VP BIDEN SPEAKS AT JOINT U.S. AND ROMANIAN CARPATHIAN SPRING MILITARY EXERCISE

FROM:  THE WHITE HOUSE 

Remarks by Vice President Joe Biden to Joint United States and Romanian Participants in Carpathian Spring Military Exercise

Otopeni Military Airbase
Bucharest, Romania

3:31 P.M. (Local)

THE VICE PRESIDENT:  Let me begin by saying, Mr. Minister, thank you, and it’s very hot in here.  I was supposed to -- I was told it was going to be cooler here, but thank you for the great weather.

Ladies and gentlemen, it’s an honor to have a chance to see our militaries work together in this Carpathian Spring Joint Military Exercise.  The last time I saw you working together was in Afghanistan.  And it is -- it’s a great benefit to both of us that we are side by side.  It’s my pleasure to take a moment to recognize all that you do to keep the people safe and strong in our alliance. 

Over the past 25 years I’ve come to know and appreciate this beautiful country.  I’ve been here many, many times.  I’ve met I think with just about every one of your leaders.  I’ve watched you make the journey from tyranny to freedom.  I even advocated for Romania’s early entry into NATO when I was a United States senator. 

Even so I’m not sure I understood the full extent of the moral and physical courage of the Romanian people when we began this effort until I heard about you from American troops on the front lines.  They told me that Romanian soldiers were warriors.  They were capable, and they were brave.  I think our fellow men and women here in American uniforms would agree that we are very proud -- very proud -- to serve with Romanian forces. 

So above all I’m here to say thank you to the Romanian men and women who serve to keep us safe, to the families who wait for them at home.  My wife, Jill, and I understand what it’s like to wait.  Our son spent a year in Iraq.  And so your families, we owe you as well. 

And I especially want to pay tribute to the 26 Romanians who gave their lives in Iraq and Afghanistan, and the 143 who were wounded.  We owe them and their loved ones a debt of gratitude that we will never be able to repay.

In Romania, American forces have found a devoted NATO ally.  I never doubted that for a moment as the effort to admit Romania into NATO was underway, serious and steadfast partner that you’ve been from day one.  About a thousand Romanians remain in Afghanistan -- four serving without caveats, fully in the fight, alongside our women and men.  And I’m pleased that you will continue to support the post-2014 mission in Afghanistan.

Romania today is hosting U.S. Marines at the M-K Airbase, which also supports logistical operations for Afghanistan.  You’re building a fleet of F-16s.  Romania is working to bring its defense budget up to 2 percent of GDP, as all NATO allies should and must.

To the Americans here today, let me say that I believe you are the greatest generation of warriors the world has ever produced.  And that is not hyperbole.  You represent a generation of Americans equal to any that has ever gone before you.  I’ve seen you in Bosnia and Kosovo, Baghdad and Basra, Fallujah and Ramadi, Kabul and Kandahar.  I’ve even seen you in those FOBs up in the Kunar Valley.  You’re an incredible group of warriors. 

You and your family are part of an unbroken chain of patriots who’ve stood guard since World War II over freedom’s frontier, right here in Europe.  I could not be more proud of all of you.

We too care deeply about the alliance, Mr. Minister.  America’s commitment to collective defense under Article 5 of NATO is a sacred obligation in our view -- a sacred obligation not just for now, but for all time.  So I’m here to say on behalf of the President what I hope you already know:  You can count on us.  Period.  We do what we say, and we mean what we say.

Today aggression in Crimea, less than 250 miles from Romanian territory, from NATO’s borders reminds us why we need NATO and why Romania belongs to NATO.  What Russia has done violates not just Ukraine’s sovereignty, but a fundamental principle we fought for in the 20th century and thought we had clearly established.  Europe’s borders should never again be changed at the point of a gun, which is why we continue to condemn -- condemn -- Russia’s illegal occupation of Crimea. 

So long as Russia’s efforts to destabilize Ukraine continues we must remain resolute in imposing greater costs on Russia, imposing those costs together.  But our strategy is about more than just imposing cost.  It’s fundamentally about investing in a revitalized NATO that emerges from this crisis and works toward a successful summit in Wales, stronger and more united.  America and our NATO allies have urgently stepped up our military presence in the air, land and on the sea of NATO’s eastern flank.  In just the past weeks we’ve had ships visit.  The USS Truxton, Cook, Taylor, as well as the Dacian Viper F-16 exercise.  And in the coming days, new ships -- the Vella Gulf will enter the Black Sea to conduct port visits and maritime training.  Period. 

Since mid March the U.S. has been flying refueling missions over Poland and Romania in support of NATO’s AWACs.  And we are on track to open up a missile defense site at Deveselu, next year.  We support the Supreme Allied Commander of Europe’s intention to finalize contingency plans for the Black Sea allies by the Wales summit.  And we have -- we have assigned extra strategic planners to help NATO meet that goal.  As President Obama said, “NATO nations never stand alone.”  NATO nations never stand alone. 

I want to thank our Romanian colleagues for standing with us, alongside us, emboldening us, making us stronger.  And I thank each and every one of the American troops for their continued patriotic service.  Each and every one of you is doing your countries a great service.

May God bless Romania, may God bless America, and may God protect our troops.  Thank you for your service.  (Applause.)

END

SECRETARY OF STATE KERRY'S PRESS STATEMENT ON INDIAN ELECTIONS AND NEW GOVERNMENT

FROM:  U.S. STATE DEPARTMENT

Indian Elections and Formation of New Government

Press Statement

John Kerry

Secretary of State

Washington, DC

May 20, 2014

---

I offer my congratulations to the Bharatiya Janata Party on their resounding victory in India’s historic national election, and to Narendra Modi on his election as Prime Minister of India. I also extend warm congratulations to all the newly elected parliamentarians.

When the people of India hold the biggest democratic election in human history, all the world tunes in to watch. And what we saw has been nothing short of remarkable: more voters cast their ballots freely and fairly than any other in world history, with over 530 million Indians going to the polls. The voice of the Indian electorate is clear and unequivocal in its call for economic opportunity and effective governance for all.

The United States stands ready to work closely with Prime Minister Modi and the new government to promote shared prosperity and strengthen our security. The friendship between the world’s oldest democracy and the world’s largest democracy is absolutely vital, and the United States is deeply invested in our strategic relationship. We look forward to strengthening our partnership based on common values, shared democratic traditions, and the binding ties between our peoples.

Every time I visit India, I’m struck by the vibrancy of your culture, the energy of your youth, and the strength of your democratic institutions. I look forward to returning to India soon and echo President Obama’s invitation to Prime Minister Modi to visit the United States at the earliest opportunity.

U.S. SENDS WARMEST WISHES AND CONGRATULATIONS TO PEOPLE OF TIMOR-LESTE ON THEIR INDEPENDENCE DAY

FROM:  U.S. STATE DEPARTMENT 

On the Occasion of Timor-Leste's Restoration of Independence Day

Press Statement

John Kerry

Secretary of State

Washington, DC

May 19, 2014

---

On behalf of President Obama and the American people, I send my warmest wishes and congratulations to the people of Timor-Leste as you celebrate the 12th anniversary of your independence this May 20.

This day commemorates an important moment in history for all those who cherish liberty, for it marks the birth of a new, peaceful, and democratic nation, born of the sacrifice and determination of the Timorese people.

Since becoming the first new nation of the 21st century, Timor-Leste has distinguished itself by championing new development approaches for post-conflict states. It is a global advocate for human rights and democracy and has led by example, most recently, in laudable efforts to support free and fair elections and help build a brighter future in Guinea-Bissau.
Timor-Leste is a strong partner and a valued friend. May the year ahead bring you continued peace and prosperity and may it further strengthen the ties between our countries.

MARINES FIGHT FIRES BURNING ACROSS CAMP PENDLETON

FROM:  U.S. DEFENSE DEPARTMENT 

Marines prepare a CH-46 Sea Knight helicopter to assist in containing the Tomahawk fires on Marine Corps Base Camp Pendleton, Calif., May 16, 2014. The Marines are assigned to Marine Medium Helicopter Squadron 364, Marine Aircraft Group 39, 3rd Marine Aircraft Wing. The Marines and the Camp Pendleton Fire Department worked with state officials to prevent fires from spreading off base.  U.S. Marine Corps photo by Sgt. Keonaona C. Paulo.

A U.S. Marine Corps CH-46 Sea Knight helicopter lifts off after filling a Bambi bucket to help fight fires and contain the Cocos fire in San Marcos, Calif., May 16, 2014. U.S. Marine Corps photo by Sgt. Keonaona C. Paulo.

U.S. Marine Corps Sgt. Carmen Zangari observes a Bambi bucket being filled beneath a CH-46 Sea Knight helicopter to help fight the Tomahawk wildfires burning across Marine Corps Base Camp Pendleton, Calif., May 16, 2014. Zangari, a flightline crew chief, is assigned to Marine Medium Helicopter Squadron 364, Marine Aircraft Group 39, 3rd Marine Aircraft Wing. U.S. Marine Corps photo by Sgt. Keonaona C. Paulo.

FTC CHARGES GREEN COFFEE BEAN SELLERS WITH USING FAKE NEWS SITES, FICTITIOUS WEIGHT LOSS CLAIMS

FROM:  FEDERAL TRADE COMMISSION 

FTC Charges Green Coffee Bean Sellers with Deceiving Consumers through Fake News Sites and Bogus Weight Loss Claims

The Federal Trade Commission has sued a Florida-based operation that capitalized on the green coffee diet fad by using bogus weight loss claims and fake news websites to market the dietary supplement Pure Green Coffee. Popularized on the syndicated talk show The Dr. Oz Show, green coffee bean extract was touted as a potent weight loss treatment that supposedly burns fat.

The FTC alleged that weeks after green coffee was first promoted on The Dr. Oz Show, the defendants behind Pure Green Coffee – Nicholas Congleton, Paul Pascual, Bryan Walsh, and the companies they control – began selling their Pure Green Coffee extract, charging about $50 for a one-month supply. They marketed the dietary supplement through ads on their own sales websites – with names such as buypuregreencoffee.com, buygreenweightloss.com, greencoffeeweightcontrol.com. The sites featured footage from The Dr. Oz Show, supposed consumer endorsements, and purported clinical proof that dieters could lose weight rapidly without changing their diet or exercise regimens. The defendants also ran paid banner and text ads that appeared on search engines and contained phony weight loss claims.

The defendants made similar claims on websites they set up to look like legitimate news sites or blogs, but were in fact advertisements, and on other “fake news” sites run by affiliate marketers whom they paid to advertise the Pure Green Coffee product, according to the complaint. The fake news sites featured mastheads of fictitious news organizations such as Women’s Health Journal and Healthy Living Reviewed, as well as logos they appropriated from actual news organizations, like CNN and MSNBC.

“Not only did these defendants trick consumers with their phony weight loss claims, they also compounded the deception by advertising on pretend news sites, making it impossible for people to know whether they were seeing news or an ad,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection.

The FTC charged the defendants with false and unsupported advertising claims, including:

that consumers using Pure Green Coffee can lose 20 pounds in four weeks; 16 percent of body fat in twelve weeks; and 30 pounds and four-to-six inches of belly fat in three to five months.
that studies prove Pure Green Coffee use can result in average weight loss of 17 pounds in 12 weeks or 22 weeks, weight loss of 10.5 percent, and body fat loss of 16 percent without diet or exercise.
that certain websites linked to the defendants’ sites are objective news sites with articles written by objective news reporters and that the comments following the supposed articles reflected views of independent consumers.
The FTC also charged the defendants with deceptively failing to disclose that consumers who endorsed the supplement had received it for free and were paid to provide a video testimonial.

The complaint also names as defendants the companies used by Congleton, Pascual, and Walsh to market this operation:  NPB Advertising, Inc., also doing business as Pure Green Coffee; Nationwide Ventures, LLC; Olympus Advertising, Inc.; JMD Advertising, Inc.; and Signature Group, LLC.

Consumers should carefully evaluate advertising claims for weight-loss products. For more information, see the FTC’s guidance for consumers of products and services advertised for Weight Loss & Fitness.

The Commission vote authorizing the staff to file the complaint was 4-0-1, with  Commissioner McSweeny not participating. The complaint was filed in the U.S. District Court for the Middle District of Florida, Tampa Division on May 15, 2014.

The FTC is a member of the National Prevention Council, which provides coordination and leadership at the federal level regarding prevention, wellness, and health promotion practices. This case advances the National Prevention Strategy’s goal of increasing the number of Americans who are healthy at every stage of life.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.

TWO CLINICAL DRUG TRIAL DOCTORS CHARGED BY SEC WITH INSIDER TRADING IN BIOPHARMA STOCK

FROM: U.D.  SECURITIES AND EXCHANGE COMMISSION 

SEC Charges Two Clinical Drug Trial Doctors with Insider Trading

The Securities and Exchange Commission today announced charges against Dr. Franklin M. Chu and Dr. Daniel J. Lama of San Bernardino Urological Associates Medical Group ("SBUA"), San Bernardino, California, for insider trading in the securities of GTx Inc., a biopharmaceutical company based in Memphis Tennessee. The SEC's complaints against Dr. Chu and Dr. Lama were filed in U.S. District Court for the Central District of California.

The SEC alleges that Drs. Chu and Lama were medical investigators in the clinical trials of Capesaris, a drug GTx developed for the treatment of prostate cancer. As alleged in the complaints, the purpose of the clinical trials was to test the safety and efficacy of Capesaris in anticipation of GTx applying for approval of the drug by the Food and Drug Administration ("FDA"). According to the complaints, beginning in early 2011, GTx entered into a series of Clinical Trial Agreements ("CTA") with SBUA, Chu's and Lama's medical practice, pursuant to which GTx paid compensation to SBUA for each patient the practice enrolled in the study. As alleged in the complaints, the CTAs contained strict confidentiality provisions that prohibited Drs. Chu and Lama from using confidential information about the clinical trials for any purpose other than rendering services under the CTAs.

The SEC alleges that on Friday February 17, 2012, Chu and Lama each learned material, nonpublic information from GTx that the FDA was placing a hold on the Capesaris clinical trials because of concerns of an increased risk of blood clots in patients participating in the clinical trials. The SEC further alleges that immediately after learning this confidential information, and in breach of their duty to GTx, Chu and Lama each sold shares of GTx stock they held personal accounts. According to the complaints, Chu sold 16,000 shares of GTx stock, and Lama sold 5,400 shares of GTx stock, at an average sale price of $5.82 per share. As alleged in the complaints, on Tuesday February 21, 2012, after GTx publicly announced the FDA hold on the Capesaris clinical trials, the market price of GTx stock dropped over 36% and closed at $3.69 per share. The SEC alleges that as a result of trading on material, nonpublic information about the FDA hold prior to the public announcement, Chu and Lama each avoided trading losses of approximately $34,081 and $11,502, respectively. The SEC further alleges that when later contacted by SEC staff investigating this matter, Lama initially provided false information, including claiming that he had no knowledge of the FDA hold at the time of his trading. To settle the SEC's charges, Dr. Chu and Dr. Lama have each consented to the entry of a final judgment, which are subject to court approval. Dr. Chu has consented to a final judgment that permanently enjoins him from future violations of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933 ("Securities Act"), and orders him to pay disgorgement of $34,081, plus prejudgment interest of $2,014, and a one-time civil penalty of $34,081. Dr. Lama has consented to a final judgment that permanently enjoins him from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and Section 17(a) of the Securities Act, and orders him to pay disgorgement of $11,502, plus prejudgment interest of $680, and a three-time civil penalty of $34,506.

NSF EXAMINES HIV BUDDING FROM CELLS

FROM:  NATIONAL SCIENCE FOUNDATION 

Catching HIV budding from cells: it all comes down to ALIX

Study shows last-minute role of specific protein named ALIX

The secrets of the AIDS virus may all come down to a protein named ALIX.

Researchers have devised a way to watch newly forming AIDS particles emerging or "budding" from infected human cells without interfering with the process.

The method shows that a protein named ALIX (which stands for "alg-2 interacting protein x") gets involved during the final stages of virus replication, not early on, as was believed. ALIX assists in separating new virus buds from a cell. These buds repeat the replication process and further infect their host.

"We watch one cell at a time" and use a digital camera and special microscope to make movies and photos of the budding process, says virologist Saveez Saffarian, a scientist at the University of Utah, and co-author of a paper on HIV budding published this week in the journal PLOS ONE.

"We saw ALIX recruited into HIV budding for the first time," he says. "Everybody knew that ALIX was involved in HIV budding, but nobody could visualize the recruitment of ALIX into the process."

The finding has no immediate clinical significance for AIDS patients because ALIX is involved in too many critical functions like cell division to be a likely target for new medications, Saffarian says.

"We know a lot about the proteins that help HIV get out of the cell, but we don't know how they come together to help the virus emerge," he says. "In the next 10 to 20 years, we will know a lot more about this mechanism."

Saffarian conducted the research with the paper's first author Pei-I Ku, as well as researchers Mourad Bendjennat, Jeff Ballew and Michael Landesman. All are with the University of Utah.

The research was funded by the National Science Foundation (NSF).

"This project has led to the development of an important technique in basic research in cell biology and virology," says Parag Chitnis, director of NSF's Division of Molecular and Cellular Biosciences.

"It's uncovering a new understanding of the viruses involved in human diseases," says Chitnis. "This is an excellent example of how purely basic research can lead to the fundamental understanding of topics of societal need."

Watch, don't touch, as HIV buds

Biochemical methods used for years involve collecting millions of viruses in lab glassware and conducting analyses to reveal the proteins that make up the virus--for example, by using antibodies that bind to certain proteins and using other proteins to make the first proteins fluoresce so they can be seen.

"You're not doing it one virus at a time," Saffarian says. "The problem is that you don't see the differences among similar viruses. And you don't see the timing of how various proteins come and go to help the virus get out of the cell."

Other methods freeze or otherwise fix cells as new HIV particles emerge, and use an electron microscope to photograph freeze-frame views of viral replication.

Saffarian employs technology known as "total internal reflection fluorescence microscopy" that looks at the dynamic processes in cells.

The method has been used to make images of the budding of HIV and a similar horse virus, EIAV.

But Saffarian says that the EIAV study didn't show ALIX becoming involved in HIV budding, and that it wrongly indicated that ALIX got involved early in the EIAV budding process, suggesting it did the same in HIV budding.

Ku, Saffarian and colleagues combined their microscopy method with an improved way of genetically linking a green fluorescent "label" to ALIX proteins in cloned cells so they could see the proteins without harming their normal function.

The researchers tried numerous so-called "linkers" and found the one that let them see the ALIX proteins as they became involved in HIV budding.

Neither the microscope technology nor labeling proteins with green fluorescence are new, but "what we did that is new is to connect these fluorescence proteins to ALIX using many different kinds of linkers," says Saffarian, to find one that let the ALIX protein function properly.

The problem with research that indicated ALIX was involved early in the budding process was that only one linker was used, and it impaired ALIX's normal function, the scientists say.

Looking at proteins forming HIV

When HIV replicates inside a human cell, a protein named Gag makes up most of the new particles--there are 4,000 copies of the Gag protein in one HIV particle--although other proteins get involved in the process, including ALIX.

Experiments like those by Saffarian use "virus-like particles," which are HIV particles stripped of their genetic blueprint or genome so they don't pose an infection risk in the lab.

"Virus-like particles maintain the same geometry and same budding process as infectious HIV," Saffarian says.

During budding, Gag proteins assemble on the inside of a cell membrane--along with ALIX in the late stages--and form a new HIV particle that pushes its way out of the cell--the process by which AIDS in an infected person spreads from cell to cell.

To look at the budding process, Ku and Saffarian placed human cells containing the particles in a small amount of liquid growth medium in a petri dish and placed it under the microscope, which is in a glass chamber kept at body temperature so the cells can remain alive for more than 48 hours.

A solid-state blue laser was aimed at the sample to make the green-labeled ALIX and red-labeled Gag proteins glow or fluoresce so they could be seen as they assembled into a virus particle.

With red-labeled Gag proteins and green-labeled ALIX proteins, "we could see ALIX come in at the end of the assembly of the virus particle," says Saffarian. Some 100 ALIX proteins converged with the roughly 4,000 Gag molecules and assembled into a new HIV particle.

Enter ALIX

ALIX then brought in two other proteins, which cut off the budding virus particle from the cell when it emerged. ALIX's position during the pinching off of new particles hadn't been recognized before.

The researchers watched the virus particles bud one cell at a time: about 100 particles emerged during a two-hour period. Most of the ALIX proteins left when HIV assembly was complete and returned to the liquid inside a cell.

Saffarian says the discovery that ALIX doesn't get involved until the late stages of HIV budding suggests the existence of a previously unrecognized mechanism that regulates the timing of ALIX and other proteins in assembling new HIV particles.

"We discovered that the cellular components that help with the release of the virus arrive in a much more complex timing scheme than predicted based on the biochemical data," he says.

"The outcome of this study is promising because it uncovers a new regulatory mechanism for recruitment of cellular components to HIV budding sites, and opens the door to exciting future studies on the mechanism of HIV budding."

SBA PROPOSES REVISIONS TO SIZE STANDARDS FOR LOANS IN SOME INDUSTRIES

FROM:  U.S. SMALL BUSINESS ADMINISTRATION 

SBA PROPOSES REVISIONS TO SIZE STANDARDS FOR WHOLESALE TRADE AND RETAIL TRADE INDUSTRIES

WASHINGTON – The U.S. Small Business Administration has proposed increasing small business size standards affecting businesses in 46 industries in North American Industry Classification System (NAICS) Sector 42, Wholesale Trade, and in one industry in Sector 44-45, Retail Trade.  If they are adopted, nearly 4,000 more firms will become eligible for SBA’s loan programs.  The proposed rule was published in the Federal Register today.

The proposed size standards would define the maximum number of employees a firm in these industries could have and still be a small business.  The proposed revisions reflect changes in marketplace conditions.

SBA proposed to retain the current size standards for the remaining industries in those sectors.  SBA reviewed all of the employee-based size standards for both sectors to determine whether the size standards should be revised or retained.

The SBA has also proposed to retain the current 500-employee size standard for federal procurement of supplies under its non-manufacturer rule because Wholesale Trade and Retail Trade NAICS codes and their small business size standards cannot be used for procurement of supplies.  These proposed revisions primarily affect eligibility for SBA’s financial assistance programs.

CREDIT SUISSE PLEADS GUILTY TO CONSPIRACY TO AID U.S. CITIZENS WITH FILING FALSE TAX RETURNS

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, May 19, 2014

Credit Suisse Pleads Guilty to Conspiracy to Aid and Assist U.S. Taxpayers in Filing False Returns

Bank Admits to Helping U.S. Taxpayers Hide Offshore Accounts from IRS; Agrees to Pay $2.6 Billion, Highest Ever Payment in a Criminal Tax Case Investigation Has Also Led to Indictment of Eight Credit Suisse Employees since 2011.

Credit Suisse AG pleaded guilty today to conspiracy to aid and assist U.S. taxpayers in filing false income tax returns and other documents with the Internal Revenue Service (IRS).  The guilty plea by the Swiss corporation is the result of a years-long investigation by U.S. law enforcement authorities that has also produced indictments of eight Credit Suisse executives since 2011; two of those individuals have pleaded guilty so far.

The plea agreement, along with agreements made with state and federal partners, provides that Credit Suisse will pay a total of $2.6 billion - $1.8 billion to the Department of Justice for the U.S. Treasury, $100 million to the Federal Reserve, and $715 million to the New York State Department of Financial Services.  The plea agreement was filed in the Eastern District of Virginia today.  Earlier this year, Credit Suisse paid approximately $196 million in disgorgement, interest and penalties to the Securities and Exchange Commission (SEC) for violating the federal securities laws by providing cross-border brokerage and investment advisory services to U.S. clients without first registering with the SEC.  That settlement with the SEC is also reflected in today’s plea agreement.  Together, these actions by U.S. law enforcement and state and federal partners appropriately punish Credit Suisse for its past behavior in these matters.

The announcement was made by Attorney General Eric H. Holder, Deputy Attorney General James M. Cole, Assistant Attorney General Kathryn Keneally for the Justice Department’s Tax Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, and Commissioner John Koskinen of the IRS.

“This case shows that no financial institution, no matter its size or global reach, is above the law,” said Attorney General Holder.  “Credit Suisse conspired to help U.S. citizens hide assets in offshore accounts in order to evade paying taxes.  When a bank engages in misconduct this brazen, it should expect that the Justice Department will pursue criminal prosecution to the fullest extent possible, as has happened here.”

As part of the plea agreement, Credit Suisse acknowledged that, for decades prior to and through 2009, it operated an illegal cross-border banking business that knowingly and willfully aided and assisted thousands of U.S. clients in opening and maintaining undeclared accounts and concealing their offshore assets and income from the IRS.

“Credit Suisse’s guilty plea is just the latest effort by the department to slam the door shut on undeclared bank accounts, phony trusts and other foreign schemes used by U.S. taxpayers to evade taxes,” said Deputy Attorney General Cole.  “We will continue to hold to account the bankers, the brokers and other professionals in Switzerland and around the world as well as the institutions that trained and directed them to use bank secrecy laws to protect U.S. tax cheats.”

According to the statement of facts filed with the plea agreement, Credit Suisse employed a variety of means to assist U.S. clients in concealing their undeclared accounts, including by:

•          assisting clients in using sham entities to hide undeclared accounts;
•          soliciting IRS forms that falsely stated, under penalties of perjury, that the sham entities were the beneficial owners of the assets in the accounts;
•          failing to maintain in the United States records related to the accounts;
•          destroying account records sent to the United States for client review;
•          using Credit Suisse managers and employees as unregistered investment advisors on undeclared accounts;
•          facilitating withdrawals of funds from the undeclared accounts by either providing hand-delivered cash in the United States or using Credit Suisse’s correspondent bank accounts in the United States;
•          structuring transfers of funds to evade currency transaction reporting requirements; and
•          providing offshore credit and debit cards to repatriate funds in the undeclared accounts.

As part of the plea agreement, Credit Suisse further agreed to make a complete disclosure of its cross-border activities, cooperate in treaty requests for account information, provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed, and to close accounts of account holders who fail to come into compliance with U.S. reporting obligations.  Credit Suisse has also agreed to implement programs to ensure its compliance with U.S. laws, including its reporting obligations under the Foreign Account Tax Compliance Act and relevant tax treaties, in all its current and future dealings with U.S. customers.

“Today’s plea by Credit Suisse is a significant step in our global enforcement against those who would avoid their tax obligations by hiding their assets in foreign bank accounts, and those financial institutions, bankers, and other professionals who facilitate this conduct,” said Assistant Attorney General Keneally for the Tax Division. “Credit Suisse has also changed its business operations to ensure that U.S. taxpayers will no longer be able to hide their assets at Credit Suisse, and provided the government with valuable information that will further our investigations.”

“This prosecution and plea should serve notice that secret accounts and assisting the evasion of income taxes has a high cost,” said U.S. Attorney Boente.  “Concealing financial accounts from the U.S. government is not a legitimate part of wealth management or private banking services.”

“Pursuing international tax evasion is a priority area for IRS Criminal Investigation, and we will continue to follow the money here in the United States and around the world” said IRS Commissioner Koskinen.  “I want to commend the special agents in IRS-Criminal Investigation for all of their hard work in this area and the close cooperation with the Department of Justice.  Today's guilty plea is another important milestone in ongoing law enforcement efforts to investigate the use of offshore accounts to evade taxes.  People should no longer feel comfortable hiding their assets and income from the IRS.”

The Board of Governors of the Federal Reserve System is also announcing today that it has reached a resolution with Credit Suisse, by which Credit Suisse has agreed to a cease and desist order, certain remedial steps to ensure its compliance with U.S. law in its ongoing operations, and a civil monetary penalty of $100 million.  Additionally, the New York State Department of Financial Services is announcing a similar resolution by which Credit Suisse has agreed to a cease and desist order and a monetary penalty of $715 million.

* * *

On Feb. 23, 2011, a grand jury in the Eastern District of Virginia returned an indictment charging four Credit Suisse employees - Marco Parenti Adami, a former Credit Suisse manager; Emanuel Agustino, a former Credit Suisse banker; Michele Bergantino. a former Credit Suisse banker; and Roger Schaerer, Credit Suisse’s former Representative Officer in its Representative Office in New York - with conspiring with other Swiss bankers and U.S. taxpayers to defraud the United States.  On July 21, 2011, the grand jury returned a superseding indictment adding four additional defendants charged with the conspiracy to defraud the United States.  The four new defendants were: Markus Walder, the former head of North America Offshore Banking at Credit Suisse; Süsanne D. Rüegg Meier, a former Credit Suisse manager; Andreas Bachmann, a former banker at Credit Suisse Fides, a subsidiary of Credit Suisse; and Josef Dörig, a former Credit Suisse Fides employee and owner/operator of a trust company.  On March 12, 2014, Bachmann pleaded guilty to the superseding indictment in connection with his work as a banker at Credit Suisse Fides.  On April 30, 2014, Dörig pleaded guilty to conspiring to defraud the IRS in connection with his role managing offshore entities used by U.S. taxpayers to conceal their accounts at Credit Suisse.  Those pleas were accepted by U.S. District Judge Gerald Bruce Lee.  Bachmann and Dörig each face maximum penalties of five years in prison when they are sentenced on Aug. 8, 2014.

* * *

This case was prosecuted by Assistant U.S. Attorney Mark D. Lytle and Trial Attorneys Mark F. Daly and Nanette L. Davis of the Tax Division.  The case was investigated by IRS-Criminal Investigation.

The Department of Justice expressed gratitude to the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, the U.S. Securities and Exchange Commission, and the New York State Department of Financial Services for their significant and valuable assistance.

NSC SPOKESPERSON'S STATEMENT ON ASSISTANCE TO SOUTH SUDAN

FROM:  THE WHITE HOUSE  

Statement by NSC Spokesperson Caitlin Hayden on Additional Humanitarian Assistance for South Sudan

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In advance of tomorrow’s South Sudan pledging conference in Oslo, Norway, today the President authorized the use of up to $50 million in assistance from the U.S. Emergency Refugee and Migration Assistance Fund to help address urgent humanitarian needs resulting from the crisis in South Sudan.  The $50 million will support the UN High Commission for Refugees and its partners as they urgently expand assistance to help the more than 300,000 refugees that have crossed into Ethiopia, Kenya, Sudan, and Uganda, as well as to provide critical household items, shelter support, and protection services to internally displaced persons in South Sudan.

Months of conflict between the Government of South Sudan and rebel forces have exacted a terrible toll on the people of South Sudan.  More than 1.3 million people have been displaced, and the country is now at risk of famine unless humanitarian agencies are able to scale up relief efforts and access those in need.  Even as we continue our intensive effort to end the violence, we are working to meet the humanitarian needs of the South Sudanese people.  The $50 million in additional Emergency Refugee and Assistance Funds the President authorized today will form part of a package of nearly $300 million in additional assistance the U.S. delegation will formally pledge tomorrow in Oslo, bringing total U.S. humanitarian assistance since the start of the conflict in December 2013 to approximately $433.6 million.

AG HOLDER'S STATEMENT ON ABU HAMZA AL-MASRI CONVICTION

FROM:  THE JUSTICE DEPARTMENT 

Monday, May 19, 2014

Statement by Attorney General Eric Holder on the Conviction of Abu Hamza al-Masri

Attorney General Eric Holder issued the following statement today in response to a federal jury in Manhattan unanimously reaching a guilty verdict against Abu Hamza al-Masri:

“In both word and deed, Abu Hamza supported the cause of violent extremism. His conviction is as just as it was swift. This case is all the more noteworthy since it continues a trend of successful prosecutions of top terrorism suspects in our federal court system. With each efficiently delivered guilty verdict against a top al Qaeda-linked figure, the debate over how to best seek justice in these cases is quietly being put to rest.”

AG HOLDER'S COMMENTS ON CHARGES AGAINST FIVE CHINESE MILITARY HACKERS

FROM:  U.S. JUSTICE DEPARTMENT 

Attorney General Eric Holder Speaks at the Press Conference Announcing U.S. Charges Against Five Chinese Military Hackers for Cyber Espionage

Washington, D.C. ~ Monday, May 19, 2014

Good Morning. I am joined here by Assistant Attorney General for National Security John Carlin; U.S. Attorney for the Western District of Pennsylvania David Hickton; and Executive Director of the FBI Bob Anderson.

In his 2013 State of the Union Address, President Obama called the theft of corporate secrets by foreign countries and companies a real threat to our security and our economy.

We are here this morning to discuss a matter that proves this threat, warned about by the President, is all too real.

Today, we are announcing an indictment against five officers of the Chinese People’s Liberation Army for serious cybersecurity breaches against six American victim entities.

These represent the first ever charges against known state actors for infiltrating U.S. commercial targets by cyber means.

A federal grand jury in Pittsburgh has found that these five Chinese military officers conspired together, and with others, to hack into the computers of organizations in Western Pennsylvania and elsewhere in the United States.

The victim entities include Westinghouse Electric, Alcoa, Allegheny Technologies Incorporated, U.S. Steel, the United Steelworkers Union and SolarWorld.

This is a case alleging economic espionage by members of the Chinese military.

The range of trade secrets and other sensitive business information stolen in this case is significant and demands and aggressive response.

The indictment alleges that these PLA officers maintained unauthorized access to victim computers to steal information from those entities that would be useful to their competitors in China, including state-owned enterprises.

In some cases, they stole trade secrets that would have been particularly beneficial to Chinese companies at the time they were stolen.

In others, they stole sensitive, internal communications that would provide a competitor, or adversary in litigation, with insight into the strategy and vulnerabilities of the American entity.

In sum, the alleged hacking appears to have been conducted for no reason other than to advantage state-owned companies and other interests in China, at the expense of businesses here in the United States.

This is a tactic that the U.S. government categorically denounces. As President Obama has said on numerous occasions, we do not collect intelligence to provide a competitive advantage to U.S. companies, or U.S. commercial sectors.

Our economic security and our ability to compete fairly in the global marketplace are directly linked to our national security.

The success of American companies, since our nation’s founding, has been the result of hard work and fair play by our citizens.

This is how it ought to be across the globe. Success in the international marketplace should be based solely on a company’s ability to innovate and compete, not on a sponsor government’s ability to spy and steal business secrets.

When a foreign nation uses military or intelligence resources and tools against an American executive or corporation to obtain trade secrets or sensitive business information for the benefit of its state-owned companies, we must say, ‘enough is enough.’

This Administration will not tolerate actions by any nation that seeks to illegally sabotage American companies and undermine the integrity of fair competition in the operation of the free market.

This case should serve as a wake-up call to the seriousness of the ongoing cyberthreat. These criminal charges represent a groundbreaking step forward in addressing that threat.

The indictment makes clear that state actors who engage in economic espionage, even over the Internet from faraway offices in Shanghai, will be exposed for their criminal conduct and sought for apprehension and prosecution in an American court of law.

With that, it is my pleasure to turn it over to Assistant Attorney General for National Security John Carlin.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR MAY 19, 2014

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

ARMY

Lockheed Martin Missiles and Fire Control, Grand Prairie, Texas, was awarded a $212,326,161 modification (P00006) to an indefinite-delivery/indefinite quantity foreign military sales contract W31P4Q-13-D-0030 for services to the Patriot Advanced Capability-3 (PAC-3) Missile Support Center. Funding and work location will be determined with each order. This contract involves foreign military sales to Japan, Taiwan, Germany, Netherlands, Kuwait, and the United Arab Emirates. Estimated completion date is Dec. 31, 2017. Army Contracting Command, Redstone Arsenal (Missile), Alabama is the contracting activity.
T. L. Wallace Construction, Inc., Columbia, Mississippi, was awarded a $45,000,000 firm-fixed- price contract for emergency temporary roof repairs (residential structures) in support of the U.S. Army Corps of Engineers/Federal Emergency Management Agency disaster response. States affected are Alabama, Connecticut, Delaware, Florida, Georgia, Louisiana, Maine, Maryland, District of Columbia, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, and Virginia. Funding and work location will be determined with each order. The estimated completion date is May 31, 2019. Bids were solicited via the Internet, with 11 received. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-14-D-0010).

S&M and Associates Inc.*, Pascagoula, Mississippi, was awarded a $45,000,000 firm-fixed- price contract for emergency temporary roof repairs (residential structures) in support of the U.S. Army Corps of Engineers/Federal Emergency Management Agency disaster response. States affected are Alabama, Connecticut, Delaware, Florida, Georgia, Louisiana, Maine, Maryland, District Of Columbia, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, and Virginia. Funding and work location will be determined with each order. The estimated completion date is May 31, 2019. Bids were solicited via the Internet with 16 received. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-14-D-0011).

Artesian Contracting Company, Inc.*, Albany, Georgia, was awarded a $45,000,000 firm-fixed- price contract for emergency temporary roof repairs (residential structures) in support of the U.S. Army Corps of Engineers/Federal Emergency Management Agency disaster response. States affected are Alabama, Connecticut, Delaware, Florida, Georgia, Louisiana, Maine, Maryland, District of Columbia, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, and Virginia. Funding and work location will be determined with each order. The estimated completion date is May 31, 2019. Bids were solicited via the Internet with seven received. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-14-D-0013).

DEFENSE LOGISTICS AGENCY

Genentech USA Inc., South San Francisco, California, has been awarded a maximum $56,638,585 modification (P00003) exercising the first option period on a one-year base contract (SPM2D0-13-D-0005) with seven one-year option periods. This is a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for various pharmaceutical products in support of the Corporate Exigency Contract Program. Location of performance is California with a May 19, 2015 performance completion date. Using military services are the Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 war-stopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Rochester Optical,* Rochester, New York, has been awarded a maximum $19,080,028 modification (P00005) exercising the fourth option period on a one-year base contract (SPM2DE-10-D-7545) with seven four-year option periods. This is a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract that covers the selection of a manufacturer for the optical electronic catalog program and makes various optical frames available for purchase. Location of performance is New York with a June 2, 2015 performance completion date. Using military services are the Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

NAVY

Campbell-Ewald Co., Detroit, Michigan, is being awarded a $55,433,097 modification (P0001) to a previously awarded indefinite-delivery/indefinite-quantity contract (N00189-09-D-Z040) for advertising and marketing services in support of Navy recruiting for the Navy Recruiting Command, Millington, Tennessee. The modification includes an eight-month base period and four one-month option periods, which, if exercised, would bring the total of the modification to $85,000.000. Work under this contract will be performed in Detroit, Michigan (99 percent) and Millington, Tennessee (one percent). Work is expected to be completed by January 2015; if all options are exercised, performance will end May 2015. No funding will be obligated with the execution of the modification; therefore, none of the funding will expire before the end of the current fiscal year. Funding will be provided on individual task orders issued against the contract during the period of the extension. This requirement was not competitively procured pursuant to 10 U.S.C. 2304 (c)(1);only one responsible source, as implemented by FAR 6.302-1. NAVSUP Fleet Logistics Center Norfolk, Contracting Department, Philadelphia, Pennsylvania, is the contracting activity.

Lockheed Martin Mission Systems and Training, Liverpool, New York, is being awarded a $31,777,262 modification to previously awarded contract (N00024-13-C-6292) to exercise options for the production of nine TB-37/U Multi-Function Towed Array (MFTA) production units, tow cables, electro-optical slip rings, drogues, and shipping products and the performance of engineering services. The TB-37/U MFTA is the next generation passive and active sonar receiver. It affords several enhancements to the AN/SQR-19 Tactical Towed Array System allowing greater coverage, increased capability/reliability, and reduced obsolescence. The TB-37/U MFTA significantly contributes to the capability of surface ships to detect, localize and prosecute undersea threats and is a critical sensor to a combat systems suite. Work will be performed in Liverpool, New York (66 percent), Millersville, Maryland (33 percent), and Marion, Massachusetts (1 percent), and is expected to be completed by July 2016. Fiscal 2014 other procurement, Navy; fiscal 2014 research, development, test & evaluation; and fiscal 2014 shipbuilding and conversion, Navy funding in the amount of $30,059,740 will be obligated at time of award. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

Complete Parachute Solutions, Inc., DeLand, Florida, is being awarded a $21,717,415 firm-fixed-priced contract to provide training and technical support for the Multi-Mission Parachute Course (MMPC). The contractor will train non-military free- fall qualified Marines in military free- fall and parachuting techniques. The MMPC will provide students with the unique knowledge and technical skills needed to safely pack and jump the multi-mission parachute system. Work will be done in Coolidge, Arizona, and is expected to be completed May 2018. Fiscal 2014 operations and maintenance funds in the amount of $2,637,910 will be obligated at time of award and will expire at the end of the current fiscal year. This contract is sole-source procurement in accordance with 10 U.S.C. 2304(c)(1) as implemented by the Federal Acquisition Regulation 6.302-1(a)(2)(iii)(B); only one responsible source and no other supplies or services will satisfy agency requirements. The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-14-C-1000).
BAE Systems Norfolk Ship Repair, Norfolk, Virginia, is being awarded a $12,361,701 modification to previously awarded contract (N00024-10-C-4308) for USS Mason (DDG 87) fiscal 2014 selected restricted availability. A selected restricted availability includes the planning and execution of depot-level maintenance, alterations, and modifications that will update and improve the ship's military and technical capabilities. Work will be performed in Norfolk, Virginia, and is expected to be completed by October 2014. Fiscal 2014 operations & maintenance, Navy contract funds in the amount of $12,361,701 will be obligated at time of award and will expire at the end of the current fiscal year. Norfolk Ship Support Activity, Norfolk, Virginia, is the contracting activity.

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $9,830,814 modification to a previously awarded cost-plus-incentive-fee contract (N00019-02-C-3002) to execute Mode 5 Identification Friend or Foe for the F-35 air system. Work will be performed in El Segundo, California (35 percent); San Diego, California (35 percent); and Fort Worth, Texas (30 percent), and is expected to be completed in May 2016. No funds are being obligated at time of award. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

Entwistle Co., Hudson, Massachusetts, is being awarded a $7,807,698 firm-fixed-price contract for the manufacture of torpedo and submarine wire coils. Work will be performed in Hudson, Massachusetts, and work is expected to be completed by December 2016. Fiscal 2012, 2013, and 2014 weapons procurement Navy funds in the amount of $7,807,698 will be obligated at the time of award. Contract funds in the amount of $1,213,247 will expire at the end of the current fiscal year. The contract was competitively procured, via the Federal Business Opportunities website and the Navy Electronic Commerce Online website, with one offer received in response to the solicitation. NAVSUP Weapon Systems Support, Mechanicsburg, Pennsylvania, is the contracting activity (N00104-14-C-K056).

AIR FORCE

Jacobs Technology, Inc., Bedford, Massachusetts, has been awarded a $21,487,699 cost-plus-fixed-fee and cost-reimbursable contract to provide engineering and technology acquisition support services. These services consist of disciplined systems/specialty engineering and technical/information assurance services, support, and products using established government, contractor, and industry processes. Work will be performed at Hanscom Air Force Base, Massachusetts, Lackland AFB, Texas, Maxwell AFB, Alabama, and Wright-Patterson AFB, Ohio, and is expected to be completed by Dec. 31, 2014. This award is the result of a sole-source acquisition. Fiscal year 2013 and 2014 research and development, operations and maintenance, and DoD Working Capital funds in the amount of $1,131,751 will be obligated at time of award. Air Force Life Cycle Management Center/PZM, Hanscom AFB, Massachusetts, is the contracting activity (FA8721-14-C-0017).

*Small Business

U.S. CONGRATULATES PEOPLE OF CAMEROON ON THEIR NATIONAL DAY

FROM:  U.S. STATE DEPARTMENT 

Cameroon National Day

Press Statement

John Kerry

Secretary of State

Washington, DC

May 19, 2014

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On behalf of President Obama and the American people, I congratulate the people of Cameroon as you celebrate your national day on May 20.

The United States and Cameroon have enjoyed a productive relationship since we first established diplomatic relations in 1960. Our bond has strengthened over the years, in part through our shared commitment to support peace and stability in central Africa.
Our governments work together on many fronts. We are working to curtail illicit trafficking. We are working to protect the environment. We are working to improve maritime security. We are working to address the threat posed by terrorism. And we are working to support the stabilization of the Central African Republic through the provision of U.S. equipment and training to Cameroonian troops deployed there as peacekeepers.

Our trade and economic relationship continues to grow as U.S. investment in Cameroon steadily rises. As Cameroon prepares to celebrate 42 years of unity, we welcome the opportunity to strengthen our partnership. Together, we can help bring greater security and greater prosperity to the entire continent.

I offer you my best wishes on this important anniversary. The United States looks forward to continued cooperation to promote democracy, human rights, and shared prosperity in Cameroon and across the region.

5 CHINESE MILITARY HACKERS CHARGED FOR CYBER ESPIONAGE

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, May 19, 2014

U.S. Charges Five Chinese Military Hackers for Cyber Espionage Against U.S. Corporations and a Labor Organization for Commercial Advantage

First Time Criminal Charges Are Filed Against Known State Actors for Hacking
A grand jury in the Western District of Pennsylvania (WDPA) indicted five Chinese military hackers for computer hacking, economic espionage and other offenses directed at six American victims in the U.S. nuclear power, metals and solar products industries.

The indictment alleges that the defendants conspired to hack into American entities, to maintain unauthorized access to their computers and to steal information from those entities that would be useful to their competitors in China, including state-owned enterprises (SOEs).  In some cases, it alleges, the conspirators stole trade secrets that would have been particularly beneficial to Chinese companies at the time they were stolen.  In other cases, it alleges, the conspirators also stole sensitive, internal communications that would provide a competitor, or an adversary in litigation, with insight into the strategy and vulnerabilities of the American entity.

“This is a case alleging economic espionage by members of the Chinese military and represents the first ever charges against a state actor for this type of hacking,” U.S. Attorney General Eric Holder said.  “The range of trade secrets and other sensitive business information stolen in this case is significant and demands an aggressive response.  Success in the global market place should be based solely on a company’s ability to innovate and compete, not on a sponsor government’s ability to spy and steal business secrets.  This Administration will not tolerate actions by any nation that seeks to illegally sabotage American companies and undermine the integrity of fair competition in the operation of the free market.”

“For too long, the Chinese government has blatantly sought to use cyber espionage to obtain economic advantage for its state-owned industries,” said FBI Director James B. Comey.  “The indictment announced today is an important step.  But there are many more victims, and there is much more to be done.  With our unique criminal and national security authorities, we will continue to use all legal tools at our disposal to counter cyber espionage from all sources.”

“State actors engaged in cyber espionage for economic advantage are not immune from the law just because they hack under the shadow of their country’s flag,” said John Carlin, Assistant Attorney General for National Security.  “Cyber theft is real theft and we will hold state sponsored cyber thieves accountable as we would any other transnational criminal organization that steals our goods and breaks our laws.”

“This 21st century burglary has to stop,” said David Hickton, U.S. Attorney for the Western District of Pennsylvania.  “This prosecution vindicates hard working men and women in Western Pennsylvania and around the world who play by the rules and deserve a fair shot and a level playing field.”

Partial Summary of the Indictment
 Time period : 2006-2014.
Defendants :  Wang Dong, Sun Kailiang, Wen Xinyu, Huang Zhenyu, and Gu Chunhui, who were officers in Unit 61398 of the Third Department of the Chinese People’s Liberation Army (PLA).  The indictment alleges that Wang, Sun, and Wen, among others known and unknown to the grand jury, hacked or attempted to hack into U.S. entities named in the indictment, while Huang and Gu supported their conspiracy by, among other things, managing infrastructure (e.g., domain accounts) used for hacking.

Victims : Westinghouse Electric Co. (Westinghouse), U.S. subsidiaries of SolarWorld AG (SolarWorld), United States Steel Corp. (U.S. Steel), Allegheny Technologies Inc. (ATI), the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW) and Alcoa Inc.


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NATIONAL EMERGENCY WITH RESPECT TO STABILIZATION OF IRAQ CONTINUED

FROM:  THE WHITE HOUSE 

Letter to the Congress -- Continuation of the National Emergency with Respect to the Stabilization of Iraq

Dear Mr. Speaker: (Mr. President:)

Section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)) provides for the automatic termination of a national emergency unless, within 90 days prior to the anniversary date of its declaration, the President publishes in the Federal Register and transmits to the Congress a notice stating that the emergency is to continue in effect beyond the anniversary date. In accordance with this provision, I have sent to the Federal Register for publication the enclosed notice stating that the national emergency with respect to the stabilization of Iraq that was declared in Executive Order 13303 of May 22, 2003, is to continue in effect beyond May 22, 2014.

Obstacles to the orderly reconstruction of Iraq, the restoration and maintenance of peace and security in the country, and the development of political, administrative, and economic institutions in Iraq continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States. Accordingly, I have determined that it is necessary to continue the national emergency with respect to the stabilization of Iraq.

Sincerely,

BARACK OBAMA

SECRETARY KERRY'S REMARKS AT BOSTON COLLEGE'S COMMENCEMENT

FROM:  U.S. STATE DEPARTMENT 

Remarks at Boston College's 138th Commencement Ceremony

Remarks

John Kerry

Chestnut Hill, Massachusetts

May 19, 2014

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SECRETARY KERRY: Your Eminence Cardinal O’Malley, Father President Leahy, Father Monan, Father Devino, members of the faculty, my fellow recipients of honorary degrees, parents, siblings, and the distinguished class of 2014: Congratulations to everybody here today.

You know I thought I had a lot to worry about as I was listening to the introduction, between Afghanistan and Iran and so forth. But now I’m worried about where Challenger is. (Laughter.) I will leave here knowing that Boston College liberates eagles. (Laughter.)

It’s a great honor to be with you. You all might remember from English class that the great American novelist Thomas Wolfe wrote that you can’t go home again. Or maybe you know that quote because it’s the same thing that your parents are telling you now. (Laughter.)

Well, Wolfe had obviously never been to Boston College. It is nice to be off an airplane, but my friends, it is great to be home. I am really happy to be here. (Applause and cheers.)

I know that many of you stayed up all night so you could see your last sunrise at BC. (Cheers.) Some of you thought it would never come, graduation that is. I’ve got news for you: Some of your parents and professors didn’t think so either. (Laughter.)
Now, I notice a lot of you are wearing shades. It won’t work, folks. I’ll still hear you snoring. (Laughter.)

I was on the campus of one of your rivals yesterday in New Haven. And while I let them know that they could be proud of their title in men’s hockey last year, I also had to put it in perspective: Yale is still four titles behind BC. (Cheers and applause.)

There are many things actually that Yale and Boston College have in common, but one is probably the most powerful: mutual dislike of Harvard. (Laughter.) Although to be fair, hundreds of schools don’t like Harvard very much.

As Secretary of State, I track many factions and rivalries around the world. BC versus Notre Dame is at the top of my list. Of course, there’s also Alec Baldwin versus the NYPD. (Laughter.) Beyonce’s sister versus Jay Z. (Laughter and cheers.) And then there’s the rivalry: Red Sox and Yankees. (Cheering and applause.) We absolutely loved the last ten years: Yankees – one World Series, and Red Sox – three. That's my kind of rivalry, folks. (Cheers.)

Now BC reminds us today that though rivalries can be overcome, here today you have honored a Holy Cross alumnus, the great Bob Cousy, who, as you heard earlier in his degree presentation, won 117 games at Boston when he was coaching here. Eighty-five years old and the Celtics could have used him this year. (Laughter.)

So we have with us today a great legend, but most importantly an amazing person, an amazing player, and three other extraordinary builders of community, all of whom I am very honored to share degrees with today. Their lives and their selfless service are testimony to the fact that Boston College is an amazing place.

Over the past years, you have all been blessed to experience a special quality that has always defined BC: the welcoming spirit of this community. That has been a distinguishing characteristic of Boston College since its first days, when it opened its doors to Irish immigrants and Catholics who were barred from other schools.

When I came here more than 40 years ago, I want you to know that I felt that welcome firsthand. I had, as you heard, served in war, and when I came home, I worked to end it. It was a turbulent time – for our country, for me personally. It was a time of division and disillusionment.

But because of one thoughtful man of conscience, one member of the Boston College community, I found a home right here.

Many of you today might not even recognize the name of Father Robert Drinan. He was the dean of the Law School and he was running for Congress when I first visited him on the campus.
And what impressed me most about Father Drinan – whether on Chestnut Hill or Capitol Hill – was that he made no apologies for his deep and abiding Catholic commitment to the weak, the helpless, the downtrodden.

“If a person is really a Christian,” Father Drinan would say, “they will be in anguish over global hunger, injustice, over the denial of educational opportunity.”

In fact, it was Father Drinan who encouraged me to study law at BC, even when it wasn’t the obvious path. I had come to law school from a different background than my classmates. I’d served in the Navy, just turned 30, and had a young family.

And because of where I’d been and what I’d seen, I came to Boston College with a set of nagging questions. I had confronted my own mortality head-on during the war, where faith was as much a part of my daily life as the battle itself. In fact, I wore my rosary around my neck hoping for protection.

But on closer examination, I realized my wartime relationship with God was really a dependent one – a “God, get me through this and I’ll be good” kind of relationship. And as I became disillusioned with the war, my faith also was put to test.

There’s something theologians call “the problem of evil.” It’s the difficulty of explaining how terrible and senseless events are, in fact, part of God’s plan. That was a very real test for me. Some of my closest friends were killed. You see things in war that haunt you for the rest of your life.

So coming here to BC Law, reading St. Augustine on the problem of evil, or St. Thomas Aquinas on just war, the letters of St. Paul and thoughts about suffering – this was not an abstract or academic exercise. It was a chance to dig in and really try to understand where and how everything fit, including trying to understand where I fit in. I’m sure a lot of you ask those questions.

It was the compassion, listening, and understanding that I experienced at BC that made me feel welcome, taught me literally how to think critically, how to ask the right questions, and reinforced in me a personal sense of direction.

It would be years before Pope Francis would talk about the responsibility we all have to reach out to those who “stand at the crossroads.” I might not have connected the dots at the time, but that is exactly what BC was doing for me and I hope has done for you.

The people I met here were putting into action the words of the Jesuit motto that you’ve heard already today: “Men and women for others.”

Every institution has a mission or a motto – that’s the easy part. The hard part is ensuring that they’re not just words. We have to make sure that even as our world changes rapidly and in so many ways, we can still, each of us, give new meaning to our values.

Today, I promise you that is one of the greatest challenges of America’s foreign policy: ensuring that even when it’s not popular, even when it’s not easy, America still lives up to our ideals and our responsibilities to lead.

Never forget that what makes America different from other nations is not a common religion or a common bloodline or a common ideology or a common heritage. What makes us different is that we are united by an uncommon idea: that we’re all created equal and all endowed with unalienable rights. America is – and I say this without chauvinism or any arrogance whatsoever, but America is not just a country like other countries. America is an idea, and we – all of us, you – get to fill it out over time. (Applause.) So our citizenship is not just a privilege – it is a profound responsibility.

And in a shrinking world, we can’t measure our success just by what we achieve as Americans for Americans, but also by the security and shared prosperity that we build with our partners all over world.

In times of crisis, violence, strife, epidemic, and instability – believe me – the world still looks to the United States of America as a partner of first resort. People aren’t worried about our presence; they’re worried about our leaving. One of the great privileges of being Secretary of State is getting to see that firsthand.

In December, I walked through the devastation left behind by the typhoon in the Philippines. The U.S. military and USAID had arrived on the scene before countries that are much closer than we are.

This month in the Democratic Republic of Congo, I saw how the United States is supporting surgeons and Catholic nuns helping victims of violence and abuse.

And just a few weeks ago in Ethiopia, I saw what our sustained commitment to combatting AIDS is achieving. Local doctors and nurses are making possible the dream of an AIDS-free generation. We’re on the cusp of achieving that.

And what we have done to turn back the armies of defeatism and indifference in the fight against AIDS, tuberculosis, malaria, and even polio – this work should give every one of you confidence to confront another cross-border, cross-generational challenge, the challenge of a changing climate. If we’re going to live up to our values, this is a test that we have to meet.
Now look, I know this is hard, because I spent almost 30 years in the United States Senate pushing this issue, trying to get colleagues to move. We got up to maybe 55 votes, couldn’t quite get to 60. And I know it’s hard to feel the urgency. As we sit here on an absolutely beautiful morning in Boston, you might not see climate change as an immediate threat to your job, your community, or your families. But let me tell you, it is.

Two major recent reports, one from the UN and one from retired U.S. military leaders, warn us not just of the crippling consequences to come, but that some of them are already here. Ninety-seven percent of the world’s scientists tell us this is urgent. Why? Because if crops can’t grow, there’ll be food insecurity. If there’s less water because of longer droughts, if there are stronger and more powerful storms, things will change in a hurry and they will change for the worse.
Climate change is directly related to the potential of greater conflict and greater stability – instability. I’m telling you that there are people in parts of the world – in Africa today, they fight each other over water. They kill each over it. And if glaciers are melting and there’s less water available and more people, that is a challenge we have to face. And guess what? It is the poorest and the weakest who face the greatest risk. As Father Drinan would say, we should be in anguish over this. (Applause.)

What’s frustrating is that this challenge is not without a solution. In fact, not one problem I can think of today that we face in this country is without a solution. It’s a question of capacity, willpower. The solution is actually staring us in the face. It is energy policy. Make the right energy policy choices and America can lead a $6 trillion market with 4 billion users today and growing to 9 billion users in the next 50 years.

If we make the necessary efforts to address this challenge – and supposing I’m wrong or scientists are wrong, 97 percent of them all wrong – supposing they are, what’s the worst that can happen? We put millions of people to work transitioning our energy, creating new and renewable and alternative; we make life healthier because we have less particulates in the air and cleaner air and more health; we give ourselves greater security through greater energy independence – that’s the downside. This is not a matter of politics or partisanship; it’s a matter of science and stewardship. And it’s not a matter of capacity; it’s a matter of willpower. (Applause.)

But if we do nothing, and it turns out that the critics and the naysayers and the members of the Flat Earth Society, if it turns out that they’re wrong, then we are risking nothing less than the future of the entire planet. This is not a hard choice, frankly. But still, let me tell you we need the help of every single one of you to make it.

In the end, all of these global challenges – how to defend against extremism, how to eradicate disease, how to provide young people with opportunity, how to protect our planet – all of these questions of whether men and women can live in dignity. What do I mean by dignity? I mean exactly the same thing that Father David Hollenbach taught on this campus and brought to the forefront of Catholic social teaching: That when families have access to clean water and clean power, they can live in dignity. When people have the freedom to choose their government on election day and to engage their fellow citizens every day, they can live in dignity. When all citizens can make their full contribution no matter their ethnicity; no matter who they love or what name they give to God, they can live in dignity.

And this is where you come in: the struggle for dignity. Whether across town or across the world, it makes demands on your own lives. The diploma that you will receive today isn’t just a certificate of accomplishment. It’s a charge to keep. It’s a powerful challenge to every single one of you, because you have already been blessed with a world-class education, and with it comes responsibility. Part of that responsibility is taking to heart the values that you’ve learned here and sharing them with the world beyond BC. That spirit of service is part of the fabric of this school, just as it is part of the fabric of our nation.

I often think of the words of our first Secretary of State, Thomas Jefferson, someone who also founded a prestigious university like yours. Jefferson spoke about the beauty of a simple image: using one candle to light another. And he said that when that happens, both candles gain light and neither candle loses any. He was talking about the contagious quality of shared knowledge. As heirs to the Jesuit tradition, this is an idea that you know well. Two centuries before Jefferson, St. Ignatius Loyola always closed his letters with a simple charge, and it’s one I pass on to you today. St. Ignatius wrote simply, “Set the world aflame.”

So graduates of 2014, pass on your light to others. Set the world aflame with your service. Welcome those who are lost; seek out those at the crossroads. That is how you can fulfill your responsibility as a graduate of this great institution. That is how you can answer the call to be a servant, leader, and that is how you can keep faith with and renew the idea of America, and that is how we all live up to our duty as citizens.

Congratulations to all of you. Good luck and God bless.

ARMED FORCES DAY AT ARLINGTON

FROM:  U.S. DEFENSE DEPARTMENT 

BATTAGLIA, SENIOR LEADERS PARTICIPATE IN ARMED FORCES DAY AT ARLINGTON NATIONAL CEMETERY

Members of a joint service honor guard stand at attention during a wreath-laying ceremony to mark Armed Forces Day at the Tomb of the Unknown Solider at Arlington National Cemetery in Arlington, Va., May 17, 2014. DOD photo by Anthony Steele.

The U.S. Army Band performs at the Memorial Amphitheater while service members and civilians listen to Marine Corps Sgt. Maj. Bryan B. Battaglia, senior enlisted advisor to the chairman of the Joint Chiefs of Staff, after a wreath-laying ceremony at the Tomb of the Unknown Solider to mark Armed Forces Day at Arlington National Cemetery in Arlington, Va., May 17, 2014. DOD photo by Anthony Steele.

U.S.-EU HAVE SUCCESS FIGHTING ANTIMICROBIAL RESISTANCE

FROM:  U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 

US and EU progress in fight against antimicrobial resistance

International collaboration critical for combating global health crisis

The U.S. Department of Health and Human Services (HHS) and the European Commission released today the first progress report of the Transatlantic Taskforce on Antimicrobial Resistance (TATFAR).  The report renews the commitment of U.S. and European Union (EU) health authorities to pursue specific goals in their joint battle against antimicrobial resistance, a complex, dynamic and multi-faceted concern not bound by borders.  The report also summarizes the advancements made during the first TATFAR implementation period of 2011-2013.

TATFAR was created following the 2009 U.S.-EU presidential summit with the goal of improving cooperation between the U.S. and the EU in three key areas: (1) appropriate therapeutic use of antimicrobial drugs in medical and veterinary communities, (2) prevention of health care- and community-associated drug-resistant infections, and (3) strategies for improving the pipeline of new antimicrobial drugs.

“The partnership offers a unique perspective to tackle antimicrobial resistance worldwide,” said Jimmy Kolker, HHS Assistant Secretary for Global Affairs.  “We hope that the positive outcomes of this partnership will serve as a global model as we continue to work on this critical issue.”

TATFAR identified and adopted 17 recommendations for collaborations between the U.S. and the EU. Implementation of the recommendations has been carried out through increased communication, regular meetings, joint workshops, and the exchange of information, approaches, and best practices.  Moving forward, one new and 15 existing recommendations will serve as the basis for partner agencies in the U.S. and the EU to focus on areas where common actions can deliver the best results in prevention and control of antimicrobial resistance. In 2013 it was decided to renew TATFAR for another two-year term.

“Antimicrobial resistance is a priority of the European Commission, and international cooperation is key in addressing this serious cross border and global health threat.  I am positive that our renewed commitment to TATFAR can make a tangible contribution in the area of global health security,” said John F. Ryan, Acting Director for Public Health in the European Commission.

Notable outcomes of TATFAR activities during 2011-2013 include:

Adoption of procedures for timely international communication of critical events that might indicate new resistance trends with global public health implications;
Publication of a report on the 2011 workshop, “Challenges and solutions in the development of new diagnostic tests to combat antimicrobial resistance” to the TATFAR website; and Joint presentations to the scientific community to increase awareness about the available funding opportunities on both sides of the Atlantic.
Studies estimate that drug-resistant infections result in at least 25,000 deaths in 29 countries in Europe and 23,000 deaths in the U.S. every year.  In addition to the toll on human life, antimicrobial-resistant infections add considerable and avoidable costs to health care systems.  Antimicrobial resistance costs the EU and the U.S. billions every year in avoidable health care costs and productivity losses.

In the U.S. and in the EU, significant progress in reducing specific types of infections has been made.  However, the global problem of antimicrobial resistance continues to escalate. Therefore, the original mandate of the taskforce that ran through 2013 has been extended for at least two additional years.

Forthcoming publications from the taskforce during 2014 that will provide a foundation for specific joint collaborative actions include:

A report summarizing the strategies hospitals in the U.S. and EU should include as part of their programs to improve antimicrobial prescribing practices;
A joint publication summarizing the existing methods for measuring antimicrobial use in hospital settings;
A joint publication describing the need for new vaccines for healthcare-associated infections (HAIs); and
A joint publication comparing the results of the U.S. and EU point prevalence surveys, which are used to estimate the burden of HAIs in each population.

DEPARTMENT OF HOMELAND SECURITY DEVELOPS VIRTUAL SHOOTER

FROM:  DEPARTMENT OF HOMELAND SECURITY 

The Virtual Shooter consists of three major components designed to mimic a human firer

Virtual Shooter Technology Tests Ammo and Saves Joints

Firing and testing thousands of rounds of ammunition weekly can challenge the human body—even ones in top physical condition—causing debilitating stress injuries and chronic nerve and joint pain. The Department of Homeland Security (DHS) Science and Technology Directorate (S&T), with the help of agents from the U.S. Immigration and Customs Enforcement (ICE) Office of Firearms and Tactical Programs (OFTP) Armory Operations Branch (AOB), has made an important stride forward in reducing or eliminating these injuries by developing of the “Virtual Shooter.”

“The Armory Operations Branch evaluates most of the department’s ammunition and firearms. This equates to testing more than 200,000 rounds of ammunition and a variety of handguns annually before they are approved for use in the field. This repetitive firing takes a toll on the shooters and results in stressed joints, debilitating pain, and other physical injuries. The Virtual Shooter will go a long way in in reducing, if not eliminating, those injuries,” explained John Price, the S&T First Responder Group (FRG) program manager.

The OFTP assists ICE by providing personnel with firearms, intermediate force weapons, protective equipment, training, guidance, as well as tactical and logistical support while also providing armory services to the U.S. Customs and Border Protection and the Federal Protective Service under shared service agreements. The unit increases safety and improves the tactical proficiency of the armed workforce, while maintaining accountability for property.

“The OFTP AOB mission is to improve the safety of the armed DHS agent,” explained Lowell Johnson, ICE OFTP AOB supervisory engineer. “The Virtual Shooter will benefit us by reducing debilitating injuries to our employees, as well as being an instrument to give us consistent data on firearm and ammunition performance.”

The Virtual Shooter project began June 2012 when OFTP asked FRG for assistance. In March 2014, Price demonstrated the Virtual Shooter at the ICE OFTP’s armory in Altoona, Pa., allowing AOB agents to test multiple weapons and ammunition.

The Virtual Shooter’s mechanical arm and hand replicates major human bone and muscular structure during the firing process.

The prototype consists of three major components designed to mimic a human firer. A mechanical arm and hand mirrors major human bone and muscular structure. Air cylinders simulate the muscles that aim and resist recoil forces in the wrist, forearm, upper arm, and shoulder. Finally, a pressurized backboard mount simulates the shooter’s torso.

FRG developed the Virtual Shooter as part of the Small Business Innovation Research Program initiative and began working to develop a device with designs that simulated the movements and reactions of human firers, while responding to feedback provided by ICE OFTP AOB throughout the development process.

“The AOB told FRG they wanted something they could put a handgun in, and it would fire just like a human would fire, with all the movement, motions, and stresses,” Price said. The Virtual Shooter absorbs the impacts and prevents injuries, and the AOB agents can observe how the weapons and ammunition perform.

At the demonstration in March, Radiance Technologies, FRG’s commercial partner that developed the prototypes, demonstrated single- and a double-armed models that fired multiple handgun and ammunition types. At the conclusion of the demonstration, AOB agents kept the double-armed model because it more closely approximates their firing methods. They will use the prototype until the final product is ready.

“We were very satisfied with the initial prototype. It met all of the original performance specifications in the original SBIR solicitation,” said Johnson. He said he plans to implement the Virtual Shooter into OFTP’s testing process.

Over the next year, Radiance Technologies will develop and deliver the second and final prototype to the ICE OFTP AOB in early 2015. The model will then be available commercially for government and industry use.