FROM: NATIONAL SCIENCE FOUNDATION
Increasing greenhouse gases linked to rains over Africa thousands of years ago
Past may be prologue for climate in Africa
An increase in greenhouse gas concentrations thousands of years ago was a key factor in higher amounts of rainfall in two major regions of Africa, scientists have discovered.
The finding provides new evidence that today's increase in greenhouse gases will have an important effect on Africa's future climate.
Results of the study, led by scientists at the National Center for Atmospheric Research (NCAR) in Boulder, Colo., are published today in a paper in the journal Science.
"The future effect of greenhouse gases on rainfall in Africa is a critical socioeconomic issue," said NCAR climate scientist Bette Otto-Bliesner, the paper's lead author. "Africa's climate seems destined to change, with far-reaching implications for water resources and agriculture."
The research drew on advanced computer simulations and analyses of sediments and other records of past climate. It was funded by the National Science Foundation (NSF), NCAR's sponsor, and the U.S. Department of Energy's Office of Science.
Mysterious period of rain
Otto-Bliesner and colleagues set out to understand the reasons behind the dramatic climate shifts that took place in Africa thousands of years ago.
As ice sheets that had covered large parts of North America and northern Europe retreated from their maximum extent around 21,000 years ago, Africa's climate responded in a way that had puzzled scientists.
Following a long dry spell during the glacial maximum, the amount of rainfall in Africa abruptly increased, starting about 14,700 years ago and continuing until around 5,000 years ago.
So intense was the rainfall--turning desert into grassland and savanna--that scientists named the span the African Humid Period (AHP).
The puzzling part was why the same precipitation phenomenon occurred simultaneously in two well-separated regions, one north of the equator and one to the south.
Previous studies had suggested that, in northern Africa, the AHP was triggered by changes in Earth's orbit that resulted in more summertime heating. (Today the northern hemisphere is closest to the Sun in winter, due to a 20,000-year cycle of wobble in Earth's axis.)
But Otto-Bliesner said the orbital pattern alone would not explain the simultaneous onset of the AHP in southeastern equatorial Africa. Instead, the study revealed the role of greenhouse gases in the atmosphere, along with changes in circulation patterns in the Atlantic Ocean.
As Earth emerged from the last Ice Age, greenhouse gases, especially carbon dioxide and methane, increased significantly--reaching almost pre-industrial levels by 11,000 years ago--for reasons that are not yet fully understood.
Most recent natural global warming and increased greenhouse gases
It was the most recent time during which natural global warming was associated with increases in greenhouse gas concentrations.
The influx of fresh water from melting ice sheets in North America and Scandinavia about 17,000 years ago began weakening a critical circulation pattern that transports heat and salinity in the Atlantic Ocean like a conveyer belt.
The weakened circulation had the effect of moving precipitation to southernmost Africa, suppressing rainfall in northern, equatorial and East Africa.
When the ice sheets stopped melting, the circulation became stronger again, bringing precipitation back north of the equator and to Southeast equatorial Africa.
That change, coupled with the orbital shift and the warming of the atmosphere and oceans by the increasing greenhouse gases, is what triggered the AHP, the scientists believe.
"This study is a step toward solving the puzzle of what triggered abrupt changes in rainfall over southeastern equatorial and northern Africa during early deglaciation," said Anjuli Bamzai, program director in NSF's Division of Atmospheric and Geospace Sciences, which funded the research.
"Through an analysis of proxy records and climate model simulations, the team demonstrated that the recovery of what's calledthe Atlantic Meridional Overturning Circulation, or AMOC, played a role as an initial trigger to wetter conditions."
Putting together a puzzle
To piece together the puzzle, the researchers drew on fossil pollen, evidence of former lake levels and other proxy records indicating past moisture conditions.
They focused their work on northern Africa, which includes the present-day Sahel region encompassing Niger, Chad and northern Nigeria. They also focused on the largely forested area of today's eastern Democratic Republic of Congo, Rwanda, Burundi and much of Tanzania and Kenya in southeastern equatorial Africa.
In addition to the proxy records, they simulated past climate with the NCAR-based Community Climate System Model, a powerful global climate model funded by NSF and the U.S. Department of Energy that uses supercomputers at the Oak Ridge National Laboratory.
By comparing the proxy records with the computer simulations, the scientists demonstrated that the climate model had the AHP right.
This helps validate its role in predicting how rising greenhouse gas concentrations might change rainfall patterns in a highly populated and vulnerable part of the world.
"Normally climate simulations cover perhaps a century, or take a snapshot of past conditions," Otto-Bliesner said. "A study like this, dissecting why climate evolved as it did over this 10,000-year period, was more than I thought I would see in my career."
-NSF-
Media Contacts
Cheryl Dybas, NSF
Wednesday, December 10, 2014
SECRETARY KERRY'S OP-ED ON LAND MINES
FROM: U.S. STATE DEPARTMENT
Clear Land Mines off the Earth
Op-Ed
John Kerry
Secretary of State
USA Today
December 8, 2014
Earlier this year, a 10-year-old boy was collecting scrap metal in Bosnia when he stepped on a land mine, which killed him instantly. The mine was planted during a war of which the boy had no memory. Days later, a man met a similar fate only a few miles away. He had left home to gather firewood.
Land mines and other unexploded ordnance continue to endanger civilians in more than 60 countries. Decades after soldiers have laid down their weapons and leaders have made peace, these grim legacies of war kill and maim local populations.
For more than two decades, the United States has been at the forefront of international efforts to remove these deadly devices and to address the humanitarian effects that these weapons can have on civilian populations.
Today, I released the annual To Walk the Earth in Safety Report, which powerfully chronicles the progress we have made in clearing land mines from both battlefields and backyards.
Billions in U.S. Aid
Since 1993, the U.S. has provided more than $2.3 billion in assistance in over 90 countries for conventional weapons destruction programs. Thanks to strong bipartisan support in Congress, these funds provide the expertise and equipment to safely clear land mines and other unexploded ordnance. They also provide medication, rehabilitation and vocational training for those injured by these deadly weapons.
For example, we helped clear former minefields so that preschools might be built in Sri Lanka. In Vietnam, onetime battlegrounds have been transformed into busycommercial sectors. Children were once tethered to trees so they would not wander into killing fields in Angola. Today, large areas of the countryside have been made safe. And when flooding unearthed old mines in Serbia this year, the U.S. Quick Reaction Force deployed to contain the threat.
Our efforts to address the humanitarian impacts of land mines extend to our own weapons stockpiles.
In 1994, President Clinton pledged that we would work toward the eventual eliminationof antipersonnel land mines. President George W. Bush restricted the use of land mines to only those with self-destruct or self-deactivation features. In September, President Obama brought us one step closer to the goal of a world free from anti-personnel land mines when he announced that we will no longer use them outside of the unique circumstances of the Korean Peninsula.
U.S. Plans to end Use
That means the U.S. will no longer procure anti-personnel land mines, and we will begin destroying our anti-personnel land mine stockpiles not required for the defense of South Korea. And we will work to find ways that may ultimately allow us to accede to the Ottawa Convention — the international treaty that prohibits the use, stockpiling, production and transfer of anti-personnel land mines.
These steps reflect America's commitment to the global humanitarian movement. Just 15 years ago, land mines and other explosive remnants of war were killing and injuring nearly 10,000 men, women and children every year. In the most recent year for which data are available, that figure has dropped by over 60%.
Fifteen countries — from Honduras to Tunisia to Rwanda — are free from the impact of mines due to the efforts of the U.S. and our international partners in government and civil society.
But this work is far from finished. Too many of these armaments remain concealed, poised to maim anyone who takes a wrong step. Mines continue to be indiscriminately used by countries such as Syria and numerous non-state actors worldwide. Victim-activated, improvised explosive devices are routinely employed by terrorist groups.
In my travels, I have met the victims of land mines. In Southeast Asia, I watched small children propel themselves along on little wagons through the streets. In Africa, I watched men and women balancing food baskets as they navigated through crowded streets on makeshift crutches. In Bogota, I talked to soldiers and police officers wounded by mines left behind after Colombia's bloody conflict.
Their stories are heartbreaking. In less than a second, their lives were changed forever. Different countries, different stories, different times — but none of these victims was the enemy of anybody.
We can't heal their wounds. We can't give them back their lives or their limbs. But we can do more so that others will never suffer the same fate — and so that millions can walk the earth in safety.
Clear Land Mines off the Earth
Op-Ed
John Kerry
Secretary of State
USA Today
December 8, 2014
Earlier this year, a 10-year-old boy was collecting scrap metal in Bosnia when he stepped on a land mine, which killed him instantly. The mine was planted during a war of which the boy had no memory. Days later, a man met a similar fate only a few miles away. He had left home to gather firewood.
Land mines and other unexploded ordnance continue to endanger civilians in more than 60 countries. Decades after soldiers have laid down their weapons and leaders have made peace, these grim legacies of war kill and maim local populations.
For more than two decades, the United States has been at the forefront of international efforts to remove these deadly devices and to address the humanitarian effects that these weapons can have on civilian populations.
Today, I released the annual To Walk the Earth in Safety Report, which powerfully chronicles the progress we have made in clearing land mines from both battlefields and backyards.
Billions in U.S. Aid
Since 1993, the U.S. has provided more than $2.3 billion in assistance in over 90 countries for conventional weapons destruction programs. Thanks to strong bipartisan support in Congress, these funds provide the expertise and equipment to safely clear land mines and other unexploded ordnance. They also provide medication, rehabilitation and vocational training for those injured by these deadly weapons.
For example, we helped clear former minefields so that preschools might be built in Sri Lanka. In Vietnam, onetime battlegrounds have been transformed into busycommercial sectors. Children were once tethered to trees so they would not wander into killing fields in Angola. Today, large areas of the countryside have been made safe. And when flooding unearthed old mines in Serbia this year, the U.S. Quick Reaction Force deployed to contain the threat.
Our efforts to address the humanitarian impacts of land mines extend to our own weapons stockpiles.
In 1994, President Clinton pledged that we would work toward the eventual eliminationof antipersonnel land mines. President George W. Bush restricted the use of land mines to only those with self-destruct or self-deactivation features. In September, President Obama brought us one step closer to the goal of a world free from anti-personnel land mines when he announced that we will no longer use them outside of the unique circumstances of the Korean Peninsula.
U.S. Plans to end Use
That means the U.S. will no longer procure anti-personnel land mines, and we will begin destroying our anti-personnel land mine stockpiles not required for the defense of South Korea. And we will work to find ways that may ultimately allow us to accede to the Ottawa Convention — the international treaty that prohibits the use, stockpiling, production and transfer of anti-personnel land mines.
These steps reflect America's commitment to the global humanitarian movement. Just 15 years ago, land mines and other explosive remnants of war were killing and injuring nearly 10,000 men, women and children every year. In the most recent year for which data are available, that figure has dropped by over 60%.
Fifteen countries — from Honduras to Tunisia to Rwanda — are free from the impact of mines due to the efforts of the U.S. and our international partners in government and civil society.
But this work is far from finished. Too many of these armaments remain concealed, poised to maim anyone who takes a wrong step. Mines continue to be indiscriminately used by countries such as Syria and numerous non-state actors worldwide. Victim-activated, improvised explosive devices are routinely employed by terrorist groups.
In my travels, I have met the victims of land mines. In Southeast Asia, I watched small children propel themselves along on little wagons through the streets. In Africa, I watched men and women balancing food baskets as they navigated through crowded streets on makeshift crutches. In Bogota, I talked to soldiers and police officers wounded by mines left behind after Colombia's bloody conflict.
Their stories are heartbreaking. In less than a second, their lives were changed forever. Different countries, different stories, different times — but none of these victims was the enemy of anybody.
We can't heal their wounds. We can't give them back their lives or their limbs. But we can do more so that others will never suffer the same fate — and so that millions can walk the earth in safety.
Tuesday, December 9, 2014
SECRETARY KERRY URGES NEW AUTHORIZATION FOR MILITARY FORCE AGAINST ISIL
FROM: U.S. STATE DEPARTMENT
Remarks Before the Senate Foreign Relations Committee
Remarks
John Kerry
Secretary of State
Washington, DC
December 9, 2014
SECRETARY KERRY: Well, Mr. Chairman and Ranking Member Corker and all of my former colleagues, it really is a pleasure for me to be back before the Foreign Relations Committee. During my time here, I think we got some things right and we certainly wound up wishing we’d done some things differently. But I think most of us would agree – and I saw it during both parties’ chairmanships, including the years that Senator Lugar and I were here – that this committee works best and makes the greatest contribution to our foreign policy and our country when it addresses the most important issues in a strong bipartisan fashion.
And this is one of those issues. The chairman and the ranking member have both said that. This is one of the moments when a bipartisan approach really is critical.
As you know, the President is committed to engaging with the committee and all of your colleagues in the House and Senate regarding a new authorization for use of military force – as we call it in short, the AUMF – specifically against the terrorist group known as ISIL, though in the region is it called Daesh, and specifically because they believe very deeply it is not a state and it does not represent Islam.
So we are looking for this authorization with respect to efforts against Daesh and affiliated groups, and I want to thank Chairman Menendez and the entire committee for leading the effort in Congress and for all of the important work that you have already done on this complicated and challenging issue. It is important that this committee lead the Congress and the country, and I think you know I believe that.
Now, I realize we may not get there overnight. I’ve heard the ranking member’s comments just now, and we understand the clock. We certainly won’t resolve everything and get there this afternoon, in the next few hours. But I do think this discussion is important, and I think we all agree that this discussion has to conclude with a bipartisan vote that makes clear that this is not one party’s fight against Daesh, but rather that it reflects our united determination to degrade and ultimately defeat Daesh. And the world needs to understand that from the United States Congress, above all.
Our coalition partners need to know that from all of you, and the men and women of our armed forces deserve to know it from all of you. And Daesh’s cadre of killers and rapists and bigots need to absolutely understand it clearly. That’s why this matters.
Now toward that end, we ask you now to work closely with us on a bipartisan basis to develop language that provides a clear signal of support for our ongoing military operations against Daesh. Our position on the text is really pretty straightforward. The authorization, or AUMF, should give the President the clear mandate and flexibility he needs to successfully prosecute the armed conflict against Daesh and affiliated forces, but the authorization should also be limited and specific to the threat posed by that group and by forces associated with it.
Now, I’ll come back to the question of the AUMF in a minute. But we believe that as we embark on this important discussion context matters. All of us want to see the United States succeed and all of us want to see Daesh defeated, so we’re united on that. And I want to bring the committee up to date on precisely where our campaign now stands.
Mr. Chairman, less than three months ago – perhaps two and a half months, a little more – have passed since the international community came together in a coalition, whose purpose is to degrade and defeat Daesh. Two and a half months ago, it didn’t exist – not it, Daesh, but the coalition – and the 60 countries that assembled recently in Brussels. We organized, and I had the privilege of chairing the first ministerial-level meeting of the coalition last week in Brussels.
We heard Iraqi Prime Minister Abadi describe to us the effort that his leadership team is making to bring Iraqis together, strengthen their security forces, take the fight to Daesh, and improve and reform governance. We also heard General John Allen, our special envoy to the coalition, review the progress that is being made in the five lines of coalition effort: to shrink the territory controlled by Daesh, to cut off its financing, to block its recruitment of foreign fighters, to expose the hypocrisy of its absurd religious claims, and to provide humanitarian aid to the victims of its violence.
During the meeting, I have to tell you, I was particularly impressed by the leadership activism, and quite frankly, the anger towards Daesh that is being displayed by Arab and Muslim states. Governments that do not always agree on other issues are coming together in opposition to this profoundly anti-Islamic terrorist organization.
And now, to be clear, ISIL continues to commit serious vicious crimes and it still controls more territory than al-Qaida ever did. It will be years, not months, before it is defeated. We know that. But our coalition is measurably already making a difference.
To date, we have launched more than 1,150 today air strikes against Daesh. These operations have reduced its leadership, undermined its propaganda, squeezed its resources, damaged its logistical and operational capabilities, and compelled it to disperse its forces and change its tactics. It is becoming clear that the combination of coalition airstrikes and local ground partners is a potent one. In fact, virtually every time a local Iraqi force has worked in coordination with our air cover they have not only defeated Daesh, they have routed it.
In Iraq, progress also continues in the political arena. And this is no less important, frankly. Last week, after years of intensive efforts, the government in Baghdad reached an interim accord with the Kurdistan Regional Government on hydrocarbon exports and revenue sharing. That has been long sought after, and it’s a big deal that they got it. It’s good for the country’s economy, but it’s even better for its unity and stability and for the imprint of the direction that they’re moving in.
In addition, a new defense minister is a Sunni, whose appointment was an important step towards a more inclusive government. And with his leadership and that of the new interior minister, the process of reforming the nation’s security forces has a genuine chance for success.
Meanwhile, the prime minister is taking bold steps to improve relations with his country’s neighbors. And those neighbors, including Saudi Arabia, the UAE, and Turkey, have been responding. Now, I want to underscore it’s too early to declare a new era in regional relations, but countries that had been drifting apart or even in conflict with each other are now in the process of coming together and breaking down the barriers that were created. And that is helpful to our coalition and it is bad news for Daesh.
Beating back the threat that Daesh poses to Iraq is job number one for our Iraqi partners and for our coalition. But even if the government in Baghdad fulfills its responsibilities, it is still going to face a dire challenge because of the events in Syria.
Now, if you recall, the coalition’s decision to carry out airstrikes in Syria came in response to a request from Iraq for help in defending against Daesh’s brazen attack. To date, we and our Arab partners have conducted over 500 airstrikes in Syria, targeting areas where Daesh had concentrated its fighters, targeting on command and control nodes, finance centers, training camps, and oil refineries. Our objective is to further degrade Daesh’s capabilities and to deny it the freedom of movement and resupply that it has previously enjoyed.
At the same time, we will continue to build up the capabilities of the moderate opposition. And here I want to thank the members of this committee and many others in Congress who have supported these efforts and supported them very strongly. Our goal is to help the moderate forces stabilize areas under their control, defend civilians, empower them to go on the offensive against Daesh, and promote the conditions for a negotiated political transition, recognizing, as I think almost every person has said, there is no military solution.
Now, Mr. Chairman, we all know that Daesh is a threat to America’s security and interests. It poses an unacceptable danger to our personnel and facilities in Iraq and elsewhere. It seeks to destroy both the short and long-term stability of the broader Middle East. And it is exacerbating a refugee crisis that has placed extraordinary economic and political burden on our friends and allies in the region.
One thing is certain: Daesh will continue to spread until or unless it is stopped. So there should be no question that we, with our partners, have a moral duty and a profound international security interest and national security interest in stopping them.
That is where the fight against Daesh now stands. A coalition that two and a half months ago did not even exist is now taking the fight to the enemy. It was cobbled together by strong American leadership and by steady, intensive diplomacy with countries that disagree on many things but all share an aversion to extremism. Now I think all of you would agree we need to summon that same determination to find the common ground here in Washington.
That is why in the hours, days, and weeks to come, we’re determined to work with you, first and foremost to develop an approach that can generate broad bipartisan support, while ensuring that the President has the flexibility to successfully prosecute this effort. That’s the balance.
What do we envision, specifically regarding an AUMF? Importantly – and I think I will lay out today a very clear set of principles that I hope will be instructive – we do not think an AUMF should include a geographic limitation. We don’t anticipate conducting operations in countries other than Iraq or Syria; but to the extent that ISIL poses a threat to American interests and personnel in other countries, we would not want an AUMF to constrain our ability to use appropriate force against ISIL in those locations if necessary. In our view, it would be a mistake to advertise to ISIL that there are safe havens for them outside of Iraq or Syria.
On the issue of combat operations, I know this is hotly debated, as it ought to be and as it is, with passionate and persuasive arguments on both sides. The President has been crystal-clear that his policy is that U.S. military forces will not be deployed to conduct ground combat operations against ISIL and that will be the responsibility of local forces, because that is what our local partners and allies want, that is what we learned works best in the context of our Iraq experience, that is what is best for preserving our coalition, and most importantly, it is in the best interest of the United States.
However, while we certainly believe that this is the soundest possible policy, and while the President has been clear he is open to clarifications on the use of U.S. combat troops to be outlined in an AUMF, it doesn’t mean we should preemptively bind the hands of the Commander-in-Chief or our commanders in the field in responding to scenarios and contingencies that are impossible to foresee.
And finally, with respect to duration, we can be sure that this confrontation is not going to be over quickly, as the President and I have said many times. We understand, however, the desire of many to avoid a completely open-ended authorization. And I note that Chairman Menendez has suggested that a three-year limitation should be put into an AUMF. We support that proposal, but we support it subject to a provision that we should work through together that provides for extension in the event that circumstances require it. And we think it ought to be advertised as such upfront.
To sum up, Mr. Chairman and members of the committee, I ask for your help in, above all, approving on a bipartisan basis – with the strongest vote possible, because everybody will read messages into that vote – an Authorization for Use of Military Force in connection with our campaign and that of our many partners in order to defeat a terrible, vicious, different kind of enemy.
Almost a quarter-century ago, when I here, then a 47-year-old senator with certainly a darker head of hair, President George H.W. Bush sent his Secretary of State James Baker to ask this committee for the authority to respond militarily to the Iraqi invasion of Kuwait. The country was divided. Congress was divided. But this committee drafted an authorization and it passed the Congress with a majority that the New York Times described as “decisive and bipartisan.” And armed with that mandate, Secretary Baker built the coalition that won the First Gulf War.
Now, that was a different time and it was a different conflict and it called for a different response. But it was also this body – this committee and then the Senate – at its bipartisan best. And what we need from you today to strengthen and unify our own coalition is exactly that kind of cooperative effort. The world will be watching what we together are willing and able to do. And this is obviously not a partisan issue; it’s a leadership issue. It’s a test of our government’s ability and our nation’s ability to stand together. It’s a test of our generation’s resolve to build a safer and more secure world. And I know every single one of you wants to defeat ISIL. A bold, bipartisan mandate would strengthen our hand, and I hope that today you can move closer to that goal.
So thank you and I’m pleased to answer any questions.
Remarks Before the Senate Foreign Relations Committee
Remarks
John Kerry
Secretary of State
Washington, DC
December 9, 2014
SECRETARY KERRY: Well, Mr. Chairman and Ranking Member Corker and all of my former colleagues, it really is a pleasure for me to be back before the Foreign Relations Committee. During my time here, I think we got some things right and we certainly wound up wishing we’d done some things differently. But I think most of us would agree – and I saw it during both parties’ chairmanships, including the years that Senator Lugar and I were here – that this committee works best and makes the greatest contribution to our foreign policy and our country when it addresses the most important issues in a strong bipartisan fashion.
And this is one of those issues. The chairman and the ranking member have both said that. This is one of the moments when a bipartisan approach really is critical.
As you know, the President is committed to engaging with the committee and all of your colleagues in the House and Senate regarding a new authorization for use of military force – as we call it in short, the AUMF – specifically against the terrorist group known as ISIL, though in the region is it called Daesh, and specifically because they believe very deeply it is not a state and it does not represent Islam.
So we are looking for this authorization with respect to efforts against Daesh and affiliated groups, and I want to thank Chairman Menendez and the entire committee for leading the effort in Congress and for all of the important work that you have already done on this complicated and challenging issue. It is important that this committee lead the Congress and the country, and I think you know I believe that.
Now, I realize we may not get there overnight. I’ve heard the ranking member’s comments just now, and we understand the clock. We certainly won’t resolve everything and get there this afternoon, in the next few hours. But I do think this discussion is important, and I think we all agree that this discussion has to conclude with a bipartisan vote that makes clear that this is not one party’s fight against Daesh, but rather that it reflects our united determination to degrade and ultimately defeat Daesh. And the world needs to understand that from the United States Congress, above all.
Our coalition partners need to know that from all of you, and the men and women of our armed forces deserve to know it from all of you. And Daesh’s cadre of killers and rapists and bigots need to absolutely understand it clearly. That’s why this matters.
Now toward that end, we ask you now to work closely with us on a bipartisan basis to develop language that provides a clear signal of support for our ongoing military operations against Daesh. Our position on the text is really pretty straightforward. The authorization, or AUMF, should give the President the clear mandate and flexibility he needs to successfully prosecute the armed conflict against Daesh and affiliated forces, but the authorization should also be limited and specific to the threat posed by that group and by forces associated with it.
Now, I’ll come back to the question of the AUMF in a minute. But we believe that as we embark on this important discussion context matters. All of us want to see the United States succeed and all of us want to see Daesh defeated, so we’re united on that. And I want to bring the committee up to date on precisely where our campaign now stands.
Mr. Chairman, less than three months ago – perhaps two and a half months, a little more – have passed since the international community came together in a coalition, whose purpose is to degrade and defeat Daesh. Two and a half months ago, it didn’t exist – not it, Daesh, but the coalition – and the 60 countries that assembled recently in Brussels. We organized, and I had the privilege of chairing the first ministerial-level meeting of the coalition last week in Brussels.
We heard Iraqi Prime Minister Abadi describe to us the effort that his leadership team is making to bring Iraqis together, strengthen their security forces, take the fight to Daesh, and improve and reform governance. We also heard General John Allen, our special envoy to the coalition, review the progress that is being made in the five lines of coalition effort: to shrink the territory controlled by Daesh, to cut off its financing, to block its recruitment of foreign fighters, to expose the hypocrisy of its absurd religious claims, and to provide humanitarian aid to the victims of its violence.
During the meeting, I have to tell you, I was particularly impressed by the leadership activism, and quite frankly, the anger towards Daesh that is being displayed by Arab and Muslim states. Governments that do not always agree on other issues are coming together in opposition to this profoundly anti-Islamic terrorist organization.
And now, to be clear, ISIL continues to commit serious vicious crimes and it still controls more territory than al-Qaida ever did. It will be years, not months, before it is defeated. We know that. But our coalition is measurably already making a difference.
To date, we have launched more than 1,150 today air strikes against Daesh. These operations have reduced its leadership, undermined its propaganda, squeezed its resources, damaged its logistical and operational capabilities, and compelled it to disperse its forces and change its tactics. It is becoming clear that the combination of coalition airstrikes and local ground partners is a potent one. In fact, virtually every time a local Iraqi force has worked in coordination with our air cover they have not only defeated Daesh, they have routed it.
In Iraq, progress also continues in the political arena. And this is no less important, frankly. Last week, after years of intensive efforts, the government in Baghdad reached an interim accord with the Kurdistan Regional Government on hydrocarbon exports and revenue sharing. That has been long sought after, and it’s a big deal that they got it. It’s good for the country’s economy, but it’s even better for its unity and stability and for the imprint of the direction that they’re moving in.
In addition, a new defense minister is a Sunni, whose appointment was an important step towards a more inclusive government. And with his leadership and that of the new interior minister, the process of reforming the nation’s security forces has a genuine chance for success.
Meanwhile, the prime minister is taking bold steps to improve relations with his country’s neighbors. And those neighbors, including Saudi Arabia, the UAE, and Turkey, have been responding. Now, I want to underscore it’s too early to declare a new era in regional relations, but countries that had been drifting apart or even in conflict with each other are now in the process of coming together and breaking down the barriers that were created. And that is helpful to our coalition and it is bad news for Daesh.
Beating back the threat that Daesh poses to Iraq is job number one for our Iraqi partners and for our coalition. But even if the government in Baghdad fulfills its responsibilities, it is still going to face a dire challenge because of the events in Syria.
Now, if you recall, the coalition’s decision to carry out airstrikes in Syria came in response to a request from Iraq for help in defending against Daesh’s brazen attack. To date, we and our Arab partners have conducted over 500 airstrikes in Syria, targeting areas where Daesh had concentrated its fighters, targeting on command and control nodes, finance centers, training camps, and oil refineries. Our objective is to further degrade Daesh’s capabilities and to deny it the freedom of movement and resupply that it has previously enjoyed.
At the same time, we will continue to build up the capabilities of the moderate opposition. And here I want to thank the members of this committee and many others in Congress who have supported these efforts and supported them very strongly. Our goal is to help the moderate forces stabilize areas under their control, defend civilians, empower them to go on the offensive against Daesh, and promote the conditions for a negotiated political transition, recognizing, as I think almost every person has said, there is no military solution.
Now, Mr. Chairman, we all know that Daesh is a threat to America’s security and interests. It poses an unacceptable danger to our personnel and facilities in Iraq and elsewhere. It seeks to destroy both the short and long-term stability of the broader Middle East. And it is exacerbating a refugee crisis that has placed extraordinary economic and political burden on our friends and allies in the region.
One thing is certain: Daesh will continue to spread until or unless it is stopped. So there should be no question that we, with our partners, have a moral duty and a profound international security interest and national security interest in stopping them.
That is where the fight against Daesh now stands. A coalition that two and a half months ago did not even exist is now taking the fight to the enemy. It was cobbled together by strong American leadership and by steady, intensive diplomacy with countries that disagree on many things but all share an aversion to extremism. Now I think all of you would agree we need to summon that same determination to find the common ground here in Washington.
That is why in the hours, days, and weeks to come, we’re determined to work with you, first and foremost to develop an approach that can generate broad bipartisan support, while ensuring that the President has the flexibility to successfully prosecute this effort. That’s the balance.
What do we envision, specifically regarding an AUMF? Importantly – and I think I will lay out today a very clear set of principles that I hope will be instructive – we do not think an AUMF should include a geographic limitation. We don’t anticipate conducting operations in countries other than Iraq or Syria; but to the extent that ISIL poses a threat to American interests and personnel in other countries, we would not want an AUMF to constrain our ability to use appropriate force against ISIL in those locations if necessary. In our view, it would be a mistake to advertise to ISIL that there are safe havens for them outside of Iraq or Syria.
On the issue of combat operations, I know this is hotly debated, as it ought to be and as it is, with passionate and persuasive arguments on both sides. The President has been crystal-clear that his policy is that U.S. military forces will not be deployed to conduct ground combat operations against ISIL and that will be the responsibility of local forces, because that is what our local partners and allies want, that is what we learned works best in the context of our Iraq experience, that is what is best for preserving our coalition, and most importantly, it is in the best interest of the United States.
However, while we certainly believe that this is the soundest possible policy, and while the President has been clear he is open to clarifications on the use of U.S. combat troops to be outlined in an AUMF, it doesn’t mean we should preemptively bind the hands of the Commander-in-Chief or our commanders in the field in responding to scenarios and contingencies that are impossible to foresee.
And finally, with respect to duration, we can be sure that this confrontation is not going to be over quickly, as the President and I have said many times. We understand, however, the desire of many to avoid a completely open-ended authorization. And I note that Chairman Menendez has suggested that a three-year limitation should be put into an AUMF. We support that proposal, but we support it subject to a provision that we should work through together that provides for extension in the event that circumstances require it. And we think it ought to be advertised as such upfront.
To sum up, Mr. Chairman and members of the committee, I ask for your help in, above all, approving on a bipartisan basis – with the strongest vote possible, because everybody will read messages into that vote – an Authorization for Use of Military Force in connection with our campaign and that of our many partners in order to defeat a terrible, vicious, different kind of enemy.
Almost a quarter-century ago, when I here, then a 47-year-old senator with certainly a darker head of hair, President George H.W. Bush sent his Secretary of State James Baker to ask this committee for the authority to respond militarily to the Iraqi invasion of Kuwait. The country was divided. Congress was divided. But this committee drafted an authorization and it passed the Congress with a majority that the New York Times described as “decisive and bipartisan.” And armed with that mandate, Secretary Baker built the coalition that won the First Gulf War.
Now, that was a different time and it was a different conflict and it called for a different response. But it was also this body – this committee and then the Senate – at its bipartisan best. And what we need from you today to strengthen and unify our own coalition is exactly that kind of cooperative effort. The world will be watching what we together are willing and able to do. And this is obviously not a partisan issue; it’s a leadership issue. It’s a test of our government’s ability and our nation’s ability to stand together. It’s a test of our generation’s resolve to build a safer and more secure world. And I know every single one of you wants to defeat ISIL. A bold, bipartisan mandate would strengthen our hand, and I hope that today you can move closer to that goal.
So thank you and I’m pleased to answer any questions.
SECRETARY KERRY'S REMARKS ON KOSOVO GOVERNMENT FORMATION
FROM; U.S. STATE DEPARTMENT
Government Formation in Kosovo
Press Statement
John Kerry
Secretary of State
Washington, DC
December 9, 2014
We congratulate Kosovo on the constitution of its Assembly and formation of its government -- the first democratic transition of political authority resulting from free and fair elections in all of Kosovo’s territory. This coalition government, and the process that led to its formation, demonstrate the resilience and vitality of Kosovo’s democratic and political institutions.
We applaud President Jahjaga for her steadfast leadership to ensure that this transition occurred in accordance with Kosovo’s laws and constitution. We also congratulate Prime Minister Isa Mustafa and look forward to working closely with him and his new cabinet as they confront the many challenges that face Kosovo and the region.
The United States will continue to support Kosovo’s efforts to meet these challenges, including the Dialogue with Serbia on normalization of relations and Kosovo’s commitment to establish a Special Court to handle allegations investigated by the Special Investigative Task Force. We expect the government to work inclusively to support all of Kosovo’s communities, and to seriously address the issue of corruption.
We look forward to continuing our close cooperation with Kosovo on a common agenda that advances Kosovo’s political and economic development and Euro-Atlantic integration.
Government Formation in Kosovo
Press Statement
John Kerry
Secretary of State
Washington, DC
December 9, 2014
We congratulate Kosovo on the constitution of its Assembly and formation of its government -- the first democratic transition of political authority resulting from free and fair elections in all of Kosovo’s territory. This coalition government, and the process that led to its formation, demonstrate the resilience and vitality of Kosovo’s democratic and political institutions.
We applaud President Jahjaga for her steadfast leadership to ensure that this transition occurred in accordance with Kosovo’s laws and constitution. We also congratulate Prime Minister Isa Mustafa and look forward to working closely with him and his new cabinet as they confront the many challenges that face Kosovo and the region.
The United States will continue to support Kosovo’s efforts to meet these challenges, including the Dialogue with Serbia on normalization of relations and Kosovo’s commitment to establish a Special Court to handle allegations investigated by the Special Investigative Task Force. We expect the government to work inclusively to support all of Kosovo’s communities, and to seriously address the issue of corruption.
We look forward to continuing our close cooperation with Kosovo on a common agenda that advances Kosovo’s political and economic development and Euro-Atlantic integration.
PRESIDENT OBAMA'S STATEMENT ON SENATE SELECT COMMITTEE ON INTELLIGENCE REGARDING CIA TORTURE
FROM: THE WHITE HOUSE
December 09, 2014
Statement by the President Report of the Senate Select Committee on Intelligence
Throughout our history, the United States of America has done more than any other nation to stand up for freedom, democracy, and the inherent dignity and human rights of people around the world. As Americans, we owe a profound debt of gratitude to our fellow citizens who serve to keep us safe, among them the dedicated men and women of our intelligence community, including the Central Intelligence Agency. Since the horrific attacks of 9/11, these public servants have worked tirelessly to devastate core al Qaeda, deliver justice to Osama bin Laden, disrupt terrorist operations and thwart terrorist attacks. Solemn rows of stars on the Memorial Wall at the CIA honor those who have given their lives to protect ours. Our intelligence professionals are patriots, and we are safer because of their heroic service and sacrifices.
In the years after 9/11, with legitimate fears of further attacks and with the responsibility to prevent more catastrophic loss of life, the previous administration faced agonizing choices about how to pursue al Qaeda and prevent additional terrorist attacks against our country. As I have said before, our nation did many things right in those difficult years. At the same time, some of the actions that were taken were contrary to our values. That is why I unequivocally banned torture when I took office, because one of our most effective tools in fighting terrorism and keeping Americans safe is staying true to our ideals at home and abroad.
Today’s report by the Senate Select Committee on Intelligence details one element of our nation’s response to 9/11—the CIA’s detention and interrogation program, which I formally ended on one of my first days in office. The report documents a troubling program involving enhanced interrogation techniques on terrorism suspects in secret facilities outside the United States, and it reinforces my long-held view that these harsh methods were not only inconsistent with our values as nation, they did not serve our broader counterterrorism efforts or our national security interests. Moreover, these techniques did significant damage to America’s standing in the world and made it harder to pursue our interests with allies and partners. That is why I will continue to use my authority as President to make sure we never resort to those methods again.
As Commander in Chief, I have no greater responsibility than the safety and security of the American people. We will therefore continue to be relentless in our fight against al Qaeda, its affiliates and other violent extremists. We will rely on all elements of our national power, including the power and example of our founding ideals. That is why I have consistently supported the declassification of today’s report. No nation is perfect. But one of the strengths that makes America exceptional is our willingness to openly confront our past, face our imperfections, make changes and do better. Rather than another reason to refight old arguments, I hope that today’s report can help us leave these techniques where they belong—in the past. Today is also a reminder that upholding the values we profess doesn’t make us weaker, it makes us stronger and that the United States of America will remain the greatest force for freedom and human dignity that the world has ever known.
December 09, 2014
Statement by the President Report of the Senate Select Committee on Intelligence
Throughout our history, the United States of America has done more than any other nation to stand up for freedom, democracy, and the inherent dignity and human rights of people around the world. As Americans, we owe a profound debt of gratitude to our fellow citizens who serve to keep us safe, among them the dedicated men and women of our intelligence community, including the Central Intelligence Agency. Since the horrific attacks of 9/11, these public servants have worked tirelessly to devastate core al Qaeda, deliver justice to Osama bin Laden, disrupt terrorist operations and thwart terrorist attacks. Solemn rows of stars on the Memorial Wall at the CIA honor those who have given their lives to protect ours. Our intelligence professionals are patriots, and we are safer because of their heroic service and sacrifices.
In the years after 9/11, with legitimate fears of further attacks and with the responsibility to prevent more catastrophic loss of life, the previous administration faced agonizing choices about how to pursue al Qaeda and prevent additional terrorist attacks against our country. As I have said before, our nation did many things right in those difficult years. At the same time, some of the actions that were taken were contrary to our values. That is why I unequivocally banned torture when I took office, because one of our most effective tools in fighting terrorism and keeping Americans safe is staying true to our ideals at home and abroad.
Today’s report by the Senate Select Committee on Intelligence details one element of our nation’s response to 9/11—the CIA’s detention and interrogation program, which I formally ended on one of my first days in office. The report documents a troubling program involving enhanced interrogation techniques on terrorism suspects in secret facilities outside the United States, and it reinforces my long-held view that these harsh methods were not only inconsistent with our values as nation, they did not serve our broader counterterrorism efforts or our national security interests. Moreover, these techniques did significant damage to America’s standing in the world and made it harder to pursue our interests with allies and partners. That is why I will continue to use my authority as President to make sure we never resort to those methods again.
As Commander in Chief, I have no greater responsibility than the safety and security of the American people. We will therefore continue to be relentless in our fight against al Qaeda, its affiliates and other violent extremists. We will rely on all elements of our national power, including the power and example of our founding ideals. That is why I have consistently supported the declassification of today’s report. No nation is perfect. But one of the strengths that makes America exceptional is our willingness to openly confront our past, face our imperfections, make changes and do better. Rather than another reason to refight old arguments, I hope that today’s report can help us leave these techniques where they belong—in the past. Today is also a reminder that upholding the values we profess doesn’t make us weaker, it makes us stronger and that the United States of America will remain the greatest force for freedom and human dignity that the world has ever known.
SECRETARY KERRY'S REMARKS ON INTERNATIONAL ANTICORRUPTION DAY
FROM: THE STATE DEPARTMENT
U.S. Welcomes International Anticorruption Day
Press Statement
John Kerry
Secretary of State
Washington, DC
December 9, 2014
On this day, International Anticorruption Day, the United States reiterates its commitment to working with its partners to combat the scourge of corruption. The moral and practical costs of corruption are no longer debatable. Corruption drives instability, popular protests, and revolutions. In some cases, these popular movements produce democratic reform, but in other cases they produce a power vacuum or an authoritarian backlash. Frustration with corruption can also drive insurgency movements and be exploited by terrorist groups to gain popular support. And the proceeds of corruption – which are often sheltered in banks or shell corporations in Western Europe and the United States – enable terrorist financing and sustain unaccountable regimes. Put simply, corruption endangers U.S. national security.
That is why the United States is using a variety of tools, including bilateral diplomacy, multilateral engagement, enforcement, and capacity building assistance, to advance our anticorruption agenda. Through initiatives such as the Ukraine and Arab Forums on Asset Recovery, we help build capacity to ensure motivated governments have the ability, and in some cases, the resources to effectively combat corruption.
Beyond providing technical assistance, we also work to generate the political will to respond to corruption by creating trade incentives for reform, celebrating good performers in venues like the Open Government Partnership, and supporting citizen organizations, journalists, and prosecutors holding public officials accountable. We will also continue to lead by example, including through U.S. enforcement of the Foreign Corrupt Practices Act, cooperation on asset recovery, use of our visa authorities, and our work to enhance open government domestically.
The broad subscription to the United Nations Convention against Corruption (UNCAC) by 174 governments, as well as wide adherence to the Convention on Combating Bribery of Foreign Public Officials, create a shared road map for reform and reflect the firmly established principle that corruption is no longer permissible.
Today, we call on partners in government, civil society, and the private sector, to join us in fighting corruption. We also call on countries undergoing democratic transition to redouble their efforts to build governments that are accountable to citizens and respect the rule of law. Advanced economies, like the United States, should continue to guard against our financial systems becoming havens for the proceeds of corruption, and to ensure that our companies do not pay bribes overseas. And today, we renew our notice to kleptocrats around the world: continued theft from your communities will not be tolerated and the international community is committed to denying safe haven to you and your illicit assets.
U.S. Welcomes International Anticorruption Day
Press Statement
John Kerry
Secretary of State
Washington, DC
December 9, 2014
On this day, International Anticorruption Day, the United States reiterates its commitment to working with its partners to combat the scourge of corruption. The moral and practical costs of corruption are no longer debatable. Corruption drives instability, popular protests, and revolutions. In some cases, these popular movements produce democratic reform, but in other cases they produce a power vacuum or an authoritarian backlash. Frustration with corruption can also drive insurgency movements and be exploited by terrorist groups to gain popular support. And the proceeds of corruption – which are often sheltered in banks or shell corporations in Western Europe and the United States – enable terrorist financing and sustain unaccountable regimes. Put simply, corruption endangers U.S. national security.
That is why the United States is using a variety of tools, including bilateral diplomacy, multilateral engagement, enforcement, and capacity building assistance, to advance our anticorruption agenda. Through initiatives such as the Ukraine and Arab Forums on Asset Recovery, we help build capacity to ensure motivated governments have the ability, and in some cases, the resources to effectively combat corruption.
Beyond providing technical assistance, we also work to generate the political will to respond to corruption by creating trade incentives for reform, celebrating good performers in venues like the Open Government Partnership, and supporting citizen organizations, journalists, and prosecutors holding public officials accountable. We will also continue to lead by example, including through U.S. enforcement of the Foreign Corrupt Practices Act, cooperation on asset recovery, use of our visa authorities, and our work to enhance open government domestically.
The broad subscription to the United Nations Convention against Corruption (UNCAC) by 174 governments, as well as wide adherence to the Convention on Combating Bribery of Foreign Public Officials, create a shared road map for reform and reflect the firmly established principle that corruption is no longer permissible.
Today, we call on partners in government, civil society, and the private sector, to join us in fighting corruption. We also call on countries undergoing democratic transition to redouble their efforts to build governments that are accountable to citizens and respect the rule of law. Advanced economies, like the United States, should continue to guard against our financial systems becoming havens for the proceeds of corruption, and to ensure that our companies do not pay bribes overseas. And today, we renew our notice to kleptocrats around the world: continued theft from your communities will not be tolerated and the international community is committed to denying safe haven to you and your illicit assets.
SECRETARY KERRY'S REACTION TO SENATE REPORT ON TORTURE
FROM: U.S. STATE DEPARTMENT
Release of Senate Select Committee on Intelligence Report
Press Statement
John Kerry
Secretary of State
Washington, DC
December 9, 2014
Release of this report affirms again that one of America's strengths is our democratic system’s ability to recognize and wrestle with our own history, acknowledge mistakes, and correct course. This marks a coda to a chapter in our history. President Obama turned the page on these policies when he took office and during week one banned the use of torture and closed the detention and interrogation program. It was right to end these practices for a simple but powerful reason: they were at odds with our values. They are not who we are, and they're not who or what we had to become, because the most powerful country on earth doesn't have to choose between protecting our security and promoting our values.
Now this report sheds light on this period that's more than five years behind us, so we can discuss and debate our history – and then look again to the future.
As that debate is joined, I want to underscore that while it's uncomfortable and unpleasant to reexamine this period, it's important that this period not define the intelligence community in anyone's minds. Every single day, the State Department and our diplomats and their families are safer because of the men and women of the CIA and the Intelligence Community. They sign up to serve their country the same way our diplomats and our military do. They risk their lives to keep us safe and strengthen America's foreign policy and national security. The awful facts of this report do not represent who they are, period. That context is also important to how we understand history.
Release of Senate Select Committee on Intelligence Report
Press Statement
John Kerry
Secretary of State
Washington, DC
December 9, 2014
Release of this report affirms again that one of America's strengths is our democratic system’s ability to recognize and wrestle with our own history, acknowledge mistakes, and correct course. This marks a coda to a chapter in our history. President Obama turned the page on these policies when he took office and during week one banned the use of torture and closed the detention and interrogation program. It was right to end these practices for a simple but powerful reason: they were at odds with our values. They are not who we are, and they're not who or what we had to become, because the most powerful country on earth doesn't have to choose between protecting our security and promoting our values.
Now this report sheds light on this period that's more than five years behind us, so we can discuss and debate our history – and then look again to the future.
As that debate is joined, I want to underscore that while it's uncomfortable and unpleasant to reexamine this period, it's important that this period not define the intelligence community in anyone's minds. Every single day, the State Department and our diplomats and their families are safer because of the men and women of the CIA and the Intelligence Community. They sign up to serve their country the same way our diplomats and our military do. They risk their lives to keep us safe and strengthen America's foreign policy and national security. The awful facts of this report do not represent who they are, period. That context is also important to how we understand history.
SECRETARY KERRY'S REMARKS WITH ITALIAN FOREIGN MINISTER GENTILONI
FROM: U.S. STATE DEPARTMENT
Remarks With Italian Foreign Minister Paolo Gentiloni Before Their Meeting
Remarks
John Kerry
Secretary of State
Treaty Room
Washington, DC
December 9, 2014
SECRETARY KERRY: I’m very, very happy to welcome the newly appointed Italian Foreign Minister Paolo Gentiloni. We have already met in a couple of places thus far. We had a chance to talk and get to know each other.
But I want to thank him and thank Italy for the tremendous partnership that we have on so many different issues. Italy is right there, working hand in hand, helping not the United States but global aspirations and values that we all share – in Afghanistan, fighting Ebola, helping to stand up and deal with the problem of Ukraine and the work we’ve been doing to stay united and to try to respect the territorial integrity and the sovereignty of Ukraine.
On Libya, Italy has helped us enormously by acting as our protectorate; in other words, representing us without our embassy there at this time. And we’re grateful for the Italian connection and understanding of Libya and the important contribution they can make to resolving this conflict.
So everywhere you turn on the conflicts of today, including the Middle East peace process, we have a partnership. We are moving in the same direction, and that is the best way to be able to solve some very, very difficult problems. So Paolo, I welcome you.
And my pleasure, by the way, to offer you – I have a little gift here. We have the Milan Expo coming up this year, and we just appointed our commissioner to the Milan Expo. And the theme of the Milan Expo for this year, with maybe 20 million visitors or more, and many, many people taking part through the internet, is food security, global food security in an age of insecurity. And just to make sure that the Italian foreign minister is able to do his part, I have a very special apron for you to wear as you do your own food preparation.
FOREIGN MINISTER GENTILONI: I’ll do it.
SECRETARY KERRY: I know. Yeah, I’m sure you will. (Laughter.) Anyway, very, very happy to have you here. Welcome. We’re delighted to have you. Thanks, Paolo.
FOREIGN MINISTER GENTILONI: Thank you very much, John. Well, thanks, first of all, for your support and American participation to the Milan 2015 Expo, which is dedicated, as you said, to feeding the planet. It will be a global and also very Italian event, and I think it will be a very important thing. Our meetings we confirm the excellent relations between Italy and U.S. in all fields, I should say – economy, culture, and obviously on political and security issues.
I think that these good relations – these excellent relations are very important now that we are facing new challenges as an alliance, especially in Europe, both in our eastern and in our southern borders. And so we need to strengthen even more this cooperation. We will do that, and I’m convinced that the Italian-American friendship will continue to promote peace, democracy, and the human rights. So thank you very much, John.
SECRETARY KERRY: Thank you, Paolo.
FOREIGN MINISTER GENTILONI: Thank you.
SECRETARY KERRY: (In Italian). Grazie.
FOREIGN MINISTER GENTILONI: Grazie.
SECRETARY KERRY: Thank you all very much. Thank you.
Remarks With Italian Foreign Minister Paolo Gentiloni Before Their Meeting
Remarks
John Kerry
Secretary of State
Treaty Room
Washington, DC
December 9, 2014
SECRETARY KERRY: I’m very, very happy to welcome the newly appointed Italian Foreign Minister Paolo Gentiloni. We have already met in a couple of places thus far. We had a chance to talk and get to know each other.
But I want to thank him and thank Italy for the tremendous partnership that we have on so many different issues. Italy is right there, working hand in hand, helping not the United States but global aspirations and values that we all share – in Afghanistan, fighting Ebola, helping to stand up and deal with the problem of Ukraine and the work we’ve been doing to stay united and to try to respect the territorial integrity and the sovereignty of Ukraine.
On Libya, Italy has helped us enormously by acting as our protectorate; in other words, representing us without our embassy there at this time. And we’re grateful for the Italian connection and understanding of Libya and the important contribution they can make to resolving this conflict.
So everywhere you turn on the conflicts of today, including the Middle East peace process, we have a partnership. We are moving in the same direction, and that is the best way to be able to solve some very, very difficult problems. So Paolo, I welcome you.
And my pleasure, by the way, to offer you – I have a little gift here. We have the Milan Expo coming up this year, and we just appointed our commissioner to the Milan Expo. And the theme of the Milan Expo for this year, with maybe 20 million visitors or more, and many, many people taking part through the internet, is food security, global food security in an age of insecurity. And just to make sure that the Italian foreign minister is able to do his part, I have a very special apron for you to wear as you do your own food preparation.
FOREIGN MINISTER GENTILONI: I’ll do it.
SECRETARY KERRY: I know. Yeah, I’m sure you will. (Laughter.) Anyway, very, very happy to have you here. Welcome. We’re delighted to have you. Thanks, Paolo.
FOREIGN MINISTER GENTILONI: Thank you very much, John. Well, thanks, first of all, for your support and American participation to the Milan 2015 Expo, which is dedicated, as you said, to feeding the planet. It will be a global and also very Italian event, and I think it will be a very important thing. Our meetings we confirm the excellent relations between Italy and U.S. in all fields, I should say – economy, culture, and obviously on political and security issues.
I think that these good relations – these excellent relations are very important now that we are facing new challenges as an alliance, especially in Europe, both in our eastern and in our southern borders. And so we need to strengthen even more this cooperation. We will do that, and I’m convinced that the Italian-American friendship will continue to promote peace, democracy, and the human rights. So thank you very much, John.
SECRETARY KERRY: Thank you, Paolo.
FOREIGN MINISTER GENTILONI: Thank you.
SECRETARY KERRY: (In Italian). Grazie.
FOREIGN MINISTER GENTILONI: Grazie.
SECRETARY KERRY: Thank you all very much. Thank you.
A.G. HOLDER ANNOUNCES STRICTER POLICIES REGARDING PROFILING
FROM: U.S. JUSTICE DEPARTMENT
Monday, December 8, 2014
Attorney General Holder Announces Federal Law Enforcement Agencies To Adopt Stricter Policies To Curb Profiling
WASHINGTON – U.S. Attorney General Eric Holder announced Monday that the Justice Department will take new steps to bar profiling by federal law enforcement agencies, building upon a 2003 policy that had previously only addressed the consideration of race and ethnicity in conducting federal investigations. The new policy will address the use of other characteristics as well—including national origin, gender, gender identity, religion, and sexual orientation—and applies a uniform standard to all law enforcement, national security, and intelligence activities conducted by the Department’s law enforcement components. The new guidance also applies to state and local law enforcement law officers who participate in federal law enforcement task forces.
The issuance of the new policy completes a thorough review first launched by the Attorney General shortly after taking office, and reaffirms the federal government’s deep commitment to ensuring that its law enforcement agencies conduct their activities in an unbiased manner.
In announcing the new policy, the Attorney General said that biased law enforcement practices not only perpetuate negative stereotypes and promote mistrust of law enforcement, but also are counterproductive to the goal of good policing.
“As Attorney General, I have repeatedly made clear that racial profiling by law enforcement is not only wrong, it is misguided and ineffective – because it can mistakenly focus investigative efforts, waste precious resources and, ultimately, undermine the public trust. Particularly in light of recent incidents we’ve seen at the local level – and the concerns about trust in the criminal justice process which so many have raised throughout the nation – it’s imperative that we take every possible action to institute sound, fair and strong policing practices.”
The Attorney General added: “With this new Guidance, we take a major and important step forward to ensure effective policing by federal law enforcement officials – as well as state and local law enforcement participating in federal task forces throughout the nation. This Guidance is the product of five years of scrupulous review. It codifies important new protections for those who come into contact with federal law enforcement agents and their partners. And it brings enhanced training, oversight, and accountability to federal law enforcement across the country, so that isolated acts do not tarnish the exemplary work that’s performed by the overwhelming majority of America’s hard-working law enforcement officials each and every day."
The new policy, which is spelled out in a memorandum circulated Monday, instructs that, in making routine or spontaneous law enforcement decisions, officers may not use race, ethnicity, gender, national origin, religion, sexual orientation, or gender identity to any degree, unless listed characteristics apply to a suspect description. Under the policy, federal law enforcement officers will be prohibited from acting on the belief that possession of a listed characteristic by itself signals a higher risk of criminality.
In all activities other than routine or spontaneous law enforcement, officers may consider the listed personal characteristics only to the extent there is trustworthy information, relevant to the locality or timeframe, that links individuals with a listed characteristic to a particular criminal incident, criminal scheme, organization, a threat to national or homeland security, a violation of federal immigration law or an authorized intelligence activity. In relying on any of the listed characteristics, an officer must also reasonably believe that the activity to be undertaken is merited under the totality of the circumstances.
Monday, December 8, 2014
Attorney General Holder Announces Federal Law Enforcement Agencies To Adopt Stricter Policies To Curb Profiling
WASHINGTON – U.S. Attorney General Eric Holder announced Monday that the Justice Department will take new steps to bar profiling by federal law enforcement agencies, building upon a 2003 policy that had previously only addressed the consideration of race and ethnicity in conducting federal investigations. The new policy will address the use of other characteristics as well—including national origin, gender, gender identity, religion, and sexual orientation—and applies a uniform standard to all law enforcement, national security, and intelligence activities conducted by the Department’s law enforcement components. The new guidance also applies to state and local law enforcement law officers who participate in federal law enforcement task forces.
The issuance of the new policy completes a thorough review first launched by the Attorney General shortly after taking office, and reaffirms the federal government’s deep commitment to ensuring that its law enforcement agencies conduct their activities in an unbiased manner.
In announcing the new policy, the Attorney General said that biased law enforcement practices not only perpetuate negative stereotypes and promote mistrust of law enforcement, but also are counterproductive to the goal of good policing.
“As Attorney General, I have repeatedly made clear that racial profiling by law enforcement is not only wrong, it is misguided and ineffective – because it can mistakenly focus investigative efforts, waste precious resources and, ultimately, undermine the public trust. Particularly in light of recent incidents we’ve seen at the local level – and the concerns about trust in the criminal justice process which so many have raised throughout the nation – it’s imperative that we take every possible action to institute sound, fair and strong policing practices.”
The Attorney General added: “With this new Guidance, we take a major and important step forward to ensure effective policing by federal law enforcement officials – as well as state and local law enforcement participating in federal task forces throughout the nation. This Guidance is the product of five years of scrupulous review. It codifies important new protections for those who come into contact with federal law enforcement agents and their partners. And it brings enhanced training, oversight, and accountability to federal law enforcement across the country, so that isolated acts do not tarnish the exemplary work that’s performed by the overwhelming majority of America’s hard-working law enforcement officials each and every day."
The new policy, which is spelled out in a memorandum circulated Monday, instructs that, in making routine or spontaneous law enforcement decisions, officers may not use race, ethnicity, gender, national origin, religion, sexual orientation, or gender identity to any degree, unless listed characteristics apply to a suspect description. Under the policy, federal law enforcement officers will be prohibited from acting on the belief that possession of a listed characteristic by itself signals a higher risk of criminality.
In all activities other than routine or spontaneous law enforcement, officers may consider the listed personal characteristics only to the extent there is trustworthy information, relevant to the locality or timeframe, that links individuals with a listed characteristic to a particular criminal incident, criminal scheme, organization, a threat to national or homeland security, a violation of federal immigration law or an authorized intelligence activity. In relying on any of the listed characteristics, an officer must also reasonably believe that the activity to be undertaken is merited under the totality of the circumstances.
EXPORT-IMPORT BANK, VIRGINIA SMALL BUSINESS DEVELOPMENT CENTER WILL WORK TO INCREASE EXPORTS
FROM: U.S. EXPORT-IMPORT BANK
Ex-Im Bank Joins with Virginia Small Business Development Center 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 Virginia Small Business Development Center/George Mason University 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 can offer Virginia businesses that want to grow their exports numerous tools and resources,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “In FY 2014 alone, Ex-Im Bank supported $306.2 million in Virginia small business exports, and we would like to increase the amount in the coming year.”
“The Virginia SBDC Network is very pleased to be in the City/State program,” said Jody Keenan, State Director for the Virginia SBDC Network. “The SBDC helps companies overcome barriers to exporting, and Ex-Im Bank resources and expertise are important financial solutions to bring to our clients.”
Small business exporters can learn more about how Ex-Im Bank products can empower them to increase foreign sales visiting exim.gov/smallbusiness.
Ex-Im Bank Joins with Virginia Small Business Development Center 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 Virginia Small Business Development Center/George Mason University 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 can offer Virginia businesses that want to grow their exports numerous tools and resources,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “In FY 2014 alone, Ex-Im Bank supported $306.2 million in Virginia small business exports, and we would like to increase the amount in the coming year.”
“The Virginia SBDC Network is very pleased to be in the City/State program,” said Jody Keenan, State Director for the Virginia SBDC Network. “The SBDC helps companies overcome barriers to exporting, and Ex-Im Bank resources and expertise are important financial solutions to bring to our clients.”
Small business exporters can learn more about how Ex-Im Bank products can empower them to increase foreign sales visiting exim.gov/smallbusiness.
U.S.-FRANCE MAKE AGREEMENT ON COMPENSATION FOR CERTAIN HOLOCAUST-RELATED VICTIMS
FROM: U.S. STATE DEPARTMENT
U.S.-France Agreement on Compensation for Certain Victims of Holocaust-Related Deportation from France Who Are Not Covered by French Programs
Fact Sheet
Office of the Spokesperson
Washington, DC
December 5, 2014
The United States and France have reached an agreement for substantial compensation in connection with the wrongs suffered by Holocaust victims deported from France. The United States and France plan to sign the agreement Monday, December 8th. The centerpiece of the agreement is a $60 million lump sum payment by France to the United States, to pay out to eligible claimants. France recognizes that Americans and other foreigners deported during the Holocaust have not been able to gain access to the French pension program, and has agreed to compensate them through this agreement. In exchange for the lump sum, the U.S. Government would undertake an international obligation to recognize and affirmatively protect the immunity of France and its instrumentalities with regard to Holocaust deportation claims in the United States, and to act as necessary to ensure an enduring legal peace.
The agreement is expected to result in payments to several thousand U.S. citizens and others around the world. The U.S. Government will be solely responsible for distributing the funds among eligible claimants. There are three categories of claimants.
First, those who survived deportation from France and are nationals of a country other than France (with the exception of those from countries covered by bilateral agreements with France: Belgium, Poland, the United Kingdom, and former Czechoslovakia) will be eligible to apply. It is estimated that each of these eligible survivors would receive a payment of over one hundred thousand dollars.
Second, spouses of those who were deported from France and are nationals of a country other than France (or one of the four countries mentioned above) will be eligible to apply. It is estimated that each spouse would receive a payment of tens of thousands of dollars.
Third, estates “standing in the shoes” of survivors or spouses who died after the end of World War II would be eligible to apply for compensation on their behalf. These estates would need to show that the deported survivor or the surviving spouse was a national of a country other than France (or one of the four countries mentioned above). The amount of payments to the estates of survivors and spouses would depend upon the year when the survivor or spouse died.
The French Parliament must approve the agreement before it enters into force, and before any payments can be made. Following entry into force, the United States will publish a notice of the program, including the information needed for the filing of claims. Claimants will then be afforded an adequate period of time to file their claims through a fair and streamlined procedure.
French citizens, who are not covered by this agreement, may continue to apply under the French pension program, even if they have never applied before, or applied and were turned down. Moreover, all individuals who were minors at the time of the deportation and lost a parent who was deported and died during the Holocaust are eligible for a pension or lump sum payment through a French program created for such orphans of any nationality. France has already paid over $60 million to over 1,000 eligible orphans in the United States, and additional amounts to orphans from Israel and other countries. Others who lost one or both parents may apply.
U.S.-France Agreement on Compensation for Certain Victims of Holocaust-Related Deportation from France Who Are Not Covered by French Programs
Fact Sheet
Office of the Spokesperson
Washington, DC
December 5, 2014
The United States and France have reached an agreement for substantial compensation in connection with the wrongs suffered by Holocaust victims deported from France. The United States and France plan to sign the agreement Monday, December 8th. The centerpiece of the agreement is a $60 million lump sum payment by France to the United States, to pay out to eligible claimants. France recognizes that Americans and other foreigners deported during the Holocaust have not been able to gain access to the French pension program, and has agreed to compensate them through this agreement. In exchange for the lump sum, the U.S. Government would undertake an international obligation to recognize and affirmatively protect the immunity of France and its instrumentalities with regard to Holocaust deportation claims in the United States, and to act as necessary to ensure an enduring legal peace.
The agreement is expected to result in payments to several thousand U.S. citizens and others around the world. The U.S. Government will be solely responsible for distributing the funds among eligible claimants. There are three categories of claimants.
First, those who survived deportation from France and are nationals of a country other than France (with the exception of those from countries covered by bilateral agreements with France: Belgium, Poland, the United Kingdom, and former Czechoslovakia) will be eligible to apply. It is estimated that each of these eligible survivors would receive a payment of over one hundred thousand dollars.
Second, spouses of those who were deported from France and are nationals of a country other than France (or one of the four countries mentioned above) will be eligible to apply. It is estimated that each spouse would receive a payment of tens of thousands of dollars.
Third, estates “standing in the shoes” of survivors or spouses who died after the end of World War II would be eligible to apply for compensation on their behalf. These estates would need to show that the deported survivor or the surviving spouse was a national of a country other than France (or one of the four countries mentioned above). The amount of payments to the estates of survivors and spouses would depend upon the year when the survivor or spouse died.
The French Parliament must approve the agreement before it enters into force, and before any payments can be made. Following entry into force, the United States will publish a notice of the program, including the information needed for the filing of claims. Claimants will then be afforded an adequate period of time to file their claims through a fair and streamlined procedure.
French citizens, who are not covered by this agreement, may continue to apply under the French pension program, even if they have never applied before, or applied and were turned down. Moreover, all individuals who were minors at the time of the deportation and lost a parent who was deported and died during the Holocaust are eligible for a pension or lump sum payment through a French program created for such orphans of any nationality. France has already paid over $60 million to over 1,000 eligible orphans in the United States, and additional amounts to orphans from Israel and other countries. Others who lost one or both parents may apply.
DOJ SETTLES WITH BUS CO. IN PEOPLE WITH DISABILITIES ACCESSIBILITY CASE
FROM: U.S. JUSTICE DEPARTMENT
Friday, December 5, 2014
Justice Department Announces Settlement with Virginia Bus Company to Ensure Accessibility for People with Disabilities
The Justice Department announced today that it has entered into a settlement under the Americans with Disabilities Act (ADA) with DC Trails Inc., a bus transportation company in Lorton, Virginia, that ensures that their buses are accessible to people with disabilities, including individuals who use wheelchairs or other mobility aids. DC Trails is a covered large, fixed-route over-the-road bus operator under the ADA.
The settlement is the result of collaborative enforcement efforts between the Civil Rights Division at the Justice Department, the United States Attorney’s Office for the Eastern District of Virginia and the Federal Motor Carrier Safety Administration (FMCSA) of the U.S. Department of Transportation (DOT). The agreement remedies violations by DC Trails, including failing to provide accessible buses for all trips, failing to report the number of passengers with disabilities that used the lift to board, requiring individuals with disabilities to provide advance notice prior to a trip and failing to train its staff on accessibility requirements. The settlement agreement requires DC Trails to:
Comply with all ADA requirements for accessible service, and not exclude persons with disabilities from their transportation services;
Ensure that the company’s employees and contractors do not require or otherwise inform passengers with disabilities who use or seek to use DC Trails’ fixed route service that they must provide advance notice in order to use an accessible bus;
Ensure that DC Trails only uses wheelchair-accessible buses for its fixed route service; and
Train all employees and contractors on the requirements of the ADA for large, fixed-route over the road bus operators.
“Intercity bus service is a growing and effective means of affordable transportation across this country,” said Assistant Attorney General Vanita Gupta of the Civil Rights Division. “People with disabilities must be able to count on accessible bus service that is equal to the service provided to others.”
“This settlement agreement demonstrates the United States Attorney’s Office’s commitment to ensure that individuals with disabilities receive equal access to public accommodations, including transportation services that are operated out of Northern Virginia,” said U.S. Attorney Dana Boente for the Eastern District of Virginia.
This is the Justice Department’s 24th settlement with bus companies over the past several years to ensure compliance with accessibility obligations.
Title III of the ADA prohibits discrimination against people with disabilities by public accommodations, including large over-the-road bus companies. DOT’s regulations implementing the ADA require that these companies perform regular maintenance checks to ensure that wheelchair lifts work, provide prompt accessible service with an alternative carrier if the company does not have a lift-equipped bus, train their employees on accessibility requirements, and file annual accessibility reports with the FMCSA.
This matter was handled for the Department by Assistant United States Attorney Steven Gordon, Coordinator of the United States Attorney’s Office’s Civil Rights Enforcement Program, and David W. Knight of the Civil Rights Division.
Friday, December 5, 2014
Justice Department Announces Settlement with Virginia Bus Company to Ensure Accessibility for People with Disabilities
The Justice Department announced today that it has entered into a settlement under the Americans with Disabilities Act (ADA) with DC Trails Inc., a bus transportation company in Lorton, Virginia, that ensures that their buses are accessible to people with disabilities, including individuals who use wheelchairs or other mobility aids. DC Trails is a covered large, fixed-route over-the-road bus operator under the ADA.
The settlement is the result of collaborative enforcement efforts between the Civil Rights Division at the Justice Department, the United States Attorney’s Office for the Eastern District of Virginia and the Federal Motor Carrier Safety Administration (FMCSA) of the U.S. Department of Transportation (DOT). The agreement remedies violations by DC Trails, including failing to provide accessible buses for all trips, failing to report the number of passengers with disabilities that used the lift to board, requiring individuals with disabilities to provide advance notice prior to a trip and failing to train its staff on accessibility requirements. The settlement agreement requires DC Trails to:
Comply with all ADA requirements for accessible service, and not exclude persons with disabilities from their transportation services;
Ensure that the company’s employees and contractors do not require or otherwise inform passengers with disabilities who use or seek to use DC Trails’ fixed route service that they must provide advance notice in order to use an accessible bus;
Ensure that DC Trails only uses wheelchair-accessible buses for its fixed route service; and
Train all employees and contractors on the requirements of the ADA for large, fixed-route over the road bus operators.
“Intercity bus service is a growing and effective means of affordable transportation across this country,” said Assistant Attorney General Vanita Gupta of the Civil Rights Division. “People with disabilities must be able to count on accessible bus service that is equal to the service provided to others.”
“This settlement agreement demonstrates the United States Attorney’s Office’s commitment to ensure that individuals with disabilities receive equal access to public accommodations, including transportation services that are operated out of Northern Virginia,” said U.S. Attorney Dana Boente for the Eastern District of Virginia.
This is the Justice Department’s 24th settlement with bus companies over the past several years to ensure compliance with accessibility obligations.
Title III of the ADA prohibits discrimination against people with disabilities by public accommodations, including large over-the-road bus companies. DOT’s regulations implementing the ADA require that these companies perform regular maintenance checks to ensure that wheelchair lifts work, provide prompt accessible service with an alternative carrier if the company does not have a lift-equipped bus, train their employees on accessibility requirements, and file annual accessibility reports with the FMCSA.
This matter was handled for the Department by Assistant United States Attorney Steven Gordon, Coordinator of the United States Attorney’s Office’s Civil Rights Enforcement Program, and David W. Knight of the Civil Rights Division.
U.S. EXPORT-IMPORT BANK CHAIRMAN RELEASES STATEMENT ON EXPORT DATA
FROM: U.S. EXPORT-IMPORT BANK
Export-Import Bank Chairman Fred P. Hochberg’s Statement on the Release of Export Data from the Commerce Department
U.S. Exports Reach $197.5 Billion in October
Washington, D.C. – Ex-Im Bank Chairman and President Fred P. Hochberg issued the following statement with respect to October’s export data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department. According to BEA, the United States exported $197.5 billion of goods and services in October 2014.
“These numbers clearly demonstrate that products stamped ‘made in America’ are in high demand throughout the world,” said Hochberg. “Ex-Im Bank will continue to support U.S. exporters and their workers as they expand their footprint in the global marketplace and create good-paying jobs here at home.”
Exports of goods and services over the last twelve months totaled $2.3 trillion, which is 47.7 percent above 2009 levels, and have been growing at an annualized rate of 8.5 percent over the last five years.
Export-Import Bank Chairman Fred P. Hochberg’s Statement on the Release of Export Data from the Commerce Department
U.S. Exports Reach $197.5 Billion in October
Washington, D.C. – Ex-Im Bank Chairman and President Fred P. Hochberg issued the following statement with respect to October’s export data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department. According to BEA, the United States exported $197.5 billion of goods and services in October 2014.
“These numbers clearly demonstrate that products stamped ‘made in America’ are in high demand throughout the world,” said Hochberg. “Ex-Im Bank will continue to support U.S. exporters and their workers as they expand their footprint in the global marketplace and create good-paying jobs here at home.”
Exports of goods and services over the last twelve months totaled $2.3 trillion, which is 47.7 percent above 2009 levels, and have been growing at an annualized rate of 8.5 percent over the last five years.
Monday, December 8, 2014
SEC SANCTIONS PROGRAMMER FOR ROLE IN TRADING SECURITIES USING VIRTUAL CURRENCIES
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today sanctioned a computer programmer for operating two online venues that traded securities using virtual currencies Bitcoin or Litecoin without registering the venues as broker-dealers or stock exchanges.
The programmer, Ethan Burnside, also was sanctioned for conducting unregistered offerings. He significantly cooperated with the SEC’s investigation and agreed to settle the case by paying more than $68,000 comprising his profits from the unregistered venues plus interest and a penalty. He also is barred from the securities industry.
According to the SEC’s order instituting a settled administrative proceeding, Burnside and his company BTC Trading Corp. operated two online enterprises – BTC Virtual Stock Exchange and LTC-Global Virtual Stock Exchange – from August 2012 to October 2013. These exchanges provided account holders the ability to use Bitcoin or Litecoin to buy, sell, and trade securities of businesses (primarily virtual currency-related entities) listed on the exchanges’ websites. The venues weren’t registered as broker-dealers despite soliciting the public to open accounts and trade securities. The venues weren’t registered as stock exchanges despite enlisting issuers to offer securities for the public to buy and sell. The SEC’s order also finds that Burnside conducted separate transactions in which he offered investors the opportunity to use virtual currencies to buy or sell shares in the LTC-Global exchange itself and a separate Litecoin mining venture he owned and operated. These offerings were not registered with the SEC as required under the federal securities laws.
“Burnside operated two online enterprises that weren’t properly registered to engage in the securities business they were conducting,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office. “The registration rules are vitally important investor protection provisions, and no exemption applies simply because an entity is operating on the Internet or using a virtual currency in securities transactions.”
According to the SEC’s order, Burnside and BTC Trading Corp. actively solicited the public to open accounts by advertising the websites for both of his stock exchanges on the Bitcoin Forum and other websites dedicated to virtual currency. The solicitation efforts resulted in approximately 2,655 users opening online accounts with LTC-Global exchange and executing approximately 60,496 trades through the website, paying a total of 12,081 litecoins in transaction-based compensation. Approximately 7,959 users opened online accounts with the BTC exchange and executed approximately 366,490 trades through the website, paying a total of 2,141 bitcoins in transaction-based compensation. The SEC’s order finds that in this line of business, Burnside and BTC Trading Corp. were required to register their online enterprises with the SEC as brokers or dealers.
The SEC’s order further finds that Burnside and BTC Trading Corp. failed to register the LTC-Global exchange or the BTC exchange as exchanges despite providing issuers a platform to create and list initial and secondary offerings of securities in exchange for a listing fee. A total of 52 issuers paid BTC Trading Corp. 11,450 litecoins in listing fees to list their shares with the LTC-Global exchange, and 69 issuers paid 210 bitcoins in listing fees to list their shares with the BTC exchange.
The SEC’s order finds that Burnside willfully violated Sections 5(a) and 5(c) of the Securities Act of 1933, and that Burnside and BTC Trading Corp. willfully violated Sections 5 and 15(a) of the Securities Exchange Act of 1934. Without admitting or denying the SEC’s findings, Burnside and BTC Trading Corp. consented to cease and desist from committing or causing any future violations of the registration provisions. Burnside agreed to be barred from the securities industry with the right to reapply after two years, and he must pay $58,387.07 in disgorgement and prejudgment interest plus a penalty of $10,000. The penalty amount reflects prompt remedial acts taken by Burnside as he cooperated with the SEC’s investigation.
The SEC’s investigation was conducted in coordination with the agency’s Digital Currency Working Group by New York Regional Office staff Daphna A. Waxman, Daphne P. Downes, Philip R. Moustakis, and Valerie A. Szczepanik. The case was supervised by Amelia A. Cottrell.
The Securities and Exchange Commission today sanctioned a computer programmer for operating two online venues that traded securities using virtual currencies Bitcoin or Litecoin without registering the venues as broker-dealers or stock exchanges.
The programmer, Ethan Burnside, also was sanctioned for conducting unregistered offerings. He significantly cooperated with the SEC’s investigation and agreed to settle the case by paying more than $68,000 comprising his profits from the unregistered venues plus interest and a penalty. He also is barred from the securities industry.
According to the SEC’s order instituting a settled administrative proceeding, Burnside and his company BTC Trading Corp. operated two online enterprises – BTC Virtual Stock Exchange and LTC-Global Virtual Stock Exchange – from August 2012 to October 2013. These exchanges provided account holders the ability to use Bitcoin or Litecoin to buy, sell, and trade securities of businesses (primarily virtual currency-related entities) listed on the exchanges’ websites. The venues weren’t registered as broker-dealers despite soliciting the public to open accounts and trade securities. The venues weren’t registered as stock exchanges despite enlisting issuers to offer securities for the public to buy and sell. The SEC’s order also finds that Burnside conducted separate transactions in which he offered investors the opportunity to use virtual currencies to buy or sell shares in the LTC-Global exchange itself and a separate Litecoin mining venture he owned and operated. These offerings were not registered with the SEC as required under the federal securities laws.
“Burnside operated two online enterprises that weren’t properly registered to engage in the securities business they were conducting,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office. “The registration rules are vitally important investor protection provisions, and no exemption applies simply because an entity is operating on the Internet or using a virtual currency in securities transactions.”
According to the SEC’s order, Burnside and BTC Trading Corp. actively solicited the public to open accounts by advertising the websites for both of his stock exchanges on the Bitcoin Forum and other websites dedicated to virtual currency. The solicitation efforts resulted in approximately 2,655 users opening online accounts with LTC-Global exchange and executing approximately 60,496 trades through the website, paying a total of 12,081 litecoins in transaction-based compensation. Approximately 7,959 users opened online accounts with the BTC exchange and executed approximately 366,490 trades through the website, paying a total of 2,141 bitcoins in transaction-based compensation. The SEC’s order finds that in this line of business, Burnside and BTC Trading Corp. were required to register their online enterprises with the SEC as brokers or dealers.
The SEC’s order further finds that Burnside and BTC Trading Corp. failed to register the LTC-Global exchange or the BTC exchange as exchanges despite providing issuers a platform to create and list initial and secondary offerings of securities in exchange for a listing fee. A total of 52 issuers paid BTC Trading Corp. 11,450 litecoins in listing fees to list their shares with the LTC-Global exchange, and 69 issuers paid 210 bitcoins in listing fees to list their shares with the BTC exchange.
The SEC’s order finds that Burnside willfully violated Sections 5(a) and 5(c) of the Securities Act of 1933, and that Burnside and BTC Trading Corp. willfully violated Sections 5 and 15(a) of the Securities Exchange Act of 1934. Without admitting or denying the SEC’s findings, Burnside and BTC Trading Corp. consented to cease and desist from committing or causing any future violations of the registration provisions. Burnside agreed to be barred from the securities industry with the right to reapply after two years, and he must pay $58,387.07 in disgorgement and prejudgment interest plus a penalty of $10,000. The penalty amount reflects prompt remedial acts taken by Burnside as he cooperated with the SEC’s investigation.
The SEC’s investigation was conducted in coordination with the agency’s Digital Currency Working Group by New York Regional Office staff Daphna A. Waxman, Daphne P. Downes, Philip R. Moustakis, and Valerie A. Szczepanik. The case was supervised by Amelia A. Cottrell.
CFTC ANNOUNCES COURT ORDERED SANCTIONS AGAINST PRECOCIOUS METALS COMPANY
FROM: U.S. COMMODITY FUTURES TRADING COMMISSION
Federal Court Orders More than $1.3 Million in Sanctions and Enters a Default Judgment Order against Florida-Based Gold Distributors, Inc. and Its Owner, Jordan Cain, for Engaging in Illegal, Off-Exchange Commodity Transactions
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge William J. Zloch of the U.S. District Court for the Southern District of Florida entered an Order of default judgment against Defendants Gold Distributors, Inc. (GDI) of Hallandale Beach, Florida, and its sole owner Jordan Cain of Miami, Florida. The Order requires the Defendants to pay restitution in the amount of $337,266 and a civil monetary penalty of $1,011,800. The Order also imposes permanent trading, solicitation, and registration bans against the Defendants and prohibits them from violating provisions of the Commodity Exchange Act (CEA), as charged.
The Order, entered on November 24, 2014, stems from a CFTC Complaint filed on March 19, 2014, that charged the Defendants with engaging in illegal, off-exchange transactions in precious metals with retail customers on a leveraged, margined, or financed basis (see CFTC Press Release 6884-14).
Specifically, the Order finds that between January 2012 and February 2013, the Defendants offered to enter into, executed, and confirmed the execution of financed gold and silver transactions with persons who were not eligible contract participants as defined by the CEA. The Order further finds that the Defendants introduced 27 customers to AmeriFirst Management, LLC (AmeriFirst), a precious metals wholesaler and clearing firm that financed and purported to confirm the execution of customer precious metals transactions. The Defendants transferred at least $797,577 to AmeriFirst for the purchase of precious metals and received commissions and fees totaling at least $337,266 for the retail financed precious metals transactions executed through AmeriFirst, according to the Order. The Order also finds that Cain was liable, as GDI’s controlling person, for GDI’s violations of the CEA.
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, financed transactions such as those conducted by GDI, are illegal off-exchange transactions unless they result in actual delivery of metal within 28 days. According to the Order, the Defendants and AmeriFirst never actually delivered any precious metals to any of the Defendants’ customers.
The CFTC cautions victims that restitution orders may not result in the recovery of money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.
On July 29, 2013, the CFTC, in a separate action in the U.S. District Court for the Southern District of Florida, charged AmeriFirst and its principals with fraud and other violations of the CEA. On September 18, 2013, the court found AmeriFirst and its principals liable for illegal, off-exchange precious metals transactions and fraud, and on, July 24, 2014, the court imposed sanctions of over $35 million against AmeriFirst and its principals (see CFTC Press Releases 6655-13 and 6973-14).
Federal Court Orders More than $1.3 Million in Sanctions and Enters a Default Judgment Order against Florida-Based Gold Distributors, Inc. and Its Owner, Jordan Cain, for Engaging in Illegal, Off-Exchange Commodity Transactions
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge William J. Zloch of the U.S. District Court for the Southern District of Florida entered an Order of default judgment against Defendants Gold Distributors, Inc. (GDI) of Hallandale Beach, Florida, and its sole owner Jordan Cain of Miami, Florida. The Order requires the Defendants to pay restitution in the amount of $337,266 and a civil monetary penalty of $1,011,800. The Order also imposes permanent trading, solicitation, and registration bans against the Defendants and prohibits them from violating provisions of the Commodity Exchange Act (CEA), as charged.
The Order, entered on November 24, 2014, stems from a CFTC Complaint filed on March 19, 2014, that charged the Defendants with engaging in illegal, off-exchange transactions in precious metals with retail customers on a leveraged, margined, or financed basis (see CFTC Press Release 6884-14).
Specifically, the Order finds that between January 2012 and February 2013, the Defendants offered to enter into, executed, and confirmed the execution of financed gold and silver transactions with persons who were not eligible contract participants as defined by the CEA. The Order further finds that the Defendants introduced 27 customers to AmeriFirst Management, LLC (AmeriFirst), a precious metals wholesaler and clearing firm that financed and purported to confirm the execution of customer precious metals transactions. The Defendants transferred at least $797,577 to AmeriFirst for the purchase of precious metals and received commissions and fees totaling at least $337,266 for the retail financed precious metals transactions executed through AmeriFirst, according to the Order. The Order also finds that Cain was liable, as GDI’s controlling person, for GDI’s violations of the CEA.
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, financed transactions such as those conducted by GDI, are illegal off-exchange transactions unless they result in actual delivery of metal within 28 days. According to the Order, the Defendants and AmeriFirst never actually delivered any precious metals to any of the Defendants’ customers.
The CFTC cautions victims that restitution orders may not result in the recovery of money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.
On July 29, 2013, the CFTC, in a separate action in the U.S. District Court for the Southern District of Florida, charged AmeriFirst and its principals with fraud and other violations of the CEA. On September 18, 2013, the court found AmeriFirst and its principals liable for illegal, off-exchange precious metals transactions and fraud, and on, July 24, 2014, the court imposed sanctions of over $35 million against AmeriFirst and its principals (see CFTC Press Releases 6655-13 and 6973-14).
MAN SENTENCED TO 10 YEAR PRISON TERM FOR FILING LIENS AGAINST FEDERAL OFFICIALS
FROM: U.S. JUSTICE DEPARTMENT
Thursday, December 4, 2014
Georgia Resident Sentenced in Nebraska for Filing False Liens Against Federal Officials
A Pelham, Georgia, man was sentenced on Dec. 2 in the U.S. District Court for the District of Nebraska to serve 10 years in prison followed by three years of supervised release for filing false retaliatory liens against federal government officials, announced Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division.
On Sept. 4, David Randall Due was convicted by a jury on all seven counts charged in the superseding indictment.
At trial, the evidence showed that David Randall Due and Donna Kozak, a resident of La Vista, Nebraska, and member of the sovereign citizen group “Republic for the united States of America,” conspired and agreed to retaliate against several federal officials in Nebraska by filing false liens claiming false interests in the officials’ property for millions of dollars. Due prepared the false liens in Georgia and Kozak filed them in Nebraska counties. Kozak and Due filed the liens in retaliation for the federal criminal tax prosecution and trial convictions of associates David and Bernita Kleensang. Each targeted federal official had some connection to either a tax prosecution of David and Bernita Kleensang in June 2012 or the subsequent indictment of Kozak for tax offenses.
In September 2012, Kozak and Due filed one $19 million false lien in Boyd County, Nebraska, on property owned by the federal U.S. District Court judge who presided over the Kleensang trial. Kozak was subsequently indicted by a federal grand jury for filing the false lien and for other tax-related charges. While she was on release pending trial, Due provided her with five more false liens, which she filed in Washington County, Nebraska, on properties owned by a second federal U.S. District Court judge, the U.S. Attorney, two Assistant U.S. Attorneys, and an Internal Revenue Service-Criminal Investigation (IRS-CI) special agent.
On Aug. 1, Kozak was tried and convicted by a jury in the U.S. District Court for the District of Nebraska. Her sentencing is scheduled for Jan. 6, 2015.
This case was investigated by special agents of the FBI and IRS-CI, and was prosecuted by trial attorneys from the Tax Division.
Thursday, December 4, 2014
Georgia Resident Sentenced in Nebraska for Filing False Liens Against Federal Officials
A Pelham, Georgia, man was sentenced on Dec. 2 in the U.S. District Court for the District of Nebraska to serve 10 years in prison followed by three years of supervised release for filing false retaliatory liens against federal government officials, announced Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division.
On Sept. 4, David Randall Due was convicted by a jury on all seven counts charged in the superseding indictment.
At trial, the evidence showed that David Randall Due and Donna Kozak, a resident of La Vista, Nebraska, and member of the sovereign citizen group “Republic for the united States of America,” conspired and agreed to retaliate against several federal officials in Nebraska by filing false liens claiming false interests in the officials’ property for millions of dollars. Due prepared the false liens in Georgia and Kozak filed them in Nebraska counties. Kozak and Due filed the liens in retaliation for the federal criminal tax prosecution and trial convictions of associates David and Bernita Kleensang. Each targeted federal official had some connection to either a tax prosecution of David and Bernita Kleensang in June 2012 or the subsequent indictment of Kozak for tax offenses.
In September 2012, Kozak and Due filed one $19 million false lien in Boyd County, Nebraska, on property owned by the federal U.S. District Court judge who presided over the Kleensang trial. Kozak was subsequently indicted by a federal grand jury for filing the false lien and for other tax-related charges. While she was on release pending trial, Due provided her with five more false liens, which she filed in Washington County, Nebraska, on properties owned by a second federal U.S. District Court judge, the U.S. Attorney, two Assistant U.S. Attorneys, and an Internal Revenue Service-Criminal Investigation (IRS-CI) special agent.
On Aug. 1, Kozak was tried and convicted by a jury in the U.S. District Court for the District of Nebraska. Her sentencing is scheduled for Jan. 6, 2015.
This case was investigated by special agents of the FBI and IRS-CI, and was prosecuted by trial attorneys from the Tax Division.
CHIROPRACTOR SENT TO PRISON FOR FRAUD
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, December 3, 2014
Former New Jersey Chiropractor Sentenced to Prison for Fraud
A man formerly of Neptune, New Jersey, was sentenced today in the U.S. District Court for the District of New Jersey to serve 54 months in prison to be followed by five years of supervised release, the Justice Department and the Internal Revenue Service (IRS) announced.
In February 2014, a jury convicted David Moleski, a pilot and former chiropractor, of 14 counts of mail fraud, one count of wire fraud, one count of corruptly endeavoring to obstruct and impede Internal Revenue laws and three counts of submitting false claims for tax refunds. Moleski was sentenced by U.S. District Judge Freda L. Wolfson, who also ordered that Moleski pay a $10,000 fine and, as a condition of release, $48,199 in restitution.
According to the evidence presented in court, Moleski submitted three false tax returns in 2009 for tax years 2006 through 2008 that collectively requested more than $1.3 million in income tax refunds to which he was not entitled. Prior to filing these returns, Moleski failed to file tax returns from 1999 through 2005, even though he was legally required to file. When the IRS assessed taxes for those years and began collecting, Moleski obstructed the collection efforts and demanded that a third-party financial institution not comply with an IRS levy. In addition, Moleski attempted to pay credit card bills and other debts with fake financial instruments that claimed to draw on an account at the U.S. Treasury that did not actually exist. For instance, Moleski sent a fake financial instrument for $500,000 in alleged payment of a mortgage debt.
The case was investigated by special agents of IRS-Criminal Investigation. Trial Attorneys Tino M. Lisella and Yael T. Epstein of the Tax Division prosecuted the case, with the assistance of the U.S. Attorney’s Office for the District of New Jersey.
Wednesday, December 3, 2014
Former New Jersey Chiropractor Sentenced to Prison for Fraud
A man formerly of Neptune, New Jersey, was sentenced today in the U.S. District Court for the District of New Jersey to serve 54 months in prison to be followed by five years of supervised release, the Justice Department and the Internal Revenue Service (IRS) announced.
In February 2014, a jury convicted David Moleski, a pilot and former chiropractor, of 14 counts of mail fraud, one count of wire fraud, one count of corruptly endeavoring to obstruct and impede Internal Revenue laws and three counts of submitting false claims for tax refunds. Moleski was sentenced by U.S. District Judge Freda L. Wolfson, who also ordered that Moleski pay a $10,000 fine and, as a condition of release, $48,199 in restitution.
According to the evidence presented in court, Moleski submitted three false tax returns in 2009 for tax years 2006 through 2008 that collectively requested more than $1.3 million in income tax refunds to which he was not entitled. Prior to filing these returns, Moleski failed to file tax returns from 1999 through 2005, even though he was legally required to file. When the IRS assessed taxes for those years and began collecting, Moleski obstructed the collection efforts and demanded that a third-party financial institution not comply with an IRS levy. In addition, Moleski attempted to pay credit card bills and other debts with fake financial instruments that claimed to draw on an account at the U.S. Treasury that did not actually exist. For instance, Moleski sent a fake financial instrument for $500,000 in alleged payment of a mortgage debt.
The case was investigated by special agents of IRS-Criminal Investigation. Trial Attorneys Tino M. Lisella and Yael T. Epstein of the Tax Division prosecuted the case, with the assistance of the U.S. Attorney’s Office for the District of New Jersey.
U.S. OFFICIALS REPORT ON CREATING A POWER GRID ACROSS CENTRAL AMERICA
FROM: U.S. STATE DEPARTMENT
Investing in a Power Grid to Connect Communities Across Central America
Bureau of Energy Resources
December 3, 2014
Investing in a Power Grid to Connect Communities Across Central America
By Roberta S. Jacobson, Assistant Secretary of State for Western Hemisphere Affairs; Amos J Hochstein, Acting Special Envoy and Coordinator for International Energy Affairs; and Scott Nathan, Special Representative for Commercial and Business Affairs, United States Department of State
Western Hemisphere energy markets are in a period of profound transformation, as the United States and partners throughout the region seize opportunities to reform and expand energy production, integrate economies, create jobs, and enhance stability and citizen security. U.S. leadership in the energy sector is helping to catalyze and support more sustained and equitable economic growth.
Nowhere does this prospect of energy-led economic growth offer greater potential than in Central America’s electricity sector, where countries have the opportunity to build a future of clean, reliable, and affordable electricity by connecting power grids across borders and developing a regional electricity market.
Those of us who enjoy reliable access to affordable electricity are prone to take it for granted. However, without it, businesses of all sizes cannot compete in today’s global economy, pushing prosperity out of reach for too many workers and their families.
With this in mind, President Obama, Colombia’s President Santos and the region’s other leaders agreed at the 2012 Summit of the Americas to make electricity supplies cleaner, more reliable, and affordable by expanding electrical interconnections and scaling up low-carbon power generation. They set a ten-year deadline under the initiative Connecting the Americas 2022, or Connect 2022.
In the two years since, the United States, Central American countries, Colombia, and Mexico have worked to advance the Connect 2022 vision. President Obama and Vice President Biden have engaged the region’s leaders to build support for energy integration, especially in Central America and the Caribbean. As President Obama told leaders in Costa Rica last year, everybody stands to benefit from a more free flow of electricity across borders.
Through our energy diplomacy, we have brought Central American policymakers together with the private sector to identify a clear path forward. Through U.S.-funded technical assistance, we are helping Central American regulators and grid operators meet their power sector investment requirements and clean energy goals.
The results are promising. Last year, the Central American Electricity Interconnection System (SIEPAC) adopted rules for cross-border power trade that unleashed impressive growth in the regional electricity market. A more active market will make it easier to replace expensive, dirty oil-fired generation with cleaner, cheaper sources of power, whether renewable energy or natural gas.
And last month, the final stretch of the SIEPAC regional transmission line was completed. This is a milestone achievement that links six Central American countries and forms the backbone of the regional market. Countries have already used the SIEPAC line to swap power in times of shortage, keeping schools and businesses open, instead of suffering through blackouts due to droughts.
As a result of these efforts, power infrastructure is now connected from Canada to Panama.
Yet there is more to be done. Central Americans still pay the second highest electricity rates in the Americas, second only to the Caribbean. These high prices constrain needed economic development and direct foreign investment that can create new opportunities for families and businesses alike.
Central America needs to upgrade and better integrate national and regional transmission capacity, improve market rules, and attract investment. If Colombia and Panama move forward with the planned interconnection, Andean markets would connect to Central America, increasing the market size and investment opportunity for all. If the region introduces natural gas, it will need to set clear and predictable rules.
These changes are not easy; some will require tough political decisions. But the result will be worth it: greater competition, increased efficiency, and reduced prices for consumers. It will create attractive new opportunities for investment and increase overall competitiveness.
It will also affect millions of lives throughout the region in real and immediate ways. Children will be able to do school work or read at night by electric light. Once towns are connected to the power grid, those children will be able to teach their parents how to use a computer and introduce them to the limitless opportunities of the internet. Health clinics will maintain cold chains for vaccines, and electric cooking will improve indoor air quality and the health of families.
On November 4, President Otto Perez Molina of Guatemala hosts energy policymakers, regulators, and private sector representatives at the Connect 2022 Mesoamerican Energy Investment Summit in Guatemala City.
The United States strongly supports this Investment Summit, in collaboration with the Inter-American Development Bank and World Bank. We urge policymakers from the region to use the Summit to demonstrate progress on regional integration and showcase the opportunities that are emerging as a result of increased electricity trade and new interconnections. We encourage the private sector to convey clearly what policymakers and regulators still need to do to attract private capital. We look forward to a successful Investment Summit that motivates all who participate to work hard to advance Connect 2022 goals and give Central America’s citizens the opportunity for prosperity that we all deserve.
Central America has set a strong example for the hemisphere by completing the SIEPAC line. Now it must take the next steps to allow energy to flow across the line in ways that reduce prices, spur economic growth, attract needed investment, and lead to broader regional integration. We congratulate the region and look forward to working together to achieve our Presidents’ vision for Connecting the Americas by 2022.
Investing in a Power Grid to Connect Communities Across Central America
Bureau of Energy Resources
December 3, 2014
Investing in a Power Grid to Connect Communities Across Central America
By Roberta S. Jacobson, Assistant Secretary of State for Western Hemisphere Affairs; Amos J Hochstein, Acting Special Envoy and Coordinator for International Energy Affairs; and Scott Nathan, Special Representative for Commercial and Business Affairs, United States Department of State
Western Hemisphere energy markets are in a period of profound transformation, as the United States and partners throughout the region seize opportunities to reform and expand energy production, integrate economies, create jobs, and enhance stability and citizen security. U.S. leadership in the energy sector is helping to catalyze and support more sustained and equitable economic growth.
Nowhere does this prospect of energy-led economic growth offer greater potential than in Central America’s electricity sector, where countries have the opportunity to build a future of clean, reliable, and affordable electricity by connecting power grids across borders and developing a regional electricity market.
Those of us who enjoy reliable access to affordable electricity are prone to take it for granted. However, without it, businesses of all sizes cannot compete in today’s global economy, pushing prosperity out of reach for too many workers and their families.
With this in mind, President Obama, Colombia’s President Santos and the region’s other leaders agreed at the 2012 Summit of the Americas to make electricity supplies cleaner, more reliable, and affordable by expanding electrical interconnections and scaling up low-carbon power generation. They set a ten-year deadline under the initiative Connecting the Americas 2022, or Connect 2022.
In the two years since, the United States, Central American countries, Colombia, and Mexico have worked to advance the Connect 2022 vision. President Obama and Vice President Biden have engaged the region’s leaders to build support for energy integration, especially in Central America and the Caribbean. As President Obama told leaders in Costa Rica last year, everybody stands to benefit from a more free flow of electricity across borders.
Through our energy diplomacy, we have brought Central American policymakers together with the private sector to identify a clear path forward. Through U.S.-funded technical assistance, we are helping Central American regulators and grid operators meet their power sector investment requirements and clean energy goals.
The results are promising. Last year, the Central American Electricity Interconnection System (SIEPAC) adopted rules for cross-border power trade that unleashed impressive growth in the regional electricity market. A more active market will make it easier to replace expensive, dirty oil-fired generation with cleaner, cheaper sources of power, whether renewable energy or natural gas.
And last month, the final stretch of the SIEPAC regional transmission line was completed. This is a milestone achievement that links six Central American countries and forms the backbone of the regional market. Countries have already used the SIEPAC line to swap power in times of shortage, keeping schools and businesses open, instead of suffering through blackouts due to droughts.
As a result of these efforts, power infrastructure is now connected from Canada to Panama.
Yet there is more to be done. Central Americans still pay the second highest electricity rates in the Americas, second only to the Caribbean. These high prices constrain needed economic development and direct foreign investment that can create new opportunities for families and businesses alike.
Central America needs to upgrade and better integrate national and regional transmission capacity, improve market rules, and attract investment. If Colombia and Panama move forward with the planned interconnection, Andean markets would connect to Central America, increasing the market size and investment opportunity for all. If the region introduces natural gas, it will need to set clear and predictable rules.
These changes are not easy; some will require tough political decisions. But the result will be worth it: greater competition, increased efficiency, and reduced prices for consumers. It will create attractive new opportunities for investment and increase overall competitiveness.
It will also affect millions of lives throughout the region in real and immediate ways. Children will be able to do school work or read at night by electric light. Once towns are connected to the power grid, those children will be able to teach their parents how to use a computer and introduce them to the limitless opportunities of the internet. Health clinics will maintain cold chains for vaccines, and electric cooking will improve indoor air quality and the health of families.
On November 4, President Otto Perez Molina of Guatemala hosts energy policymakers, regulators, and private sector representatives at the Connect 2022 Mesoamerican Energy Investment Summit in Guatemala City.
The United States strongly supports this Investment Summit, in collaboration with the Inter-American Development Bank and World Bank. We urge policymakers from the region to use the Summit to demonstrate progress on regional integration and showcase the opportunities that are emerging as a result of increased electricity trade and new interconnections. We encourage the private sector to convey clearly what policymakers and regulators still need to do to attract private capital. We look forward to a successful Investment Summit that motivates all who participate to work hard to advance Connect 2022 goals and give Central America’s citizens the opportunity for prosperity that we all deserve.
Central America has set a strong example for the hemisphere by completing the SIEPAC line. Now it must take the next steps to allow energy to flow across the line in ways that reduce prices, spur economic growth, attract needed investment, and lead to broader regional integration. We congratulate the region and look forward to working together to achieve our Presidents’ vision for Connecting the Americas by 2022.
Sunday, December 7, 2014
SECRETARY KERRY'S STATEMENT ON THE CHARGES IN IRAN AGAINST WP REPORTER JASON REZAIAN
FROM: U.S. STATE DEPARTMENT
Charges in Iran Against U.S. Citizen Jason Rezaian
Press Statement
John Kerry
Secretary of State
Washington, DC
December 7, 2014
The United States is deeply disappointed and concerned by reports that the Iranian judiciary has charged Washington Post journalist Jason Rezaian with unspecified charges, and that the judge denied his request to be released on bail. We are also distressed by reports that Jason was not allowed access to an attorney, which is a clear violation of Iran’s own laws and international norms. I am personally dismayed and disturbed at these reports as I have repeatedly raised Jason's case, and the other cases of detained or missing U.S. citizens, directly with Iranian officials.
We share the concerns of Mr. Rezaian’s family regarding reports that he is under physical and psychological distress, and is not receiving proper medical care. The Iranian government continues to deny our repeated requests for Consular Access to Jason by our Protecting Power, the Swiss, so we are unable to check on his condition or ensure adequate legal representation.
Jason poses no threat to the Iranian government or to Iran’s national security. We call on the Iranian government to drop any and all charges against Jason and release him immediately so that he can be reunited with his family.
Likewise, we again call for the release of U.S. citizens Amir Hekmati and Saeed Abedini, and ask for the Iranian government's cooperation in locating Robert Levinson, so that all may be returned to their families.
Charges in Iran Against U.S. Citizen Jason Rezaian
Press Statement
John Kerry
Secretary of State
Washington, DC
December 7, 2014
The United States is deeply disappointed and concerned by reports that the Iranian judiciary has charged Washington Post journalist Jason Rezaian with unspecified charges, and that the judge denied his request to be released on bail. We are also distressed by reports that Jason was not allowed access to an attorney, which is a clear violation of Iran’s own laws and international norms. I am personally dismayed and disturbed at these reports as I have repeatedly raised Jason's case, and the other cases of detained or missing U.S. citizens, directly with Iranian officials.
We share the concerns of Mr. Rezaian’s family regarding reports that he is under physical and psychological distress, and is not receiving proper medical care. The Iranian government continues to deny our repeated requests for Consular Access to Jason by our Protecting Power, the Swiss, so we are unable to check on his condition or ensure adequate legal representation.
Jason poses no threat to the Iranian government or to Iran’s national security. We call on the Iranian government to drop any and all charges against Jason and release him immediately so that he can be reunited with his family.
Likewise, we again call for the release of U.S. citizens Amir Hekmati and Saeed Abedini, and ask for the Iranian government's cooperation in locating Robert Levinson, so that all may be returned to their families.
ATTORNEY SENT TO PRISON FOR ROLE IN PUMP-AND-DUMP STOCK FRAUD
FROM: U.S. JUSTICE DEPARTMENT
Friday, December 5, 2014
Attorney Sentenced to 17 Years in Prison for Multi-Million Dollar Stock Fraud
A California attorney was sentenced to serve 17 years in prison today in the Southern District of Florida for operating a five-year, multi-million dollar market manipulation and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
Mitchell J. Stein, 53, of Hidden Hills, California, was convicted by a jury on May 20, 2013, of conspiracy to commit mail and wire fraud, three counts of wire fraud, three counts of securities fraud, three counts of money laundering, and one count of conspiracy to obstruct justice. In addition to the prison sentence, U.S. District Judge Kenneth A. Marra of the Southern District of Florida ordered Stein to forfeit $5.3 million. Restitution will be determined at a later date.
“Lawyers for companies are supposed to guide their clients through the important reporting and regulatory requirements that ensure the integrity of our financial markets,” said Assistant Attorney General Caldwell. “Stein abdicated his responsibility, and instead abused his position of trust to defraud a public company, its shareholders, and the investing public of millions of dollars.”
“The ‘pump and dump’ scheme orchestrated by Stein and his co-conspirators was extremely elaborate,” said U.S. Attorney Ferrer. “In an effort to conceal his fraudulent financial scheme, Stein falsely testified before the SEC and used his position of trust to arrange for others to do the same. The sentencing announced today underscores the department's commitment to hold liable those individuals who profit from manipulating the financial markets and violating securities and other laws that are intended to protect investors and markets.”
According to evidence presented at trial, Stein’s wife held a controlling majority interest in Signalife Inc., a publicly-traded company currently known as Heart Tronics that purportedly sold electronic heart monitoring devices. While acting as Signalife’s outside legal counsel, Stein engaged in a scheme to artificially inflate the price of Signalife stock by creating the false impression of sales activity at the company. Specifically, the evidence at trial showed that Stein and his co-conspirators created fake purchase orders and related documents from fictitious customers, then caused Signalife to issue press releases and file documents with the Securities and Exchange Commission (SEC) trumpeting these fictitious sales. Evidence at trial also proved that in a further effort to create the false appearance of sales activity, Stein arranged to have Signalife products shipped to and temporarily stored with an individual who had not purchased any products.
Evidence at trial further proved that Stein disguised his selling of Signalife stock at artificially inflated prices by placing shares in purportedly blind trusts, and having a co-conspirator sell the shares after Stein caused the false sales information to be disseminated to the public. Stein also caused Signalife to issue shares to third parties so that those third parties could sell the shares and remit the proceeds to Stein. From one co-conspirator alone, Stein received illicit gains of over $1.8 million from those sales.
In addition, evidence at trial proved that Stein conspired to obstruct the SEC investigation into Heart Tronics by testifying falsely and arranging for others to testify falsely in an effort to conceal the fraud scheme.
This case was investigated by the U.S. Postal Inspection Service, with assistance from the Office of the Special Inspector General for the Troubled Asset Relief Program. The SEC referred this matter to the Justice Department, conducted a parallel investigation resulting in a civil enforcement action against Stein and others, and provided substantial assistance in this investigation. The Financial Industry Regulatory Authority’s Criminal Prosecution Assistance Group likewise provided substantial assistance in this matter.
This case was prosecuted by Assistant Chief Albert B. Stieglitz Jr., Assistant Chief Kevin B. Muhlendorf, and Trial Attorney Andrew H. Warren of the Criminal Division’s Fraud Section and Assistant Chief Darrin McCullough of the Criminal Division’s Asset Forfeiture and Money Laundering Section.
Friday, December 5, 2014
Attorney Sentenced to 17 Years in Prison for Multi-Million Dollar Stock Fraud
A California attorney was sentenced to serve 17 years in prison today in the Southern District of Florida for operating a five-year, multi-million dollar market manipulation and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
Mitchell J. Stein, 53, of Hidden Hills, California, was convicted by a jury on May 20, 2013, of conspiracy to commit mail and wire fraud, three counts of wire fraud, three counts of securities fraud, three counts of money laundering, and one count of conspiracy to obstruct justice. In addition to the prison sentence, U.S. District Judge Kenneth A. Marra of the Southern District of Florida ordered Stein to forfeit $5.3 million. Restitution will be determined at a later date.
“Lawyers for companies are supposed to guide their clients through the important reporting and regulatory requirements that ensure the integrity of our financial markets,” said Assistant Attorney General Caldwell. “Stein abdicated his responsibility, and instead abused his position of trust to defraud a public company, its shareholders, and the investing public of millions of dollars.”
“The ‘pump and dump’ scheme orchestrated by Stein and his co-conspirators was extremely elaborate,” said U.S. Attorney Ferrer. “In an effort to conceal his fraudulent financial scheme, Stein falsely testified before the SEC and used his position of trust to arrange for others to do the same. The sentencing announced today underscores the department's commitment to hold liable those individuals who profit from manipulating the financial markets and violating securities and other laws that are intended to protect investors and markets.”
According to evidence presented at trial, Stein’s wife held a controlling majority interest in Signalife Inc., a publicly-traded company currently known as Heart Tronics that purportedly sold electronic heart monitoring devices. While acting as Signalife’s outside legal counsel, Stein engaged in a scheme to artificially inflate the price of Signalife stock by creating the false impression of sales activity at the company. Specifically, the evidence at trial showed that Stein and his co-conspirators created fake purchase orders and related documents from fictitious customers, then caused Signalife to issue press releases and file documents with the Securities and Exchange Commission (SEC) trumpeting these fictitious sales. Evidence at trial also proved that in a further effort to create the false appearance of sales activity, Stein arranged to have Signalife products shipped to and temporarily stored with an individual who had not purchased any products.
Evidence at trial further proved that Stein disguised his selling of Signalife stock at artificially inflated prices by placing shares in purportedly blind trusts, and having a co-conspirator sell the shares after Stein caused the false sales information to be disseminated to the public. Stein also caused Signalife to issue shares to third parties so that those third parties could sell the shares and remit the proceeds to Stein. From one co-conspirator alone, Stein received illicit gains of over $1.8 million from those sales.
In addition, evidence at trial proved that Stein conspired to obstruct the SEC investigation into Heart Tronics by testifying falsely and arranging for others to testify falsely in an effort to conceal the fraud scheme.
This case was investigated by the U.S. Postal Inspection Service, with assistance from the Office of the Special Inspector General for the Troubled Asset Relief Program. The SEC referred this matter to the Justice Department, conducted a parallel investigation resulting in a civil enforcement action against Stein and others, and provided substantial assistance in this investigation. The Financial Industry Regulatory Authority’s Criminal Prosecution Assistance Group likewise provided substantial assistance in this matter.
This case was prosecuted by Assistant Chief Albert B. Stieglitz Jr., Assistant Chief Kevin B. Muhlendorf, and Trial Attorney Andrew H. Warren of the Criminal Division’s Fraud Section and Assistant Chief Darrin McCullough of the Criminal Division’s Asset Forfeiture and Money Laundering Section.
NSF SUPPORTS SCIENCE BIG DATA SHARING THROUGH SCISERVER
FROM: NATIONAL SCIENCE FOUNDATION
SciServer: Big Data infrastructure for science
Research team from Johns Hopkins extends tools from Sloan Digital Sky Survey to new scientific communities
Big Data comes naturally to science. Every year, scientists in every field, from astronomy to zoology, make tremendous leaps in their ability to generate valuable data.
But all of this information comes at a price. As datasets grow exponentially, so do the problems and costs associated with accessing, reading, sharing and processing them.
A new project called SciServer, supported by the National Science Foundation (NSF), aims to build a long-term, flexible ecosystem to provide access to the enormous data sets from observations and simulation.
"SciServer will help meet the challenges of Big Data," said Alex Szalay of Johns Hopkins University, the principal investigator of the five-year NSF-funded project and the architect for the Science Archive of the Sloan Digital Sky Survey. "By building a common infrastructure, we can create data access and analysis tools useful to all areas of science."
SciServer's heritage: Big Data in astronomy
SciServer grew out of work with the Sloan Digital Sky Survey (SDSS), an ambitious, ongoing project to map the entire universe.
"When the SDSS began in 1998, astronomers had data for less than 200,000 galaxies," said Ani Thakar, an astronomer at Johns Hopkins who is part of the SciServer team. "Within five years after SDSS began, we had nearly 200 million galaxies in our database. Today, the SDSS data exceeds 70 terabytes, covering more than 220 million galaxies and 260 million stars."
The Johns Hopkins team created several online tools for accessing SDSS data. For instance, using the SkyServer website, anyone with a web browser can navigate through the sky, getting detailed information about stars or searching for objects using multiple criteria. The site also includes classroom-ready educational activities that allow students to learn science using cutting-edge data.
To allow users--scientists, citizen scientists, students--to run longer-term analyses of the Sloan data, they created CasJobs, an online workbench where registered users can run queries for up to eight hours and store results in a personal "MyDB" database for later analysis.
With each new tool, the community of users grew, leading to more and more scientific discoveries.
The problem: data without infrastructure
One major challenge in managing and extracting value from Big Data is simply preserving the data as file formats change and scientists retire. Another challenge is that most datasets are stored in an ad hoc manner with insufficient metadata for describing how the data should be interpreted and used. Yet another challenge is unequal access to data and expertise among researchers.
Even when individual datasets are well-preserved, the difficulty of combining data for joint analysis means that researchers miss opportunities for new insights. The result is that scientists work inefficiently and miss chances to grow their research projects in new directions.
A variety of projects have developed approaches to preserving and managing datasets, but providing easy access so all researchers can compare, analyze and share them remains a problem. The SciServer team has spent the last two decades addressing these problems, first in astronomy and then in other areas of science.
From SkyServer to SciServer: the new approach
Led by Szalay, the team began work on SciServer in 2013 with funding from NSF's Data Infrastructure Building Blocks program.
Set to launch in phases over the next four years, SciServer will deliver significant benefits to the scientific community by extending the infrastructure developed for SDSS astronomy data to many other areas of science.
"Our approach in designing SciServer is to bring the analysis to the data. This means that scientists can search and analyze Big Data without downloading terabytes of data, resulting in much faster processing times," Szalay said. "Bringing the analysis to the data also makes it much easier to compare and combine datasets, allowing researchers to discover new and surprising connections between them."
Szalay and his team are working in close collaboration with research partners to specify real-world use cases to ensure that the system will be most helpful to working scientists. In fact, they have already made significant progress in two fields: soil ecology and fluid dynamics.
To help ease the burden on researchers, the team developed "SciDrive," a cloud data storage system for scientific data that allows scientists to upload and share data using a Dropbox-like interface. The interface automatically reads the data into a database, and one can search online and cross-correlate with other data sources.
SciServer will extend this capability to a new citizen science project called GLUSEEN (Global Urban Soil Ecological & Educational Network), which aims to gather worldwide distributed data on soil ecology across a range of climatic conditions. SciDrive will offer extensive new collaborative features and will allow individuals to connect remote sensor measurements to weather and other datasets that are available from external worldwide providers.
"Our approach with SciDrive and citizen science immediately will be useful to many other areas of science where datasets managed by individual researchers must be combined with larger publicly-available datasets," said Szalay.
SciServer also has a major initiative underway to develop an "open numerical laboratory" for the access and processing of large simulation databases. Working with the Turbulence Simulation group at Johns Hopkins, they are developing a pilot system to integrate data sets and processing workflows from simulation of turbulence into SciServer.
As the SciServer system becomes more mature, the team will expand to benefit other areas of science including genomics--where researchers must cross-correlate petabytes of data to understand entire genomes--and connectomics--where researchers explore cellular connections across the entire structure of the brain. These collaborations will be spread over a five-year period from 2013 to 2018, and will allow SciServer to be incrementally architected and developed to support its growing capabilities.
"Our conscious strategy of 'going from working to working'--building tools by adapting existing, working tools--is a key factor in ensuring the success of our project," Szalay said. "The tools we build will create a fully-functional, user-driven system from the beginning, making SciServer an indispensable tool for doing science in the 21st century."
-- Mike Rippin, Johns Hopkins University (202) 431-7217 mike.rippin@jhu.edu
-- Aaron Dubrow, NSF (703) 292-4489 adubrow@nsf.gov
Investigators
Alexander Szalay
Randal Burns
Michael Rippin
Steven Salzberg
Aniruddha Thakar
Charles Meneveau
Related Institutions/Organizations
Johns Hopkins University
SciServer: Big Data infrastructure for science
Research team from Johns Hopkins extends tools from Sloan Digital Sky Survey to new scientific communities
Big Data comes naturally to science. Every year, scientists in every field, from astronomy to zoology, make tremendous leaps in their ability to generate valuable data.
But all of this information comes at a price. As datasets grow exponentially, so do the problems and costs associated with accessing, reading, sharing and processing them.
A new project called SciServer, supported by the National Science Foundation (NSF), aims to build a long-term, flexible ecosystem to provide access to the enormous data sets from observations and simulation.
"SciServer will help meet the challenges of Big Data," said Alex Szalay of Johns Hopkins University, the principal investigator of the five-year NSF-funded project and the architect for the Science Archive of the Sloan Digital Sky Survey. "By building a common infrastructure, we can create data access and analysis tools useful to all areas of science."
SciServer's heritage: Big Data in astronomy
SciServer grew out of work with the Sloan Digital Sky Survey (SDSS), an ambitious, ongoing project to map the entire universe.
"When the SDSS began in 1998, astronomers had data for less than 200,000 galaxies," said Ani Thakar, an astronomer at Johns Hopkins who is part of the SciServer team. "Within five years after SDSS began, we had nearly 200 million galaxies in our database. Today, the SDSS data exceeds 70 terabytes, covering more than 220 million galaxies and 260 million stars."
The Johns Hopkins team created several online tools for accessing SDSS data. For instance, using the SkyServer website, anyone with a web browser can navigate through the sky, getting detailed information about stars or searching for objects using multiple criteria. The site also includes classroom-ready educational activities that allow students to learn science using cutting-edge data.
To allow users--scientists, citizen scientists, students--to run longer-term analyses of the Sloan data, they created CasJobs, an online workbench where registered users can run queries for up to eight hours and store results in a personal "MyDB" database for later analysis.
With each new tool, the community of users grew, leading to more and more scientific discoveries.
The problem: data without infrastructure
One major challenge in managing and extracting value from Big Data is simply preserving the data as file formats change and scientists retire. Another challenge is that most datasets are stored in an ad hoc manner with insufficient metadata for describing how the data should be interpreted and used. Yet another challenge is unequal access to data and expertise among researchers.
Even when individual datasets are well-preserved, the difficulty of combining data for joint analysis means that researchers miss opportunities for new insights. The result is that scientists work inefficiently and miss chances to grow their research projects in new directions.
A variety of projects have developed approaches to preserving and managing datasets, but providing easy access so all researchers can compare, analyze and share them remains a problem. The SciServer team has spent the last two decades addressing these problems, first in astronomy and then in other areas of science.
From SkyServer to SciServer: the new approach
Led by Szalay, the team began work on SciServer in 2013 with funding from NSF's Data Infrastructure Building Blocks program.
Set to launch in phases over the next four years, SciServer will deliver significant benefits to the scientific community by extending the infrastructure developed for SDSS astronomy data to many other areas of science.
"Our approach in designing SciServer is to bring the analysis to the data. This means that scientists can search and analyze Big Data without downloading terabytes of data, resulting in much faster processing times," Szalay said. "Bringing the analysis to the data also makes it much easier to compare and combine datasets, allowing researchers to discover new and surprising connections between them."
Szalay and his team are working in close collaboration with research partners to specify real-world use cases to ensure that the system will be most helpful to working scientists. In fact, they have already made significant progress in two fields: soil ecology and fluid dynamics.
To help ease the burden on researchers, the team developed "SciDrive," a cloud data storage system for scientific data that allows scientists to upload and share data using a Dropbox-like interface. The interface automatically reads the data into a database, and one can search online and cross-correlate with other data sources.
SciServer will extend this capability to a new citizen science project called GLUSEEN (Global Urban Soil Ecological & Educational Network), which aims to gather worldwide distributed data on soil ecology across a range of climatic conditions. SciDrive will offer extensive new collaborative features and will allow individuals to connect remote sensor measurements to weather and other datasets that are available from external worldwide providers.
"Our approach with SciDrive and citizen science immediately will be useful to many other areas of science where datasets managed by individual researchers must be combined with larger publicly-available datasets," said Szalay.
SciServer also has a major initiative underway to develop an "open numerical laboratory" for the access and processing of large simulation databases. Working with the Turbulence Simulation group at Johns Hopkins, they are developing a pilot system to integrate data sets and processing workflows from simulation of turbulence into SciServer.
As the SciServer system becomes more mature, the team will expand to benefit other areas of science including genomics--where researchers must cross-correlate petabytes of data to understand entire genomes--and connectomics--where researchers explore cellular connections across the entire structure of the brain. These collaborations will be spread over a five-year period from 2013 to 2018, and will allow SciServer to be incrementally architected and developed to support its growing capabilities.
"Our conscious strategy of 'going from working to working'--building tools by adapting existing, working tools--is a key factor in ensuring the success of our project," Szalay said. "The tools we build will create a fully-functional, user-driven system from the beginning, making SciServer an indispensable tool for doing science in the 21st century."
-- Mike Rippin, Johns Hopkins University (202) 431-7217 mike.rippin@jhu.edu
-- Aaron Dubrow, NSF (703) 292-4489 adubrow@nsf.gov
Investigators
Alexander Szalay
Randal Burns
Michael Rippin
Steven Salzberg
Aniruddha Thakar
Charles Meneveau
Related Institutions/Organizations
Johns Hopkins University
PHARMACY SETTLES ALLEGATIONS IT USED GIFT CARDS AS INDUCEMENTS FOR MEDICARE, MEDICAID PATIENTS
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, December 3, 2014
Rite Aid Corporation Pays $2.99 Million for Alleged Use of Gift Cards to Induce Medicare and Medicaid Business
Rite Aid Corporation, a Delaware corporation and national retail drugstore chain with its principal place of business in Camp Hill, Pennsylvania, has paid the United States $2.99 million to resolve allegations that it violated the False Claims Act by inappropriately using gift cards as inducements, the Department of Justice announced today.
The settlement resolves allegations that Rite Aid offered illegal inducements to Medicare and Medicaid beneficiaries to transfer their prescriptions to Rite Aid pharmacies. The government alleged that from 2008 to 2010, Rite Aid had knowingly and improperly influenced the decisions of Medicare and Medicaid beneficiaries to transfer their prescriptions to Rite Aid pharmacies by offering them gift cards in exchange for their business.
“This case demonstrates the government's ongoing commitment to enforcing accountability, transparency and fairness in the retail pharmacy industry,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division. “The government will continue to advocate for the best interests of Medicare and Medicaid patients, and prevent pharmacies from improperly manipulating their healthcare choices.”
“This settlement holds Rite Aid accountable for exerting undue influence on individuals when they make important healthcare decisions about where and when to fill prescriptions,” said Acting U.S. Attorney Stephanie Yonekura for the Central District of California. “Corporate profit should never steer an individual away from making the right healthcare decision.”
“Pharmacies are not allowed to improperly influence the decision-making of Medicare and Medicaid patients about where to fill prescriptions,” said Special Agent in Charge Glenn R. Ferry for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Pharmacy chains that manipulate patient choices in this way will be held accountable.”
The settlement resolves allegations filed by Jack Chin under the qui tam, or whistleblower provisions of the False Claims Act, which authorizes private parties to sue for fraud on behalf of the United States and share in the recovery. Chin will receive approximately $508,300 of the settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.2 billion through False Claims Act cases, with more than $14.9 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was investigated jointly by the Commercial Litigation Branch of the Civil Division, the U.S. Attorney’s Office for the Central District of California, the National Association of Medicaid Fraud Control Units and HHS-OIG.
The claims settled by today’s agreement are allegations only and there has been no determination of liability.
Wednesday, December 3, 2014
Rite Aid Corporation Pays $2.99 Million for Alleged Use of Gift Cards to Induce Medicare and Medicaid Business
Rite Aid Corporation, a Delaware corporation and national retail drugstore chain with its principal place of business in Camp Hill, Pennsylvania, has paid the United States $2.99 million to resolve allegations that it violated the False Claims Act by inappropriately using gift cards as inducements, the Department of Justice announced today.
The settlement resolves allegations that Rite Aid offered illegal inducements to Medicare and Medicaid beneficiaries to transfer their prescriptions to Rite Aid pharmacies. The government alleged that from 2008 to 2010, Rite Aid had knowingly and improperly influenced the decisions of Medicare and Medicaid beneficiaries to transfer their prescriptions to Rite Aid pharmacies by offering them gift cards in exchange for their business.
“This case demonstrates the government's ongoing commitment to enforcing accountability, transparency and fairness in the retail pharmacy industry,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division. “The government will continue to advocate for the best interests of Medicare and Medicaid patients, and prevent pharmacies from improperly manipulating their healthcare choices.”
“This settlement holds Rite Aid accountable for exerting undue influence on individuals when they make important healthcare decisions about where and when to fill prescriptions,” said Acting U.S. Attorney Stephanie Yonekura for the Central District of California. “Corporate profit should never steer an individual away from making the right healthcare decision.”
“Pharmacies are not allowed to improperly influence the decision-making of Medicare and Medicaid patients about where to fill prescriptions,” said Special Agent in Charge Glenn R. Ferry for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Pharmacy chains that manipulate patient choices in this way will be held accountable.”
The settlement resolves allegations filed by Jack Chin under the qui tam, or whistleblower provisions of the False Claims Act, which authorizes private parties to sue for fraud on behalf of the United States and share in the recovery. Chin will receive approximately $508,300 of the settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.2 billion through False Claims Act cases, with more than $14.9 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was investigated jointly by the Commercial Litigation Branch of the Civil Division, the U.S. Attorney’s Office for the Central District of California, the National Association of Medicaid Fraud Control Units and HHS-OIG.
The claims settled by today’s agreement are allegations only and there has been no determination of liability.
ASSISTANT AG CALDWELL SPEAKS REGARDING FOREIGN BRIBERY REPORT
FROM: U.S. JUSTICE DEPARTMENT
Assistant Attorney General Leslie R. Caldwell Speaks at the Launch of the Organisation for Economic Co-operation and Development Foreign Bribery Report
ParisFrance ~ Tuesday, December 2, 2014
Thank you for that kind introduction, and thank you [Organisation for Economic Co-operation and Development (OECD)] Secretary-General [Angel] Gurria for inviting me to be part of this important day. I want to commend you and your team for your work in compiling this significant Foreign Bribery Report, and I am honored to be here to celebrate its release. Together, your team and the members of the Working Group on Bribery play a vital role in the global fight against corruption.
As you all know, this year marks the twentieth anniversary of the formation of the OECD Working Group on Bribery and the fifteenth anniversary of the entry into force of the OECD Anti-Bribery Convention. Since their inception, the Working Group and the Convention have played a pivotal role in the worldwide battle against bribery. By requiring countries to criminalize bribery of foreign officials in international business transactions and creating a peer-driven monitoring mechanism to ensure the robust enforcement of those laws, the Convention has helped to bring about an international approach to rooting out a global problem.
This international approach has dramatically advanced our collective efforts to uncover, punish, and deter foreign corruption. We in the United States are committed to continuing to work together with our Working Group partners to hold to account individuals and companies who engage in corruption, regardless of where they operate or reside.
The fight against transnational bribery is incredibly important. As we all know, bribery creates an unlevel playing field for honest businesses and threatens good governance, sustainable development and democratic processes. Corruption also corrodes public trust in countries both rich and poor, and inflicts particular harm on emerging economies.
And corruption can create national security concerns. It undermines the rule of law, facilitates organized crime, empowers authoritarian rulers and can threaten the stability of entire regions. For these reasons, fighting foreign bribery is a significant part of the mission of the Criminal Division of the Department of Justice.
The United States began its fight against transnational bribery in the late 1970s when the U.S. Congress enacted our foreign bribery statute – the Foreign Corrupt Practices Act – which is often referred to as the FCPA. Rigorous enforcement of the FCPA is one of the Department of Justice’s core priorities.
As the Assistant Attorney General for the Department of Justice’s Criminal Division, I have the privilege of leading 600 talented lawyers who prosecute crimes and promote the rule of law abroad. We have a specific group of prosecutors in our FCPA Unit in the Fraud Section who are dedicated to investigating and prosecuting foreign bribery cases.
In the United States, we are vigorously employing proactive investigative tools to expose foreign bribery. For instance, we conduct undercover operations with confidential informants and cooperating witnesses, using body wires, recordings, and surveillance. We have had significant success in using these tools to gather evidence in corruption cases.
The department’s commitment to the fight against foreign bribery is demonstrated by our enforcement record. Since 2009, we have convicted more than 50 individuals in FCPA and FCPA-related cases, and resolved criminal cases against more than 50 companies with penalties and forfeiture of approximately $3 billion. And, during this same time, the U.S. Securities and Exchange Commission has resolved civil actions against more than 65 companies and 25 individuals. Those cases result in total combined FCPA penalties and forfeiture by the DOJ and the SEC of approximately $4.5 billion.
These successes are the product of the skill, hard work, and determination of prosecutors in the Criminal Division, as well as our talented colleagues at the SEC. In addition to working with SEC attorneys, our prosecutors work in tandem with our partners at the FBI and other law enforcement agencies, and, importantly, our foreign partners, including our partners in the Working Group on Bribery.
The Working Group has been, and continues to be, a critical vehicle through which we, as an international community, work together to strengthen enforcement efforts across the globe. Through the Working Group, we are now more effectively able to share information, refer leads to one another, and coordinate investigations against individuals and entities that seek to obtain business overseas through bribery. All countries, though, must contribute to this international effort if we are going to meaningfully deter and root out global corruption.
The Convention’s mutual legal assistance framework – and member states’ compliance with it – is key to effective international collaboration. The framework enables member states to share with one another important evidence in a prompt and efficient way. The Criminal Division’s Office of International Affairs coordinates all international evidence gathering and extradition of international fugitives. We stand ready to assist other countries with your requests for evidence located in the United States. We are encouraged by the responses we have received to many of our requests for mutual legal assistance, and we hope that the trend toward increased assistance and cooperation among member states will continue.
Bribery schemes often span the globe without regard to country borders. A coordinated response by international law enforcement is necessary to ensure that all of the culpable individuals are held to account and to deter future would-be wrongdoers.
I’d like to discuss with you one case that shows the successful results of international cooperation. Earlier this year, countries around the world worked together to bring to justice individuals and companies engaged in a scheme to bribe government officials in Indonesia. Executives of Marubeni Corporation, a Japanese trading company; Alstom, a French energy company; corporate executives and others engaged in a multi-year scheme to pay millions of dollars to a high ranking member of the Indonesian Parliament and other Indonesian officials in exchange for assistance in securing a $118 million contract to provide power-related services in Indonesia. Participants in the scheme met in the United States to discuss the bribery and paid bribes from the United States to a corrupt intermediary with U.S. bank accounts.
In the United States, we charged Marubeni Corporation for its participation in the scheme. Marubeni pleaded guilty and paid an $88 million penalty. We also charged four Alstom executives for their roles, three of whom have pleaded guilty and one of whom is awaiting trial. We are actively continuing to investigate and anticipate additional law enforcement actions in the near future.
Meanwhile, the former Indonesian Parliament member was charged in Indonesia. He was found guilty of accepting bribes and was sentenced to three years in prison.
These actions, and others that were brought against Alstom by authorities in Switzerland, the United Kingdom, and the World Bank for additional corrupt conduct, were made possible by international cooperation. These coordinated global actions are a powerful demonstration of the successes we can achieve when we work together.
This is but one example of collaboration among Working Group and international partners in combating corruption that led to significant results. There are many other examples, and many more are in the pipeline.
On behalf of the Department of Justice, I applaud the work of the Secretary-General, the Working Group on Bribery, and the Secretariat in launching this important Report and for the role they played in the successes detailed in the Report. As the Report shows, together we have made significant progress in the battle against corruption – but our work is far from done.
I look forward to our continued collaboration and our continued success in rooting out and deterring the scourge that is foreign bribery.
Thank you.
Assistant Attorney General Leslie R. Caldwell Speaks at the Launch of the Organisation for Economic Co-operation and Development Foreign Bribery Report
ParisFrance ~ Tuesday, December 2, 2014
Thank you for that kind introduction, and thank you [Organisation for Economic Co-operation and Development (OECD)] Secretary-General [Angel] Gurria for inviting me to be part of this important day. I want to commend you and your team for your work in compiling this significant Foreign Bribery Report, and I am honored to be here to celebrate its release. Together, your team and the members of the Working Group on Bribery play a vital role in the global fight against corruption.
As you all know, this year marks the twentieth anniversary of the formation of the OECD Working Group on Bribery and the fifteenth anniversary of the entry into force of the OECD Anti-Bribery Convention. Since their inception, the Working Group and the Convention have played a pivotal role in the worldwide battle against bribery. By requiring countries to criminalize bribery of foreign officials in international business transactions and creating a peer-driven monitoring mechanism to ensure the robust enforcement of those laws, the Convention has helped to bring about an international approach to rooting out a global problem.
This international approach has dramatically advanced our collective efforts to uncover, punish, and deter foreign corruption. We in the United States are committed to continuing to work together with our Working Group partners to hold to account individuals and companies who engage in corruption, regardless of where they operate or reside.
The fight against transnational bribery is incredibly important. As we all know, bribery creates an unlevel playing field for honest businesses and threatens good governance, sustainable development and democratic processes. Corruption also corrodes public trust in countries both rich and poor, and inflicts particular harm on emerging economies.
And corruption can create national security concerns. It undermines the rule of law, facilitates organized crime, empowers authoritarian rulers and can threaten the stability of entire regions. For these reasons, fighting foreign bribery is a significant part of the mission of the Criminal Division of the Department of Justice.
The United States began its fight against transnational bribery in the late 1970s when the U.S. Congress enacted our foreign bribery statute – the Foreign Corrupt Practices Act – which is often referred to as the FCPA. Rigorous enforcement of the FCPA is one of the Department of Justice’s core priorities.
As the Assistant Attorney General for the Department of Justice’s Criminal Division, I have the privilege of leading 600 talented lawyers who prosecute crimes and promote the rule of law abroad. We have a specific group of prosecutors in our FCPA Unit in the Fraud Section who are dedicated to investigating and prosecuting foreign bribery cases.
In the United States, we are vigorously employing proactive investigative tools to expose foreign bribery. For instance, we conduct undercover operations with confidential informants and cooperating witnesses, using body wires, recordings, and surveillance. We have had significant success in using these tools to gather evidence in corruption cases.
The department’s commitment to the fight against foreign bribery is demonstrated by our enforcement record. Since 2009, we have convicted more than 50 individuals in FCPA and FCPA-related cases, and resolved criminal cases against more than 50 companies with penalties and forfeiture of approximately $3 billion. And, during this same time, the U.S. Securities and Exchange Commission has resolved civil actions against more than 65 companies and 25 individuals. Those cases result in total combined FCPA penalties and forfeiture by the DOJ and the SEC of approximately $4.5 billion.
These successes are the product of the skill, hard work, and determination of prosecutors in the Criminal Division, as well as our talented colleagues at the SEC. In addition to working with SEC attorneys, our prosecutors work in tandem with our partners at the FBI and other law enforcement agencies, and, importantly, our foreign partners, including our partners in the Working Group on Bribery.
The Working Group has been, and continues to be, a critical vehicle through which we, as an international community, work together to strengthen enforcement efforts across the globe. Through the Working Group, we are now more effectively able to share information, refer leads to one another, and coordinate investigations against individuals and entities that seek to obtain business overseas through bribery. All countries, though, must contribute to this international effort if we are going to meaningfully deter and root out global corruption.
The Convention’s mutual legal assistance framework – and member states’ compliance with it – is key to effective international collaboration. The framework enables member states to share with one another important evidence in a prompt and efficient way. The Criminal Division’s Office of International Affairs coordinates all international evidence gathering and extradition of international fugitives. We stand ready to assist other countries with your requests for evidence located in the United States. We are encouraged by the responses we have received to many of our requests for mutual legal assistance, and we hope that the trend toward increased assistance and cooperation among member states will continue.
Bribery schemes often span the globe without regard to country borders. A coordinated response by international law enforcement is necessary to ensure that all of the culpable individuals are held to account and to deter future would-be wrongdoers.
I’d like to discuss with you one case that shows the successful results of international cooperation. Earlier this year, countries around the world worked together to bring to justice individuals and companies engaged in a scheme to bribe government officials in Indonesia. Executives of Marubeni Corporation, a Japanese trading company; Alstom, a French energy company; corporate executives and others engaged in a multi-year scheme to pay millions of dollars to a high ranking member of the Indonesian Parliament and other Indonesian officials in exchange for assistance in securing a $118 million contract to provide power-related services in Indonesia. Participants in the scheme met in the United States to discuss the bribery and paid bribes from the United States to a corrupt intermediary with U.S. bank accounts.
In the United States, we charged Marubeni Corporation for its participation in the scheme. Marubeni pleaded guilty and paid an $88 million penalty. We also charged four Alstom executives for their roles, three of whom have pleaded guilty and one of whom is awaiting trial. We are actively continuing to investigate and anticipate additional law enforcement actions in the near future.
Meanwhile, the former Indonesian Parliament member was charged in Indonesia. He was found guilty of accepting bribes and was sentenced to three years in prison.
These actions, and others that were brought against Alstom by authorities in Switzerland, the United Kingdom, and the World Bank for additional corrupt conduct, were made possible by international cooperation. These coordinated global actions are a powerful demonstration of the successes we can achieve when we work together.
This is but one example of collaboration among Working Group and international partners in combating corruption that led to significant results. There are many other examples, and many more are in the pipeline.
On behalf of the Department of Justice, I applaud the work of the Secretary-General, the Working Group on Bribery, and the Secretariat in launching this important Report and for the role they played in the successes detailed in the Report. As the Report shows, together we have made significant progress in the battle against corruption – but our work is far from done.
I look forward to our continued collaboration and our continued success in rooting out and deterring the scourge that is foreign bribery.
Thank you.
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