PRESIDENT OBAMA'S REMARKS AT MEETING OF CENTRAL AND EASTERN EUROPEAN LEADERS

FROM:  THE WHITE HOUSE 

Remarks by President Obama Before a Meeting with Central and Eastern European Leaders

Koniecpolski Palace
Warsaw, Poland

3:24 P.M. CET

PRESIDENT OBAMA:  Well, thank you very much.  Good afternoon. And along with President Komorowski, I’m very pleased to welcome our outstanding allies from across Central and Eastern Europe.  We have done this before in Prague and on my last visit to Warsaw.  And I want to thank my fellow leaders for being here.

As the President indicated, this 25th anniversary of Polish freedom reminds us of the transformation that’s taken place all across the region.  The countries represented here have all undertaken hard reforms, have built democratic institutions, have delivered greater prosperity for their citizens, and underlying this progress is the security guarantee that comes from NATO membership.  We’re here today because as NATO allies we have to stand absolutely united in our Article 5 commitments to collective defense.  We stand together always. 

And as I’ve said throughout the day and previously back home, I continue to believe that NATO is the cornerstone foundation of U.S. security, not just European security.  Now, given Russia’s actions in Ukraine, NATO has increased its presence across the region from the Baltic to the Black Sea.  I thank our allies for the contributions they’re making, and I’ll be discussing the initiative that I announced today to bolster the U.S. presence in Europe. 

A number of countries represented here have already committed to increasing their investments in our collective defense, and today we’ll be discussing additional steps that we can take both as individual nations and as an alliance to make sure we have the capabilities that we need.  I expect that we’ll also have an opportunity to discuss how Europe, especially Central and Eastern Europe, can continue to diversify its energy sources.  The United States will be exporting more natural gas to the global market in the years to come.  But more immediately, there are steps that we can take together to reduce energy risks, upgrade our energy infrastructure and improve efficiency. 

So, again, I want to thank our fellow leaders for being here today.  I think their presence sends a powerful message that as NATO allies, we stand as one.  Citizens across Central and Eastern Europe need to know that what you’ve built over the last 25 years no other nation can take away. 

So, again, thank you, President Komorowski, for your hospitality.  And I think once the press clears the room, we can get the meeting started. 

END          
3:27 P.M. CET

REMARKS: PRESIDENT OBAMA AND POLAND'S PRIME MINISTER TUSK

FROM:  THE WHITE HOUSE 

Remarks by President Obama and Prime Minister Tusk of Poland

Chancellery of the Prime Minister
Warsaw, Poland

2:25 P.M. CET

PRIME MINISTER TUSK:  (As interpreted.)  Mr. President, I’m very happy that again here in Warsaw we had the opportunity to talk about Polish-American relations.  And with great satisfaction, I observed that so much has changed around us, but our relations and the nature of our relations remain the same -- it remains so very good and of such fundamental significance as it was in the past when we spoke for the first time.

It was no coincidence in the fact that we began our meeting with my thanks to the very speedy and also very effective reaction of the United States to the Ukrainian crisis.  And we’re talking about the American reaction to the very situation in the region, but also in terms of support for Poland, which is both political -- and we do remember that on this key day, when Crimea was subject to annexation, we remember the visit of Vice President Biden here to Warsaw, but we also highly appreciate your practical decisions about the support given to the Polish defense capabilities.  And for that we’re truly thankful, because that’s not always so frequent in contemporary times.

We’ve exchanged information of our strategic cooperation.  I informed Mr. President about our readiness and something that President Komorowski has also mentioned about our readiness to strengthen the Polish defense capabilities.  We will also try to convince our European allies -- also at the meeting at the NATO Summit in Wales – we’ll try to convince them to a common European effort for a common European defense and solidarity.

It was with great satisfaction that we welcome the announcement of Mr. President about the readiness to increase the engagement and the plus-billion dollars dedicated to this part of the world.  It was also with satisfaction that I heard from Mr. President this is just another step and that this is not the end, and that in terms of the strategic perspective we will continue to talk about the evermore intense cooperation and presence in this part of Europe -- the presence of NATO in this part of Europe.

Our relations really, really do not require any repair, so we really did not have the need to talk about Polish-American relations.  But our opinions about Ukraine and the situation in the entire region, and also in terms of energy cooperation, these opinions are in line.  I’ve informed Mr. President about our Polish mission of the European energy union so as to increase the independence of Europe in terms of a single energy supply point.  And I think that is also a domain where we see possibilities of practical cooperation.  And I’m very happy that Mr. President has also declared his personal engagement so as to increase this possibility of energy diversification in Europe.

Again, thank you very much, Mr. President.  I did say at the beginning that a friend in need is a friend indeed.  And I reiterate I’m sure that the experiences of recent months and also our talks here on the symbolic date of our 25th anniversary of freedom, these talks were not just symbolic and were not referring to the history.  And I think that this is the most important thing in our relations -- that we appreciate the same values and we like the same symbols, but at the same time we both want to go in the similar direction.  And the United States is the best partner we could ever imagine.

Thank you so very much, Mr. President. 

And now, Mr. President.

PRESIDENT OBAMA:  Dzień dobry.  I want to thank you, Prime Minister Tusk, for your warm welcome.  It’s good to be back in this hall.  I’ve said a lot today already about why we think Poland is so important, why the alliance between the United States and Poland is so important, but perhaps during my remarks here I can say a little bit about why the economic progress that we’ve seen in Poland is so important.  Economic growth wasn’t inevitable just because Poland achieved its political freedom.  It wasn’t easy.  Reforms here in Poland have been hard and have not been without sacrifice.  But as you drive through Warsaw, you see that Poland is a country on the move, one with one of the largest and fastest-growing economies in Europe, a manufacturing powerhouse, and a hub of high-tech innovation. 

In fact, the last time I was here, Donald gave me a gift -- the video game developed here in Poland that’s won fans the world over, “The Witcher.”  I confess, I’m not very good at video games, but I’ve been told that it is a great example of Poland’s place in the new global economy and it’s a tribute to the talents and the work ethic of the Polish people, as well as the wise stewardship of Polish leaders, like Prime Minister Tusk.

As I did with President Komorowski, I reiterated to the Prime Minister our rock-solid commitment to Poland’s security, outlined for him the announcement I made earlier today about bolstering security to our NATO allies in Eastern Europe, and made clear that the United States is ready to deepen our defense cooperation as Poland modernizes its military.

As the Prime Minister indicated, we spent a lot of time on Ukraine.  Mr. Prime Minister, you’ve been a strong voice in conveying Poland’s solidarity to the Ukrainian people.  And Poland has been a great partner to Ukrainian civil society groups, and Polish diplomacy has played a critical role earlier this year in preventing even more violence. 

Poland is joining us in providing Ukraine with critical economic assistance.  And my conversation with the Prime Minister illustrated again that our countries are absolutely united in the need to stand with the Ukrainian people as they move forward, and that is not just with respect to their territorial integrity and security, but also with respect to the kinds of economic reforms that are going to be needed. 

As Ukrainians undertake the hard work of political and economic reform, Poland is going to have an important role to play in sharing the lessons of its own success, as Poland has with other countries in Eastern Europe and Central Europe and around the world. 

And one of the areas we discussed was energy.  Obviously, this has created significant vulnerabilities throughout Europe, particularly Eastern and Central Europe.  And we highlighted the need for greater energy security in Europe, which Prime Minister Tusk has championed, but we also agreed that it’s going to be critical for Ukraine to embark on effective efforts to reform its energy sector and diversify its supply of natural gas.  Just to give one example, Ukraine’s economy requires about three times as much energy to produce the same amount of output as Poland’s does.  And it’s very hard for Ukraine then to be competitive and to be successful if, in fact, it is that inefficient when it comes to energy.  So these are areas where I think we can make great progress.  Donald’s ideas on how Europe can reduce its energy risks by diversifying, investing in renewables, and upgrading energy infrastructure are ones that I think are important for everybody to listen to.

Poland is, for example, making an important investment that will allow the world’s liquefied natural gas, LNG, to travel to Europe.  For our part, the United States has already approved licenses for natural gas exports, which will increase global supplies and thereby benefit partners here in Europe.  I also mentioned to the Prime Minister the importance of the Transatlantic Trade and Investment Partnership, T-TIP, the trade agreement that we are negotiating currently between the United States and Europe.

Poland has been a supporter of an ambitious T-TIP agreement.  And I indicated to him one of the benefits of a strong trade agreement is that it is much easier for me to approve natural gas exports to countries with which we already have a free trade agreement. 

So, last point -- we discussed in the context of energy the issue of climate change.  The United States just took major steps to propose new standards that would result in significant reductions in carbon emissions from our power plants.  This has to be a global effort.  Poland hosted a successful U.N. climate summit conference last year.  As we work to shape a strong global climate agreement this year -- or next year, rather -- it’s important for the United States and the EU to set an example by committing to ambitious goals to reduce emissions beyond 2020.  And if we’re thinking seriously about energy diversification, energy efficiency, we can combine those two efforts in ways that make us not only more politically secure and economically secure but also more environmentally secure. 
                                            
So let me just thank once again Prime Minister Tusk for his outstanding leadership, and let me thank the Polish people for their outstanding example.  I’m confident that the friendship that we’ve established over the years will only be strengthened.   And although it’s wonderful to have friends when things are going good, the Prime Minister is absolutely right that it’s especially important to have friends when things are tough.  And we don’t have a better friend anywhere in the world than Poland.  So we’re grateful for that.

Thank you.

END               
2:32 P.M. CET

REMARKS: PRESIDENT OBAMA AND POLAND'S PRESIDENT KOMOROWSKI

FROM:  THE WHITE HOUSE 

Remarks by President Obama and President Komorowski to U.S. and Polish Armed Forces

 Okecie Military Airport
Warsaw, Poland

10:03 A.M. CET 

PRESIDENT KOMOROWSKI:  (As interpreted.)  Mr. President, ladies and gentlemen, it is a great honor for me to be able to welcome the President of the United States here to the airport against the background of the F-16 aircraft -- Polish and American aircraft. 

It is [a] very significant symbol of Polish-American military cooperation.  This symbol has a long history that is enough to remember the Kościuszko.  Mr. President, you just visited West Point; there’s a beautiful monument to the Kościuszko there.  And it is also a reminder of the special brotherhood in arms that goes back to the 18th century; I’m talking about the Polish-American brotherhood in arms.

Here, because of the F-16s here, I would like to remind you that we have already had an opportunity to host American pilots in the Polish skies.  It was at a very important moment in Poland -- it was back in 1920 when the first Polish squadron was fighting against the Bolshevik wave, and it was established on the basis of the American pilots, mainly those of Polish origin from Chicago and other American towns.  But these were American pilots. 

That is why it is important for us to be able to really mark the lasting Polish-American brotherhood in arms.  And I think that F-16 -- while “F” can stand for fighter, but “F” can also stand for freedom, Mr. President.  And I’m convinced that it matches perfectly well the 25th anniversary of Poland regaining its freedom, and it’s really worthwhile being strengthened and to become a permanent, stable element to make Poland secure and safe -- the security of Poland and the whole region.  It is also about Polish-American cooperation; it is also about the presence of American troops in Poland, in the Polish territory at the time when we are all experiencing this crisis that is unfolding just across Poland’s border, just across the border of the North Atlantic Treaty Organization, in Ukraine.

Mr. President, once again, thank you very much for coming here, and thank you very much for the opportunity to mark together the lasting Polish-American brotherhood in arms.

PRESIDENT OBAMA:  Dzień dobry!  Good morning, everybody.  And thank you, Mr. President, for the kind words.  It is wonderful to be back in Poland, one of our great friends and one of our strongest allies in the world. 

It is a special honor to be here as Poles celebrate the 25th anniversary of the rebirth of Polish democracy.  And this year also marks the 15th anniversary of Poland’s membership in NATO.  I’m starting the visit here because our commitment to Poland’s security, as well as the security of our allies in Central and Eastern Europe, is a cornerstone of our own security and it is sacrosanct.  

And during my visit here three years ago, I said that the United States would increase our commitment to Poland’s security.  The United States honors our commitments, which you see in the aviation detachment at Łask Air Base.  It is a commitment that is particularly important at this moment in time. 

We just had a chance to meet some outstanding service members -- both Americans and Poles -- who serve and train here together.  They’re part of the backbone of an alliance and part of the long history, as Mr. President alluded to, of Poles and Americans standing shoulder to shoulder for freedom.  And we are so grateful to all of you for your service. 

Given the situation in Ukraine right now, we’ve also increased our American presence.  We’ve begun rotating additional ground troops and F-16 aircraft into Poland.  And this is going to help our forces train together.  This is going to help our forces support NATO air missions.  It’s also part of NATO’s stepped-up presence across Central and Eastern Europe.  And I look forward to announcing some additional steps later today.

So, President Komorowski, it is wonderful to be here.  I want to thank you and the Polish people for welcoming me.  As friends and as allies, we stand united, together and forever -- na zawsze razem.  Thank you so much. 

END
10:08 A.M. CET

RECENT U.S. AIR FORCE PHOTOS

FROM:  U.S. AIR FORCE 

Capt. John Cummings executes a maneuver during a solo demonstration May 21, 2014, at Langley Air Force Base, Va. Local media outlets were invited to watch as the F-22 Raptor demonstration team prepares for the Virginia Beach Oceanfront Air Show and Patriotic Festival held May 30 through June 1. Cummings is a 1st Fighter Wing F-22 pilot. (U.S. Air Force photo/Senior Airman Kayla Newman)

Police Week:  Military Working Dog Breston subdues a simulated uncooperative suspect during a K-9 competition May 17, 2014, at Scott Air Force Base, Ill. The K-9 competition brought together military and civilian working dogs to showcase the dogs' skills. Breston is a MWD with the 375th Security Forces Squadron. (U.S. Air Force photo/Senior Airman Sarah Hall-Kirchner)

HHS HAS NEW DATA, TOOLS TO INCREASE HOSPITAL UTILIZATION TRANSPARENCY

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

HHS releases new data and tools to increase transparency on hospital utilization and other trends

Data can help improve care coordination and health outcomes for Medicare beneficiaries

With more than 2,000 entrepreneurs, investors, data scientists, researchers, policy experts, government employees and more in attendance, the Department of Health and Human Services (HHS) is releasing new data and launching new initiatives at the annual Health Datapalooza conference in Washington, D.C.

Today, the Centers for Medicare & Medicaid Services (CMS) is releasing its first annual update to the Medicare hospital charge data, or information comparing the average amount a hospital bills for services that may be provided in connection with a similar inpatient stay or outpatient visit. CMS is also releasing a suite of other data products and tools aimed to increase transparency about Medicare payments. The data trove on CMS’s website now includes inpatient and outpatient hospital charge data for 2012, and new interactive dashboards for the CMS Chronic Conditions Data Warehouse and geographic variation data. Also today, the Food and Drug Administration (FDA) will launch a new open data initiative. And before the end of the conference, the Office of the National Coordinator for Health Information Technology (ONC) will announce the winners of two data challenges.

“The release of these data sets furthers the administration’s efforts to increase transparency and support data-driven decision making which is essential for health care transformation,” said HHS Secretary Kathleen Sebelius.

“These public data resources provide a better understanding of Medicare utilization, the burden of chronic conditions among beneficiaries and the implications for our health care system and how this varies by where beneficiaries are located,” said Bryan Sivak, HHS chief technology officer. “This information can be used to improve care coordination and health outcomes for Medicare beneficiaries nationwide, and we are looking forward to seeing what the community will do with these releases. Additionally, the openFDA initiative being launched today will for the first time enable a new generation of consumer facing and research applications to embed relevant and timely data in machine-readable, API-based formats."

2012 Inpatient and Outpatient Hospital Charge Data

The data posted today on the CMS website provide the first annual update of the hospital inpatient and outpatient data released by the agency last spring. The data include information comparing the average charges for services that may be provided in connection with the 100 most common Medicare inpatient stays at over 3,000 hospitals in all 50 states and Washington, D.C. Hospitals determine what they will charge for items and services provided to patients and these “charges” are the amount the hospital generally bills for those items or services.

With two years of data now available, researchers can begin to look at trends in hospital charges. For example, average charges for medical back problems increased nine percent from $23,000 to $25,000, but the total number of discharges decreased by nearly 7,000 from 2011 to 2012.

In April, ONC launched a challenge – the Code-a-Palooza challenge – calling on developers to create tools that will help patients use the Medicare data to make health care choices. Fifty-six innovators submitted proposals and 10 finalists are presenting their applications during Datapalooza. The winning products will be announced before the end of the conference.

Chronic Conditions Warehouse and Dashboard

CMS recently released new and updated information on chronic conditions among Medicare fee-for-service beneficiaries, including:

Geographic data summarized to national, state, county, and hospital referral regions levels for the years 2008-2012;

Data for examining disparities among specific Medicare populations, such as beneficiaries with disabilities, dual-eligible beneficiaries, and race/ethnic groups;
Data on prevalence, utilization of select Medicare services, and Medicare spending;

Interactive dashboards that provide customizable information about Medicare beneficiaries with chronic conditions at state, county, and hospital referral regions levels for 2012; and Chartbooks and maps.

These public data resources support the HHS Initiative on Multiple Chronic Conditions by providing researchers and policymakers a better understanding of the burden of chronic conditions among beneficiaries and the implications for our health care system.

Geographic Variation Dashboard

The Geographic Variation Dashboards present Medicare fee-for-service per-capita spending at the state and county levels in interactive formats. CMS calculated the spending figures in these dashboards using standardized dollars that remove the effects of the geographic adjustments that Medicare makes for many of its payment rates. The dashboards include total standardized per capita spending, as well as standardized per capita spending by type of service. Users can select the indicator and year they want to display. Users can also compare data for a given state or county to the national average. All of the information presented in the dashboards is also available for download from the Geographic Variation Public Use File.

Research Cohort Estimate Tool

CMS also released a new tool that will help researchers and other stakeholders estimate the number of Medicare beneficiaries with certain demographic profiles or health conditions. This tool can assist a variety of stakeholders interested in specific figures on Medicare enrollment. Researchers can also use this tool to estimate the size of their proposed research cohort and the cost of requesting CMS data to support their study.

Digital Privacy Notice Challenge

ONC, with the HHS Office of Civil Rights, will be awarding the winner of the Digital Privacy Notice Challenge during the conference. The winning products will help consumers get notices of privacy practices from their health care providers or health plans directly in their personal health records or from their providers’ patient portals.

OpenFDA

The FDA’s new initiative, openFDA, is designed to facilitate easier access to large, important public health datasets collected by the agency. OpenFDA will make FDA’s publicly available data accessible in a structured, computer readable format that will make it possible for technology specialists, such as mobile application creators, web developers, data visualization artists and researchers to quickly search, query, or pull massive amounts of information on an as needed basis. The initiative is the result of extensive research to identify FDA’s publicly available datasets that are often in demand, but traditionally difficult to use. Based on this research, openFDA is beginning with a pilot program involving millions of reports of drug adverse events and medication errors submitted to the FDA from 2004 to 2013. The pilot will later be expanded to include the FDA’s databases on product recalls and product labeling.

TWO PLEAD GUILTY IN CONSPIRACY TO LAUNDER BRIBE MONEY RECEIVED IN AFGHANISTAN

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, May 28, 2014
Two Individuals Plead Guilty to Conspiring to Launder Bribes Received in Afghanistan

Two individuals have pleaded guilty for their roles in a scheme to launder approximately $250,000 in bribes received from Afghan contractors in Afghanistan.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney for the Western District of Tennessee Edward L. Stanton III and United States Attorney for the Eastern District of Tennessee William C. Killian made the announcement.

Jimmy W. Dennis, 44, formerly of Clarksville, Tennessee, and a former First Sergeant with the U.S. Army, pleaded guilty before U.S. District Court Judge Samuel H. May Jr. of the Western District of Tennessee to conspiracy to launder approximately $250,000 in bribe payments he received from Afghan contractors in Afghanistan.   Sentencing is scheduled for Sept. 4, 2014.

James C. Pittman, 45, of Rossville, Georgia, pleaded guilty last Thursday before U.S. Magistrate Judge William B. Carter of the Eastern District of Tennessee for his role in this conspiracy.   Sentencing is scheduled for Sept. 8, 2014.

According to pleadings filed at the time of the guilty pleas, from March 2008 through March 2009, Dennis was an Army Sergeant assigned as a paying agent in the Humanitarian Aid Yard (HA Yard) at Bagram Air Field, Afghanistan.   Dennis was a member of the team in the HA Yard that purchased supplies from local Afghan vendors for distribution as part of the Commander’s Emergency Response Program for urgent humanitarian relief requirements in Afghanistan.   Dennis and a partner entered into an agreement to steer contracts to certain Afghan vendors in return for approximately $250,000 in cash bribes.

Further according to court pleadings, Dennis smuggled the bribe money back to the United States hidden in packages addressed to his wife, his father and a former Army friend, Pittman.   Dennis sent $80,000 to $100,000 to his father from Afghanistan in packages that contained toy “jingle trucks,” colorfully decorated trucks or buses in Afghanistan and Pakistan.   Dennis hid the money in the rear compartment of the toy trucks.   Dennis also shipped a hope chest to his father containing approximately $100,000 in cash in a concealed compartment.

Also according to court documents, while on leave, Dennis met with Pittman, advised him that he had obtained money through kickbacks, and asked him for help laundering the funds.   Pittman, owner of a landscaping business, agreed to “run through his company” these bribery proceeds.  After returning to Afghanistan, Dennis sent approximately $60,000 to Pittman contained in toy jingle trucks.   Dennis also arranged for his father to send approximately $20,000 to Pittman, who returned it in the form of purported salary checks from Pittman’s company.

These matters are being investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, the Army Criminal Investigative Division, the Defense Criminal Investigative Service, and the Air Force Office of Special Investigation.   The prosecution is being handled by Trial Attorney Daniel Butler of the Criminal Division and Assistant U.S. Attorneys Frederick Godwin of the Western District of Tennessee and James Brooks of the Eastern District of Tennessee.

GIFT CARD TEXT SPAMMER ORDERED TO PAY $148,000.

FROM:  FEDERAL TRADE COMMISSION 

FTC Wins Default and Contempt Judgments Against Text Spammer Phil Flora

Found In Violation of Prior FTC Order; Must Pay $148,309 For Latest Scam

Phil Flora, the operator of a text message spamming operation that sent more than 29 million text messages to consumers promising “free” $1,000 Walmart and Best Buy gift cards, has been ordered to pay $148,309 for his involvement in the scam.  Flora, who resides in Orange County, California, has also been found in contempt for violating a prior Federal Trade Commission order.

“When scammers ignore court orders, they do so at their own peril,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “As this case shows, no matter how much scammers may try to hide their involvement, we will work to uncover their role and ensure they give up their ill-gotten gains.”  

In March 2013, the FTC named Flora as a defendant in one of several enforcement actions brought across the country against operators of “free” gift card text messaging scams.  In November 2013, the U.S. District Court for the Central District of California entered a final order and default judgment against Flora for his involvement in the scam.  The final order permanently bans Flora from sending spam text messages and imposes a judgment of $148,309 – an amount equivalent to the money he gained through his illegal scheme.

The court also found Flora in civil contempt because his conduct violated an order from a previous FTC case concerning highly similar illegal practices. In this 2011 case, the FTC alleged that Flora sent millions of unwanted text messages advertising bogus mortgage loan modifications.  The stipulated order settling the 2011 case permanently banned Flora from sending spam text messages.  The court found that Flora had violated this provision through the conduct that led to the FTC’s 2013 case.

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

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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