SECRETARY KERRY'S REMARKS AT U.S.-ASEAN BUSINESS COUNCIL GALA RECEPTION

FROM:  U.S. STATE DEPARTMENT 

Remarks at the U.S-ASEAN Business Council 30th Anniversary Gala Reception

Remarks

John Kerry

Secretary of State

Four Seasons Hotel

Washington, DC

October 2, 2014

SECRETARY KERRY: Thank you so much, Evan. Thank you. Wow, thank you. I didn’t know I was going to be interrupting cocktails. (Laughter.) I feel entirely guilty. It’s okay if you don’t eat, but not drinking is really serious. (Laughter.)
Thank you very, very much. It’s sort of complicated to parachute in like this and then race off. And I think I’m hearing music accompanying my speech, which is interesting. (Laughter.) Beg your pardon?

PARTICIPANT: The heavenly choir.

SECRETARY KERRY: Beg your pardon?

PARTICIPANT: The heavenly choir.

SECRETARY KERRY: That’s fine by me, so long as it’s not calling me somewhere. (Laughter.)

But I’m really grateful. Evan, thank you so much for a very generous introduction. And I know I’m all that stands between all of you and dinner, so I will be – try to be respectful of that. On the other hand, this is an important gathering for an important effort, and I want to be very clear to everybody about why that is. Let me start by thanking the U.S.-ASEAN Business Council. I want to congratulate you on an extraordinary 30 years. To get an understanding of why this organization has been so successful, you only have to look to your right, look to your left, look at the leadership of the businesses of that are represented here. I just came from a small reception of a number of the folks who’re sponsoring it. But Evan, Alex Feldman, the president, CEO, others – US-ABC has some of the best and brightest businesses that are participating in – not just this evening, but in the ongoing enterprise of ASEAN efforts. And I thank all of you for your partnership over the years.

It’s also a pleasure to be among a lot of familiar faces. I was walking around, and from where I’m standing there’s – a whole bunch of the State Department is here. (Laughter.) Fair warning, I don’t care how much champagne you drink tonight, you’ve just got to be at work tomorrow morning. (Laughter.) Let me just quickly take this opportunity, if I can, to embarrass somebody who’s in the audience tonight, and he’s one of the most important people on my team. And I’m talking about Assistant Secretary for East Asia and Pacific Danny Russel, who’s standing right over here. (Applause.) When I first became Secretary, President Obama and I sat down to talk about his priorities, among them the Asia rebalance. And we realized that we really needed somebody who had the respect of people in the region and knew the region intimately and had the relationships which are a critical part of any kind of effort in East Asia, as all of you know. And there was never a doubt in President Obama’s mind or my mind who that person had to be. He had worked very closely with Danny in the White House – the President had – and Danny was actually one of the architects of the rebalance.

So before too long, I got to know Danny a lot better. I’d only known him parenthetically. But I’ll tell you, there are few people who understand the region better than he does. He lives it and he breathes it. It’s a mantle that he wears on his shoulders and carries with him all the time, and he loves it. And a year or two ago, just to prove this, I was walking through the White House one day and I passed the Situation Room and I saw Danny sitting across from Henry Kissinger. So I pop my head in and I say, “Henry, you’re giving Danny a briefing on Asia. That’s great.” And he turned to me and said, “No, John. Danny’s the one briefing me.” (Laughter.) Very, very – and it’s true, actually. That’s Danny, and there’s nobody better to drive our policy forward.

I’m also very, very delighted that tonight there are so many members of the diplomatic corps who are here. Thank you all for coming. I met with a number of the ambassadors just as I walked in and others – our ASEAN partner nations – are here in the audience. And I had an opportunity just the other day in New York at this massive speed dating exercise we get involved in in New York called UNGA, the UN General Assembly. So I met with all of the foreign ministers from the region there. We had a session in the evening, several hours. And I also met with our terrific U.S. Ambassador to ASEAN Nina Hachigian, and I think she’s here somewhere. Nina, why don’t you raise your hand? There she is. Our new ambassador right here, folks. (Applause.) She’s got a brother she’s marrying off, and the minute she got rid of him she’s heading out there, right? All right.

As I told everybody on Friday, ASEAN really is front and center in the region’s multilateral architecture, and we want it to remain there. ASEAN is central to upholding the rules-based system throughout the Asia Pacific and is the best way to ensure that countries big and small are going to have a voice as we work together to address the challenges that maritime security present, climate change presents, food security presents, not to mention just working our way through the complicated differentials between countries and barriers, non-tariff barriers, the different impediments to doing business. And it’s critical, because this group actually is creating significant economic opportunities, and the members who are here are helping to foster a very different playing field, which is critical. And I thank all of you for your partnership in that effort.

Lastly, I’m particularly excited to be among a lot of America’s elite business leaders heading up some of the most innovative and exciting businesses in the world. And that includes our own Assistant Secretary for Economic and Business Affairs Charlie Rivkin, who I saw somewhere. There he is right there. We actually had to call Charlie back from Paris where he had been serving as ambassador for a number of years so he could focus fulltime with me on advancing our economic agenda. And the reason we picked Charlie to lead our efforts and to promote American business abroad is very simple: Not a lot of assistant secretaries have been CEO of a billion-dollar company and a U.S. ambassador at the same time overseeing a bilateral relationship that clears one billion in business transactions every day. I might add that diplomacy is also in his blood, because his father, William Rivkin, was one of our finest ambassadors. He served in Luxembourg and Senegal. And Charlie has proven himself more than worthy of his father’s legacy, and we couldn’t be happier than to have him part of our team. So Charlie, thank you for taking on this job. (Applause.)

And the team includes Under Secretary Cathy Novelli, who also came from the private sector, from Apple; and Ambassador David Thorne, who became an ambassador from the private sector; and Scott Nathan, who has been a finance – who’s been engaged in finance, in funds – very, very successful in Boston, and who has joined our team. So we have a team that understands your challenges. They understand what it means to try to start a business, grow a business, open more opportunities, and get your decisions rapidly and get government out of the way as you try to do that, except to the degree that government can help you move forward.

So with so much focus on the challenges that are confronting us today, from ISIL to Ebola to Ukraine to Iran to Syria, and you can run the list, Afghanistan, it can be easy to miss the fact that there are also unprecedented opportunities staring us in the face at this moment, particularly when it comes to business and economic growth. And each and every business leader in this room would tell you that few regions in the world are as ripe for those opportunities as Southeast Asia.

Many of you have been involved initiative his region for decades. US-ABC includes some of the very first American businesses to open up shop in the ASEAN states. So you know better than anybody how dramatic the region’s transformation has been. I will personally never forget my first visit back to Vietnam as a civilian and as a senator in 1991. And I watched with great excitement because I was down in the south of Vietnam in prior years, never in the north. The north we looked at with great sort of trepidation, except for the pilots who obviously flew over it.

And as I flew into Hanoi, I looked down and I could see all kinds of craters from bombs that had been dropped. This is in 1991. And I noticed the streets as I drove in along the river, it was a very narrow road. The main highway had not yet been built. There was some construction going on. The streets were filled, chock-a-block full of bicycles, bicycles, and bicycles. No cars. Very few cars. There were few motorcycles, very few tall buildings. Not a stoplight worked in the entire city when I set foot there, not one stoplight. And it was just a massive constant mesh of bikes that somehow made it across and made it through.

And it was a place that had literally been frozen in time. I was back in Vietnam last year for maybe my 20-something trip over the last 30 years. And I’m sure many of you have experienced this as well. It just stuns you how far things have moved in this span of time.

The energy in Vietnam today is absolutely remarkable, and the transformation is nothing short of amazing. In the years since we lifted the embargo and normalized relations, Vietnam has become a modern nation and an important partner of the United States. And when you talk to the young people in Vietnam, you can feel the enthusiasm for the potential of the future: 65 percent under the age of 35.

This isn’t just Vietnam’s story. This dynamism, energy, transformation – similar stories can be told throughout Southeast Asia. I was at the Malaysian entrepreneurial fair that they had last year, summit, and it was just stunning: 15,000 kids cheering like at a rock concert, excited about entrepreneurial activity and possibilities. And the year – in 1984 – that was the year that the US-ABC was founded – the annual GDP of the 10 countries that are now ASEAN was about $220 billion in today’s dollars. Today, that GDP has grown more than 10 times over to more than $2.4 trillion.

Now, it’s not a coincidence that President Obama and the Secretary of Commerce Penny Pritzker and U.S. Trade Represent Mike Froman and I have all individually made a trip to one or more of the ASEAN states just within the past six months. Roughly $100 billion of exports to Southeast Asia every year, and every year that supports millions of jobs both there in the region as well as right here on our own shores.

Now, I don’t need to convince you probably – most of the leaders here – of these enormous opportunities. But for the folks who are tuning in tonight to understand what this is about, I want them to understand that enormous business opportunities exist throughout ASEAN, and all of you here are already the choir, so I don’t need to preach further.

I don’t need to remind you also that our embassies are there to help you, and I want you to understand that, from the ambassadors on down. We have a number of the ambassadors here tonight representing the countries of ASEAN. I know many of your businesses work with our ambassadors every single day. We’ve worked to bring about a billion dollars in business deals throughout the ASEAN region, including the largest – in billions, multiple billions – which we have been working towards, including the largest single commercial aircraft sale in Boeing’s history to Indonesia’s Lion Air. And our then-ambassador Scot Marciel played a critical role in helping Boeing to secure that deal which ultimately is worth almost $23 billion.

So what we need to focus on today is how do we make sure this growth continues. As you sit around your tables tonight, as you enjoy this dinner, as you think about the next years, think about that, because it’s not a given. There are still many places in the region where steep tariffs and unclear rules of the road breed uncertainty and stifle the flow of goods and ideas. And that will tampen down the capacity to keep on keeping on what we’re doing.

There are places where businesses don’t have access to the financing that they need to get off the ground, where infrastructure challenges like crumbling roads and inadequate internet and inconsistent power grids prevent businesses from reaching markets. Now, we can’t – I certainly can’t and I don’t know anybody here who can – just wave a magic wand and address all of these challenges tomorrow. But there are steps that we can take together in order to help bring about a more prosperous future for both the United States and our ASEAN partners, and I’ll be very, very quick.

First and foremost, as any business leader would agree, freer markets create more opportunity, more competition, more growth, more dynamism, and more innovation. And we need to do more to open up trade and investment in every corner of the globe, and particularly in that region. Every one of you knows the enormous difference that the Trans-Pacific Partnership agreement – one that includes a number of ASEAN countries – could make. Just this afternoon, I hosted a lunch with Vietnam’s Deputy Prime Minister and Foreign Minister Pham Binh Minh, and we spoke at length about the potential of this agreement and how urgently we need to get it off the ground, and he agreed. The TPP is a state-of-the-art, 21st century trade agreement that will connect more than 40 percent of the global GDP and one-third of global trade, and it raises the standards. It brings everybody up, not a race to the bottom. It’s consistent with our shared economic interests and our shared strategic interests, and it’s rooted in our shared values.

And it’s about promoting stability in this dynamic region and also establishing a fair and transparent framework that enables countries throughout the region to deepen their economic integration and grow in harmony. We need to make it happen, folks, and we can’t do it without you. We need you to help make the case for TPP with the Congress and with the American people, and we need you to make the phone calls and set up the meetings and do all you can to get Capitol Hill on board. And this is a battle we need to prepare for and it’s a battle we absolutely need to win.

Second, we need to make sure that the leaders of the future are getting the training and the education that they need in order to thrive in a growing economy. About 65 percent, as I said, of the population of ASEAN region is under the age of 35, and these young people are innovative, creative, and they’re eager to contribute their ideas, energy, to improve not only their own lives but the lives of others in their communities and their country. I’ve seen this firsthand in Malaysia and the Philippines and Indonesia on every trip I’ve taken to Southeast Asia. And that’s why we are investing in programs like President Obama’s Young Southeast Asian Leaders Initiative, the YSEALI, as it’s known. Through YSEALI, every year we bring young men and women from Southeast Asia to universities in the United States where they can receive training, deepen their knowledge about regional issues and experience and perspectives. This year’s YSEALI class includes women like Sovan Srun from Cambodia. She’s an aspiring social entrepreneur who coauthored a handbook for high school graduates to plan for their career paths, in hopes that she will help her community become more self-sufficient and less dependent on foreign aid. She’s a remarkable young woman, and we need to make sure that others like Sovan have the opportunities they need to make the mark on their communities and that their energy is harnessed in a completely positive way.

Third – and this is especially important – we need to do more at the State Department to make sure that the U.S. Government and the U.S. business community are working with one another, not against one another. I tell every Foreign Service officer that they are, each and every one of them, an economic officer, no kidding. That’s how we have to think. And we need to show the world that the State Department means business, literally. We’re planning to do this by expanding what we call detail opportunities with the private sector. Department employees spend a year working with our private sector partners so they can get a better understanding of the business world and what’s needed from government for when they return. And we’re developing similar programs that will bring folks from the private sector to the State Department on detail as well so the bureaucracy can benefit from their entrepreneurial world view.

But all of us in government and business alike have to keep in mind that the true measure of our success is going to be whether our economies continue – is not whether they continue to grow, but it’s how they grow. If we make the correct choices in the months and years to come, U.S. trade and investment has the potential to create shared prosperity up and down the food chain: growth that’s sustainable and environmentally friendly, wealth that lifts up communities and creates opportunity, and enormous amounts of jobs for the United States and for all of our partner nations. And on top of that, if we commit high standards when it comes to business practices, we absolutely encourage this race to the top, which I think every one of you understands with globalization is at risk. So we need a race to the top from companies all around the world, and I think that’s a race that we can win.

So all of us at the State Department know well that in the 21st century a nation’s interests and the well-being of its people are advanced not just by troops and diplomats but also by entrepreneurs and executives in ways that are really quite significantly different from prior centuries. It is happening by virtue of the businesses that they build and the workers that they employ and the students that they train, and ultimately, the shared prosperity that they create. I say it all the time. I said it in the first days of my nomination to be Secretary. I said it in my opening statement to the committee: Economic policy is foreign policy, and foreign policy is economic policy. And the fact is that American businesses are some of the best ambassadors our country has. Just think about it. US-ABC businesses collectively represent more than 6 trillion in annual revenue. Your businesses support more than 13 million employees worldwide, and you do it all the time while wearing America’s jersey, so to speak.

And I underscore this: The reason we are so grateful to have such a capable and influential group of ambassadors throughout America’s business community is not simply because you do well, but also because you do good. And that’s particularly true in the ASEAN states. I’ve seen it firsthand in the factories I’ve been into, in the people I’ve talked to and the businesses they work for. American businesses have been the number one investor in ASEAN economies for decades. In fact, U.S. investments are larger than Chinese investments, Japanese investments, and Korean investments combined.

And it’s not just about the quantity of our investments; it’s about the quality. When we invest in countries, we actually do it differently. When businesses from some countries enter new markets, they bring in their own workers, their own tradesmen. We, on the other hand, hire local employees. And guess what – we train them as well. Some businesses in the world recklessly pollute the environment, knowing full well that it’ll be difficult to hold them accountable. But so many of our businesses make a point of investing in clean energy and environmental solutions in order to accompany their facilities abroad. And businesses that come in from other nations have been known to promote corruption instead of working to stop it, not held to account by our Foreign Corrupt Businesses Act. But we take every step we can to end corrupt practices abroad or elsewhere, because we know that when we eliminate corruption we’re able to build the long-term relationships that will withstand the test of time and make the environment safer for new businesses to be able to invest in.

So we do all of this because business doing right is part of the American brand. It’s part of our what our companies stand for and it’s part of the proposition of how we attract more investment to follow. What I’m talking about is more than agreeing to abide by a set of principles or guidelines. It’s really rolling up your sleeves and taking action to integrate responsible investment and objective corporate management decision making.

Now, there are a lot of other things that we could go on to say. I’m going to – I said I wouldn’t – I’ve gone on longer than I meant to. But I want to just emphasize to everybody here that the real excitement that comes with this is watching these countries go through these amazing transformations. I am nothing less than stunned by what has happened, the transformation taking place. I have absolute confidence, and as we go forward in these next years the differences between our nations, even as we respect cultures and history, but differences will evaporate in the way that people have fears and that they suspect people from abroad. There’ll be a unity because everything in the world is different today. Today’s kids all have smartphones; they all talk to each other. They’re talking to everybody in the world all the time about everything. And it changes everything in life. Politics is different. Building consensus is different. Getting your market share is different. Holding onto it is different. We’re living in a very, very different time, and nowhere are the possibilities more evident than in the transformations taking place throughout Southeast Asia.

So I think you all are onto something, and I profoundly say congratulations to ABC. We’re going to be in Burma. The President and I are going to be there a month from now. We’re looking forward to being in China, likewise, in November for the APEC conference. We’ll be there for the East Asia Summit. We are front and center and present because we’ve been a Pacific nation all of our history and we will never turn away from that.

So I thank those of you who have been the pioneers. I thank those of you who are on the front lines today. I say congratulations to all of you. Celebrate well tonight and tomorrow we all get back to work and continue on the road. Thank you all very, very much. (Applause.)

U.S. COMPANY'S SUBSIDIARY PLEADS GUILTY TO ILLEGALLY EXPORTING DRILLING EQUIPMENT TO SYRIA

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, October 2, 2014

Foreign Subsidiary of Texas Oil Firm Pleads Guilty to Illegally Exporting Drilling Equipment to Syria

John P. Carlin, Assistant Attorney General for National Security, Ronald C. Machen Jr., U.S. Attorney for the District of Columbia, and Eric L. Hirschhorn, U.S. Department of Commerce Under Secretary for Industry and Security announced today that Robbins & Myers Belgium S.A., a wholly-owned subsidiary of Robbins & Myers Inc., pleaded guilty today to four counts of violating the International Emergency Economic Powers Act and the Export Administration Regulations.

The guilty plea stemmed from actions by Robbins & Myers Belgium that, in 2006, caused four illegal exports, reexports and/or transshipments of stators—important components of oil extraction equipment—that had made from steel that had been milled in the United States to a customer operating oil fields in Syria.

As part of its plea agreement Robbins & Myers Belgium agreed to pay a total of $1 million in criminal fines ($250,000 for each violation) and to serve a term of corporate probation.  The gross proceeds received by Robbins & Myers Belgium for these four illegal exports was $31,716.  As part of its plea agreement, Robbins & Myers Belgium has forfeited the entire $31,716 to the government.  Robbins & Myers Belgium has also entered into a civil settlement with the Department of Commerce requiring the company to pay $600,000 in civil penalties.

Robbins & Myers Belgium entered the guilty plea this afternoon and was sentenced this afternoon in accordance with the terms of the plea agreement by the Honorable Judge Beryl A. Howell in U.S. District Court for the District of Columbia.

“This case shows that the United States will vigorously enforce its export laws against companies doing business with Syria, a state-sponsor of terrorism and home to one of the most brutal regimes on earth,” said U.S. Attorney Machen.  “The Department of Justice will hit companies that do business with Syria where it hurts most: the bottom line.  This company will pay fines, penalties, and forfeitures more than 50 times greater than the proceeds of its sales.”        

“The significant civil and criminal penalties in this case show our resolve to pursue and prosecute those who flout our export control laws,” said Under Secretary of Commerce Hirschhorn.  “We will continue to work in concert with our partner agencies to ensure that U.S. technology stays out of the wrong hands.”

According to court documents, in or about May 2006 an internal auditor with Robbins & Myers Inc. (the U.S. parent company of Robbins & Myers Belgium which was acquired by National Oilwell Varco in 2013) discovered that the company’s Belgian subsidiary had shipped stators made from U.S.-origin steel to a customer in Syria.  The internal auditor informed senior management at Robbins & Myers Inc. of the shipments; management then confirmed that those shipments had occurred and that they were likely in violation of U.S. law which prohibited trade in U.S.-origin goods with Syria.  Although the U.S.-based parent directed Robbins & Myers Belgium to stop such shipments, the subsidiary continued to make shipments of stators to Syria between August 2006 and October 2006.  Following those illegal shipments, employees of the Belgian subsidiary attempted to hide documents related to those shipments from the government’s investigators.

In announcing the guilty plea and sentencing, U.S. Attorney Machen and Under Secretary Hirschhorn commended Special Agents Richard Jereski and Joseph Bankins, who worked under the direction of Special Agent in Charge Nasir Khan, as well as Attorney Advisor R. Elizabeth Abraham of the Department of Commerce's Bureau of Industry and Security.  They also thanked Special Assistant U.S. Attorney John W. Borchert and the Counterespionage Section of the Justice Department's National Security Division for their roles in prosecuting this matter.

COURT HALTS TELEMARKETERS WHO CLAIM TO BE WITH MEDICARE

FROM:  U.S. FEDERAL TRADE COMMISSION 

FTC Halts Fake Medicare Scheme that Took Money from Seniors’ Bank Accounts

At the Federal Trade Commission’s request, a federal court halted a telemarketing scheme that tricked senior citizens  by pretending to be part of Medicare, and took millions of dollars from consumers’ bank accounts without their consent. As part of its ongoing work to protect every community from fraud, the FTC seeks to permanently end the operation and return victims’ money.

According to a complaint filed by the FTC, the defendants called consumers – including many whose numbers were listed on the National Do Not Call Registry – and said they were providing a new Medicare card or information about Medicare benefits.

The defendants allegedly misrepresented that they were working on behalf of Medicare, and said they needed to verify consumers’ identities using personal information that included their bank account numbers. The defendants allegedly assured consumers that the information would not be used to debit their bank accounts, and that there was no charge for the new Medicare card or information about Medicare benefits.

However, within a few weeks, consumers learned their bank accounts had been debited either $399 or $448 via remotely created checks (RCCs), the complaint alleges. Despite these charges, consumers did not receive any kind of product or service from the defendants. In some instances, the defendants debited the accounts of consumers they had not even contacted.

The FTC charged the defendants with violating the FTC Act and the FTC’s Telemarketing Sales Rule. The defendants are Sun Bright Ventures LLC, Citadel ID Pro LLC, and Benjamin Todd Workman. The FTC named Trident Consulting Partners LLC and Glenn Erickson as relief defendants who profited from the scheme.

The Commission vote authorizing the staff to file the complaint was 5-0. The FTC filed the complaint, under seal, in the U.S. District Court for the Middle District of Florida. On September 4, 2014, the court entered a temporary restraining order halting the defendants’ deceptive scheme and freezing the defendants’ and relief defendants’ assets. The defendants and relief defendants agreed to preliminary injunctions, which the court entered on September 18, 2014. The preliminary injunctions continue the conduct prohibitions and asset freezes set forth in the temporary restraining order.

MAN WHO ATTEMPTED TO PURCHASE 100 STOLEN IDENTITIES SENTENCED TO 27 MONTHS IN PRISON

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, October 1, 2014

Florida Man Sentenced to 27 Months in Prison for Attempting to Purchase 100 Stolen Identities

A Florida man was sentenced today to serve 27 months in prison for attempting to purchase sensitive, detailed personal identifying information, known as PII – including Social Security numbers and bank account numbers – to open credit card accounts and file fraudulent tax returns.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John P. Kacavas of the District of New Hampshire made the announcement.  U.S. District Judge Steven J. McAuliffe of the District of New Hampshire imposed the sentence.            

Derric Theoc, 36, was indicted by a federal grand jury in July 2013 and pleaded guilty in June 2014 to one count of attempted access device fraud.  In addition to his prison sentence, he was ordered to serve two years of supervised release.

In his guilty plea, Theoc admitted that, in April 2013, he attempted to purchase packages of personal identifying information for 100 people from an undercover United States Secret Service agent who was posing as a known, prolific vendor of personally identifiable information, Hieu Minh Ngo.  Theoc had previously made multiple similar purchases from Ngo.

Ngo, a Vietnamese national, pleaded guilty on March 3, 2013, to wire fraud, identification fraud and fraud in connection with access devices and on Aug. 21, 2014, to a separate indictment to four counts of computer fraud.  Sentencing is scheduled for Dec. 1, 2014.  According to court documents, Ngo administered websites from 2007 through February 2013 that allowed more than 1,000 individuals from throughout the world to access databases containing personal identifying information and conduct more than 3 million queries to obtain a person’s date of birth, Social Security number and other information.  He also sold or transferred more than 150,000 packages of personally identifiable information that would allow criminals to take over the identity of another person.

The packages of personal identifying information that Theoc attempted to purchase typically included a person’s name, address, date of birth, Social Security number, mother’s maiden name, driver’s license number, bank account number, bank routing number, email account, account password and place of work.  Theoc further admitted that he attempted to purchase the information with the intent to obtain credit cards to make purchases or withdraw money and to file fraudulent tax returns in an effort to receive refunds to which he was not entitled.

The case is being investigated by the United States Secret Service.  The case is being prosecuted by Senior Counsel Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire.

NASA RELEASES IMAGE OF TYPHOON PHANFONE

FROM:  NASA 

NASA's Terra satellite captured this image of Typhoon Phanfone and its large eye in the western Pacific Ocean on Friday, Oct. 3 at 1:55 UTC.  Image Credit: NASA Goddard MODIS Rapid Response Team.

The Tropical Rainfall Measuring Mission or TRMM satellite flew over Typhoon Phanfone on Oct. 2, 2014 at 0939 UTC (5:39 a.m. EDT). The rainfall pattern observed using TRMM's Microwave Imager (TMI) and Precipitation Radar (PR) data showed that Phanfone was much better organized than a day earlier. This precipitation analysis revealed that intensifying typhoon Phanfone had formed a large eye. The heaviest rainfall was shown falling at a rate of over 50 mm (almost 2 inches) per hour in the northern side of the typhoon's eye wall.

On Oct. 3 at 0900 UTC (5 a.m. EDT), Typhoon Phanfone's maximum sustained winds were near 110 knots (126.6 mph/203.7 kph). It was centered near 23.6 north longitude and 134.4 east latitude, about 374 nautical miles west-southwest of the island of Iwo To. Phanfone has tracked northwestward at 12 knots (13.8 mph/22.2 kph).

The Joint Typhoon Warning Center (JTWC) predicts intensifying Phanfone's wind speeds will peak at 125 knots (144 mph) on October 3, 2014. The typhoon is then predicted to gradually weaken and it's track to re-curve toward the northeast and pass to the southeast of Tokyo, Japan on October 5-6, 2014.  Hal Pierce and Rob Gutro.  NASA's Goddard Space Flight Center.

WHITE HOUSE VIDEO: WEEKLY ADDRESS FOR 10/04/2014

MAN PLEADS GUILTY IN SHELL COMPANY HEALTH CARE FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, October 2, 2014

Shell Company Operator Pleads Guilty in Multi-Million Dollar Health Care Fraud and Money Laundering Scheme

A Florida managing member of a shell company pleaded guilty today in federal court in Tampa for his role in a multi-million dollar health care fraud and money laundering scheme.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.

Leonard Austin, 45, of Lake Worth, Florida, pleaded guilty in the U.S. District Court for the Middle District of Florida to conspiracy to commit money laundering of health care fraud proceeds.  His sentencing date will be set at a later date by the court.

According to his plea agreement and factual proffer, from June 2010 through April 2014, Austin’s co-conspirators submitted $12 million in fraudulent claims to Medicare through three purported health clinics, Cornerstone Health Specialists of Lakeland, Florida, Summit Health Specialists P.L. of Tampa, Florida, and Coastal Health Specialists LLC of Lakeland and Melbourne, Florida.  These fraudulent claims included claims resulting from illegal kickback arrangements and claims for radiology, audiology, neurology, and cardiology services that were never rendered.  In fact, some of the services were purportedly provided to Medicare beneficiaries who actually had died before the supposed date of service. Medicare paid over $2,500,000 on the fraudulent claims.

Austin admitted that he and his co-conspirators attempted to conceal the funds by transferring funds through bank accounts for the clinics and Austin’s shell company, BONB LLC, aka BioScan, and other entities.

Four other defendants were indicted in this case on health care fraud and money laundering charges and are scheduled for a jury trial on April 6, 2015. An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida.  This case is being prosecuted by Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

NASA VIDEO | INVESTIGATING THE MARTIAN ATMOSPHERE

CHAIRMAN NATO MILITARY COMMITTEE SAYS NATO IN TRANSFORMATION

FROM:  U.S. DEFENSE DEPARTMENT 

NATO Changes to Meet New Threats, Challenges

By Jim Garamone

DoD News, Defense Media Activity

WASHINGTON, Oct. 2, 2014 – Throughout its history, many people have forecast the death of the NATO alliance, but it has remained relevant and is set for another transformation, Danish Army Gen. Knud Bartels, the chairman of the NATO Military Committee, said today.

The chairman of the Military Committee directs the day-to-day business of the committee, NATO's highest military authority, and acts on its behalf, according to the NATO website.

NATO’s transformation will be an inherently different one than in the past, Bartels said at a Defense Writers’ Group breakfast.

Over its history, the alliance has transformed any number of times, Bartels said. The alliance went from a strategy of massive retaliation to one of flexible response. It went from a small Western alliance aimed at a single enemy to a large alliance of like-minded nations sharing and defending shared values. It went from a North Atlantic/European alliance to fighting a war in Central Asia. It has incorporated new capabilities like missile defense and focused on new defenses like operations in the cyber realm.

Transformation underway

Bartels sees a new transformation underway, but one that is fundamentally different than in the past.

“We are living in a world where everything takes place with emails, Twitter, Facebook, et cetera, et cetera,” he said. “This means that the long adaptation we have seen with our previous transformations will be an accelerated process, both at the military and political level.”

Threats will continue for the alliance, he said, and while it needs to look forward, it also needs to look to the past.

The challenge that Russia presents with its occupation of the Ukrainian region of Crimea and threats to eastern Ukraine is one example, Bartels said. Russia launched what is now being called a hybrid campaign against Ukraine.
The hybrid campaign, he said, is characterized by a mixture of conventional forces, unconventional forces, and information warfare.

Hybrid warfare not new

Bartels said hybrid warfare is not new. “You see the way the Soviet Union dealt with Finland during the first Soviet-Finnish War in 1939-1940,” he said. “If you see later on how the Soviet Union implemented its power in what became the Warsaw Pact. Maybe we have not been paying sufficient attention to it.”

The general said NATO knows how to counter such a campaign and is putting in place counters to the various tactics inherent in hybrid warfare.

One problem, he said, is the speed of decision-making on the Russian side. “This is characteristic of the system today and is a challenge to an alliance built on consensus of 28 [members],” Bartels said. “That needs to be addressed at the political level, but the summit at Wales made it quite clear that the allies are aware of the challenge and I am quite confident that the allies are ready to act accordingly when the necessity arises.”

Bartels said he addressed the threat in Vilnius, Lithuania, the site of the most recent meeting of the alliance’s Military Committee. Lithuania is one of the Baltic Republics once a part of the Soviet Union and a possible target of a Russian hybrid campaign.

“I expressed that should a nation or number of nations chose to challenge the integrity of the allies, they will be facing the full might of the most powerful military alliance in the world,” Bartels said. “I said it on purpose -- very clearly and very confident in Vilnius -- one of the Baltic States.”

General Petr Pavel, Chief of the General Staff of Armed Forces of the Czech Republic, was elected to succeed Bartels as the next chairman of the NATO Military Committee when Bartels is expected to step down in June 2015, according to the NATO website.

HHS WORKS TO FIND TESTS FOR INFLUENZA, BETTER RESPONSE TO PANDEMIC

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

HHS pursues detection tests for influenza

Tests for influenza viruses to improve diagnosis and speed pandemic response
Potential tests to help doctors diagnose influenza sooner and more accurately will advance in development under contracts from the U.S. Department of Health and Human Services’ Office of the Assistant Secretary for Preparedness and Response (ASPR). The tests could help boost influenza pandemic preparedness by increasing diagnostic capabilities in near-patient care settings such as doctors’ offices, clinics, and hospitals.

One award will advance the development of a simple, low-cost molecular test under a 3.5-year, $12.9 million contract with Alere Inc., headquartered in Waltham, Massachusetts. The other award, to InDevR Inc., of Boulder, Colorado, will allow a biochip test to move forward under a two-year, $7.9 million contract with options to extend the contract up to $14.7 million over four years.

The tests use different technologies to detect influenza viruses and offer different levels of information about the viruses detected. Both tests would use swabs taken from a patient’s nasal passage.

Alere will develop its iNAT Influenza A&B test which could yield results within 15 minutes and show whether a patient has an infection caused by a seasonal influenza virus type A or B infection. The company will conduct studies necessary to submit for U.S. Food and Drug Administration clearance or approval, including a Clinical Laboratory Improvement Amendments waiver for iNAT, which would allow the rapid molecular test to be performed in the near-patient settings.

InDevR will develop its FluChip-8G test to identify seasonal influenza viruses and recognize novel flu viruses within four hours in near-patient settings. Currently, this type of detailed genetic testing is conducted in state, federal, or specialty laboratories, and can take days to complete. If successful during the first two years, InDevR will conduct clinical studies necessary to submit for clearance or approval from the FDA and will develop a fully automated version of the test.

“Administering fast and inexpensive tests at the point of care has tangible benefits to personal and public health, particularly in helping doctors prescribe the right therapy immediately,” said Robin Robinson, Ph.D., director of ASPR’s Biomedical Advanced Research and Development Authority (BARDA) whose office will oversee the development programs. “Prescribing medication or other therapies in a more targeted way is good stewardship and will be critical to reducing the risk of antimicrobial resistance.”

Distinguishing viral influenza infections from bacterial infections could aid doctors and patients in choosing the best treatment, and could reduce unnecessary antibiotic use, as antibiotics are ineffective in treating illness caused by viruses. In addition, testing for influenza viruses in doctors’ offices, clinics, and hospitals could improve use of precautions among patients and health care workers to reduce spread of influenza from person to person.

Improved tests available in more settings can alert doctors and public health authorities to community outbreaks of respiratory illness and signal new viruses causing illness. A new influenza virus to which people do not have immunity could potentially spread quickly and have pandemic potential.

To help prepare the United States for pandemics, BARDA also is supporting development of other diagnostic platforms, including a test to identify drug resistance in influenza, as well as new vaccine technology, antiviral drugs, low-cost, portable ventilators and other medical equipment and supplies.

BARDA is seeking additional proposals for advanced development of new drugs and products to diagnosis and treat illness. Proposals are accepted through the broad agency announcement BAA-BARDA-13-100-SOL-19, available on www.fbo.gov.

These new programs are part of BARDA’s comprehensive integrated portfolio approach to the advanced research and development, innovation, acquisition, and manufacturing of vaccines, drugs, diagnostic tools, and non-pharmaceutical products for public health emergency threats. These threats include chemical, biological, radiological, and nuclear agents, pandemic influenza, and emerging infectious diseases.

ASPR leads HHS in preparing the nation to respond to and recover from adverse health effects of emergencies, supporting communities’ ability to withstand adversity, strengthening health and response systems, and enhancing national health security. HHS is the principal federal agency for protecting the health of all Americans and providing essential human services, especially for those who are least able to help themselves. To learn more about HHS, visit hhs.gov.
To learn more about ASPR and preparedness, response and recovery from the health impacts of disasters, visit the HHS public health and medical emergency website, phe.gov. Information about influenza is available at flu.gov.

###

CIVILIAN, 5 NATIONAL GUARD OFFICIALS CHARGED IN BRIBERY CASE

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, October 1, 2014

Five Army National Guard Officials and One Civilian Charged with Bribery
Four retired and one active-duty Army National Guard officials and one civilian have been charged for their alleged participation in bribery schemes related to the awarding of millions of dollars of Army National Guard marketing, retention and recruitment contracts.  Two of the retired Army National Guard officials and the civilian pleaded guilty for their roles in the schemes.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge Andrew McCabe of the FBI’s Washington Field Office, Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Director Frank Robey of the U.S. Army Criminal Investigative Command’s Major Procurement Fraud Unit (Army-CID) made the announcement.

“As captured by its motto, the Army National Guard is ‘always ready, always there’ for the American people,” said Assistant Attorney General Caldwell.  “Unfortunately, today’s charges expose National Guard officials who were ‘always ready’ to pocket bribes and ‘always there’ to take kickbacks.  In return, the charged officials allegedly subverted the open bidding process and illegally steered millions of taxpayer dollars to the bribe-payers through marketing and advertising contracts.  Corruption should know no place in American government, but least of all in the military that so honorably serves our country.  The Criminal Division is committed to rooting out corruption wherever we find it, including in the military, so that we can ensure that no one is putting the public’s trust up for sale.”

“These criminal charges and guilty pleas reflect our continued commitment to rooting out public corruption wherever it occurs,” said U.S. Attorney Boente.  “The public contracting process should be one of integrity and fairness, and these cases should send a strong message that public corruption will be vigorously prosecuted in the military as well as other areas of government.”

“This investigation has sadly reminded us that even some members of our military are willing to trade on the trust their country placed in them to line their pockets with the profits of corrupt activities,” said U.S. Attorney Lynch.  “We and our law enforcement partners will constantly guard against and root out such corruption wherever we find it.”

Charles Sines, 56, of Stafford, Virginia, a retired colonel from the United States Army National Guard; Wesley Russell, 48, of Albany, Indiana, a retired lieutenant colonel from the Indiana Army National Guard; and Jason Rappoccio, 39, of Hampton, South Carolina, an active-duty sergeant first class from the Army National Guard are charged with conspiracy to solicit bribes and the solicitation of bribes.  Russell and Rappoccio allegedly asked for and received bribes, and Sines allegedly provided bribes.

Robert Porter, 50 of Columbia, Maryland, a retired colonel from the Army National Guard, and Timothy Bebus, 44, of Forest Lake, Minnesota, a retired sergeant major of the Minnesota Army National Guard and owner of Mil-Team Consulting and Solutions LLC, each pleaded guilty in the Eastern District of Virginia in September 2014 to conspiracy to commit bribery and bribery of a public official.  Julianne Hubbell, 45, of Brooklyn Park, Minnesota, a civilian who partnered with her brother, Bebus, as the vice president of operations of Mil-Team, also pleaded guilty in September 2014 to conspiracy to commit bribery.  Sentencing hearings for Bebus and Hubbell are scheduled for Jan. 23, 2015, and for Porter on Jan. 30, 2015.

“The alleged steering of large government contracts is offensive to active duty, reserve and retired members of the National Guard Bureau who took an oath to support and defend the Constitution,” said FBI Assistant Director in Charge McCabe.  “It is also offensive to average American citizens who trust their government and its contractors to use taxpayer money wisely.  We urge anyone who has knowledge of corruption and abuse in federal government contracting to contact the FBI.”

“The Department of Defense places special trust and confidence in its service members, particularly those in positions to influence the expenditure of taxpayer dollars,” said DCIS Special Agent in Charge Craig.  “Guardsmen hold a unique position in our society, representing both their state and military service.  The alleged behavior uncovered in this investigation was a disservice to both, but in no way typical of those honorable women and men that serve in our Army and Air National Guard.  Identifying and investigating fraud and public corruption remains the highest of priorities for the Defense Criminal Investigative Service.  Alongside our law enforcement partners, we will continue to aggressively pursue allegations of fraud impacting Department of Defense resources.”

“We have highly-trained, Army CID special agents who are extremely talented and very capable of rooting out this type of corruption within our ranks,” said Army-CID Director Robey.   “People must realize, both in and out of uniform, that fraud will not be tolerated within the Army and Department of Defense, and greed cannot and will not trump duty and honor.”

As set forth in the indictments and other publicly-filed documents, the National Guard Bureau is a joint activity of the U.S. Department of Defense (DOD), state Army National Guard units and the Departments of the Army and Air Force.  The National Guard Bureau, located in Arlington, Virginia, oversees the distribution of federal funding provided to the Army National Guard and its state units.

The DOD provides millions of dollars of federal funds to the Army National Guard for, among other things, advertising, marketing and sponsorships in order to recruit new members.  The National Guard Bureau uses these funds to promote the Army National Guard by entering into advertising, marketing and sponsorship contracts.  For example, through advertising, marketing and sponsorship contracts, the National Guard was an official sponsor of Dew Tour, Warrior Dash, and American Motorcycle Association Supercross’s events, where recruiters handed out promotional items and recruited new members.  The National Guard also had a contract to sponsor Michael Jordan’s AMA Superbike team.

The National Guard Bureau can avoid a competitive bid process by awarding these federally-funded marketing contracts to Small Business Administration (SBA) certified 8(a) companies, which are minority-owned businesses.  The National Guard Bureau also provides a portion of the federal funds to the state units to allocate.

The indictments allege that Sines and Rappoccio evaded the competitive bid process by using 8(a) companies to award contracts in exchange for bribes.

According to allegations in the indictment against him, Sines founded a company, Financial Solutions, after retiring from the Army National Guard as a colonel.  Sines allegedly paid Porter, a then-active-duty colonel in the Army National Guard, a percentage of all contracts that Porter steered to Financial Solutions through 8(a) companies.  As the director of the National Guard Bureau’s Guard Strength Directorate, Porter had substantial influence over the awarding of National Guard Bureau contracts, and allegedly steered approximately $4.5 million worth of contracts to Sines and Financial Solutions.

The indictment against Russell alleges that, while on active duty as a lieutenant colonel in the Indiana Army National Guard, Russell demanded 15 percent of all profits that a private marketing company would receive from state Army National Guard units.  In return for his 15 percent cut of the profits, Russell allegedly promoted and encouraged state Army National Guard units to purchase the marketing company’s products.

The indictment against Rappoccio, an active-duty sergeant first class in the Army National Guard, alleges that Bebus and Hubbell paid Rappoccio a $30,000 bribe for steering a contract worth approximately $3.7 million to an 8(a) company chosen by Bebus.  In pleading guilty, Bebus and Hubbell admitted to paying this bribe.  In an effort to conceal the bribe payment, Bebus, Hubbell and others allegedly arranged for the payment of $6,000 in cash to Rappoccio, and the remaining $24,000 was allegedly routed from a business account controlled by Hubbell to an account controlled by Bebus and Hubbell’s brother-in-law, and then provided to Rappoccio in the form of a cashier’s check to Rappoccio’s wife.

An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.

The case is being investigated by the FBI’s Washington Field Office, with assistance from DCIS’s Mid-Atlantic Field Office and Army-CID’s Expeditionary Fraud Resident Agency’s Major Procurement Fraud Unit.  The case is being prosecuted by Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section, Assistant U.S. Attorney Jonathan Fahey of the Eastern District of Virginia and Assistant U.S. Attorneys Marisa Seifan and Martin Coffey of the Eastern District of New York.

LABOR SECRETARY PEREZ MAKES STATEMENT ON SEPTEMBER EMPLOYMENT NUMBERS

FROM:  U.S. LABOR DEPARTMENT 

Statement of US Labor Secretary Perez on September employment numbers

WASHINGTON —WASHINGTON – U.S. Secretary of Labor Thomas E. Perez issued the following statement about the September 2014 Employment Situation report released today:

“The nation’s economic recovery continued in September with the addition of 248,000 new jobs. It was the 55th consecutive month of private-sector job creation, during which time businesses have created 10.3 million jobs. In 2014, we have experienced the most robust year-to-date private-sector job growth since 1998. The unemployment rate fell to 5.9 percent, its lowest level since July 2008.
“Over the last year, there are 811,000 fewer people working part time for economic reasons. Hispanic unemployment now stands at 6.9 percent, a full two-percentage-point drop from a year ago. Hispanic poverty is also down significantly. And in 2013, overall childhood poverty had its largest year-to-year decrease since 1966.

“Things are unquestionably moving in the right direction, but we can do even better. The Labor Department and the Obama administration are working harder than ever not just to create more jobs and accelerate growth, but to strengthen the middle class and build an economy that works for everyone. Just this week, the Labor Department awarded more than $450 million to help community colleges train workers for the jobs of the 21st century – a bold long-term investment in our skills infrastructure similar to President Eisenhower’s interstate highway investment in our physical infrastructure nearly 60 years ago.

“On Wednesday, we helped nearly 200,000 workers get a raise, taking final steps to implement President Obama’s executive order increasing the minimum wage to $10.10 per hour for workers on federal service and construction contracts.
“And we recently invested in states’ capacity to explore paid leave policies. As long as we remain the only industrialized nation where paid leave is not the law of the land, we are hurting both our families and the economy. Our failure to lead on leave keeps women out of the labor force, which costs us in valuable human capital and economic activity.

“Six years after the near-collapse of the U.S. economy, we have come a long, long way. The new foundation for growth is in place. The challenge now is to expand opportunity further, to help more people benefit from this recovery, and to ensure that prosperity is broadly shared.”

DOD VIDEO: DOD CONDUCTING EBOLA TESTS IN AFRICA

PRESIDENT AND FIRST LADY EXTEND BEST WISHES TO MUSLIMS CELEBRATING EID AL-ADHA AND THOSE PERFORMING THE HAJJ

FROM:  THE WHITE HOUSE 

Statement by the President on Hajj and Eid al-Adha

Michelle and I would like to extend our best wishes to Muslims in the United States and around the world who are celebrating Eid al-Adha, and to congratulate those performing the Hajj this year.

As our Muslim neighbors and friends gather for Eid celebrations, Muslim Americans are among the millions of pilgrims joining one of the world’s largest and most diverse gatherings.  Hajj brings together Muslims from around the world – Sunni and Shiite – to share in reverent prayer, side by side.  It serves as a reminder that no matter one’s tribe or sect, race or religion, gender or age, we are equals in humanity.

On Eid, Muslims continue the tradition of donating to the poor and joining efforts with other faith communities in providing assistance to those suffering from hunger, sickness, oppression, and conflict.  Their service is a powerful example of the shared roots of the world’s Abrahamic faiths and how our communities can come together in shared peace, with dignity and a sense of justice.

On behalf of the American people, we extend our warmest greetings during this holiday.  May the prayers of peace made by the Hajj pilgrims and those of all faiths around the world be heard and granted.  Eid Mubarak.

DEFENSE SECRETARY HAGEL, FRENCH DEFENSE MINISTER LE DRIAN HOLD NEWS CONFERENCE

FROM:  U.S. DEFENSE DEPARTMENT

U.S. Defense Secretary Chuck Hagel and French Defense Minister Jean-Yves Le Drian conduct a news conference at the Pentagon, Oct. 2, 2014. Both leaders discussed the international effort underway to defeat ISIL. DoD photo by Glenn Fawcett

Hagel Praises Historic Bonds, Current Coalition Ties With France

By Amaani Lyle

DoD News, Defense Media Activity

WASHINGTON, Oct. 2, 2014 – Defense Secretary Chuck Hagel welcomed French Minister of Defense Jean-Yves Le Drian to the Pentagon to reaffirm their mutual resolve to address a spectrum of issues, from terrorism to infectious disease control, the two leaders said in a joint news conference today.

The secretary lauded Le Drian for France’s leading role in the international coalition to degrade and destroy the terrorist group Islamic State of Iraq and the Levant, noting that France was the first nation to join the United States in conducting airstrikes against the terrorist network. The coalition has since grown to include 40 nations.

The fight against ISIL

“American and French forces will continue to work side by side to support Iraqi forces on the ground as French aircraft patrol the skies over Iraq and provide valuable intelligence, surveillance and reconnaissance on ISIL targets,” Hagel said.

These efforts, he added, enable Iraqi and Kurdish security forces to take the offensive against ISIL.

The two leaders also discussed ways to continue building and strengthening the coalition and supporting the new government of Iraq.

“The United States and France recognize the grave threat that ISIL poses to our shared regional interests and our citizens,” Hagel said.

He recounted the recent murder of a French hostage in Algeria, an incident he described as a “stark reminder of the deadly threats ISIL presents” to France and its allies.

Challenges in Africa

During their meeting today, the secretaries also focused on security challenges in North and West Africa, two regions Hagel said now face surges of violent extremism, instability and deadly infectious disease.

“France’s leadership in confronting extremist threats in the Sahel is particularly important as the United States continues to provide support to French operations in Mali, including airlift, refueling and intelligence cooperation,” he said.

Hagel also noted that the two nations will continue to coordinate efforts across the region in response to the Ebola crisis.

NATO a cornerstone of security

The defense secretary said that in discussions at the NATO summit in Wales last month, the two nations agreed on the importance of reinforcing NATO partnerships in Eastern Europe and strengthening the readiness and capabilities of the NATO alliance.

“A strong and united NATO will be critically important to assuring a Europe whole, free and at peace,” Hagel said. “That goal remains a cornerstone of America’s approach to global and transatlantic security.”

WHITE HOUSE VIDEO: WEST WING WEEK FOR 10/03/14

NASA VIDEO: WHAT'S UP FOR OCTOBER 2014

EXPORT-IMPORT BANK SAYS BILLION DOLLAR GUARANTEE OF PEMEX BONDS SUPPORTS U.S. JOBS

FROM:  U.S. EXPORT-IMPORT BANK 

Ex-Im Bank Supports U.S. Jobs Through $1 Billion Guarantee of Pemex Bonds To Be Issued in the Capital Markets

Guarantee of Pemex Bonds Will Support an Estimated 6,700 U.S. Jobs 

Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) on Monday approved two authorizations totaling $1 billion in financing to support the export of U.S. goods and services to Petróleos Mexicanos (Pemex), Mexico's national oil-and-gas company.

Ex-Im Bank’s financing will support approximately 6,700 U.S. jobs, at both large and small businesses, according to Bank estimates derived from Departments of Commerce and Labor data and methodology.

“Capital-markets financing is an innovative and proven approach that helps to provide funding for Pemex’s purchases of made-in-America goods and services at no extra cost to the U.S. Treasury,” said Ex-Im Bank Chairman and President Fred P. Hochberg. ”With these authorizations, Ex-Im Bank is continuing to meet our mission to support U.S. exporters and their workers by helping to maintain American jobs in both large and small businesses around the country.”

This transaction is assisting in financing exports to Pemex of American-made oil-field and gas-field drilling services, drilling platforms, turbine generators, mud pumps, chemicals, spare parts, geophysical studies and safety equipment – among numerous other U.S.-produced goods and services.

One of the many U.S. small businesses that is benefiting from this Ex-Im Bank financing for Pemex is Checkpoint Pumps & Systems in Mandeville, La., near New Orleans. Checkpoint Pumps, a chemical-injection packages provider, is a single source for concept, engineering, manufacturing, testing and field service. The company has approximately 70 employees at its Mandeville facility and 30 additional employees at other locations worldwide.

“We confidently expect that Ex-Im Bank financing will play an even larger role in our growth within the expanding Latin American market in the coming years,” said David Cheadle, Checkpoint’s Latin American sales manager.

Pemex will issue Ex-Im Bank-guaranteed bonds in the capital markets to fund the purchases of these exports.

MARKETERS SETTLE FTC CHARGES OVER WEIGHT-LOSS CLAIMS REGARDING CAFFEINE-INFUSED CLOTHING

 FROM:  U.S. FEDERAL TRADE COMMISSION 

Norm Thompson Outfitters and Wacoal America Settle FTC Charges Over Weight-Loss Claims for Caffeine-infused Shapewear

Two marketers of women’s “shapewear” undergarments have settled Federal Trade Commission charges that slimming claims for their caffeine-infused products were false and not substantiated by scientific evidence. The proposed orders settling the FTC’s complaints bar Norm Thompson Outfitters, Inc., and Wacoal America, Inc., from making false and unsubstantiated claims about their shapewear and require them to pay a total of more than $1.5 million for consumer refunds.

“Caffeine-infused shapewear is the latest ‘weight-loss’ brew concocted by marketers,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “If someone says you can lose weight by wearing the clothes they are selling, steer clear. The best approach is tried and true: diet and exercise.”

The FTC’s complaint against Norm Thompson Outfitters alleges the company deceptively advertised, marketed, and sold women’s undergarments infused with microencapsulated caffeine, retinol, and other ingredients, claiming the “shapewear” would slim and reshape the wearer’s body and reduce cellulite. The products, made with Lytess brand fabrics, were sold via mail order and on the company’s Norm Thompson Outfitters, Sahalie, Body Solutions, and Body*Belle websites.

Specifically, the FTC alleges that the company made claims that wearing its shapewear would eliminate or substantially reduce cellulite; reduce the wearer’s hip measurements by up to two inches and their thigh measurements by one inch; and reduce thigh and hip measurements “without any effort.” The complaint alleges that these claims are not true or substantiated by scientific evidence, and therefore violate the FTC Act.

The complaint against Wacoal America contains similar allegations. It charges that the company’s iPants supposedly slimmed the body and reduced cellulite. Specifically, the company made false and unsubstantiated claims that wearing iPants would: substantially reduce cellulite; cause a substantial reduction in the wearer’s thigh measurements; and destroy fat cells, resulting in substantial slimming. The complaint alleges that these claims are not true or substantiated by scientific evidence, and therefore also violate the FTC Act.

The proposed administrative consent orders settling the charges against Norm Thompson Outfitters and Wacoal America ban the companies from claiming that any garment that contains any drug or cosmetic causes substantial weight or fat loss or a substantial reduction in body size.  In addition, the companies are prohibited from making claims that any drug or cosmetic reduces or eliminates cellulite or reduces body fat, unless they are not misleading and can be substantiated by competent and reliable scientific evidence.

Finally, the orders require Norm Thompson Outfitters and Wacoal America to pay $230,000 and $1.3 million, respectively, that the FTC can use to provide refunds to consumers who bought the caffeinated shapewear.

Consumers should carefully evaluate advertising claims for weight-loss products. For more information, see the FTC’s guidance for consumers of products and services advertised for Weight Loss & Fitness.

The FTC is a member of the National Prevention Council, which provides coordination and leadership at the federal level regarding prevention, wellness, and health promotion practices. This case advances the National Prevention Strategy’s goal of increasing the number of Americans who are healthy at every stage of life.

The Commission vote to issue the complaints and accept the proposed consent orders was 5-0 in each case. The FTC will publish a description of the consent agreement packages in the Federal Register shortly. The agreements will be subject to public comment for 30 days, beginning today and continuing through October 29, 2014, after which the Commission will decide whether to make the proposed consent orders final.

Interested parties can submit written comments on the proposed settlements with Norm Thompson Outfitters and Wacoal America electronically or in paper form by following the instructions in the “Invitation To Comment” part of the “Supplementary Information” section of the Federal Register notice.

NOTE: The Commission issues an administrative 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. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.

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.

NSF VIDEO: SCIENCE OF INNOVATION: SYNTHETIC DIAMONDS

TWO DETROIT-AREA RESIDENTS CHARGED IN HOME-HEALTH KICKBACK SCHEME

FROM:  U.S. JUSTICE DEPARTMENT

Tuesday, September 30, 2014

Two Defendants Charged in Connection with Detroit-Area Home Health Kickback Scheme

Two Detroit-area residents were arrested today on charges related to a Medicare fraud scheme in which they are alleged to have referred Medicare beneficiaries to home health care agencies in exchange for kickbacks.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office, and Acting Special Agent in Charge Jarod Koopman, of the Internal Revenue Service - Criminal Investigation (IRS-CI) Detroit Field Office, made the announcement.

Sophia Eggleston, 52, of Farmington Hills, Michigan, and Sekne Ali, 48, of Dearborn, Michigan, were charged in a four-count indictment, unsealed today, with conspiracy to violate the Anti-Kickback Statute and substantive violations of the Anti-Kickback Statute.   The indictment alleges that both defendants recruited Medicare beneficiaries to two home health agencies in Oakland County, Michigan – Prestige Home Health Services Inc. and Royal Home Health Care Inc. – and were paid kickbacks for the patient referrals.  Both agencies purported to provide in-home health care services to Medicare beneficiaries.

The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.

This case was investigated by the FBI, HHS-OIG and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.  This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and James P. McDonald of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

FORMER WELLS FARGO EMPLOYEES ACCUSED OF RATINGS CHANGE ASSOCIATED RESEARCH TO MAKE INSIDER TRADES

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

Two Former Wells Fargo Employees Charged With Insider Trading in Advance of Research Reports Containing Ratings Changes

09/29/2014 12:05 PM EDT

The Securities and Exchange Commission today announced insider trading charges against two former Wells Fargo employees involved in an alleged scheme to profit by buying or short selling a stock before research analyst reports were published containing a ratings change.

Research analysts typically produce reports with a recommendation or rating of a stock or other security they’ve reviewed.  When an analyst alters a prior view on the prospects of a security, a new report is issued with a ratings change.  The SEC’s Enforcement Division alleges that while Gregory T. Bolan Jr. worked as a research analyst at Wells Fargo, he tipped a trader at the firm, Joseph C. Ruggieri, in advance of several market-moving ratings upgrades or downgrades that he made in certain securities.  The tips enabled Ruggieri to generate more than $117,000 in profits.

“Instead of abiding by firm policies that specifically prohibited trading ahead of published research, Ruggieri used information obtained from Bolan to make profitable trades in advance of six separate research reports,” said Sanjay Wadhwa, Senior Associate Director of the SEC’s New York Regional Office.  “The repeated nature of these violations demonstrates an utter disregard for our insider trading laws.”

According to the SEC’s order instituting a litigated proceeding before an administrative law judge, Bolan also tipped a close friend with nonpublic information about his upcoming ratings changes.  The friend, who is now deceased, generated approximately $10,000 in profits in a personal brokerage account by trading ahead of three ratings changes.

“Bolan gave two traders a sneak preview into his upcoming ratings changes and provided them an unfair and illegal advantage on the rest of the markets,” said Daniel M. Hawke, Chief of the SEC Enforcement Division’s Market Abuse Unit.

The SEC’s Enforcement Division alleges that after receiving Bolan’s tips, Ruggieri either purchased the relevant company’s stock ahead of Bolan’s upgrades or sold the stock short ahead of Bolan’s downgrades.  Ruggieri closed his overnight positions in those securities for a profit shortly after Bolan’s ratings changes were made public and the stock prices had moved.  From April 2010 to March 2011, Bolan published a total of eight research reports with a ratings change or initiation of coverage with an “outperform” or “underperform” rating.  Ruggieri traded profitably ahead of six of these reports in a manner that did not fit in his typical trading pattern.  Aside from this trading ahead, Ruggieri had only a handful of overnight positions in securities that had been rated within the six months prior to his trading.

The SEC’s Enforcement Division alleges that by engaging in the misconduct described in the SEC’s order, Bolan and Ruggieri willfully violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.  The administrative proceeding will determine what relief, if any, is in the public interest against Bolan and Ruggieri, including disgorgement of ill-gotten gains, prejudgment interest, financial penalties, and other remedial measures.

The SEC’s investigation was conducted by Sandeep M. Satwalekar, Charles D. Riely, and John Marino of the SEC’s Market Abuse Unit in New York, as well as Peter A. Lamore and Alexander M. Vasilescu of the New York Regional Office.  The case has been supervised by Mr. Hawke and Mr. Wadhwa.  The SEC’s litigation will be led by Mr. Vasilescu and Mr. Satwalekar.

The SEC appreciates the assistance of the Financial Industry Regulatory Authority.

U.S. CONGRATULATES PEOPLE OF GERMANY ON THEIR NATIONAL DAY

FROM:  U.S. STATE DEPARTMENT 

Germany's National Day

Press Statement

John Kerry

Secretary of State

Washington, DC

October 2, 2014

On behalf of President Obama and the people of the United States, I congratulate the people of Germany as you celebrate the Day of German Unity on October 3.

I will always have a personal connection to Germany.  When my father served in Berlin as a Foreign Service Officer after World War II, I learned to speak German and came to love the culture, architecture, and beauty of the country.

Just last year, on my first trip abroad as Secretary, I returned to Berlin and walked its streets – past the Reichstag, past the Brandenburg Gate.  I marveled not just at the miles Germany has traveled, but at the journey we have traveled together since the fall of the Berlin Wall almost twenty five years ago.

Today, the ties that bind the United States and Germany remain stronger than ever.  Our partnership is critical for promoting security and stability in Afghanistan, the Middle East, and beyond.  Germany is our largest trading partner in Europe, and we look forward to deepening those ties as we work together for an ambitious Transatlantic Trade and Investment Partnership.

On this anniversary, we give thanks for Germany’s many contributions to the prosperity and security of Europe and to the wider world.

SECRETARY KERRY MAKES REMARKS WITH VIETNAMESE DEPUTY PRIME MINISTER AND FOREIGN MINISTER MINH

FROM:  U.S. STATE DEPARTMENT  

Remarks With Vietnamese Deputy Prime Minister and Foreign Minister Pham Binh Minh Before Their Meeting

Remarks

John Kerry

Secretary of State

Benjamin Franklin Room

Washington, DC

October 2, 2014

SECRETARY KERRY: Thank you. Well, good morning, everybody. It’s my distinct pleasure to welcome the Deputy Prime Minister and Foreign Minister Pham Binh Minh, who I have known for many, many years. I first met him when he was a student in Boston at Tufts University, Fletcher, and we’ve seen each other many times since in my journeys to Vietnam and in his work over here.

It’s fair to say that in the first year of our comprehensive partnership, we have now made significant progress on the civilian 123 nuclear program, on the Proliferation Security Agreement, as well as on economic and other issues that are important to both of our countries.

And we still have things that we’re working on. One of the things that we want to try to conclude is the Trans-Pacific Partnership trade agreement, and Vietnam is working very hard with us in order to be able to do that. We continue to talk about issues in the bilateral relationship – human rights, economic development, private company ability to be able to do business. These are all important things. And I look forward to a good discussion today, and I’m delighted to welcome Pham Binh Minh here to have this dialogue.

Thank you. Thank you, sir.

DEPUTY PRIME MINISTER MINH: Thank you very much.

SECRETARY KERRY: Want to say anything?

DEPUTY PRIME MINISTER MINH: Good morning. Thank you, Mr. Secretary, for inviting me to visit officially the United States. Since the establishment of the comprehensive partnership, we have recorded many achievements in all fields – economic, political, security, defense, and other areas.

So I come to United States today to meet and to work with U.S. colleagues to review the bilateral relations between the two countries. I’m looking forward to have the fruitful discussions on bilateral issues, how to deepen our relation, and also discuss the regional and international issues of our mutual interest. Thank you.

SECRETARY KERRY: Thank you, sir, very much. Thank you. Thank you all very much.

DEPUTY PRIME MINISTER MINH: Thank you.

23 YEAR OLD BOMB PLOTTER SENTENCED TO SERVE 30 YEARS IN PRISON

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, October 1, 2014

Convicted Bomb Plotter Sentenced to 30 Years

PORTLAND, Oregon. – Mohamed Osman Mohamud, 23, who was convicted in 2013 of attempting to use a weapon of mass destruction (explosives) in connection with a plot to detonate a vehicle bomb at an annual Christmas tree lighting ceremony in Portland, was sentenced today to serve 30 years in prison, followed by a lifetime term of supervised release.

Mohamud, a naturalized U.S. citizen from Somalia and former resident of Corvallis, Oregon, was arrested on Nov. 26, 2010, after he attempted to detonate what he believed to be an explosives-laden van that was parked near the tree lighting ceremony in Portland.  The arrest was the culmination of a long-term undercover operation, during which Mohamud was monitored closely for months as his bomb plot developed.  The device was in fact inert, and the public was never in danger from the device.

At sentencing, United States District Court Judge Garr M. King, who presided over Mohamed’s 14-day trial, said “the intended crime was horrific,” and that the defendant, even though he was presented with options by undercover FBI employees, “never once expressed a change of heart.”  King further noted that the Christmas tree ceremony was attended by up to 10,000 people, and that the defendant “wanted everyone to leave either dead or injured.”  King said his sentence was necessary in view of the seriousness of the crime and to serve as deterrence to others who might consider similar acts.  

“With today’s sentencing, Mohamed Osman Mohamud is being held accountable for his attempted use of what he believed to be a massive bomb to attack innocent civilians attending a public Christmas tree lighting ceremony in Portland,” said John P. Carlin, Assistant Attorney General for National Security.  “The evidence clearly indicated that Mohamud was intent on killing as many people as possible with his attack.  Fortunately, law enforcement was able to identify him as a threat, insert themselves in the place of a terrorist that Mohamud was trying to contact, and thwart Mohamud’s efforts to conduct an attack on our soil.  This case highlights how the use of undercover operations against would-be terrorists allows us to engage and disrupt those who wish to commit horrific acts of violence against the innocent public.  The many agents, analysts, and prosecutors who have worked on this case deserve great credit for their roles in protecting Portland from the threat posed by this defendant and ensuring that he was brought to justice.”

“This trial provided a rare glimpse into the techniques Al Qaeda employs to radicalize home-grown extremists,” said Amanda Marshall, U.S. Attorney for the District of Oregon.  “With the sentencing today, the court has held this defendant accountable.   I thank the dedicated professionals in the law enforcement and intelligence communities who were responsible for this successful outcome.  I look forward to our continued work with Muslim communities in Oregon who are committed to ensuring that all young people are safe from extremists who seek to radicalize others to engage in violence.”

According to the trial evidence, in February 2009, Mohamud began communicating via e-mail with Samir Khan, a now-deceased al Qaeda terrorist who published Jihad Recollections, an online magazine that advocated violent jihad, and who also published Inspire, the official magazine of al-Qaeda in the Arabian Peninsula.  Between February and August 2009, Mohamed exchanged approximately 150 emails with Khan.  Mohamud wrote several articles for Jihad Recollections that were published under assumed names.

In August 2009, Mohamud was in email contact with Amro Al-Ali, a Saudi national who was in Yemen at the time and is today in custody in Saudi Arabia for terrorism offenses.  Al-Ali sent Mohamud detailed e-mails designed to facilitate Mohamud’s travel to Yemen to train for violent jihad.  In December 2009, while Al-Ali was in the northwest frontier province of Pakistan, Mohamud and Al-Ali discussed the possibility of Mohamud traveling to Pakistan to join Al-Ali in terrorist activities. Mohamud responded to Al-Ali in an e-mail: “yes, that would be wonderful, just tell me what I need to do.”  Al-Ali referred Mohamud to a second associate overseas and provided Mohamud with a name and email address to facilitate the process.

In the following months, Mohamud made several unsuccessful attempts to contact Al-Ali’s associate.  Ultimately, an FBI undercover operative contacted Mohamud via email under the guise of being an associate of Al-Ali’s.  Mohamud and the FBI undercover operative agreed to meet in Portland in July 2010.  At the meeting, Mohamud told the FBI undercover operative he had written articles that were published in Jihad Recollections.  Mohamud also said that he wanted to become “operational.”  Asked what he meant by “operational,” Mohamud said he wanted to put an explosion together, but needed help.

According to evidence presented at trial, at a meeting in August 2010, Mohamud told undercover FBI operatives he had been thinking of committing violent jihad since the age of 15.  Mohamud then told the undercover FBI operatives that he had identified a potential target for a bomb: the annual Christmas tree lighting ceremony in Portland’s Pioneer Courthouse Square on Nov. 26, 2010.  The undercover FBI operatives cautioned Mohamud several times about the seriousness of this plan, noting there would be many people at the event, including children, and emphasized that Mohamud could abandon his attack plans at any time with no shame.  Mohamud indicated the deaths would be justified and that he would not mind carrying out a suicide attack on the crowd.

According to evidence presented at trial, in the ensuing months Mohamud continued to express his interest in carrying out the attack and worked on logistics.  On Nov. 4, 2010, Mohamud and the undercover FBI operatives traveled to a remote location in Lincoln County, Oregon, where they detonated a bomb concealed in a backpack as a trial run for the upcoming attack.  During the drive back to Corvallis, Mohamud was asked if was capable looking at all the bodies of those who would be killed during the explosion.  In response, Mohamud noted, “I want whoever is attending that event to be, to leave either dead or injured.”  Mohamud later recorded a video of himself, with the assistance of the undercover FBI operatives, in which he read a statement that offered his rationale for his bomb attack.

On Nov. 18, 2010, undercover FBI operatives picked up Mohamud to travel to Portland to finalize the details of the attack.  On Nov. 26, 2010, just hours before the planned attack, Mohamud examined the 1,800 pound bomb in the van and remarked that it was “beautiful.”  Later that day, Mohamud was arrested after he attempted to remotely detonate the inert vehicle bomb rked near the Christmas tree lighting ceremony

This case was investigated by the FBI, with assistance from the Oregon State Police, the Corvallis Police Department, the Lincoln County Sheriff’s Office and the Portland Police Bureau.  The prosecution was handled by Assistant U.S. Attorneys Ethan D. Knight and Pamala Holsinger from the U.S. Attorney’s Office for the District of Oregon.  Trial Attorney Jolie F. Zimmerman, from the Counterterrorism Section of the Justice Department’s National Security Division, assisted.

President Obama Meets with the Prime Minister of Israel

NASA VIDEO: THE MISSION IS IN SIGHT

COMPUTER SIMULATIONS, STATISTICAL TECHNIQUES INDICATE CALIFORNIA DROUGHT LIKELY LINKED TO CLIMATE CHANGE

FROM:  NATIONAL SCIENCE FOUNDATION 

Cause of California drought linked to climate change

Extreme atmospheric conditions responsible for drought more likely to occur in current global warming.

The atmospheric conditions associated with the unprecedented drought in California are very likely linked to human-caused climate change, researchers report

Climate scientist Noah Diffenbaugh of Stanford University and colleagues used a novel combination of computer simulations and statistical techniques to show that a persistent region of high atmospheric pressure over the Pacific Ocean--one that diverted storms away from California--was much more likely to form in the presence of modern greenhouse gas concentrations.

The result, published today in the Bulletin of the American Meteorological Society, is one of the most comprehensive studies to investigate the link between climate change and California's ongoing drought.

"Our research finds that extreme atmospheric high pressure in this region--which is strongly linked to unusually low precipitation in California--is much more likely to occur today than prior to the emission of greenhouse gases that began during the Industrial Revolution in the 1800s," says Diffenbaugh.

The exceptional drought crippling California is by some measures the worst in state history.

Combined with unusually warm temperatures and stagnant air conditions, the lack of precipitation has triggered a dangerous increase in wildfires and incidents of air pollution across the state.

The water shortage could result in direct and indirect agricultural losses of at least $2.2 billion and lead to the loss of more than 17,000 seasonal and part-time jobs in 2014 alone.

Such effects have prompted a drought emergency in the state; the federal government has designated all 58 California counties as natural disaster areas.

"In the face of severe drought, decision-makers are facing tough choices about the allocation of water resources for urban, agricultural and other crucial needs," says Anjuli Bamzai, program director in the National Science Foundation's (NSF) Division of Atmospheric and Geospace Sciences, which funded the research.

"This study places the current drought in historical perspective and provides valuable scientific information for dealing with this grave situation. "

Scientists agree that the immediate cause of the drought is a particularly tenacious "blocking ridge" over the northeastern Pacific--popularly known as the Ridiculously Resilient Ridge, or "Triple R"--that prevented winter storms from reaching California during the 2013 and 2014 rainy seasons.

Blocking ridges are regions of high atmospheric pressure that disrupt typical wind patterns in the atmosphere.

"Winds respond to the spatial distribution of atmospheric pressure," says Daniel Swain of Stanford, lead author of the paper.

"We have seen this amazingly persistent region of high pressure over the northeastern Pacific for many months, which has substantially altered atmospheric flow and kept California largely dry."

The Triple R was exceptional for both its size and longevity.

While it dissipated briefly during the summer months of 2013, it returned by fall 2013 and persisted through much of the winter, California's wet season.

"At its peak in January 2014, the Triple R extended from the subtropical Pacific between California and Hawaii to the coast of the Arctic Ocean north of Alaska," says Swain, who coined the term "ridiculously resilient ridge" to highlight the persistent nature of the blocking ridge.

Like a large boulder that has tumbled into a narrow stream, the Triple R diverted the flow of high-speed air currents known as the jet stream far to the north, causing Pacific storms to bypass not only California, but also Oregon and Washington.

As a result, rain and snow that would normally fall on the West Coast were instead re-routed to Alaska and as far north as the Arctic Circle.

An important question for scientists and decision-makers has been whether human-caused climate change has influenced the conditions responsible for California's drought.

Given the important role of the Triple R, Diffenbaugh and colleagues set out to measure the probability of such extreme ridging events.

The team first assessed the rarity of the Triple R in the context of the 20th century historical record.

Analyzing the period since 1948, for which comprehensive atmospheric data are available, the researchers found that the persistence and intensity of the Triple R in 2013 were unrivaled by any previous event.

To more directly address the question of whether climate change played a role in the probability of the 2013 event, the team collaborated with scientist Bala Rajaratnam, also of Stanford.

Rajaratnam applied advanced statistical techniques to a large suite of climate model simulations.

Using the Triple R as a benchmark, Rajaratnam compared geopotential heights--an atmospheric property related to pressure--between two sets of climate model experiments.

One set mirrored the present climate, in which the atmosphere is growing increasingly warmer due to human emissions of carbon dioxide and other greenhouse gases.

In the other set of experiments, greenhouse gases were kept at a level similar to those that existed just prior to the Industrial Revolution.

The researchers found that the extreme heights of the Triple R in 2013 were at least three times as likely to occur in the present climate as in the preindustrial climate.

They also found that such extreme values are consistently tied to unusually low precipitation in California, and to the formation of atmospheric ridges over the northeastern Pacific.

"We've demonstrated with high statistical confidence that large-scale atmospheric conditions similar to those of the Triple R are far more likely to occur now than in the climate before we emitted large amounts of greenhouse gases," Rajaratnam says.

"In using these advanced statistical techniques to combine climate observations with model simulations, we've been able to better understand the ongoing drought in California," Diffenbaugh adds.

"This isn't a projection of 100 years in the future. This is an event that is more extreme than any in the observed record, and our research suggests that global warming is playing a role right now."

The research was also supported by the National Institutes of Health. Rajaratnam was also supported in part by DARPA, the Air Force Office of Scientific Research and the UPS fund.

-NSF-
Media Contacts
Cheryl Dybas, NSF,