U.S. FACTSHEET: PROMOTING PEACE IN BURMA

Description:  Map of Burma.  U.S. State Department Image. 

FROM:  U.S. STATE DEPARTMENT 

Promoting Peace in Burma

Fact Sheet

Bureau of Conflict and Stabilization Operations

May 30, 2014

Opportunity

Changes in Burma provide an opening for investment, promoting human rights, and political and economic reform. These opportunities hinge on building an inclusive political system where parties use dialogue, not violence, to address ethnic identity and reconciliation issues. Longstanding conflicts between the central government and ethnic minorities as well as recent flare-ups of communal violence in areas such as Rakhine State threaten a lasting peace. The U.S. government can help break cycles of violence, particularly in high-risk ethnic minority strongholds, to advance national reconciliation and a lasting political solution between the Government of Burma and diverse ethnic and religious groups.

How CSO Works

CSO supports Department of State conflict prevention and crisis response efforts through locally grounded analysis, strategic planning, and operational support for local partners. CSO deploys civilian talent at the subnational level to catalyze local efforts to build civilian security and connect program implementation to policymaking.


ObjectivesCSO in Burma 

In Burma, CSO officers provide conflict and reconciliation expertise to Embassy Rangoon, focusing particularly on Rakhine State, trust-building through humanitarian mine action, and the peace process. In Washington, a CSO team advises the Department of State on Burma’s peace and reconciliation processes as well as on local conflict.

Support efforts to reduce violence and build community relations, especially in Rakhine State.

Build trust between ethnic groups and the government through issues of common concern, including landmines.

Empower civil society to participate more fully in peace-related initiatives.
U.S. Support for Violence Reduction: CSO contributes to U.S. efforts to reduce violence and strengthen community relations.

Increase U.S. Government understanding of ethnic minority groups’ priorities and concerns. CSO helps the Embassy sharpen U.S. understanding of states facing ethnic armed conflict, increase engagement and trust with ethnic nationalities, and demonstrate U.S. support for the vulnerable, particularly in Rakhine State.
Help shape U.S. Government approaches that support Embassy Rangoon’s mission goals. CSO’s conflict analysis, strategic planning, and violence prevention recommendations are incorporated into post’s approaches.

Facilitate donor and diplomatic coordination. CSO helped establish regular donor meetings to coordinate humanitarian mine action and reinforce conflict-sensitive approaches.

Build Trust: The government, army, civil society, and ethnic minorities share a common interest in reducing the number of landmines. CSO supports the Department of State’s Bureau of Political-Military Affairs and Embassy efforts to use mine-risk education and survivor assistance to build trust and support positive interactions between civilians and the military in ethnic states.

Build momentum for mine risk education and survivor assistance as a trust-building tool.

In coordination with the Kayah State government and armed groups, CSO is facilitating small grants to community-based organizations so they can identify and develop landmine-related projects.

In May 2013, CSO convened Burmese Government officials, armed groups, and civil society in Kayah State to build broader community dialogue around mine action.

In May 2013, CSO organized a workshop for journalists to improve the accuracy of conflict coverage and cast mine action as a contributor to national reconciliation.

In an October 2012 speech, the U.S. Ambassador reinforced to mine action organizations and the Government of Burma that humanitarian mine action should be inclusive, conflict-sensitive, and coordinated.

Advance Mine Risk Education and Survivor Assistance. In cooperation with a number of Department of State and USAID offices, including the Bureau of Political-Military Affairs and the Bureau of Population, Refugees, and Migration, CSO facilitated the obligation of $3 million to build trust and strengthen civil society around mine risk education and survivor assistance.
Empower Civil Society:

Strengthen civil society’s ability to engage in peace-related initiatives. CSO helped organize a “TechCamp” in January 2014 to introduce local civil society, including members of ethnic minority groups, to new technologies that should strengthen their ability to mitigate conflict.

Empower women and marginalized groups. Through roundtables, CSO helped to advance gender equality and disabled people’s rights and inclusion in conflict resolution.

SEC CHARGES BROKERAGE FIRM WITH IMPROPER USE OF TRADER CONFIDENTIAL INFORMATION

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission charged a New York-based brokerage firm that operates a dark pool alternative trading system with improperly using subscribers’ confidential trading information in marketing its services.

Regulations require an alternative trading system (ATS) to establish and enforce safeguards and procedures to protect the confidential trading information of its subscribers.  Among them is limiting access to subscribers’ data to employees who operate the ATS or have a direct compliance role.

An SEC investigation found that Liquidnet Inc. violated its regulatory obligations and its own promises to its ATS subscribers during a nearly three-year period when it improperly allowed a business unit outside the dark pool operation to access the confidential trading data.  Employees in that unit used the confidential information about Liquidnet’s dark pool subscribers during marketing presentations and various communications to other customers.  Liquidnet also used subscribers’ confidential trading information in two ATS sales tools that it devised.

SEC examiners spotted potential data access problems during an examination of Liquidnet and referred the matter to the Enforcement Division for further investigation.  Liquidnet has agreed to settle the SEC’s charges and pay a $2 million penalty.

“Dark pool operators violate the law when they fail to protect the confidential trading information that their subscribers entrust to them, as Liquidnet did here when it used this confidential information to try to expand its business,” said Andrew J. Ceresney, director of the SEC Enforcement Division.  “We will continue to aggressively police broker-dealers who operate an ATS and fail to rigorously ensure the protection of confidential trading information.”

According to the SEC’s order instituting a settled administrative proceeding, Liquidnet’s core business is operating a block-trading dark pool for large institutional investors.  Liquidnet has represented to its dark pool subscribers that it would keep their trading information confidential and allow them to trade with maximum anonymity and minimum information leakage.  In an effort to find additional sources of liquidity for its dark pool, Liquidnet launched an Equity Capital Markets (ECM) desk in 2009 to offer block execution services to corporate issuers and control persons of corporate issuers as well as private equity and venture capital firms looking to execute large equity capital markets transactions with minimal market impact.

The SEC’s order finds that Liquidnet provided ECM employees with access to the confidential trading information of dark pool subscribers from 2009 to late 2011, and they used it to market ECM’s services.  For example, ECM employees would provide issuers with descriptions of ATS subscribers who had recently indicated interest in buying or selling shares of issuers’ stock.  These descriptions included the geographic locations, approximate assets under management, and investment styles of those dark pool subscribers.  ECM employees used dark pool subscribers’ trading data to advise issuers about which institutional investors they should meet during investor conferences or non-deal roadshows.  They also used dark pool subscriber data to advise ECM customers when they should execute transactions in the ATS given the liquidity the ECM employees could see in the dark pool.

“Liquidnet’s subscribers trusted and believed that the firm was safeguarding their confidential information,” said Daniel M. Hawke, chief of the SEC Enforcement Division’s Market Abuse Unit.  “Instead, the firm breached its assurances of confidentiality and anonymity to them by allowing its ECM employees to improperly access subscriber trading data.”

According to the SEC’s order, Liquidnet also improperly used the confidential trading data of dark pool subscribers in two ATS sales tools.  Liquidnet created “ships passing” alerts that alerted ATS sales employees to missed execution opportunities between subscriber algorithmic orders and subscriber indications.  The firm also developed an application called Aqualytics, which identified subscribers to be contacted about Liquidnet’s recent dominance in certain stocks.

The SEC’s order charges Liquidnet with violating Section 17(a)(2) of the Securities Act of 1933, which prohibits obtaining money or property by means of materially false or misleading statements in the offer or sale of securities.  Liquidnet also violated Rule 301(b)(2) of Regulation ATS, which requires that an ATS file certain amendments on Form ATS with the SEC, as well as Rule 301(b)(10) of Regulation ATS, which requires an ATS to establish adequate safeguards and procedures for protecting confidential trading information of its subscribers.  Without admitting or denying the findings, Liquidnet consented to the SEC’s order, which censures the firm and requires it to pay the $2 million penalty and cease and desist from committing the violations.

The SEC’s investigation was conducted by Simona Suh, Stephen A. Larson, and Mandy B. Sturmfelz of the Market Abuse Unit and Thomas P. Smith Jr. and Jordan Baker of the New York Regional Office.  The case was supervised by Amelia A. Cottrell of the New York office.  The SEC examiners who conducted the examination of Liquidnet that led to the investigation were June Reinertsen, Maggie Simmermon, Ronald Sukhu, Ilan S. Felix, and Richard A. Heaphy of the New York office.  The SEC appreciates the cooperation of the Financial Industry Regulatory Authority.

WHITE HOUSE FACT SHEET ON EUROPEAN REASSURANCE INITIATIVE

FROM:  THE WHITE HOUSE 

FACT SHEET: European Reassurance Initiative and Other U.S. Efforts in Support of NATO Allies and Partners

Since early March, the United States has taken action, both bilaterally and through NATO, to reassure allies of our solemn commitment to their security and territorial integrity as members of the NATO Alliance.  A persistent U.S. air, land, and sea presence in the region, especially in Central and Eastern Europe, is a necessary and appropriate show of support to allies who have contributed robustly and bravely to Alliance operations in Afghanistan and elsewhere and who are now deeply concerned by Russia’s occupation and attempted annexation of Crimea and other provocative actions in Ukraine.  The United States stands by its allies, as they have stood by us.  We will continue to take actions that increase the capability, readiness, and responsiveness of NATO forces to address any threat and that aid in deterring further destabilizing activities.  That is why the President today called on Congress to support a European Reassurance Initiative of up to $1 billion, which will enable us in the next year to undertake measures to:

• Increase exercises, training, and rotational presence across Europe but especially on the territory of our newer allies.  Many of the U.S. air and ground forces participating in these activities would rotate from the United States.
• As we have done in Poland, deploy detachments of U.S. planners to augment the capability of our allies to design and host a broad range of training and exercise opportunities.
• Increase the responsiveness of U.S. forces to reinforce NATO by exploring initiatives such as the prepositioning of equipment and improvements to other reception facilities and infrastructure in Europe.
• Increase participation by the U.S. Navy in NATO naval force deployments, including more persistent deployments to the Black and Baltic seas.
• Build the partner capacity of close friends such as Georgia, Moldova, and Ukraine so they can better work alongside the United States and NATO, as well as provide for their own defense.

This initiative will build on existing tools and authorities and will be included in the Department of Defense’s FY 2015 Overseas Contingency Operations (OCO) request to Congress.

In addition to this initiative, we are reviewing our force presence in Europe in light of the new security challenges on the continent.  These efforts will not come at the expense of other defense priorities, such as our commitment to the Asia Pacific rebalance.

With current funding, the United States and NATO have already undertaken the following specific efforts, which are indicative of the types of activities we would seek to maintain and expand with the European Reassurance Initiative:

New U.S. Measures

• Land Force Deployments:  In April, approximately 600 paratroopers from the 173rd Airborne Brigade deployed for training rotations in Estonia, Latvia, Lithuania, and Poland to enhance ongoing military-to-military relationships and demonstrate assurance of America's commitment to its NATO allies.  These exercises are part of a series of expanded American land force training activities with European partners that are scheduled to take place over the next few months and beyond.
• Maritime Deployments:
  • In early April, the United States deployed the USS Donald Cook to the Black Sea, where the ship conducted operations to improve interoperability, increase readiness, and develop professional relationships with allies.  The Donald Cook conducted presence operations and a port visit in Constanta, Romania, as well as an exercise with the Romanian Navy before departing the Black Sea on April 24.
  • From April 24 through May 12, the USS Taylor, the U.S. contribution to the Standing NATO Maritime Group, was deployed to the Black Sea, where she conducted bilateral operations with Romania and Georgia, including port visits to both countries.
  • The USS Vella Gulf entered the Black Sea May 23 to conduct operations to promote peace and stability in the region.  Highlights to date include an exercise with the Turkish Navy, a port visit in Batumi, Georgia, and combined maritime training with allied naval forces.
• Air Deployments:
  • Poland Aviation Detachment (AVDET) Training:  Quarterly rotations of military aircraft and airmen through the Aviation Detachment began in late 2012, and in March 2014 the United States augmented the rotations with additional F-16s and support airmen.  These F-16s and airmen provide a persistent presence in Poland and enhance training and operability with the Polish Air Force.  Three C-130J aircraft deployed to Powidz Air Base, Poland, on March 31 as part of a regularly scheduled two-week AVDET rotation.
  • Air-to-Air Refueling Missions:  Since mid-March, the United States has been flying refueling missions in support of NATO Airborne Warning and Control System (AWACS) flights over Poland and Romania.
  • Open Skies Treaty Flight:  On March 14 the United States conducted -- at Ukraine’s request -- an Open Skies observation mission over Ukraine.

 Preplanned but Enhanced U.S. Measures

•  The USS Truxtun entered the Black Sea through the Turkish Straits on March 7 to conduct port calls in Constanta, Romania, and conduct an exercise with Romanian and Bulgarian naval forces.  The Truxtun’s stay in the Black Sea was extended so that she could visit the Port of Varna, Bulgaria, to hold an onboard maritime planning conference with Bulgarian and Romanian officers and conduct a second exercise.
• NATO Air Policing:  On March 6, the United States deployed an additional six F-15Cs to augment the four F-15Cs already in Lithuania filling a NATO peacetime requirement to have quick reaction interceptor aircraft “ramp-ready” for a four-month period to ensure the integrity of the airspace above Estonia, Latvia, and Lithuania.  The U.S. rotation began in January and ended in early May.  Poland, with augmentation from the United Kingdom, France, and Denmark, took over the air policing task in the Baltic region, and Canada deployed aircraft to augment NATO air policing in Southeast Europe.

United States Ongoing/Steady State Measures

• U.S. Force Presence:  There are approximately 67,000 service members in Europe.  Approximately 57,000 active duty service members are assigned to U.S. European Command, and approximately 10,000 support other organizations, such as U.S. Africa Command.
• NATO Response Force (NRF) Commitment:  The United States has pledged several thousand service members to the NRF, including a brigade combat team from the Texas-based 1st Cavalry Division, a hospital ship, air-to-air refueling tankers, and escort ships.
• Army Rotational Forces:  The United States sends a battalion-sized unit from the United States to Europe twice a year for up to two months per rotation.  One of these battalions recently participated in NRF exercise ROCHAMBEAU in France and is currently participating in U.S. European Command-hosted multinational exercise COMBINED RESOLVE II.  Additionally, elements of the unit participated in NATO Exercise STEADFAST JAZZ this past November.
• Missile Defense / European Phased Adaptive Approach:  The U.S. contribution to European missile defense, whose aim is to protect against emerging threats from outside of the Euro-Atlantic area, includes a missile defense radar in Turkey, plans for four Aegis destroyers to be forward deployed in Rota, Spain (the first, the USS Donald Cook, arrived in February), and two planned Aegis Ashore sites -- one in Romania (2015) and one in Poland (2018).
• Black Sea Rotational Forces (BSRF):  This force, based out of Mihail Kogalniceanu (MK) Air Base, Romania, includes 250 Marines and sailors tasked with maintaining positive relations with partner nations, enhancing regional stability, and increasing interoperability while providing the capability for rapid crisis response in the Black Sea, Balkan, and Caucasus regions.  In May, BSRF personnel participated in exercise PLATINUM LYNX, an infantry field training with the Romanian military to enhance familiarity and interoperability between U.S. and Romanian forces.  Additional U.S. forces in Romania not associated with the BSRF include:
  • 500 U.S. troops permanently stationed at MK Air Base conducting transit center operations; and   
  • 175 U.S. Marines temporarily based out of MK Air Base as part of the Special Purpose Marine Air-Ground Task Force (SPMAGTF).  The SPMAGTF is postured to respond to a broad range of military operations in Africa and Europe, including fixed-site security, non-combatant evacuation operations, humanitarian assistance and disaster relief operations, tactical recovery of aircraft and personnel, theater security cooperation, and other missions as directed. 
• Exercises in the Baltic Sea and Poland:  The United States sent U.S. Marines from the Black Sea Rotational Force to the Baltics this April to participate in exercise SUMMER SHIELD.  U.S. forces participated in exercises NAMEJS and FLAMING SWORD in Latvia and Lithuania, respectively, in May and are participating in multilateral exercises BALTOPS and SABER STRIKE in the Baltic region in June.  The United States will also deploy 18 F-16CJs and one KC-135 tanker to Łask Air Base, Poland, concurrent with the SABER STRIKE and BALTOPS exercise.  BALTOPS is an annual, multinational maritime exercise focusing on interoperability, maritime security, and cooperation among Baltic Sea regional partners.  SABER STRIKE is an annual, multinational ground and air exercise focused on enhancing interoperability among U.S. Army units and the land forces of Estonia, Latvia, and Lithuania.

NATO Measures

• Revised Planning:  NATO is updating its defense plans and is developing a readiness action plan that includes a review of joint exercises, threat assessments, intelligence-sharing arrangements, early-warning procedures, and crisis response planning.
• Support to Ukraine:  On March 5, NATO allies decided on a number of measures to intensify NATO’s partnership with Ukraine and strengthen cooperation to support democratic reforms.  Measures included an increased engagement with the Ukrainian civilian and military leadership; strengthened efforts to build the capacity of the Ukrainian military, including with more joint training and exercises; and increased efforts to include Ukraine in multinational projects to develop capabilities.
• Suspension of NATO-Russia Council (NRC) Activities:  At an NRC meeting in April, NATO Foreign Ministers condemned Russian military intervention in Ukraine and suspended staff-level civilian and military meetings with Russia.  Ambassadorial-level meetings of the NRC will continue.
• New Air and Sea deployments:
  • AWACS:  On March 10, the North Atlantic Council approved establishing AWACS orbits over Poland and Romania to enhance NATO’s situational awareness of activities in the region and to reassure NATO allies.  These aircraft will only fly over NATO territory and will come from the NATO fleet and allied contributions.
  • Standing Naval Forces:  In late April, NATO activated Standing NATO Mine Counter-Measures Group One and sent it to patrol the Baltic Sea.  The group, which consists of six ships from Belgium, Estonia, Germany, The Netherlands, Norway, and Poland, is conducting port visits and participated in an annual mine clearance operation (NATO naval exercise OPEN SPIRIT 2014).  On May 12, NATO tasked its augmented Standing NATO Maritime Group One to perform maritime assurance measures alongside counter-terrorism patrols in the eastern Mediterranean.  The group includes five ships from Canada, Germany, Norway, Turkey, and the United States.
• New Exercises:  NATO launched a large-scale exercise, STEADFAST JAVELIN 1, in Estonia on May 16, which tested allied forces on their ability to work together as well as maintaining NATO’s readiness and combat effectiveness.  The exercise reflects NATO’s strong commitment to collective defense in the Baltic region.  Around 6,000 troops from Belgium, Denmark, Estonia, France, Latvia, Lithuania, Poland, the United Kingdom, and the United States participated in the exercise which finished on May 23.  Many participants were already in Estonia taking part in the annual Estonian-led KEVADTORM14 exercise that began on May 5 and that was merged into the NATO-led event.

EX-IM BANK SAYS U.S. EXPORTS REACHED $193.3 BILLION IN APRIL

FROM:  U.S. EXPORT-IMPORT BANK 

U.S. Exports Reach $193.3 Billion in April

 Export-Import Bank Financing Support Helps Create American Jobs

Washington, D.C. – The United States exported $193.3 billion of goods and services in April 2014, according to data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.

“The numbers show that the world’s consumers want U.S. goods and services for their quality and reliability,” said Export-Import Bank Chairman and President Fred P. Hochberg. “Made in America is still the best in the world, and the Ex-Im Bank is proud to play its part in boosting U.S. exporters abroad and supporting jobs here at home.”

Exports of goods and services over the last twelve months totaled $2.3 trillion, which is 45.1 percent above the level of exports in 2009, and have been growing at an annualized rate of 9.0 percent when compared to 2009.

During the same time period among the major export markets (i.e., markets with at least $6 billion in annual imports of U.S. goods), the countries with the largest annualized increase in U.S. goods purchases, when compared to 2009, were Panama (22.7 percent), Russia (18.9 percent), Peru (18.5 percent), Hong Kong (17.9 percent), Colombia (17.6 percent), Argentina (16.4 percent), Ecuador (16.1 percent), Chile (15.5 percent), Indonesia (14.6 percent) and China (14.5 percent).

U.S. CHARGES FORMER BERMUDA REGISTERED SECURITIES TRADER WITH CONSPIRACY

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, June 4, 2014

Conspiracy Charge Filed Against Former Convergex Trader

A former trader for ConvergEx Global Markets Limited (CGM Limited) — a former securities broker-dealer registered in Bermuda — has been charged in the District of New Jersey with conspiracy to commit wire fraud.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Inspector in Charge Philip R. Bartlett from the U.S. Postal Inspection Service (USPIS) made the announcement.

Craig Marshall, 47, of Bermuda, was charged under seal by criminal complaint on May 27, 2014, and he made his initial appearance this morning.

On Dec. 18, 2013, Jonathan Daspin, the head trader at CGM Limited, Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, and CGM Limited all pleaded guilty to conspiracy to commit securities and wire fraud before U.S. District Judge Jose Linares in the District of New Jersey.   On the same day, CGM Limited’s parent company, ConvergEx Group LLC, entered into a deferred prosecution agreement.   Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.

According to the charges, certain ConvergEx Group broker-dealers regularly routed securities orders to CGM Limited in Bermuda so that it could take a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders.   ConvergEx employees referred to such mark-ups and mark-downs as “spread,” “trading profits,” or “TP.”

Also according to charges, to hide the fact that spread had been taken on trades, Marshall, Daspin, Lekargeren, and other employees at ConvergEx Group subsidiaries in Bermuda, New York and London created and sent false transaction reports to clients with fabricated details regarding the execution of orders, including the number of shares involved in a trade, the time at which a trade was executed and the price at which shares were either purchased or sold.   After sending certain clients these false reports, the conspirators took a total of $5,171,394 in spread from them.

The charges allege that Marshall, along with Daspin and other conspirators, created and sent a false transaction report to a client on or around June 25, 2007, and created and sent an additional false transaction report to another client on Aug. 11, 2009.

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

The case is being investigated by the FBI’s Washington Field Office and the Washington, D.C., and New York offices of the U.S. Postal Inspection Service.   The case is being prosecuted by Trial Attorneys Justin Goodyear, Jason Linder and Patrick Pericak of the Criminal Division’s Fraud Section.  Fraud Section Assistant Chief Robert Zink and former Trial Attorney Charles Reed also assisted with the investigation.

The department appreciates the assistance of the U.S. Securities and Exchange Commission and the United States Attorney’s Office for the District of New Jersey.

FACT SHEET ON U.S. ASSISTANCE TO UKRAINE

FROM:  THE WHITE HOUSE 

FACT SHEET: U.S. Security Assistance to Ukraine

The United States is working to bolster Ukraine’s ability to secure its borders and preserve its territorial integrity and sovereignty in the face of Russian occupation of Crimea and a concerted effort by Russian-backed separatists to destabilize eastern Ukraine.  President Obama has approved more than $23 million in additional defensive security assistance since early March.

This assistance includes:

A new tranche of $5 million for the provision of body armor, night vision goggles, and additional communications equipment.  This is in addition to the approximately 300,000 Meals Ready to Eat (delivered in March), as well as assistance for the provision of materiel using Foreign Military Financing to support Ukraine’s armed forces with medical supplies, service member equipment (e.g., helmets, sleeping mats, water purification units), explosive ordnance disposal equipment, and handheld radios.

The United States also has allocated Cooperative Threat Reduction funding to support Ukraine’s State Border Guard Service with supplies (e.g., clothing, shelters, small power generators and hand fuel pumps, engineering equipment, communications equipment, vehicles, and non-lethal individual tactical gear).
To date, Embassy Kyiv has purchased and delivered 20-person shelters, sleeping bags, fuel filter adapters, barbed wire, patrol flashlights, perimeter alarm systems, fuel pumps, concertina wire, vehicle batteries, spare tires, binoculars, excavators, trucks, generators, food storage freezers, field stoves, and communications gear to the Ukrainian State Border Guard Service, for use in monitoring and securing their borders.

Senior Leader Engagement

On April 1, senior U.S. defense officials met with their Ukrainian counterparts in Kyiv for bilateral defense consultations, during which they held substantive discussions on regional security, defense cooperation, and areas for growth in the U.S.-Ukraine defense relationship.

Senior defense officials met with Ukrainian counterparts in Kyiv in early June to discuss ongoing U.S.-Ukraine defense cooperation and U.S. support to Ukraine’s defense reform efforts.

In early June, U.S. European Command will hold a general/flag officer steering group meeting with Ukrainian counterparts in Kyiv to set the strategic direction for future military-to-military cooperation.

FTC TESTIFIES BEFORE CONGRESS ON GEOLOCATION PRIVACY AND SECURITY

FROM:  U.S. FEDERAL TRADE COMMISSION

FTC Testifies on Geolocation Privacy

June 4, 2014

The Federal Trade Commission testified before Congress o
n the Commission's efforts to address the privacy concerns raised by the tracking of information about consumers’ location, as well as proposed legislation to protect the privacy of geolocation data.

Delivering testimony before the Senate Judiciary Committee’s Subcommittee for Privacy, Technology and the Law, Jessica Rich, Director of the FTC Bureau of Consumer Protection, outlined the FTC’s ongoing efforts to protect the privacy of consumers’ geolocation information through enforcement, policymaking, and consumer and business education.

Precise geolocation data is sensitive personal information increasingly used in consumer products and services, the testimony states. These products and services make consumers’ lives easier and more efficient, but the use of geolocation information can raise concerns because it can reveal a consumer’s movements in real time and provide a detailed record of a consumer’s movements over time.

“Geolocation information can divulge intimately personal details about an individual. Did you visit an AIDS clinic last Tuesday? What place of worship do you attend? Were you at a psychiatrist's office last week? Did you meet with a prospective business customer?” the testimony states.

Geolocation information may be sold to companies to help build profiles about consumers without their knowledge or consent, or it could be accessed by cybercriminals, hackers or through surreptious means such as “stalking apps.”

The FTC has used its enforcement authority under Section 5 of the FTC Act to take action against companies engaged in unfair or deceptive practices involving geolocation information. Last month, for example, the Commission entered into a settlement with the mobile messaging app Snapchat, resolving FTC allegations that Snapchat made multiple misrepresentations to consumers about the disappearing nature of messages sent through its service, as well its transmission of users’ geolocation information. The FTC has raised similar allegations involving undisclosed collection and transmission of location data as part of  privacy complaints against a popular flashlight app, as well as a national rent-to-own retailer and one of its software vendors, the testimony states.

In addition to its enforcement activities involving geolocation information, the Commission has conducted studies, held workshops, and issued reports on mobile privacy disclosures, mobile apps directed to kids, and other topics that elucidate best practices for companies collecting, using, and sharing geolocation information, the testimony says.

The testimony also notes the FTC’s ongoing efforts to educate consumers and businesses about protecting the privacy of geolocation information. For instance, the Commission recently released an updated version of ''Net Cetera: Chatting with Kids About Being Online," and it has released guidance directed to businesses operating in the mobile arena to help educate them on best practices to handle sensitive information, such as geolocation information.

The testimony also provides the Commission’s initial views on the Location Privacy Protection Act of 2014, proposed legislation that seeks to improve the transparency of geolocation services and give consumers greater control over the collection of their geolocation information. The FTC supports the goals of the LPPA, and believes it is an important step forward in protecting consumers’ sensitive geolocation information, the testimony states.

In particular, the testimony highlights three important LPPA provisions that are consistent with the Commission’s views:

The bill defines “geolocation information” as information that is “sufficient to identify the street name and name of the city or town” in which a device is located. This definition is consistent in many respects with the definition of “geolocation information” in the Commission's COPPA Rule.

The LPPA requires that an entity collecting consumer geolocation information disclose its collection of such information. The Commission has recommended that companies make their data collection practices more transparent to consumers.
The LPPA requires affirmative express consent from consumers before a covered entity may knowingly collect or disclose geolocation information, and the Commission supports that approach.

In addition, the testimony notes that the LPPA gives the Department of Justice sole enforcement authority and rulemaking authority, in consultation with the FTC. As the federal government’s leading privacy enforcement agency, the testimony recommends that the Commission have rulemaking and enforcement authority with regard to the civil provisions of the LPPA, and that DOJ have enforcement authority for the criminal provisions.

The Commission vote approving the testimony and its inclusion in the formal record was 5-0.

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.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JUNE 6, 2014

FROM:  THE DEFENSE DEPARTMENT 

CONTRACTS

NAVY

Hewlett Packard Enterprise Services (HPES), Herndon, Virginia, is being awarded a $138,000,000 modification to a previously awarded contract (N00039-10-D-0010) for the continuity of services contract (CoSC) for Navy Marine Corps Intranet (NMCI). The modification includes increasing the contract ceiling from $5,603,792,250 to $5,741,792,250, and adding an option to extend the period of performance by three months, from July 1, 2014, to Sept. 30, 2014. The NMCI services are currently provided under the CoSC, which was awarded to HPES in order to continue providing information technology (IT) services following the expiration of the original NMCI contract. The CoSC contract period of performance for IT services was due to expire on June 30, 2014; the contract ceiling would have been exceeded in June 2014 based on current requirements. The CoSC ensures that the scope of NMCI IT services and performance levels delivered are sustained until the Next Generation Enterprise Network contract is satisfactorily providing the replacement services. Work is performed at nearly 2,500 Navy and Marine Corps locations worldwide, and expected completion for this modification is Sept. 30, 2014. No funds will be obligated at the time of award. The Space and Naval Warfare Systems Command, San Diego, California, is the contracting activity.

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $122,099,075 cost-plus-incentive-fee modification to a previously awarded advance acquisition contract (N00019-13-C-0008) for the procurement of initial aircraft spares for the F-35 Lightning II Joint Strike Fighter aircraft for the U.S. Marine Corps, U.S. Air Force, U.S. Navy, and international partners. Work will be performed in Fort Worth, Texas (35 percent); El Segundo, California (25 percent); Warton, United Kingdom (20 percent); Orlando, Florida (10 percent); Nashua, New Hampshire (5 percent); and Baltimore, Maryland (5 percent); and is expected to be completed in December 2016. Fiscal 2014 aircraft procurement (Navy and Air Force) and international partner funds in the amount of $122,099,075 are being obligated on this award, none of which will expire at the end of the current fiscal year. This modification combines purchases for the U.S. Marine Corps ($38,254,135; 31.3 percent); U.S. Air Force ($27,890,266; 22.9 percent); U.S. Navy ($10,837,918; 8.9 percent), and international partners ($45,116,756; 27.8 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting authority.

BAE Systems Norfolk Ship Repair, Norfolk, Virginia, is being awarded a $15,060,606 modification to previously awarded contract (N00024-10-C-4308) for USS Ramage (DDG-61) fiscal 2014 Selected Restricted Availability (SRA). A SRA includes the planning and execution of depot-level maintenance, alterations, and modifications that will update and improve the ship's military and technical capabilities. Work will be performed in Norfolk, Virginia, and is expected to be completed by November 2014. Fiscal 2014 operations and maintenance (Navy) and fiscal 2014 other procurement (Navy) contract funds in the amount of $15,060,606 will be obligated at time of award. Contract funds in the amount of $13,821,384 will expire at the end of the current fiscal year. Norfolk Ship Support Activity, Norfolk, Virginia, is the contracting activity.

Raytheon Co., Tucson, Arizona, is being awarded a $13,296,203 cost-plus-fixed-fee contract for the development of the drawings and specifications for the Joint Standoff Weapon C Block III variant for the government of Saudi Arabia including qualification and validation under the Foreign Military Sales Program. Work will be performed in Tucson, Arizona (80 percent); Dallas, Texas (10 percent); and Cedar Rapids, Iowa (10 percent); and is expected to be completed in September 2015. FM S funds in the amount of $13,296,203 are being obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to 10 U.S.C. 2304(c)(1). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-14-C-0025).

ARMY

Weeks Marine, Inc. Covington, Louisiana, was awarded a $63,322,388 firm-fixed-price, multi-year contract with options for dredging and beach fill of the main channel of the Delaware River. Work will be performed in Lewes, Delaware, with an estimated completion date of April 15, 2016. Bids were solicited via the Internet with four received. Fiscal 2014 operations and maintenance (Army) funds in the amount of $7,000,000 and fiscal 2014 other procurement funds in the amount of $8,000,000 are being obligated at the time of the award. U.S. Army Corps of Engineers, Philadelphia, Pennsylvania, is the contracting activity (W912BU-14-C-0015).

Precon Marine, Inc.*, Chesapeake, Virginia, was awarded a $11,625,500 firm-fixed-price contract for Craney Island Northern Shoreline Revetment Phase III, Portsmouth, Virginia, with an estimated completion date of April 30, 2015. Bids were solicited via the Internet with six received. Fiscal 2014 operations and maintenance (Army) funds in the amount of $11,625,500 are being obligated at the time of the award. U.S. Army Corps of Engineers, Norfolk, Virginia, is the contracting activity (W91236-14-C-0034).

Evergreen Helicopters, Inc., McMinnville, Oregon, was awarded a $10,672,126 modification (P00008) to contract W91CN-12-D-0002 to exercise option two for service and support for Medical Evacuation for the U.S. Army Garrison, Hawaii. Funding and work location will be determined with each order. Estimated completion date is June 22, 2015. Army Contracting Command, Fort Shafter, Hawaii, is the contracting activity.

DEFENSE LOGISTICS AGENCY

GlaxoSmithKline, Research Triangle Park, North Carolina, has been awarded a maximum $17,616,339 firm-fixed-price contract for flu vaccines. This contract was a competitive acquisition with four offers received. This is a one-year base contract with no option periods. Location of performance is North Carolina with a Sept. 30, 2015, performance completion date. Using military service is Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DP-14-D-0005).

Sanofi Pasteur, Swiftwater, Pennsylvania, has been awarded a maximum $8,969,432 firm-fixed-price contract for flu vaccines. This contract was a competitive acquisition with four offers received. This is a one-year base contract with no option periods. Location of performance is Pennsylvania with a Sept. 30, 2015, performance completion date. Using military service is Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DP-14-D-0004).

AIR FORCE

SES Government Solutions, McLean Virginia, has been awarded an $8,245,160 firm-fixed-price contract for the purchase of commercial on-orbit transponders to support Ku-band communications for U.S. Africa Command and operations and sustainment support for a base year and four one-year options. Work will be performed at Ramstein Air Base, Germany and the western portion of Africa, and is expected to be complete by Aug. 5, 2019. This award is the result of a full and open competition, and two offers were received. Fiscal 2014 procurement funds in the amount of $8,000,000 are being obligated at time of award. The Space and Missile Systems Center, Los Angeles Air Force Base, California is the contracting activity (FA8808-14-C-0001).

*Small business

COMMANDER U.S. EUROPEAN COMMAND COMMEMORATES D-DAY

FROM:  U.S. DEFENSE DEPARTMENT 

Right:  Soldiers from the 101st Airborne Division, along with allied troops from multiple countries, participate in a parade through the streets of Carentan, France, June 4, 2014. The town is hosting several events commemorating the 70th anniversary of D-Day operations conducted during World War II. U.S. Army photo by Sgt. A.M. LaVey, 173rd Airborne Brigade 

Breedlove Pays Tribute to Sacrifices Made at D-Day
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

CARENTAN, France, June 5, 2014 – The sacrifice made by World War II veterans is reflected in the legacy of freedom they left following their success in the “greatest endeavor ever undertaken in the name of liberty,” NATO’S Supreme Allied Commander Europe said.

Air Force Gen. Philip M. Breedlove, also commander of U.S. European Command, traveled here to participate in a series of French-hosted commemorations of the 70th anniversary of the June 6, 1944, D-Day invasion of Normandy during World War II. Breedlove saluted the veterans for their courage in liberating Europe.

 “The French said ‘thank you’ today as they gave [veterans] the [French] Legion of Honor,” Breedlove told American Forces Network yesterday.

“Well, you just can’t buy this,” he said, referring to French gratitude for what the allies did by liberating France and Europe as part of the 70th anniversary of D-Day. “You can’t put it in a bottle. To see the nations -- all of them -- represented around this town, this country, this host nation, coming out like this in the hundreds and thousands to thank our soldiers and thank our veterans -- it’s amazing. It’s a great feeling.”

Breedlove added, “You don’t know what it’s like until you watch these little kids and their parents, and their grandparents waving American flags, waving French flags, waving [British] flags, all the nations represented.”

The French citizens’ emotions illustrate “what it means to these people [regarding] the sacrifices that our soldiers, sailors, airmen and Marines made for this country,” he added.

Breedlove reflected on the hard choices Army Gen. Dwight D. Eisenhower -- the D-Day invasion commander -- had to make in order to carry out the operation.
“Can you imagine what he was thinking as he sent so many of our nation’s sons ashore knowing what was waiting for them?” Eisenhower knew what was going to be required to achieve success, Breedlove said, and he knew the sacrifice that would have to be made.

“It’s probably the most incredible decision of our military,” the general said. “And he stood up to it and sent these forces ashore, and they accomplished their mission.”

Breedlove said he learned, from talking to veterans, that none of them made the decision to fight based on what was in front of them.

“They made decisions about standing shoulder-to-shoulder with their fellow soldiers, sailors and airmen. “Shoulder-to-shoulder with those who cared. And their mission was to get the job done and take care of each other.”

It was the cohesion, camaraderie and esprit de corps, Breedlove said, that got them through some pretty tough times.

“They all gave so much. But what we owe all veterans is our freedom.”
Speaking about freedom as the legacy of those who fought in World War II, Breedlove referred to a speech from a young French woman during an earlier ceremony where veterans received the French Legion of Honor.

“She wrote about that freedom that was purchased by the bravery and the sacrifice of our soldiers,” he said. “So all we can do is just say, ‘We thank you and we’re lucky that you were there to stand for us.’”

Walking down Carentan’s streets, the general also lauded veterans serving in today’s formations, and the families who support them.

“I say thank you to the families,” Breedlove said, “and to those veterans who are marching right in front of them who also served in multiple wars and multiple places around the world.

“We have lots of veterans that we owe dearly,” he continued. “Thank you to all of them.”

WHITE HOUSE FACT SHEET ON U.S. CONTRIBUTIONS TO EUROPEAN PEACE SINCE WWII

FROM:  THE WHITE HOUSE 

FACT SHEET: Overview of U.S. Contributions to Peace and Security in Europe Since WWII

Europe is an indispensable partner with which the United States tackles key global security challenges, and advancing transatlantic peace and security has stood at the heart of U.S. foreign policy for more than a century.  The United States works hand-in-hand with our European allies and partners -- bilaterally and through the North Atlantic Treaty Organization (NATO), the European Union (EU), and the Organization for Security and Cooperation in Europe (OSCE) -- to advance our shared goal of a Europe that is whole, free, and at peace.

As Europe emerged from the devastation of World War II, the United States implemented the Marshall Plan (officially called the European Recovery Program) in 1948 to provide $11 billion in economic support to rebuild European economies.  In April 1949, the United States joined 11 allies to create NATO.  NATO’s membership has since grown six times and now comprises 28 members.  NATO’s Article 5 guarantees the security of all NATO members, declaring that an attack on one of these allies will be considered as an attack on all.  U.S. contributions to NATO significantly enhance transatlantic stability and security, and since the end of the Cold War, the Alliance has transformed itself to meet the global security challenges of the 21st century.  NATO’s “Open Door” to new members has brought peace, stability, and security to Europe, contributing to the spread of democracy and prosperity across the continent.

The United States has also had a strong partnership with the European Union since the first U.S. observers went to the European Coal and Steel Community in 1953.  For decades, the United States and the EU have partnered together to promote peace and stability, sustain democracy and development around the world, respond to global challenges, contribute to the expansion of world trade and closer economic relations, and build bridges across the Atlantic.  The EU, which today includes 28 Member States and more than 500 million people, works to expand economic stability, prosperity, and security across Europe and beyond.  The United States and the EU are strengthening our economic ties through negotiations to form a Transatlantic Trade and Investment Partnership.

Deriving from the historic 1975 Helsinki Accords and the Conference on Security and Cooperation in Europe, the Organization for Security and Cooperation in Europe is the world’s largest and most comprehensive regional security organization -- with 57 participating states spanning from Vancouver to Vladivostok and 11 partner countries.  The OSCE is a political forum in which the United States works with other participating states to build a Europe and Eurasia whole, free, and at peace; to promote good governance; to build confidence and security through arms control; to resolve protracted conflicts in the OSCE region; and to encourage democracy and respect for human rights.  The United States supports the contributions of the OSCE across all three dimensions of its comprehensive security mandate and values, in particular the work of the 15 OSCE field missions.

Throughout the Cold War, the United States stood firmly by our NATO allies in confronting the threats posed to their peace and security by the Soviet Union.  From the 1947 Truman Doctrine and 1948 Berlin Airlift to today, our policies are designed to promote freedom and democracy in Europe.  When the Berlin Wall fell in 1989, the United States was quick to support German reunification within NATO.  The United States led the efforts to bring peace and security to the countries of the former Yugoslavia through the painful years of the Balkans crises, and we have supported the European and Euroatlantic aspirations of newly independent countries.

U.S. MARINES PATROL IN HELMAND PROVINCE AFGHANISTAN

FROM:  U.S. DEFENSE DEPARTMENT

U.S. Marines Corps 2nd Lt. Michael Bressler observes a row of small shops for any signs of danger during a security patrol before making contact with the local Afghans near the town of Boldak in Helmand province, Afghanistan, May 21, 2014. Bressler, a platoon commander, is assigned to 1st Battalion, 2nd Marine Regiment. U.S. Marine Corps photo by Cpl. Michael Dye.

U.S. Marines and sailors conduct a security patrol near Patrol Base Boldak in Helmand province, Afghanistan, May 21, 2014. The Marines and sailors, assigned to Charlie Company, 1st Battalion, 2nd Marine Regiment, conduct patrols to maintain trust and communication with the local Afghan population. U.S. Marine Corps photo by Cpl. Michael Dye.

MAN PLEADS GUILTY TO IMPORTING,SALE OF COUNTERFEIT INTEGRATED CIRCUITS USED ON NUCLEAR SUBMARINES

FROM:  U.S. JUSTICE DEPARTMENT   

Tuesday, June 3, 2014

Massachusetts Man Pleads Guilty to Importing and Selling Counterfeit Intergrated Circuits from China and Hong Kong

Peter Picone, 41, of Methuen, Massachusetts, pleaded guilty today in U.S. District Court in Hartford, Connecticut to importing thousands of counterfeit integrated circuits (ICs) from China and Hong Kong and then reselling them to U.S. customers, including contractors supplying them to the U.S. Navy for use in nuclear submarines.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Deirdre M. Daly for the District of Connecticut made the announcement.

Picone pleaded guilty before U.S. Magistrate Judge Donna Martinez of the District of Connecticut to an indictment charging him with conspiracy to traffic in counterfeit military goods.   As part of a plea agreement with the government, Picone agreed to a forfeiture money judgment of $70,050 and the forfeiture of 12,960 counterfeit ICs seized during the execution of a search warrant at his business and residence.   Sentencing was set for Aug. 22, 2014.

According to court filings, from 2007 through 2012, Picone conspired with his suppliers in China and Hong Kong to sell millions of dollars’ worth of ICs bearing the counterfeit marks of approximately 35 major electronics manufacturers, including Motorola, Xilinx and National Semiconductor.   Picone sold counterfeit ICs to contractors knowing that they would be supplied to the United States Navy for use in nuclear submarines.

Many of Picone’s customers specified in their orders that they would not accept anything but new ICs that were not from China, but Picone told them that the ICs were new and manufactured in Europe.   Testing by the Navy and one of its contractors revealed that in fact the ICs purchased from Picone had been resurfaced to change the date code and to affix counterfeit marks, all in order to hide their true pedigree.   Federal agents searched Picone’s business and residence on April 24, 2012, and recovered 12,960 counterfeit ICs.

This is the second conviction ever on a charge of trafficking in counterfeit military goods, a relatively new provision in the U.S. Criminal Code that was enacted as part of the National Defense Authorization Act of 2011.

The case was investigated by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service and Homeland Security Investigations.   The case is being prosecuted by Trial Attorney Kendra Ervin and Senior Counsel Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), Special Assistant U.S. Attorney Carol Sipperly of the District of Connecticut, Trial Attorney Anna Kaminska of the Criminal Division’s Fraud Section, and Trial Attorney Kristen Warden of the Criminal Division’s Asset Forfeiture and Money Laundering Section.  Significant assistance was provided by the CCIPS Cybercrime Lab.

ASSISTANT AG JOCELYN SAMUELS MAKES REMARKS ON $169 MILLION LOAN DISCRIMINATION SETTLEMENT

FROM:  U.S. JUSTICE DEPARTMENT 

Remarks by Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels at GE Capital Retail Bank Press Conference

Washington, D.C. ~ Thursday, June 19, 2014

Good afternoon, it is an honor to be here today with Director Richard Cordray of the Consumer Financial Protection Bureau to discuss the Justice Department and CFPB’s $169 million settlement with GE Capital Retail Bank, now known as Synchrony Bank.  The settlement resolves claims that the bank discriminated against Hispanic borrowers by excluding them from two credit card debt-repayment programs.   It is the federal government’s largest credit card discrimination settlement in history.

Today’s settlement shows the deep partnership that the Justice Department and CFPB have built to enforce our nation’s fair lending laws.  I’d like to commend Director Cordray for his leadership and for all that the bureau has done to protect consumers from credit discrimination.

Lending discrimination in any form is unacceptable.  This settlement is part of the Justice Department’s continued work to ensure that all people have equal access to credit, regardless of national origin.

Credit cards are essential in our economy, and millions of Americans use them in their daily lives.   Here, the scope of the potential harm, as well as the blatant nature of the discrimination, is particularly troublesome.   GE Capital offered two debt-repayment programs, to help those who were behind on their credit card payments, and make the debt less burdensome and payments more manageable.

However, it excluded two categories of borrowers: those who had indicated they preferred to receive communications from the lender in Spanish rather than English and those who had a mailing address in Puerto Rico.  The department and the CFPB allege that from January 2009 to March 2012, the Bank excluded these borrowers from the “Statement Credit Offer,” a program offering eligible borrowers a credit to their account if they met certain criteria, and the “Settlement Offer,” a program offering eligible borrowers the chance to settle their credit card debt if they paid a percentage of their remaining account balance, ranging from 25 percent to 55 percent.   Hispanic borrowers were thus denied a significant financial benefit provided to other customers.

The settlement is a comprehensive response to these alleged violations.   The settlement, which was filed with a complaint and is subject to court approval, provides $169 million in relief to approximately 108,000 borrowers in the form of monetary payments and the reduction, or complete waiver, of borrowers’ credit card balances.   The bank will also eliminate negative payment histories for affected borrowers and will implement significant fair lending compliance and monitoring measures to ensure this type of discrimination does not occur again.   For accounts that the bank closed , the bank must ask the three major credit reporting agencies to which it furnishes information to delete any negative reporting for those customers who did not receive the offers.   The bank has already provided relief of over $131.8 million to victims of the discrimination, and has committed in the settlement to provide the balance of the relief to the remaining victims.

We commend GE Capital for identifying the discrimination and reporting it to its regulator, the CFPB, and we applaud the bank’s proactive steps toward providing relief to affected borrowers even before government intervention.   We also appreciate this lender’s efforts in working closely with the department and the CFPB to further identify and compensate affected borrowers.

We hope the detection of this issue by one of the nation’s major credit card issuers will prompt the rest of the industry to take a careful look at the way they structure and publicize offers with benefits to borrowers.

The Justice Department’s enforcement of fair lending laws is conducted by the Housing and Civil Enforcement Section in the Civil Right Division.  Since February 2010, it has filed or resolved 34 lending matters under the Fair Housing Act, the Equal Credit Opportunity Act and the Servicemembers Civil Relief Act.  The settlements in these matters provide for more than $1 billion in monetary relief for individual borrowers and impacted communities.

I want to commend our dedicated team of attorneys as well as our partners at the Consumer Financial Protection Bureau for their work on this case.  The filing of this complaint and proposed consent order marks a significant step in our efforts to enforce fair lending laws.

The Justice Department remains committed to ensure that borrowers who suffer harm based on discriminatory lending practices receive compensation.  And we will continue to aggressively enforce the law to protect the rights of all who face discrimination, and to ensure fair and equal access to credit for all.

FRANK ROSE'S REMARKS ON MISSILE DEFENSE IN MAINZ, GERMANY

FROM:   U.S. STATE DEPARTMENT 

Implementing Missile Defense in a Global Context

Remarks

Frank A. Rose

Deputy Assistant Secretary, Bureau of Arms Control, Verification and Compliance

3AF Missile Defense Conference

Mainz, Germany

June 17, 2014

---

Thank you for that kind introduction. It’s great to be back in Germany and I am particularly honored to address the 3AF Missile Defense Conference again this year.
In my remarks this morning, I would like to discuss three key issues:

• First, the Obama Administration’s commitment to ballistic missile defense (BMD) and the Fiscal Year 2015 missile defense budget request;
• Second, the significant progress the United States and our NATO partners are making in implementing the European Phased Adaptive Approach (EPAA); and;
• Third, cooperation on missile defense with allies and partners outside of Europe.

The U.S. Missile Defense Budget
It is no secret that governments around the world, including the United States, are working very hard to do more with less. This, of course, includes our investments in our national security. Despite these challenges, you will see—and the proof is in the numbers—that the United States is continuing to ensure that our missile defense priorities are funded, on track and on budget.

In March of this year, President Obama released his Fiscal Year 2015 budget submission that aligns defense program priorities and resources with the 2014 Quadrennial Defense Review (QDR). I would like to highlight for you a few of the missile defense aspects of the President’s request.

Overall, the budget request provides $8.5 billion for our missile defense programs, including $7.5 billion for the Missile Defense Agency. With regard to U.S. homeland defense, the budget request provides funding to increase the number of long-range missile defense interceptors deployed in Alaska and California from 30 to 44 by 2017. The request also funds a number of other programs to enhance the long-range BMD system such as a new kill vehicle and a new long-range discrimination radar. With regard to regional missile defense, the budget continues to provide adequate funding to complete work on the missile defense base at Devesulu, Romania and provides additional funding of $225.7 million for the missile defense base at Slupsk in Poland. The request also includes $435.4 million for the procurement of SM-3 Block IB interceptors and $263.9 for continued development of the longer-range SM-3 Block IIA interceptor.

As you can see from these numbers, the United States continues to devote significant resources to our missile defense programs. These programs are an important part of ensuring the national security of the United States, as well as our allies and partners. With regard to the EPAA, this budget request clearly signals the importance the U.S. places on the program. We believe that the resources we are allocating to our missile defense programs demonstrate our commitment to establish ever more capable missile defenses, both in Europe and other regions, to address growing ballistic missile threats. As U.S. Secretary of Defense Chuck Hagel noted in March 2013, the U.S. commitment to NATO missile defense and to the sites in Romania and Poland remains “ironclad.”

European Phased Adaptive Approach
Moving on, I would like to take a few moments to discuss the implementation of the President’s European Phased Adaptive Approach (EPAA) to missile defense. In 2009, when the President announced the EPAA, he noted that the EPAA will “provide stronger, smarter, and swifter defenses of American forces and America's Allies,” while relying on “capabilities that are proven and cost-effective.” And since then, we have been working hard to implement his vision—and we have made great progress in doing so. Earlier this month, President Obama noted in Poland that we are “on track” with the EPAA.

Phase 1 of the EPAA gained its first operational elements in 2011 with the start of a sustained deployment of an Aegis BMD-capable multi-role ship to the Mediterranean and the deployment of an AN/TPY-2 radar in Turkey. With the declaration of Interim BMD Capability at the NATO Summit in Chicago in May 2012, this radar transitioned to NATO operational control. As part of Phase 1, Spain agreed in 2011 to host four U.S. Aegis BMD-capable ships at the existing naval facility at Rota as a Spanish contribution to NATO missile defense, demonstrating its commitment to NATO’s collective defense. In February 2014, the first of four of these ships, USS Donald Cook, arrived in Rota. The next ship, USS Ross, is on its way now. The remaining two will deploy to Rota next year. In addition to their roles in NATO BMD, these ships will conduct maritime security operations, humanitarian missions, bi-lateral and multi-lateral training exercises, and they will support U.S. and NATO operations. By stationing these naval assets in Spain, we are placing them in a position to maximize their operational flexibility for missions in the Atlantic and the Mediterranean.

With regard to Phase 2, we have an agreement in force with Romania to host a U.S. Aegis Ashore site beginning in 2015. Last October, I had the honor of attending the ground-breaking ceremony at Deveselu Air Base to commemorate the start of construction for this site. When this site is operational, and combined with BMD-capable ships in the Mediterranean, NATO will gain enhanced coverage from short- and medium-range ballistic missiles launched from the Middle East. I also had the opportunity last year to visit the Lockheed-Martin facility in Moorestown, New Jersey where they built the Aegis Ashore deck house and components destined for Romania. The deck house has been disassembled and is currently in transit to Romania.

In furtherance of Phase 2, on May 21, the United States successfully conducted the first flight test involving components of the Aegis Ashore system, including the SM-3 IB interceptor. During the test, a simulated ballistic missile target was acquired, tracked, and engaged by the Aegis Weapon System. A live target missile launch was not planned for this flight test.
Before moving on to Phase 3, I would like to stress that we remain on schedule for deploying the system to Romania, with the site becoming operational in 2015.

And finally there is Phase 3. Phase 3 includes an Aegis Ashore site in Poland equipped with the new SM-3 Block IIA interceptor, per the Ballistic Missile Defense agreement between the United States and Poland which entered into force in September 2011. This site is on schedule to be operational in 2018. The interceptor site in Poland is key to the EPAA. When combined with other EPAA assets, Phase 3, which begins in the 2018 timeframe, will provide the necessary capabilities to provide ballistic missile defense coverage of all NATO European territory. So, as you can see; we are continuing to successfully implement the President’s vision for stronger, smarter and swifter missile defenses going forward.

NATO Cooperation
In addition to the support and burden sharing as part of the EPAA undertaken by Spain, Turkey, Poland and Romania, NATO Heads of State and Government noted at the Chicago Summit that there were potential opportunities for using synergies in planning, development, procurement, and deployment of NATO missile defense.
In our view, with this in mind, there are three approaches Allies can take to make valuable contributions to NATO BMD.

• First, Allies can acquire fully capable BMD systems possessing sensor, shooter and command and control capabilities.
• Second, Allies can acquire new sensors or upgrade existing ones to provide a key BMD capability.
• Third, Allies can contribute to NATO’s defense by providing air defense capability for U.S. BMD ships underway on a NATO mission.

In all of these approaches, however, the most critical requirement is NATO interoperability. While acquiring a BMD capability is, of course, good in and of itself, without interoperability, its value as a contribution to Alliance deterrence and defense is significantly diminished. It is only through interoperability that the Alliance can gain the synergistic effects from BMD cooperation that enhance the effectiveness of NATO BMD, as well as the security of all NATO members through shared battle-space awareness and reduced interceptor wastage. Given the budget challenges many allies face today, this becomes even more imperative. Looking ahead, we are hopeful that missile defense will be a key deliverable at the Alliance’s Summit later this year in Wales.

Missile Defense Developments in Other Regions
Outside the NATO context, the United States is continuing to increase and deepen its cooperation with partners and allies around the world to protect people, forces, and assets from the growing ballistic missile threats that we face. As in Europe, we are tailoring our approaches to the Middle East and the Asia-Pacific so that they reflect the unique deterrence and defense requirements of each region.

In the Middle East, we are already cooperating with our key partners bilaterally and multilaterally through venues such as the recently established U.S.-Gulf Cooperation Council (GCC) Strategic Cooperation Forum. At the September 26, 2013, Strategic Cooperation Forum (SCF), Secretary Kerry and his Foreign Ministry counterparts reaffirmed their intent, first stated at the September 28, 2012 SCF, to “work towards enhanced U.S.-GCC coordination on Ballistic Missile Defense.”

As you know, this is a time of profound change in that region and we are acutely aware of the daily threats and anxieties felt throughout the Gulf. Security cooperation has long stood at the core of the U.S.-Gulf partnership. The United States is not only committed to enhancing U.S.-GCC missile defense cooperation – we see it as a strategic imperative.

As stated in the 2010 Ballistic Missile Defense Review, a key objective of U.S. strategy is to expand international efforts and cooperation on ballistic missile defense. BMD cooperation contributes to regional stability by deterring regional actors, principally by eliminating their confidence in the effectiveness of their ballistic missiles, and assuring allies and partners of U.S. defense commitments while enhancing their ability to defend against these threats.
Less than two months ago I travelled to the Gulf to work toward enhanced U.S.—GCC coordination on ballistic missile defense. The message I delivered in the region was clear: the United States remains firmly committed to developing and deploying advanced missile defense capabilities around the world to protect our homeland, our deployed forces, as well as our friends and allies.

Several of our partners in the region have already expressed an interest in buying missile defense systems, and some have already done so. For example, the UAE has contracted to buy two THAAD batteries that, when operational, will enhance the UAE’s security as well as regional stability. The UAE also has taken delivery of its Patriot PAC-3 batteries, which provide a lower-tier, point defense of critical national assets. We look forward to advancing cooperation and interoperability with our GCC partners in the years ahead.

Additionally and separately, we are continuing our long-standing and robust cooperation with Israel on missile defense on key systems such as Arrow 3, David’s Sling, and Iron Dome.

In the Asia-Pacific, we are continuing to cooperate through our bilateral alliances. For example, the United States and Japan already are working closely to develop jointly an advanced interceptor known as the SM-3 Block IIA along with deployment of a second AN/TPY-2 radar to Japan, while continuing to work on enhancing interoperability between U.S. and Japanese forces. With the Republic of Korea, we are continuing to consult closely as it develops the Korean Air and Missile Defense system, which is designed to defend the ROK against air and missile threats from North Korea.

No Constraints
Before I conclude, let me speak about missile defense and Russia. Russia continues to demand that the United States provide it with “legally-binding” guarantees that our missile defenses will not negatively impact its strategic nuclear deterrent. What the Russians really mean is that they want legally-binding limitations or constraints on U.S. missile defenses—defenses we and our partners and allies believe must be flexible and unconstrained in order to adequately protect ourselves from emerging ballistic missile threats. Such “legally binding guarantees” would create limitations on our ability to develop and deploy future missile defense systems against regional ballistic missile threats such as those we see evolving in the Middle East and North Korea. We have repeatedly made clear to the Russian government that the United States cannot and will not accept any obligations that limit our ability to defend ourselves, our allies, and our partners, including where we deploy our BMD-capable Aegis ships.

As far as where things stand today regarding our discussions with Russia on missile defense, Russia’s intervention into the crisis in Ukraine, in violation of international law, has led to the suspension of our military-to-military dialogue and we are not currently engaging Russia on the topic of missile defense.

Conclusion
Let me conclude by saying that we have made a great deal of progress on missile defense over the past several years.

Thanks to the important work of our NATO Allies, implementation of the EPAA and NATO missile defense is going well. We are continuing to engage productively with our partners and allies in the Middle East and East Asia. And, as I noted earlier, Congress has continued to provide sufficient funding for missile defense programs, even in these times of tight budgets.
For our part, we look forward to continuing these successes and working with our allies and friends around the world to deepen our cooperation, both diplomatic and military, in pursuit of ensuring that missile defense remains a key part of deterring and defending against ballistic missile threats.

Thank you very much, and I look forward to your questions.

CALIFORNIA-BASED BUSINESS CHARGED BY FTC WITH SELLING BOGUS DEBT RELIEF SERVICES

FROM:  FEDERAL TRADE COMMISSION 

FTC Charges Operation with Selling Bogus Debt Relief Services

DebtPro 123 LLC Billed Consumers as Much as $10,000, But Did Little or Nothing to Settle Their Debts

The Federal Trade Commission charged an Irvine, California-based scheme with billing consumers as much as $10,000 after making deceptive claims that it would provide legal advice, settle consumers’ debts, and repair their credit in three years or less.  Instead, the scheme often left consumers in financial ruin, the agency charged.

The FTC alleged that the DebtPro 123 LLC defendants told consumers to stop paying and communicating with their creditors. As a result, although consumers hired the defendants in hopes of improving their financial situation, their debt often increased, causing them to lose their homes, have their wages garnished, lose their retirement savings, or file for bankruptcy, according to the complaint. Although the defendants promised to refund unsatisfied customers, they rarely did.

“These defendants said they would get consumers out of debt, but instead they bilked them out of thousands of dollars, often leaving them worse off than they were before,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection.

Ringleader Bryan Taylor and three other individuals, along with DebtPro 123 and five other companies marketed their bogus debt relief services through telemarketing calls, website ads, promotional videos and marketing companies that acted as lead generators, according to the complaint.  Promising that in as little as 18 months consumers could “become debt free and enjoy financial independence,” the defendants claimed their “Legal Department” would “leverage their existing relationships with all of the major creditors to negotiate the best possible resolution.” The defendants claimed that consumers could reduce the amount they owed by 30 to 70 percent.

The complaint alleges that the defendants violated the Federal Trade Commission Act,  the Telemarketing Sales Rule, and the Credit Repair Organizations Act, not only through their false promises, but also by providing their affiliate marketing companies with deceptive materials to deceive consumers and by collecting an advance fee for their bogus debt relief services.

For more information about how to handle robocalls and debt relief offers, see Robocalls, and Avoiding Debt Relief Scams.

The Commission vote to file the complaint against  Bryan Taylor; Kara Taylor; Ryan Foland; Stacey Frion; DebtPro 123, LLC; BET Companies Inc.; Redwave Management Group Inc.; Allstar Debt Relief LLC (California); Allstar Debt Relief LLC (Texas); and Allstar Processing Corp. was 4-0-1, with Commissioner McSweeny not participating. The FTC filed the complaint in the U.S. District Court for the Central District of California on May 2, 2014.

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

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

THE BIG EARTH: KEPLER-10c

FROM:  NASA

Astronomers have discovered a rocky planet that weighs 17 times as much as Earth and is more than twice as large in size. This discovery has planet formation theorists challenged to explain how such a world could have formed.

“We were very surprised when we realized what we had found,” says astronomer Xavier Dumusque of the Harvard-Smithsonian Center for Astrophysics (CfA), who led the analysis using data originally collected by NASA’s Kepler space telescope.

Kepler-10c, as it had been named, had a previously measured size of 2.3 times larger than Earth but its mass was not known until now.  The team used the HARPS-North instrument on the Telescopio Nazionale Galileo in the Canary Islands to conduct follow-up observations to obtain a mass measurement of the rocky behemoth.

Worlds such as this were not thought possible to exist. The enormous gravitational force of such a massive body would accrete a gas envelope during formation, ballooning the planet to a gas giant the size of Neptune or even Jupiter. However, this planet is thought to be solid, composed primarily of rock.

"Just when you think you've got it all figured out, nature gives you a huge surprise – in this case, literally," said Natalie Batalha, Kepler mission scientist at NASA's Ames Research Center in Moffett Field, California. "Isn't science marvelous?"
Kepler-10c orbits a sun-like star every 45 days, making it too hot to sustain life as we know it. It is located about 560 light-years from Earth in the constellation Draco. The system also hosts Kepler-10b, the first rocky planet discovered in the Kepler data.

The finding was presented today at a meeting of the American Astronomical Society in Boston. Read more about the discovery in the Harvard-Smithsonian Center for Astrophysics press release.

NASA’s Ames Research Center manages Kepler's ground system development, mission operations and science data analysis. NASA’s Jet Propulsion Laboratory, Pasadena, California, managed the Kepler mission's development.

Ball Aerospace and Technologies Corp. in Boulder, Colorado, developed the Kepler flight system and supports mission operations with the Laboratory for Atmospheric and Space Physics at the University of Colorado in Boulder.
The Space Telescope Science Institute in Baltimore archives, hosts and distributes Kepler science data. Kepler is NASA's 10th Discovery Mission and is funded by NASA's Science Mission Directorate at the agency's headquarters in Washington.

U.S. MARK'S WORLD ENVIRONMENT DAY

FROM:  U.S. STATE DEPARTMENT 

World Environment Day

Press Statement

John Kerry

Secretary of State

Washington, DC

June 5, 2014

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The United States is proud to mark World Environment Day and this year we are especially focused on the unique challenges facing Small Island Developing States and the health of our oceans.

With vast marine areas and limited land, island nations feel environmental challenges very acutely. Marine pollution, overfishing, ocean acidification, and the changing climate threaten countries from Tonga to Tuvalu to Trinidad and Tobago.

The ocean itself is vital to life – not just for island nations, but for people around the world. Here in the United States, the ocean sustains the livelihoods of millions, stabilizes our climate, and provides a critical source of food.

The challenges facing island nations demand urgency and focus from all of us. The United States took a major step forward this week, releasing a proposed rule under the Clean Air Act to limit greenhouse gas emissions from existing power plants, and as we work hard to reduce our emissions and mitigate climate change at home, we will continue to help small island states and other vulnerable countries adapt.

We are especially looking forward to the “Our Ocean” Conference, June 16–17, with a focus on sustainable fisheries, marine pollution, and ocean acidification, and to our participation in the Third UN International Conference on Small Island Developing States this September in Samoa. Protecting our ocean is a common challenge that demands common resolve, and we can meet this challenge with leadership that unites nations.