ASSISTANT AG CALDWELL'S REMARKS FOR GAMEOVER ZEUS AND CRYPTOLOCKER OPERATIONS AND RELATED CYBER THREAT

FROM:  U.S. JUSTICE DEPARTMENT 

Assistant Attorney General Leslie R. Caldwell Delivers Remarks for the Gameover Zeus and Cryptolocker Operations and Related Criminal Charges

Washington ~ Monday, June 2, 2014

Good afternoon and thank you, Deputy Attorney General Cole, for the warm welcome.   It is indeed a pleasure to return to the Justice Department, and an honor to serve as the head of the Criminal Division.   I am reminded today, however, of how much the cyber threat landscape has changed since I last worked as a federal prosecutor.

Evgeniy Bogachev and the members of his criminal network devised and implemented the kind of cyber crimes that you might not believe if you saw them in a science fiction movie.   By secretly implanting viruses on computers around the world, they built a network of infected machines – or “bots” – that they could infiltrate, spy on, and even control, from anywhere they wished.   Sitting quietly at their own computer screens, the cyber criminals could watch as the Gameover Zeus malware intercepted the bank account numbers and passwords that unwitting victims typed into computers and networks in the United States.   And then the criminals turned that information into cash by emptying the victims’ bank accounts and diverting the money to themselves.   Typically, by the time victims learned they had been infected with Gameover Zeus, it was too late.

The Cryptolocker scheme, by contrast, was brutally direct about obtaining victims’ money.   Rather than watch and wait, the cyber criminals simply took the victim’s computer hostage until the computer owner agreed to pay a ransom directly to them.   They used sophisticated encryption – a tool originally designed to protect data from theft – to make it impossible for victims to access any data stored on their computers.  The criminals effectively held for ransom every private email, business plan, child's science project, or family photograph – every single important and personal file stored on the victim’s computer.   In order to get their data back, computer owners had to hand over their cash.   As with Gameover Zeus, once you learned you were infected with the Cryptolocker malware, it was too late.

As the Deputy Attorney General mentioned, these schemes were highly sophisticated and immensely lucrative, and as you can imagine, Bogachev and his co-conspirators did not make them easy to reach or disrupt.   But under the leadership of the Justice Department, federal prosecutors, FBI agents and analysts, foreign law enforcement authorities in more than 10 different countries, and numerous private sector partners joined together to disrupt both these schemes.

Here is what we did: first, on May 7, in coordination with the FBI, Ukrainian authorities seized and copied key Gameover Zeus command servers in Kiev and Donetsk.   Then, on Monday, May 19, as you will hear from U.S. Attorney Dave Hickton, we obtained sealed criminal charges against Bogachev in Pittsburgh charging him with illegal hacking, fraud and money laundering.   We took more steps on Wednesday, May 28, obtaining civil court orders against Bogachev and his co-conspirators based on federal laws that prohibit ongoing fraud and the illegal interception of communications.   These orders allowed us to cause the computers infected with Gameover Zeus to cease communicating with computer servers controlled by the criminals, and instead to contact a server established by the court order.   The court also authorized us to collect information necessary to identify the victim computers so that we can provide that information to public- and private-sector entities that can help the victims rid their computers of the infection.   At the same time, our foreign law enforcement partners seized critical computer servers used to operate Cryptolocker, which resulted in Cryptolocker being unable to encrypt victim files.

Beginning in the early morning hours on Friday and continuing through the weekend, the FBI and foreign law enforcement then began the coordinated seizure of computer servers around the world that had been the backbone of Gameover Zeus and Cryptolocker.   These seizures took place in Canada, France, Germany, Luxembourg, the Netherlands, Ukraine and the United Kingdom.   Recognizing that seizures alone would not be enough because cyber criminals can quickly establish new servers in other locations, our team began a carefully timed sequence of technical measures to wrest from the criminals the ability to send commands to hundreds of thousands of infected computers, and to direct those computers to contact the server that the court had authorized us to establish.   Working from command posts in the United States and at the European Cybercrime Centre in the Hague, Netherlands, the FBI and our foreign counterparts—assisted by numerous private sector partners—worked feverishly around the clock to accomplish this re-direction and to defeat various defenses built into the malware, as well as countermeasures attempted in real time over the weekend by the cyber criminals who were trying to retain control over their network.

I am pleased to report that our actions have caused a major disruption of the Gameover Zeus botnet.   Over the weekend, more than 300,000 victim computers have been freed from the botnet – and we expect that number to increase as computers are powered on and connected to the internet this week.   We have already begun providing victim information to private sector parties who are poised to assist them.   I am also pleased to report that, by Saturday, Cryptolocker was no longer functioning and its infrastructure had been effectively dismantled.    Through these court-authorized operations, we have started to repair the damage the cyber criminals have caused over the past few years, we are helping victims regain control of their own computers, and we are protecting future potential victims from attack.  

Over the next few days and weeks, our investigators and prosecutors will work with private-sector partners to notify infected victims and provide links to safe and trusted tools that can help them rid themselves of Gameover Zeus and Cryptolocker and then close the vulnerabilities through which their computers were infected.  We will work with our foreign partners to continue the disruption of the botnet’s technical infrastructure and identify additional victims.  And we will do our best to ensure that the operators cannot re-establish control over the infected machines and thus continue their lucrative enterprise.

These legal and technical measures, as cutting edge as they are, are far from a complete solution to these sophisticated threats.   We fully expect that these schemes will re-emerge and evolve as the criminals target and infect new victims.   That is why we are combining these measures with criminal charges against the defendant Evgeniy Bogachev for his role as an administrator of both schemes.   We are asking Russian law enforcement to take action to bring this defendant and those working with him to justice, and will work with our counterparts to do so.   As Deputy Attorney General Cole stated, it is only by combining traditional law enforcement actions with the type of innovative legal and technical measures announced today that we can begin to fully address modern cyber threats.

I want to thank all those who contributed to this operation, and in particular our private sector and international partners who worked so closely with us on this sophisticated operation.   And now I would like to invite U.S. Attorney Dave Hickton of the Western District of Pennsylvania to make remarks.

Thank you.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JUNE 2, 2014,

FROM:  U.S. DEFENSE DEPARTMENT

CONTRACTS

AIR FORCE

Lockheed Martin Mission Systems and Training, Moorestown, New Jersey, has been awarded a $914,699,474 fixed-price-incentive-firm, cost-reimbursable and cost-plus-fixed-fee contract for engineering, manufacturing and development, production and deployment for the Space Fence program. Work will be performed at Moorestown, New Jersey, and Kwajalein Atoll, Republic of Marshall Islands. The contractor will have 52 months after contract award to reach initial operational capability. Fiscal 2013 and 2014 research, development, test and evaluation funds in the amount of $415,000,000 are being obligated at time of award. The contract was competitively procured with two bids received. Air Force Life Cycle Management Center/HBQK, Hanscom Air Force Base, Massachusetts is the contracting activity (FA8709-14-C-0001).

Raytheon Co., Marlborough, Massachusetts, has been awarded a $298,000,044 firm-fixed-price and cost-plus-fixed-fee modification (P00002) for FA8705-13-C-0005 for the Family of Advanced Beyond Line of Sight Terminals (FAB-T) Command Post Terminals (CPT) Production program. As a result of this down-select decision, low rate initial production, full rate production and interim contractor support contract options may be exercised to deliver FAB-T CPT-Only Terminals. The Phase 2 production contract options for LRIP, FRP, and ICS may be exercised after completion of Milestone C. Work will be performed in Marlborough, Massachusetts and Largo, Florida. Fiscal 2013 through 2019 aircraft and other procurement funds are programmed for this effort, with $31,274 being obligated at time of award. Two bids were solicited and two received. Air Force Life Cycle Management Center/HNSK, Hanscom Air Force Base, Massachusetts, is the contracting activity.

L-3 Communications, Platform Integration Division, Waco, Texas, has been awarded a not-to-exceed $41,500,000 undefinitized contract action for the procurement and modification of four Intelligence, Surveillance and Reconnaissance aircraft, training and spares in support of the counterterrorism efforts in Yemen. Work will be performed at Waco, and is expected to be completed by Sept. 30, 2015. This award is the result of a sole-source acquisition, and is 100 percent foreign military sales for Yemen. The 645 AESG/WIJK, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8620-14-C-3020).

The Garrett Container Systems, Accident, Maryland, has been awarded a $37,174,689 indefinite-delivery/indefinite-quantity contract for Defensor Fortis - Load Carrying System 2 Kits and Accessories. This contract includes 36 distinctive pieces of equipment that all security forces personnel utilize on a daily basis, including Rifleman Kits, Team Leader Kits, M-203 Grenadiers Kits, M-249 Squad Automatic Weapon Gunner Kits, M-240 Machine Gunner Kits, Military Working Dog Kits and Multi-Mission Kits. Work will be performed at Accident, and is expected to be completed by May 31, 2019. This award is the result of a competitive acquisition and all offerors were solicited using Federal Business Opportunities; three offers were received. Fiscal 2014 operations and maintenance funds in the amount of $3,000 are being obligated at time of award. The 771st Enterprise Sourcing Squadron, Joint Base San Antonio-Lackland, Texas, is the contracting activity (FA8054-14-D-0004).

NAVY

General Dynamics National Steel and Shipbuilding Co., San Diego, California, is being awarded a $20,745,556 modification to previously awarded cost-plus-award-fee contract (N00024-13-C-4404) for USS Boxer (LHD 4) fiscal 2014 phased maintenance availability. A phased maintenance 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 San Diego, and is expected to be completed by December 2015. Fiscal 2014 operations and maintenance (Navy) and fiscal 2014 working capital (Navy) funding in the amount of $20,745,556 will be obligated at time of award. Contract funds in the amount of $20,745,556 will expire at the end of the current fiscal year. The Southwest Regional Maintenance Center, San Diego, California, is the contracting activity.

Electric Boat Corp., Groton, Connecticut, is being awarded a $13,228,560 cost-plus-fixed-fee modification to the previously awarded contract (N00024-13-C-2128) for procurement of Common Missile Compartment material. The contractor will be purchasing various long lead time parts to support the manufacture of the Common Missile Compartment for the Ohio Replacement Program. This contract combines purchases for the U.S. Navy (37 percent) and the United Kingdom (63 percent) under the foreign military sales program. Work will be performed in Groton, and is scheduled to be completed by December 2017. Fiscal 2011 FMS and fiscal 2014 research, development, test and evaluation funding in the amount of $13,228,560 will be obligated at time of award. Contract funds will not expire at the end of the current fiscal year. Supervisor of Shipbuilding Conversion and Repair, Groton, Connecticut, is the contracting activity.

S.T. Wooten Corp. Inc., Wilson, North Carolina, is being awarded $9,975,000 for firm-fixed-price task order 0003 under a previously awarded multiple award construction contract (N40085-13-D-5245) for repairing various areas of runways 23R and 14L at Marine Corps Air Station, Cherry Point. The work to be performed provides for the repair of deteriorated bituminous concrete at various locations on the airfield using asphalt concrete milling/overlay and sealcoating to extend the useful life of the airfield pavements. Work will be performed in Havelock, North Carolina, and is expected to be completed by March 2016. Fiscal 2014 operation and maintenance (Marine Corps) contract funds in the amount of $9,975,000 are being obligated on this award and will expire at the end of the current fiscal year. Three proposals were received for this task order. The Facilities Engineering and Design Command, Cherry Point, North Carolina, is the contracting activity.

ARMY

Northrop Grumman, Herndon, Virginia was awarded a $6,990,140 modification (P00039) to contract W31P4Q-12-C-0029 to acquire Rocket Artillery Mortar Warn Equipment for 2-44 Air Defense Artillery fielding six platoons. Fiscal 2014 other procurement funds in the amount of $6,990,140 were obligated at the time of the award. Estimated completion date is Nov. 3, 2014. This contract involved foreign military sales to Afghanistan. Work will be performed in Huntsville, Alabama. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.

DEFENSE LOGISTICS AGENCY

UPDATE: Kalmar RT Center, Cibolo, Texas (SPE8EC-14-D-0019) has been added as an awardee to the multiple award contract #SPM8EC-12-D-0001 announced Jan. 24, 2012.

FORMER POW ARMY SGT. BOWE BERGDAHL HOSPITALIZED IN GERMANY

FROM:  U.S. DEFENSE DEPARTMENT  

Spokesman: Bergdahl Hospitalized in Germany for Dietary Issues

By Terri Moon Cronk

American Forces Press Service

WASHINGTON, June 2, 2014 – The Defense Department’s immediate goal with Army Sgt. Bowe Bergdahl is to take care of his medical needs, Pentagon spokesman Col. Steve Warren told reporters today.

Bergdahl was returned to U.S. military hands May 31 after being held captive nearly five years by the Taliban. He is being treated for nutritional needs at Landstuhl Regional Medical Center in Germany, where he arrived yesterday, Warren told reporters.

“Sergeant Bergdahl is in stable condition and is receiving treatment for conditions that require hospitalization,” he said. “Part of that treatment process includes attention to dietary and nutritional needs after almost five years in captivity.”
Following his treatment at Landstuhl, Bergdahl will be transported stateside to Brooke Army Medical Center in San Antonio for continued care, Warren added.
The former prisoner of war is in a reintegration phase that “runs the complete spectrum of both physical and psychological [issues],” the colonel said, explaining that the phase comprises being returned to U.S. control, treatment at a regional medical facility and reintegration with his family and community. A key component of this reintegration is his family, Warren said, noting that Bergdahl has not yet spoken with family members.

The Defense Department also will determine through debriefings what conditions he lived in while he was in captivity, Warren said.

There have been several looks into the circumstances surrounding Bergdahl’s disappearance, Warren said, adding that DOD never confirmed that the sergeant was a deserter. A key component to the investigation is Bergdahl’s story, he said.
Five detainees were released from prison in Guantanamo Bay, Cubam in exchange for Bergdahl’s freedom, Warren said, adding that Defense Secretary Chuck Hagel “determined that this transfer was in the best interest of the United States of America.”

Whether Bergdahl will return to his Army unit isn’t under consideration at this time, the colonel said.

PRESIDENT OBAMA'S CONFERENCE CALL ON LIMITS TO CARBON POLLUTION AT EXISTING POWER PLANTS

FROM:  THE WHITE HOUSE 

Remarks by The President in a Conference Call hosted by Public Health Groups

Via Conference Call

2:10 P.M. EDT

THE PRESIDENT:  Thanks, Gina.  And thanks to all the folks at EPA who worked so hard to put this plan forward.  I want to thank everybody who is on the call.  We’re going to be talking about carbon pollution and the standards that we proposed this morning.

I think a lot of people are aware of the Climate Action Plan that I put forward last year based on what we know, which is that climate change is real.  It has impacts not just in a distant future.  It has serious impacts, as we speak.  And what the EPA and Gina has been able to put forward, based on conversations they’ve had with a wide range of stakeholders from businesses, to workers, to many of the health organizations that are on the phone today, what she’s been able to do with her team is to craft a sensible, state-based plan that provides states a wide range of options in terms of achieving their goals, but makes sure that we are reducing the carbon pollution that hurts the health of our kids, and the health of the planet, while also giving us enormous opportunities to grow and improve the economy in all sorts of ways.

Now, up until now there have been no national limits on the amount of carbon pollution that existing power plants can pump into the air.  In contrast, we limit the amount of toxic chemicals, like mercury and sulfur and arsenic that power plants put into our air and water.  And the essence of the plan that the EPA is presenting makes sure that we’re finally doing the same with carbon. 

Since carbon emissions are a major contributor to climate change, and since power plants are responsible for about 40 percent of America’s carbon pollution, these new standards are going to help us leave our children a safer and more stable world. 

And since air pollution from power plants actually worsens asthma and other breathing problems, putting these guidelines in place will help protect the health of vulnerable Americans, including children and the elderly.

And I just want to give one example, I got a letter from Dian Coleman, who is a mother of four.  Her three kids have asthma.  Her daughter has a congenital health defect.  She keeps her home free of dust that can trigger asthma attacks.  Cigarettes aren’t allowed across the threshold of her home.  But despite all that, she can't control the pollution that contributes potentially to her kids’ illnesses, as well as threatening the planet.  We’ve got to make sure that we’re doing something on behalf of Dian, and doing it in a way that allows us also to grow the economy and get at the forefront of our clean energy future. 

And the health issues that we’re talking about hit some communities particularly hard.  African American children are twice as likely to be hospitalized for asthma, four times as likely to die from asthma.  Latinos are 30 percent more likely to be hospitalized for asthma.  So these proposed standards will help us meet that challenge head on.  It sets carbon targets, give states and regions the flexibility to meet them, using the mix of energy resources that work best for them -- whether it’s natural gas or cleaner coal or solar or wind or hydropower or geothermal or nuclear.  And it provides a huge incentive for the states and consumers to become more energy efficient.

As a result, your electricity bills will shrink as these standards spur investment in energy efficiency, cutting waste, and ultimately we’re going to be saving money for homes and for businesses.

Now, I promise you, you will hear from critics who say the same thing they always say, that these guidelines will kill jobs, or crush the economy.  What we’ve seen every time, is that these claims are debunked when you actually give workers and businesses the tools and the incentive they need to innovate.  When Americans are called on to innovate, that's what we do -- whether it’s making more fuel-efficient cars or more fuel-efficient appliances, or making sure that we are putting in place the kinds of equipment that prevents harm to the ozone layer and eliminates acid rain.  At every one of these steps, there have been folks who have said it can't be done.  There have been naysayers who said this is going to destroy jobs and destroy industry. 

And it doesn't happen because once we have a clear target to meet, we typically meet it.  And we find the best ways to do it.

And by the way, the idea of setting higher standards to cut carbon is not new.  A lot of companies are already moving to lower-carbon energy sources.  You’ve got more than a dozen states that are already implementing market-based programs to reduce carbon pollution.  Over a thousand mayors have agreed to cut their cities’ carbon emissions. 

Today, carbon emissions are at the lowest they’ve been in about 20 years.  And that’s a good start.  But it’s just not good enough when you look at the projections of where we’re going.  And for the sake of our children, we’re going to have to do more.  In America, we do not have to choose between the health of our economy and the health of our kids.  We can do both.

And you should expect that there’s going to be a heated debate in Washington, there’s going to be a lot of efforts to put out misinformation and to try to make sure that spin overwhelms substance, and that PR overwhelms science, but I wanted to call you directly so you guys hear from me directly this is something that is important for all of us.  As parents, as grandparents, as citizens, as folks who care about the health of our families and also want to make sure that future generations are able to enjoy this beautiful blue ball in the middle of space that we’re a part of.  So I just want you to all join in and work hard to build momentum for these plans because this the right direction to go in, and it’s going to mean a better future for America.

And if we’re working together, I guarantee you we can build that cleaner, healthier, and more prosperous future.  So thanks very much, everybody.  Bye-bye.

END
2:17 P.M. EDT

MORPHEUS LANDS AT NIGHT

Image Credit: NASA/Mike Chambers.

FROM:  NASA 

NASA demonstrated that it can land an unmanned spacecraft on a rugged planetary surface in the pitch dark in a May 28, 2014 free-flight test of the Morpheus prototype lander and Autonomous Landing Hazard Avoidance Technology, or ALHAT. The 98-second test began at 10:02 p.m. EDT, with the Morpheus lander launching from the ground over a flame trench and ascending more than 800 feet (244 m) into the dark Florida sky at Kennedy Space Center using only ALHAT's Hazard Detection System for guidance.

The Hazard Detection System, assisted by three light detection and ranging (lidar) sensors, located obstacles -- such as rocks and craters -- and safely landed on the lunar-like hazard field a quarter mile away from the NASA Center. Project Morpheus tests NASA’s ALHAT and an engine that runs on liquid oxygen and methane, which are green propellants. These new capabilities could be used in future efforts to deliver cargo to planetary surfaces. The landing facility provides the lander with the kind of field necessary for realistic testing, complete with rocks, craters and hazards to avoid. Morpheus’ ALHAT payload allows it to navigate to clear landing sites amidst rocks, craters and other hazards during its descent. Project Morpheus is being managed under the Advanced Exploration Systems, or AES, Division in NASA’s Human Exploration and Operations Mission Directorate. The efforts in AES pioneer new approaches for rapidly developing prototype systems, demonstrating key capabilities and validating operational concepts for future human missions beyond Earth orbit.  Morpheus Completes Nighttime Flight Test.

INL IN TAJIKISTAN AND KYRGYZ REPUBLIC

FROM:  U.S. STATE DEPARTMENT 

Trip Report – INL Visits Tajikistan and the Kyrgyz Republic

Principal Deputy Assistant Secretary (PDAS) Carol Perez traveled in early April to Tajikistan and the Kyrgyz Republic, where she met with senior leaders and emphasized INL’s continued commitment to support counter narcotics, law enforcement and rule of law priorities in both countries. She also observed a number of INL projects firsthand.

While in Bishkek, PDAS Perez met with the head of the State Drug Control Agency to discuss ways to improve our counter narcotics cooperation efforts that are supported by the U.S. Drug Enforcement Administration. At the Ministry of Interior, Minister Abdulla Suranchiev updated PDAS Perez on his police reform efforts and welcomed further cooperation with INL. PDAS Perez also met with the Kyrgyz Prosecutor General Aida Salyanova to discuss the valued work of the INL-funded DOJ Resident Legal Advisor (RLA) who is assisting Kyrgyz prosecutors to develop better evidenced-based prosecutions that bring criminals to justice. They also discussed how INL and the international community can assist Kyrgyzstan in asset recovery efforts.

Also in Bishkek, PDAS Perez joined the Kyrgyz Ministry of Justice and the UN Office of Drugs and Crime to launch the UNODC Forensic Crime Lab Refurbishment Project. INL provided $1.4 million to support the renovations of the crime lab, which is currently just a building shell, into a modern, fully equipped facility. The project will also strengthen the capacity of Kyrgyz forensic professionals to provide forensic services in line with international standards by providing training on effective forensic methodology and practices. The Kyrgyz Forensic Chief noted that the new facility will expedite the processing of criminal investigations, provide quality service to the criminal justice system and increase public trust in law enforcement.
PDAS Perez’s visit to the Southern Kyrgyz city of Osh afforded her the opportunity to visit a nearby Uzbek village and meet with a Community Security Working Group. In discussions with residents from the Amir-Tumur District, led by INL-funded NGO Saferworld, community members and NGO partners told PDAS Perez about their successes in overcoming ethnic and social boundaries in order to address quality-of-life issues within their communities.

PDAS Perez also visited a neighborhood in Osh and observed the INL-funded Organization for Security and Cooperation in Europe (OSCE) Community Security Initiative (CSI) mobile police responder units, and she observed how these converted minibuses are used to facilitate citizen access to the police and to rebuild public trust and confidence in the police. In many isolated villages, these units are the only government service that is delivered directly to the community.

PDAS Perez continued on to Tajikistan where, in addition to discussing our counter narcotics and law enforcement assistance with the head of Tajikistan's Drug Control Agency and the First Deputy Minister of Internal Affairs, she had the opportunity to meet with a group of Tajik female law enforcement officers who are participants in INL Dushanbe's Women's Empowerment Program (WEP). Since 2013, INL has trained more than 40 Tajik female law enforcement officers in a range of areas to include dealing with domestic violence and the prevention of human trafficking. Through the WEP, INL is demonstrating U.S. commitment to helping Tajikistan expand roles for female law enforcement. During the meeting with PDAS Perez, these women expressed how INL support has helped them better understand what they can do to improve themselves professionally and use their knowledge and expertise as the number and role of women in Tajikistan law enforcement expands.

While in Dushanbe, PDAS Perez visited the principal training centers for rank-and-file police and border guards. The director of the police training center briefed her on the Ministry of Internal Affairs (MIA) plans for improving the facility to meet the educational requirements expected as part of the MIA's police reform. At the Border Guard Training Center, where INL supports training by the International Organization for Migration (IOM), PDAS Perez was briefed on plans to repurpose the facilities in order to train additional women from Tajikistan and Afghanistan.

PDAS Perez also traveled to the Tajik industrial city of Tursunzade, home of Central Asia's largest aluminum plant, to visit one of the 16 Community Policing Partnership Teams (CPPT) established by INL in the country. The CPPTs link community leaders and police to address mutual issues and concerns. The leader of the Tursunzade CPPT, a mullah, told PDAS Perez that based on its survey of the community the CPPT was focusing attention on youth, principally through programmed sports activities at a nearby school. PDAS Perez then viewed a karate demonstration by more than two dozen youth, including two slated to compete in a Central Asia regional championship that weekend.

U.S. ANNOUNCES $5 MILLION REWARD FOR KARL LEE IN WEAPONS PROLIFERATION CASE

Photo Credit:  U.S. State Department

FROM:  U.S. STATE DEPARTMENT 
Transnational Organized Crime Rewards Program Announces Reward Offer for Li Fangwei

On April 29, 2014, the U.S. Department of State announced the second reward offer under the Transnational Organized Crime Rewards Program. The reward is for up to $5 million for information leading to the arrest and/or conviction of Chinese weapons proliferator Li Fangwei, also known as Karl Lee. (Photo At Right.)

Li Fangwei previously was sanctioned by the United States for his alleged role as a principal supplier to Iran’s ballistic missile program. According to the indictment, Li controls a large network of front companies he uses to move millions of dollars through U.S.-based financial institutions to conduct business in violation of the International Emergency Economic Powers Act (IEEPA) and the Weapons of Mass Destruction Proliferators Sanctions Regulations. Li Fangwei has also been charged with conspiring to commit wire fraud and bank fraud, a money laundering conspiracy, and two separate counts of wire fraud in connection with such illicit transactions.

The Transnational Organized Crime Rewards Program was established in 2013 as a tool to assist U.S. Government efforts to dismantle transnational criminal organizations and bring their leaders and members to justice. The Bureau of International Narcotics and Law Enforcement Affairs (INL) manages the program in coordination with U.S. federal law enforcement agencies. It is a key element of the White House Strategy to Combat Transnational Organized Crime.

The April 29 announcement was made in coordination with other U.S. agencies taking action against Li Fangwei. The U.S. Department of Justice unsealed an indictment against Li Fangwei on charges including conspiracy to commit money laundering, bank fraud, and wire fraud. The U.S. Department of the Treasury’s Office of Foreign Assets Control also added eight of Li Fangwei’s front companies to its List of Specially Designated Nationals and Blocked Persons, and the U.S. Department of Commerce announced the addition of nine of his China-based suppliers to its Entity List.

More information about Li Fangwei is available on the Transnational Organized Crime Rewards Program website at www.state.gov/tocrewards. Anyone with information on Li Fangwei should contact the Federal Bureau of Investigation via the Major Case Contact Center at 1-800-CALLFBI (225-5324) or the nearest U.S. Embassy or Consulate. All information will be kept strictly confidential.

LINKING POLLEN PARTICLES TO CLIMATE CHANGE

FROM:  NATIONAL SCIENCE FOUNDATION

Estimating how pollen particles in the atmosphere influence climate

Researchers study water cycle and cloud formation and design computer algorithm models to understand impact

In the past, many atmospheric scientists believed that pollen particles probably had a negligible effect on climate because they were so big. In recent years, however, as they began to realize that pollen particles were not as sturdy as they once thought, they have been rethinking their old assumptions.

"Pollen can rupture and generate a lot of small, tiny particles," says Allison Steiner, an associate professor of atmospheric, oceanic and space sciences at the University of Michigan. "They can break pretty easily."

Moreover, pollen, the same airborne material that wreaks misery during certain seasons in the form of drippy noses and itchy eyes, apparently can have an influence on weather. When big pollen particles break into fine ones, they can take up water vapor in the air to promote the formation of clouds, potentially altering weather systems as a result. Unlike greenhouse gases, which contribute to warming, these fine particles can have a cooling effect.

This is a process that Steiner wants to learn more about, particularly now, when much of the scientific community is devoting considerable attention to the anthropogenic--or human--causes of climate change.

"The impact of pollen in the atmosphere may change weather and it could change our understanding of the climate system," says the National Science Foundation (NSF)-funded scientist.

"How much is nature contributing?" she adds. "How important will that be in understanding what we will see in the absence of human influences? It's easier to understand the human causes, but these natural aerosols like pollen are something we don't understand very well."

Prior research indicates that when pollen becomes wet, it easily ruptures into very small particles. She wondered whether these small, pollen fragments could, "seed" the creation of clouds.

"If you have water vapor in the atmosphere, it's hard to form droplets all by itself," she explains. "But if you have a little particle already there, it's easy for water to condense on it and grow into a droplet, which enables the formation of cloud droplets.

"Most people think of pollen as being pretty inert in the atmosphere, and it's not," she adds. "It's interacting with the water cycle, and can influence clouds in ways that people hadn't realized before."

She and her team are using ground based observation data obtained from across the nation to design a computer algorithm emissions model. The model includes the different types of pollen, and takes into account various conditions that can have an effect on pollen when it enters the atmosphere, for example, rain.

Furthermore, tiny pollen particles can react with radiation. "The models simulate the ability of pollen particles to interact with incoming solar radiation to understand how these particles will affect climate," she says. By using computer models, she can estimate the effect these particles have on regional climate.

She also has been working in the laboratory of Sarah Brooks, a professor of atmospheric sciences at Texas A&M University, to demonstrate pollen's effect on cloud formation. Using a cloud condensation nuclei chamber, an instrument that can reproduce the atmospheric conditions that form clouds, they were able to demonstrate that pollen can in fact grow and act as cloud droplets.

"This means that pollen could have an impact on climate," says Steiner, who conducted the experiments at Texas A & M in the spring. "One thing we are still trying to figure out is how big that effect actually is."

Steiner is conducting her research under an NSF Faculty Early Career Development (CAREER) award, which she received in 2010. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education, and the integration of education and research within the context of the mission of their organization. NSF is funding her work with $599,940 over five years.

As part of the grant's educational component, she has worked with middle schools and high schools in Detroit and Ypsilanti. Using the sites and numerous hands-on activities will introduce students to hypothesis development, data collection and analysis, and interpretation, and also will help the pollen emissions model development.

She also plans to integrate elements of the pollen project with University of Michigan undergraduate and graduate programs, as well as form a partnership with the International Centre for Theoretical Physics in Trieste, Italy to train scientists from developing nations on the role of biosphere-atmosphere interactions.

Steiner says she is especially gratified by the response of the young middle school students "who find it a real change to have a college professor come into their classroom on a regular basis," she says, adding: "It can be a real challenge to make our research relevant for middle-school students. But the students have asked great questions, and we've developed some novel hands-on activities that have really helped the students to see how fun and exciting scientific research can be."

-- Marlene Cimons, National Science Foundation
Investigators
Allison Steiner
Related Institutions/Organizations
University of Michigan Ann Arbor

GENERIC CELEBREX APPROVED BY FDA FOR ARTHRITIS, OSTEOARTHRITIS

FROM:  U.S. FOOD AND DRUG ADMINISTRATION 

FDA approves first generic versions of celecoxib

May 30, 2014

Release

The U.S. Food and Drug Administration today approved the first generic versions of Celebrex (celecoxib) capsules, a treatment for rheumatoid arthritis, osteoarthritis, short-term (acute) pain, and other conditions.

Teva Pharmaceutical Industries received approval to market celecoxib capsules in 50 milligram, 100 mg, 200 mg, and 400 mg strengths, and has 180-day exclusivity on the 100 mg, 200 mg, and 400 mg strength products. Mylan Pharmaceuticals, Inc. received approval to market 50 mg celecoxib capsules.

“It is important for patients to have access to affordable treatment options for chronic conditions,” said Janet Woodcock, M.D., director of the FDA’s Center for Drug Evaluation and Research. “Health care professionals and patients can be assured that these FDA-approved generic drugs have met our rigorous approval standards.”

Celecoxib is a Non-Steroidal Anti-Inflammatory Drug (NSAID). All NSAIDs have a Boxed Warning in their prescribing information (label) to alert health care professionals and patients about the risk of heart attack or stroke that can lead to death. This chance increases for people with heart disease or risk factors for it, such as high blood pressure, or taking NSAIDs for long periods of time. The Boxed Warning also highlights the risk of serious, potential life-threatening gastrointestinal (GI) bleeding that has been associated with use of NSAIDs.

In the clinical trials for Celebrex, the most commonly reported adverse reactions in patients taking the drug for arthritis were abdominal pain, diarrhea, indigestion (dyspepsia), flatulence, swelling of the feet or legs (peripheral edema), accidental injury, dizziness, inflammation of the throat (pharyngitis), runny nose (rhinitis), swollen nasal passages, (sinusitis), upper respiratory tract infection, and rash.

Generic prescription drugs approved by the FDA have the same high quality and strength as brand-name drugs. Generic drug manufacturing and packaging sites must pass the same quality standards as those of brand-name drugs.

Information about the availability of generic celecoxib can be obtained from the companies.

The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation's food supply, cosmetics, dietary supplements, products that give off electronic radiation, and for regulating tobacco products.

RECENT U.S. NAVY PHOTOS

FROM:  U.S. NAVY 

140529-N-IK337-133 BREMERTON, Wash. (May 29, 2014) Sailors assigned to the Nimitz-class aircraft carrier USS John C. Stennis (CVN 74) prepare to detach Stennis' starboard anchor for maintenance. Stennis is undergoing a docking planned incremental availability maintenance period at Puget Sound Naval Shipyard and Intermediate Maintenance Facility. (U.S. Navy Photo by Mass Communication Specialist Seaman Apprentice Christopher Frost/Released).

140528-N-XJ695-463 GULF OF ADEN (May 28, 2014) The Saudi Arabian frigate HMS Al-Dammam (816) maneuvers into position, with its embarked helicopter circling overhead, during Exercise Eager Lion 2014. Eager Lion is a recurring, multinational exercise designed to strengthen military-to-military relationships and enhance regional security and stability by responding to modern-day security scenarios. (U.S. Navy photo by Mass Communication Specialist Seaman Jesse A. Hyatt/Released)

EMPLOYEE OF DEA AND HUSBAND PLEAD GUILTY IN FAKE KIDNAPPING CASE INVOLVING U.S. EMBASSY IN BOGOTA, COLUMBIA

FROM:  U.S. JUSTICE DEPARTMENT

Friday, May 30, 2014

DEA Employee and Contractor Husband Plead Guilty to False Statements in Kidnapping Hoax

Nydia L. Perez and John A. Soto, both 44, of Haymarket, Virginia, pleaded guilty to one count of making false statements to law enforcement officials in federal court on Friday, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Assistant Director for International Operations John Boles of the FBI.

According to the plea agreement, in December 2013, Perez, an employee of the Drug Enforcement Administration, and her husband Soto, a private contractor in the United States Embassy in Bogotá, Colombia, designed and executed a hoax with the intention of defrauding the United States Embassy in Bogotá.   As part of the hoax, Perez and Soto fabricated a plot to kidnap minors who are United States citizens.

According to court filings, Perez and Soto sent, through electronic mail and courier services, information about a purported threat to the safety of minor United States citizens in Bogotá.   Perez and Soto added detailed descriptions of the targeted United States citizens, including information about their whereabouts and daily routines.   Perez and Soto included photographs of the citizens in order to enhance the seriousness of the threat, and attempted to implicate innocent individuals in the kidnapping plot.   Perez and Soto made numerous false representations to law enforcement and security officials in furtherance of the fabricated kidnapping plot.

Sentencing before U.S. District Judge Amy Berman-Jackson is scheduled for Aug. 21, 2014.

The investigation was conducted by the FBI Legal Attaché in Bogotá and the Extra-Territorial Squad of the FBI Miami Field Office.   Also participating in the investigation were the DEA, the U.S. Embassy Bogota Regional Security Office, and the U.S. Embassy Bogota Force Protection Detail.   The Department is grateful for the assistance of the Colombia National Police Directorate of Anti-Kidnapping and Anti-Extortion.

U.S. SENDS WARMEST WISHES TO PEOPLE OF ITALY ON THEIR REPUBLIC DAY

FROM:  U.S. STATE DEPARTMENT 

Statement On the Occasion of Italy's Republic Day

Press Statement

John Kerry

Secretary of State

Washington, DC

May 30, 2014

---

On behalf of President Obama and the American people, I send warmest wishes to the people of Italy as you celebrate Republic Day on June 2.

I have always felt a very special, personal connection to Italy and its people, dating back to my travels in Italy as a young college student. That bond has only strengthened over many visits this past year. I am especially grateful to Prime Minister Matteo Renzi and Foreign Minister Federica Mogherini for their partnership on so many issues that matter to the security and prosperity of our citizens.

The deep bonds between the United States and Italy date back to the early days of the American Revolution, when the writings of Philip Mazzei inspired the immortal phrase “all men are created equal.”

In 1946, the people of Italy embraced these same principles in their own constitutional referendum. Their choices, during a time of great turmoil, helped Italy become the strong and prosperous democracy it is today.

Italy is one of our closest allies. We are united by a shared belief in freedom for all people. The United States and Italy are working together to promote stability in Ukraine, the Middle East, and North Africa. Our countries are promoting shared prosperity and tackling the challenge of global food security. The United States looks forward to participating in Milan Expo 2015, an important venue to raise awareness about the challenges of feeding the planet through sustainable agriculture and nutrition.

I extend to all Italians best wishes on this 68^th anniversary of Republic Day and look forward to strengthening our partnership in the years to come.

ENGINEER STUDIES HUMAN BEHAVIOR TO HELP DEVELOP ENERGY-EFFICIENT TECHNOLOGIES

FROM:  NATIONAL SCIENCE FOUNDATION 

Energy-efficient technologies developed with people in mind

Engineer studies human behavior and how it relates to consumer decision-making
When engineers design environmentally-friendly cars, such as all-electric or hybrid vehicles, they often focus primarily on their technological features. Ricardo Daziano believes they also should consider the "human" element.

By this, he means they need to keep in mind the kinds of things consumers actually want from a "green car," and how these preferences will influence their buying decisions. While technology is important, he believes that engineers no longer can focus on it in isolation. It's not enough to create technically sound solutions if society isn't willing to adopt them.

While many consumers support the concept of sustainable energy cars, this doesn't always mean they will buy them. "This technology often is more expensive, so one question becomes whether consumers are willing to spend a lot of money now for cost-saving benefits that will come later?" he says.

"It's an energy paradox," he adds. "You do have the savings, but they come later. People like to have money now, rather than in savings. It's human nature. It may be difficult to sell the idea that this vehicle costs more now, but will save money in the future."

Daziano, assistant professor in the school of civil and environmental engineering at Cornell University, who teaches economics, has a social science background and believes that technical solutions for society's problems, such as the need for sustainable transportation, must reach beyond the technology into the psyche.

The National Science Foundation (NSF)-funded scientist is studying human behavior and how it relates to consumer decisions about energy efficient, low emission vehicles. His research potentially could provide important insights for policy makers, transportation planners, as well as for automobile manufacturers in advancing future sustainable vehicle designs.

He already has learned, for example, that one of the reasons the Toyota Prius has become so successful is because it is instantly recognizable as a hybrid, unlike those made by other manufacturers which fail to stand out, "Other car makers have hybrids, but they look like their other models," Daziano says. "People want a car that will tell the world: ‘I'm green."'

In other preliminary results, he has found that women appear likely to spend up to $2,000 more than men for an energy efficient car.

Daziano is conducting his research under a National Science Foundation Faculty Early Career Development (CAREER) award, which he received earlier this year. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education and the integration of education and research within the context of the mission of their organization. He is receiving $410,000 over five years.

The project is studying data already collected by research centers in Germany, Italy, Canada, and California where scientists conducted consumer surveys asking people about their car buying choices, and how they arrived at them. Daziano is using a special computer algorithm to analyze them.

"I'm trying to determine the tradeoffs people make," he says. "How they process this information. Each car has different characteristics, and I want to see how they combine them to decide on the car they want." Ultimately, "we will be able to forecast how people will react if we make changes in the cars," he adds.

For example, "people may like the idea of a 100 percent electric car, but they still may hesitate to buy one because of its limitations," he says. "All-electric cars have a limited driving range, which is the maximum you can drive in the car, and there is this concept we call ‘range anxiety,' when you are concerned that the battery will die and you will not reach your destination. Also, we do not yet have a lot of charging stations available, certainly not like gas stations, which increases the anxiety."

He hopes the information he gathers will influence both auto makers and policy makers. "If I can determine from the point of view of the consumer the optimal driving range that will make them comfortable with an all-electric car, then hopefully the engineers will be able to come up with a battery that offers more," he says.

One research challenge is to find a way to incorporate consumers' wide-ranging and different tastes. "Consumers are heterogeneous," he says. "There are people who prefer luxury cars, others prefer power and space, while others care about color. That's why every car maker has a range of vehicles they offer. They need to address many things in their models.

"If everyone behaved the same, these would be easy problems to solve," he adds.

He already has begun to introduce these ideas into the engineering curriculum, where students "need to understand that we are doing these technologies for people," he says.

"They need to consider people in the design process," he adds. "We are splicing this into discussions in the classroom, for both graduates and undergraduates. They were not aware of this social component of engineering. Modeling consumer preferences is something completely new for engineering students."

-- Marlene Cimons, National Science Foundation
Investigators
Ricardo Daziano

PRESIDENT OBAMA'S WEEKLY ADDRESS FOR MAY 31, 2014

FROM:  THE WHITE HOUSE 

Weekly Address: Reducing Carbon Pollution in Our Power Plants

WASHINGTON, DC — In this week’s address, President Obama discussed new actions by the Environmental Protection Agency to cut dangerous carbon pollution, a plan that builds on the efforts already taken by many states, cities and companies. These new commonsense guidelines to reduce carbon pollution from power plants were created with feedback from businesses, and state and local governments, and they would build a clean energy economy while reducing carbon pollution. The President discussed this new plan from the Children’s National Medical Center in Washington, D.C., where he visited children whose asthma is aggravated by air pollution.  As a parent, the President said he is dedicated to make sure our planet is cleaner and safer for future generations.

Remarks of President Barack Obama
Weekly Address
Children’s National Medical Center in Washington, D.C.
May 31, 2014

Hi, everybody.  I’m here at Children’s National Medical Center in Washington, D.C., visiting with some kids being treated here all the time for asthma and other breathing problems.  Often, these illnesses are aggravated by air pollution – pollution from the same sources that release carbon and contribute to climate change.  And for the sake of all our kids, we’ve got to do more to reduce it.

Earlier this month, hundreds of scientists declared that climate change is no longer a distant threat – it “has moved firmly into the present.” Its costs can be measured in lost lives and livelihoods, lost homes and businesses; and higher prices for food, insurance, and rebuilding.

That’s why, last year, I put forward America’s first climate action plan.  This plan cuts carbon pollution by building a clean energy economy – using more clean energy, less dirty energy, and wasting less energy throughout our economy. 

One of the best things we can do for our economy, our health, and our environment is to lead the world in producing cleaner, safer energy – and we’re already generating more clean energy than ever before.  Thanks in part to the investments we made in the Recovery Act, the electricity America generates from wind has tripled.  And from the sun, it’s increased more than tenfold. In fact, every four minutes, another American home or business goes solar – and every panel is pounded into place by a worker whose job cannot be shipped overseas.

We’re wasting less energy, too.  We’ve doubled how far our cars and trucks will go on a gallon of gas by the middle of the next decade, saving you money at the pump – and we’re helping families and businesses save billions with more efficient homes, buildings, and appliances.

This strategy has created jobs, grown our economy, and helped make America more energy independent than we’ve been in decades – all while holding our carbon emissions to levels not seen in about 20 years.  It’s a good start.  But for the sake of our children, we have to do more. 

This week, we will.  Today, about 40% of America’s carbon pollution comes from power plants.  But right now, there are no national limits to the amount of carbon pollution that existing plants can pump into the air we breathe. None. We limit the amount of toxic chemicals like mercury, sulfur, and arsenic that power plants put in our air and water.  But they can dump unlimited amounts of carbon pollution into the air.  It’s not smart, it’s not safe, and it doesn’t make sense.

That’s why, a year ago, I directed the Environmental Protection Agency to build on the efforts of many states, cities, and companies, and come up with commonsense guidelines for reducing dangerous carbon pollution from our power plants.  This week, we’re unveiling these proposed guidelines, which will cut down on the carbon pollution, smog, and soot that threaten the health of the most vulnerable Americans, including children and the elderly.  In just the first year that these standards go into effect, up to 100,000 asthma attacks and 2,100 heart attacks will be avoided – and those numbers will go up from there. 

These standards were created in an open and transparent way, with input from the business community.  States and local governments weighed in, too.  In fact, nearly a dozen states are already implementing their own market-based programs to reduce carbon pollution.  And over 1,000 mayors have signed agreements to cut their cities’ carbon pollution. 

So the idea of setting higher standards to cut pollution at our power plants is not new.  It’s just time for Washington to catch up with the rest of the country.

Now, special interests and their allies in Congress will claim that these guidelines will kill jobs and crush the economy.  Let's face it, that’s what they always say. 

But every time America has set clear rules and better standards for our air, our water, and our children’s health – the warnings of the cynics have been wrong.  They warned that doing something about the smog choking our cities, and acid rain poisoning our lakes, would kill business.  It didn’t.  Our air got cleaner, acid rain was cut dramatically, and our economy kept growing.

These excuses for inaction somehow suggest a lack of faith in American businesses and American ingenuity.  The truth is, when we ask our workers and businesses to innovate, they do.  When we raise the bar, they meet it.  When we restricted cancer-causing chemicals in plastics and leaded fuel in our cars, American chemists came up with better substitutes.  When we phased out the gases that depleted the ozone layer, American workers built better refrigerators and air conditioners.  The fuel standards we put in place a few years ago didn’t cripple automakers; the American auto industry retooled, and today, they’re selling the best cars in the world, with more hybrids, plug-in, and fuel-efficient models to choose from than ever before.

In America, we don’t have to choose between the health of our economy and the health of our children.  The old rules may say we can’t protect our environment and promote economic growth at the same time, but in America, we’ve always used new technology to break the old rules.

As President, and as a parent, I refuse to condemn our children to a planet that’s beyond fixing.  The shift to a cleaner energy economy won’t happen overnight, and it will require tough choices along the way.  But a low-carbon, clean energy economy can be an engine of growth for decades to come.  America will build that engine.  America will build the future.  A future that’s cleaner, more prosperous, and full of good jobs – a future where we can look our kids in the eye and tell them we did our part to leave them a safer, more stable world.

Thanks, and have a great weekend.

SECRETARY HAGEL ANNOUNCES RELEASE OF ARMY SGT. BOWE BERGDAHL

FROM:  U.S. DEFENSE DEPARTMENT 

Hagel Announces Release of Army Sgt. Bowe Bergdahl by Afghan Captors

By Cheryl Pellerin

American Forces Press Service

WASHINGTON, May 31, 2014 – Defense Secretary Chuck Hagel today announced that Army Sgt. Bowe Bergdahl’s Afghan captors have released him to the U.S. military after taking him prisoner nearly five years ago while he was supporting Operation Enduring Freedom.

Bergdahl, at the time a private first class, went missing from his post in Afghanistan on June 30, 2009. He was the only U.S. service member known to be held captive there.

The now 28-year-old soldier was thought captured by the Haqqani network. He appeared in a proof-of-life video that surfaced last January and military officials said at the time they believed the video to be recently made.

“A few hours ago, the family of Sgt. Bowe Bergdahl was informed by President [Barack] Obama that their long wait for his return will soon be over,” Hagel said in today’s statement.

“We will give him all the support he needs to help him recover from this ordeal,” the secretary added, “and we are grateful that he will soon be reunited with his family.”

Also today, Hagel said he informed Congress of the decision to transfer five detainees from Guantánamo Bay to Qatar.

“The United States has coordinated closely with Qatar to ensure that security measures are in place and the national security of the United States will not be compromised,” Hagel said.

“I appreciate the efforts of the Emir of Qatar to put these measures in place and I want to thank him for his instrumental role in facilitating the return of Sgt. Bergdahl,” the secretary acknowledged.

One of Hagel’s first acts upon taking office in February 2013 was to call the Bergdahl family about their son’s situation, Pentagon Press Secretary Navy Rear Adm. John Kirby said during a January press conference.

In June 2011 the Army announced that it had promoted Bergdahl to the rank of sergeant. Bergdahl, now 27, is assigned to the 1st Battalion, 501st Parachute Infantry Regiment, 4th Brigade Combat Team, 25th Infantry Division at Fort Richardson, now Joint Base Elmendorf-Richardson, in Alaska.

That was Bergdahl’s second promotion since he was listed as Missing-Captured on June 30, 2009. He was promoted to the rank of specialist in June 2010.
“Sgt. Bergdahl's return is a powerful reminder of the enduring, sacred commitment our nation makes to all those who serve in uniform,” Hagel said in his statement today.

The U.S. government never forgot Sgt. Bergdahl, he added, and the Defense Department and other federal agencies never stopped working to bring him back.
“I am grateful to all the military and civilian professionals -­ from DOD and our interagency partners -­ who helped make this moment possible, and to all those Americans who stood vigil with the Bergdahl family,” the secretary said.
Hagel issued the announcement while on a 12-day international trip to countries in Asia and Europe.

Chairman of the Joint Chiefs of Staff Army Gen. Martin E. Dempsey also commented on Bergdahl's return today. The chairman said in a written statement, "It is our ethos that we never leave a fallen comrade. Today we have back in our ranks the only remaining captured soldier from our conflicts in Iraq and Afghanistan. Welcome home, Sgt. Bowe Bergdahl.

SECRETARY KERRY'S COMMENTS ON THE RETURN OF U.S. POW BOWE BERGDAHL

FROM:  

U.S. STATE DEPARTMENT 

Sergeant Bowe Bergdahl

Press Statement

John Kerry

Secretary of State

Washington, DC

May 31, 2014

---

The responsibility to make sure all of our men and women in uniform return from battle, especially those taken prisoner and held during war, is deeply personal to me as someone who has worn the uniform of my country – and as someone who was deeply involved in those efforts with respect to the unfinished business of the war in which I fought. Our nation has a sober and solemn duty to ensure that every single American who signs up to serve our country comes home. The cost of years of captivity to Sergeant Bowe Bergdahl and his family is immeasurable. Today, we are heartened that Sergeant Bergdahl will soon by reunited with his family and friends, from whom he has been apart for far too long.

I extend my personal gratitude to the Government of Qatar – and especially to the Amir, Sheikh Tamim bin Hamad Al Thani – who played such an instrumental role in returning Sergeant Bergdahl home. We work every day with Qatar on a range of critical foreign policy priorities. This effort – one that was personally so close to our hearts here – exemplifies how vital our partnership with Qatar is and will remain.

I spoke today with Afghan President Karzai to brief him on this development and to discuss President Obama’s announcement this week about our efforts there. As we look to the future in Afghanistan, the United States will continue to support steps that improve the climate for conversations between Afghans about how to end the bloodshed in their country through an Afghan-led reconciliation process. As we’ve said, we look forward to working with the next President of Afghanistan and to standing side-by-side with the Afghan Government and the Afghan people as they build a secure, stable, sovereign, and unified country.

ADDING THE ORION HEAT SHIELD

FROM:  NASA 

At the Operations and Checkout Building at NASA's Kennedy Space Center, the Orion crew module and heat shield are being moved into position for the mating operation. The heat shield will be tested on Orion's first flight in December, Exploration Flight Test-1 (EFT-1), an uncrewed flight that will put to the test the spacecraft that will send astronauts to an asteroid and eventually Mars on future missions. EFT-1 will launch an uncrewed Orion capsule 3,600 miles into space for a four-hour mission to test several of its most critical systems. After making two orbits, Orion will return to Earth at almost 20,000 miles per hour and endure temperatures near 4,000 degrees Fahrenheit, before its parachutes slow it down for a landing in the Pacific Ocean. Image Credit: NASA.

THE BROTHER'S KEEPER TASK FORCE REPORT TO PRESIDENT OBAMA

FROM:  THE WHITE HOUSE 

FACT SHEET & REPORT: Opportunity for All: My Brother’s Keeper Blueprint for Action

The My Brother’s Keeper Task Force Report to the President can be found HERE.

Over the past five years, the hard work and grit of the American people pulled our economy back from the brink of collapse.  We are now moving forward again.  But there is more work to do, and for decades opportunity has lagged behind for some, including millions of boys and young men of color.  Boys of color are too often born into poverty and live with a single parent.  And while their gains contributed to the national high school graduation rate reaching an all-time high, in some school districts dropout rates remain high.  Too many of these boys and young men will have negative interactions with the juvenile and criminal justice system, and the dream of a college education is within grasp for too few.  Our society can and will do more to help remove barriers to all young people’s success, because America prospers not only when hard work and responsibility are rewarded but also when we all pull forward together. 

Rebuilding that core American value—community—is why the President launched My Brother’s Keeper, an initiative designed to determine what works to help young people stay on track to reach their full potential. 

The Administration is doing its part by identifying programs and policies that work, and recommending action that will help all our young people succeed.  Since the launch of My Brother’s Keeper, the President’s Task Force has met with and heard from thousands of Americans, through online and in-person listening sessions, who are already taking action.  Cities and towns, businesses, foundations, faith leaders and individuals have made commitments to helping youth get a strong start in school and life and later connect them to mentoring, support networks and specialized skills they need to find a good job or go to college and work their way up into the middle class.  As President Obama has said, “We are stronger when America fields a full team.”

Today, the President met with his Cabinet to discuss the Task Force’s initial assessments and recommendations and the President called on the American people to get engaged through mentorship opportunities nationwide. 

Call to Action

The President is calling on Americans interested in getting involved in My Brother’s Keeper to sign up as long-term mentors to young people at WH.gov/mybrotherskeeper.  This effort will engage Americans from all walks of life to sign up to develop sustained and direct mentoring relationships that will play vital roles in the lives of young people.

It is important that all children have caring adults who are engaged in their lives.  But too many young people lack this support.  For example, roughly two-thirds of Black and one-third of Hispanic children live with only one parent.   Moreover, research suggests that a father's absence increases the risk of his child dropping out of school among Blacks and Hispanics by 75 percent and 96 percent respectively.  We see significant high school dropout rates—as high as 50 percent in some school districts—including among boys and young men from certain Southeast Asian and Pacific Islander populations. And some 27 percent of American Indians and Alaska Natives live in poverty, compared to 11.6% of White Americans.

Presidential Task Force 90-Day Report

As part of its 90-day report, the Task Force has identified a set of initial recommendations to the President, and a blueprint for action by government, business, non-profit, philanthropic, faith and community partners.

In developing its recommendations, the Task Force identified key milestones in the path to adulthood that are especially predictive of later success, and where interventions can have the greatest impact:

1. Getting a healthy start and entering school ready to learn;
2. Reading by third grade;
3. Graduating from high school ready for college and career;
4. Completing post-secondary education or training;
5. Entering the workforce;
6. Keeping kids on track and giving them second chances.

By focusing on these key moments, and helping our young people avoid roadblocks that hinder progress across life stages, we can help ensure that all children and young people have the tools they need to build successful lives.  Focused on areas of action that can improve outcomes at these key moments, the President’s Task Force today presented him with recommendations including:

Cross-Cutting Recommendations

• Launch a public-private campaign to actively recruit mentors for youth and improve the quality of mentoring programs. 
• Make the status and progress of boys and young men of color and other populations more visible by improving data collection and transparency.

A Healthy Start and Ready for School

• Eliminate suspensions and expulsions in preschool and other early learning settings. 

Reading at Grade Level by the End of Third Grade

• Close the word gap by launching a public and private initiative to increase joint and independent reading time outside of school and build a reading culture in more homes. 

Graduating from High School

• Increase focus on transforming the schools and districts producing the majority of the country's dropouts. 

Completing Post-Secondary Education or Training

• Increase college completion by expanding students’ access to and successful completion of rigorous courses, such as Advanced Placement, International Baccalaureate and dual enrollment options in high school.

Entering the Workforce

• Increase awareness about youth summer employment and use of pre-apprenticeships as good entry-level jobs.  

Reducing Violence and Providing a Second Chance

• Institutionalize community oriented policing practices in the field and employ methods to address racial and ethnic bias within the juvenile and criminal justice systems.

The recommendations identified by the President’s Task Force mark the starting point of what must and will be a long-term effort.  The Task Force and public, private and philanthropic actors will continue to develop recommendations and support community solutions well beyond this 90-day progress report.

In addition to today’s announcements, in coming weeks and months, leading foundations will independently announce specific commitments to help ensure young people can succeed.  The following foundations will together seek to invest at least $200 million:  The Annie E. Casey Foundation, The Atlantic Philanthropies, Bloomberg Philanthropies, The California Endowment, The Ford Foundation, The John S. and James L. Knight Foundation, The Open Society Foundations, The Robert Wood Johnson Foundation, The W.K. Kellogg Foundation, The Kapor Center for Social Impact, and the Nathan Cummings Foundation.

AUTO LENDER SETTLES FTC CHARGES OF CONSUMER HARASSMENT BY PAYING $5,5 MILLION

FROM:  FEDERAL TRADE COMMISSION 
Auto Lender Will Pay $5.5 Million to Settle FTC Charges It Harassed Consumers, Collected Amounts They Did Not Owe

A national subprime auto lender will pay more than $5.5 million to settle Federal Trade Commission charges that the company used illegal tactics to service and collect consumers’ loans, including collecting money consumers did not owe, harassing consumers and third parties, and disclosing debts to friends, family, and employers.

Consumer Portfolio Services, Inc. (CPS), headquartered in Irvine, Calif., agreed to refund or adjust 128,000 consumers’ accounts more than $3.5 million and forebear collections on an additional 35,000 accounts to settle charges the company violated the FTC Act. CPS will pay another $2 million in civil penalties to settle FTC charges that the company violated the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA)’s Furnisher Rule.

“At the FTC, we hold loan servicers responsible for knowing their legal obligations and abiding by them,” said Jessica Rich, director, FTC’s Bureau of Consumer Protection. “The law is very clear: Loan servicers can’t charge consumers more than they owe. And they can’t threaten and harass consumers about delinquent debts.”

The order settling the charges requires CPS to change its business practices to comply with the requirements of the appropriate laws. In addition, the company is required to establish and maintain a comprehensive data integrity program to ensure the accuracy, integrity and completeness of its loan servicing processes, and the data and other information it services, collects or sells. CPS must also provide the FTC with periodic independent assessments of its data integrity program for 10 years.

According to the FTC’s complaint, CPS’ loan-servicing violations include:

Misrepresenting fees consumers owed in collection calls, monthly statements, pay-off notices, and bankruptcy filings;
Making unsubstantiated claims about the amounts consumers  owed;
Improperly assessing and collecting fees or other amounts;
Unilaterally modifying contracts by, for example, increasing principal balances;
Failing to disclose financial effects of loan extensions;
Misrepresenting that consumers must use particular payment methods requiring service fees; and
Misrepresenting that the company audits verified consumer accounts balances.
The company’s collection violations include disclosing the existence of debts to third parties; calling consumers at work when not permitted or inconvenient; calling third parties repeatedly with intent to harass; making unauthorized debits from consumer bank accounts; falsely threatening car repossession; and deceptively manipulating Caller ID. Because for many of its accounts CPS is a creditor, the complaint charges these practices violated Section 5 of the FTC Act. For those accounts where CPS is a debt collector, the complaint charges these practices violated the FDCPA.

CPS is also charged with failure to establish and implement reasonable written procedures and failure to reasonably investigate and respond timely to consumer disputes under the Furnisher Rule.

Under the order, the company will begin sending refunds to consumers and adjusting affected account balances within 90 days. Consumers with questions about their elgibility for a refund or account adjustment should contact CPS directly via telephone at 1-888-806-2367, email FTCsettlement@consumerportfolio.com, or visit the company’s website.

The FTC provides information for businesses regarding debt collection and the Furnisher Rule. For consumers, the FTC has resources on credit and loans and dealing with debt.

The Commission vote to authorize the staff to refer the complaint to the Department of Justice, and to approve the proposed consent decree, was 4-0-1, with Commissioner Terrell McSweeny not participating. The DOJ filed the complaint and proposed consent decree on behalf of the Commission in the Central District of California on May 28, 2014. The proposed consent decree is subject to court approval.

NOTE: The Commission authorizes the filing of 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. Consent decrees have the force of law when signed by the District Court judge.

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.