Wednesday, November 26, 2014

SEC ANNOUNCES COURT ENTERS JUDGEMENT AGAINST BOILER ROOM OPERATOR

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23140 / November 24, 2014

Securities and Exchange Commission v. Edward M. Laborio, Jonathan Fraiman, Matthew K. Lazar, Envit Capital, LLC, Envit Capital Group, Inc., Envit Capital Holdings, Inc., Envit Capital Private Wealth Management, LLC, Envit Capital Multi Strategy Mixed Investment Fund I LP, Aetius Group PLC, and Aetius Group LLC, Civil Action No. 1:12-cv-11489-PBS, (District of Massachusetts, Complaint filed August 10, 2012)

United States v. Edward Laborio and Jonathan Fraiman, 12-cr-10238-FDS-JGD (District of Massachusetts)

Court Enters Judgments Against Former Massachusetts-Based Boiler Room Operator and His Companies, Also Indicted by Grand Jury

The Securities and Exchange Commission announced that on November 18, 2014, the federal court in Boston, Massachusetts, entered final judgments against defendant Edward M. Laborio and his group of related entities, most with the name "Envit," in a boiler room scheme case filed by the Commission in 2012. The judgments permanently enjoin Laborio and the Envit entities from violating various sections of the federal securities laws, bars Laborio from certain parts of the securities industry, and orders Laborio and the entities to pay a total of $37,006,590 in disgorgement of ill-gotten gains, prejudgment interest, and civil penalties.

On August 10, 2012, the Commission filed a complaint against Laborio, Jonathan Fraiman, Matthew K. Lazar, and seven entities owned and controlled by Laborio, including a non-existent hedge fund, alleging that they participated in a boiler room scheme that raised more than $4 million from approximately 150 investors between October 2006 and late August 2009 through the use of false promises and pressurized sales tactics.

The court entered the judgments by default permanently enjoining:

Laborio, Envit Capital, LLC ("Envit LLC"), Envit Capital Group, Inc. ("Envit Group"), Envit Capital Holdings, Inc. ("Envit Holdings"), Envit Capital Private Wealth Management, LLC ("Envit Wealth"), Envit Capital Multi Strategy Mixed Investment Fund I LP ("Envit Fund"), Aetius Group, PLC ("Aetius PLC"), and Aetius Group, LLC ("Aetius LLC") from future violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder;

Laborio and Envit Wealth from future violations of Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder;

Laborio, Envit LLC, Envit Group, Envit Holdings, and Aetius PLC from future violations of Section 5 of the Securities Act;

Envit Fund and Aetius LLC from future violations of Section 7(a) of the Investment Company Act of 1940; and

Laborio from future violations of Section 15(a)(1) and 16(a) of the Exchange Act and Rule 16a-3 thereunder.
The judgments also order civil penalties of $4 million against Laborio and each of the Envit entities, and orders Laborio and the entities to disgorge, jointly and severally, $5,006,590 in ill-gotten gains plus prejudgment interest. Laborio's judgment also bars him from serving as an officer or director of a public company and from participating in any offering of penny stock.

On October 8, 2013, the court entered a judgment against Fraiman, enjoining him from future violations of the antifraud provisions of the federal securities laws. On October 11, 2013, the Commission issued an Order barring Fraiman from any future association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, with the right to reapply after ten years. Fraiman consented to both the judgment and the Commission Order.

On November 27, 2013, the court entered a judgment against Lazar, enjoining him from future violations of the antifraud provision of the federal securities laws. On December 11, 2013, the Commission issued an Order barring Lazar from any future association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, with the right to reapply after three years. Lazar consented to both the judgment and the Commission Order.

In a parallel criminal case, on August 7, 2014, a federal Grand Jury in the District of Massachusetts indicted Laborio and Fraiman on one count of conspiracy and one count of mail fraud for their roles in the Envit boiler room scheme. Also on August 7, 2014, a Magistrate Judge of the United States District Court for the District of Massachusetts issued arrest warrants for Laborio and Fraiman. Fraiman was arrested on August 27, 2014. Laborio is currently a fugitive.

For more information, see Exchange Act Release No. 34-59900 (May 12, 2009) [Order suspending trading in Envit Group securities]; Initial Decision Release No. 385 (August 13, 2009) [Initial decision revoking registration of Envit Group securities]; Exchange Act Release No. 60658 (September 11, 2009) [Notice of final decision revoking registration of Envit Group securities]; Litigation Rel. No. 22444 (August 10, 2012) [Civil Complaint]; Litigation Rel. No. 22836 (October 8, 2013) [Fraiman settlement]; Exchange Act Release No. 70678 (October 11, 2013) [Fraiman Order]; Litigation Release No. 22881 (December 2, 2013) [Lazar settlement]; Exchange Act Release No. 71043 (December 11, 2013) [Lazar Order].

U.S. ACCUSES SANDWICH CO. OF DISTRIBUTING FOOD MADE IN INSANITARY CONDITIONS

FROM:  U.S. JUSTICE DEPARTMENT  
Friday, November 21, 2014
United States Files Enforcement Action Against Michigan Sandwich Company and Co-Owner to Stop Distribution of Adulterated Products

A civil complaint was filed in federal court in Michigan against Scotty’s Incorporated of Detroit and its co-owner and manager, Sandra Jackson, to prevent the distribution of adulterated sandwiches, the Department of Justice announced today.

According to the complaint, Scotty’s Incorporated, which does business as Bruce Enterprises and Bruce’s Fresh Products, prepares and distributes ready-to-eat (RTE) sandwiches, including RTE tuna sandwiches.  The complaint alleges that the company’s sandwiches are manufactured in insanitary conditions, and that the company’s procedures are inadequate to ensure the safety of its products.  Moreover, the company has failed to implement a written Hazard Analysis and Critical Control Point (HACCP) plan for handling seafood and minimizing the potential for harmful contamination in the company’s RTE tuna sandwiches.  The Justice Department filed the injunction action in the Eastern District of Michigan at the request of the U.S. Food and Drug Administration (FDA).

“Seafood poses well-known risks when it is transported from ship to shore, but these risks can be effectively mitigated if companies handling seafood take proper precautions,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division.  “The Department of Justice will take all appropriate measures to protect the safety of the seafood consumers eat.”

According to the complaint, the FDA has performed five inspections of the defendants’ facility since 2006 and documented insanitary practices and/or seafood HACCP violations every time.  These inspections revealed that the company’s RTE sandwiches are adulterated within the meaning of the Food, Drug, and Cosmetic Act because they are prepared, packed or held under insanitary conditions in which they may have become contaminated with filth or rendered injurious to health.  The complaint alleges, for example, that since 2006, the company was repeatedly told to develop a written HACCP plan recognizing the inherent risks of toxin formation in tuna and enumerating plans to take corrective action when tuna is not properly handled.

Tuna that is not chilled rapidly or stored at sufficiently lower temperatures is at increased risk for the formation of scombrotoxin.  The toxin can be adequately controlled when tuna is chilled after death and maintained at a cold temperature throughout storage and distribution.  In the event that the tuna is not properly maintained, scombrotoxin readily forms and cannot be removed or destroyed through subsequent washing, freezing or cooking of the tuna.  Consumption of fish containing high levels of scombrotoxin may cause scombrotoxin poisoning, the symptoms of which may include burning sensations in the mouth or throat, dizziness, nausea, vomiting, headaches, diarrhea, rashes, hives, a drop in blood pressure, constriction of the air passage, heart palpitations and respiratory distress.

According to the complaint, the FDA’s most recent inspection was conducted between January 14 and February 6.  At the inspection, according to the complaint, the FDA found that the defendants failed to have and implement an HACCP plan for food safety hazards reasonably likely to occur.  There were also no sanitation control records documenting the safety of, among other things, water used at the facility; the cleanliness of surfaces, utensils and equipment coming into contact with food; maintenance of hand-sanitizing machines and bathrooms; exclusion of pests from the facility; and control of employee health conditions such as the wearing of jewelry, hair nets or beard covers.

The government is represented by Trial Attorney Dan Baeza of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Peter Caplan of the Eastern District of Michigan, with the assistance of Assistant Chief Counsel for Enforcement Christopher Fanelli of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.

Tuesday, November 25, 2014

READOUT: VP'S CALL WITH ROMANIAN PRESIDENT-ELECT KLAUS IOHANNIS

FROM:  THE WHITE HOUSE 
November 25, 2014
Readout of the Vice President’s Call with Romanian President-elect Klaus Iohannis

Vice President Joe Biden called Romanian President-elect Klaus Iohannis to congratulate him on his election victory, noting the impressive voter turnout as a sign of a strong and healthy democracy. The Vice President underscored the strength of the bilateral relationship and expressed appreciation for Romania’s contributions to NATO, its support for Ukraine, and its efforts to degrade and defeat ISIL. The Vice President expressed his condolences for the loss of life in the November 21 helicopter accident and thanked Romania for its sacrifices as part of the International Security Assistance Force in Afghanistan. Finally, the Vice President and President-elect Iohannis discussed the critical importance of rule of law reforms, both as a driver of economic growth and as a national security issue.

SECRETARY KERRY'S REMARKS ON INTERNATIONAL DAY FOR THE ELIMINATION OF VIOLENCE AGAINST WOMEN

FROM:  U.S. JUSTICE DEPARTMENT 
International Day for the Elimination of Violence Against Women and 16 Days of Activism
Press Statement
John Kerry
Secretary of State
Washington, DC
November 25, 2014

Today, we mark the International Day for the Elimination of Violence Against Women, and the start of 16 Days of Activism Against Gender Violence. Over the next two weeks, U.S. embassies and missions around the world will all be working to raise awareness of the irreparable harm caused by gender-based violence.

This issue is seared into me. As a young prosecutor, I saw women and young girls whose lives and families were ripped apart by violence. I will never forget seeing women in dark glasses and long-sleeved shirts worn to cover up the black eyes and bruises of abuse. I couldn’t help but think about them as my two daughters went out into the world. As a Senator, working with Joe Biden and Cathy Russell, long before any of us were in the Administration, I helped pass the Violence Against Women Act.

In recent years, I’ve seen firsthand how much work remains to be done all across the globe, not just here at home. I saw it as a Senator, and I’ve seen it even more as Secretary. On my latest visit to Africa, while in Kinshasa, I toured a fistula clinic at St. Joseph’s Hospital. I spoke with doctors and activists alike who have devoted their life’s work to healing the scars left by sexual violence. And I listened to young women tell heartbreaking stories of their pain and ongoing recovery from the physical and emotional wounds left by their brutal assaults. These women were brave; they were extraordinarily strong. I came away inspired by their determination to make sure that no woman goes through the same ordeal as they did ever again.

Simply put, we must all do more to end violence against women in all its forms, wherever and whenever it occurs, and it starts by acknowledging it. There can be no conspiracy of silence.

The sad truth is that one in three women will experience gender-based violence in her lifetime. This violence knows no class, religious, or racial boundaries. And it comes at a terrible cost – not only for the woman or girl, but for families, communities, and entire countries. Preventing it is the only way to achieve a future of peace, stability, and prosperity.

Over the past year, the United States has worked to up our game battling gender-based violence across the globe. Through our Gender-based Violence Emergency Response and Protection Initiative, we help meet the immediate security needs of survivors. The Safe from the Start initiative is sending experts into the field to prevent gender-based violence in conflict zones and regions devastated by natural disasters. We are also working to address the scourge of early and forced marriage, most recently launching a program in Benin. And this past summer, I was proud to launch our partnership with Together for Girls to collect data on the consequences of sexual violence against children and provide a foundation to mobilize responses to new outbreaks of violence.

We will not turn away in the face of evil and brutality. We stand up, and we reaffirm that sexual violence will be not be tolerated. Not now, not ever.

U.S. ANNOUNCES TWO CHARGED WITH CONSPIRING TO PROVIDE MATERIAL SUPPORT TO ISIL

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, November 25, 2014
Two Minnesotans Charged with Conspiracy to Provide Material Support to the Islamic State of Iraq and the Levant
18-year-old Somali American Stopped at Minneapolis/Saint Paul Airport before Boarding Flight to Turkey

Assistant Attorney General for National Security John P. Carlin and United States Attorney for the District of Minnesota Andrew M. Luger today announced a criminal complaint charging Abdi Nur, 20, and Abdullah Yusuf, 18, with conspiracy to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL).  Nur is additionally charged with providing material support to a foreign terrorist organization.  Yusuf is expected to make an initial appearance at 2:00 p.m. today before Magistrate Judge Janie S. Mayeron in United States District Court in Minneapolis, Minnesota.

“More than 16,000 recruits from over 90 countries traveled to Syria to become foreign terrorist fighters with alarming consequences,” said Assistant Attorney General Carlin.  “This is a global crisis and we will continue our efforts to prevent Americans from joining the fight and to hold accountable those who provide material support to foreign terrorist organizations.  With these two defendants, we have now charged more than 15 individuals with offenses related to the foreign fighter threat in Syria.”

“As charged, these two young men conspired to join ISIL and travel from Minnesota to the Middle East to engage in a campaign of terror in support of a violent ideology,” said U.S. Attorney Luger.  “Since al-Shabaab began recruiting young adults from the Twin Cities in 2007, our region has lost dozens of disaffected young people to terrorist organizations that would sooner see Somali Minnesotans die on foreign battlefields than prosper in peace and security in the United States.  The law-abiding members of Minnesota’s Somali community are great partners in our fight against terror, and I am proud to work closely with community and religious leaders to lift up those Somali youth who remain vulnerable to terrorist recruiters.  Unfortunately, Yusuf and Nur were not the first – and may not be the last – to conspire in support of ISIS.  As we work with our many partners to improve the lives of Somali Minnesotans, we will continue to investigate and prosecute aggressively criminals who provide support for terror.”

“The FBI remains committed to both its community partners and to its law enforcement mandate concerning the detection and disruption of terrorist activity,” said FBI Special Agent in Charge Richard T. Thornton for the Minneapolis Division.  “This complaint epitomizes the FBI's commitment to upholding the laws of the United States as they apply to those who would support terrorism.”

According to the criminal complaint and documents filed in court, on April 28, 2014, Abdullahi Yusuf applied for an expedited passport at the Minneapolis Passport Office.  He told the passport specialist that he intended to travel to Turkey, but when asked, Yusuf could not specify his travel itinerary, travel companions, hotel location or the name or address of a friend in Turkey who he claimed to have met recently via Facebook.  The passport specialist also asked Yusuf about the cost of his trip, which Yusuf reported as, “about $1,500.”  However, Yusuf had no known source of income.  Yusuf obtained his passport on May 5, 2014, and used it to open a checking account on the same day.

According to the criminal complaint and documents filed in court, on May 23, 2014, Yusuf deposited $1,500 in cash into his Wells Fargo checking account in four separate ATM deposits spread throughout the day.  On May 24, 2014, Yusuf used a debit card associated with the same account to purchase a $1,417.05 airline ticket from Minneapolis/Saint Paul to Istanbul, Turkey.  The ticket was for a flight scheduled to depart Minneapolis/Saint Paul on May 28, 2014.  His parents did not know that Yusuf had obtained a passport and planned to travel to Turkey, nor did they know that he had acquired $1,500 and purchased an airline ticket.

Yusuf is associated with H.M., a former Minnesota resident now believed to be fighting in Syria, and who traveled from Minnesota to Turkey on March 9, 2014.  The same debit card was used to purchase H.M.’s airline ticket as was used to purchase an airline ticket for  a third man from Minnesota who later traveled to Syria to fight with  ISIL.  Yusuf exchanged several telephone calls and text messages with H.M. in the days before YUSUF attempted to depart for Turkey.

On the morning of May 28, 2014, Yusuf’s father drove him to school.  Approximately one hour after arriving at school, Yusuf walked to a mosque near his school.  Yusuf left the mosque and was driven to a light rail station from which Yusuf departed for the airport.  At the airport, Yusuf was advised by agents from the Federal Bureau of Investigation (FBI) that he would not be permitted to travel to Turkey as he had planned.

According to the criminal complaint and documents filed in court, Abdi Nur departed from the Minneapolis/Saint Paul airport for Istanbul, Turkey on May 29, 2014.  Prior to his departure, on April 24, 2014, Nur obtained an expedited U.S. passport.  On May 24, 2014, Nur made an ATM deposit of $1,540 in cash to his checking account.  On May 27, 2014, Nur purchased an airline ticket for $1,619.30, using a debit card associated with the same checking account.  Like Yusuf, Nur was unemployed when he purchased his airline ticket.  Nur successfully boarded a flight for Turkey on May 29, 2014.  He was scheduled to return to the United States on June 16, 2014, but did not.

According to the criminal complaint and documents filed in court, Nur had become “much more religious,” in the two months preceding his departure, including talking about how his family needed to pray more and wear more traditional clothing.  Nur began to talk about jihad during this time period.

According to the criminal complaint and documents filed in court, Nur has communicated via Facebook with an individual in the United States after his departure for Turkey.  During those communications, Nur stated that he has gone “to the brothers,” and that we “will see each other in the afterlife inshallah,” and “im not coming back” (sic).  Nur has also communicated with a separately charged defendant, Mohamed Abdullahi Hassan, aka “Miski.”

According to the criminal complaint and documents filed in court, after asking Nur if he knew “Duale” (a U.S. citizen known to have traveled to Syria), Miski advised Nur “…Being connected in Jihad make you stronger and you can all help each other by fulfilling the duties that Allah swt (sic) put over you…Like us in Somalia the brothers from mpls are well connected so try to do the same….It is something we have learned after 6 years in Jihad.”

This case is the result of an investigation conducted by the FBI.  The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

U.S. CONGRATULATES PEOPLE OF SURINAME ON THEIR INDEPENDENCE DAY

FROM:  U.S. STATE DEPARTMENT  
Suriname's Independence Day
Press Statement
John Kerry
Secretary of State
Washington, DC
November 25, 2014

On behalf of President Obama and the people of the United States, I congratulate the people of Suriname on the 39th anniversary of your independence on November 25.

The United States and Suriname collaborate on issues important to both our countries and the region.

We are working to enhance the security and prosperity of our citizens through the Caribbean Basin Security Initiative, stop the spread of HIV/AIDS through PEPFAR, and strengthen military-to-military cooperation.

On behalf of the people of the United States, I wish you the best during your Independence Day celebrations.

AG HOLDER'S STATEMENT ON CONCLUSION OF GRAND JURY PROCEEDING IN MICHAEL BROWN SHOOTING

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, November 24, 2014
Attorney General Holder Statement on the Conclusion of the Grand Jury Proceeding in the Shooting of Michael Brown

Attorney General Eric Holder released the following statement Monday regarding the conclusion of the St. Louis County grand jury proceeding in the shooting of Michael Brown:

“While the grand jury proceeding in St. Louis County has concluded, the Justice Department’s investigation into the shooting of Michael Brown remains ongoing.  Though we have shared information with local prosecutors during the course of our investigation, the federal inquiry has been independent of the local one from the start, and remains so now.  Even at this mature stage of the investigation, we have avoided prejudging any of the evidence.  And although federal civil rights law imposes a high legal bar in these types of cases, we have resisted forming premature conclusions.

“Michael Brown’s death was a tragedy.  This incident has sparked a national conversation about the need to ensure confidence between law enforcement and the communities they protect and serve.  While constructive efforts are underway in Ferguson and communities nationwide, far more must be done to create enduring trust.  The Department will continue to work with law enforcement, civil rights, faith and community leaders across the country to foster effective relationships between law enforcement and the communities they serve and to improve fairness in the criminal justice system overall.  In addition, the Department continues to investigate allegations of unconstitutional policing patterns or practices by the Ferguson Police Department.

“Though there will be disagreement with the grand jury's decision not to indict, this feeling should not lead to violence.  Those who decide to participate in demonstrations should remember the wishes of Michael Brown's parents, who have asked that remembrances of their son be conducted peacefully.  It does not honor his memory to engage in violence or looting.  In the coming days, it will likewise be important for local law enforcement authorities to respect the rights of demonstrators, and deescalate tensions by avoiding excessive displays—and uses—of force.”

CHICAGO MAN SENTENCED TO PRISON, HOME CONFINEMENT FOR FAILING TO FILE FEDERAL INCOME TAX

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, November 19, 2014
Chicago Businessman Sentenced for Failing to File Tax Returns

A prominent Chicago businessman was sentenced today to serve six months in prison and six months home confinement, to be followed by one year supervised release and ordered to cooperate in paying taxes owed to the Internal Revenue Service (IRS) for willfully failing to file federal individual income tax returns, announced the Justice Department.

On June 12, a criminal information filed in the U.S. District Court for the Northern District of Illinois in Chicago alleged that Jamie Viteri had willfully failed to file individual income tax returns for tax years 2007, 2008 and 2009.  According to the plea agreement, Viteri earned substantial income that he did not report to the IRS from a company and a state agency.  Viteri’s gross income exceeded $270,000 in 2008 and $290,000 in 2009.  He was the president and chief executive officer of Viteri Inc., doing business as Chicago Latino Network (CLN), a solely owned media company focused on the Latino community in Chicago.  Viteri was also an employee and managing director of the Bureau of Entrepreneurship and Small Business at the Department of Commerce and Economic Opportunity, an Illinois state government agency.

The case was investigated by special agents from IRS-Criminal Investigation and prosecuted by Trial Attorney Christopher Maietta of the Justice Department’s Tax Division.

STATE DEPARTMENT OFFICIALS REMARKS ON PROJECT SAPPHIRE

FROM:  U.S. STATE DEPARTMENT 
Project Sapphire 20 Years Later
Remarks
Richard E. Hoagland
Principal Deputy Assistant Secretary, Bureau of South and Central Asian Affairs
Center for Strategic and International Studies (CSIS)
Washington, DC
November 17, 2014

(As Prepared)

Ambassador Umarov, Senator Nunn, Senator Lugar (the distinguished senator from my home state of Indiana), honored guests, ladies and gentlemen: It is such an honor to participate in this conference marking the 20th Anniversary of Project Sapphire. Thank you to the Center for Strategic and International Studies (CSIS) for making this important dialogue possible. This is a hugely significant anniversary, and I am grateful that CSIS and the Embassy of Kazakhstan have made this public event possible. I have to admit, I feel a little bit like the U.S. Zelig of Central Asia, because I’ve been there since 1993 – and am so proud to have been there.

After the United States became the first country to recognize Kazakhstan’s independence in 1991, our two nations built a foundation of mutual trust, working together to prevent the proliferation of weapons of mass destruction. There is no better symbol of that trust than Project Sapphire, which rid Kazakhstan of approximately 600 kilograms or weapons grade uranium.

Kazakhstan, this new member of the community of nations, through its decision to carry out Project Sapphire, earned respect from around the world for its commitment to strengthening global security and for its support for international norms.

Since then, Kazakhstan has been at the forefront of nuclear nonproliferation efforts and a major force in the multilateral institutions that underpin those efforts. And nuclear nonproliferation cooperation remains a seminal pillar of the U.S.-Kazakhstan strategic partnership.

We appreciate Kazakhstan’s ongoing participation in the Nuclear Security Summit process – a priority for President Obama. The Summits have been an important venue in helping to secure vulnerable nuclear material worldwide, and Kazakhstan’s contributions in this regard have been very valuable.

For example, Kazakhstan shut down the BN-350 reactor on the Caspian coast and shipped its spent fuel to secure storage. I was there at the dedication ceremony, outside Kurchatov, snow sweeping across the steppe, and I was deeply proud – and deeply moved – to be privileged to represent my country at that important event. In other milestones of nuclear non-proliferation, Kazakhstan down-blended 33 kilograms of highly enriched uranium from its Institute of Nuclear Physics (INP) to low enriched uranium, and it also secured weapon-usable nuclear material at the Semipalatinsk Test Site through upgraded physical protection.

We are also proud of our growing partnership on science and technology and anticipate deepening our collaboration with Kazakhstan through the International Science and Technology Center (ISTC), which Kazakhstan will host at Nazarbayev University in Astana beginning in 2015.

The ISTC has played a pivotal role in the prevention of WMD-expertise proliferation over the past two decades, and Kazakhstan’s leadership in hosting the Center will be critical to the continued success of the organization.

Kazakhstan is also working with the United States on another priority issue. In his April 2009 Prague speech, President Obama called for the creation of a bank of low enriched uranium (LEU) under the International Atomic Energy Agency’s auspices, as part of a new framework for civil nuclear cooperation.

The fuel bank will provide an emergency backup source of reactor fuel in the event that the international market could not meet a country’s needs, and would thereby support the expansion of peaceful nuclear energy without increasing the risk of nuclear weapons proliferation. We support the LEU bank and appreciate Kazakhstan’s offer to host it.

In conclusion, today Kazakhstan is a leader in the region and a strong partner of the United States. It continues to set high goals and is taking on a leadership role on the global stage. The United States and Kazakhstan have an ambitious agenda together to address the challenges of the 21st century, whether in preventing the proliferation of nuclear weapons or in building an open and inclusive trade network linking Central and South Asia with China and Europe. This is a great expansion from Project Sapphire 20 years ago. I want to assure you that our broadening cooperation will help us to achieve these goals.

CROP PRODUCTION MAY CAUSE GREATER CHANGES IN SEASONS

FROM:  NATIONAL SCIENCE FOUNDATION 
Boosts in productivity of corn and other crops modify Northern Hemisphere carbon dioxide cycle
Croplands help drive greater seasonal change in annual cycle

Each year in the Northern Hemisphere, levels of atmospheric carbon dioxide drop in the summer as plants "inhale," then climb again as they exhale after the growing season.

During the last 50 years, the size of this seasonal swing has increased by as much as half, for reasons that aren't fully understood.

Now a team of researchers has shown that agricultural production may generate up to a quarter of the increase in this seasonal carbon cycle, with corn playing a leading role.

"This study shows the power of modeling and data mining in addressing potential sources contributing to seasonal changes in carbon dioxide," says Liz Blood, program director for the National Science Foundation's MacroSystems Biology Program, which funded the research. "It points to the role of basic research in finding answers to complex problems."

In the Northern Hemisphere, there's a strong seasonal cycle of vegetation, says scientist Mark Friedl of Boston University (BU), senior author of a paper reporting the results in this week's issue of the journal Nature.

"Something is changing about this cycle," says Friedl. "Ecosystems are becoming more productive, pulling in more atmospheric carbon during the summer and releasing more during the dormant period."

Most of this annual change is attributed to the effects of higher temperatures driven by climate change--including longer growing seasons, quicker uptake of carbon by vegetation and the "greening" of higher latitudes with more vegetation.

"But that's not the whole story," says Josh Gray of BU, lead author of the paper. "We've put humans and croplands into the story."

The scientists gathered global production statistics for four leading crops--corn, wheat, rice and soybeans--that together represent about 64 percent of all calories consumed worldwide.

They found that production of these crops in the Northern Hemisphere has more than doubled since 1961 and translates to about a billion metric tons of carbon captured and released each year.

These croplands are "ecosystems on steroids," says Gray, noting that they occupy about 6 percent of the vegetative land area in the Northern Hemisphere, but are responsible for up to a quarter of the total increase in seasonal carbon exchange of atmospheric carbon dioxide.

The growth in seasonal variation doesn't have a huge impact on global terrestrial carbon uptake and release, he says, since carbon gathered by the crops is released each year.

However, understanding the effects of agricultural production, the researchers maintain, will help improve models of global climate, particularly in discovering how well ecosystems will buffer rising levels of carbon dioxide in the future.

The BU investigators collaborated with a team of scientists, including Eric Kort of the University of Michigan, Steve Frolking of the University of New Hampshire, Christopher Kucharik of the University of Wisconsin, Navin Ramankutty of the University of British Columbia and Deepak Ray of the University of Minnesota.

The work highlights extraordinary increases in crop production in recent decades.

"These indications of increased productivity speak well for agriculture," says Tom Torgersen, program director for the National Science Foundation's Water Sustainability and Climate Program, which also funded the research. "But such enhanced agricultural productivity makes significant demands on water supplies, which will require further investigation. "

Adds Friedl, "It's a remarkable story of what we've done in agriculture in general. And in particular in corn, which is one crop that's just exploded."

Corn alone accounts for two-thirds of the crop contribution to the increased seasonal exchange in carbon, he says. Almost 90 percent is produced in the midwestern United States and China.

"Over the last 50 years, the area of croplands in the Northern Hemisphere has been relatively stable, but production has intensified enormously," Friedl says.

"The fact that this land area can affect the composition of the atmosphere is an amazing fingerprint of human activity on the planet."

-NSF-

Media Contacts
Cheryl Dybas, NSF

DOJ ANNOUNCES OPPORTUNITIES FOR FUNDING FOR PUBLIC SAFETY IN NATIVE AMERICAN COMMUNITIES

FROM:  U.S. JUSTICE DEPARTMENT  NATIVE AMERICAN COMMUNITIES, PUBLIC SAFETY
Thursday, November 20, 2014
Justice Department Announces Funding Opportunities for Public Safety Projects in Indian Country

The Department of Justice today announced the opening of the grant solicitation period for comprehensive funding to support public safety, victim services and crime prevention improvements in American Indian and Alaska Native communities.  The department’s Fiscal Year (FY) 2015 Coordinated Tribal Assistance Solicitation (CTAS) was posted today at www.justice.gov/tribal/open-sol.html. The solicitation closes on Feb. 24, 2015.

“The Department of Justice is making a concerted effort – one that we are building on every year – to expand our reach to tribes and make resources more widely available to our partners in Indian country,” said Assistant Attorney General Karol V. Mason for the Office of Justice Programs.  “This solicitation addresses an array of tribal justice system issues and will give tribes access to the support they need to keep their communities safe and ensure a just, fair, and effective system for fighting crime.”

CTAS is administered by the Justice Department’s Office of Justice Programs (OJP), Office of Community Oriented Policing Services (COPS), and Office on Violence Against Women (OVW).  The funding can be used to enhance law enforcement; bolster adult and juvenile justice systems; prevent and control juvenile delinquency; serve sexual assault, domestic violence and elder victims; and support other efforts to combat crime.  To view the FY 2015 CTAS, visit www.justice.gov/sites/default/files/tribal/pages/attachments/2014/11/19/ctas_fy-2015_solicitation.pdf.

Applications for CTAS are submitted through the Justice Department’s Grants Management System (GMS) which enables grantees to register and apply for CTAS online.  Applicants must register with GMS prior to submitting an application.  An applicant will not be able to submit an application without registering in GMS before the application deadline of 9:00 p.m. Eastern Time (ET), Feb. 24, 2015.

The FY 2015 CTAS reflects improvements and refinements from earlier versions.  Feedback was provided to the department during tribal consultations and listening sessions, and includes tribal leaders’ request to improve and simplify the DOJ grant-making process.  Changes to DOJ grant programs, enacted with the passage of the Tribal Law and Order Act, are incorporated into the CTAS solicitation and in the appropriate purpose areas.  For more information about changes to the CTAS Solicitation from last year, read the FY 2015 CTAS fact sheet.

For the FY2015 CTAS, a tribe or tribal consortium may submit a single application and select from nine competitive grant programs referred to as Purpose Areas.  This approach allows the department’s grant-making components to consider the totality of a tribal nation’s overall public safety needs.

The nine purpose areas are:

Comprehensive Tribal Justice Systems Strategic Planning (OJP/COPS/OVW)

Public Safety and Community Policing (COPS)

Justice Systems, and Alcohol and Substance Abuse (BJA)

Corrections and Correctional Alternatives (BJA)

Violence Against Women Tribal Governments Program (OVW)

Children’s Justice Act Partnerships for Indian Communities (OVC)

Comprehensive Tribal Victim Assistance Program (OVC)

Juvenile Justice Wellness Courts (OJJDP)

Tribal Youth Program (OJJDP)

Tribes or tribal consortia may also be eligible for non-tribal government-specific federal grant programs and are encouraged to explore other funding opportunities for which they may be eligible.  Additional funding information may be found at www.grants.gov or the websites of individual agencies.

Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in tribal communities.

EXPORT-IMPORT BANK, WTC NEW ORLEANS WORK TO BOOST LOCAL EXPORTS

FROM:  U.S. EXPORT-IMPORT BANK 
Ex-Im Bank Joins with World Trade Center New Orleans to Boost Local U.S. Exports 

WASHINGTON, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) has joined forces with the World Trade Center New Orleans to assist local businesses to boost their export sales and add quality American jobs as part of Ex-Im Bank's City/State Program.

The City/State Program helps ensure that Ex-Im Bank's export finance products are more accessible to small and medium-sized businesses by way of local, state, and regional economic development and business support organizations. Each City/State Program member pledges to make financing assistance and entrepreneurial services available to local businesses in order to create, promote, and expand exports from their area. Ex-Im Bank provides members with free marketing and training materials, qualified finance experts to speak at members’ local events, assistance with outreach and counseling, and access to a network of lenders, insurance brokers, and U.S. Government export resources.

The program is expected to accelerate export business and job growth by connecting Bank products and services to a statewide network of Small Business Development Centers (SBDCs).
“Ex-Im Bank has a lot to offer New Orleans businesses that wish to expand their export reach, and this program will put Ex-Im's financing benefits on display for them,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “Exporters can learn about Express Insurance and other cost-effective tools the Bank provides, and use those tools to increase global sales and local job growth.”

“We’re very excited about this new partnership with the Ex-Im Bank after working together over the course of several months to get to this point,” Dominik Knoll, CEO, World Trade Center of New Orleans said. “This partnership furthers our ability to provide Louisiana businesses with the financial resources and information they need to expand internationally. The Export-Import Bank of the United States is an invaluable financial resource that has cleared the pathway for thousands of exporting businesses throughout the United States and we look forward to being a local resource for Louisiana businesses interested in those same financial opportunities.”

ABOUT EX-IM BANK:

Ex-Im Bank is an independent federal agency that supports and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. The Bank provides a variety of financing mechanisms, including working capital guarantees and export credit insurance, to promote the sale of U.S. goods and services abroad. Ninety percent of its transactions directly serve American small businesses.

In fiscal year 2014, Ex-Im Bank approved $20.5 billion in total authorizations. These authorizations supported an estimated $27.5 billion in U.S. export sales, as well as approximately 164,000 American jobs in communities across the country.

Small business exporters can learn about how Ex-Im Bank products can empower them to increase foreign sales by clicking here. For more information about Ex-Im, visit www.exim.gov.

ABOUT THE WORLD TRADE CENTER OF NEW ORLEANS:

The World Trade Center of New Orleans (WTCNO) is the strongest international business organization in the Gulf Coast region, consisting of 1,000+ companies as well as high profile individual members. This membership base represents a diverse group of industry leaders, companies, professional organizations, and government institutions that include manufacturing, energy, agriculture, maritime, digital media, foreign consulates, and other interests. In 2013, member organizations were able to significantly contribute to the state’s record-breaking exports, the total value of which exceeded $63.3 billion. The mission of the World Trade Center of New Orleans is to create jobs and wealth in Louisiana through international trade, economic development, and allied activities.

Monday, November 24, 2014

11/24/14: WHITE HOUSE PRESS BRIEFING

PRESIDENT OBMAM ON THE DEPARTURE OF SECRETARY HAGEL

AIRSTRIKES STILL UNDERWAY IN SYRIA AND IRAQ

FROM:  U.S. DEFENSE DEPARTMENT 
Inherent Resolve Airstrikes Continue in Syria, Iraq
From a U.S. Central Command News Release

TAMPA, Fla., Nov. 24, 2014 – U.S. and partner-nation military forces have continued to attack Islamic State of Iraq and the Levant terrorists in Syria and Iraq over the last three days, U.S. Central Command officials reported today.
Airstrikes in Syria

Fighter and bomber aircraft have conducted nine airstrikes in Syria since Nov. 21, officials said:

-- Seven airstrikes near Kobani destroyed three ISIL fighting positions and two ISIL staging areas, damaged another ISIL staging area and suppressed four ISIL fighting positions.

-- Near Raqqah, two airstrikes struck an ISIL headquarters building.
Airstrikes in Iraq

In Iraq, fighter, attack, bomber and remotely-piloted aircraft have conducted 15 airstrikes since Nov. 21, officials said:

-- Five airstrikes near Mosul destroyed an ISIL checkpoint, three ISIL Humvees, a large ISIL unit, two tactical ISIL units and a heavy weapon.

-- Near Asad, two airstrikes destroyed a mortar position, an ISIL artillery piece, an ISIL vehicle and a tactical ISIL unit and damaged an ISIL-occupied building and an ISIL vehicle.

-- Near Baghdad, two airstrikes destroyed an ISIL-occupied building, three ISIL vehicles, an ISIL Humvee and two tactical ISIL units, one of which was emplacing roadside bombs.

-- Near Ramadi, two airstrikes destroyed two ISIL vehicles.

-- Near Tal Afar, two airstrikes suppressed a mortar position.

-- An airstrike struck an ISIL obstruction near Fallujah Dam.

-- Near Hit, an airstrike destroyed an ISIL vehicle.

All aircraft returned to base safely, Centcom officials said, noting that airstrike assessments are based on initial reports.

The strikes were conducted as part of Operation Inherent Resolve, the operation to eliminate the terrorist group ISIL and the threat they pose to Iraq, the region and the wider international community.

The destruction of ISIL targets in Syria and Iraq further limits the terrorist group's ability to project power and conduct operations, Centcom officials said.
Coalition nations conducting airstrikes in Iraq include the United States, Australia, Belgium, Canada, Denmark, France, Netherlands and the United Kingdom. Coalition nations conducting airstrikes in Syria include the United States, Bahrain, Jordan, Saudi Arabia, and the United Arab Emirates.

CHUCK HAGEL RESIGNS AS U.S. DEFENSE SECRETARY

FROM:  U.S. DEFENSE DEPARTMENT
President Announces Hagel’s Resignation as Defense Secretary
By Air Force Tech. Sgt. Jake Richmond
DoD News, Defense Media Activity

WASHINGTON, Nov. 24, 2014 – Praising Defense Secretary Chuck Hagel’s “class and integrity,” President Barack Obama announced today at the White House that Hagel will leave his post.

The president said Hagel has agreed to remain in his position until a successor is nominated and confirmed. For that, Obama said, he is “extraordinarily lucky and grateful.”

“When I asked Chuck to serve as secretary of defense, we were entering a significant period of transition,” Obama said. That transition included the drawdown in Afghanistan, the need to prepare our forces for future missions, and tough fiscal choices to keep our military strong and ready.

Last month, Obama said, Hagel came to him to discuss the final quarter of his presidency. It was then that Hagel initially determined that, having guided the department through this transition, it was an appropriate time for him to complete his service, the president added.

A Steady Hand

“Over nearly two years, Chuck has been an exemplary defense secretary,” Obama said, crediting Hagel for providing a steady hand during the modernization of the administration’s strategy and budget to meet long-term threats, while still responding to immediate challenges such as ISIL and the Ebola outbreak in West Africa.

Hagel said he is “immensely proud” of what the department has accomplished during his tenure.

“I believe we have set not only this department, the Department of Defense, but the nation on a stronger course toward security, stability and prosperity,” the secretary said.

Privileged to Serve

Hagel called his opportunity to serve as defense secretary the “greatest privilege of my life.”

In the meantime, Hagel said, “I will stay on this job and work just as hard as I have over the last couple of years, every day, every moment, until my successor is confirmed by the United States Senate.”

The United States of America can proudly claim the strongest military the world has ever known, Obama said.

“That’s the result of the investments made over many decades, the blood and treasure and sacrifices of many generations,” he said. “It’s the result of the character and wisdom of those who lead them as well, including a young Army sergeant in Vietnam who rose to serve as our nation’s 24th secretary of defense.”

PRESIDENT OBAMA'S STATEMENT ON DEATH OF MARION BARRY

FROM:  THE WHITE HOUSE
November 23, 2014
Statement by the President on the Passing of Marion Barry

Michelle and I were saddened to hear of the passing of Marion Barry. Marion was born a sharecropper's son, came of age during the Civil Rights movement, and became a fixture in D.C. politics for decades. As a leader with the Student Nonviolent Coordinating Committee, Marion helped advance the cause of civil rights for all. During his decades in elected office in D.C., he put in place historic programs to lift working people out of poverty, expand opportunity, and begin to make real the promise of home rule. Through a storied, at times tumultuous life and career, he earned the love and respect of countless Washingtonians, and Michelle and I extend our deepest sympathies to Marion's family, friends and constituents today.

U.S. DISMAYED BY LAW THAT RESTRICTS RIGHTS OF LGBT INDIVIDUALS IN GAMBIA

FROM:  U.S. STATE DEPARTMENT 
U.S. Concerned by Passage of Discriminatory Law, Arrests of LGBT Individuals
Press Statement
Jeff Rathke
Director, Bureau of Public Affairs, Office of Press Relations
Washington, DC
November 24, 2014

We are dismayed by President Jammeh’s decision to sign into law legislation that further restricts the rights of LGBT individuals and are deeply concerned about the reported arrests and detention of suspected LGBT individuals in The Gambia. These reports follow the signature into law of a bill that imposes harsh sentences for the crime of “aggravated homosexuality.” The United States strongly opposes any legislation that criminalizes consensual relations between adults. We urge the Government of The Gambia not to arrest or detain individuals solely on the basis of their perceived sexual orientation or gender identity, and to protect the human rights and fundamental freedoms of all its citizens to which they are entitled under The Gambia’s international human rights commitments. We call on the Government of The Gambia to reverse the deteriorating respect for democracy and human rights.

U.S. CONGRATULATES PEOPLE OF TUNISIA ON THEIR PRESIDENTIAL ELECTION

FROM:  U.S. STATE DEPARTMENT 
Tunisia's Presidential Election
Press Statement
John Kerry
Secretary of State
Washington, DC
November 23, 2014

I congratulate the Tunisian people on today’s presidential election. This historic moment has come about due to the strong commitment by Tunisians from across the political spectrum to democracy and the rule of law. With a continued emphasis on political and social cooperation and consensus-building, Tunisia’s democratic path will remain an inspiration to all those in the region and around the world who are working to build the foundation for an inclusive, peaceful, and prosperous future. I saw firsthand the power of Tunisia’s example when I visited earlier this year, and the United States will continue to support Tunisia’s transition and provide economic and security assistance to the Tunisian people. We look forward to the successful conclusion of Tunisia’s presidential election process by the end of this year and are committed to working with the democratically-elected government that will lead the country in the years ahead.

NASA VIDEO | HOW WILL THE 4 MMS SPACECRAFT LAUNCH AND DEPLOY?



ENERGY COMPANY TO PAY $2.5 MILLION FOR ALLEGED INVOLVEMENT IN FRAUD CONSPIRACY AGAINST UNITED STATES

WEDNESDAY, NOVEMBER 19, 2014
WASHINGTON GAS ENERGY SYSTEMS AGREES TO PAY $2.5 MILLION IN FINES AND PENALTIES FOR CONSPIRING TO OBTAIN FEDERAL CONTRACTS

Scheme Involved Energy-Related Services at Government Buildings

WASHINGTON — Washington Gas Energy Systems (WGESystems) has agreed to pay more than $2.5 million in fines and monetary penalties for conspiring to commit fraud on the United States by illegally obtaining contracts that were meant for small, disadvantaged businesses.

The court agreement was announced today by William J. Baer, Assistant Attorney General of the Antitrust Division; Principal Assistant U.S. Attorney Vincent H. Cohen Jr. of the U.S. Attorney’s Office for the District of Columbia; Robert C. Erickson, Acting Inspector General of the U.S. General Services Administration (GSA); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA), and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.

WGESystems, based in Virginia, is a wholly owned subsidiary of WGL Holdings Inc. (WGL).  WGL is the parent company for all of the corporations within the Washington Gas family.  WGESystems plays no direct role in the delivery of natural gas, and it is not a utility.  It is a design-build firm that specializes in providing energy efficiency and sustainability solutions to clients.

A criminal information was filed today in the U.S. District Court for the District of Columbia charging WGESystems with one count of knowingly and willfully conspiring to commit major fraud on the United States.  WGESystems waived the requirement of being charged by way of federal indictment, agreed to the filing of the information, and has accepted responsibility for its criminal conduct and that of its employees.

In addition, as part of a deferred prosecution agreement reached with the U.S. Attorney’s Office for the District of Columbia and the Antitrust Division, WGESystems agreed to pay a fine of $1,560,000 and a monetary penalty of $1,027,261 within five days of the approval of the agreement by the court.

According to court documents filed today, WGESystems conspired with a company that was eligible to receive federal government contracts set aside for small, disadvantaged businesses with the understanding that the business would illegally subcontract all of the work on the projects to WGESystems.  In this way, WGESystems was able to capture a total of eight contracts worth $17,711,405 that should have gone to an eligible company. These contracts, awarded in 2010, were focused on making federal buildings in the Washington, D.C., area more energy efficient.

Under the illegal agreement, the company that was awarded these government contracts was allowed to keep 5.8 percent of the value of the contracts for allowing WGESystems to use the company’s small business status to win these contracts.

“Conspiracies to violate federal procurement laws will not be tolerated,” said Assistant Attorney General Bill Baer for the Antitrust Division.  “Taxpayers deserve to have contracting processes that are fair and competitive, and fully comply with applicable laws and regulations.”

“Time and time again, we have seen government contractors abuse and exploit programs designed to help minority and socially disadvantaged small businesses,” said Principal Assistant U.S. Attorney Cohen.  “This Washington Gas subsidiary obtained millions of dollars in federal contracts by using a small business that had no ability to actually complete the contract as a front company.  Even though the subsidiary lost money on these contracts, it is required to pay $2.5 million in fines and penalties under this agreement.  This resolution should cause other contractors to think twice about playing fast and loose with federal contracting rules.”

“Cases like this are important for us to maintain the integrity of the federal contracting process,” said GSA Acting Inspector General Erickson.  “Companies cannot cheat to win federal contracts and expect to get away with their ill-gotten gains.”

“SBA’s 8(a) Business Development Program assists eligible socially and economically disadvantaged individuals in developing and growing their businesses,” said SBA Inspector General Gustafson.  “Large businesses that fraudulently seek to gain access to contracts set aside for small businesses erode the public’s trust in this important program.  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their professionalism and commitment to justice in this investigation.”

“Federal government contracting laws are in place to create a level playing field for small disadvantaged businesses whose work supports our country's diverse financial infrastructure,” said Assistant Director in Charge McCabe.  “The FBI with our law enforcement partners will investigate those companies who fraudulently abuse federal contracting laws with the purpose of increasing their company's bottom line.”

According to the court documents, until 2010, GSA had an area-wide contract with WGESystems.  This contract enabled GSA, without competition, to enter into contracts with WGESystems so that WGESystems could provide energy management services for federal buildings.

However, starting in 2010, the federal government changed its practices.  The American Reinvestment and Recovery Act appropriated funds to make buildings in the District of Columbia and the surrounding area more energy efficient.  These funds were to be awarded through the 8(a) program, which is administered by the SBA and which was created to help small, disadvantaged businesses access the federal procurement market.

To qualify for the 8(a) program, a business must be at least 51 percent-owned and controlled by a U.S. citizen (or citizens) of good character who meet the SBA’s definition of socially and economically disadvantaged.  The firm also must be a small business (as defined by the SBA) and show a reasonable potential for success.  Participants in the 8(a) program are subject to regulatory and contractual limits on subcontracting work from 8(a) set-aside contracts.  The SBA regulations require, among other things, the 8(a) concern to agree that on construction contracts it “will perform at least 15 percent of the cost of the contract with its own employees (not including the costs of materials).”

As a result of this change, WGESystems – which was not certified to participate in the 8(a) program – faced the prospect of losing millions of dollars in revenue.

WGESystems, along with an 8(a) company it used to obtain these contracts, and others, engaged in and executed a scheme to defraud the SBA and GSA by, among other things: concealing that WGESystems, which was not eligible for the aforementioned SBA contracting preferences, exercised impermissible control over the 8(a) company’s bidding for and performance on GSA contracts; and misrepresenting that the 8(a) company was in compliance with SBA regulations pertaining to work on these contracts, including that the company’s employees had performed the required percentage of work on these contracts.  Through these unlawful efforts, WGESystems and the 8(a) company with which it conspired obtained, at least, approximately $17,711,405 in U.S. government contracts related to work at eight different federal buildings.  When these contracts were awarded, the 8(a) company’s registered place of business was the president of the company’s home, and the company had no employees who could provide design-build or contracting services.

WGESystems assisted the 8(a) company with identifying a project manager for the work at the eight buildings who was nominally an employee of the 8(a) company, but who, in actuality, took direction from WGESystems employees.  For much of the relevant period, this project manager was the only employee of the 8(a) company performing work for any of the eight projects.

Under the agreement with WGESystems, the 8(a) company was entitled to 5.8 percent of the $17,711,405 total value of the contracts, which equals $1,027,261.  To date, with all but one of the eight contracts completed or suspended, WGESystems has lost approximately $1,122,581 on the projects.  WGESystems initially anticipated a profit margin that would have equaled about $1,560,000.

Since being informed of this investigation by the Justice Department, WGESystems has taken steps to enhance and optimize its internal controls, policies and procedures.

In light of the company’s remedial actions to date and its willingness to acknowledge responsibility for its actions, the U.S. Attorney’s Office for the District of Columbia and the Antitrust Division will recommend the dismissal of the Information in two years, provided WGESystems fully cooperates with, and abides by, the terms of the deferred prosecution agreement.

This investigation was conducted by the Inspector General’s Offices of the U.S. General Services Administration and the Small Business Administration and the FBI’s Washington Field Office.  The prosecution is being handled by Assistant U.S. Attorney Matt Graves of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, and Assistant Chief Craig Y. Lee and Trial Attorney Diana Kane, both of the Antitrust Division’s Washington Criminal I Section.

NSF TOUTS USE OF SUPERCOMPUTER AND RESOUCES TO HELP PLASMA DYNAMIC RESEARCH

FROM:  NATIONAL SCIENCE FOUNDATION 
A deep dive into plasma
Renowned physicist uses NSF-supported supercomputer and visualization resources to gain insight into plasma dynamic

Studying the intricacies and mysteries of the sun is physicist Wendell Horton life's work. A widely known authority on plasma physics, his study of the high temperature gases on the sun, or plasma, consistently leads him around the world to work on a diverse range of projects that have great impact.

Fusion energy is one such key scientific issue that Horton is investigating and one that has intrigued researchers for decades.

"Fusion energy involves the same thermonuclear reactions that take place on the sun," Horton said. "Fusing two isotopes of hydrogen to create helium releases a tremendous amount of energy--10 times greater than that of nuclear fission."

It's no secret that the demand for energy around the world is outpacing the supply. Fusion energy has tremendous potential. However, harnessing the power of the sun for this burgeoning energy source requires extensive work.

Through the Institute for Fusion Studies at The University of Texas at Austin, Horton collaborates with researchers at ITER, a fusion lab in France and the National Institute for Fusion Science in Japan to address these challenges. At ITER, Horton is working with researchers to build the world's largest tokamak--the device that is leading the way to produce fusion energy in the laboratory.

"Inside the tokamak, we inject 10 to 100 megawatts of power to recreate the conditions of burning hydrogen as it occurs in the sun," Horton said. "Our challenge is confining the plasma, since temperatures are up to 10 times hotter than the center of the sun inside the machine."

Perfecting the design of the tokamak is essential to producing fusion energy, and since it is not fully developed, Horton performs supercomputer simulations on the Stampede supercomputer at the Texas Advanced Computing Center (TACC) to model plasma flow and turbulence inside the device.

"Simulations give us information about plasma in three dimensions and in time, so that we are able to see details beyond what we would get with analytic theory and probes and high-tech diagnostic measurements," Horton said.

The simulations also give researchers a more holistic picture of what is needed to improve the tokamak design. Comparing simulations with fusion experiments in nuclear labs around the world helps Horton and other researchers move even closer to this breakthrough energy source.

Plasma in the ionosphere

Because the mathematical theories used to understand fusion reactions have numerous applications, Horton is also investigating space plasma physics, which has important implications in GPS communications.

GPS signaling, a complex form of communication, relies on signal transmission from satellites in space, through the ionosphere, to GPS devices located on Earth.

"The ionosphere is a layer of the atmosphere that is subject to solar radiation," Horton explained. "Due to the sun's high-energy solar radiation plasma wind, nitrogen and oxygen atoms are ionized, or stripped of their electrons, creating plasma gas."

These plasma structures can scatter signals sent between global navigation satellites and ground-based receivers resulting in a "loss-of-lock" and large errors in the data used for navigational systems.

Most people who use GPS navigation have experienced "loss-of-lock," or instance of system inaccuracy. Although this usually results in a minor inconvenience for the casual GPS user, it can be devastating for emergency response teams in disaster situations or where issues of national security are concerned.

To better understand how plasma in the ionosphere scatters signals and affects GPS communications, Horton is modeling plasma turbulence as it occurs in the ionosphere on Stampede. He is also sharing this knowledge with research institutions in the United States and abroad including the UT Space and Geophysics Laboratory.

Seeing is believing

Although Horton is a long-time TACC partner and Stampede user, he only recently began using TACC's visualization resources to gain deeper insight into plasma dynamics.

"After partnering with TACC for nearly 10 years, Horton inquired about creating visualizations of his research," said Greg Foss, TACC Research Scientist Associate. "I teamed up with TACC research scientist, Anne Bowen, to develop visualizations from the myriad of data Horton accumulated on plasmas."

Since plasma behaves similarly inside of a fusion-generating tokamak and in the ionosphere, Foss and Bowen developed visualizations representing generalized plasma turbulence. The team used Maverick, TACC's interactive visualization and data analysis system to create the visualizations, allowing Horton to see the full 3-D structure and dynamics of plasma for the first time in his 40-year career.

"It was very exciting and revealing to see how complex these plasma structures really are," said Horton. "I also began to appreciate how the measurements we get from laboratory diagnostics are not adequate enough to give us an understanding of the full three-dimensional plasma structure."

Word of the plasma visualizations soon spread and Horton received requests from physics researchers in Brazil and researchers at AMU in France to share the visualizations and work to create more. The visualizations were also presented at the XSEDE'14 Visualization Showcase and will be featured at the upcoming SC'14 conference.

Horton plans to continue working with Bowen and Foss to learn even more about these complex plasma structures, allowing him to further disseminate knowledge nationally and internationally, also proving that no matter your experience level, it's never too late to learn something new.

-- Makeda Easter, Texas Advanced Computing Center (
-- Aaron Dubrow, NSF
Investigators
Wendell Horton
Daniel Stanzione
Related Institutions/Organizations
Texas Advanced Computing Center
University of Texas at Austin

EXPORT-IMPORT BANK TOUTS SUCCESS REGARDING "GATEKEEPER SECURITY"

FROM:  U.S. EXPORT-IMPORT BANK 
Export-Import Bank Success: Gatekeeper Security
Small Business Doubles Growth With Liquidity and Risk Protection from Ex-Im Bank 

Washington, D.C. – Gatekeeper Security, a small technology firm in Sterling, Va., has doubled its year-over-year growth since 2010 when the company began using two financing tools of the Export-Import Bank of the United States (Ex-Im Bank): export-credit insurance and Global Credit Express, the Bank’s direct loan for small businesses.

Using Ex-Im’s small-business products, Gatekeeper has increased exports of its under-vehicle security systems to achieve more than $10 million in total sales. Ninety-five percent of its products are exported to the Middle East, Asia and Latin America. The company’s equipment is now found in 28 countries, including Mexico, Vietnam, Ethiopia, Nigeria, Turkey, Pakistan and Afghanistan.

“Small businesses need liquidity and risk protection to grow through exporting,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “We developed Global Credit Express to provide exporters with working capital loans under $500,000, which usually aren’t available from commercial lenders. Ex-Im Bank can fill that lending gap, and we want more small businesses to experience the kind of growth that Gatekeeper has achieved.”

“Ex-Im’s credit insurance policy has allowed us to use the credit standing of Ex-Im Bank to guarantee bank letters of credit issued by foreign banks to fund pre-shipment financing. And now with the Global Credit Express facility, we have a further means to fund the materials and labor costs required to meet foreign orders,” said Gatekeeper Security CEO Christopher Millar.

Gatekeeper Security develops and deploys advanced screening technology to enable its customers to search under vehicles from a safe distance. Gatekeeper’s automatic under-vehicle inspection systems are designed to provide a first line of defense against threats to ground transportation and are integrated with other entry-point control technologies. The company has 12 employees in Sterling and 10 additional employees based in Dubai and Mexico.

PRESIDENT OBAMA SPEAKS ON IMMIGRATION AT DE SOL HIGH SCHOOL



SAMANTHA POWER'S REMARKS AT SAVE THE CHILDREN ILLUMINATION GALA

FROM:  U.S. STATE DEPARTMENT 
U.S. Mission to the United Nations: Remarks at the Save the Children Illumination Gala
Samantha Power
U.S. Permanent Representative to the United Nations 
New York, NY
November 20, 2014

AS DELIVERED

Thank you so much, Jennifer, and please know that the other 192 countries have nothing on my five-year old and my two-year old, [Laughter] for the record. And thank you Carolyn and everybody who has spoken up here. Thank you, especially—there’s a lot of fancy people here—but thank you especially, Lily—Lily! Let’s give it up for Lily! [Applause]

Before the year 2004 when the Red Sox—from Boston—[laughter] won the first of three World Series championships this decade [applause] it may have been tempting to believe that Ben Affleck cared about the underdog because of his own personal suffering. [Laughter] But now we know that there must be something else going on.

Back in February, Ben testified before the Senate Foreign Relations Committee about the ongoing civil war and atrocities being carried out in Congo. At the outset, he told the Committee, “I am, to state the obvious, not a Congo expert. I am an American working to do my part for a country and a people I believe in and care deeply about.” But then Ben proceeded to lay out an in depth analysis of the evolving situation in a place he has traveled to 14 times in the last decade – touching on complex issues like the disarmament of rebel groups and the specifics around the renewal of the mandate for UN peacekeepers. He wrapped up with a set of extremely targeted policy recommendations and this was the furthest thing from amateur testimony.

For anyone who has ever talked to Ben about the Congo, you know that this is how he rolls. On the one hand, he is utterly humble and self-effacing about his role and his knowledge, on the other he is wholly dedicated to helping a region and a people who have suffered the most horrific violence imaginable.

The way Ben has learned – or as he would say, has “done his homework” on Congo – is by asking questions. Lots and lots of rigorous, drilling down, precise, never let go, never let up, always a follow up, questions. And that’s whether he’s talking to high-level policymakers or local human rights defenders, mothers, fathers, brothers, sisters, victims of atrocities, or perpetrators, Ben probes for answers. Why has the campaign to disarm that rebel group fallen short? How can we empower and protect girl victims of rape so that they are less afraid to report it. Questions aimed at understanding what is broken, and how to fix it. And Ben is a sponge; he soaks up all the facts and arguments and then turns them around for his advocacy and the service that his organization provides.

Ben has been asking these questions for nearly a decade about a place that far too few ask any questions about – a region where, in some parts, two out of three women and girls have been sexually assaulted; where nearly half of the people in the region know someone who has been a child soldier; in a country where nearly three million people have been internally displaced by violence.

Yet, where many people saw a region that would always be divided by war, just because it had been for so very long, Ben saw a reason for hope for the people of the Democratic Republic of Congo. His homework taught him that, empowered with the right tools, people in Congo can and are rebuilding their families and communities.

In a world where aid too often comes from the top down, and treats beneficiaries as passive victims who need outside saviors, the organization Ben founded does the opposite. The Eastern Congo Initiative finds partners in communities who can build change from the grassroots up, and gives them the tools that they need to do it. Women lawyers who bring the perpetrators of unspeakable sexual crimes to justice; educators who give former child soldiers an accelerated primary education so that they can catch up with their peers; birth attendants who can consult and can prevent maternal deaths. ECI recognizes that these local actors – teaming up with the actors – make the most effective change agents. And while they are willing to fight alone, they shouldn’t have to.

The impact of the support that ECI provides – and Ben’s effort to convince other governments and organizations to lend similar support – has been profound. It has given people who want to change their country, who want to be better for themselves, for their families, for their kids, the means to do it.

So, as much as Ben may say he’s not an expert, this much is certain: he is making an outsize impact in a region and for a people he believes in, and he is making other people believe, too.

For that reason, it is an honor to present Ben Affleck with the Save the Children’s Global Child Advocate Award. Congratulations, Ben.

Sunday, November 23, 2014

REMARKS BY ROSE GOTTENMOELLER ON BALLISTIC MISSILE DEFENSE AND EUROPEAN PHASED ADAPTIVE APPROACH

FROM:  U.S. STATE DEPARTMENT 
America's Commitment to Ballistic Missile Defense and the European Phased Adaptive Approach
Remarks
Rose Gottemoeller
Under Secretary for Arms Control and International Security 
Missile Defense Agency
Bucharest, Romania
November 18, 2014

As Prepared

Thank you, Rob, for that introduction. I am so pleased to be here in Romania and at this important time. We congratulate the people of Romania on their election yesterday. We look forward to working with the President-elect and the government of Romania, as we continue to strengthen our already close relationship. I would especially like to thank our Romanian colleagues for their generosity in agreeing to host this influential conference and especially for all of the support they have provided to the deployment of U.S. missile defense site at Deveselu. Thanks also to all of the people here that came from around the world. It is a true testament to our combined efforts that such a large and prestigious crowd has come to participate in this conference.

I know you have already heard from Admiral Syring, Principal Deputy Under Secretary Brian McKeon and Chargé d’Affaires Thompson about the ballistic missile defense systems the United States is deploying in Europe, here in Romania, and around the world. I am not going to re-tread that ground.

I will reiterate one point you have already heard today: The Obama Administration’s commitment to deploying missile defenses to defend the United States homeland, our Allies and partners never waivers. In Europe, we are on track for Phase 2 of the European Phased Adaptive Approach and we are committed to having Phase 3 in Poland completed in 2018. We are working closely across the board with our Israeli Allies on missile defense. We remain committed to missile defense cooperation among our Gulf Cooperation Council partners. In Asia, we also continue to deploy more and more capable missile defense systems and continue our efforts to enhance cooperation with allies and partners.

We are committed to these deployments in the face of constant criticism, particularly from the Russian Federation.

We often hear the refrain from certain corners that missile defenses are destabilizing. With an emphasis on transparency and confidence-building, we have explained that nothing that we are doing with respect to our missile defense plans will undercut international security. It would not be in our interest to do so, it would be prohibitively expensive and from a technical perspective, it would be extremely difficult. So let me take some time to again outline these points, based on logic, physics and math, to prove that our missile defense deployments are a benefit, not a threat, to global strategic stability.

First, the Cold War mindset about ballistic missile defenses is no longer valid. Limited ballistic missile defense capabilities are not capable of threatening Russia’s strategic nuclear forces and are not a threat to strategic stability.

Ballistic missiles during the Cold War were the tools the United States and the Soviet Union used to maintain the strategic balance between our two countries. Today, ballistic missiles are proliferated around the world and are seen as a common battlefield weapon.

That is why today’s limited missile defenses are essential to ensuring regional strategic stability. That is the one and only reason that the United States is pursuing regional missile defense capabilities.

Missile saber rattling is not particularly effective when there are defenses to protect against those missiles. Missile defense can also prevent a country or group from taking cheap shots of one or two launches that it thinks can be used to compel or deter a government. Instead these countries or groups would need to fire a much larger salvo to overcome missile defenses, thereby raising the stakes of entering into a conflict.

Further, missile defenses create uncertainty about the outcome of attacks, thereby increasing the costs to countries and groups attempting to overcome defenses. By reducing a country’s confidence in the effectiveness of missile attacks, we enhance deterrence and regional stability.

Missile defenses and missile defense cooperation also provides reassurance. Reassurance helps reduce a country’s vulnerability to ballistic missile attacks, as well as reassurance regarding the United States’ commitment to their defense. The last part is particularly important since it demonstrates that the United States will stand by our Alliance commitments, even in the face of growth in the military potential of regional adversaries.

Finally, when confronted with an attack, missile defenses can buy time for other courses of actions, such as diplomacy, to help resolve the crisis. All of you know, whether you are policy-makers or military planners, that time- and lack thereof – is one of the most important factors during a crisis.

These are the factors that drive our deployment efforts. Our efforts are aided by the increasing sophistication and accuracy of our ballistic missile defenses, as well as the experience that U.S. forces, our Allies and our partners have gained from being the targets of missile attacks.

Many of our regional defense deployments, like the Patriot system and the Terminal High Altitude Area Defense, or THAAD system, are inherently designed for theater use. They are not capable of defending against ICBMs launched at the United States. THAAD, however, is capable of defending against the medium-range and intermediate-range ballistic missile that North Korea is deploying.

Yet despite our repeated attempts to convey these demonstrable facts, the Russian Federation continues to maintain that our global deployment of these systems is designed somehow to encircle Russia.

Understanding the universal truth of physics, we have also taken care to demonstrate how the systems we are deploying are located in places that are ideal for addressing regional threats. Based on the irrefutable laws of science, these systems cannot do the things the Russian government says they can. You may have seen the Russia trajectory maps that show how the SM-3 Block IIA interceptor could be used against Russian ICBMs. The problem with this argument is that it assumes that the instant – the very second – of a Russian ICBM launch, we would also launch our interceptor. The argument also assumes that we would have perfect knowledge of where that Russian ICBM is going and where it is going to be located several minutes from launch in order to strike the reentry vehicles.

As Admiral Syring attests and our flight tests clearly show, we cannot begin to consider launching an interceptor until well after a ballistic missile has finished its boost phase, the warheads have separated, and we have had time to develop a firing solution. We need considerable time to gather knowledge about where the missile is going before we can launch our interceptor. As a result, the physics just don’t add up. There is no way a U.S. SM-3 IIA interceptor can chase down Russian reentry vehicles.

At one point, we did explore the feasibility of a faster interceptor that had what we called “early intercept” capabilities, but that still relied on intercepting the reentry vehicles after burnout. Again, this was not a boost phase concept. In fact, there are many unclassified reports that discuss the challenges inherent in doing boost phase intercept.

Beyond our theater, capabilities, our Ground-Based Interceptors (known as GBIs) deployed in Alaska and California do not pose a threat to Russian strategic nuclear forces either. Our GBIs are designed to deal with rudimentary systems deployed in limited numbers and with simple countermeasures. Technologically, GBIs cannot counter Russia’s sophisticated ICBM capabilities and countermeasures.

In addition to our other efforts, we have also outlined the plain and simple numbers to the Russians. Our GBI numbers are nowhere remotely near their strategic offensive arsenal numbers. As of October 1st, Russia declared that under the New START counting rules, they were deploying 1,643 warheads on 528 deployed ICBMs, SLBMs and heavy Bombers. Let me say that number again: the Russian Federation currently fields 1,643 deployed nuclear warheads. Currently, the United States has 30 ground-based interceptors deployed in Alaska. So, hypothetically if all 30 of those GBIs performed perfectly and took out 30 Russian warheads, 1,613 Russian warheads would still get past our defenses.

We will deploy an additional 14 interceptors in Alaska and should we ever deploy an additional east coast site with 20 additional interceptors, Russia would still have 1,579 warheads that could get through our defenses. And while I am optimistic we will negotiate a future nuclear reduction Treaty after New START, even then, our limited numbers of defensive systems cannot even come close to upsetting the strategic balance.

Reversing this equation, I would note that we are not concerned about the impact to strategic stability of Russia’s deployment of 68 interceptors at the Moscow ABM system. Sixty eight deployed interceptors is 24 more than the United States even has plans to deploy. Further, Russia is very open about declaring that the Moscow ABM system is specifically designed against the United States. And just like the United States, Russia is modernizing its radars and interceptors as part of their system. However, that still hasn’t raised concerns in the United States about strategic stability.

Despite our best efforts, none of these facts has made any difference in our discussions with the Russian Federation. They continue instead to argue the system is designed against them. The bottom line is this: The United States will continue to deploy our missile defense systems around the world to defend against limited regional threats. We will continue to deploy the EPAA as our contribution to NATO missile defense. There should be no doubt about our commitment. Moreover, we will not accept any obligations that limit our ability to defend ourselves, our allies, and our partners, including where we deploy our BMD-capable Aegis ships. There is no reason why we should and no reason we would.

Further, at this time, we have serious concerns about Russia’s invasion of Ukraine and its violation of the Intermediate-Range Nuclear Forces (INF) Treaty. We continue to work closely with our NATO partners on addressing the changes to European security brought about by the invasion of Ukraine and are seeking Russia’s return to compliance with the INF Treaty.

While Russia has accused the United States of being in violation of the INF Treaty, we are in complete compliance with the INF Treaty. We can describe, in detail, why each of our systems complies with the Treaty. One thing that the United States and Russia have agreed on is that this important Treaty remains in our mutual security interests. May it remain so. In the meantime, we will continue to make our case to the world about the important of limited missile defenses and continue our essential efforts to cooperatively deploy systems around the world.

Thank you for your support with these efforts and thank you again for the opportunity to speak here today.

DOD SECRETARY MEETS WITH SAUD ARABIA'S MINISTER OF THE NATIONAL GUARD

FROM:  U.S. DEFESNE DEPARTMENT 
Hagel Meets with Saudi, Qatari Ministers
DoD News, Defense Media Activity

WASHINGTON, Nov. 21, 2014 – Defense Secretary Chuck Hagel met here today with Saudi Arabia's Minister of the National Guard Prince Mitib bin Abdullah bin Abdulaziz Al Saud and Qatar's Minister of State for Defense Affairs Maj. Gen. Hamad bin Ali al-Attiyah.

Pentagon Spokesman Rear Adm. John Kirby summarized the meetings in a statement released today, calling Saudi Arabia and Qatar “integral to ongoing coalition efforts against the Islamic State of Iraq and the Levant.”

In separate meetings with the two ministers, Kirby said, Hagel “expressed appreciation for the strategic partnership between the United States and Saudi Arabia and Qatar and thanked the ministers for their countries' support in the fight against the ISIL.”

Hagel highlighted Saudi and Qatari participation in coalition airstrikes as well as their support to train and equip the moderate Syrian opposition, Kirby said. Hagel and the two ministers, he added, “underscored their desire to continue working closely to confront ISIL and other security challenges in the region.”

NASA VIDEO: THIS WEEK AT NASA


3 DEVELOPERS CONVICTED IN MORTGAGE FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, November 21, 2014

Three Real Estate Developers Convicted in $20 Million Mortgage Fraud Scheme
A federal jury convicted three Miami real estate developers today for their roles in a $20 million mortgage fraud scheme involving the sale of condominium units in the Miami area.

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 Nadine Gurley of the Department of Housing and Urban Development’s Office of the Inspector General (HUD-OIG) in Miami and Inspector General Laura S. Wertheimer of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) made the announcement.  U.S. District Judge Patricia A. Seitz presided over the trial in the Southern District of Florida.

Stavroula Mendez, 68, Lazaro Mendez, 42, and Marie Mendez, 49, were each convicted of one count of conspiracy to commit bank fraud and wire fraud.  Additionally, Stavroula Mendez was convicted of 10 counts of bank fraud and three counts of wire fraud; Lazaro Mendez was convicted of 10 counts of bank fraud, and one count of wire fraud; and Marie Mendez was convicted of three counts of bank fraud and one count of wire fraud.

According to evidence presented at trial, Stavroula Mendez, Lazaro Mendez, and Marie Mendez controlled and managed various condominiums in the Miami area.  As part of their fraud scheme, the defendants paid straw buyers to apply for mortgages to purchase units in their projects.  The defendants then accepted the mortgage proceeds for the purchase of the units, but continued to control the units after the sales.

The evidence showed that Lazaro Mendez recruited family members and others to be straw buyers of units he controlled, and that he facilitated false loan applications for them.  In addition, Lazaro Mendez enlisted mortgage brokers and another individual to recruit straw buyers and assist them in obtaining fraudulent loans.  He accepted kickbacks out of loan proceeds for each buyer the brokers referred.

Evidence at trial further demonstrated that after units were sold at a development Stavroula Mendez controlled with her husband, Luis Mendez, Stavroula Mendez funneled money from the loan proceeds to shell companies controlled by others to pay for the straw buyers’ closing cash obligations and mortgage payments.  In 2008 and 2009, Stavroula Mendez used various shell companies to funnel more than $2 million of the fraudulent proceeds to off-shore accounts located in Switzerland and Liechtenstein.

The evidence also showed that Marie Mendez assisted in the transfer of rental money received by the conspirators to make mortgage payments, and funneled cash to another individual to make mortgage payments on behalf of straw buyers.  She also submitted fraudulent loan applications for three condominium units that were purchased in her name.

Eventually, the conspirators were unable to make mortgage payments, causing many of the condominium units to go into foreclosure and leading to $20 million in losses to the lenders.

Following their convictions, each of the defendants was remanded into custody.  Sentencing is scheduled for Feb. 3, 2015.  Eleven other defendants associated with the scheme were previously convicted of fraud charges.

The case is being investigated by HUD-OIG and FHFA-OIG.  The case is being prosecuted by Senior Trial Attorney Brian Young and Trial Attorneys Gary A. Winters and Kyle Maurer of the Criminal Division’s Fraud Section.

FORMER VIRGIN ISLANDS OFFICIAL CONVICTED OF BRIBERY AND EXTORTION

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, November 21, 2014
Former Executive Director of Virgin Islands Legislature Convicted of Bribery and Extortion

After a three-day trial, a federal jury found the former executive director of the Legislature of the Virgin Islands guilty of accepting bribes and extortion in the awarding of contracts with the Legislature.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Ronald W. Sharpe of the District of the Virgin Islands, and Special Agent in Charge Carlos Cases of the FBI’s San Juan Field Office made the announcement.

Louis “Lolo” Willis, 56, of St. Thomas, Virgin Islands, was convicted of two counts of federal programs bribery and two counts of extortion under color of official right.  U.S. District Judge Curtis V. Gomez of the District of the Virgin Islands set the sentencing hearing for Feb. 13, 2015.

According to evidence presented at trial, Willis was the executive director of the Legislature between 2009 and 2012.  His responsibilities included oversight of the major renovation of the Legislature building and awarding and entering into government contracts in connection with the project.  Willis was also responsible for authorizing payment to the contractors for their work.  Evidence presented at trial demonstrated that Willis accepted bribes, including $13,000 in cash and checks, from contractors in exchange for using his official position to secure more than $350,000 in contracting work for the contractors and to ensure they received payment upon completion.

This case was investigated by the FBI-San Juan Field Office’s St. Thomas Resident Agency, the Internal Revenue Service, Criminal Investigation, and the Office of the Virgin Islands Inspector General.  The case is being prosecuted by Trial Attorneys Peter Mason and Justin Weitz of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Delia Smith of the District of the Virgin Islands.  Former Trial Attorneys Tracee Plowell and Jennifer Blackwell and former Assistant U.S. Attorney Kim Lindquist assisted in the investigation of the case.

WHITE HOUSE FACT SHEET ON ECONOMICS OF FIXING IMMIGRATION

FROM:  THE WHITE HOUSE 
November 21, 2014
FACT SHEET: The Economic Benefits of Fixing Our Broken Immigration System

The President’s Immigration Accountability Executive actions will help secure the border, hold nearly 5 million undocumented immigrants accountable and ensure that everyone plays by the same rules.  Acting within his legal authority, the President is taking an important step to fix our broken immigration system.

These executive actions crack down on illegal immigration at the border, prioritize deporting felons not families, and require certain undocumented immigrants to pass a criminal background check and pay their fair share of taxes as they register to temporarily stay in the US without fear of deportation.

These are commonsense steps, but only Congress can finish the job. As the President acts, he’ll continue to work with Congress on a comprehensive, bipartisan bill—like the one passed by the Senate more than a year ago—that can replace these actions and fix the whole system.

According to an analysis by the President’s Council of Economic Advisers (CEA), the President’s executive actions on immigration would boost economic output by an estimated 0.4 to 0.9 percent over ten years, corresponding to increases in GDP of $90 billion to $210 billion in 2024.          

The President’s actions will grow the economy by increasing the productivity of all American workers. These actions will increase the productivity of American workers, in part by allowing undocumented workers to come out of the shadows and find jobs that better match their skills and potential. This shift of workers across occupations will also allow more native workers to specialize in the tasks best suited to their abilities. These effects are likely to lead to wage increases for all workers—immigrants and natives alike. In addition, by encouraging high-skilled immigration, these actions will boost the rate of innovation and patenting in the American economy, further increasing the productivity of the American workforce.

The President’s actions will increase the size of the American workforce. CEA estimates that the economy will also grow thanks to an expansion of the American labor force by nearly150,000 people over 10 years as a result of the President’s executive actions.

Average wages for all workers, both U.S.-born and immigrant, will increase. Increases in productivity and innovation caused by the President’s actions will translate into higher wages for all types of workers. CEA estimates that by 2024 annual wages for native workers will rise 0.3 percent, or approximately $170 in today’s dollars. CEA also estimates that the President’s actions would neither increase nor decrease the likelihood of employment for native workers.
A bigger economy will reduce the deficit. As the economy grows so do tax revenues, requiring the government to borrow less to finance government operations. This reduced borrowing translates into reduced spending on interest payments by the government, thus reducing overall government spending—and shrinking the deficit. CEA’s estimate of the higher economic growth associated with executive action on immigration would translate into reductions in the Federal deficit by $25 billion in 2024.

At the same time, the President’s executive actions will expand the country’s tax base by millions of people and billions of dollars.  Individuals potentially eligible for deferred action under the President’s executive actions are in the country today – and have been for many years.  They provide for their families, just like all American citizens.  Many are already in the workforce and contributing Federal, State, and local taxes.  But roughly two-thirds of them don’t pay taxes today.  The President is changing that, ensuring that these individuals have the opportunity to apply for a work authorization and pay taxes.  By allowing those eligible for deferred action to work in this country, both workers and employers will be able to come out from the shadows and contribute payroll taxes, just like all American citizens.

To be sure, the economic benefits of these actions are not as strong as those under the bipartisan legislation that passed in the Senate.  If Congress passes that bill, we will be able to fully realize the economic benefits of commonsense immigration reform.  Independent studies have affirmed that commonsense immigration reform would significantly increase economic growth, shrink the deficit, and boost wages for native-born U.S. workers.

Commonsense immigration reform would strengthen the overall economy and grow U.S. GDP.  The nonpartisan Congressional Budget Office (CBO) estimated that enacting the Senate immigration reform bill would increase real GDP relative to current law projections by 3.3 percent in 2023 and 5.4 percent in 2033 – an increase of roughly $700 billion and $1.4 trillion, respectively, in today’s dollars.  According to independent estimates, improvements to the agricultural visa program alone would almost immediately increase GDP by $2 billion.
Commonsense immigration reform would increase wages and productivity for American workers.  According to CBO and other independent studies, immigration reform would increase overall U.S. productivity, resulting in higher wages.  CBO estimates that real wages would be 0.5 percent higher in 2033 — the equivalent to an additional $250 of income for the median American household — as a result of enacting the Senate bill.  The Senate bill would raise the “wage floor” for all workers—particularly in industries where employers pay undocumented workers low wages under the table and thus drive down the wages of all workers.

Commonsense immigration reform would reduce the federal deficit and strengthen Social Security.  According to CBO, the additional taxes paid by new and legalizing immigrants under the Senate bill would reduce the federal budget deficit by nearly $850 billion over the next 20 years.  The independent Social Security Administration (SSA) Actuary estimates that the Senate bill would add nearly $300 billion to the Social Security Trust Fund over the next decade and would improve Social Security’s finances over the long run, extending Social Security solvency by two years.

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