FROM: U.S. STATE DEPARTMENT
U.S. Mission to the United Nations: Remarks at the Center for American Progress' Making Progress: 2014 Policy Conference
Samantha Power
U.S. Permanent Representative to the United Nations
Washington, DC
November 19, 2014
AS DELIVERED
Senator Tom Daschle, Moderator: Let me begin the conversation, if I could, by talking about America’s role. There’s a growing debate across the political spectrum, within really both political parties, about what America’s role in the world should be in this day and age; what sort of leadership we should play in foreign affairs. Over the years, especially in the last two decades in particular, we’ve experienced everything from unilateralism to coalitions of the willing to a reliance on our core alliance structure of leading from behind. But there are little consensus about the role of America today and how we should play it, and how best to advance American interests. U.S. leaders face – many U.S. leaders have called for retrenchment, and some have even called for isolation on both the right and the left. So, Ambassador Power, I’d like to start by asking you the question: is it up to America to be the lead actor in the world today? How should we look at that role? Is there a correct model as we look at the circumstances we’re facing worldwide?
Ambassador Power: Thank you, Tom. And thank you everybody for being here, and to CAP for putting on this conference and doing such important work. I mean, you put your finger on a key question for our times. I think that what we see today in the fall of 2014 is American leadership being used on key issues, whether climate, Ebola, ISIL, but whereby we don’t take simple ownership of the issue and decide that we’re going to bear the entire burden alone. We invest our resources, we lead the world, and we bring other coalitions to our side.
So, in the effort against ISIL, in Iraq, in order to support the Iraqi government forces as they try to fend off this monstrous movement, our use of airstrikes. And then we went around the world and said, “Okay, who wants to join on airstrikes? Who wants to join in providing training and equipment to these forces as they reconstitute? Who is going to take care of the humanitarian burden of all the millions of people who’ve been displaced as a result of ISIL’s explosive move across that region?” And now we have a coalition of 60 countries.
Ebola, equally dramatically; President Obama goes before the United Nations in September and says, “Look, here’s what I’m going to do. But if I do this,” and it’s a lot, “it’s not going to suffice.” And if we tackle the problem only in Liberia where the U.S. is deploying more than 2,000 troops and hundreds of CDC and USAID personnel, and aid workers and partnering with Doctors without Borders – but if we just do Liberia, and other countries don’t take the lead in Sierra Leone and Guinea, then our efforts in Liberia are going to be pyrrhic, because people can just cross the border and so forth.
So, you lead by articulating to the American people in the first instance, and to the world why it’s in your interest, and in the collective interest, to act. And then you mobilize other countries to make sure that you’re not bearing these huge burdens alone. And it’s not just even about burden-sharing and resources, which are major issues, but also just the very nature of these kinds of transnational threats, as you all know, are ones where, even if we had all the resources in the world and could bear every burden, you just, you can’t. You know, the foreign fighters in Syria, unless you get other countries to tighten their controls on their borders and prevent people from traveling, the United States, even if it wanted to, couldn’t deal with the foreign terrorist fighter problem alone. And so I think the mobilization of the world around what President Obama said way back when he was a candidate, are common security, common humanity.
Senator Daschle: This conference, as you know, is about making progress, and that applies both domestically as well as in our international efforts in our agenda. We talk at a lot at conferences like this about core progressive values. How would you say core progressive values align with American interests internationally today?
Ambassador Power: Well, I think probably people would define core progressive values in different ways. For me, it would start with regard for human dignity; the dignity of work, the dignity of a fair wage, the dignity to be treated with respect by your neighbors or respect for your own preferences in the way you live your life. And I think President Obama has really urged us to inject concern for human dignity in our policymaking, whether that’s being hugely generous in the face of ethnic violence in South Sudan, or in the face of the horrible displacement out of Syria, or wanting to close Guantanamo, recognizing again that that is – remains even – a recruitment tool and something that terrorist movements use a way of mobilizing their base and so forth.
But I think dignity is one piece of it. And then I think not only looking to make sure that you have domestic legal authority, but also being very conscientious and very dedicated to international norms and international law, while of course always pursuing U.S. interests. So, I think that those: dignity and recognizing that we live in a broad – we live on a planet where our interests also depend on having other people play by the rules, so we are stronger when we lead ourselves by playing by the rules of the road.
Senator Daschle: One of the important roles for the United States historically, and I think especially today, is bringing other countries together in multilateral forums. And there could be no one more sensitized to the need to do that and the importance of doing that, than you at the UN. But whether at the UN or as we saw with the ASEAN and G-20 forums last week, there are multilateral settings that offer opportunities for progress, but can also get bogged down, in part because –
Ambassador Power: I’ve noticed.
Senator Daschle: – of conflicting agendas, in part because you get into just a lot of talkathons that come with the very nature of groups wanting to make points. So how can America balance the importance of working with partners around the world, and the efficiency of our ability to pursue core interests on our own?
Ambassador Power: Well, I get to live a daily talkathon up in New York, so I feel I have a privileged positioned on which to talk. You know, there are a lot of inefficiencies in the international system. Just as within governments, we need to constantly try to streamline and simplify and enhance the interface that citizens have with governments as they regulate, you know, so too in the international system. If you imagine aggregating government habits across 193 governments, imagine what you end up with, right? I mean, that is not ideal. It’s not – if you were starting from scratch in 2014, you’d build a different, a different airplane, probably.
Having said that, if the United Nations didn’t exist, you would definitely build it, because you want a venue to come together. And even those countries with whom we are estranged or not cooperating in visible ways, it’s a channel for communication so you don’t have misunderstanding. It’s a way of pooling resources. You know, it is very, very obvious on the one hand, but also striking to live it where you see that the things that matter most to us, you know, may be very low on the mattering map for other countries. And so too the things that matter the most for them may not be in the top five for us. And so finding – but yet we need them to cooperate with us, let’s say on foreign terrorist fighters, where they think maybe that’s a distant problem compared to, you know, economic development or even climate change, and they need us of course to invest in their economic development and in their dignity, particularly in developing countries.
So we've tried to – I’ve certainly tried to mix it up in New York. And my impatience is the stuff of legend now, insofar as, “How are we still talking about this? I mean, what are you doing?” So, I think you’ve got to inject that spirit. You can’t accept that these institutions need to just be talkathons. We’re trying to do much more brainstorming, you know, much more – trying to bring countries together sort of staring out at a common problem and defining it as such, and then being in a position of, what could we do about it, rather than this sort of positional form of diplomacy that we’ve done, and where there’s certainly a place for that.
The one thing I’d just add finally is it’s tempting to sort of see bilateral dealings as somehow separate from or juxtaposed with the multilateral framework. But the fact of the matter is the way multilateralism works at its best is you start small, and then you expand the circle of consensus and the circle of problem-solving. But ultimately, successful multilateralism will turn also on the extent to which we have maintained, you know, stable and healthy partnerships with different countries around the world. Aggregating those friendships is what allows us to come together. And aggregating the sense of shared destiny and shared interest is what allows us to get a lot of countries to the table around shared threats.
Senator Daschle: So, how does our approach to multilateralism compare or contrast to other great powers, like China or Russia, or even allies like Britain or Japan? Similar or a lot different?
Ambassador Power: That’s an interesting question. I think that – we have embassies in just about every country in the world. And every minute of every day, we have a foreign policy of some kind with that country. And I think we view the multilateral system as a place to advance, whether human rights and fundamental freedoms in the country, or economic prosperity or trade relationships, etc. So, we’re constantly looking to advance our very particular foreign policy objectives in particular countries.
So, for instance yesterday we had very important General Assembly votes on resolutions on the human rights horrors in Syria, those in the DPRK, and those in Iran. And these votes – you know, we treat each of those votes as if it’s a huge priority for the United States. We have our embassies fanning out around the world trying to make sure that countries in the Caribbean or countries in the Middle East are voting a certain way vis-à-vis DPRK, in order to send the strongest possible signal to the regime there that they’re going to be held accountable, particularly in light of the recent commission of inquiry, the horrible commission of inquiry report on the camps and the human rights conditions in DPRK.
That ambition, you know, that range, that ability to draw on those resources, I think, is distinct about the United States. And that belief that it is in our interest to go all out on the DPRK at the same time we go out on Iran at the same time. Most of the time with other countries you’ll see some subset of the larger global agenda prioritized and that kind of effort perhaps being brought to bear, although without the resources and the reach that we have. So, and even countries like China that are taking more and more assertive leadership roles within the UN system, including by increasing in a very helpful development, increasing their contributions to UN peacekeeping in a substantial way, sending doctors and other medical professionals to deal with Ebola. So, you’re seeing them begin to step up. But, still, that – what I just described in terms of campaigning around a discrete issue, whether on economic development, on climate, on human rights in any particular country – you wouldn’t see, again, that same kind of ground game or yet that prioritization of that set of issues, certainly with human rights issues, needless to say.
Senator Daschle: So, as I look at our options, is there a downside to bilateralism, like what we’ve just recently seen with our announcement on climate with China, versus taking the traditional multilateral approach?
Ambassador Power: You know, I think that when we do strike big deals and deepen partnerships in very visible ways, it’s a lot – the relations between countries are a lot like that between individuals. Like there’ll be someone over there saying, “What about me?” Like, “Why wasn't I a part of that?” And I think you see that a little bit here and there in the margins, but compared to the good it does – for instance, if you take the historic agreement, the CAP alone – that past and present CAP leader John Podesta, his leadership in helping negotiate that on the president’s behalf; hugely important agreement. And with China and the United States leading together and early, and constituting the two biggest economies and the two biggest emitters, that puts us in a position to lead the world. And the leverage associated with us doing that together, I think, vastly outweighs any momentary kind of sense of, “Oh, I wish that would’ve been a bigger multilateral framework.” And as I said earlier, that is the way you do multilateralism. You start and get key stakeholders to make agreements, and then you broaden out the circle. And that’s of course what our hope is to do on the climate.
Senator Daschle: So let me ask one more question on multilateral institutional infrastructure before I – I want to give to couple of other issues before we run out of time. A lot of the institutions created from multilateral cooperation were created after World War II. We had a big role to fill. Those institutions really haven’t changed much, whether it’s the UN Security Council, the IMF. To what extent do they reflect today and the world as we see it globally? And to what extent, if it’s not as reflective as they should be, is there a potential for reform as we look at making these institutions perhaps more reflective of the current lay of the land?
Ambassador Power: Well, let me separate a couple of different planes on which one can look at that question. I mean, I think you’ve seen over the life of the Obama administration a real emphasis on the G-20 as a hugely important global forum, not only to deal with economic issues, but as we just saw, the G-20 issued a very strong statement on Ebola. And we would view that group of countries as in the first instance the most likely group of countries to contribute health professionals, money, building materials, etc. in the context of Ebola. So, it’s a convenient proxy for those who should have resources that they’re prepared to invest in dealing with common threats and common challenges.
So, that, I think, shift and that emphasis has occurred over the life of the Obama administration. With the crisis in the Ukraine, of course, the G-7, now, has taken on new importance, particularly with regard again to that set of issues. That’s a very useful forum for that, and for a host of other things. So, again, that venue remains important, but the G-20 is of a different order than it would’ve been back even in 2008. And this was happening with the Bush administration toward the end, as well.
In the United Nations, Security Council reform has been something that many have aspired to, for many, many years, for the obvious reason which you state, which is surely 69 years after the founding of the UN, the dynamics, the power dynamics, the economic dynamics, and so forth in the world, the demographics, everything has changed and surely there should be some modernization. The challenge is that one of the reasons that we would, that one would wish to see an updated set of international institutions is to enhance legitimacy and effectiveness, and to enhance a sense of shared ownership over the entire United Nations, because there’s a sense of alienation by some of the powerful countries that have been doing more than their fair share, like Germany and Japan – you know, tremendous contributors to the UN over many years, but were not part of the regular decision-making body.
But having said that, and with that alienation, and with that aspiration to render it more effective, there is no more divisive issue in the UN membership. And so there just hasn’t been a proposal that has attracted a kind of plurality or a majority because everybody wants – at a moment when things are being revisited, everybody wants in. And so, just as I was describing earlier in the context of bilateral deals, so too this is something where people want UN Security Council reform, but they, again, have very different views as to how you would bring it about.
So, we remain open, you know, and as these debates play themselves out – they’re heating up now because it’s the 70th anniversary approaching. And the question it poses of course rightly being asked. But it’s not clear that there’s a pathway that could gather a critical mass. And, of course, we would remain very attached to our veto, which is a hugely important feature of our leadership within the UN system. So that’s not something we’d be prepared to give up. But on the membership, we certainly see the case.
Senator Daschle: Let me turn to a couple of very specific challenges that you’re very involved with. The first is Ebola. You just came back from Africa a couple of weeks ago.
Ambassador Power: I did. Thank you for giving me a hug earlier.
[Laughter]
Senator Daschle: Yeah, and I’d do it anytime. But I’m curious, as you explored the challenges we face, as you saw firsthand what we’re up against, and the progress or in some cases maybe the lack thereof, how would you characterize our biggest challenge today?
Ambassador Power: Well, we just still don’t have enough. There’s not enough that has been committed. Progress in – whether it’s funds, health workers, beds, as in beds in isolation units, ambulances, fuel. I mean, since again, President Obama went to the UN and stood with the Secretary General and made this appeal and we waged a full-court press around the world to get people to contribute, we have closed, we have narrowed, we say, a very large number of gaps.
But, again, particularly as you get out into the rural areas in the three countries, I mean you still have people who have never heard of Ebola. Our ambassador in Guinea was just out hiking in the countryside away from Conakry, the capital, and just went up to a group of women and said have you heard of Ebola, speaking to them in the local dialect and everything – we have a wonderful ambassador in Guinea. And so, just, social mobilization, basic, again things that money can buy: SIM cards for cellphones, cellphone coverage in parts of the country that doesn’t exist, and how that – and these are the kinds of things you can’t turn on a dime.
So, what is so gratifying is in my own experience in dealing with crises and foreign policy challenges, there’s something very unique about the anti-Ebola effort, in that you can really measure progress. You can – on my trip a couple of weeks ago, four days before I arrived, the rate of safe burial within 24 hours in Freetown, the capital of Sierra Leone, was only 30 percent. The British had come in, they revamped the command of control working with the Sierra Leone military and civilian authorities, and that safe burial rate, just in a four-day period, had gone up to 98 percent within 24 hours, which stands to play a really important role in infection control, because unsafe burial is a huge source of infection. Same in Monrovia, because of the U.S. effort.
The U.S. has deployed these mobile labs around Liberia. We visited one about an hour flight away from Monrovia, about an eight-hour drive in Bong Country, and there are these three Navy microbiologists who had just set up this lab two weeks before we arrived. One of them had decided to become a microbiologist 20 years ago because he read Hot Zone, the Preston book about Ebola. So he can’t believe his fortune that he’s sitting here looking at Ebola under a microscope to test local samples. Before this little three-person unit of microbiologists, contributed by the U.S. Navy, arrived, the testing in that area was taking as much as a week. The samples were being driven on motorcycle, and sometimes getting lost en route to Monrovia. There was only one lab in Monrovia, and everyone in the country had to wait in order to get their test results.
So, just by showing up, that one-week time has now been cut to between three and five hours. Now what does that mean? Tangibly, it means that before, people who were Ebola-positive and Ebola-negative but didn’t know it were cohabitating within Ebola treatment units for a week. That’s not good. That’s not isolation; that’s not what one would seek. Moreover, the beds were full. And now the testing results are coming back, and 70 percent don’t have Ebola; they may have malaria, they may have a cold. If you’re lucky, if there has been social mobilization, people will be coming forward. So, now those beds are being freed up, and you’re starting to see efficiencies.
But back to your original question, I am personally, I think we’ve done a very good job on the hardware, which is the Ebola treatment units, building the facilities where people can be isolated. The software, now, is what is needed: more healthcare workers in the here and now, but also if you look out four weeks or six weeks, that next tranche, who’s going to replace the people in-country today? And this is where us making clear as the American people just how much we value the work that American doctors and nurses are doing as they go over there. So, health workers and the social mobilization, getting the locals to do away with the stigma and the fear that pervades, so that the next time our ambassador goes hiking in the countryside, everyone you meet is telling you about Ebola, rather than again, it being perceived to be foisted upon the countryside by the center, which is a bit of a risk right now.
Senator Daschle: So let me ask you – it may be too early to be able to answer this with any clarity – but to what to what extent are there already lessons learned for the next Ebola, the next H1N1, the next SARS? What can we take from this experience that might help us prepare more proactively for the next one?
Ambassador Power: I think if you look at the funding request, the resource request that President Obama sent up a week or two ago to the Hill and that we are working very constructively with both parties now to refine, I think you see some of those lessons already put in place: making sure that every state has the capability to deal with infectious disease or viruses like this that may be foreign in the first instance, but where you have training protocols that are put in place very quickly. Research into vaccines, you know, investing more in the prevention side of things. In the countries in question, part also of our funding request is to make sure that we don’t invest billions of dollars here in dealing with Ebola, get to the back end of the crisis, and then the Ebola treatment units get dismantled because they’re just tents and bricks, and they’re not themselves sustainable structures, the white vehicles belonging to the international community all get put back on cargo ships. And then what’s left of the health infrastructure of these countries?
The reason that it spread so quickly, in addition to some of the issues related to where the outbreak first occurred, being in a border region and with travel and so forth, but is that the systems were too weak to deal with it – unlike Nigeria, which was able to draw on the expertise acquired in an anti-polio – a polio eradication campaign – a generation ago. That expertise was tapped to deal with the challenge in Nigeria. Nothing like that existed in these three countries. So in addition to the U.S. preparedness, which is very, very important in making sure it’s done at the relevant, with relevant health officials at the state level, really investing not only in these countries’ health infrastructure, by bringing the World Bank and others into that effort, but also looking across the continent. And this is what the President’s global health security agenda, which predated the Ebola crisis, is now, but now has new adherents in the international community because of what’s happened. Hopefully, that’ll be the venue in which some of these changes will take place.
Senator Daschle: We didn’t get to ISIS, we didn't get to Syria, we didn’t get to Iran. There is a whole list of things we didn’t get –
Ambassador Power: Sorry about that.
Senator Daschle: But your answers were terrific, and I just can’t thank you enough for taking time out of what I know is an incredibly busy schedule to be here.
Ambassador Power: My pleasure.
Senator Daschle: And I know I speak for every person in this room in thanking you for the incredible leadership you give us every day. Thank you.
Ambassador Power: Thank you. Thank you so much.
Friday, November 21, 2014
NSF FUNDS SCIENTIST'S RESEARCH ON BLENDING CHEMICAL ENGINEERING WITH MATERIALS STRUCTURE AND PROPERTIES
FROM: NATIONAL SCIENCE FOUNDATION
New technology uses natural wood fibers to reinforce plastic materials
Research offers sustainable solutions that may have strong benefits to building, construction, automobile and aircraft industries
Joshua Otaigbe's research blends chemical engineering with materials structure and properties, most recently in trying to develop new and stronger composites that are sustainable and environmentally friendly.
The longtime National Science Foundation (NSF)-funded scientist, a professor in the University of Southern Mississippi's school of polymers and high performance materials, is collaborating with researchers at Oregon State University on a new technology that uses natural wood fibers to reinforce plastic materials.
If successful, "it could revolutionize the composite industry," especially manufacturing sectors that rely on these materials, such as building, construction, automobiles, and aircraft, he says.
Moreover, "wood fiber is renewable and based on agricultural products, and the composite materials we come up with would biodegrade after their service life without harming the environment," he adds.
Greater use of wood fibers in producing composites also could be a boost to the paper industry by providing an important new use for wood pulp, since "paper is a raw material for our products," he says. "We can extract wood fibers out of paper."
NSF is funding the work through its structural materials and mechanics program of the division of civil, mechanical, and manufacturing innovation. Otaigbe is collaborating with John Nairn, the Richardson Chair in wood science and engineering at Oregon State University; the two researchers are sharing the grant.
Currently, the composite industry combines wood particles--not fibers--with its polymers, "which saves money, but is a less than optimum way of doing it," Otaigbe says. "What we are doing is extracting fibers, which are different from particles. The fiber is a lot stiffer and stronger than the wood particles, and provides the reinforcing capability for the plastic."
Using wood fibers instead of particles in the direct conversion of the polymer building blocks called monomers also allows manufacturers to eliminate the melting stage, which is when the materials are shaped, then later solidified into various products. With fibers in the polymer matrix, "we can shape it without having to melt it," Otaigbe says.
The process under development involves taking the wood fibers, usually within paper, and placing them in a mold, then injecting a "reaction" mixture used to make the polymers.
Scientists then raise the temperature to 150 degrees Celsius--relatively low when compared to traditional melting methods--and the mixture forms a composite "in a matter of minutes," he says. The lower temperatures are important, since wood fibers tend to degrade at temperatures above 190 degrees Celsius.
Otaigbe has long worked on NSF-funded projects that combine polymer materials structure with chemical engineering, and also has been actively involved in university and industry research partnerships to try to solve complicated and multi-disciplinary problems.
"What I'm doing, with industry, is using my background and experience to solve relevant technical problems," he says.
For example, NSF and the Arnold Engineering Co., a U.S. manufacturer of magnets, jointly funded his research into advanced polymer bonded magnets with enhanced magnetic properties for high temperature and aggressive environments.
"Permanent bonded magnets are a $500-million market and are used in consumer products from cars to computers," he says. "But they are made from rare earth metal alloys, which are heavy and difficult to process into shapes. A need exists to develop bonded magnets with higher energy products that can withstand operating temperatures of at least 180 degrees Celsius and higher. One key issue is the identification of suitable magnetic powders and polymer matrices which can perform satisfactorily at the desired higher temperatures."
Otaigbe is the rare researcher who has simultaneously received grants from numerous NSF programs--metals, ceramics, polymers, and also from its engineering section.
He has, for example, conducted research into the feasibility of incorporating functional nanoscale fillers into waterborne polyurethanes to yield new hybrid films with improved performance properties, such as enhanced bioactivity and non-thrombogenicity (non-clot producing in the blood), thermal stability, flame resistance, environmental durability in atomic oxygen, and improved mechanical properties.
"The targeted hybrids, which are different from conventional polymers, polymer nanocomposites and microcomposites, would be useful because many of the intrinsic properties of the [new hybrids] are complementary, and hold great promise for future high-end uses, such as in biomedical devices, especially at cardiovascular interfaces, where other polymers are not useable," he says.
He also has studied ways to generate nano-structured hybrid glass/organic polymer materials via molecular level mixing of the components in the liquid state, creating novel hybrids impossible to produce using conventional methods.
"The self-organized structures, ranging from nanometer to micrometer length scales, are thermodynamically stable because the inorganic phases are mixed at the molecular level, that is, from a single phase, during processing," he says.
"The plastics industry expects a lot from advanced materials, but the relatively few that are commercially available cannot satisfy all applications and expectations," he adds. "In this context, nano-structured hybrid organic-inorganic glass thermoplastic materials potentially demonstrate all the benefits of traditional filled plastic composites, and avoid their disadvantages."
These products could translate into improved energy efficiency for such applications as high-powered laser fusion systems, biomaterials, storage materials for nuclear wastes, and as a component in load-bearing organic-inorganic hybrid composites, he says.
Also, he has worked to create new soy protein plastics derived from renewable agricultural products, designed to biodegrade safely. "One major problem with soy protein plastics is that they dissolve too quickly in water, limiting their potential uses," he says. "The new formulation makes the material more moisture resistant, providing greater control over the biodegradation process."
The research could lead to several new uses for soy protein plastics, for example, in packaging, medical sutures and sporting goods, he says.
Recently, he received an appointment naming him the Distinguished Chair in Polymer Materials Science and Engineering at the University of Lyon, the largest science and engineering university in France, as a recipient of the Fulbright-Tocqueville Distinguished Chair in France, and taught there during the spring semester.
-- Marlene Cimons, National Science Foundation
Investigators
Joshua Otaigbe
John Nairn
Related Institutions/Organizations
University of Southern Mississippi
Iowa State University
Oregon State University
New technology uses natural wood fibers to reinforce plastic materials
Research offers sustainable solutions that may have strong benefits to building, construction, automobile and aircraft industries
Joshua Otaigbe's research blends chemical engineering with materials structure and properties, most recently in trying to develop new and stronger composites that are sustainable and environmentally friendly.
The longtime National Science Foundation (NSF)-funded scientist, a professor in the University of Southern Mississippi's school of polymers and high performance materials, is collaborating with researchers at Oregon State University on a new technology that uses natural wood fibers to reinforce plastic materials.
If successful, "it could revolutionize the composite industry," especially manufacturing sectors that rely on these materials, such as building, construction, automobiles, and aircraft, he says.
Moreover, "wood fiber is renewable and based on agricultural products, and the composite materials we come up with would biodegrade after their service life without harming the environment," he adds.
Greater use of wood fibers in producing composites also could be a boost to the paper industry by providing an important new use for wood pulp, since "paper is a raw material for our products," he says. "We can extract wood fibers out of paper."
NSF is funding the work through its structural materials and mechanics program of the division of civil, mechanical, and manufacturing innovation. Otaigbe is collaborating with John Nairn, the Richardson Chair in wood science and engineering at Oregon State University; the two researchers are sharing the grant.
Currently, the composite industry combines wood particles--not fibers--with its polymers, "which saves money, but is a less than optimum way of doing it," Otaigbe says. "What we are doing is extracting fibers, which are different from particles. The fiber is a lot stiffer and stronger than the wood particles, and provides the reinforcing capability for the plastic."
Using wood fibers instead of particles in the direct conversion of the polymer building blocks called monomers also allows manufacturers to eliminate the melting stage, which is when the materials are shaped, then later solidified into various products. With fibers in the polymer matrix, "we can shape it without having to melt it," Otaigbe says.
The process under development involves taking the wood fibers, usually within paper, and placing them in a mold, then injecting a "reaction" mixture used to make the polymers.
Scientists then raise the temperature to 150 degrees Celsius--relatively low when compared to traditional melting methods--and the mixture forms a composite "in a matter of minutes," he says. The lower temperatures are important, since wood fibers tend to degrade at temperatures above 190 degrees Celsius.
Otaigbe has long worked on NSF-funded projects that combine polymer materials structure with chemical engineering, and also has been actively involved in university and industry research partnerships to try to solve complicated and multi-disciplinary problems.
"What I'm doing, with industry, is using my background and experience to solve relevant technical problems," he says.
For example, NSF and the Arnold Engineering Co., a U.S. manufacturer of magnets, jointly funded his research into advanced polymer bonded magnets with enhanced magnetic properties for high temperature and aggressive environments.
"Permanent bonded magnets are a $500-million market and are used in consumer products from cars to computers," he says. "But they are made from rare earth metal alloys, which are heavy and difficult to process into shapes. A need exists to develop bonded magnets with higher energy products that can withstand operating temperatures of at least 180 degrees Celsius and higher. One key issue is the identification of suitable magnetic powders and polymer matrices which can perform satisfactorily at the desired higher temperatures."
Otaigbe is the rare researcher who has simultaneously received grants from numerous NSF programs--metals, ceramics, polymers, and also from its engineering section.
He has, for example, conducted research into the feasibility of incorporating functional nanoscale fillers into waterborne polyurethanes to yield new hybrid films with improved performance properties, such as enhanced bioactivity and non-thrombogenicity (non-clot producing in the blood), thermal stability, flame resistance, environmental durability in atomic oxygen, and improved mechanical properties.
"The targeted hybrids, which are different from conventional polymers, polymer nanocomposites and microcomposites, would be useful because many of the intrinsic properties of the [new hybrids] are complementary, and hold great promise for future high-end uses, such as in biomedical devices, especially at cardiovascular interfaces, where other polymers are not useable," he says.
He also has studied ways to generate nano-structured hybrid glass/organic polymer materials via molecular level mixing of the components in the liquid state, creating novel hybrids impossible to produce using conventional methods.
"The self-organized structures, ranging from nanometer to micrometer length scales, are thermodynamically stable because the inorganic phases are mixed at the molecular level, that is, from a single phase, during processing," he says.
"The plastics industry expects a lot from advanced materials, but the relatively few that are commercially available cannot satisfy all applications and expectations," he adds. "In this context, nano-structured hybrid organic-inorganic glass thermoplastic materials potentially demonstrate all the benefits of traditional filled plastic composites, and avoid their disadvantages."
These products could translate into improved energy efficiency for such applications as high-powered laser fusion systems, biomaterials, storage materials for nuclear wastes, and as a component in load-bearing organic-inorganic hybrid composites, he says.
Also, he has worked to create new soy protein plastics derived from renewable agricultural products, designed to biodegrade safely. "One major problem with soy protein plastics is that they dissolve too quickly in water, limiting their potential uses," he says. "The new formulation makes the material more moisture resistant, providing greater control over the biodegradation process."
The research could lead to several new uses for soy protein plastics, for example, in packaging, medical sutures and sporting goods, he says.
Recently, he received an appointment naming him the Distinguished Chair in Polymer Materials Science and Engineering at the University of Lyon, the largest science and engineering university in France, as a recipient of the Fulbright-Tocqueville Distinguished Chair in France, and taught there during the spring semester.
-- Marlene Cimons, National Science Foundation
Investigators
Joshua Otaigbe
John Nairn
Related Institutions/Organizations
University of Southern Mississippi
Iowa State University
Oregon State University
A U.S. MARSHALS MOST WANTED MAN'S SKULL FOUND MILES FROM FACILITY HE ESCAPED
FROM: U.S. MARSHALS SERVICE
November 17, 2014 Hector Gomez, Supervisory Deputy U.S. Marshal
Western District of Texas ;
USMS Office of Public Affairs
U.S. Marshals 15 Most Wanted Fugitive’s Skull Found by Family Dog
Fugitive was serving time for multiple counts of child sexual assault
Washington – One of the U.S. Marshals’ 15 Most Wanted fugitives is no longer being sought after his skull was discovered only a few miles from the Texas facility from which he escaped in October 2013.
On Wednesday, after DNA confirmation and next-of-kin notification, U.S. Marshals confirmed that the human skull found in Del Valle, Texas, belonged to fugitive Kevin Patrick Stoeser, who had escaped from the Austin Transitional Center where he was serving the remainder of a 156-month sentence for four counts of child sexual assault and one count of possession of child pornography. He pleaded guilty to these charges in 2003.
On Sept. 8, a Del Valle resident contacted the Austin Police Department and reported that his golden retriever had found a human skull. Authorities and the medical examiner responded, and they determined that the skull was that of a Caucasian man with “short blond, military cut hair and a partial ear.” Local media quickly reported on the discovery.
“The physical description of the human skull and where it was found sparked U.S. Marshals interest in the case, because it was very similar to key facts concerning our fugitive investigation for Kevin Stoeser,” said Deputy U.S. John Clifton, the lead criminal investigator on the case.
That interest paid off. The U.S. Marshals worked with local authorities to have the skull sent to the Department of Forensic and Investigative Genetics at the University of North Texas for DNA testing. On Nov. 5, based on the university’s results, the Travis County medical examiner concluded the skull was Stoeser’s.
“With the untimely death of Stoeser, we can now bring closure to this case,” said Robert Almonte, U.S. Marshal for the Western District of Texas. “On behalf of the United States Marshals Service, we appreciate the assistance of our law enforcement partners throughout the nation who contributed a great deal of time and energy to see this investigation through.”
The Austin Police Department continues to investigate what caused Stoeser’s death.
November 17, 2014 Hector Gomez, Supervisory Deputy U.S. Marshal
Western District of Texas ;
USMS Office of Public Affairs
U.S. Marshals 15 Most Wanted Fugitive’s Skull Found by Family Dog
Fugitive was serving time for multiple counts of child sexual assault
Washington – One of the U.S. Marshals’ 15 Most Wanted fugitives is no longer being sought after his skull was discovered only a few miles from the Texas facility from which he escaped in October 2013.
On Wednesday, after DNA confirmation and next-of-kin notification, U.S. Marshals confirmed that the human skull found in Del Valle, Texas, belonged to fugitive Kevin Patrick Stoeser, who had escaped from the Austin Transitional Center where he was serving the remainder of a 156-month sentence for four counts of child sexual assault and one count of possession of child pornography. He pleaded guilty to these charges in 2003.
On Sept. 8, a Del Valle resident contacted the Austin Police Department and reported that his golden retriever had found a human skull. Authorities and the medical examiner responded, and they determined that the skull was that of a Caucasian man with “short blond, military cut hair and a partial ear.” Local media quickly reported on the discovery.
“The physical description of the human skull and where it was found sparked U.S. Marshals interest in the case, because it was very similar to key facts concerning our fugitive investigation for Kevin Stoeser,” said Deputy U.S. John Clifton, the lead criminal investigator on the case.
That interest paid off. The U.S. Marshals worked with local authorities to have the skull sent to the Department of Forensic and Investigative Genetics at the University of North Texas for DNA testing. On Nov. 5, based on the university’s results, the Travis County medical examiner concluded the skull was Stoeser’s.
“With the untimely death of Stoeser, we can now bring closure to this case,” said Robert Almonte, U.S. Marshal for the Western District of Texas. “On behalf of the United States Marshals Service, we appreciate the assistance of our law enforcement partners throughout the nation who contributed a great deal of time and energy to see this investigation through.”
The Austin Police Department continues to investigate what caused Stoeser’s death.
Thursday, November 20, 2014
ROBERT O. WORK STRESSES ENGAGING BUSINESS FOR CONTINUED U.S. TECHNOLOGICAL EDGE
FROM: U.S. DEFENSE DEPARTMENT
Work Looks to Industry to Maintain Technology Edge
By Amaani Lyle
DoD News, Defense Media Activity
WASHINGTON, Nov. 19, 2014 – In remarks at the Defense One Summit here today, Deputy Secretary of Defense Robert O. Work stressed the importance of engaging industry, services and the Defense Business Board in maintaining the United States’ technological edge in coming years.
Work noted the challenge of balancing resources and requirements against the landscape of what he called an “especially chaotic” drawdown and a persistent continuing resolution over the past five years.
“The temporal aspects of this strategy are going to be much more challenging than in the past,” Work said. “And we’re going to have to do rapid prototyping … or we will continually lose ground.”
Budget Uncertainty Threatens Advances
Speaking on acquisition and technological advances, Work described the Defense Department’s focus across the decades, from the 1950’s nuclear weapons, 1960’s space, 1970’s stealth and microelectronics, 1980’s large-scale systems of systems into current systems that can face asymmetric challenges.
But efforts to increase base-level demonstrations, exercises and prototyping, Work said, can by stymied by budget uncertainties.
Work said that in response to those uncertainties, the department will seek to enhance its effectiveness through the Defense Business Board, which includes former chief executive officers, chief financial officers, chief operating officers and captains of industries.
“They’re now an operational arm directly associated with my deputy chief management officer and they’re going to help us benchmark against civilian business practices,” Work said.
So far, the DoD has been able to annually identify some $26 million in savings from duplication of contracts, administrative costs and other expenses over five years through these internal analyses, he said.
“That gave us great confidence that as we look at the broader defense agencies we were going to find significant savings,” Work said.
Work Looks to Industry to Maintain Technology Edge
By Amaani Lyle
DoD News, Defense Media Activity
WASHINGTON, Nov. 19, 2014 – In remarks at the Defense One Summit here today, Deputy Secretary of Defense Robert O. Work stressed the importance of engaging industry, services and the Defense Business Board in maintaining the United States’ technological edge in coming years.
Work noted the challenge of balancing resources and requirements against the landscape of what he called an “especially chaotic” drawdown and a persistent continuing resolution over the past five years.
“The temporal aspects of this strategy are going to be much more challenging than in the past,” Work said. “And we’re going to have to do rapid prototyping … or we will continually lose ground.”
Budget Uncertainty Threatens Advances
Speaking on acquisition and technological advances, Work described the Defense Department’s focus across the decades, from the 1950’s nuclear weapons, 1960’s space, 1970’s stealth and microelectronics, 1980’s large-scale systems of systems into current systems that can face asymmetric challenges.
But efforts to increase base-level demonstrations, exercises and prototyping, Work said, can by stymied by budget uncertainties.
Work said that in response to those uncertainties, the department will seek to enhance its effectiveness through the Defense Business Board, which includes former chief executive officers, chief financial officers, chief operating officers and captains of industries.
“They’re now an operational arm directly associated with my deputy chief management officer and they’re going to help us benchmark against civilian business practices,” Work said.
So far, the DoD has been able to annually identify some $26 million in savings from duplication of contracts, administrative costs and other expenses over five years through these internal analyses, he said.
“That gave us great confidence that as we look at the broader defense agencies we were going to find significant savings,” Work said.
SEC SUSPENDS TRADING IN EBOLA RELATED COMPANIES
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
11/20/2014 10:30 AM EST
The Securities and Exchange Commission today suspended trading in four companies that claim to be developing products or services in response to the Ebola outbreak, citing a lack of publicly available information about the companies’ operations.
The SEC simultaneously issued an investor alert warning about the potential for fraud in microcap companies purportedly involved in Ebola prevention, testing, or treatment, noting that scam artists often exploit the latest crisis in the news cycle to lure investors into supposedly promising investment opportunities.
The SEC Enforcement Division and its Microcap Fraud Task Force work to proactively identify microcap companies that are publicly disseminating information that appears inadequate or potentially inaccurate. The SEC has authority to issue trading suspensions against such companies. The companies whose trading was suspended today are Patchogue, N.Y.-based Bravo Enterprises Ltd., Monrovia, Calif.-based Immunotech Laboratories Inc., Toronto-based Myriad Interactive Media Inc., and Anaheim, Calif.-based Wholehealth Products Inc.
“We move quickly to protect investors when we see thinly-traded stocks being promoted with questionable information that make them ripe for pump-and-dump schemes,” said Elisha Frank, Co-Chair of the SEC Enforcement Division’s Microcap Fraud Task Force. “Fraudsters are constantly exploiting issues of public concern to tout a penny stock company supposedly in the business of addressing the latest crisis.”
Under the federal securities laws, the SEC can suspend trading in a stock for 10 days and generally prohibit a broker-dealer from soliciting investors to buy or sell the stock again until certain reporting requirements are met. More information about the trading suspension process is available in an SEC investor bulletin on the topic.
According to the SEC’s investor alert, similar to how natural disasters such as Hurricane Katrina and Hurricane Sandy have given rise to investment schemes for companies purportedly involved in cleanup efforts, con artists may perpetrate investment scams related to Ebola prevention or treatment efforts. The alert suggests that investors be wary about promises or guarantees of high investment returns with little or no risk, avoid solicitations with pressure to “buy RIGHT NOW,” and beware of unsolicited investment offers through social media.
11/20/2014 10:30 AM EST
The Securities and Exchange Commission today suspended trading in four companies that claim to be developing products or services in response to the Ebola outbreak, citing a lack of publicly available information about the companies’ operations.
The SEC simultaneously issued an investor alert warning about the potential for fraud in microcap companies purportedly involved in Ebola prevention, testing, or treatment, noting that scam artists often exploit the latest crisis in the news cycle to lure investors into supposedly promising investment opportunities.
The SEC Enforcement Division and its Microcap Fraud Task Force work to proactively identify microcap companies that are publicly disseminating information that appears inadequate or potentially inaccurate. The SEC has authority to issue trading suspensions against such companies. The companies whose trading was suspended today are Patchogue, N.Y.-based Bravo Enterprises Ltd., Monrovia, Calif.-based Immunotech Laboratories Inc., Toronto-based Myriad Interactive Media Inc., and Anaheim, Calif.-based Wholehealth Products Inc.
“We move quickly to protect investors when we see thinly-traded stocks being promoted with questionable information that make them ripe for pump-and-dump schemes,” said Elisha Frank, Co-Chair of the SEC Enforcement Division’s Microcap Fraud Task Force. “Fraudsters are constantly exploiting issues of public concern to tout a penny stock company supposedly in the business of addressing the latest crisis.”
Under the federal securities laws, the SEC can suspend trading in a stock for 10 days and generally prohibit a broker-dealer from soliciting investors to buy or sell the stock again until certain reporting requirements are met. More information about the trading suspension process is available in an SEC investor bulletin on the topic.
According to the SEC’s investor alert, similar to how natural disasters such as Hurricane Katrina and Hurricane Sandy have given rise to investment schemes for companies purportedly involved in cleanup efforts, con artists may perpetrate investment scams related to Ebola prevention or treatment efforts. The alert suggests that investors be wary about promises or guarantees of high investment returns with little or no risk, avoid solicitations with pressure to “buy RIGHT NOW,” and beware of unsolicited investment offers through social media.
PRESIDENT OBAMA'S REMARKS REGARDING REAUTHORIZATION OF CHILD CARE AND DEVELOPMENT BLOCK GRANT PROGRAM
FROM: THE WHITE HOUSE
November 19, 2014
Remarks by the President at Bill Signing
REMARKS BY THE PRESIDENT
AT SIGNING OF REAUTHORIZATION OF
THE CHILD CARE AND DEVELOPMENT BLOCK GRANT PROGRAM
Oval Office
11:58 A.M. EST
THE PRESIDENT: Well, as many of you know, one of my top priorities is making sure that we’ve got affordable, high-quality child care and early childhood education for our young people across the country. Today, I am pleased to sign a bill into law which is going to bring us closer to that goal -- that’s the reauthorization of the Child Care and Development Block Grant program. I want to thank bipartisan members of Congress who are here today.
This law is going to do several important things. It’s going to improve the quality of child care by requiring more training for caregivers and more enrichment for children. It’s going to improve child safety by instituting background checks for staff and better inspection of facilities. It’s going to give working parents a little more peace of mind -- if you receive subsidies to pay for your child care, you know that if you get a raise on your job or you find a job, your kids aren’t automatically losing their care because your status has changed midstream.
I first proposed legislation that accomplished some of these goals back in 2010. When we couldn’t get it through Congress, we began a rulemaking process to try to do this through executive efforts -- and Sylvia Burwell, the HHS Secretary, is here. Because the legislation has now passed, we are actually ending the rulemaking process because we’ve now got a law, and we’re going to be able to focus on implementing the law.
And I want to thank all the legislators here. It’s a good step forward. It shows that Democrats and Republicans, when it comes to making sure our kids are getting the best possible education, are united. And that’s good for our kids and that’s good for our country.
So with that, I’m going to make sure that I sign this properly, using all these pens.
(The bill is signed.)
END
November 19, 2014
Remarks by the President at Bill Signing
REMARKS BY THE PRESIDENT
AT SIGNING OF REAUTHORIZATION OF
THE CHILD CARE AND DEVELOPMENT BLOCK GRANT PROGRAM
Oval Office
11:58 A.M. EST
THE PRESIDENT: Well, as many of you know, one of my top priorities is making sure that we’ve got affordable, high-quality child care and early childhood education for our young people across the country. Today, I am pleased to sign a bill into law which is going to bring us closer to that goal -- that’s the reauthorization of the Child Care and Development Block Grant program. I want to thank bipartisan members of Congress who are here today.
This law is going to do several important things. It’s going to improve the quality of child care by requiring more training for caregivers and more enrichment for children. It’s going to improve child safety by instituting background checks for staff and better inspection of facilities. It’s going to give working parents a little more peace of mind -- if you receive subsidies to pay for your child care, you know that if you get a raise on your job or you find a job, your kids aren’t automatically losing their care because your status has changed midstream.
I first proposed legislation that accomplished some of these goals back in 2010. When we couldn’t get it through Congress, we began a rulemaking process to try to do this through executive efforts -- and Sylvia Burwell, the HHS Secretary, is here. Because the legislation has now passed, we are actually ending the rulemaking process because we’ve now got a law, and we’re going to be able to focus on implementing the law.
And I want to thank all the legislators here. It’s a good step forward. It shows that Democrats and Republicans, when it comes to making sure our kids are getting the best possible education, are united. And that’s good for our kids and that’s good for our country.
So with that, I’m going to make sure that I sign this properly, using all these pens.
(The bill is signed.)
END
FLORIDA HOSPITAL CEO PLEADS GUILTY FOR ROLE IN $67 MILLION MENTAL HEALTH CARE FRAUD CASE
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, November 18, 2014
Miami-Area Hospital Chief Operating Officer Pleads Guilty in $67 Million Mental Health Care Fraud Scheme
The former chief operating officer of a Miami-area hospital pleaded guilty today for his role in a mental health care fraud scheme that resulted in the submission of more than $67 million in fraudulent claims to Medicare by a state-licensed psychiatric hospital located in Hollywood, Florida, that purported to offer both inpatient and outpatient mental health services.
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, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region made the announcement.
Christopher Gabel, 61, of Davie, Florida, the former Chief Operating Officer (COO) of Hollywood Pavilion LLC (HP), pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay and receive health care kickbacks. Gabel was charged in an indictment returned on May 8, 2014.
According to Gabel’s admissions in connection with his guilty plea, between April 2003 and September 2012, HP submitted false and fraudulent claims to Medicare for treatment that was not medically necessary or not provided to patients. As COO during that time, Gabel supervised HP’s staff at both its inpatient and outpatient facilities, where Medicare beneficiaries were admitted to HP regardless of whether they qualified for mental health treatment, and were often admitted before seeing a doctor.
Gabel admitted that HP obtained Medicare beneficiaries from across the country by paying bribes and kickbacks to various patient brokers. Gabel instructed the patient brokers to falsify invoices and marketing reports in an effort to hide, and cover up the true nature of the bribes and kickbacks they were receiving from HP. From 2003 through August 2012, HP billed Medicare approximately $67 million for services that were not properly rendered, for patients that did not qualify for the services being billed, and for claims for patients who were procured through bribes and kickbacks. Medicare reimbursed HP nearly $40 million for those claims.
Karen Kallen-Zury, Daisy Miller, Michele Petrie and Christian Coloma were convicted at trial in June 2013 for their roles in this scheme. Kallen-Zury, HP’s former chief executive officer, was sentenced to 25 years in prison. Miller, the clinical director of HP’s inpatient facility, was sentenced to 15 years in prison; and Petrie, the head of HP’s intensive outpatient program, was sentenced to six years in prison. Coloma, the director of physical therapy for an entity associated with HP, was sentenced to 12 years in prison. Kallen-Zury, Miller and Petrie were ordered to pay nearly $40 million in restitution, and Coloma was ordered to pay more than $20 million in restitution.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Trial Attorneys Nicholas E. Surmacz, Andrew H. Warren and L. Rush Atkinson of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Tuesday, November 18, 2014
Miami-Area Hospital Chief Operating Officer Pleads Guilty in $67 Million Mental Health Care Fraud Scheme
The former chief operating officer of a Miami-area hospital pleaded guilty today for his role in a mental health care fraud scheme that resulted in the submission of more than $67 million in fraudulent claims to Medicare by a state-licensed psychiatric hospital located in Hollywood, Florida, that purported to offer both inpatient and outpatient mental health services.
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, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region made the announcement.
Christopher Gabel, 61, of Davie, Florida, the former Chief Operating Officer (COO) of Hollywood Pavilion LLC (HP), pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay and receive health care kickbacks. Gabel was charged in an indictment returned on May 8, 2014.
According to Gabel’s admissions in connection with his guilty plea, between April 2003 and September 2012, HP submitted false and fraudulent claims to Medicare for treatment that was not medically necessary or not provided to patients. As COO during that time, Gabel supervised HP’s staff at both its inpatient and outpatient facilities, where Medicare beneficiaries were admitted to HP regardless of whether they qualified for mental health treatment, and were often admitted before seeing a doctor.
Gabel admitted that HP obtained Medicare beneficiaries from across the country by paying bribes and kickbacks to various patient brokers. Gabel instructed the patient brokers to falsify invoices and marketing reports in an effort to hide, and cover up the true nature of the bribes and kickbacks they were receiving from HP. From 2003 through August 2012, HP billed Medicare approximately $67 million for services that were not properly rendered, for patients that did not qualify for the services being billed, and for claims for patients who were procured through bribes and kickbacks. Medicare reimbursed HP nearly $40 million for those claims.
Karen Kallen-Zury, Daisy Miller, Michele Petrie and Christian Coloma were convicted at trial in June 2013 for their roles in this scheme. Kallen-Zury, HP’s former chief executive officer, was sentenced to 25 years in prison. Miller, the clinical director of HP’s inpatient facility, was sentenced to 15 years in prison; and Petrie, the head of HP’s intensive outpatient program, was sentenced to six years in prison. Coloma, the director of physical therapy for an entity associated with HP, was sentenced to 12 years in prison. Kallen-Zury, Miller and Petrie were ordered to pay nearly $40 million in restitution, and Coloma was ordered to pay more than $20 million in restitution.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Trial Attorneys Nicholas E. Surmacz, Andrew H. Warren and L. Rush Atkinson of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
CHAIRMAN EXP-IM BANK SIGNS $1 BILLION MEMORANDUM OF UNDERSTANDING SUPPORTING CLEAN ENERGY EXPORTS TO INDIA
FROM: U.S. EXPORT-IMPORT BANK
Ex-Im Bank Chairman Hochberg Signs $1 Billion Memorandum of Understanding to Support U.S. Clean Energy Exports to India
Announces the MOU at the India-US Technology Summit in Noida
Washington, D.C. – Today, Export-Import Bank of the United States (Ex-Im Bank) Chairman Fred P. Hochberg signed a Memorandum of Understanding with Chairman K.S. Popli of the Indian Renewable Energy Development Agency (IREDA) that will explore options for utilizing up to $1 billion to finance the sale of U.S. clean energy exports to India.
Chairman Hochberg is visiting India this week to promote made-in-America exports in support of U.S. jobs.
The availability of Ex-Im Bank financing could translate into support for skilled jobs in the U.S. renewable energy sector while contributing to the Indian government’s recently-announced goal of providing 24-hour electricity to India’s 1.3 billion citizens by 2019, much of it set to come from renewable sources. In fact, Ex-Im Bank has authorized $353.4 million for U.S. renewable energy exports to India since 2009, and Ex-Im Bank was one of the top financiers of projects under the National Solar Mission Phase 1.
“When quality, reliable U.S. goods and services are brought to bear in high-demand markets like India, the benefits are felt in both of our countries,” said Chairman Hochberg. “This Memorandum of Understanding will reinforce the strong ties that America and India already share, create good-paying jobs on both of our shores, and further invigorate America’s clean energy industry while equipping India to meet its own ambitious energy goals.”
After signing the Memorandum, Chairman Hochberg travelled to Noida, India to attend and give remarks at the India-US Technology Summit. During his remarks, Chairman Hochberg highlighted the renewable energy MOU as evidence of the mutual benefits that can be realized by choosing quality U.S. goods.
India ranks as the second-largest destination for U.S. exports supported by Ex-Im Bank financing, and claims more than $7.2 billion of the Bank’s credit exposure through FY 2014. Over the last five years, Ex-Im Bank has authorized an average of $1.4 billion per year to finance U.S. exports to India.
Ex-Im Bank Chairman Hochberg Signs $1 Billion Memorandum of Understanding to Support U.S. Clean Energy Exports to India
Announces the MOU at the India-US Technology Summit in Noida
Washington, D.C. – Today, Export-Import Bank of the United States (Ex-Im Bank) Chairman Fred P. Hochberg signed a Memorandum of Understanding with Chairman K.S. Popli of the Indian Renewable Energy Development Agency (IREDA) that will explore options for utilizing up to $1 billion to finance the sale of U.S. clean energy exports to India.
Chairman Hochberg is visiting India this week to promote made-in-America exports in support of U.S. jobs.
The availability of Ex-Im Bank financing could translate into support for skilled jobs in the U.S. renewable energy sector while contributing to the Indian government’s recently-announced goal of providing 24-hour electricity to India’s 1.3 billion citizens by 2019, much of it set to come from renewable sources. In fact, Ex-Im Bank has authorized $353.4 million for U.S. renewable energy exports to India since 2009, and Ex-Im Bank was one of the top financiers of projects under the National Solar Mission Phase 1.
“When quality, reliable U.S. goods and services are brought to bear in high-demand markets like India, the benefits are felt in both of our countries,” said Chairman Hochberg. “This Memorandum of Understanding will reinforce the strong ties that America and India already share, create good-paying jobs on both of our shores, and further invigorate America’s clean energy industry while equipping India to meet its own ambitious energy goals.”
After signing the Memorandum, Chairman Hochberg travelled to Noida, India to attend and give remarks at the India-US Technology Summit. During his remarks, Chairman Hochberg highlighted the renewable energy MOU as evidence of the mutual benefits that can be realized by choosing quality U.S. goods.
India ranks as the second-largest destination for U.S. exports supported by Ex-Im Bank financing, and claims more than $7.2 billion of the Bank’s credit exposure through FY 2014. Over the last five years, Ex-Im Bank has authorized an average of $1.4 billion per year to finance U.S. exports to India.
COMMITTEE STUDYING VIOLENCE EXPOSURE OF NATIVE AMERICAN AND ALASKA NATIVE CHILDREN MAKES RECOMMENDATIONS
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, November 18, 2014
Committee Studying American Indian and Alaska Native Children Exposed to Violence Makes Recommendations to Justice Department
The Advisory Committee of the Attorney General’s Task Force on American Indian and Alaska Native Children Exposed to Violence released policy recommendations to the Justice Department today.
The report recommends a significant rebuilding of the current services provided to Indian Country, through increased partnering and coordination with tribes, and increased funding for programs to support American Indian and Alaska Native children. Each of the five chapters discusses the Advisory Committee’s findings and recommendations. The report provides the Advisory Committee’s vision for the development of effective, trauma informed, and culturally appropriate programs and services to protect American Indian and Alaska Native children exposed to violence.
“American Indian and Alaska Native children represent the future, and they face unprecedented challenges, including an unacceptable level of exposure to violence, which we know can have lasting and traumatic effects on body and mind,” said Attorney General Eric Holder. “We must understand these impacts well so we can pursue policies that bring meaningful change. That’s why I am deeply grateful for the work of this advisory committee and the continuing mission of this task force.”
Attorney General Eric Holder created the task force in 2013. It is composed of a federal working group that includes U.S. Attorneys and officials from the Interior and Justice Departments and a federal advisory committee of experts on American Indian studies, child health and trauma, victim services and child welfare. Former U.S. Sen. Byron Dorgan and Iroquois composer, singer and child advocate Joanne Shenandoah co-chaired the 13-member committee.
These recommendations are a culmination of the research and information gathered through four public hearings held between December 2013 and June 2014 in Bismarck, North Dakota; Scottsdale, Arizona; Fort Lauderdale, Florida; and Anchorage, Alaska, and five listening sessions in Arizona, Minneapolis and Alaska where over 600 people participated from over 62 Tribes and 15 States from across the nation. More than 70 experts and 60 community members testified at the hearings, addressing domestic and community violence in Indian Country; the pathway from victimization to the juvenile justice system; the roles of juvenile courts, detention facilities and the child welfare system; gang violence; and child sex trafficking.
The Task Force on American Indian and Alaska Native Children Exposed to Violence is part of the Attorney General’s Defending Childhood initiative. The task force is also a component of the Justice Department’s ongoing collaboration with leaders in American Indian and Alaska Native communities to improve public safety.
Tuesday, November 18, 2014
Committee Studying American Indian and Alaska Native Children Exposed to Violence Makes Recommendations to Justice Department
The Advisory Committee of the Attorney General’s Task Force on American Indian and Alaska Native Children Exposed to Violence released policy recommendations to the Justice Department today.
The report recommends a significant rebuilding of the current services provided to Indian Country, through increased partnering and coordination with tribes, and increased funding for programs to support American Indian and Alaska Native children. Each of the five chapters discusses the Advisory Committee’s findings and recommendations. The report provides the Advisory Committee’s vision for the development of effective, trauma informed, and culturally appropriate programs and services to protect American Indian and Alaska Native children exposed to violence.
“American Indian and Alaska Native children represent the future, and they face unprecedented challenges, including an unacceptable level of exposure to violence, which we know can have lasting and traumatic effects on body and mind,” said Attorney General Eric Holder. “We must understand these impacts well so we can pursue policies that bring meaningful change. That’s why I am deeply grateful for the work of this advisory committee and the continuing mission of this task force.”
Attorney General Eric Holder created the task force in 2013. It is composed of a federal working group that includes U.S. Attorneys and officials from the Interior and Justice Departments and a federal advisory committee of experts on American Indian studies, child health and trauma, victim services and child welfare. Former U.S. Sen. Byron Dorgan and Iroquois composer, singer and child advocate Joanne Shenandoah co-chaired the 13-member committee.
These recommendations are a culmination of the research and information gathered through four public hearings held between December 2013 and June 2014 in Bismarck, North Dakota; Scottsdale, Arizona; Fort Lauderdale, Florida; and Anchorage, Alaska, and five listening sessions in Arizona, Minneapolis and Alaska where over 600 people participated from over 62 Tribes and 15 States from across the nation. More than 70 experts and 60 community members testified at the hearings, addressing domestic and community violence in Indian Country; the pathway from victimization to the juvenile justice system; the roles of juvenile courts, detention facilities and the child welfare system; gang violence; and child sex trafficking.
The Task Force on American Indian and Alaska Native Children Exposed to Violence is part of the Attorney General’s Defending Childhood initiative. The task force is also a component of the Justice Department’s ongoing collaboration with leaders in American Indian and Alaska Native communities to improve public safety.
SEC CHARGES 3 STOCK PROMOTERS IN ALLEGED PUMP-AND-DUMP SCHEME
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission charged three penny stock promoters with conducting pump-and-dump schemes involving stocks they were touting in their supposedly independent newsletters.
The SEC alleges that Anthony Thompson, Jay Fung, and Eric Van Nguyen worked in coordinated fashion to gain control of a large portion of shares in the stock of microcap companies and then hyped those stocks in newsletters they distributed to prospective investors. After creating demand for the stock and increasing the value, they sold their holdings at the higher prices and earned significant profits. Once they stopped their promotional efforts, the demand for the stocks subsided and the prices dropped, leaving investors who had purchased the promoters’ shares with significant losses.
According to the SEC’s complaint filed in federal court in Manhattan, the newsletters published by Thompson, Fung, and Van Nguyen misleadingly stated that they “may” or “might” sell shares they owned when in reality their intentions always were to sell the stocks they were promoting. In fact, in some instances they already were selling the stocks to which they were saying “may” or “might” sell. They also failed to fully disclose in their newsletters the amounts of compensation they were receiving for promoting the stocks, cloaking the fact that they were coordinating their promotion of the penny stocks to deliberately increase the prices and dump their own shares.
“Investors should be very wary of penny stock promotions like these, which promise quick and vast riches to those who are purportedly lucky enough to invest,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office. “In this case, the promoters violated a specific legal requirement that they accurately disclose all compensation they were receiving for promoting the stock and the fact that they were simultaneously selling the stock while urging the investing public to buy it.”
According to the SEC’s complaint, the three promoters conducted five separate schemes that resulted in more than $10 million in ill-gotten gains. The penny stocks they manipulated were Blast Applications Inc., Smart Holdings Inc., Blue Gem Enterprise Inc., Lyric Jeans Inc., and Mass Hysteria Entertainment Company Inc. Thompson, who lives in Bethesda, Md., distributed several electronic penny stock promotion newsletters with such names as FreeInvestmentReport.com and OxofWallStreet.com. Fung, who resides in Delray Beach, Fla., distributed his newsletters at such websites as PennyPic.com, and Van Nguyen was typically based in Canada and distributed electronic penny stock promotion newsletters on such websites as UnrealStocks.com and InsanePicks.com.
“Thompson, Fung, and Van Nguyen repeatedly staged coordinated promotional campaigns to manipulate stock prices and score their own paydays while defrauding investors,” said Sanjay Wadhwa, Senior Associate Director for Enforcement in the SEC’s New York Regional Office.
The SEC’s complaint names two relief defendants for the purposes of recovering money in their possession that resulted from the schemes. Thompson’s wife Kendall Thompson received $200,000 in proceeds from one of the stock manipulation schemes. John Babikian, who operated a penny stock promotion business primarily from a website named AwesomePennyStocks.com, received $1 million as a result of one of the schemes. In a separate SEC case involving a different scheme, a court ordered $3.73 million in sanctions against Babikian.
The SEC’s complaint charges Thompson, Fung, and Van Nguyen with violating the antifraud and anti-touting provisions of the federal securities laws and related rules. The SEC is seeking disgorgement of ill-gotten gains from the schemes plus prejudgment interest and penalties as well as permanent injunctions against further violations of the securities laws.
Thompson and Fung also were named in a separate SEC case for their roles in a Florida-based scheme in which they promoted a penny stock in their newsletters without adequately disclosing they were selling their shares in the same stock and receiving compensation for their promotional efforts. A court issued a final judgment requiring them to pay more than $1 million combined.
The SEC’s investigation was conducted by Peter Pizzani, Timothy Nealon, Michael Osnato, and Thomas P. Smith Jr. of the SEC’s New York Regional Office, and the case was supervised by Mr. Wadhwa. The SEC’s litigation will be led by Howard A. Fischer. The SEC appreciates the assistance of the Manhattan District Attorney’s Office and the Financial Industry Regulatory Authority.
The Securities and Exchange Commission charged three penny stock promoters with conducting pump-and-dump schemes involving stocks they were touting in their supposedly independent newsletters.
The SEC alleges that Anthony Thompson, Jay Fung, and Eric Van Nguyen worked in coordinated fashion to gain control of a large portion of shares in the stock of microcap companies and then hyped those stocks in newsletters they distributed to prospective investors. After creating demand for the stock and increasing the value, they sold their holdings at the higher prices and earned significant profits. Once they stopped their promotional efforts, the demand for the stocks subsided and the prices dropped, leaving investors who had purchased the promoters’ shares with significant losses.
According to the SEC’s complaint filed in federal court in Manhattan, the newsletters published by Thompson, Fung, and Van Nguyen misleadingly stated that they “may” or “might” sell shares they owned when in reality their intentions always were to sell the stocks they were promoting. In fact, in some instances they already were selling the stocks to which they were saying “may” or “might” sell. They also failed to fully disclose in their newsletters the amounts of compensation they were receiving for promoting the stocks, cloaking the fact that they were coordinating their promotion of the penny stocks to deliberately increase the prices and dump their own shares.
“Investors should be very wary of penny stock promotions like these, which promise quick and vast riches to those who are purportedly lucky enough to invest,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office. “In this case, the promoters violated a specific legal requirement that they accurately disclose all compensation they were receiving for promoting the stock and the fact that they were simultaneously selling the stock while urging the investing public to buy it.”
According to the SEC’s complaint, the three promoters conducted five separate schemes that resulted in more than $10 million in ill-gotten gains. The penny stocks they manipulated were Blast Applications Inc., Smart Holdings Inc., Blue Gem Enterprise Inc., Lyric Jeans Inc., and Mass Hysteria Entertainment Company Inc. Thompson, who lives in Bethesda, Md., distributed several electronic penny stock promotion newsletters with such names as FreeInvestmentReport.com and OxofWallStreet.com. Fung, who resides in Delray Beach, Fla., distributed his newsletters at such websites as PennyPic.com, and Van Nguyen was typically based in Canada and distributed electronic penny stock promotion newsletters on such websites as UnrealStocks.com and InsanePicks.com.
“Thompson, Fung, and Van Nguyen repeatedly staged coordinated promotional campaigns to manipulate stock prices and score their own paydays while defrauding investors,” said Sanjay Wadhwa, Senior Associate Director for Enforcement in the SEC’s New York Regional Office.
The SEC’s complaint names two relief defendants for the purposes of recovering money in their possession that resulted from the schemes. Thompson’s wife Kendall Thompson received $200,000 in proceeds from one of the stock manipulation schemes. John Babikian, who operated a penny stock promotion business primarily from a website named AwesomePennyStocks.com, received $1 million as a result of one of the schemes. In a separate SEC case involving a different scheme, a court ordered $3.73 million in sanctions against Babikian.
The SEC’s complaint charges Thompson, Fung, and Van Nguyen with violating the antifraud and anti-touting provisions of the federal securities laws and related rules. The SEC is seeking disgorgement of ill-gotten gains from the schemes plus prejudgment interest and penalties as well as permanent injunctions against further violations of the securities laws.
Thompson and Fung also were named in a separate SEC case for their roles in a Florida-based scheme in which they promoted a penny stock in their newsletters without adequately disclosing they were selling their shares in the same stock and receiving compensation for their promotional efforts. A court issued a final judgment requiring them to pay more than $1 million combined.
The SEC’s investigation was conducted by Peter Pizzani, Timothy Nealon, Michael Osnato, and Thomas P. Smith Jr. of the SEC’s New York Regional Office, and the case was supervised by Mr. Wadhwa. The SEC’s litigation will be led by Howard A. Fischer. The SEC appreciates the assistance of the Manhattan District Attorney’s Office and the Financial Industry Regulatory Authority.
Wednesday, November 19, 2014
U.S. CONGRATULATES PEOPLE OF MONACO ON THEIR NATIONAL DAY
FROM: U.S. STATE DEPARTMENT
Statement on the Occasion of Monaco's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
November 18, 2014
On behalf of President Obama and the people of the United States, I congratulate the people of Monaco as you celebrate your 158th National Day, la Fête du Prince, on November 19.
The United States and Monaco have enjoyed a long and productive relationship, made possible by the person-to-person bonds that unite the American and Monégasque people.
I am particularly grateful for Monaco’s participation in the “Our Ocean Conference” on June 16, and for His Serene Highness Prince Albert II’s keynote remarks. Prince Albert is a leading voice in the global effort to protect our environment and stop the march of climate change. I commend all of Monaco for your unwavering commitment to environmental issues.
We also look forward to continuing to work with you on other vital issues such as marine pollution, women and children’s rights, and education.
On this special occasion, I send best wishes for peace and prosperity in the year ahead.
Statement on the Occasion of Monaco's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
November 18, 2014
On behalf of President Obama and the people of the United States, I congratulate the people of Monaco as you celebrate your 158th National Day, la Fête du Prince, on November 19.
The United States and Monaco have enjoyed a long and productive relationship, made possible by the person-to-person bonds that unite the American and Monégasque people.
I am particularly grateful for Monaco’s participation in the “Our Ocean Conference” on June 16, and for His Serene Highness Prince Albert II’s keynote remarks. Prince Albert is a leading voice in the global effort to protect our environment and stop the march of climate change. I commend all of Monaco for your unwavering commitment to environmental issues.
We also look forward to continuing to work with you on other vital issues such as marine pollution, women and children’s rights, and education.
On this special occasion, I send best wishes for peace and prosperity in the year ahead.
U.S. CONGRATULATES PEOPLE OF LATVIA ON THEIR INDEPENDENCE DAY
FROM: U.S. STATE DEPARTMENT
Statement on the Occasion of Latvia's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
November 17, 2014
On behalf of President Obama and the people of the United States, I congratulate the people of Latvia on the 96th anniversary of your independence on November 18.
Earlier this year, the United states joined with you to honor the 25th anniversary of the Baltic Way. We remembered watching in awe as millions of Latvians, Estonians, and Lithuanians linked arms and formed a human chain hundreds of miles long -- connecting Riga, Tallinn, and Vilnius. It was an inspiring act of humanity, one that gave hope to millions of people living under the Iron Curtain.
Today, your unbreakable spirit, determination, and entrepreneurial character are the foundations of your success. You are an example for people around the world who want to be free.
As NATO Allies, the United States remains committed to Latvia's security. We are proud to work closely with you to advance issues including energy security, the Transatlantic Trade and Investment Partnership, and stopping human trafficking.
We look forward to deepening our Transatlantic partnership as Latvia prepares to take over the rotating Presidency of the Council of the European Union this January.
As you celebrate this day, please know that the United States will always stand with you as a faithful friend and ally.
Statement on the Occasion of Latvia's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
November 17, 2014
On behalf of President Obama and the people of the United States, I congratulate the people of Latvia on the 96th anniversary of your independence on November 18.
Earlier this year, the United states joined with you to honor the 25th anniversary of the Baltic Way. We remembered watching in awe as millions of Latvians, Estonians, and Lithuanians linked arms and formed a human chain hundreds of miles long -- connecting Riga, Tallinn, and Vilnius. It was an inspiring act of humanity, one that gave hope to millions of people living under the Iron Curtain.
Today, your unbreakable spirit, determination, and entrepreneurial character are the foundations of your success. You are an example for people around the world who want to be free.
As NATO Allies, the United States remains committed to Latvia's security. We are proud to work closely with you to advance issues including energy security, the Transatlantic Trade and Investment Partnership, and stopping human trafficking.
We look forward to deepening our Transatlantic partnership as Latvia prepares to take over the rotating Presidency of the Council of the European Union this January.
As you celebrate this day, please know that the United States will always stand with you as a faithful friend and ally.
SECRETARY HAGEL SAYS RUSSIA'S ACTIONS "DANGEROUS AND IRRESPONSIBLE"
Right: Defense Secretary Chuck Hagel talks to U.S. Marines assigned to the 2nd Marine Expeditionary Force (Forward) on Camp LeJeune, N.C., Nov. 18. 2014. DoD Photo by U.S. Marine Corps Sgt. Cassandra Flowers
Secretary: Russia’s Actions ‘Dangerous And Irresponsible’
By Nick Simeone
DoD News, Defense Media Activity
WASHINGTON, Nov. 18, 2014 – Defense Secretary Chuck Hagel today called Russia’s actions in Ukraine “dangerous and irresponsible” and said the tensions provoked by Moscow have probably done more to unify NATO than anything else in years.
“It has brought the world together in a way where they are isolating themselves by their actions,” Hagel said of Russia, as he took questions from Marines during a visit to North Carolina’s Camp Lejeune.
‘Very Dangerous’ Actions
One service member asked the defense secretary if he envisioned the United States becoming more involved in the Russia-Ukraine conflict. Russia’s actions toward Ukraine, as well as stepped-up Russian military air flights over European airspace and plans for similar flights over the Gulf of Mexico are “very dangerous,” Hagel said.
“The violations of sovereignty and international law that the Russians have perpetuated continue to require responses,” the defense secretary said. The United States is working with NATO “in shifting our entire rotational rapid deployment focus,” he added.
U.S. European Command chief Air Force Gen. Philip M. Breedlove , who is also NATO’s supreme allied commander for Europe, has said Russian military equipment continues to flow across the border into Ukraine, something Russia denies.
CANADIAN CEO EXTRADITED IN CASE INVOLVING NEW JERSEY SUPERFUND SITE
FROM: U.S. JUSTICE DEPARTMENT
Monday, November 17, 2014
Canadian Executive Extradited on Major Fraud Charges Involving a New Jersey Environmental Protection Agency Superfund Site
John Bennett, a Canadian national, was extradited Friday from Canada on a charge of participating in a conspiracy to pay kickbacks and commit fraud at the U.S. Environmental Protection Agency (EPA)-designated Superfund site Federal Creosote, located in Manville, New Jersey. He was also charged with a related count for major fraud against the United States related to contracts obtained at the Federal Creosote site, the Department of Justice announced today.
Bennett was the former Chief Executive Officer with Bennett Environmental Inc., a Canadian-based company that treated and disposed of contaminated soil. According to a felony indictment filed in the U.S. District Court for the District of New Jersey on Aug. 31, 2009 Bennett carried out the conspiracy by providing kickbacks to Gordon McDonald, the project manager at the Federal Creosote site, in order to influence the award of sub-contracts at the site and inflate the prices charged to the EPA by the prime contractor. The kickbacks were in the form of money transferred by wire to a co-conspirator’s shell company, lavish cruises for senior officials of the prime contractor, and various entertainment tickets. The department said the conspiracy began at least as early as December 2001 and continued until approximately August 2004.
The clean-up at Federal Creosote is partly funded by the EPA. Under an interagency agreement between the EPA and the Army Corps of Engineers, prime contractors oversaw the removal, treatment and disposal of contaminated soil as well as other operations at the Federal Creosote site.
Bennett arrived in the District of New Jersey, in Newark, on Nov. 14, 2014 and made his initial appearance today in the U.S. District Court for the District of New Jersey in Newark.
“The defendant is charged with thwarting the government’s competitive contracting practices,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division. “This extradition demonstrates our resolve to pursue those who undermine competition. And it is yet another example of our longstanding cooperation with our enforcement colleagues in Canada’s Department of Justice, which helps ensure that those who subvert competition in the United States and elsewhere are brought to justice.”
The fraud conspiracy that Bennett is charged with carries a maximum penalty of five years in prison and a $250,000 fine. The major fraud against the United States charge carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
As a result of the department’s investigation, three companies, including Bennett Environmental Inc., and eight individuals have pleaded guilty. Bennett’s co-conspirator, Gordon McDonald, was convicted on Sept. 30, 2013, on 10 counts, including the two charges pending against Bennett. McDonald was sentenced on March 4, 2014 to a 14-year term of imprisonment.
The investigation was conducted by the Antitrust Division’s New York Field Office, the EPA Office of Inspector General and the Internal Revenue Service Criminal Investigation with assistance from the Antitrust Division’s Foreign Commerce Section and the Criminal Division’s Office of International Affairs.
Monday, November 17, 2014
Canadian Executive Extradited on Major Fraud Charges Involving a New Jersey Environmental Protection Agency Superfund Site
John Bennett, a Canadian national, was extradited Friday from Canada on a charge of participating in a conspiracy to pay kickbacks and commit fraud at the U.S. Environmental Protection Agency (EPA)-designated Superfund site Federal Creosote, located in Manville, New Jersey. He was also charged with a related count for major fraud against the United States related to contracts obtained at the Federal Creosote site, the Department of Justice announced today.
Bennett was the former Chief Executive Officer with Bennett Environmental Inc., a Canadian-based company that treated and disposed of contaminated soil. According to a felony indictment filed in the U.S. District Court for the District of New Jersey on Aug. 31, 2009 Bennett carried out the conspiracy by providing kickbacks to Gordon McDonald, the project manager at the Federal Creosote site, in order to influence the award of sub-contracts at the site and inflate the prices charged to the EPA by the prime contractor. The kickbacks were in the form of money transferred by wire to a co-conspirator’s shell company, lavish cruises for senior officials of the prime contractor, and various entertainment tickets. The department said the conspiracy began at least as early as December 2001 and continued until approximately August 2004.
The clean-up at Federal Creosote is partly funded by the EPA. Under an interagency agreement between the EPA and the Army Corps of Engineers, prime contractors oversaw the removal, treatment and disposal of contaminated soil as well as other operations at the Federal Creosote site.
Bennett arrived in the District of New Jersey, in Newark, on Nov. 14, 2014 and made his initial appearance today in the U.S. District Court for the District of New Jersey in Newark.
“The defendant is charged with thwarting the government’s competitive contracting practices,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division. “This extradition demonstrates our resolve to pursue those who undermine competition. And it is yet another example of our longstanding cooperation with our enforcement colleagues in Canada’s Department of Justice, which helps ensure that those who subvert competition in the United States and elsewhere are brought to justice.”
The fraud conspiracy that Bennett is charged with carries a maximum penalty of five years in prison and a $250,000 fine. The major fraud against the United States charge carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
As a result of the department’s investigation, three companies, including Bennett Environmental Inc., and eight individuals have pleaded guilty. Bennett’s co-conspirator, Gordon McDonald, was convicted on Sept. 30, 2013, on 10 counts, including the two charges pending against Bennett. McDonald was sentenced on March 4, 2014 to a 14-year term of imprisonment.
The investigation was conducted by the Antitrust Division’s New York Field Office, the EPA Office of Inspector General and the Internal Revenue Service Criminal Investigation with assistance from the Antitrust Division’s Foreign Commerce Section and the Criminal Division’s Office of International Affairs.
EXPORT-IMPORT BANK CHAIRMAN PROMOTES U.S. EXPORTS TO INDIA
FROM: U.S. EXPORT-IMPORT BANK
Ex-Im Bank Chairman Hochberg Visits India to Promote Made-in-America Exports
Washington, D.C. – Export-Import Bank of the U.S. (Ex-Im Bank) Chairman Fred P. Hochberg is visiting India this week to promote made-in-America exports in support of U.S. jobs.
“The U.S. and India share complementary aspirations when it comes to our economic future,” said Chairman Hochberg. “When quality American goods and services are deployed to buyers in India, their nation benefits from increased capacity and a reliable foundation for long-term economic growth—and the U.S. benefits by creating new jobs back home.”
Today, Chairman Hochberg delivered comments at a roundtable hosted by the U.S.-India Business Council, where he discussed energy growth, especially when it comes to the renewable energy sector, and infrastructure expansion in India and what role U.S. companies can play in both. He also addressed similar subjects at the Federation of Indian Chambers of Commerce and Industry later in the day.
In addition, Chairman Hochberg held a lunch with Indian businesswomen, to learn more about the challenges and opportunities they have in starting and growing a business in the country.
Throughout his trip, Chairman Hochberg has also taken the opportunity to highlight how Ex-Im Bank’s financing tools have enabled American businesses both large and small to export their products to India.
Some examples include:
Polyguard, of Ennis, Texas, employs 120 people and manufactures corrosion-preventing and waterproof linings for industrial processes and pipelines. The company utilizes Ex-Im trade credit insurance and is exporting to 34 countries. Since making use of Ex-Im insurance, the company’s export sales have increased by more than 230 percent.
Preferred Popcorn of Chapman, Nebraska is a small-business vendor that exports popcorn, concessions supplies, and coconut oil to India and other international markets. Started in 1998, the company currently employs 40 people in Nebraska, Indiana, Illinois, Ohio, and Kentucky. Since its founding, the company has relied upon Ex-Im Bank products and now fills orders in 60 countries around the globe. As a consistent policy holder of Ex-Im Bank export credit insurance, Preferred Popcorn has watched its sales mount to $43 million, 50 percent of which are export-related. Moreover, Ex-Im Bank support has translated into approximately 25 new jobs.
Tomorrow, Chairman Hochberg will attend and give keynote remarks at the India-U.S. Technology Summit. The Summit will be an opportunity for businesses, research institutions and government agencies from both countries to exchange ideas and forge new partnerships to increase trade and investment in the knowledge sector. Chairman Hochberg’s remarks will focus on the mutual benefits that can be realized by choosing quality U.S. goods and American innovation.
Ex-Im Bank Chairman Hochberg Visits India to Promote Made-in-America Exports
Washington, D.C. – Export-Import Bank of the U.S. (Ex-Im Bank) Chairman Fred P. Hochberg is visiting India this week to promote made-in-America exports in support of U.S. jobs.
“The U.S. and India share complementary aspirations when it comes to our economic future,” said Chairman Hochberg. “When quality American goods and services are deployed to buyers in India, their nation benefits from increased capacity and a reliable foundation for long-term economic growth—and the U.S. benefits by creating new jobs back home.”
Today, Chairman Hochberg delivered comments at a roundtable hosted by the U.S.-India Business Council, where he discussed energy growth, especially when it comes to the renewable energy sector, and infrastructure expansion in India and what role U.S. companies can play in both. He also addressed similar subjects at the Federation of Indian Chambers of Commerce and Industry later in the day.
In addition, Chairman Hochberg held a lunch with Indian businesswomen, to learn more about the challenges and opportunities they have in starting and growing a business in the country.
Throughout his trip, Chairman Hochberg has also taken the opportunity to highlight how Ex-Im Bank’s financing tools have enabled American businesses both large and small to export their products to India.
Some examples include:
Polyguard, of Ennis, Texas, employs 120 people and manufactures corrosion-preventing and waterproof linings for industrial processes and pipelines. The company utilizes Ex-Im trade credit insurance and is exporting to 34 countries. Since making use of Ex-Im insurance, the company’s export sales have increased by more than 230 percent.
Preferred Popcorn of Chapman, Nebraska is a small-business vendor that exports popcorn, concessions supplies, and coconut oil to India and other international markets. Started in 1998, the company currently employs 40 people in Nebraska, Indiana, Illinois, Ohio, and Kentucky. Since its founding, the company has relied upon Ex-Im Bank products and now fills orders in 60 countries around the globe. As a consistent policy holder of Ex-Im Bank export credit insurance, Preferred Popcorn has watched its sales mount to $43 million, 50 percent of which are export-related. Moreover, Ex-Im Bank support has translated into approximately 25 new jobs.
Tomorrow, Chairman Hochberg will attend and give keynote remarks at the India-U.S. Technology Summit. The Summit will be an opportunity for businesses, research institutions and government agencies from both countries to exchange ideas and forge new partnerships to increase trade and investment in the knowledge sector. Chairman Hochberg’s remarks will focus on the mutual benefits that can be realized by choosing quality U.S. goods and American innovation.
SEC SANCTIONS TWO FORMER DEFENSE CONTRACTOR EMPLOYEES FOR FOREIGN CORRUPT PRACTICES ACT VIOLATIONS
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
November 17, 2014
The Securities and Exchange Commission sanctioned two former employees in the Dubai office of a U.S.-based defense contractor for violating the Foreign Corrupt Practices Act (FCPA) by taking government officials in Saudi Arabia on a “world tour” to help secure business for the company. The two employees later falsified records in an attempt to hide their misconduct.
Stephen Timms and Yasser Ramahi, who worked in sales at FLIR Systems Inc., agreed to settle the SEC’s charges and pay financial penalties. The SEC’s investigation is continuing.
“This case shows we will pursue employees of public companies who think it is acceptable to buy foreign officials’ loyalty with lavish gifts and travel,” said Andrew J. Ceresney, Director of the SEC Enforcement Division. “By making illegal payments and causing them to be recorded improperly, employees expose not only their firms but also themselves to an enforcement action.”
FLIR is headquartered in Oregon and produces thermal imaging, night vision, and infrared cameras and sensor systems. According to the SEC’s order instituting a settled administrative proceeding, FLIR entered into a multi-million dollar contract to provide thermal binoculars to the Saudi government in November 2008. Timms and Ramahi were the primary sales employees responsible for the contract, and also were involved in negotiations to sell FLIR’s security cameras to the same government officials. At the time, Timms was the head of FLIR’s Middle East office in Dubai and Ramahi reported to him.
The SEC’s order finds that Timms and Ramahi traveled to Saudi Arabia in March 2009 and provided five officials with expensive luxury watches during meetings to discuss several business opportunities. Timms and Ramahi believed these officials were important to sales of both the binoculars and the security cameras. A few months later, they arranged for key officials, including two who received watches, to embark on what Timms referred to as a “world tour” of personal travel before and after they visited FLIR’s Boston facilities for a factory equipment inspection that was a key condition to fulfillment of the contract. The officials traveled for 20 nights with stops in Casablanca, Paris, Dubai, Beirut, and New York City. There was no business purpose for the stops outside of Boston, and the airfare and hotel accommodations were paid for by FLIR. Prior to providing the gifts and travel to the Saudi Arabian officials, Ramahi and Timms each had taken FCPA training at the company that specifically identified luxury watches and side trips as prohibited gifts.
According to the SEC’s order, when FLIR’s finance department flagged the expense reimbursement request for the watches during an unrelated review of expenses in the Dubai office and questioned the $7,000 cost, Timms and Ramahi obtained a second, fabricated invoice showing a cost of 7,000 Saudi Riyal (approximately $1,900 in U.S. dollars) instead of the true cost of $7,000 in U.S. dollars. They directed FLIR’s local third-party agent to provide false information to the company to back up their story that the original submission was merely a mistake. Ramahi and Timms also falsely claimed that FLIR’s payment for the world tour had been a billing mistake by FLIR’s travel agent, and again used false documentation and FLIR’s third-party agent to bolster their cover-up efforts.
Timms and Ramahi are U.S. citizens who reside in Thailand and the United Arab Emirates respectively. The SEC’s order finds that they violated the anti-bribery provisions of Section 30A of the Securities Exchange Act of 1934 and the internal controls and false records provisions of Section 13(b)(5) and Rule 13b2-1 of the Exchange Act. The SEC’s order further finds that Timms and Ramahi caused FLIR’s violations of the books and records provisions of Section 13(b)(2)(A) of the Exchange Act. Without admitting or denying the findings, Timms and Ramahi consented to the entry of the order and agreed to pay financial penalties of $50,000 and $20,000 respectively.
The SEC’s investigation is being conducted by FCPA Unit members Cameron P. Hoffman and Tracy L. Davis in the San Francisco office. The SEC appreciates the assistance of the Justice Department’s Fraud Section, the U.S. Attorney’s Office for the District of Massachusetts, the Federal Bureau of Investigation, and the United Arab Emirates Securities and Commodities Authority.
November 17, 2014
The Securities and Exchange Commission sanctioned two former employees in the Dubai office of a U.S.-based defense contractor for violating the Foreign Corrupt Practices Act (FCPA) by taking government officials in Saudi Arabia on a “world tour” to help secure business for the company. The two employees later falsified records in an attempt to hide their misconduct.
Stephen Timms and Yasser Ramahi, who worked in sales at FLIR Systems Inc., agreed to settle the SEC’s charges and pay financial penalties. The SEC’s investigation is continuing.
“This case shows we will pursue employees of public companies who think it is acceptable to buy foreign officials’ loyalty with lavish gifts and travel,” said Andrew J. Ceresney, Director of the SEC Enforcement Division. “By making illegal payments and causing them to be recorded improperly, employees expose not only their firms but also themselves to an enforcement action.”
FLIR is headquartered in Oregon and produces thermal imaging, night vision, and infrared cameras and sensor systems. According to the SEC’s order instituting a settled administrative proceeding, FLIR entered into a multi-million dollar contract to provide thermal binoculars to the Saudi government in November 2008. Timms and Ramahi were the primary sales employees responsible for the contract, and also were involved in negotiations to sell FLIR’s security cameras to the same government officials. At the time, Timms was the head of FLIR’s Middle East office in Dubai and Ramahi reported to him.
The SEC’s order finds that Timms and Ramahi traveled to Saudi Arabia in March 2009 and provided five officials with expensive luxury watches during meetings to discuss several business opportunities. Timms and Ramahi believed these officials were important to sales of both the binoculars and the security cameras. A few months later, they arranged for key officials, including two who received watches, to embark on what Timms referred to as a “world tour” of personal travel before and after they visited FLIR’s Boston facilities for a factory equipment inspection that was a key condition to fulfillment of the contract. The officials traveled for 20 nights with stops in Casablanca, Paris, Dubai, Beirut, and New York City. There was no business purpose for the stops outside of Boston, and the airfare and hotel accommodations were paid for by FLIR. Prior to providing the gifts and travel to the Saudi Arabian officials, Ramahi and Timms each had taken FCPA training at the company that specifically identified luxury watches and side trips as prohibited gifts.
According to the SEC’s order, when FLIR’s finance department flagged the expense reimbursement request for the watches during an unrelated review of expenses in the Dubai office and questioned the $7,000 cost, Timms and Ramahi obtained a second, fabricated invoice showing a cost of 7,000 Saudi Riyal (approximately $1,900 in U.S. dollars) instead of the true cost of $7,000 in U.S. dollars. They directed FLIR’s local third-party agent to provide false information to the company to back up their story that the original submission was merely a mistake. Ramahi and Timms also falsely claimed that FLIR’s payment for the world tour had been a billing mistake by FLIR’s travel agent, and again used false documentation and FLIR’s third-party agent to bolster their cover-up efforts.
Timms and Ramahi are U.S. citizens who reside in Thailand and the United Arab Emirates respectively. The SEC’s order finds that they violated the anti-bribery provisions of Section 30A of the Securities Exchange Act of 1934 and the internal controls and false records provisions of Section 13(b)(5) and Rule 13b2-1 of the Exchange Act. The SEC’s order further finds that Timms and Ramahi caused FLIR’s violations of the books and records provisions of Section 13(b)(2)(A) of the Exchange Act. Without admitting or denying the findings, Timms and Ramahi consented to the entry of the order and agreed to pay financial penalties of $50,000 and $20,000 respectively.
The SEC’s investigation is being conducted by FCPA Unit members Cameron P. Hoffman and Tracy L. Davis in the San Francisco office. The SEC appreciates the assistance of the Justice Department’s Fraud Section, the U.S. Attorney’s Office for the District of Massachusetts, the Federal Bureau of Investigation, and the United Arab Emirates Securities and Commodities Authority.
DOD ANNOUNCES ALLEGED DRUG CARTEL LEADER EXTRADITED FROM MEXICO TO U.S.
FROM: U.S. JUSTICE DEPARTMENT
Monday, November 17, 2014
Alleged Leader of a Mexican Drug Cartel Extradited to United States
One of the alleged leaders of the Beltran Leyva Organization, a Mexican drug-trafficking cartel responsible for importing multi-ton quantities of cocaine and methamphetamine into the United States, was extradited to the United States from Mexico on Nov. 15, 2014, and will be making an initial appearance this afternoon before U.S. Magistrate Judge Alan Kay of the District of Columbia.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director Joseph S. Campbell of the FBI’s Criminal Investigative Division, New York Division Special Agent in Charge James J. Hunt of the Drug Enforcement Administration (DEA) and Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) made the announcement.
“Over the past two decades, the Beltran Leyva Cartel has distributed tens of thousands of kilograms of dangerous narcotics and engaged in a campaign of violence that sparked drug wars and jeopardized public safety across North America,” said Assistant Attorney General Caldwell. “Today’s extradition of alleged kingpin Alfredo Beltran Leyva is an important step toward stamping out an organization that has ruined the lives of so many. The Justice Department is committed to working with our international partners to bring the rest of the organization to justice.”
“The arrest and extradition of Alfredo Beltran Leyva represents a significant milestone in combating transnational criminal organizations,” said FBI Assistant Director Campbell. “It is through collaborative efforts with our law enforcement partners that the United States will stem the tide of this continuing threat.”
“For years Alfredo Beltran Leyva, along with his brothers, was responsible for not only smuggling tons of cocaine to the United States, but also for the violence that has plagued the lives of Mexican citizens,” said DEA Special Agent in Charge Hunt. “His extradition to the United States is an example of a commitment to international cooperation and the rule of law.”
“The illegal drugs distributed throughout the United States by the Beltran Levya Cartel ruined countless lives in this country and sowed violence and chaos throughout Mexico,” said HSI Executive Associate Director Edge. “The arrest and extradition of Alfredo Beltran Levya to face justice here for his crimes is a great victory for ICE HSI and our partner agencies.”
Alfredo Beltran Levya, 43, was indicted on Aug. 24, 2012, for international narcotics trafficking conspiracy in connection with his leadership role in theinternational drug-trafficking cartel bearing his family name.
According to a motion for pretrial detention filed by prosecutors, between the early 1990s until his January 2008 arrest by Mexican law enforcement, Beltran Levya allegedly led the Beltran Levya Organization with his brothers Hector Beltran Levya and Arturo Beltran Levya, the latter of whom was killed in a December 2009 shootout with the Mexican army. Since the 1990s, the Beltran Levya Organization, together with the Sinaloa Cartel, allegedly directed a large-scale drug transportation network, shipping multi-ton quantities of cocaine from South America, through Central America and Mexico, and finally into the United States via land, air and sea. The organization also employed “sicarios,” or hitmen, who allegedly carried out hundreds of acts of violence, including murders, kidnappings, tortures and violent collections of drug debts, at the direction of the organization.
Following the January 2008 arrest of Alfredo Beltran Leyva by Mexican law enforcement authorities, the Beltran Leyva Organization severed its relationship with the Sinaloa Cartel, which was blamed for the arrest. This resultedin a violent war between the two drug cartels, and the murder of thousands of citizens in Mexico, including numerous law enforcement officers and officials.
On May 30, 2008, the President added the Beltran Leyva Organization to the Department of Treasury’s Office of Foreign Asset Control’s Specially Designated Nationals and Blocked Persons list pursuant to the Foreign Narcotics Kingpin Designation Act. On Aug. 20, 2009, the President specifically designated Beltran Leyva as a specially designated drug trafficker under the same Kingpin Act.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The investigation is led by the FBI’s El Paso Office, in partnership with the DEA’s New York Field Division and HSI’s New York Office, as part of the Organized Crime Drug Enforcement Task Force. This case is being prosecuted by the Criminal Division’s Narcotic and Dangerous Drugs Section, with the assistance of the Criminal Division’s Office of International Affairs. The Justice Department thanks the government of Mexico for their assistance in this extradition.
Monday, November 17, 2014
Alleged Leader of a Mexican Drug Cartel Extradited to United States
One of the alleged leaders of the Beltran Leyva Organization, a Mexican drug-trafficking cartel responsible for importing multi-ton quantities of cocaine and methamphetamine into the United States, was extradited to the United States from Mexico on Nov. 15, 2014, and will be making an initial appearance this afternoon before U.S. Magistrate Judge Alan Kay of the District of Columbia.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director Joseph S. Campbell of the FBI’s Criminal Investigative Division, New York Division Special Agent in Charge James J. Hunt of the Drug Enforcement Administration (DEA) and Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) made the announcement.
“Over the past two decades, the Beltran Leyva Cartel has distributed tens of thousands of kilograms of dangerous narcotics and engaged in a campaign of violence that sparked drug wars and jeopardized public safety across North America,” said Assistant Attorney General Caldwell. “Today’s extradition of alleged kingpin Alfredo Beltran Leyva is an important step toward stamping out an organization that has ruined the lives of so many. The Justice Department is committed to working with our international partners to bring the rest of the organization to justice.”
“The arrest and extradition of Alfredo Beltran Leyva represents a significant milestone in combating transnational criminal organizations,” said FBI Assistant Director Campbell. “It is through collaborative efforts with our law enforcement partners that the United States will stem the tide of this continuing threat.”
“For years Alfredo Beltran Leyva, along with his brothers, was responsible for not only smuggling tons of cocaine to the United States, but also for the violence that has plagued the lives of Mexican citizens,” said DEA Special Agent in Charge Hunt. “His extradition to the United States is an example of a commitment to international cooperation and the rule of law.”
“The illegal drugs distributed throughout the United States by the Beltran Levya Cartel ruined countless lives in this country and sowed violence and chaos throughout Mexico,” said HSI Executive Associate Director Edge. “The arrest and extradition of Alfredo Beltran Levya to face justice here for his crimes is a great victory for ICE HSI and our partner agencies.”
Alfredo Beltran Levya, 43, was indicted on Aug. 24, 2012, for international narcotics trafficking conspiracy in connection with his leadership role in theinternational drug-trafficking cartel bearing his family name.
According to a motion for pretrial detention filed by prosecutors, between the early 1990s until his January 2008 arrest by Mexican law enforcement, Beltran Levya allegedly led the Beltran Levya Organization with his brothers Hector Beltran Levya and Arturo Beltran Levya, the latter of whom was killed in a December 2009 shootout with the Mexican army. Since the 1990s, the Beltran Levya Organization, together with the Sinaloa Cartel, allegedly directed a large-scale drug transportation network, shipping multi-ton quantities of cocaine from South America, through Central America and Mexico, and finally into the United States via land, air and sea. The organization also employed “sicarios,” or hitmen, who allegedly carried out hundreds of acts of violence, including murders, kidnappings, tortures and violent collections of drug debts, at the direction of the organization.
Following the January 2008 arrest of Alfredo Beltran Leyva by Mexican law enforcement authorities, the Beltran Leyva Organization severed its relationship with the Sinaloa Cartel, which was blamed for the arrest. This resultedin a violent war between the two drug cartels, and the murder of thousands of citizens in Mexico, including numerous law enforcement officers and officials.
On May 30, 2008, the President added the Beltran Leyva Organization to the Department of Treasury’s Office of Foreign Asset Control’s Specially Designated Nationals and Blocked Persons list pursuant to the Foreign Narcotics Kingpin Designation Act. On Aug. 20, 2009, the President specifically designated Beltran Leyva as a specially designated drug trafficker under the same Kingpin Act.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The investigation is led by the FBI’s El Paso Office, in partnership with the DEA’s New York Field Division and HSI’s New York Office, as part of the Organized Crime Drug Enforcement Task Force. This case is being prosecuted by the Criminal Division’s Narcotic and Dangerous Drugs Section, with the assistance of the Criminal Division’s Office of International Affairs. The Justice Department thanks the government of Mexico for their assistance in this extradition.
Tuesday, November 18, 2014
FTC APPROVES FINAL CONSENT SETTLING CHRGES REGARDING MADE IN USA BRAND, LLC
FROM: U.S. FEDERAL TRADE COMMISSION
FTC Approves Final Consent Settling Charges that Made in USA Brand, LLC Deceived Consumers
Following a public comment period, the Federal Trade Commission has approved a final consent order settling charges that a company providing a “Made in USA” certification seal to marketers did so without verifying the companies’ Made in USA claims, or disclosing that the companies had certified themselves.
First announced in July 2014, the settlement prohibits Made in USA Brand, LLC’s deceptive claims, and bars the company from providing the marketers it certifies with the means to deceive consumers.
The Commission vote to approve the final order in this case was 5-0.
FTC Approves Final Consent Settling Charges that Made in USA Brand, LLC Deceived Consumers
Following a public comment period, the Federal Trade Commission has approved a final consent order settling charges that a company providing a “Made in USA” certification seal to marketers did so without verifying the companies’ Made in USA claims, or disclosing that the companies had certified themselves.
First announced in July 2014, the settlement prohibits Made in USA Brand, LLC’s deceptive claims, and bars the company from providing the marketers it certifies with the means to deceive consumers.
The Commission vote to approve the final order in this case was 5-0.
PRESIDENT OBAMA CONDEMNS ATTACK AT JERUSALEM SYNAGOGUE
FROM: THE WHITE HOUSE
November 18, 2014
Statement by the President on Attack in Jerusalem
I strongly condemn today’s terrorist attack on worshipers at a synagogue in Jerusalem, which killed four innocent people, including U.S. citizens Aryeh Kupinsky, Cary William Levine, and Mosheh Twersky, and injured several more. There is and can be no justification for such attacks against innocent civilians. The thoughts and prayers of the American people are with the victims and families of all those who were killed and injured in this horrific attack and in other recent violence. At this sensitive moment in Jerusalem, it is all the more important for Israeli and Palestinian leaders and ordinary citizens to work cooperatively together to lower tensions, reject violence, and seek a path forward towards peace.
November 18, 2014
Statement by the President on Attack in Jerusalem
I strongly condemn today’s terrorist attack on worshipers at a synagogue in Jerusalem, which killed four innocent people, including U.S. citizens Aryeh Kupinsky, Cary William Levine, and Mosheh Twersky, and injured several more. There is and can be no justification for such attacks against innocent civilians. The thoughts and prayers of the American people are with the victims and families of all those who were killed and injured in this horrific attack and in other recent violence. At this sensitive moment in Jerusalem, it is all the more important for Israeli and Palestinian leaders and ordinary citizens to work cooperatively together to lower tensions, reject violence, and seek a path forward towards peace.
DEFENSE SECRETARY HAGEL'S MEDIA AVAILABILITY AT FORT IRWIN, CA
FROM: U.S. DEFENSE DEPARTMENT
Media Availability with Secretary Hagel Conducted at Fort Irwin, California
Presenter: Secretary of Defense Chuck Hagel
November 16, 2014
REAR ADMIRAL JOHN KIRBY: Okay, folks, I'm Admiral John Kirby, the Pentagon press secretary.
The secretary is going to come on up here. He's got no opening statements. This obviously will be on the record. Only going to be able to take a few questions.
Bob, we're going to start with you, and then I'll call on a couple of -- some of the local reporters here as well.
And then I think -- where's John?
John, you had one, too.
Okay, is everybody ready?
Mr. Secretary?
SECRETARY OF DEFENSE CHUCK HAGEL: General Abrams is in the tank there. I hope that we're not in the way.
(UNKNOWN): He couldn't help himself.
SEC. HAGEL: He couldn't help himself. I'm not sure we shouldn't be off to the side, but he is a general.
So yes. All right, Bob?
Q: Mr. Secretary a question for you about the (inaudible) strategy that (inaudible) today. You said it's working and you said it's (inaudible). (inaudible) it could be accelerated (inaudible). General Dempsey had talked this weekend about (inaudible).
SEC. HAGEL: Yes, we -- at the recommendation of General Austin, have agreed with General Austin's recommendations to take some of the special operations forces that he has in Iraq and give them some early missions working with the Iraqi security forces in Anbar province just to kind of continue to mission accelerate the mission of preparing for training and equipping, and the things that we need to do to start setting that up.
Because it is a process, it has to be done right; we've got to get the right trainers in there, coalition partners. So yes, we are doing what we can with the resources we have to give some acceleration to that.
Q: Has this just begun in the last couple of days or a week?
SEC. HAGEL: Last couple of days that he has moved some of this advisers into Anbar province to work with the Iraqi security forces.
Q: (off mic) You talked a little bit about (inaudible). You know that (inaudible) on the (inaudible). (inaudible). Can you talk a little bit about how the environment here is critical to the U.S. military?
SEC. HAGEL: Well, this is really a critically important base for our training. Yes, partly because of the environment that it represents, and it does give our trainers a very realistic geography to work with, and we've invested a lot of effort here and resources, and it has really been a very smart investment, because it's paid off in the training and the capabilities that our men and women get through this training here. So it's a unique location. It's an important location.
Q: (off mic)
SEC. HAGEL: Well, first, I think everybody knew from the beginning, because this is a rotational overall mission, that we would be requiring National Guard assistance and participation. So I went ahead and authorized the beginning of that last week. Nothing is moving; it takes time to -- but you've got to notify our Guardsmen and their families and their employers.
But anticipating any further call-ups, not in our planned -- at this point.
Q: (off mic)
SEC. HAGEL: Well, it depends on how successful we all are in stopping the spread of Ebola. Working, as you know, with the USAID and CDC and the Liberian government, we're hopeful that it won't be a long mission at all.
But we're uncertain until we know that we have been able to stop it. There are positive signs, but we're planning for a six-month mission, but we'll see. It just depends on how successful we all are in stopping the spread of Ebola.
REAR ADM. KIRBY: We've got one more question.
Sir, we'll go to you.
Q: You mentioned in budget constraints that there were facilities that (inaudible). Are any of those in California? And if so, (inaudible)?
SEC. HAGEL: (Laughter.) I'm not going to get into which ones.
Q: (off mic)
SEC. HAGEL: We have a pretty clear inventory of where we have excess capacity. We've shared at least our thinking, some of our thinking, with the Congress on this, but that's the whole point behind a BRAC, a base closing commission that allows an independent look at what facilities are still being used, which facilities are important to the future of our country, our security, and which are not.
And it was setup, you'll recall, many years ago, to give not only an honest assessment of that, but also take it out of politics.
And so, what we're asking for, again, is for the Congress to authorize another base relocation closing commission to go in and take a hard look, an insightful, honest look, and evaluate where that excess capacity is. And I would hope the Congress will allow us to do that, and I would hope that they would support another round of BRAC.
REAR ADM. KIRBY: Thanks, everybody. Appreciate it.
SEC. HAGEL: Thank you.
Media Availability with Secretary Hagel Conducted at Fort Irwin, California
Presenter: Secretary of Defense Chuck Hagel
November 16, 2014
REAR ADMIRAL JOHN KIRBY: Okay, folks, I'm Admiral John Kirby, the Pentagon press secretary.
The secretary is going to come on up here. He's got no opening statements. This obviously will be on the record. Only going to be able to take a few questions.
Bob, we're going to start with you, and then I'll call on a couple of -- some of the local reporters here as well.
And then I think -- where's John?
John, you had one, too.
Okay, is everybody ready?
Mr. Secretary?
SECRETARY OF DEFENSE CHUCK HAGEL: General Abrams is in the tank there. I hope that we're not in the way.
(UNKNOWN): He couldn't help himself.
SEC. HAGEL: He couldn't help himself. I'm not sure we shouldn't be off to the side, but he is a general.
So yes. All right, Bob?
Q: Mr. Secretary a question for you about the (inaudible) strategy that (inaudible) today. You said it's working and you said it's (inaudible). (inaudible) it could be accelerated (inaudible). General Dempsey had talked this weekend about (inaudible).
SEC. HAGEL: Yes, we -- at the recommendation of General Austin, have agreed with General Austin's recommendations to take some of the special operations forces that he has in Iraq and give them some early missions working with the Iraqi security forces in Anbar province just to kind of continue to mission accelerate the mission of preparing for training and equipping, and the things that we need to do to start setting that up.
Because it is a process, it has to be done right; we've got to get the right trainers in there, coalition partners. So yes, we are doing what we can with the resources we have to give some acceleration to that.
Q: Has this just begun in the last couple of days or a week?
SEC. HAGEL: Last couple of days that he has moved some of this advisers into Anbar province to work with the Iraqi security forces.
Q: (off mic) You talked a little bit about (inaudible). You know that (inaudible) on the (inaudible). (inaudible). Can you talk a little bit about how the environment here is critical to the U.S. military?
SEC. HAGEL: Well, this is really a critically important base for our training. Yes, partly because of the environment that it represents, and it does give our trainers a very realistic geography to work with, and we've invested a lot of effort here and resources, and it has really been a very smart investment, because it's paid off in the training and the capabilities that our men and women get through this training here. So it's a unique location. It's an important location.
Q: (off mic)
SEC. HAGEL: Well, first, I think everybody knew from the beginning, because this is a rotational overall mission, that we would be requiring National Guard assistance and participation. So I went ahead and authorized the beginning of that last week. Nothing is moving; it takes time to -- but you've got to notify our Guardsmen and their families and their employers.
But anticipating any further call-ups, not in our planned -- at this point.
Q: (off mic)
SEC. HAGEL: Well, it depends on how successful we all are in stopping the spread of Ebola. Working, as you know, with the USAID and CDC and the Liberian government, we're hopeful that it won't be a long mission at all.
But we're uncertain until we know that we have been able to stop it. There are positive signs, but we're planning for a six-month mission, but we'll see. It just depends on how successful we all are in stopping the spread of Ebola.
REAR ADM. KIRBY: We've got one more question.
Sir, we'll go to you.
Q: You mentioned in budget constraints that there were facilities that (inaudible). Are any of those in California? And if so, (inaudible)?
SEC. HAGEL: (Laughter.) I'm not going to get into which ones.
Q: (off mic)
SEC. HAGEL: We have a pretty clear inventory of where we have excess capacity. We've shared at least our thinking, some of our thinking, with the Congress on this, but that's the whole point behind a BRAC, a base closing commission that allows an independent look at what facilities are still being used, which facilities are important to the future of our country, our security, and which are not.
And it was setup, you'll recall, many years ago, to give not only an honest assessment of that, but also take it out of politics.
And so, what we're asking for, again, is for the Congress to authorize another base relocation closing commission to go in and take a hard look, an insightful, honest look, and evaluate where that excess capacity is. And I would hope the Congress will allow us to do that, and I would hope that they would support another round of BRAC.
REAR ADM. KIRBY: Thanks, everybody. Appreciate it.
SEC. HAGEL: Thank you.
NATO AND THE SOUTHERN FLANK
FROM: U.S. DEFENSE DEPARTMENT
NATO Official Discusses Southern Flank, Mediterranean Dialogue
By Jim Garamone
DoD News, Defense Media Activity
WASHINGTON, Nov. 17, 2014 – Russia’s blatant disregard of international norms in Ukraine is just one example of its attempts to reject an international order that promotes democracy, sovereignty and the rule of law, NATO’s deputy secretary general said in La Hulpe, Belgium, today.
Alexander Vershbow told the conference on NATO-Israel cooperation that challenges from Russia and from NATO’s southern flank share many of the same attributes.
Russia’s continued attempts to destabilize Ukraine “have blatantly breached international agreements and confidence-building measures,” Vershbow said.
And on NATO’s southern flank, the Islamic State of Iraq and the Levant continues to spew its hatred, “pouring oil on the fire of extremism and sectarianism that is already burning across the Middle East and North Africa,” he said.
“ISIL’s advances in Iraq and the Levant also risk exporting terrorism much further afield, including to NATO and [European Union] member states,” the deputy secretary general added.
NATO Determined to Defeat ISIL, Similar Threats
ISIL is working to overthrow rules-based and values-based order that is the guarantor of freedom, security and prosperity for all nations, Vershbow said, and NATO is determined to play its part to defeat this threat and those like it.
“The capabilities and forces that we are now developing are very clearly aimed at enhancing NATO’s overall resilience,” the deputy secretary general said. “We want to be able to deploy them quickly not only whenever, but also wherever, threats emerge – whether it’s in our eastern or our southern neighborhoods.”
At NATO’s summit held in Wales in September, the alliance also decided to strengthen cooperation with partner nations. The summit also launched an initiative to help partners strengthen their ability to address security challenges.
“This initiative builds upon NATO’s extensive expertise in defense capacity building -- for instance, in Kosovo and Afghanistan,” Vershbow explained. “And we made clear that we stand ready to assist Iraq in strengthening its security sector, if the new government so requests.”
Risk of Extremism Has Grown on NATO’s Southern Flank
The risk of extremism on NATO’s southern flank has grown and produced more fertile territory since the Arab Spring, the deputy secretary general said. The Mediterranean Dialogue – a NATO initiative celebrating 20 years – is more valuable than ever, he added.
“The Mediterranean Dialogue was never intended to have a direct influence on the Middle East peace process, or in tackling the wider challenges of the region,” he said. “But it was a genuine attempt to improve mutual understanding, to dispel misconceptions and to foster a dialogue that otherwise would not exist.”
The dialogue has developed into a unique multilateral forum, he noted. “It’s the only structured framework where the 28 NATO allies, Israel and key Arab countries sit together on a regular basis,” he said.
But more can be done, Vershbow told the forum audience:
-- A firm offer to assist countries in transition with defense and security sector reform, including planning and budgeting;
-- Dealing with surplus ammunition; and
-- Encouraging what he called “good security governance.”
NATO nations have unique expertise in these areas, he said, and the alliance will look to include the European Union in these efforts.
More Focus on Capability Building
Vershbow said he would like to see more focus on capability building. “We want to help the countries of the region to be better able both to address security concerns in their own region and to participate in international peacekeeping and crisis management operations – including those led by NATO,” he said.
This, he added, could involve greater military-to-military cooperation, and invitations to participate in NATO training, exercises and education programs.
“But it could also involve more structured cooperation between NATO and organizations like the African Union and the Arab League,” he said.
The deputy secretary general said he expects a further strengthening of dialogue and cooperation where NATO shares the same values and interests with its partners to better address specific concerns and requirements. “And I see particular scope here for our relations with longstanding, active partners like Israel,” he added.
NATO Official Discusses Southern Flank, Mediterranean Dialogue
By Jim Garamone
DoD News, Defense Media Activity
WASHINGTON, Nov. 17, 2014 – Russia’s blatant disregard of international norms in Ukraine is just one example of its attempts to reject an international order that promotes democracy, sovereignty and the rule of law, NATO’s deputy secretary general said in La Hulpe, Belgium, today.
Alexander Vershbow told the conference on NATO-Israel cooperation that challenges from Russia and from NATO’s southern flank share many of the same attributes.
Russia’s continued attempts to destabilize Ukraine “have blatantly breached international agreements and confidence-building measures,” Vershbow said.
And on NATO’s southern flank, the Islamic State of Iraq and the Levant continues to spew its hatred, “pouring oil on the fire of extremism and sectarianism that is already burning across the Middle East and North Africa,” he said.
“ISIL’s advances in Iraq and the Levant also risk exporting terrorism much further afield, including to NATO and [European Union] member states,” the deputy secretary general added.
NATO Determined to Defeat ISIL, Similar Threats
ISIL is working to overthrow rules-based and values-based order that is the guarantor of freedom, security and prosperity for all nations, Vershbow said, and NATO is determined to play its part to defeat this threat and those like it.
“The capabilities and forces that we are now developing are very clearly aimed at enhancing NATO’s overall resilience,” the deputy secretary general said. “We want to be able to deploy them quickly not only whenever, but also wherever, threats emerge – whether it’s in our eastern or our southern neighborhoods.”
At NATO’s summit held in Wales in September, the alliance also decided to strengthen cooperation with partner nations. The summit also launched an initiative to help partners strengthen their ability to address security challenges.
“This initiative builds upon NATO’s extensive expertise in defense capacity building -- for instance, in Kosovo and Afghanistan,” Vershbow explained. “And we made clear that we stand ready to assist Iraq in strengthening its security sector, if the new government so requests.”
Risk of Extremism Has Grown on NATO’s Southern Flank
The risk of extremism on NATO’s southern flank has grown and produced more fertile territory since the Arab Spring, the deputy secretary general said. The Mediterranean Dialogue – a NATO initiative celebrating 20 years – is more valuable than ever, he added.
“The Mediterranean Dialogue was never intended to have a direct influence on the Middle East peace process, or in tackling the wider challenges of the region,” he said. “But it was a genuine attempt to improve mutual understanding, to dispel misconceptions and to foster a dialogue that otherwise would not exist.”
The dialogue has developed into a unique multilateral forum, he noted. “It’s the only structured framework where the 28 NATO allies, Israel and key Arab countries sit together on a regular basis,” he said.
But more can be done, Vershbow told the forum audience:
-- A firm offer to assist countries in transition with defense and security sector reform, including planning and budgeting;
-- Dealing with surplus ammunition; and
-- Encouraging what he called “good security governance.”
NATO nations have unique expertise in these areas, he said, and the alliance will look to include the European Union in these efforts.
More Focus on Capability Building
Vershbow said he would like to see more focus on capability building. “We want to help the countries of the region to be better able both to address security concerns in their own region and to participate in international peacekeeping and crisis management operations – including those led by NATO,” he said.
This, he added, could involve greater military-to-military cooperation, and invitations to participate in NATO training, exercises and education programs.
“But it could also involve more structured cooperation between NATO and organizations like the African Union and the Arab League,” he said.
The deputy secretary general said he expects a further strengthening of dialogue and cooperation where NATO shares the same values and interests with its partners to better address specific concerns and requirements. “And I see particular scope here for our relations with longstanding, active partners like Israel,” he added.
NSF PRESENTS FINDINGS FROM PAPER ON LARGE ANIMALS AND EFFECTS ON TROPICAL FORESTS
FROM: THE NATIONAL SCIENCE FOUNDATION
Fruits of the forest gone: Overhunting of large animals has catastrophic effects on trees
As the animals go, so go tropical forests
The elephant has long been an important spiritual, cultural and national symbol in Thailand. At the beginning of the 20th century, its numbers exceeded 100,000.
Today, those numbers have plunged to 2,000. Elephants, as well as other large, charismatic animals such as tigers, monkeys and civet cats, are under attack from hunters and poachers.
Overhunting of animals affects entire forest
While the loss of these animals is concerning for species conservation, now researchers at the University of Florida have shown that overhunting can have widespread effects on the forest itself.
Overhunting leads to the extinction of a dominant tree species, Miliusa horsfieldii, or the Miliusa beech, with likely cascading effects on other forest biota.
The scientists report their results in the current issue of the journal Proceedings of the Royal Society B.
Co-authors of the paper are Trevor Caughlin and Jeremy Lichstein of the University of Florida and Doug Levey, formerly of the University of Florida and now a program director in the National Science Foundation's Division of Environmental Biology.
Other co-authors are researchers at King Mongkut's University of Technology Thonburi in Thailand, Wageningen University in the Netherlands and the Royal Thai Forest Department.
Loss of one tree species has far-reaching implications
The ecologists show how vital large animals are to maintaining the biodiversity of tropical forests in Thailand.
The team looked at how these mammals contribute to moving seeds through the forest.
"It's not surprising that seed dispersers help trees get to new places," says Levey. "The effects of hunting can extend far beyond the hunted, threatening the overall health of the trees that make up the forest."
Adds Caughlin, "On the surface, it doesn't seem that seed dispersal would be important for tree populations. But seed dispersal has an effect over the whole life of a tree."
Animals critical to seed transport through the forest
The scientists looked at the growth and survival of trees that sprouted from parent trees and grew up in crowded environs, compared to trees from seeds that were widely transported across the forest by animals.
The information was supplemented with a dataset from the Thai Royal Forest Department that contains more than 15 years of data on trees.
The researchers then created a long-term simulation and ran it on the University of Florida's supercomputer, the HiPerGator.
"Having that computing power was very important," says Caughlin, "because we had to simulate the fate of millions of seeds."
The scientists discovered that trees that grow from seeds transported by now-overhunted animals are hardier and healthier.
"Our study is the first to quantify the decades-long effects of animal seed dispersal across the entire tree life cycle, from seeds to seedlings to adult trees," says Lichstein.
Probability of tree extinction increased tenfold
The results show that loss of animal seed-dispersers increases the probability of tree extinction by more than tenfold over a 100-year period.
"The entire ecosystem is at risk," says Caughlin.
"We hope the study will provide a boost for those trying to curb overhunting," he says, "and provide incentives to stop the wildlife trade."
-- Cheryl Dybas, NSF
-- Gigi Marino, University of Florida
WHITE HOUSE FACT SHEET ON THE G-20 BRISBANE SUMMIT
FROM: THE WHITE HOUSE
November 16, 2014
FACT SHEET: The G-20 Brisbane Summit
The G-20 is the world’s premier forum for economic policy cooperation – where Leaders representing economies generating 85 percent of global GDP assemble around the table to promote strong, sustainable and balanced growth and to address urgent global economic challenges.
The Brisbane G-20 Summit – the eighth that President Obama has attended since taking office – focused on growth and jobs. With the global economic recovery still fragile, G-20 Leaders sent a clear signal of their commitment to take decisive steps, recognizing that the global economy is being held back by a shortfall in demand. G-20 Leaders announced a Brisbane Action Plan of individual country commitments and collective actions that could increase the G-20’s combined output by 2.1 percent or more over the next five years.
Leaders agreed on a number of specific steps to strengthen the resilience of the global economy and to address challenges such as climate change. These include new initiatives on infrastructure investment, female labor force participation, combating corruption, and remittances. Leaders also issued a separate statement about Ebola and global health security.
Among the most significant agreements were:
launching the Global Infrastructure Initiative to unlock private financing for infrastructure investment worldwide, including the creation of a Global Infrastructure Hub to support best practices and coordination;
a commitment by each country to close the gap between its male and female labor-force participation rates by 25% by 2025; this will bring an estimated 100 million additional women into the labor force by that year;
principles that would help prevent the abuse of anonymous shell companies to facilitate illicit financial flows stemming from corruption, tax evasion, and money laundering a commitment to addressing the challenge of climate change including communicating post-2020 domestic climate targets as soon as possible and preferably by the first quarter of 2015. G-20 leaders also stressed the importance of climate finance, including additional contributions to the Green Climate Fund following the United States’ $3 billion commitment to the GCF;
an Energy Efficiency Action Plan that includes, among other initiatives, a program to increase fuel quality and reduce carbon emissions by heavy-duty vehicles;
advancing the implementation of the international financial reform agenda;
agreement to complete by the end of 2015 an implementation plan on combating tax avoidance by multinational companies; and agreement on principles on energy markets that could serve as the basis for ongoing discussions on reform of the international energy architecture.
Building a Stronger Global Economy through Jobs and Growth
The United States is a major source of strength in the global economy, with 56 straight months of private sector job growth creating 10.6 million jobs. The Administration’s comprehensive response to the economic crisis — including through macroeconomic and structural policies — has laid the foundation for growth in the United States.
The pace of global economic growth and job creation, however, has disappointed since the recovery from recession began in 2009. Economic activity in advanced countries has been particularly weak, while growth in emerging markets is uneven. As the G-20 Leaders acknowledged, there is a shortfall in global demand.
To help strengthen medium-term potential growth, G-20 Leaders endorsed the Brisbane Action Plan to boost collective G-20 growth by 2 percent or more over the next five years. The Action Plan includes a U.S. Growth Strategy based on Administration priorities such as infrastructure investment, raising household income, increasing access to quality skills development, increasing trade, comprehensive immigration reform, and assisting working families. The U.S. reform commitments were critical in allowing the G-20 to meet its 2 percent goal.
Increasing Infrastructure Investment
A key constraint to growth across the G-20 is inadequate infrastructure. At the same time, infrastructure investment creates construction jobs and can provide a strong impetus to growth. This year, the G-20 launched a Global Infrastructure Initiative, paired with a new Global Infrastructure Hub that will be based here in Australia, to help tap into the large pool of potential private financing for infrastructure investment.
We’ve also made significant advances in expanding the amount of money that the World Bank and other multilateral development banks can deploy to emerging economies through more efficient use of their existing balance sheets.
Female Labor Force Participation
The G-20 made a new commitment to bring more women into the workforce and improve the quality of their jobs. All G-20 countries committed to reduce the gap between the share of men and women in the workforce by 25 percent by 2025. That would bring an additional 100 million women into the formal workforce and increase global GDP.
Fighting corruption
The G-20 has taken significant steps over the last four years to fight the scourge of corruption in our own countries and overseas. In Brisbane, Leaders adopted a two-year plan to strengthen enforcement, enhance transparency, and facilitate the recovery of assets stolen by corrupt officials. This includes meaningful steps to ensure that corrupt actors cannot exploit our financial and legal systems. The G-20 also reached a significant agreement to end the abuse of anonymous shell companies by endorsing implementation of “Beneficial Ownership” principles. The G-20 will work to ensure that corrupt actors can no longer use these shell companies to evade taxes or launder the proceeds of their crimes, and the Administration has proposed legislation to end the use of anonymous shell companies in the United States.
Remittances and Financial inclusion
G-20 leaders today agreed on a set of concrete steps that will reduce the cost of sending money home for people working overseas. These remittances are a life-line for millions of people in the developing world and a critical source of development financing for emerging and developing economies. This action plan will lower the cost of remittances to an average of 5 percent by increasing competition and expanding access to money transfer services, making the financial system more inclusive for billions of people and again demonstrating the G-20’s capacity to make the global economy work better for everyone.
Enhancing Energy Efficiency and Addressing Climate Change
G-20 leaders increased their commitment to energy and climate change through energy deliverables and a strong endorsement of the need for action to address climate change. Leaders agreed to:
Endorse a new set of Principles on Energy Collaboration that outline key elements for future G-20 energy and climate change work. These principles can set the agenda for future discussions of how we should adapt the global energy architecture to reflect recent transformations in the world’s energy markets – including the energy revolution in the United States.
An Energy Efficiency Action Plan that will guide efficiency work in six important sectors. Central to this Action Plan is an agreement to develop country-specific plans in 2015 to improve efficiency of heavy-duty vehicles – trucks, buses, and other large vehicles which account for as much as half of all vehicle emissions even though they represent only 10 percent of all vehicles. Three quarters of these vehicles globally are sold in G-20 countries. The plan will lead to cleaner fuel, lower fuel consumption and carbon emissions, and reduced public health costs. The United States is a global leader in heavy-duty vehicles standards for tailpipe emissions, fuel quality and efficiency, as well as green freight programs.
Reaffirm the G-20 commitment to rationalize and phase out inefficient fossil fuel subsidies. The United States, China, and Germany have committed to undergo fossil fuel subsidy peer reviews, which can help countries assess their subsidies and provide recommendations for reform. The European Union has also offered to participate as a reviewer.
Send a clear signal that G-20 Leaders support strong and effective action to address climate change by reaffirming their resolve to adopt a protocol, another legal instrument or an agreed outcome with legal force at the UN climate negotiations in Paris in 2015. In order to accomplish this, G-20 Leaders committed to communicate their post-2020 domestic climate targets as soon as possible and preferably by early 2015. They also stressed the importance of contributions to the Green Climate Fund, and the United States announced a $3 billion commitment to the GCF.
Ebola and Global Health Security
The G-20 also demonstrated its ability to respond to new and fast-breaking challenges to the global economy, such as the threat posed by the Ebola epidemic. In a statement released yesterday, G-20 leaders called for faster action to end the Ebola epidemic in West Africa. Participating countries also committed to take steps to build the capacity to prevent, detect, and rapidly respond to future outbreaks – before they become epidemics. And to make sure these aren’t just idle promises, the G-20 will review progress in building that capacity in at a major international meeting next May. These steps are consistent with the Global Health Security Agenda, which the United States helped launch in February and the President hosted for an event at the White House in September.
For the three countries whose economies have been devastated by this epidemic, G-20 leaders also endorsed an IMF initiative to provide them with $300 million in low-cost or no-cost financing and debt relief.
Strengthening the Global Financial System and addressing tax evasion and avoidance
The G-20 came into being during the financial crisis, and repairing and strengthening the resilience of the global financial system has been one of the most important elements of our cooperation. While there is critical work to be done, this year we are close to finalizing the majority of the work on new rules to strengthen the financial system, end too-big-too fail, and promote a level playing field around the world.
U.S. leadership has played a transformational role by engaging others in a “race to the top” to improve the quality of regulation and level the playing field across major and emerging financial centers. The United States led the way in this area with our Dodd-Frank reforms. Now the key is for all G-20 countries to implement these commitments. After the damage wrought by the financial crisis, we owe it to our citizens to complete our work in creating a safer and more resilient financial system.
This year, the G-20 took significant steps forward to strengthening bank capital and liquidity by reducing leverage, addressing “too big to fail” by ensuring tax payers will not have to bear the costs of resolution for large financial institutions, committing to make the derivatives markets more transparent and safe, and addressing the systemic risks posed by shadow banking.
November 16, 2014
FACT SHEET: The G-20 Brisbane Summit
The G-20 is the world’s premier forum for economic policy cooperation – where Leaders representing economies generating 85 percent of global GDP assemble around the table to promote strong, sustainable and balanced growth and to address urgent global economic challenges.
The Brisbane G-20 Summit – the eighth that President Obama has attended since taking office – focused on growth and jobs. With the global economic recovery still fragile, G-20 Leaders sent a clear signal of their commitment to take decisive steps, recognizing that the global economy is being held back by a shortfall in demand. G-20 Leaders announced a Brisbane Action Plan of individual country commitments and collective actions that could increase the G-20’s combined output by 2.1 percent or more over the next five years.
Leaders agreed on a number of specific steps to strengthen the resilience of the global economy and to address challenges such as climate change. These include new initiatives on infrastructure investment, female labor force participation, combating corruption, and remittances. Leaders also issued a separate statement about Ebola and global health security.
Among the most significant agreements were:
launching the Global Infrastructure Initiative to unlock private financing for infrastructure investment worldwide, including the creation of a Global Infrastructure Hub to support best practices and coordination;
a commitment by each country to close the gap between its male and female labor-force participation rates by 25% by 2025; this will bring an estimated 100 million additional women into the labor force by that year;
principles that would help prevent the abuse of anonymous shell companies to facilitate illicit financial flows stemming from corruption, tax evasion, and money laundering a commitment to addressing the challenge of climate change including communicating post-2020 domestic climate targets as soon as possible and preferably by the first quarter of 2015. G-20 leaders also stressed the importance of climate finance, including additional contributions to the Green Climate Fund following the United States’ $3 billion commitment to the GCF;
an Energy Efficiency Action Plan that includes, among other initiatives, a program to increase fuel quality and reduce carbon emissions by heavy-duty vehicles;
advancing the implementation of the international financial reform agenda;
agreement to complete by the end of 2015 an implementation plan on combating tax avoidance by multinational companies; and agreement on principles on energy markets that could serve as the basis for ongoing discussions on reform of the international energy architecture.
Building a Stronger Global Economy through Jobs and Growth
The United States is a major source of strength in the global economy, with 56 straight months of private sector job growth creating 10.6 million jobs. The Administration’s comprehensive response to the economic crisis — including through macroeconomic and structural policies — has laid the foundation for growth in the United States.
The pace of global economic growth and job creation, however, has disappointed since the recovery from recession began in 2009. Economic activity in advanced countries has been particularly weak, while growth in emerging markets is uneven. As the G-20 Leaders acknowledged, there is a shortfall in global demand.
To help strengthen medium-term potential growth, G-20 Leaders endorsed the Brisbane Action Plan to boost collective G-20 growth by 2 percent or more over the next five years. The Action Plan includes a U.S. Growth Strategy based on Administration priorities such as infrastructure investment, raising household income, increasing access to quality skills development, increasing trade, comprehensive immigration reform, and assisting working families. The U.S. reform commitments were critical in allowing the G-20 to meet its 2 percent goal.
Increasing Infrastructure Investment
A key constraint to growth across the G-20 is inadequate infrastructure. At the same time, infrastructure investment creates construction jobs and can provide a strong impetus to growth. This year, the G-20 launched a Global Infrastructure Initiative, paired with a new Global Infrastructure Hub that will be based here in Australia, to help tap into the large pool of potential private financing for infrastructure investment.
We’ve also made significant advances in expanding the amount of money that the World Bank and other multilateral development banks can deploy to emerging economies through more efficient use of their existing balance sheets.
Female Labor Force Participation
The G-20 made a new commitment to bring more women into the workforce and improve the quality of their jobs. All G-20 countries committed to reduce the gap between the share of men and women in the workforce by 25 percent by 2025. That would bring an additional 100 million women into the formal workforce and increase global GDP.
Fighting corruption
The G-20 has taken significant steps over the last four years to fight the scourge of corruption in our own countries and overseas. In Brisbane, Leaders adopted a two-year plan to strengthen enforcement, enhance transparency, and facilitate the recovery of assets stolen by corrupt officials. This includes meaningful steps to ensure that corrupt actors cannot exploit our financial and legal systems. The G-20 also reached a significant agreement to end the abuse of anonymous shell companies by endorsing implementation of “Beneficial Ownership” principles. The G-20 will work to ensure that corrupt actors can no longer use these shell companies to evade taxes or launder the proceeds of their crimes, and the Administration has proposed legislation to end the use of anonymous shell companies in the United States.
Remittances and Financial inclusion
G-20 leaders today agreed on a set of concrete steps that will reduce the cost of sending money home for people working overseas. These remittances are a life-line for millions of people in the developing world and a critical source of development financing for emerging and developing economies. This action plan will lower the cost of remittances to an average of 5 percent by increasing competition and expanding access to money transfer services, making the financial system more inclusive for billions of people and again demonstrating the G-20’s capacity to make the global economy work better for everyone.
Enhancing Energy Efficiency and Addressing Climate Change
G-20 leaders increased their commitment to energy and climate change through energy deliverables and a strong endorsement of the need for action to address climate change. Leaders agreed to:
Endorse a new set of Principles on Energy Collaboration that outline key elements for future G-20 energy and climate change work. These principles can set the agenda for future discussions of how we should adapt the global energy architecture to reflect recent transformations in the world’s energy markets – including the energy revolution in the United States.
An Energy Efficiency Action Plan that will guide efficiency work in six important sectors. Central to this Action Plan is an agreement to develop country-specific plans in 2015 to improve efficiency of heavy-duty vehicles – trucks, buses, and other large vehicles which account for as much as half of all vehicle emissions even though they represent only 10 percent of all vehicles. Three quarters of these vehicles globally are sold in G-20 countries. The plan will lead to cleaner fuel, lower fuel consumption and carbon emissions, and reduced public health costs. The United States is a global leader in heavy-duty vehicles standards for tailpipe emissions, fuel quality and efficiency, as well as green freight programs.
Reaffirm the G-20 commitment to rationalize and phase out inefficient fossil fuel subsidies. The United States, China, and Germany have committed to undergo fossil fuel subsidy peer reviews, which can help countries assess their subsidies and provide recommendations for reform. The European Union has also offered to participate as a reviewer.
Send a clear signal that G-20 Leaders support strong and effective action to address climate change by reaffirming their resolve to adopt a protocol, another legal instrument or an agreed outcome with legal force at the UN climate negotiations in Paris in 2015. In order to accomplish this, G-20 Leaders committed to communicate their post-2020 domestic climate targets as soon as possible and preferably by early 2015. They also stressed the importance of contributions to the Green Climate Fund, and the United States announced a $3 billion commitment to the GCF.
Ebola and Global Health Security
The G-20 also demonstrated its ability to respond to new and fast-breaking challenges to the global economy, such as the threat posed by the Ebola epidemic. In a statement released yesterday, G-20 leaders called for faster action to end the Ebola epidemic in West Africa. Participating countries also committed to take steps to build the capacity to prevent, detect, and rapidly respond to future outbreaks – before they become epidemics. And to make sure these aren’t just idle promises, the G-20 will review progress in building that capacity in at a major international meeting next May. These steps are consistent with the Global Health Security Agenda, which the United States helped launch in February and the President hosted for an event at the White House in September.
For the three countries whose economies have been devastated by this epidemic, G-20 leaders also endorsed an IMF initiative to provide them with $300 million in low-cost or no-cost financing and debt relief.
Strengthening the Global Financial System and addressing tax evasion and avoidance
The G-20 came into being during the financial crisis, and repairing and strengthening the resilience of the global financial system has been one of the most important elements of our cooperation. While there is critical work to be done, this year we are close to finalizing the majority of the work on new rules to strengthen the financial system, end too-big-too fail, and promote a level playing field around the world.
U.S. leadership has played a transformational role by engaging others in a “race to the top” to improve the quality of regulation and level the playing field across major and emerging financial centers. The United States led the way in this area with our Dodd-Frank reforms. Now the key is for all G-20 countries to implement these commitments. After the damage wrought by the financial crisis, we owe it to our citizens to complete our work in creating a safer and more resilient financial system.
This year, the G-20 took significant steps forward to strengthening bank capital and liquidity by reducing leverage, addressing “too big to fail” by ensuring tax payers will not have to bear the costs of resolution for large financial institutions, committing to make the derivatives markets more transparent and safe, and addressing the systemic risks posed by shadow banking.
Monday, November 17, 2014
WHITE HOUSE FACT SHEET ON SUPPLIERPAY INITIATIVE EXPANSION
FROM: THE WHITE HOUSE
November 17, 2014
FACT SHEET: President Obama’s SupplierPay Initiative Expands; 20 Additional Companies Pledge to Strengthen America’s Small Businesses
Today, the White House announced an expansion of President Obama’s SupplierPay initiative, a partnership with the private sector to strengthen small businesses by increasing their working capital, so they can grow and hire more workers.
Twenty companies are joining the 26 companies that adopted the SupplierPay pledge at a launch announcement with President Obama in July. As part of the SupplierPay initiative, companies pledge to pay their small suppliers faster or enable a financing solution that helps them access working capital at a lower cost.
The SupplierPay initiative helps address the difficulties small businesses face in accessing affordable working capital. Reducing the time it takes for smaller suppliers to get paid or lowering their short-term borrowing costs enables them to devote more of their resources to investing in their business, hiring, and growing.
Also today, the Commerce Department is releasing a new report which finds that the larger companies participating in the SupplierPay initiative also have the potential to realize significant economic benefits. High working capital costs for small suppliers can get passed onto large customers in the form of lower-quality goods and services, less stable suppliers, and higher prices. Reducing working capital costs—as SupplierPay companies are doing—unlocks capital to be put to work for the benefit of large buyers, and for the entire economy, according to the report.
Today’s SupplierPay Working Session
Also today, the White House will hold a SupplierPay working session hosted by National Economic Council Director Jeff Zients and SBA Administrator Maria Contreras-Sweet. The working session will bring together both existing and new SupplierPay companies to discuss actions companies are taking to implement the SupplierPay pledge, and ensure the metrics are in place to track and measure impact of this initiative going forward.
The following new companies have signed on to SupplierPay:
Akima
Chugach Alaska
Cook Inlet Region, Inc.
ConAgra Foods, Inc.
Dominion Resources, Inc.
Dun & Bradstreet Credibility Corp.
Intel Corp.
Hallmark Cards, Inc.
Kaiser Permanente
McGraw Hill Financial, Inc.
Nova Corp., Inc.
Oracle Corp.
Sacramento Municipal Utility District
Sealaska
Siemens Corp.
Sempra Energy
Southern California Edison Co.
3M Co.
Xerox Corp.
Zappos.com., Inc.
A list of the 26 SupplierPay participants announced in July is available here.
SupplierPay Builds on Success of Federal Government’s QuickPay Initiative
SupplierPay builds on the success of the Federal Government’s QuickPay initiative, which President Obama launched in 2011 and renewed in July to help accelerate payments to federal small business subcontractors. Under QuickPay, the federal government pays its large contractors faster and, in return, requires them to pay their small business subcontractors faster.
SupplierPay Impact
SupplierPay companies participating in today’s meeting will be providing updates on how they are implementing this initiative and accelerating payments to their small suppliers. Among the examples that will be discussed:
Intuit. After taking the pledge, Intuit surveyed its supplier base and offered 10-day payment terms to 320 small businesses. Intuit also moved all of its 80+ independent contractors to contracts that committed to pay them within 10 days. Intuit’s actions will impact an estimated $40 million in payments this year, and an estimated $80 million in annual payments when more small and medium-sized suppliers are brought on board. “Prompt payment is important to small firms such as mine,” said Jeff Adams, owner of Jeff Adams Copywriting in Santee, CA.
Lockheed Martin. Lockheed Martin, the world’s largest security and aerospace company, sources more than 60 percent of its work through its supply chain, which includes more than 15,000 companies across all 50 states. More than half of these suppliers are small businesses, with whom the company did $4.9 billion worth of business in fiscal year 2014. Lockheed Martin is committed to expedited payments and is paying 100 percent of small business supplier invoices on an accelerated schedule. The company’s supplier portal flags small businesses so Lockheed Martin can accelerate payment, cutting time to payment in half to just 15 days.
Siemens. Siemens has more than 100 U.S. manufacturing sites and more than 60,000 U.S. employees. Just last year, Siemens’ Procurement & Logistics small business spending was approximately $266 million, and its spending on small and diverse companies was 16 percent of its total overall annual spending. A new participant in the SupplierPay initiative, Siemens offers small business suppliers a supply chain finance program which includes several supplier benefits such as cash flow improvement, working capital optimization, cost reduction, and cash flow transparency. About 1,300 Siemens North America suppliers participate in its supply chain finance program.
ADDITIONAL BACKGROUND:
Small businesses play a vital role in the American economy – employing half the workforce, creating about 60 percent of net new American jobs, and often being the source of the next great American innovation.
Small businesses were disproportionately impacted by the Great Recession, losing 40 percent more jobs than the rest of the private sector combined. When the President took office, small business credit markets were effectively frozen. Today, trends are moving in the right direction. For 15 straight quarters, small firms have contributed to employment growth. According to a recent survey, more than a quarter of small business owners are planning capital investments, the second highest such reading since 2008.
Small business capital access has been an area of focus for this Administration, starting with the Recovery Act in 2009 and continuing with the Small Business Jobs Act in 2010 and the JOBS Act in 2012. Collectively, this legislation has been instrumental in driving improvement from the depths of the recession. The Administration has achieved record SBA small business lending volumes and recent Federal Reserve Small Business surveys indicate improved access to financing. Yet, more can be done. Too many small businesses still struggle to access the capital they need:
A 2014 Pepperdine and D&B study reported that 66 percent of small businesses found it “difficult to raise new business financing.”
Regional survey data from the Federal Reserve Bank of New York showed that 40 percent of the roughly one-third of small businesses that applied for credit in late 2013 received either none or less than the amount they requested. And another fifth of small businesses didn’t even apply for credit, because they assumed the process was too difficult, or they would not qualify.
Capital access challenges are magnified by the fact that small businesses are waiting longer to get paid for their products and services. The amount of time it took a corporation to pay an invoice increased from an average of 35 days in March 2009 to 46 days in July 2014, according to the Georgia Tech Financial Analysis Lab. Extended payment terms mean small businesses are spending unnecessary funds to cover cash flow. These are funds that could be otherwise spent on growing their business and creating new jobs.
November 17, 2014
FACT SHEET: President Obama’s SupplierPay Initiative Expands; 20 Additional Companies Pledge to Strengthen America’s Small Businesses
Today, the White House announced an expansion of President Obama’s SupplierPay initiative, a partnership with the private sector to strengthen small businesses by increasing their working capital, so they can grow and hire more workers.
Twenty companies are joining the 26 companies that adopted the SupplierPay pledge at a launch announcement with President Obama in July. As part of the SupplierPay initiative, companies pledge to pay their small suppliers faster or enable a financing solution that helps them access working capital at a lower cost.
The SupplierPay initiative helps address the difficulties small businesses face in accessing affordable working capital. Reducing the time it takes for smaller suppliers to get paid or lowering their short-term borrowing costs enables them to devote more of their resources to investing in their business, hiring, and growing.
Also today, the Commerce Department is releasing a new report which finds that the larger companies participating in the SupplierPay initiative also have the potential to realize significant economic benefits. High working capital costs for small suppliers can get passed onto large customers in the form of lower-quality goods and services, less stable suppliers, and higher prices. Reducing working capital costs—as SupplierPay companies are doing—unlocks capital to be put to work for the benefit of large buyers, and for the entire economy, according to the report.
Today’s SupplierPay Working Session
Also today, the White House will hold a SupplierPay working session hosted by National Economic Council Director Jeff Zients and SBA Administrator Maria Contreras-Sweet. The working session will bring together both existing and new SupplierPay companies to discuss actions companies are taking to implement the SupplierPay pledge, and ensure the metrics are in place to track and measure impact of this initiative going forward.
The following new companies have signed on to SupplierPay:
Akima
Chugach Alaska
Cook Inlet Region, Inc.
ConAgra Foods, Inc.
Dominion Resources, Inc.
Dun & Bradstreet Credibility Corp.
Intel Corp.
Hallmark Cards, Inc.
Kaiser Permanente
McGraw Hill Financial, Inc.
Nova Corp., Inc.
Oracle Corp.
Sacramento Municipal Utility District
Sealaska
Siemens Corp.
Sempra Energy
Southern California Edison Co.
3M Co.
Xerox Corp.
Zappos.com., Inc.
A list of the 26 SupplierPay participants announced in July is available here.
SupplierPay Builds on Success of Federal Government’s QuickPay Initiative
SupplierPay builds on the success of the Federal Government’s QuickPay initiative, which President Obama launched in 2011 and renewed in July to help accelerate payments to federal small business subcontractors. Under QuickPay, the federal government pays its large contractors faster and, in return, requires them to pay their small business subcontractors faster.
SupplierPay Impact
SupplierPay companies participating in today’s meeting will be providing updates on how they are implementing this initiative and accelerating payments to their small suppliers. Among the examples that will be discussed:
Intuit. After taking the pledge, Intuit surveyed its supplier base and offered 10-day payment terms to 320 small businesses. Intuit also moved all of its 80+ independent contractors to contracts that committed to pay them within 10 days. Intuit’s actions will impact an estimated $40 million in payments this year, and an estimated $80 million in annual payments when more small and medium-sized suppliers are brought on board. “Prompt payment is important to small firms such as mine,” said Jeff Adams, owner of Jeff Adams Copywriting in Santee, CA.
Lockheed Martin. Lockheed Martin, the world’s largest security and aerospace company, sources more than 60 percent of its work through its supply chain, which includes more than 15,000 companies across all 50 states. More than half of these suppliers are small businesses, with whom the company did $4.9 billion worth of business in fiscal year 2014. Lockheed Martin is committed to expedited payments and is paying 100 percent of small business supplier invoices on an accelerated schedule. The company’s supplier portal flags small businesses so Lockheed Martin can accelerate payment, cutting time to payment in half to just 15 days.
Siemens. Siemens has more than 100 U.S. manufacturing sites and more than 60,000 U.S. employees. Just last year, Siemens’ Procurement & Logistics small business spending was approximately $266 million, and its spending on small and diverse companies was 16 percent of its total overall annual spending. A new participant in the SupplierPay initiative, Siemens offers small business suppliers a supply chain finance program which includes several supplier benefits such as cash flow improvement, working capital optimization, cost reduction, and cash flow transparency. About 1,300 Siemens North America suppliers participate in its supply chain finance program.
ADDITIONAL BACKGROUND:
Small businesses play a vital role in the American economy – employing half the workforce, creating about 60 percent of net new American jobs, and often being the source of the next great American innovation.
Small businesses were disproportionately impacted by the Great Recession, losing 40 percent more jobs than the rest of the private sector combined. When the President took office, small business credit markets were effectively frozen. Today, trends are moving in the right direction. For 15 straight quarters, small firms have contributed to employment growth. According to a recent survey, more than a quarter of small business owners are planning capital investments, the second highest such reading since 2008.
Small business capital access has been an area of focus for this Administration, starting with the Recovery Act in 2009 and continuing with the Small Business Jobs Act in 2010 and the JOBS Act in 2012. Collectively, this legislation has been instrumental in driving improvement from the depths of the recession. The Administration has achieved record SBA small business lending volumes and recent Federal Reserve Small Business surveys indicate improved access to financing. Yet, more can be done. Too many small businesses still struggle to access the capital they need:
A 2014 Pepperdine and D&B study reported that 66 percent of small businesses found it “difficult to raise new business financing.”
Regional survey data from the Federal Reserve Bank of New York showed that 40 percent of the roughly one-third of small businesses that applied for credit in late 2013 received either none or less than the amount they requested. And another fifth of small businesses didn’t even apply for credit, because they assumed the process was too difficult, or they would not qualify.
Capital access challenges are magnified by the fact that small businesses are waiting longer to get paid for their products and services. The amount of time it took a corporation to pay an invoice increased from an average of 35 days in March 2009 to 46 days in July 2014, according to the Georgia Tech Financial Analysis Lab. Extended payment terms mean small businesses are spending unnecessary funds to cover cash flow. These are funds that could be otherwise spent on growing their business and creating new jobs.
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