HOSPITAL SYSTEM, PHYSICIAN GROUP SETTLE FALSE CLAIMS LAWSUIT FOR $24.5 MILLION

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, July 21, 2014

Alabama Hospital System and Physician Group Agree to Pay $24.5 Million to Settle Lawsuit Alleging False Claims for Illegal Medicare Referrals

Mobile, Alabama-based Infirmary Health System Inc. (IHS), two IHS-affiliated clinics and Diagnostic Physicians Group P.C. (DPG) have agreed to pay the United States $24.5 million to resolve a lawsuit alleging that they violated the False Claims Act by paying or receiving financial inducements in connection with claims to the Medicare program, the Justice Department announced today.

“Financial arrangements that compensate physicians for referrals encourage physicians to make decisions based on financial gain rather than patients’ needs,” said Assistant Attorney General for the Civil Division Stuart F. Delery.  “The Department of Justice is committed to preventing illegal financial relationships that undermine the integrity of our public health programs.”

The government’s suit alleged that two IHS affiliated clinics -- IMC-Diagnostic and Medical Clinic, in Mobile, and IMC-Northside Clinic, in Saraland, Alabama -- had agreements with DPG to pay the group a percentage of Medicare payments for tests and procedures referred by DPG physicians, in violation of the Physician Self-Referral Law (commonly known as the Stark Law) and the Anti-Kickback Statute.  Also named in the lawsuit was Infirmary Medical Clinics P.C. (IMC), an affiliate of IHS that directly owns and operates approximately 30 clinics in the Mobile area, including the two clinics involved in this lawsuit.

The Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives.  The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare.  The Stark Law forbids a hospital or clinic from billing Medicare for certain services referred by physicians who have a financial relationship with the entity.

According to the government’s complaint, in 1988, IMC purchased IMC-Diagnostic and Medical Clinic from DPG and agreed to pay DPG a share of the revenues the clinics collected, including Medicare revenues from diagnostic imaging and laboratory tests.  After IMC acquired the IMC-Northside Clinic in 2008, the physicians practicing there joined DPG and entered into an agreement with the same key terms as the earlier agreement with IMC-Diagnostic and Medical Clinic.  The government contended that these payments were illegal kickbacks and constituted a prohibited financial relationship under the Stark Law, and that in June 2010, an attorney for DPG warned employees of both IMC and DPG that the compensation being paid to the physicians likely violated the law.  Nevertheless, the agreements allegedly were neither modified nor terminated for another 18 months.

The lawsuit was originally filed by Dr. Christian Heesch, a physician formerly employed by DPG, under the whistleblower provisions of the False Claims Act.  Those provisions authorize private parties to sue on behalf of the United States and to receive a portion of any recovery.  The act permits the United States to intervene and take over the lawsuit, as it did in this case with respect to some of Dr. Heesch’s allegations.  Dr. Heesch will receive $4.41 million as his share of the settlement.

“Today’s settlement represents a single but significant step towards achieving integrity in the administration of public health programs in this region,” said U.S. Attorney Kenyen Brown for the Southern District of Alabama.  “Physicians, physician groups and other medical entities operating illegally within public health programs will be held accountable.  I also commend whistle blowers like Dr. Christian Heesch, who helped bring this particular case to light.”

As part of the settlement announced today, the settling defendants have also agreed to enter into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), which obligates the defendants to undertake substantial internal compliance reforms and to submit its federal health care program claims to independent review for the next five years.

“Patients must know that medical advice is based on best practices, not on their provider’s bottom line,” said HHS-OIG Special Agent in Charge Derrick L. Jackson.  “We are pleased these allegations are resolved and will continue to work with the U.S. Department of Justice to investigate and pursue illegal, wasteful business arrangements.”

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $20.2 billion through False Claims Act cases, with more than $14 billion of that amount recovered in cases involving fraud against federal health care programs.

The investigation and litigation were conducted by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Southern District of Alabama, HHS-OIG and the FBI.  The claims settled by this agreement are allegations only, and there has been no determination of liability.

The case is captioned U.S. ex rel. Heesch v. Diagnostic Physicians Group, P.C. et al., Civil Action No. 11-0364-KD-B (S.D. Ala.).

TRADER PLEADS GUILTY FOR PARTICIPATION IN HIGH YIELD INVESTMENT FRAUD

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION  

Monday, July 21, 2014

Unlicensed Trader Pleads Guilty in Los Angeles for Role in Fraudulent High Yield Investment Program Scheme

An unlicensed trader who solicited $500,000 from undercover FBI agents to invest in a fraudulent high yield investment program pleaded guilty today in federal court in Los Angeles.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California and Assistant Director in Charge Bill Lewis of the FBI’s Los Angeles Field Office made the announcement.

Jessie Tolbert, 38, of Bastrop, Louisiana, pleaded guilty today to one count of conspiracy to commit wire fraud and one count of wire fraud.   He is scheduled to be sentenced on Oct. 20, 2014.

According to court documents, in December 2011, Tolbert and his co-conspirators, including Eriq Brye and Greg Preston, placed an advertisement online for an investment opportunity.   Undercover federal agents responded to this advertisement.    During several weeks of email and telephone communications, Tolbert and his co-conspirators informed the agents that a spot recently had opened up on a high yield investment program they purportedly were running and that a $500,000 investment in their program would generate $30 million in 30 days.   Tolbert did not actually run an investment program.

In an effort to induce the undercover agents to invest in the program, Tolbert and his co-conspirators made numerous material misrepresentations.   Specifically, Tolbert falsely and repeatedly guaranteed the success of the proposed trade based on his purported past success in generating similar returns in comparable trades, as well as his success in other investments in the financial industry.   Tolbert had never applied for, nor received, a license with any federal agency related to the financial industry.

Brye is a fugitive.   Preston pleaded guilty in May 2013 for conduct including his role in this investment scheme.   He is scheduled to be sentenced on December 19, 2014.

An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This case was investigated by the FBI and prosecuted by Assistant Chief Benton Curtis and Trial Attorneys Kyle Maurer and Alex Porter of the Criminal Division’s Fraud Section.

BOSTON BOMBER FRIEND CONVICTED OF IMPEDING BOMBING INVESTIGATION

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, July 21, 2014

Jury Convicts Man of Impeding Boston Marathon Bombing Investigation

A federal jury in Boston has convicted a friend of alleged Boston Marathon bomber, Dzhokhar Tsarnaev, for impeding the bombing investigation.

Assistant Attorney General John P. Carlin of the Justice Department’s National Security Division, U.S. Attorney Carmen M. Ortiz of the District of Massachusetts and Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Division, made the announcement today.

The jury found Azamat Tazhayakov, 20, guilty of conspiring to obstruct justice and obstructing justice with the intent to impede the Boston Marathon bombing investigation.   U.S. District Judge Douglas P. Woodlock scheduled sentencing for October 16, 2014.

In August 2013, Tazhayakov was indicted for obstructing a terrorism investigation.   Tazhayakov is a national of Kazakhstan who was temporarily living in the United States on a student visa while attending the University of Massachusetts Dartmouth, but at the time of his arrest his visa had been revoked.

The evidence at trial proved that on April 18, 2013, after the release of photographs of the two men suspected of carrying out the Marathon bombings (who were later identified as Tamerlan Tsarnaev and Dzhokhar Tsarnaev), Tazhayakov and others went to Tsarnaev’s dormitory room and found items that linked Tsarnaev to the bombing, including fireworks from which “gunpowder” appeared to have been removed and a jar of Vaseline that they believed could be used to make bombs.   A forensic examiner testified that Vaseline can be used to make improvised explosive devices.   A month before the bombing, Tsarnaev had told Tazhayakov that it would be good to die as shaheed (martyr) and that he knew how to build a bomb.   Tsarnaev also identified specific ingredients one could use to make a bomb, including “gunpowder.”

After searching Tsarnaev’s dormitory room on the evening of April 18, 2013, Tazhayakov helped remove Tsarnaev’s laptop and a backpack containing fireworks, a jar of Vaseline, and a thumb drive.   Later that night while Tazhayakov was monitoring the manhunt for the Tsarnaev brothers, he discussed getting rid of the backpack containing the fireworks and agreed to get rid of it.    The backpack was then placed in a garbage bag and then thrown into a dumpster outside Tazhayakov’s New Bedford apartment.   The FBI recovered this backpack a week later, after 25 agents spent two days searching a landfill in New Bedford.

The charging statute provides a sentence of no greater than 20 years in prison on the obstruction of justice count and five years on the conspiracy count, three years of supervised release, and a fine of $250,000 for each charge.   Tazhayakov will also be deported at the conclusion of this prosecution.   Actual sentences for federal crimes are typically less than the maximum penalties.   Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

This investigation was conducted by the FBI's Boston Division and member agencies of the Boston Joint Terrorism Task Force (JTTF) which is comprised of more than 30 federal, state and local enforcement agencies.   U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Massachusetts State Police, University of Massachusetts Dartmouth Department of Public Safety, New Bedford Police Department, Dartmouth Police Department, U.S. Department of Transportation – Office of Inspector General, U.S. Treasury Inspector General for Tax Administration (TIGTA), Essex County Sheriff’s Office, and Internal Revenue Service, Criminal Investigations, provided assistance to this investigation.

T he case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of Ortiz’s Anti-Terrorism and National Security Unit with assistance from the Counterterrorism Section of the Justice Department’s National Security Division.

SECRETARY KERRY, EGYPTIAN FOREIGN MINISTER SHOUKRY MAKE REMARKS IN CAIRO, EGYPT

FROM:  U.S. STATE DEPARTMENT 

Secretary of State John Kerry and Egyptian Foreign Minister Shoukry Joint Statements After Meeting With Egyptian President al-Sisi

Remarks

John Kerry

Secretary of State

Presidential Palace

Cairo, Egypt

July 22, 2014

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FOREIGN MINISTER SHOUKRY: (Via interpreter) Good morning. It’s my pleasure to welcome U.S. Secretary of State John Kerry here in Cairo. This visit comes at a very critical time and in the midst of intensified Egyptian efforts to broker a cease-fire agreement on the basis of the plan it has proposed and in the midst of intensified contacts between the various Palestinian factions and the Palestinian Authority and Israel.

I would also – Mr. John Kerry met today with our president and we held bilateral meetings at the foreign ministry. And I welcome Mr. Kerry’s and the U.S. Administration’s efforts to broker a cease-fire agreement based on the Egyptian proposal. Our visions are – we have reached a common vision, which is to push the Palestinians and Israel to reach a cease-fire agreement and to put an end to the bloodshed and the killing of innocent women and children, and also to respond rationally to the initiative which has received wide and broad international support, and it has – it addresses all aspects and all needs of the various parties.

And I would also like to seize this opportunity to urge both sides to reach a cease-fire agreement and to lift the suffering of the Palestinian people and allow for humanitarian efforts and aid efforts to enter – or to proceed on the basis of the Egyptian initiative which has received wide support. And also I would like to refer to the U.S. contribution in this regard and the – its announcement of the contribution of $47 million in humanitarian aid.

And our discussions have addressed several issues of – several regional issues of common concern, and in this regard we welcome the U.S. condemnation of the terrorist act that took place in Egypt and in which 21 of our border guards were killed. It reflects our agreement and common understanding that we should intensify our efforts to fight this phenomena that not just threatens regional peace but also international peace and security.

And without much ado, I will now give the opportunity to Secretary Kerry to speak, and I would like to note that there will be no questions or answers afterwards, but he’ll be making a statement.

SECRETARY KERRY: Well, thank you very much, Foreign Minister Shoukry. Thank you for your welcome. Thank you for your very constructive efforts and work together not just with the United States, but with the United Nations and many other countries that are interested in trying to find a way forward to achieve a cease-fire, and ultimately to achieve peace and stability for the region.

As the foreign minister said, we’re just going to make statements now and not take questions at this point because we are continuing to work and there is more work to be done. But I want to thank President Sisi and I want to thank my counterpart, Foreign Minister Shoukry, for his very generous welcome this morning, for the time we spent together, and now for the time that we have just spent with the president of Egypt, during which we discussed not only principally the crisis with respect to Gaza, but we also talked about counterterrorism efforts, our mutual interests; we talked about Libya and the region.

I want to extend on behalf of the United States our deepest condolences to the people of Egypt and to the families, particularly, for the soldiers who were lost in the Western Desert. And it only underscores the reasons for our cooperation and the significant challenges that we all face.

I want to thank the people of Egypt for their hard work in transitioning to a democracy through their election and in making difficult choices with respect to their economy and the future today. And I particularly thank them for supporting their president in the effort to try to find an end to the conflict in Gaza and particularly to try to bring an immediate cease-fire. The United States is very grateful for Egypt’s leadership and we’re here today – I am here personally at the request of President Obama – to immediately try to find a way to support Egypt’s initiative.

Since I landed in Cairo last night, I’ve had the opportunity to sit down with President Sisi, Foreign Minister Shoukry, UN Secretary General Ban Ki-moon late last night, the Arab League Secretary General al-Araby, and the intelligence chief for the Palestinian Authority, Majid Faraj.

INTERPRETER: I’m sorry. Okay.

SECRETARY KERRY: I’m just challenging her to see how much she can – (laughter) –

INTERPRETER: I think I can take care of this. Okay.

SECRETARY KERRY: And over the past several days, I’ve also been keeping in close touch with President Abbas, with Prime Minister Netanyahu, and with others. And while we still obviously have work to do, it’s also clear to me from each of the parties that I’ve met with that there is a framework available to end the violence, and that framework is the Egyptian initiative that has been put forward.

For two weeks now, we have seen Hamas launch rocket after rocket at Israeli neighborhoods and use an intricate set of tunnels that they have created in order to kidnap and try to kill Israeli citizens. And for two weeks, we have seen Israel respond, as any country has the right to do when it’s under attack, and we support Israel’s right of self-defense. But tragically, trapped in the middle of all of this are people, civilians, and we have seen hundreds of civilians in Gaza lose their lives in the conflict.

So the international community comes together and we’re here working because we’ve seen too much blood shed on all sides, including the death of two American citizens. And we have watched the humanitarian crisis in Gaza grow worse day after day – people losing their homes, all of their possessions, their access to food and water, their entire way of life.

Yesterday the United States committed to delivering $47 million in humanitarian aid, and yes, we know that much more will be needed from us and from the international community. We also understand the importance of long-term reconstruction, and once a cease-fire has been reached, we are certainly ready to discuss and work through the incredibly complicated underlying issues that have led to this crisis.

The loss of lives and the humanitarian impact is really heartbreaking, and we’re joining our international partners in reiterating our call for an immediate end to fighting and a return to the cease-fire that was reached in 2012. But just reaching a cease-fire clearly is not enough. It is imperative that there be a serious engagement, discussion, negotiation regarding the underlying issues and addressing all of the concerns that have brought us to where we are today.

Hamas has a fundamental choice to make and it is a choice that will have a profound impact for the people of Gaza. And the Egyptians have provided a framework and the forum for them to be able to come to the table to have a serious discussion together with other factions of the Palestinians. And President Abbas has been here in Israel, other countries, talking with leaders in order to try to encourage the Palestinian people to be able to come together around a solution to this crisis.

So we wanted to bring you up to date as to where we are here. We’ve had constructive meetings thus far, and I intend to be continuing our conversations through today and into the next days in order to work to see if we can find a way forward, a way that ends the violence and then addresses the underlying causes of this crisis.

So that’s where we are right now, but we know with clarity where we need to be. And for the sake of thousands of innocent families whose lives have been shaken and destroyed by this conflict on all sides, we hope we can get there as soon as possible. Thank you.

SECRETARY KERRY'S PRESS STATEMENT REGARDING PRESIDENTIAL ELECTION IN INDONESIA

Indonesia's Presidential Election

Press Statement

John Kerry

Secretary of State

Washington, DC

July 22, 2014

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I warmly congratulate Indonesia’s president-elect Joko Widodo.
The people of Indonesia united once again to show their commitment to democracy through free and fair elections.

As the world’s second and third largest democracies, the United States and Indonesia set an example for the world. We share many common values, including respect for human rights and the rule of law. Our two nations have worked hard to build the U.S.-Indonesia Comprehensive Partnership, which has strengthened our bilateral relationship so we can jointly address common regional and global challenges.

The United States looks forward to working with President-elect Widodo as we deepen our partnership, promote our shared objectives globally, and expand people-to-people ties between our nations.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JULY 22, 2014

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

NAVY

Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded $69,659,650 for cost-plus-fixed-fee delivery order 0073 against a previously issued Basic Ordering Agreement (N00019-12-G-0006) in support of the V-22 aircraft for the U.S. Air Force and U.S. Navy. This order provides for the non-recurring engineering (Phase II) of the Improved Inlet Solution (IIS) for the V-22 aircraft, including completion of preliminary and critical design reviews; installation of an IIS retrofit kit for installation on a CV-22 aircraft for demonstration and operation; installation of aircraft instrumentation to support flight test analysis; flight and qualification testing of the IIS design; and removal of the instrumentation from the test aircraft following flight testing. Work will be performed Amarillo, Texas (73 percent), and Philadelphia, Pennsylvania (27 percent), and is expected to be completed in December 2018. Fiscal 2014 research, development, test and evaluation (Air Force and Navy) funds in the amount of $31,290,663 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This delivery order combines purchases for the U.S. Air Force ($41,795,790; 60 percent) and the U.S. Navy ($27,863,860; 40 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

ARMY

Boeing Co., Ridley Park, Pennsylvania, was awarded a $65,358,994 firm-fixed-price contract for 204 Cargo On/Off Loading System (COOLS) A-Kits; 204 COOLS B-Kits; and 22 COOLS Ballistic Protection System (BPS) Kits. Work will be performed in Ridley Park, Pennsylvania, with an estimated completion date of Nov. 29, 2019. Bids were solicited via the Internet with one received. Fiscal 2013 other procurement funds in the amount of $65,358,994 are being obligated at the time of the award. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-14-C-0063).

Inglett & Stubbs International, Ltd, Smyrna, Georgia, was awarded a $7,449,713 firm-fixed-price contract with options, for a smart power infrastructure demonstration for energy reliability and security, Phase 3. Work will be performed at Camp H.M. Smith, Hawaii, with an estimated completion date of May 4, 2015. Bids were solicited via the Internet with five received. Military construction funds for fiscal 2010 ($330,642) and fiscal 2014 ($7,119,071) are being obligated at the time of the award. U.S. Army Corps of Engineers, Philadelphia, Pennsylvania, is the contracting activity (W912BU-14-C-0020).

AIR FORCE

Northrop Grumman Corporation, Aerospace Systems, El Segundo, California, has been awarded an $18,000,000 firm-fixed-price modification (P00257) to F19628-00-C-0100 for a radar modification under the Multi-Platform Radar Technology Insertion Program. The total cumulative face value of the contract is $1,557,683,365. Work will be performed at El Segundo, California, and work is expected to be completed by March 31, 2017. Fiscal 2012 aircraft procurement funds in the amount of $18,000,000 are being obligated at time of award. Air Force Life Cycle Management Center, Hanscom Air Force Base, Massachusetts, is the contracting activity.

Lockheed Martin Corp. Information Systems and Global Solutions, Littleton, Colorado, has been awarded a $16,948,139 contract for prototype hardware/software system. The scope of this effort is to provide Air Force Research Laboratory innovative solutions for multi-platform signal collection, processing, exploitation and dissemination for new and existing Intelligence, Surveillance, and Reconnaissance (ISR) platforms. Efforts will include national and tactical collaboration across multiple enterprise ISR assets, innovative applications provided as processes/status for sensor status, processing and exploitation, enhanced enterprise collection planning techniques, and solutions for multi-intelligence sensor cross cueing through streamlined collection management techniques. Work will be performed at Littleton, Colorado, and is expected to be completed by July 21, 2016. This award is the result of a competitive acquisition; offers were solicited electronically and 11 offers were received. Fiscal 2013 research, development, testing and evaluation funds in the amount of $6,062,209 are being obligated at time of award. Air Force Research Laboratory/RIKE, Rome, New York, is the contracting activity (FA8750-14-C-0081).

DEFENSE LOGISTICS AGENCY

Carter Industries, Inc.,* Olive Hill, Kentucky, has been awarded a maximum $9,417,600 modification (P00103) exercising the third option period on a one-year base contract (SPM1C1-11-D-1026) with three one-year option periods. This is a firm-fixed-price contract for improved combat vehicle crewman’s coveralls, universal camouflage pattern. Locations of performance are Kentucky and New York, with a July 30, 2015 performance completion date. Using military service is Army. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

*Small In-HUBZone Business

WHITE HOUSE FACT SHEET ON JOB-DRIVEN TRAINING AND AMERICAN OPPORTUNITY

FROM:  THE WHITE HOUSE 

FACT SHEET: Ready to Work At a Glance: Job-Driven Training and American Opportunity

New Actions to Expand Job-Driven Training and Broaden the Pathway to the Middle Class

“So tonight, I've asked Vice President Biden to lead an across-the-board reform of America's training programs to make sure they have one mission: train Americans with the skills employers need, and match them to good jobs that need to be filled right now. That means more on-the-job training, and more apprenticeships that set a young worker on an upward trajectory for life. It means connecting companies to community colleges that can help design training to fill their specific needs. And if Congress wants to help, you can concentrate funding on proven programs that connect more ready-to-work Americans with ready-to-be-filled jobs.”

— President Obama, State of the Union, January 28, 2014

Across the country, federal job training programs help hard-working Americans find good jobs and careers, employers recruit and hire the skilled workers they need to compete, and American communities build the skilled workforces they need to attract business investment and create jobs. In order to continue to grow the economy, expand opportunity, and widen the pathway to the middle class, the President and Vice President are committed to improving training opportunities for Americans by replicating strategies that work.

In his 2014 State of the Union Address, and as part of his plan to make 2014 a Year of Action, the President announced that he was asking the Vice President to lead a review of federal training programs in order to identify and implement steps to make these programs more “job-driven”: to be responsive to the needs of employers in order to effectively place ready-to-work Americans in jobs that are available now or train them in the skills needed for better jobs. Today, the President and Vice President will announce the results of the review, including new actions by the federal government and the private sector. The Vice President will release a new report that details these actions and highlights successful job-driven strategies. The President will also sign the Workforce Innovation and Opportunity Act, which will help improve business engagement and accountability across federally-funded training programs.

In the months ahead, the Administration will continue to work with business and union leaders, school administrators, workforce experts, and state and local elected officials to replicate successful training strategies in communities throughout the United States.

For additional details, click HERE.

Engaging Employers in Partnerships to Define Needed Skills, Offer Apprenticeships, and Hire Graduates

Matching ready-to-work Americans to in-demand jobs works best when employers engage to define needed skills, shape training programs, and invest in apprenticeships and on-the-job training.

• Competitive grants to launch hundreds of job-driven industry partnerships across the country. $950 million in job-driven grants have already been launched and will have been awarded to over 100 job-driven industry partnerships by this fall. Starting October 1, all applicants for 25 annual competitive grant programs across federal agencies must follow the job-driven checklist, meaning that over $1.4 billion in existing job training funds for youth, displaced workers, long-term unemployed, and others will be awarded to hundreds of community organizations and education and training institutions in partnership with employers.
• Expanding American Apprenticeships. In addition to making $100 million available for the American Apprenticeship Grants to expand apprenticeships to more Americans, the Administration has engaged high-growth industries and is today announcing new resources to help employers start or expand apprenticeships.
• Using a job-driven checklist to ensure $15 billion in job training funds are more effective. Agencies boiled down what makes training programs successful and created a Job-Driven Checklist that will be used to drive successful practices like employer engagement and apprenticeship into all training programs.

Information to Help Job Seekers, States, and Communities Make Smart Choices

In-demand skills and job opportunities evolve as our economy and technology changes. Making data-driven tools available at all levels allows individuals, employers, and taxpayers to realize higher returns on training investments.

• Ensure all federal programs track employment outcomes. Employment measures will be added to any program without them, including programs serving Americans with disabilities and veterans.
• Mobilizing America’s innovators. Following a White House Data Jam for Job Seekers, Glassdoor, Apploi and others are committing to make personalized guidance on job search and training freely available.
• Give states and localities information and incentives to tailor job-driven strategies locally. Agencies will provide states guidance and flexibility to tailor job-driven strategies, offering grants for implementation.

Innovation and Promoting More Effective Strategies

We will enable agencies to pilot promising job-driven training strategies and learn how best to scale them.

• High-impact innovations in higher education. The Department of Education will waive particular federal student aid rules to enable the testing of innovative education models awarding degrees based on demonstrated skills rather than seat time, and the Department of Labor will award $25 million to create an online skills academy designed to prepare adult learners for in-demand careers.
• Testing effective strategies for adult learners. The Department of Agriculture will award $200 million for up to 10 pilot projects to rigorously test employment and training programs. A partnership of employers, foundations, and non-profits is launching a national competition to crowd source for the best technologies to upskill this population.
• Testing strategies for disconnected youth. The Administration will allow up to 10 state and local pilot programs to blend funds from multiple federal programs to test new models for serving disconnected youth, and the Department of Labor will use Job Corps’ demonstration authority to experiment with new models to improve outcomes for youth under age 20.

SECRETARY KERRY'S REMARKS WITH UN SECRETARY GENERAL KI-MOON

FROM:  U.S. STATE DEPARTMENT 

Remarks With UN Secretary General Ban Ki-moon

Remarks

John Kerry

Secretary of State

Cairo, Egypt

July 21, 2014

QUESTION: Mr. Secretary, can you tell us about the new aid that you’re announcing for Gaza today?

SECRETARY KERRY: Let me just say to everybody that, first of all, President Obama and all of us are deeply appreciative for the secretary general’s significant efforts to try to help bring about a ceasefire in the conflict in Gaza. And the secretary general has been meeting in the region, but he purposefully stayed over here a little extra time in order that we could meet and discuss ways in which we might be able to bring about or encourage the parties to embrace a ceasefire under the right circumstances.

We are deeply concerned about the consequences of Israel’s appropriate and legitimate effort to defend itself. No country can stand by while rockets are attacking it and tunnels are dug in order to come into your country and assault your people. But always, in any kind of conflict there is a concern about civilians, about children, women, communities that are caught in it. And we are particularly trying to focus on a way to respond to their very significant needs.

On behalf of President Obama and the United States, I’m privileged to announce tonight that the United States will immediately provide $47 million in order to provide direct humanitarian assistance of no other kind but humanitarian assistance to try to alleviate some of the immediate humanitarian crisis.

And meanwhile, we will work to see if there is some way to not only arrive at a ceasefire of some kind, but to get to a discussion about the underlying issues. Nothing will be resolved by any ceasefire, temporary or long, without really getting to those issues at some point. And that’s what we need to do.

Mr. Secretary General.

SECRETARY GENERAL BAN: Secretary Kerry, ladies and gentlemen, it’s a great pleasure to see you, and I’m very pleased to be joined by you today. Our joint efforts will, I hope, make a great contribution to ongoing mediation efforts by the parties in the region to end the violence. I would like to thank Secretary Kerry for his active engagement and the tireless commitment for the peace and stability in the Middle East, and in particular these days in Gaza and Israel.

Our joint efforts are rooted on three mutually reinforcing efforts. First and foremost, we must find a way to stop the violence. So many people have died. As the Secretary just said, it’s mostly civilian population, women and children. It’s very sad, it’s tragic. We have to do all what we can do. That is why I am here in support of the Egyptian mediation proposal, and I’m coming from Qatar where I met Qatari emir. And also, I met President Abbas in Doha. And I went to Kuwait and I had the very good meeting with the Kuwaiti emir who is now a chair of the League of Arab State summit meeting. Tomorrow I am going to Israel and Palestine.

And second priority should be that we are urging the parties return to a dialogue. I believe that all the options should be on the table so that they can address these issues through dialogue in a peaceful means without resorting to violence.

Thirdly, we hope that they will also address root causes of this crisis. There have been many dialogues and there have been many crises, but we have not yet been able to address all these root causes. I deeply appreciate and highly commend Secretary Kerry’s diplomatic efforts to have Middle East peace process. I sincerely hope that when a ceasefire is realized that you will immediately resume the dialogue at this time.

I full understand, fully sympathize the sufferings of the Palestinian people, particularly in Gaza. These restrictions should be lifted as soon as possible so that people should not resort to this kind of violence as a way of expressing their grievances. At the same time, I fully appreciate the legitimate right to defend their country and citizens of Israel. Israel should also be able to live in peace and security without being endangered of their citizens.

I’m asking that Hamas should immediately stop firing rocket. While I understand all how, why Israelis has to respond militarily, but there is a proportionality. And most of the Palestinian people have been – most of the death toll are Palestinian people.

Therefore at this time our first and foremost effort should be focused on ending violence. I hope during Secretary Kerry’s and my visit in the region these days, we’ll be able to help the parties to agree to a ceasefire in a reasonable form and immediately return to dialogue and address the root causes.

And I really appreciate, again, your diplomatic efforts, and United Nations will spare no efforts. And I really appreciate your very generous humanitarian assistance for the Palestinian people. UN is trying to work to mobilize necessary humanitarian assistance as much as we can, as we have been doing in the past. Thank you.

SECRETARY KERRY: Let me just say in furtherance quickly – I would like to just say in furtherance of what the secretary general just said, we are both here in support of and in an effort to help get implemented the Egyptian initiative for the ceasefire. Israel and Egypt have encouraged that, and Israel has accepted that ceasefire proposal. So only Hamas now needs to make the decision to spare innocent civilians from this violence.

I know from talking to Prime Minister Netanyahu earlier tonight Israel is obviously going to defend itself, but he feels deeply, as does everybody, what – the pressures that this creates on civilians. But today, Israel lost more soldiers in defense of their country, and so Israel feels this as strongly as anybody. It is important for all of us to try to make certain that we do everything possible.

Hamas now has a decision. Only Hamas is out there awaiting the decision, and we hope they will make the right decision. The secretary general and I will both make certain that the issues that need to be discussed will be discussed if we go forward, but we must have an atmosphere within which people in all concerns and parties can come together to have those discussions.

Thank you.

NASA VIDEO: BIG MYSTERY IN THE PERSEUS CLUSTER

ASSETS FROZEN OF DEBT COLLECTOR ACCUSED OF USING LIES AND THREATS

FROM:  U.S. FEDERAL TRADE COMMISSION 

Court Halts Debt Collector’s Operations, Freezes Assets

Defendants Behind Buffalo, New York-based Operation Used Lies and Threats to Pursue Fraudulent Debt Collection Strategy, FTC and New York Attorney General Allege

At the request of the Federal Trade Commission and the New York Attorney General’s Office, a U.S. district court halted a Buffalo, NY-based debt collection operation, froze the operation’s assets, and appointed a temporary receiver to take over the defendants’ business pending trial.

In a joint complaint, the FTC and New York Attorney General charged the operation with using lies and threats against consumers in violation of federal and state law. The defendants misrepresented that consumers had committed check fraud or another criminal act; falsely threatened to arrest or imprison consumers, sue them, garnish their wages, or put a lien on their property; failed to back up their claims that consumers owed the debt; charged illegal fees; and improperly revealed consumers’ debts to third parties, according to the complaint.

Operating the scheme since February 2010, the defendants have collected at least $8.7 million dollars in payments for purported debts, according to the complaint. The joint complaint charged that the defendants’ tactics violated the Federal Trade Commission Act, the Fair Debt Collection Act and various New York state laws.

“These debt collectors continued to harass consumers and violate the law after the validity of the debt was called into question, and after the New York Attorney General’s office ordered them to stop,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “By working together with our state partners, we can leverage our resources to stop these illegal tactics.”

“All too often, innocent New Yorkers are relentlessly harassed by predatory, abusive debt collectors,” Attorney General Eric T. Schneiderman said. “My office, along with partners like the Federal Trade Commission, will keep fighting to protect hardworking consumers and put a stop to unfair financial bullying once and for all.”

Part of the FTC’s continuing crackdown on scams that target consumers in financial distress, the agencies have charged three individuals – Joseph C. Bella, III, Diane Bella, Luis A. Shaw – and 9 interrelated companies they control. Going by various names including National Check Registry, the operation began using another name – eCapital Services, LLC – to evade detection and continue its illegal behavior after signing an agreement with New York State authorities in October 2013 that prohibited it from violating federal and state debt collection laws, according to the complaint.

Also, according to the complaint, the defendants:

told one consumer in Washington State that they would have the “Washington County Police” issue a warrant for her arrest, and another serving in the military that they would bring an action against him under the Uniform Code of Military Justice;
said the only way to avoid arrest, imprisonment, lawsuits, wage garnishments, and seized assets would be to make an immediate payment over the phone;
continued to accuse consumers of check fraud and other crimes even after they produced evidence showing they didn’t owe the debt in question;
contacted friends, family members, and co-workers of consumers whom they claimed owed a debt, and in some cases, not only revealed the supposed debt but also said the consumers had committed check fraud, and would be arrested or imprisoned if the debt was not paid;
added an illegal $8 “processing fee” when consumers made payments on supposed debts over the phone;
failed to provide consumers with debt collection notices and disclosures that are required under state and federal law, making it difficult for consumers to determine whether they owed the debt, and how they could dispute its validity; and
continued trying to collect a debt from a consumer who had discharged the debt in bankruptcy.

In addition to Joseph and Diane Bella, Luis A. Shaw, National Check Registry, LLC, and eCapital Services, LLC, the complaint names as defendants Check Systems, LLC, Interchex Systems, LLC, Goldberg Maxwell, LLC, Morgan Jackson, LLC, Mullins & Kane, LLC, Buffalo Staffing, Inc., and American Mutual Holdings, Inc.

The Commission vote authorizing the staff to file the complaint was 5-0. The FTC and the New York Attorney General’s Office filed the complaint and the request for a temporary restraining order in the U.S. District Court for the Western District of New York on June 23, 2014. The court granted the plaintiffs’ request for a temporary restraining order with an asset freeze, the appointment of a receiver, immediate access to the business premises and limited discovery on June 24, 2014, and it approved a stipulated preliminary injunction on July 10, 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.

DOD VIDEO: WOUNDED WARRIOR ROWS ACROSS THE PACIFIC

FORMER QUALCOMM EXECUTIVE PLEADS GUILTY TO INSIDER TRADING, MONEY LAUNDERING

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, July 21, 2014

Former Senior Executive of Qualcomm Pleads Guilty to Insider Trading and Money Laundering

Jing Wang, 51, the former Executive Vice President and President of Global Business Operations for Qualcomm Inc., today pleaded guilty to insider trading in shares of Qualcomm and Atheros Communications Inc.   Wang also pleaded guilty to laundering the proceeds of his insider trading using an offshore shell company.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney L aura E. Duffy of the Southern District of California made the announcement.   Wang pleaded guilty today in federal court in San Diego before U.S. District Judge William Q. Hayes .

“Not satisfied with his lucrative executive position at Qualcomm, Jing Wang traded on insider information about the company’s acquisitions and earnings to gain an illegal advantage in the financial market,” said Assistant Attorney General Caldwell.   “Wang then laundered close to $250,000 in insider trading profits, and created a cover-up story to hide his crimes.   We will continue to prosecute those who believe they can make easy money by breaking the laws that ensure a level playing field in the financial marketplace.”

“Jing Wang blatantly and repeatedly abused the trust placed in him by Qualcomm and the company’s shareholders,” said United States Attorney Duffy.   “To make matters worse, he then misused the financial system to conceal his insider trading profits and enlisted his brother and stock broker to obstruct several investigations.   Wang’s obstructive acts, though ultimately unsuccessful, were serious affronts to the rule of law.   We will continue to use our excellent partnerships with the Criminal Division, the FBI, IRS-CI and our other law enforcement partners to not only prosecute securities fraud, but also disrupt attempts like Wang’s to obscure criminal conduct from the eyes of government investigators.”

According to court documents, Wang committed insider trading on three separate occasions over a ten-month period in 2010 and 2011.   In early 2010, Wang purchased approximately $277,739 of Qualcomm stock prior to the company’s unexpected announcement of a dividend increase and stock repurchase program.   In December 2010, while in Hong Kong, Wang purchased Atheros stock hours after Qualcomm’s Board of Directors made a non-public offer to purchase Atheros.   Just a few weeks later, in January 2011, Wang directed his stock broker, Gary Yin, to sell the Atheros stock in a brokerage account held in the name of an offshore entity, Unicorn Global Enterprises, and used the proceeds to purchase Qualcomm stock, one day before Qualcomm announced record earnings results.   In total, Wang illegally gained approximately a quarter of a million dollars from these three illegal transactions.

Wang also pleaded guilty to money laundering resulting from transferring the illegal proceeds in the Unicorn account – over $525,000 – to another nominee brokerage account in the British Virgin Islands for Clearview Resources Ltd.   Wang also admitted in his plea agreement to obstructing justice by conspiring with his brother, Bing Wang, and Yin to fabricate evidence and concoct a false cover story that Bing Wang conducted the illegal stock trades.

Wang was originally indicted in September 2013.   Bing Wang, who is currently believed to reside in China, remains charged and is wanted on an international arrest warrant.   Gary Yin pleaded guilty to conspiring with Jing Wang and Bing Wang to obstruct justice and launder money, and is currently scheduled to be sentenced on Sept. 15, 2014.

The department appreciates the substantial assistance it received from the Securities and Exchange Commission’s Los Angeles Regional Office.

This case was investigated by the FBI’s San Diego Field Office and the Internal Revenue Service-Criminal Investigation’s San Diego Field Division.   The case is being prosecuted by Trial Attorney James P. McDonald of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eric J. Beste of the Southern District of California.

SIX CHARGED FOR ROLES IN ANDROID MOBILE DEVICE APP PIRACY SCHEMES

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, July 21, 2014

Members of Three Different Android Mobile Device App Piracy Groups Charged

Two Members of the SnappzMarket Piracy Group Arrested

Three federal indictments were unsealed today in the Northern District of Georgia charging six members of three different piracy groups – Appbucket, Applanet and SnappzMarket – for their roles in the illegal distribution of copies of copyrighted Android mobile device applications, or “apps,” announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia, and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office.

Two members of the SnappzMarket Group – Joshua Ryan Taylor, 24, of Kentwood, Michigan, and Scott Walton, 28, of Cleveland, Ohio – were arrested today.  Taylor will appear before U.S. Magistrate Judge Ellen S. Carmody in Grand Rapids, Michigan, and Walton will appear before U.S. Magistrate Judge William H. Baughman, Jr. in Cleveland, Ohio.

“As a result of their criminal efforts to make money by ripping off the hard work and creativity of high-tech innovators, the defendants are charged with illegally distributing copyrighted apps,” said Assistant Attorney General Caldwell.  “The Criminal Division is determined to protect the labor and ingenuity of copyright owners and to keep pace with criminals in the modern, technological marketplace.”

“Copyright infringement discourages smart people from doing innovative things,” said U.S. Attorney Yates. “This problem is especially acute when it comes to rapidly developing technologies, like apps for smart phones, and these defendants are now being held accountable for the intellectual property they stole.”

“Today’s federal indictments are the direct result of an extensive and thorough federal investigation into three groups of individuals aggressively engaged in and profiting from the theft of intellectual property,” said Special Agent in Charge Johnson.  “While copyright infringement is the direct theft of the hard work of others in the form of research and development expended, it can also negatively impact incentives for further or future development of those ideas or applications.   The FBI will continue to provide significant investigative resources toward such groups engaged in such wholesale pirating or copyright violations as seen here.”

An indictment returned on June 17, 2014, by a grand jury in the Northern District of Georgia charges Gary Edwin Sharp II, 26, of Uxbridge, Massachusetts, along with Taylor and Walton, with one count of conspiracy to commit criminal copyright infringement, and also charges Sharp with two counts of criminal copyright infringement.  According to the indictment, Sharp, Taylor and Walton identified themselves as members of the SnappzMarket Group.  From May 2011 through August 2012, they conspired with Kody Jon Peterson, 22, of Clermont, Florida, and other members of the SnappzMarket Group to reproduce and distribute over one million copies of copyrighted Android mobile device apps, with a total retail value of over $1.7 million, through the SnappzMarket alternative online market without permission from the copyright owners of the apps, who would otherwise sell copies of the apps on legitimate online markets for a fee.  A separate information filed on Jan. 23, 2014 charged Peterson with one count of conspiracy to commit criminal copyright infringement, and he pleaded guilty on April 14, 2014.

An indictment returned on June 17, 2014, by a grand jury in the Northern District of Georgia charged James Blocker, 36, of Rowlett, Texas, with one count of conspiracy to commit criminal copyright infringement.  According to the indictment, he and his fellow conspirators identified themselves as members of the Appbucket Group.  From August 2010 to August 2012, Blocker conspired with Thomas Allen Dye, 21, of Jacksonville, Florida; Nicholas Anthony Narbone, 26, of Orlando, Florida; Thomas Pace, 38, of Oregon City, Oregon; and other members of the Appbucket Group to reproduce and distribute over one million copies of copyrighted Android mobile device apps, with a total retail value of over $700,000, through the Appbucket alternative online market without permission from the copyright owners of the apps, who would otherwise sell copies of the apps on legitimate online markets for a fee.  A separate information filed on Jan. 24, 2014 charged Dye, Narbone, and Pace with one count of conspiracy to commit criminal copyright infringement.  Dye, Narbone and Pace pleaded guilty to the charged conspiracy on March 10, 2014, March 24, 2014 and April 15, 2014, respectively.

An indictment returned on June 17, 2014, by a grand jury in the Northern District of Georgia charges Aaron Blake Buckley, 20, of Moss Point, Mississippi; David Lee, 29, of Chino Hills, California; and Sharp with one count of conspiracy to commit criminal copyright infringement, and also charges Lee with one count of aiding and abetting criminal copyright infringement and Buckley with one count of criminal copyright infringement.  According to the indictment, Buckley, Lee, and Sharp identified themselves as members of the Applanet Group.  From May 2010 through August 2012, they conspired with other members of the Applanet Group to reproduce and distribute over 4,000,000 copies of copyrighted Android mobile device apps, with a total retail value of over $17 million, through the Applanet alternative online market without permission from the copyright owners of the apps, who would otherwise sell copies of the apps on legitimate online markets for a fee.

The indictments charge leading members of the SnappzMarket Group, the Appbucket Group, and the Applanet Group with renting computer servers to host websites such as www.snappzmarket.com , www.appbucket.net , and www.applanet.net , respectively, to provide digital storage for the pirated copies of copyrighted Android apps that each group distributed to their members or subscribers.  On Aug. 21, 2012, seizure orders were executed against these three website domain names for the illegal distribution of copies of copyrighted Android mobile device apps – the first time website domains involving mobile device app marketplaces have been seized.

Charges contained in an indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case was investigated by the FBI.  Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher Bly of the Northern District of Georgia are prosecuting the case, with the assistance of Assistant U.S. Attorney Brian M. Pearce of the Northern District of Georgia.  The Office of International Affairs provided assistance in the matter.  Significant assistance in the case has also been provided by the CCIPS Cybercrime Lab.

RESEARCH USING SUPERCOMPUTER THAT COULD LINK GENES TO TRAITS AND DISEASES

FROM:  NATIONAL SCIENCE FOUNDATION 

"Bottom-up" proteomics

NSF-funded supercomputer helps researchers interpret genomes
Tandem protein mass spectrometry is one of the most widely used methods in proteomics, the large-scale study of proteins, particularly their structures and functions.

Researchers in the Marcotte group at the University of Texas at Austin are using the Stampede supercomputer to develop and test computer algorithms that let them more accurately and efficiently interpret proteomics mass spectrometry data.

The researchers are midway through a project that analyzes the largest animal proteomics dataset ever collected (data equivalent to roughly half of all currently existing shotgun proteomics data in the public domain). These samples span protein extracts from a wide variety of tissues and cell types sampled across the animal tree of life.

The analyses consume considerable computing cycles and require the use of Stampede's large memory nodes, but they allow the group to reconstruct the 'wiring diagrams' of cells by learning how all of the proteins encoded by a genome are associated into functional pathways, systems, and networks. Such models let scientists better define the functions of genes, and link genes to traits and diseases.

"Researchers would usually analyze these sorts of datasets one at a time," Edward Marcotte said. "TACC let us scale this to thousands."

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

FROM:  U.S. DEFENSE DEPARTMENT

CONTRACTS

AIR FORCE

Aleut Facilities Support Services, LLC,* Colorado Springs, Colorado, has been awarded a $95,986,770 firm-fixed-price contract for civil engineering support services. The contract provides civil engineer support services to cadets, active duty military members, civilian employees, and contractor employees to include service request management, real property maintenance, repair and operations, planning and engineering services, environmental services and protection, real property management, housing and furnishing management, and emergency response services. Work will be performed at the U.S. Air Force Academy to include Farish Recreation Area and Bullseye Auxiliary Airfield in Colorado, and is expected to be completed by July 31, 2019. This award is the result of a competitive acquisition set-aside for small business; the solicitation was posted on the Federal Business Opportunities website, and nine offers were received. The contract is incrementally funded, and fiscal 2014 operations and maintenance funds in the amount of $1,566,355 are being obligated at the time of award. The 10th Contracting Squadron, U.S. Air Force Academy, Colorado, is the contracting activity (FA7000-14-C-0030).

Aleut Facilities Support Services, LLC,* Colorado Springs, Colorado, has been awarded a $14,714,248 firm-fixed price contract for cadet support services. The contract provides services to cadets, active duty military members, civilian employees, and contractor employees, to include Cadet Wing Operations (support for cadet events, manage cadet quarters, furnishings, and supplies, and operation of cadet quarters facilities), academic program support (develop presentation materials and supplies, operation of academic facilities), and athletic program support (support for athletic events, maintain sports equipment and supplies, operation of athletic facilities). Work will be performed at the U.S. Air Force Academy, Colorado, and is expected to be completed by July 31, 2019. This award is the result of a competitive acquisition set-aside for small business; the solicitation was posted on the Federal Business Opportunities website, and six offers were received. The contract is incrementally funded, and fiscal 2014 operations and maintenance funds in the amount of $235,632 are being obligated at the time of award. The 10th Contracting Squadron, U.S. Air Force Academy, Colorado, is the contracting activity (FA7000-14-C-0031).

ARMY

General Dynamics Land Systems, Sterling Heights, Michigan, was awarded a $65,256,769 modification (P00010) to foreign military sales contract W56HZV-13-D-0015 for specialized training, contractor logistics support, and base life support for the Iraq M1A1 Abrams Program. Funding and work location will be determined with each order. Estimated completion date is Feb. 28, 2015. Army Contracting Command, Warren, Michigan, is the contracting activity.
T. L. Wallace Construction, Inc., Columbia, Mississippi, was awarded a $25,000,000 firm-fixed-price contract for advanced contract initiative emergency temporary residential roof repairs for the U.S. Army Corps of Engineers/Federal Emergency Management Agency disaster response in Hawaii. Funding and work location will be determined with each order; estimated completion date is July 31, 2019. Bids were solicited via the Internet with five received. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-14-D-0015).
Mirador Enterprises, Inc.,* El Paso, Texas, was awarded an $8,440,000 firm-fixed-price contract for construction of a flight simulator. Work will be performed in Fort Carson, Colorado, with an estimated completion date of Jan. 25, 2016. Bids were solicited via the Internet with eight received. Fiscal 2014 military construction funds in the amount of $8,440,000 are being obligated at the time of the award. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-14-C-0021).

Milpower Source,* Belmont, New Hampshire, was awarded a $6,716,559 firm-fixed-price contract for portable universal battery systems for the M119A3 Howitzer. Funding and work location will be determined with each order, with an estimated completion date of July 21, 2018. One bid was solicited with one received. Army Contracting Command, Picatinny Arsenal, New Jersey, is the contracting activity (W15QKN-14-D-0084).

Central Power Systems and Services,* Liberty, Missouri, was awarded a $6,540,024 firm-price contract with economic price adjustment for Detroit Diesel engine pistons and fuel injectors. Funding and work location will be determined with each order, with an estimated completion date of Sept. 30, 2019. Bids were solicited via the Internet with three received. Army Contracting Command, Red River Army Depot, Texarkana, Texas, is the contracting activity (W911RQ-14-D-0026).

Ch2M Hill Constructors, Inc, Englewood, Colorado, was awarded a $6,625,200 modification (U00048) to contract DACA87-00-D-0043 for water and waste water operation and maintenance. Funding will be determined with each order. Estimated completion date is June 30, 2015. Work will be performed at Fort Campbell, Kentucky. Army Contracting Command, Fort Campbell, Kentucky, is the contracting activity.

NAVY

Korte Construction Co., doing business as The Korte Co., St. Louis, Missouri, is being awarded a $36,154,000 firm-fixed-price contract for design and construction of the P-8A Multi-Missioned Maritime Aircraft Training Facility at Naval Air Station Whidbey Island. The work to be performed provides for design and construction of a two-story operational training facility that includes space for eight operational flight trainers, and six weapons tactical trainers, with associated support network and communications equipment, classrooms and administrative spaces. The facility will include bridge cranes, special access program facility spaces, and extensive networking equipment. The contract also contains two unexercised options, which if exercised, would increase cumulative contract value to $36,259,780. Work will be performed in Oak Harbor, Washington, and is expected to be completed by January 2016. Fiscal 2014 military construction (Navy) contract funds in the amount of $36,154,000 are being obligated on this award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website, with 23 proposals received. The Naval Facilities Engineering Command, Northwest, Silverdale, Washington, is the contracting activity (N44255-14-C-5002).
AMEC Environment & Infrastructure, Inc., Blue Bell, Pennsylvania (N62583-09-D-0128); Gilbane Federal, Walnut Creek, California (N62583-09-D-0129); CB&I Federal Services LLC, Baton Rouge, Louisiana (N62583-09-D-0130); Weston Solutions, Inc., West Chester, Pennsylvania, (N62583-09-D-0131); and Willbros Government Services (U.S.), LLC, Tulsa, Oklahoma (N62583-09-D-0132), are each being awarded a firm-fixed-price modification to increase the maximum, cumulative dollar value for five indefinite-delivery/indefinite-quantity multiple award construction contracts in support of the Naval Facilities and Engineering Expeditionary Warfare Center, Port Hueneme. The work to be performed provides for engineering, cleaning, inspection, construction and repair of fuel systems at Department of Defense (DOD) facilities throughout the world. The combined total value for all five modifications will be $30,000,000. No task orders are being issued at this time. After award of this modification, the total cumulative contract value will be $460,000,000. All work will be performed at various DOD facilities worldwide, including outside the contiguous United States (65 percent) and within the contiguous United States (35 percent), and is expected to be completed by March 2015. No funds will be obligated at time of award; funds will be obligated on individual task orders as they are issued. The Naval Facilities and Engineering Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity.

Alutiiq Pacific LLC,* Anchorage, Alaska, is being awarded a potential $23,221,444 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee contract to support the Space and Naval Warfare Systems Center Pacific (SSC Pacific) Radio Frequency and Network Systems Support Division to provide satellite communications, radio frequency and navigation systems support services. This is one of three contracts awarded: each awardee will have the opportunity to compete for task orders during the ordering period. This three-year contract includes two, one-year options, which, if exercised, would bring the potential value of this contract to an estimated $39,263,194. Work will be performed in San Diego, California (80 percent); Anchorage, Alaska (15 percent); and onboard Navy ships (five percent); work is expected to be completed July 20, 2017. Fiscal 2014 operations and maintenance (Navy); shipbuilding and conversion (Navy); other procurement, (Navy); and research, development, test and evaluation funds in the amount of $25,000 will be obligated at the time of award, and will not expire at the end of the current fiscal year. This contract was competitively procured via small business set-aside solicitation through publication on the Federal Business Opportunities website and the SPAWAR e-Commerce Central website. Ten proposals were received and three were selected for award. SSC Pacific, San Diego, California, is the contracting activity (N66001-14-D-0035).
Systems Technology Forum Limited,* Fredericksburg, Virginia, is being awarded a potential $22,850,232 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee contract to support the Space and Naval Warfare Systems Center Pacific (SSC Pacific) Radio Frequency and Network Systems Support Division to provide satellite communications, radio frequency and navigation systems support services. This is one of three contracts awarded; each awardee will have the opportunity to compete for task orders during the ordering period. This three-year contract includes two, one-year options, which, if exercised, would bring the potential value of this contract to an estimated $38,718,475. Work will be performed in San Diego, California (80 percent); Fredericksburg, Virginia (15 percent); and onboard Navy ships (five percent), and is expected to be completed July 20, 2017. Fiscal 2014 operations and maintenance (Navy); shipbuilding and conversion (Navy); other procurement (Navy); and research, development, test and evaluation funds in the amount of $25,000 will be obligated at the time of award, and will not expire at the end of the current fiscal year. This contract was competitively procured via small business set-aside solicitation through publication on the Federal Business Opportunities website and the SPAWAR e-Commerce Central website. Ten proposals were received and three were selected for award. SSC Pacific, California, is the contracting activity (N66001-14-D-0137).

Benaka, Inc.,* New Brunswick, New Jersey, is being awarded a $6,673,999 firm-fixed-price contract for demolition of Buildings 152 and 427 and renovation of Building 474 at Naval Submarine Base New London. The work to be performed will reduce the overall facility footprint and consolidate functions. The renovation of Building 474 will include hazardous materials abatement, some space reconfiguration, elevator update, heating, ventilation and air conditioning, electric updates, plumbing and fire protection updates in compliance with current codes, windows replacement, roof replacement and interior finishes replacement. Work will be performed in New London, Connecticut, and is expected to be completed by February 2016. Fiscal 2014 operation and maintenance (Navy) contract funds in the amount of $6,673,999 are being obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website, with nine proposals received. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-14-C-5224).

*Small business

PRESIDENT OBAMA MAKES STATEMENT ON UKRAINE AND GAZA

FROM:  THE WHITE HOUSE 

Statement by the President on the Situation in Ukraine and Gaza

South Lawn

11:16 A.M. EDT

THE PRESIDENT:  Good morning, everybody.  I want to make a brief statement about the tragedy in Ukraine.  Before I do, though, I want to note that Secretary Kerry has departed for the Middle East.  As I’ve said many times, Israel has a right to defend itself against rocket and tunnel attacks from Hamas.  And as a result of its operations, Israel has already done significant damage to Hamas’s terrorist infrastructure in Gaza.  I’ve also said, however, that we have serious concerns about the rising number of Palestinian civilian deaths and the loss of Israeli lives.  And that is why it now has to be our focus and the focus of the international community to bring about a cease-fire that ends the fighting and that can stop the deaths of innocent civilians, both in Gaza and in Israel.

So Secretary Kerry will meet with allies and partners.  I’ve instructed him to push for an immediate cessation of hostilities based on a return to the November 2012 cease-fire agreement between Israel and Hamas in Gaza.  The work will not be easy.  Obviously, there are enormous passions involved in this and some very difficult strategic issues involved.  Nevertheless, I’ve asked John to do everything he can to help facilitate a cessation to hostilities.  We don’t want to see any more civilians getting killed.

With respect to Ukraine, it’s now been four days since Malaysia Airlines Flight 17 was shot down over territory controlled by Russian-backed separatists in Ukraine.  Over the last several days, our hearts have been absolutely broken as we’ve learned more about the extraordinary and beautiful lives that were lost -- men, women and children and infants who were killed so suddenly and so senselessly.

Our thoughts and prayers continue to be with their families around the world who are going through just unimaginable grief.  I’ve had the opportunity to speak to a number of leaders around the world whose citizens were lost on this flight, and all of them remain in a state of shock but, frankly, also in a state of outrage. 

Our immediate focus is on recovering those who were lost, investigating exactly what happened, and putting forward the facts.  We have to make sure that the truth is out and that accountability exists. 

Now, international investigators are on the ground.  They have been organized.  I’ve sent teams; other countries have sent teams.  They are prepared, they are organized to conduct what should be the kinds of protocols and scouring and collecting of evidence that should follow any international incident like this.  And what they need right now is immediate and full access to the crash site.  They need to be able to conduct a prompt and full and unimpeded as well as transparent investigation.  And recovery personnel have to do the solemn and sacred work on recovering the remains of those who were lost.

Ukrainian President Poroshenko has declared a demilitarized zone around the crash site.  As I said before, you have international teams already in place prepared to conduct the investigation and recover the remains of those who have been lost.  But, unfortunately, the Russian-backed separatists who control the area continue to block the investigation.  They have repeatedly prevented international investigators from gaining full access to the wreckage.  As investigators approached, they fired their weapons into the air.  These separatists are removing evidence from the crash site, all of which begs the question -- what exactly are they trying to hide?

Moreover, these Russian-backed separatists are removing bodies from the crash site, oftentimes without the care that we would normally expect from a tragedy like this.  And this is an insult to those who have lost loved ones.  This is the kind of behavior that has no place in the community of nations.

Now, Russia has extraordinary influence over these separatists.  No one denies that.  Russia has urged them on.  Russia has trained them.  We know that Russia has armed them with military equipment and weapons, including anti-aircraft weapons.  Key separatist leaders are Russian citizens.  So given its direct influence over the separatists, Russia and President Putin, in particular, has direct responsibility to compel them to cooperate with the investigation.  That is the least that they can do. 

President Putin says that he supports a full and fair investigation.  And I appreciate those words, but they have to be supported by actions.  The burden now is on Russia to insist that the separatists stop tampering with the evidence, grant investigators who are already on the ground immediate, full and unimpeded access to the crash site.  The separatists and the Russian sponsors are responsible for the safety of the investigators doing their work.  And along with our allies and partners, we will be working this issue at the United Nations today. 

More broadly, as I’ve said throughout this crisis and the crisis in Ukraine generally, and I’ve said this directly to President Putin, as well as publicly, my preference continues to be finding a diplomatic resolution within Ukraine.  I believe that can still happen.  That is my preference today, and it will continue to be my preference.

But if Russia continues to violate Ukraine’s sovereignty and to back these separatists, and these separatists become more and more dangerous and now are risks not simply to the people inside of Ukraine but the broader international community, then Russia will only further isolate itself from the international community, and the costs for Russia’s behavior will only continue to increase. 

Now is the time for President Putin and Russia to pivot away from the strategy that they’ve been taking and get serious about trying to resolve hostilities within Ukraine in a way that respects Ukraine’s sovereignty and respects the right of the Ukrainian people to make their own decisions about their own lives.

And time is of the essence.  Our friends and allies need to be able to recover those who were lost.  That's the least we can do.  That's the least that decency demands.  Families deserve to be able to lay their loved ones to rest with dignity.  The world deserves to know exactly what happened.  And the people of Ukraine deserve to determine their own future. 

Thanks.

END
11:25 A.M. EDT

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U.S. CONGRATULATES THE PEOPLE OF BELGIUM ON THEIR NATIONAL DAY

FROM:  U.S. STATE DEPARTMENT 

On the Occasion of Belgium's National Day

Press Statement

John Kerry

Secretary of State

Washington, DC

July 18, 2014

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On behalf of President Obama and the people of the United States, I congratulate the people of Belgium on your National Day and King Philippe on the first anniversary of his reign on July 21.
During my visit to Brussels last December, I had the opportunity to walk through the Grand Place and reflect on our two countries’ shared history. Our bond was made strong by the Commission for Relief in Belgium during the Great War and Allied efforts to defeat fascism in World War II. And it continues to grow today with our current work to promote security, prosperity, and human rights around the globe.

We commemorate the 70th anniversary of the Battle of the Bulge this year as well. We remember the thousands of U.S. troops who, along with the support of so many brave Belgians, showed remarkable grit and determination in liberating Europe from tyranny.
Seven decades later, their service and sacrifice continues to inspire us as we carry on their work. And as the capital of Europe and host to NATO, Belgium is at the heart of efforts to build a 21st century Europe that is whole, free, and at peace.

Even though Belgium beat our beloved U.S. team during the World Cup, our countries remain great friends and inseparable allies. Each time I visit your country, I am astounded by your hospitality and grateful for our partnership.

On behalf of the American people, I send best wishes for a joyous 184th National Day.

READOUT: PRESIDENT OBAMA'S CALL WITH PRIME MINISTER NETANYAHU OF ISRAEL

FROM:  THE WHITE HOUSE 

Readout of the President’s Call with Prime Minister Netanyahu of Israel

President Obama and Prime Minister Netanyahu spoke again this morning by phone, their second call in three days to discuss the situation in Gaza.  The President discussed Israel’s ongoing military operation, reiterated the United States’ condemnation of attacks by Hamas against Israel, and reaffirmed Israel’s right to defend itself.  The President also raised serious concern about the growing number of casualties, including increasing Palestinian civilian deaths in Gaza and the loss of Israeli soldiers.

President Obama informed the Prime Minister that Secretary of State John Kerry will soon travel to Cairo to seek an immediate cessation of hostilities based on a return to the November 2012 ceasefire agreement. The President underscored that the United States will work closely with Israel and regional partners on implementing an immediate ceasefire, and stressed the need to protect civilians—in Gaza and in Israel.

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U.S. CONDEMNS RELIGIOUS PERSECUTION BY ISIL

FROM:  THE STATE DEPARTMENT 

U.S. Condemns Religious Persecution by ISIL

Press Statement

Jen Psaki

Department Spokesperson

The United States condemns in the strongest terms the systematic persecution of ethnic and religious minorities by the terrorist group Islamic State of Iraq and the Levant (ISIL). We are outraged by ISIL’s recent announcement that Christians in Mosul must either convert, pay a tax, leave, or face execution in the coming days. We have also seen photos of reportedly Christian houses in Mosul marked with pejorative terms for Christians, as well as reports that Shia and Shabak houses have been similarly marked. ISIL also continues to target Sunni clerics and tribal sheikhs who disagree with its dark vision for Iraq.

These abominable actions only further demonstrate ISIL’s mission to divide and destroy Iraq and contradict Islam’s spirit of tolerance and peaceful co-existence. It should be clear that ISIL is not only a threat to the stability of Iraq, but a threat to the entire region. This growing threat exemplifies the need for Iraqis from all communities to work together to confront this common enemy and to take all possible steps to isolate these militant groups from the broader population.
We encourage government officials in Baghdad and Erbil to take every possible effort to assist Iraq’s vulnerable populations and hold perpetrators accountable for their actions in a manner consistent with the rule of law. The United States stands with all the Iraqi people against the threat from ISIL.
Washington, DC.

July 18, 2014

SEC CHARGES TWO IN ELABORATE PUMP-AND-DUMP STOCK SCHEME

FROM:  SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission charged individuals who pocketed millions of dollars running an elaborate pump-and-dump scheme involving shares of a medical education company in Pennsylvania and two other microcap stocks.

The SEC alleges that the stock market manipulation ring included two self-described bankers, a pair of dishonest brokers, and a corrupt company executive who issued misleading press releases.  The SEC today suspended trading in one of the microcap companies before they could illegally profit further.

According to the SEC’s complaint filed in U.S. District Court for the Eastern District of New York, the CEO and president of a purported merchant banking firm – Abraxas “A.J.” Discala and Marc E. Wexler – teamed up with brokers Matthew A. Bell and Craig L. Josephberg as well as Ira Shapiro, CEO of the medical education company CodeSmart, to inflate the price of the company’s stock and profit at the expense of the brokers’ customers.  They acquired 3 million restricted shares of CodeSmart stock following its reverse merger into a public shell company in May 2013, and improperly flooded the market with the shares as though they were unrestricted.  They then engaged in a promotional campaign to hype the stock with Shapiro issuing materially misleading CodeSmart press releases that were sometimes edited by Discala.  Meanwhile Bell and Josephberg invested their brokerage clients in CodeSmart, often using their retirement funds to purchase the purportedly unrestricted shares.  Once Discala and Wexler reduced their trading and Bell and Josephberg dumped their own shares on the market, CodeSmart’s stock price crashed to earth from a peak of nearly $7 per share.  It is currently trading below 10 cents.

“This was a brazen manipulation scheme calculated to enrich Discala and his accomplices using, in many cases, the retirement savings of innocent and unwitting retail investors,” said Andrew Ceresney, director of the SEC Enforcement Division.  “We act aggressively against unscrupulous brokers and investment advisers who take advantage of individual investors.”

In a parallel action, the U.S. Attorney’s Office for the Eastern District of New York today announced criminal charges against Discala, Wexler, Bell, Josephberg, and Shapiro.

“Here we have yet another case of individuals who thought they could manipulate our markets with impunity, but who will now pay a serious price for their abusive conduct,” said Daniel M. Hawke, chief of the SEC Enforcement Division’s Market Abuse Unit.

According to the SEC’s complaint, Discala and Wexler reaped millions of dollars in illicit gains from the CodeSmart scheme, and Bell and Josephberg each made in excess of $500,000.  More recently, they engaged in manipulative trading of two other penny stock companies: Cubed Inc. and The Staffing Group Ltd.  They exchanged text messages in which they openly discussed coordinating their trading in these securities in order to create a false impression of market activity.  Their text messages also contemplated that Cubed had the potential to be an even more profitable scheme than CodeSmart.  Cubed’s stock began trading in earnest on April 22, 2014, at a price of $5.25 and has moved incrementally upward with low volume in a pattern that suggests controlled manipulative trading.  The SEC has suspended trading in Cubed stock before Discala and the others could dump their shares on the market.

According to the SEC’s complaint, Discala lives in Norwalk, Conn., Wexler resides in Colts Neck, N.J., Bell lives in San Antonio, Josephberg lives in New York City, and Shapiro resides in Congers, N.Y.  The SEC’s complaint against them alleges violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Sections 9, 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.  The complaint seeks a permanent injunction and disgorgement of ill-gotten gains along with prejudgment interest, financial penalties, and penny stock bars.  The SEC also seeks officer-and-director bars against Discala, Wexler, and Shapiro.

The SEC’s investigation, which is continuing, has been conducted by Market Abuse Unit members Sheldon L. Pollock, Matthew J. Watkins, and Charles D. Riely along with Diego D. Brucculeri and Jordan W. Baker in the New York Regional Office.  John Marino, a specialist in the Market Abuse Unit, assisted the investigation.  The SEC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of New York, Federal Bureau of Investigation, Texas State Securities Board, and Financial Industry Regulatory Authority.