FROM: U.S. STATE DEPARTMENT
01/26/2015 03:37 PM EST
Samantha Power
U.S. Permanent Representative to the United Nations
New York, NY
January 26, 2015
AS DELIVERED
Thank you, Mr. President for convening today’s urgent meeting. Under Secretary-General Feltman, we are grateful for your thorough briefing on such short notice.
Just five days ago, we met in this Council and denounced the devastating consequences of attacks by Russian-backed separatists on civilians in eastern Ukraine, and we appealed to Russia to stop supporting, training, and fighting alongside separatist forces. Members of this Council pressed Russia and the separatists not only to recommit themselves to the agreements they had made at Minsk, but actually to honor those commitments in their actions. Unfortunately, we are back here today because Russia and the separatists have once again flouted these commitments.
The targets are fresh ones, but Russia’s end goal remains the same: to seize more territory and move the line of Russian-controlled territory deeper and deeper into Ukraine.
This time, though, statements by the separatists are complicating Russia’s strategy. On Friday, January 23, the de factor leader of the Russian-backed separatists in Donetsk, Alexander Zakharchenko said, and I quote: “Today the offensive on Mariupol begins.” He also said, “There will be no more ceasefires.” He said the separatists would not stop their attacks until they had, “reached the borders of the former Donetsk region,” bragging that separatist forces were now “able to attack in three directions simultaneously.” The Representative of the Russian Federation today said that these are statements we have taken out of context. What context possibly justifies a massive offensive against a civilian populated town? I would note, also, that attacking in three directions, as the separatist leader said he now had the capability – his forces had the capability to do – takes a lot of weapons and forces. This capability reflects the difference made by the substantial, months-long influx of Russian personnel and heavy weapons.
We know that Zakharchenko said these things because he was filmed when he said them, and quoted by the official Russian news agency, TASS. On Saturday, Zakharchenko told people at a rally in Donetsk, “Today the attack on Mariupol began.” He added that, “In a few days we will encircle Debaltseve,” a city that is twelve kilometers outside the ceasefire line established at Minsk.
If only the separatist’s words had been empty bravado. Unfortunately, on Saturday, the world witnessed the horrors that resulted from the separatists’ attack on Mariupol, a city 25 kilometers outside of the Minsk line. On Saturday alone, more than 100 people were injured in rocket attacks on the city. Approximately 30 people were killed, including women, elderly, and children, one of whom was a four-year-old boy. Some 40 rounds of rockets struck the city, hitting a market, homes, and a school, among other civilian structures. The impartial OSCE Special Monitoring Mission to Ukraine examined blast craters and concluded that they had been caused by Grad rockets fired from multi-rocket launcher systems in separatist-controlled areas.
Why do these locations matter to the Russians and the separatists? Mariupol is a port city, which would provide Russia with another means of supplying separatists. And controlling the city would be another step toward creating a land bridge to illegally-occupied Crimea. Debaltseve is a strategic rail and road hub, and serves as a key link between Donetsk and Luhansk regions. It is no accident that these strategic cities are in Russia’s sights.
When, on Saturday, members of the Council tried to issue a joint statement denouncing the civilian casualties and expressing concern about the separatist’s statements, as we’ve heard, Russia blocked it. No wonder, given that less than a day earlier Russia had been perfectly content disseminating Zakharchenko’s statements in its state-run media. It would be strange to be concerned about statements one had encouraged and publicized.
But when your state news agency circulates announcements relishing a new offensive and your diplomats refuse to express concern about them, you own not only the statements, but also the offensives.
Now sometimes, perhaps given the fog of this bloody war, the separatists are too explicit about their objectives. Indeed, after initially blasting around the separatists’ Mariupol ambitions in the news service, Russia began to see the same ghastly images and reports of the carnage that the rest of us saw. At that point, perhaps knowing the source of the weaponry used, Russia tried to deny any tie between the separatists and the attacks. The Russian news service, TASS, even tried to erase from official news stories all quotes from Zakharchenko speaking about the separatists’ attacks.
It is not hard to understand why Russia does not want the world to hear separatists’ statements. Last Wednesday, the Representative of the Russian Federation told this Council that, “the Russian Federation is ensuring full compliance with the Minsk accords.” On Saturday, though, Zakharchenko openly admitted his forces were violating those same accords. He appeared not to have gotten the Russian memo, which clearly calls for violating the accords while pretending you are not.
Despite Zakharchenko’s statements, Russia continues to try to play the international community for the fool, and blame the violence on the Ukrainians. As recently as yesterday, Foreign Minister Lavrov said, “The worsening situation in Ukraine was the result of constant attacks conducted by the Ukrainian government troops, which breached the Minsk agreements.” We heard the same here today from the Representative of the Russian Federation.
Zakharchenko’s statements are a problem for Russia because they are too straightforward. As members of this Council know – and as, increasingly, all the world can see – the separatists he claims to lead are trained and equipped by Russia, and fight with Russian forces by their side. So when Zakharchenko brags about seizing territory beyond the Minsk ceasefire line; when he announces at rallies that separatists will strike Ukrainian forces without provocation; when he says he is not interested in negotiating; he is not only speaking about the separatists’ intentions, but also about Russia’s intentions. This offensive is made in Moscow. It is waged by Russian-trained and Russian-funded separatists, who use Russian missiles and Russian tanks, who are backed up by Russian troops, and whose operations receive direct Russian assistance.
Since December, Russia has transferred hundreds of pieces of military equipment to pro-Russian separatists in eastern Ukraine, including tanks, armored vehicles, rocket systems, heavy artillery, and other military equipment. And in recent weeks, Russia has resupplied the separatists with hundreds of pieces of advanced weaponry, including additional rocket systems, heavy artillery, tanks, and armored vehicles.
In mid-to-late January, notwithstanding the shoot down of MH-17, Russia even deployed into eastern Ukraine advanced surface-to-air missile and antiaircraft systems, marking the highest level of Russian air defense presence in eastern Ukraine since September 2014. There is a direct correlation between the movement of heavy weapons, the surge in that movement across the border, and attempts by separatists to take more ground.
The horror wrought by this arsenal has been deadly. According to the UN High Commissioner for Human Rights, January 13th to the 21st was the deadliest period on record since the September 5th agreement was signed in Minsk. During this time, an average of 29 people were killed each day. More than 5,000 people have been killed and almost 11,000 maimed since the conflict began in April 2014. And today, this very day, the attacks continue on the civilian-populated areas over the Minsk Ceasefire lines – not only in Mariupol and Debaltseve, but also in Pisky and Stanychno-Lunhanske.
To the Russians, Mariupol and Debaltseve may just be strategic chess pieces in their effort to move the line of territory that they control. But these cities are also home to hundreds of thousands of Ukrainian civilians. Nearly 500,000 people live in Mariupol, the second biggest city in the Donetsk region, and more than 25,000 live in Debaltseve. Mariupol is home to 92 pre-schools, attended by 13,000 children.
We continue to believe that the only solution to this situation is a political solution, not a military solution. To that end, we continue to support the efforts of the Trilateral Contact Group, as well as the Normandy group of foreign ministers. We welcome the Normandy group’s agreement in Berlin, which recognizes the need for full, immediate implementation of the Minsk agreement.
If Russia is serious about peace, why doesn’t Russia condemn the statements by separatists that they will attack Ukrainians first and accept no more ceasefires, instead of trying to erase those statements from its state-run news services? If Russia is serious about peace, why doesn’t it pull its tanks and Grad missiles out of eastern Ukraine, instead of sending in more? If Russia is serious about peace, why doesn’t it withdraw its forces at least to the lines agreed upon at Minsk, rather than sending in a huge infusion of Russian heavy weapons so as to carve out new lines.
Only if Russia takes these steps will there be a chance for the political solution that is so desperately needed.
Thank you.
Wednesday, January 28, 2015
GREEN COFFEE BEAN WEIGHT-LOSS MARKETER AGREES TO SETTLEMENT WITH FTC
FROM: U.S. FEDERAL TRADE COMMISSION
Marketer Who Promoted a Green Coffee Bean Weight-Loss Supplement Agrees to Settle FTC Charges
Used Appearances on Dr. Oz, Other Shows to Launch Ad Campaign
OZ EFFECT
Lindsey Duncan and the companies he controlled have agreed to settle Federal Trade Commission charges that they deceptively touted the supposed weight-loss benefits of green coffee bean extract through a campaign that included appearances on The Dr. Oz Show, The View, and other television programs.
Under the FTC settlement, the defendants are barred from making deceptive claims about the health benefits or efficacy of any dietary supplement or drug product, and will pay $9 million for consumer redress.
“Lindsey Duncan and his companies made millions by falsely claiming that green coffee bean supplements cause significant and rapid weight loss,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “This case shows that the Federal Trade Commission will continue to fight deceptive marketers’ attempts to prey on consumers trying to improve their health.”
The FTC charged that Duncan and his companies, Pure Health LLC and Genesis Today, Inc., deceptively claimed that the supplement could cause consumers to lose 17 poundsand 16 percent of their body fat in just 12 weeks without diet or exercise, and that the claim was backed up by a clinical study. In September 2014, the FTC settled charges against the company that sponsored the severely flawed study that Duncan discussed on Dr. Oz.
According to the FTC’s complaint, shortly after Duncan agreed to appear on Dr. Oz but before the show aired, he began selling the extract and tailored a marketing campaign around his appearance on the show to capitalize on the “Oz effect” – a phenomenon in which discussion of a product on the program causes an increase in consumer demand.
For example, while discussing green coffee bean extract during the taping of Dr. Oz, Duncan urged viewers to search for the product online using phrases his companies would use in search advertising to drive consumers to their websites selling the extract. He reached out to retailers, describing his upcoming appearance on The Dr. Oz Show and saying he planned to discuss the clinical trials that purportedly proved the supplement’s effectiveness. He and his companies also began an intensive effort to make the extract available in Walmart stores and on Amazon.com when the program aired.
The defendants continued to use Duncan’s Dr. Oz appearance in their marketing campaign after the show aired, the complaint states, posting links to the episode on websites and using retail point-of-sale displays showing messages such as “New Health Discovery! As Seen on TV, ‘The Dieter’s Secret Weapon.’” After appearing on Dr. Oz, Duncan and his companies sold tens of millions of dollars’ worth of the extract, according to the FTC.
The FTC also alleged that Duncan and several of the companies’ paid spokespeople portrayed themselves on television shows as independent sources of information about green coffee bean extract and other natural remedies, while failing to disclose their financial ties to the companies.
The proposed stipulated court order requires the defendants to substantiate any future weight-loss claims with at least two well-controlled human clinical tests. Any claims the defendants make about the health benefits and efficacy of any dietary supplement or drug cannot be misleading and must be substantiated by competent and reliable scientific evidence. Further, the order prohibits false claims that the benefits of any such product are scientifically proven.
The order also bars the defendants from misrepresenting the status of any endorser, and requires them to disclose all material connections between them and anyone who endorses their products. Finally, it imposes a $9 million redress judgment, with an initial payment of $5 million due within two weeks of when the court enters the order.
Information for Consumers
Consumers should carefully evaluate advertising claims for weight-loss products. For more information, see the FTC’s guidance for consumers of products and services advertised for Weight Loss & Fitness.
The Commission vote authorizing the staff to file the complaint was 5-0. The vote authorizing the filing of the proposed stipulated court order was 3-2, with Commissioners Ohlhausen and Wright voting no. The majority, Chairwoman Ramirez, Commissioner Brill, and Commissioner McSweeny, issued a separate statement. Commissioners Ohlhausen and Wright also issued a separate statement. The complaint and order were filed in the U.S. District Court for the Western District of Texas on January 26, 2015.
The FTC is a member of the National Prevention Council, which provides coordination and leadership at the federal level regarding prevention, wellness, and health promotion practices. This case advances the National Prevention Strategy’s goal of increasing the number of Americans who are healthy at every stage of life.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. Stipulated orders have the force of law when approved and signed by the District Court judge.
Marketer Who Promoted a Green Coffee Bean Weight-Loss Supplement Agrees to Settle FTC Charges
Used Appearances on Dr. Oz, Other Shows to Launch Ad Campaign
OZ EFFECT
Lindsey Duncan and the companies he controlled have agreed to settle Federal Trade Commission charges that they deceptively touted the supposed weight-loss benefits of green coffee bean extract through a campaign that included appearances on The Dr. Oz Show, The View, and other television programs.
Under the FTC settlement, the defendants are barred from making deceptive claims about the health benefits or efficacy of any dietary supplement or drug product, and will pay $9 million for consumer redress.
“Lindsey Duncan and his companies made millions by falsely claiming that green coffee bean supplements cause significant and rapid weight loss,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “This case shows that the Federal Trade Commission will continue to fight deceptive marketers’ attempts to prey on consumers trying to improve their health.”
The FTC charged that Duncan and his companies, Pure Health LLC and Genesis Today, Inc., deceptively claimed that the supplement could cause consumers to lose 17 poundsand 16 percent of their body fat in just 12 weeks without diet or exercise, and that the claim was backed up by a clinical study. In September 2014, the FTC settled charges against the company that sponsored the severely flawed study that Duncan discussed on Dr. Oz.
According to the FTC’s complaint, shortly after Duncan agreed to appear on Dr. Oz but before the show aired, he began selling the extract and tailored a marketing campaign around his appearance on the show to capitalize on the “Oz effect” – a phenomenon in which discussion of a product on the program causes an increase in consumer demand.
For example, while discussing green coffee bean extract during the taping of Dr. Oz, Duncan urged viewers to search for the product online using phrases his companies would use in search advertising to drive consumers to their websites selling the extract. He reached out to retailers, describing his upcoming appearance on The Dr. Oz Show and saying he planned to discuss the clinical trials that purportedly proved the supplement’s effectiveness. He and his companies also began an intensive effort to make the extract available in Walmart stores and on Amazon.com when the program aired.
The defendants continued to use Duncan’s Dr. Oz appearance in their marketing campaign after the show aired, the complaint states, posting links to the episode on websites and using retail point-of-sale displays showing messages such as “New Health Discovery! As Seen on TV, ‘The Dieter’s Secret Weapon.’” After appearing on Dr. Oz, Duncan and his companies sold tens of millions of dollars’ worth of the extract, according to the FTC.
The FTC also alleged that Duncan and several of the companies’ paid spokespeople portrayed themselves on television shows as independent sources of information about green coffee bean extract and other natural remedies, while failing to disclose their financial ties to the companies.
The proposed stipulated court order requires the defendants to substantiate any future weight-loss claims with at least two well-controlled human clinical tests. Any claims the defendants make about the health benefits and efficacy of any dietary supplement or drug cannot be misleading and must be substantiated by competent and reliable scientific evidence. Further, the order prohibits false claims that the benefits of any such product are scientifically proven.
The order also bars the defendants from misrepresenting the status of any endorser, and requires them to disclose all material connections between them and anyone who endorses their products. Finally, it imposes a $9 million redress judgment, with an initial payment of $5 million due within two weeks of when the court enters the order.
Information for Consumers
Consumers should carefully evaluate advertising claims for weight-loss products. For more information, see the FTC’s guidance for consumers of products and services advertised for Weight Loss & Fitness.
The Commission vote authorizing the staff to file the complaint was 5-0. The vote authorizing the filing of the proposed stipulated court order was 3-2, with Commissioners Ohlhausen and Wright voting no. The majority, Chairwoman Ramirez, Commissioner Brill, and Commissioner McSweeny, issued a separate statement. Commissioners Ohlhausen and Wright also issued a separate statement. The complaint and order were filed in the U.S. District Court for the Western District of Texas on January 26, 2015.
The FTC is a member of the National Prevention Council, which provides coordination and leadership at the federal level regarding prevention, wellness, and health promotion practices. This case advances the National Prevention Strategy’s goal of increasing the number of Americans who are healthy at every stage of life.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. Stipulated orders have the force of law when approved and signed by the District Court judge.
VIEWS EXCHANGED IN BRUSSELS OVER HUMAN RIGHTS IN NORTH KOREA
FROM: U.S. STATE DEPARTMENT
Exchange of Views on the Human Rights Situation in North Korea
Remarks
Robert R. King
Special Envoy for North Korean Human Rights Issues
European Parliament Subcommittee on Human Rights
Brussels, Belgium
January 21, 2015
As Prepared for Delivery
Madam Chair and distinguished Members of the Human Rights Subcommittee, it is a great pleasure to meet with you again to discuss the human rights situation in North Korea and discuss areas in which the United States can work with our European partners. We have deep concerns for the well-being of the North Korean people, and we both seek to improve human rights conditions in North Korea, which is one of the worst human rights violators in the world.
I first want to express our thanks and appreciation for the very important leadership role that the European Union plays in the United Nations General Assembly and in the UN Human Rights Council on the annual resolutions on the D.P.R.K. human rights record. One of the most important developments in North Korean human rights issues was the Human Rights Council’s decision in March 2013 to establish a Commission of Inquiry (COI) on the D.P.R.K. to examine the “systematic, widespread, and grave violations of human rights.” I’d like to thank you for the EU’s role in the resolution which created the COI recognizing the seriousness of the D.P.R.K. ’s human rights abuses.
In March 2014, the Commission presented a comprehensive report of its findings to the UN Human Rights Council, concluding that systematic, widespread and gross human rights violations have been and are being committed by the D.P.R.K. , its institutions, and its officials. The report further concluded that in many cases, such violations rise to the level of crimes against humanity. After hearing from the Commission, the UN Human Rights Council and General Assembly this past year adopted strong resolutions calling for accountability for North Korea’s human rights abuses. By an overwhelming vote of 30 yeas, 6 nays, and 11 abstentions, the UN Human Rights Council’s resolution praised the Commission’s report and called for accountability in dealing with the North Korean violations. At the UN General Assembly in December, a similar resolution was adopted by a resounding vote of 116 yeas, 20 nays, and 53 abstentions.
Also last month, for the first time, the D.P.R.K. ’s grave human rights situation was taken up as a standing agenda item by the UN Security Council. The inclusion of this issue on the Security Council’s agenda reflects the world’s grave concern and the importance of accountability. This action will ensure that the D.P.R.K. situation will receive the Security Council’s ongoing attention on the egregious human rights abuses, and it reflects the international community’s concern that these systematic and widespread violations represent a threat to international peace and security.
The D.P.R.K. , in turn, has inconsistently reacted to the international spotlight on its deplorable human rights record. In the lead up to the UNGA resolution vote, the D.P.R.K. offered visits to the UN Special Rapporteur and the UN High Commissioner for Human Rights, but the government immediately withdrew these offers after the critical General Assembly resolution was adopted. The government also sent delegations to attend various human rights events focused on its record and even sponsored an unprecedented human rights press conference in New York, where North Korean government officials acknowledged the existence of reeducation through labor centers. On the other hand, the D.P.R.K. responded to the General Assembly resolution by threatening a fourth nuclear test. D.P.R.K. media also attacked by name the Commission of Inquiry Chair, Australian High Court Justice Michael Kirby, and verbally attacked other outspoken activists. These belligerent and personal attacks only demonstrated the desperation to distract the international community from North Korea’s shocking human rights record. Together with the international community, we are using the full range of tools at our disposal to make clear to the D.P.R.K. that abandoning its current course and observing international laws and obligations is the only way to end its isolation.
Coordination between the United States and the European Union has remained strong throughout this past year. Our cooperation helped ensure that when North Korea’s foreign minister and other senior officials traveled abroad on a charm offensive last fall, they heard a common chorus of calls for progress on human rights and denuclearization. And in recent weeks, our international partners have joined us in condemning the destructive and coercive cyberattack on Sony Pictures, by which the D.P.R.K. attempted to suppress freedom of expression beyond its own borders. We are grateful that our partners have joined in calling on the D.P.R.K. to cease such attacks and in supporting a proportionate response.
Today, the D.P.R.K. remains an authoritarian state, which subjects its citizens to rigid controls over all aspects of their lives, including denying them enjoyment of freedoms of expression, peaceful assembly, association, religion or belief, and movement, as well as certain worker rights. The government maintains a vast network of political prison camps in which conditions are harsh and life-threatening, and prisoners, including children, are subjected to forced and compulsory labor. North Korean defectors and the international media continued to report public executions, disappearances, arbitrary detention, arrests of political prisoners, and torture. The judiciary is not independent and does not provide fair trials. Refugees who seek to leave the country are sent to prison without any knowledge of the charges against them. Even today entire families, up to three generations, are sent to the prison camps without trial when some official determines usually without trial. There has been no significant progress in the investigation of abductions of foreign citizens by the North Korean government.
We continue to receive reports that border guards have orders to shoot to kill potential “defectors,” and prison guards had orders to shoot to kill those attempting to escape from political prison camps. Secretary Kerry, six other Foreign Ministers, and the UN High Commissioner for Human Rights highlighted these grave injustices this past September in New York City at the time of the UN General Assembly high level meetings.
As we look forward to this year, two things strike me. First, the D.P.R.K. has few supporters left. UN Special Rapporteur on D.P.R.K. human rights, former Indonesian Prosecutor General Marzuki Darusman, spoke to the UN Human Rights Council last June. In the discussion after his presentation, less than a quarter of the countries that spoke were even supportive of the D.P.R.K. , and most of those expressed concern about the singling out of one country and did not comment on the substance of the human rights violations. The countries that defended the D.P.R.K. were among the world’s worst human rights violators – Belarus, Cuba, Iran, Syria, Venezuela, and Zimbabwe. This is not a group of supporters that gives much comfort to the North.
Second, the COI report was a very important step, but it is not the end. It has created momentum for the international community to continue to focus on D.P.R.K. abuses. In particular, both the COI’s report and the UN Human Rights Council resolution recommended the establishment of a field office under the Office of the UN High Commissioner for Human Rights (OHCHR) to preserve and document evidence of atrocities in order to enable future accountability. South Korea has agreed to host this office, and I thank the South Korean government’s willingness to host this field office. This office will play an important role in maintaining visibility on the ongoing human rights abuses in the North. We expect to see this office open in the next two months so that it can continue to build upon the foundation established by the Commission.
The last significant issue that I want to mention is the importance of increasing the flow of information into and out of North Korea. This country is one of the most closed societies in the world. In this era of virtually instantaneous communication, North Korea remains a dark spot – unconnected to the global information network. There are over two million cell phones in North Korea, but these phones connect only domestic users and are closely monitored. Calls to parties outside the country are difficult if not impossible to make and are illegal for most users. Internet access is limited to a tiny circle of elites.
This lack of access to independent information limits what North Koreans know about the outside world, and it also limits what we know about what is happening in the North. But cracks in the information blockade are starting to form. The latest study by the U.S. Broadcasting Board of Governors found that 35 percent of North Korean refugees and travelers had listened to foreign radio broadcasts inside North Korea, even though it is still illegal to possess a radio that can be tuned. Foreign videos are now being seen by even larger numbers – approximately 85 percent of refugees and travelers abroad have seen foreign, principally South Korean, DVDs in the North. North Koreans are increasingly familiar with South Korean K-Pop and have seen movies like Titanic and Bend It Like Beckham.
Information is also trickling out. Civil society has undertaken efforts to examine satellite imagery to gain a more detailed understanding of the prison camp system. Other nongovernmental organizations have developed interactive mapping tools that document the numerous human rights abuses reported by defectors. South Korea-based defector groups are breaking news stories about life inside North Korea faster than ever before. I am hopeful that we are beginning to see changes.
Our deep concern for human rights in North Korea and for the well-being of the North Korean people reflects the American commitment to the rule of law and respect for individual rights. Our country was founded on fundamental principles of human rights, and our support for these rights is an essential part of what defines the American people. These are values we share with the peoples of the European Union.
The world will not, and cannot, close its eyes to what is happening in North Korea. Ultimately, we will judge the North not by its words, but by its actions—the concrete steps it takes to address the core concerns of the international community, from its nuclear program to its human rights violations. I believe we are in agreement that the D.P.R.K. must demonstrate respect for human rights in order to fully participate in the international community. Thank you for this invitation to speak with you.
Exchange of Views on the Human Rights Situation in North Korea
Remarks
Robert R. King
Special Envoy for North Korean Human Rights Issues
European Parliament Subcommittee on Human Rights
Brussels, Belgium
January 21, 2015
As Prepared for Delivery
Madam Chair and distinguished Members of the Human Rights Subcommittee, it is a great pleasure to meet with you again to discuss the human rights situation in North Korea and discuss areas in which the United States can work with our European partners. We have deep concerns for the well-being of the North Korean people, and we both seek to improve human rights conditions in North Korea, which is one of the worst human rights violators in the world.
I first want to express our thanks and appreciation for the very important leadership role that the European Union plays in the United Nations General Assembly and in the UN Human Rights Council on the annual resolutions on the D.P.R.K. human rights record. One of the most important developments in North Korean human rights issues was the Human Rights Council’s decision in March 2013 to establish a Commission of Inquiry (COI) on the D.P.R.K. to examine the “systematic, widespread, and grave violations of human rights.” I’d like to thank you for the EU’s role in the resolution which created the COI recognizing the seriousness of the D.P.R.K. ’s human rights abuses.
In March 2014, the Commission presented a comprehensive report of its findings to the UN Human Rights Council, concluding that systematic, widespread and gross human rights violations have been and are being committed by the D.P.R.K. , its institutions, and its officials. The report further concluded that in many cases, such violations rise to the level of crimes against humanity. After hearing from the Commission, the UN Human Rights Council and General Assembly this past year adopted strong resolutions calling for accountability for North Korea’s human rights abuses. By an overwhelming vote of 30 yeas, 6 nays, and 11 abstentions, the UN Human Rights Council’s resolution praised the Commission’s report and called for accountability in dealing with the North Korean violations. At the UN General Assembly in December, a similar resolution was adopted by a resounding vote of 116 yeas, 20 nays, and 53 abstentions.
Also last month, for the first time, the D.P.R.K. ’s grave human rights situation was taken up as a standing agenda item by the UN Security Council. The inclusion of this issue on the Security Council’s agenda reflects the world’s grave concern and the importance of accountability. This action will ensure that the D.P.R.K. situation will receive the Security Council’s ongoing attention on the egregious human rights abuses, and it reflects the international community’s concern that these systematic and widespread violations represent a threat to international peace and security.
The D.P.R.K. , in turn, has inconsistently reacted to the international spotlight on its deplorable human rights record. In the lead up to the UNGA resolution vote, the D.P.R.K. offered visits to the UN Special Rapporteur and the UN High Commissioner for Human Rights, but the government immediately withdrew these offers after the critical General Assembly resolution was adopted. The government also sent delegations to attend various human rights events focused on its record and even sponsored an unprecedented human rights press conference in New York, where North Korean government officials acknowledged the existence of reeducation through labor centers. On the other hand, the D.P.R.K. responded to the General Assembly resolution by threatening a fourth nuclear test. D.P.R.K. media also attacked by name the Commission of Inquiry Chair, Australian High Court Justice Michael Kirby, and verbally attacked other outspoken activists. These belligerent and personal attacks only demonstrated the desperation to distract the international community from North Korea’s shocking human rights record. Together with the international community, we are using the full range of tools at our disposal to make clear to the D.P.R.K. that abandoning its current course and observing international laws and obligations is the only way to end its isolation.
Coordination between the United States and the European Union has remained strong throughout this past year. Our cooperation helped ensure that when North Korea’s foreign minister and other senior officials traveled abroad on a charm offensive last fall, they heard a common chorus of calls for progress on human rights and denuclearization. And in recent weeks, our international partners have joined us in condemning the destructive and coercive cyberattack on Sony Pictures, by which the D.P.R.K. attempted to suppress freedom of expression beyond its own borders. We are grateful that our partners have joined in calling on the D.P.R.K. to cease such attacks and in supporting a proportionate response.
Today, the D.P.R.K. remains an authoritarian state, which subjects its citizens to rigid controls over all aspects of their lives, including denying them enjoyment of freedoms of expression, peaceful assembly, association, religion or belief, and movement, as well as certain worker rights. The government maintains a vast network of political prison camps in which conditions are harsh and life-threatening, and prisoners, including children, are subjected to forced and compulsory labor. North Korean defectors and the international media continued to report public executions, disappearances, arbitrary detention, arrests of political prisoners, and torture. The judiciary is not independent and does not provide fair trials. Refugees who seek to leave the country are sent to prison without any knowledge of the charges against them. Even today entire families, up to three generations, are sent to the prison camps without trial when some official determines usually without trial. There has been no significant progress in the investigation of abductions of foreign citizens by the North Korean government.
We continue to receive reports that border guards have orders to shoot to kill potential “defectors,” and prison guards had orders to shoot to kill those attempting to escape from political prison camps. Secretary Kerry, six other Foreign Ministers, and the UN High Commissioner for Human Rights highlighted these grave injustices this past September in New York City at the time of the UN General Assembly high level meetings.
As we look forward to this year, two things strike me. First, the D.P.R.K. has few supporters left. UN Special Rapporteur on D.P.R.K. human rights, former Indonesian Prosecutor General Marzuki Darusman, spoke to the UN Human Rights Council last June. In the discussion after his presentation, less than a quarter of the countries that spoke were even supportive of the D.P.R.K. , and most of those expressed concern about the singling out of one country and did not comment on the substance of the human rights violations. The countries that defended the D.P.R.K. were among the world’s worst human rights violators – Belarus, Cuba, Iran, Syria, Venezuela, and Zimbabwe. This is not a group of supporters that gives much comfort to the North.
Second, the COI report was a very important step, but it is not the end. It has created momentum for the international community to continue to focus on D.P.R.K. abuses. In particular, both the COI’s report and the UN Human Rights Council resolution recommended the establishment of a field office under the Office of the UN High Commissioner for Human Rights (OHCHR) to preserve and document evidence of atrocities in order to enable future accountability. South Korea has agreed to host this office, and I thank the South Korean government’s willingness to host this field office. This office will play an important role in maintaining visibility on the ongoing human rights abuses in the North. We expect to see this office open in the next two months so that it can continue to build upon the foundation established by the Commission.
The last significant issue that I want to mention is the importance of increasing the flow of information into and out of North Korea. This country is one of the most closed societies in the world. In this era of virtually instantaneous communication, North Korea remains a dark spot – unconnected to the global information network. There are over two million cell phones in North Korea, but these phones connect only domestic users and are closely monitored. Calls to parties outside the country are difficult if not impossible to make and are illegal for most users. Internet access is limited to a tiny circle of elites.
This lack of access to independent information limits what North Koreans know about the outside world, and it also limits what we know about what is happening in the North. But cracks in the information blockade are starting to form. The latest study by the U.S. Broadcasting Board of Governors found that 35 percent of North Korean refugees and travelers had listened to foreign radio broadcasts inside North Korea, even though it is still illegal to possess a radio that can be tuned. Foreign videos are now being seen by even larger numbers – approximately 85 percent of refugees and travelers abroad have seen foreign, principally South Korean, DVDs in the North. North Koreans are increasingly familiar with South Korean K-Pop and have seen movies like Titanic and Bend It Like Beckham.
Information is also trickling out. Civil society has undertaken efforts to examine satellite imagery to gain a more detailed understanding of the prison camp system. Other nongovernmental organizations have developed interactive mapping tools that document the numerous human rights abuses reported by defectors. South Korea-based defector groups are breaking news stories about life inside North Korea faster than ever before. I am hopeful that we are beginning to see changes.
Our deep concern for human rights in North Korea and for the well-being of the North Korean people reflects the American commitment to the rule of law and respect for individual rights. Our country was founded on fundamental principles of human rights, and our support for these rights is an essential part of what defines the American people. These are values we share with the peoples of the European Union.
The world will not, and cannot, close its eyes to what is happening in North Korea. Ultimately, we will judge the North not by its words, but by its actions—the concrete steps it takes to address the core concerns of the international community, from its nuclear program to its human rights violations. I believe we are in agreement that the D.P.R.K. must demonstrate respect for human rights in order to fully participate in the international community. Thank you for this invitation to speak with you.
SEC ANNOUNCES FRAUD CHARGES AGAINST FORT LAUDERDALE, FLORIDA-BASED INVESTMENT ADVISORY FIRM
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
01/21/2015 01:15 PM EST
The Securities and Exchange Commission announced fraud charges and an asset freeze against a Fort Lauderdale, Florida-based investment advisory firm, its manager, and three related funds in a scheme that raised more than $17 million since November 2013.
The SEC’s complaint filed in federal court in the Southern District of Florida last week charged Elm Tree Investment Advisors LLC, its founder and manager, Frederic Elm, and Elm Tree Investment Fund LP, Elm Tree “e”Conomy Fund LP, and Elm Tree Motion Opportunity LP. According to the complaint, Elm, formerly known as Frederic Elmaleh, his unregistered investment advisory firm, and the three funds misled investors and used most of the money raised to make Ponzi-like payments to the investors. The complaint alleges that Elm treated the funds as his personal piggy bank, tapping them to buy a $1.75 million home, luxury automobiles, and jewelry, and to cover daily living expenses. Elm’s wife, Amanda Elm, formerly Elmaleh, is named as a relief defendant based on her receipt of investor monies.
"Elm misled investors about how he and his funds would use their money and about how much he charged them in fees," said Eric I. Bustillo, Director of the SEC’s Miami Regional Office. "As a result, Elm was able to wrongfully take millions of dollars from investors without their knowledge."
The SEC's complaint charges Elm, his advisory firm and the Elm Tree funds with violating anti-fraud provisions of federal securities laws and SEC anti-fraud rules. The SEC is seeking relief for investors, including return of allegedly ill-gotten gains, with interest, and financial penalties.
The Honorable William Dimitrouleas on Friday granted the SEC’s request for a temporary restraining order and temporary asset freeze against Elm, his firm, and the three Elm Tree funds. The judge ordered a temporary asset freeze against Amanda Elm and required her and the other defendants to provide accountings. Judge Dimitrouleas also entered an order appointing Grisel Alonso as receiver for Elm Tree Investment Advisors and the Elm Tree funds. A court hearing has been scheduled for January 29.
The SEC's investigation, which is continuing, has been conducted by Katharine E. Zoladz and Mark Dee and supervised by Elisha L. Frank in the Miami Regional Office. Patrick Costello is leading the SEC’s litigation.
01/21/2015 01:15 PM EST
The Securities and Exchange Commission announced fraud charges and an asset freeze against a Fort Lauderdale, Florida-based investment advisory firm, its manager, and three related funds in a scheme that raised more than $17 million since November 2013.
The SEC’s complaint filed in federal court in the Southern District of Florida last week charged Elm Tree Investment Advisors LLC, its founder and manager, Frederic Elm, and Elm Tree Investment Fund LP, Elm Tree “e”Conomy Fund LP, and Elm Tree Motion Opportunity LP. According to the complaint, Elm, formerly known as Frederic Elmaleh, his unregistered investment advisory firm, and the three funds misled investors and used most of the money raised to make Ponzi-like payments to the investors. The complaint alleges that Elm treated the funds as his personal piggy bank, tapping them to buy a $1.75 million home, luxury automobiles, and jewelry, and to cover daily living expenses. Elm’s wife, Amanda Elm, formerly Elmaleh, is named as a relief defendant based on her receipt of investor monies.
"Elm misled investors about how he and his funds would use their money and about how much he charged them in fees," said Eric I. Bustillo, Director of the SEC’s Miami Regional Office. "As a result, Elm was able to wrongfully take millions of dollars from investors without their knowledge."
The SEC's complaint charges Elm, his advisory firm and the Elm Tree funds with violating anti-fraud provisions of federal securities laws and SEC anti-fraud rules. The SEC is seeking relief for investors, including return of allegedly ill-gotten gains, with interest, and financial penalties.
The Honorable William Dimitrouleas on Friday granted the SEC’s request for a temporary restraining order and temporary asset freeze against Elm, his firm, and the three Elm Tree funds. The judge ordered a temporary asset freeze against Amanda Elm and required her and the other defendants to provide accountings. Judge Dimitrouleas also entered an order appointing Grisel Alonso as receiver for Elm Tree Investment Advisors and the Elm Tree funds. A court hearing has been scheduled for January 29.
The SEC's investigation, which is continuing, has been conducted by Katharine E. Zoladz and Mark Dee and supervised by Elisha L. Frank in the Miami Regional Office. Patrick Costello is leading the SEC’s litigation.
Tuesday, January 27, 2015
WHITE HOUSE STATEMENT ON CBO CONFIRMATION REGARDING LOWERED DEFICITS
January 26, 2015
Statement by Principal Deputy Press Secretary Eric Schultz
The estimates released today by CBO once again confirm the progress we’ve made in bringing down deficits and expanding access to healthcare under the Affordable Care Act. Under the President’s leadership, the deficit has already been cut by about two-thirds as a share of the economy, the fastest sustained deficit reduction since World War II.
CBO’s longer-term budget and economic projections confirm the need for Congress to act to strengthen our economy for the middle class while putting our debt and deficits on a sustainable trajectory, including by making the investments that will accelerate economic growth and generate good new jobs for our workers to fill. We look forward to discussing the President’s plan to bring middle class economics into the 21st Century and finish the job of putting our Nation on a sustainable fiscal path in more detail when the President’s FY 2016 Budget is released on Monday, February 2.
Statement by Principal Deputy Press Secretary Eric Schultz
The estimates released today by CBO once again confirm the progress we’ve made in bringing down deficits and expanding access to healthcare under the Affordable Care Act. Under the President’s leadership, the deficit has already been cut by about two-thirds as a share of the economy, the fastest sustained deficit reduction since World War II.
CBO’s longer-term budget and economic projections confirm the need for Congress to act to strengthen our economy for the middle class while putting our debt and deficits on a sustainable trajectory, including by making the investments that will accelerate economic growth and generate good new jobs for our workers to fill. We look forward to discussing the President’s plan to bring middle class economics into the 21st Century and finish the job of putting our Nation on a sustainable fiscal path in more detail when the President’s FY 2016 Budget is released on Monday, February 2.
AG HOLDER ANNOUNCES CHARGES BROUGHT AGAINST MEMBERS OF SPY RING IN NEW YORK CITY
FROM: U.S. JUSTICE DEPARTMENT
Monday, January 26, 2015
Attorney General Holder Announces Charges Against Russian Spy Ring in New York City
Spy Ring Attempted to Collect Economic Intelligence and Recruit New York City Residents as Intelligence Sources
Evgeny Buryakov, aka “Zhenya,” Worked Under “Non-Official Cover” as a Bank Employee in Manhattan
Attorney General Eric Holder, Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara for the Southern District of New York and Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division announced charges today against Evgeny Buryakov, aka “Zhenya,” Igor Sporyshev and Victor Podobnyy in connection with Buryakov’s service as a covert intelligence agent on behalf of the Russian Federation (Russia) in New York City, without notifying the U.S. Attorney General of Buryakov’s status as an agent of Russia, as required by federal law. Buryakov was placed under arrest earlier today in Bronx, New York, and is scheduled to appear before U.S. Magistrate Judge Sarah Netburn in federal court in Manhattan later today. Sporyshev and Podobnyy no longer reside in the United States and have not been arrested. By virtue of their prior positions in the United States on behalf of Russia, both of them were protected by diplomatic immunity from arrest and prosecution while in the United States.
“These charges demonstrate our firm commitment to combating attempts by covert agents to illegally gather intelligence and recruit spies within the United States,” said Attorney General Holder. “We will use every tool at our disposal to identify and hold accountable foreign agents operating inside this country – no matter how deep their cover. I want to thank the dedicated men and women of the FBI’s Counterintelligence Division and New York Field Office, the National Security Division’s Counterespionage Section and the U.S. Attorney’s Office for the Southern District of New York for their skilled handling of this complex and highly sensitive matter.”
“The attempt by foreign nations to illegally gather economic and other intelligence information in the United States through covert agents is a direct threat to the national security of the United States, and it exemplifies why counterespionage is a top priority of the National Security Division,” said Assistant Attorney General Carlin. “I want to thank the FBI’s New York Field Office and Counterintelligence Division as well as the U.S. Attorney’s Office for the Southern District of New York for their continued effort to conduct these highly complex and sensitive counterespionage investigations and prosecutions, and for their continued close partnership with the National Security Division and the Counterespionage Section.”
“Following our previous prosecution with the FBI of Russian spies, who were expelled from the United States in 2010 when their plan to infiltrate upper levels of U.S. business and government was revealed, the arrest of Evgeny Buryakov and the charges against him and his co-defendants make clear that – more than two decades after the presumptive end of the Cold War – Russian spies continue to seek to operate in our midst under cover of secrecy,” said U.S. Attorney Bharara. “Indeed, the presence of a Russian banker in New York would in itself hardly draw attention today, which is why these alleged spies may have thought Buryakov would blend in. What they could not do without drawing the attention of the FBI was engage in espionage. New York City may be more hospitable to Russian businessmen than during the Cold War, but my office and the FBI remain vigilant to the illegal intelligence-gathering activities of other nations.”
“This investigation is one of many that highlight the determined and prolific efforts by foreign governments to target Americans for the purposes of collecting intelligence and stealing secrets,” Assistant Director Coleman. “This case is especially egregious as it demonstrates the actions of a foreign intelligence service to integrate a covert intelligence agent into American society under the cover of an employee in the financial sector. Espionage is as pervasive today as it has even been, and FBI counterintelligence teams will continue to aggressively investigate and expose hostile foreign intelligence activities conducted on U.S. soil.”
According to the complaint unsealed in Manhattan federal court today:
Buryakov worked in the United States as an agent of Russia’s foreign intelligence agency, known as the SVR. Buryakov operated under “non-official cover,” meaning he entered and remained in the United States as a private citizen, posing as an employee in the Manhattan office of a Russian bank. SVR agents operating under such non-official cover – sometimes referred to as NOCs – typically are subject to less scrutiny by the host government, and, in many cases, are never identified as intelligence agents by the host government. As a result, a NOC is an extremely valuable intelligence asset for the SVR.
Federal law prohibits individuals from acting as agents of foreign governments within the United States without prior notification to the U.S. Attorney General. Department of Justice records indicate that Buryakov has never notified the U.S. Attorney General that he is, in fact, an agent of Russia.
Sporyshev and Podobnyy are also SVR agents who worked in the United States to gather intelligence on behalf of Russia by posing as official representatives of Russia. From Nov. 22, 2010, to Nov. 21, 2014, Sporyshev served as a trade representative of the Russian Federation in New York. From Dec. 13, 2012, to Sept. 12, 2013, Podobnyy served as an attaché to the Permanent Mission of the Russian Federation to the United Nations. Based on their official government postings on behalf of Russia, Sporyshev and Podobnyy are exempt from notifying the U.S. Attorney General of the true nature of their work. However, that exemption does not permit them to conspire with, or aid and abet, Buryakov in his work as an unregistered agent of Russia operating within the United States.
The intelligence-gathering efforts of Sporyshev and Podobnyy included, among other things, attempting to recruit New York City residents as intelligence sources for Russia; tasking Buryakov to gather intelligence; and transmitting intelligence reports prepared by Buryakov back to SVR headquarters in Moscow. Specifically, during the course of the charged offenses, Sporyshev was responsible for relaying assignments from the SVR to Buryakov, and Sporyshev and Podobnyy were responsible for analyzing and reporting back to the SVR about the fruits of Buryakov’s intelligence-gathering efforts.
The directives from the SVR to Buryakov, Sporyshev and Podobnyy, as well as to other covert SVR agents acting within the United States, included requests to gather intelligence on, among other subjects, potential U.S. sanctions against Russian banks and the United States’ efforts to develop alternative energy resources.
Clandestine Meetings and Communications
During the course of their work as covert SVR agents in the United States, Buryakov, Sporyshev and Podobnyy regularly met and communicated using clandestine methods and coded messages, in order to exchange intelligence-related information while shielding their associations with one another as SVR agents. These efforts were designed, among other things, to preserve their respective covers as an employee of a bank in Manhattan (Buryakov), a trade representative of the Russian Federation in New York (Sporyshev) and an attaché to the Permanent Mission of the Russian Federation to the United Nations (Podobnyy). In particular, the defendants worked to safeguard Buryakov’s work as a NOC.
Sporyshev and Podobnyy acted as covert intermediaries for Buryakov to communicate with the SVR on intelligence-related matters. As an agent posing as someone without any official ties to the Russian government or the SVR, Buryakov was unable to access the SVR New York Office – which is located within an office maintained by Russia in New York City – without potentially alerting others to his association with the SVR. As such, Buryakov required the assistance of other SVR agents, like Sporyshev and Podobnyy, to exchange communications and information with the SVR through the communications systems located in the SVR New York Office.
From as early as March 2012 through as recently as mid-September 2014, the FBI has conducted physical or electronic surveillance of Buryakov and Sporyshev engaging in over 48 brief meetings, several of which involved Buryakov passing a bag, magazine or slip of paper to Sporyshev. These meetings typically took place outdoors, where the risk of effective surveillance was reduced relative to an indoor location.
These meetings were nearly always preceded by a short telephone call between Buryakov and Sporyshev, during which one of the men typically told the other that he had an item to give to him. Typically, during these telephone calls, which were intercepted by the FBI, the item in question was referred to as some non-specific ticket, book, list or other ordinary item (e.g., umbrella or hat).
Subsequently, at each meeting surveilled by the FBI, Buryakov and Sporyshev met and sometimes exchanged documents or other small items. Notably, despite discussing on approximately 12 occasions the need to meet to transfer “tickets,” Buryakov and Sporyshev, were – other than one occasion where they discussed going to a movie – never observed attending, or discussing in any detail, events that would typically require tickets, such as a sporting event or concert. In fact, Buryakov and Sporyshev used this coded language to signal that they needed to meet, and then met to exchange intelligence information.
Attempts by Sporyshev and Podobnyy to Recruit Intelligence Sources in New York City
In numerous recorded communications, Sporyshev and Podobnyy discussed their attempts to recruit U.S. residents, including several individuals employed by major companies, and several young women with ties to a major university located in New York City (University-1), as intelligence sources for the SVR. On these recordings, the defendants discussed the potential value of these sources and identified particular sources by use of a “source name,” which appears to be a coded name. In addition, during these recordings, Sporyshev and Podobnyy discussed the efforts of other SVR agents to recruit a number of other Russian-origin individuals associated with University-1 as intelligence sources.
For example, Sporyshev and Podobnyy discussed Podobnyy’s efforts to recruit a male working as a consultant in New York City as an intelligence source. During this conversation, Podobnyy explained his source recruitment method, which included cheating, promising favors and then discarding the intelligence source once the relevant information was obtained by the SVR: “This is intelligence method to cheat. . . . You promise a favor for a favor. You get the documents from him and tell him to go [expletive] himself.”
In other recorded conversations, Sporyshev and Podobnyy made clear that they worked for the SVR. For example, on Jan. 31, 2013, Sporyshev and another SVR agent not charged in the complaint (CC-1) had a discussion inside the SVR New York Office about their contracts with the SVR. Sporyshev stated that, “Everyone has a five-year contract,” and explained, in response to CC-1’s question about reimbursement for the travel of SVR agents’ family members, that “travel for military personnel and their families on authorized home leave is paid, and in our, in our SVR, this, the payment for getting to and from the duty station.” In addition, on April 25, 2013, Sporyshev and Podobnyy discussed the use of nontraditional cover for Russian intelligence officers and, in particular, the Illegals program that ended with the arrest of 10 “deep cover” SVR agents in July 2010.
Buryakov’s Intelligence Taskings
Sporyshev was responsible for relaying intelligence assignments from the SVR to Buryakov. The FBI obtained electronic recordings of several conversations relating to such intelligence directives being communicated to and carried out by Buryakov in his position as an SVR agent acting under non-official cover. For example, on May 21, 2013, Sporyshev called Buryakov to ask for Buryakov’s help in formulating questions to be used for intelligence gathering purposes by others associated with a leading Russian state-owned news organization (the News Organization). Buryakov responded by supplying Sporyshev with a particular line of questioning about the New York Stock Exchange for use by the News Organization.
Buryakov’s Receipt of Purported Official U.S. Government Documents
In the summer of 2014, Buryakov met numerous times with a confidential source working for the FBI (CS-1). CS-1 posed as the representative of a wealthy investor looking to develop casinos in Russia. During the course of these meetings, and consistent with his interests as a Russian intelligence agent, Buryakov demonstrated his strong desire to obtain information about subjects far outside the scope of his work as a bank employee. During these meetings, Buryakov also accepted documents that CS-1 claimed he had obtained from a U.S. government agency and which purportedly contained information potentially useful to Russia, including information about U.S. sanctions against Russia.
* * *
Buryakov, 39, Sporyshev, 40, and Podobnyy, 27, are charged on two counts. The first count charges the defendants with participating in a conspiracy for Buryakov to act in the United States as an agent of a foreign government without first notifying the Attorney General, and carries a statutory maximum penalty of five years in prison. The second count charges Buryakov with acting in the United States as an agent of a foreign government without first notifying the Attorney General, and charges Sporyshev and Podobnyy with aiding and abetting that offense. The second count carries a statutory maximum penalty of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
The Attorney General is grateful for the investigative work of the FBI’s Counterintelligence Division.
The prosecution is being handled by Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterespionage Section and Assistant U.S. Attorneys Adam Fee, Ian McGinley and Anna M. Skotko for the Southern District of New York’s Terrorism and International Narcotics Unit.
The charges in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Monday, January 26, 2015
Attorney General Holder Announces Charges Against Russian Spy Ring in New York City
Spy Ring Attempted to Collect Economic Intelligence and Recruit New York City Residents as Intelligence Sources
Evgeny Buryakov, aka “Zhenya,” Worked Under “Non-Official Cover” as a Bank Employee in Manhattan
Attorney General Eric Holder, Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara for the Southern District of New York and Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division announced charges today against Evgeny Buryakov, aka “Zhenya,” Igor Sporyshev and Victor Podobnyy in connection with Buryakov’s service as a covert intelligence agent on behalf of the Russian Federation (Russia) in New York City, without notifying the U.S. Attorney General of Buryakov’s status as an agent of Russia, as required by federal law. Buryakov was placed under arrest earlier today in Bronx, New York, and is scheduled to appear before U.S. Magistrate Judge Sarah Netburn in federal court in Manhattan later today. Sporyshev and Podobnyy no longer reside in the United States and have not been arrested. By virtue of their prior positions in the United States on behalf of Russia, both of them were protected by diplomatic immunity from arrest and prosecution while in the United States.
“These charges demonstrate our firm commitment to combating attempts by covert agents to illegally gather intelligence and recruit spies within the United States,” said Attorney General Holder. “We will use every tool at our disposal to identify and hold accountable foreign agents operating inside this country – no matter how deep their cover. I want to thank the dedicated men and women of the FBI’s Counterintelligence Division and New York Field Office, the National Security Division’s Counterespionage Section and the U.S. Attorney’s Office for the Southern District of New York for their skilled handling of this complex and highly sensitive matter.”
“The attempt by foreign nations to illegally gather economic and other intelligence information in the United States through covert agents is a direct threat to the national security of the United States, and it exemplifies why counterespionage is a top priority of the National Security Division,” said Assistant Attorney General Carlin. “I want to thank the FBI’s New York Field Office and Counterintelligence Division as well as the U.S. Attorney’s Office for the Southern District of New York for their continued effort to conduct these highly complex and sensitive counterespionage investigations and prosecutions, and for their continued close partnership with the National Security Division and the Counterespionage Section.”
“Following our previous prosecution with the FBI of Russian spies, who were expelled from the United States in 2010 when their plan to infiltrate upper levels of U.S. business and government was revealed, the arrest of Evgeny Buryakov and the charges against him and his co-defendants make clear that – more than two decades after the presumptive end of the Cold War – Russian spies continue to seek to operate in our midst under cover of secrecy,” said U.S. Attorney Bharara. “Indeed, the presence of a Russian banker in New York would in itself hardly draw attention today, which is why these alleged spies may have thought Buryakov would blend in. What they could not do without drawing the attention of the FBI was engage in espionage. New York City may be more hospitable to Russian businessmen than during the Cold War, but my office and the FBI remain vigilant to the illegal intelligence-gathering activities of other nations.”
“This investigation is one of many that highlight the determined and prolific efforts by foreign governments to target Americans for the purposes of collecting intelligence and stealing secrets,” Assistant Director Coleman. “This case is especially egregious as it demonstrates the actions of a foreign intelligence service to integrate a covert intelligence agent into American society under the cover of an employee in the financial sector. Espionage is as pervasive today as it has even been, and FBI counterintelligence teams will continue to aggressively investigate and expose hostile foreign intelligence activities conducted on U.S. soil.”
According to the complaint unsealed in Manhattan federal court today:
Buryakov worked in the United States as an agent of Russia’s foreign intelligence agency, known as the SVR. Buryakov operated under “non-official cover,” meaning he entered and remained in the United States as a private citizen, posing as an employee in the Manhattan office of a Russian bank. SVR agents operating under such non-official cover – sometimes referred to as NOCs – typically are subject to less scrutiny by the host government, and, in many cases, are never identified as intelligence agents by the host government. As a result, a NOC is an extremely valuable intelligence asset for the SVR.
Federal law prohibits individuals from acting as agents of foreign governments within the United States without prior notification to the U.S. Attorney General. Department of Justice records indicate that Buryakov has never notified the U.S. Attorney General that he is, in fact, an agent of Russia.
Sporyshev and Podobnyy are also SVR agents who worked in the United States to gather intelligence on behalf of Russia by posing as official representatives of Russia. From Nov. 22, 2010, to Nov. 21, 2014, Sporyshev served as a trade representative of the Russian Federation in New York. From Dec. 13, 2012, to Sept. 12, 2013, Podobnyy served as an attaché to the Permanent Mission of the Russian Federation to the United Nations. Based on their official government postings on behalf of Russia, Sporyshev and Podobnyy are exempt from notifying the U.S. Attorney General of the true nature of their work. However, that exemption does not permit them to conspire with, or aid and abet, Buryakov in his work as an unregistered agent of Russia operating within the United States.
The intelligence-gathering efforts of Sporyshev and Podobnyy included, among other things, attempting to recruit New York City residents as intelligence sources for Russia; tasking Buryakov to gather intelligence; and transmitting intelligence reports prepared by Buryakov back to SVR headquarters in Moscow. Specifically, during the course of the charged offenses, Sporyshev was responsible for relaying assignments from the SVR to Buryakov, and Sporyshev and Podobnyy were responsible for analyzing and reporting back to the SVR about the fruits of Buryakov’s intelligence-gathering efforts.
The directives from the SVR to Buryakov, Sporyshev and Podobnyy, as well as to other covert SVR agents acting within the United States, included requests to gather intelligence on, among other subjects, potential U.S. sanctions against Russian banks and the United States’ efforts to develop alternative energy resources.
Clandestine Meetings and Communications
During the course of their work as covert SVR agents in the United States, Buryakov, Sporyshev and Podobnyy regularly met and communicated using clandestine methods and coded messages, in order to exchange intelligence-related information while shielding their associations with one another as SVR agents. These efforts were designed, among other things, to preserve their respective covers as an employee of a bank in Manhattan (Buryakov), a trade representative of the Russian Federation in New York (Sporyshev) and an attaché to the Permanent Mission of the Russian Federation to the United Nations (Podobnyy). In particular, the defendants worked to safeguard Buryakov’s work as a NOC.
Sporyshev and Podobnyy acted as covert intermediaries for Buryakov to communicate with the SVR on intelligence-related matters. As an agent posing as someone without any official ties to the Russian government or the SVR, Buryakov was unable to access the SVR New York Office – which is located within an office maintained by Russia in New York City – without potentially alerting others to his association with the SVR. As such, Buryakov required the assistance of other SVR agents, like Sporyshev and Podobnyy, to exchange communications and information with the SVR through the communications systems located in the SVR New York Office.
From as early as March 2012 through as recently as mid-September 2014, the FBI has conducted physical or electronic surveillance of Buryakov and Sporyshev engaging in over 48 brief meetings, several of which involved Buryakov passing a bag, magazine or slip of paper to Sporyshev. These meetings typically took place outdoors, where the risk of effective surveillance was reduced relative to an indoor location.
These meetings were nearly always preceded by a short telephone call between Buryakov and Sporyshev, during which one of the men typically told the other that he had an item to give to him. Typically, during these telephone calls, which were intercepted by the FBI, the item in question was referred to as some non-specific ticket, book, list or other ordinary item (e.g., umbrella or hat).
Subsequently, at each meeting surveilled by the FBI, Buryakov and Sporyshev met and sometimes exchanged documents or other small items. Notably, despite discussing on approximately 12 occasions the need to meet to transfer “tickets,” Buryakov and Sporyshev, were – other than one occasion where they discussed going to a movie – never observed attending, or discussing in any detail, events that would typically require tickets, such as a sporting event or concert. In fact, Buryakov and Sporyshev used this coded language to signal that they needed to meet, and then met to exchange intelligence information.
Attempts by Sporyshev and Podobnyy to Recruit Intelligence Sources in New York City
In numerous recorded communications, Sporyshev and Podobnyy discussed their attempts to recruit U.S. residents, including several individuals employed by major companies, and several young women with ties to a major university located in New York City (University-1), as intelligence sources for the SVR. On these recordings, the defendants discussed the potential value of these sources and identified particular sources by use of a “source name,” which appears to be a coded name. In addition, during these recordings, Sporyshev and Podobnyy discussed the efforts of other SVR agents to recruit a number of other Russian-origin individuals associated with University-1 as intelligence sources.
For example, Sporyshev and Podobnyy discussed Podobnyy’s efforts to recruit a male working as a consultant in New York City as an intelligence source. During this conversation, Podobnyy explained his source recruitment method, which included cheating, promising favors and then discarding the intelligence source once the relevant information was obtained by the SVR: “This is intelligence method to cheat. . . . You promise a favor for a favor. You get the documents from him and tell him to go [expletive] himself.”
In other recorded conversations, Sporyshev and Podobnyy made clear that they worked for the SVR. For example, on Jan. 31, 2013, Sporyshev and another SVR agent not charged in the complaint (CC-1) had a discussion inside the SVR New York Office about their contracts with the SVR. Sporyshev stated that, “Everyone has a five-year contract,” and explained, in response to CC-1’s question about reimbursement for the travel of SVR agents’ family members, that “travel for military personnel and their families on authorized home leave is paid, and in our, in our SVR, this, the payment for getting to and from the duty station.” In addition, on April 25, 2013, Sporyshev and Podobnyy discussed the use of nontraditional cover for Russian intelligence officers and, in particular, the Illegals program that ended with the arrest of 10 “deep cover” SVR agents in July 2010.
Buryakov’s Intelligence Taskings
Sporyshev was responsible for relaying intelligence assignments from the SVR to Buryakov. The FBI obtained electronic recordings of several conversations relating to such intelligence directives being communicated to and carried out by Buryakov in his position as an SVR agent acting under non-official cover. For example, on May 21, 2013, Sporyshev called Buryakov to ask for Buryakov’s help in formulating questions to be used for intelligence gathering purposes by others associated with a leading Russian state-owned news organization (the News Organization). Buryakov responded by supplying Sporyshev with a particular line of questioning about the New York Stock Exchange for use by the News Organization.
Buryakov’s Receipt of Purported Official U.S. Government Documents
In the summer of 2014, Buryakov met numerous times with a confidential source working for the FBI (CS-1). CS-1 posed as the representative of a wealthy investor looking to develop casinos in Russia. During the course of these meetings, and consistent with his interests as a Russian intelligence agent, Buryakov demonstrated his strong desire to obtain information about subjects far outside the scope of his work as a bank employee. During these meetings, Buryakov also accepted documents that CS-1 claimed he had obtained from a U.S. government agency and which purportedly contained information potentially useful to Russia, including information about U.S. sanctions against Russia.
* * *
Buryakov, 39, Sporyshev, 40, and Podobnyy, 27, are charged on two counts. The first count charges the defendants with participating in a conspiracy for Buryakov to act in the United States as an agent of a foreign government without first notifying the Attorney General, and carries a statutory maximum penalty of five years in prison. The second count charges Buryakov with acting in the United States as an agent of a foreign government without first notifying the Attorney General, and charges Sporyshev and Podobnyy with aiding and abetting that offense. The second count carries a statutory maximum penalty of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
The Attorney General is grateful for the investigative work of the FBI’s Counterintelligence Division.
The prosecution is being handled by Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterespionage Section and Assistant U.S. Attorneys Adam Fee, Ian McGinley and Anna M. Skotko for the Southern District of New York’s Terrorism and International Narcotics Unit.
The charges in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
SECRETARY HAGEL APPLAUDS DEFENSE AGREEMENTS BETWEEN U.S. AND INDIA
FROM: U.S. STATE DEPARTMENT
Hagel Praises New Defense Cooperation Agreements With India
DoD News, Defense Media Activity
WASHINGTON, Jan. 25, 2015 –
Defense Secretary Chuck Hagel issued a statement today applauding agreements on defense cooperation between the United States and India, announced by President Barack Obama and Indian Prime Minister Narendra Modi.
Hagel's statement reads as follows:
"Today, on his historic visit to India, President Obama and Prime Minister Modi announced new, ground-breaking agreements on defense cooperation between India and the United States that promise to open a new chapter in our defense relationship and mark an important milestone in the U.S.-India strategic partnership.
"By finalizing the renewal of our 10-year framework for the U.S.-India Defense Relationship, we will continue to build on the growing momentum in our defense cooperation over the last decade. This renewed framework will support stronger military-to-military engagement, including deeper maritime cooperation and increased opportunities in technology and trade.
"By establishing a new military education partnership, we will help shape the next generation of military leaders in both our nations, fostering relationships that will draw our defense establishments closer together for years to come.
"And by agreeing under the Defense Technology and Trade Initiative (DTTI) to focus on four 'pathfinder' projects; form a working group to explore aircraft carrier technology sharing and design; and explore possible cooperation on development of jet engine technology, we will begin to realize the enormous potential of the U.S.-India defense industrial partnership. We have further strengthened this partnership with an agreement that will allow us to continue science and technology collaboration for the next 15 years.
"Taken together, the president's announcements signal a new depth and sophistication in our defense and security cooperation, ensuring that it continues to be one of the strongest pillars of our nations' broad strategic partnership - a partnership that will help forge security and stability in Asia and across the globe."
Hagel Praises New Defense Cooperation Agreements With India
DoD News, Defense Media Activity
WASHINGTON, Jan. 25, 2015 –
Defense Secretary Chuck Hagel issued a statement today applauding agreements on defense cooperation between the United States and India, announced by President Barack Obama and Indian Prime Minister Narendra Modi.
Hagel's statement reads as follows:
"Today, on his historic visit to India, President Obama and Prime Minister Modi announced new, ground-breaking agreements on defense cooperation between India and the United States that promise to open a new chapter in our defense relationship and mark an important milestone in the U.S.-India strategic partnership.
"By finalizing the renewal of our 10-year framework for the U.S.-India Defense Relationship, we will continue to build on the growing momentum in our defense cooperation over the last decade. This renewed framework will support stronger military-to-military engagement, including deeper maritime cooperation and increased opportunities in technology and trade.
"By establishing a new military education partnership, we will help shape the next generation of military leaders in both our nations, fostering relationships that will draw our defense establishments closer together for years to come.
"And by agreeing under the Defense Technology and Trade Initiative (DTTI) to focus on four 'pathfinder' projects; form a working group to explore aircraft carrier technology sharing and design; and explore possible cooperation on development of jet engine technology, we will begin to realize the enormous potential of the U.S.-India defense industrial partnership. We have further strengthened this partnership with an agreement that will allow us to continue science and technology collaboration for the next 15 years.
"Taken together, the president's announcements signal a new depth and sophistication in our defense and security cooperation, ensuring that it continues to be one of the strongest pillars of our nations' broad strategic partnership - a partnership that will help forge security and stability in Asia and across the globe."
ALLEGED TERRORIST AND MURDERER OF FIVE SOLDIERS, EXTRADITED TO U.S.
FROM: U.S. JUSTICE DEPARTMENT
Friday, January 23, 2015
Alleged Terrorist, Charged with Murder of Five American Soldiers, Extradited to United States
Defendant Allegedly Aided Suicide Bomb Attack on U.S. Base in Iraq
U.S. Attorney Loretta E. Lynch for the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director-in-Charge George Venizelos of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department announced that tomorrow, Jan. 24, 2015, Faruq Khalil Muhammed ‘Isa, aka “Faruq Khalil Muhammad ‘Isa,” “Sayfildin Tahir Sharif,” and “Tahir Sharif Sayfildin,” will have his initial appearance at the federal courthouse in Brooklyn, New York, on charges of conspiring to kill Americans abroad; and providing material support to a terrorist conspiracy to kill Americans abroad. ‘Isa was extradited to the United States from Canada.
According to court documents, the defendant is charged in connection with his support for a multinational terrorist network that conducted multiple suicide bombings in Iraq. According to the complaint, filed on Jan. 14, 2011, in the Eastern District of New York, the defendant assisted in orchestrating an attack on the United States Military’s Forward Operating Base Marez (FOB Marez) in Mosul, Iraq, on April 10, 2009. A truck laden with explosives drove to the gate of FOB Marez and exchanged fire with Iraqi police officers guarding the base and then with an American convoy exiting the base. The truck detonated alongside the last vehicle in the U.S. convoy, leaving a 60-foot crater in the ground. Five American soldiers were killed in the blast. They are: Staff Sergeant Gary L. Woods, 24, of Lebanon Junction, Kentucky; Sergeant First Class Bryan E. Hall, 32, of Elk Grove, California; Sergeant Edward W. Forrest Jr., 25, of St. Louis, Missouri; Corporal Jason G. Pautsch, 20, of Davenport, Iowa; and Army Private First Class Bryce E. Gaultier, 22, from Cyprus, California.
“Today’s extradition demonstrates to those who orchestrate violence against our citizens and our soldiers that there is no corner of the globe from which they can hide from the long reach of the law,” said U.S. Attorney Lynch. “We will continue to use every available means to bring to justice those who are responsible for the deaths of American servicemen and women who paid the ultimate price in their defense of this nation.”
“Faruq Khalil Muhammed ‘Isa is alleged to have helped orchestrate an attack that killed five U.S. soldiers at the Forward Operating Base Marez in Mosul, Iraq, in 2009,” said Assistant Attorney General Carlin. “The families of these five Americans and all who have lost loved-ones to acts of terrorism should know that we will never cease seeking to hold terrorists accountable for their acts. I want to thank the many agents, analysts and prosecutors who are responsible for this matter.”
“As alleged, Faruq Khalil Muhammad ‘Isa was involved in the most callous act: a suicide bombing murdering U.S. soldiers in Iraq,” said Assistant Director in Charge Venizelos. “Our memory is long, and our reach is longer. Today we hope to bring some measure of justice to the families of those five servicemen who sacrificed their lives in defense of this nation.”
“I want to commend the United States Attorney Loretta Lynch and her team for working closely with the NYPD and the FBI to extradite this individual who is allegedly responsible for the death of soldiers sworn to protect and serve,” said Commissioner Bratton. “We hope today’s extradition will bring some closure to the families.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Alexander Solomon and Peter Baldwin, with assistance provided by the Justice Department’s Counterterrorism Section and Office of International Affairs. The department extends its grateful appreciation to the Canadian government for its assistance and cooperation in the extradition.
Friday, January 23, 2015
Alleged Terrorist, Charged with Murder of Five American Soldiers, Extradited to United States
Defendant Allegedly Aided Suicide Bomb Attack on U.S. Base in Iraq
U.S. Attorney Loretta E. Lynch for the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director-in-Charge George Venizelos of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department announced that tomorrow, Jan. 24, 2015, Faruq Khalil Muhammed ‘Isa, aka “Faruq Khalil Muhammad ‘Isa,” “Sayfildin Tahir Sharif,” and “Tahir Sharif Sayfildin,” will have his initial appearance at the federal courthouse in Brooklyn, New York, on charges of conspiring to kill Americans abroad; and providing material support to a terrorist conspiracy to kill Americans abroad. ‘Isa was extradited to the United States from Canada.
According to court documents, the defendant is charged in connection with his support for a multinational terrorist network that conducted multiple suicide bombings in Iraq. According to the complaint, filed on Jan. 14, 2011, in the Eastern District of New York, the defendant assisted in orchestrating an attack on the United States Military’s Forward Operating Base Marez (FOB Marez) in Mosul, Iraq, on April 10, 2009. A truck laden with explosives drove to the gate of FOB Marez and exchanged fire with Iraqi police officers guarding the base and then with an American convoy exiting the base. The truck detonated alongside the last vehicle in the U.S. convoy, leaving a 60-foot crater in the ground. Five American soldiers were killed in the blast. They are: Staff Sergeant Gary L. Woods, 24, of Lebanon Junction, Kentucky; Sergeant First Class Bryan E. Hall, 32, of Elk Grove, California; Sergeant Edward W. Forrest Jr., 25, of St. Louis, Missouri; Corporal Jason G. Pautsch, 20, of Davenport, Iowa; and Army Private First Class Bryce E. Gaultier, 22, from Cyprus, California.
“Today’s extradition demonstrates to those who orchestrate violence against our citizens and our soldiers that there is no corner of the globe from which they can hide from the long reach of the law,” said U.S. Attorney Lynch. “We will continue to use every available means to bring to justice those who are responsible for the deaths of American servicemen and women who paid the ultimate price in their defense of this nation.”
“Faruq Khalil Muhammed ‘Isa is alleged to have helped orchestrate an attack that killed five U.S. soldiers at the Forward Operating Base Marez in Mosul, Iraq, in 2009,” said Assistant Attorney General Carlin. “The families of these five Americans and all who have lost loved-ones to acts of terrorism should know that we will never cease seeking to hold terrorists accountable for their acts. I want to thank the many agents, analysts and prosecutors who are responsible for this matter.”
“As alleged, Faruq Khalil Muhammad ‘Isa was involved in the most callous act: a suicide bombing murdering U.S. soldiers in Iraq,” said Assistant Director in Charge Venizelos. “Our memory is long, and our reach is longer. Today we hope to bring some measure of justice to the families of those five servicemen who sacrificed their lives in defense of this nation.”
“I want to commend the United States Attorney Loretta Lynch and her team for working closely with the NYPD and the FBI to extradite this individual who is allegedly responsible for the death of soldiers sworn to protect and serve,” said Commissioner Bratton. “We hope today’s extradition will bring some closure to the families.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Alexander Solomon and Peter Baldwin, with assistance provided by the Justice Department’s Counterterrorism Section and Office of International Affairs. The department extends its grateful appreciation to the Canadian government for its assistance and cooperation in the extradition.
13 FISHERMEN CHARGED WITH THE ILLEGAL HARVEST AND SALE OF ATLANTIC STRIPED BASS
FROM: U.S. JUSTICE DEPARTMENT
Office of Public Affairs
FOR IMMEDIATE RELEASE
Wednesday, January 21, 2015
Thirteen Commercial Fishermen Charged in North Carolina with Illegally Harvesting and Selling Atlantic Striped Bass
Thirteen commercial fishermen in North Carolina and Georgia have been charged in federal court in Raleigh, North Carolina, for their role in the illegal harvest and sale and false reporting of approximately 90,000 pounds of Atlantic striped bass from federal waters off the coast of North Carolina during 2009 and 2010, the Justice Department announced today. The average retail value of the illegally harvested striped bass is approximately $1.1 million.
This investigation began as a result of the U.S. Coast Guard boarding of the fishing vessel Lady Samaira in February 2010, based on a complaint that multiple vessels were fishing Striped Bass illegally. The individuals have been charged with violating the Lacey Act, which is a federal law that prohibits individuals from transporting, selling or buying fish and wildlife harvested illegally. Additionally, 11 of these fishermen also have been charged with filing false reports in connection with the illegally harvested fish. One of the fishermen is also charged with obstruction of a proceeding before a federal agency. Specifically, the indictments allege that the commercial fishermen transported and sold Atlantic striped bass, knowing that they were unlawfully harvested from federal waters off the coast of North Carolina. In an effort to hide their illegal fishing activities, these fishermen falsely reported harvesting these fish from state waters, where it would have been legal.
“The illegal poaching of striped bass by commercial fishermen can have a huge collective impact on the fish resource and has the potential to devastate the future livelihoods of law abiding commercial fishermen,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The vast majority of fishermen do respect the law and carefully monitor their harvest to ensure they stay within the well-researched limits. Those who deliberately break the law will be prosecuted.”
“The Atlantic Striped Bass fishery is extremely important to the economy of the State of North Carolina as well as our sister States along the Atlantic seaboard, and it represents a success in species recovery thanks to conservation, management, and law-abiding fishermen,” said U.S. Attorney for the Eastern District of North Carolina Thomas G. Walker. “Illegal harvesting of this protected species and submitting false reports to federal agencies undermine those efforts and adversely impact our entire coastal communities.”
All of the defendants are licensed by the state of North Carolina and the National Oceanic and Atmospheric Administration (NOAA) to fish in state waters only for striped bass.
In early spring each year, wild coastal striped bass, Morone saxatilis, known regionally as “rockfish,” “striper” or “rock,” enter the estuary or river where they were born to spawn and then return to ocean waters to live, migrating along the coastline. They may live up to 30 years and reach 50 pounds or more. The population of coastal Atlantic striped bass depends heavily upon the capability of older, larger, female striped bass to successfully reproduce.
Under federal law, Atlantic striped bass may not be harvested from or possessed in federal waters. This ban on fishing for Atlantic striped bass in federal waters has been in place since 1990 due to drastic declines of the stock that occurred in the 1970’s. North Carolina allows fishermen to harvest fish from state waters, but often limits fishermen to no more than 100 fish per fishing trip. Commercial fishermen are required to report on a fishing vessel trip report the fish harvested from state waters; that report is then submitted to NOAA’s National Marine Fisheries Service (NMFS). NOAA uses the information on this report to assess the fishery and its sustainability throughout the eastern seaboard.
According to the Atlantic Marine Fisheries Commission, “striped bass have formed the basis of one of the most important fisheries on the Atlantic coast for centuries. Early records recount their abundance as being so great at one time they were used to fertilize fields. However, overfishing and poor environmental conditions lead to the collapse of the fishery in the 1980s.”
The North Carolina Division of Marine Fisheries, along with other states, has reduced, twenty-five percent, the catch limits for the 2015 striped bass commercial fishing season in the Atlantic Ocean and Albemarle Sound/Roanoke River areas, citing a decline in stocks. The division cited 2013 surveys revealing that the female spawning stock has been steadily declining. The reduction applies to all commercial and recreational striped bass fishing for all the eastern coastal states.
A criminal indictment is not a finding of guilt. An individual charged by criminal indictment is presumed innocent unless and until proven guilty in a court of law.
The Lacey Act makes it unlawful for a person to transport or sell fish that were taken in violation of any law or regulation of the United States and carries a maximum penalty of five years in prison and a fine of up to $250,000, plus the potential forfeiture of the vessels and vehicles used in committing the offense.
The charges are a result of the investigation by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. These cases are being prosecuted primarily by Trial Attorney Shennie Patel of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section and U.S. Attorney Banumathi Rangarajan.
Office of Public Affairs
FOR IMMEDIATE RELEASE
Wednesday, January 21, 2015
Thirteen Commercial Fishermen Charged in North Carolina with Illegally Harvesting and Selling Atlantic Striped Bass
Thirteen commercial fishermen in North Carolina and Georgia have been charged in federal court in Raleigh, North Carolina, for their role in the illegal harvest and sale and false reporting of approximately 90,000 pounds of Atlantic striped bass from federal waters off the coast of North Carolina during 2009 and 2010, the Justice Department announced today. The average retail value of the illegally harvested striped bass is approximately $1.1 million.
This investigation began as a result of the U.S. Coast Guard boarding of the fishing vessel Lady Samaira in February 2010, based on a complaint that multiple vessels were fishing Striped Bass illegally. The individuals have been charged with violating the Lacey Act, which is a federal law that prohibits individuals from transporting, selling or buying fish and wildlife harvested illegally. Additionally, 11 of these fishermen also have been charged with filing false reports in connection with the illegally harvested fish. One of the fishermen is also charged with obstruction of a proceeding before a federal agency. Specifically, the indictments allege that the commercial fishermen transported and sold Atlantic striped bass, knowing that they were unlawfully harvested from federal waters off the coast of North Carolina. In an effort to hide their illegal fishing activities, these fishermen falsely reported harvesting these fish from state waters, where it would have been legal.
“The illegal poaching of striped bass by commercial fishermen can have a huge collective impact on the fish resource and has the potential to devastate the future livelihoods of law abiding commercial fishermen,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The vast majority of fishermen do respect the law and carefully monitor their harvest to ensure they stay within the well-researched limits. Those who deliberately break the law will be prosecuted.”
“The Atlantic Striped Bass fishery is extremely important to the economy of the State of North Carolina as well as our sister States along the Atlantic seaboard, and it represents a success in species recovery thanks to conservation, management, and law-abiding fishermen,” said U.S. Attorney for the Eastern District of North Carolina Thomas G. Walker. “Illegal harvesting of this protected species and submitting false reports to federal agencies undermine those efforts and adversely impact our entire coastal communities.”
All of the defendants are licensed by the state of North Carolina and the National Oceanic and Atmospheric Administration (NOAA) to fish in state waters only for striped bass.
In early spring each year, wild coastal striped bass, Morone saxatilis, known regionally as “rockfish,” “striper” or “rock,” enter the estuary or river where they were born to spawn and then return to ocean waters to live, migrating along the coastline. They may live up to 30 years and reach 50 pounds or more. The population of coastal Atlantic striped bass depends heavily upon the capability of older, larger, female striped bass to successfully reproduce.
Under federal law, Atlantic striped bass may not be harvested from or possessed in federal waters. This ban on fishing for Atlantic striped bass in federal waters has been in place since 1990 due to drastic declines of the stock that occurred in the 1970’s. North Carolina allows fishermen to harvest fish from state waters, but often limits fishermen to no more than 100 fish per fishing trip. Commercial fishermen are required to report on a fishing vessel trip report the fish harvested from state waters; that report is then submitted to NOAA’s National Marine Fisheries Service (NMFS). NOAA uses the information on this report to assess the fishery and its sustainability throughout the eastern seaboard.
According to the Atlantic Marine Fisheries Commission, “striped bass have formed the basis of one of the most important fisheries on the Atlantic coast for centuries. Early records recount their abundance as being so great at one time they were used to fertilize fields. However, overfishing and poor environmental conditions lead to the collapse of the fishery in the 1980s.”
The North Carolina Division of Marine Fisheries, along with other states, has reduced, twenty-five percent, the catch limits for the 2015 striped bass commercial fishing season in the Atlantic Ocean and Albemarle Sound/Roanoke River areas, citing a decline in stocks. The division cited 2013 surveys revealing that the female spawning stock has been steadily declining. The reduction applies to all commercial and recreational striped bass fishing for all the eastern coastal states.
A criminal indictment is not a finding of guilt. An individual charged by criminal indictment is presumed innocent unless and until proven guilty in a court of law.
The Lacey Act makes it unlawful for a person to transport or sell fish that were taken in violation of any law or regulation of the United States and carries a maximum penalty of five years in prison and a fine of up to $250,000, plus the potential forfeiture of the vessels and vehicles used in committing the offense.
The charges are a result of the investigation by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. These cases are being prosecuted primarily by Trial Attorney Shennie Patel of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section and U.S. Attorney Banumathi Rangarajan.
AMBASSADOR SAMANTHA POWER'S REMARKS IN PORT-AU-PRINCE, HATI
FROM: U.S. STATE DEPARTMENT
Remarks at a Press Conference at the End of the Visit of the Security Council to Haiti
Samantha Power
U.S. Permanent Representative to the United Nations
Port-au-Prince, Haiti
January 25, 2015
My name is Samantha Power and I am the American Ambassador to the United Nations and co-lead, with my colleague Cristian from Chile, of this trip. We, the very diverse members of the Security Council, had a very informative and productive visit to Haiti. We will have time in a minute for questions, but I will just share with you a few of the key messages that we heard from the wide array of actors with whom we met.
We are here as a Council, as Cristian has said, to support the Haitian people, not to pick sides, but to come away with a better understanding of how the international community can help Haiti.
We saw, on the one hand, great signs of progress, whether with regard to health or education or the removal of rubble or the resettlement of individuals displaced in the earthquake. But the vast majority of the individuals with whom we met also stressed, alongside this progress, the delicacy and fragility of an election year.
We heard from a large number of actors about the importance of strong checks and balances on governmental power, wherever it is exercised. And the Council stressed in all of our meetings, both with the President and his ministers, and with Senators and opposition parties, our strong support for the strengthening of checks and balances at a time when the Parliament is not performing its traditional role.
It is clear that leadership will have to be exercised in Haiti in a very inclusive and consultative manner in order to maintain the legitimacy of the state.
We heard a great deal about the importance of democratic expression by the people, but also we underscored how important it is that that democratic expression be done in a non-violent manner.
We came away even more convinced about the importance of compromise. Not everyone in Haiti will be able to get exactly what he or she wants in the coming days or in the coming years, but it will be critical that all actors put Haiti first, and put the overall welfare of Haiti before one’s own particular interests.
And two more points and then we’ll open it up for questions. We heard over and over again a message that we ourselves delivered, which is how critical it is that elections be held as soon as is feasible in a fair, transparent and inclusive manner.
People who have grievances or who have complaints about the past can invest their energies constructively in the election process. And we urge those who have complaints and concerns about recent events or about how Haiti got to this moment, to channel their energies into ensuring fair, transparent and inclusive elections.
And finally, we heard consistently about the importance of security as a foundation for Haiti’s democratic development. And here we witnessed today some of the work of the Haitian National Police, who have not only increased their numbers in the last several years, but have also deepened the quality of their policing. And the Security Council expressed its intention to stand in full support for the HNP and for the work, of course, that MINUSTAH is doing in support of the HNP, because the Haitian Police are the future of security in Haiti.
And we heard from government, from civil society, and from most of the opposition parties, great support and appreciation for the role that MINUSTAH has played in helping Haiti, and supporting Haiti through thick and thin and through significant ups and downs in recent years. And although we are getting on an airplane to go back to New York here in a few minutes, the Security Council is going to remain extremely vigilant over events in Haiti, and we encourage all parties in Haiti to get an election road map in place as soon as possible and to govern, and to perform the role of citizen, in a manner that respects and advances the rights of the Haitian people. And with that I think we are here to take your questions.
Remarks at a Press Conference at the End of the Visit of the Security Council to Haiti
Samantha Power
U.S. Permanent Representative to the United Nations
Port-au-Prince, Haiti
January 25, 2015
My name is Samantha Power and I am the American Ambassador to the United Nations and co-lead, with my colleague Cristian from Chile, of this trip. We, the very diverse members of the Security Council, had a very informative and productive visit to Haiti. We will have time in a minute for questions, but I will just share with you a few of the key messages that we heard from the wide array of actors with whom we met.
We are here as a Council, as Cristian has said, to support the Haitian people, not to pick sides, but to come away with a better understanding of how the international community can help Haiti.
We saw, on the one hand, great signs of progress, whether with regard to health or education or the removal of rubble or the resettlement of individuals displaced in the earthquake. But the vast majority of the individuals with whom we met also stressed, alongside this progress, the delicacy and fragility of an election year.
We heard from a large number of actors about the importance of strong checks and balances on governmental power, wherever it is exercised. And the Council stressed in all of our meetings, both with the President and his ministers, and with Senators and opposition parties, our strong support for the strengthening of checks and balances at a time when the Parliament is not performing its traditional role.
It is clear that leadership will have to be exercised in Haiti in a very inclusive and consultative manner in order to maintain the legitimacy of the state.
We heard a great deal about the importance of democratic expression by the people, but also we underscored how important it is that that democratic expression be done in a non-violent manner.
We came away even more convinced about the importance of compromise. Not everyone in Haiti will be able to get exactly what he or she wants in the coming days or in the coming years, but it will be critical that all actors put Haiti first, and put the overall welfare of Haiti before one’s own particular interests.
And two more points and then we’ll open it up for questions. We heard over and over again a message that we ourselves delivered, which is how critical it is that elections be held as soon as is feasible in a fair, transparent and inclusive manner.
People who have grievances or who have complaints about the past can invest their energies constructively in the election process. And we urge those who have complaints and concerns about recent events or about how Haiti got to this moment, to channel their energies into ensuring fair, transparent and inclusive elections.
And finally, we heard consistently about the importance of security as a foundation for Haiti’s democratic development. And here we witnessed today some of the work of the Haitian National Police, who have not only increased their numbers in the last several years, but have also deepened the quality of their policing. And the Security Council expressed its intention to stand in full support for the HNP and for the work, of course, that MINUSTAH is doing in support of the HNP, because the Haitian Police are the future of security in Haiti.
And we heard from government, from civil society, and from most of the opposition parties, great support and appreciation for the role that MINUSTAH has played in helping Haiti, and supporting Haiti through thick and thin and through significant ups and downs in recent years. And although we are getting on an airplane to go back to New York here in a few minutes, the Security Council is going to remain extremely vigilant over events in Haiti, and we encourage all parties in Haiti to get an election road map in place as soon as possible and to govern, and to perform the role of citizen, in a manner that respects and advances the rights of the Haitian people. And with that I think we are here to take your questions.
U.S. AMBASSADOR POWER'S REMARKS IN PORT-AU PRINCE, HAITI
FROM: U.S. STATE DEPARTMENT
Samantha Power
U.S. Permanent Representative to the United Nations
Port-au-Prince, Haiti
January 23, 2015
Thank you. I am Samantha Power, the American Ambassador to the United Nations, and co-lead of this trip with my colleague, the Chilean Ambassador, Cristián Barros.
Each of the 15 individuals standing here have the privilege of representing countries on the UN Security Council and the privilege, in that role, of trying to support the Haitian people in their journey toward stability, prosperity and democracy.
The United Nations, as a community of nations and as MINUSTAH, and the 15 counties here each have stood with the Haitian people through good times and bad times.
Haiti has experienced many challenges throughout its long and rich and vibrant history. What always defines the Haitian people’s response is the spirit of resilience and determination.
We have just had a very important meeting with President Martelly and his Prime Minister and his Cabinet. Over the next two days we will meet with civil society, with opposition parties, with senators and with Haitians outside of Port-au-Prince in Cap-Haitien and here as well, in the capital.
In our meeting with President Martelly, we expressed our collective appreciation for his efforts before the Parliament lapsed to try to (inaudible) consensus in order to maintain the functioning of the Parliament and to pass electoral legislation.
This Council also expressed to President Martelly and his ministers the same disappointment that the Haitian people probably feel, that these efforts to seek consensus and to find a path forward did not prevent the Parliament from lapsing and did not produce the necessary compromise.
We support the President in his efforts to find a solution to the political stalemate and his efforts to ensure fair, transparent and inclusive elections in 2015.
Haiti has made tremendous progress in recent years in terms of health and education, and the President described much of that progress and more, in terms of the development of his country.
The democratic contract between the government and the governed is a critical part of Haiti’s development and we, on the UN Security Council, want to offer Haiti all of the support we can to ensure that elections take place, as they need to, in 2015, and to ensure that all Haitians are invested in the democracy and in the economy and in the development of this rich country.
We are very encouraged by the effort at consultation with the opposition, with civil society, that the President has made, and out of this meeting, even more encouraged by his determination to continue those consultations even after the lapsing of the Parliament.
And it is clear that even as this political stalemate frustrates people in this country, it is not getting in the way of the government continuing to focus on health, on the economy and on the other functions that the Haitian people count on the President and his ministers to advance.
And my last point is simply that we are very pleased that the Provisional Election Council[i] has been formed, which is of course a critical and necessary step to the holding of elections and we hope it is just the beginning of the kinds of mechanisms that can evolve here in this untraditional period where the Parliament is not functioning.
(Of mic)
Simply to say that we…were pleased by the creation of the Provisional Election --
(Of mic)
It is an example of the kind of compromise among civil society, the opposition and the government that will create a path forward.
And lastly, you have our full support on behalf, again, of the broader international community. We are privileged to be here to see what more the United Nations and each of our nations can do to help the Haitian people through another difficult chapter, but one we are confident that they will come out stronger for having been through on the other side. Mèrci.
Samantha Power
U.S. Permanent Representative to the United Nations
Port-au-Prince, Haiti
January 23, 2015
Thank you. I am Samantha Power, the American Ambassador to the United Nations, and co-lead of this trip with my colleague, the Chilean Ambassador, Cristián Barros.
Each of the 15 individuals standing here have the privilege of representing countries on the UN Security Council and the privilege, in that role, of trying to support the Haitian people in their journey toward stability, prosperity and democracy.
The United Nations, as a community of nations and as MINUSTAH, and the 15 counties here each have stood with the Haitian people through good times and bad times.
Haiti has experienced many challenges throughout its long and rich and vibrant history. What always defines the Haitian people’s response is the spirit of resilience and determination.
We have just had a very important meeting with President Martelly and his Prime Minister and his Cabinet. Over the next two days we will meet with civil society, with opposition parties, with senators and with Haitians outside of Port-au-Prince in Cap-Haitien and here as well, in the capital.
In our meeting with President Martelly, we expressed our collective appreciation for his efforts before the Parliament lapsed to try to (inaudible) consensus in order to maintain the functioning of the Parliament and to pass electoral legislation.
This Council also expressed to President Martelly and his ministers the same disappointment that the Haitian people probably feel, that these efforts to seek consensus and to find a path forward did not prevent the Parliament from lapsing and did not produce the necessary compromise.
We support the President in his efforts to find a solution to the political stalemate and his efforts to ensure fair, transparent and inclusive elections in 2015.
Haiti has made tremendous progress in recent years in terms of health and education, and the President described much of that progress and more, in terms of the development of his country.
The democratic contract between the government and the governed is a critical part of Haiti’s development and we, on the UN Security Council, want to offer Haiti all of the support we can to ensure that elections take place, as they need to, in 2015, and to ensure that all Haitians are invested in the democracy and in the economy and in the development of this rich country.
We are very encouraged by the effort at consultation with the opposition, with civil society, that the President has made, and out of this meeting, even more encouraged by his determination to continue those consultations even after the lapsing of the Parliament.
And it is clear that even as this political stalemate frustrates people in this country, it is not getting in the way of the government continuing to focus on health, on the economy and on the other functions that the Haitian people count on the President and his ministers to advance.
And my last point is simply that we are very pleased that the Provisional Election Council[i] has been formed, which is of course a critical and necessary step to the holding of elections and we hope it is just the beginning of the kinds of mechanisms that can evolve here in this untraditional period where the Parliament is not functioning.
(Of mic)
Simply to say that we…were pleased by the creation of the Provisional Election --
(Of mic)
It is an example of the kind of compromise among civil society, the opposition and the government that will create a path forward.
And lastly, you have our full support on behalf, again, of the broader international community. We are privileged to be here to see what more the United Nations and each of our nations can do to help the Haitian people through another difficult chapter, but one we are confident that they will come out stronger for having been through on the other side. Mèrci.
Monday, January 26, 2015
CHAIRMAN JOINT CHIEFS SAYS SEQUESTRATION HURTS U.S. ABILITY TO MEET RESPONSIBILITIES
FROM: U.S. DEFENSE DEPARTMENT
Dempsey: Sequestration is 'Absolutely Crazy'
By Lisa Ferdinando
DoD News, Defense Media Activity
WASHINGTON, Jan. 26, 2015 – Sequestration is "absolutely crazy," will hurt national security and make it "impossible" for the United States to meet its global commitments, according to the chairman of the Joint Chiefs of Staff.
The world has changed dramatically since sequestration was passed into law in the Budget Control Act of 2011, Army Gen. Martin E. Dempsey said.
Dempsey spoke Thursday, in an interview aboard his plane as he returned to Washington following a European trip focusing on threats to the continent.
"The combination of the Budget Control Act and the sequestration mechanism will make it impossible for us to meet our global responsibilities," he said.
The sequestration mechanism forces across-the-board government spending cuts, a "mechanical withdrawal" that "doesn't allow you to balance your books," Dempsey said.
"The readiness hole is still the readiness hole. The global security environment is more dangerous and sequestration is still on the books as the law. It's absolutely crazy for this country," the top general said.
A More Dangerous World
The changes in the global environment since 2011 include the emergence of the Islamic State of Iraq and the Levant, Russia's fueling of instability in Ukraine, and a "host of security issues," he said.
"ISIL hadn’t manifested itself as a trans-regional threat," the chairman said. "Russia had not annexed Crimea and violated the sovereignty of Ukraine, and in so doing, by the way, stirred up nationalism and ethnicity in Europe in a very unhelpful way."
In addition, the United States is now engaged in trying to reduce sources of instability in Africa, including the mission supporting the fight against Ebola.
In those years since the law was passed, the world has also seen provocations by North Korean leader Kim Jong Un, Dempsey said.
"All those things require consideration of forward presence, readiness, resourcing, countering technological advances by some of our potential adversaries, and that's changed a great deal," the chairman said. "We're trying to encourage everyone to understand that change."
Sequestration Hurts National Defense
Military leaders in 2010 were predicting that even if the United States withdrew from Iraq and Afghanistan, he said, the military would need three or four years to recover its readiness.
"Because for 10 years we've been focused very narrowly on the counter-insurgency, counter-terror threat and we've lost some of our training edge," Dempsey said.
The United States deferred maintenance on some of its high-end capabilities because of sequestration, he said, including ships, submarines and airplanes.
In a separate interview with DoD News while in Europe last week, the chairman said he would like to have a "conversation with Congress" about reversing the effects of sequestration.
"If they're not reversed, they're going to be imposed in 2016, and they will negatively affect our national security interests," he said.
The chairman added, "Collaboratively we shouldn't allow that to happen."
Dempsey: Sequestration is 'Absolutely Crazy'
By Lisa Ferdinando
DoD News, Defense Media Activity
WASHINGTON, Jan. 26, 2015 – Sequestration is "absolutely crazy," will hurt national security and make it "impossible" for the United States to meet its global commitments, according to the chairman of the Joint Chiefs of Staff.
The world has changed dramatically since sequestration was passed into law in the Budget Control Act of 2011, Army Gen. Martin E. Dempsey said.
Dempsey spoke Thursday, in an interview aboard his plane as he returned to Washington following a European trip focusing on threats to the continent.
"The combination of the Budget Control Act and the sequestration mechanism will make it impossible for us to meet our global responsibilities," he said.
The sequestration mechanism forces across-the-board government spending cuts, a "mechanical withdrawal" that "doesn't allow you to balance your books," Dempsey said.
"The readiness hole is still the readiness hole. The global security environment is more dangerous and sequestration is still on the books as the law. It's absolutely crazy for this country," the top general said.
A More Dangerous World
The changes in the global environment since 2011 include the emergence of the Islamic State of Iraq and the Levant, Russia's fueling of instability in Ukraine, and a "host of security issues," he said.
"ISIL hadn’t manifested itself as a trans-regional threat," the chairman said. "Russia had not annexed Crimea and violated the sovereignty of Ukraine, and in so doing, by the way, stirred up nationalism and ethnicity in Europe in a very unhelpful way."
In addition, the United States is now engaged in trying to reduce sources of instability in Africa, including the mission supporting the fight against Ebola.
In those years since the law was passed, the world has also seen provocations by North Korean leader Kim Jong Un, Dempsey said.
"All those things require consideration of forward presence, readiness, resourcing, countering technological advances by some of our potential adversaries, and that's changed a great deal," the chairman said. "We're trying to encourage everyone to understand that change."
Sequestration Hurts National Defense
Military leaders in 2010 were predicting that even if the United States withdrew from Iraq and Afghanistan, he said, the military would need three or four years to recover its readiness.
"Because for 10 years we've been focused very narrowly on the counter-insurgency, counter-terror threat and we've lost some of our training edge," Dempsey said.
The United States deferred maintenance on some of its high-end capabilities because of sequestration, he said, including ships, submarines and airplanes.
In a separate interview with DoD News while in Europe last week, the chairman said he would like to have a "conversation with Congress" about reversing the effects of sequestration.
"If they're not reversed, they're going to be imposed in 2016, and they will negatively affect our national security interests," he said.
The chairman added, "Collaboratively we shouldn't allow that to happen."
U.S. SENDS BEST WISHES TO PEOPLE OF AUSTRALIA ON THEIR NATIONAL DAY
FROM: U.S. STATE DEPARTMENT
Australia Day
Press Statement
John Kerry
Secretary of State
Washington, DC
January 23, 2015
On behalf of President Obama and the American people, it is my pleasure to send the United States’ best wishes to the people of Australia as you celebrate Australia Day on January 26.
Although separated by a great ocean, the United States and Australia are bound together by our robust alliance, shared values, and common culture. And despite the geographic distance between our countries, I always feel at home in Australia—in fact, when I was in Sydney last August for the Australia-U.S. Ministerial, AUSMIN, I was struck by the similarities to my hometown of Boston, which like Sydney is home to a beautiful harbor and historic ships.
As you celebrate Australia Day, know that the United States stands right beside you as a stalwart ally, partner, and friend. Today, as in the past, the United States and Australia are working side by side to address pressing global challenges—from countering violent extremism and fighting the spread of Ebola to bolstering our economies and creating jobs.
2015 is a significant year in the history of our countries: it marks the 10th anniversary of the Australia-U.S. Free Trade Agreement and the 75th anniversary of U.S.-Australia diplomatic relations. But 2015 is also significant for the potential to achieve even more together. I wish all Australians the very best on this Australia Day, and continued success throughout the coming year.
Australia Day
Press Statement
John Kerry
Secretary of State
Washington, DC
January 23, 2015
On behalf of President Obama and the American people, it is my pleasure to send the United States’ best wishes to the people of Australia as you celebrate Australia Day on January 26.
Although separated by a great ocean, the United States and Australia are bound together by our robust alliance, shared values, and common culture. And despite the geographic distance between our countries, I always feel at home in Australia—in fact, when I was in Sydney last August for the Australia-U.S. Ministerial, AUSMIN, I was struck by the similarities to my hometown of Boston, which like Sydney is home to a beautiful harbor and historic ships.
As you celebrate Australia Day, know that the United States stands right beside you as a stalwart ally, partner, and friend. Today, as in the past, the United States and Australia are working side by side to address pressing global challenges—from countering violent extremism and fighting the spread of Ebola to bolstering our economies and creating jobs.
2015 is a significant year in the history of our countries: it marks the 10th anniversary of the Australia-U.S. Free Trade Agreement and the 75th anniversary of U.S.-Australia diplomatic relations. But 2015 is also significant for the potential to achieve even more together. I wish all Australians the very best on this Australia Day, and continued success throughout the coming year.
NASA ANNOUNCES FIRST MULTIPLE-PLANET SYSTEM FOUND
FROM: NASA
Astronomers Discover First Multiple-Planet System From K2
January 21, 2015
Astronomers using data from the NASA Kepler spacecraft's reborn K2 mission may have made its first discovery of a star with three exoplanets—planets that orbit stars other than our sun. A paper reporting this discovery has been submitted for publication in The Astrophysical Journal.
Ranging in size from fifty percent larger to a little more than twice the size of Earth, the possible planets orbit a star about half the size and mass of our sun. The outermost planet orbits on the warm edge of the habitable zone, the distance from a star where liquid water might exist on the surface of an orbiting planet.
"We are delighted to see the enthusiastic response for K2. The mission has extended the telescope's search capability to a new part of the sky, marking the first K2 exoplanet discovery less than a month ago, and now the possible discovery of the first K2 multiple-planet system," said Charles Sobeck, Kepler project manager at NASA's Ames Research Center in Moffett Field, CA. "We look forward to the outcome of the peer-review process of this latest result."
The star, called EPIC 2011367065, home to these possible planets is about 150 light-years away in the constellation Leo.
Astronomers Discover First Multiple-Planet System From K2
January 21, 2015
Astronomers using data from the NASA Kepler spacecraft's reborn K2 mission may have made its first discovery of a star with three exoplanets—planets that orbit stars other than our sun. A paper reporting this discovery has been submitted for publication in The Astrophysical Journal.
Ranging in size from fifty percent larger to a little more than twice the size of Earth, the possible planets orbit a star about half the size and mass of our sun. The outermost planet orbits on the warm edge of the habitable zone, the distance from a star where liquid water might exist on the surface of an orbiting planet.
"We are delighted to see the enthusiastic response for K2. The mission has extended the telescope's search capability to a new part of the sky, marking the first K2 exoplanet discovery less than a month ago, and now the possible discovery of the first K2 multiple-planet system," said Charles Sobeck, Kepler project manager at NASA's Ames Research Center in Moffett Field, CA. "We look forward to the outcome of the peer-review process of this latest result."
The star, called EPIC 2011367065, home to these possible planets is about 150 light-years away in the constellation Leo.
CFTC ISSUES ORDER OF REGISTRATION TO BURSA MALAYSIA DERIVATIVES BERHAD
FROM: U.S. COMMODITY FUTURES TRADING COMMISSION
January 22, 2015
CFTC Issues Order of Registration for Bursa Malaysia Derivatives Berhad
Washington, DC — The U.S. Commodity Futures Trading Commission (Commission) announced today that is has issued an Order of Registration to Bursa Malaysia Derivatives Berhad (BMD), a Foreign Board of Trade located in Kuala Lumpur, Malaysia. Under the Order, BMD is permitted to provide its identified members or other participants located in the U.S. with direct access to its electronic order entry and trade matching system to trade agricultural commodity, interest rate and security index futures and option contracts.
The Commission issued the Order in accordance with Part 48 of the Commission’s regulations, which provides that such an Order may be issued to a foreign board of trade that possesses, among other things, the attributes of an established, organized exchange and that is subject to continued oversight by a regulator that provides comprehensive supervision and regulation that is comparable to the supervision and regulation exercised by the Commission.
BMD submitted an application for registration that included, among other things, representations that its regulatory regime under its regulatory authority, the Malaysian Securities Commission, satisfies the requirements for registration in Commission regulation 48.7.
Upon review of the application, the Commission has determined that BMD has demonstrated its ability to comply with the requirements of the applicable Commission regulations. Accordingly, the Commission granted BMD an Order of Registration to permit it to provide direct access to its identified members or other participants located in the U.S., subject to the terms and conditions specified in the Order. The terms and conditions applicable to the Order include, among others, that BMD shall comply with Commission regulation 48.8, Conditions of Registration, and any additional conditions that the Commission deems necessary and may impose, after appropriate notice and opportunity to respond. BMD shall also continue to fulfill each of the representations it made in support of the application for registration.
Last Updated: January 22, 2015
January 22, 2015
CFTC Issues Order of Registration for Bursa Malaysia Derivatives Berhad
Washington, DC — The U.S. Commodity Futures Trading Commission (Commission) announced today that is has issued an Order of Registration to Bursa Malaysia Derivatives Berhad (BMD), a Foreign Board of Trade located in Kuala Lumpur, Malaysia. Under the Order, BMD is permitted to provide its identified members or other participants located in the U.S. with direct access to its electronic order entry and trade matching system to trade agricultural commodity, interest rate and security index futures and option contracts.
The Commission issued the Order in accordance with Part 48 of the Commission’s regulations, which provides that such an Order may be issued to a foreign board of trade that possesses, among other things, the attributes of an established, organized exchange and that is subject to continued oversight by a regulator that provides comprehensive supervision and regulation that is comparable to the supervision and regulation exercised by the Commission.
BMD submitted an application for registration that included, among other things, representations that its regulatory regime under its regulatory authority, the Malaysian Securities Commission, satisfies the requirements for registration in Commission regulation 48.7.
Upon review of the application, the Commission has determined that BMD has demonstrated its ability to comply with the requirements of the applicable Commission regulations. Accordingly, the Commission granted BMD an Order of Registration to permit it to provide direct access to its identified members or other participants located in the U.S., subject to the terms and conditions specified in the Order. The terms and conditions applicable to the Order include, among others, that BMD shall comply with Commission regulation 48.8, Conditions of Registration, and any additional conditions that the Commission deems necessary and may impose, after appropriate notice and opportunity to respond. BMD shall also continue to fulfill each of the representations it made in support of the application for registration.
Last Updated: January 22, 2015
DOJ ANTITRUST DIVISION COLLECTED $1.861 BILLION IN CRIMINAL FINES, PENALTIES FOR FISCAL YEAR 2014
FROM: U.S. JUSTICE DEPARTMENT
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, January 22, 2015
Antitrust Division Announces Fiscal Year Total in Criminal Fines Collected
The Department of Justice collected $1.861 billion in criminal fines and penalties resulting from Antitrust Division prosecutions in the fiscal year that ended on Sept. 30, 2014. Contributing in part to one of the largest yearly collections for the division, five of the companies paid in full penalties that exceeded $100 million, including a $425 million criminal fine levied against Bridgestone Corp., the fourth-largest fine the Antitrust Division has ever obtained. The second-largest fine collected was a $195 million criminal fine levied against Hitachi Automotive Systems Ltd. The three additional companies that paid fines and penalties exceeding $100 million were Mitsubishi Electric Corp. with $190 million, Toyo Tire & Rubber Co. Ltd. with $120 million and JTEKT Corp. with $103.2 million. The collection total also includes penalties of more than $561 million received as a result of the division’s LIBOR investigation, which has been conducted in cooperation with the Justice Department’s Criminal Division. In addition, in the last fiscal year the division obtained jail terms for 21 individual defendants, with an average sentence of 26 months, the third-highest average ever.
“The size of these penalties is an unfortunate reminder of the powerful temptation to cheat the American consumer and profit from collusion,” said Assistant Attorney General Bill Baer for the Antitrust Division. “We remain committed to ensuring that corporations and individuals who collude face serious consequences for their crimes.”
15-082
Antitrust Division
Antitrust (including FTC antitrust)
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, January 22, 2015
Antitrust Division Announces Fiscal Year Total in Criminal Fines Collected
The Department of Justice collected $1.861 billion in criminal fines and penalties resulting from Antitrust Division prosecutions in the fiscal year that ended on Sept. 30, 2014. Contributing in part to one of the largest yearly collections for the division, five of the companies paid in full penalties that exceeded $100 million, including a $425 million criminal fine levied against Bridgestone Corp., the fourth-largest fine the Antitrust Division has ever obtained. The second-largest fine collected was a $195 million criminal fine levied against Hitachi Automotive Systems Ltd. The three additional companies that paid fines and penalties exceeding $100 million were Mitsubishi Electric Corp. with $190 million, Toyo Tire & Rubber Co. Ltd. with $120 million and JTEKT Corp. with $103.2 million. The collection total also includes penalties of more than $561 million received as a result of the division’s LIBOR investigation, which has been conducted in cooperation with the Justice Department’s Criminal Division. In addition, in the last fiscal year the division obtained jail terms for 21 individual defendants, with an average sentence of 26 months, the third-highest average ever.
“The size of these penalties is an unfortunate reminder of the powerful temptation to cheat the American consumer and profit from collusion,” said Assistant Attorney General Bill Baer for the Antitrust Division. “We remain committed to ensuring that corporations and individuals who collude face serious consequences for their crimes.”
15-082
Antitrust Division
Antitrust (including FTC antitrust)
Sunday, January 25, 2015
SECRETARY KERRY'S REMARKS TO PRESS IN LAGOS, NIGERIA
FROM: U.S. STATE DEPARTMENT
Remarks at a Press Availability in Lagos, Nigeria
Remarks
John Kerry
Secretary of State
Lagos, Nigeria
January 25, 2015
SECRETARY KERRY: Well, good afternoon, everybody. I am really delighted be here in Nigeria. And I was just admiring the extraordinary view and this wonderful location. I’m particularly pleased to be here at this particular moment, just a few weeks before one of the most important elections that this country has held. And this will be the largest democratic election on the continent. Given the stakes, it’s absolutely critical that these elections be conducted peacefully, that they are credible, transparent, accountable, so that the people of Nigeria can have faith and the world can have faith in the government that flows from it.
So I came here today to deliver a very simple message, and I met with both major candidates in order to underscore that the international community is paying very close attention to this election and that the international community is deeply committed to working with Nigerians going forward with the hopes that they will have an election that is free of violence and capable of instilling confidence in the future.
I was at the World Economic Forum in Davos earlier this weekend where I delivered a speech about the need for a long-term, comprehensive global effort to combat violent extremism, and to address the underlying causes before that extremism takes root. The unfortunate truth is that Nigerians know as well as anyone how desperately that kind of effort is needed. Day after day, the group that calls itself Boko Haram continues to kill scores of innocent civilians and attack villages and military installations in places like Borno, Yobe, and Adamawa states. The United States condemns these attacks which have escalated in recent weeks. And we extend our deepest condolences to the thousands of families that have been impacted, and we deeply regret the toll that this violence has taken on the Nigerian people. We will absolutely continue to support the Nigerian military in its fight against Boko Haram. And as I said in Davos, all of us must work together to advance a strategy that will not only stop groups like Boko Haram, Daesh, and al-Qaida, but that will address the environment from which these groups emerge.
We were very happy to see the Government of Niger host a regional security ministerial meeting last week to discuss how to better coordinate counterterrorism efforts. This is exactly the kind of thing that I suggested is necessary in the comments that I made a couple of days ago. It is very important that the world cooperate more in helping countries where they want to and where they don’t the full capacity to be able to step up and take on lawless terrorist entities.
That is precisely why President Obama has announced that next month in Washington we will host an international summit on combatting violent extremism around the world. It will be held at the WH and at the State Department, it will be at the ministerial, and we hope to bring people together who have been engaged in these fights against the Boko Harams and other entities so we can share best practices, so that we could hear from people about what they need and what they think is necessary in order to be able to summon an even stronger global response.
The fact is that one of the best ways to fight back against Boko Haram and similar groups is by protecting the peaceful, credible, and transparent elections that are essential to any thriving democracy, and certainly, essential to the largest democracy in Africa. It’s imperative that these elections happen on time as scheduled, and that they are an improvement over past elections, and they need to set a new standard for this democracy. That means that Nigerians have to not only reject violence but they have to actually promote peace.
I met with President Jonathan earlier today and separately with General Buhari, and I was encouraged to hear once again from both men that this is exactly what they intend to do to try to press for an election that can be held with the credibility the people of Nigeria want and deserve. As President Jonathan said in his New Year’s message, none of our political ambitions is worth the blood of any of our countrymen, women, and children. And as General Buhari recently tweeted, electoral violence is unacceptable, and every Nigerian life is sacred. Both candidates have also signed on to the so-called Abuja Accord, which commits them to running exclusively issue-based campaigns, refraining from violence before and during and after election day, and speaking out against any violence that does emerge.
These are commitments that we need to see from everyone and they are commitments that need to be kept. Many people are stepping up. For example, Chairman Jega and the thousands of independent national election commission employees are taking concrete steps in order to guarantee that this election is successful. We also urge all of Nigeria’s governors to call for peaceful democratic engagement among their residents, and we ask all parties and all candidates to do the same.
And I would say to everybody that no matter what the outcome, if you have a question, if you have a doubt, if there is someplace where issues may have arisen, it is absolutely vital that whatever differences may exist be resolved through legitimate channels, through the legal channels, which are fundamental to the democratic process. And I urge all of Nigeria’s candidates to do what is best for their country no matter the outcome on election day.
I want to emphasize that for the United States, Nigeria is an increasingly important strategic partner. Nigeria has a critical role to play in the security and prosperity of this continent and beyond. We are committed to helping the electoral process succeed, and last week we sent an electoral security advisor in order to support INEC’s efforts to advise on security concerns and to help develop a risk mapping tool to prepare for any violence that might emerge.
So let me be clear: Anyone who participates in, plans, or calls for widespread or systematic violence against the civilian population must be held accountable, including by ineligibility for an American visa. Violence has no place in democratic elections, and I can guarantee you that the perpetrators of such violence would not be welcome in the United States of America. Nigeria is Africa’s most populous nation and one of the world’s largest democracies. It is blessed with some of the planet’s most valuable and abundant natural resources. Conducting accountable, credible, peaceful elections will help put the Nigerian people on a path to prosperity and regional leadership that is needed in order to address a wide range of challenges in this part of the world, including, obviously, violent extremism.
With this election, Nigeria has an opportunity to put an indelible stamp on the kind of future that Africa wants to see and most importantly that Nigeria wants and deserves. I want to reiterate what President Obama recently said, that he, I, and the American people stand with you as Nigeria’s great democratic exercise unfolds. And we stand ready to work with the Government of Nigeria, the Nigerian people, and whomever they elect next month continue – to continue building on the important partnership that we share.
And with that, I would be delighted to take a couple of questions.
MODERATOR: Our first question comes from (inaudible).
QUESTION: Could you give us a bit more of a response to these attacks by Boko Haram in northeastern Nigeria and how concerned you are about this (inaudible)?
QUESTION: And can you also give us a bit more of a sense of what concrete steps the U.S. is prepared to take with the Nigeria to fight Boko Haram? Because it has been a concern within the Pentagon about the capability or the commitment of the military to fight Boko Haram. And finally, could you give us sense from here that Boko Haram’s kind of spreading to other parts of Africa and aligning (inaudible) the Islamic State or other terrorist groups?
SECRETARY KERRY: Well, let me take the last part of your question first. There’s no specific declaration by Boko Haram of an affiliation with Daesh, but there is evidence that Daesh is making an effort to spread its tentacles throughout a number of countries in the northern part of Africa, and it is obviously a concern that they may try more aggressively to try to spread to countries in the center and southern and other parts of Africa.
The United States is deeply engaged with Nigeria. And I’ve seen the articles that refer to some of the problems with respect to that engagement. Everybody’s heard certain criticisms that have been made. Some of them are just flat-out inaccurate. For instance, we do continue to share intelligence with the Nigerian military and intelligence folks. We do cooperate in many ways. We don’t believe that the level of support provided by the United States or the international community is the limiting factor in the Nigerian Government’s ability to fight Boko Haram.
And with respect to the military assistance that we’re delivering, we are currently helping the Nigerian – helping Nigeria to increase the capability of its military; to improve its counter-incident explosive detection and civil-military operations capacity; and to carry out responsible counterterrorism operations. Now, does it always well as work – work as well as we would like or as well as the Nigerians would like? The answer is no. There are developmental issues in that relationship and in those efforts. But the United States maintains a very significant level of military cooperation with various elements of the Nigerian security forces.
And we’re also providing law enforcement assistance, including by training Nigerian law enforcement officials on counterterrorism investigations and post-blast investigations and crisis management. Right now, we have a team of Nigerian Government crisis management officials in the United States who are participating in a senior crisis management exercise. We have provided equipment and training for the Nigerian intelligence fusion center. And most recently, we’ve worked with Nigeria’s neighbors Cameroon, Chad, and Niger to develop institutional and tactical capabilities that will increase the joint efforts between our countries in order to be more effective.
So bottom line, we want to do more. And that was part of my message to both President Jonathan and General Buhari today. We are prepared to do more, but our ability to do more will depend to some degree on the full measure of credibility, accountability, transparency and peacefulness of this election. And one of the principle reasons that President Obama asked me to come here at this moment is to reinforce to all Nigerians the desire of the United States to be able to engage even more so in the effort to push back against Boko Haram or any other violent extremist group, but the quality of the democratic process is important to contributing to our ability to do so. And that’s exactly why I’m here today.
MODERATOR: Our last question is from Victor Asije of the News Agency of Nigeria.
QUESTION: (Inaudible) and welcome to Nigeria.
SECRETARY KERRY: Thank you.
QUESTION: Are you confident that President Jonathan and General Buhari can be held to their promises – promises they made to you, (inaudible), credible elections, (inaudible) that the U.S. (inaudible)? The other question is this: Now, even after the (inaudible) that the U.S. (inaudible) to discriminate against people from West Africa (inaudible)?
SECRETARY KERRY: Can you repeat the last part? The U.S. is likely to discriminate?
QUESTION: That the U.S. is likely (inaudible) to discriminate against people from West Africa who are (inaudible)?
SECRETARY KERRY: No, I – let me answer that first. I’m personally very proud, and I think every American is very proud, of the extraordinary efforts the United States has made in order to combat the Ebola disease. President Obama made a remarkably courageous and critical decision right up front, when people didn’t know all – publicly, certainly – all of the potential dangers. But when he, by virtue of his briefings and his understanding through his medical advisors, had a strong sense of what was possible, the President committed 4,000 U.S. troops to go to Liberia immediately in order to begin to build the capacity to fight Ebola. We worked extremely closely with our friends and allies, the French and the British particularly, but with many other people – Japan, China. Many countries stepped up as we came together at the United Nations in September, summoned more response, sent people over here, many workers, as you know, who have come back to the United States, and a few of them who came back with Ebola and they were treated, one of whom who died and others who were cured.
We have confidence in the ability of people to be cured. We have confidence that this is – that we are gaining in our capacity to control this; we’ve made enormous strides, and I can guarantee you there will be no discrimination against people from anywhere because this is a disease from which people can be determined to be either cured or free in the first place from any infection. As long as protocols are followed, as long as the screenings are taken, I don’t think anybody has to fear any form or any nature of discrimination. I think the efforts of the United States, frankly, speak volumes against that possibility.
On the first part of your question about the promises of the two leaders, let me make this clear: I think the real question ought to be will the Nigerian people be able to count on the president, whoever it is? The promises to the people of Nigeria – and to the world really, but principally the people of Nigeria – and I think it’s up to the people of Nigeria to make the judgment about whether they’re confident that any particular person or candidate is going to live up to their word. It’s not up to us to make that judgment. The proof will be in what happens in the days ahead.
But I’m here today because President Obama and the American people and the world are looking at Nigeria in this extraordinary exercise of democracy, in this important country in Africa, with the largest democratic election on the continent – and it matters. And that’s why we’re here: to emphasize to everybody, nobody gains by violence. Nobody gains by turning a political disagreement into a killing spree or some other kind of violence. And our hope is that Nigeria will set a remarkable example for the world in this election, and that that will give whoever is President coming out of this election the momentum that he needs in order to be able to define the future that the people of this country so want. And the proof will be in the actions that are taken in the course of the election and afterwards.
So thank you all very, very much. Appreciate it.
Remarks at a Press Availability in Lagos, Nigeria
Remarks
John Kerry
Secretary of State
Lagos, Nigeria
January 25, 2015
SECRETARY KERRY: Well, good afternoon, everybody. I am really delighted be here in Nigeria. And I was just admiring the extraordinary view and this wonderful location. I’m particularly pleased to be here at this particular moment, just a few weeks before one of the most important elections that this country has held. And this will be the largest democratic election on the continent. Given the stakes, it’s absolutely critical that these elections be conducted peacefully, that they are credible, transparent, accountable, so that the people of Nigeria can have faith and the world can have faith in the government that flows from it.
So I came here today to deliver a very simple message, and I met with both major candidates in order to underscore that the international community is paying very close attention to this election and that the international community is deeply committed to working with Nigerians going forward with the hopes that they will have an election that is free of violence and capable of instilling confidence in the future.
I was at the World Economic Forum in Davos earlier this weekend where I delivered a speech about the need for a long-term, comprehensive global effort to combat violent extremism, and to address the underlying causes before that extremism takes root. The unfortunate truth is that Nigerians know as well as anyone how desperately that kind of effort is needed. Day after day, the group that calls itself Boko Haram continues to kill scores of innocent civilians and attack villages and military installations in places like Borno, Yobe, and Adamawa states. The United States condemns these attacks which have escalated in recent weeks. And we extend our deepest condolences to the thousands of families that have been impacted, and we deeply regret the toll that this violence has taken on the Nigerian people. We will absolutely continue to support the Nigerian military in its fight against Boko Haram. And as I said in Davos, all of us must work together to advance a strategy that will not only stop groups like Boko Haram, Daesh, and al-Qaida, but that will address the environment from which these groups emerge.
We were very happy to see the Government of Niger host a regional security ministerial meeting last week to discuss how to better coordinate counterterrorism efforts. This is exactly the kind of thing that I suggested is necessary in the comments that I made a couple of days ago. It is very important that the world cooperate more in helping countries where they want to and where they don’t the full capacity to be able to step up and take on lawless terrorist entities.
That is precisely why President Obama has announced that next month in Washington we will host an international summit on combatting violent extremism around the world. It will be held at the WH and at the State Department, it will be at the ministerial, and we hope to bring people together who have been engaged in these fights against the Boko Harams and other entities so we can share best practices, so that we could hear from people about what they need and what they think is necessary in order to be able to summon an even stronger global response.
The fact is that one of the best ways to fight back against Boko Haram and similar groups is by protecting the peaceful, credible, and transparent elections that are essential to any thriving democracy, and certainly, essential to the largest democracy in Africa. It’s imperative that these elections happen on time as scheduled, and that they are an improvement over past elections, and they need to set a new standard for this democracy. That means that Nigerians have to not only reject violence but they have to actually promote peace.
I met with President Jonathan earlier today and separately with General Buhari, and I was encouraged to hear once again from both men that this is exactly what they intend to do to try to press for an election that can be held with the credibility the people of Nigeria want and deserve. As President Jonathan said in his New Year’s message, none of our political ambitions is worth the blood of any of our countrymen, women, and children. And as General Buhari recently tweeted, electoral violence is unacceptable, and every Nigerian life is sacred. Both candidates have also signed on to the so-called Abuja Accord, which commits them to running exclusively issue-based campaigns, refraining from violence before and during and after election day, and speaking out against any violence that does emerge.
These are commitments that we need to see from everyone and they are commitments that need to be kept. Many people are stepping up. For example, Chairman Jega and the thousands of independent national election commission employees are taking concrete steps in order to guarantee that this election is successful. We also urge all of Nigeria’s governors to call for peaceful democratic engagement among their residents, and we ask all parties and all candidates to do the same.
And I would say to everybody that no matter what the outcome, if you have a question, if you have a doubt, if there is someplace where issues may have arisen, it is absolutely vital that whatever differences may exist be resolved through legitimate channels, through the legal channels, which are fundamental to the democratic process. And I urge all of Nigeria’s candidates to do what is best for their country no matter the outcome on election day.
I want to emphasize that for the United States, Nigeria is an increasingly important strategic partner. Nigeria has a critical role to play in the security and prosperity of this continent and beyond. We are committed to helping the electoral process succeed, and last week we sent an electoral security advisor in order to support INEC’s efforts to advise on security concerns and to help develop a risk mapping tool to prepare for any violence that might emerge.
So let me be clear: Anyone who participates in, plans, or calls for widespread or systematic violence against the civilian population must be held accountable, including by ineligibility for an American visa. Violence has no place in democratic elections, and I can guarantee you that the perpetrators of such violence would not be welcome in the United States of America. Nigeria is Africa’s most populous nation and one of the world’s largest democracies. It is blessed with some of the planet’s most valuable and abundant natural resources. Conducting accountable, credible, peaceful elections will help put the Nigerian people on a path to prosperity and regional leadership that is needed in order to address a wide range of challenges in this part of the world, including, obviously, violent extremism.
With this election, Nigeria has an opportunity to put an indelible stamp on the kind of future that Africa wants to see and most importantly that Nigeria wants and deserves. I want to reiterate what President Obama recently said, that he, I, and the American people stand with you as Nigeria’s great democratic exercise unfolds. And we stand ready to work with the Government of Nigeria, the Nigerian people, and whomever they elect next month continue – to continue building on the important partnership that we share.
And with that, I would be delighted to take a couple of questions.
MODERATOR: Our first question comes from (inaudible).
QUESTION: Could you give us a bit more of a response to these attacks by Boko Haram in northeastern Nigeria and how concerned you are about this (inaudible)?
QUESTION: And can you also give us a bit more of a sense of what concrete steps the U.S. is prepared to take with the Nigeria to fight Boko Haram? Because it has been a concern within the Pentagon about the capability or the commitment of the military to fight Boko Haram. And finally, could you give us sense from here that Boko Haram’s kind of spreading to other parts of Africa and aligning (inaudible) the Islamic State or other terrorist groups?
SECRETARY KERRY: Well, let me take the last part of your question first. There’s no specific declaration by Boko Haram of an affiliation with Daesh, but there is evidence that Daesh is making an effort to spread its tentacles throughout a number of countries in the northern part of Africa, and it is obviously a concern that they may try more aggressively to try to spread to countries in the center and southern and other parts of Africa.
The United States is deeply engaged with Nigeria. And I’ve seen the articles that refer to some of the problems with respect to that engagement. Everybody’s heard certain criticisms that have been made. Some of them are just flat-out inaccurate. For instance, we do continue to share intelligence with the Nigerian military and intelligence folks. We do cooperate in many ways. We don’t believe that the level of support provided by the United States or the international community is the limiting factor in the Nigerian Government’s ability to fight Boko Haram.
And with respect to the military assistance that we’re delivering, we are currently helping the Nigerian – helping Nigeria to increase the capability of its military; to improve its counter-incident explosive detection and civil-military operations capacity; and to carry out responsible counterterrorism operations. Now, does it always well as work – work as well as we would like or as well as the Nigerians would like? The answer is no. There are developmental issues in that relationship and in those efforts. But the United States maintains a very significant level of military cooperation with various elements of the Nigerian security forces.
And we’re also providing law enforcement assistance, including by training Nigerian law enforcement officials on counterterrorism investigations and post-blast investigations and crisis management. Right now, we have a team of Nigerian Government crisis management officials in the United States who are participating in a senior crisis management exercise. We have provided equipment and training for the Nigerian intelligence fusion center. And most recently, we’ve worked with Nigeria’s neighbors Cameroon, Chad, and Niger to develop institutional and tactical capabilities that will increase the joint efforts between our countries in order to be more effective.
So bottom line, we want to do more. And that was part of my message to both President Jonathan and General Buhari today. We are prepared to do more, but our ability to do more will depend to some degree on the full measure of credibility, accountability, transparency and peacefulness of this election. And one of the principle reasons that President Obama asked me to come here at this moment is to reinforce to all Nigerians the desire of the United States to be able to engage even more so in the effort to push back against Boko Haram or any other violent extremist group, but the quality of the democratic process is important to contributing to our ability to do so. And that’s exactly why I’m here today.
MODERATOR: Our last question is from Victor Asije of the News Agency of Nigeria.
QUESTION: (Inaudible) and welcome to Nigeria.
SECRETARY KERRY: Thank you.
QUESTION: Are you confident that President Jonathan and General Buhari can be held to their promises – promises they made to you, (inaudible), credible elections, (inaudible) that the U.S. (inaudible)? The other question is this: Now, even after the (inaudible) that the U.S. (inaudible) to discriminate against people from West Africa (inaudible)?
SECRETARY KERRY: Can you repeat the last part? The U.S. is likely to discriminate?
QUESTION: That the U.S. is likely (inaudible) to discriminate against people from West Africa who are (inaudible)?
SECRETARY KERRY: No, I – let me answer that first. I’m personally very proud, and I think every American is very proud, of the extraordinary efforts the United States has made in order to combat the Ebola disease. President Obama made a remarkably courageous and critical decision right up front, when people didn’t know all – publicly, certainly – all of the potential dangers. But when he, by virtue of his briefings and his understanding through his medical advisors, had a strong sense of what was possible, the President committed 4,000 U.S. troops to go to Liberia immediately in order to begin to build the capacity to fight Ebola. We worked extremely closely with our friends and allies, the French and the British particularly, but with many other people – Japan, China. Many countries stepped up as we came together at the United Nations in September, summoned more response, sent people over here, many workers, as you know, who have come back to the United States, and a few of them who came back with Ebola and they were treated, one of whom who died and others who were cured.
We have confidence in the ability of people to be cured. We have confidence that this is – that we are gaining in our capacity to control this; we’ve made enormous strides, and I can guarantee you there will be no discrimination against people from anywhere because this is a disease from which people can be determined to be either cured or free in the first place from any infection. As long as protocols are followed, as long as the screenings are taken, I don’t think anybody has to fear any form or any nature of discrimination. I think the efforts of the United States, frankly, speak volumes against that possibility.
On the first part of your question about the promises of the two leaders, let me make this clear: I think the real question ought to be will the Nigerian people be able to count on the president, whoever it is? The promises to the people of Nigeria – and to the world really, but principally the people of Nigeria – and I think it’s up to the people of Nigeria to make the judgment about whether they’re confident that any particular person or candidate is going to live up to their word. It’s not up to us to make that judgment. The proof will be in what happens in the days ahead.
But I’m here today because President Obama and the American people and the world are looking at Nigeria in this extraordinary exercise of democracy, in this important country in Africa, with the largest democratic election on the continent – and it matters. And that’s why we’re here: to emphasize to everybody, nobody gains by violence. Nobody gains by turning a political disagreement into a killing spree or some other kind of violence. And our hope is that Nigeria will set a remarkable example for the world in this election, and that that will give whoever is President coming out of this election the momentum that he needs in order to be able to define the future that the people of this country so want. And the proof will be in the actions that are taken in the course of the election and afterwards.
So thank you all very, very much. Appreciate it.
EXECUTIVE AT AUTO PARTS MANUFACTURER INDICTED FOR ROLE IN PRICE FIXING CONSPRIACY
FROM: U.S. JUSTICE DEPARTMENT
JUSTICE NEWS
Department of Justice
Office of Public Affairs
Thursday, January 22, 2015
Executive of Japanese Automotive Parts Manufacturer Indicted for Role in Conspiracy to Fix Prices
A Detroit federal grand jury returned a one-count indictment against an executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to fix prices of seatbelts, the Department of Justice announced today.
The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Hiromu Usuda, an executive at Takata Corp., with conspiring to rig bids for, and to fix, stabilize and maintain the prices of, seatbelts sold to Toyota Motor Corp., Honda Motor Company Ltd., Nissan Motor Co. Ltd., Mazda Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and/or certain of their subsidiaries, for installation in vehicles manufactured and sold in the United States and elsewhere. Usuda served as Group and Department Manager in the Customer Relations Division at Takata, from January 2005 until at least February 2011.
“Antitrust violators who refuse to accept responsibility for their crimes leave us no choice but to indict,” said Brent Synder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “We will continue to prosecute those that commit these crimes.”
The indictment alleges, among other things, that from at least Jan. 1, 2005, through at least February 2011, Usuda and others attended meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices of seatbelts sold to the automobile manufacturers. It alleges that Usuda participated directly in the conspiratorial conduct and that he directed, authorized and consented to his subordinates’ participation.
Takata is a Tokyo-based manufacturer of automotive parts, including seatbelts. Takata supplies automotive parts to automobile manufacturers in the United States, in part, through its U.S. subsidiary, TK Holdings Inc., located in Auburn Hills, Michigan. Takata pleaded guilty on Dec. 5, 2013, for its involvement in the conspiracy, and was sentenced to pay a criminal fine of $71.3 million. Four other executives from Takata have pleaded guilty, have been sentenced to serve time in a U.S. prison and to pay criminal fines for their roles in the conspiracy.
Including Usuda, 50 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.
Usuda is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit.
JUSTICE NEWS
Department of Justice
Office of Public Affairs
Thursday, January 22, 2015
Executive of Japanese Automotive Parts Manufacturer Indicted for Role in Conspiracy to Fix Prices
A Detroit federal grand jury returned a one-count indictment against an executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to fix prices of seatbelts, the Department of Justice announced today.
The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Hiromu Usuda, an executive at Takata Corp., with conspiring to rig bids for, and to fix, stabilize and maintain the prices of, seatbelts sold to Toyota Motor Corp., Honda Motor Company Ltd., Nissan Motor Co. Ltd., Mazda Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and/or certain of their subsidiaries, for installation in vehicles manufactured and sold in the United States and elsewhere. Usuda served as Group and Department Manager in the Customer Relations Division at Takata, from January 2005 until at least February 2011.
“Antitrust violators who refuse to accept responsibility for their crimes leave us no choice but to indict,” said Brent Synder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “We will continue to prosecute those that commit these crimes.”
The indictment alleges, among other things, that from at least Jan. 1, 2005, through at least February 2011, Usuda and others attended meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices of seatbelts sold to the automobile manufacturers. It alleges that Usuda participated directly in the conspiratorial conduct and that he directed, authorized and consented to his subordinates’ participation.
Takata is a Tokyo-based manufacturer of automotive parts, including seatbelts. Takata supplies automotive parts to automobile manufacturers in the United States, in part, through its U.S. subsidiary, TK Holdings Inc., located in Auburn Hills, Michigan. Takata pleaded guilty on Dec. 5, 2013, for its involvement in the conspiracy, and was sentenced to pay a criminal fine of $71.3 million. Four other executives from Takata have pleaded guilty, have been sentenced to serve time in a U.S. prison and to pay criminal fines for their roles in the conspiracy.
Including Usuda, 50 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.
Usuda is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit.
DOJ, COLUMBUS, GEORGIA MAKE AGREEMENT ON TREATMENT OF SERIOUSLY MENTALLY ILL PRISONERS
FROM: U.S. JUSTICE DEPARTMENT
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Wednesday, January 21, 2015
Justice Department and Columbus, Georgia, Agree to Landmark Reforms Regarding the Treatment of Prisoners with Serious Mental Illness
Today, the Justice Department reached an agreement with Columbus, Georgia, that will address the remaining goals of a long-standing consent decree calling for reforms of its mental health system.
Muscogee County has made significant improvements at the Muscogee County Jail in the areas of security, environmental health and safety as well as modest improvements in the provision of medical care following a 1999 federal consent agreement. In order to address the continued deficiencies that remain, with respect to identifying, treating and housing prisoners with severe and persistent mental illness, jail leadership worked collaboratively with the Justice Department to create additional solutions that will improve mental health care without compromising security through a supplemental agreement.
The existing consent decree will remain in place and the supplemental agreement adds crucial safeguards for prisoners with serious mental illness. The supplemental agreement restricts the use of solitary confinement for prisoners with serious mental illness and limits the use of solitary confinement after 14 days. The jail will provide secure mental health and step-down units, and programs to provide prisoners with serious mental illness a total of at least 24 hours structured and unstructured time out-of-cell each week. These and other measures will vastly improve the quality of mental health care services in the Muscogee County Jail, while helping to minimize violence in the facility.
The supplemental agreement also includes robust training requirements. All correctional staff must receive Crisis Intervention Team training, including training on understanding and recognizing psychiatric signs and symptoms to identify prisoners who have or may have serious mental illness, using de-escalation techniques to calm and reassure prisoners who have or may have serious mental illness before resorting to use of force, discipline, or solitary confinement, and making appropriate mental health referrals.
“The Constitution requires that those detained in our nation’s jails and prisons are treated humanely and receive adequate mental health care,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “We are glad to have been able to work with Sheriff Darr, Jail Commander Collins, and Columbus, Georgia, in crafting sensible solutions to address a pressing issue confronting corrections administrators throughout this country: the burgeoning numbers of men and women with mental illness in our correctional institutions.
“These reforms will not only improve mental health care for this vulnerable population, but also enhance security within the facility, and facilitate inmates’ successful reintegration into the community upon release, which will help make our society safer,” said U.S. Attorney Michael Moore for the Middle District of Georgia.
The agreement requires a monitor to oversee implementation of the agreement and issue a compliance report every six months.
The Civil Rights of Institutionalized Persons Act authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison, or other correctional facility. Please visit the division website to learn more about this act and other laws enforced by the Civil Rights Division.
This agreement is due to the efforts of the Special Litigation Section of the Civil Rights Division, and the leadership of Columbus, Georgia, a consolidated government, acting by and through the Sheriff of Muscogee County, in his official capacity, and the Columbus City Manager, in his official capacity, as authorized by the Columbus Council.
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Wednesday, January 21, 2015
Justice Department and Columbus, Georgia, Agree to Landmark Reforms Regarding the Treatment of Prisoners with Serious Mental Illness
Today, the Justice Department reached an agreement with Columbus, Georgia, that will address the remaining goals of a long-standing consent decree calling for reforms of its mental health system.
Muscogee County has made significant improvements at the Muscogee County Jail in the areas of security, environmental health and safety as well as modest improvements in the provision of medical care following a 1999 federal consent agreement. In order to address the continued deficiencies that remain, with respect to identifying, treating and housing prisoners with severe and persistent mental illness, jail leadership worked collaboratively with the Justice Department to create additional solutions that will improve mental health care without compromising security through a supplemental agreement.
The existing consent decree will remain in place and the supplemental agreement adds crucial safeguards for prisoners with serious mental illness. The supplemental agreement restricts the use of solitary confinement for prisoners with serious mental illness and limits the use of solitary confinement after 14 days. The jail will provide secure mental health and step-down units, and programs to provide prisoners with serious mental illness a total of at least 24 hours structured and unstructured time out-of-cell each week. These and other measures will vastly improve the quality of mental health care services in the Muscogee County Jail, while helping to minimize violence in the facility.
The supplemental agreement also includes robust training requirements. All correctional staff must receive Crisis Intervention Team training, including training on understanding and recognizing psychiatric signs and symptoms to identify prisoners who have or may have serious mental illness, using de-escalation techniques to calm and reassure prisoners who have or may have serious mental illness before resorting to use of force, discipline, or solitary confinement, and making appropriate mental health referrals.
“The Constitution requires that those detained in our nation’s jails and prisons are treated humanely and receive adequate mental health care,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “We are glad to have been able to work with Sheriff Darr, Jail Commander Collins, and Columbus, Georgia, in crafting sensible solutions to address a pressing issue confronting corrections administrators throughout this country: the burgeoning numbers of men and women with mental illness in our correctional institutions.
“These reforms will not only improve mental health care for this vulnerable population, but also enhance security within the facility, and facilitate inmates’ successful reintegration into the community upon release, which will help make our society safer,” said U.S. Attorney Michael Moore for the Middle District of Georgia.
The agreement requires a monitor to oversee implementation of the agreement and issue a compliance report every six months.
The Civil Rights of Institutionalized Persons Act authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison, or other correctional facility. Please visit the division website to learn more about this act and other laws enforced by the Civil Rights Division.
This agreement is due to the efforts of the Special Litigation Section of the Civil Rights Division, and the leadership of Columbus, Georgia, a consolidated government, acting by and through the Sheriff of Muscogee County, in his official capacity, and the Columbus City Manager, in his official capacity, as authorized by the Columbus Council.
COURT IMPOSES MONETARY PENALTY OF OVER $2.1 MILLION AGAINST FOREX TRADERS
FROM: U.S. COMMODITY FUTURES TRADING COMMISSION
January 21, 2015
Federal Court in New York Imposes a $2.16 Million Penalty and Permanent Trading Bans against Michael A. Kardonick, Gary R. Shapoff, and Atwood & James for Forex Options Fraud and Misappropriation
Kardonick and Shapoff Are Serving Time in Prison after Pleading Guilty to Related Federal Criminal Charges
Washington DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that a federal court in Rochester, New York issued a consent Order against Atwood & James, Ltd. and Atwood & James, SA (collectively, Atwood), which operated out of New York and Brazil, and Michael A. Kardonick, who maintained multiple residences in Brooklyn; New York; Pembrook Pines, Florida; and Rio de Janeiro, and Gary R. Shapoff of Pittsford, New York. Kardonick and Shapoff are currently incarcerated in Federal custody. The court’s Order stems from a CFTC civil Complaint that charged the Defendants with fraudulently soliciting retail clients to trade foreign currency (forex) options and charged Atwood and Kardonick with misappropriating client funds (see CFTC Press Release and Complaint 5605-09, January 27, 2009). None of the Defendants has ever been registered with the CFTC, as required.
The consent Order, issued by the Honorable Charles Siragusa of the U.S. District Court for the Western District of New York, assesses a civil monetary penalty against the Defendants of $2,164,059.57, recognizes the criminal restitution award, and permanently bans Atwood, Shapoff, and Kardonick from registering, trading, soliciting and engaging in any CFTC-regulated activity.
The CFTC Complaint alleged that, from at least 2001 to 2008, Defendants fraudulently solicited funds from members of the general public located throughout the world, including the U.S. and the United Kingdom, to trade forex options. Through an internet website and other means, the Defendants made extraordinary and false claims regarding, among other things, Atwood’s trading abilities.
In fact, according to the Order, Atwood and Kardonick were not successful traders; no trading accounts in the name of Atwood or for the benefit of Atwood clients have been located; and, there was no evidence that Atwood had or has a relationship with a clearing firm. The only known trading accounts were Kardonick’s personal trading accounts, which from 2003 through September 2008 sustained net losses of approximately $1.7 million trading commodity futures and options.
The court’s Order also finds that Kardonick and Shapoff failed to disclose to clients that both have criminal convictions for mail and wire fraud, and that Shapoff was the subject of two CFTC reparations actions in which the allegations included misrepresentation, misuse of customer funds, nondisclosure, and order execution.
Related Criminal Acton
In a related criminal action brought by the U.S. Attorney’s Office for the Western District of New York, Kardonick and Shapoff pleaded guilty to charges of tax evasion and money laundering and are serving prison sentences of 120 months for Kardonick and 60 months for Shapoff.
A criminal restitution order of $2,164,059.57 was issued against Kardonick and Shapoff, jointly and severally.
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.
The CFTC appreciates the cooperation of the U.S. Attorney’s Office, Western District of New York, the FBI Field Western District of New York field office, the Brazilian Comissão de Valores Mobiliarios, and the U.K. Financial Conduct Authority in this matter.
CFTC Division of Enforcement staff members responsible for this case are James H. Holl III, Katherine M. Driscoll, Kara Mucha, Michelle Bougas, Rick Glaser, and Gretchen L. Lowe.
* * * * * *
CFTC’s Foreign Currency (Forex) Fraud Advisory
The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Foreign Currency Trading (Forex) Fraud Advisory, which states that the CFTC has witnessed a sharp rise in Forex trading scams in recent years and helps customers identify this potential fraud.
Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.
Media Contact
Dennis Holden
January 21, 2015
Federal Court in New York Imposes a $2.16 Million Penalty and Permanent Trading Bans against Michael A. Kardonick, Gary R. Shapoff, and Atwood & James for Forex Options Fraud and Misappropriation
Kardonick and Shapoff Are Serving Time in Prison after Pleading Guilty to Related Federal Criminal Charges
Washington DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that a federal court in Rochester, New York issued a consent Order against Atwood & James, Ltd. and Atwood & James, SA (collectively, Atwood), which operated out of New York and Brazil, and Michael A. Kardonick, who maintained multiple residences in Brooklyn; New York; Pembrook Pines, Florida; and Rio de Janeiro, and Gary R. Shapoff of Pittsford, New York. Kardonick and Shapoff are currently incarcerated in Federal custody. The court’s Order stems from a CFTC civil Complaint that charged the Defendants with fraudulently soliciting retail clients to trade foreign currency (forex) options and charged Atwood and Kardonick with misappropriating client funds (see CFTC Press Release and Complaint 5605-09, January 27, 2009). None of the Defendants has ever been registered with the CFTC, as required.
The consent Order, issued by the Honorable Charles Siragusa of the U.S. District Court for the Western District of New York, assesses a civil monetary penalty against the Defendants of $2,164,059.57, recognizes the criminal restitution award, and permanently bans Atwood, Shapoff, and Kardonick from registering, trading, soliciting and engaging in any CFTC-regulated activity.
The CFTC Complaint alleged that, from at least 2001 to 2008, Defendants fraudulently solicited funds from members of the general public located throughout the world, including the U.S. and the United Kingdom, to trade forex options. Through an internet website and other means, the Defendants made extraordinary and false claims regarding, among other things, Atwood’s trading abilities.
In fact, according to the Order, Atwood and Kardonick were not successful traders; no trading accounts in the name of Atwood or for the benefit of Atwood clients have been located; and, there was no evidence that Atwood had or has a relationship with a clearing firm. The only known trading accounts were Kardonick’s personal trading accounts, which from 2003 through September 2008 sustained net losses of approximately $1.7 million trading commodity futures and options.
The court’s Order also finds that Kardonick and Shapoff failed to disclose to clients that both have criminal convictions for mail and wire fraud, and that Shapoff was the subject of two CFTC reparations actions in which the allegations included misrepresentation, misuse of customer funds, nondisclosure, and order execution.
Related Criminal Acton
In a related criminal action brought by the U.S. Attorney’s Office for the Western District of New York, Kardonick and Shapoff pleaded guilty to charges of tax evasion and money laundering and are serving prison sentences of 120 months for Kardonick and 60 months for Shapoff.
A criminal restitution order of $2,164,059.57 was issued against Kardonick and Shapoff, jointly and severally.
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.
The CFTC appreciates the cooperation of the U.S. Attorney’s Office, Western District of New York, the FBI Field Western District of New York field office, the Brazilian Comissão de Valores Mobiliarios, and the U.K. Financial Conduct Authority in this matter.
CFTC Division of Enforcement staff members responsible for this case are James H. Holl III, Katherine M. Driscoll, Kara Mucha, Michelle Bougas, Rick Glaser, and Gretchen L. Lowe.
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CFTC’s Foreign Currency (Forex) Fraud Advisory
The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Foreign Currency Trading (Forex) Fraud Advisory, which states that the CFTC has witnessed a sharp rise in Forex trading scams in recent years and helps customers identify this potential fraud.
Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.
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Dennis Holden
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