LCD MAKER AND FORMER TOP EXECUTIVES FOUND GUILTY IN $500 MILLION PRICE FIXING SCHEME

The following excerpt is from the Department of Justice website:
TAIWAN-BASED AU OPTRONICS CORPORATION, ITS HOUSTON-BASED
SUBSIDIARY AND FORMER TOP EXECUTIVES CONVICTED FOR ROLE IN
LCD PRICE-FIXING CONSPIRACY
Jury Holds Companies Responsible for at Least $500 Million in Illicit Gains
WASHINGTON — Following an eight-week trial, a federal jury in San Francisco today convicted the largest Taiwan liquid crystal display (LCD) producer, its Houston-based subsidiary and their two former top executives for their participation in a five-year conspiracy to fix the prices of thin-film transistor-liquid crystal display (TFT-LCD) panels sold worldwide, the Department of Justice announced. The jury also found that the ill-gotten gain to the conspirators as a result of the fixed sales in the United States was at least $500 million.

AU Optronics Corporation and its American subsidiary, AU Optronics Corporation America, were found guilty today in the U.S. District Court in San Francisco. The trial began on Jan. 9, 2012. AU Optronics Corporation is based in Hsinchu, Taiwan. AU Optronics Corporation America is headquartered in Houston. The companies and individuals were indicted on June 9, 2010. The indictment charged that AU Optronics Corporation participated in the worldwide price-fixing conspiracy from Sept. 14, 2001, to Dec. 1, 2006, and that its subsidiary participated at various times during the conspiracy.

Former AU Optronics Corporation president Hsuan Bin Chen and former AU Optronics Corporation executive vice president Hui Hsiung were also found guilty. The department said that both executives participated in the conspiracy from Oct. 19, 2001, to Dec.1, 2006.

In addition to today’s convictions, seven companies have pleaded guilty to date to charges arising out of the department’s ongoing investigation and have been sentenced to pay criminal fines totaling more than $890 million. In addition to the individuals convicted today, 17 executives have been charged. Ten of the executives have pleaded guilty and have been sentenced to serve a combined total of 2,681 days in prison.

“The jury finding $500 million in ill-gotten gains by members of the cartel demonstrates the harmful effect of this price-fixing conspiracy on American businesses and consumers,” said Acting Assistant Attorney General Sharis A. Pozen in charge of the Department of Justice’s Antitrust Division. “The jury’s decision to hold not only the companies but also their top executives accountable for their anticompetitive actions should send a strong deterrent message to board rooms around the world.”

TFT-LCD panels are used in computer monitors and notebooks, televisions, mobile phones and other electronic devices. By the end of the conspiracy period, the worldwide market for TFT-LCD panels was valued at $70 billion annually. Companies directly affected by the LCD price-fixing conspiracy include some of the largest computer manufacturers in the world, including Apple, Dell and Hewlett Packard.

At trial, the department said that the convicted companies and former executives fixed the prices of LCD panels sold into the United States. The prices were fixed during monthly meetings with their competitors secretly held in hotel conference rooms, karaoke bars and tea rooms around Taiwan. The indictment alleged that the conspiracy lasted for more than five years before it was detected.

Also today, the jury found two AU Optronics Corporation employees not guilty--Lai-Juh Chen, former director of the Desktop Display Business Group, and Tsannrong Lee, former senior manager of the Notebooks Business Group. A mistrial was declared against Hsiu Lung Leung, former AU Optronics Corporation senior manager of Desktop Display Business Group.

The maximum penalty for a Sherman Act violation for an individual is 10 years in prison and a $1 million fine. Since the jury found that the gain derived from the conspiracy was at least $500 million, the maximum fine for the corporations is $1 billion.

Today’s charges are the result of a joint investigation by the Department of Justice Antitrust Division’s San Francisco Field Office and the FBI in San Francisco.

LEBANON'S CEDAR REVOLUTION ANNIVERSARY

The following excerpt is from  Department of State e-mail:
Press Statement Victoria Nuland
Department Spokesperson, Office of the Spokesperson Washington, DC
March 14, 2012

Today marks the seventh anniversary of Lebanon’s Cedar Revolution, when the Lebanese people took to the streets en masse in a peaceful demonstration to demand a sovereign and democratic country, free from foreign interference, and to call for the truth behind the assassination of Prime Minister Rafik Hariri. In 2005, long before the inspiring and dramatic events of the past year, the people of Lebanon shattered the myth that the only way to produce change in the region is through violence and conflict. The United States salutes the brave and proud Lebanese who peacefully took to the streets in 2005 to demand a better future for themselves and their homeland.

Without a doubt, challenges remain for the people of Lebanon. Foreign-backed groups seek to turn back the clock. The brutal violence unleashed by the Assad regime against its own people risks destabilizing the region, including Lebanon. We support Lebanon’s political leaders’ efforts to maintain security and to prepare for the day when a democratic government in Damascus will usher in a new era in Lebanese-Syrian relations. We will continue to stand with and support the people of Lebanon and all those across the region as they work for democratic governments that will fulfill their aspirations and respect their rights.

FLORIDA RESIDENT PLEADS GUILTY IN ROLE TO DEFRAUD MEDICARE OF $200 MILLION

The following excerpt is from the Department of Justice website:
Tuesday, March 13, 2012
Miami-Area Resident Pleads Guilty to Participating in $200 Million Medicare Fraud Scheme
WASHINGTON – A Miami-area resident pleaded guilty today for his role in a fraud scheme that resulted in the submission of more than $200 million in fraudulent claims to Medicare, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).

Mathis Moore, 56, pleaded guilty before U.S. Magistrate Judge Barry L. Garber in Miami to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and to pay and receive illegal health care kickbacks.  Moore was charged in an indictment unsealed on Feb. 15, 2011, in the Southern District of Florida.

Moore admitted to participating in a fraud scheme that was orchestrated by the owners and operators of American Therapeutic Corporation (ATC); its management company, Medlink Professional Management Group Inc.; and the American Sleep Institute (ASI).  ATC, Medlink and ASI were Florida corporations headquartered in Miami.  ATC operated purported partial hospitalization programs (PHPs), a form of intensive treatment for severe mental illness, in seven different locations throughout South Florida and Orlando.  ASI purported to provide diagnostic sleep disorder testing.
 
According to court filings, ATC’s owners and operators paid kickbacks to owners and operators of assisted living facilities and halfway houses and to patient brokers in exchange for delivering ineligible patients to ATC and ASI.  In some cases, the patients received a portion of those kickbacks.  Throughout the course of the ATC and ASI conspiracy, millions of dollars in kickbacks were paid in exchange for Medicare beneficiaries who did not qualify for PHP services to attend treatment programs that were not legitimate PHPs so that ATC and ASI could bill Medicare for the medically unnecessary services.  According to court filings, to obtain the cash required to support the kickbacks, the co-conspirators laundered millions of dollars of payments from Medicare.

Moore admitted to serving as a patient broker who provided patients for ATC and ASI in exchange for kickbacks in the form of checks and cash.  The amount of the kickback was based on the number of days each patient spent at ATC.  

According to his plea agreement, Moore’s participation in the ATC fraud resulted in $17 million in fraudulent billings to the Medicare program.
Sentencing for Moore is scheduled for May 29, 2012, at 9:30 a.m.  He faces a maximum penalty of 15 years in prison and a $250,000 fine.

ATC, Medlink, and various owners, managers, doctors, therapists, patient brokers and marketers of ATC, Medlink and ASI, were charged with various health care fraud, kickback, money laundering and other offenses in two indictments unsealed on Feb. 15, 2011.  ATC, Medlink and 10 of the individual defendants have pleaded guilty or have been convicted at trial. Other defendants are scheduled for trial April 9, 2012, before U.S. District Judge Patricia A. Seitz.  A defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.

Today’s guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; John V. Gillies, Special Agent-in-Charge of the FBI’s Miami field office; and Special Agent-in-Charge Christopher B. Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.

The criminal case is being prosecuted by Trial Attorneys Jennifer L. Saulino, Steven Kim and Robert Zink of the Criminal Division’s Fraud Section.  A related civil action is being handled by Vanessa I. Reed and Carolyn B. Tapie of the Civil Division and Assistant U.S. Attorney Ted L. Radway of the Southern District of Florida.  The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.

Since its inception in March 2007, the Medicare Fraud Strike Force operations in nine locations have charged more than 1,190 defendants that collectively have billed the Medicare program for more than $3.6 billion.  In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

FBI AND JUSTICE DEPARTMENT CELEBRATE SUNSHINE WEEK

The following excerpt is from the Department of Justice website:
Putting the FBI at Your Fingertips
March 13th, 2012
Posted by Tracy Russo
The following post appears courtesy of the FBI
This week the FBI and the Department of Justice are celebrating Sunshine Week—a national effort promoting open government and freedom of information. The FBI has introduced new tools and initiatives to help make FBI information and records more accessible to the public and easier than ever to use.
In October 2010, in response to citizen feedback, the FBI launched a major overhaul of its website FBI.gov.  The new FBI.gov features a user-friendly design and simple navigation. New pages and features have also been added.

Many pages can now be converted into RSS news feeds so you can easily keep track of content that interests you. A new search function in the popular Wanted by the FBIsection makes it easier than ever to help find fugitives and missing persons. Another new tool, an online version of the National Stolen Art File can help determine if the artwork you’re interested in buying might be stolen.
 Other new and ongoing initiatives include:

 The Vault – A revamped electronic reading room, the Vault makes records past and present searchable by keyword and topic. Records are also easier to read through a convenient web document viewer.
Crime Statistics – Run searches of Uniform Crime Reports more easily, including through a new online tool that builds usable sets of crime data going back to 1960.

Child ID App – Download the FBI’s first mobile application to keep photos and other vital information about your child right at hand in the unlikely event he or she goes missing.
Social Media—Visit the FBI on Facebook, YouTube, and Twitter to join the conversation and get its breaking news and other content.

Podcasts – Listen to and download the Bureau’s four regular shows on iTunes, along with new video versions of “Wanted by the FBI.”
FBI in español – The first web portal for Spanish-speakers which provides translations of key webpages and stories targeted to Hispanic audiences.

Widgets – Incorporate FBI content into your website or blog.
E-Mail and Text Alerts – Join the 200,000 subscribers who have FBI news and information across 250+ categories sent straight to their inboxes or wireless devices. Text message alerts are also available.
The public has responded to these initiatives by coming to the FBI website in record numbers in recent years, with more than 50 million visits in 2011 alone. Stay tuned for more new tools and features in the months to come.

SYSTEM KOI-961 IS PACKED WITH EXO-PLANETS

The photo and excerpt are from the NASA website:
This artist's concept depicts a planetary system so compact that it's more like Jupiter and its moons than a star and its planets. Astronomers using data from NASA's Kepler mission and ground-based telescopes recently confirmed that the system, called KOI-961, hosts the three smallest exoplanets currently known to orbit a star other than our sun. An exoplanet is a planet that resides outside of our solar system. The star, which is located about 130 light-years away in the Cygnus constellation, is a red dwarf that is one-sixth the size of the sun, or just 70 percent bigger than Jupiter. The star is also cooler than our sun, and gives off more red light than yellow. The smallest of the three planets, called KOI-961.03, is actually located the farthest from the star, and is pictured in the foreground. This planet is about the size of Mars, with a radius of 0.57 times that of Earth. The next planet to the upper right is KOI-961.01, which is 0.78 times the radius of Earth. The planet closest to the star is KOI-961.02, with a radius 0.73 times the Earth's. All three planets whip around the star in less than two days, with the closest planet taking less than half a day. Their close proximity to the star also means they are scorching hot, with temperatures ranging from 350 to 836 degrees Fahrenheit (176 to 447 degrees Celsius). The star's habitable zone, or the region where liquid water could exist, is located far beyond the planets. The ground-based observations contributing to these discoveries were made with the Palomar Observatory, near San Diego, Calif., and the W.M. Keck Observatory atop Mauna Kea in Hawaii. Image Credit: NASA/JPL-Caltech

FORMER HAITIAN OFFICIAL CONVICTED IN MIAMI FOR BRIBE LAUNDERING SCHEME

The following excerpt is from a Department of Justice website:
Tuesday, March 13, 2012
WASHINGTON – Jean Rene Duperval, a former director of international relations for Telecommunications D’Haiti S.A.M. (Haiti Teleco), a Haitian state-owned telecommunications company, has been convicted by a federal jury on all counts for his role in a scheme to launder bribes paid to him by two Miami-based telecommunications companies.  The jury reached its verdict late yesterday after less than three hours of deliberations, following a week-long trial.

The conviction was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida; and Special Agent in Charge Jose A. Gonzalez of Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office.

“Mr. Duperval was convicted by a Miami jury of laundering $500,000 paid to him as part of an elaborate bribery scheme,” said Assistant Attorney General Breuer.  “As the director of international relations for Haiti’s state-owned telecommunications company, Duperval doled out business in exchange for bribes and then used South Florida shell companies to conceal his crimes.  This Justice Department is committed to stamping out corruption wherever we find it.”

“To conceal the payment and receipt of bribes, Duperval participated in a money laundering scheme to funnel about half a million dollars to two shell companies under his control,” said U.S. Attorney Ferrer.  “This verdict confirms that American taxpayers will not tolerate bribery, either at home or abroad,  to obtain unfair business advantages.”

“Today’s announcement sends a strong message to those hiding monies in bogus business entities: no matter how elaborate or complex the scheme, you will get caught,” said IRS Special Agent in Charge Gonzalez.  “IRS criminal investigators will continue to aggressively investigate bribery schemes to ensure that honest businesses have the benefit of a competitive market.”

Duperval, 45, of Miramar, Fla., was convicted of two counts of conspiracy to commit money laundering and 19 counts of money laundering.  According to the charges, the funds that were laundered were the proceeds of violations of the Foreign Corrupt Practices Act (FCPA), Haitian bribery law and the wire fraud statute.

Duperval was the director of international relations for Haiti Teleco, the sole provider of land line telephone service in Haiti.  According to the evidence presented at trial, two Miami-based telecommunications companies had a series of contracts with Haiti Teleco that allowed the companies’ customers to place telephone calls to Haiti.

Duperval was convicted for participating in a scheme to commit money laundering from 2003 to 2006, during which time the telecommunications companies collectively paid $500,000 to two shell companies to funnel the bribes to Duperval.  
 
The purpose of these bribes, according to the evidence presented at trial, was to obtain various business advantages from Duperval, including the issuance of preferred telecommunications rates, a continued telecommunications connection with Haiti and the continuation of a particularly favorable contract with Haiti Teleco.  To conceal the bribe payments, Duperval instructed the companies to forward the payments to the shell companies.  To support these payments, the companies and their executives created false documents claiming that the payments were for “consulting services” or for “international minutes from USA to Haiti.”  No actual services were performed.  The funds were then disbursed from the shell companies for the benefit of Duperval and his family.  To conceal the nature of these funds, Duperval falsely characterized these payments as “commissions” and “payroll.”

Duperval was remanded to the custody of the U.S. Marshals.  Sentencing is scheduled for May 21, 2012.  The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.  The money laundering counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.  The indictment also seeks forfeiture, which will be determined by the court at a later date.

Duperval was the eighth defendant involved in the corruption scheme to be convicted, which includes the following individuals:

On April 27, 2009, Antonio Perez, a former controller at one of the Miami-based telecommunications companies, pleaded guilty to one count of conspiracy to violate the FCPA and money laundering.  On Jan. 12, 2010, he was sentenced to 24 months in prison, which he is currently serving.

On May 15, 2009, Juan Diaz, the president of J.D. Locator Services, pleaded guilty to one count of conspiracy to violate the FCPA and money laundering.   He admitted to receiving more than $1 million in bribe money from telecommunications companies.  On July 30, 2010, he was sentenced to 57 months in prison, which he is currently serving.

On Feb. 19, 2010, Jean Fourcand, the president and director of Fourcand Enterprises Inc., pleaded guilty to one count of money laundering for receiving and transmitting bribe monies in the scheme.  On May 5, 2010, he was sentenced to six months in prison.

On March 12, 2010, Robert Antoine, a former director of international affairs for Haiti Teleco, pleaded guilty to one count of conspiracy to commit money laundering.  He admitted to receiving more than $1 million in bribes from Miami-based telecommunications companies.  On June 2, 2010, he was sentenced to 48 months in prison, which he is currently serving.

On Aug. 4, 2011, Joel Esquenazi and Carlos Rodriguez, who were the former president and vice-president, respectively, of one of the telecommunications companies, were convicted by a federal jury of one count of conspiracy to violate the FCPA and wire fraud, seven counts of FCPA violations, one count of money laundering conspiracy and 12 counts of money laundering.  On Oct. 25, 2011, Esquenazi was sentenced to 15 years in prison, the longest sentence ever imposed in a case involving the FCPA.  On the same day, Rodriguez was sentenced to 84 months in prison for his role in the bribery scheme.  Both are currently serving their sentences.

In a second superseding indictment, Washington Vasconez Cruz, Amadeus Richers and Cecilia Zurita were charged in a related scheme to commit foreign bribery and money laundering from December 2001 through January 2006.  The defendants are fugitives.  An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

The Department of Justice is grateful to the government of Haiti for continuing to provide substantial assistance in gathering evidence during this investigation.   In particular, Haiti’s financial intelligence unit, the Unité Centrale de Renseignements Financiers (UCREF), the Bureau des Affaires Financières et Economiques (BAFE), which is a specialized component of the Haitian National Police, and the Ministry of Justice and Public Security provided significant cooperation and coordination in this ongoing investigation.

NEW YORK DISASTER AID FOR TROPICAL STORM LEE AND HURRICANE IRENE TOPS $1.3 BILLION

The following excerpt is from the U.S. FEMA website:

ALBANY, N.Y. -- Federal disaster assistance to New York communities recovering from floods caused by Hurricane Irene and Tropical Storm Lee is projected to top $1.3 billion, according to Federal Emergency Management Agency (FEMA) and New York State officials.

“These were huge storms which caused unprecedented damage to communities across the state,” said FEMA’s Federal Coordinating Officer Philip E. Parr. “FEMA continues to work aggressively to help these communities rebuild.”

Soon after Hurricane Irene hit, Public Assistance (PA) was federally approved for 31 counties from Long Island to the Canadian border. Tropical Storm Lee prompted a declaration that funded PA for 14 counties, eight of which had also been declared for Irene. To date, FEMA has reimbursed $32.2 million in PA funding for repairing roads, bridges, utilities, schools and other public facilities across the state. There are approximately 13,000 such repair projects from 1,974 eligible applicants in the 37 affected counties, and FEMA anticipates that its share of the cost of these projects will eventually exceed $1.3 billion.

During the height of the response effort last year, FEMA had 895 employees on the two disasters. At present, 485 FEMA employees are at work as recovery efforts continue. More than a fifth of the FEMA employees working on the two disasters today are local residents hired to help support the agency’s mission.

Helping the hardest-hit areas of the state recover continues to be a priority for FEMA. With the support of four other federal agencies, FEMA has three Long-Term Community Recovery teams engaged in 12 communities in Broome, Delaware, Greene, Schenectady, Schoharie and Tioga counties. The teams are focused on identifying any unmet needs in the wake of the storms and are assisting with developing long-term community recovery plans, strategies or technical assistance issues.

FEMA has also provided temporary housing units to 111 families and individuals who had no other housing alternatives while awaiting the repair or replacement of their storm-damaged residences.

Soon after Irene struck last year, FEMA and its state partners established a Joint Field Office in Albany. Temporary FEMA/state facilities were opened in Kirkwood, Lake Placid and Hewlett, N.Y.

Disaster assistance by the numbers

• To date, FEMA has approved a total of 33,073 registrations for Individual Assistance under the Individuals and Households Program, providing more than $155 million for housing grants, rental assistance, home repair costs and other disaster-related needs. Under Hurricane Irene, 28 counties were declared eligible for Individual Assistance; for Lee, 13 counties were receiving that assistance.
• Following Irene and Lee there were 743 claims for Disaster Unemployment Assistance, totaling $1,829,846.
• The Small Business Administration approved 2,501 applications for low-interest disaster loans totaling $136,537,300.
• Seventy-four temporary Disaster Recovery Centers were established at locations around the state to serve the needs of survivors.
• FEMA has approved more than $7.1 million in grants to provide crisis counseling to New York residents traumatized by the disasters.
• To facilitate its New York operations on both disasters, FEMA has signed 126 contracts worth approximately $12 million with nearly 100 suppliers and vendors, the great majority of which are local businesses.
• FEMA has provided $9 million so far in grant money to New York State to fund the Disaster Case Management mission to help survivors of Irene and Lee address their disaster-caused unmet needs.
• To date, 14,089 claims worth $417,002,602 have been paid under the National Flood Insurance Program for both disasters.

FEMA's mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.

SEC FILES CIVIL ACTION AGAINST SENIOR MANAGEMENT AT THORNBURG MORTGAGE, INC.

The following excerpt is from the SEC website: 
March 13, 2012
SEC Files Civil Injunctive Action Against Senior Management of Thornburg Mortgage, Inc. for Alleged Fraudulent Overstatement of Thornburg’s Income
On March 13, 2012, the Securities and Exchange Commission filed securities fraud charges in the United States District Court for the District of New Mexico against Larry Goldstone, the former chief executive officer and president, Clarence Simmons, the former chief financial officer and senior executive vice-president, and Jane Starrett, the former chief accounting officer of Thornburg Mortgage, Inc. (“Thornburg”), currently TMST, Inc., for allegedly materially misrepresenting the financial condition and liquidity of Thornburg, formerly the country’s second largest independent mortgage company. Goldstone, Simmons, and Starrett reside in Santa Fe, New Mexico.

The Complaint alleges that Thornburg, through Goldstone, Simmons, and Starrett, fraudulently overstated its quarterly income by more than $420 million in its 2007 annual report filed with the Commission. As a result, the Complaint alleges that Thornburg fraudulently reported a profit rather than a loss for the quarter. According to the Complaint, in the two weeks leading to the filing of its annual report, Thornburg received more than $300 million in margin calls from its lenders that severely drained its liquidity. The Complaint further alleges that, unable to meet its margin calls on a timely basis, Thornburg violated three of its lending agreements, and received a reservation of rights letter from one lender in which the lender reserved its right to declare Thornburg in default at any time. Accordingly, the Complaint alleges that in the days before Thornburg filed its annual report, the collateral it used for its lending agreements, adjustable rate mortgage (“ARM”) securities, was subject to being seized and sold by its lenders. According to the Complaint, given the circumstances of Thornburg’s liquidity crisis, circumstances that were misrepresented to, and concealed from, the company’s auditor, Goldstone, Simmons, and Starrett each knew, or was reckless in not knowing, that Thornburg did not have the intent or ability to hold its ARM securities until maturity or until their value recovered in the market. The Complaint concludes that the individual defendants also knew, or were reckless in not knowing, that this meant Thornburg was required to recognize on its income statement approximately $428 million of losses associated with the company’s ARM securities, and that the proper accounting treatment for these securities would have resulted in Thornburg reporting a loss rather than a profit for the quarter.

The Complaint claims that, based on this conduct, the defendants violated or aided and abetted the violation of, or in the case of Goldstone and Simmons are liable as control persons under Section 20(a) of the Securities Exchange Act of 1934 (“Exchange Act”) for Thornburg’s violation of, Section 17(a) of the Securities Act of 1933, and Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B), and 13(b)(5) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13b2-1, and 13b2-2 thereunder. The Complaint also claims that Goldstone and Simmons violated Rule 13a-14 of the Exchange Act. As part of this action, the Commission seeks against each of the defendants an injunction against future violations of the provisions set forth above, officer and director bars, and third tier civil money penalties.

U.S. SOUTHERN COMMAND FOCUSES ON TRANSNATIONAL ORGANIZED CRIME

The following excerpt is from the Department of Defense American Forces Press Service:

Southern Command Targets Transnational Organized Crime

By Jim Garamone
American Forces Press Service

WASHINGTON, March 13, 2012 - U.S. Southern Command is focused on stopping transnational organized crime and building partners' capabilities, Air Force Gen. Douglas Fraser said here today.

Speaking before the Senate Armed Services Committee, the Southern Command commander detailed the challenges facing Southcom, which has responsibility for U.S. military relationships in Central and South America and the Caribbean.

Working with other U.S. federal agencies, the command has focused on a concern that permeates the region: transnational organized crime, which the general said "is seriously impacting citizen safety in Central America, especially Guatemala, El Salvador and Honduras."

Transnational crime rings "threaten to overwhelm law enforcement capacities, and in an effort to reduce violence and halt the spread of these criminal groups, these countries have deployed their militaries in support of law enforcement organizations," he said.

Disrupting these narcosyndicates is part of the overall strategy in the region, Fraser said. In the past year, the command developed and implemented Operation Martillo, a plan to disrupt illicit maritime traffic in the departure zones of South America and the arrival zones in Central America, the general said.

Southern Command personnel have helped train partner nations' military members to support local police, and provides "network analysis of transnational criminal organizations and their operations," Fraser said.

The command works in the Caribbean under the Caribbean Basin Security Initiative, which is developing the regional maritime interdiction plan to enhance the capabilities of Caribbean partners, Fraser said.

"In South America, we will sustain our support to Colombia and to Peru as they fight narcoterrorist groups in these countries," he said.

The command is working to build enduring international and interagency partnerships by promoting cooperation and information-sharing, Fraser said.

Personnel also are working through traditional military channels to strengthen disaster relief capabilities," he said. "We remain ready to respond should our assistance be requested," he said.

The command has been busy. In 2011, it conducted hundreds of training and educational events, 12 major multinational exercises with partner nations in the hemisphere and 56 medical readiness training exercises in 13 countries.

"This sustained engagement is yielding important benefits," Fraser said. "Last year, for the first time, Colombia assumed the land component commander role during Panamax, our annual multinational exercise focused on supporting the defense of the Panama Canal."

This year, Brazil will command the maritime component of the exercise, he said.

Threats are not limited to the homegrown varieties. Iran is very engaged in Latin America, the general said. "They have doubled their number of embassies in the last seven years," he said. "They now have 11 embassies. They have 40 cultural centers in 17 different countries throughout the region."

Southern Command officials see the Iranian activity as trying to build cultural awareness and awareness for Iran to circumvent international sanctions against Iran. "They are seeing an opportunity with some of the anti-U.S.-focused countries within the region as a method on being able to do that," he said.

The concern lies with Iran's connections with Hezbollah and Hamas terrorist groups, both of which have organizations in Latin America, Fraser said. "Those organizations are primarily focused on financial support to organizations back in the Middle East, but they are involved in illicit activity," he said.

GENDER VIOLENCE AND HIV

The following excerpt is from a U.S. State Department e-mail:
New Initiative Responds to Gender-Based Violence as Part of Global HIV Response
Media Note Office of the Spokesperson Washington, DC
March 14, 2012
On March 14 at the White House, Ambassador-at-Large for Global Women’s Issues Melanne Verveer and U.S. Global AIDS Coordinator Ambassador Eric Goosby announced a joint initiative to provide $4.65 million in small grants to grassroots organizations to address gender-based violence (GBV) issues. With funding from the President’s Emergency Plan for AIDS Relief (PEPFAR), the initiative supports programs that prevent and respond to GBV, with a link to HIV prevention, treatment and care. Grants of up to $100,000 for programs that leverage existing HIV/AIDS platforms will be awarded to organizations working in one of more than 80 PEPFAR countries. U.S. Embassies and Consulates will oversee and support these grants.

Addressing gender inequities and norms is essential to reducing the vulnerability of women and girls to HIV infection. One in three women worldwide will experience GBV in their lifetime, and in some countries, 70 percent of female populations are affected. Gender-based violence increases women and girls’ overall vulnerability to HIV, with country studies indicating an up to three-fold risk of HIV infection among women who experience violence. GBV also fosters the spread of HIV by limiting women’s ability to negotiate safe sexual practices, disclose HIV status and access services, due to fear of further violence. While women and girls are the most affected by GBV, men and boys are also victims of these abuses.

The U.S. Government, including the Secretary’s Office of Global Women’s Issues (S/GWI) at the Department of State and the interagency PEPFAR initiative, is committed to advancing women’s health and rights, a core principle of the U.S. Global Health Initiative. Through the GBV small grants program, grassroots organizations will receive support to prevent and respond to GBV, helping to address the structural drivers of both violence and HIV. In addition, the grants will strengthen the capacity of such organizations to access other sources of funding. This will contribute to a longer-term effort to create an AIDS-free generation and societies free of violence, where women and men can realize their full potential. The State Department and sister agencies across the U.S. Government stand with partners across the globe in expressing American values by responding to the global GBV pandemic.

SECRETARY OF DEFENSE SAYS PARTNERSHIP TESTED

T

he following excerpt is from a Department of Defense American Forces Press Service e-mail:

Panetta: Partnership Tested, Proven After Horrific Events

By Karen Parrish
American Forces Press Service

WASHINGTON, March 14, 2012 - Coalition forces are achieving their mission of helping Afghanistan transform its future, Defense Secretary Leon E. Panetta told a multinational military throng here today.

Coalition forces in Regional Command Southwest include 11 nations' troops, and Panetta's audience included U.S. Marines and soldiers, as well as dozens of British, Jordanian, Afghan and other nations' service members.

Panetta addressed the hundreds of troops inside an echoing space created by what appeared to be an acre of vinyl draped over tubular steel framing, floored with concrete and filled with metal folding chairs.

"I can't tell you how proud I am of the partnership that we have," Panetta told the troops.

The 50 nations that make up the NATO-led International Security Assistance Force represent "probably the broadest and deepest military coalition we've seen in a long, long time," he said.

Those countries' military members are working with Afghan security forces "... trying to bring peace, justice, and ... security to Afghanistan," the secretary added.

They are working and fighting for a common cause, he said, "to ensure that Afghanistan never again becomes a safe haven" from which terrorists can launch attacks against other nations.

In working "shoulder-to-shoulder" to help build an Afghanistan that can secure and govern itself, the secretary told the audience, they are helping to realize a dream that is often labeled American, but is common throughout the world -- a better life for the next generation.

"Achieving that dream depends on men and women who are willing to make the sacrifices, to step forward, to work with fellow citizens, and to forge a better, more secure life for our children," he said.

Coalition and Afghan forces alike have been tested time and again over a decade of war, and particularly over the last few weeks, he said.

"We've had protests and violence. We've had the burning of the Quran. ... We've had ISAF forces that have been ... murdered," Panetta said. "And last weekend we were shocked to learn about the tragic event ... in nearby Kandahar province that resulted in the death of so many Afghan civilians."

Those incidents are deeply troubling, but are not reflective of overall Afghan-coalition cooperation, he reiterated.

Enemy-initiated violence is trending down, Panetta said, and 2011 was a transitional year for the Afghanistan mission.

"All of you have the opportunity to make 2012 a decisive year in this campaign," he said.

Panetta touched down at Bastion Airfield here today for a two-day country visit that will take him from visiting troops and regional Afghan leaders in southern Afghanistan to high-level meetings in Kabul.

There, the secretary has meetings scheduled with Afghan President Hamid Karzai, Defense Minister Abdul Rahim Wardak and Interior Minister Gen. Bismillah Khan Mohammadi.

In a break with past practice, none of the forces -- including U.S. troops -- brought their weapons into the area where the secretary spoke. During past visits, Afghan forces would likely have been the only unarmed soldiers present, officials acknowledged.

U.S. officials said Marine Corps Maj. Gen. Charles M. Gurganus, who two days ago took command of Regional Command Southwest, made the decision yesterday that none of the troops meeting the secretary would carry weapons, so all service members present would be on an equal footing.

A senior defense official traveling with the secretary said yesterday that Panetta's Afghanistan visit was planned long before a U.S. service member allegedly killed a reported 16 Afghan civilians March 11 near Kandahar. The secretary's planned itinerary has not changed since that "isolated criminal attack," the official added.

Panetta told reporters traveling with him that along with thanking coalition forces for their service, he will focus during this visit on strategic issues -- the overall campaign against the Taliban and al-Qaida, the transition to Afghan security lead by the end of 2014, and the enduring partnership between the United States and Afghanistan.

Panetta left Kyrgyzstan's capital city of Bishkek this morning and visited U.S. service members at the Manas transit center before flying here. All U.S. service members coming into or leaving Afghanistan pass through Manas en route.

SOLDIER ACCUSED OF CIVILIAN SHOOTING AIRLIFTED OUT OF AFGHANISTAN

The following excerpt is from the Department of Defense American Forces Press Service:

Military Flies Shooting Suspect Out of Afghanistan

By Lisa Daniel
American Forces Press Service

WASHINGTON, March 14, 2012 - The military today airlifted out of Afghanistan the U.S. soldier accused of going on a shooting rampage targeting Afghan civilians earlier this week, a Pentagon spokesman said.

Navy Capt. John Kirby, in an interview with Fox News at the Pentagon, confirmed that the soldier was flown out of Afghanistan. He declined to say where he is being held.

The soldier, whom the military has yet to identify, was taken out of Afghanistan because there was no appropriate place to detain him there, Kirby said.

"This is in accordance with our own regulations and policies to have him in a proper detention facility and to continue to be interviewed and cared for appropriately," he said. "So we've moved him to an appropriate detention facility outside the country."

Kirby agreed with a reporter's assessment that Afghans are "understandably livid" about the soldier being taken out of Afghanistan, but he said U.S. military officials have been in close contact with Afghan officials.

"We have kept Afghan authorities, all the way up to President [Hamid] Karzai, informed of this transfer," he said. "They know we're doing this, and they know why we're doing this."

Army officials have identified the suspect only as a noncommissioned officer. He is accused of leaving his base in Kandahar province in the middle of the night March 11 and shooting Afghans in their homes nearby. Afghan officials say 17 were killed.

It is Defense Department policy to release a suspect's name after charges have been levied against him. That has not yet occurred, Kirby said.

Because of the "heinous nature of the crimes, and the scope and magnitude of the devastation," the captain said, military officials don't want to rush investigators.

Defense Secretary Leon E. Panetta has told Karzai the investigation will be done rapidly, Kirby said. "But more important," he added, "it will be done thoroughly."