK and D264TRM
Concerto II CRT-D Model D274TRK
Protecta XT CRT-D Model D314TRG and D314TRM
Protecta CRT-D Model D334TRG and D334TRM
Viva XT CRT-D Model DTBA1D1 and DTBA1D4
Viva S CRT-D Model DTBB1D1 and Model DTBB1D4
Brava CRT-D Model DTBC1D1 and DTBC1D4

What is it?

A Cardiac Resynchronization Therapy disclaimer icon  (CRT) device is a special pacemaker designed to treat symptoms of heart failure by sending specially timed electrical impulses to improve the timing, or resynchronize pumping action of the heart's lower chambers (right and left ventricles). This improved timing can help control symptoms from heart failure.

There are two types of implantable CRT devices: one that is only a pacemaker (CRT-P) and the other that is a combination of a pacemaker and defibrillator (CRT-D). Defibrillators can shock the heart rhythm back to normal should dangerously fast rhythms occur.

Each CRT device consists of a pulse generator (containing a battery and electronic circuitry) connected to insulated wires called leads that deliver electrical impulses to stimulate the heart. The synchronizing leads include a right ventricular lead (RV) and a left ventricular (LV) lead.

A CRT-D combination pacemaker and defibrillator has added features and ability so it is able to detect and treat dangerously fast heart rhythms. Only some individuals with a damaged heart muscle are likely enough to develop dangerous heart rhythms to need a defibrillator. A physician can determine whether a CRT-P or CRT-D device is most appropriate.

How does it work? Both CRT-P and CRT-D devices resynchronize the heart action by providing electrical impulses to improve timing of the right and left sides of the heart using RV and LV leads. The leads also carry signals from the heart to the device. The timing of the impulses is programmed by the doctor to restore a more natural timing and pumping of the heart muscle which can improve heart failure. The RV leads of CRT-D devices have additional features to deliver high voltage energy to defibrillate the heart should life-threatening, dangerously fast rhythms occur in the ventricles (ventricular arrhythmia) disclaimer icon .

When is it used? CRT-P and CRT-D devices have been approved for many years for patients with poorly synchronized right and left ventricles to improve their heart failure symptoms. Based on the results of a new clinical study called BLOCK HF, FDA is now expanding who is eligible (or “indicated”) for CRT. The new, added patients must have EACH of the following:

MUST have slow or absent ventricular heart beating (heart block) with symptoms that would traditionally require a conventional pacemaker PLUS mild to moderate heart failure symptoms PLUS at least mild heart muscle damage The actual specific indications appear below. After evaluating a patient’s degree of heart damage and heart failure symptoms, a doctor can determine whether they fit the new BLOCK HF indication and would benefit from CRT.
CRT-P Device Indications:

Previously Approved by FDA:

Patients with moderate to severe heart failure symptoms (NYHA Functional Class III and IV) despite stable, optimal heart failure medical therapy
PLUS severe heart damage (cardiac ejection fraction [LVEF] less than or equal to 35%) PLUS electrocardiogram (EKG) signs of poor synchronization of the ventricles

New BLOCK HF Indication:

slow or absent ventricular heart beating (atrioventricular block [AV block] expected to require a high percentage of ventricular pacing that would traditionally require a conventional pacemaker PLUS mild to moderate heart failure symptoms (NYHA Functional Class I, II or III) PLUS at least mild heart muscle damage (cardiac ejection fraction [LVEF] less than or equal to 50%)

NOTE: heart failure medications must be optimized after the device is implanted.
CRT-D Device Indications:

Previously Approved by FDA:

The primary use of a CRT-D system is for automated treatment of life-threatening ventricular arrhythmias. They also provide CRT in heart failure patients on stable, optimal heart failure medical therapy if indicated, and meet any of the following heart failure classifications:

Patients with moderate to severe heart failure symptoms (NYHA Functional Class III and IV)

PLUS severe heart damage (cardiac ejection fraction [LVEF] less than or equal to 35%)

PLUS EKG signs of poor synchronization of the ventricles

OR

Patients with mild to moderate heart failure symptoms (NYHA Functional Class II)

PLUS EKG signs of very poor synchronization of the ventricles (Left bundle branch block (LBBB) with a ventricular stimulation time greater than or equal to130 ms)

PLUS severe heart damage (cardiac ejection fraction [LVEF] less than or equal to 30%)

New BLOCK HF CRT-D Indication:
The primary use of a CRT-D system is for automated treatment of life-threatening ventricular arrhythmias. They also provide CRT in heart failure patients on stable, optimal heart failure medical therapy if indicated, and meet any of the following heart failure classifications:  slow or absent ventricular heart beating (atrioventricular block [AV block] expected to require a high percentage of ventricular pacing that would traditionally require a conventional pacemaker PLUS mild to moderate heart failure symptoms (NYHA Functional Class I, II or III)

PLUS at least mild heart muscle damage (cardiac ejection fraction [LVEF] less than or equal to 50%)

NOTE: heart failure medications must be optimized after the device is implanted.
What will it accomplish? Based on the results of the BLOCK HF clinical study, when used in the new population as described above, patients may benefit by experiencing less frequent heart failure worsening or need for urgent treatment.
When should it not be used? The contraindications for the CRT-P and CRT-D devices are listed below.

CRT-P Devices:

implantation with another bradycardia device
implantation with an implantable cardioverter defibrillator
There are no known contraindications for the use of pacing as a therapy to control heart rate. The patient’s age and medical condition, however, may determine the particular pacing system, mode of operation, and implant procedure used by the doctor.

automatic adjustment of pacing rate may be contraindicated in those patients who cannot tolerate pacing rates above the programmed Lower Rate.

Dual chamber sequential pacing is contraindicated in patients with chronic or persistent supraventricular tachycardias, including atrial fibrillation or flutter.
Asynchronous pacing is contraindicated in the presence (or likelihood) of competition between paced and intrinsic rhythms.

Single chamber atrial pacing is contraindicated in patients with an AV conduction disturbance.

Anti-tachycardia pacing (ATP) therapy is contraindicated in patients with an accessory antegrade pathwayCRT-D Devices:

Patients experiencing tachyarrhythmia with transient or reversible causes including, but not limited to, the following: heart attack (acute myocardial infarction), drug intoxication, drowning, electric shock, electrolyte imbalance, hypoxia disclaimer icon , or sepsis.

Patients who have a unipolar pacemaker implanted.
Patients with continuous ventricular tachycardia (VT) or ventricular fibrillation (VF).

Patients whose primary disorder is chronic atrial tachyarrhythmia in the absence of VT or VF. (NOTE: This contraindication does not apply to the Maximo II devices).

FTC SETTLES CHARGES REGARDING DECEPTIVE AD FOR NISSAN FRONTIER TRUCK

FROM:  U.S. FEDERAL TRADE COMMISSION 

FTC Approves Final Consent Settling Charges Nissan Frontier Truck Ad Was Deceptive

Nissan North America, Inc., Advertising Agency TBWA Worldwide, Inc. Named in Case

Following a public comment period, the Federal Trade Commission has approved final consent orders settling charges that Nissan North America, Inc. and advertising agency TBWA Worldwide, Inc. deceptively advertised a Nissan Frontier truck pushing a dune buggy up a steep hill, something the truck actually cannot do.

First announced in January 2014, the settlements prohibit Nissan and TBWA Worldwide, which designed the 30-second television ad for the mid-sized truck, from misrepresenting any material quality or feature of a pickup truck through the depiction of a test, experiment, or demonstration. The orders do not prohibit the use of special effects and other production techniques as long as they do not misrepresent a material quality or feature of the pickup truck.

The Commission vote to approve the final order in this case was 4-0-1 with Commissioner McSweeny not participating.

WHITE HOUSE WEEKLY ADDRESS FOR MAY 10, 2014

FROM:  THE WHITE HOUSE 

Weekly Address: The First Lady Marks Mother’s Day and Speaks Out on the Tragic Kidnapping in Nigeria

WASHINGTON, DC – In this week’s address, First Lady Michelle Obama honored all mothers on this upcoming Mother’s Day and offered her thoughts, prayers and support in the wake of the unconscionable terrorist kidnapping of more than 200 Nigerian girls.

The audio of the address and video of the address will be available online atwww.whitehouse.gov at 6:00 a.m. ET, Saturday, May 10, 2014.

Remarks of First Lady Michelle Obama

Weekly Address

May 10, 2014

Hello everyone, I’m Michelle Obama, and on this Mother’s Day weekend, I want to take a moment to honor all the mothers out there and wish you a Happy Mother’s Day. 

I also want to speak to you about an issue of great significance to me as a First Lady, and more importantly, as the mother of two young daughters.

Like millions of people across the globe, my husband and I are outraged and heartbroken over the kidnapping of more than 200 Nigerian girls from their school dormitory in the middle of the night. 

This unconscionable act was committed by a terrorist group determined to keep these girls from getting an education – grown men attempting to snuff out the aspirations of young girls. 

And I want you to know that Barack has directed our government to do everything possible to support the Nigerian government’s efforts to find these girls and bring them home. 

In these girls, Barack and I see our own daughters. We see their hopes, their dreams – and we can only imagine the anguish their parents are feeling right now.

Many of them may have been hesitant to send their daughters off to school, fearing that harm might come their way. 

But they took that risk because they believed in their daughters’ promise and wanted to give them every opportunity to succeed. 

The girls themselves also knew full well the dangers they might encounter. 

Their school had recently been closed due to terrorist threats…but these girls still insisted on returning to take their exams. 

They were so determined to move to the next level of their education…so determined to one day build careers of their own and make their families and communities proud.   

And what happened in Nigeria was not an isolated incident…it’s a story we see every day as girls around the world risk their lives to pursue their ambitions. 

It’s the story of girls like Malala Yousafzai from Pakistan.

Malala spoke out for girls’ education in her community…and as a result, she was shot in the head by a Taliban gunman while on a school bus with her classmates. 

But fortunately Malala survived…and when I met her last year, I could feel her passion and determination as she told me that girls’ education is still her life’s mission. 

As Malala said in her address to the United Nations, she said “The terrorists thought that they would change our aims and stop our ambitions but nothing changed in my life except this: Weakness, fear and hopelessness died. Strength, power and courage was born.”

The courage and hope embodied by Malala and girls like her around the world should serve as a call to action. 

Because right now, more than 65 million girls worldwide are not in school. 

Yet, we know that girls who are educated make higher wages, lead healthier lives, and have healthier families. 

And when more girls attend secondary school, that boosts their country’s entire economy. 

So education is truly a girl’s best chance for a bright future, not just for herself, but for her family and her nation. 

And that’s true right here in the U.S. as well…so I hope the story of these Nigerian girls will serve as an inspiration for every girl – and boy – in this country. 

I hope that any young people in America who take school for granted – any young people who are slacking off or thinking of dropping out – I hope they will learn the story of these girls and recommit themselves to their education.

These girls embody the best hope for the future of our world…and we are committed to standing up for them not just in times of tragedy or crisis, but for the long haul.

We are committed to giving them the opportunities they deserve to fulfill every last bit of their God-given potential. 

So today, let us all pray for their safe return... let us hold their families in our hearts during this very difficult time…and let us show just a fraction of their courage in fighting to give every girl on this planet the education that is her birthright.  Thank you.

PHOTOS: U.S. PARATROOPS AT EXERCISE ROCK PROOF IN SLOVENIA

FROM:  U.S. DEFENSE DEPARTMENT 

U.S. PARATROOPERS PARTICIPATE IN EXERCISE ROCK PROOF IN POSTOJNA, SLOVENIA

U.S. paratroopers engage opposing forces while clearing a simulated village during exercise Rock Proof in Postojna, Slovenia, April 27, 2014. The parartroopers are assigned to the 2nd Battalion, 503rd Infantry Regiment, 173rd Infantry Brigade Combat Team, Airborne. U.S. Army photo by Spc. Franklin R. Moor.

A U.S. paratrooper engages a target with an AT4 anti-tank grenade launcher during exercise Rock Proof in Postonja, Slovenia, April 28, 2014. U.S. Army photo by Staff Sgt. Pablo N. Piedra.

AGREEMENT REACHED IN SOUTH SUDAN.

FROM:  U.S. STATE DEPARTMENT 

U.S. Welcomes Agreement between President Kiir and Machar

Press Statement

John Kerry
Secretary of State

Washington, DC

May 9, 2014

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Today's agreement to immediately stop the fighting in South Sudan and to negotiate a transitional government could mark a breakthrough for the future of South Sudan. The hard journey on a long road begins now and the work must continue.

We urge both leaders to take immediate action now to ensure that this agreement is implemented in full and that armed groups on both sides adhere to its terms.

We also acknowledge the effort of the Chairman of the Intergovernmental Authority for Development, Prime Minister Hailemariam Desalegn, to convene this meeting and to mediate this positive outcome between the two leaders.

I saw with my own eyes last week the stakes and the struggles in a new nation we helped courageous people create. The people of South Sudan have suffered too much for far too long. In this most recent crisis alone, over one million people have been displaced, even more now face the prospect of famine, and, as the recent UN Mission Human Rights report found, there have been human rights abuses on a massive scale committed by both sides.

This agreement presents an opportunity to start a path towards peace that must not be lost. We will do all we can to help.