FROM: NATIONAL SCIENCE FOUNDATION
Springtime night lights: Finding the aurora
Aurorasaurus project allows aurora-viewers around the world to compare sightings
Dance of the spirits, it's known by the Cree, one of North America's largest groups of Native Americans.
The phenomenon, called the aurora borealis in the Northern Hemisphere and aurora australis in the Southern Hemisphere, is indeed a dance of particles and magnetism between the sun and the Earth.
The sun continuously produces a solar wind of charged particles, or plasma. As that "breath" reaches Earth, it causes our planet's magnetic field to shapeshift from round to teardrop--with a long tail on the side farthest from the sun.
The teardrop-stretched field ultimately reconfigures into two parts, one controlled by Earth's magnetic field, the other by the solar wind.
The instability excites the solar-charged particles. They follow spiral paths along lines connecting Earth's north and south magnetic poles to its atmosphere.
"What happens next," says scientist Elizabeth MacDonald of the New Mexico Consortium in Los Alamos, "is one of nature's most spectacular sights: the aurora."
The light of the aurora is emitted when the charged particles collide with gases in Earth's upper atmosphere.
Glimpsing an aurora
How often the aurora is visible in an area, MacDonald says, depends upon a host of factors, including the intensity of the solar wind; the season--the aurora may be strongest around the spring and fall equinoxes; whether the sun is near the peak of its 11-year cycle; and how far someone is from what scientists call the auroral oval, the lights' ring-shaped display.
Knowing where and when an aurora is happening has been difficult to find out--until now. A new project called Aurorasaurus allows citizens around the world to track auroras and report on their progress.
Visitors to the Aurorasaurus website can see where an aurora is happening in real-time, let other Aurorasaurus visitors know of an aurora's existence, and receive "early warnings" when an aurora is likely to happen in their Earth-neighborhood.
Aurora-power
"Auroras are beautiful displays that have fascinated humans through the ages," says Therese Moretto Jorgensen, program director in the National Science Foundation's (NSF) Directorate for Geosciences, which, along with NSF's Directorate for Education and Human Resources and Directorate for Computer & Information Science & Engineering, funds Aurorasaurus through NSF's INSPIRE program.
INSPIRE supports projects whose scientific advances lie outside the scope of a single program or discipline, lines of research that promise transformational advances, and prospective discoveries at the interfaces of scientific boundaries.
"Auroras are of major interest," says Moretto Jorgensen, "because of their effects on Earth. There's a close relationship between auroras and the magnetic variations that pose a threat to the power grid.
"A better understanding of when and where auroras happen will help us develop models that can forecast these potentially hazardous events."
Amassing new data
Scientists hope that by amassing data from thousands of aurora-viewers, they'll learn more about the solar storms that can disrupt or destroy Earth's communications networks and affect the planet's navigation, pipeline, electrical and transportation systems.
During one solar storm in 1989, transformers in New Jersey melted and wiped out power all the way to Quebec, leaving millions of people in the dark.
The largest such solar storm in history, the Carrington Event, zapped Earth in 1859. It was so large it lit up the skies with auroras from the poles to the tropics. Electrical currents from the storm caused fires in telegraph systems and knocked out communications.
St. Patrick's Day magic in the skies
Could it happen again? Yes, if St. Patrick's Day this year is any guide.
On March 17, 2015, researchers and the public were treated to once-a-decade views. As people waited for glimpses of leprechauns, they saw something even more magical, viewers say.
Earth experienced the biggest solar storm to date of this 11-year sun cycle, sparking auroras around the world.
The St. Patrick's Day auroras, many of which were indeed green, were a fortuitous combination of events. Two days earlier, there was an explosion on the sun. The explosion, called a coronal mass ejection (CME), unleashed a blast of gas bubbles that created a strong disturbance as it collided with Earth's magnetic field.
The CME's magnetic field was directed southward, opposite to the Earth's magnetic field, and the solar wind whipped by very fast, says MacDonald.
"The storm's conditions led to a perfect environment for aurora-hunting," she says. On a scale of G1 (minor) to G5 (extreme), the storm reached a G4, or "severe" level.
The storm's Kp index, a global solar storm index, registered in the 6-8 range (9 is the highest).
Rare aurora-viewing--all the way to the southern U.S.
The strong solar wind blew for more than 24 hours, creating auroras visible as far south as the central and southern United States--a very rare occurrence.
The solar storm's peak hit during the daytime over most of the United States and Europe, but the storm persisted into the night and offered Americans and Europeans a brilliant nighttime light show.
Aurorasaurus reports came in from unusual regions: the south of England, Germany and Poland. In the United States, people spotted auroras in states such as Pennsylvania, Virginia and Colorado.
Data peak from Aurorasaurus users
Aurorasaurus participants logged more than 160 sightings during the St. Patrick's Day solar storm.
From midnight on March 17th through mid-day on March 18th, the number of registered users increased by 50 percent. Registering allows Aurorasaurus to communicate information in return, sending location-based sighting alerts.
"We combine reports to provide real-time alerts when auroras might be visible nearby," says MacDonald. "During this storm alone, we issued 361 such notifications.
"We're using Aurorasaurus data to improve auroral oval models, and to develop a better notification system using both satellite-based data and citizen science data."
Adds Moretto Jorgensen, "Auroras on a global scale are very difficult to capture using traditional scientific methods. Human observers linked through Aurorasaurus are a unique network for documenting them."
Whether on St. Patrick's Day or any other Earth-day, the aurora carries a message: take time to look up at one of the planet's most breathtaking sights.
Then look down, to be sure you can send photos of the event from your cell phone. Spirits dancing across the skies may have played havoc with its transmissions.
-- Cheryl Dybas, NSF
Investigators
Andrea Tapia
Michelle Hall
Elizabeth MacDonald
Friday, April 3, 2015
SWISS ASSET MANAGER PLEADS GUILTY IN CASE INVOLVING TAX EVASION
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, March 31, 2015
Swiss Asset Manager Pleads Guilty in Federal Court to Conspiring with U.S. Taxpayers to Evade Federal Income Taxes and File False Tax Returns
A Swiss citizen and former asset manager at a Swiss asset management firm pleaded guilty to conspiring with U.S. taxpayer-clients and others to help U.S. taxpayers hide millions of dollars in offshore accounts from the Internal Revenue Service (IRS), and to evade U.S. taxes on the income earned in those accounts, the Justice Department announced.
Peter Amrein, 53, a Swiss citizen, pleaded guilty before U.S. District Judge Sidney H. Stein of the Southern District of New York pursuant to a plea agreement to one count of conspiracy to defraud the IRS, to evade federal income taxes and to file false federal income tax returns. Amrein faces a maximum sentence of five years in prison at his July 1 sentencing before Judge Stein.
“Peter Amrein’s guilty plea today is another example of individuals being held culpable, in addition to institutions, for their criminal violations of U.S. tax laws,” said U.S. Attorney Preet Bharara of the Southern District of New York. “Regardless of the elaborate scheme you might employ, we will use all of our investigative powers to ensure that all citizens pay their fair share, and that those who assist them in evading our laws are also held responsible.”
According to the allegations in the superseding Information and the prior indictment, as well as statements made during the plea proceeding and other documents filed in federal court in Manhattan, New York:
Amrein worked as a client advisor at a Swiss bank (Swiss Bank No. 3) and, later, as an asset manager at a Swiss asset management firm (the Swiss Asset Management Firm). In those roles, between 1998 and 2012, Amrein helped U.S. taxpayers evade taxes and hide millions of dollars in undeclared accounts at various Swiss banks, including Wegelin & Co., which was charged and pleaded guilty in the Southern District of New York for its conduct in conspiring with U.S. taxpayers to evade taxes. Amrein, among other things, worked with an attorney based in Zurich, to establish sham foundations, which were organized under the laws of non-U.S. countries such as Liechtenstein, so that the undeclared assets of certain of Amrein’s U.S. taxpayer-clients could be maintained in the names of these foreign foundations rather than in the clients’ own names. Amrein did so in order to help his clients conceal their ownership of these undeclared accounts from the IRS.
In 2008, it became publicly known that UBS AG (UBS) was being investigated by U.S. law enforcement for helping U.S. taxpayers maintain undeclared accounts in Switzerland. Because of the investigation of UBS, one of the Swiss banks where Amrein had opened undeclared accounts for U.S. taxpayers (Swiss Bank No. 4) informed Amrein that it was going to close these undeclared accounts. In order to assist his clients in continuing to maintain undeclared accounts, Amrein searched for other banks in Switzerland that, despite the public investigation of UBS, were still willing to open undeclared accounts for U.S. taxpayers. Amrein found such a bank (Swiss Bank No. 1). Thereafter, Amrein opened undeclared accounts for U.S. taxpayer-clients at Swiss Bank No. 1 in the name of sham foundations, and transferred the clients’ undeclared assets from Swiss Bank No. 4 to these accounts at Swiss Bank No. 1.
For some of these clients, Amrein, with the assistance of others, helped send funds back to the United States and to other foreign jurisdictions in ways that were designed to ensure that U.S. authorities would not discover the existence of the clients’ undeclared accounts. For instance, Amrein instructed a client advisor at Swiss Bank No. 1 (the Swiss Bank No. 1 Client Advisor) to empty one of the accounts by sending checks in amounts smaller than $9,900 to the beneficial owner of the account, i.e., the U.S. taxpayer. On another occasion, Amrein instructed the Swiss Bank No. 1 Client Advisor to transfer the balance of one of the accounts, which was then valued at more than $2.4 million, to another account controlled by the U.S. taxpayer in Belize City, Belize. Moreover, as late as 2011, Amrein continued to look for other Swiss banks that were still willing to open undeclared accounts for U.S. taxpayers. For example, in June 2011, Amrein met with a client advisor at a Swiss bank (Swiss Bank No. 2), to discuss opening undeclared accounts for U.S. taxpayer-clients at Swiss Bank No. 2.
Mr. Bharara praised the outstanding investigative work of the IRS-Criminal Investigations. He also thanked the Department of Justice’s Tax Division for their significant assistance in the investigation.
Tuesday, March 31, 2015
Swiss Asset Manager Pleads Guilty in Federal Court to Conspiring with U.S. Taxpayers to Evade Federal Income Taxes and File False Tax Returns
A Swiss citizen and former asset manager at a Swiss asset management firm pleaded guilty to conspiring with U.S. taxpayer-clients and others to help U.S. taxpayers hide millions of dollars in offshore accounts from the Internal Revenue Service (IRS), and to evade U.S. taxes on the income earned in those accounts, the Justice Department announced.
Peter Amrein, 53, a Swiss citizen, pleaded guilty before U.S. District Judge Sidney H. Stein of the Southern District of New York pursuant to a plea agreement to one count of conspiracy to defraud the IRS, to evade federal income taxes and to file false federal income tax returns. Amrein faces a maximum sentence of five years in prison at his July 1 sentencing before Judge Stein.
“Peter Amrein’s guilty plea today is another example of individuals being held culpable, in addition to institutions, for their criminal violations of U.S. tax laws,” said U.S. Attorney Preet Bharara of the Southern District of New York. “Regardless of the elaborate scheme you might employ, we will use all of our investigative powers to ensure that all citizens pay their fair share, and that those who assist them in evading our laws are also held responsible.”
According to the allegations in the superseding Information and the prior indictment, as well as statements made during the plea proceeding and other documents filed in federal court in Manhattan, New York:
Amrein worked as a client advisor at a Swiss bank (Swiss Bank No. 3) and, later, as an asset manager at a Swiss asset management firm (the Swiss Asset Management Firm). In those roles, between 1998 and 2012, Amrein helped U.S. taxpayers evade taxes and hide millions of dollars in undeclared accounts at various Swiss banks, including Wegelin & Co., which was charged and pleaded guilty in the Southern District of New York for its conduct in conspiring with U.S. taxpayers to evade taxes. Amrein, among other things, worked with an attorney based in Zurich, to establish sham foundations, which were organized under the laws of non-U.S. countries such as Liechtenstein, so that the undeclared assets of certain of Amrein’s U.S. taxpayer-clients could be maintained in the names of these foreign foundations rather than in the clients’ own names. Amrein did so in order to help his clients conceal their ownership of these undeclared accounts from the IRS.
In 2008, it became publicly known that UBS AG (UBS) was being investigated by U.S. law enforcement for helping U.S. taxpayers maintain undeclared accounts in Switzerland. Because of the investigation of UBS, one of the Swiss banks where Amrein had opened undeclared accounts for U.S. taxpayers (Swiss Bank No. 4) informed Amrein that it was going to close these undeclared accounts. In order to assist his clients in continuing to maintain undeclared accounts, Amrein searched for other banks in Switzerland that, despite the public investigation of UBS, were still willing to open undeclared accounts for U.S. taxpayers. Amrein found such a bank (Swiss Bank No. 1). Thereafter, Amrein opened undeclared accounts for U.S. taxpayer-clients at Swiss Bank No. 1 in the name of sham foundations, and transferred the clients’ undeclared assets from Swiss Bank No. 4 to these accounts at Swiss Bank No. 1.
For some of these clients, Amrein, with the assistance of others, helped send funds back to the United States and to other foreign jurisdictions in ways that were designed to ensure that U.S. authorities would not discover the existence of the clients’ undeclared accounts. For instance, Amrein instructed a client advisor at Swiss Bank No. 1 (the Swiss Bank No. 1 Client Advisor) to empty one of the accounts by sending checks in amounts smaller than $9,900 to the beneficial owner of the account, i.e., the U.S. taxpayer. On another occasion, Amrein instructed the Swiss Bank No. 1 Client Advisor to transfer the balance of one of the accounts, which was then valued at more than $2.4 million, to another account controlled by the U.S. taxpayer in Belize City, Belize. Moreover, as late as 2011, Amrein continued to look for other Swiss banks that were still willing to open undeclared accounts for U.S. taxpayers. For example, in June 2011, Amrein met with a client advisor at a Swiss bank (Swiss Bank No. 2), to discuss opening undeclared accounts for U.S. taxpayer-clients at Swiss Bank No. 2.
Mr. Bharara praised the outstanding investigative work of the IRS-Criminal Investigations. He also thanked the Department of Justice’s Tax Division for their significant assistance in the investigation.
AG HOLDER RESTRICTS CERTAIN ASSET FORFEITURES
FROM: U.S. DEFENSE DEPARTMENT
Tuesday, March 31, 2015
Attorney General Restricts Use of Asset Forfeiture in Structuring Offenses
New Policy Limits Seizing Cash Deposited in a Way to Avoid Triggering Bank Reports to Most Serious Cases
As part of the Department of Justice’s comprehensive, ongoing review of the asset forfeiture program, Attorney General Eric Holder today issued a policy focusing the use of asset forfeiture authorities on the most serious illegal banking transactions, restricting civil or criminal forfeiture seizures for structuring until after a defendant has been criminally charged or has been found to have engaged in additional criminal activity, in most cases.
“With this new policy, the Department of Justice is taking action to ensure that we are allocating our resources to address the most serious offenses,” said Attorney General Holder. “Appropriate use of asset forfeiture law allows the Justice Department to safeguard the integrity, security and stability of our nation’s financial system while protecting the civil liberties of all Americans. And as we continue our comprehensive review of the Asset Forfeiture Program, we will stay focused on deterring criminal activity, assisting victims of wrongdoing and defending the rights of our citizens.”
Structuring generally occurs when, instead of conducting a single transaction in currency in an amount that would require a report to be filed or record made by a domestic financial institution, the violator conducts a series of currency transactions, willfully keeping each individual transaction at an amount below applicable thresholds to evade reporting or recording. In addition to being a stand-alone offense, structuring is a crime that often occurs in connection with other criminal activity.
Under the new policy, in the absence of criminal charges, judicially authorized warrants to seize bank accounts involved in structuring can only be obtained if the prosecutor first develops probable cause of additional federal criminal activity and that determination is approved by a supervisor. Otherwise, a prosecutor may ask a judge to issue a seizure warrant only if either the U.S. Attorney or the Chief of the Criminal Division’s Asset Forfeiture and Money Laundering Section personally determines that seizure would serve a compelling law enforcement interest.
In addition, the new policy imposes important protections after a seizure has taken place. The policy requires a prosecutor to promptly direct a seizing agency to return funds if the prosecutor determines that there is insufficient admissible evidence to prevail in a criminal or civil trial. The policy also imposes a 150-day deadline to file a criminal indictment or civil complaint against the seized funds, or otherwise directs a return of the full amount of the seized funds. Finally, the policy requires a formal, written settlement agreement vetted by a federal prosecutor for settlements of structuring offenses.
This new policy is the most recent result of the department’s ongoing review of the Asset Forfeiture Program to ensure that asset forfeiture – a critical law enforcement tool – can continue to be used to appropriately take the profits out of crime and return assets to victims, all while safeguarding civil liberties.
The policy was developed by the Asset Forfeiture and Money Laundering Section of the Criminal Division and the Attorney General’s Advisory Committee of U.S. Attorneys. The policy applies to all Department of Justice attorneys.
Tuesday, March 31, 2015
Attorney General Restricts Use of Asset Forfeiture in Structuring Offenses
New Policy Limits Seizing Cash Deposited in a Way to Avoid Triggering Bank Reports to Most Serious Cases
As part of the Department of Justice’s comprehensive, ongoing review of the asset forfeiture program, Attorney General Eric Holder today issued a policy focusing the use of asset forfeiture authorities on the most serious illegal banking transactions, restricting civil or criminal forfeiture seizures for structuring until after a defendant has been criminally charged or has been found to have engaged in additional criminal activity, in most cases.
“With this new policy, the Department of Justice is taking action to ensure that we are allocating our resources to address the most serious offenses,” said Attorney General Holder. “Appropriate use of asset forfeiture law allows the Justice Department to safeguard the integrity, security and stability of our nation’s financial system while protecting the civil liberties of all Americans. And as we continue our comprehensive review of the Asset Forfeiture Program, we will stay focused on deterring criminal activity, assisting victims of wrongdoing and defending the rights of our citizens.”
Structuring generally occurs when, instead of conducting a single transaction in currency in an amount that would require a report to be filed or record made by a domestic financial institution, the violator conducts a series of currency transactions, willfully keeping each individual transaction at an amount below applicable thresholds to evade reporting or recording. In addition to being a stand-alone offense, structuring is a crime that often occurs in connection with other criminal activity.
Under the new policy, in the absence of criminal charges, judicially authorized warrants to seize bank accounts involved in structuring can only be obtained if the prosecutor first develops probable cause of additional federal criminal activity and that determination is approved by a supervisor. Otherwise, a prosecutor may ask a judge to issue a seizure warrant only if either the U.S. Attorney or the Chief of the Criminal Division’s Asset Forfeiture and Money Laundering Section personally determines that seizure would serve a compelling law enforcement interest.
In addition, the new policy imposes important protections after a seizure has taken place. The policy requires a prosecutor to promptly direct a seizing agency to return funds if the prosecutor determines that there is insufficient admissible evidence to prevail in a criminal or civil trial. The policy also imposes a 150-day deadline to file a criminal indictment or civil complaint against the seized funds, or otherwise directs a return of the full amount of the seized funds. Finally, the policy requires a formal, written settlement agreement vetted by a federal prosecutor for settlements of structuring offenses.
This new policy is the most recent result of the department’s ongoing review of the Asset Forfeiture Program to ensure that asset forfeiture – a critical law enforcement tool – can continue to be used to appropriately take the profits out of crime and return assets to victims, all while safeguarding civil liberties.
The policy was developed by the Asset Forfeiture and Money Laundering Section of the Criminal Division and the Attorney General’s Advisory Committee of U.S. Attorneys. The policy applies to all Department of Justice attorneys.
MANUFACTURER FACES $294,000 IN OSHA VIOLATIONS FOR FAILING TO TRAIN WORKERS IN SAFETY PROCEDURES
FROM: U.S. JUSTICE DEPARTMENT
Edsal Manufacturing repeatedly allows safety hazards, faces more than $294K in fines
Citations for staffing company for failing to train temporary workers in safety procedures
CHICAGO — Left unguarded, dangerous machines with moving parts cause hundreds of thousands of workers to suffer finger, hand or foot amputations and other serious injuries each year in the United States. Despite these dangers, one Chicago-based manufacturer has repeatedly ignored the risks and has been found in violation of safety and health standards four times in the last five years.
Edsal Manufacturing Co. was inspected again in September 2014 by U.S. Department of Labor Occupational Safety and Health Administration investigators and cited for five repeated and 16 serious safety and health violations, including electrical hazards and failing to train workers in forklift operations and machine hazards. Edsal faces proposed penalties of $294,300 and has been placed in OSHA's Severe Violator Enforcement Program.
"When a machine lacks safety features, one slip and a worker can lose a hand," said Kathy Webb, area director of OSHA's Calumet City office. "With stakes this high, Edsal Manufacturing must ensure the safety and health of its 1,200 employees. This company has shown, time and time again, it does not take worker safety seriously. That attitude needs to change."
Responding to a complaint, agency investigators saw workers endangered by machine hazards. While operating mechanical power presses, workers were exposed to unguarded foot pedals, point of operation and chains and sprockets. The inspection resulted in five repeated violations. Edsal Manufacturing was cited for similar violations at this same facility in 2010 and 2012. The company also failed to store pallets of paint properly; provide training to workers on hazardous chemicals in the workplace; maintain fire extinguishers; inspect cranes periodically for safety issues; and provide welding screens and eye protection. Electrical safety hazards and lack of training were also noted. A total of 16 serious safety and health violations were issued.
OSHA has also cited KG Payroll & Staffing Services Corp., which provides temporary labor to the plant, for failing to train workers on personnel protective equipment needed for the job and the potential hazards of chemicals used in the facility. The company has a contract with Edsal Manufacturing to provide training for any temporary workers it assigns to the plant. The Berwyn company was issued two serious safety violations with proposed penalties of $11,000.
An OSHA violation is serious if death or serious physical harm could result from a hazard an employer knew or should have known exists.
OSHA issues repeated violations if an employer was previously cited for the same or a similar violation of any standard, regulation, rule or order at any other facility in federal enforcement states within the last five years.
SEC ACCUSES EXECUTIVE WITH USING FALSE ACCOUNTING ENTRIES TO INFLATE QUARTERLY REVENUES
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
04/01/2015 02:45 PM EDT
The Securities and Exchange Commission today charged the owner and chief executive of a North Carolina business with defrauding a publicly-traded telecommunications company and its shareholders during and after its acquisition of his business.
The executive, Timothy Scronce, agreed to settle the charges against him without admitting or denying the SEC’s findings. Scronce consented to the SEC’s order requiring him to return his allegedly ill-gotten gains with interest, pay a civil penalty, and be barred for 10 years from serving as a public company officer or director.
Bloomingdale, Ill.-based PCTEL Inc. acquired assets of TelWorx Communications LLC and three related telecommunications companies owned or controlled by Scronce for cash and a stock-based earn-out. According to the SEC’s order, Scronce used false accounting entries to inflate TelWorx’s quarterly revenues and earnings in the months leading up to the purchase to inflate the price PCTEL paid for the companies. Scronce indirectly defrauded PCTEL’s shareholders because TelWorx’s false financial statements were incorporated into an SEC filing made by PCTEL. After the asset purchase was completed, while employed by PCTEL, Scronce continued to conceal his fraudulent activities. He falsified PCTEL’s books and records and circumvented the company’s internal controls by recording bogus transactions
In separate settled administrative proceedings instituted today, the SEC charged two former TelWorx employees who worked with Scronce at PCTEL after the asset purchase: senior vice president Marc Mize and controller Michael Hedrick. The SEC’s orders find that Mize played a role in recording the bogus transactions after the asset purchase and that Hedrick participated in the fraud and recorded bogus transactions. Mize and Hedrick settled the SEC’s charges without admitting or denying the SEC’s findings. Mize agreed to pay a $25,000 penalty and Hedrick agreed to disgorge $25,000 plus prejudgment interest. Hedrick entered into a cooperation agreement with the SEC.
“Scronce used accounting gimmicks to make TelWorx appear more valuable to PCTEL than it actually was,” said Robert Burson, Associate Regional Director of the SEC’s Chicago office. “Scronce compounded his deception by recording fake transactions even after the acquisition was complete.”
The SEC’s order instituting a settled administrative proceeding against Scronce finds that he violated the anti-fraud, books and records, and internal controls provisions of the Securities Exchange Act of 1934. The SEC’s order also finds that he caused PCTEL’s violations of the books and records and reporting provisions of the Exchange Act.
The SEC’s order against Hedrick finds that he caused Scronce’s violations of the anti-fraud provisions of the Exchange Act and violated the books and records and internal controls provisions. The order also finds that Hedrick caused PCTEL’s violations of the books and records and reporting provisions.
The SEC’s order against Mize finds that he violated the books and records and internal controls provisions and caused PCTEL’s violations of the books and records provisions of the Exchange Act.
The SEC’s investigation, which is ongoing, has been conducted by Jen Peltz, Nicholas Eichenseer, Luz Aguilar and Robert M. Moye and supervised by Paul Montoya of the Chicago Regional Office.
04/01/2015 02:45 PM EDT
The Securities and Exchange Commission today charged the owner and chief executive of a North Carolina business with defrauding a publicly-traded telecommunications company and its shareholders during and after its acquisition of his business.
The executive, Timothy Scronce, agreed to settle the charges against him without admitting or denying the SEC’s findings. Scronce consented to the SEC’s order requiring him to return his allegedly ill-gotten gains with interest, pay a civil penalty, and be barred for 10 years from serving as a public company officer or director.
Bloomingdale, Ill.-based PCTEL Inc. acquired assets of TelWorx Communications LLC and three related telecommunications companies owned or controlled by Scronce for cash and a stock-based earn-out. According to the SEC’s order, Scronce used false accounting entries to inflate TelWorx’s quarterly revenues and earnings in the months leading up to the purchase to inflate the price PCTEL paid for the companies. Scronce indirectly defrauded PCTEL’s shareholders because TelWorx’s false financial statements were incorporated into an SEC filing made by PCTEL. After the asset purchase was completed, while employed by PCTEL, Scronce continued to conceal his fraudulent activities. He falsified PCTEL’s books and records and circumvented the company’s internal controls by recording bogus transactions
In separate settled administrative proceedings instituted today, the SEC charged two former TelWorx employees who worked with Scronce at PCTEL after the asset purchase: senior vice president Marc Mize and controller Michael Hedrick. The SEC’s orders find that Mize played a role in recording the bogus transactions after the asset purchase and that Hedrick participated in the fraud and recorded bogus transactions. Mize and Hedrick settled the SEC’s charges without admitting or denying the SEC’s findings. Mize agreed to pay a $25,000 penalty and Hedrick agreed to disgorge $25,000 plus prejudgment interest. Hedrick entered into a cooperation agreement with the SEC.
“Scronce used accounting gimmicks to make TelWorx appear more valuable to PCTEL than it actually was,” said Robert Burson, Associate Regional Director of the SEC’s Chicago office. “Scronce compounded his deception by recording fake transactions even after the acquisition was complete.”
The SEC’s order instituting a settled administrative proceeding against Scronce finds that he violated the anti-fraud, books and records, and internal controls provisions of the Securities Exchange Act of 1934. The SEC’s order also finds that he caused PCTEL’s violations of the books and records and reporting provisions of the Exchange Act.
The SEC’s order against Hedrick finds that he caused Scronce’s violations of the anti-fraud provisions of the Exchange Act and violated the books and records and internal controls provisions. The order also finds that Hedrick caused PCTEL’s violations of the books and records and reporting provisions.
The SEC’s order against Mize finds that he violated the books and records and internal controls provisions and caused PCTEL’s violations of the books and records provisions of the Exchange Act.
The SEC’s investigation, which is ongoing, has been conducted by Jen Peltz, Nicholas Eichenseer, Luz Aguilar and Robert M. Moye and supervised by Paul Montoya of the Chicago Regional Office.
Thursday, April 2, 2015
READOUT: PRESIDENT OBAMA'S CALL WITH KING SALMAN BIN ABDULAZIZ AL-SAUD REGARDING FRAMEWORK OF NUCLEAR DEAL WITH IRAN
FROM: THE WHITE HOUSE
April 02, 2015
Readout of the President’s Call With King Salman bin Abdulaziz al-Saud of Saudi Arabia
The President called King Salman bin Abdulaziz al-Saud of Saudi Arabia today to discuss the political framework reached between the P5+1, the EU, and Iran on a Joint Comprehensive Plan of Action regarding Iran’s nuclear program. The President reiterated that the months ahead will be used to finalize the technical details for a lasting, comprehensive solution that effectively cuts off all of Iran’s pathways to a bomb and verifiably ensures the peaceful nature of Iran’s nuclear program. He emphasized that the nuclear understanding between the P5+1 and Iran will not in any way lessen U.S. concern about Iran’s destabilizing activities in the region. The leaders agreed to increase consultations and remain vigilant in countering this threat. As part of this effort, the President invited the King and Gulf Cooperation Council leaders to Camp David this spring to continue consultations. The President and King Salman reaffirmed the enduring friendship between the United States and the Kingdom of Saudi Arabia.
April 02, 2015
Readout of the President’s Call With King Salman bin Abdulaziz al-Saud of Saudi Arabia
The President called King Salman bin Abdulaziz al-Saud of Saudi Arabia today to discuss the political framework reached between the P5+1, the EU, and Iran on a Joint Comprehensive Plan of Action regarding Iran’s nuclear program. The President reiterated that the months ahead will be used to finalize the technical details for a lasting, comprehensive solution that effectively cuts off all of Iran’s pathways to a bomb and verifiably ensures the peaceful nature of Iran’s nuclear program. He emphasized that the nuclear understanding between the P5+1 and Iran will not in any way lessen U.S. concern about Iran’s destabilizing activities in the region. The leaders agreed to increase consultations and remain vigilant in countering this threat. As part of this effort, the President invited the King and Gulf Cooperation Council leaders to Camp David this spring to continue consultations. The President and King Salman reaffirmed the enduring friendship between the United States and the Kingdom of Saudi Arabia.
READOUT: PRESIDENT OBAMA'S CALL WITH ISRAEL'S PRIME MINISTER NETANYAHU REGARDING FRAMEWORK OF DEAL WITH IRAN
FROM: THE WHITE HOUSE
April 02, 2015
Readout of the President’s Call with Prime Minister Benjamin Netanyahu of Israel
President Obama called Prime Minister Netanyahu today from Air Force One to discuss the political framework reached between the P5+1, the EU, and Iran on a Joint Comprehensive Plan of Action regarding Iran’s nuclear program. The President emphasized that, while nothing is agreed until everything is, the framework represents significant progress towards a lasting, comprehensive solution that cuts off all of Iran’s pathways to a bomb and verifiably ensures the peaceful nature of Iran’s nuclear program going forward. He underscored that progress on the nuclear issue in no way diminishes our concerns with respect to Iran’s sponsorship of terrorism and threats towards Israel and emphasized that the United States remains steadfast in our commitment to the security of Israel. The President told the Prime Minister that he has directed his national security team to increase consultations with the new Israeli government about how we can further strengthen our long-term security cooperation with Israel and remain vigilant in countering Iran’s threats.
April 02, 2015
Readout of the President’s Call with Prime Minister Benjamin Netanyahu of Israel
President Obama called Prime Minister Netanyahu today from Air Force One to discuss the political framework reached between the P5+1, the EU, and Iran on a Joint Comprehensive Plan of Action regarding Iran’s nuclear program. The President emphasized that, while nothing is agreed until everything is, the framework represents significant progress towards a lasting, comprehensive solution that cuts off all of Iran’s pathways to a bomb and verifiably ensures the peaceful nature of Iran’s nuclear program going forward. He underscored that progress on the nuclear issue in no way diminishes our concerns with respect to Iran’s sponsorship of terrorism and threats towards Israel and emphasized that the United States remains steadfast in our commitment to the security of Israel. The President told the Prime Minister that he has directed his national security team to increase consultations with the new Israeli government about how we can further strengthen our long-term security cooperation with Israel and remain vigilant in countering Iran’s threats.
SECRETARY KERRY'S PRESS AVAILABILITY IN LAUSANNE, SWITZERLAND
FROM: U.S. STATE DEPARTMENT
04/02/2015 06:41 PM EDT
Press Availability in Lausanne, Switzerland
Press Availability
John Kerry
Secretary of State
Ecole Polytechnique Federale de Lausanne
Lausanne, Switzerland
April 2, 2015
SECRETARY KERRY: Well, good evening and – excuse me – thank you all very, very much for your patience. And I want to start by expressing an enormous thank you, merci, danke, to the people and the Government of Switzerland for their incredible generosity. The way in which they have welcomed us and the amount of effort is really extraordinary, and we’re very, very grateful to them. And throughout this entire process, certainly over the past week, the people of Switzerland have gone above and beyond in order to facilitate these negotiations, and I don’t think anybody could imagine a much more peaceful setting in order to pursue a peaceful path forward. (In French.)
I also want to thank the very many other nations that have provided a home for these negotiations over the past couple of years – people forget that, it’s been going on that long – and that includes Austria, which was incredibly generous in hosting our delegation in Vienna for a long period of time; Oman, which has not only hosted a number of important meetings, but also played a critical role in getting these talks off the ground in the first place; and then, of course, we say thank you to Turkey, Russia, Kazakhstan, Iraq, and my home country, the United States.
I particularly want to thank President Obama. He has been courageous and determined in his pursuit of a diplomatic path. And from the day that he took office, President Obama has been crystal-clear that a nuclear-armed Iran would pose a threat to our security and the security of our allies in the region, including Israel. He has been just as clear that the best and most effective way to prevent that threat is through diplomacy.
The journey towards a diplomatic solution began years ago. And I can tell you that I’ve personally been involved for about four years, beginning from the time that I was serving in the United States Senate. Others have been on this journey, and some of the others in our team, for even longer than that.
But as Foreign Minister Zarif and High Representative Mogherini announced moments ago, today we have reached a critical milestone in that quest. We, our P5+1, EU partners, and Iran have arrived at a consensus on the key parameters of an arrangement that, once implemented, will give the international community confidence that Iran’s nuclear program is and will remain exclusively peaceful. And over the coming weeks, with all of the conditions of the 2013 Joint Plan of Action still in effect from this moment forward, our experts will continue to work hard to build on the parameters that we have arrived at today and finalize a comprehensive deal by the end of June.
Now we have said from the beginning – I think you’ve heard me say it again and again – that we will not accept just any deal, that we will only accept a good deal. And today, I can tell you that the political understanding with details that we have reached is a solid foundation for the good deal that we are seeking. It is the foundation for a deal that will see Iran reduce its stockpile of enriched uranium by 98 percent for 15 years. It is a deal in which Iran will cut its installed centrifuges by more than two-thirds for 10 years. It is a deal that will increase Iran’s breakout time, which was confirmed publicly today to be two to three months, and that is the time that it would take Iran to speed up its enrichment in order to produce enough fissile material for one potential nuclear weapon. And that will be expanded now, under this deal, to one year from those two to three months. That is obviously as much as six times what it is today, and what it has been for the past three years.
I’d like also to make one more point very, very clear because it has been misinterpreted and misstated, misrepresented for much of this discussion: There will be no sunset to the deal that we are working to finalize – no sunset, none. The parameters of this agreement will be implemented in phases. Some provisions will be in place for 10 years; others will be in place for 15 years; others still will be in place for 25 years. But certain provisions, including many transparency measures, will be in place indefinitely into the future. They will never expire. And the bottom line is that, under this arrangement, the international community will have confidence that Iran’s nuclear program is exclusively peaceful, providing, of course, that the provisions are adhered to. And if they aren’t, we have provisions that empower us to deal with that.
Ultimately, the parameters that we have agreed to will do exactly what we set out to do – make certain that all pathways to make enough fissile material for one nuclear weapon have been cut off, including the uranium pathway at Natanz and Fordow, and the plutonium pathway at Arak, and, of course, the covert pathway.
Now we, our partners, and Iran have agreed that the only uranium-enrichment facility Iran will operate moving forward will be the facility at Natanz. And even that one will undergo dramatic changes. The vast majority of the centrifuges and their infrastructure will be removed. And for at least the next 15 years, the stockpile will remain at 300 kilograms. And any uranium that is enriched at Natanz will be capped at 3.67 percent, which is a typical level of enrichment for civilian nuclear power, but doesn’t even begin to approach the enrichment level necessary for a weapon.
We have agreed that the facility at Fordow will halt all uranium enrichment, period – all uranium enrichment, and in fact, there will not even be any fissile material present at the site and no enrichment R&D. Instead, the facility will be converted into a nuclear physics and technology center.
We have also agreed that Iran will redesign and rebuild its heavy-water reactor at Arak so that it will no longer produce any weapons-grade plutonium. And the United States will be able to sign off, certify, the reactor’s final design, redesign. And through international cooperation, it will be transformed into a reactor supporting only peaceful nuclear research and nuclear medicine. And the calandria, as you heard earlier, will be taken out and destroyed.
We have agreed that Iran will ship all of its spent fuel from the Arak reactor out of the country for the reactor’s lifetime. And Iran has agreed to refrain from building any additional heavy-water reactors for the next 15 years at least – “at least” means still open for beyond that period in the course of the next three months.
And we have agreed that Iran will face regular and comprehensive inspections, which is the best possible way to detect any attempt to covertly produce a weapon. Not only will inspectors have regular access to all of Iran’s declared facilities indefinitely, but they will also be able to monitor the facilities that produce the centrifuges themselves and the uranium that supports the nuclear program. And they will be able to do that for at least 20 years.
This critical step will help to guard against diversion of those materials to any clandestine location or plant. In addition, Iran has agreed to allow IAEA to investigate any suspicious site or any allegations of covert nuclear activities anywhere.
So these are just a few of the key – and I mean a few – of the key measures that will make up an extraordinarily comprehensive monitoring and transparency regime when and if it is finally signed and completed over the course of the next months. Now we have been very clear, both publicly and privately, a final agreement will not rely on promises. It will rely on proof.
It is important to note that Iran, to date, has honored all of the commitments that it made under the Joint Plan of Action that we agreed to in 2013. And I ask you to think about that against the backdrop of those who predicted that it would fail and not get the job done.
And in return for Iran’s future cooperation, we and our international partners will provide relief in phases from the sanctions that have impacted Iran’s economy. And if we find at any point that Iran is not complying with this agreement, the sanctions can snap back into place. So together these parameters outline a reasonable standard that Iran can readily meet, and it is the standard that Iran has now agreed to meet.
Throughout history, diplomacy has been necessary to prevent wars and to define international boundaries, to design institutions, and to develop global norms. Simply demanding that Iran capitulate makes a nice soundbite, but it’s not a policy. It is not a realistic plan. So the true measure of this understanding is not whether it meets all the desires of one side at the expense of the other. The test is whether or not it will leave the world safer or more secure than it would be without this agreement. And there can be no question that the comprehensive plan that we are moving toward will more than pass that test.
This isn’t just my assessment. It isn’t just the assessment of the United States delegation and our experts. It is the assessment of every one of our P5+1 partners who stood up here a little while ago in front of the flags of their nations. It is the assessment of our negotiating partners – Germany, the UK, China, France, and Russia – and all of our experts who have analyzed every aspect of this issue also join in that assessment.
From the beginning, we have negotiated as a team, and we are all agreed that this is the best outcome achievable. No viable alternatives – not one – would be nearly as effective at preventing Iran from obtaining a nuclear weapon than – over a period of time than the parameters, providing they get completed and are signed.
Our political understanding arrived at today opens the door for a long-term resolution to the international community’s concerns about Iran’s nuclear program. Now, we have no illusions about the fact that we still have a ways to travel before we’ll arrive at the destination that we seek. We still have many technical details to work out on both sides and still some other issues that we acknowledge still have to be resolved; for example, the duration of the UN arms and ballistic missile restrictions on Iran and the precise timing of and mechanism for the conversion of the Arak reactor and Fordow site. And of course, once we’re able to finalize a comprehensive deal, the process of implementation then remains in front of us as well. But that’s a good challenge to have, frankly.
Throughout this negotiation, we have made a diligent effort to consult with our allies, our partners, including Israel and the Gulf states, and we have vigorously reaffirmed our enduring commitment to their security. No one should mistake that. And we will continue to stand by that commitment in the years and days ahead.
Obviously, we remain deeply concerned about Iran’s destabilizing actions in the region, and we remain fully committed to addressing the full slate of issues that we currently have with Iran. But it is because we are so concerned about those issues and about the region’s security. Precisely because of that concern that we believe this deal is critical. The status quo with respect to Iran’s nuclear program is unacceptable.
And certainly, we will continue to consult closely in the days ahead with the United States Congress. They and we understand that an Iran that had a nuclear weapon in the context of today’s troubles would be even more problematic. I spent almost 30 years in the United States Senate, and I had the privilege and the responsibility of chairing the Foreign Relations Committee when we put tough sanctions in place when this regime was put in place. And that is the regime that indeed has brought this negotiation about.
We are deeply grateful for Congress’s support of the diplomatic path to date, and we appreciate their patience. There were those agitating to take action earlier. Responsible voices held off and they helped us to get to this moment, and we appreciate that. We sincerely hope that members will continue to give us the time and the space that we need to fully explain the political agreement that we have reached and to work out the remaining details of a final deal.
Before I take a few questions, I just want to take a moment to thank some very important people. The team that has been assembled throughout this process is really made up of an extraordinary group of public servants, and believe me, they have served their country and the world well in these days. I want to thank my Cabinet colleague, Secretary of Energy Ernie Moniz, who was indispensable in his knowledge and his technical expertise to be able to sit down and work through some very complex issues. His background as a nuclear scientist and his expertise was essential in helping us to arrive at this moment. I also particularly want to thank my colleague at the State Department, the Under Secretary of State Wendy Sherman. She has been absolutely superb, indefatigable, organized, strong, clear, visionary, and we are grateful.
I also want to thank the remarkable team of experts who haven’t slept in days, who’ve kept working, who have chased down numbers on – instantaneous call at any hour, and that goes for the team back home in the United States in the laboratories, in the White House, in the State Department, all of whom have contributed to our ability to be able to know what we are doing and to be able to put this initial agreement together.
Now I want to thank the delegations also from the P5+1 countries. As I said earlier, this is a team effort, partnership, and each and every one of their political directors, each and every one of their experts, was essential to help chase down details, help us create a consensus, help us check our own figures and our own thoughts about this effort. And I particularly thank Foreign Minister Laurent Fabius of France, Foreign Secretary Hammond from the United Kingdom, Foreign Minister Lavrov from Russia, Foreign Minister Steinmeier from Germany, and Foreign Minister Wang Yi from China. Every one of them showed an extraordinary commitment to this effort, and they have all contributed to this outcome. And it has been a real partnership, with every country weighing in, every country concerned, every country making suggestions. And I believe that their presence here tonight, their affirmation of this opportunity to try to finalize a deal over the next three months, is a critical component of credibility that should be given to this effort.
I also want to thank the EU for its facilitation of these talks. That begins with Dame Cathy Ashton, who spent many, many hours over several years helping to guide these talks. She worked all the way through last December, and her efforts were essential in getting the formal negotiations structured. Her successor, Federica Mogherini, has seized the baton and done an excellent job of filling right in and helping to move the process forward, and we thank both of them. And Federica’s deputy has just been superb. Helga Schmid, who has been the critical link between the EU and the entire P5+1 – we are very, very grateful for her stamina and her creativity and commitment.
Finally, I want to acknowledge the hard work of the Iranian delegation led by Foreign Minister Zarif and Dr. Salehi. From the beginning, they have approached these talks with great professionalism and with seriousness of purpose. They’ve been difficult – at times extremely intense; at times emotional; always challenging. Not all of our meetings were easy. In fact, many were quite difficult because the passions are there for everybody. But we have shown, I think, diligence and respect on all sides and always kept the objective, which is a peaceful resolution of this issue, in mind.
I emphasize: We still have a lot of work to do. We have agreed on the most challenging and overarching issues, but now there are a number of technical decisions that need to be made, and there are still policy decisions that have to be made. But we have the outline; we have the basic framing, if you will – the construction. And as we continue on, the United States and our P5+1 partners will exhibit the same vigilance, the same unity of purpose, the same comprehensive approach, and the same good faith among us that has brought us this far. So thank you, and I’d be happy to answer any questions.
HARF: Great, thank you. The first question is from Indira Lakshmanan of Bloomberg News. I think a mike should be coming to you.
QUESTION: Thanks, Marie. Is this on? Okay.
Secretary Kerry, can you tell us which gaps you were unable to reach understanding on, and are any elements not being made public? How long will it take Iran to comply so that sanctions can be eased, and could the deal fall through over the next three months? And lastly, will the three Americans being held in Iran be released as a goodwill measure if this deal is completed? Thank you.
SECRETARY KERRY: Well, yeah, of course. I mean, we have acknowledged there are some gaps. I just listed a few of them a moment ago for you. There are issues that we have to resolve. And I’m not going to go into all of them right now, but I think I listed several of them in my comments. We have to finish dealing with Fordow, in some respects, with respect to transition. That’s one of the things we’re going to be looking at and talking about. We have other considerations with respect to the sanctions themselves and the rate and timing and so forth. But I don’t think it serves any great purpose to go through all that now. In the days ahead, there will be plenty of time to focus on that with Congress and others, and we look forward to those consultations.
It’s really a matter of anywhere from probably six months to a year or so that it will take to begin to comply with all of the nuclear steps that need to be taken in order to then begin into the phasing. Those steps have to happen first. And in the meantime, the interim agreement – the JPOA, as it’s called, Joint Plan of Action – will continue to be implemented in full. And so we believe there is a full continuity in the oversight and accountability that is necessary to proceed forward.
And finally, with respect to our citizens, we, of course, have had a number of conversations; and no meeting, no date when we come together, has been without conversation about our American citizens. I’m not going to go into any details, except to say to you that that conversation is continuing. We have a very specific process in place to try to deal with it. And we call on Iran again today, now, in light of this, to release these Americans and let them get home with their families. And we’re working on that and we will continue to be very focused on it.
HARF: The next question is from Amir Paivar of BBC Persia.
QUESTION: Thank you very much, Secretary Kerry, for the opportunity. As the business correspondent for my channel, the single one question every Iranian, from ordinary Iranians to those in boardrooms of Iranian companies, have been asking me is if on July 1st we have a joint comprehensive plan of action how fast, in what sequence, and in what format will economic sanctions, more specifically banking sanctions, which have been hurting many Iranians inside and outside the country, will be removed? I do understand you said that it will depend on compliance from Iran, but if you could just give us a bit more precise idea.
And also if I can, second question is – you have been – Foreign Secretary Zarif seems to have the world record of having face time with you thanks to these negotiations. Would you say these negotiations will help in future to improve ties between Iran and United States?
SECRETARY KERRY: Well, on the latter question, all I can do is hope, like I think most citizens would hope. I would assume, from what we pick up through the diaspora and otherwise with respect to Iran, there are many, many Iranians who hope that they can join the world. But I’m not going to speculate on that. I have no idea. It would depend entirely on the resolution of a lot of things as we go forward.
The one thing we do know is that if we can eliminate this question of the nuclear issue, it begins to at some point, conceivably, provide an opportunity for change. I’m not going to predict anything. But I do know that stopping having a nuclear weapon makes the world safer, and that is what President Obama and all of us have been focused on.
With respect to the negotiations, I think – what was the first part of your question? It was about --
QUESTION: It’s about sanctions.
SECRETARY KERRY: Oh, the sanctions, yes. On the sanctions, as I said, they were phased. There are a set of requirements, for instance, the dismantlement of some of the centrifuges and the dismantlement of the infrastructure that is associated with those centrifuges. Iran has a responsibility to get the breakout time to the one year. And they can do it as fast as they want, and I assume will try to do it very rapidly. But we think that just the amount of work and the things they have to do will be somewhere in the vicinity of four (inaudible) months to a year, somewhere in there. I can’t say for certain.
But when that is done and certified by the IAEA that they have lived up to that nuclear responsibility, and we make that judgment with them, at that point in time the – there would begin the phasing of the sanctions. And we have stated very clearly that that will begin with the suspension with respect to the economic and financial sanctions at that point in time.
So there will be – I mean, this is part of the nature of any negotiation. In exchange for the restraints and restrictions that Iran is putting in place here, we will, indeed, take the very tool that was calculated to bring people to negotiate, once it has succeeded in achieving the goal, we will begin to phase those out. And that timing on other parts of that obviously remains still to be negotiated. But on the finance and the banking component, the economic components, those the President has committed to move on when that first phase is complete, and we move on to the next phase of implementation.
HARF: The final question’s from Michael Gordon of The New York Times.
QUESTION: Mr. Kerry, Iranian TV also (inaudible).
HARF: No, let’s just do one at a time. Let’s do one at a time. Let’s go to Michael Gordon of The New York Times. Thank you.
QUESTION: Sir, you just said they’re not merely technical issues that remain to be threshed out, but still some policy decisions that need to be made. What are the most important policy issues that need to be confronted before there can be an agreement at the end of June? And also, nothing here has been said on how Iran’s large stock of uranium is to be disposed of, either by shipping it out of the country or dealing with it inside the country. How will that be done?
And lastly, on sanctions, Minister Zarif said the Security Council resolutions will be suspended or eliminated, but can you tell us some more how that will work, especially since they could take years for Iran to address the IAEA’s concerns over PMD? And have you assured the Iranians that the White House will be able to persuade the Congress to revoke the sanctions it has imposed if Iran keeps its commitments?
SECRETARY KERRY: The question of the sanctions, Michael, remains one of the issues of the timing – the exact timing and the exact process associated with it remains one of those issues that is going to be negotiated over the course of the next three months. The commitment is to lift the economic and financial sanctions on the occasion of what I mentioned earlier on the nuclear side. Beyond that, UN sanctions, others with respect to ballistic missile embargo, et cetera, those remain for negotiation.
With respect to the question of the IAEA process, et cetera, and what happens with respect to the stockpile, it has to either be diluted or sold on the international market, one of the two. So whatever excess there is with respect to that will actually be returned right into uranium and not serve any fundamental purpose. But the stockpile is going to have to be diluted or sold in the international marketplace, and that is agreed upon at this point in time.
So thank you all very, very much.
04/02/2015 06:41 PM EDT
Press Availability in Lausanne, Switzerland
Press Availability
John Kerry
Secretary of State
Ecole Polytechnique Federale de Lausanne
Lausanne, Switzerland
April 2, 2015
SECRETARY KERRY: Well, good evening and – excuse me – thank you all very, very much for your patience. And I want to start by expressing an enormous thank you, merci, danke, to the people and the Government of Switzerland for their incredible generosity. The way in which they have welcomed us and the amount of effort is really extraordinary, and we’re very, very grateful to them. And throughout this entire process, certainly over the past week, the people of Switzerland have gone above and beyond in order to facilitate these negotiations, and I don’t think anybody could imagine a much more peaceful setting in order to pursue a peaceful path forward. (In French.)
I also want to thank the very many other nations that have provided a home for these negotiations over the past couple of years – people forget that, it’s been going on that long – and that includes Austria, which was incredibly generous in hosting our delegation in Vienna for a long period of time; Oman, which has not only hosted a number of important meetings, but also played a critical role in getting these talks off the ground in the first place; and then, of course, we say thank you to Turkey, Russia, Kazakhstan, Iraq, and my home country, the United States.
I particularly want to thank President Obama. He has been courageous and determined in his pursuit of a diplomatic path. And from the day that he took office, President Obama has been crystal-clear that a nuclear-armed Iran would pose a threat to our security and the security of our allies in the region, including Israel. He has been just as clear that the best and most effective way to prevent that threat is through diplomacy.
The journey towards a diplomatic solution began years ago. And I can tell you that I’ve personally been involved for about four years, beginning from the time that I was serving in the United States Senate. Others have been on this journey, and some of the others in our team, for even longer than that.
But as Foreign Minister Zarif and High Representative Mogherini announced moments ago, today we have reached a critical milestone in that quest. We, our P5+1, EU partners, and Iran have arrived at a consensus on the key parameters of an arrangement that, once implemented, will give the international community confidence that Iran’s nuclear program is and will remain exclusively peaceful. And over the coming weeks, with all of the conditions of the 2013 Joint Plan of Action still in effect from this moment forward, our experts will continue to work hard to build on the parameters that we have arrived at today and finalize a comprehensive deal by the end of June.
Now we have said from the beginning – I think you’ve heard me say it again and again – that we will not accept just any deal, that we will only accept a good deal. And today, I can tell you that the political understanding with details that we have reached is a solid foundation for the good deal that we are seeking. It is the foundation for a deal that will see Iran reduce its stockpile of enriched uranium by 98 percent for 15 years. It is a deal in which Iran will cut its installed centrifuges by more than two-thirds for 10 years. It is a deal that will increase Iran’s breakout time, which was confirmed publicly today to be two to three months, and that is the time that it would take Iran to speed up its enrichment in order to produce enough fissile material for one potential nuclear weapon. And that will be expanded now, under this deal, to one year from those two to three months. That is obviously as much as six times what it is today, and what it has been for the past three years.
I’d like also to make one more point very, very clear because it has been misinterpreted and misstated, misrepresented for much of this discussion: There will be no sunset to the deal that we are working to finalize – no sunset, none. The parameters of this agreement will be implemented in phases. Some provisions will be in place for 10 years; others will be in place for 15 years; others still will be in place for 25 years. But certain provisions, including many transparency measures, will be in place indefinitely into the future. They will never expire. And the bottom line is that, under this arrangement, the international community will have confidence that Iran’s nuclear program is exclusively peaceful, providing, of course, that the provisions are adhered to. And if they aren’t, we have provisions that empower us to deal with that.
Ultimately, the parameters that we have agreed to will do exactly what we set out to do – make certain that all pathways to make enough fissile material for one nuclear weapon have been cut off, including the uranium pathway at Natanz and Fordow, and the plutonium pathway at Arak, and, of course, the covert pathway.
Now we, our partners, and Iran have agreed that the only uranium-enrichment facility Iran will operate moving forward will be the facility at Natanz. And even that one will undergo dramatic changes. The vast majority of the centrifuges and their infrastructure will be removed. And for at least the next 15 years, the stockpile will remain at 300 kilograms. And any uranium that is enriched at Natanz will be capped at 3.67 percent, which is a typical level of enrichment for civilian nuclear power, but doesn’t even begin to approach the enrichment level necessary for a weapon.
We have agreed that the facility at Fordow will halt all uranium enrichment, period – all uranium enrichment, and in fact, there will not even be any fissile material present at the site and no enrichment R&D. Instead, the facility will be converted into a nuclear physics and technology center.
We have also agreed that Iran will redesign and rebuild its heavy-water reactor at Arak so that it will no longer produce any weapons-grade plutonium. And the United States will be able to sign off, certify, the reactor’s final design, redesign. And through international cooperation, it will be transformed into a reactor supporting only peaceful nuclear research and nuclear medicine. And the calandria, as you heard earlier, will be taken out and destroyed.
We have agreed that Iran will ship all of its spent fuel from the Arak reactor out of the country for the reactor’s lifetime. And Iran has agreed to refrain from building any additional heavy-water reactors for the next 15 years at least – “at least” means still open for beyond that period in the course of the next three months.
And we have agreed that Iran will face regular and comprehensive inspections, which is the best possible way to detect any attempt to covertly produce a weapon. Not only will inspectors have regular access to all of Iran’s declared facilities indefinitely, but they will also be able to monitor the facilities that produce the centrifuges themselves and the uranium that supports the nuclear program. And they will be able to do that for at least 20 years.
This critical step will help to guard against diversion of those materials to any clandestine location or plant. In addition, Iran has agreed to allow IAEA to investigate any suspicious site or any allegations of covert nuclear activities anywhere.
So these are just a few of the key – and I mean a few – of the key measures that will make up an extraordinarily comprehensive monitoring and transparency regime when and if it is finally signed and completed over the course of the next months. Now we have been very clear, both publicly and privately, a final agreement will not rely on promises. It will rely on proof.
It is important to note that Iran, to date, has honored all of the commitments that it made under the Joint Plan of Action that we agreed to in 2013. And I ask you to think about that against the backdrop of those who predicted that it would fail and not get the job done.
And in return for Iran’s future cooperation, we and our international partners will provide relief in phases from the sanctions that have impacted Iran’s economy. And if we find at any point that Iran is not complying with this agreement, the sanctions can snap back into place. So together these parameters outline a reasonable standard that Iran can readily meet, and it is the standard that Iran has now agreed to meet.
Throughout history, diplomacy has been necessary to prevent wars and to define international boundaries, to design institutions, and to develop global norms. Simply demanding that Iran capitulate makes a nice soundbite, but it’s not a policy. It is not a realistic plan. So the true measure of this understanding is not whether it meets all the desires of one side at the expense of the other. The test is whether or not it will leave the world safer or more secure than it would be without this agreement. And there can be no question that the comprehensive plan that we are moving toward will more than pass that test.
This isn’t just my assessment. It isn’t just the assessment of the United States delegation and our experts. It is the assessment of every one of our P5+1 partners who stood up here a little while ago in front of the flags of their nations. It is the assessment of our negotiating partners – Germany, the UK, China, France, and Russia – and all of our experts who have analyzed every aspect of this issue also join in that assessment.
From the beginning, we have negotiated as a team, and we are all agreed that this is the best outcome achievable. No viable alternatives – not one – would be nearly as effective at preventing Iran from obtaining a nuclear weapon than – over a period of time than the parameters, providing they get completed and are signed.
Our political understanding arrived at today opens the door for a long-term resolution to the international community’s concerns about Iran’s nuclear program. Now, we have no illusions about the fact that we still have a ways to travel before we’ll arrive at the destination that we seek. We still have many technical details to work out on both sides and still some other issues that we acknowledge still have to be resolved; for example, the duration of the UN arms and ballistic missile restrictions on Iran and the precise timing of and mechanism for the conversion of the Arak reactor and Fordow site. And of course, once we’re able to finalize a comprehensive deal, the process of implementation then remains in front of us as well. But that’s a good challenge to have, frankly.
Throughout this negotiation, we have made a diligent effort to consult with our allies, our partners, including Israel and the Gulf states, and we have vigorously reaffirmed our enduring commitment to their security. No one should mistake that. And we will continue to stand by that commitment in the years and days ahead.
Obviously, we remain deeply concerned about Iran’s destabilizing actions in the region, and we remain fully committed to addressing the full slate of issues that we currently have with Iran. But it is because we are so concerned about those issues and about the region’s security. Precisely because of that concern that we believe this deal is critical. The status quo with respect to Iran’s nuclear program is unacceptable.
And certainly, we will continue to consult closely in the days ahead with the United States Congress. They and we understand that an Iran that had a nuclear weapon in the context of today’s troubles would be even more problematic. I spent almost 30 years in the United States Senate, and I had the privilege and the responsibility of chairing the Foreign Relations Committee when we put tough sanctions in place when this regime was put in place. And that is the regime that indeed has brought this negotiation about.
We are deeply grateful for Congress’s support of the diplomatic path to date, and we appreciate their patience. There were those agitating to take action earlier. Responsible voices held off and they helped us to get to this moment, and we appreciate that. We sincerely hope that members will continue to give us the time and the space that we need to fully explain the political agreement that we have reached and to work out the remaining details of a final deal.
Before I take a few questions, I just want to take a moment to thank some very important people. The team that has been assembled throughout this process is really made up of an extraordinary group of public servants, and believe me, they have served their country and the world well in these days. I want to thank my Cabinet colleague, Secretary of Energy Ernie Moniz, who was indispensable in his knowledge and his technical expertise to be able to sit down and work through some very complex issues. His background as a nuclear scientist and his expertise was essential in helping us to arrive at this moment. I also particularly want to thank my colleague at the State Department, the Under Secretary of State Wendy Sherman. She has been absolutely superb, indefatigable, organized, strong, clear, visionary, and we are grateful.
I also want to thank the remarkable team of experts who haven’t slept in days, who’ve kept working, who have chased down numbers on – instantaneous call at any hour, and that goes for the team back home in the United States in the laboratories, in the White House, in the State Department, all of whom have contributed to our ability to be able to know what we are doing and to be able to put this initial agreement together.
Now I want to thank the delegations also from the P5+1 countries. As I said earlier, this is a team effort, partnership, and each and every one of their political directors, each and every one of their experts, was essential to help chase down details, help us create a consensus, help us check our own figures and our own thoughts about this effort. And I particularly thank Foreign Minister Laurent Fabius of France, Foreign Secretary Hammond from the United Kingdom, Foreign Minister Lavrov from Russia, Foreign Minister Steinmeier from Germany, and Foreign Minister Wang Yi from China. Every one of them showed an extraordinary commitment to this effort, and they have all contributed to this outcome. And it has been a real partnership, with every country weighing in, every country concerned, every country making suggestions. And I believe that their presence here tonight, their affirmation of this opportunity to try to finalize a deal over the next three months, is a critical component of credibility that should be given to this effort.
I also want to thank the EU for its facilitation of these talks. That begins with Dame Cathy Ashton, who spent many, many hours over several years helping to guide these talks. She worked all the way through last December, and her efforts were essential in getting the formal negotiations structured. Her successor, Federica Mogherini, has seized the baton and done an excellent job of filling right in and helping to move the process forward, and we thank both of them. And Federica’s deputy has just been superb. Helga Schmid, who has been the critical link between the EU and the entire P5+1 – we are very, very grateful for her stamina and her creativity and commitment.
Finally, I want to acknowledge the hard work of the Iranian delegation led by Foreign Minister Zarif and Dr. Salehi. From the beginning, they have approached these talks with great professionalism and with seriousness of purpose. They’ve been difficult – at times extremely intense; at times emotional; always challenging. Not all of our meetings were easy. In fact, many were quite difficult because the passions are there for everybody. But we have shown, I think, diligence and respect on all sides and always kept the objective, which is a peaceful resolution of this issue, in mind.
I emphasize: We still have a lot of work to do. We have agreed on the most challenging and overarching issues, but now there are a number of technical decisions that need to be made, and there are still policy decisions that have to be made. But we have the outline; we have the basic framing, if you will – the construction. And as we continue on, the United States and our P5+1 partners will exhibit the same vigilance, the same unity of purpose, the same comprehensive approach, and the same good faith among us that has brought us this far. So thank you, and I’d be happy to answer any questions.
HARF: Great, thank you. The first question is from Indira Lakshmanan of Bloomberg News. I think a mike should be coming to you.
QUESTION: Thanks, Marie. Is this on? Okay.
Secretary Kerry, can you tell us which gaps you were unable to reach understanding on, and are any elements not being made public? How long will it take Iran to comply so that sanctions can be eased, and could the deal fall through over the next three months? And lastly, will the three Americans being held in Iran be released as a goodwill measure if this deal is completed? Thank you.
SECRETARY KERRY: Well, yeah, of course. I mean, we have acknowledged there are some gaps. I just listed a few of them a moment ago for you. There are issues that we have to resolve. And I’m not going to go into all of them right now, but I think I listed several of them in my comments. We have to finish dealing with Fordow, in some respects, with respect to transition. That’s one of the things we’re going to be looking at and talking about. We have other considerations with respect to the sanctions themselves and the rate and timing and so forth. But I don’t think it serves any great purpose to go through all that now. In the days ahead, there will be plenty of time to focus on that with Congress and others, and we look forward to those consultations.
It’s really a matter of anywhere from probably six months to a year or so that it will take to begin to comply with all of the nuclear steps that need to be taken in order to then begin into the phasing. Those steps have to happen first. And in the meantime, the interim agreement – the JPOA, as it’s called, Joint Plan of Action – will continue to be implemented in full. And so we believe there is a full continuity in the oversight and accountability that is necessary to proceed forward.
And finally, with respect to our citizens, we, of course, have had a number of conversations; and no meeting, no date when we come together, has been without conversation about our American citizens. I’m not going to go into any details, except to say to you that that conversation is continuing. We have a very specific process in place to try to deal with it. And we call on Iran again today, now, in light of this, to release these Americans and let them get home with their families. And we’re working on that and we will continue to be very focused on it.
HARF: The next question is from Amir Paivar of BBC Persia.
QUESTION: Thank you very much, Secretary Kerry, for the opportunity. As the business correspondent for my channel, the single one question every Iranian, from ordinary Iranians to those in boardrooms of Iranian companies, have been asking me is if on July 1st we have a joint comprehensive plan of action how fast, in what sequence, and in what format will economic sanctions, more specifically banking sanctions, which have been hurting many Iranians inside and outside the country, will be removed? I do understand you said that it will depend on compliance from Iran, but if you could just give us a bit more precise idea.
And also if I can, second question is – you have been – Foreign Secretary Zarif seems to have the world record of having face time with you thanks to these negotiations. Would you say these negotiations will help in future to improve ties between Iran and United States?
SECRETARY KERRY: Well, on the latter question, all I can do is hope, like I think most citizens would hope. I would assume, from what we pick up through the diaspora and otherwise with respect to Iran, there are many, many Iranians who hope that they can join the world. But I’m not going to speculate on that. I have no idea. It would depend entirely on the resolution of a lot of things as we go forward.
The one thing we do know is that if we can eliminate this question of the nuclear issue, it begins to at some point, conceivably, provide an opportunity for change. I’m not going to predict anything. But I do know that stopping having a nuclear weapon makes the world safer, and that is what President Obama and all of us have been focused on.
With respect to the negotiations, I think – what was the first part of your question? It was about --
QUESTION: It’s about sanctions.
SECRETARY KERRY: Oh, the sanctions, yes. On the sanctions, as I said, they were phased. There are a set of requirements, for instance, the dismantlement of some of the centrifuges and the dismantlement of the infrastructure that is associated with those centrifuges. Iran has a responsibility to get the breakout time to the one year. And they can do it as fast as they want, and I assume will try to do it very rapidly. But we think that just the amount of work and the things they have to do will be somewhere in the vicinity of four (inaudible) months to a year, somewhere in there. I can’t say for certain.
But when that is done and certified by the IAEA that they have lived up to that nuclear responsibility, and we make that judgment with them, at that point in time the – there would begin the phasing of the sanctions. And we have stated very clearly that that will begin with the suspension with respect to the economic and financial sanctions at that point in time.
So there will be – I mean, this is part of the nature of any negotiation. In exchange for the restraints and restrictions that Iran is putting in place here, we will, indeed, take the very tool that was calculated to bring people to negotiate, once it has succeeded in achieving the goal, we will begin to phase those out. And that timing on other parts of that obviously remains still to be negotiated. But on the finance and the banking component, the economic components, those the President has committed to move on when that first phase is complete, and we move on to the next phase of implementation.
HARF: The final question’s from Michael Gordon of The New York Times.
QUESTION: Mr. Kerry, Iranian TV also (inaudible).
HARF: No, let’s just do one at a time. Let’s do one at a time. Let’s go to Michael Gordon of The New York Times. Thank you.
QUESTION: Sir, you just said they’re not merely technical issues that remain to be threshed out, but still some policy decisions that need to be made. What are the most important policy issues that need to be confronted before there can be an agreement at the end of June? And also, nothing here has been said on how Iran’s large stock of uranium is to be disposed of, either by shipping it out of the country or dealing with it inside the country. How will that be done?
And lastly, on sanctions, Minister Zarif said the Security Council resolutions will be suspended or eliminated, but can you tell us some more how that will work, especially since they could take years for Iran to address the IAEA’s concerns over PMD? And have you assured the Iranians that the White House will be able to persuade the Congress to revoke the sanctions it has imposed if Iran keeps its commitments?
SECRETARY KERRY: The question of the sanctions, Michael, remains one of the issues of the timing – the exact timing and the exact process associated with it remains one of those issues that is going to be negotiated over the course of the next three months. The commitment is to lift the economic and financial sanctions on the occasion of what I mentioned earlier on the nuclear side. Beyond that, UN sanctions, others with respect to ballistic missile embargo, et cetera, those remain for negotiation.
With respect to the question of the IAEA process, et cetera, and what happens with respect to the stockpile, it has to either be diluted or sold on the international market, one of the two. So whatever excess there is with respect to that will actually be returned right into uranium and not serve any fundamental purpose. But the stockpile is going to have to be diluted or sold in the international marketplace, and that is agreed upon at this point in time.
So thank you all very, very much.
WHITE HOUSE PRESS SECRETARY MAKES STATEMENT ON GARISSA UNIVERSITY COLLEGE ATTACK
FROM: THE WHITE HOUSE
April 02, 2015
Statement by the Press Secretary on the Garissa University College Attack
The United States condemns in the strongest terms today’s terrorist attack against the innocent men and women of Garissa University College in eastern Kenya. We extend our deep condolences to the families and loved ones of all those killed in this heinous attack, which reportedly included the targeting of Christian students. Our thoughts and prayers also are with the many injured. The United States is providing assistance to the Kenyan Government, and we will continue to partner with them as well as with others in the region to take on the terrorist group al-Shabaab. The United States stands with the people of Kenya, who will not be intimidated by such cowardly attacks.
April 02, 2015
Statement by the Press Secretary on the Garissa University College Attack
The United States condemns in the strongest terms today’s terrorist attack against the innocent men and women of Garissa University College in eastern Kenya. We extend our deep condolences to the families and loved ones of all those killed in this heinous attack, which reportedly included the targeting of Christian students. Our thoughts and prayers also are with the many injured. The United States is providing assistance to the Kenyan Government, and we will continue to partner with them as well as with others in the region to take on the terrorist group al-Shabaab. The United States stands with the people of Kenya, who will not be intimidated by such cowardly attacks.
DOJ ANNOUNCES CHARGES BROUGHT AGAINST CONSPIRATORS WHO PLOTTED WMD ATTACK ON U.S.
FROM: U.S. JUSTICE DEPARTMENT
Thursday, April 2, 2015
Two Queens, New York, Residents Charged With Conspiracy to Use a Weapon of Mass Destruction
Defendants Allegedly Plotted to Construct an Explosive Device for Use in a Terrorist Attack on U.S. Soil
U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD) announced that earlier today, a criminal complaint was unsealed in federal court in the Eastern District of New York charging Noelle Velentzas and Asia Siddiqui with conspiracy to use weapons of mass destruction against persons or property in the United States. The defendants’ initial appearances are scheduled for this afternoon before U.S. Magistrate Judge Viktor V. Pohorelsky of the Eastern District of New York.
As alleged in the complaint, the defendants have repeatedly expressed their support for violent jihad. For instance, in or about 2009, Siddiqui published a poem in a magazine published by al-Qaeda in the Arabian Peninsula that exhorted readers to wage jihad and declared that there is “[n]o excuse to sit back and wait – for the skies rain martyrdom.” More recently, Velentzas, who has characterized al-Qaeda founder Usama Bin Laden as one of her heroes, declared that she and Siddiqui are “citizens of the Islamic State” – a reference to the foreign terrorist organization that is also known as Islamic State in Iraq and the Levant (ISIL). Less than two weeks ago, Velentzas, asked whether she had heard the news about the recent arrest of a former U.S. airman who had attempted to travel to Syria to wage jihad and stated that she did not understand why people were traveling overseas to engage in jihad when there were more opportunities of “pleasing Allah” in the United States.
Since at least August 2014, the defendants have allegedly plotted to construct an explosive device for use in a terrorist attack on American soil. In their self-proclaimed effort to “make history,” the defendants researched numerous explosive precursors. For instance, they researched and acquired some of the components of a car bomb, like the one used in the 1993 World Trade Center bombing; a fertilizer bomb, like the one used in the 1995 bombing of the federal building in Oklahoma City; and a pressure cooker bomb, like the one used in the 2013 Boston Marathon bombing. The investigation recently revealed that the defendants possessed propane gas tanks together with instructions from an online jihadist publication for transforming propane tanks into explosive devices.
“We are committed to doing everything in our ability to detect, disrupt and deter attacks by homegrown violent extremists,” said U.S. Attorney Lynch. “As alleged, the defendants in this case carefully studied how to construct an explosive device to launch an attack on the homeland. We remain firm in our resolve to hold accountable anyone who would seek to terrorize the American people, whether by traveling abroad to commit attacks overseas or by plotting here at home.” U.S. Attorney Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a large number of federal, state and local agencies from the region, as well as to the NYPD Intelligence Division, for their assistance in the investigation.
“Velentzas and Siddiqui are alleged to have researched how to construct bombs as part of their conspiracy to use a weapon of mass destruction on American soil,” said Assistant Attorney General Carlin. “Identifying and disrupting such threats to public safety, whether at home or abroad, is the number one priority of the National Security Division and our partners in the law enforcement and intelligence communities. I want to thank the agents, analysts and prosecutors who are responsible for today’s charges.”
“The defendants allegedly plotted to wreak terror by creating explosive devices and even researching the pressure cooker bombs used during the Boston Marathon bombing,” said Assistant Director in Charge Rodriguez. “We continue to pursue those who look to commit acts of terror and deter others who think they are beyond the reach of law enforcement. I’d like to thank Commissioner Bratton and the New York City Police Department for their partnership on this case and so many others.”
“These defendants allegedly engaged in sustained efforts to obtain bomb-making instructions and materials, including using instructions provided by al-Qaeda’s online magazine,” said Commissioner Bratton. “The work of the NYPD’s Intelligence Bureau, its undercover Detective, and the seamless collaboration with the Special Agents and Detectives of the Joint Terrorism Task Force and United States Attorney for the Eastern District should serve as a model for early detection and prevention of terrorist plotting.”
If convicted, both defendants face a maximum sentence of life imprisonment. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant U.S. Attorneys Alexander A. Solomon, Douglas M. Pravda and Jennifer S. Carapiet of the Eastern District of New York, with assistance provided by Trial Attorney Clement McGovern of the Justice Department’s National Security Division.
Thursday, April 2, 2015
Two Queens, New York, Residents Charged With Conspiracy to Use a Weapon of Mass Destruction
Defendants Allegedly Plotted to Construct an Explosive Device for Use in a Terrorist Attack on U.S. Soil
U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD) announced that earlier today, a criminal complaint was unsealed in federal court in the Eastern District of New York charging Noelle Velentzas and Asia Siddiqui with conspiracy to use weapons of mass destruction against persons or property in the United States. The defendants’ initial appearances are scheduled for this afternoon before U.S. Magistrate Judge Viktor V. Pohorelsky of the Eastern District of New York.
As alleged in the complaint, the defendants have repeatedly expressed their support for violent jihad. For instance, in or about 2009, Siddiqui published a poem in a magazine published by al-Qaeda in the Arabian Peninsula that exhorted readers to wage jihad and declared that there is “[n]o excuse to sit back and wait – for the skies rain martyrdom.” More recently, Velentzas, who has characterized al-Qaeda founder Usama Bin Laden as one of her heroes, declared that she and Siddiqui are “citizens of the Islamic State” – a reference to the foreign terrorist organization that is also known as Islamic State in Iraq and the Levant (ISIL). Less than two weeks ago, Velentzas, asked whether she had heard the news about the recent arrest of a former U.S. airman who had attempted to travel to Syria to wage jihad and stated that she did not understand why people were traveling overseas to engage in jihad when there were more opportunities of “pleasing Allah” in the United States.
Since at least August 2014, the defendants have allegedly plotted to construct an explosive device for use in a terrorist attack on American soil. In their self-proclaimed effort to “make history,” the defendants researched numerous explosive precursors. For instance, they researched and acquired some of the components of a car bomb, like the one used in the 1993 World Trade Center bombing; a fertilizer bomb, like the one used in the 1995 bombing of the federal building in Oklahoma City; and a pressure cooker bomb, like the one used in the 2013 Boston Marathon bombing. The investigation recently revealed that the defendants possessed propane gas tanks together with instructions from an online jihadist publication for transforming propane tanks into explosive devices.
“We are committed to doing everything in our ability to detect, disrupt and deter attacks by homegrown violent extremists,” said U.S. Attorney Lynch. “As alleged, the defendants in this case carefully studied how to construct an explosive device to launch an attack on the homeland. We remain firm in our resolve to hold accountable anyone who would seek to terrorize the American people, whether by traveling abroad to commit attacks overseas or by plotting here at home.” U.S. Attorney Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a large number of federal, state and local agencies from the region, as well as to the NYPD Intelligence Division, for their assistance in the investigation.
“Velentzas and Siddiqui are alleged to have researched how to construct bombs as part of their conspiracy to use a weapon of mass destruction on American soil,” said Assistant Attorney General Carlin. “Identifying and disrupting such threats to public safety, whether at home or abroad, is the number one priority of the National Security Division and our partners in the law enforcement and intelligence communities. I want to thank the agents, analysts and prosecutors who are responsible for today’s charges.”
“The defendants allegedly plotted to wreak terror by creating explosive devices and even researching the pressure cooker bombs used during the Boston Marathon bombing,” said Assistant Director in Charge Rodriguez. “We continue to pursue those who look to commit acts of terror and deter others who think they are beyond the reach of law enforcement. I’d like to thank Commissioner Bratton and the New York City Police Department for their partnership on this case and so many others.”
“These defendants allegedly engaged in sustained efforts to obtain bomb-making instructions and materials, including using instructions provided by al-Qaeda’s online magazine,” said Commissioner Bratton. “The work of the NYPD’s Intelligence Bureau, its undercover Detective, and the seamless collaboration with the Special Agents and Detectives of the Joint Terrorism Task Force and United States Attorney for the Eastern District should serve as a model for early detection and prevention of terrorist plotting.”
If convicted, both defendants face a maximum sentence of life imprisonment. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant U.S. Attorneys Alexander A. Solomon, Douglas M. Pravda and Jennifer S. Carapiet of the Eastern District of New York, with assistance provided by Trial Attorney Clement McGovern of the Justice Department’s National Security Division.
WHITE HOUSE ISSUES PARAMETERS FOR NUCLEAR DEAL WITH IRAN
FROM: THE WHITE HOUSE
April 02, 2015
Parameters for a Joint Comprehensive Plan of Action Regarding the Islamic Republic of Iran's Nuclear Program
Below are the key parameters of a Joint Comprehensive Plan of Action (JCPOA) regarding the Islamic Republic of Iran’s nuclear program that were decided in Lausanne, Switzerland. These elements form the foundation upon which the final text of the JCPOA will be written between now and June 30, and reflect the significant progress that has been made in discussions between the P5+1, the European Union, and Iran. Important implementation details are still subject to negotiation, and nothing is agreed until everything is agreed. We will work to conclude the JCPOA based on these parameters over the coming months.
Enrichment
Iran has agreed to reduce by approximately two-thirds its installed centrifuges. Iran will go from having about 19,000 installed today to 6,104 installed under the deal, with only 5,060 of these enriching uranium for 10 years. All 6,104 centrifuges will be IR-1s, Iran’s first-generation centrifuge.
Iran has agreed to not enrich uranium over 3.67 percent for at least 15 years.
Iran has agreed to reduce its current stockpile of about 10,000 kg of low-enriched
uranium (LEU) to 300 kg of 3.67 percent LEU for 15 years.
All excess centrifuges and enrichment infrastructure will be placed in IAEA monitored storage and will be used only as replacements for operating centrifuges and equipment.
Iran has agreed to not build any new facilities for the purpose of enriching uranium for 15 years.
Iran’s breakout timeline – the time that it would take for Iran to acquire enough fissile material for one weapon – is currently assessed to be 2 to 3 months. That timeline will be extended to at least one year, for a duration of at least ten years, under this framework.
Iran will convert its facility at Fordow so that it is no longer used to enrich uranium
Iran has agreed to not enrich uranium at its Fordow facility for at least 15 years.
Iran has agreed to convert its Fordow facility so that it is used for peaceful purposes only
– into a nuclear, physics, technology, research center.
Iran has agreed to not conduct research and development associated with uranium enrichment at Fordow for 15 years.
Iran will not have any fissile material at Fordow for 15 years.
• Almost two-thirds of Fordow’s centrifuges and infrastructure will be removed. The remaining centrifuges will not enrich uranium. All centrifuges and related infrastructure will be placed under IAEA monitoring.
Iran will only enrich uranium at the Natanz facility, with only 5,060 IR-1 first-generation centrifuges for ten years.
Iran has agreed to only enrich uranium using its first generation (IR-1 models) centrifuges at Natanz for ten years, removing its more advanced centrifuges.
Iran will remove the 1,000 IR-2M centrifuges currently installed at Natanz and place them in IAEA monitored storage for ten years.
Iran will not use its IR-2, IR-4, IR-5, IR-6, or IR-8 models to produce enriched uranium for at least ten years. Iran will engage in limited research and development with its advanced centrifuges, according to a schedule and parameters which have been agreed to by the P5+1.
For ten years, enrichment and enrichment research and development will be limited to ensure a breakout timeline of at least 1 year. Beyond 10 years, Iran will abide by its enrichment and enrichment R&D plan submitted to the IAEA, and pursuant to the JCPOA, under the Additional Protocol resulting in certain limitations on enrichment capacity.
Inspections and Transparency
The IAEA will have regular access to all of Iran’s nuclear facilities, including to Iran’s enrichment facility at Natanz and its former enrichment facility at Fordow, and including the use of the most up-to-date, modern monitoring technologies.
Inspectors will have access to the supply chain that supports Iran’s nuclear program. The new transparency and inspections mechanisms will closely monitor materials and/or components to prevent diversion to a secret program.
Inspectors will have access to uranium mines and continuous surveillance at uranium mills, where Iran produces yellowcake, for 25 years.
Inspectors will have continuous surveillance of Iran’s centrifuge rotors and bellows production and storage facilities for 20 years. Iran’s centrifuge manufacturing base will be frozen and under continuous surveillance.
All centrifuges and enrichment infrastructure removed from Fordow and Natanz will be placed under continuous monitoring by the IAEA.
A dedicated procurement channel for Iran’s nuclear program will be established to monitor and approve, on a case by case basis, the supply, sale, or transfer to Iran of certain nuclear-related and dual use materials and technology – an additional transparency measure.
Iran has agreed to implement the Additional Protocol of the IAEA, providing the IAEA much greater access and information regarding Iran’s nuclear program, including both declared and undeclared facilities.
Iran will be required to grant access to the IAEA to investigate suspicious sites or allegations of a covert enrichment facility, conversion facility, centrifuge production facility, or yellowcake production facility anywhere in the country.
Iran has agreed to implement Modified Code 3.1 requiring early notification of construction of new facilities.
Iran will implement an agreed set of measures to address the IAEA’s concerns regarding the Possible Military Dimensions (PMD) of its program.
Reactors and Reprocessing
Iran has agreed to redesign and rebuild a heavy water research reactor in Arak, based on a design that is agreed to by the P5+1, which will not produce weapons grade plutonium, and which will support peaceful nuclear research and radioisotope production.
The original core of the reactor, which would have enabled the production of significant quantities of weapons-grade plutonium, will be destroyed or removed from the country.
Iran will ship all of its spent fuel from the reactor out of the country for the reactor’s lifetime.
Iran has committed indefinitely to not conduct reprocessing or reprocessing research and development on spent nuclear fuel.
Iran will not accumulate heavy water in excess of the needs of the modified Arak reactor, and will sell any remaining heavy water on the international market for 15 years.
Iran will not build any additional heavy water reactors for 15 years.
Sanctions
•Iran will receive sanctions relief, if it verifiably abides by its commitments.
• U.S. and E.U. nuclear-related sanctions will be suspended after the IAEA has verified that Iran has taken all of its key nuclear-related steps. If at any time Iran fails to fulfill its commitments, these sanctions will snap back into place.
The architecture of U.S. nuclear-related sanctions on Iran will be retained for much of the duration of the deal and allow for snap-back of sanctions in the event of significant non-performance.
All past UN Security Council resolutions on the Iran nuclear issue will be lifted simultaneous with the completion, by Iran, of nuclear-related actions addressing all key concerns (enrichment, Fordow, Arak, PMD, and transparency).
However, core provisions in the UN Security Council resolutions – those that deal with transfers of sensitive technologies and activities – will be re-established by a new UN Security Council resolution that will endorse the JCPOA and urge its full implementation. It will also create the procurement channel mentioned above, which will serve as a key transparency measure. Important restrictions on conventional arms and ballistic missiles, as well as provisions that allow for related cargo inspections and asset freezes, will also be incorporated by this new resolution.
A dispute resolution process will be specified, which enables any JCPOA participant, to seek to resolve disagreements about the performance of JCPOA commitments.
If an issue of significant non-performance cannot be resolved through that process, then all previous UN sanctions could be re-imposed.
U.S. sanctions on Iran for terrorism, human rights abuses, and ballistic missiles will remain in place under the deal.
Phasing
For ten years, Iran will limit domestic enrichment capacity and research and development – ensuring a breakout timeline of at least one year. Beyond that, Iran will be bound by its longer-term enrichment and enrichment research and development plan it shared with the P5+1.
For fifteen years, Iran will limit additional elements of its program. For instance, Iran will not build new enrichment facilities or heavy water reactors and will limit its stockpile of enriched uranium and accept enhanced transparency procedures.
Important inspections and transparency measures will continue well beyond 15 years. Iran’s adherence to the Additional Protocol of the IAEA is permanent, including its significant access and transparency obligations. The robust inspections of Iran’s uranium supply chain will last for 25 years.
Even after the period of the most stringent limitations on Iran’s nuclear program, Iran will remain a party to the Nuclear Non-Proliferation Treaty (NPT), which prohibits Iran’s development or acquisition of nuclear weapons and requires IAEA safeguards on its nuclear program.
April 02, 2015
Parameters for a Joint Comprehensive Plan of Action Regarding the Islamic Republic of Iran's Nuclear Program
Below are the key parameters of a Joint Comprehensive Plan of Action (JCPOA) regarding the Islamic Republic of Iran’s nuclear program that were decided in Lausanne, Switzerland. These elements form the foundation upon which the final text of the JCPOA will be written between now and June 30, and reflect the significant progress that has been made in discussions between the P5+1, the European Union, and Iran. Important implementation details are still subject to negotiation, and nothing is agreed until everything is agreed. We will work to conclude the JCPOA based on these parameters over the coming months.
Enrichment
Iran has agreed to reduce by approximately two-thirds its installed centrifuges. Iran will go from having about 19,000 installed today to 6,104 installed under the deal, with only 5,060 of these enriching uranium for 10 years. All 6,104 centrifuges will be IR-1s, Iran’s first-generation centrifuge.
Iran has agreed to not enrich uranium over 3.67 percent for at least 15 years.
Iran has agreed to reduce its current stockpile of about 10,000 kg of low-enriched
uranium (LEU) to 300 kg of 3.67 percent LEU for 15 years.
All excess centrifuges and enrichment infrastructure will be placed in IAEA monitored storage and will be used only as replacements for operating centrifuges and equipment.
Iran has agreed to not build any new facilities for the purpose of enriching uranium for 15 years.
Iran’s breakout timeline – the time that it would take for Iran to acquire enough fissile material for one weapon – is currently assessed to be 2 to 3 months. That timeline will be extended to at least one year, for a duration of at least ten years, under this framework.
Iran will convert its facility at Fordow so that it is no longer used to enrich uranium
Iran has agreed to not enrich uranium at its Fordow facility for at least 15 years.
Iran has agreed to convert its Fordow facility so that it is used for peaceful purposes only
– into a nuclear, physics, technology, research center.
Iran has agreed to not conduct research and development associated with uranium enrichment at Fordow for 15 years.
Iran will not have any fissile material at Fordow for 15 years.
• Almost two-thirds of Fordow’s centrifuges and infrastructure will be removed. The remaining centrifuges will not enrich uranium. All centrifuges and related infrastructure will be placed under IAEA monitoring.
Iran will only enrich uranium at the Natanz facility, with only 5,060 IR-1 first-generation centrifuges for ten years.
Iran has agreed to only enrich uranium using its first generation (IR-1 models) centrifuges at Natanz for ten years, removing its more advanced centrifuges.
Iran will remove the 1,000 IR-2M centrifuges currently installed at Natanz and place them in IAEA monitored storage for ten years.
Iran will not use its IR-2, IR-4, IR-5, IR-6, or IR-8 models to produce enriched uranium for at least ten years. Iran will engage in limited research and development with its advanced centrifuges, according to a schedule and parameters which have been agreed to by the P5+1.
For ten years, enrichment and enrichment research and development will be limited to ensure a breakout timeline of at least 1 year. Beyond 10 years, Iran will abide by its enrichment and enrichment R&D plan submitted to the IAEA, and pursuant to the JCPOA, under the Additional Protocol resulting in certain limitations on enrichment capacity.
Inspections and Transparency
The IAEA will have regular access to all of Iran’s nuclear facilities, including to Iran’s enrichment facility at Natanz and its former enrichment facility at Fordow, and including the use of the most up-to-date, modern monitoring technologies.
Inspectors will have access to the supply chain that supports Iran’s nuclear program. The new transparency and inspections mechanisms will closely monitor materials and/or components to prevent diversion to a secret program.
Inspectors will have access to uranium mines and continuous surveillance at uranium mills, where Iran produces yellowcake, for 25 years.
Inspectors will have continuous surveillance of Iran’s centrifuge rotors and bellows production and storage facilities for 20 years. Iran’s centrifuge manufacturing base will be frozen and under continuous surveillance.
All centrifuges and enrichment infrastructure removed from Fordow and Natanz will be placed under continuous monitoring by the IAEA.
A dedicated procurement channel for Iran’s nuclear program will be established to monitor and approve, on a case by case basis, the supply, sale, or transfer to Iran of certain nuclear-related and dual use materials and technology – an additional transparency measure.
Iran has agreed to implement the Additional Protocol of the IAEA, providing the IAEA much greater access and information regarding Iran’s nuclear program, including both declared and undeclared facilities.
Iran will be required to grant access to the IAEA to investigate suspicious sites or allegations of a covert enrichment facility, conversion facility, centrifuge production facility, or yellowcake production facility anywhere in the country.
Iran has agreed to implement Modified Code 3.1 requiring early notification of construction of new facilities.
Iran will implement an agreed set of measures to address the IAEA’s concerns regarding the Possible Military Dimensions (PMD) of its program.
Reactors and Reprocessing
Iran has agreed to redesign and rebuild a heavy water research reactor in Arak, based on a design that is agreed to by the P5+1, which will not produce weapons grade plutonium, and which will support peaceful nuclear research and radioisotope production.
The original core of the reactor, which would have enabled the production of significant quantities of weapons-grade plutonium, will be destroyed or removed from the country.
Iran will ship all of its spent fuel from the reactor out of the country for the reactor’s lifetime.
Iran has committed indefinitely to not conduct reprocessing or reprocessing research and development on spent nuclear fuel.
Iran will not accumulate heavy water in excess of the needs of the modified Arak reactor, and will sell any remaining heavy water on the international market for 15 years.
Iran will not build any additional heavy water reactors for 15 years.
Sanctions
•Iran will receive sanctions relief, if it verifiably abides by its commitments.
• U.S. and E.U. nuclear-related sanctions will be suspended after the IAEA has verified that Iran has taken all of its key nuclear-related steps. If at any time Iran fails to fulfill its commitments, these sanctions will snap back into place.
The architecture of U.S. nuclear-related sanctions on Iran will be retained for much of the duration of the deal and allow for snap-back of sanctions in the event of significant non-performance.
All past UN Security Council resolutions on the Iran nuclear issue will be lifted simultaneous with the completion, by Iran, of nuclear-related actions addressing all key concerns (enrichment, Fordow, Arak, PMD, and transparency).
However, core provisions in the UN Security Council resolutions – those that deal with transfers of sensitive technologies and activities – will be re-established by a new UN Security Council resolution that will endorse the JCPOA and urge its full implementation. It will also create the procurement channel mentioned above, which will serve as a key transparency measure. Important restrictions on conventional arms and ballistic missiles, as well as provisions that allow for related cargo inspections and asset freezes, will also be incorporated by this new resolution.
A dispute resolution process will be specified, which enables any JCPOA participant, to seek to resolve disagreements about the performance of JCPOA commitments.
If an issue of significant non-performance cannot be resolved through that process, then all previous UN sanctions could be re-imposed.
U.S. sanctions on Iran for terrorism, human rights abuses, and ballistic missiles will remain in place under the deal.
Phasing
For ten years, Iran will limit domestic enrichment capacity and research and development – ensuring a breakout timeline of at least one year. Beyond that, Iran will be bound by its longer-term enrichment and enrichment research and development plan it shared with the P5+1.
For fifteen years, Iran will limit additional elements of its program. For instance, Iran will not build new enrichment facilities or heavy water reactors and will limit its stockpile of enriched uranium and accept enhanced transparency procedures.
Important inspections and transparency measures will continue well beyond 15 years. Iran’s adherence to the Additional Protocol of the IAEA is permanent, including its significant access and transparency obligations. The robust inspections of Iran’s uranium supply chain will last for 25 years.
Even after the period of the most stringent limitations on Iran’s nuclear program, Iran will remain a party to the Nuclear Non-Proliferation Treaty (NPT), which prohibits Iran’s development or acquisition of nuclear weapons and requires IAEA safeguards on its nuclear program.
MORE AIRSTRIKES REPORTED AGAINST ISIL IN SYRIA, IRAQ
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, April 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
Fighter, attack and bomber aircraft conducted seven airstrikes in Syria:
-- Near Hasakah, four airstrikes struck four ISIL tactical units and destroyed four ISIL fighting positions.
-- Near Kobani, three airstrikes struck three ISIL tactical units, three ISIL vehicles and destroyed three ISIL fighting positions.
Airstrikes in Iraq
Attack, fighter and remotely piloted aircraft conducted seven airstrikes in Iraq, approved by the Iraqi Ministry of Defense:
-- Near Hit in Anbar province, an airstrike struck an ISIL tactical unit and destroyed an ISIL vehicle.
-- Near Kirkuk, an airstrike struck an ISIL tactical unit and destroyed two ISIL buildings and two ISIL heavy machine guns.
-- Near Mosul, an airstrike destroyed an ISIL artillery piece.
-- Near Ramadi, two airstrikes struck an ISIL large tactical unit and an ISIL tactical unit.
-- Near Tal Afar, two airstrikes struck an ISIL fighting position and an ISIL tent shelter.
Part of Operation Inherent Resolve
The strikes were conducted as part of Operation Inherent Resolve, the operation to eliminate the ISIL terrorist group and the threat they pose to Iraq, Syria, the region, and the wider international community. The destruction of ISIL targets in Syria and Iraq further limits the terrorist group's ability to project terror and conduct operations.
Coalition nations conducting airstrikes in Iraq include the United States, Australia, Belgium, Canada, Denmark, France, Jordan, 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.
Airstrikes Continue Against ISIL in Syria, Iraq
From a Combined Joint Task Force Operation Inherent Resolve News Release
SOUTHWEST ASIA, April 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
Fighter, attack and bomber aircraft conducted seven airstrikes in Syria:
-- Near Hasakah, four airstrikes struck four ISIL tactical units and destroyed four ISIL fighting positions.
-- Near Kobani, three airstrikes struck three ISIL tactical units, three ISIL vehicles and destroyed three ISIL fighting positions.
Airstrikes in Iraq
Attack, fighter and remotely piloted aircraft conducted seven airstrikes in Iraq, approved by the Iraqi Ministry of Defense:
-- Near Hit in Anbar province, an airstrike struck an ISIL tactical unit and destroyed an ISIL vehicle.
-- Near Kirkuk, an airstrike struck an ISIL tactical unit and destroyed two ISIL buildings and two ISIL heavy machine guns.
-- Near Mosul, an airstrike destroyed an ISIL artillery piece.
-- Near Ramadi, two airstrikes struck an ISIL large tactical unit and an ISIL tactical unit.
-- Near Tal Afar, two airstrikes struck an ISIL fighting position and an ISIL tent shelter.
Part of Operation Inherent Resolve
The strikes were conducted as part of Operation Inherent Resolve, the operation to eliminate the ISIL terrorist group and the threat they pose to Iraq, Syria, the region, and the wider international community. The destruction of ISIL targets in Syria and Iraq further limits the terrorist group's ability to project terror and conduct operations.
Coalition nations conducting airstrikes in Iraq include the United States, Australia, Belgium, Canada, Denmark, France, Jordan, 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.
SEC FILES ENFORCEMENT ACTION AGAINST COMPANY FOR USING CONFIDENTIALITY AGREEMENTS IN VIOLATION OW WHISTLEBLOWER PROTECTION RULE
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
04/01/2015 10:45 AM EDT
The Securities and Exchange Commission today announced its first enforcement action against a company for using improperly restrictive language in confidentiality agreements with the potential to stifle the whistleblowing process.
The SEC charged Houston-based global technology and engineering firm KBR Inc. with violating whistleblower protection Rule 21F-17 enacted under the Dodd-Frank Act. KBR required witnesses in certain internal investigations interviews to sign confidentiality statements with language warning that they could face discipline and even be fired if they discussed the matters with outside parties without the prior approval of KBR’s legal department. Since these investigations included allegations of possible securities law violations, the SEC found that these terms violated Rule 21F-17, which prohibits companies from taking any action to impede whistleblowers from reporting possible securities violations to the SEC.
KBR agreed to pay a $130,000 penalty to settle the SEC’s charges and the company voluntarily amended its confidentiality statement by adding language making clear that employees are free to report possible violations to the SEC and other federal agencies without KBR approval or fear of retaliation.
“By requiring its employees and former employees to sign confidentiality agreements imposing pre-notification requirements before contacting the SEC, KBR potentially discouraged employees from reporting securities violations to us,” said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement. “SEC rules prohibit employers from taking measures through confidentiality, employment, severance, or other type of agreements that may silence potential whistleblowers before they can reach out to the SEC. We will vigorously enforce this provision.”
According to the SEC’s order instituting a settled administrative proceeding, there are no apparent instances in which KBR specifically prevented employees from communicating with the SEC about specific securities law violations. However, any company’s blanket prohibition against witnesses discussing the substance of the interview has a potential chilling effect on whistleblowers’ willingness to report illegal conduct to the SEC.
“KBR changed its agreements to make clear that its current and former employees will not have to fear termination or retribution or seek approval from company lawyers before contacting us.” said Sean McKessy, Chief of the SEC’s Office of the Whistleblower. “Other employers should similarly review and amend existing and historical agreements that in word or effect stop their employees from reporting potential violations to the SEC.”
Without admitting or denying the charges, KBR agreed to cease and desist from committing or causing any future violations of Rule 21F-17.
The SEC’s investigation was conducted by Jim Etri and Rebecca Fike and supervised by David L. Peavler of the Fort Worth Regional Office.
04/01/2015 10:45 AM EDT
The Securities and Exchange Commission today announced its first enforcement action against a company for using improperly restrictive language in confidentiality agreements with the potential to stifle the whistleblowing process.
The SEC charged Houston-based global technology and engineering firm KBR Inc. with violating whistleblower protection Rule 21F-17 enacted under the Dodd-Frank Act. KBR required witnesses in certain internal investigations interviews to sign confidentiality statements with language warning that they could face discipline and even be fired if they discussed the matters with outside parties without the prior approval of KBR’s legal department. Since these investigations included allegations of possible securities law violations, the SEC found that these terms violated Rule 21F-17, which prohibits companies from taking any action to impede whistleblowers from reporting possible securities violations to the SEC.
KBR agreed to pay a $130,000 penalty to settle the SEC’s charges and the company voluntarily amended its confidentiality statement by adding language making clear that employees are free to report possible violations to the SEC and other federal agencies without KBR approval or fear of retaliation.
“By requiring its employees and former employees to sign confidentiality agreements imposing pre-notification requirements before contacting the SEC, KBR potentially discouraged employees from reporting securities violations to us,” said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement. “SEC rules prohibit employers from taking measures through confidentiality, employment, severance, or other type of agreements that may silence potential whistleblowers before they can reach out to the SEC. We will vigorously enforce this provision.”
According to the SEC’s order instituting a settled administrative proceeding, there are no apparent instances in which KBR specifically prevented employees from communicating with the SEC about specific securities law violations. However, any company’s blanket prohibition against witnesses discussing the substance of the interview has a potential chilling effect on whistleblowers’ willingness to report illegal conduct to the SEC.
“KBR changed its agreements to make clear that its current and former employees will not have to fear termination or retribution or seek approval from company lawyers before contacting us.” said Sean McKessy, Chief of the SEC’s Office of the Whistleblower. “Other employers should similarly review and amend existing and historical agreements that in word or effect stop their employees from reporting potential violations to the SEC.”
Without admitting or denying the charges, KBR agreed to cease and desist from committing or causing any future violations of Rule 21F-17.
The SEC’s investigation was conducted by Jim Etri and Rebecca Fike and supervised by David L. Peavler of the Fort Worth Regional Office.
PRESIDENT OBAMA'S LETTER ON BLOCKING PROPERTY REGARDING MALICIOUS CYBER-ENABLED ACTIVITIES
FROM: THE WHITE HOUSE
April 01, 2015
Letter -- "Blocking the Property of Certain Persons Engaging in Significant Malicious Cyber-Enabled Activities"
TEXT OF A LETTER FROM THE PRESIDENT
TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES
AND THE PRESIDENT OF THE SENATE
April 1, 2015
Dear Mr. Speaker: (Dear Mr. President:)
Pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), I hereby report that I have issued an Executive Order (the "order") declaring a national emergency with respect to the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States posed by the increasing prevalence and severity of malicious cyber-enabled activities originating from, or directed by persons located, in whole or in substantial part, outside the United States.
The order would block the property and interests in property of:
any person determined by the Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State, to be responsible for or complicit in, or to have engaged in, directly or indirectly, cyber-enabled activities originating from, or directed by persons located, in whole or in substantial part, outside the United States that are reasonably likely to result in, or have materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States and that have the purpose or effect of:
harming, or otherwise significantly compromising the provision of services by, a computer or network of computers that support one or more entities in a critical infrastructure sector;
significantly compromising the provision of services by one or more entities in a critical infrastructure sector;
causing a significant disruption to the availability of a computer or network of computers; or causing a significant misappropriation of funds or economic resources, trade secrets, personal identifiers, or financial information for commercial or competitive advantage or private financial gain; or any person determined by the Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State:
to be responsible for or complicit in, or to have engaged in, the receipt or use for commercial or competitive advantage or private financial gain, or by a commercial entity, outside the United States of trade secrets misappropriated through cyber-enabled means, knowing they have been misappropriated, where the misappropriation of such trade secrets is reasonably likely to result in, or has materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States;
to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, certain malicious cyber-enabled activities described in the order or any person whose property and interests in property are blocked pursuant to the order;
to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to the order; orto have attempted to engage in any of the malicious activities described in the order.
In addition, the order suspends entry into the United States of any alien determined to meet one or more of the above criteria.
I have delegated to the Secretary of the Treasury the authority, in consultation with the Attorney General and the Secretary of State, to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to the President by IEEPA as may be necessary to carry out the purposes of the order. All executive agencies are directed to take all appropriate measures within their authority to carry out the provisions of the order.
I am enclosing a copy of the Executive Order I have issued.
Sincerely,
BARACK OBAMA
April 01, 2015
Letter -- "Blocking the Property of Certain Persons Engaging in Significant Malicious Cyber-Enabled Activities"
TEXT OF A LETTER FROM THE PRESIDENT
TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES
AND THE PRESIDENT OF THE SENATE
April 1, 2015
Dear Mr. Speaker: (Dear Mr. President:)
Pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), I hereby report that I have issued an Executive Order (the "order") declaring a national emergency with respect to the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States posed by the increasing prevalence and severity of malicious cyber-enabled activities originating from, or directed by persons located, in whole or in substantial part, outside the United States.
The order would block the property and interests in property of:
any person determined by the Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State, to be responsible for or complicit in, or to have engaged in, directly or indirectly, cyber-enabled activities originating from, or directed by persons located, in whole or in substantial part, outside the United States that are reasonably likely to result in, or have materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States and that have the purpose or effect of:
harming, or otherwise significantly compromising the provision of services by, a computer or network of computers that support one or more entities in a critical infrastructure sector;
significantly compromising the provision of services by one or more entities in a critical infrastructure sector;
causing a significant disruption to the availability of a computer or network of computers; or causing a significant misappropriation of funds or economic resources, trade secrets, personal identifiers, or financial information for commercial or competitive advantage or private financial gain; or any person determined by the Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State:
to be responsible for or complicit in, or to have engaged in, the receipt or use for commercial or competitive advantage or private financial gain, or by a commercial entity, outside the United States of trade secrets misappropriated through cyber-enabled means, knowing they have been misappropriated, where the misappropriation of such trade secrets is reasonably likely to result in, or has materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States;
to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, certain malicious cyber-enabled activities described in the order or any person whose property and interests in property are blocked pursuant to the order;
to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to the order; orto have attempted to engage in any of the malicious activities described in the order.
In addition, the order suspends entry into the United States of any alien determined to meet one or more of the above criteria.
I have delegated to the Secretary of the Treasury the authority, in consultation with the Attorney General and the Secretary of State, to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to the President by IEEPA as may be necessary to carry out the purposes of the order. All executive agencies are directed to take all appropriate measures within their authority to carry out the provisions of the order.
I am enclosing a copy of the Executive Order I have issued.
Sincerely,
BARACK OBAMA
VA HAS NEW GRANTS TO HELP HOMELESS VETS
FROM: U.S. VETERANS ADMINISTRATION
VA Announces New Grants to Help End Veteran Homelessness
March 31, 2015, 02:04:00 PM
VA Announces New Grants to Help End Veteran Homelessness
Initiative Targets 45,000 Homeless and At-Risk Vets and Families in High Need Communities
WASHINGTON – Secretary of Veterans Affairs Robert A. McDonald today announced the award of nearly $93 million in Supportive Services for Veteran Families (SSVF) 3-year grants that will help approximately 45,000 homeless and at-risk Veterans and their families. The grants will be distributed to 24 non-profit agencies in 15 communities, with $30 million in awards being distributed to the Los Angeles area.
“The Department of Veterans Affairs is committed to using evidence-based approaches such as SSVF to prevent homelessness and produce successful outcomes for Veterans and their families,” said Secretary McDonald. “This is a program that works, because it allows VA staff and local homeless service providers to work together to effectively address the unique challenges that make it difficult for some Veterans and their families to remain stably housed.”
Under the SSVF program, VA is awarding grants to private, non-profit organizations and consumer cooperatives that provide services to very low-income Veteran families living in – or transitioning to – permanent housing. The grants announced today will provide additional resources to the fourth year operations of the SSVF program.
“With the addition of these crucial resources, communities across the country continue an historic drive to prevent and end homelessness among Veterans,” said Matthew Doherty, Acting Executive Director of the U.S. Interagency Council on Homelessness. “The SSVF program gives Veterans and their families the rapid assistance they need to remain in permanent housing or get back into permanent housing as quickly as possible.”
Through the homeless Veterans initiative, VA committed more than $1 billion in FY 2014 to strengthen programs that prevent and end homelessness among Veterans. VA provides a range of services to homeless Veterans, including health care, housing, job training and education.
VA Announces New Grants to Help End Veteran Homelessness
March 31, 2015, 02:04:00 PM
VA Announces New Grants to Help End Veteran Homelessness
Initiative Targets 45,000 Homeless and At-Risk Vets and Families in High Need Communities
WASHINGTON – Secretary of Veterans Affairs Robert A. McDonald today announced the award of nearly $93 million in Supportive Services for Veteran Families (SSVF) 3-year grants that will help approximately 45,000 homeless and at-risk Veterans and their families. The grants will be distributed to 24 non-profit agencies in 15 communities, with $30 million in awards being distributed to the Los Angeles area.
“The Department of Veterans Affairs is committed to using evidence-based approaches such as SSVF to prevent homelessness and produce successful outcomes for Veterans and their families,” said Secretary McDonald. “This is a program that works, because it allows VA staff and local homeless service providers to work together to effectively address the unique challenges that make it difficult for some Veterans and their families to remain stably housed.”
Under the SSVF program, VA is awarding grants to private, non-profit organizations and consumer cooperatives that provide services to very low-income Veteran families living in – or transitioning to – permanent housing. The grants announced today will provide additional resources to the fourth year operations of the SSVF program.
“With the addition of these crucial resources, communities across the country continue an historic drive to prevent and end homelessness among Veterans,” said Matthew Doherty, Acting Executive Director of the U.S. Interagency Council on Homelessness. “The SSVF program gives Veterans and their families the rapid assistance they need to remain in permanent housing or get back into permanent housing as quickly as possible.”
Through the homeless Veterans initiative, VA committed more than $1 billion in FY 2014 to strengthen programs that prevent and end homelessness among Veterans. VA provides a range of services to homeless Veterans, including health care, housing, job training and education.
NSF SUPPORTS FITNET APP FOR EXERCISE PARTICIPANTS
FROM: NATIONAL SCIENCE FOUNDATION
Fitness app connects exercisers to experts
NSF-supported Fitnet uses powerful computing and networking infrastructure to enable new capabilities
March 23, 2015
Can advanced networking and next-generation applications help solve some of our nation's most pressing health problems? Can mobile devices and high-speed Internet be used to improve our health and well-being? Showing a commitment that they can, in 2012 the National Science Foundation (NSF) launched the US Ignite initiative to demonstrate the power of apps for social good.
One outcome of the program is that today you can go to the Apple or Android app store and download Fitnet, a free exercise app supported by NSF that uses the camera on your phone to automatically assess the quality of the exercise and give you a score. Fitnet can also connect you to an online personal fitness trainer who can track this information and suggest routines to try based on an individual's health goal.
This mobile app is one of many fitness apps that are finding mass audiences of individuals eager to use technology to improve their health and well-being.
But what's unique about Fitnet is that, at the same time it is marketing its current app, it is also looking to a future of faster, programmable gigabit networks, according to Kevin Hill, Fitnet's "data czar".
In 2012, Fitnet (originally called KinectHealth 3D) was one of eight applications given the distinction of "App of the Future" in the brainstorming round of the NSF-supported Mozilla Ignite Challenge, and one of 22 apps whose development was funded through the program.
The idea behind Fitnet was to develop a new kind of tele-fitness app that could leverage deeply programmable and low latency fiber-optic networks. The award from Mozilla Ignite Challenge provided seed funding to build a prototype and to demonstrate a proof of concept.
In 2013, Fitnet received an additional NSF award to advance the project in partnership with Virginia Tech. Fitnet has also worked closely with US Ignite, a public-private partnership that promotes the development and deployment of gigabit applications, to identify critical use cases for its cutting edge technologies.
"Validation from the Mozilla Ignite Challenge, US Ignite and National Science Foundation was critical to this idea becoming a reality," said Bob Summers, chief geek and founder of Fitnet. "Our country has a health problem which advanced sensor, data and communication technology can help solve."
Part of the goal of US Ignite is to advance great ideas from the concept and prototype stage into commercial products, and Fitnet is one of the program's early successes. The app has been downloaded 280,000 times and has thousands of core users in all 50 states and over 200 countries.
Fitnet is one of a handful of fitness apps supported by Chromecast (the streaming media player developed by Google) and was among the first to be integrated into Apple's HealthKit, which allows health and fitness apps to work together for holistic monitoring.
Two key features differentiate Fitnet from other exercise apps on the market: the use of a phone's camera and image processing capabilities to interpret motion; and the ability to connect to a trainer who can monitor your progress, see how you're performing and personalize your workout plan as needed.
For now, the image processing is done locally on the phone and consequently, the assessments are not as complex as they could be. Likewise, the interactions with the trainer are asynchronous and do not include a live video feed--a function of the fact that most people don't have unfettered access to gigabit networks and unlimited data plans. But Fitnet is exploring improvements to both aspects.
"It would be a gamble to try to start a business that was focused only on gigabit Internet," Hill said. "But at the same time we know that's coming and that there are these great features that could be realized with high speed networks.
"The cool thing about the US Ignite community is the ability to do a little bit of both: to have our consumer-facing side but still push the envelope and do some really cool research."
Pushing the envelope means imagining new and better ways to automatically assess the quality of exercise using the cloud, and creating a network of remote "wired trainers" who can serve an entire community, adding jobs and helping thousands get healthier. They've begun to put the infrastructure together to test these concepts, using Virginia Tech in Blacksburg, Va., as the testbed.
A virtual lab for next-generation networking
Virginia Tech has a unique confluence of resources that make it a great place to base their pilot, Hill says.
"We've got students who want to do exercise, we've got Virginia Tech Rec Sports [Department of Recreational Sports] that is interested in how technology can impact personal trainers, and we've got great computer resources," he said.
The resources Hill is referring to is the Global Environment for Networking Innovations, or GENI, an experimental, ultra-high-speed, programmable networking testbed, begun in 2007, that allows researchers to test new networking ideas at scale. Virginia Tech hosts one of GENI's 180 or so nodes.
"One of the big limits is just how much processing power we have available on today's mobile devices," said Hill. "We think we can make some significant progress by leveraging the power of a centralized server--that's where the GENI rack will be very helpful. With GENI we have access to the computer resources needed to throw the most sophisticated algorithms available at the problem."
The grant from NSF helped build the computing and networking infrastructure required to enable Fitnet and other apps with real-time analysis and interaction to work, and to run the experiment with students and professional trainers at Virginia Tech.
"Just as astronomers band together and build a telescope that the community uses as a discipline-wide research instrument, GENI is the networking equivalent of a national instrument," said Mark Gardner, network research manager in Information Technology at Virginia Tech, and the lead researcher on the GENI grant.
"As we add more nodes to GENI, the instrument becomes more powerful and more capable, and it's set up so that once you get an account on GENI, you can run experiments on hardware scattered across the world."
While GENI sounds a little like superfast Internet service, it's more than that. With GENI, researchers get a slice of network, storage and computing resources on-demand on which to run experiments or do specialized tasks.
"The GENI infrastructure predated clouds and software defined networking and yet it has features of both," Gardner said.
Unlike most clouds, with GENI, the experimenter can program the way the network functions to make sure that the time lag between a client and trainer is low, for instance, or that computations run concurrently on hundreds of virtual machines during times of high traffic.
"And when the fitness guys aren't using GENI, it may be used for some other experiment," Gardner added.
In fact, more than 3000 researchers have run over 100,000 experiments in the eight years since GENI was established.
Adding live interaction and real-time assessments
The future app the Fitnet team is envisioning will work something like this:
As individuals work out, the output of the exercise analysis algorithm, as well as the video of exercises, will be shipped in real-time to the web dashboard of a trainer, a fitness expert at Virginia Tech Rec Sports.
The trainer will work with many individuals at once, doing exercises particular to their needs and interests.
The automated exercise assessment tools will help the trainer figure out who needs help, who is bored and whose heart rate is increasing.
The trainer will use that information to interact with each of the exercisers, judge the impact of the training and make suggestions for future sessions.
In this model, trainers are able to effectively manage and provide feedback to up to 12 people simultaneously, which could lower the price, make the services more available and also make it extremely personalized.
"In a traditional exercise class, all the people need to be doing the exact same thing," Hill said. "Here we can have each person doing a personalized workout routine and the trainer can still manage and interact with all of them."
GENI allows Fitnet, and other apps, to bring these capabilities to life for students at Virginia Tech and eventually for the nation.
Engaged fitness for at-risk populations
As they were developing the Virginia Tech project, the Fitnet team was working with a different set of users: students in the Healthy Hawks treatment program, a comprehensive family-based behavioral program run by University of Kansas Medical Center.
Healthy Hawks helps children, adolescents and their families overcome issues related to weight. The University of Kansas team was interested in being able to interact with families in a digital fashion over the course of their twelve-week program, recalled Hill.
With support from the Mozilla Foundation's Gigabit Community Fund, also funded by NSF, the pilot program provided iPads, cellular data plans, and personalized children's exercise content from local Kansas City trainers to Kansas City families.
"Using Fitnet allowed us to increase our contact time with participating families very easily," said Ann Davis, a pediatric psychologist at the University of Kansas Medical Center, and director of both the Healthy Hawks program and the Center for Children's Healthy Lifestyles & Nutrition project.
Davis and her team not only encouraged the families to use the exercise app in their homes, but when they came to meet as a group, the doctors had information about the students' exercise at their fingertips and were able to give personalized feedback. The app also allowed the group's dedicated trainer to provide coaching prompts in real-time.
"With those features, we've been able to lower the drop out rate, and increase the students' fitness outcomes," Davis said.
The second group of Healthy Hawks is now going through the program, with encouraging results.
"We're excited to work with the Heathy Hawks to be on the leading edge of the mobile-health revolution," Hill said.
Fitnet is considering other possible partnerships too, including with physical therapists and other health professionals.
"We have this disconnected world right now where you've got step counters, heart rate monitors, exercise apps. You can look at that data, but it's very hard to make decisions based on that data," Hill said. "What we hope to do is be able to centralize, organize and pass that information over to experts."
With early access to emerging networking technologies and pilot projects underway with diverse audiences, the Fitnet team believes it will only be a few years before their gigabit app is ready for market--and before the nation's broadband network catches up to the capabilities of Fitnet.
"Applications are the essential driver of new technologies," said Summers. "And health applications such as Fitnet that leverage gigabit technologies are leading the way to answering the key question: 'Why does gig speed matter?'"
-- Aaron Dubrow, NSF
-- Robert Summers, Fitnet
Investigators
Robert Summers
Mark Gardner
Kevin Hill
Related Institutions/Organizations
GENI
US Ignite
Mozilla Foundation
Virginia Polytechnic Institute and State University
Fitness app connects exercisers to experts
NSF-supported Fitnet uses powerful computing and networking infrastructure to enable new capabilities
March 23, 2015
Can advanced networking and next-generation applications help solve some of our nation's most pressing health problems? Can mobile devices and high-speed Internet be used to improve our health and well-being? Showing a commitment that they can, in 2012 the National Science Foundation (NSF) launched the US Ignite initiative to demonstrate the power of apps for social good.
One outcome of the program is that today you can go to the Apple or Android app store and download Fitnet, a free exercise app supported by NSF that uses the camera on your phone to automatically assess the quality of the exercise and give you a score. Fitnet can also connect you to an online personal fitness trainer who can track this information and suggest routines to try based on an individual's health goal.
This mobile app is one of many fitness apps that are finding mass audiences of individuals eager to use technology to improve their health and well-being.
But what's unique about Fitnet is that, at the same time it is marketing its current app, it is also looking to a future of faster, programmable gigabit networks, according to Kevin Hill, Fitnet's "data czar".
In 2012, Fitnet (originally called KinectHealth 3D) was one of eight applications given the distinction of "App of the Future" in the brainstorming round of the NSF-supported Mozilla Ignite Challenge, and one of 22 apps whose development was funded through the program.
The idea behind Fitnet was to develop a new kind of tele-fitness app that could leverage deeply programmable and low latency fiber-optic networks. The award from Mozilla Ignite Challenge provided seed funding to build a prototype and to demonstrate a proof of concept.
In 2013, Fitnet received an additional NSF award to advance the project in partnership with Virginia Tech. Fitnet has also worked closely with US Ignite, a public-private partnership that promotes the development and deployment of gigabit applications, to identify critical use cases for its cutting edge technologies.
"Validation from the Mozilla Ignite Challenge, US Ignite and National Science Foundation was critical to this idea becoming a reality," said Bob Summers, chief geek and founder of Fitnet. "Our country has a health problem which advanced sensor, data and communication technology can help solve."
Part of the goal of US Ignite is to advance great ideas from the concept and prototype stage into commercial products, and Fitnet is one of the program's early successes. The app has been downloaded 280,000 times and has thousands of core users in all 50 states and over 200 countries.
Fitnet is one of a handful of fitness apps supported by Chromecast (the streaming media player developed by Google) and was among the first to be integrated into Apple's HealthKit, which allows health and fitness apps to work together for holistic monitoring.
Two key features differentiate Fitnet from other exercise apps on the market: the use of a phone's camera and image processing capabilities to interpret motion; and the ability to connect to a trainer who can monitor your progress, see how you're performing and personalize your workout plan as needed.
For now, the image processing is done locally on the phone and consequently, the assessments are not as complex as they could be. Likewise, the interactions with the trainer are asynchronous and do not include a live video feed--a function of the fact that most people don't have unfettered access to gigabit networks and unlimited data plans. But Fitnet is exploring improvements to both aspects.
"It would be a gamble to try to start a business that was focused only on gigabit Internet," Hill said. "But at the same time we know that's coming and that there are these great features that could be realized with high speed networks.
"The cool thing about the US Ignite community is the ability to do a little bit of both: to have our consumer-facing side but still push the envelope and do some really cool research."
Pushing the envelope means imagining new and better ways to automatically assess the quality of exercise using the cloud, and creating a network of remote "wired trainers" who can serve an entire community, adding jobs and helping thousands get healthier. They've begun to put the infrastructure together to test these concepts, using Virginia Tech in Blacksburg, Va., as the testbed.
A virtual lab for next-generation networking
Virginia Tech has a unique confluence of resources that make it a great place to base their pilot, Hill says.
"We've got students who want to do exercise, we've got Virginia Tech Rec Sports [Department of Recreational Sports] that is interested in how technology can impact personal trainers, and we've got great computer resources," he said.
The resources Hill is referring to is the Global Environment for Networking Innovations, or GENI, an experimental, ultra-high-speed, programmable networking testbed, begun in 2007, that allows researchers to test new networking ideas at scale. Virginia Tech hosts one of GENI's 180 or so nodes.
"One of the big limits is just how much processing power we have available on today's mobile devices," said Hill. "We think we can make some significant progress by leveraging the power of a centralized server--that's where the GENI rack will be very helpful. With GENI we have access to the computer resources needed to throw the most sophisticated algorithms available at the problem."
The grant from NSF helped build the computing and networking infrastructure required to enable Fitnet and other apps with real-time analysis and interaction to work, and to run the experiment with students and professional trainers at Virginia Tech.
"Just as astronomers band together and build a telescope that the community uses as a discipline-wide research instrument, GENI is the networking equivalent of a national instrument," said Mark Gardner, network research manager in Information Technology at Virginia Tech, and the lead researcher on the GENI grant.
"As we add more nodes to GENI, the instrument becomes more powerful and more capable, and it's set up so that once you get an account on GENI, you can run experiments on hardware scattered across the world."
While GENI sounds a little like superfast Internet service, it's more than that. With GENI, researchers get a slice of network, storage and computing resources on-demand on which to run experiments or do specialized tasks.
"The GENI infrastructure predated clouds and software defined networking and yet it has features of both," Gardner said.
Unlike most clouds, with GENI, the experimenter can program the way the network functions to make sure that the time lag between a client and trainer is low, for instance, or that computations run concurrently on hundreds of virtual machines during times of high traffic.
"And when the fitness guys aren't using GENI, it may be used for some other experiment," Gardner added.
In fact, more than 3000 researchers have run over 100,000 experiments in the eight years since GENI was established.
Adding live interaction and real-time assessments
The future app the Fitnet team is envisioning will work something like this:
As individuals work out, the output of the exercise analysis algorithm, as well as the video of exercises, will be shipped in real-time to the web dashboard of a trainer, a fitness expert at Virginia Tech Rec Sports.
The trainer will work with many individuals at once, doing exercises particular to their needs and interests.
The automated exercise assessment tools will help the trainer figure out who needs help, who is bored and whose heart rate is increasing.
The trainer will use that information to interact with each of the exercisers, judge the impact of the training and make suggestions for future sessions.
In this model, trainers are able to effectively manage and provide feedback to up to 12 people simultaneously, which could lower the price, make the services more available and also make it extremely personalized.
"In a traditional exercise class, all the people need to be doing the exact same thing," Hill said. "Here we can have each person doing a personalized workout routine and the trainer can still manage and interact with all of them."
GENI allows Fitnet, and other apps, to bring these capabilities to life for students at Virginia Tech and eventually for the nation.
Engaged fitness for at-risk populations
As they were developing the Virginia Tech project, the Fitnet team was working with a different set of users: students in the Healthy Hawks treatment program, a comprehensive family-based behavioral program run by University of Kansas Medical Center.
Healthy Hawks helps children, adolescents and their families overcome issues related to weight. The University of Kansas team was interested in being able to interact with families in a digital fashion over the course of their twelve-week program, recalled Hill.
With support from the Mozilla Foundation's Gigabit Community Fund, also funded by NSF, the pilot program provided iPads, cellular data plans, and personalized children's exercise content from local Kansas City trainers to Kansas City families.
"Using Fitnet allowed us to increase our contact time with participating families very easily," said Ann Davis, a pediatric psychologist at the University of Kansas Medical Center, and director of both the Healthy Hawks program and the Center for Children's Healthy Lifestyles & Nutrition project.
Davis and her team not only encouraged the families to use the exercise app in their homes, but when they came to meet as a group, the doctors had information about the students' exercise at their fingertips and were able to give personalized feedback. The app also allowed the group's dedicated trainer to provide coaching prompts in real-time.
"With those features, we've been able to lower the drop out rate, and increase the students' fitness outcomes," Davis said.
The second group of Healthy Hawks is now going through the program, with encouraging results.
"We're excited to work with the Heathy Hawks to be on the leading edge of the mobile-health revolution," Hill said.
Fitnet is considering other possible partnerships too, including with physical therapists and other health professionals.
"We have this disconnected world right now where you've got step counters, heart rate monitors, exercise apps. You can look at that data, but it's very hard to make decisions based on that data," Hill said. "What we hope to do is be able to centralize, organize and pass that information over to experts."
With early access to emerging networking technologies and pilot projects underway with diverse audiences, the Fitnet team believes it will only be a few years before their gigabit app is ready for market--and before the nation's broadband network catches up to the capabilities of Fitnet.
"Applications are the essential driver of new technologies," said Summers. "And health applications such as Fitnet that leverage gigabit technologies are leading the way to answering the key question: 'Why does gig speed matter?'"
-- Aaron Dubrow, NSF
-- Robert Summers, Fitnet
Investigators
Robert Summers
Mark Gardner
Kevin Hill
Related Institutions/Organizations
GENI
US Ignite
Mozilla Foundation
Virginia Polytechnic Institute and State University
SECRETARY KERRY'S STATEMENT ON U.S. CLIMATE CHANGE SUBMISSION TO UN
FROM: U.S. STATE DEPARTMENT
Submission of the U.S. Intended Nationally Determined Contribution to the United Nations Framework Convention on Climate Change
Press Statement
John Kerry
Secretary of State
Washington, DC
March 31, 2015
Climate change is the defining challenge of our generation, and the United States is committed to playing a leading role in the global effort to address it.
I was in Beijing with President Obama last November when he outlined the United States’ ambitious post-2020 greenhouse gas emissions target alongside Chinese President Xi Jinping. At a joint press conference, our nations each outlined bold climate change and clean energy objectives. For our part, the United States committed to cut our emissions by 26 to 28 percent from 2005 levels by the year 2025 – which would put us on the path to economy-wide reductions of around 80 percent by mid-century.
Today the United States took an important step towards its objective by formally submitting our commitment to the United Nations Framework Convention on Climate Change.
Now it’s time for other nations and come forward with their own targets to help ensure we can reach a global agreement at the UN Climate Conference in Paris later this year.
President Obama has already put in place the most ambitious set of climate change actions that the United States has ever undertaken. We’ve adopted standards to double the fuel efficiency of American cars and trucks, and we also have rules in the works to cut emissions from new and existing power plants. And the target we formalized today will only accelerate these reductions in the future.
We know there is no way the United States--nor any other country--could possibly address climate change alone. This is a global challenge, and an effective solution will require countries around the world to do their part to reduce emissions and bring about a global clean-energy future. That’s the only way we’ll meet this challenge, and it’s the only way we’ll honor our shared responsibility to future generations.
Submission of the U.S. Intended Nationally Determined Contribution to the United Nations Framework Convention on Climate Change
Press Statement
John Kerry
Secretary of State
Washington, DC
March 31, 2015
Climate change is the defining challenge of our generation, and the United States is committed to playing a leading role in the global effort to address it.
I was in Beijing with President Obama last November when he outlined the United States’ ambitious post-2020 greenhouse gas emissions target alongside Chinese President Xi Jinping. At a joint press conference, our nations each outlined bold climate change and clean energy objectives. For our part, the United States committed to cut our emissions by 26 to 28 percent from 2005 levels by the year 2025 – which would put us on the path to economy-wide reductions of around 80 percent by mid-century.
Today the United States took an important step towards its objective by formally submitting our commitment to the United Nations Framework Convention on Climate Change.
Now it’s time for other nations and come forward with their own targets to help ensure we can reach a global agreement at the UN Climate Conference in Paris later this year.
President Obama has already put in place the most ambitious set of climate change actions that the United States has ever undertaken. We’ve adopted standards to double the fuel efficiency of American cars and trucks, and we also have rules in the works to cut emissions from new and existing power plants. And the target we formalized today will only accelerate these reductions in the future.
We know there is no way the United States--nor any other country--could possibly address climate change alone. This is a global challenge, and an effective solution will require countries around the world to do their part to reduce emissions and bring about a global clean-energy future. That’s the only way we’ll meet this challenge, and it’s the only way we’ll honor our shared responsibility to future generations.
ACTING AG DELERY'S REMARKS ON FIRST RESOLUTION IN SWISS BANK PROGRAM
FROM: U.S. JUSTICE DEPARTMENT
Acting Associate Attorney General Stuart F. Delery Delivers Remarks at Pen and Pad Announcing First Resolution in Swiss Bank Program
Washington, DCUnited States ~ Monday, March 30, 2015
Good morning and thank you for joining us. I am here with Caroline Ciraolo, the Acting Assistant Attorney General for the Tax Division, to announce a major step in the Justice Department’s ongoing efforts to prevent offshore tax evasion.
According to a 2008 Senate report, the use of secret offshore accounts to evade U.S. taxes costs the Treasury at least $100 billion each year. In 2013, the Attorney General created the Swiss Bank Program as an innovative way to get the financial institutions that facilitated this massive fraud on the American tax system to come forward with information about their wrongdoing – and to ensure that they are held responsible for it.
To participate in the program, a bank cannot already be under investigation for its tax-related conduct. It must make a complete and accurate disclosure of its cross-border activities, and provide detailed information on an account-by-account basis for every account it has in which a U.S. taxpayer has a direct or indirect interest. It must assist the department in its continuing work to identify and respond to offshore tax evasion, by providing detailed information as to other banks that transferred funds into secret accounts or that accepted funds when the secret accounts were closed, and by cooperating in treaty requests. And it must pay a meaningful penalty for its wrongdoing.
Today, I am proud to announce a resolution between the department and BSI SA that makes clear that the Swiss Bank Program is working. BSI, one of the 10 largest banks in Switzerland, has agreed to pay a $211 million penalty for its actions that helped facilitate tax evasion. It has agreed to a robust statement of facts that describes the sham entities, bogus financial insurance products and other methods of concealing funds that BSI provided for its clients. It has agreed to provide information and cooperate in any related criminal or civil proceedings. And it has agreed to implement controls to stop misconduct involving undeclared U.S. accounts.
Before I turn things over to Caroline, who can provide more detail about this resolution, I want to highlight three key features of the department's efforts in the fight against offshore tax crime.
First, BSI is the first bank to sign a non-prosecution agreement under the Swiss Bank Program, but it will not be the last. The success of this effort to get financial institutions to come in on their own and admit to their wrongdoing is a reflection on our commitment over the past six years to aggressively and systematically attack offshore tax avoidance schemes. Since 2009, the department has charged numerous financial institutions, facilitators and more than 100 offshore bank account holders. Our enforcement efforts have reached far beyond Switzerland, as evidenced by actions involving banking activities in India, Luxembourg, Liechtenstein, Israel and the Caribbean. And as we look forward, the program will continue to assist the department’s efforts to investigate and prosecute U.S. taxpayers who, when faced with the risk of detection, chose to move funds away from banks under investigation to banks that they believed might be better havens for tax secrecy.
Second, as we have seen for some time now, the Swiss Bank Program, along with our aggressive investigations, has changed the way Swiss banks do business. Due to the increased technical sophistication of financial instruments and the widespread use of the Internet, it is now easier than ever to move money around the world. But we have made sure that those trends won’t make it easier for wealthy Americans to avoid paying their fair share of taxes. Since it became public that the department was actively investigating offshore tax evasion in Switzerland, many financial institutions have adopted policies against setting up secret accounts and illegal tax avoidance schemes, and have put in place robust compliance programs to ensure that the policies are followed. This is an example of the department’s actions having a real deterrent effect.
Third, we’re grateful for the positive working relationship we have had with the Swiss government. They have encouraged their banks to participate in the program and accommodated our legitimate needs for information relevant to violations of American law. I thank them and look forward to a continued strong partnership.
With that, I’d like to welcome Caroline Ciraolo, the Acting Assistant Attorney General for the Tax Division. Thank you.
Wednesday, April 1, 2015
U.S. WISHES PRINCESS MAHA CHAKRI SIRINDHORN HAPPY 60TH BIRTHDAY
FROM: U.S. STATE DEPARTMENT
Her Majesty Princess Maha Chakri Sirindhorn's 60th Birthday
Press Statement
John Kerry
Secretary of State
Washington, DC
April 1, 2015
On behalf of President Obama and the people of the United States, it is with great pleasure that I wish Her Majesty Princess Maha Chakri Sirindhorn a joyous 60th birthday.
Her Majesty has admirably devoted her life to the service of the Thai people. She is a generous patron of her country’s poor, supporting development projects in education, health, hygiene, water resources, and agriculture. She is also an accomplished scholar, and for much of her life has been a dedicated teacher of history for her country’s emerging leaders.
We wish Her Majesty all the very best on this auspicious occasion, and reaffirm our friendship and express our support for the Thai people.
Her Majesty Princess Maha Chakri Sirindhorn's 60th Birthday
Press Statement
John Kerry
Secretary of State
Washington, DC
April 1, 2015
On behalf of President Obama and the people of the United States, it is with great pleasure that I wish Her Majesty Princess Maha Chakri Sirindhorn a joyous 60th birthday.
Her Majesty has admirably devoted her life to the service of the Thai people. She is a generous patron of her country’s poor, supporting development projects in education, health, hygiene, water resources, and agriculture. She is also an accomplished scholar, and for much of her life has been a dedicated teacher of history for her country’s emerging leaders.
We wish Her Majesty all the very best on this auspicious occasion, and reaffirm our friendship and express our support for the Thai people.
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