Wednesday, March 4, 2015

SEAFOOD COMPANY OWNER SENT TO PRISON FOR DEALING IN ILLEGAL OYSTERS

FROM:  U.S. JUSTICE DEPARTMENT I
Monday, March 2, 2015
Delaware Seafood Wholesaler and Company Fined and Owner Sentenced to 26 Months in Prison for Illegally Trafficking in Oysters

Mark Bryan, 59, of New Market, Maryland, and his Delaware-based seafood wholesale business, Harbor House Seafood, were sentenced on Friday in federal court in Camden, New Jersey, for trafficking in illegally possessed oysters, creating false health and safety records, and conspiracy charges.

Bryan was sentenced to serve 26 months in prison followed by three years of supervised release. Bryan was also ordered to pay a $62,500 fine and to pay New Jersey $140,000 for the restoration of oyster beds in Delaware Bay.  Harbor House was ordered to pay a $250,000 fine and was sentenced to five years of probation.  Friday’s sentences, in addition to the previous sentencing of Bryan’s co-conspirators and suppliers, brings the total fines and forfeitures in this matter to over $625,000, along with $194,000 of restoration costs..

Bryan and Harbor House were convicted in 2012 of multiple felony crimes related to dealings in illegal oysters from 2004 to 2007.  The evidence showed that for more than four years, Bryan conspired with New Jersey oystermen Thomas Reeves and Todd Reeves to cover up the Reeves’ overharvest of oysters from the Delaware Bay.  Bryan, through his company, Harbor House Seafood, purchased the illegal oysters from the Reeves, then assisted in covering up the Reeves’ overharvest by maintaining double-books, providing federal agents with false records, and by falsifying his FDA-mandated health and safety logs.  The jury saw numerous instances of late-night faxes between Bryan and the Reeves which were used to coordinate their conspiracy and hide their wrong-doing from investigators. Bryan was also shown to have purchased illegal oysters from oyster harvester Kenneth Bailey of New Jersey.  During the course of his crimes, Bryan moved, purchased and sold over $1.2 million worth of illegal oysters.

The Reeves and Bailey were previously sentenced on Feb. 11, 2015, to 26 months, 16 months, and 12 months in prison, respectively, for their roles.

“The defendants’ actions provided a market for dishonest oystermen who were willing to place natural resources at risk in the name of profit,” said Assistant Attorney General John C. Cruden of the Department of Justice’s Environment and Natural Resources Division.  “Today’s sentences send the message that those who knowingly deal in illegal natural resources will be held accountable.”

“Today's sentence underscores the value that state partnerships add to NOAA Office of Law Enforcement’s ability to complete its mission,” said Assistant Director Logan Gregory for NOAA Fisheries Office of Law Enforcement.  “In this case, our partnership with New Jersey Division of Fish and Wildlife was crucial in protecting the oyster resource in New Jersey and leveling the playing field across multiple industry sectors throughout the mid-Atlantic Region.”

The Lacey Act prohibits creating or submitting false records for fish or wildlife moving in interstate commerce and also prohibits trafficking in fish or wildlife known to be illegally taken or possessed.  The FDA and state health agencies require that oyster purchasers and sellers maintain accurate records of the amounts and locations of oyster harvest for all oysters they buy and sell in order to protect public health and minimize the impact of any oyster-borne outbreak of disease.

The case was investigated by the NOAA Office of Law Enforcement and the New Jersey Department of Environmental Protection’s Division of Fish and Wildlife.  The case was prosecuted by Assistant Chief Wayne D. Hettenbach and Trial Attorney Patrick M. Duggan of the Environment and Natural Resources Division’s Environmental Crimes Section, with assistance from Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office for the District of New Jersey.

SNOWFLAKE IMAGING TECHNOLOGY BEING APPLIED TO MAKE ROADS SAFER

FROM:  NATIONAL SCIENCE FOUNDATION
Road safety through snowflake imaging
Technology that delivers incredible mid-air snowflake images may now help improve road safety
March 2, 2015

The technology behind the camera that revealed the intricate, imperfect beauty of snowflakes can now expose their potential danger.

About three years ago, a new high-speed camera system captured freefalling ice crystals so well it might as well be yelling "freeze!". Developed at the University of Utah with support from the National Science Foundation (NSF), the system arose from scientific curiosity about snow.

Now, a less expensive, hardier version is headed to the marketplace to help improve safety.

This next-generation model has the same incredible capability, but is designed for use by departments of transportation to anticipate road conditions.

"Right now the problem in the transportation safety sector is to understand exactly what's falling out of the sky," says engineer Cale Fallgatter, who has an award from the NSF Small Business Technology Transfer program to commercialize the system. "Our goal was to come up with a game-changing instrument based on new technology to compete with what is currently out there."

Free falling

Transportation departments nationwide use camera and sensor systems to collect and analyze data from weather stations to gauge road conditions.

There may be 50 to 150 of these systems, called road weather information system stations, in any given state. They help determine snow plow routes and preventative salting decisions.

"There are a lot of weather detection sensors that differentiate between rain and snow," says Ralph Patterson, a consultant meteorologist in Utah. "But you need pretty sophisticated visibility sensors and/or present weather detectors to get snowfall rates. With this camera you get the resolution of snow crystal type and the density."

The types of precipitation falling have serious implications for traffic safety, as anyone who has driven in sleet rather than flurries can attest.

But instruments in use now often don't provide enough detail for authorities to get a firm grasp on conditions, especially when temperatures hover near the freezing point.

The new system promises to send the snow diagnoses needed.

Using fundamental precipitation research from atmospheric scientist Timothy Garrett, who developed the original multi-angle snowflake camera with Fallgatter, the technology can resolve falling particles down to the diameter of a human hair and also measure the speed at which they fall. The first images produced by the team revealed the surprising diversity of snowflakes.

"Personally, it's really exciting, because not only did we build something that will reach a wider market, but the instrument is a big advance scientifically," Garrett says. "The trick is to develop existing technology and sell it for one-tenth the price."

From the lab to the roadside

For a roadside application, Fallgatter had to engineer a new prototype that would preserve the original camera system's amazing functionality while making it affordable for state transportation departments.

He did this in part by using off-the-shelf products instead of custom-made pieces. The new camera system, called the present weather imager, has 1.3 megapixels, is industrial grade and is priced to compete.

"It's the same high-level technology, but designed for roadside deployment," Fallgatter says.

It also has a revamped lighting system. While the original version used motion-activated LED lighting, the new prototype has a xenon-based lighting system with an infrared filter, which doesn't interfere with people's vision on roads at night.

The new imager includes a built-in computer that analyzes each picture and classifies the precipitation.

"The funding to Fallgatter Technologies will allow them to demonstrate an important new tool to better understand weather conditions in real-time," says Ben Schrag, NSF Small Business Innovation Research program director. "And will hopefully help local authorities and meteorologists to make better decisions with regards to severe weather."

The researchers plan to include an option for either a single camera or two-camera system, the latter of which would produce 3-D images, and give users an even more comprehensive view of each flake.

"Everything is falling into place," Garrett says.

-- Sarah Bates
Investigators
Cale Fallgatter
Timothy Garrett
Related Institutions/Organizations
University of Utah
Fallgatter Technologies, Inc.
Locations
University of Utah , Utah

READOUT: PRESIDENT OBAMA'S MEETING WITH TECHNOLOGY CEO COUNCIL MEMBERS

FROM:  THE WHITE HOUSE TECHNOLOGY
March 02, 2015
Readout of the President's Meeting with Members of the Technology CEO Council

Today, President Obama met with members of the Technology CEO Council to discuss 21st century economic and security issues including trade, cybersecurity, immigration and tax reform.  Growing U.S. exports to support new opportunities for our workers and businesses is a top priority for the President and the members of the Council, who reiterated their commitment to building bipartisan support for Trade Promotion Authority (TPA) as a critical first step towards strong new trade agreements with high standards in critical areas such as labor, environment, and technology services.

The President also highlighted our continued progress towards fixing our broken immigration system -- including a final rule announced last week that gives U.S. work authorization to spouses of certain high-skilled immigrant workers who are approved for a green card and waiting for one to become available. The President and the Tech CEO Council agreed that immigration reform remains an imperative for our nation and high tech sector, and that we should continue striving for comprehensive reform that will fix our broken immigration system once and for all.

The group also shared concerns on cybersecurity and agreed to work with the Administration and Congress to develop better methods to help protect our critical infrastructure and privacy. The President and the executives also discussed a shared desire to work with Congress to enact pro-growth, business tax reform.

Participants Included:

Ursula Burns, Chairman and CEO, Xerox Corp.; Chair of Tech CEO Council
Michael Dell, Chairman and CEO, Dell Inc.
Mark Durcan, CEO and Director, Micron Technology Inc.
Steve Mollenkopf, CEO, Qualcomm Inc.
Ginni Rometty, Chairman, President and CEO, IBM Corp.
Joe Tucci, Chairman and CEO, EMC Corp.
White House Participants:

Valerie Jarrett, White House Senior Advisor
Jeff Zients, Director of the White House National Economic Council
Megan Smith, Chief Technology Officer

WHISTLEBLOWER RECEIVING APPROXIMATELY $500K FROM SEC PROGRAM

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
03/02/2015 02:50 PM EST

The Securities and Exchange Commission today announced a whistleblower award payout between $475,000 and $575,000 to a former company officer who reported original, high-quality information about a securities fraud that resulted in an SEC enforcement action with sanctions exceeding $1 million.

Officers, directors, trustees, or partners who learn about a fraud through another employee reporting the misconduct generally aren’t eligible for an award under the SEC’s whistleblower program.  However, there is an exception to this exclusion that makes an officer eligible if he or she reports the information to the SEC more than 120 days after other responsible compliance personnel possessed the information and failed to adequately address the issue.  This is the first SEC whistleblower award to an officer under these circumstances.

“Corporate officers have front-row seats overseeing the activities of their companies, and this particular officer should be commended for stepping up to report a securities law violation when it became apparent that the company’s internal compliance system was not functioning well enough to address it,” said Andrew Ceresney, Director of the SEC’s Division of Enforcement.

The SEC has now awarded 15 whistleblowers since its whistleblower program began more than three years ago.  Payouts have totaled nearly $50 million out of an investor protection fund established by Congress.  The fund is financed entirely through monetary sanctions paid to the SEC by securities law violators, and no money is taken or withheld from harmed investors to pay whistleblower awards.

Whistleblower awards can range from 10 percent to 30 percent of the money collected in a case.  By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity.

“Receiving information and cooperation from company insiders is particularly useful in the early detection of securities fraud, and we will continue to leverage whistleblower information to help combat securities law violations and better protect investors and the marketplace,” said Sean McKessy, Chief of the SEC’s Office of the Whistleblower.  “Meanwhile, companies must have rigorous internal compliance programs that adequately address and remedy potential violations voiced by their employees as well as by their officers, directors, or other individuals.”

SECRETARY KERRY URGES CONCLUSION OF CONFLICT WITH SOUTH SUDAN NEGOTIATIONS

FROM:  U.S. SECRETARY OF STATE
Secretary Kerry on South Sudan Negotiations
Press Statement
John Kerry
Secretary of State
Washington, DC
March 2, 2015

The warring parties in South Sudan must seize the current and final round of negotiations to deliver a sustainable peace. We are well past the point where enough is enough. Leaders must put the interests of their people above their own. The violence must end. A negotiated conclusion to this conflict is required now.

Legitimacy is not a presumed right of any government. It is conferred by the people, and it is sustained only by demonstrating leadership to protect and serve all citizens—responsibilities the government has neglected. The opposition has likewise failed to choose peace or make the hard choices required of leaders. Both President Kiir and Riek Machar have promised time and again that they would negotiate a transitional government under the Intergovernmental Authority on Development (IGAD) process, but have failed to make the compromises needed.

The world is watching to see what the leaders of South Sudan will do. IGAD has outlined the way forward to a transitional government and necessary reforms, but the two sides continue to obfuscate and delay. The parties have until March 5 to secure an agreement that is inclusive, that initiates a broad range of transitional reforms and that ensures those responsible for human rights abuses are held to account.

The United States will work with our international partners, including in the region, the UN Security Council, and beyond, to take further concerted action against those who do not demonstrate a willingness to make the difficult decisions needed for peace.

Leaders can choose to do the hard work of implementing peace—or they can all too easily drift back into the nightmare of war. The choice is clear, and for the sake of all the people of South Sudan, I urge them to choose peace.

Tuesday, March 3, 2015

WHITE HOUSE ANNOUNCES CONTINUATION OF NATIONAL EMERGENCIES WITH REGARDS TO UKRAINE AND ZIMBABWE

FROM:  THE WHITE HOUSE 
March 03, 2015
Message -- Continuation of the National Emergency with Respect to Ukraine

TO THE CONGRESS OF THE UNITED STATES:

Section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)) provides for the automatic termination of a national emergency unless, within 90 days prior to the anniversary date of its declaration, the President publishes in the Federal Register and transmits to the Congress a notice stating that the emergency is to continue in effect beyond the anniversary date.  In accordance with this provision, I have sent to the Federal Register for publication the enclosed notice stating that the national emergency declared in Executive Order 13660 of March 6, 2014, is to continue in effect beyond March 6, 2015.

The actions and policies of persons that undermine democratic processes and institutions in Ukraine; threaten its peace, security, stability, sovereignty, and territorial integrity; and contribute to the misappropriation of its assets, as well as the actions and policies of the Government of the Russian Federation, including its purported annexation of Crimea and its use of force in Ukraine, continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.  Therefore, I have determined that it is necessary to continue the national emergency declared in Executive Order 13660 with respect to Ukraine.

BARACK OBAMA


March 03, 2015
Notice -- Continuation of the National Emergency with Respect to Zimbabwe

NOTICE

- - - - - - -

CONTINUATION OF THE NATIONAL EMERGENCY WITH RESPECT TO ZIMBABWE

On March 6, 2003, by Executive Order 13288, the President declared a national emergency and blocked the property of certain persons, pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701-1706), to deal with the unusual and extraordinary threat to the foreign policy of the United States constituted by the actions and policies of certain members of the Government of Zimbabwe and other persons to undermine Zimbabwe's democratic processes or institutions.  These actions and policies had contributed to the deliberate breakdown in the rule of law in Zimbabwe, to politically motivated violence and intimidation in that country, and to political and economic instability in the southern African region.

On November 22, 2005, the President issued Executive Order 13391 to take additional steps with respect to the national emergency declared in Executive Order 13288 by ordering the blocking of the property of certain persons who undermine democratic processes or institutions in Zimbabwe.

On July 25, 2008, the President issued Executive Order 13469, which expanded the scope of the national emergency declared in Executive Order 13288 and authorized the blocking of the property of certain persons determined to have engaged in actions or policies to undermine democratic processes or institutions in Zimbabwe, to commit acts of violence and other human rights abuses against political opponents, and to engage in public corruption.

The actions and policies of these persons continue to pose an unusual and extraordinary threat to the foreign policy of the United States.  For this reason, the national emergency declared on March 6, 2003, and the measures adopted on that date, on November 22, 2005, and on July 25, 2008, to deal with that emergency, must continue in effect beyond March 6, 2015.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am continuing for 1 year the national emergency declared in Executive Order 13288.

This notice shall be published in the Federal Register and transmitted to the Congress.

BARACK OBAMA

CRIMINAL CHARGES FILED AGAINST DAVID PETRAEUS

FROM:  U.S. JUSTICE DEPARTMENT
Tuesday, March 3, 2015
Statement from the Justice Department on the Criminal Charges Against David Petraeus
Justice Department Spokesman Marc Raimondi released the following statement Tuesday:

“Three documents – a criminal Information, a plea agreement, and a statement of facts – were filed today in the United States District Court for the Western District of North Carolina’s Charlotte Division in the case of United States v. David Howell Petraeus.  The criminal Information charges the defendant with one count of unauthorized removal and retention of classified material, in violation of 18 U.S.C. § 1924.  The plea agreement and corresponding statement of facts, both signed by the defendant, indicate that he will plead guilty to the one-count criminal Information."

COMMANDER U.S. CYBER COMMAND DISCUSSES CYBER DEFENSE AND OFFENSE

FROM:  U.S. DEFENSE DEPARTMENT

Right:  Navy Adm. Michael S. Rogers, commander of U.S. Cyber Command and director of the National Security Agency, spoke to cadets, staff and faculty during a Leader Professional Development Session at the U.S. Military Academy at West Point, N.Y., Jan. 9, 2015. U.S. Army photo by Sgt. 1st Class Jeremy Bunkley.  

Rogers Discusses Cyber Operations, ISIL, Deterrence
By Cheryl Pellerin
DoD News, Defense Media Activity

WASHINGTON, March 2, 2015 – Navy Adm. Michael S. Rogers, commander of U.S. Cyber Command, took questions here recently on many topics -- cyber defense and offense, finding the Islamic State of Iraq and the Levant on the dark Web and cyber deterrence -- during a New America Foundation cybersecurity conference.

Rogers, who’s also director of the National Security Agency, spoke with CNN national security correspondent Jim Sciutto and took questions from the audience and from Twitter and other social media outlets.

Rogers often says, as he did at this conference, that he believes in appearing publicly and putting no restrictions on questions asked of him.

“You can ask me anything,” he said, “because we have got to be willing as a nation to have a dialogue” on cyber issues.

Cyberspace as a Domain of War

On a question about whether the United States is positioned effectively to address cyberspace as a domain of warfare, Rogers said the nation is in a better position in many ways than most of its counterparts around the world.
“We've put a lot of thought into this as a department,” he added. “U.S. Cyber Command, for example, will celebrate our fifth anniversary this year. This is a topic the department has been thinking about for some time.”

But the admiral said he doesn’t think Cybercom is where it should be yet in preparation for fully engaging in cyberspace.

“Part of that is just my culture,” he explained. “My culture as a military guy always is about striving for the best, striving to achieve objectives. You push yourself.”

Defending the Networks

From a defensive standpoint it’s difficult to defend a network infrastructure that has been built over decades, Rogers said, noting that most of it was created at a time when there was no critical cyberthreat.

“We're trying to defend infrastructure in which redundancy, resiliency and defensibility were never design characteristics,” he said. “It was all about ‘build me a network that connects me in the most efficient and effective way with a host of people and lets me do my job.’” Rogers noted that concerns about an adversary’s ability to penetrate the network and manipulate or steal data was not a primary factor at the time.

The department is working to change its network structure to incorporate core security characteristics, the admiral said.

On the offensive side, Cybercom is “working its way,” Rogers said, and doing this within a broader structure that dovetails with the law of armed conflict.
Cyber as an Offensive Tool

“Remember,” he said, “when you look at the application of cyber as an offensive tool, it must fit within a broader legal framework -- the law of armed conflict, international law, the norms we have come to take for granted in some ways in the application of kinetic force.”

Cybercom must do the same thing in the offensive world, the admiral said, “and we're clearly not there yet.”

Like many nations around the world, the United States has capabilities in cyber.
“The key for us is to ensure that such capabilities are employed in a very lawful, very formulated, very regimented manner,” Rogers said.

Legal Framework for Cyberspace

In January 2014, in Presidential Policy Directive 28, Rogers said President Barack Obama laid out the framework he wanted used in the conduct of signals intelligence.

Today, the admiral said, “all that remains applicable.”

Another question from the audience referenced ISIL’s use of the dark Web to raise money through Bitcoin, a form of digital currency.

The questioner described the dark Web as “a bunch of anonymous computers -- a bunch of anonymous users -- that are still able to find each other” using a browser that protects users’ anonymity, no matter what a user is doing there.
Nature of the Business

On collecting intelligence from the dark Web, Rogers said, “We spend a lot of time looking for people who don't want to be found.”

In some ways, he added, that is the nature of the business, particularly involving terrorists or individuals engaged in espionage against the United States or against its allies and friends.

Such activities, the admiral said, are a national concern.

“ISIL's ability to generate resources, to generate funding, is something that we're paying attention to,” Rogers said.

Focusing on ISIL

“It's something of concern to us,” he noted, “because it talks about ISIL’s ability to sustain themselves over time [and] about their ability to empower the activity we're watching on the ground in Iraq, in Syria, in Libya [and] in other places.”
Such activities also are of concern to a host of nations, the admiral said, adding, “I won't get into the specifics of exactly what we're doing, other than to say this is an area that we are focusing attention on.”

When asked about deterring America’s adversaries from carrying out cyberattacks, Rogers said the concept of deterrence in the cyber domain is relatively immature.

“This is still the early stages of cyber in many ways,” he said, “so we're going to have to work our way through this” by developing and accepting norms of behavior in cyberspace that will underlie and support the notion of deterrence.

3/2/15: White House Press Briefing

SECRETARY KERRY CONGRATULATES PEOPLE OF LESOTHO ON PEACEFUL ELECTION

FROM:  U.S. STATE DEPARTMENT
03/02/2015 06:51 PM EST
The United States Congratulates Lesotho on Peaceful Election
Press Statement
John Kerry
Secretary of State
Washington, DC
March 2, 2015

The United States congratulates the people of Lesotho for participating peacefully in Lesotho’s snap parliamentary election on February 28.

The U.S. Embassy deployed 18 American and Basotho staff as observers to six of Lesotho’s ten districts, where they witnessed the opening, voting, closing, and counting in approximately 80 polling stations. Every vote counts and every vote was a victory for Lesotho.

The United States shares the hopes of the Basotho that these elections will allow Lesotho to move beyond a period of political uncertainty and strengthen national unity. This commitment is essential to provide a foundation for an effective, accountable government that serves the needs of the people.

We commend Lesotho’s Independent Electoral Commission for organizing a professional and well-run poll, especially in light of the compressed timeline. We encourage all candidates and political parties to accept the election results when they are announced and to call on their supporters to do so as well.

The Southern African Development Community (SADC) deserves great credit for supporting Lesotho’s peaceful election. We welcome SADC’s ongoing commitment to helping Lesotho strengthen its democratic institutions and rule of law.

The United States remains committed to our strong partnership with Lesotho and to achieving our shared objectives of improved health, shared prosperity, and effective and accountable government.

DOJ ANNOUNCES AWARDING OVER $2 BILLION TO CLAIMANTS UNDER RADIATION EXPOSURE COMPENSATION ACT

FROM:  U.S. JUSTICE DEPARTMENT
Monday, March 2, 2015
Justice Department Surpasses $2 Billion in Awards Under the Radiation Exposure Compensation Act

The Justice Department announced today that it has awarded more than $2 billion in compassionate compensation to eligible claimants under the Radiation Exposure Compensation Act (RECA).

The RECA was enacted in 1990 as a non-adversarial alternative to litigation for individuals who contracted certain illnesses following exposure to radiation as a result of the United States’ atmospheric nuclear testing program and uranium ore processing operations during the Cold War.  Congress expanded the scope of the law’s coverage in 2000.  In its present form, the RECA provides lump sum compensation awards to individuals who contracted specified diseases in three defined populations: uranium miners, millers and ore transporters who are eligible for $100,000 per claim; participants in atmospheric nuclear weapons tests who are eligible for $75,000 per claim; and individuals who lived downwind of the Nevada Test Site (downwinders) who are eligible for $50,000 per claim.

“RECA claimants worked in hazardous occupations and were subjected to increased risk of disease to serve the national security interests of the United States,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “This extraordinary statute provides partial restitution to these individuals and their families for the sacrifices they made during a critical time in our nation’s history.”

Compensation has been awarded to individuals residing in every state.  Since 1990, nearly 43,000 claims have been filed and 32,000 claims have been approved.  Residents of the Four Corners Region of the American southwest have filed the majority of RECA claims.  The department has awarded more than 9,400 claims filed by residents of Arizona, valued at more than $500 million.  Approximately 3,800 claims filed by residents of New Mexico have been awarded, valued at nearly $350 million, and approximately 5,800 claims filed by Utah residents have been awarded, valued at approximately $330 million.  Colorado residents have received awards in more than 3,200 claims, valued at more than $213 million.

Awards to Native American claimants total approximately $264 million distributed among members of 17 different tribes.  The department has awarded more than 2,800 claims filed by members of the Navajo Nation, valued at more than $212 million.  In addition, the department has awarded more than $24 million to members of the Laguna Pueblo Tribe and more than $9 million to members of the Apache Tribes.

Since 1990, the department has awarded more than 3,600 claims filed by veterans, civil servants and contractors who participated onsite in atmospheric nuclear tests, valued in excess of $266 million.  Nearly $100 million of this compensation was awarded following a surge in claims filed in 2011 and 2012.

“This benchmark reflects the department’s efforts to help thousands of U.S. citizens reach closure on a unique chapter of our history,” said Deputy Assistant Attorney General Kali N. Bracey of the Civil Division’s Torts Branch.  The RECA is administered by the Radiation Exposure Compensation Program, a component of the Constitutional and Specialized Torts Litigation section within the Torts Branch.

The Department of Justice is a part of a broad inter-agency network that includes the Departments of Defense, Veterans Affairs, Labor, Health and Human Services, and Energy, comprising the comprehensive federal radiation compensation system.  Eligibility determinations are routinely coordinated with these agencies.

PRESIDENT OBAMA'S REMARKS AFTER MEETING WITH TASK FORECE ON 21ST CENTURY POLICING

FROM:  THE WHITE HOUSE
March 02, 2015
Remarks by the President after Meeting with Task Force on 21st Century Policing
Roosevelt Room
12:09 P.M. EST

THE PRESIDENT:  Last year, the events in Ferguson and New York exposed a deep-rooted frustration in many communities of color around the need for fair and just law enforcement.

And so back in December, I announced a Task Force on 21st Century Policing, chaired by two outstanding leaders who are respected both in law enforcement and in civil rights circles -- Philadelphia Police Commissioner Charles Ramsey, and former Assistant Attorney General Laurie Robinson.  And I asked them to help to form a task force made up of community leaders, law enforcement leaders, academics, practitioners, and to come up in 90 days with a very specific set of recommendations that would allow us to continue to drive crime down, to continue to deal with issues of community building, but would begin to build the kind of trust that we need in order to continue to make progress in the future.

For the last few months, they’ve been holding hearings.  They met with people who care passionately about these issues; they’ve debated recommendations thoughtfully and deliberately.  Some put their lives on hold for more than two months to do this. I am extraordinarily grateful for their efforts.

This morning, they presented to me their report, which will be available online for everybody to see.  It offers pragmatic, common-sense ideas based on input from criminal justice experts, community leaders, law enforcement, and civil liberties advocates.  We are carefully reviewing all their recommendations, which include very specific recommendations, more general recommendations, everything from training issues to technology issues, to approaches for interacting with schools, to how we get research and data.

But I want to summarize just a few key points that were made so that people are very clear about the direction that we're going to be moving.  Number one, I think uniformly, the task force talked about the issue of legitimacy as being important not just for the communities, but also for law enforcement officers; that the more there is trust between communities and law enforcement, the safer it is for cops, the more effectively they can do their jobs, the more cooperation there’s going to be, the more likely those communities are to be safe.

And so there is no theoretical separation between the interests of community and law enforcement.  But obviously the devil is in the details, and we've got to figure out how to make that work.

Number two, there was a great emphasis on the need to collect more data.  Across this country, we've got 18,000 law enforcement jurisdictions.  Right now, we do not have a good sense, and local communities do not have a good sense, of how frequently there may be interactions with police and community members that result in a death, result in a shooting.  That's the kind of information that is needed for police departments to do their job, to be able to manage their forces effectively, and for communities to be able to evaluate and provide appropriate oversight to the folks who are supposed to be serving and protecting them.

There was a lot of discussion about the need for expanding and enhancing community policing that we know works.  When I had several law enforcement officers from around the country the other day, almost all of them -- and this is a diverse group, some from big cities, some from small communities, some from tribal areas -- they all discussed the need for police officers to be engaged with the community, not just in a stop but also in a school, also working with children, also being seen as enhancing the life of the community beyond law enforcement.  That trust then enhances their ability to do a good job.  And that's an area that was emphasized by this task force.

There’s a great interest in training.  We know some things that work.  We need more information to find out how to take to scale best practices when it comes to training so that police officers are able to work in a way that reduces the possibilities of bias, that allows them to deal with what are very stressful situations.  Oftentimes the police officers have extraordinarily difficult jobs; they may be put in situations in which there’s a lot of tension, and how do they deal with that appropriately, and how do they work with the community effectively to mitigate some of those challenges.

There are going to be some controversial recommendations in here.  For example, the need for independent investigations and independent special prosecutors (inaudible) a situation in which law enforcement has interacted with an individual that results in death.

I'm going to give Laurie some water right now. (Laughter.)  I think it's important -- she’s been working very hard.  (Laughter.)  And Michelle has that same cough.

But the importance of making sure that the sense of accountability when, in fact, law enforcement is involved in a deadly shooting is something that I think communities across the board are going to need to consider.  Or some recommendations around prohibiting racial profiling.  That's a step that we've already taken at the federal level.  If you talk to the FBI, if you talk to our federal law enforcement, it may be challenging for them to change old practices, but they are confident that they’re able to continue to do their job effectively.  The same is going to be true at the local level as long as it is an intentional policy coming from the top that is followed up with key metrics so the people know exactly what is going on.

And then there’s some discussions of technology.  There’s been a lot of talk about body cameras as a silver bullet or a solution.  I think the task force concluded that there is a role for technology to play in building additional trust and accountability, but it's not a panacea, and that it has to be embedded in a broader change in culture and a legal framework that ensures that people’s privacy is respected and that not only police officers but the community themselves feel comfortable with how technologies are being used.

There’s some additional recommendations that are very specific.  For example, how law enforcement handles mass demonstrations.  I think there was a lot of concern that bubbled up in the wake of Ferguson.  The federal government has already taken it upon itself to look at how we are dealing with providing military equipment to local law enforcement and how that may be used.  There are some recommendations that deal with civilian oversight and how that might be managed.

The point is that this report is going to contain a series of very specific, concrete, common-sense efforts for us to build trust.  It will be good for police and it will be good for the communities involved.  And as a consequence, it will be good for the country.  Everybody wants our streets safe and everybody wants to make sure that laws are applied fairly and equitably.

Nobody, by the way, wants that more than law enforcement themselves.  I was keenly interested in hearing from some of our law enforcement representatives who talked about how important it is for police to feel as if the community supports them, because they got into law enforcement to serve and protect, not to be viewed as some external force.  And unfortunately, sometimes policies, politics, politicians put law enforcement in an untenable position.

There was some discussion within the report about how we have to look at the broader context in which law enforcement is happening.  Our approach to our drug laws, for example, and criminalization of nonviolent offenses rather than taking more of a public health approach -- that may be something that has an impact in eroding trust between law enforcement and communities. Broader issues of poverty and isolation may have an impact.

I emphasized to the task force that I think it's important for us to recognize that context, but I don't want us to have such a 40,000-foot argument that we lose track of the very specific concrete practices that can be instituted right now that will make a difference.

Now, last point I'll make.  Most of the recommendations that have been made are directed at the 18,000 law enforcement jurisdictions that are out there.  Law enforcement is largely a local function as opposed to a federal function.  Many of the recommendations that have been made for changes in federal practice we already have entrain.  Those that we do not yet have entrain, that we have not yet implemented, I'm going to be asking Eric Holder and the Justice Department and his successor to go through all these recommendations so that we can start implementing them.

I know that one area that's going to be of great interest is whether we can expand the COPS program that in the past has been very effective, continues to be effective, but is largely underfunded -- to see if we can get more incentives for local communities to apply some of the best practices and lessons that are embodied in this report.

But a lot of our work is going to involve local police chiefs, local elected officials, states recognizing that the moment is now for us to make these changes.  We have a great opportunity, coming out of some great conflict and tragedy, to really transform how we think about community law enforcement relations so that everybody feels safer and our law enforcement officers feel, rather than being embattled, feel fully supported.

We need to seize that opportunity.  And so this is something that I'm going to stay very focused on in the months to come.  I'm going to be pushing my Justice Department and the COPS program and others to continue to work on it.  But I want to close by just once again saying thank you to the extraordinary contributions that have been made by this task force.

I expect our friends in the media to really focus on what’s in this report and pay attention to it.  So often we see an event that's flashy; it makes the news; people are crying out for solutions.  And by the time recommendations are put forward, our focus has moved on and we don't actually see and pay attention to the concrete ways that we can improve the situation.  This is a moment where a lot of work has been done.  There’s some good answers to be had if we don't make this a political football or sensationalize it, but rather really focus on getting the job done.

So I appreciate everybody’s efforts.  I'm going to be focused on it.  I hope you will be, too.

Thank you very much, everybody.

Q    Surely you don't mean us, do you?

THE PRESIDENT:  You pay attention, personally.  It's more generically.

Thank you, guys.

END
12:23 P.M. EST

DOD OFFICIAL, NAVY ADM. HANEY TESTIFY TO HOUSE SUBCOMMITTEE ON NUCLEAR DETERRENT BUDGET REQUEST

FROM:  U.S. DEFENSE DEPARTMENT
McKeon: Budget Request Provides ‘Robust’ Nuclear Deterrent
By Terri Moon Cronk

DoD News, Defense Media Activity

WASHINGTON, Feb. 27, 2015 – The president’s proposed fiscal 2016 budget proposal contains funding to provide a “stable and robust” nuclear deterrent capability for the nation, Brian P. McKeon, principal deputy undersecretary of defense for policy, told the House Armed Services Subcommittee on Strategic Forces here yesterday.

McKeon and Navy Adm. Cecil D. Haney, commander of U.S. Strategic Command, testified before the panel on strategic force needs in the fiscal year 2016 president’s budget request. Both officials said the budget request funding protects vital U.S. interests.
s

“Significant resources” will be necessary in the next decade and beyond to modernize nuclear deterrence delivery systems and extend warhead life across the triad to preserve military capabilities amid evolving threats, McKeon said.
The president’s plan for nuclear sustainment and modernization aligns his commitment to “retaining a safe, secure and effective deterrent for as long as nuclear weapons exist,” he told the panel.

The budget request for the strategic force focuses on maintaining “stable and robust deterrence in a time of geopolitical uncertainty, while managing the transition from existing nuclear force to a modernized nuclear force,” McKeon said.

The White House plan reflects the smallest nuclear arsenal since the Eisenhower administration and it will continue to shrink, McKeon said.

“Our approach to warhead sustainment and modernization will enable additional reductions in the nondeployed hedge force,” he said.
Strategic Threats

While Stratcom remains mission-ready and its strategic nuclear force is safe, secure and effective, “serious attention” must be directed to strategic threats, weapons of mass destruction, and space and cyberspace, Haney testified.
The nation continues to witness emerging capabilities, such as modernizing strategic nuclear capabilities, counterspace and cyberspace activities, conventional and asymmetric threats and disturbing trends that upset the strategic balance, a concern for Stratcom and other combatant commands, the admiral said.

Strategic deterrence today is far more than just nuclear, although it is underpinned first and foremost by nuclear capabilities, Haney said.
“Deterrence includes a robust intelligence apparatus, space, cyberspace, conventional and missile defense capabilities, and comprehensive plans that link organizations and knit their capabilities together in a coherent way,” he said.
Investment in Strategic Capabilities

“Achieving strategic deterrence in the 21st century requires continued investment in strategic capabilities and renewed multigenerational commitment of intellectual capital,” Haney said.

The president's budget request for the strategic force strikes a responsible balance between national priorities, fiscal realities, and begins to reduce some risks that accumulated following deferred maintenance and sustainment, he added.
The budget proposal supports Stratcom’s mission requirements, but no margin exists to absorb new risk, Haney noted.

“Any cuts to the budget [request], including those imposed by sequestration,” he said, “will hamper our ability to sustain and modernize our military forces.”

MAN PLEADS GUILTY FOR PART IN ID TRAFFICKING OF PUERTO RICAN U.S. CITIZENS TO FOREIGN NATIONALS

FROM:  U.S. JUSTICE DEPARTMENT
Friday, February 27, 2015

Florida Man Pleads Guilty for Role in Puerto Rican Identity Trafficking Ring
A Florida man pleaded guilty today for his role in a large-scale identity trafficking ring, which sold the identities of Puerto Rican U.S. citizens to foreign nationals to allow them to enter or remain in the United States illegally.  To date, a total of 14 individuals have been charged for their roles in this identity trafficking ring, and four have pleaded guilty.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Director Sarah R. Saldaña of Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Director Bill A. Miller of the Department of State’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.

Rey David Bravo-Aguirre, 43, of Bartow, Florida, pleaded guilty to one count of conspiracy to commit identification fraud, one count of conspiracy to commit alien smuggling for financial gain and one count of transferring and possessing means of identification of another person during and in relation to a felony.  A sentencing hearing is scheduled for June 3, 2015, before U.S. District Judge Juan M. Pérez- Giménez of the District of Puerto Rico.

According to his plea agreement, Bravo-Aguirre operated as a broker of Puerto Rican identities and corresponding identity documents out of Bartow, Florida.  In that role, Bravo-Aguirre received identity documents from other members of the conspiracy located in the Caguas-area of Puerto Rico and sold them to individuals unlawfully residing in Florida.  Specifically, Bravo-Aguirre admitted that he provided Social Security cards and corresponding Puerto Rico birth certificates to his customers.

The charges are the result of Operation Island Express II, an ongoing, nationally-coordinated investigation led by ICE’s Homeland Security Investigations (HSI), USPIS, DSS and IRS-CI offices in Chicago, in coordination with the ICE-HSI San Juan Office.  The Illinois Secretary of State Police also provided substantial assistance.  The ICE-HSI Attaché office in the Dominican Republic, National Drug Intelligence Center - Document and Media Exploitation Branch and International Organized Crime Intelligence and Operations Center (IOC-2) provided invaluable assistance, as well as various ICE, USPIS, DSS and IRS CI offices around the country.

The case is being prosecuted by Trial Attorneys Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and William Kenety of the Criminal Division’s Human Rights and Special Prosecutions Section, and Special Assistant U.S. Attorney Jorge Ramos of the District of Puerto Rico.

SECRETARY KERRY'S REMARKS AFTER ADDRESSING UN HUMAN RIGHTS COUNCIL IN GENEVA, SWITZERLAND

FROM:  U.S. STATE DEPARTMENT
Remarks at a Press Availability
Remarks
John Kerry
Secretary of State
Palais des Nations
Geneva, Switzerland
March 2, 2015

SECRETARY KERRY: Well, good afternoon, everybody, and thank you. And I apologize for keeping you waiting for a few minutes.

A little while ago, as I think you know, I had the opportunity to address the UN Human Rights Council here in Geneva. And since the United States made the decision to re-engage on the council, we have worked hard to try to drive a number of significant steps to be able to bring new levels of international attention to some of the world’s most egregious human rights violations, and also to focus on some of the worst abusers – particularly, obviously, we have focused on North Korea and Syria.

We’ve also worked hard to try to create new mechanisms that explore and address serious human rights infringements on the freedom of assembly, expression, and religion, and the rights of LGBT people. And as many of you know, just the other day, I had the privilege of making the appointment for Randy Berry as the first special envoy for global LGBT rights for the State Department.

Because of the important progress that we have seen over the course of the past five years, the United States very much continues to believe in the potential of the Human Rights Council, and we’re dedicated to try to work for its success. At the same time, however, as I mentioned earlier, we recognize that there are places where it needs to improve, and most notably, as I cited earlier, has been the excessive bias, in our judgment, on one country, on Israel. So we wanted to make it clear today that we think that that is an impediment that stands in the way of the progress that should be achieved here when we look at the wide array of the world’s ills and the many challenges that we need to speak out on with respect to human rights.

I made it clear that the United States will oppose any effort by any group or any participant to abuse the UN system in order to delegitimize or isolate Israel. And we think it’s important that for the right – for the council to be able to achieve the breadth of goals that it is faced with – the breadth of the – to address the breadth of the challenges that it currently faces, it really needs to break out of an older mold and begin to put the time and energy and major focus on some of those most egregious situations. And that is really what has happened within the Council over the course of the last five years, particularly if you look at the commission of inquiry work that has been done with respect to the DPRK and other work it has done.

I also met this morning with Foreign Minister Lavrov. And we spent a fair amount of time discussing Syria, Ukraine, ISIS, and Iran. I reiterated the urgency of Russia’s leaders and the separatists that they back implementing the full measure of the commitments under the Minsk agreements and to implement them everywhere, including in Debaltseve, outside Mariupol, and in other key strategic areas. And I underscored this morning that if that does not happen, if there continue to be these broad swaths of noncompliance, or there continues to be a cherry-picking as to where heavy equipment will be moved back from without knowing where it’s been moved to, or if the OSCE is not able to adequately be able to gain the access necessary, then there would be inevitably further consequences that will place added strain on Russia’s already troubled economy. Now, obviously, Ukraine is just one of the issues, as I mentioned, that we focused on. And it’s only one of the issues, frankly, on which the United States and Russia together are focused.

This morning, Foreign Minister Lavrov and I also spoke at some length about Syria. The situation in Syria actually grows worse, if that’s possible for people to imagine. Almost three-quarters of the entire country is now displaced people – half of them refugees in mostly Jordan, Lebanon, and Turkey, but many of them displaced within the country and unable to move because of ISIL, Daesh, al-Nusrah, the regime, or some other extremist group.

So we spoke at length about steps that might be able to be taken in order to try to see if there is a potential of common ground. And we agreed that there is no military solution; we agreed there is a need for a political solution; and we agreed on the need of those countries who have been supporting people in this endeavor, in this conflict, to be able to search yet again to see whether or not there is a path either to Geneva 1 or to some hybrid or some means of ending the violence. And one of the things that drives that interest, that common interest, is the reality of Daesh, the reality of what is happening to Syria as a result of the presence of Daesh there and its use of Syria as a base for spreading its evil to other places.

We also talked about the Iran nuclear negotiations, where we are, together with the other P5+1 members – where we are all focused simultaneously on the need to elicit from Iran answers to questions about their nuclear program – not just answers for today, but answers that are capable of lasting well into the future in order to be able to provide people with a confidence that the program is, indeed, a peaceful nuclear program.

We continue to believe, all the members of the P5+1, that the best way to deal with the questions surrounding this nuclear program is to find a comprehensive deal, but not a deal that comes at any cost, not a deal just for the purpose of a deal; a deal that meets the test of providing the answers and the guarantees that are needed in order to know that the four pathways to a nuclear bomb have been closed off. And that is the task. And we hope it is possible to get there, but there is no guarantee.

Sanctions alone are not going to provide that solution. What needs to happen is that Iran needs to provide a verifiable set of commitments that its program is in fact peaceful. And that average people and experts alike looking at that verifiable set of commitments have confidence that they are sustainable, that they are real, and that they will provide the answers and guarantees well into the future.

Any deal must close every potential pathway that Iran has towards fissile material, whether it’s uranium, plutonium, or a covert path. The fact is only a good, comprehensive deal in the end can actually check off all of those boxes.

Now, I want to be clear about two things. Right now, no deal exists, no partial deal exists. And unless Iran is able to make the difficult decisions that will be required, there won’t be a deal. Nothing is agreed until everything is agreed. That is the standard by which this negotiation is taking place, and anyone who tells you otherwise is simply misinformed.

Now, we are concerned by reports that suggest selective details of the ongoing negotiations will be discussed publicly in the coming days. I want to say clearly that doing so would make it more difficult to reach the goal that Israel and others say they share in order to get a good deal. Israel’s security is absolutely at the forefront of all of our minds, but frankly, so is the security of all the other countries in the region, so is our security in the United States. And we are very clear that as we negotiate with Iran, if we are able to reach the kind of deal that we’re hoping for, then it would have to be considered in its entirety and measured against alternatives.

Second – I cannot emphasize this enough. I have said this from the first moment that I become engaged in this negotiating process, President Obama has said this repeatedly: We will not accept a bad deal. We have said no deal is better than a bad deal, because a bad deal could actually make things less secure and more dangerous. Any deal that we would possibly agree to would make the international community, and especially Israel, safer than it is today. That’s our standard. So our team is working very hard to close remaining gaps, to reach a deal that ensures Iran’s nuclear program is exclusively and verifiably peaceful, and we have made some progress, but we still have a long way to go and the clock is ticking.

That’s why I will leave here momentarily to head to Montreux to meet with Foreign Minister Zarif and continue the negotiations. And in the days and weeks ahead, we’re going to answer a very simple question. We’re going to find out whether or not Iran is willing to make the hard choices that are necessary to get where we need to be. I’m happy to take a few of your questions.

MS. PSAKI: Michael Gordon, New York Times. Right over here.

QUESTION: Sir, Minister Lavrov asserted in his address that the ceasefire in Ukraine was being consolidated, but you made clear that Russia cannot expect to consolidate its gains in Debaltseve and avoid economic sanctions. Did Minister Lavrov offer you any assurances that Russia would arrange for the separatists to pull back from Debaltseve? And how long is the Obama Administration prepared to wait before imposing those additional sanctions you’ve been talking about? And did he have any response to your assertion to Congress last week that Russians have lied to your face?

And lastly, you’re meeting shortly with Foreign Minister Zarif on the Iran issues. You told Congress last week that you hoped to know soon, “whether or not Iran is willing to put together an acceptable and verifiable plan.” What do you need to hear from Mr. Zarif today, and what do you need to get done over the next three days to stay on track for the framework accord? Thank you.

SECRETARY KERRY: Well, Michael, first of all regarding Russia, it’s clear from the conversations that I’ve had with President Poroshenko as well as with Foreign Minister Lavrov, and the conversations that we’ve had in Washington in the aftermath of the Minsk negotiations, that there was not a clarity with respect to Debaltseve, which we obviously saw play out in the drama of the soldiers who were left there and who were fighting and who eventually fought their way out, with many being killed. What is critical here is that the maps that were agreed to show several different areas of drawback on both sides from the line of contact and according to the size of the weapon, the gauge of a particular weapon, they have to pull back different amounts.

Right now, the OSCE has complained to us, at least, that they have not been granted full access to be able to make those judgments, and particularly the end zones as to where items that have been withdrawn have actually been placed, whether they’ve been placed there or not.

So there’s been a kind of cherry picking, a piecemeal selectivity to the application of the Minsk agreements. And as we all know, shooting, shelling has still been going on and people have still been killed over the course of these last days. So there is not yet a full ceasefire, and it’s extremely difficult for the full measure of the Minsk agreement, which includes a political component, to begin to be implemented until you actually have the full measure of security that comes with OSCE monitoring and an actual ceasefire. So our hope is that in the next hours, certainly not more than days, this will be fully implemented. I might add, a convoy that came through from Russia passed across the border into the eastern part of Ukraine without being properly inspected also.

So these are the issues I raised with the foreign minister. He assured me that they are intent on seeing to it that the accord – that the agreements are, in fact, implemented. He said he would get back to me with respect to a number of the issues that I raised. And our hope is, indeed, that this will prove to be a road to further de-escalation rather than a road to disappointment, potential deception, and further violence. But that’s going to have to play out, obviously, over the course of the next few days. So I’m very hopeful that it will, in fact, be the start of a change which would be an improvement for everybody.

With respect to Iran, I really just articulated – I just said it – France doesn’t have to answer questions here, Germany doesn’t have to answer questions here, Great Britain doesn’t have to, China doesn’t, Russia doesn’t, the United States doesn’t. We’re not the ones who have been pursuing a program outside of international norms. Iran has posed the questions over the course of time sufficient to invite United Nations sanctions, United Nations Security Council resolution, and IAEA outstanding questions. Iran needs to answer those questions and Iran needs to give confidence to the world that its many articulations of a peaceful program can have the confidence of verification. Every arms agreement in history has been subject to verification to clear levels of access and knowledge and insight, transparency, that allow people to be able to measure that program.

And one of the reasons I make it clear to people that we’re not going to accept a bad deal is because we know that whatever agreement is reached here doesn’t suddenly get stuffed in a drawer and put away and disappear to be implemented; it is going to be scrutinized by people all over the world – leaders of countries, scientists, nuclear experts, every NGO involved in nonproliferation – not to mention, obviously, all the countries in the region most affected by the choices we are making, and all of the members of the United States Congress House and Senate.

This is going to be highly judged and we’re aware of that, and frankly, we would be either – well, I’m not going to – we just – we’re not about to jump into something that we don’t believe can get the job done. Now, there may be disagreements; if somebody believes that any kind of program is wrong, then we have a fundamental disagreement. And clearly, sanctions are not going to eliminate just any kind of program. You can’t bomb knowledge into oblivion unless you kill everybody. You can’t bomb it away. People have a knowledge here. The question is: Can you provide an adequate level of the management of intrusive inspections; structured, tough requirements; limitations; all the insights necessary to be able to know to a certainty that the program is, in fact, peaceful?

That’s what the IAEA was set up to be there for, that’s what the NPT is, that’s what the additional protocol – the NPT is. There are all kinds of tested components of this. This isn’t happening at first blush. This has been in effect for a long time with a lot of countries, and there are ways to be able to make certain that a program is peaceful and the test – what we’re looking for in the next days, Michael, is adequate satisfaction that this program is, in fact, going to be complying with its own promises, that it is a purely peaceful nuclear program.

MS. PSAKI: Frédéric Koller from Le Temps.

QUESTION: Yes, thank you. You just said on Iran that sanctions cannot eliminate problems. And I would like to know – with the Ukrainian situation, it seems the conflict in Ukraine becomes more and more conflict between Russia and Western countries – Russia and United States. And I would like to know how to deal with these problems, knowing that United States threatens now Russia with more sanctions if the Minsk agreement is not implemented. And a few years ago, you were here in the – at the hotel – Intercontinental Hotel, and you started – well, it was Hillary Clinton at the time who started with this reset policy with Russia. What went wrong with Russia? And how to deal now with Russia? Comprehensive agreement somehow is needed between Russia and United States, I guess to deal with --

SECRETARY KERRY: How what? I’m sorry. I missed the last part. How to?

QUESTION: How to deal with Russia. We understand that Russia needs something more to build a new confidence with the United States and Western countries. When we hear Mr. Lavrov this morning at the Human Rights Council, he has very strong statement against United States and its values – it’s kind of clash of values. How to deal with today’s Russia?

SECRETARY KERRY: Well, it may be a clash of realities. I don’t see it as a clash of values. It seems to me that on sanctions, there’s a real distinction between sanctions that are calculated to have an impact on a nuclear program which is one set of choices for a particular country, and sanctions which are broadly adopted by many nations because of a violation of a norm of international law and which particularly have an impact on the – particularly have an impact on Russia’s choices at this particular moment, given a lot of other variables like oil prices, other exigencies that Russia faces.

So sanctions have obviously had a significant impact on Russia, and you try to use them in order to make a point about the choices that are available. And in the case of Russia, the ruble has gone down 50 percent, there’s been about $151 billion of capital flight, the bonds of Russia are now judged to be junk bonds, and the economic predictions are that Russia will be going into recession this year. So it’s obviously had a profound impact, but not sufficient that President Putin has decided that he isn’t going to pursue his particular strategy. It may change at some point in the future, but those are the things you have to weigh in deciding what alternative policies you may pursue or what alternative choices may be available.

I suspect that President Putin, as the months go on, is going to have to really weigh those things. And we’ve tried to make it clear to him and particularly to the Russian people we’re not doing this to hurt the people of Russia, we’re not doing this to make life difficult for all Russians. We’re doing this to try to affect the choices that their leaders are making in order to uphold the norms of international law. We’re here in a UN facility, and the United Nations is critical to the upholding of international standards of behavior. And the world has worked hard since World War II to try to adhere to a set of global norms of behavior, particularly with respect to respect for territorial integrity.

One of the cries that came out of the World War II experience was we can’t allow nations to make land grabs running over the territorial integrity of external borders, as we saw in the period leading up to and then during World War II. So we’ve really ingrained in international behavior this notion of the value of international borders and of upholding the sovereignty and integrity of nation states. That sovereignty and integrity has been violated over the course of the last months, and that’s the purpose of the sanctions that we put in place.

But our hope is, obviously, that we can get back to a better place of cooperation with Russia. I personally – I think President Putin misinterprets a great deal of what the United States has been doing and has tried to do. We are not involved in multiple color revolutions, as he asserts, nor are we involved in a particularly personal way here. We are trying to uphold the international law with respect to the sovereignty and integrity of another nation. And others have joined us. The fact is that Europe has the same sense of commitment to this. And our hope is that we can persuade President Putin and Russia that we’re prepared to cooperate with them as soon as they are genuinely prepared to uphold the agreements that they signed and to live by these international standards.

We have happily been able to find cooperation continue on other issues. Russia has been helpful in the context of the P5+1 talks. Russia was extremely engaged and essential in our success in getting chemical weapons out of Syria in the arrangement that we reached right here in Geneva. And we were able to work together to do that. Russia is sitting with us even now, as I discussed with you, and talking about ways we might – might, I underscore – be able to try to make some progress with respect to Syria and with respect to Daesh.

So even in the midst of this major disagreement over Ukraine, we are still finding ways to cooperate together, and I hope that if we can work through Ukraine, we will get back to a place where we are finding more to be able to cooperate on and less to disagree on. And I’m not going to get into resets or non-resets, but I think that sometimes events get in the way of the best-laid policies. But both countries have indicated, I think, a maturity with respect to the willingness to try to find ways to cooperate notwithstanding this fundamental disagreement over Ukraine.

MS. PSAKI: Unfortunately, we need to get on the road for our next meeting, so this will conclude this press availability. Thank you, everyone.

LANL: ADVANCED MODELING, SIMULATION TECH USED IN LIGHT-WATER REACTOR RESEARCH

FROM:  LOS ALAMOS NATIONAL LABORATORY
Los Alamos Boosts Light-Water Reactor Research with Advanced Modeling and Simulation Technology
Simulated nuclear reactor project benefits from funding extension

LOS ALAMOS, N.M., March 2, 2015, 2014—Hard on the heels of a five-year funding renewal, modeling and simulation (M&S) technology developed at Los Alamos National Laboratory as part of the Consortium for the Advanced Simulation of Light Water Reactors (CASL) will now be deployed to industry and academia under a new inter-institutional agreement for intellectual property.

“This agreement streamlines access to the reactor simulation research tools,” said Kathleen McDonald, software business development executive for the Laboratory, “and with a single contact through UT-Battelle, we have a more transparent release process, the culmination of a lengthy effort on the part of all the code authors,” she said.

CASL is a US Department of Energy “Energy Innovation Hub” established in 2010 to develop advanced M&S capabilities that serve as a virtual version of existing, operating nuclear reactors. As announced by DOE in January, the hub would receive up to $121.5 million over five years, subject to congressional appropriations. Over the next five years, CASL researchers will focus on extending the M&S technology built during its first phase to include additional nuclear reactor designs, including boiling water reactors and pressurized water reactor-based small modular reactors.

CASL’s Virtual Environment for Reactor Applications (VERA) – essentially a “virtual” reactor – has currently been deployed for testing to CASL’s industrial partners. Created with CASL Funding, VERA consists of CASL Physics Codes and the software that couples CASL Physics Codes to create the computer models to predict and simulate light water reactor (LWR) nuclear power plant operations. VERA is being validated with data from a variety of sources, including operating pressurized water reactors such as the Watts Bar Unit 1 Nuclear Plant in Tennessee, operated by the Tennessee Valley Authority (TVA)

As one of the original founding CASL partners, Los Alamos will continue to play an important role in Phase 2 of CASL.  Specifically, Los Alamos has leadership roles in three technical focus areas: Thermal Hydraulics Methods (THM), Fuel, Materials and Chemistry (FMC) and Validation and Modeling Applications (VMA).

Thermal-Hydraulics applications range from fluid-structure interaction to boiling multiphase flows. The Los Alamos-led THM team is targeting a number of industry-defined CASL “challenge problems” related to corrosion, fretting and departure from nucleate boiling.

The Fuel, Materials and Chemistry (FMC) Focus Area aims to develop improved materials performance models for fuel and cladding, and integrate those models via constitutive relations and behavioral models into VERA.  In particular, Los Alamos will bring to bear experience in structure-property relations, mechanical deformation and chemical kinetics to address several key aspects of nuclear fuel performance.

The Validation and Modeling Applications (VMA) Focus Area applies the products developed by CASL to address essential industry issues for achieving the CASL objectives of power uprates, lifetime extension, and fuel burn up limit increases, while ensuring the fuel performance and safety limits are met.

Los Alamos will continue to provide functions that are essential for achieving credible, science-based predictive modeling and simulation capabilities, including verification, validation, calibration through data assimilation, sensitivity analysis, discretization error analysis and control, and uncertainty quantification.

The new IIA agreement makes one of the Los Alamos-developed software tools, MAMBA, available for research, subject to agreements through the consortium partners. In addition, the Hydra-TH application is provided under an open-source license in VERA for advanced, scalable single and multiphase computational fluid dynamics simulations.

CASL, which is led by and headquartered at Oak Ridge National Laboratory (ORNL), has created hundreds of technical reports and publications and wide engagement with nuclear reactor technology vendors, utilities, and the advanced computing industry.

Doug Kothe, CASL Director at ORNL, notes that “CASL has benefitted tremendously from the innovative technical contributions and leadership provided by Los Alamos technical staff and is fortunate to have these contributions continuing as CASL moves into its second five-years of execution.”

SEC MOVES TO THWART PUMP-AND-DUMP SCHEMES BY SUSPENDING TRADES IN 128 SHELL COMPANIES

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
SEC Suspends Trading in 128 Dormant Shell Companies to Put Them Out of Reach of Microcap Fraudsters
03/02/2015 10:15 AM EST

The Securities and Exchange Commission today announced it has suspended trading in 128 inactive penny stock companies to ensure they don’t become a source for pump-and-dump schemes.

The trading suspensions are the latest in a microcap fraud-fighting initiative known as Operation Shell-Expel in which the SEC Enforcement Division’s Office of Market Intelligence utilizes technology to scour the over-the-counter (OTC) marketplace and identify dormant companies ripe for abuse.  The proactive efforts have prevented fraudsters from having the opportunity to manipulate these thinly-traded stocks by pumping the companies’ stock value through false and misleading promotional campaigns and then dumping the stocks after investors buy in.

Since it began in 2012, Operation Shell-Expel has resulted in trading suspensions of more than 800 microcap stocks, which comprises more than 8 percent of the OTC market.  Once a stock has been suspended from trading, it cannot be relisted unless the company provides updated financial information to prove it’s actually operational.  It’s extremely rare for a company to fulfill this requirement, and the trading suspensions essentially render the shells worthless and useless to scam artists.

“Operation Shell-Expel continues to be an efficient way to combat microcap fraud by denying fraudsters the empty nests they need to hatch their schemes,” Andrew J. Ceresney, Director of the SEC Enforcement Division.  “We are getting increasingly aggressive and adept at ridding the microcap marketplace of dormant shells within a year of the companies becoming inactive.”

Today’s massive trading suspension identifies dormant shell companies in 24 states and Canada.

The Operation Shell-Expel initiative has been led by William Hankins, Margaret Cain, Robert Bernstein, Victoria Adraktas, LaVerne Patterson, Jessica P. Regan, Leigh Barrett, and John Gibbons in the Office of Market Intelligence with assistance from the Enforcement Division’s Delinquent Filings Group.  The SEC appreciates the assistance of the FBI’s Economic Crimes Unit.

Monday, March 2, 2015

U.S. CONGRATULATES PEOPLE OF BULGARIA ON THEIR NATIONAL DAY

FROM:  U.S. STATE DEPARTMENT
Statement on the Occasion of Bulgaria's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
March 2, 2015

On behalf of President Obama and the people of the United States, I congratulate the people of Bulgaria on your National Day.

I visited Sofia in January, where I saw firsthand the impressive progress your nation has made since independence and the coming of demokratsiya more than two decades ago. I walked your famous yellow brick roads and marveled at the frescoes of St. George Church. It was along those same yellow bricks that Bulgarians held candle light vigils, sang the same protest ballads as Americans did in the 1960s, and peacefully brought an end to communism at the base of Vitosha Mountain.

In Sofia, I also met with President Plevneliev, Prime Minister Borissov, and Foreign Minister Mitov. Our nations have stood shoulder to shoulder as allies for more than a decade. America’s Article V NATO commitment to Bulgaria is rock solid. We deeply appreciate the sacrifices your soldiers have made to promote global stability and to enable the citizens of the Balkans, Afghanistan, and Iraq to live in peace and security.

The United States looks forward to continuing to deepen our partnership through our strategic dialogue on security and defense, energy security and diversification, rule of law, educational exchanges, cultural preservation and people-to-people ties.

DOD REPORTS ON CONTINUING AIRSTRIKES AGAINST ISIL

FROM:  U.S. DEFENSE DEPARTMENT
Airstrikes Continue Against ISIL in Syria, Iraq
From a Combined Joint Task Force Operation Inherent Resolve News Release

SOUTHWEST ASIA, March 1, 2015 – U.S. and coalition military forces have continued to attack Islamic State of Iraq and the Levant terrorists in Syria and Iraq, Combined Joint Task Force Operation Inherent Resolve officials reported today.

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

 Remotely piloted aircraft conducted two airstrikes in Syria:

-- Near Al Hasakah, two airstrikes struck an ISIL tactical unit and destroyed two ISIL vehicles.

Airstrikes in Iraq

Attack, fighter and remotely piloted aircraft conducted seven airstrikes in Iraq:
-- Near Asad, an airstrike struck an ISIL tactical unit and destroyed an ISIL storage facility and two ISIL boats.

-- Near Qaim, an airstrike destroyed an ISIL building.

-- Near Kirkuk, an airstrike struck an ISIL tactical unit and destroyed two ISIL storage containers.

-- Near Mosul, four airstrikes struck two ISIL tactical units, an ISIL building, an ISIL excavator and destroyed an ISIL building.

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, officials said.

Coalition nations conducting airstrikes in Iraq include the United States, Australia, Belgium, Canada, Denmark, France, the Netherlands and the United Kingdom. Coalition nations conducting airstrikes in Syria include the United States, Bahrain, Jordan, Saudi Arabia and the United Arab Emirates.

NASA VIDEO| CATS UP AND RUNNING ON THE ISS

DOJ ANNOUNCES SETTLEMENT OF 2ND PREGNANCY DISCRIMINATION LAWSUIT AGAINST A FLORIDA FIRE DEPARTMENT

FROM:  U.S. JUSTICE DEPARTMENT
Wednesday, February 25, 2015
Justice Department Settles Second Pregnancy Discrimination Lawsuit Against the Davie, Florida, Fire Department

The Justice Department today announced that it has reached a consent decree with the town of Davie, Florida, to resolve allegations that the Davie Fire Department discriminated against firefighter/paramedic Lori Davis because of her pregnancy and retaliated against firefighter/paramedic Monica Santana because she complained about gender discrimination.  Title VII of the Civil Rights Act of 1964 prohibits discrimination in employment on the basis of race, color, sex, national origin and religion.

According to the Justice Department, the consent decree resolves allegations of disparate treatment based on pregnancy that resulted from light duty policies implemented by the Davie Fire Department.  In 2012, the Department of Justice challenged those discriminatory light duty policies in a related pattern or a practice Title VII case resulting in the filing of a complaint and consent decree to resolve the case.  The consent decree entered by the U.S. District Court for the Southern District of Florida required that the fire department abandon its existing discriminatory light duty policies and adopt new, non-discriminatory policies.  This new complaint is the result of individual charges of discrimination referred to the Justice Department by the Equal Employment Opportunity Commission.  

As alleged by the Justice Department in this complaint, Davis worked for the Davie Fire Department under its prior policies and was adversely affected by those policies which were implemented in violation of Title VII.  Under Title VII, discrimination based on sex includes discrimination due to pregnancy, and requires that women affected by pregnancy be treated the same as other employees who are similar in their ability or inability to work.  Under federal law, an employer may not retaliate against employees because they complain about discrimination based on sex.

As alleged in the complaint, Davis’s doctor wanted Davis on light duty during her pregnancy.  The fire department’s policy, however, would not allow her light duty during her first trimester.  Davis continued to work and eventually was required to fight a fire while pregnant.  She suffered a miscarriage after doing so.  The complaint also alleges that Santana complained about other policies and practices at the fire department that she reasonably believed discriminated against female firefighters.  After she complained about the discriminatory treatment, the fire department responded to her complaints by taking adverse actions against her designed to discourage similar complaints.                      

The consent decree, filed simultaneously with the complaint in U.S. District Court for the Southern District of Florida must still be approved by the federal court.  Under the terms of the agreement, the fire department must review and adopt appropriate anti-retaliation policies to protect its employees from further violations of Title VII and conduct training of its personnel to ensure that they properly handle future complaints under Title VII.  The fire department must also pay monetary awards to compensate Davis, Santana, and two other similarly-situated, pregnant firefighters.  The total monetary awards to all four women will exceed $400,000.

“Every day, expectant mothers after consulting with their doctors make difficult decisions about how and, more importantly, when to restrict their work duties due to pregnancy,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “The Civil Rights Division is firmly committed to vigorous enforcement of Title VII’s prohibitions against pregnancy discrimination and retaliation so that women can make decisions regarding their pregnancies and try to remedy discriminatory treatment without fear of unwarranted repercussions in the work place after doing so.”

“Firefighters are dedicated public servants who put their lives at risk every day to protect the citizens of our community,” said U.S. Attorney Wilfredo A. Ferrer of the Southern District of Florida.  “We are committed to enforcing the federal laws that protect expectant mothers against discrimination so that they will not be forced to choose between their job and their decision to have a family.”

READOUT: DRL DEPUTY ASSITANT SECRETARY FELDSTEIN'S TRIP TO SUDAN

FROM:   U.S. STATE DEPARTMENT
Democracy, Human Rights, and Labor: Readout of DRL Deputy Assistant Secretary Feldstein Trip to Sudan
02/28/2015 11:33 AM EST

Readout of DRL Deputy Assistant Secretary Feldstein Trip to Sudan

Media Note
Office of the Spokesperson
Washington, DC
February 28, 2015

During his February 22-26 visit to Sudan, Deputy Assistant Secretary of State for Democracy, Human Rights and Labor Steve Feldstein met with Sudanese government leaders, representatives of non-governmental organizations, and civil society activists, including representatives of Sudan’s religious communities, journalists, and humanitarian groups and internally displaced persons (IDPs) in Blue Nile State. His visit highlights the importance of advancing democracy and human rights in Sudan and resolving the ongoing conflicts in Darfur and the Two Areas. He also reiterated U.S. support for an inclusive and comprehensive National Dialogue to resolve Sudan’s conflicts. Deputy Assistant Secretary Feldstein said the United States will continue to emphasize key democracy and human rights priorities in Sudan. He underscored the importance of ending human rights abuses especially in Darfur and the Two Areas, increasing space for civil society, opposition political parties, activists, and journalists, and addressing concerns about religious freedom.

In meetings with Sudanese government officials Deputy Assistant Secretary Feldstein expressed his concern about targeted attacks against civilians in Darfur and the Two Areas, including aerial bombardments of civilian targets, and attacks on aid workers. He called upon the Government of Sudan to fully investigate and hold perpetrators of these acts accountable as a necessary step towards peace. Feldstein urged the government to allow the UN to investigate the allegations of mass rape in the town of Tabit, and bring the perpetrators to justice. Feldstein further called on the government to create a conducive environment for National Dialogue and pressed for the release of political prisoners including Farouq Abu Eissa, Amin Mekki Medani, and Farah Agar.

Members of Sudan’s human rights community and civil society highlighted a range of concerns, including harassment, intimidation, detention, government restrictions on their ability to operate, and severe violations of religious freedom.‎ Deputy Assistant Secretary Feldstein expressed concern that the Sudanese government had confiscated at least 15 newspaper print runs and stressed that respect for press freedom, freedom of expression, and freedom of association would demonstrate the government's commitment to National Dialogue.

In Blue Nile State Deputy Assistant Secretary Feldstein noted that the situation continues to deteriorate, hundreds of thousands remain displaced from their homes, and restrictions on access continue to limit the ability of humanitarian organizations to reach people in need. In meetings with local officials he raised allegations of human rights abuses, including those involving rape, beatings, assault, and restrictions of movement for displaced persons.

DAS Feldstein said the United States remains committed to the Sudanese people and pledged to continue our efforts to advance respect for human rights for the Sudanese people.

DAS Feldstein’s engagement with nongovernment representatives and government officials reinforces the United States’ belief that a comprehensive and inclusive national dialogue to address the deteriorating environment for human rights and civil liberties is urgent. The United States in the coming weeks will be working closely with international partners to encourage and support an inclusive political dialogue, including by continuing to press for a cessation of hostilities in all conflict areas. Finally, the United States will continue to condition development of its bilateral relationship with Sudan on the Sudanese government improving its respect for human rights and democratic principles.

SEC CHARGES CAPITAL FUND MANAGER WITH USING INVESTMENT FUND MONEY TO PAY RETURNS ON DIFFERENT FUND

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission charged a purported venture capital fund manager in Buffalo, N.Y., with fraudulently using money from three investment funds to pay fictitious returns to investors in a different fund.  The SEC obtained an emergency asset freeze to halt the Ponzi-like scheme.

The SEC alleges that Gregory W. Gray Jr. and his firms Archipel Capital LLC and BIM Management LP solicited money for a fund created to invest in pre-IPO shares of Twitter that would be delivered to investors with profits once the company went public.  Gray raised nearly $5.3 million from investors, which was enough to purchase 230,000 pre-IPO Twitter shares under the terms of the fund’s offering documents.  However, only 80,000 shares were actually purchased before Twitter went public in November 2013.  Faced with increasing pressure from investors to deliver the promised shares and profits, Gray allegedly stalled and stole to make up the shortfall by tapping three other unrelated funds to pay investors in the Twitter-related fund.

According to the SEC’s complaint filed in the U.S. District Court for the Southern District of New York, the majority of money used to make these Ponzi-like payments came from one investor who was told he had bought the entirety of a fund supposedly investing in $5 million worth of stock in Uber Technologies.  In an attempt to show the investor that the fund had purchased Uber stock while his money actually was being used to pay other investors, Gray fabricated a document using the signature pages of an earlier legitimate stock purchase agreement for shares in a completely different company.  The alleged seller of the Uber shares never even owned Uber stock.

“Gray sold investors on a seemingly great idea to acquire pre-IPO shares of high-profile companies like Twitter and Uber at a low price.  But rather than come clean when he failed to invest as promised, Gray stole from investors to cover his misdeeds,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office.

The SEC’s complaint charges Gray and his firms with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8.  Gray is additionally charged with aiding and abetting Exchange Act Section 10(b) and Rule 10b-5 violations.  The SEC’s complaint seeks, in addition to preliminary relief and a temporary restraining order, permanent injunctions and disgorgement against all defendants and a financial penalty.  The SEC’s complaint names several relief defendants associated with Archipel Capital and BIM for the purposes of recovering proceeds they received from the fraud.

The SEC’s investigation, which is continuing, has been conducted by Hane L. Kim, Victor Suthammanont, Steven G. Rawlings, Elizabeth Baier, George O’Kane, Debbie Chan, and Douglas Smith of the New York Regional Office.  The litigation will be led by Nancy A. Brown, Hane Kim, and Victor Suthammanont.  The case is being supervised by Sanjay Wadhwa.

ED. DEPT. ENDS CONTRACTS WITH 5 PRIVATE COLLECTION AGENCIES FOR ALLEGEDLY PROVIDING BORROWERS INACCURATE INFORMATION

FROM:  U.S. EDUCATION DEPARTMENT
U.S. Department of Education to End Contracts with Several Private Collection Agencies
After finding high incidences of materially inaccurate representations, Department acts to protect consumers

FEBRUARY 27, 2015

Following a review of 22 private collection agencies, the U.S. Department of Education announced today that it will wind down contracts with five private collection agencies that were providing inaccurate information to borrowers. The five companies are: Coast Professional, Enterprise Recovery Systems, National Recoveries, Pioneer Credit Recovery, and West Asset Management.

The Department also announced that it will provide enhanced Fair Debt Collection Practices Act and Unfair, Deceptive, or Abusive Acts or Practices monitoring and guidance for all private collection agencies that work with the Department to ensure that companies are consistently providing borrowers with accurate information regarding their loans.

"Federal Student Aid borrowers are entitled to accurate information as they make critical choices to manage their debt," said Under Secretary Ted Mitchell. "Every company that works for the Department must keep consumers' best interests at the heart of their business practices by giving borrowers clear and accurate guidance. It is our responsibility – and our commitment – to uphold the highest standards of service for America's student borrowers and consumers."

During the past several months, the Department's Federal Student Aid (FSA) office performed a review of all private collection agencies that FSA works with. In these reviews, the Department sought to ensure that its private collection agencies were complying with the terms of the contract, which includes assurances that the agencies would not engage in unfair or deceptive practices and would comply with all applicable Federal and State laws.

In its review, the Department found that agents of the companies made materially inaccurate representations to borrowers about the loan rehabilitation program, which is an option that can create benefits to defaulted borrowers after they have made nine on-time payments in a period of 10 months. The five private collection agencies listed above were found to have given inaccurate information at unacceptably high rates about these benefits. In particular, these agencies gave borrowers misleading information about the benefits to the borrowers' credit report and about the waiver of certain collection fees.

The Department will reassign accounts held by these five agencies which are not already in repayment to other agencies. The Department will also increase monitoring to ensure that the students who began rehabilitation under the five private collection agencies will be treated fairly as they complete the rehabilitation process. Lastly, the Department will issue enhanced guidance to all remaining private collection agencies, increase internal training for FSA staff, enhance the private collection agency manual, expand monitoring for these types of issues, and refine its internal escalation practices.

FSA administers and oversees the federal student financial assistance programs, authorized under Title IV of the Higher Education Act of 1965 (HEA). These programs represent the largest source of student aid for postsecondary education in the United States. The Office of the Under Secretary manages policies, programs, and activities related to postsecondary education.

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