TAYLOR, BEAN & WHITAKER'S FORMER CFO PLEADS GUILTY TO FRAUD

The following excerpt is from the Department of Justice website:
Tuesday, March 20, 2012
Former Chief Financial Officer of Taylor, Bean & Whitaker Pleads Guilty to Fraud Scheme
WASHINGTON – Delton de Armas, a former chief financial officer (CFO) of Taylor, Bean & Whitaker Mortgage Corp. (TBW), pleaded guilty today to making false statements and conspiring to commit bank and wire fraud for his role in a more than $2.9 billion fraud scheme that contributed to the failures of TBW and Colonial Bank.

 The guilty plea was announced today by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Neil H. MacBride for the Eastern District of Virginia; Christy Romero, Deputy Special Inspector General, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Assistant Director in Charge James W. McJunkin of the FBI’s Washington Field Office; David A. Montoya, Inspector General of the Department of Housing and Urban Development (HUD-OIG); Jon T. Rymer, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG); Steve A. Linick, Inspector General of the Federal Housing Finance Agency (FHFA-OIG); and Rick A. Raven, Acting Chief of the Internal Revenue Service Criminal Investigation (IRS-CI).

De Armas, 41, of Carrollton, Texas, pleaded guilty before U.S. District Judge Leonie M. Brinkema in the Eastern District of Virginia.  De Armas faces a maximum penalty of 10 years in prison when he is sentenced on June 15, 2012.

“As TBW’s chief financial officer, Mr. de Armas concealed a massive $1.5 billion deficit in TBW’s funding facility and another large deficit on TBW’s books,” said Assistant Attorney General Breuer.  “He tried to conceal the gaping holes by falsifying financial statements and lying to investors as well as the government.  Ultimately, Mr. de Armas’ criminal conduct, along with that of his co-conspirators, contributed to the collapse of TBW and Colonial Bank.  With today’s guilty plea, Mr. de Armas joins seven other defendants – including the former chairman of TBW Lee Bentley Farkas – who have been convicted of participating in this massive fraudulent scheme.”

“When Mr. de Armas learned of a hole in Ocala Funding’s assets, he used his position as CFO to cover it up and mislead investors,” said U.S. Attorney MacBride.  “Today’s plea is the eighth conviction in one of the nation’s largest bank frauds in history.  As CFO, Mr. de Armas could have put a stop to the fraud the moment he discovered it.  Instead, the hole in Ocala Funding grew to $1.5 billion on his watch, and as it grew, so did his lies to investors and the government.”

According to court documents, de Armas joined TBW in 2000 as its CFO and reported directly to its chairman, Lee Bentley Farkas, and later to its CEO, Paul Allen.  He admitted in court that from 2005 through August 2009, he and other co-conspirators engaged in a scheme to defraud financial institutions that had invested in a wholly-owned lending facility called Ocala Funding.  Ocala Funding obtained funds for mortgage lending for TBW from the sale of asset-backed commercial paper to financial institutions, including Deutsche Bank and BNP Paribas. The facility was managed by TBW and had no employees of its own.

According to court records, shortly after Ocala Funding was established, de Armas learned there were inadequate assets backing its commercial paper, a deficiency referred to internally at TBW as a “hole” in Ocala Funding.  De Armas knew that the hole grew over time to more than $700 million.  He learned from the CEO that the hole was more than $1.5 billion at the time of TBW’s collapse.  De Armas admitted he was aware that, in an effort to cover up the hole and mislead investors, a subordinate who reported to him had falsified Ocala Funding collateral reports and periodically sent the falsified reports to financial institution investors in Ocala Funding and to other third parties.  De Armas acknowledged that he and the CEO also deceived investors by providing them with a false explanation for the hole in Ocala Funding.

De Armas also admitted in court that he directed a subordinate to inflate an account receivable balance for loan participations in TBW’s financial statements.  De Armas acknowledged that he knew that the falsified financial statements were subsequently provided to Ginnie Mae and Freddie Mac for their determination on the renewal of TBW’s authority to sell and service securities issued by them.

In addition, de Armas admitted in court to aiding and abetting false statements in a letter the CEO sent to the U.S. Department of Housing and Urban Development, through Ginnie Mae, regarding TBW’s audited financial statements for the fiscal year ending on March 31, 2009.  De Armas reviewed and edited the letter, knowing it contained material omissions.  The letter omitted that the delay in submitting the financial data was caused by concerns its independent auditor had raised about the financing relationship between TBW and Colonial Bank and its request that TBW retain a law firm to conduct an internal investigation.  Instead, the letter falsely attributed the delay to a new acquisition and TBW’s switch to a compressed 11-month fiscal year.

“With our nation in a housing crisis, de Armas, as chief financial officer of TBW, one of the country’s largest mortgage lenders, papered over a gaping hole in the balance sheet of TBW subsidiary Ocala Funding and lied to regulators and investors to cover it up,” said Deputy Special Inspector General Romero for SIGTARP.  “The fraud provided cover to others at TBW to misappropriate more than $1 billion in Ocala funds and sell fraudulent, worthless securities to conspirators at Colonial BancGroup.  SIGTARP and its law enforcement partners stopped $553 million in TARP funds from being lost to this fraud and brought accountability and justice that the American taxpayers deserve.”

“Mr. de Armas has admitted that, during his tenure at TBW, he purposefully misled investors in a massive scheme to defraud financial institutions,” said FBI Assistant Director in Charge McJunkin.  “The actions of Mr. de Armas and his co-conspirators contributed to the financial crisis and led to the collapse of one of the country’s largest commercial banks.  The FBI and our partners remain vigilant in investigating such fraudulent activity in our banking and mortgage industries.”

“The guilty plea of Mr. de Armas is one small measure in our continued efforts to restore the trust and confidence of the general public and of investors in our financial system,” said HUD Inspector General Montoya.  “In response to the many recent articles of mortgage fraud and misconduct, the mortgage industry needs to do much to rethink their values and their idea of client service in order to help rebuild a stronger economy and to restore the confidence of American homeowners.”

“The Federal Deposit Insurance Corporation Office of Inspector General is pleased to have played a role in bringing to justice yet another senior official in a position of trust who was involved in one of the biggest and most complex bank fraud schemes of our time,” said FDIC Inspector General Rymer.  “The former chief financial officer of Taylor, Bean & Whitaker is the latest participant who will be held accountable for seeking to undermine the integrity of the financial services industry.  Even as the financial and economic crisis seems to be easing, we reaffirm our commitment to ensuring that those contributing to the failures of financial institutions and corresponding losses to the Deposit Insurance Fund will be punished to the fullest extent of the law.”
“Mr. de Armas and his colleagues committed an egregious crime,” said FHFA Inspector General Linick.  “FHFA-OIG is proud to be part of the team that continues to protect American taxpayers.”

In April 2011, a jury in the Eastern District of Virginia found Lee Bentley Farkas, the chairman of TBW, guilty of 14 counts of conspiracy, bank, securities and wire fraud.  On June 30, 2011, Judge Brinkema sentenced Farkas to 30 years in prison.  In addition, six individuals have pleaded guilty for their roles in the fraud scheme, including: Paul Allen, former chief executive officer of TBW, who was sentenced to 40 months in prison; Raymond Bowman, former president of TBW, who was sentenced to 30 months in prison; Desiree Brown, former treasurer of TBW, who was sentenced to six years in prison; Catherine Kissick, former senior vice president of Colonial Bank and head of its Mortgage Warehouse Lending Division (MWLD), who was sentenced to eight years in prison; Teresa Kelly, former operations supervisor for Colonial Bank’s MWLD, who was sentenced to three months in prison; and Sean Ragland, a former senior financial analyst at TBW, who was sentenced to three months in prison.

The case is being prosecuted by Deputy Chief Patrick Stokes and Trial Attorney Robert Zink of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Charles Connolly and Paul Nathanson of the Eastern District of Virginia.  This case was investigated by SIGTARP, FBI’s Washington Field Office, FDIC-OIG, HUD-OIG, FHFA-OIG and IRS-CI.  The Financial Crimes Enforcement Network (FinCEN) of the Department of the Treasury also provided support in the investigation.  The Department would also like to acknowledge the substantial assistance of the U.S. Securities and Exchange Commission in the investigation of the fraud scheme.

STATEMENT OF SECRETARY OF STATE CLINTON ON REDUCED USE OF IRANIAN OIL

The following excerpt is from a U.S. State Department e-mail: 
Statement on Significant Reductions of Iranian Crude Oil Purchases
Press Statement Hillary Rodham Clinton
Secretary of State Washington, DC
March 20, 2012
I am pleased to announce that an initial group of eleven countries has significantly reduced their volume of crude oil purchases from Iran -- Belgium, the Czech Republic, France, Germany, Greece, Italy, Japan, the Netherlands, Poland, Spain, and the United Kingdom. As a result, I will report to the Congress that sanctions pursuant to Section 1245 of the National Defense Authorization Act for 2012 (NDAA) will not apply to the financial institutions based in these countries, for a renewable period of 180 days.

The actions taken by these countries were not easy. They had to rethink their energy needs at a critical time for the world economy and quickly begin to find alternatives to Iranian oil, which many had been reliant on for their energy needs. The ban on all new purchases of Iranian crude oil by the European Union countries as of January 23, and phase out of existing contracts by July 1, demonstrates their solidarity and their commitment to holding Iran accountable for its failure to comply with its international obligations. Japan’s significant reductions in crude oil purchases is also especially noteworthy considering the extraordinary energy and other challenges it has faced over the past year. We commend these countries for their actions and urge other nations that import oil from Iran to follow their example.

Only two months after the passage of the National Defense Authorization Act for 2012, we have made progress in shrinking Iran’s oil export markets, and isolating its Central Bank from the world financial system. The United States is leading an unprecedented international coalition of partners that has brought to bear significant pressure on the Iranian regime to change its course. Diplomacy coupled with strong pressure can achieve the long-term solutions we seek and we will continue to work with our international partners to increase the pressure on Iran to meet its international obligations.

WHITE HOUSE SAYS HEALTH REFORM HAS HELPED MILLIONS OF WOMEN WITH PREVENTIVE CARE

The photo and excerpt are from the White House website:

President Obama’s health reform law requires that new health insurance plans cover preventive services with no co-pay or deductible. In the last 18 months, approximately 20.4 million women with private health insurance have received preventive health services such as mammograms and pap smears at no additional cost because of this provision in the Affordable Care Act.

Besides improving access to services that help women stay healthy and detect health problems early on, health reform helps women in many other ways. For example, health insurance companies can no longer discriminate against women by charging them higher premiums than they charge men. Insurance companies are banned from imposing a limit on the amount of care they’ll cover over a woman’s lifetime, and are now required to spend at least 80 percent of premium dollars on care—not overhead.

Women who have been unable to purchase health insurance because of a pre-existing condition such as cancer or having been pregnant now have an option to obtain the insurance they need through the new Pre-Existing Condition Insurance Plan.

Beginning in 2014, the Affordable Care Act will be fully implemented and offer even greater protection for women and their health care, including a ban on denying care based on pre-existing conditions, and the removal of annual limits on care.

CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE ADDRESSES INFLATION IN NEWSLETTER

The following excerpt is from Congressman Dave Camp's website:
Highlights from the House: Constituents' Concerns
Congressman Dave Camp met with constituents across Michigan last week to hear their concerns, answer questions about the economic uncertainty that continues to threaten our nation’s recovery. Michiganders continue to voice concerns over the failed energy policies of the Obama Administration that have caused the price of gas to double, rising from a national average of $1.83 when President Obama took office to $3.75 today.

Gas is not the only price increase Americans are facing, according to a recent USA Today article, electricity bills have also skyrocketed. Under the Obama Administration, the average family income is down by more than $1,000, and the cost of eggs has increased by 30 percent, fruit by 14 percent, and meat by 18 percent. With the cost of living continuing to rise and wages remaining low, it comes as little surprise that nearly half of the U.S. feels worse off financially today than they did one year ago, according to a recent Gallup poll.

Relief, especially relief from high gas prices, does not appear to be on the horizon from President Obama. A White House aide recently confirmed that the president lobbied Senate Democrats to vote against the Keystone XL pipeline. If passed, the Keystone XL pipeline would increase our domestic crude supply by an estimated 302 million barrels per year (830,000 barrels a day), $20 billion of private sector investment would be injected into the American economy, 20,000 direct jobs would be created and $5 billion in taxes to local communities would be collected over the project’s lifetime.

GENERAL ALLEN TELLS CONGRESS TROOP WITHDRAWAL SHOULD NOT BE STEPPED UP

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

Allen: Troops Will Accomplish Afghan Mission

By Jim Garamone
American Forces Press Service

WASHINGTON, March 20, 2012 - Recent incidents have been deplorable, but they will not stand in the way of accomplishing goals in Afghanistan, the International Security Assistance Force commander said here.

Marine Corps Gen. John R. Allen also said the incidents do not represent the actions of the vast majority of U.S. military personnel who have served in Afghanistan.

Three incidents have been lumped together, the general said: desecration of corpses, the accidental burning of Qurans and the murder of 16 Afghans in Kandahar province. "It's important to understand that while tragic, these few incidents do not represent who we are," Allen said during an interview. "The Afghan people know that, the Afghan government knows that, and more importantly, the Afghan national security forces know who we are."

Allen emphasized that U.S. and Afghan forces have been working together for years, and many Afghans and Americans have close working relationships.

"We have a sound campaign plan that is developed jointly by the Afghan national security forces and the International Security Assistance Force," he said. "It is a good plan and we are executing that plan. I think we can accomplish our objectives, without question."

It is important to remember that considerable progress has taken place in Afghanistan, Allen said. "Security in many places in Afghanistan is near normal," he added, citing the city of Herat as a prime example of a place "on a very positive trajectory."

The civil government, the Italian-led ISAF forces, the Afghan national security forces and the population as a whole are combining to create a peaceful, stable area in and around Herat, where economic progress provides opportunities, the general said.

The Afghan capital of Kabul is jammed with cars and is known for the "hustle and bustle of a city where the people are going about their way on a moment-to-moment basis free from the oppression of the Taliban, free from the threat of terrorist attack," he said.

Kabul is virtually incident-free, Allen said, and Afghan forces provide security for the region. Still, he acknowledged, he taps on wood when he talks of security, because "it is the great ambition of the Taliban to terrorize the Afghan people, to cause fear and disruption in their daily lives."

Afghan forces are the difference, Allen said. "In places like Herat, in Kabul, in the south in Kandahar and the Helmand River Valley, the [Afghan forces] have created an environment of security by which the Afghan people can now, in many places, go about their normal daily lives," the general said.

Afghan forces already protect more than 50 percent of the Afghan people, and that number will grow in the months ahead. NATO nations, contributing countries and Afghan leaders agreed to the transition process at NATO's November 2010 summit in Lisbon, Portugal. Two "tranches" of areas have transitioned to Afghan security control already, Allen noted. "We are working on a third tranche now," he said. "We'll have the fourth by the end of the year, and a fifth by the end of the summer of 2013."

Addressing war-weariness among Americans for the conflict in Afghanistan, Allen said people must remember why U.S. forces are there.

"We should remember why we're in Afghanistan, which was 9/11," he said. "On the 11th of September 2001, more than 3,000 people were killed by terrorist attacks on the homeland of the United States. Those attacks were planned and ultimately executed out of Kandahar by al-Qaida, sheltered by the Taliban."

At the time, Kandahar was a dying city totally under the thumb of religious radicals who stoned people to death for singing in the street and refused medical care to women. Today, Allen said, it is a bustling city where security is measurable and led by the Afghan national forces.

No further attacks on the United States have taken place since 9/11, Allen noted. "The effects of our forces over this period of time has kept the United States safe, kept the Western world safe, kept Afghanistan safe," he said, "and it has expelled al-Qaida largely from Afghanistan, and it is now in fact, reducing the ability of the Taliban to terrorize Afghan citizens and [has] expelled them from the population."

This is significant progress, the general said, noting the American people "should be tremendously proud of their sons and daughters who have fought this war now for going on 11 years."

More than 800,000 Americans have deployed to Afghanistan since the war began. With very few exceptions, Allen said, these young service members "have upheld the standards of this country."

"While there have been some moments of tragedy and some actions of very few that have complicated the campaign and our objectives, I would say the thousands and thousands of American young men and women who passed through Afghanistan have demonstrated respect for Islam and respect for the Afghan people," the general said. They have fought shoulder-to-shoulder with the Afghans for the freedom of the country, he added.

"That's why we're there," he said. "And if Afghanistan becomes safe, America becomes safer. It's a direct-line relationship, and we should never forget that."
 

ON ANNIVERSARY OF U.S. INVASION OF IRAQ PRESIDENT OBAMA "PROCLAIMS NATIONAL DAY OF HONOR"

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

President Proclaims 'National Day of Honor'

American Forces Press Service

WASHINGTON, March 19, 2012 - On the ninth anniversary of U.S. forces moving into Iraq, President Barack Obama has proclaimed today to be "A National Day of Honor."

Here's is the text of the president's proclamation:

Nine years ago, members of the United States Armed Forces crossed the sands of the Iraq-Kuwait border and began one of the most challenging missions our military has ever known. They left the comforts of home and family, volunteering in service to a cause greater than themselves. They braved insurgency and sectarian strife, knowing too well the danger of combat and the cost of conflict. Yet, through the dust and din and the fog of war, they never lost their resolve. Demonstrating unshakable fortitude and unwavering commitment to duty, our men and women in uniform served tour after tour, fighting block by block to help the Iraqi people seize the chance for a better future. And on December 18, 2011, their mission came to an end.

Today, we honor their success, their service, and their sacrifice. In one of our Nation's longest wars, veterans of Operation Iraqi Freedom and Operation New Dawn wrote one of the most extraordinary chapters in American military history. When highways became mine fields and uncertainty waited behind every corner, service members rose to meet the task at hand with unmatched courage and determination. They learned languages and cultures, taking on new roles as diplomats and development experts to improve the communities where they served. Their strength toppled a tyrant, and their valor helped build opportunity in oppression's place. Across nearly 9 years of conflict, the glory of their service -- as well as the contributions of other members of the U.S. Government and our coalition partners -- always shone through.

The war left wounds not always seen, but forever felt. The burden of distance and the pain of loss weighed heavily on the hearts of millions at home and overseas. Behind every member of our military stood a parent, a spouse, or a son or daughter who proudly served their community and prayed for their loved one's safe return. For wounded warriors, coming home marked the end of one battle and the beginning of another -- to stand, to walk, to recover, and to serve again. And, in war's most profound cost, there were those who never came home. Separated by time and space but united by their love of country, nearly 4,500 men and women are eternally bound; though we have laid them to rest, they will live on in the soul of our Nation now and forever. To them, to their families, and to all who served, we owe a debt that can never be fully repaid.

When we returned the colors of United States Forces-Iraq and the last of our troops set foot on American soil, we reflected on the extraordinary service and sacrifice of those who answered our country's call. Their example embodied that fundamental American faith that tells us no mission is too hard, no challenge is too great, and that through tests and through trials, we will always emerge stronger than before. Now, our Nation reaffirms our commitment to serve veterans of Iraq as well as they served us -- to uphold the sacred trust we share with all who have worn the uniform. Our future is brighter for their service, and today, we express our gratitude by saying once more: Welcome home.

NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim March 19, 2012, as a National Day of Honor. I call upon all Americans to observe this day with appropriate programs, ceremonies, and activities that commemorate the return of the United States Armed Forces from Iraq.

TWO FINANCIAL ADVISERS CHARGED BY SEC WITH INSIDER TRADING WITH CONFIDENTIAL MERGER INFORMATION

The excerpt below is from the SEC website:
March 14, 2012
The Securities and Exchange Commission announced that, on March 13, 2012, it charged two financial advisors and three others in their circle of family and friends with insider trading for more than $1.8 million in illicit profits based on confidential information about a Philadelphia-based insurance holding company’s merger negotiations with a Japanese firm.

The SEC’s complaint, filed in U.S. District Court for the Eastern District of Pennsylvania, charges Timothy J. McGee, of Malvern, Pa., Michael W. Zirinsky, of Schwenksville, Pa., Robert Zirinsky, of Quakertown, Pa. and Hong Kong residents Paulo Lam and Marianna sze wan Ho with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint also names as relief defendants Michael Zirinsky’s wife Kellie F. Zirinsky, sister Jillynn Zirinsky, mother Geraldine A. Zirinsky, and grandmother Mary L. Zirinsky for the purpose of recovering illegal profits in their trading accounts. Lam and Ho have each agreed to settle the SEC’s charges and pay approximately $1.2 million and $140,000 respectively.

The SEC’s complaint alleges that McGee and Michael Zirinsky, who are registered representatives at Ameriprise Financial Services, illegally traded in the stock of Philadelphia Consolidated Holding Corp. (PHLY) based on nonpublic information about the company’s impending merger with Tokio Marine Holdings. The complaint alleges that McGee misappropriated the inside information from a PHLY senior executive who was confiding in him through their relationship at Alcoholics Anonymous (AA) about pressures he was confronting at work. McGee then purchased PHLY stock in advance of the merger announcement on July 23, 2008, and made a $292,128 profit when the stock price jumped 64 percent that day.

The complaint further alleges that McGee tipped Michael Zirinsky, who purchased PHLY stock in his own trading account as well as those of his wife, sister, mother, and grandmother. Zirinsky tipped his father Robert Zirinsky and his friend Paulo Lam, who in turn tipped another friend whose wife Marianna sze wan Ho also traded on the nonpublic information. The complaint alleges that the Zirinsky family collectively obtained illegal profits of $562,673 through their insider trading. Lam made an illicit profit of $837,975 and Ho profited by $110,580.

The complaint seeks a final judgment ordering disgorgement of ill-gotten gains together with prejudgment interest from the defendants and relief defendants, and permanent injunctions and penalties against the defendants.

Lam and Ho have each consented, without admitting or denying the SEC’s allegations, to the entry of a final judgment permanently enjoining them from violating Section 10(b) of the Exchange Act and Rule 10b-5. Lam agreed to pay $837,975 in disgorgement, $123,649 in prejudgment interest, and a penalty of $251,392. Ho has agreed to pay $110,580 in disgorgement, $16,317 in prejudgment interest, and a penalty of $16,587. The settlements are subject to court approval.

The SEC’s investigation was conducted by Philadelphia Regional Office enforcement staff Brendan P. McGlynn, Patricia A. Paw and Daniel L. Koster. The SEC’s litigation will be led by Scott A. Thompson, Nuriye C. Uygur, and G. Jeffrey Boujoukos.

NEW FROG SPECIES FOUND IN NEW YORK CITY

The following excerpt is from the National Science Foundation website:
March 14, 2012
In the wilds of New York City--or as wild as you can get that close to skyscrapers--scientists have found a new leopard frog species.
For years, biologists mistook it for a more widespread variety of leopard frog.
While biologists regularly discover new species in remote rainforests, finding this one in ponds and marshes--sometimes within view of the Statue of Liberty--is a big surprise, said scientists from the University of California, Los Angeles; Rutgers University; the University of California, Davis and the University of Alabama.
"For a new species to go unrecognized in this area is amazing," said UCLA biologist Brad Shaffer, formerly at UC Davis.

Shaffer's research is funded by the National Science Foundation's (NSF) Division of Environmental Biology.

In recently published results in the journal Molecular Phylogenetics and Evolution, Shaffer and other scientists used DNA data to compare the new frog to all other leopard frog species in the region.

"Many amphibians are secretive and very hard to find, but these frogs are pretty obvious animals," said Shaffer.

"This shows that even in the largest city in the U.S., there are still new and important species waiting to be discovered."

The researchers determined the frog is an entirely new species. The unnamed frog joins a crowd of more than a dozen distinct leopard frog species.
The newly identified wetland species likely once lived on Manhattan. It's now only known from a few nearby locations: Yankee Stadium in the Bronx is the center of its current range.

Lead paper author Cathy Newman, now of Louisiana State University, was working with Leslie Rissler, a biologist at the University of Alabama, on an unrelated study of the southern leopard frog species when she first contacted scientist Jeremy Feinberg at Rutgers University in New Jersey.

Feinberg asked if she could help him investigate some "unusual frogs" whose weird-sounding calls were different from those of other leopard frogs.
"There are northern and southern leopard frogs in that general area, so I was expecting to find one of those that for some reason had atypical behaviors or that were hybrids of both," Newman said.

"I was really surprised and excited once I started getting data back strongly suggesting it was a new species. It's fascinating in such a heavily urbanized area."
Feinberg suspected that the leopard-frog look-alike with the peculiar croak was a new creature hiding in plain sight.

Instead of the "long snore" or "rapid chuckle" he heard from other leopard frogs, this frog had a short, repetitive croak.

As far back as the late 1800s, scientists have speculated about these "odd" frogs.
"When I first heard these frogs calling, it was so different, I knew something was very off," Feinberg said.

"It's what we call a cryptic species: one species hidden within another because we can't tell them apart on sight. Thanks to molecular genetics, people are picking out species that would otherwise be ignored."
The results were clear-cut: the DNA was distinct, no matter how much the frogs looked alike.

"If I had one of these three leopard frogs in my hand, unless I knew what area it was from, I wouldn't know which one I was holding because they all look so similar," Newman said. "But our results showed that this lineage is very clearly genetically distinct."
Mitochondrial DNA represents only a fraction of the amphibian's total DNA, so Newman knew she needed to do broader nuclear DNA tests to see the whole picture and confirm the frog as a new species. She performed the work at UC Davis.

Habitat destruction, disease, invasive species, pesticides and parasites have all taken a heavy toll on frogs and other amphibians worldwide, said Rissler, currently on leave from the University of Alabama and a program director in NSF's Division of Environmental Biology.

Amphibians, she said, are great indicators of problems in our environment--problems that could potentially impact our health.

"They are a good model to examine environmental threats or degradation because part of their life history is spent in the water and part on land," Rissler said. "They're subject to all the problems that happen to these environments."
The findings show that even in densely-populated, well-studied areas, there are still new discoveries to be made, said Shaffer.  And that the newly identified frogs appear to have a startlingly limited range.

"One of the real mantras of conservation biology is that you cannot protect what you don't recognize," Shaffer said. "If you don't know that two species are different, you can't know whether either needs protection."

The newly identified frogs have so far been found in scattered populations in northern New Jersey, southeastern mainland New York and on Staten Island.
Although they may extend into parts of Connecticut and northeastern Pennsylvania, evidence suggests they were once common on Long Island and other nearby regions.
They went extinct there in just the last few decades. "This raises conservation concerns that must be addressed," said ecologist Joanna Burger of Rutgers University.
"These frogs were probably once more widely distributed," Rissler said. "They are still able to hang on. They're still here, and that's amazing."

Until scientists settle on a name for the frog, they refer to it as "Rana sp. nov.," meaning "new frog species."

NASA'S NEW INFRARED ATLAS AND CATALOG SHEDS LIGHT ON THE UNIVERSE

The following excerpt is from the NASA website:

WASHINGTON -- NASA unveiled a new atlas and catalog of the entire 
infrared sky today showing more than a half billion stars, galaxies 
and other objects captured by the Wide-field Infrared Survey Explorer 
(WISE) mission. 

"Today, WISE delivers the fruit of 14 years of effort to the 
astronomical community," said Edward Wright, WISE principal 
investigator at UCLA, who first began working on the mission with 
other team members in 1998. 

WISE launched Dec. 14, 2009, and mapped the entire sky in 2010 with 
vastly better sensitivity than its predecessors. It collected more 
than 2.7 million images taken at four infrared wavelengths of light, 
capturing everything from nearby asteroids to distant galaxies. Since 
then, the team has been processing more than 15 trillion bytes of 
returned data. A preliminary release of WISE data, covering the first 
half of the sky surveyed, was made last April. 

The WISE catalog of the entire sky meets the mission's fundamental 
objective. The individual WISE exposures have been combined into an 
atlas of more than 18,000 images covering the sky and a catalog 
listing the infrared properties of more than 560 million individual 
objects found in the images. Most of the objects are stars and 
galaxies, with roughly equal numbers of each. Many of them have never 
been seen before. 

WISE observations have led to numerous discoveries, including the 
elusive, coolest class of stars. Astronomers hunted for these failed 
stars, called "Y-dwarfs," for more than a decade. Because they have 
been cooling since their formation, they don't shine in visible light 
and could not be spotted until WISE mapped the sky with its infrared 
vision. 

WISE also took a poll of near-Earth asteroids, finding there are 
significantly fewer mid-size objects than previously thought. It also 
determined NASA has found more than 90 percent of the largest 
near-Earth asteroids. 

Other discoveries were unexpected. WISE found the first known "Trojan" 
asteroid to share the same orbital path around the sun as Earth. One 
of the images released today shows a surprising view of an "echo" of 
infrared light surrounding an exploded star. The echo was etched in 
the clouds of gas and dust when the flash of light from the supernova 
explosion heated surrounding clouds. At least 100 papers on the 
results from the WISE survey already have been published. More 
discoveries are expected now that astronomers have access to the 
whole sky as seen by the spacecraft. 

"With the release of the all-sky catalog and atlas, WISE joins the 
pantheon of great sky surveys that have led to many remarkable 
discoveries about the universe," said Roc Cutri, who leads the WISE 
data processing and archiving effort at the Infrared and Processing 
Analysis Center at the California Institute of Technology in 
Pasadena. "It will be exciting and rewarding to see the innovative 
ways the science and educational communities will use WISE in their 
studies now that they have the data at their fingertips." 

NASA's Jet Propulsion Laboratory (JPL) in Pasadena, Calif., manages 
and operates WISE for NASA's Science Mission Directorate in 
Washington. The mission was competitively selected under NASA's 
Explorers Program, which is managed by NASA's Goddard Space Flight 
Center in Greenbelt, Md. The science instrument was built by the 
Space Dynamics Laboratory in Logan, Utah, and the spacecraft was 
built by Ball Aerospace and Technologies Corp., in Boulder, Colo. 
Science operations, data processing and archiving take place at the 
Infrared Processing and Analysis Center at the California Institute 
of Technology in Pasadena. Caltech manages JPL for NASA. 

SEC CHARGES SENIOR EXECUTIVES WITH PERPETRATING STOCK LENDING SCHEME

The following excerpt is from the SEC website:
March 16, 2012
SEC Charges Senior Executives at California-Based Firm in Stock Lending Scheme
The Securities and Exchange Commission today charged two senior executives and their California-based firm with defrauding officers and directors at publicly-traded companies in an elaborate $8 million stock lending scheme.

The SEC alleges that Argyll Investments LLC’s purported stock-collateralized loan business is merely a fraud perpetrated by James T. Miceli and Douglas A. McClain, Jr. to acquire publicly traded stock from corporate officers and directors at a discounted price from market value, separately sell the shares for full market value in order to fund the loan, and use the remaining proceeds from the sale of the collateral for their own personal benefit. Miceli, McClain, and Argyll typically lied to borrowers by explicitly telling them that their collateral would not be sold unless a default occurred. However, since Argyll had no independent source of funds other than the borrowers’ collateral, Argyll often sold the collateral prior to closing the loan and then used the proceeds to fund it.

Also charged in the SEC’s complaint filed in U.S. District Court for the Southern District of California is a broker through which Argyll attracted potential borrowers. The SEC alleges that AmeriFund Capital Finance LLC and its owner Jeffrey Spanier violated the federal securities laws by brokering numerous transactions for Argyll while not registered with the SEC.

The SEC alleges that Miceli and McClain induced at least nine corporate officers and directors since 2009 to transfer ownership of millions of shares of stock to Argyll as collateral for purported loans. Miceli and McClain promised to return the stock to the borrowers when the loans were repaid. However, rather than retaining the collateral shares as required, they sold the shares without the borrowers’ knowledge before or soon after funding the loans. In many cases, they used the proceeds from the collateral sales to fund the loans. Because Argyll typically loaned the borrowers 30 to 50 percent less than the current market value of the shares, the company retained substantial proceeds even after funding the loans. As a result of the scheme, Argyll reaped more than $8 million in unlawful gains that Miceli and McClain used in part toward their personal expenses.

In addition to the fraud charges against Miceli, McClain, and Argyll, the SEC alleges that they violated the federal securities laws by improperly selling the collateral shares — all of which were restricted securities — into the public markets in unregistered transactions. They also failed to register with the SEC as brokers or dealers.

The SEC’s complaint alleges that Miceli, McClain, and Argyll violated Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 5(a) and 5(c) of the Securities Act of 1933, and that Spanier and AmeriFund violated Section 15(a) of the Exchange Act. The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and financial penalties.

The SEC’s investigation was conducted by Jacob D. Krawitz, Anthony S. Kelly, and Anik Shah, and supervised by Julie M. Riewe. The SEC’s litigation effort will be led by Dean Conway.
The SEC thanks the U.S. Attorney’s Office for the Southern District of California and the Federal Bureau of Investigation for their assistance with this matter.

MANAGEMENT CONSULTANT CHARGED WITH INSIDER TRADING IN NBTY INC STOCK

The following excerpt is from the SEC website: 
On March 15, 2012, the Securities and Exchange Commission charged a Chicago-based management consultant with insider trading based on confidential information about his client’s impending takeover of a Long Island-based vitamin company.

Sherif Mityas, a partner and vice-president at a global management consulting firm has agreed to pay more than $78,000 to settle the SEC’s charges. The proposed settlement is subject to the approval of Chief Judge Carol B. Amon of the U.S. District Court for the Eastern District of New York. In a parallel action, the U.S. Attorney’s Office for the Eastern District of New York today announced the unsealing of criminal charges against Mityas.

The SEC’s complaint, filed in federal court in Brooklyn, alleges that Mityas and others at his were retained by Washington, D.C.-based private equity firm The Carlyle Group to provide strategic advice related to the acquisition of NBTY Inc. That same month, Mityas purchased NBTY stock and subsequently tipped a relative who also bought NBTY shares. After Carlyle publicly announced its acquisition of NBTY, Mityas and his relative sold their NBTY stock for a combined profit of nearly $38,000.

According to the SEC’s complaint, Mityas’s firm was retained by Carlyle in May 2010. Only five days after being told during a May 17 conference call that NBTY was Carlyle’s acquisition target, Mityas moved $50,000 from a bank account he shared with a relative into a brokerage account they shared. On May 27, he transferred $49,000 from that brokerage account to a different relative’s brokerage account that he controlled as custodian and then used those funds to purchase 1,300 shares of NBTY at a cost of more than $44,000. On July 7, based on a tip from Mityas, yet another relative bought 440 shares of NBTY stock. That same relative also bought an additional 210 shares on July 14. Carlyle’s acquisition of NBTY was publicly announced the following day. Mityas sold all of his shares only three hours after the announcement was made, for an illegal profit of $25,896. The relative held the shares purchased on July 7 and 14 through the completion of the merger, and sold all of the shares on October 1 for an illicit profit of $12,035.
The SEC’s complaint charges Mityas with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The settlement, which is subject to court approval, would require Mityas to pay disgorgement of his and his relative’s ill-gotten gains totaling $37,931, plus prejudgment interest of $2,375.39, and a penalty of $37,931. The settlement also would bar Mityas from serving as an officer or director of a public company and permanently enjoin him from future violations of these provisions of the federal securities laws.

NSF SAYS GLOBAL SEA LEVEL COULD RISE 70 FEET

The photo ( credit NASA) and excerpt are from the National Science Foundation website:
Global Sea Level Likely to Rise as Much as 70 Feet in Future Generations 
March 19, 2012
Even if humankind manages to limit global warming to 2 degrees Celsius (3.6 degrees Fahrenheit)--as the Intergovernmental Panel on Climate Change recommends--future generations will likely have to deal with a completely different world.
One with sea levels 40 to 70 feet higher than at present, according to research results published this week in the journalGeology.

The scientists, led by Kenneth Miller of Rutgers University, reached their conclusion by studying rock and soil cores taken in Virginia, New Zealand and the Eniwetok Atoll in the north Pacific Ocean.

They looked at the late Pliocene epoch, 2.7 million to 3.2 million years ago, the last time the carbon dioxide level in Earth's atmosphere was at its current level and when atmospheric temperatures were 2 C higher than they are now.

"The difference in water volume released is the equivalent of melting the entire Greenland and West Antarctic Ice Sheets, as well as some of the marine margin of the East Antarctic Ice Sheet," said H. Richard Lane, program director in the National Science Foundation's Division of Earth Sciences, which funded the work.

"Such a rise of the modern oceans would swamp the world's coasts and affect as much as 70 percent of the world's population."

"You don't need to sell your beach real estate yet, because melting of these large ice sheets will take centuries to millennia," Miller said.

"The current trajectory for the 21st century global rise of sea level is 2 to 3 feet due to warming of the oceans, partial melting of mountain glaciers and partial melting of Greenland and Antarctica."

Miller said, however, that the results highlight the sensitivity of Earth's great ice sheets to temperature change, suggesting that even a modest rise in temperature would result in a large sea-level rise.

"The natural state of the Earth with present carbon dioxide levels is one with sea levels about 70 feet higher than now," he said.
Imagine what the future may well look like on a very blue planet.
Rutgers colleagues James Wright, James Browning, Yair Rosenthal, Sindia Sosdian and Andrew Kulpecz join Miller in the research.

Other co-authors are Michelle Kominz of Western Michigan University; Tim Naish of Victoria University of Wellington in New Zealand; Benjamin Cramer of Theiss Research in Eugene, Oregon; and W. Richard Peltier of the University of Toronto.