Friday, October 10, 2014

SOME E*TRADE SUBSIDIARIES IN TROUBLE OVER ALLEGED UNREGISTERED SALES OF MICROCAP STOCKS

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission today announced an enforcement action against current and former brokerage subsidiaries of E*TRADE Financial Corporation that failed in their gatekeeper roles and improperly engaged in unregistered sales of microcap stocks on behalf of their customers.

An SEC investigation found that E*TRADE Securities and E*TRADE Capital Markets sold billions of penny stock shares for customers during a four-year period while ignoring red flags that the offerings were being conducted without an applicable exemption from the registration provisions of the federal securities laws.  E*TRADE Securities remains an E*TRADE subsidiary while E*TRADE Capital Markets was sold earlier this year and is now called G1 Execution Services.

E*TRADE Securities and G1 Execution Services agreed to settle the SEC’s charges by paying back more than $1.5 million in disgorgement and prejudgment interest from commissions they earned on the improper sales.  They also must pay a combined penalty of $1 million.

In addition to the enforcement action, the SEC staff today published a Risk Alert and FAQs to remind broker-dealers of their obligations when they engage in unregistered transactions on behalf of their customers.

“Broker-dealers serve an important gatekeeping function that helps prevent microcap fraud by taking measures to ensure that unregistered shares don’t reach the market if the registration rules aren’t being followed,” said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement.  “Many billions of unregistered shares passed through gates that E*TRADE should have closed, and we will hold firms accountable when improper trading occurs on their watch.”

According to the SEC’s order instituting a settled administrative proceeding, the failures by E*TRADE occurred periodically from March 2007 to April 2011.  The securities laws generally require all offers and sales of securities to be registered with the SEC unless those offers and sales qualify for an exemption.  When brokers facilitate an unregistered sales transaction on behalf of a customer, they must reasonably ensure that an exemption does indeed apply.

The SEC’s order finds that three customers of E*TRADE routinely deposited to their E*TRADE accounts large quantities of newly issued penny stocks they had acquired through private, unregistered transactions with little-known, non-reporting issuers.  The customers claimed that these penny stocks were “freely tradable” and they placed orders for E*TRADE to sell the securities to the public through “resales” without any registration statements in effect.  Following the resales, the customers immediately wired the sales proceeds out of their accounts.

According to the SEC’s order, E*TRADE encountered numerous red flags indicating potential improper sales of securities.  Nevertheless, the firm relied on a registration exemption for broker-dealers that permits them to execute a customer’s unregistered sales of securities if, after a reasonable inquiry, the broker-dealer is not aware of circumstances indicating that the customer is violating registration requirements.  E*TRADE initially failed to identify any exemptions potentially available to these customers.  When it later identified the purported exemptions upon which the customers claimed to be relying, E*TRADE failed to perform a searching inquiry to be reasonably certain that such exemptions applied for each unregistered sale executed by the three customers.

“E*TRADE failed to fulfill its obligation to determine whether any exemptions applied to  the sale of billions of shares of securities thereby depriving investors of critical protections under the federal securities laws,” said Stephen L. Cohen, Associate Director of the SEC’s Division of Enforcement.  “Firms must take their reasonable inquiry obligations seriously and do more than check the box, particularly when red flags are apparent.”

The SEC’s order finds that E*TRADE Securities and G1 Execution Services violated Sections 5(a) and 5(c) of the Securities Act of 1933.  In addition to the monetary sanctions and without admitting or denying the SEC’s findings, the two firms agreed to be censured and consented to the order requiring them to cease and desist from committing or causing any future violations of the registration provisions of the Securities Act.  

The SEC’s investigation was conducted by Deborah R. Maisel and Richard E. Johnston with assistance from Kyle DeYoung.  The case was supervised by Jennifer S. Leete.

SECRETARY KERRY MAKES REMARKS WITH HAITIAN PRIME MINISTER LAURENT LAMOTHE

FROM:  U.S. STATE DEPARTMENT
Remarks With Haitian Prime Minister Laurent Lamothe Before Their Meeting
Remarks
John Kerry
Secretary of State
Treaty Room
Washington, DC
October 9, 2014

SECRETARY KERRY: Good afternoon, everybody. Thank you for joining us for a minute. I’m very happy to welcome the Prime Minister of Haiti Laurent Lamothe here to Washington. And in doing so I welcome a good friend, a good partner in the major efforts to meet the challenges of Haiti, which are significant because of the devastating earthquake and some of the needs to push for political reform. The government has worked hard and we have worked hard and the international community has worked hard to make a difference to the lives of the people of Haiti.

I have many Haitians who live in Massachusetts that I was proud to represent as a United States senator for many years, and so I would always hear very personal stories of the challenges in Haiti. And we have a deep interest in the United States in helping to continue down this road of both democracy and economic growth and development.

There is work to be done, and particularly, as we know, there is the challenge of completing the task of having local and legislative elections as soon as possible, being able to set the date and hold those elections to complete the task of Haiti’s transition. Unfortunately, that is being blocked now politically. I spoke with President Martelly just the other day about this, and we intend to try to work very closely to move forward. This resistance – the unwillingness to allow the people to be able to have this vote – really challenges the overall growth and development progress of the country. You need to have a fully functioning government. The president has been working very hard, the prime minister working very, very hard, to pull people together to make this happen.

So we’ll talk about that today and we have very, very high hopes that we can make progress with respect to that, because that will facilitate our ability to continue the progress and complete the task of helping the people of Haiti to have the day-to-day lives they deserve and want, and which we want for them.

So Mr. Prime Minister, welcome. Thank you.

PRIME MINISTER LAMOTHE: Thank you very much, Mr. Secretary.

I want to thank Secretary Kerry for having us today. It’s a great pleasure and honor to be here. It’s my second visit. I used to be foreign minister here – of Haiti, so I’m very, very happy to be able to discuss Haiti’s progress. We came a long way after a devastating earthquake that took away 250,000 lives, 500,000 people were wounded. The country had $14 billion in damages. And 50 percent of the population of Port-au-Prince was homeless. That’s the situation we found.

Today, 98 percent of that population has been relocated. The country is progressing very much, and that’s thanks very much to the U.S. support of Haiti’s growth, Haiti’s progress. We have a thriving industrial park in the northern part of Haiti.

Haiti has tremendous challenges ahead of it. We have the elections that we have to organize, and like the Secretary said, we’re working very hard to organize those elections as soon as possible. We have the energy security that we wanted to address, and the rule of law and security in general.

I want to take this opportunity to thank Secretary Kerry for the time, and also all the leadership that you’ve shown in the Ebola, I would say, mobilization of the world. And Haiti stands by your side in order to assist in any little way that we can in this effort that affects all of us.

Thank you.

SECRETARY KERRY: Thank you, sir.

QUESTION: Mr. Prime – Mr. Prime Minister --

SECRETARY KERRY: Thank you very much. Appreciate it.

QUESTION: Mr. Prime Minister, so can you confirm that the elections won’t take place as scheduled on October 26th and that you will have to postpone them?

PRIME MINISTER LAMOTHE: All – everything is ready for the election to take place. We have the financing that’s in place. The electoral council is in place. We have the security plan that’s in place. We’re missing one thing, which is the electoral law, and the electoral law has to be voted by the senate. And at this moment, there is six senators who’ve been sitting on the law for the past 200 days, seven months. So we are working feverishly in a dialogue with different sectors to try to get them to vote that law in order for us to have elections as soon as possible. But if it was up to us, we would have it tomorrow.

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

FIRST LADY MICHELLE OBAMA SPEAKS AT THE FASHION EDUCATION WORKSHOP

40-COUNT SUPERSEDING INDICTMENT RETURNED AGAINST ALLEGED RUSSIAN CYBER-CRIMINAL

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, October 9, 2014
Alleged Russian Cyber-Criminal Now Charged in 40-Count Superseding Indictment

A federal grand jury in Seattle returned a second superseding indictment late yesterday charging a Russian national with 11 additional counts and further detailing his alleged scheme to hack into businesses and steal credit card information for later sale over the Internet on “carding” websites.

The now 40-count indictment alleges that Roman Valerevich Seleznev, aka “Track2,” 30, of Vladivostok, Russia, was involved in the theft and sale of more than 2 million credit card numbers.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Annette L. Hayes of the Western District of Washington made the announcement.

“The additions in this superseding indictment show how cybercriminals use the Internet not only to infiltrate and steal sensitive data, but also to teach other criminals how to navigate the credit-card selling underworld and get equipment that can be used to defraud U.S. citizens,” said Assistant Attorney General Caldwell.  “The Criminal Division is committed to investigating these thefts and uncovering the methods of computer hackers to stay one step ahead of them and bring them to face justice.”

“The charges returned by the grand jury detail a criminal scheme that continued right up until Mr. Seleznev’s arrest in July,” said Acting U.S. Attorney Hayes.  “As set forth in the indictment, the government expects to prove at trial that Seleznev was a leader in the marketplace for stolen credit card numbers, and even created a website offering a tutorial on how to use stolen credit card numbers to commit crime.”

The indictment charges Seleznev with 11 counts of wire fraud, nine counts of intentional damage to a protected computer, nine counts of obtaining information from a protected computer, nine counts of possession of 15 or more unauthorized access devices and two counts of aggravated identity theft.  Seleznev is currently scheduled for trial on Nov. 3, 2014, and will be arraigned on the new charges sometime next week.

According to court documents, between October 2009 and October 2013, Seleznev allegedly hacked into retail point of sale systems and installed malicious software to steal credit card numbers from various businesses.  Seleznev allegedly created and operated the infrastructure to facilitate the theft and sale of credit card data, used servers located all over the world to facilitate his operation, and sold stolen credit card data on a website known as “2pac.cc.”

Seleznev is also charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a racketeer influenced corrupt organization, as well as two counts of possession of 15 or more counterfeit and unauthorized access devices.

The charges contained in the indictments are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case is being investigated by the U.S. Secret Service Electronic Crimes Task Force, which includes detectives from the Seattle Police Department.  The case is being prosecuted by Trial Attorney Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Norman M. Barbosa and Seth Wilkinson of the Western District of Washington.  The Office of International Affairs and the U.S. Attorney’s Office for the District of Guam provided substantial assistance in this case.

Thursday, October 9, 2014

SPECIAL PRESIDENTIAL ENVOY MEETS WITH TURKISH OFFICIALS REGARDING ISIL

FROM:  U.S. STATE DEPARTMENT 
Special Presidential Envoy John Allen Meetings With Turkish Officials on Efforts to Counter ISIL
Press Statement
Jen Psaki
Department Spokesperson
Washington, DC
October 9, 2014

Special Presidential Envoy John Allen and Deputy Special Presidential Envoy Brett McGurk held constructive and detailed talks with Turkish officials today in Ankara, including with Prime Minister Davutoglu and senior Ministry of Foreign Affairs officials. General Allen and Deputy Special Envoy McGurk discussed areas of cooperation across the multiple lines of effort that will be required to degrade and ultimately defeat ISIL. They stressed that we are in the early stages of consolidating a broad coalition against this terrorist network in what will be a long-term campaign. General Allen and Deputy Special Envoy McGurk also emphasized that urgent steps are immediately required to degrade ISIL's military capabilities and ongoing ability to threaten the region. They further stressed that strengthening the moderate Syrian opposition, which is engaged in fighting both ISIL and the Asad regime, is crucial to any realistic and lasting political settlement of the Syrian crisis.

In this regard, General Allen, Deputy Special Envoy McGurk, and their Turkish interlocutors discussed several measures to advance the military line of effort against ISIL, noting that a joint military planning team will visit Ankara early next week to follow up in military-to-military channels. Both sides also agreed that we will continue a dynamic and deepening bilateral consultation process across the multiple lines of effort against ISIL, including military support, countering foreign fighters, counter-finance, humanitarian assistance, and de-legitimizing ISIL's messaging and rhetoric. General Allen and Deputy Special Envoy McGurk recognized the sacrifice made by Turkey due to the ISIL crisis in Syria and Iraq, and emphasized the historic and unbreakable partnership between Turkey and the United States as NATO allies.

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

 FROM:  U.S. STATE DEPARTMENT
Uganda National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
October 9, 2014

On behalf of President Obama and the people of the United States, I congratulate the people of Uganda as you celebrate 52 years of independence.

Your government is an important partner in the fight against terrorism. We greatly appreciate Uganda’s efforts to address the threat posed by the Lord’s Resistance Army and your vital contribution to the African Union Mission in Somalia.

East Africa looks to Uganda for leadership. We continue to encourage your role in promoting democracy, human rights, and peace and prosperity throughout the region. The United States stands ready to support your efforts to achieve these objectives.

As you gather with family and friends, I wish you a happy Independence Day and a prosperous future.

U.S. CONDUCTS 11 AIRSTRIKES IN SYRIA, IRAQ TODAY

FROM:  U.S. DEFENSE DEPARTMENT 
U.S. Military Conducts Airstrikes Against ISIL in Syria and Iraq
From a U.S. Central Command News Release

WASHINGTON, Oct. 9, 2014 – U.S. military forces continued to attack ISIL terrorists today, using bomber and attack aircraft to conduct a total of eleven airstrikes in Syria and Iraq.

In Syria, six airstrikes south of Kobani destroyed two ISIL-held buildings, one ISIL tank and one ISIL heavy machine gun and damaged an ISIL fighting position. These strikes also struck one large and two small ISIL units.
In addition, three airstrikes north of Kobani struck two small ISIL units and destroyed two ISIL-held buildings. These strikes were conducted by U.S. bomber aircraft deployed to the U.S. Central Command area of operations. All aircraft exited the strike areas safely.

In Iraq, an airstrike south of Sinjar destroyed an ISIL bunker and ammunition cache and a small ISIL unit. Another airstrike, south of Sinjar Mountain, destroyed an ISIL armed vehicle and a small ISIL unit. To conduct these strikes, the U.S. employed attack aircraft deployed to the Centcom area of operations. All aircraft exited the strike areas safely.

The strikes were conducted as part of President Barack Obama's comprehensive strategy to degrade and destroy ISIL. The destruction of targets in Syria and Iraq further limits the terrorist group's ability to lead, control, project power and conduct operations.

President Obama Meets with the Pentagon About ISIL

10/8/14: White House Press Briefing

NASA VIDEO | THE ARCTIC AND THE ANTARCTIC RESPOND IN OPPOSITE WAYS

REMARKS BY SECRETARY KERRY, PERUVIAN FOREIGN MINISTER GUTIERREZ

FROM:  U.S. STATE DEPARTMENT 
10/08/2014 02:06 PM EDT
Remarks With Peruvian Foreign Minister Gonzalo Gutierrez Before Their Meeting
Remarks
John Kerry
Secretary of State
Treaty Room
Washington, DC
October 8, 2014

SECRETARY KERRY: Good afternoon, everybody. I’m delighted to welcome Peruvian Foreign Minister Gonzalo Gutierrez, and to reaffirm with him and with our friends in Peru our gratitude for the strong relationship, for the cooperation that we are engaged in on many different fronts.

First of all, we are deeply involved in helping to work on growth and development. And since the U.S.-Peru Trade Promotion Agreement went into effect about six years ago, we’ve actually doubled our trade between our countries. So there’s now about $18 billion of trade and growing, and we’re very appreciative of that.

We also have a great partner in counternarcotics, counterterrorism efforts. Peru has made significant arrests and undertaken important initiatives to stop illicit narcotics trafficking and some of the criminal activity that goes with it.

And finally, we really are looking to Peru for its significant contribution coming up in December, when they host the Conference of the Parties on global climate change. This is a very important meeting which is a lead-on to Paris next year, but it’s a stepping stone. And it will be very important for all of us to use this meeting appropriately to advance the goals so that we can build on it. Without adequate effort in Peru in December, it will be harder to reach an agreement in Paris. So we’re very grateful for Peruvian leadership, and I look forward, hopefully, to participating with you myself. Thank you.

FOREIGN MINISTER GUTIERREZ: Thank you. Thank you very much, John. I’m – I have a great pleasure to be with you here in the State Department. As the Secretary of State mentioned, we are very pleased with the development of the free trade agreement. Indeed, a few days ago we had the fifth anniversary of the agreement. This is working very well. In the many areas that we are trading, our trade balance is increasing year by year.

As the Secretary of State mentioned, for Peru now a very high priority is the 20th Conference of the Parties of the climate change convention. For us, it will be very important that the key role players in the convention like the U.S. could do significant contributions during the conference, meaning real pledges in order to enhance the Green Fund, contributions in terms of national measures to diminish the greenhouses – gases, and of course, a significant draft in order to finish the new convention for Paris next year.

Also, I would like to take the opportunity to express to the Secretary of State the very high interest of Peru in this initiative on education, the 100,000 Strong. We are very much interested to develop our cooperation with the U.S. in order to promote better education for Peruvians in the areas of science, technology, engineering, mathematics, which are areas very important for the development of Peru.

SECRETARY KERRY: Thank you, sir.

FOREIGN MINISTER GUTIERREZ: Thank you.

SECRETARY KERRY: Thank you very much.

$123 MILLION ALLEGED SCHEME INVOLVING ATM MACHINES IS SHUT DOWN BY SEC

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23106 / October 8, 2014
Securities and Exchange Commission v. Nationwide Automated Systems, Inc. et al., Civil Action No. 14-Civ-07249 (SJO) (FFMx) (C.D. Cal., filed September 17, 2014)

SEC Shuts Down $123 Million Atm Ponzi Scheme in California

The Securities and Exchange Commission today announced charges against the perpetrators behind a California-based Ponzi scheme in which investors were told their money would be used to operate automated teller machines (ATMs) in popular public places and they would earn a significant share of the profits.

In a case unsealed yesterday in federal court in Los Angeles, the SEC has obtained an emergency court order to freeze the assets of Nationwide Automated Systems (NAS), located in the L.A. suburb of Calabasas, Calif.  The order also appointed a temporary receiver over NAS’s assets and froze the assets of the company’s owner Joel Barry Gillis and fellow officer Edward Wishner.

The SEC alleges that NAS raised more than $123 million in the past 18 months by telling investors they could purchase ATMs from NAS and then lease them back in return for “rent” of 50 cents per ATM transaction.  Investors were guaranteed an investment return of at least 20 percent per year in these sale-and-leaseback agreements.  However, the vast majority of NAS’s revenue is from new investor funds, and this money is being used to pay the promised returns owed to earlier investors.  NAS does not actually own most of the ATMs it claims to operate, a fact unknown to investors who were contractually forbidden in their agreements from contacting the locations where their ATMs were supposedly located.

According to the SEC’s complaint filed under seal on September 17, NAS, Gillis, and Wishner convinced investors to buy an ATM by paying a flat amount – typically $12,000 but in some cases $19,800.  They have claimed to operate some 31,000 ATMs in high-traffic retail locations like hotels, casinos, and convenience stores largely in the Midwest.  However, reports from the company’s third-party ATM servicers only identify approximately 235 ATMs currently serviced for NAS.

The SEC’s complaint charges NAS, Gillis, and Wishner with violating Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) as well as Sections 17(a)(1) and (3) of the Securities Act of 1933.  NAS and Gillis also are charged with violations of Rule 10b-5(b) of the Exchange Act and Sections 5(a), 5(c) and 17(a)(2) of the Securities Act.

The SEC’s investigation was conducted by Peter Del Greco, Sara Kalin, Roger Boudreau, and Marc Blau in the Los Angeles office.  The SEC’s litigation is being led by John Berry and Gary Leung.

UNMANNED NASA AIRCRAFT MAY PROVIDE WAY TO DETECT FIRES IN DISMAL SWAMP WILDLIFE REFUGE

FROM:  NASA 

NASA’s research in unmanned aerial systems (UAS) may soon provide a means for early detection and mitigation of fires in the Great Dismal Swamp National Wildlife Refuge, a nearly 50,000-square-acre region centered on the Virginia-North Carolina border.

NASA’s Langley Research Center, in nearby Hampton, Virginia, has signed a one-year agreement with the Department of the Interior’s U.S. Fish and Wildlife Service (FWS) to test small UASs for the detection of brush and forest fires. The research is part of the NASA Aeronautics Research Mission Directorate’s UAS Integration in the National Airspace System (NAS) project.

“The U.S. Fish and Wildlife Service is evaluating the feasibility of airborne unmanned platforms and their ability to offer a safer and more cost-effective alternative for surveillance of potential areas of interest immediately following thunderstorm activity,” said Great Dismal Swamp Refuge Manager Chris Lowie. “The agency hopes to see a significant decrease in cost to survey the Great Dismal Swamp, as well as a reduction in time to detect nascent fires, which could potentially save millions of dollars to the taxpayer in firefighting costs,” added Lowie.

Mike Logan, the research lead at Langley, came up with the idea after a forest fire in 2011 that lasted almost four months and cost more than $10 million to extinguish. Smoke from that fire, which was caused by a lightning strike, traveled as far north as Maryland only three years after another $10-million blaze in 2008, according to FWS.

“I made a phone call to the local fire captain after days of inhaling peat bog smoke,” said Logan. “I learned most fires are caused by lightning strikes and the only way they can spot them is by hiring an aircraft to do an aerial survey of the huge swamp. So I figured why not use a UAV as a fire detector?”

After approval from the Federal Aviation Administration, the team at Langley plans to fly a lightweight UAS equipped with cameras and transmitters over the wildlife refuge.

“One is an out-of-the-nose camera that can see smoke plumes as they are rising,” Logan explained. “The other is an infrared camera housed in the body of the plane that points down. It can find hot spots by detecting heat signatures.”

Although the aircraft can fly as fast as 40 miles an hour, when used in this capacity it will be flown slower while it transmits video, allowing individuals on the ground to observe what is occurring in the live video. The transmissions can be viewed on a laptop computer in a mobile ground station.

Logan says the drone, which weighs about 15 pounds and has an almost six-foot wingspan, has a range of about eight miles and can stay aloft as long as an hour, before the batteries need recharging. The aircraft also can be programmed to fly on its own, but a safety pilot will monitor operations during the tests.

“This kind of application for unmanned aerial systems shows just one public benefit,” said Dave Hinton, Langley associate director for UAS technologies and applications. “They can be used to detect fires or locate people who are lost.”

MISSISSIPPI TRUCKER PLEADS GUILTY TO PAYING BRIBES TO MILITARY BASE EMPLOYEES

FROM:  U.S. DEFENSE DEPARTMENT 
Tuesday, October 7, 2014
Mississippi Man Pleads Guilty to Paying Bribes to Employees at Military Base for Freight Business

A former driver for a national trucking company pleaded guilty today to bribery charges, admitting that he bribed employees in the Traffic Office at the Marine Corps Logistics Base Albany (MCLB-Albany) in order to obtain lucrative freight hauling business, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.

David R. Nelson, 54, of Lucedale, Mississippi, pleaded guilty today before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.

During his guilty plea, Nelson, a former driver for a large transportation company based in Louisville, Kentucky, admitted to paying more than $100,000 in bribes between 2006 and 2012 to officials in the Traffic Office at MCLB-Albany in exchange for obtaining freight shipments from the base to destinations on the West Coast.  The bribes started at $500 for each shipment, but later grew to as much as $1,500 per shipment.  From the money he made from these freight shipments, Nelson purchased a $50,000 specially-modified trailer that allowed him to carry multiple Protected Security Service loads on a single trip.

As part of his plea agreement with the United States, Nelson agreed to forfeit the proceeds he received as a result of the bribery scheme, as well as to pay full restitution to the Department of Defense.  Sentencing will be scheduled at a later date.

The case is being investigated by the Naval Criminal Investigative Service and the Defense Criminal Investigative Service.  The case is being prosecuted by Trial Attorneys Richard B. Evans, J.P. Cooney and John Keller of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.

WOMAN PLEADS GUILTY TO CONSPIRACY TO SMUGGLE UNDOCUMENTED IMMIGRANTS

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, October 6, 2014

Costa Rican Woman Pleads Guilty to Human Smuggling Conspiracy
A citizen and resident of Costa Rica pleaded guilty today to conspiracy to smuggle more than 25 undocumented immigrants to the United States.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations’ (HSI) Washington, D.C., Field Office made the announcement.

Mercedes Morera Roche, 49, was extradited to the United States from Panama on Aug. 21, 2014, to face charges for smuggling more than 25 undocumented immigrants from Cuba to the United States.

According to her plea agreement, Roche admitted that between 2004 and 2011, she was an organizer of a human smuggling network that provided instructions, fraudulent identity and travel documents, escorts, transport, safe house locations, and other assistance to facilitate the illicit travel of undocumented immigrants to the United States.  Roche admitted that in some cases, she provided fraudulent passports so that undocumented immigrants could fly to the United States with the help of corrupt foreign airline and immigration officials.  Roche directed the immigrants to destroy the fraudulent documents during the flights before landing at United States airports and instructed the immigrants about engaging with authorities at the airports.  In other cases, Roche coordinated the smuggling of undocumented immigrants via land through Latin America and Mexico into the United States.  Roche solicited payments of up to $10,000 for each undocumented immigrant.

Roche’s sentencing is scheduled on Dec. 11, 2014, before U.S. District Court Judge Ursula M. Ungaro of the Southern District of Florida.

The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

The investigation was conducted by HSI’s Washington, D.C. Field Office with support from the Human Smuggling Trafficking Center and U.S. Customs and Border Protection’s National Targeting Center.  Critical assistance was also provided by HSI’s Miami Field Office and the ICE Attaché Office in Panama.  Extradition assistance was provided by the Criminal Division’s Office of International Affairs, Interpol Washington and the United States Marshals Service.  The Justice Department is grateful for the significant assistance provided by the Panamanian Ministry of Foreign Affairs.  This case is being prosecuted by Trial Attorney Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Robert Emery of the Southern District of Florida.

Wednesday, October 8, 2014

SECRETARY KERRY, U.K. FOREIGN SECRETARY HAMMOND MAKE REMARKS ON ISIL, EBOLA CRISIS

FROM:  U.S. STATE DEPARTMENT 
Secretary's Remarks: Remarks With U.K. Foreign Secretary Philip Hammond
10/08/2014 01:40 PM EDT
Remarks With U.K. Foreign Secretary Philip Hammond

Remarks
John Kerry
Secretary of State
Treaty Room
Washington, DC
October 8, 2014

SECRETARY KERRY: Good morning, everybody. I’m very privileged to be here welcoming Foreign Secretary Philip Hammond to the State Department, and I’m even more privileged to work with him and to form a partnership that gives full gusto to the meaning of the special relationship that Great Britain and the United States share. So it is important for us to be continuing – I think we – Philip mentioned to me we’ve probably met eight times already in the course of a few weeks of his being on this job, having shifted from being defense secretary.

And we share a lot in this effort. In the fight against ISIL, the British people have already borne a very heavy burden, and it’s a pain felt personally by everybody in the United States and Great Britain as well. We’ve both seen our hostages brutally murdered in barbaric acts that shock the conscience of the world, but the response of both of our countries is not to wilt; it is to fight, to push back against this barbarity. And we are doing so.

I want to thank Foreign Secretary Hammond for the commitment the United Kingdom has made to the international coalition that will degrade and defeat ISIL over the next months, in the period ahead. The Royal Air Force is now conducting airstrikes on ISIL positions in Iraq, and the United Kingdom has provided some of the strongest humanitarian support in Iraq – more than $36 million in water and shelter, food, and medicine to save the lives of innocent people.

And the United States and the United Kingdom are also standing together as we battle Ebola in West Africa. And we are monitoring particularly this situation, and we’re very grateful for the way that Great Britain has now ramped up its efforts in Sierra Leone, including deploying a civil-military task force, constructing more than 700 beds in Ebola treatment unites, and providing essential supplies and personnel.

President Obama has made it crystal clear that Ebola is an urgent global crisis that demands an urgent global response. The United States has intensified every aspect of our engagement, and that includes providing Ebola treatment units, recruiting first responders, and supplying a critical set of medical equipment.

Just 48 hours ago, President Obama convened another strategy meeting at the White House in order to discuss where we are and where we need to get to, and I want to discuss that in a moment. But in addition to that, I have been in daily contact with Rajiv Shah and – the USAID director, and Deputy Secretary of State Heather Higginbottom, and our Ebola Coordinator Ambassador Nancy Powell, in order to make sure that we are bringing all of our resources to this effort.

I’m here this morning to make an urgent plea to countries in the world to step up even further. While we are making progress, we are not where we can say that we need to be. And there is additional – there are additional needs that have to be met in order for the global community to be able to properly respond to this challenge, and to make sure that we protect people in all of our countries.

There are specific needs, and I want to emphasize those needs by showing a few slides, if I can. As you’ll see in the first slide to my left here, we need more countries to move resources of specific kinds. It is not just a question of sending people, though it is vital to send people. But we need Ebola treatment units. We need health care workers. We need medevac capacity. We need mobile laboratory and staff. We need nonmedical support: telecommunications, generators, incinerators, public communications capacity, training, construction. We also need large assistance of health system strengthening, of cash that countries could contribute, budget support, food, other humanitarian efforts, and we need ways of getting that equipment to people.

All of these things are frankly urgent in order to be able to quickly move to contain the spread of Ebola. We need airlines to continue to operate in West Africa and we need borders to remain open. And we need to strengthen the medevac capacity. We need countries to contribute more Ebola treatment centers, and we need other African countries with the capacity to send responders to join the effort. And we need to make sure that the health care workers who go are properly trained, properly equipped, and supported in order to prevent additional infections.

Now, as you can see in the next slide to my left here, this gives you a sense of who has contributed and what they have contributed. And the fact is that the United Kingdom and the United States, between them, have contributed $120 million to the United Nations response. There are smaller countries that have stepped up to the plate – some quite remarkably. Some smaller countries are contributing way above their per capita population compared to other countries.

But the fact is more countries can and must step up in order to make their contributions felt, and this chart tells the story. Those are not enough countries to make the difference to be able to deal with this crisis. And we need more nations – every nation has an ability to do something on this challenge. And the next chart will show the – as you see, we have a shortfall still of some $300 million. The United Nations has identified $1 billion in urgent needs, which is what are reflected in that pie chart. The World Bank has put in 22 percent. The U.S.A. has put in 11 percent. Private sector, 10 percent. Others – you can see the tally.

But this unfunded is a critical component of our ability to be able to meet this challenge, and we need people to step up now. Now is the time for action, not words. And frankly, there is not a moment to waste in this effort.

Both Foreign Secretary Hammond and I also remain deeply committed on another issue, and that is the question of a Europe which is whole and free and at peace. Together with our partners in the European Union, the United States and the United Kingdom are supporting Ukraine’s sovereignty and territorial integrity, and the Ukrainian Government’s efforts to implement important democratic reforms. We agree on the need for Russia to withdraw its forces immediately from Ukraine, to end its material support for separatists, and to meet its commitments under the Minsk ceasefire which they have agreed to, and to put in place the peace plan agreements.

Russia’s actions over the past months have challenged the most basic principles of our international system. Borders cannot and should not be redrawn at the barrel of a gun, and people have a right in their own country, within their sovereign borders, to determine their own future. So together with the G7, our European partners and other allies, we have made it clear that we are prepared to do even more to ensure that the international order prevails and that with one voice, we prove that we mean what we say and we say what we mean.

Finally, I want to mention that tomorrow morning, Foreign Secretary Hammond and I will travel to my hometown, Boston, to focus on an issue that animates President Obama and Prime Minister Cameron, both of whom – and which also demands all of our urgent attention, and that is our shared responsibility to confront climate change. I appreciate Foreign Secretary Hammond’s personal leadership on this issue. We can conclude a new international agreement that is ambitious, effective, and inclusive of all countries, particularly the largest greenhouse gas emitters, of which we are one. But we will also only get there in the end – even if one large emitter were to eliminate all of its emissions, that won’t do the job. We will only get there in the end if we make it clear that all countries must join in this effort and that inaction is not an option.

So Mr. Foreign Secretary, I’m delighted to welcome you here at this time of obvious significant global challenge. We greatly appreciate, as I said, your partnership, your leadership, and we look forward to continuing to work with you. Thank you.

FOREIGN SECRETARY HAMMOND: Thank you. Thank you very much, John. It’s a great pleasure to be back here in Washington, this time in my new role as foreign secretary. When I came here many times as defense secretary, I was always clear that the U.S. is Britain’s most important military partner. As foreign secretary, I’m equally clear that the United States it the UK’s greatest foreign policy ally. And the range of issues that we’ve discussed today and that the Secretary has outlined reflects how closely we work together on a huge range of issues in foreign affairs.

That relationship is based on our shared history, our shared values, and our longstanding cooperation on a range of global issues, from fighting the threat of extremism, promoting stability in countries such as Libya, dealing with the challenge to the established order in Ukraine, addressing global crises like Ebola, and promoting an ambitious EU-U.S. free trade agreement.

I want to begin, if I may, by paying tribute to Secretary Kerry for his energy and resolve in dealing with some of the most challenging foreign policy issues the world has faced for a while. I’ve only been in this job for three months, but as John said, we’ve already met eight or so times. Every week, we seem to be in a different city somewhere discussing these challenging issues that we’re having to deal with. And I’ve observed him in action. I’ve seen his tireless commitment and inexhaustible enthusiasm, which is the personification of U.S. leadership on these many, many challenges that we have to deal with together around the world.

And our meeting today comes at a pivotal moment in addressing the situation in Iraq and Syria and responding to the atrocities that are being committed by ISIL – atrocities that have been visited upon UK and U.S. citizens, but are also being felt by ordinary Muslims in Iraq and Syria every day of every week. It is clear that tackling ISIL requires a strong military response from the international community, but that has to be combined with a clear diplomatic plan to support the new Iraqi Government’s inclusive program; to hamper ISIL’s access to funds, fighters, and resources; and a political strategy to combat the poisonous ideology that underpins ISIL; and counter those trying to spread sectarian violence and hatred across the region and beyond.

We now have those elements in place, and I am pleased that Britain is playing a key role in that response, leading efforts at the UN to cut off ISIL funding, a long-running counter-radicalization program at home, and now RAF combat jets and surveillance assets contributing to the military response. Britain will continue to work closely with coalition partners on further actions that we can take across the international community to ensure that we tackle ISIL not just through military action but through all those other strands of action which are essential to ensure our long-term success.

We have also, as Secretary Kerry has said, discussed the situation in Ukraine and the crucial importance of implementing the 12-point peace plan. Ukraine is a sovereign country; its people are entitled to make their decisions about their country’s future. There can be no Russian veto on Ukrainian democracy. And Ukraine’s President Poroshenko will need continuing international support to ensure stability within the country and to ensure that the Ukraine is able to go on making decisions about its own future. And we spent some time this morning discussing ways in which the UK and the U.S. can work with other partners, international partners particularly in the European Union, to continue to support President Poroshenko in those efforts.

And of course, we spoke about the appalling situation in West Africa where the spread of Ebola virus is a real cause for concern. Last week we held – I chaired a conference in London on defeating Ebola, and I said then that the disease is an unprecedented threat that knows no borders. We have to get ahead of this disease, but if we get ahead of it, if we rise to the challenge, we can contain it and beat it. We know how to do this. It is not complicated to do. It just requires a large focus of resource and effort to deliver it.

And Secretary Kerry and I discussed the increased measures that the U.S. is leading in Liberia and that the UK is leading in Sierra Leone. We now need, as the Secretary has said, the wider international community to step up to the plate and deliver that additional resource – not just money, but trained medical and clinical personnel to lead that effort on the ground. We all have to do more if we are going to prevent what is currently a crisis from becoming a catastrophe.

The UK has committed over $200 million to the program in Sierra Leone. We have military and civilian teams on the ground, a construction program to deliver 700 Ebola treatment beds. This morning, I joined a COBRA emergency committee meeting in London by video link from the British Embassy here, and we decided at that meeting to deploy the Royal Fleet Auxiliary Argus to Freetown with three Merlin helicopters embarked to provide a communication and transport capability on the ground. We’re also conducting trials in Sierra Leone of a new model of Ebola care unit, a primary care triaging system for those with early stage symptoms of Ebola.

It’s also important that we remember that our national security is dependent upon our economic security. We can’t have a strong defense without a strong economy underpinning it. Later this afternoon, I will be holding a discussion at the Atlantic Council here in Washington on the benefits of the Transatlantic Trade and Investment Partnership between the United States and the EU. The UK remains committed to this ambitious deal and will be a cheerleader for it within the European Union. If we achieve it, it will create the largest free trade zone in the world, bringing more jobs and more growth to both Europe and the United States, and setting the standards for trade deals for many years to come, allowing us to establish our international standards as the standards for trade patents in the coming decades.

And tomorrow, I look forward to our visit to Massachusetts to tour the Massachusetts Clean Energy Center’s wind blade testing facility in Charlestown. John and I agree that climate change represents a strategic threat to global prosperity and to global security. Innovation and investment in clean energy technology must be at the heart of our response and can help us turn a threat into an economic opportunity. The UK and the U.S. will work together to ensure the world responds to this threat before it is too late, including through the conclusion of an effective global climate deal at Paris at the end of next year.

So once again, John, I’m delighted to be here. Thank you again for your leadership on these multiple challenges that face us, and I very much look forward to working with you across all of these areas of activity to preserve and to strengthen this very special relationship. Thank you.

SECRETARY KERRY: Thank you very much.

MS. PSAKI: The first question will be from Elise Labott of CNN.

QUESTION: Thank you, Mr. Secretary. The U.S. intensified airstrikes overnight on Kobani. Has there been a decision now to save Kobani from falling? Because yesterday, your spokesman and other officials suggested that you had larger strategic priorities than saving Kobani or any particular city or town.

And I’d like to talk to you about the reluctance of Turkey. They have tanks at the border, soldiers at the ready, but this NATO ally has not done really much to save this town inches from its border. What did you ask the prime minister to do in recent conversations? The president has said that they won’t do more unless you act to get rid of Assad. Is this an excuse, and – or are you deferring to Turkey here? Have you not been partnering with the Kurds, who have been battling ISIS for a year and are decidedly secular, to save the city?

And Foreign Secretary, you spoke a lot about what you’re doing for the coalition, particularly in Iraq. But I’m wondering whether you see Britain furthering that action into Syria, or is there a kind of disagreement on whether the British should take part in airstrikes and what the goals are in Syria? Thank you.

SECRETARY KERRY: Thanks. Thank you. Thanks, Elise. Well, we’re deeply concerned about the people of Kobani, who are battling against ISIL terrorists. And indeed, we have talked to the leaders of Turkey. I talked with Prime Minister Davutoglu, I think, twice yesterday and the day before. We have conducted additional strikes in the region. We conducted strikes both Monday and Tuesday and now. But as horrific as it is to watch in real time what’s happening in Kobani, it’s also important to remember that you have to step back and understand the strategic objective and where we have begun over the course of the last weeks.

We’re literally just coming out of the UN meeting at which we announced the coalition, literally have just been deploying the first efforts to liberate – as you know, a few weeks ago – Sinjar Mountain, the siege on Amirli, the Haditha Dam, the Mosul Dam, and we were very successful in those efforts. And the Iraqi forces within Iraq are standing up and have had some successes – some setbacks too – but some successes over the course of the last days.

But General Allen is literally only on his first trip right now in the region. He will be going to Turkey tomorrow. He is going to have long meetings through tomorrow and Friday in which we hope to determine exactly how Turkey will now enter this having resolved their hostage crisis. Clearly, on their border, this is of enormous concern to Turkey and they recognize that.

QUESTION: But where are they?

SECRETARY KERRY: These things have to be done in a thoughtful and careful way so everybody understands who is doing what and what the implications are of their doing it and where you go as a result. And I am absolutely confident that tomorrow, the discussions will take place directly with Ambassador McGurk and General Allen and CENTCOM. General Lloyd Austin is very much involved in directing those strikes now and in doing what he can within the framework of the current structure. But this is a structure that is evolving on a daily basis, and notwithstanding the crisis in Kobani, the original targets of our efforts have been the command and control centers, the infrastructure. We’re trying to deprive the – ISIL of the overall ability to wage this, not just in Kobani but throughout Syria and into Iraq. So I think you will see over the next hours, days the fullness of that strategy evolving and decisions being made about the Turks and others as to exactly what role they’re going to play.

FOREIGN SECRETARY HAMMOND: And following on from that, you asked about the UK’s position. We have – we were asked by the Iraqi Government to provide support in Iraq. We obtained parliamentary approval for that support and we’re already in action in Iraq. We absolutely have not ruled out playing a role in Syria. We will require further parliamentary approval if we decide that that is the right thing for us to do, but as Secretary Kerry said, this is a coalition. There are many players in it and many different tasks to be carried out. There’s some division of labor here, specialization of roles. And just as we wait to see exactly how Turkey will make its contribution to the coalition, so the UK is still considering whether the right way for us to make a contribution – the way in which we can most usefully add value to the coalition – is to extend our military permissions to operations in Syria. If we conclude that is the right thing to do, we’ll ask the British parliament for approval of that decision.

MS. PSAKI: The second question is from Peter Foster at Telegraph.

QUESTION: Thank you. My first question relates to Kobani and Syria. The French president has indicated he supports Turkish calls for a buffer zone. Do either have – either of you have any comment on that, and have any sense of what form a buffer zone might take and what purpose it might serve?

And just to follow up on British role – military role in the Iraq-Syria situation, the foreign secretary has indicated that Britain would be receptive to American requests if there was a specific military role that Britain could play. This question to Secretary Kerry: Do you see a useful role that Britain could play militarily in Syria? I think particularly if, say, Kobani, where our Brimstone missile could have a role in – it’s a very low-caliber missile. It could have a role in these very closed urban environments. Do you see America seeing a role for Britain in Syria?

FOREIGN SECRETARY HAMMOND: May I answer that question first? We are at the stage of exploring – as the Secretary said, this is very new territory. I mean, we’re only in the first week or two of the coalition’s existence and operation. The idea of a buffer zone is one that has been floated. We’d have to explore with other allies and partners what is meant by a buffer zone, how such a concept would work, but I certainly wouldn’t want to rule it out at this stage.

In terms of the UK’s potential military contribution in Syria, we would see this as a military question: Is there a militarily useful role that UK assets could play? And Secretary Kerry may want to say something about that, but I think this is a question for the military people. General Allen has his role; CENTCOM will be in the lead on this. If CENTCOM commanders see a specific role for UK military assets, I’m sure that they will not be slow in requesting them.

SECRETARY KERRY: Look, in broad, generic terms, can Great Britain be useful? Absolutely, in so many different ways. But this is, as Philip has just said, a specific determination that has to be made with respect to a very specific mission, and it’s up to General Austin, our CENTCOM commander, to make that decision. And he will do so with the appropriate consultation with his counterparts and with the President with respect to the overall mission. But in – there’s no question that we are very happy to have our friend and ally Great Britain as part of this, and there’s all kinds of things that we can do together in this endeavor.

QUESTION: And the buffer zone, Secretary?

SECRETARY KERRY: The buffer zone – as Philip said, the buffer zone is an idea that’s been out there. It’s worth examining. It’s worth looking at very, very closely. There are a million-plus refugees who have crossed the border. There were another 180,000 or so driven out in the last few days from Kobani. This should not be a problem that is thrust onto Turkey, Lebanon, Jordan, where they bear an incredible burden with respect to their societies. And if Syrian citizens can return to Syria and be protected in an area across the border, there’s a lot that would commend that. But at the same time, you’d have to guarantee safety, guarantee there wouldn’t be attacks by the government, other kinds of things would have to happen. So it needs a thorough examination. We’re all in favor of looking at this very closely, and that will clearly be one of the things that General Allen will be having discussions on and, subsequently, the active line authority commanders will have discussions on over the course of the next days.

MS. PSAKI: Thank you, everyone.

SECRETARY KERRY: Thank you all.

U.S. AFRICA COMMANDER TELLS REPORTERS EFFORTS MADE TO PROTECT MILITARY PERSONNEL FROM EBOLA

FROM:  U.S. DEFENSE DEPARTMENT 

Left:  Army Gen. David M. Rodriguez, commander of U.S. Africa Command, describes the Defense Department's response to Ebola during a news conference at the Pentagon, Oct. 7, 2014. DoD photo by Air Force Master Sgt. Adrian Cadiz.  


Rodriguez Pledges Every Effort to Protect Military From Ebola
By Nick Simeone
DoD News, Defense Media Activity

WASHINGTON, Oct. 7, 2014 – Everything possible will be done to mitigate risks of exposure to Ebola by U.S. military personnel deployed to Liberia to contain the epidemic, the commander of U.S. Africa Command said today.
There are no plans for the U.S. military to provide direct care to Ebola patients, Army Gen. David M. Rodriguez told reporters at the Pentagon. Personnel from the U.S. Naval Medical Research Center will, however test for Ebola at mobile labs from samples collected from area clinics and health care providers.
Trained to guard against exposure

Rodriguez said the three or four people who will staff each lab will be trained to the highest level and will be prepared to guard against exposure.

“They can operate in a nuclear, biological and chemical environment,” he noted. “They are specifically trained to do that, and that's their primary skill set.”

Pressed by reporters to explain the risks to Americans operating the mobile labs, Rodriguez strongly discounted the likelihood of contamination. “It’s a very, very high standard that these people have operated in all their lives, and this is their primary skill,” he emphasized. “This is not just medical guys trained to do this.”
National security priority.

Seven such labs are expected to be set up in Liberia for Ebola testing. The U.S. military presence in the West African nation is expected to grow to up to 4,000, with personnel establishing a hospital facility and providing logistics and engineering support, as well as training of up to 500 health care workers per week to help treat patients and prevent the spread of the virus, which President Barack Obama yesterday called a national security priority.

Seventeen Ebola treatment facilities are expected to be set up in Liberia by November, Rodriguez said, acknowledging that the pace of operations has been challenging. “Their whole nation is overwhelmed,” the general said. “Their health facilities are overwhelmed. That’s all broken down, so we have to bring in everything at the same time.”

The Centers for Disease Control and Prevention has called the Ebola outbreak in West Africa the largest in history, with more than 3,400 deaths reported. Nearly that number of cases alone has been reported in Liberia, where the disease continues to spread.

Ensuring safety of U.S. personnel

About 240 Defense Department personnel are currently in the Liberian capital of Monrovia, and another 108 are in nearby Senegal in support of U.S government efforts to stop the spread of the virus. More personnel are expected to flow into the region in the coming days, and Rodriguez said everything will be done to ensure their safety.

“By providing pre-deployment training, adhering to strict medical protocols while deployed and carrying out carefully planned reintegration measures based on risk and exposure,” the general told reporters, “I am confident that we can ensure our service members’ safety and the safety of their families and the American people.”

Rodriguez said the U.S. military could be deployed to Liberia in significant numbers for up to a year to support efforts led by the U.S. Agency for International Development to stop the spread of the virus.


U.S. MILITARY LOOKING FOR NEXT-GEN TECHNOLOGIES

FROM:  U.S. DEFENSE DEPARTMENT 
DoD Seeks Next-generation Technologies, Kendall Says
By Claudette Roulo
DoD News, Defense Media Activity

WASHINGTON, Oct. 7, 2014 – The Defense Department is starting a long-range research and development initiative intended specifically to deliver technologies capable of providing the next generation of dominance on the battlefield, the undersecretary of defense for acquisitions, technology and logistics said today.

The study is modeled after a similar one conducted in the 1970s that ultimately led to many of the technologies being used today, Frank Kendall told an audience at the International Test and Evaluation Symposium in Crystal City, Virginia.

“It's time to kind of rethink what's going to give us dominance in the future,” he said, adding that he expects the program will inform next year’s budget cycle.
Individual technology programs have had a strategic emphasis over the years, Kendall said, but it’s time to have that same emphasis at the DoD level. “We need to think about what's going to give us the next generation of dominance on the battlefield and make sure we're focused on the things that have that potential,” he said.

The undersecretary noted the initiative will be overseen by the department’s best technical minds, including Stephen Welby, deputy assistant secretary of defense for systems engineering; Alan Shaffer, principal deputy to the assistant secretary of defense for research and engineering; Dr. Arati Prabhakar, director of the Defense Advanced Research Projects Agency; and Katrina McFarland, assistant secretary of defense for acquisition.

A revolution in military affairs

The 1970s study did a thorough job, Kendall said, noting that it yielded the idea for smart munitions and smart seekers for missile defense systems.

“With one or two exceptions, the technologies that were identified as the ones we should be focusing on were pursued and were pursued successfully,” he added. “It did the same thing, basically, in communications and in [the] electronic warfare side of communications in terms of protecting data links and so on.”
Kendall credited the initiative with “sowing the seeds” for today’s capabilities and revolutionized the efficiency of battlefield performance -- meaning fewer troops were needed to meet particular objectives.

This new efficiency was demonstrated dramatically in the first Gulf War, he said.
“We had a suite of things that included stealth -- and even the classified version of this study doesn't talk about stealth, because at the time, it was completely under wraps -- but smart munitions, wide-area sensors, networking and stealth combined are … the revolution that we unleashed on the world in the first Gulf War,” Kendall said.

The world was watching

Other countries took note of the effect technology had on the battlefields of Kuwait, he said.

“We were expected to have about 10,000 casualties in the first Gulf War and we had a few hundred. … We demonstrated the ability to take out a relatively modern conventional force very, very efficiently, very, very quickly,” Kendall said. “Nobody watched that more than the Chinese.”

Russia was watching, too, the undersecretary noted. A lot of theories were generated about what the quick victory and the successful employment of the new technologies portended, he said.

“We have ridden that set of capabilities ever since,” Kendall said. “We used it in Serbia, very effectively. We used it when we went into Afghanistan, went into Iraq, used it in Libya, we're using it right now. But a lot of time has gone by since 1991, and people have had a chance to respond. They've also had a chance to build similar capabilities.”

Nations are building smarter weapons, the undersecretary said, and those weapons are proliferating around the world.

“Nobody has a monopoly on technology,” Kendall said. “It never stands still. And once you've seen that someone else has solved the problem and knows how to do something, it's not hard for you to do the same thing as well.”


NSF SUPPORTS DIVERSITY WITH ASTRONOMY PROGRAM

FROM:  NATIONAL SCIENCE FOUNDATION 
Making stars
Astronomy program provides tools, support to enhance diversity
October 7, 2014

Like so many other children, Fabienne Bastien did not like to go to sleep at bedtime.

She recalls her mother lying alongside her, telling her to look out her window into the night sky because her guardian angel was there. And as she searched for this elusive guardian angel, what she found instead was the moon and stars, among other astronomical delights.

Despite Washington, D.C., metro-area light pollution that can restrict one's view of the cosmos, Bastien pinpoints that moment as the one when she got hooked on astronomy, knowing it held her future, if not an actual guardian angel.

Many astronomers and astrophysicists speak of that same source of inspiration. But, while our solar system's immensity and beauty have an almost universal appeal, the astronomy and astrophysics career field has had very little representation from minority populations.

In a study done by the American Astronomical Society, which includes most professionals and many students in these fields, only 21 percent of its members is female, which is light-years ahead of the representation of African Americans and Hispanics/Latinos--1 percent and 3 percent, respectively.

Not surprisingly, those numbers have prompted a call for diversity within the astro community.

In 2008, the National Science Foundation (NSF) started a program called Partnerships in Astronomy and Astrophysics Research and Education (PAARE, pronounced "pair"). Its goal was to identify and explore ways to repair "leaks" in the astronomy/astrophysics career pipeline for minority students. In many cases, minority students would start out studying astronomy, but they weren't making it all the way through the pipeline to pursue science careers.

When Bastien finished her undergraduate degree at the University of Maryland, she too wasn't sure whether she was appropriately prepared for the rigors of a grad school education in astronomy.

"I was petrified of grad school," she said. "I hadn't taken advantage of research opportunities as an undergrad largely due to personal challenges. But also because our department was so big, I fell between the cracks there."

PAARE aimed to make the face of astronomy more inclusive by seeing that minority students like Bastien got the right mix of resources, mentoring and encouragement. The partnership found that this required a multi-faceted approach that could target those pipeline points where "leaks" were most likely and "pair" some strong astronomy programs with schools that have more diverse populations, providing mentoring and support.

In Bastien's case, the PAARE Fisk-Vanderbilt Masters-to-Ph.D. Bridge Program proved to be one where she not only got her Ph.D., but had the opportunity to analyze stellar variability data, which led to a paper in Nature, being named a Hubble fellow and to her current postdoctoral work at Penn State.

The leaky pipeline

"We currently fund several highly complementary PAARE partnerships, which attack the leaky pipeline at different stages," said Dan Evans, the NSF program director who manages PAARE funding for the Division of Astronomical Sciences. "We're deeply concerned about the underrepresentation of minority students in astronomy and are massively proud of the successes of the students and staff who have participated in PAARE. We are exposing students to cutting-edge research. We are providing important new opportunities. And mentoring is utterly critical."

Though the partnerships target different points in the pipeline, they all emphasize mentoring, access to research opportunities and resources early on. They also emphasize an infrastructure that can address both academic and personal issues that might hinder progress.

"Queens is the most diverse county in the country," said Tim Paglione, director of AstroCom NYC, a partnership between astronomers at the City Universities of New York (CUNY), the American Museum of Natural History and Columbia University. Of the current PAARE partnerships, this is the only one that focuses exclusively on undergraduate students, targeting freshmen and sophomores. It also has the added challenge of CUNY being located throughout New York City, creating unique transportation issues that can deter students who feel inadequately prepared or supported.

That's why this program only accepts four new students each year. It supports students with summer fellowships, school scholarships, transportation stipends and program-provided laptops. It also provides long-term career mentors, research mentors, travel to observatories and professional meetings and membership in the American Astronomical Society.

"The problem is gigantic, but our astronomy field is also small," Paglione said. "That means even with our little program, we can have an impact. If we graduated two students each year from underrepresented groups who then went onto graduate school, we would be one of the leading programs in the country."

Keivan Stassun started a PAARE-like partnership even before PAARE existed, using funding from his NSF CAREER award in 2003 to develop the Fisk-Vanderbilt program, which focused on the potential pipeline leak at this juncture.

"That CAREER award gave me seed funding to do things like develop a website and recruit a couple of students as research assistants," Stassun said. "The CAREER grant got the whole thing going, both in terms of cash and caché as I got buy-in from both universities."

Broader than just astronomy, Stassun' s program has admitted 78 students in physics, biology, chemistry, materials science and astronomy, with the belief that they can impact these STEM disciplines as well. "This felt like the perfect program for me," Bastien recalled. "The extra encouragement helped. I was immediately working on real science--on rare eruptive young stars--because they serendipitously had these data they needed analyzed."

Another potential leak in this pipeline comes right after college, and South Carolina State University (SCSU) partnered with the NSF-funded National Optical Astronomy Observatory and Clemson University to address the loss of minority astronomy students at this stage of their education.

"We hoped to mirror Keivan's success at Vanderbilt," said Don Walter, who started the Partnership in Observational and Computational Astronomy, based on an undergraduate physics curriculum at SCSU. "We overestimated the number of students we'd get involved, so we haven't yet seen the numbers at the grad program that we hoped for, but the momentum is there, and we believe we have the right supports in place."

The SCSU partnership admittedly has had different obstacles and issues. It doesn't have full-time researchers because SCSU is a predominantly undergraduate school. The astrophysics portion of the curriculum is a concentration, not a degree. And the STEM graduate programs are a few hours away at Clemson, not nearby.

Mentoring makes the difference

"We try to spend a lot of time with our students as soon as possible. Because they don't take their first physics courses until their second year, it would be easy for them to get lost," Walter said. "I'll ask them to come by to make sure we connect early on--even waiting outside their classrooms if my emails don't bring them in. Students need early interaction."

This is a common theme throughout PAARE partnerships. Interaction with other students at the same and more advanced levels, as well as faculty, seems critical to success.

"We've added a number of mentoring layers," Stassun said about the Fisk-Vanderbilt program. "We assign to all incoming students a pair of peer mentors known as 'bridge buddies' who are students just one year ahead, and another mentor who is a few years further ahead. That way, they can see their future in front of them. We now also have a postdocs association, where the postdocs spend three-quarters of their time on their own research, but also a quarter of their time mentoring. They hold office hours, so students can talk to them, which offers a different perspective from faculty advisers."

At SCSU, one of the biggest challenges actually has been personal and financial problems that interfere with students staying in school.

"Some good students have had major personal or family issues," he said. "Money is tight, and many students find it too difficult to balance school life with demands in their personal lives. One female student in our physics program was an A-B student, but in the middle of the semester, her parents asked her to return home to care for a sick brother. She would have been a good undergraduate student and good graduate student."

Success determined by grit?

Interestingly enough, the admissions process for these PAARE partnerships has gone beyond evaluating just grades and test scores.

Stassun referred to a Nature article that he published this year with colleague Casey Miller about the Graduate Record Examination, or GRE, gender and ethnic bias that was discovered using published data from the Educational Testing Service that makes those tests. Their study found that women score approximately 80 points lower than men on the test's math section; and African Americans, approximately 200 points lower than Whites and Asians, on average.

For that reason, Stassun and his team put together a different set of metrics to measure something he refers to as "grit" or performance character.

"We found that the most successful students weren't necessarily the ones with the highest test scores," he said. "Graduate school is about persistence, so it makes sense to try and determine a candidate's capacity for being persistent. Consequently, we have achieved a very large, diverse program with a 90-percent Ph.D. persistence rate versus the national rate which is barely better than 50 percent." In other words, 90 percent of the students at Fisk-Vanderbilt are getting their doctoral degrees. He credits that success to careful, yet diverse selection and smart mentoring.

"PAARE funding makes a difference," Walter said. "In the August American Institute of Physics newsletter, SCSU was tied for eighth position nationally in terms of African American physics bachelors of science degree graduates during the five-year period, 2008-2012. We'd only graduated 12, but because the pool is so small, we're one of the top schools. PAARE helped us provide our students with meaningful internships at places like the National Optical Astronomy Observatory, which keeps their interest alive while giving them important experience."

Ariel Diaz, who attends the CUNY program, is a PAARE student who has benefitted from those experiences and demonstrated his "grit." A former Marine, he lives in New York City with his ailing father, whom he cares for. His astronomy interest was piqued in an introductory class that was far from the "easy A" he thought it would be. However, he found he really enjoyed the class, and Paglione's team recognized a student who had the wherewithal to succeed. Today, Diaz sifts through X-ray data from Chandra Observatory, looking for signals that could indicate black holes or other astronomical events.

"He's grown as a student. He's building a vision of himself in this career," Paglione said. "And honestly, that's what we want to do here. We want our students to see that future in themselves."

-- Ivy F. Kupec
Investigators
Donald Walter
Keivan Stassun
Timothy Paglione
Related Institutions/Organizations
Fisk University
CUNY York College
University of Texas at El Paso
South Carolina State University

WHITE HOUSE ANNOUNCES EXECUTIVE ACTIONS TO IMPROVE CARE FOR MEDICARE BENEFICIARIES

FROM:  THE WHITE HOUSE 
October 06, 2014
FACT SHEET: Administration Announces New Executive Actions to Improve Quality of Care for Medicare Beneficiaries

Today, the Administration announced new executive actions and the President signed into law legislation that will improve the quality of care for nursing home and home health patients. The President signed the Improving Medicare Post Acute Care Transformation Act of 2014 (IMPACT Act), bipartisan legislation that puts in place new and streamlined quality measures for nursing homes, home health agencies, and other post-acute care providers participating in Medicare. The Administration also took additional steps to improve care for nursing home and home health patients through new executive actions that will:

Expand and strengthen Medicare’s widely-used Five Star Quality Rating System for Nursing Homes, also known as Nursing Home Compare.
Improve quality home health care received by Medicare beneficiaries through a proposed rule that strengthens patient rights, improves communication, and focuses on patient well-being.
Actions to Improve Medicare’s Five Star Quality Rating System for Nursing Homes

Today, the Administration announced plans to expand and strengthen Medicare’s widely-used Five Star Quality Rating System for Nursing Homes, also known as Nursing Home Compare.  The rating system is a consumer service that offers useful information to the public about the quality of care in the 15,800 nursing homes that participate in Medicare or Medicaid.  Users may sort through nursing homes in their area through an online tool at CMS’ Nursing Home Compare website.

The Five Star Quality Rating System offers the most comprehensive overview of nursing home quality in the U.S., in an easy to understand format, based on data from onsite inspections conducted by trained, objective surveyors from state public health departments and CMS; Quality Measures submitted by the nursing homes is used to calculate certain quality measures, such as the prevalence of pressure ulcers, use of restraints, and the extent of injurious falls; and information about the staffing levels in nursing homes.

While the onsite inspections form the core of the rating system, CMS has been concerned that the quality measures and information about staffing levels rely on self-reported data from nursing homes that have been difficult to verify.

Beginning in January 2015 CMS will initiate the following steps to improve the reliability and utility of data displayed on Nursing Home Compare as well as to help nursing homes improve:

Nationwide Focused Survey Inspections:  In FY 2014 CMS piloted special surveys of nursing homes that focused on verifying performance on resident assessments and the data set that is used in the quality measures.  Effective January 2015, CMS and states will implement these focused survey inspections nationwide for a sample of nursing homes nationwide.  Expansion of these inspections will enable better verification of both the staffing and quality measure information that is part of the Five-Star Quality Rating System.

Payroll-Based Staffing Reporting: Using new funding provided by the IMPACT Act of 2014, signed by the President today, CMS will implement a system of quarterly electronic reporting that is auditable back to payrolls to verify staffing information.  This new system will increase accuracy, improve the timeliness of the data, and allow for the calculation of quality measures for staff turnover, retention, types of staffing, and levels of different types of staffing.  This data will not only allow for better information available to the public, but may equip nursing homes with better data by which to improve staffing and quality of care.  CMS expects that pilot testing will occur in fiscal year (FY) 2015, with nationwide reporting by all nursing homes by the end of FY2016.

Improved Scoring Methodology: CMS will revise the scoring methodology by which we calculate each facility’s Five Star rating. The revised scoring methods will place more emphasis on data that is verified by independent sources rather than data that is self-reported by nursing homes.
Timely and Complete Inspection Data: CMS will also strengthen requirements to ensure that states complete inspections of nursing homes in a timely and accurate manner, and maintain a user-friendly website for public viewing.
Additional Quality Measures: CMS will increase both the number and type of quality measures used in Nursing Home Compare.  The first additional measure starting January 2015 in the ratings system will be the extent to which anti-psychotic medications are in use. More measures will be added later, including data on re-hospitalization and rates of returning beneficiaries to home that use Medicare claims as the source of information.
Actions to Improve Quality Home Health Care Received by Medicare Beneficiaries

In conjunction with today’s efforts to improve the quality of care received by Medicare beneficiaries in nursing homes, the Centers for Medicare & Medicaid Services today issued a proposed rule that strengthens patient rights, improves communication, and focuses on patient well-being. These rules are designed to improve the quality of home health services for Medicare beneficiaries.

These updates to home health agency conditions of participation (CoPs) make substantial revisions to the existing CoPs.  They focus on the care needs of patients and will clarify the operational and quality expectations for the approximately 12,500 home health agencies participating in Medicare. There are more than five million people with Medicare and Medicaid benefits who receive home health care services each year.

The proposed regulation, will include these proposed updates:

A clear explanation of patient rights, including a requirement to communicate with patients in a language and manner that they understand, and a requirement that home health agencies must take measures to assure and protect those rights.
An expanded comprehensive patient assessment requirement that focuses on all aspects of patient well-being.

An integrated communication system, increasingly enabled by health information technology, that ensures that patient needs are identified and addressed, care is coordinated among all disciplines, and that there is active, timely, needs-based communication between the home health agency and the physician.
A data-driven, agency-wide quality assessment and performance improvement program that continually evaluates and improves agency care for patients.
An expanded patient care coordination requirement that makes a licensed clinician responsible for all patient care services, such as coordinating referrals and assuring that plans of care meet each patient’s needs at all times.
Comments and feedback are requested to inform final rulemaking in 2015.

IMPACT Act

The President signed the Improving Medicare Post-Acute Care Transformation Act of 2014, bipartisan legislation that puts in place new and streamlined quality measures for nursing homes, home health agencies, and other post-acute care providers participating in Medicare.

The Act will facilitate patients comparing outcomes across different care settings, supporting better choices and better outcomes for patients. In addition, the IMPACT Act funds a key improvement to nursing home oversight, the collection of staffing data. Nursing and other staffing levels are closely correlated with quality in nursing homes and current data collection efforts have produced data of uneven reliability. The IMPACT Act also institutes more routine surveys of hospice providers, ensuring program standards are met for the benefit and safety of patients.

TWO PEOPLE SENTENCED FOR FILING FALSE TAX RETURNS

FROM:  U.S. JUSTICE DEPARTMENT 
JUSTICE NEWS
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Monday, October 6, 2014
Two Michigan Men Sentenced to Prison for Filing False Claims Against Internal Revenue Service

Two Detroit area men were sentenced today in the U.S. District Court for the Eastern District of Michigan for conspiracy and filing $3.4 million in false claims against the Internal Revenue Service (IRS), the Justice Department and IRS announced.

Jason McGuire, 38, of Detroit, was sentenced to serve 63 months in prison to be followed by three years of supervised release and to pay $1.675 million in restitution.  Delvin Davis, 37, of Saint Clair Shores, Michigan, was sentenced to serve 42 months in prison to be followed by three years of supervised release and to pay $1.146 million in restitution.

On Jan. 30, McGuire and Davis were found guilty by a jury in Detroit of conspiracy to file false claims in the form of false individual income tax returns and false trust tax returns.  The defendants were also found guilty of filing or aiding and abetting in the filing of false, fictitious and fraudulent claims; McGuire was found guilty of 18 such counts and Davis was found guilty of five counts.  Witness testimony revealed that the defendants attended the same high school in Detroit and started the scheme in 2008.  Prior to that time, McGuire had worked as a mechanic and Davis had worked as a mortgage broker and operated a credit repair business.

According to court documents and evidence introduced at trial, McGuire and Davis recruited individuals from the Detroit area with whom they had existing, long-standing business and personal relationships to sign fraudulent trust and income tax returns.  McGuire had the taxpayers sign blank trust return forms, and the taxpayers never saw the filled-out forms before they were filed.  McGuire attached bogus forms to the income tax returns.  McGuire included fictitious withholdings in both types of return forms which resulted in the taxpayers receiving large refunds.  The defendants recruited at least nine different taxpayers to participate in the fraudulent scheme.  The IRS received returns requesting more than $3.4 million in false refunds and paid more than $1.5 million in false refunds as a result of the fraudulent scheme.  Several taxpayers testified at trial that they were required to pay fines and interest to the IRS as a result of the false tax returns that the defendants submitted.

This case was investigated by special agents from IRS – Criminal Investigation and prosecuted by Assistant U.S. Attorney Elizabeth Stafford for the Eastern District of Michigan and Trial Attorney Mark McDonald of the Tax Division.

DOJ ANNOUNCES INDICTMENTS IN IMITATION PRESCRIPTION DRUG SMUGGLING CASE

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, October 6, 2014
Three Indicted in Prescription Drug Smuggling Ring

The Department of Justice announced today that three Athens, Texas, residents have been indicted on charges associated with their alleged smuggling of imitation, unapproved, and misbranded prescription drugs from China.

Wanda Hollis, 63, Tom Giddens, 57, and Catherine Nix, 41, were each charged with one felony count of conspiracy to smuggle merchandise into the United States, seven counts of causing the introduction of misbranded drugs into interstate commerce with the intent to defraud or mislead, seven counts of smuggling and one count of tampering with a witness.  Giddens was also charged with two additional counts of tampering and Nix was charged with one additional tampering count.  The defendants were also charged with misdemeanor counts of causing misbranded imitation drugs to be introduced into interstate commerce.  Nix was arrested on October 2 in Athens.  Giddens and Hollis surrendered this morning.

According to the indictment, the defendants conspired to smuggle at least 30 known shipments, totaling approximately 100,000 pills, from China to Texas.  As alleged in the indictment, the shipments contained bogus imitations of Xanax, Valium, sibutramine, Cialis, Viagra and Stilnox, which is marketed in the United States as Ambien.  None of the pills seized and tested were legitimate, and all either contained incorrect active ingredients or were sub-potent.  The defendants also attempted to conceal their smuggling by using shipping labels that concealed the contents of their shipments, including customs declarations falsely describing the contents as “gifts” or “toys” with low declared monetary values, and by using multiple addresses in an effort to reduce the likelihood of seizures by U.S. Customs authorities.  Additionally, the indictment states that the defendants instructed family members to destroy evidence once they became aware that the U.S. Food and Drug Administration (FDA) was investigating them.

“The smuggling and sale of counterfeit prescription drugs puts the public's health and safety at risk,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division.  “Consumers should know that the drugs they are buying are what they purported to be and not misbranded to look like name-brand products that could ultimately do them more harm than good.”

“A key element of FDA’s mission to protect the public’s health is to ensure that safe and effective prescription drugs are properly distributed via the supply chain and dispensed to the ultimate consumer, and that includes ensuring that those prescription drugs contain the treatments that patients expect,” said Acting Director Philip J. Walsky of the FDA’s Office of Criminal Investigations.  “We will continue to pursue and bring to justice those who would put the public’s health at risk by introducing illegal prescription drugs.”

This case was investigated by the FDA’s Office of Criminal Investigations and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.  The case is being prosecuted by Trial Attorney John W.M. Claud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Allen Hurst for the U.S. Attorney’s Office for the Eastern District of Texas.



Charges set forth in an indictment are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.

DARPRA DEMONSTRATES FIVE NEW TECHNOLOGIES UNDER DEVELOPMENT

FROM:  U.S. DEFENSE DEPARTMENT
DARPA Officials Show Hagel Technologies Under Development
American Forces Press Service

WASHINGTON, April 23, 2014 – Defense Advanced Research Projects Agency program personnel demonstrated five technologies under development to Defense Secretary Chuck Hagel in the secretary's conference room yesterday.
DARPA Director Arati Prabhakar provided the secretary with a demonstration of the agency's latest prosthetics technology.

The wounded warrior demonstrating the device was Fred Downs Jr., an old friend of Hagel's who lost an arm in a landmine explosion while fighting in Vietnam. Hagel hugged him and shook his mechanical hand, with Downs joking, "I don't want to hurt you."

"He and I worked together many years ago," said Hagel, who earned two Purple Hearts during his service as an enlisted soldier in Vietnam. "How you doing, Fred? How's your family?"

Downs demonstrated how he controls movements of the arm, which appeared to be partly covered in translucent white plastic, with two accelerometers strapped to his feet. Through a combination of foot movements, he's able to control the elbow, wrist and fingers in a variety of movements, including the “thumbs-up” sign he gave Hagel.

It took only a few hours to learn to control the arm, Downs said.
"It's the first time in 45 years, since Vietnam, I'm able to use my left hand, which was a very emotional time," he said.

Dr. Justin Sanchez, a medical doctor and program manager at DARPA who works with prosthetics and brain-related technology, told Hagel that DARPA's arm is designed to mimic the shape, size and weight of a human arm. It's modular too, so it can replace a lost hand, lower arm or a complete arm.
Hagel said such technology would have a major impact on the lives of injured troops.

"This is transformational," he said. "We've never seen anything like this before."
Next, Sanchez showed Hagel a video of a patient whose brain had been implanted with a sensor at the University of Pittsburgh, allowing her to control an arm with her thoughts.

Matt Johannes, an engineer from the Johns Hopkins University Applied Physics Laboratory, showed Hagel a shiny black hand and arm that responds to brain impulses. The next step is to put sensors in the fingers that can send sensations back to the brain.

"If you don't have line of sight on something you're trying to grab onto, you can use that sensory information to assist with that task," Johannes said.
The tactile feedback system should be operational within a few months, he said.
"People said it would be 50 years before we saw this technology in humans," Sanchez said. "We did it in a few years."

Next, officials gave Hagel an overview of the DARPA Robotic Challenge, a competition to develop a robot for rescue and disaster response that was inspired by the March 2011 Fukushima nuclear incident in Japan.

Virginia Tech University's entrant in the contest, the hulking 6-foot-2-inch Atlas robot developed by Boston Dynamics, stood in the background as Hagel was shown a video of robots walking over uneven ground and carrying things.

Brad Tousley, head of DARPA's Tactical Technology Office, explained to Hagel that Hollywood creates unrealistic expectations of robotic capability. In fact, he said, building human-like robots capable of autonomously doing things such as climbing ladders, opening doors and carrying things requires major feats of engineering and computer science.

Journalists were escorted out before the remaining three technologies could be demonstrated because of classified concerns. A defense official speaking on background told reporters that Hagel was brought up to date on the progress of three other DARPA programs:

-- Plan X, a foundational cyberwarfare program to develop platforms for the Defense Department to plan for, conduct and assess cyberwarfare in a manner similar to kinetic warfare;

-- Persistent close air support, a system to, among other things, link up joint tactical air controllers with close air support aircraft using commercially available tablets; and

-- A long-range anti-ship missile, planned to reduce dependence on intelligence, surveillance and reconnaissance platforms, network links and GPS navigation in electronic warfare environments. Autonomous guidance algorithms should allow the LRASM to use less-precise target cueing data to pinpoint specific targets in the contested domain, the official said. The program also focuses on innovative terminal survivability approaches and precision lethality in the face of advanced countermeasures.

(From a pool report.)



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