FROM: U.S. DEFENSE DEPARTMENT
More Airstrikes Hit ISIL in Syria, Iraq
From a Combined Joint Task Force Operation Inherent Resolve News Release
SOUTHWEST ASIA, Jan. 30, 2015 – U.S. and coalition military forces continued to attack Islamic State of Iraq and the Levant terrorists in Syria, using fighter aircraft to conduct two airstrikes, Combined Joint Task Force Operation Inherent Resolve officials reported.
Separately, U.S. and coalition military forces conducted four airstrikes in Iraq, using attack and fighter aircraft against ISIL terrorists, officials reported.
Officials reported details of the latest strikes, which took place between 8 a.m., yesterday, and 8 a.m., today, local time, noting that assessments of results are based on initial reports.
Airstrikes in Syria
-- Near Kobani, two airstrikes struck two ISIL staging positions and destroyed two ISIL fighting positions and one ISIL vehicle.
Airstrikes in Iraq
-- Near Al Asad, an airstrike struck an ISIL firing position.
-- Near Tal Afar, three airstrikes struck two ISIL fighting positions and destroyed an ISIL building, an ISIL bunker and an ISIL shipping container.
All aircraft returned to base safely.
Part of Operation Inherent Resolve
The strikes were conducted as part of Operation Inherent Resolve, the operation to eliminate the ISIL terrorist group and the threat they pose to Iraq, Syria, the region, and the wider international community. The destruction of ISIL targets in Syria and Iraq further limits the terrorist group's ability to project terror and conduct operations.
Coalition nations conducting airstrikes in Iraq include the U.S., Australia, Belgium, Canada, Denmark, France, the Netherlands, and the United Kingdom. Coalition nations conducting airstrikes in Syria include the U.S., Bahrain, Jordan, Saudi Arabia, and the United Arab Emirates.
Friday, January 30, 2015
FUGITIVE AND SHIP OF GOLD RECOVERY LEADER, ARRESTED BY U.S. MARSHALS
FROM: U.S. MARSHALS SERVICE
January 28, 2015 Brian Babtist, Senior Inspector
Southern District of Ohio
Ship of Gold Treasure Hunter Arrested by the U.S. Marshals Service
Columbus, OH – Peter Tobin, United States Marshal for the Southern District of Ohio, announced today that Thomas Gregory Thompson, and his assistant Alison Louise Antekeier were arrested by the United States Marshals Service, Southern District of Florida (Florida Regional Fugitive Task Force) on arrest warrants issued by the United States District Court for the Southern District of Ohio.
On August 13, 2012, an arrest warrant was issued by United States District Judge Edmund A. Sargus Jr. for Thompson’s arrest after he failed to appear at various hearings for an on-going civil case that has been pending since 2006. At that hearing, attorneys who did appear on Thompson’s behalf stated they were hired by Thompson’s assistant, Alison Antekeier. The Court then directed that Antekeier appear to explain Thompson’s absence. Then, on 11/07/2012, after having failed to appear as directed, a similar arrest warrant was issued for Antekeier. The U.S. Marshals Service investigation, as well as various court documents and hearings, led investigators to believe Thompson and Antekeier have been on the run together ever since.
The multi-year investigation spanned the globe but ended not that far from the last documented sighting of the couple in Vero Beach, Florida. The U.S. Marshals Service in Southern Ohio worked in conjunction with the U.S. Marshals in West Palm Beach, Florida to conduct an exhaustive investigation that culminated in the arrest of Thompson and Antekeier at a local hotel. The couple offered no resistance at the time of the arrest and readily admitted to being the targets of the extensive investigation.
Thompson and Antekeier are being held in a local correctional facility pending appearance in the United States District Court for the Southern District of Florida. At a later point in time, the couple will be removed to the Southern District of Ohio for proceedings on their respective charges.
“The United States Marshals Service, in the Southern District of Ohio, along with the three Judicial Districts that comprise the state of Florida, as well as many others, worked tirelessly on this case. They utilized all available resources and were able to accomplish what many thought would be nearly impossible,” said U.S. Marshal Tobin. “Thompson was one of the most intelligent fugitives ever sought by the U.S. Marshals and he had vast financial resources at his disposal. This investigation and these arrests reflect great credit upon the Deputies of the U.S. Marshals Service and our agency as a whole,” concluded Tobin.
January 28, 2015 Brian Babtist, Senior Inspector
Southern District of Ohio
Ship of Gold Treasure Hunter Arrested by the U.S. Marshals Service
Columbus, OH – Peter Tobin, United States Marshal for the Southern District of Ohio, announced today that Thomas Gregory Thompson, and his assistant Alison Louise Antekeier were arrested by the United States Marshals Service, Southern District of Florida (Florida Regional Fugitive Task Force) on arrest warrants issued by the United States District Court for the Southern District of Ohio.
On August 13, 2012, an arrest warrant was issued by United States District Judge Edmund A. Sargus Jr. for Thompson’s arrest after he failed to appear at various hearings for an on-going civil case that has been pending since 2006. At that hearing, attorneys who did appear on Thompson’s behalf stated they were hired by Thompson’s assistant, Alison Antekeier. The Court then directed that Antekeier appear to explain Thompson’s absence. Then, on 11/07/2012, after having failed to appear as directed, a similar arrest warrant was issued for Antekeier. The U.S. Marshals Service investigation, as well as various court documents and hearings, led investigators to believe Thompson and Antekeier have been on the run together ever since.
The multi-year investigation spanned the globe but ended not that far from the last documented sighting of the couple in Vero Beach, Florida. The U.S. Marshals Service in Southern Ohio worked in conjunction with the U.S. Marshals in West Palm Beach, Florida to conduct an exhaustive investigation that culminated in the arrest of Thompson and Antekeier at a local hotel. The couple offered no resistance at the time of the arrest and readily admitted to being the targets of the extensive investigation.
Thompson and Antekeier are being held in a local correctional facility pending appearance in the United States District Court for the Southern District of Florida. At a later point in time, the couple will be removed to the Southern District of Ohio for proceedings on their respective charges.
“The United States Marshals Service, in the Southern District of Ohio, along with the three Judicial Districts that comprise the state of Florida, as well as many others, worked tirelessly on this case. They utilized all available resources and were able to accomplish what many thought would be nearly impossible,” said U.S. Marshal Tobin. “Thompson was one of the most intelligent fugitives ever sought by the U.S. Marshals and he had vast financial resources at his disposal. This investigation and these arrests reflect great credit upon the Deputies of the U.S. Marshals Service and our agency as a whole,” concluded Tobin.
SCIENTIST SENTENCED TO PRISON FOR ATOMIC ENERGY ACT VIOLATIONS
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, January 28, 2015
Former Los Alamos National Laboratory Scientist Sentenced to Prison for Atomic Energy Act Violations
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Damon P. Martinez for the District of New Mexico, Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division announced that Pedro Leonardo Mascheroni, a scientist formerly employed at the Los Alamos National Laboratory (LANL), was sentenced this morning for Atomic Energy Act and other violations relating to his communication of classified nuclear weapons data to a person he believed to be a Venezuelan government official.
Mascheroni, 79, a naturalized U.S. citizen from Argentina, was sentenced in Albuquerque, New Mexico, by U.S. District Judge William P. Johnson to 60 months in federal prison followed by the three years of supervised release. His wife, Marjorie Roxby Mascheroni, 71, previously was sentenced in August 2014 to a year and a day of imprisonment followed by three years of supervised release for her conviction on conspiracy and false statement charges.
“The public trusts that the government will do all it can to safeguard Restricted Data from being unlawfully transmitted to foreign nations not entitled to receive it,” said Assistant Attorney General Carlin. “We simply cannot allow people to violate their pledge to protect the classified nuclear weapons data with which they are entrusted. Today’s sentencing should leave no doubt that counterespionage investigations remain one of our most powerful tools to protect our national security. I thank the many people who worked to bring these convictions to fruition.”
“Our laws are designed to prevent ‘Restricted Data’ from falling into the wrong hands because of the potential harm to our national security,” said U.S. Attorney Martinez. “Those who work at our country’s national laboratories are charged with safeguarding that sensitive information, and we must and will vigorously prosecute anyone who compromises our nation’s nuclear secrets for profit. I commend the many agents, analysts and prosecutors who worked tirelessly to bring about the convictions in this case. I also thank the Los Alamos National Laboratory for cooperating fully in the investigation and prosecution of this case.”
“This case demonstrates the consequences that result when those charged with protecting our nation’s secrets violate the trust placed in them by the American people,” said Assistant Director Coleman. “Safeguarding classified material is vital to the public interest, and the FBI will continue to hold accountable those who knowingly and willfully threaten the national security of the United States through the unauthorized disclosure of protected information.”
“America trusts those who work with our country's classified information to keep it away from those who would harm us. Anyone who betrays that trust for his own gain puts our nation's security up for auction, and the price for us all could be very high indeed,” said Special Agent in Charge Lee. “Since World War II, the FBI has worked tirelessly to protect U.S. nuclear weapons data, and we are proud of our investigation in this case.”
Mascheroni, a Ph.D. physicist, worked as a scientist at LANL from 1979 to 1988 and held a security clearance that allowed him access to certain classified information, including “Restricted Data.” Roxby Mascheroni worked at LANL between 1981 and 2010, where her duties included technical writing and editing. She also held a security clearance at LANL that allowed her access to certain classified information, including “Restricted Data.” As defined under the Atomic Energy Act, “Restricted Data” is classified information concerning the design, manufacture or use of atomic weapons; the production of special nuclear material; or the use of special nuclear material in the production of energy.
Mascheroni and Roxby Mascheroni were indicted in September 2010 and charged with conspiracy to communicate and communicating Restricted Data to an individual with the intent to secure an advantage to a foreign nation, as well as conspiracy to convey and conveying classified information. The indictment also charged Mascheroni with concealing and retaining U.S. records with the intent to convert them to his own use and gain, and both defendants with making false statements.
Mascheroni pleaded guilty in June 2013, to counts seven and eight of the indictment, charging him with conversion of government property and retention of U.S. records, and counts 10 through 15, charging him with making false statements. Mascheroni also pleaded guilty to a felony information charging him with two counts of communication of Restricted Data and one count of retention of national defense information.
In entering his guilty plea, Mascheroni admitted that in November 2008 and July 2009, he unlawfully communicated Restricted Data to another individual with reason to believe that the data would be utilized to secure an advantage to Venezuela. He also admitted unlawfully converting Department of Energy information to his own use and selling the information in November 2008 and July 2009, and failing to deliver classified information relating to the United States’ national defense to appropriate authorities and instead unlawfully retaining the information in his home. Finally, Mascheroni admitted making materially false statements to the FBI when he was interviewed in October 2009.
Roxby Mascheroni pleaded guilty in June 2014, to count six of the indictment, charging her with conspiracy, and counts 16 through 22, charging her with making false statements. She also pleaded guilty to a felony information charging her with conspiracy to communicate Restricted Data. Roxby Mascheroni admitted that between October 2007 and October 2009, she conspired with Mascheroni to convey Restricted Data belonging to the United States to another person with reason to believe that the information would be used to secure an advantage to Venezuela. She also admitted making materially false statements to the FBI when she was interviewed in October 2009.
The indictment in this case did not allege that the government of Venezuela or anyone acting on its behalf sought or was passed any classified information, nor did it charge any Venezuelan government officials or anyone acting on their behalf with wrongdoing. The indictment also did not allege any wrongdoing by other individuals working at LANL.
This investigation was conducted by the FBI’s Albuquerque Division with assistance from the Department of Energy and LANL. The prosecution was handled by Senior Counsel Kathleen Kedian and Trial Attorney David Recker of the Counterespionage Section of the Justice Department’s National Security Division and Assistant U.S. Attorneys Fred J. Federici, Dean Tuckman and Holland S. Kastrin of the U.S. Attorney’s Office for the District of New Mexico.
Wednesday, January 28, 2015
Former Los Alamos National Laboratory Scientist Sentenced to Prison for Atomic Energy Act Violations
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Damon P. Martinez for the District of New Mexico, Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division announced that Pedro Leonardo Mascheroni, a scientist formerly employed at the Los Alamos National Laboratory (LANL), was sentenced this morning for Atomic Energy Act and other violations relating to his communication of classified nuclear weapons data to a person he believed to be a Venezuelan government official.
Mascheroni, 79, a naturalized U.S. citizen from Argentina, was sentenced in Albuquerque, New Mexico, by U.S. District Judge William P. Johnson to 60 months in federal prison followed by the three years of supervised release. His wife, Marjorie Roxby Mascheroni, 71, previously was sentenced in August 2014 to a year and a day of imprisonment followed by three years of supervised release for her conviction on conspiracy and false statement charges.
“The public trusts that the government will do all it can to safeguard Restricted Data from being unlawfully transmitted to foreign nations not entitled to receive it,” said Assistant Attorney General Carlin. “We simply cannot allow people to violate their pledge to protect the classified nuclear weapons data with which they are entrusted. Today’s sentencing should leave no doubt that counterespionage investigations remain one of our most powerful tools to protect our national security. I thank the many people who worked to bring these convictions to fruition.”
“Our laws are designed to prevent ‘Restricted Data’ from falling into the wrong hands because of the potential harm to our national security,” said U.S. Attorney Martinez. “Those who work at our country’s national laboratories are charged with safeguarding that sensitive information, and we must and will vigorously prosecute anyone who compromises our nation’s nuclear secrets for profit. I commend the many agents, analysts and prosecutors who worked tirelessly to bring about the convictions in this case. I also thank the Los Alamos National Laboratory for cooperating fully in the investigation and prosecution of this case.”
“This case demonstrates the consequences that result when those charged with protecting our nation’s secrets violate the trust placed in them by the American people,” said Assistant Director Coleman. “Safeguarding classified material is vital to the public interest, and the FBI will continue to hold accountable those who knowingly and willfully threaten the national security of the United States through the unauthorized disclosure of protected information.”
“America trusts those who work with our country's classified information to keep it away from those who would harm us. Anyone who betrays that trust for his own gain puts our nation's security up for auction, and the price for us all could be very high indeed,” said Special Agent in Charge Lee. “Since World War II, the FBI has worked tirelessly to protect U.S. nuclear weapons data, and we are proud of our investigation in this case.”
Mascheroni, a Ph.D. physicist, worked as a scientist at LANL from 1979 to 1988 and held a security clearance that allowed him access to certain classified information, including “Restricted Data.” Roxby Mascheroni worked at LANL between 1981 and 2010, where her duties included technical writing and editing. She also held a security clearance at LANL that allowed her access to certain classified information, including “Restricted Data.” As defined under the Atomic Energy Act, “Restricted Data” is classified information concerning the design, manufacture or use of atomic weapons; the production of special nuclear material; or the use of special nuclear material in the production of energy.
Mascheroni and Roxby Mascheroni were indicted in September 2010 and charged with conspiracy to communicate and communicating Restricted Data to an individual with the intent to secure an advantage to a foreign nation, as well as conspiracy to convey and conveying classified information. The indictment also charged Mascheroni with concealing and retaining U.S. records with the intent to convert them to his own use and gain, and both defendants with making false statements.
Mascheroni pleaded guilty in June 2013, to counts seven and eight of the indictment, charging him with conversion of government property and retention of U.S. records, and counts 10 through 15, charging him with making false statements. Mascheroni also pleaded guilty to a felony information charging him with two counts of communication of Restricted Data and one count of retention of national defense information.
In entering his guilty plea, Mascheroni admitted that in November 2008 and July 2009, he unlawfully communicated Restricted Data to another individual with reason to believe that the data would be utilized to secure an advantage to Venezuela. He also admitted unlawfully converting Department of Energy information to his own use and selling the information in November 2008 and July 2009, and failing to deliver classified information relating to the United States’ national defense to appropriate authorities and instead unlawfully retaining the information in his home. Finally, Mascheroni admitted making materially false statements to the FBI when he was interviewed in October 2009.
Roxby Mascheroni pleaded guilty in June 2014, to count six of the indictment, charging her with conspiracy, and counts 16 through 22, charging her with making false statements. She also pleaded guilty to a felony information charging her with conspiracy to communicate Restricted Data. Roxby Mascheroni admitted that between October 2007 and October 2009, she conspired with Mascheroni to convey Restricted Data belonging to the United States to another person with reason to believe that the information would be used to secure an advantage to Venezuela. She also admitted making materially false statements to the FBI when she was interviewed in October 2009.
The indictment in this case did not allege that the government of Venezuela or anyone acting on its behalf sought or was passed any classified information, nor did it charge any Venezuelan government officials or anyone acting on their behalf with wrongdoing. The indictment also did not allege any wrongdoing by other individuals working at LANL.
This investigation was conducted by the FBI’s Albuquerque Division with assistance from the Department of Energy and LANL. The prosecution was handled by Senior Counsel Kathleen Kedian and Trial Attorney David Recker of the Counterespionage Section of the Justice Department’s National Security Division and Assistant U.S. Attorneys Fred J. Federici, Dean Tuckman and Holland S. Kastrin of the U.S. Attorney’s Office for the District of New Mexico.
FACT SHEET ON IAEA PEACEFUL INITIATIVE
FROM: U.S. STATE DEPARTMENT
The IAEA Peaceful Uses Initiative and the NPT
Fact Sheet
Bureau of International Security and Nonproliferation
Washington, DC
January 1, 2015
The Initiative
During 2010, the International Atomic Energy Agency (IAEA) established the Peaceful Uses Initiative (PUI) to raise extrabudgetary contributions in support of Agency activities that promote the peaceful uses of nuclear technology.
The PUI supports implementation of Article IV of the Nuclear Non-Proliferation Treaty (NPT), which requires NPT States Parties that are “in a position to do so” to “cooperate in contributing alone or together with other States or international organizations to the further development of the applications of nuclear energy for peaceful purposes.”
Participation
At least 18 IAEA Member States and the European Union have together provided the PUI approximately $77 million in financial or in-kind contributions. The United States has provided over $50 million of this amount.
Impact
Since 2010, the PUI has provided the IAEA with additional flexibility and resources for high priority IAEA Member State projects, including responding to unforeseen challenges. These projects support human health, water resource management, food security, protection of the environment, nuclear power infrastructure development, and nuclear safety and security. They are administered by the IAEA Departments of Nuclear Energy, Nuclear Sciences and Applications, Technical Cooperation, and Nuclear Safety and Security.
The list of countries having benefited from PUI-supported IAEA projects has grown to more than 120 states worldwide. Examples of PUI-supported peaceful uses activities include:
Advancing Human Health: The PUI has supported the advancement of education and training in nuclear medicine, application of nuclear techniques to improve the treatment of cardiac patients, enhancement of early detection capabilities for Ebola in Africa, and strengthening of national capacities in states throughout the world to detect and treat cancer.
Supporting Water Resource Management: PUI funding has supported the design of a large-scale water management project to respond to sustained drought and widespread starvation and malnutrition in the Sahel region of Africa.
Ensuring Food Security: The PUI has helped to fund expanded laboratory capacities in Africa to improve the detection of transboundary animal diseases, and in Latin America to ensure food safety and reduce the fruit fly threat to agricultural resources. The PUI has also supported the development of a sustainable zone free of the tsetse fly in the Niayes region of Senegal to relieve the burden of trypanosomiasis and increase food and agricultural productivity.
Protecting the Environment: PUI contributions have helped to fund projects to better understand the effects of climate change, determine and trace pollution in marine waters, mitigate the effects of harmful algal blooms, and promote global actions against ocean acidification.
Developing Nuclear Power Infrastructure: The PUI has supported IAEA efforts to strengthen nuclear power infrastructure development in Member States, provide bilateral legislative assistance to nuclear newcomer countries, promote sustainable uranium mining practices, and enhance technical and management capacity in states considering nuclear power.
Promoting Nuclear Safety and Security: PUI contributions have helped to fund projects that strengthen the control of radioactive sources and radioactive waste, upgrade radiation protection infrastructures, support human resource development in nuclear security, and strengthen national capabilities for responding to nuclear and radiological emergencies.
Looking Forward
Though much has been achieved with the help of the PUI, there are always more needs to be met.
Providing funding to the PUI allows donors to address real needs in countries around the world, while simultaneously complementing their international assistance priorities and advancing the goals of the NPT. States are encouraged to explore with the IAEA Secretariat various projects to which they could contribute through the PUI, and to look for opportunities to partner with other governments on PUI-supported projects. Member States benefiting from the PUI are encouraged to highlight for others the impact of the PUI in advancing their national goals.
The IAEA Peaceful Uses Initiative and the NPT
Fact Sheet
Bureau of International Security and Nonproliferation
Washington, DC
January 1, 2015
The Initiative
During 2010, the International Atomic Energy Agency (IAEA) established the Peaceful Uses Initiative (PUI) to raise extrabudgetary contributions in support of Agency activities that promote the peaceful uses of nuclear technology.
The PUI supports implementation of Article IV of the Nuclear Non-Proliferation Treaty (NPT), which requires NPT States Parties that are “in a position to do so” to “cooperate in contributing alone or together with other States or international organizations to the further development of the applications of nuclear energy for peaceful purposes.”
Participation
At least 18 IAEA Member States and the European Union have together provided the PUI approximately $77 million in financial or in-kind contributions. The United States has provided over $50 million of this amount.
Impact
Since 2010, the PUI has provided the IAEA with additional flexibility and resources for high priority IAEA Member State projects, including responding to unforeseen challenges. These projects support human health, water resource management, food security, protection of the environment, nuclear power infrastructure development, and nuclear safety and security. They are administered by the IAEA Departments of Nuclear Energy, Nuclear Sciences and Applications, Technical Cooperation, and Nuclear Safety and Security.
The list of countries having benefited from PUI-supported IAEA projects has grown to more than 120 states worldwide. Examples of PUI-supported peaceful uses activities include:
Advancing Human Health: The PUI has supported the advancement of education and training in nuclear medicine, application of nuclear techniques to improve the treatment of cardiac patients, enhancement of early detection capabilities for Ebola in Africa, and strengthening of national capacities in states throughout the world to detect and treat cancer.
Supporting Water Resource Management: PUI funding has supported the design of a large-scale water management project to respond to sustained drought and widespread starvation and malnutrition in the Sahel region of Africa.
Ensuring Food Security: The PUI has helped to fund expanded laboratory capacities in Africa to improve the detection of transboundary animal diseases, and in Latin America to ensure food safety and reduce the fruit fly threat to agricultural resources. The PUI has also supported the development of a sustainable zone free of the tsetse fly in the Niayes region of Senegal to relieve the burden of trypanosomiasis and increase food and agricultural productivity.
Protecting the Environment: PUI contributions have helped to fund projects to better understand the effects of climate change, determine and trace pollution in marine waters, mitigate the effects of harmful algal blooms, and promote global actions against ocean acidification.
Developing Nuclear Power Infrastructure: The PUI has supported IAEA efforts to strengthen nuclear power infrastructure development in Member States, provide bilateral legislative assistance to nuclear newcomer countries, promote sustainable uranium mining practices, and enhance technical and management capacity in states considering nuclear power.
Promoting Nuclear Safety and Security: PUI contributions have helped to fund projects that strengthen the control of radioactive sources and radioactive waste, upgrade radiation protection infrastructures, support human resource development in nuclear security, and strengthen national capabilities for responding to nuclear and radiological emergencies.
Looking Forward
Though much has been achieved with the help of the PUI, there are always more needs to be met.
Providing funding to the PUI allows donors to address real needs in countries around the world, while simultaneously complementing their international assistance priorities and advancing the goals of the NPT. States are encouraged to explore with the IAEA Secretariat various projects to which they could contribute through the PUI, and to look for opportunities to partner with other governments on PUI-supported projects. Member States benefiting from the PUI are encouraged to highlight for others the impact of the PUI in advancing their national goals.
Thursday, January 29, 2015
U.S. CONDEMNS TERRORIST ATTACKS IN EGYPT
FROM: U.S. STATE DEPARTMENT
The United States Condemns the Terrorist Attacks in Egypt
Press Statement
Jen Psaki
Department Spokesperson
Washington, DC
January 29, 2015
The United States strongly condemns today’s terrorist attacks in Egypt’s North Sinai Governorate in which at least twenty nine Egyptian citizens were killed and dozens others wounded. We express our sincere condolences to the victims, their families, and the government and people of Egypt.
A prosperous and strong Egypt requires an environment of security and stability, and the United States remains steadfast in its support of the Egyptian government’s efforts to combat the threat of terrorism in Egypt as part of our continuing commitment to the strategic partnership between our two countries.
The United States Condemns the Terrorist Attacks in Egypt
Press Statement
Jen Psaki
Department Spokesperson
Washington, DC
January 29, 2015
The United States strongly condemns today’s terrorist attacks in Egypt’s North Sinai Governorate in which at least twenty nine Egyptian citizens were killed and dozens others wounded. We express our sincere condolences to the victims, their families, and the government and people of Egypt.
A prosperous and strong Egypt requires an environment of security and stability, and the United States remains steadfast in its support of the Egyptian government’s efforts to combat the threat of terrorism in Egypt as part of our continuing commitment to the strategic partnership between our two countries.
U.S. CONCERNED REGARDING TRIAL OF ZONE 9 BLOGGERS IN ETHIOPIA
FROM: U.S. STATE DEPARTMENT
Zone 9 Bloggers Move to Trial on Amended ATP Charges in Ethiopia
Press Statement
Jen Psaki
Department Spokesperson
Washington, DC
January 29, 2015
The United States is concerned by the Ethiopian Federal High Court’s January 28, 2015, decision to proceed with the trial of six bloggers and three independent journalists on charges under the Anti-Terrorism Proclamation. The decision undermines a free and open media environment—critical elements for credible and democratic elections, which Ethiopia will hold in May 2015.
We urge the Ethiopian government to ensure that the trial is fair, transparent, and in compliance with Ethiopia’s constitutional guarantees and international human rights obligations. We also urge the Ethiopian government to ensure that the trial is free of political influence and continues to be open to public observation.
The use of the Anti-Terrorism Proclamation in previous cases against journalists, activists, and opposition political figures raises serious questions about the implementation of the law and about the sanctity of Ethiopians’ constitutionally guaranteed rights to freedom of the press and freedom of expression.
Freedom of expression and freedom of the press are fundamental elements of a democratic society. We call on the government of Ethiopia to support freedom of expression and freedom of the press to demonstrate its commitment to democracy as it approaches its May 2015 national elections.
Zone 9 Bloggers Move to Trial on Amended ATP Charges in Ethiopia
Press Statement
Jen Psaki
Department Spokesperson
Washington, DC
January 29, 2015
The United States is concerned by the Ethiopian Federal High Court’s January 28, 2015, decision to proceed with the trial of six bloggers and three independent journalists on charges under the Anti-Terrorism Proclamation. The decision undermines a free and open media environment—critical elements for credible and democratic elections, which Ethiopia will hold in May 2015.
We urge the Ethiopian government to ensure that the trial is fair, transparent, and in compliance with Ethiopia’s constitutional guarantees and international human rights obligations. We also urge the Ethiopian government to ensure that the trial is free of political influence and continues to be open to public observation.
The use of the Anti-Terrorism Proclamation in previous cases against journalists, activists, and opposition political figures raises serious questions about the implementation of the law and about the sanctity of Ethiopians’ constitutionally guaranteed rights to freedom of the press and freedom of expression.
Freedom of expression and freedom of the press are fundamental elements of a democratic society. We call on the government of Ethiopia to support freedom of expression and freedom of the press to demonstrate its commitment to democracy as it approaches its May 2015 national elections.
NASA'S SOIL MOISTURE ACTIVE PASSIVE OBSERVATORY WAITS
The sun sets behind Space Launch Complex 2 (SLC-2) with the Delta II rocket and the Soil Moisture Active Passive (SMAP) observatory protected by the service structure on Tuesday, Jan. 27, 2015, at Vandenberg Air Force Base, Calif. SMAP is NASA’s first Earth-observing satellite designed to collect global observations of surface soil moisture and its freeze/thaw state. SMAP will provide high resolution global measurements of soil moisture from space. The data will be used to enhance scientists' understanding of the processes that link Earth's water, energy, and carbon cycles. Image Credit: NASA/Bill Ingalls.
U.S. EXPRESSES DEEP CONCERN OVER ARRESTS/DETENTIONS IN EQUATORIAL GUINEA
FROM: U.S. STATE DEPARTMENT
Equatorial Guinea: Concerns Regarding Arrests and Continuing Detentions
Press Statement
Jen Psaki
Department Spokesperson
Washington, DC
January 28, 2015
The United States is deeply concerned by reports of the arrests and indefinite detentions of Equatoguinean citizens protesting the expenditures incurred by the Government of Equatorial Guinea to host the ongoing Cup of African Nations (CAN) football tournament. Celestino Okenve, a member of the opposition party Popular Union, and Antonio Nguema were both detained on January 14, and Miguel Mbomio was arrested on January 16, accused of distributing or possessing literature calling for a peaceful public boycott of the CAN football matches. All three remain in police custody in the mainland city of Bata, though no official charges have been filed.
We are also concerned by reports that one of the detainees may have been assaulted by the police while in custody and that these individuals have not been allowed access to legal counsel. Okenve, Nguema and Mbomio have been held without charges for more than the 72 hours permitted under Equatorial Guinea law and should be released immediately.
We call upon the Government of Equatorial Guinea to ensure the humane treatment of individuals arrested, in accordance with the Constitution of Equatorial Guinea and the International Covenant on Civil and Political Rights, which Equatorial Guinea has ratified. We also call upon Government of Equatorial Guinea authorities to adhere to protections afforded to all Equatoguinean citizens, who under Equatorial Guinea law are entitled to protection against arbitrary arrest and to fair trial guarantees, including the right to legal counsel. They have the right to be informed of the charges against them and are entitled to a prompt hearing or release within the mandated time period allowed by law.
Equatorial Guinea must respect the right to freedom of expression for all of its citizens, including members of opposition political parties.
Equatorial Guinea: Concerns Regarding Arrests and Continuing Detentions
Press Statement
Jen Psaki
Department Spokesperson
Washington, DC
January 28, 2015
The United States is deeply concerned by reports of the arrests and indefinite detentions of Equatoguinean citizens protesting the expenditures incurred by the Government of Equatorial Guinea to host the ongoing Cup of African Nations (CAN) football tournament. Celestino Okenve, a member of the opposition party Popular Union, and Antonio Nguema were both detained on January 14, and Miguel Mbomio was arrested on January 16, accused of distributing or possessing literature calling for a peaceful public boycott of the CAN football matches. All three remain in police custody in the mainland city of Bata, though no official charges have been filed.
We are also concerned by reports that one of the detainees may have been assaulted by the police while in custody and that these individuals have not been allowed access to legal counsel. Okenve, Nguema and Mbomio have been held without charges for more than the 72 hours permitted under Equatorial Guinea law and should be released immediately.
We call upon the Government of Equatorial Guinea to ensure the humane treatment of individuals arrested, in accordance with the Constitution of Equatorial Guinea and the International Covenant on Civil and Political Rights, which Equatorial Guinea has ratified. We also call upon Government of Equatorial Guinea authorities to adhere to protections afforded to all Equatoguinean citizens, who under Equatorial Guinea law are entitled to protection against arbitrary arrest and to fair trial guarantees, including the right to legal counsel. They have the right to be informed of the charges against them and are entitled to a prompt hearing or release within the mandated time period allowed by law.
Equatorial Guinea must respect the right to freedom of expression for all of its citizens, including members of opposition political parties.
STATEMENT FROM NSC ON MEETING WITH FRENCH MINISTER OF THE INTERIOR CAZENEUVE
FROM: THE WHITE HOUSE
January 28, 2015
Statement by NSC Spokesperson Bernadette Meehan on Lisa O. Monaco’s Meeting with French Minister of the Interior Bernard Cazeneuve
Statement by NSC Spokesperson Bernadette Meehan on Assistant to the President for Homeland Security and Counterterrorism Lisa O. Monaco’s Meeting with French Minister of the Interior Bernard Cazeneuve
Today, Assistant to the President for Homeland Security and Counterterrorism Lisa Monaco concluded a series of meetings with French security officials to discuss way to strengthen counterterrorism cooperation in the wake of the tragic terrorist attacks in Paris earlier this month. During her meeting with French Minister of the Interior Bernard Cazeneuve, the two discussed opportunities to enhance strong and ongoing U.S.-French cooperation to disrupt terror plots and prevent future attacks. Ms. Monaco reviewed information from U.S. law enforcement and intelligence channels that has been shared with French authorities, and Minister Cazeneuve gave an overview of the attacks. Minister Cazeneuve thanked Ms. Monaco for unwavering U.S. support to France in the aftermath of the attacks, expressing appreciation for intelligence and law enforcement cooperation, President Obama’s strong statements of support, calls to President Hollande on January 7 and 20, and the President’s visit to the French Embassy in Washington, D.C. on January 8 immediately following the attack. Ms. Monaco reiterated that the United States will continue to support France in its investigation as French authorities work to identify, apprehend, and bring to justice those who helped plan or enable these attacks. They also discussed governmental responses in addressing the full life cycle of radicalization and programs to prevent violent extremism.
January 28, 2015
Statement by NSC Spokesperson Bernadette Meehan on Lisa O. Monaco’s Meeting with French Minister of the Interior Bernard Cazeneuve
Statement by NSC Spokesperson Bernadette Meehan on Assistant to the President for Homeland Security and Counterterrorism Lisa O. Monaco’s Meeting with French Minister of the Interior Bernard Cazeneuve
Today, Assistant to the President for Homeland Security and Counterterrorism Lisa Monaco concluded a series of meetings with French security officials to discuss way to strengthen counterterrorism cooperation in the wake of the tragic terrorist attacks in Paris earlier this month. During her meeting with French Minister of the Interior Bernard Cazeneuve, the two discussed opportunities to enhance strong and ongoing U.S.-French cooperation to disrupt terror plots and prevent future attacks. Ms. Monaco reviewed information from U.S. law enforcement and intelligence channels that has been shared with French authorities, and Minister Cazeneuve gave an overview of the attacks. Minister Cazeneuve thanked Ms. Monaco for unwavering U.S. support to France in the aftermath of the attacks, expressing appreciation for intelligence and law enforcement cooperation, President Obama’s strong statements of support, calls to President Hollande on January 7 and 20, and the President’s visit to the French Embassy in Washington, D.C. on January 8 immediately following the attack. Ms. Monaco reiterated that the United States will continue to support France in its investigation as French authorities work to identify, apprehend, and bring to justice those who helped plan or enable these attacks. They also discussed governmental responses in addressing the full life cycle of radicalization and programs to prevent violent extremism.
HOME HEALTH COMPANY OWNER RECEIVES 106 MONTH PRISON SENTENCE FOR FRAUD
FROM: U.S. JUSTICE DEPARTMENT
Monday, January 26, 2015
Owner of Miami Home Health Company Sentenced to 106 Months in Prison for $30 Million Health Care Fraud Scheme
The owner and operator of a Miami home health care agency was sentenced today to 106 months in prison for his participation in a $30 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Ramon Regueira, 66, of Miami, pleaded guilty to one count of conspiracy to commit health care fraud on Nov. 13, 2014. In addition to the prison sentence, U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida ordered Regueira to pay $21 million in restitution, both jointly and severally with his co-conspirator.
According to his plea agreement, Regueira was an owner of Nation’s Best Care Home Health Corp. (Nation’s Best), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Regueira admitted that he and his co-conspirators operated Nation’s Best for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or not provided.
Specifically, Regueira admitted that he and his co-conspirators paid kickbacks and bribes to patient recruiters who provided patients to Nation’s Best, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services. Regueira and his co-conspirators then used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for unnecessary home health care services.
From January 2007 through January 2011, Nation’s Best submitted approximately $30 million in claims for home health services that were not medically necessary or not provided, and Medicare paid approximately $21 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer and Trial Attorney Kelly Graves of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Monday, January 26, 2015
Owner of Miami Home Health Company Sentenced to 106 Months in Prison for $30 Million Health Care Fraud Scheme
The owner and operator of a Miami home health care agency was sentenced today to 106 months in prison for his participation in a $30 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Ramon Regueira, 66, of Miami, pleaded guilty to one count of conspiracy to commit health care fraud on Nov. 13, 2014. In addition to the prison sentence, U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida ordered Regueira to pay $21 million in restitution, both jointly and severally with his co-conspirator.
According to his plea agreement, Regueira was an owner of Nation’s Best Care Home Health Corp. (Nation’s Best), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Regueira admitted that he and his co-conspirators operated Nation’s Best for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or not provided.
Specifically, Regueira admitted that he and his co-conspirators paid kickbacks and bribes to patient recruiters who provided patients to Nation’s Best, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services. Regueira and his co-conspirators then used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for unnecessary home health care services.
From January 2007 through January 2011, Nation’s Best submitted approximately $30 million in claims for home health services that were not medically necessary or not provided, and Medicare paid approximately $21 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer and Trial Attorney Kelly Graves of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
ALLEGED FUGITIVE SEX OFFENDER APPREHENDED IN SAUDI ARABIA
FROM: U.S. MARSHALS SERVICE
Contact:
January 26, 2015 Nathan Alexander, Deputy U.S. Marshal
District of Arizona - Tucson
Fugitive Sex Offender Captured in Saudi Arabia
Tucson, AZ – U.S. Marshals tracked Matthew Lynn Brewster, age 50, formerly of Tucson, Arizona, to Saudi Arabia where he was detained and subsequently returned to the United States earlier today.
In April 2014, the Pima County Sheriff's Office obtained a warrant for the arrest of Matthew L. Brewster, which charged him with multiple counts of Sexual Conduct with a Minor under the age of Fifteen, a class two felony. Pima County Sheriff's Office officials enlisted the assistance of the United States Marshals led Arizona WANTED Violent Offender Fugitive Task Force, which includes the Pima County Sheriff’s Office Fugitive Investigative Strike Team to locate and arrest Brewster.
Deputy U.S. Marshals quickly developed information which indicated Brewster had fled the United States in 2010 and traveled to Saudi Arabia. An investigation by task force members in Tucson and the United States Marshals Service National Sex Offender Targeting Center revealed Brewster was residing in a compound in Khamis Mushayt, Saudi Arabia, and had no intention of returning to the United States. Deputy U.S. Marshals initiated an international investigation and coordinated with foreign authorities to locate and detain Brewster in Saudi Arabia and have him returned to the United States.
“This criminal and other sex offenders are at the forefront of our investigations,” said District of Arizona United States Marshal David P. Gonzales. “Despite the best attempts of fugitive sex offenders to avoid the law, the U.S. Marshals Service prioritizes their apprehension, ensuring their whereabouts are known and preventing other innocent children and adults from being victimized. Regardless of where these criminals seek refuge, the United States Marshals Service will relentlessly pursue them.”
In January of 2015, Brewster was taken into custody by the Saudi Arabian Immigration Service and held pending deportation proceedings. On January 26th, Brewster was escorted back to Los Angeles, CA by Saudi Arabian Immigration Officers, where he was arrested by members of the U.S. Marshals Service Pacific Southwest Regional Fugitive Task Force. Brewster is being held in California pending extradition to Arizona to face charges on six separate counts of Sexual Conduct with a Minor, which pertain to various acts of sexual conduct that he allegedly committed with a minor over a three year period in Tucson.
The federal, state, and local agencies that comprise the Arizona WANTED Violent Offender Task Force (Tucson Metro Division) include: U.S. Marshals Service; Immigration and Customs Enforcement; Arizona Department of Public Safety; Pima County Adult Probation Office; Arizona Department of Corrections; Tucson Police Department; U.S. Border Patrol; Pima County Sheriff’s Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The United States Marshals Service is the nation’s oldest federal law enforcement agency. Annually, U.S. Marshals arrest more than 50 percent of all federal fugitives and serve more federal warrants than all other federal agencies combined.
Contact:
January 26, 2015 Nathan Alexander, Deputy U.S. Marshal
District of Arizona - Tucson
Fugitive Sex Offender Captured in Saudi Arabia
Tucson, AZ – U.S. Marshals tracked Matthew Lynn Brewster, age 50, formerly of Tucson, Arizona, to Saudi Arabia where he was detained and subsequently returned to the United States earlier today.
In April 2014, the Pima County Sheriff's Office obtained a warrant for the arrest of Matthew L. Brewster, which charged him with multiple counts of Sexual Conduct with a Minor under the age of Fifteen, a class two felony. Pima County Sheriff's Office officials enlisted the assistance of the United States Marshals led Arizona WANTED Violent Offender Fugitive Task Force, which includes the Pima County Sheriff’s Office Fugitive Investigative Strike Team to locate and arrest Brewster.
Deputy U.S. Marshals quickly developed information which indicated Brewster had fled the United States in 2010 and traveled to Saudi Arabia. An investigation by task force members in Tucson and the United States Marshals Service National Sex Offender Targeting Center revealed Brewster was residing in a compound in Khamis Mushayt, Saudi Arabia, and had no intention of returning to the United States. Deputy U.S. Marshals initiated an international investigation and coordinated with foreign authorities to locate and detain Brewster in Saudi Arabia and have him returned to the United States.
“This criminal and other sex offenders are at the forefront of our investigations,” said District of Arizona United States Marshal David P. Gonzales. “Despite the best attempts of fugitive sex offenders to avoid the law, the U.S. Marshals Service prioritizes their apprehension, ensuring their whereabouts are known and preventing other innocent children and adults from being victimized. Regardless of where these criminals seek refuge, the United States Marshals Service will relentlessly pursue them.”
In January of 2015, Brewster was taken into custody by the Saudi Arabian Immigration Service and held pending deportation proceedings. On January 26th, Brewster was escorted back to Los Angeles, CA by Saudi Arabian Immigration Officers, where he was arrested by members of the U.S. Marshals Service Pacific Southwest Regional Fugitive Task Force. Brewster is being held in California pending extradition to Arizona to face charges on six separate counts of Sexual Conduct with a Minor, which pertain to various acts of sexual conduct that he allegedly committed with a minor over a three year period in Tucson.
The federal, state, and local agencies that comprise the Arizona WANTED Violent Offender Task Force (Tucson Metro Division) include: U.S. Marshals Service; Immigration and Customs Enforcement; Arizona Department of Public Safety; Pima County Adult Probation Office; Arizona Department of Corrections; Tucson Police Department; U.S. Border Patrol; Pima County Sheriff’s Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The United States Marshals Service is the nation’s oldest federal law enforcement agency. Annually, U.S. Marshals arrest more than 50 percent of all federal fugitives and serve more federal warrants than all other federal agencies combined.
DOJ AND HUNTSVILLE, ALABAMA CITY SCHOOLS FILE CONSENT ORDER TO SETTLE "ATTENDANCE ZONES" ISSUES
FROM: U.S. JUSTICE DEPARTMENT
Monday, January 26, 2015
Justice Department and Huntsville City Schools Announce Proposed Consent Decree to Provide Equal Educational Opportunities
The Department of Justice announced today that it has filed a proposed consent order in Hereford v. Huntsville Board of Education, a longstanding school desegregation case, to resolve issues related to school attendance zones, black students’ access to quality academic offerings and student discipline, among other areas. The department and counsel for the Huntsville City Schools in Alabama jointly filed the proposed consent order in district court in Birmingham, and are now seeking public comment prior to presentation of the proposed consent order to the Huntsville Board of Education and to the court for final approval.
The proposed agreement, if approved, would resolve the parties’ dispute over the district’s 2014 plan to reconfigure student attendance zones. The Justice Department had objected that the plan did not further desegregation or address racial inequalities in students’ access to quality academic offerings. If approved by the court, the proposed consent order would require the district to provide equal educational opportunities to black students by taking steps including:
revising attendance zones and growing and strengthening magnet programs to improve diversity at many of its schools;
expanding access for black students to pre-kindergarten, gifted programs, advanced course offerings such as Advanced Placement and International Baccalaureate, academic after-school programs, and college counseling;
implementing measures to promote faculty and administrator diversity;
ensuring that all students are aware of and can equally participate in extracurricular activities;
creating positive, inclusive school climates, and ensuring that student discipline is fair, non-discriminatory, and does not unnecessarily remove students from classrooms;
establishing a desegregation advisory committee consisting of students and parents to advise the district and inform the court about implementation of the consent order;
providing professional development for teachers on such topics as strategies for teaching students from diverse backgrounds, understanding implicit bias, and supporting positive student behavior; and
continuously monitoring racial disparities to ensure meaningful and sustained improvement in areas including student performance, students’ access to courses, and rates of student discipline.
“A quality education is the key that opens the door to a better future,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “This agreement aims to ensure that African American students in Huntsville schools can access that quality education on an equal basis. We look forward to working with the district to implement the measures required by this proposed order, if approved, and eventually bring this case to successful resolution after so many years.”
“The Department of Justice is committed to ensuring that Alabama schools provide African American students, and all students, with the equal educational opportunities guaranteed under federal law,” said U.S. Attorney Joyce White Vance for the Northern District of Alabama.
If the proposed consent order is approved, the Justice Department will monitor and enforce the district’s compliance. The district may seek a declaration of unitary status and dismissal of the case when it can demonstrate sustained compliance with the terms of the consent order.
Monday, January 26, 2015
Justice Department and Huntsville City Schools Announce Proposed Consent Decree to Provide Equal Educational Opportunities
The Department of Justice announced today that it has filed a proposed consent order in Hereford v. Huntsville Board of Education, a longstanding school desegregation case, to resolve issues related to school attendance zones, black students’ access to quality academic offerings and student discipline, among other areas. The department and counsel for the Huntsville City Schools in Alabama jointly filed the proposed consent order in district court in Birmingham, and are now seeking public comment prior to presentation of the proposed consent order to the Huntsville Board of Education and to the court for final approval.
The proposed agreement, if approved, would resolve the parties’ dispute over the district’s 2014 plan to reconfigure student attendance zones. The Justice Department had objected that the plan did not further desegregation or address racial inequalities in students’ access to quality academic offerings. If approved by the court, the proposed consent order would require the district to provide equal educational opportunities to black students by taking steps including:
revising attendance zones and growing and strengthening magnet programs to improve diversity at many of its schools;
expanding access for black students to pre-kindergarten, gifted programs, advanced course offerings such as Advanced Placement and International Baccalaureate, academic after-school programs, and college counseling;
implementing measures to promote faculty and administrator diversity;
ensuring that all students are aware of and can equally participate in extracurricular activities;
creating positive, inclusive school climates, and ensuring that student discipline is fair, non-discriminatory, and does not unnecessarily remove students from classrooms;
establishing a desegregation advisory committee consisting of students and parents to advise the district and inform the court about implementation of the consent order;
providing professional development for teachers on such topics as strategies for teaching students from diverse backgrounds, understanding implicit bias, and supporting positive student behavior; and
continuously monitoring racial disparities to ensure meaningful and sustained improvement in areas including student performance, students’ access to courses, and rates of student discipline.
“A quality education is the key that opens the door to a better future,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “This agreement aims to ensure that African American students in Huntsville schools can access that quality education on an equal basis. We look forward to working with the district to implement the measures required by this proposed order, if approved, and eventually bring this case to successful resolution after so many years.”
“The Department of Justice is committed to ensuring that Alabama schools provide African American students, and all students, with the equal educational opportunities guaranteed under federal law,” said U.S. Attorney Joyce White Vance for the Northern District of Alabama.
If the proposed consent order is approved, the Justice Department will monitor and enforce the district’s compliance. The district may seek a declaration of unitary status and dismissal of the case when it can demonstrate sustained compliance with the terms of the consent order.
Wednesday, January 28, 2015
ATTORNEY GENERAL-DESIGNATE LYNCH MAKES OPENING STATEMENT AT SENATE CONFORMATION HEARING
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, January 28, 2015
Opening Statement of Attorney General-Designate Loretta E. Lynch at U.S. Senate Confirmation Hearing
Attorney General-Designate Loretta E. Lynch released the following statement today at the opening of the U.S. Senate confirmation hearing:
“Thank you, Chairman Grassley, Senator Leahy, and distinguished members of the Committee. I am honored to appear before you in this historic chamber, among so many dedicated public servants. I want to thank you for your time this morning – and President Obama for the trust he has placed in me by nominating me to serve as Attorney General of the United States.
“It is a particular privilege to be joined today by members of my family – including my husband, Stephen Hargrove, my father, Rev. Lorenzo Lynch, my brother, Rev. Leonzo Lynch and his wife NiCole, as well as several other family members who are here today.
“Mr. Chairman, one of the privileges of my position as United States Attorney for the Eastern District of New York is welcoming new attorneys into the office and administering to them the oath of office. It is a transformative moment in the life of a young prosecutor. As they stand before me, prepared to pledge their honor and their integrity, I remind them that they are making their oath not to me, not to my office, or even to our Attorney General, but to our Constitution, the fundamental foundation for all that we do. It is that document and the ideals embodied therein to which I have devoted my professional life. Senators, if confirmed as Attorney General I pledge to you and to the American people that the Constitution, the bedrock of our system of justice, will be my lodestar as I exercise the power and responsibility of that position.
“I owe much to those who have worked to make its promise real for all Americans, beginning with my own family. All of them – and so many others – have supported me on the path that has brought me to this moment, not only through their unwavering love and support, but through their shining examples, and the values that shaped my upbringing.
“My mother, Lorine, who was unable to travel here today, is a retired English teacher and librarian for whom education was the key to a better life. She recalls people in her rural community pressing a dime or a quarter into her hands to support her college education. As a young woman she refused to use segregated restrooms because they did not represent the America in which she believed. She instilled in me an abiding love of literature and learning, and taught me the value of hard work and sacrifice. My father, Lorenzo, is a fourth-generation Baptist preacher who in the early 1960’s opened his Greensboro church to those planning sit-ins and marches, standing with them while carrying me on his shoulders. He has always matched his principles with action – encouraging me to think for myself, but reminding me that we all gain the most when we act in service to others.
“It was the values my parents instilled in me that led me to the Eastern District of New York, and from my parents I gained the tenacity and resolve to take on violent criminals, to confront political corruption and to disrupt organized crime. They also gave me the insight and compassion to sit with the victims of crime and share their loss. Their values have sustained me as I have twice had the privilege of serving as United States Attorney, leading an exceptional office staffed by outstanding public servants, and these values guide and motivate me even today.
“Should I be confirmed as Attorney General, my highest priorities will continue to be to ensure the safety of our citizens, to protect the most vulnerable among us from crime and abuse, and to strengthen the vital relationships between America’s brave law enforcement officers and the communities they are entrusted to serve.
“In a world of complex and evolving threats, protecting the American people from terrorism must remain the primary mission of today’s Department of Justice. If confirmed, I will work with colleagues across the executive branch to use every available tool to continue disrupting catastrophic attacks against our homeland and bringing terrorists to justice. I will draw upon my extensive experience in the Eastern District of New York, which has tried more terrorism cases since 9/11 than any other office. We have investigated and prosecuted terrorist individuals and groups that threaten our nation and its people – including those who have plotted to attack New York City’s subway system, JFK airport, the Federal Reserve Bank of New York, and U.S. troops stationed abroad, as well as those who have provided material support to foreign terrorist organizations. And I pledge to discharge my duties always mindful of the need to protect not just American citizens but also American values.
“If confirmed, I intend to expand and enhance our capabilities in order to effectively prevent ever-evolving attacks in cyberspace, expose wrongdoers, and bring perpetrators to justice. In my current position, I am proud to lead an office that has significant experience prosecuting complex, international cybercrime, including high-tech intrusions at key financial and public sector institutions. If I am confirmed, I will continue to use the combined skills and experience of our law enforcement partners, the department’s Criminal and National Security Divisions, and the United States Attorney community to defeat and to hold accountable those who would imperil the safety and security of our citizens through cybercrime.
“I will also do everything I can to ensure that we are safeguarding the most vulnerable among us. During my tenure as U.S. Attorney, the Eastern District of New York has led the prosecution of financial fraudsters who have callously targeted hard working Americans, including the deaf and the elderly, and stolen their trust and their hard-earned savings. We have taken action against abusers in over one hundred child exploitation and child pornography cases, and have prosecuted brutal international human trafficking rings that sold victims as young as 14 and 15 years old into sexual slavery. If confirmed as Attorney General, I will continue to build upon the department’s record of vigorously prosecuting those who prey on those most in need of our protection and I will continue to provide strong and effective assistance to survivors who we must both support and empower.
“Throughout my career as a prosecutor, it has been my honor to work hand in hand with dedicated law enforcement officers and agents who risk their lives every day in the protection of the communities we all serve. I have served with them. I have learned from them. I am a better prosecutor because of them. Few things have pained me more than the recent reports of tension and division between law enforcement and the communities we serve. If confirmed as Attorney General, one of my key priorities would be to work to strengthen the vital relationships between our courageous law enforcement personnel and all the communities we serve. In my career, I have seen this relationship flourish – I have seen law enforcement forge unbreakable bonds with community residents and have seen violence-ravaged communities come together to honor officers who risked all to protect them. As Attorney General, I will draw all voices into this important discussion.
“In that same spirit, I look forward to fostering a new and improved relationship with this committee, the United States Senate, and the entire United States Congress – a relationship based on mutual respect and constitutional balance. Ultimately, I know we all share the same goal and commitment: to protect and serve the American people.
“Now, I recognize that we face many challenges in the years ahead. But I have seen – in my own life and in my own family – how dedicated men and women can answer the call to achieve great things for themselves, for their country, and for generations to come.
“My father – that young minister who carried me on his shoulders – has answered that call. As has my mother, that courageous young teacher who refused to let Jim Crow define her. Standing with them are my uncles and cousins who served in Vietnam – one of whom is with me here today - and my older brother, a Navy SEAL, who answered that call with their service to our country.
“As I come before you today in this historic chamber, I still stand on my father’s shoulders, as well as on the shoulders of all those who have gone before me and who dreamed of making the promise of America a reality for all and worked to achieve that goal.
“I believe in the promise of America because I have lived the promise of America.
“If confirmed to be Attorney General of the United States, I pledge to all of you and to the American people that I will fulfill my responsibilities with integrity and independence. I will never forget that I serve the American people, from all walks of life, who continue to make our nation great – as well as the legacy of all those whose sacrifices have made us free. And I will always strive to uphold the trust that has been placed in me to protect and defend our Constitution, to safeguard our people, and to stand as the leader and public servant that they deserve.
“Thank you all, once again, for your time and your consideration. I appreciate the opportunity to speak with you today. I look forward to your questions – and to all that we may accomplish in the days ahead, together, in the spirit of cooperation, shared responsibility, and justice.”
Wednesday, January 28, 2015
Opening Statement of Attorney General-Designate Loretta E. Lynch at U.S. Senate Confirmation Hearing
Attorney General-Designate Loretta E. Lynch released the following statement today at the opening of the U.S. Senate confirmation hearing:
“Thank you, Chairman Grassley, Senator Leahy, and distinguished members of the Committee. I am honored to appear before you in this historic chamber, among so many dedicated public servants. I want to thank you for your time this morning – and President Obama for the trust he has placed in me by nominating me to serve as Attorney General of the United States.
“It is a particular privilege to be joined today by members of my family – including my husband, Stephen Hargrove, my father, Rev. Lorenzo Lynch, my brother, Rev. Leonzo Lynch and his wife NiCole, as well as several other family members who are here today.
“Mr. Chairman, one of the privileges of my position as United States Attorney for the Eastern District of New York is welcoming new attorneys into the office and administering to them the oath of office. It is a transformative moment in the life of a young prosecutor. As they stand before me, prepared to pledge their honor and their integrity, I remind them that they are making their oath not to me, not to my office, or even to our Attorney General, but to our Constitution, the fundamental foundation for all that we do. It is that document and the ideals embodied therein to which I have devoted my professional life. Senators, if confirmed as Attorney General I pledge to you and to the American people that the Constitution, the bedrock of our system of justice, will be my lodestar as I exercise the power and responsibility of that position.
“I owe much to those who have worked to make its promise real for all Americans, beginning with my own family. All of them – and so many others – have supported me on the path that has brought me to this moment, not only through their unwavering love and support, but through their shining examples, and the values that shaped my upbringing.
“My mother, Lorine, who was unable to travel here today, is a retired English teacher and librarian for whom education was the key to a better life. She recalls people in her rural community pressing a dime or a quarter into her hands to support her college education. As a young woman she refused to use segregated restrooms because they did not represent the America in which she believed. She instilled in me an abiding love of literature and learning, and taught me the value of hard work and sacrifice. My father, Lorenzo, is a fourth-generation Baptist preacher who in the early 1960’s opened his Greensboro church to those planning sit-ins and marches, standing with them while carrying me on his shoulders. He has always matched his principles with action – encouraging me to think for myself, but reminding me that we all gain the most when we act in service to others.
“It was the values my parents instilled in me that led me to the Eastern District of New York, and from my parents I gained the tenacity and resolve to take on violent criminals, to confront political corruption and to disrupt organized crime. They also gave me the insight and compassion to sit with the victims of crime and share their loss. Their values have sustained me as I have twice had the privilege of serving as United States Attorney, leading an exceptional office staffed by outstanding public servants, and these values guide and motivate me even today.
“Should I be confirmed as Attorney General, my highest priorities will continue to be to ensure the safety of our citizens, to protect the most vulnerable among us from crime and abuse, and to strengthen the vital relationships between America’s brave law enforcement officers and the communities they are entrusted to serve.
“In a world of complex and evolving threats, protecting the American people from terrorism must remain the primary mission of today’s Department of Justice. If confirmed, I will work with colleagues across the executive branch to use every available tool to continue disrupting catastrophic attacks against our homeland and bringing terrorists to justice. I will draw upon my extensive experience in the Eastern District of New York, which has tried more terrorism cases since 9/11 than any other office. We have investigated and prosecuted terrorist individuals and groups that threaten our nation and its people – including those who have plotted to attack New York City’s subway system, JFK airport, the Federal Reserve Bank of New York, and U.S. troops stationed abroad, as well as those who have provided material support to foreign terrorist organizations. And I pledge to discharge my duties always mindful of the need to protect not just American citizens but also American values.
“If confirmed, I intend to expand and enhance our capabilities in order to effectively prevent ever-evolving attacks in cyberspace, expose wrongdoers, and bring perpetrators to justice. In my current position, I am proud to lead an office that has significant experience prosecuting complex, international cybercrime, including high-tech intrusions at key financial and public sector institutions. If I am confirmed, I will continue to use the combined skills and experience of our law enforcement partners, the department’s Criminal and National Security Divisions, and the United States Attorney community to defeat and to hold accountable those who would imperil the safety and security of our citizens through cybercrime.
“I will also do everything I can to ensure that we are safeguarding the most vulnerable among us. During my tenure as U.S. Attorney, the Eastern District of New York has led the prosecution of financial fraudsters who have callously targeted hard working Americans, including the deaf and the elderly, and stolen their trust and their hard-earned savings. We have taken action against abusers in over one hundred child exploitation and child pornography cases, and have prosecuted brutal international human trafficking rings that sold victims as young as 14 and 15 years old into sexual slavery. If confirmed as Attorney General, I will continue to build upon the department’s record of vigorously prosecuting those who prey on those most in need of our protection and I will continue to provide strong and effective assistance to survivors who we must both support and empower.
“Throughout my career as a prosecutor, it has been my honor to work hand in hand with dedicated law enforcement officers and agents who risk their lives every day in the protection of the communities we all serve. I have served with them. I have learned from them. I am a better prosecutor because of them. Few things have pained me more than the recent reports of tension and division between law enforcement and the communities we serve. If confirmed as Attorney General, one of my key priorities would be to work to strengthen the vital relationships between our courageous law enforcement personnel and all the communities we serve. In my career, I have seen this relationship flourish – I have seen law enforcement forge unbreakable bonds with community residents and have seen violence-ravaged communities come together to honor officers who risked all to protect them. As Attorney General, I will draw all voices into this important discussion.
“In that same spirit, I look forward to fostering a new and improved relationship with this committee, the United States Senate, and the entire United States Congress – a relationship based on mutual respect and constitutional balance. Ultimately, I know we all share the same goal and commitment: to protect and serve the American people.
“Now, I recognize that we face many challenges in the years ahead. But I have seen – in my own life and in my own family – how dedicated men and women can answer the call to achieve great things for themselves, for their country, and for generations to come.
“My father – that young minister who carried me on his shoulders – has answered that call. As has my mother, that courageous young teacher who refused to let Jim Crow define her. Standing with them are my uncles and cousins who served in Vietnam – one of whom is with me here today - and my older brother, a Navy SEAL, who answered that call with their service to our country.
“As I come before you today in this historic chamber, I still stand on my father’s shoulders, as well as on the shoulders of all those who have gone before me and who dreamed of making the promise of America a reality for all and worked to achieve that goal.
“I believe in the promise of America because I have lived the promise of America.
“If confirmed to be Attorney General of the United States, I pledge to all of you and to the American people that I will fulfill my responsibilities with integrity and independence. I will never forget that I serve the American people, from all walks of life, who continue to make our nation great – as well as the legacy of all those whose sacrifices have made us free. And I will always strive to uphold the trust that has been placed in me to protect and defend our Constitution, to safeguard our people, and to stand as the leader and public servant that they deserve.
“Thank you all, once again, for your time and your consideration. I appreciate the opportunity to speak with you today. I look forward to your questions – and to all that we may accomplish in the days ahead, together, in the spirit of cooperation, shared responsibility, and justice.”
STATEMENT BY PRESIDENT OBAMA ON INTERNATIONAL HOLOCAUST REMEMBRANCE DAY
FROM: THE WHITE HOUSE
January 27, 2015
Statement by the President on International Holocaust Remembrance Day and the 70th Anniversary of the Liberation of Auschwitz-Birkenau
On the tenth International Holocaust Remembrance Day and the 70th anniversary of the liberation of Auschwitz-Birkenau, the American people pay tribute to the six million Jews and millions of others murdered by the Nazi regime. We also honor those who survived the Shoah, while recognizing the scars and burdens that many have carried ever since.
Honoring the victims and survivors begins with our renewed recognition of the value and dignity of each person. It demands from us the courage to protect the persecuted and speak out against bigotry and hatred. The recent terrorist attacks in Paris serve as a painful reminder of our obligation to condemn and combat rising anti-Semitism in all its forms, including the denial or trivialization of the Holocaust.
This anniversary is an opportunity to reflect on the progress we have made confronting this terrible chapter in human history and on our continuing efforts to end genocide. I have sent a Presidential delegation to join Polish President Komorowski, the Polish people, official delegations from scores of nations, and many survivors, at today’s official commemoration in Poland.
As a founding member of the International Holocaust Remembrance Alliance, the United States joins the Alliance’s thirty other member nations and partners in reiterating its solemn responsibility to uphold the commitments of the 2000 Stockholm Declaration. We commemorate all of the victims of the Holocaust, pledging never to forget, and recalling the cautionary words of the author and survivor of Auschwitz Primo Levi, “It happened, therefore it can happen again. . . . It can happen anywhere.” Today we come together and commit, to the millions of murdered souls and all survivors, that it must never happen again.
January 27, 2015
Statement by the President on International Holocaust Remembrance Day and the 70th Anniversary of the Liberation of Auschwitz-Birkenau
On the tenth International Holocaust Remembrance Day and the 70th anniversary of the liberation of Auschwitz-Birkenau, the American people pay tribute to the six million Jews and millions of others murdered by the Nazi regime. We also honor those who survived the Shoah, while recognizing the scars and burdens that many have carried ever since.
Honoring the victims and survivors begins with our renewed recognition of the value and dignity of each person. It demands from us the courage to protect the persecuted and speak out against bigotry and hatred. The recent terrorist attacks in Paris serve as a painful reminder of our obligation to condemn and combat rising anti-Semitism in all its forms, including the denial or trivialization of the Holocaust.
This anniversary is an opportunity to reflect on the progress we have made confronting this terrible chapter in human history and on our continuing efforts to end genocide. I have sent a Presidential delegation to join Polish President Komorowski, the Polish people, official delegations from scores of nations, and many survivors, at today’s official commemoration in Poland.
As a founding member of the International Holocaust Remembrance Alliance, the United States joins the Alliance’s thirty other member nations and partners in reiterating its solemn responsibility to uphold the commitments of the 2000 Stockholm Declaration. We commemorate all of the victims of the Holocaust, pledging never to forget, and recalling the cautionary words of the author and survivor of Auschwitz Primo Levi, “It happened, therefore it can happen again. . . . It can happen anywhere.” Today we come together and commit, to the millions of murdered souls and all survivors, that it must never happen again.
SEC CHARGES OPPENHEIMER & CO. REGARDING THE SALE OF PENNY STOCKS
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today charged Oppenheimer & Co. with violating federal securities laws while improperly selling penny stocks in unregistered offerings on behalf of customers.
Oppenheimer agreed to admit wrongdoing and pay $10 million to settle the SEC’s charges. Oppenheimer will pay an additional $10 million to settle a parallel action by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
According to the SEC’s order instituting a settled administrative proceeding, Oppenheimer engaged in two courses of misconduct. The first involved aiding and abetting illegal activity by a customer and ignoring red flags that business was being conducted without an applicable exemption from the broker-dealer registration requirements of the federal securities laws. The customer was Gibraltar Global Securities, a brokerage firm in the Bahamas that is not registered to do business in the U.S. Oppenheimer executed sales of billions of shares of penny stocks for a supposed proprietary account in Gibraltar’s name while knowing or being reckless in not knowing that Gibraltar was actually executing transactions and providing brokerage services for its underlying customers, including many in the U.S. The SEC separately charged Gibraltar last year for its alleged misconduct.
The SEC’s order finds that Oppenheimer failed to file Suspicious Activity Reports (SARs) as required under the Bank Secrecy Act to report potential misconduct by Gibraltar and its customers, and the firm failed to properly report, withhold, and remit more than $3 million in backup withholding taxes from sales proceeds in Gibraltar’s account. Oppenheimer also failed to recognize the resulting liabilities and expenses in violation of the books-and-records requirements, and improperly recorded transactions for Gibraltar’s customers in Oppenheimer’s books and records.
According to the SEC’s order, the second course of misconduct involved Oppenheimer again engaging on behalf of another customer in unregistered sales of billions of shares of penny stocks. The SEC’s investigation, which is continuing, found that the sales generated approximately $12 million in profits of which Oppenheimer was paid $588,400 in commissions. The firm’s liability stems from its failure to respond to red flags and conduct a searching inquiry into whether the sales were exempt from registration requirements of the federal securities laws, and its failure reasonably to supervise with a view toward detecting and preventing violations of the registration provisions.
“Despite red flags suggesting that Oppenheimer’s customer’s stock sales were not exempt from registration, Oppenheimer nonetheless allowed unregistered sales to occur through its account, failing in its gatekeeper role,” said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement. “These actions against Oppenheimer demonstrate that the SEC is fully committed to addressing lax AML compliance programs at broker-dealers through enforcement action. The sanctions imposed on Oppenheimer, which include admissions of wrongdoing and $20 million in monetary remedies, reflect the magnitude of Oppenheimer’s regulatory failures.”
The SEC’s order requires Oppenheimer to cease and desist from committing or causing any violations and any future violations of Section 15(a) and 17(a) of the Securities Exchange Act of 1934 and Rules 17a-3 and 17a-8, and of Section 5 of the Securities Act of 1933. In addition to the monetary remedies, Oppenheimer agreed to be censured and undertake such remedial measures as retaining an independent consultant to review its policies and procedures over a five-year period.
The SEC’s investigation is being conducted by Robert Giallombardo, Margaret W. Smith, Robert Nesbitt, Gary Peters, and Jesse Grunberg with assistance from Christian Schultz. The case is being supervised by Doug McAllister and Nina Finston. The SEC appreciates the assistance of FinCEN and the Financial Industry Regulatory Authority.
The Securities and Exchange Commission today charged Oppenheimer & Co. with violating federal securities laws while improperly selling penny stocks in unregistered offerings on behalf of customers.
Oppenheimer agreed to admit wrongdoing and pay $10 million to settle the SEC’s charges. Oppenheimer will pay an additional $10 million to settle a parallel action by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
According to the SEC’s order instituting a settled administrative proceeding, Oppenheimer engaged in two courses of misconduct. The first involved aiding and abetting illegal activity by a customer and ignoring red flags that business was being conducted without an applicable exemption from the broker-dealer registration requirements of the federal securities laws. The customer was Gibraltar Global Securities, a brokerage firm in the Bahamas that is not registered to do business in the U.S. Oppenheimer executed sales of billions of shares of penny stocks for a supposed proprietary account in Gibraltar’s name while knowing or being reckless in not knowing that Gibraltar was actually executing transactions and providing brokerage services for its underlying customers, including many in the U.S. The SEC separately charged Gibraltar last year for its alleged misconduct.
The SEC’s order finds that Oppenheimer failed to file Suspicious Activity Reports (SARs) as required under the Bank Secrecy Act to report potential misconduct by Gibraltar and its customers, and the firm failed to properly report, withhold, and remit more than $3 million in backup withholding taxes from sales proceeds in Gibraltar’s account. Oppenheimer also failed to recognize the resulting liabilities and expenses in violation of the books-and-records requirements, and improperly recorded transactions for Gibraltar’s customers in Oppenheimer’s books and records.
According to the SEC’s order, the second course of misconduct involved Oppenheimer again engaging on behalf of another customer in unregistered sales of billions of shares of penny stocks. The SEC’s investigation, which is continuing, found that the sales generated approximately $12 million in profits of which Oppenheimer was paid $588,400 in commissions. The firm’s liability stems from its failure to respond to red flags and conduct a searching inquiry into whether the sales were exempt from registration requirements of the federal securities laws, and its failure reasonably to supervise with a view toward detecting and preventing violations of the registration provisions.
“Despite red flags suggesting that Oppenheimer’s customer’s stock sales were not exempt from registration, Oppenheimer nonetheless allowed unregistered sales to occur through its account, failing in its gatekeeper role,” said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement. “These actions against Oppenheimer demonstrate that the SEC is fully committed to addressing lax AML compliance programs at broker-dealers through enforcement action. The sanctions imposed on Oppenheimer, which include admissions of wrongdoing and $20 million in monetary remedies, reflect the magnitude of Oppenheimer’s regulatory failures.”
The SEC’s order requires Oppenheimer to cease and desist from committing or causing any violations and any future violations of Section 15(a) and 17(a) of the Securities Exchange Act of 1934 and Rules 17a-3 and 17a-8, and of Section 5 of the Securities Act of 1933. In addition to the monetary remedies, Oppenheimer agreed to be censured and undertake such remedial measures as retaining an independent consultant to review its policies and procedures over a five-year period.
The SEC’s investigation is being conducted by Robert Giallombardo, Margaret W. Smith, Robert Nesbitt, Gary Peters, and Jesse Grunberg with assistance from Christian Schultz. The case is being supervised by Doug McAllister and Nina Finston. The SEC appreciates the assistance of FinCEN and the Financial Industry Regulatory Authority.
U.S. UNITED NATIONS AMBASSADOR POWER'S REMARKS ON UKRAINE
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.
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.
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."
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