U.S. DEFENSE DEPARTMENT CONTRACTS FOR MAY 21, 2014

FROM:  U.S. DEFENSE DEPARTMENT NAVY 

CONTRACTS

ARMY

The Boeing Company, Ridley Park, Pennsylvania, was awarded a $25,891,028 modification (P00009) to a firm-fixed-price, multi-year contract (W58RGZ-13-C-0002) to exercise the option purchase a CH-47 Chinook helicopter. Work will be performed in Ridley Park, with an estimated completion date of Dec. 31, 2020. Fiscal 2014 procurement funds (Army) in the amount of $25,891,028 are being obligated at the time of the award. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.

Okland Construction, Salt Lake City, Utah, was awarded a $15,513,636 firm-fixed-price, multi-year contract to design and build a facility to accept the second Joint Strike Fighter. Work will be performed at Luke Air Force Base, Arizona, with an estimated completion date of Jan. 10, 2016. The bid was solicited via the Internet, with 12 bids received. Fiscal 2014 military construction funds in the amount of $15,513,636 are being obligated at the time of the award. U.S. Army Corps of Engineers, Los Angeles, California, is the contracting activity (W912PL-14-C-0007).

TYR Tactical*, Peoria, Arizona, was awarded a $10,689,084 firm-fixed-price, foreign military sales contract for the procurement of nonstandard fragmentation shrapnel vests and projectile protection. This contract involves foreign military sales to Denmark. Work will be performed in Peoria, with an estimated completion date of Jan. 15, 2015. One bid was solicited, with one bid received. Fiscal 2014 procurement (Army) funds in the amount of $10,689,084 are being obligated at the time of the award. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W91CRB-14-C-0022).
BAE Systems, Nashua, New Hampshire, was awarded a $7,145,241 modification (P00015) to a cost-plus-fixed-fee contract (W58RGZ-13-C-0049) for logistics in support of the Common Missile Warning System. Work will be performed in Nashua, with an estimated completion date of May 15, 2015. Fiscal 2014 operations and maintenance funds (Army) in the amount of $7,145,241 are being obligated at the time of the award. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.

NAVY

M7 Aerospace LLC, San Antonio, Texas, is being awarded a $16,139,462 modification to a previously awarded indefinite-delivery requirements contract (N00019-11-D-0002) to exercise an option for logistics support for 12 Navy/Marine Corps UC-35 aircraft and seven Navy C-26 aircraft located at 10 global locations. Services to be provided include organizational and depot level maintenance, parts, support equipment maintenance, and engineering support. Work will be performed at the Pacific Missile Range Facility, Barking Sands, Hawaii (15 percent); Marine Corp Air Station (MCAS), Futenma, Japan (15 percent); Andrews Air Force Base, Maryland (10 percent); Fleet Marine Reserve Detachment, Belle Chase, Louisiana (10 percent); Naval Air Station Sigonella, Italy (10 percent); Naval Support Activity, Naples, Italy (10 percent); MCAS Miramar, California (10 percent); San Antonio, Texas (5 percent); MCAS Cherry Point, North Carolina (5 percent); Al Udeid, Qatar (5 percent); and Moron, Spain (5 percent); and is expected to be completed by May 2015. No funds are being obligated at time of award. Funds will be obligated against individual delivery orders as they are issued. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

EJB Facilities Services, Arlington, Virginia, is being awarded a $12,132,429 modification under a previously awarded firm-fixed-price, indefinite-delivery/indefinite quantity contract for the award of option 8b for base operations support at various installations in the Naval Facilities Engineering Command (NAVFAC) Northwest area of responsibility (AOR). The work to be performed provides for, but is not limited to, all management and administration, visual services, security, housing, facilities support (excluding grounds and janitorial services), pavement clearance, utilities, base support vehicles and equipment, and environmental services to provide base operations support services. The total contract amount after exercise of this option will be $571,028,153. Work will be performed at various installations in the NAVFAC Northwest AOR including but not limited to: Washington (95 percent), Alaska (1 percent), Idaho (1 percent), Montana (1 percent), Oregon (1 percent), and Wyoming (1 percent). Work is expected to be completed July 2014. Fiscal 2014 Navy operation and maintenance; fiscal 2014 Navy working capital funds; fiscal 2014 Defense health program funds; and fiscal 2014 non-appropriated funds in the amount of $7,671,334 are being obligated on this award and will not expire at the end of the current fiscal year. The Naval Facilities Engineering Command, Northwest, Silverdale, Washington, is the contracting activity (N44255-05-D-5103).
CORRECTION: The contract announcement on May 16, 2014, for Bell Helicopter Textron, Inc., Hurst, Texas (N00019-13-C-0023), for $337,772,560 was announced with an incorrect award amount and obligated amount. The correct amount for both is $377,772,560.

*Small Business

WHITE HOUSE FACT SHEET ON BILATERAL REASSURANCE MEASURES IN ROMANIA

FROM:  THE WHITE HOUSE 

FACT SHEET: Overview of NATO and Bilateral Reassurance Measures in Romania

As a result of Russia’s occupation and attempted annexation of Ukrainian territory, the United States has taken several immediate steps to demonstrate our continued commitment to Article 5 collective defense and reassure our NATO allies, including Romania, who are closest to the crisis.  The United States and NATO are committed to maintaining an augmented, persistent forward presence in Central and Eastern Europe through at least the end of 2014.

New U.S. Measures:

• Maritime Deployments to the Black Sea: In early April, the United States deployed the USS Donald Cook to the Black Sea where the Cook conducted operations to improve interoperability, increase readiness, and develop professional relationships with Allies.  The Cook conducted presence operations and a port visit in Constanta, Romania, as well as a passing exercise (PASSEX) with the Romanian Navy.
• In late April, the USS Taylor, a frigate and our contribution to the Standing NATO Maritime Group, was deployed to the Black Sea where Taylor conducted bilateral operations with Romania and Georgia, including port visits to both countries.
• The USS Vella Gulf will soon enter the Black Sea to conduct port visits and combined maritime training with Allied naval forces.
• Air-to-Air Refueling Missions: Since mid-March, the United States has been flying refueling missions in support of NATO Airborne Early Warning and Control System (AWACS) flights over Poland and Romania.
• NATO Response Force (NRF): The Department of Defense is exploring options for increasing the readiness of its U.S.-based, NRF-committed Brigade Combat Team.

Enhancements to Previously Planned U.S. Operations:

• USS Truxtun: The USS Truxtun entered the Black Sea through the Turkish Straits on March 7 to conduct a port call in Constanta, Romania and a PASSEX with Romanian and Bulgarian naval forces.  Truxtun extended its stay in the Black Sea until March 21 to conduct a port visit in Varna, Bulgaria, hold an onboard maritime planning conference with Bulgarian and Romanian officers, and conduct a second PASSEX.

U.S. Ongoing/Steady State Measures:

• There are approximately 1,000 U.S. troops in Romania, including Marines, sailors, airmen and soldiers.
  • Black Sea Rotational Forces (BSRF): This force, based out of Mihail Kogalniceanu (MK) Air Base, Romania, includes 250 Marines and sailors tasked with maintaining positive relations with partner nations; enhancing regional stability; and increasing interoperability while providing the capability for rapid crisis response in the Black Sea, Balkan, and Caucasus regions.  In May, BSRF personnel are participating in exercise PLATINUM LYNX; infantry field training with the Romanian military to enhance familiarity and interoperability between U.S. and Romanian forces.
  • Nearly 500 of these U.S. troops are permanently stationed at MK Air Base conducting transit center operations.  
  • 175 U.S. Marines will be temporarily based out of MK Air Base as part of the Special Purpose Marine Air-Ground Task Force (SPMAGTF).  The SPMAGTF is postured to respond to a broad range of military operations in the EUCOM/AFRICOM region, including:  fixed-site security, non-combatant evacuation operations, humanitarian assistance and disaster relief operations, tactical recovery of aircraft and personnel, theater security cooperation, and other missions as directed. 
  • Currently, more than 80 U.S. Airmen are currently participating in Exercise Carpathian Spring in Romania.  The exercise runs from April 12th to 21st and is designed for aircrew to receive upgrade training and build partnership capacity with the Romanians.  
• European Phased Adaptive Approach (EPAA):  The United States’ contribution to European missile defense includes plans for four Aegis destroyers to be home ported in Rota, Spain (USS Cook recently arrived) and two planned Aegis Ashore sites; one in Romania (2015) and one Poland (2018).  The Romania Aegis Ashore site is critical to NATO missile defense and is the fundamental infrastructure for Phase 2 of the EPAA.  It will consist of a radar with 360-degree coverage, vertical launch tubes with SM-3 Block IB missile defense interceptors, and the associated command and control systems to integrate the radar and the interceptors.  The interceptors could be launched from the site in Romania to defend NATO in the case of a missile attack from the Middle East.   The groundbreaking at the Romania site was completed in 2013, and the site is firmly on budget and on schedule to be operational by the end of 2015. 
• U.S. Force Presence in Europe:  There are approximately 67,000 service members in Europe.  Approximately 57,000 active duty service members are assigned to U.S. European Command (USEUCOM) and approximately 10,000 support other organizations, such as U.S. Africa Command. 
• NATO Response Force (NRF) Commitment:  The United States previously pledged several thousand service members to the NATO Response Force including a brigade combat team from the Texas-based 1st Cavalry Division, a hospital ship, air-to-air refueling tankers, and escort ships.
• Army Rotational Forces:  The United States will send a battalion-sized unit from the United States to Europe twice a year for up to two months per rotation.  In May, the unit will participate in a USEUCOM-hosted multinational exercise, COMBINED RESOLVE II.  The exercise, which includes Romanian participation, will take place in Germany.

PRESIDENT OBAMA'S MESSAGE TO SENATE ON NEW TAX CONVENTION WITH POLAND

FROM:  THE WHITE HOUSE 

Message to the Senate -- Transmitting a Tax Convention with Poland

TO THE SENATE OF THE UNITED STATES:

I transmit herewith, for the advice and consent of the Senate to its ratification, the Convention between the United States of America and the Republic of Poland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, signed on February 13, 2013, at Warsaw (the "proposed Convention"). I also transmit for the information of the Senate the report of the Department of State, which includes an overview of the proposed Convention.

The proposed Convention replaces the existing Convention, signed in 1974, and was negotiated to bring United States-Poland tax treaty relations into closer conformity with current U.S. tax treaty policies. For example, the proposed Convention contains provisions designed to address "treaty shopping," which is the inappropriate use of a tax treaty by residents of a third country, that the existing Convention does not. Concluding the proposed Convention with Poland has been a top priority for the tax treaty program at the Department of the Treasury.

I recommend that the Senate give early and favorable consideration to the proposed Convention and give its advice and consent to its ratification.

BARACK OBAMA

STUDENT ROCKES TAKE TO THE SKY

FROM:  NASA 

'Smoke and Fire' Rise Over Utah Salt Flats as Student Rockets Soar in NASA Challenge May 17; NASA, ATK Present Preliminary Awards

A student-built rocket lifts off the brilliant white hardpan of the Bonneville Salt Flats in Tooele County, Utah, May 17, during the "launchfest" that concluded the 2013-14 NASA Student Launch rocketry competition. Sixteen teams, comprised of some 250 student participants from 15 states, launched rockets of their own design, complete with three working science and engineering payloads apiece, cheered on by approximately 500 spectators. The annual NASA education event, designed to inspire young people to pursue studies and careers in the "STEM" fields -- science, technology, engineering and mathematics -- is organized by NASA's Marshall Space Flight Center in Huntsville, Ala., and sponsored by ATK Aerospace Group of Magna, Utah. The grand-prize-winning school team will be named by NASA and ATK in late May.  Image credit: MSFC/Dusty Hood.

MAN PLEADS GUILTY IN CASE INVOLVING MAILING RICIN TO PRESIDENT OBAMA, OTHERS

Monday, May 19, 2014

Mississippi Man Pleads Guilty in Ricin Letter Investigation

James Everett Dutschke, 41, of Tupelo, Mississippi., was sentenced today by United States District Judge Sharion Aycock, in Aberdeen, Mississippi., to a 300 month prison sentence for developing and possessing the biological agent ricin and subsequently mailing ricin-laced, threatening letters including one that threatened bodily harm to the President of the United States.   Dutschke was also sentenced to serve a term of 5 years supervised release.

The sentence was announced by John Carlin, Assistant Attorney General for the Justice Department’s National Security Division, Felicia Adams, U.S. Attorney for the Northern District of Mississippi, Daniel McMullen, Special Agent in Charge of the FBI’s Jackson Field Office, and Craig Caldwell, Special Agent in Charge of the Secret Service’s Birmingham, AL, District Field Office.

Following an investigation, Dutschke was arrested on April 27, 2013, and indicted by a federal grand jury on June 3, 2013.  A superseding indictment was filed on Nov. 20, 2013. Dutschke pled guilty on Jan. 17, 2014 to one count of developing and possessing ricin, and three subsequent counts of mailing threatening letters laced with the substance to the President of the United States, U.S. Senator Roger Wicker, and Lee County, Mississippi, Justice Court Judge Sadie Holland.   According to the plea agreement between Dutschke and the U.S. Attorney’s Office that was filed in U.S. District Court in Oxford, Dutschke had agreed to serve a 300 month prison sentence and had waived his right to appeal.

The investigation was conducted by the FBI’s Jackson and Memphis Joint Terrorism Task Forces, the U.S. Secret Service, the U. S. Postal Inspection Service, the U. S. Capitol Police and was assisted by the following state and local agencies: Mississippi National Guard 47th Civil Support, Mississippi Office of Homeland Security, Lee County Sheriff’s Office, Prentiss County Sheriff’s Office, Corinth Police Department, Tupelo Police Department and Booneville Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Chad Lamar, Clay Joyner and Clyde McGee of the Northern District of Mississippi, and Andrew Sigler of the Department of Justice, National Security Division.

SIX FLORIDIANS PLEAD GUILTY TO MORTGAGE FRAUD INVOLVING CONDOMINIUM DEVELOPMENTS

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, May 15, 2014

Six Miami-Area Residents Plead Guilty to Mortgage Fraud Scheme Involving Four Condominium Developments

Six Miami-area residents, including three former loan officers, pleaded guilty in the Southern District of Florida this week to participating in a fraudulent scheme designed to enrich real estate developers by selling condominium units to straw buyers.

Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Special Agent in Charge Phyllis Robinson of the Department of Housing and Urban Development’s Office of the Inspector General (HUD-OIG) in Miami and Acting Inspector General Michael P. Stephens of the Federal Housing Finance Agency (FHFA) made the announcement.

Today, Leidy Masvidal, 42, of Miami, pleaded guilty before U.S. District Court Judge Marcia G. Cooke to conspiring to commit bank fraud.   Sentencing is scheduled for Sept. 24, 2014.   Alfredo Jesus Chacon, 48, of Orange Park, Florida, and Francisco Martos, 63, and Dorian Wong Magarino, 49, both of Miami, also pleaded guilty today to conspiring to commit wire fraud and mail fraud before U.S. District Court Judge Ursula Ungaro.   Sentencing is scheduled for Aug. 1, 2014.

On May 14, 2014, Tania Masvidal, 49, and Douglas Ponce, 40, both of Miami, each pleaded guilty before Judge Cooke to conspiring to commit bank fraud.  Sentencing is scheduled for July 30, 2014.

According to the defendants’ plea agreements and other court documents, the defendants participated in a scheme to pay straw buyers to submit false loan applications to lending institutions to purchase condominiums owned by co-conspirators.   Leidy Masvidal and Tania Masvidal used a mortgage brokerage they owned, EZY Mortgage Inc., to arrange financing for the purchases.   Because the straw buyers were not credit-worthy, the Masvidals secured loans in their names by submitting to lending institutions loan applications and other fraudulent documents containing false statements about the buyers’ income, employment and assets, and falsely stating that the buyers intended to reside in the properties.   Additionally, the Masvidals enabled their co-conspirators to secretly fund the buyers’ obligations to pay money at closing (known as “cash to close” obligations) by establishing shell corporations, which the co-conspirators used to funnel cash from conspirators to the escrow account used at closing, as well as paying the straw buyers.   The co-conspirators compensated the Masvidals for their role in the scheme by sending kickback payments taken from the loan proceeds to the Masvidals’ shell corporations for every straw buyer identified.

According to admissions in court records, Martos was a former loan officer at a mortgage company known as State Lending who helped secure financing for straw buyers in exchange for kickbacks by procuring false employment documents and by including false information in buyers’ loan applications. Chacon and Ponce recruited straw buyers to purchase properties owned by co-conspirators in exchange for kickbacks paid from the sales proceeds.   Chacon also allowed a company that he controlled to be used as a false employer for the straw buyers.   Magarino accepted payments to act as one of Chacon’s straw buyers and recruited other straw buyers into the scheme.   For the properties in which Margarino acted as the straw buyer, he represented to the lender that he personally met his cash-to-close obligations when in fact he knowingly paid these costs with funds supplied by conspirators.

Many of the straw buyers defaulted on their loans after the conspirators stopped making their mortgage payments on their behalf, causing millions of dollars in losses to lenders.

On March 31, 2014, Luis Mendez, Stavroula Mendez, Luis Michael Mendez, Lazaro Mendez, Marie Mendez, Wilkie Perez and Enrique Angulo were indicted in the Southern District of Florida for their alleged participation in this scheme.   They have pleaded not guilty and trial is currently set for Sept. 8, 2014.   The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The case is being investigated by HUD-OIG and FHFA-OIG.  The case is being prosecuted by Trial Attorneys Gary A. Winters and Brian Young of the Criminal Division’s Fraud Section.

DEBT COLLECTOR PERMANENTLY BANNED FROM BUSINESS FOR ALLEGED ACTS OF DECEPTION, FALSE THREATS, INSULTS AND UNAUTHORIZED FEES

FROM:  FEDERAL TRADE COMMISSION FTC 

FTC Puts Texas-based Operation Permanently Out of the Debt Collection Business After It Allegedly Used Deception, Insults, and False Threats against Consumers

Operation also Charged Unauthorized Fees; Owner Will Surrender His Assets

The owner of a Houston-based debt collection operation that the FTC charged used insults, lies, and false threats of imprisonment to collect on payday loans will surrender his assets, estimated to be worth $550,000, to pay restitution to consumers who were charged unauthorized fees. All the defendants will be permanently banned from debt collection under a settlement with the Federal Trade Commission.

In 2013, at the request of the FTC, a U.S. district court shut down Goldman Schwartz, Inc., froze its assets, and appointed a receiver to take control of the business while the case was in litigation. The debt collection operation did business nationwide, collecting primarily on payday loans. In some cases it owned the debt, and in others, it acted as a third-party collector. The operation was charged with multiple violations of both the FTC Act and the Fair Debt Collection Practices Act.

“Debt collectors who harass consumers, make false threats, and charge bogus fees are violating federal law and will be held accountable,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection.

The defendants  were charged with making false threats that consumers would be arrested and jailed, and that their children would be taken into custody; falsely claiming to be attorneys or to work hand-in-hand with local sheriff’s offices; disclosing debts to consumers’ employers and military superiors; and collecting bogus late fees and attorneys’ fees, according to the complaint.

The defendants also harassed and abused consumers by using obscene language and by calling repeatedly and at odd hours early in the morning or late at night, and failed to inform consumers of their rights to dispute the debts, have the debts verified, and obtain the names of the original creditors, the complaint alleged.

The settlement resolves FTC allegations against company owner Gerald Wright, company managers Starlette Foster and Jennifer Zamora, and several corporate defendants. The settlement requires Wright to surrender his assets, estimated at $550,000, which include funds from personal and business accounts and proceeds from the sale of realty. The remainder of a $1.4 million judgment against Wright is suspended based on inability to pay. The judgment against Foster and Zamora also is suspended due to their inability to pay. If it is later determined that the financial information the defendants provided the FTC was false, the full amount of the judgment will become due.

The monetary judgment will be used to pay restitution to consumers who were charged unauthorized late fees and attorneys’ fees, often in the hundreds of dollars. The defendants privately referred to these bogus fees as “Juice,” and used them to inflate the cost to consumers who wished to settle their debts, the complaint alleged.

Also under the order, the defendants are prohibited from misrepresenting the characteristics of any financial product or service.

As part of its continuing crackdown on scams that target consumers in financial distress, the complaint named as defendants Goldman, Schwartz Inc, doing business as Goldman, Schwartz, Lieberman & Stein; Debtcom, Inc., doing business as Cole, Tanner, & Wright; Harris County Check Recovery Inc.; and The G. Wright Group Inc., doing business as The Wright Group. Under the terms of the order, these companies will be dissolved.

For consumer information about dealing with debt collectors, see Debt Collection.

The Commission vote approving the proposed consent decree was 5-0. It is subject to court approval. The FTC filed the proposed consent decree in the U.S. District Court for the Southern District of Texas, Houston Division on May 19, 2014.

NOTE: Consent decrees have the force of law when approved and signed by the District Court judge.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR MAY 20, 2014

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

ARMY

Sikorsky Aircraft Corp., Stratford, Connecticut, was awarded a $143,381,783 modification (P00146) to contract W58RGZ-12-C-0008 to procure 13 Army UH-60M Black Hawk helicopters. Fiscal 2014 other procurement funds in the amount of $143,381,783 were obligated at the time of the award. Work will be performed in Stratford, Connecticut, with an estimated completion date is Sept. 30, 2015. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.

Kongsberg Defence & Aerospace, Kongsberg, Norway was awarded a $37,000,000 modification (P00086) to contract W15QKN-12-C-0103 to exercise the option regarding depot support for the common remotely operated weapons station. Fiscal 2014 operations and maintenance (Army) funds in the amount of $37,000,000 were obligated at the time of the award. Previous modifications total $252,344,757. Work will be performed in Johnstown, Pennsylvania, Estimated completion date is May 14, 2015. Army Contracting Command, Picatinny Arsenal, New Jersey is the contracting activity.

VIASAT, INC., Carlsbad, California, was awarded a $30,641,786 firm-fixed-price, multi-year contract for Enhanced Bandwidth Efficient Modem (EBEM) production and support to include: (1) fabrication and production delivery of: a. MD-1366(U) Strategic EBEM; b. MD-1366A(U), tactical EBEM; c. ethernet service expansion module; (2) post production software support;
(3) hardware maintenance repair; (4) potential capabilities enhancement(s) via engineering change proposals. Funding and work location will be determined with each order. One bid was solicited and one received. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-14-D-0056).
Northrop Grumman Systems Corp., Carson, California, was awarded a $15,890,745 modification (P00088) to contract W31P4Q-07-C-0335 extending the contract period through Nov. 3, 2014 to provide continued supplies, services and maintenance for the counter-rocket artillery mortar command and control system. Fiscal 2014 research, development, testing and evaluation funds in the amount of $100,000 and Fiscal 2014 operations and maintenance (Army) funds in the amount of $12,517,326 were obligated at the time of the award. Work will be performed in Carson, California, with an estimated completion date is Nov. 3, 2014. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.
Fidelity Technologies Corp.*, Reading, Pennsylvania, was awarded an $8,008,925 modification (P00012) to contract W56HZV-13-C-0052 for options for armor kits for the Heavy Mobility Tactical Truck A4 and M915A5. Fiscal 2014 other procurement (Army) funds in the amount of $8,008,925 were obligated at the time of the award. Work will be performed in Reading, Pennsylvania, with an estimated completion date is Dec. 31, 2015. Army Contracting Command, Warren, Michigan, is the contracting activity.

Mohawk Northeast, Inc., Plantsville, Connecticut, was awarded a $7,459,500 firm-fixed-price contract for breakwater repairs. Work will be performed in the Bridgeport and New Haven Harbors, Connecticut, with an estimated completion date of Nov. 17, 2017. Bids were solicited via the Internet with eight received. Fiscal 2014 other procurement funds in the amount of $7,459,500 are being obligated at the time of the award. U.S. Army Corps of Engineers, Concord, Massachusetts, is the contracting activity (W912WJ-14-C-0016).

DEFENSE LOGISTICS AGENCY

Oceanic Medical Products, Inc.,* Atchison, Kansas, has been awarded a maximum $50,000,000 modification (P00009) exercising the fourth option period on a five-year base contract (SPM200-06-D-8203) with five one-year option periods. This is a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for anesthesia systems, related components and accessories. Location of performance is Kansas with a May 22, 2016 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2013 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

AIR FORCE

The Boeing Co., St. Louis, Missouri, has been awarded a $27,685,574 modification (P00058) to FA8678-10-C-0100 for QF-16 Full-Scale Aerial Target (FSAT) Lot 2. The total cumulative face value of the contract is $158,649,517. The contract modification is for the exercise of the Lot 2 production option under the basic contract. This option is for the purchase of 23 QF-16 FSATs and 23 four-year warranties of the QF-16 Drone-Peculiar Equipment (DPE). Work will be performed at St. Louis, Missouri, and will be completed by May 20, 2016. The DPE warranty period will end on May 20, 2020. Fiscal 2013 and 2014 procurement and fiscal 2014 research and development funds in the amount of $27,685,574 are being obligated at time of award. Air Force Life Cycle Management Center/EBYK (Aerial Targets), Eglin Air Force Base, Florida, is the contracting activity.

Lockheed Martin Space Systems Co., Sunnyvale, California, has been awarded a $20,000,000 modification (P00004) to FA8810-13-C-00001 for acceleration effort in support of the production of Space-Based Infrared Systems (SBIRS) Geosynchronous Earth Orbit (GEO) 5&6 satellites. The total cumulative face value of the contract is $346,849,435. The contract modification is for planning and production parts including hinges, valves, structures and special test equipment to support the SBIRS GEO 5/6 satellite production. Work will be performed at Sunnyvale, California, and is expected to be completed by June 19, 2016. Fiscal 2013 missile procurement funds in the amount of $20,000,000 are being obligated at time of award. Space and Missile System Center (SMC), Los Angeles Air Force Base, California, is the contracting activity.

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DEFENSE SECRETARY HAGEL STANDS BEHIND 2015 BUDGET REQUEST

FROM:  THE DEFENSE DEPARTMENT 

Hagel Stands Behind Tough Budget Proposal, Spokesman Says

By Army Sgt. 1st Class Tyrone C. Marshall Jr.

American Forces Press Service

WASHINGTON, May 20, 2014 – Defense Secretary Chuck Hagel stands firmly behind tough budget choices made in the 2015 Fiscal Year Defense Budget request as lawmakers return to Washington to take up defense spending.
Speaking to reporters today, Pentagon press secretary Navy Rear Adm. John Kirby affirmed the defense secretary’s appreciation for Congress moving forward with its consideration of the budget proposal.

“As you know, the full House of Representatives and the Senate Armed Services Committee are considering their defense authorization measures for fiscal year ’15 this week,” he said.

“Secretary Hagel appreciates the efforts of leaders in both chambers to move forward with this critical legislation,” Kirby said. “He believes that it’s important for the ideas and proposals put forward by the Defense Department in the president’s budget are subject to a full and vigorous debate.”

The admiral said Hagel knows this debate is just the beginning.
“He stands firmly behind the tough decisions that were made in that budget proposal -- decisions that he believes are necessary to preserve our military edge in a very difficult fiscal environment,” Kirby said.

Given the importance of the budget proposal, Kirby said he believes “you’ll be hearing more from the secretary and other senior leaders in the department on this in the weeks and months to come.”

NATO CHIEFS MEETING IN BRUSSELS; WILL DISCUSS RUSSIA AND AFGHANISTAN

FROM: U.S. DEFENSE DEPARTMENT 

NATO Defense Chiefs to Discuss Russia, Afghanistan

By Jim Garamone

American Forces Press Service

ABOARD A U.S. MILITARY AIRCRAFT, May 20, 2014 – Army Gen. Martin E. Dempsey, the chairman of the Joint Chiefs of Staff, will discuss the situation in Eastern Europe, Europe’s southern flank, and the way forward in Afghanistan during meetings with NATO’s uniformed leaders in Brussels this week.
The NATO Chiefs of Defense meetings are held twice a year, and this one is a lead-in to the NATO Summit that’s slated in Wales in September.

In Brussels, the chiefs will discuss the Russia-Ukraine crisis and its implications for the alliance. They will also assess the situation in the Middle East and North Africa -- an area crucial to NATO’s southern flank.

Dempsey telegraphed this concern during a May 14 speech at the Atlantic Council last week.

“NATO is in a critical crossroads … given the aggressiveness of Russia, so its eastern flank must be reconsidered,” Dempsey said at the council meeting. “But I’ll also tell you that my personal advice to my fellow [chiefs of defense] in NATO is that the southern flank of NATO deserves far more attention than it currently receives from NATO.”

The alliance leaves the southern flank to the southern European nations, the chairman said. Portugal, Spain, Italy and Greece are most concerned about the Mediterranean.

“And yet the issues that are emanating into the NATO southern flank from the Middle East and North Africa could quite profoundly change life inside of Europe, not only Southern Europe, but well into Central and Northern Europe,” he said.
Terrorist cells, criminal syndicates, human traffickers, and drug smugglers see the southern flank as an opportunity and the alliance as a whole must consider the threats to the region.

The chiefs will also discuss plans for the remainder of the International Security Assistance Force mission in Afghanistan and the implementation of Operation Resolute Support -- the advise and assist follow-on mission in the country.
Meanwhile, Russia’s actions in Ukraine have changed the political situation in Europe, NATO Secretary General Anders Fogh Rasmussen said at a press conference in Brussels yesterday.

“It is less predictable and more dangerous,” Rasmussen said of Europe’s current political situation. “For NATO, this has implications for now and in the future.”
Russia’s annexation of Crimea and its continued threats to the eastern and southern parts of Ukraine has led to Russia’s international isolation, including NATO’s suspension of all practical cooperation with Russia.

“NATO cannot take what it has achieved for granted, because Russia’s aggression against Ukraine has posed a challenge to a fundamental principle -- the right of sovereign states to choose their own paths,” Rasmussen said. “Russia has committed to this precept many times, but we see that President [Vladimir] Putin now refuses to uphold this promise.”

The secretary general noted that Ukraine will hold its presidential election May 25. More than 5,000 observers from the Organization for Security and Cooperation in Europe will monitor the election. U.S. officials believe this election will be a good mirror of the true sentiments in Ukraine.

“This is the vote that counts,” Rasmussen said. “Any effort to delay or disrupt the elections would be an attempt to deny the Ukrainian people their choice and a further step back to find a genuine political solution to the crisis.”

To deter Russia and reassure allies, NATO has beefed up the Baltic air-policing mission. The alliance also has added ships in the Baltic and the Black Seas. Alliance airborne warning and control system aircraft are patrolling the skies over Poland and Romania. And NATO has increased the number and size of its exercises.

“Right now, about 6,000 troops from across NATO are taking place in Exercise Steadfast Javelin in Estonia,” Rasmussen said. “This is a significant exercise aiming to test our ability to repel an attack against an ally. It includes infantry, fighter jets and also a cybersecurity team.”

Steadfast Javelin, he said, is a good example “of the steps we are taking to bolster our forces and their readiness.”

The alliance must look at how much nations spend on defense and how they spend it, the secretary general said. NATO has a goal of each member country spending 2 percent of its gross domestic product on defense, but only four do so -- the United States, the United Kingdom, Estonia and Greece. Some nations -- France, Turkey and Poland -- are close to that benchmark.

The secretary general said he is encouraged that NATO nations are looking for ways to reverse the trend toward less defense resources.

PRESIDENT OBAMA'S REMARKS TO BUSINESS LEADERS

FROM:  THE WHITE HOUSE 

Remarks by the President at Meeting with Business Leaders

Roosevelt Room

11:05 A.M. EDT

THE PRESIDENT:  For the press, I just want to point out these are some outstanding companies, all of whom are investing in the United States, are representing major companies that see the U.S. as a great place to do business.  We have made enormous strides over the last several years not just recovering from a Great Recession, but taking advantage of and now marketing the advantages of doing business in the United States -- whether it’s low energy costs, an incredibly productive workforce.

Obviously, we have the most dynamic and creative and innovative economy in the world, but we don’t always do what it takes to go after business around the world and make sure that they know the benefits of investing in the largest market on Earth.  And we want to be more systematic about it.  We want to make sure that the federal government is working in sync with state and local governments when it comes to locating businesses here in the United States. 

SelectUSA turned out to be an enormously successful process where we’re coordinating between agencies as well as other stakeholders.  And we want to make sure that it’s even more successful the next time.  So this is a terrific venue for us to learn from some outstanding companies.  And we’re announcing that we’ll have our next SelectUSA conference -- give me the exact date, Jeff.

MR. ZIENTS:  March of 2015.

THE PRESIDENT:  March of 2015 -- which is right around the corner.  (Laughter.) 

So thank you for participating.  We’re very excited about it.  Thanks, everybody.

END               
11:07 A.M. EDT

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.