SEC CHARGES FORMER EXECUTIVE AT CKE RESTAURANTS WITH INSIDER TRADING

The following excerpt is from the SEC website:
March 16, 2012
On March 15, 2012, the Securities and Exchange Commission charged a former executive at the parent company of Carl’s Jr. and Hardee’s fast food restaurants with insider trading in the company’s securities based on confidential information he learned on the job.

The SEC alleges that Noah J. Griggs, Jr., who was executive vice president of training and leadership development at CKE Restaurants Inc., made two purchases totaling 50,000 shares of CKE stock after attending an executive meeting during which he learned that the company was in discussions with private equity investors about a possible acquisition. Griggs made a potential profit of $145,430 after the stock price soared when the merger was announced publicly. Griggs has agreed to pay $268,000 to settle the SEC’s charges without admitting or denying the allegations.

According to the SEC’s complaint filed in U.S. District Court for the Central District of California, Griggs attended a monthly strategic planning meeting on Friday, Nov. 20, 2009. CKE’s CEO cautioned the executives that information about the potential merger was confidential and nonpublic, and that no one should act on it. Nonetheless, on Monday morning November 23, Griggs bought 30,000 shares of CKE. He bought an additional 20,000 shares on Jan. 8, 2010. CKE and Thomas H. Lee Partners (THL) publicly announced a definitive merger on February 26 in which THL would acquire CKE. On news of the announcement, the value of Griggs’s shares increased significantly as CKE stock closed at $11.37 per share, up more than 27 percent from the previous day’s closing price of $8.91.

CKE Restaurants, Inc. is based in Carpinteria, California, and is the parent company of Carl Karcher Enterprises, which owns the fast-food restaurant brands of Carl’s Jr. and Hardee’s. Its common stock was listed on the NYSE under the ticker symbol CKR until July 13, 2010, when the NYSE suspended trading of the stock following the company’s acquisition by Columbia Lake Acquisition Holdings, Inc.

The SEC’s complaint charges Griggs with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(a) and (c). Griggs agreed to pay disgorgement of $145,430, prejudgment interest of $11,035.74, and a penalty of $111,730. He also agreed to the entry of a final judgment permanently enjoining him from violating Section 10(b) of the Exchange Act and Rule 10b-5 and barring him from serving as an officer or director of a public company for 10 years. The settlement is subject to court approval.

The SEC’s investigation was conducted by Los Angeles Regional Office enforcement staff Lorraine Echavarria and Carol Lally. The SEC acknowledges the assistance of NYSE Regulation, Inc. in this matter.

AIR FORCE SECRETARY DONLEY SAYS AIR FORCE WILL NOT TOLERATE WRONGDOING

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

Donley: Air Force Will Not Tolerate Wrongdoing

By Cheryl Pellerin
American Forces Press Service

WASHINGTON, March 16, 2012 - The Air Force will not tolerate wrongdoing, Air Force Secretary Michael B. Donley said in a statement today in response to a report by the independent Office of Special Counsel.

The investigative report, released today but presented to the Air Force in late January, found that Air Force officials at Dover Port Mortuary, Del., retaliated against mortuary employees who disclosed wrongdoing there.

"The Air Force will not tolerate wrongdoing, especially prohibited personnel practices, by employees," Donley said. "We continue to work closely with the Office of Special Counsel in addressing this issue."

Incidents of mishandling remains at Dover were reported by staff members and investigated in 2010 by the Army Inspector General, the Air Force Inspector General and the Air Force Office of Special Investigations.

At the time, the Air Force investigation found that some remains were not handled according to official procedures, and the mortuary leadership implemented corrective actions, including improvements in accountability, processes and procedures, record keeping and human and labor relations.

As a result of the investigation, in 2010 the mortuary commander received a letter of reprimand and two civilian employees were demoted and shifted to nonsupervisory jobs.

At a Nov. 10 news conference, Defense Secretary Leon E. Panetta noted concerns about this disciplinary action and other matters that were raised in a report by the Office of Special Counsel.

In light of the OSC report, Panetta said, he wanted to make sure the 2010 disciplinary actions were appropriate and that no management reprisals were taken at Dover against four employees who first reported the mishandling of remains.

In today's statement, Donley said the Air Force has reviewed the OSC report of reprisals taken against the whistleblowers. Disciplinary proceedings have been initiated, he said, and all decisions should be complete by mid- to late-April.

"We are reviewing all training materials with supervisors and employees to ensure people understand the rights of whistleblowers," Donley said.

"We are committed to a workplace climate that makes individuals feel confident that they can raise any concerns they may have, that those concerns will be taken seriously, and that those raising the concerns will be treated with respect and appreciation," the Air Force secretary added.

The whistleblowers, he said, performed an important service to the Air Force and the nation. They continue in their positions and the Air Force is working with OSC to correct their records.

"In the meantime," Donley said, "we are implementing the recommendations of the Defense Health Board subcommittee to assure the very highest standard of care for our fallen and their families. We are proud of the employees at AFMAO and their continued commitment to this mission."

Special Counsel Carolyn Lerner said the Air Force has committed to improving its internal investigation procedures and the way it remedies whistleblower retaliation claims.

"I am pleased the Air Force has agreed to take further disciplinary action and institute training to prevent whistleblower retaliation in the future," Lerner said.

"The Port Mortuary whistleblowers," she added, " ... courageously stepped forward to report malfeasance and misconduct in the care of our fallen service members."

Their actions, Lerner said, "have resulted in significant improvements at the mortuary."
 

SECRETARY OF STATE CLINTON SPEAKS AT U.K PRIME MINISTER CAMERON'S LUNCHON

The following excerpt is from a U.S. State Department e-mail: 
Remarks at the Luncheon in Honor of UK Prime Minister David Cameron
Remarks Hillary Rodham Clinton
Secretary of State Benjamin Franklin Room
Washington, DC
March 14, 2012
Thank you all very much. Please be seated. Welcome to the State Department. We are thrilled and so pleased to host this luncheon for our very special guests, Prime Minister and Mrs. Cameron. It is wonderful to see all of you celebrating spring with us and knowing that our relationship, it’s always spring. It’s always being renewed, it is always durable, it is a cornerstone of both of our nations’ foreign policies, and it has such a great resonance between our two peoples.

Now I want to recognize our chef today. A native of Birmingham, England – not Alabama – (laughter) – who made herself a home in New York City as the executive chef of a couple of very hip restaurants. One, The Spotted Pig, the other The Breslin. So it’s really a delight to have April Bloomfield with us. She was just talking with the Prime Minister – (applause) – it was a very timely introduction because when the Prime Minister and President Obama exchanged gifts, President Obama gave the Prime Minister a barbeque. I mean a real, down-home American barbeque with a smoking compartment and everything else. So April stands ready to help, Prime Minister.

We joke about the special relationship, but that’s because we’re so comfortable with it. It means such a great deal to us. It is not just because of a wide range of shared interests, but our deeply rooted history and the unbreakable friendship between our countries. Now, of course the President did remind the Prime Minister at the White House ceremony this morning that we are at the 200th anniversary of the War of 1812. (Laughter.)
And I was pleased to tell my counterpart and friend, the Foreign Secretary, and also the Chancellor of the Exchequer, that it was my predecessor in one of my other lives, Dolly Madison, who actually saved the extraordinary portraits of George and Martha Washington. Having received word from her husband, who was truly been a commander-in-chief in the field, that unfortunately the British truly were coming. And – (laughter) – so she rushed from the White House, taking some treasures with her, leaving behind the meal that she had prepared for her husband and his officers. And the British officers ate the meal before they burned the White House. So – (laughter) – we are looking forward, but nevertheless, there are certain memories that are also of significance.

And how wonderful it is, here we are today and working together in so many important parts of the world: helping to bring peace and stability to Afghanistan; helping to promote successful transitions and democratic reforms in the Arab world. We worked alongside each other to end a dictator’s rule in Libya. We are now focused on helping the people of Syria realize a better future for themselves. We are grateful for the leadership that the Prime Minister and his government have shown on so many issues – just recently, I was in London for a conference on Somalia that they sponsored. No matter what the issue, we are standing together. So I know, Prime Minister and Samantha, that this is just a small measure of hospitality to try to demonstrate our commitment and appreciation for this relationship. We were so well treated when the President and I and our teams were on a state visit last year sponsored by the government, of course, her Majesty’s Government. So, we did the best we could with the weather. We think we pulled that off quite well. But it is now my great pleasure to welcome a dear friend, a great American, and a superb vice president, Joe Biden. (Applause.)

THREE NOBLE CORPORATE EXECUTIVES CHARGED BY SEC WITH BRIBERY

The following excerpt is from the SEC website:
March 14, 2012
SEC Charges Three Executives At Noble Corporation With Bribing Customs Officials In Nigeria
On February 24, 2012, the Securities and Exchange Commission today charged three Noble Corporation executives with violating the Foreign Corrupt Practices Act (FCPA) by participating in a bribery scheme to obtain illicit permits for oil rigs in Nigeria in order to retain business under lucrative drilling contracts.

The SEC alleges that former Noble CEO Mark A. Jackson along with James J. Ruehlen, who is the current Director and Division Manager of Noble’s subsidiary in Nigeria, bribed customs officials to process false paperwork purporting to show the export and re-import of oil rigs, when in fact the rigs never moved. The scheme was designed to save Noble Corporation from losing business and incurring significant costs associated with exporting rigs from Nigeria and then re-importing them under new permits. Bribes were paid through a customs agent for Noble’s Nigerian subsidiary with Jackson and Ruehlen’s approval.

The SEC separately charged Thomas F. O’Rourke, who was a former controller and head of internal audit at Noble. The SEC alleges that O’Rourke helped approve the bribe payments and allowed the bribes to be booked improperly as legitimate operating expenses for the company. O’Rourke agreed to settle the SEC’s charges and pay a penalty.
Noble Corporation was charged with FCPA violations as part of a sweep of the oil services industry in late 2010. The company cooperated with investigators and agreed to pay more than $8 million to settle civil and criminal cases.

According to the SEC’s complaint against Jackson and Ruehlen filed in U.S. District Court for the Southern District of Texas, the executives who perpetrated the scheme worked at Noble and Noble’s Nigerian subsidiary Noble Drilling (Nigeria) Ltd, whose rigs operated in Nigeria on the basis of temporary import permits granted by the Nigeria Customs Service (NCS). These temporary permits allowed the rigs to be in the country for a one-year period. NCS had the discretion to grant up to three extensions lasting six months each, after which the rigs were required to be exported and re-imported under a new temporary permit or be permanently imported with the payment of sizeable duties.
The SEC alleges that Jackson and Ruehlen had a role in arranging, facilitating, approving, making, or concealing the bribe payments to induce Nigerian customs officials to grant new temporary permits illegally and favorably exercise or abuse their discretion to grant permit extensions. Together, Jackson and Ruehlen participated in paying hundreds of thousands of dollars in bribes to obtain about 11 illicit permits and 29 permit extensions. Jackson approved the bribe payments and concealed the payments from Noble’s audit committee and auditors. Ruehlen prepared false documents, sought approval for the bribes, and processed and paid the bribes.

The SEC’s complaint against Jackson and Ruehlen alleges they directly violated the anti-bribery provisions of Section 30A of the Securities Exchange Act and the internal controls and false records provisions of Section 13(b)(5) and Rule 13b2-1 of the Exchange Act. The complaint alleges that they aided and abetted Noble’s violations of Section 30A and the books and records and internal controls provisions of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act. The complaint further alleges that Jackson directly violated Exchange Act Rule 13b2-2 by misleading auditors and Exchange Act Rule 13a-14 by signing false certifications of Noble’s financial statements. He also is liable as a control person under Section 20(a) of the Exchange Act for violations of the anti-bribery, books and records, and internal controls provisions by Noble, Ruehlen, and O’Rourke.

The SEC’s complaint against O’Rourke alleges that he aided and abetted Noble’s violations of the anti-bribery, books and records, and internal controls provisions of the Exchange Act, and that he directly violated the internal controls and false records provisions of the Exchange Act. Without admitting or denying the SEC’s allegations, O’Rourke consented to entry of a court order requiring him to pay a $35,000 penalty and permanently enjoining him from further violations of Sections 13(b)(2)(A), 13(b)(2)(B), 13(b)(5) and 30A of the Exchange Act and Rule 13b2-1.

SECRETARY OF DEFENSE PANETTA GIVES INTERVIEW TO AL HURRA TELEVISION

The following excerpt is from a Department of  Defense e-mail:
Secretary of Defense Leon E. Panetta Interview with Al Hurra Television
             Q:  Mr. Secretary, thank you so much for being with Al Hurra.  I would like to start by asking you about what's the purpose of your visit to the UAE, and do you think that the GCC is concerned about Iran's influence -- Iran's nuclear program in the region?  (Continues in Arabic.)
            SECRETARY LEON PANETTA:  The purpose of my visit is to reaffirm the strong relationship that we have with the UAE [United Arab Emirates].  They're one of our strongest allies in the region.  We work very closely with them on a number of areas.  And what I'm here to do is to, again, confirm that relationship, talk with them about some of the issues that obviously are impacting the region.  You mentioned one of them, Iran, and that they have concerns with regards to the situation there.  And we'll have a good discussion on that as well as the situation in Syria.  I'm sure we'll discuss that as well.
             Q:  What do you think -- do you think the policy of sanctions -- what has this policy achieved in regards to the Iranian nuclear program?  (Continues in Arabic.)
             SEC. PANETTA:  You know, for the first time, I think, in a very long time, the international community is unified with regards to its policy towards Iran.  It's very -- it's very clear, the message from the international community, that Iran should not develop a nuclear weapon and that it must become part of the family of international nations and abide by international rules.  That's the main message.
             And the international community has said that because of the behavior of Iran, we're going to make very clear that that has to change.  So it's applied some very strong economic sanctions, very strong diplomatic sanctions, the strongest, I think, that have ever been applied against a nation.
             And the result is that it's impacting on Iran.  It's impacting on their economy, it's impacting on their quality of life, it's impacting on their business community, it's impacting on their energy community, and I think as a result, it is putting pressure on them, isolating them and making it very clear to them that they have to change their ways?
             Q:  When you say Iran shouldn't get the nuclear bomb, do you know if Iran is close to getting it, first?  And do you think the Iranian nuclear weapon is an imminent threat?  (Continues in Arabic.)
             SEC. PANETTA:  I think the intelligence is clear that they have not made a firm decision to proceed with the development of a nuclear weapon.  They do, however, continue to develop their nuclear processing capabilities.  They do enrichment, and they're continuing to locate additional enrichment facilities.  All of that concerns us.  We want to be able to have the IAEA [International Atomic Energy Agency], the nuclear agency, be able to go in, to be able to look at their facilities to determine whether or not they are abiding by international rules and international norms.
             They have resisted that ability to inspect those facilities.  We think they should.  If their purposes are peaceful, if their purposes are to develop nuclear power for domestic reasons, then they shouldn't be afraid to allow the IAEA to do its inspection.
             Q:  Mr. Secretary, Iran is not the only country in the region who has a nuclear weapon.  Pakistan has also a nuclear bomb.  Why not -- why the Obama administration cannot live with a nuclear Iran?  (Continues in Arabic.)
             SEC. PANETTA:  The concern is this, that Iran continues to try to destabilize nations, particularly in this region.  They promote terrorism. They have supported terrorist activities throughout the region.  They continue to be a destabilizing force in this area.  And because obviously their intent and their purpose is not to promote stability in this region, for them to obtain a nuclear weapon would be extremely dangerous because it would virtually allow terrorism, then, to have the ability to use a nuclear weapon.  That's dangerous.
             Q:  Mr. Secretary --
             Q:  Lately you were very specific about when Israel is going to attack Iran.  Do you think now the probability that Israel could attack Iran has increased?  (Continues in Arabic.)
             SEC. PANETTA:  I -- as the president -- President Obama has stated and I agree, we do not believe Israel has made a decision to do that.  And as you know, we've engaged in a number of hearings with Prime Minister Netanyahu and have been very clear to him that we have the same concerns as Israel with regards to Iran and their -- and their developing a nuclear weapon, but that the international community is unified in putting pressure on Iran and that Israel should operate with the international community in increasing that pressure on Iran.  That's the better way to go right now.
             We think we have the room and the space to try to conduct diplomacy.  Military action should always be a last resort.  That's our system.
             Q:  Are you confident that Israel will not go unilaterally and attack Iran?  And if Israel will go and attack Iran, does the United States -- will the United States intervene with Israel?  (Continues in Arabic.)
             SEC. PANETTA:  Obviously Israel is an independent country, and they'll make whatever decisions they make on their own based on what they think is in their national interests.  If they should make that decision, then obviously the United States will -- would take action to protect our facilities in this area and protect our interests in this area.
             Q:  Before going to another subject, discussing Syria, why is this impossible to reach a deal, solution with the Iranian government?  (Continues in Arabic.)
             SEC. PANETTA:  Well, there have been efforts to try and negotiate on these issues, and unfortunately they have led nowhere.  In order to be able to reach a deal, it takes two parties who are willing to engage in honest, direct and open discussions regarding this issue.  I think if they are willing to do that, if they are willing to really sit down and negotiate (in seriousness ?) over this very difficult and complicated issue, that obviously that would be the better approach.  But the window for that kind of diplomatic solution, as pointed out by the president and by the prime minister of England, that window is closing.  They have to -- they have to show a willingness to negotiate on these issues and do that soon.
             Q:  I would like to ask you about Syria.  Do you still believe that it's pretty much -- (inaudible) -- to intervene militarily in Syria?  (Continues in Arabic.)
             SEC. PANETTA:  Again, I believe that the best course of action is to maintain the international pressure against Syria.  Again, the international community has been unified, along with the Arab League, in applying sanctions against Syria, making very clear that Assad should step down and allow the Syrian people to control their destiny.  This is the main message.
             We should continue to apply that pressure, continue to use every avenue to try to make very clear to Assad that it is important for him to now step down, to allow the people of Syria to come together and develop the institutions of government that will allow their people to freely exercise the kind of rights that the Syrian people are entitled to.
             Q:  Mr. Secretary, historically the United States is -- has always or used to follow Turkey and Saudi Arabia in dealing with a regional crisis.
             Why not this time the United States didn't follow -- doesn't follow -- didn't follow the Saudi position in regards to arming the rebels in Syria?  (Continues in Arabic.)
             SEC. PANETTA:  Again, I think that the United States believes that it is -- the international community ought to decide what steps should be taken with regards to Syria.  The Arab League has provided leadership on this issue.  As with Libya, it was because the international community was unified, the Arab League was unified with the international community that we ultimately were able to bring down Gadhafi and allow the Libyan people to have Libya.  I think it's going to take that kind of international cooperation working with the Arab League to develop what steps need to be taken now to assure that Assad steps down.
             Q:  Now we are in the Gulf, in the -- in the -- in the UAE.  Would you -- would you ask the GCC to take the -- to take the initiative and create a military coalition to resolve the Syrian crisis?  (Continues in Arabic.)
             SEC. PANETTA:  Again, we think it's important to work with the Arab League in deciding what the next steps are.  We do believe that continuing to put pressure on Syria, both diplomatic and economic, is the better course right now.
             You know, anytime people talk about military action, you have to understand what are the consequences of that.  What -- who is the opposition in Syria?  Who do you help?  What are the -- what are the consequences of taking steps like that?  Those are -- those are serious considerations.
             It's not to say that, you know, options -- all options should be on the table.  But I think right now the better course is for the international community and the Arab League to continue to apply strong diplomatic, economic sanctions, to try to get the U.N. to agree that Assad should step down and that the people of Syria should have the opportunity to govern themselves.
             Q:  You've mentioned consequences.  Do you know what -- to what extent can Syria and Iran retaliate in case of a military intervention in Syria?  (Continues in Arabic.)
             SEC. PANETTA:  It's -- of course, anytime you contemplate military action, you have to consider what are the consequences, what are the ramifications.  And as I pointed out in testimony on -- in the Congress, if we were to -- there were suggestions in the Congress that we should do targeted bombing in Syria.  But Syria does have a very strong air defense system, and that would have to be taken out before you could do that.  That kind of system is located in populated areas, and clearly, there would be a lot of collateral damage if that took place.  So it's those kinds of considerations that have to be thought seriously about.  People who urge military action have to understand that before you take that step, you better understand where that -- where does -- where does that kind of action lead.
             Q:  You've met with the prime minister, Netanyahu, and the defense minister, Ehud Barak.  Have you noticed that Israel has -- is concerned a little bit about a regime change in Syria?  (Continues in Arabic.)
             SEC. PANETTA:  You know, anytime a leader steps like down like Assad, there are always questions about who will take that person's place.  But one thing is for sure, that by virtue of the Syrian government killing a large number of Syrian people that this government has been engaged in, that it has lost its legitimacy as a government, and Assad has lost his legitimacy as a leader.
             When you kill your own people, you reach a point where you have lost your ability to truly govern.  And I think that's happened in Syria.  And the result will be that opposing forces will then have to come together, as they did in Libya, to establish, hopefully, a coalition, a council that can ultimately help decide who should govern that country in the future. That would be much better for the Syrian people than the kind of killing that's going on right now.
             Q:  Are you concerned -- I have two last questions.  Are you concerned about the rise of the Islamists and the Salafists in Egypt and in Libya?  How do you see that?  (Continues in Arabic.)
               SEC. PANETTA:  You know, the one thing you learn is that when a country decides to move towards democracy and allow all people to participate in that government, there are going to be different views.  There are going to be different ideologies that may be represented in that government.  But at the same time, giving all people the ability to participate makes clear that even though there may be some extreme ideologies that are there, that ultimately people recognize that the best way to govern is close to the center, not to the extremes.
             Q:  Last question, Mr. Secretary.  It's about the Quran burning in Bagram base.  You know this incident had caused a lot of anger among -- not only among the Afghan people but with the Arab world.  How would you address that?  (Continues in Arabic.)
             SEC. PANETTA:  Yeah, this was a terrible -- a terrible incident that took place.  I think it was a terrible mistake that was made.  And both the president as well as I and the secretary of state have apologized to the Afghan people for what took place, and we made clear that we will fully investigate this matter and that we will take action against those that are involved and hold them accountable.
             This does not represent, I think, the vast majority of the good men and women in uniform that serve in Afghanistan and that serve alongside the Afghan army and their soldiers.  This is -- this is not reflective of the behavior of most of our men and women, who truly believe that we must respect the sovereignty and the culture of Afghanistan in order for it to be able to succeed as a country.
             Q:  Mr. Secretary, thank you so much for being with Al Hurra.
             SEC. PANETTA:  Thanks.

6 PLEAD GUILTY TO STEALING THE IDENTITIES OF DEAD PEOPLE

The following excerpt is from the Department of Justice website:
Tuesday, March 13, 2012
Six Plead Guilty in Ohio to Tax and Mail Fraud Conspiracies Involving I.D. Theft of Deceased
Muaad Salem, Hanan Widdi, Najeh Widdi, Hazem Woodi, Daxesj Patel and Fahim Suleiman each entered guilty pleas before the Honorable James S. Gwin today to charges arising from a scheme to obtain false and fraudulent U.S. Treasury tax refund checks, the Justice Department, the U.S. Attorney’s Office for the Northern District of Ohio and the Internal Revenue Service (IRS) announced.   Specifically, Salem, Najeh Widdi and Woodi entered guilty pleas to conspiracy to defraud the United States, conspiracy to commit mail fraud and mail fraud; Hanan Widdi entered a guilty plea to conspiracy to defraud the United States and conspiracy to commit mail fraud; Patel entered a guilty plea to two counts of submitting false claims and one count of false statements; and Suleiman entered a guilty plea to conspiracy to defraud the United States, conspiracy to commit mail fraud; mail fraud and aggravated identity theft.

According to the indictment, between April 15, 2009 to at least August 2011, Salem, Suleiman, Najeh Widdi, Hanan Widdi, Woodi, Patel and other unknown co-conspirators defrauded the United States by filing false and fraudulent tax returns, many in the names of recently deceased taxpayers, and directing refunds to controlled locations in the state of Florida.   The U.S. Treasury checks generated by the false and fraudulent returns were then sent by the U.S. mail to co-conspirators in Ohio who sold and distributed the checks for negotiation at various businesses and banking institutions.   As part of their plea agreements, the defendants admitted that the fraud loss caused by their conduct was between $1 and 2.5 million and that the offenses involved more than ten victims.

Sentencing is scheduled on May 29, 2012, for Najeh Widdi and Patel; on May 30, 2012, for Hanan Widdi and Woodi; and on June 1, 2012, for Salem and Suleiman.   Mail fraud is punishable by a maximum potential sentence of 20 years in prison; conspiracy to defraud the United States is punishable by a maximum potential sentence of 10 years; conspiracy to commit mail fraud, making a false claim against the United States and making a false statement are each punishable by a maximum potential sentence of five years in prison; aggravated identity theft is punishable by a mandatory minimum prison sentence of two years to follow conviction on any other offense.   All of the above sentences are also punishable by a fine of $250,000 for each count of conviction.

The case was prosecuted by Assistant U.S. Attorney Gary D. Arbeznik of the Northern District of Ohio and Trial Attorney Jessica W. Knight of the Justice Department’s Tax Division following investigation by the Cleveland Division of the Federal Bureau of Investigation, the IRS-Criminal Investigation, and the United States Postal Service.

THE TOP 10 FACTS ABOUT THE INTERNATIONAL ICE PATROL

The following photos and excerpt are from the Department of Defense website:

A Coast Guard C-130, based out of Air Station Elizabeth City, N.C., flies past an iceberg in the waters near Newfoundland, Canada. U.S. Coast Guard photo by Petty Officer 1st Class Brandon Brewer. 



1. When was the International Ice Patrol formed?
Shipping areas in the North Atlantic have always been hazardous to navigate. The hazards of the North Atlantic captured global attention in April 1912 when the RMS Titanic sank after it struck an iceberg. The incident prompted maritime nations with ships transiting the Grand Banks off Newfoundland, Canada, to establish an iceberg patrol in the area. Since 1913, the U.S. Coast Guard has been tasked with the management and operation of the patrol. Except for the years of World Wars I and II, the ice patrol has been active each ice season since its inception.

2. What are the specific duties of the ice patrol?
Their mission is to monitor the iceberg danger near the Grand Banks of Newfoundland and provide the iceberg limit to the maritime community, including ice and current conditions.

3. Who makes up the ice patrol?
The ice patrol is a U.S. Coast Guard unit however the Canadian Ice Service, ice patrol and U.S. National Ice Center collaborate under the North American Ice Service. The ice patrol produces North American Ice service reports from February through July when icebergs may be present on the Grand Banks and the Canadian Ice Service produces the reports the rest of the year when icebergs are normally restricted to Canadian coastal waters.

4. Why aren’t there ice patrols in other areas other than the Grand Banks?
This is the only location in the world where icebergs endanger a major shipping route, and the ice patrol provides accurate and timely iceberg information to assist transatlantic mariners in avoiding them. Maritime traffic between Europe and North America typically follows routes that are intersected annually by an average of 500 icebergs.

5. What defines an “ice season” and when is it?
The ice season is the seasonal period when icebergs can be present on the Grand Banks. The International Convention for the Safety of Life at Sea the “ice season” as the period between February 15 and July 1, however the commander of the ice patrol can extend the period based on conditions.

6. What is the International Convention for Safety of Life at Sea?
SOLAS – or the International Convention for Safety of Life at Sea – is generally regarded as the most important of international treaties concerning the safety of merchant ships. The first version was adopted in 1914, in response to the sinking of the Titanic. The main objective of SOLAS is to specify minimum standards for the construction, equipment and operation of ships, compatible with their safety.

7. How did the Coast Guard patrol for icebergs in the past?
Iceberg detection in the past relied on visual sightings from boats on patrol in the area. As airplane performance improved however, the ice patrol integrated airplanes into reconnaissance operations and after 1960, surface patrol craft took a secondary role to aerial reconnaissance.

8. How does the Coast Guard patrol for icebergs now?
Iceberg reconnaissance is conducted primarily with aircrews from Air Station Elizabeth City, N.C., in an HC-130J Hercules airplane, the perfect platform for their mission. Using the airplane’s specialized sensors, radar and visual observations are employed for iceberg detection and identification.

9. Why do modern vessels still need the ice patrol?
Icebergs are not sea ice: they’re floating fragments of glaciers or ice shelves. National Science Foundation photo by of Patrick Rowe.
The seas where the North Atlantic shipping lanes pass near the Grand Banks are particularly challenging for mariners due to frequent fog and high seas. The combination can make it extremely difficult for even a modern vessel to detect an iceberg and avoid it. If there were no ice patrol, vessels would have to reduce risk of collision by either slowing speed considerably or avoiding the Grand Banks entirely. Every additional sea mile or hour adds to transportation costs and delivery time. In this age of “just in time” delivery, longer and more costly voyages equal higher costs and higher prices for consumers.

10. Are icebergs really still a danger?
As recently as 2010, a vessel ignoring the ice patrol’s warnings collided with an iceberg. Fortunately the damage was not catastrophic and the vessel was able to divert to a safe port. The vessel required considerable hull repairs and was unable to return to sea for some time. No vessel heeding ice patrol’s warnings has ever collided with an iceberg.

Icebergs are not sea ice: they’re floating fragments of glaciers or ice shelves. National Science Foundation photo by of Patrick Rowe. 

SEC CHARGES INVESTMENT ADVISER WITH GIVING INVESTORS EMBELLISHED AUDIT

The following excerpt is from the SEC website:
Washington, D.C., March 15, 2012 – The Securities and Exchange Commission today charged a San Francisco-area investment adviser with defrauding investors by giving them a bogus audit report that embellished the financial performance of the fund in which they were investing.

The SEC alleges that James Michael Murray raised more than $4.5 million from investors in his various funds including Market Neutral Trading LLC (MNT), a purported hedge fund that claimed to invest primarily in domestic equities. Murray provided MNT investors with a report purportedly prepared by independent auditor Jones, Moore & Associates (JMA). However, JMA is not a legitimate accounting firm but rather a shell company that Murray secretly created and controlled. The phony audit report misstated the financial condition and performance of MNT to investors.

“An independent financial audit is one of the best protections available to investors,” said Marc Fagel, Director of the SEC’s San Francisco Regional Office. “Murray conjured up an accounting firm and deliberately faked the audit to induce investors into believing the fund was in better shape than it actually was.”

The U.S. Attorney’s Office for the Northern District of California also has filed criminal charges against Murray in a complaint unsealed yesterday.

According to the SEC’s complaint filed in federal court in San Francisco, Murray began raising the funds from investors in 2008. The following year, MNT distributed the phony audit report to investors claiming the audit was conducted by a legitimate third-party accounting firm. However, JMA is not registered or licensed as an accounting firm in Delaware, where it purports to do business. JMA’s website was paid for by a Murray-controlled entity and listed 12 professionals with specific degrees and licenses who supposedly work for JMA. However, at least five of these professionals do not exist, including the two named principals of the firm: “Richard Jones” and “Joseph Moore.” Murray has attempted to open brokerage accounts in the name of JMA, identified himself as JMA’s chief financial officer, and called brokerage firms falsely claiming to be the principal identified on most JMA documents.

The SEC alleges that the bogus audit report provided to investors understated the costs of MNT’s investments and thus overstated the fund’s investment gains by approximately 90 percent. The JMA audit report also overstated MNT’s income by approximately 35 percent, its member capital by approximately 18 percent, and its total assets by approximately 10 percent.

The SEC’s complaint charges Murray with violating an SEC rule prohibiting fraud by investment advisers on investors in a pooled investment vehicle. The complaint seeks injunctive relief and financial penalties from Murray.

The SEC’s investigation was conducted by Karen Kreuzkamp and Robert S. Leach of the San Francisco Regional Office following an examination of MNT conducted by Yvette Panetta and Doreen Piccirillo of the New York Regional Office’s broker-dealer examination program. The SEC’s litigation will be led by Robert L. Mitchell of the San Francisco Regional Office. The SEC thanks the U.S. Attorney’s Office for the Northern District of California and the U.S. Secret Service for their assistance in this matter.

THE PASSING OF COPTIC CHRISTIAN POPE SHENOUDA III

The following excerpt is from a U.S. State Department e-mail: 
On the Passing of Pope Shenouda III
Press Statement Hillary Rodham Clinton
Secretary of State Washington, DC
March 17, 2012
Today, Americans stand alongside Egyptians in offering our deepest condolences on the passing of Coptic Christian Pope Shenouda III of Alexandria, leader of the Coptic Orthodox Church for more than 40 years. Pope Shenouda III was a beloved leader of Egypt’s Coptic Christians and an advocate for national unity and religious cooperation. As we reflect on his life and legacy, we reaffirm our support to the future peace and prosperity of Egypt. Our thoughts and prayers are with the Egyptian people and all those who mourn Pope Shenouda III.

PENTAGON SAYS FORCES IN AFGHANISTAN ARE COMMITTED TO SUCCESS

The following excerpt is from a U.S. Department of Defense American Forces Press Service e-mail: 

Afghan Mission Maintains Momentum, Spokesman Says

By Cheryl Pellerin
American Forces Press Service

WASHINGTON, March 16, 2012 - Despite tragic incidents over the past several months in Afghanistan, the security strategy in that nation is working and coalition and Afghan forces are committed to its successful end, a Pentagon spokesman said here today.

Navy Capt. John Kirby noted a rise in recent months of Afghan forces firing on coalition members, known as "green-on-blue" deaths, the inadvertent Feb. 21 burning of Qurans at the Parwan detention facility, and the March 11 shooting rampage in which a U.S. soldier is accused of murdering Afghan civilians.

"As tragic as incidents like these are -- and there have been a string of tragic incidents in recent weeks -- it would be just as tragic, if not more, if we let it affect the overall mission," Kirby said.

"I think it's just as wrong to extrapolate from those incidents some sort of overarching belief or notion that [the strategy] is failing and that our soldiers or [Afghan] soldiers are not committed to it," he added, "because that's just not the case."

Kirby, who has been on temporary assignment to Kabul since Feb. 21, said the war in Afghanistan "has been a long, grueling struggle, there's no question about that. We've taken casualties, our Afghan partners have taken casualties, [and] coalition partners have taken casualties."

But during his stay in Afghanistan, Kirby said he talked to soldiers and Marines deployed there.

"I made two battlefield circulations with [International Security Assistance Force commander Marine Corps Gen. John R. Allen] before I came back to the States," he said, "one to the East and one down South."

Kirby added, "Uniformly, the soldiers and Marines we talked to there are very committed to what they're doing. They believe in what they're doing and they're seeing the difference every day."

While in Helmand province, Kirby dropped in on his nephew, Marine Corps Cpl. Michael Kirby, who has been in Afghanistan since December and serves on an outpost not far from Marjah.

"He was very optimistic about what they're doing and the success they're having," Kirby said. "He said his Afghan counterparts were really good fighters and very reliable, very dependable and that they had a good working relationship."

The Pentagon spokesman said he found his nephew's attitude "instructive about the kind of good work that's going on across the country."

Afghan security forces are in the lead in many places in Afghanistan. About half the Afghan population now lives in areas that are led by Afghan security forces, officials have said.

"It's always been the goal here that the Afghans are [assuming] the lead for the security of their own country, for the protection of their own people, for safeguarding their own sovereignty," Kirby said. He added that "we all share" the strategy agreed upon at NATO's Lisbon summit in November 2010 that there will be a full transition of security responsibility to the Afghans by the end of 2014.

"And we certainly have made it clear that we expect to be taking more of a support role in terms of combat operations through 2013," Kirby said, "and at some time in 2013 we expect that, for combat operations, the Afghans will be in the lead."

He added, "We're all in agreement that the process of transition is the linchpin here in terms of the success of the strategy."
 

SECRETARY OF STATE HILLARY RODHAM CLINTON SENDS BEST WISHES TO THE PEOPLE OF IRELAND

The following excerpt is from a U.S. State Department e-mail: 
On the Occasion of St. Patrick's Day
Press Statement Hillary Rodham Clinton
Secretary of StateWashington, DC
March 16, 2012
On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the people of Ireland as you celebrate St. Patrick’s Day this March 17. Today, we honor the rich history and cultural heritage of the Irish people and reflect on the bonds of friendship and family between our two nations.
Irish contributions to America have shaped American culture from the founding of our nation. Eight of the men who signed the Declaration of Independence were Irish-Americans and half of our American Presidents have been of Irish descent. Countless Irish-Americans fought bravely during the Civil War, giving their lives for a better America. Throughout our society, Irish Americans have contributed in ways large and small to the bedrock of American life.

The depth and scope of Irish influence throughout the world is immeasurable and exemplifies your rich history and culture. As you celebrate St. Patrick’s Day in cities from Dublin to Detroit, know that the United States stands with you. Congratulations and best wishes for a year of peace and prosperity.

NATIONAL SCIENCE FOUNDATION SITE SAYS BUTTERFLY POPULATION LOWER BECAUSE OF WEATHER

The photo to the right and following excerpt are from the National Science Foundation website:
March 15, 2012                                                       Credit: National Park Service  

Early snowmelt caused by climate change in the Colorado Rocky Mountains snowballs into two chains of events: a decrease in the number of flowers, which, in turn, decreases available nectar. The result is decline in a population of the Mormon Fritillary butterfly, Speyeria mormonia. 

                                                                 

Using long-term data on date of snowmelt, butterfly population sizes and flower numbers at the Rocky Mountain Biological Laboratory, Carol Boggs, a biologist at Stanford University, and colleagues uncovered multiple effects of early snowmelt on the growth rate of an insect population.

"Predicting effects of climate change on organisms' population sizes will be difficult in some cases due to lack of knowledge of the species' biology," said Boggs, lead author of a paper reporting the results online in this week's journal Ecology Letters.
Taking into account the butterfly's life cycle and the factors determining egg production was important to the research.

Butterflies lay eggs (then die) in their first summer; the caterpillars from those eggs over-winter without eating and develop into adults in the second summer.
In laboratory experiments, the amount of nectar a female butterfly ate determined the number of eggs she laid. This suggested that flower availability might be important to changes in population size.

Early snowmelt in the first year leads to lower availability of the butterfly's preferred flower species, a result of newly developing plants being exposed to early-season frosts that kill flower buds.

The ecologists showed that reduced flower--and therefore nectar--availability per butterfly adversely affected butterfly population growth rate.
Early snowmelt in the second year of the butterfly life cycle worsened the effect, probably through direct killing of caterpillars during early-season frosts.
The combined effects of snowmelt in the two consecutive years explained more than four-fifths of the variation in population growth rate.

"Because species in natural communities are interconnected, the effects of climate change on any single species can easily be underestimated," said Saran Twombly, program director in the National Science Foundation's Division of Environmental Biology, which funded the research.

"This study combines long-term, data models, and an understanding of species interactions to underscore the complex effects climate change has on natural populations."
"It's very unusual for research to uncover a simple mechanism that can explain almost all the variation in growth rate of an insect population," said David Inouye, a biologist at the University of Maryland and co-author of the paper.

Indeed, "one climate parameter can have multiple effects on an organism's population growth," Boggs said. "This was previously not recognized for species such as butterflies that live for only one year.

"We can already predict that this coming summer will be a difficult one for the butterflies," she said, "because the very low snowpack in the mountains this winter makes it likely that there will be significant frost damage."

"Long-term studies such as ours are important to understanding the 'ecology of place,' and the effects of weather and possible climate change on population numbers," said Inouye.
"This research is critical to assessing the broader effects of weather on an ever-changing Earth," he said. "By facilitating long-term studies, field stations such as the Rocky Mountain Biological Laboratory are an invaluable asset."
Stanford University's Vice Provost for Undergraduate Education also funded the work.