STATE DEPARTMENT FACT SHEET ON "THE LORD'S RESISTANCE ARMY" (LRA)

The following excerpt is from the U.S. State Department website:
The Lord's Resistance Army
Fact Sheet Office of the Spokesperson Washington, DC
March 23, 2012
The Lord’s Resistance Army (LRA) has been active since 1986, making it one of Africa’s oldest, most violent, and persistent armed groups. The LRA was formed in northern Uganda to fight against the Government of Uganda, and operated there from 1986 to 2006. At the height of the conflict, nearly two million people in northern Uganda were displaced.

Lacking public support, the LRA resorted to forcible recruitment to fill its ranks. A 2006 study funded by UNICEF estimated that at least 66,000 children and youth had been abducted by the LRA between 1986 and 2005. According to that study, most of these children were only held for a brief period of time and then released or escaped, but others were forced to become child soldiers or sex slaves and commit unspeakable acts.

Under increasing pressure, LRA’s leader Joseph Kony ordered the LRA to withdraw completely from Uganda in 2005 and 2006 and move west into the border region of the Democratic Republic of the Congo (DRC), the Central African Republic (CAR), and what would become the Republic of South Sudan. The LRA has continued to operate in this border region to date.

With the LRA’s departure, northern Uganda has undergone a significant positive transformation. More than 95% of the people who once lived in displacement camps have left to rebuild their lives. The United States has played a leading role, among donors, in supporting this Uganda-led recovery process.

Since 2000, more than 12,000 former LRA fighters and abductees have left the group and been reintegrated through Uganda’s Amnesty Commission. Many more have escaped and returned to their communities without going through reception centers.

From 2006 to 2008, representatives of the Government of Uganda and the LRA participated in negotiations in Juba, South Sudan, mediated by Southern Sudan officials. The U.S. State Department sent a senior official to support the talks. The negotiators finalized a peace agreement, but Joseph Kony refused on multiple occasions to sign. During 2008, the LRA increased attacks and abductions in the DRC and CAR. In late 2008, regional leaders agreed to undertake new military operations against the LRA. Since then, the Ugandan military has continued to pursue LRA groups across the region, in coordination with the other militaries.

As a result of military pressure and defections, the LRA’s core fighters have been reduced to an estimated 150-200, in addition to an unknown number of accompanying abductees, women and children. However, the LRA retains the capacity to cast a wide shadow across the region because of its brutality and the fear it arouses in local populations. According to the UN, there were 278 reported attacks attributed to the LRA in 2011. The UN estimates that more than 465,000 people in CAR, the DRC, and South Sudan were displaced or living as refugees during 2011 as a result of the LRA threat.

In 2005, the International Criminal Court issued arrest warrants for the LRA’s top leader Joseph Kony and four other top commanders – Vincent Otti, Okot Odhiambo, Dominic Ongwen, and Raska Lukwiya – for war crimes and crimes against humanity. Otti and Lukwiya are now believed to be dead, but the others remain at large.

The United Nations Security Council has repeatedly condemned ongoing attacks carried out by the LRA and commended the important efforts undertaken by militaries in the region to address the threat posed by the LRA. The UN has peacekeeping operations in South Sudan and the DRC whose mandates include helping to address the LRA.

On November 22, 2011, the African Union formally designated the LRA as a terrorist group and authorized an initiative to enhance regional cooperation toward the elimination of the LRA. The U.S. State Department has included the LRA on its “Terrorist Exclusion List” since 2001. In 2008, Joseph Kony was designated by the State Department as a “Specially Designated Global Terrorist,” under Executive Order 13324.

Over the past decade (FY 2002-FY 2011), the United States has provided more than $560 million in humanitarian assistance specifically benefiting LRA-affected populations in Uganda, CAR, the DRC and Sudan, in addition to countrywide assistance in the affected countries that could benefit individuals affected by LRA violence.

CFTC ORDERS GOLDMAN SACHS EXECUTION & CLEARING L.P. TO PAY $7 MILLION FOR SUPERVISION FAILURES HANDLING ACCOUNTS IT CARRIED

The following excerpt is from the Commodity Futures Trading Commission website: 
March 13, 2012
CFTC Orders Goldman Sachs Execution & Clearing, L.P., a Registered Futures Commission Merchant, to Pay $7 Million for Supervision Failures in Handling Accounts it Carried

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Goldman Sachs Execution & Clearing, L.P. (GSEC), a registered futures commission merchant based in New York, N.Y., agreed to pay a $5.5 million civil monetary penalty and $1.5 million in disgorgement to settle CFTC charges that it failed to diligently supervise accounts that it carried from about May 2007 to December 2009. The CFTC order also requires GSEC to cease and desist from violating CFTC regulations requiring diligent supervision. Additionally, the order states that GSEC represented in its settlement offer that it has made changes in light of the events discussed in the order, including implementing enhanced supervision policies, procedures, and training.

GSEC provided back-office and other services to some clients who themselves are broker-dealers, according to the order. One such broker-dealer (Broker-Dealer) offered memberships to investors to trade commodities in subaccounts of the Broker-Dealer carried by GSEC, the order finds. GSEC failed to diligently supervise the handling of these subaccounts when it did not investigate signs of questionable conduct by the Broker-Dealer, according to the order. For example, in May 2007, at the beginning of GSEC’s relationship with the Broker-Dealer, the Broker-Dealer’s lawyer represented that the Broker-Dealer would not engage in commodity futures trading and therefore would not need to register as a commodity pool operator with the CFTC. However, the order further finds that the Broker-Dealer had already opened a commodity futures trading account with GSEC and, thereafter, traded commodity futures. Nevertheless, GSEC did not investigate the apparent contradiction between the lawyer’s representations and the Broker-Dealer’s actions, the order finds.

The order states, as another example, that in August 2009, GSEC learned that the Broker-Dealer distributed to at least one of its members a subaccount statement that falsely purported to have been issued by a non-existent GSEC affiliate. In addition to noting that no such GSEC affiliate existed, GSEC told the Broker-Dealer that the statement created an inaccurate picture of the Broker-Dealer’s overall performance. Yet, as the order further finds, despite these signals of questionable conduct, GSEC simply instructed the Broker-Dealer not to issue such an account statement and accepted the Broker-Dealer’s assurances that it had not done so before and would not do so again. In December 2009, the Broker-Dealer provided to GSEC a draft disclosure statement that disclosed that the Broker-Dealer had carried negative capital balances of approximately $6.8 million since October 2009, according to the order.

From May 2007 to December 2009, GSEC received approximately $1.5 million of gross fees and commissions for transactions it executed and/or cleared on behalf of the Broker-Dealer, the order finds.

According to CFTC Division of Enforcement Director David Meister: “The CFTC’s rules mandate that registrants diligently supervise their employees and agents. When registrants become aware of questionable activity, they must not simply rely on assurances from interested parties and their representatives, but instead must diligently investigate. As this case indicates, the Commission will hold registrants accountable if they fail in this regard.”

The CFTC appreciates the assistance of the National Futures Association, the Chicago Board Options Exchange, and the U.S. Securities and Exchange Commission.
CFTC staff members responsible for this case are Laura Martin, Janine Gargiulo, Candice Aloisi, Judith Slowly, David Acevedo, Manal Sultan, Lenel Hickson, Lisa Hazel, Annette Vitale, Ronald Carletta, Stephen Obie, and Vincent McGonagle.

SEC FILES SUBPOENA ENFORCEMENT ACTION AGAINST WELLS FARGO

The following excerpt is from the SEC website:
March 23, 2012
SEC Files Subpoena Enforcement Action Against Wells Fargo for Failure to Produce Documents in Mortgage-Backed Securities Investigation
The Securities and Exchange Commission announced today that it has filed a subpoena enforcement action in the U.S. District Court for the Northern District of California against Wells Fargo & Company. According to the filing, the Commission is investigating possible fraud in connection with Wells Fargo’s sale of nearly $60 billion in residential mortgage-backed securities to investors. Pursuant to subpoenas dating back to September 2011, the bank was obligated to produce (and agreed to produce) documents to the Commission, but has failed to do so. Accordingly, the Commission filed its Application for an Order Requiring Compliance with Administrative Subpoenas.

The Commission’s action relates to its investigation into whether Wells Fargo made material misrepresentations or omitted material facts in a series of offerings between September 2006 and early 2008. The Commission’s application explains that, in connection with the securitization of the loans, a due diligence review of a sample of the loans in each offering was performed. Certain loans within that sample would be dropped from the offering for failure to comply with Wells Fargo’s loan underwriting standards. However, according to the Commission, it does not appear that Wells Fargo took any steps to address similar deficiencies in the remainder of the loans in the pool, which were securitized and sold to investors. The Commission is investigating, among other things, whether Wells Fargo misrepresented to investors that the loans being securitized complied with the bank’s loan underwriting standards.

The staff in the Commission’s San Francisco Regional Office issued several subpoenas to Wells Fargo since September 2011 seeking, among other things, materials related to due diligence and to the bank’s underwriting guidelines. According to the Commission, Wells Fargo agreed to produce the documents, and set forth a timetable for doing so, yet has failed to produce many of the materials.

Pursuant to its Application, the Commission is seeking an order from the federal district court compelling Wells Fargo to comply with the Commission’s administrative subpoenas and to produce all responsive materials to the staff. The Commission notes that it is continuing to conduct a fact-finding inquiry and has not concluded that anyone has broken the law.

PRESIDENT OBAMA VISITS U.S. TROOPS IN SOUTH KOREA

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

Obama Praises U.S. Troops' Legacy in South Korea

By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

WASHINGTON, March 25, 2012 - Visiting with U.S. troops stationed in South Korea near the demilitarized zone yesterday, President Barack Obama lauded their historic security role that assisted South Korea as it transformed itself into a democratic and prosperous nation in the years following the Korean War.

"When you think about the transformation that has taken place in South Korea during my lifetime, it is directly attributable to this long line of soldiers, sailors, airmen, marines [and] coast guardsmen who were willing to create the space and the opportunity for freedom and prosperity," said Obama, who's in South Korea to attend a Nuclear Security Summit in the capital city of Seoul.

At Camp Bonifas, located near the demilitarized zone that has divided North and South Korea since the Korean War armistice was signed in 1953, Obama told the troops they're serving on "freedom's frontier." About 28,000 U.S. troops are stationed in South Korea today.

"And the contrast between South Korea and North Korea could not be clearer, could not be starker, both in terms of freedom, but also in terms of prosperity," Obama said.

The president attributed South Korea's success to the "incredible" resilience, talents and hard work of their people.

"But it also has to do with you guys," Obama told troops. "And so my main message is the same, obviously, to every base that I go to ... all around the world, which is, I could not be prouder of what you're doing. Everybody back home could not be prouder of what you guys do each and every day -- the dedication, the professionalism that you show.

"But there's something about this spot in particular," he continued, "where there's such a clear line and there's such an obvious impact that you have for the good each and every day that should make all of you proud."

The president shared an anecdote of a conversation he'd had with South Korean President Lee Myung-bak.

"Last time I was here, I was having lunch with the president of South Korea, President Lee," Obama said. "And he talked about how he was a small child when the Korean War was taking place, and its aftermath, and the brutal poverty, the fact that they had nothing.

"And he went on to be an auto executive, and ultimately, the president of his country, and watch it grow," Obama continued. "And he specifically said to me -- and this was a private moment; he didn't say this in front of the press, ... he said, 'The only reason that was able to happen -- and I still think back to all those American soldiers and the sacrifices that they made.'"

Obama expressed his pride in the job U.S. troops have done in South Korea and said he is grateful for the legacy they are carrying on.

"We're proud of you," Obama told the U.S. service members, "and I hope that all your family back home knows how proud your commander-in-chief is of you."
 

DEFENSE DEPARTMENT PROFILES A MARINE WORKING TO KEEP AFGHANS SAFE

This photo and excerpt are from a Department of Defense American Forces Press Service e-mail:
Marine Corps Sgt. Matthew Branch communicates with other Marines before a joint convoy with Afghan truck drivers, March 13, 2012. U.S. Marine Corps photo by Sgt. John Jackson

Face of Defense: Marine Works to Keep Afghans Safe
By Marine Corps Sgt. John Jackson
1st Marine Logistics Group
HELMAND PROVINCE, Afghanistan, March 23, 2012 - For the past six months, Marine Corps Sgt. Matthew Branch has provided security for Afghan truck drivers while they deliver fuel to forward operating bases here.
Branch is the assistant security team leader for 1st Marine Logistics Group's 2nd Platoon, General Support Motor Transport Company, Marine Air-Ground Task Force Support Battalion 11.2. He is a Marine Corps reservist attached to 4th Engineer Maintenance Company in Omaha, Neb.
Back home, the Kearney, Neb., native is accustomed to arriving at work at 6 a.m. and leaving around 3 p.m. Here, he must be sure the enemy does not affect his mission or harm Afghan drivers.
Branch is a maintenance technician at a clothing distribution center in civilian life. Fixing broken equipment is his specialty, but he has become proficient in his duties here as well, he said.
"This is my third deployment," said Branch, 29. "I love to deploy. I like to be engaged with what the Marine Corps is doing."
During his current deployment, Branch has been responsible for getting fuel and other supplies to Marines stationed throughout Helmand province.
"Our mission is to safely and expediently transport combat essential gear and fuel to the Marines and service members throughout the [area of operations]," he said. "Our platoon has completed more than a dozen missions, and we have been very successful at getting our job accomplished."
In addition to making sure fuel and equipment is delivered safely, Branch and his Marines also interact and work with local civilians.
"There is a language barrier, but it was definitely a unique experience," he said. "It gave us all a great insight and a great way to experience the local culture."
With his company's seven-month deployment nearing its end, Branch said, he is looking forward to getting back to Nebraska to be with his family, but believes his time in Afghanistan has been a worthy accomplishment.
"I am ready to get in some good quality time with my wife and daughter," he said. "My wife is a very proud Marine Corps wife, and she is very supportive.
"This deployment has been a success. Any mission that was asked of the Marines, they got done and excelled at," he added. "We kept our convoys safe, the local nationals safe, and got our missions completed."

NATIONAL SCIENCE FOUNDATION ARTICLE SAYS NOISE AFFECTS PLANTS

                                         CREDIT:  BUREAU OF LAND MANAGEMENT
Human Noise Has Ripple Effects on Plants
March 20, 2012
A growing body of research shows that birds and other animals change their behavior in response to human noise, such as the din of traffic or the hum of machinery.
But human clamor doesn't just affect animals.

Because many animals also pollinate plants or eat or disperse their seeds, human noise can have ripple effects on plants, too, finds a new study reported in the March 21, 2012, issue of the journal Proceedings of the Royal Society B.

In cases where noise has ripple effects on long-lived plants like trees, the consequences could last for decades, even after the source of the noise goes away, says lead author Clinton Francis of the National Science Foundation (NSF) National Evolutionary Synthesis Center in Durham, North Carolina.
In previous studies, Francis and colleagues found that some animals increase in numbers near noisy sites, while others decline.

But could animals' different responses to human noise have indirect effects on plants, too?
To find out, the researchers conducted a series of experiments from 2007 to 2010 in the Bureau of Land Management's Rattlesnake Canyon Wildlife Area in northwestern New Mexico.

The region is home to thousands of natural gas wells, many of which are coupled with noisy compressors for extracting the gas and transporting it through pipelines.
The compressors roar and rumble day and night, every day of the year.
The advantage of working in natural gas sites is they allow scientists to study noise and its effects on wildlife without the confounding factors in noisy areas like roadways or cities, such as pollution from artificial light and chemicals, or collisions with cars.
As part of their research, Francis and colleagues first conducted an experiment using patches of artificial plants designed to mimic a common red wildflower in the area called scarlet gilia.

Each patch consisted of five artificial plants with three "flowers" each--microcentrifuge tubes wrapped in red electrical tape--which were filled with a fixed amount of sugar water for nectar.

To help in estimating pollen transfer within and between the patches, the researchers also dusted the flowers of one plant per patch with artificial pollen, using a different color for each patch.

Din levels at noisy patches were similar to that of a highway heard from 500 meters away, Francis said.

When the researchers compared the number of pollinator visits at noisy and quiet sites, they found that one bird species in particular--the black-chinned hummingbird--made five times more visits to noisy sites than quiet ones.
"Black-chinned hummingbirds may prefer noisy sites because another bird species that preys on their nestlings, the western scrub jay, tends to avoid those areas," Francis said.
Pollen transfer was also more common in the noisy sites.

If more hummingbird visits and greater pollen transfer translate to higher seed production for the plants, the results suggest that "hummingbird-pollinated plants such as scarlet gilia may indirectly benefit from noise," Francis said.

Another set of experiments revealed that noise may indirectly benefit some plants, but is bad news for others.
In a second series of experiments at the same study site, the researchers set out to discover what noise might mean for tree seeds and seedlings, using one of the dominant trees in the area--the piñon pine.

Piñon pine seeds that aren't plucked from their cones fall to the ground and are eaten by birds and other animals.

To find out if noise affected the number of piñon pine seeds that animals ate, the researchers scattered piñon pine seeds beneath 120 piñon pine trees in noisy and quiet sites, using a motion-triggered camera to figure out what animals took the seeds.
After three days, several animals were spotted feeding on the seeds, including mice, chipmunks, squirrels, birds and rabbits.

But two animals in particular differed between quiet and noisy sites--mice, which preferred noisy sites, and western scrub jays, which avoided them altogether.

Piñon pine seeds that are eaten by mice don't survive the passage through the animal's gut, Francis said, so the boost in mouse populations near noisy sites could be bad news for pine seedlings in those areas.

In contrast, a single western scrub jay may take hundreds to thousands of seeds, only to hide them in the soil to eat later in the year.

The seeds they fail to relocate will eventually germinate, so the preference of western scrub jays for quiet areas means that piñon pines in those areas are likely to benefit.
In keeping with their seed results, the researchers counted the number of piñon pine seedlings and found that they were four times as abundant in quiet sites compared with noisy ones.

It may take decades for a piñon pine to grow from a seedling into a full-grown tree, Francis said, so the consequences of noise may last longer than scientists thought.
"Fewer seedlings in noisy areas might eventually mean fewer mature trees, but because piñon pines are so slow-growing the shift could have gone undetected for years," he said.
"Fewer piñon pine trees would mean less critical habitat for the hundreds of species that depend on them for survival."

Other authors of the study include Catherine Ortega, most recently of Fort Lewis College, and Alexander Cruz and Nathan Kleist of the University of Colorado, Boulder.
The above photo and excerpt are from the National Science Foundation website: 

NEW SOUTHERN AFRICAN CONSERVATION PROJECT LAUDED BY THE U.S.

The following excerpt is from a U.S. State Department e-mail:
Kavango Zambezi Transfrontier Conservation Area Launch
Media Note Office of the Spokesperson Washington, DC
March 21, 2012
The United States Government applauds the Governments of Angola, Botswana, Namibia, Zambia, and Zimbabwe on the March 15th launch of the Kavango Zambezi Transfrontier Conservation Area. This launch was the result of three years of technical and legal consultations and is a shining example of regional coordination in Southern Africa. The United States would also like to congratulate the Southern African Development Community (SADC) for its guiding role in this conservation project.
The Kavango Zambezi Transfrontier Conservation Area will allow fragmented wildlife populations from all five countries to reconnect and roam across borders in an area spanning over 170,000 square miles (440,000 square kilometers). This project is a noteworthy step towards protecting the region’s unique wildlife and vital ecosystems as well as enhancing regional economic development.

INSIDE TRADER SETTLES CHARGES REGARDING 3 COM ACQUISITION KNOWLEDGE

The following excerpt is from the SEC website:
March 20, 2012
Defendant Michael Kimelman Settles SEC Insider Trading Charges
The U.S. Securities and Exchange Commission announced today that on March 16, 2012, The Honorable Richard J. Sullivan of the United States District Court for the Southern District of New York, entered a final judgment against Michael Kimelman in SEC v. Cutillo et al., 09-CV-9208, an insider trading case the SEC filed on November 5, 2009. See Lit. Rel. No. 21283 (Nov. 5, 2009). The SEC charged Kimelman, who was a trader at Lighthouse Financial Group, LLC, with trading on inside information regarding the announced acquisition of 3Com Corp. in September 2007.

In its complaint, the SEC alleged that Arthur Cutillo, a former attorney with the law firm Ropes & Gray LLP, misappropriated from his law firm material nonpublic information concerning, among other things, the potential acquisition of 3Com, and tipped the inside information, through another attorney, to Zvi Goffer, in exchange for kickbacks. The SEC further alleged that Goffer tipped the inside information to a number of individuals, including Kimelman, who traded based on the information, realizing illicit profits of approximately $270,000 in two personal trading accounts.

To settle the SEC’s charges, Kimelman consented to the entry of a final judgment that: (i) permanently enjoins him from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; and (ii) orders him to pay disgorgement of $273,255, plus prejudgment interest of $54,582. In a related SEC administrative proceeding, Kimelman consented to the entry of an SEC order barring him from association with any broker or dealer, investment adviser, municipal securities dealer or transfer agent, and barring him from participating in any offering of a penny stock. Kimelman previously was found guilty of securities fraud and conspiracy to commit securities fraud in a related criminal case, United States v. Michael Kimelman, 10-CR-0056 (S.D.N.Y.), and was sentenced to 30 months in prison and ordered to pay a criminal forfeiture of $289,079.

NEW U.S. EMBASSY OPENS IN BUCHAREST, ROMANIA

The following excerpt is from a U.S. State Department e-mail:
United States Dedicates New Embassy Compound in Bucharest, Romania
Media NoteOffice of the SpokespersonWashington, DC
March 22, 2012
Celebrating over 130 years of U.S.-Romanian diplomatic relations, U.S. Ambassador to Romania, Mark H. Gitenstein dedicated the new Embassy facility in Bucharest today. Romanian Senate President Vasile Blaga, Prime Minister Mihai-Razvan Ungureanu, and Managing Director of Operations at the Bureau of Overseas Buildings Operations (OBO) Leo Hession, participated in the ribbon-cutting ceremony, with Joseph R. “Beau” Biden, III, Attorney General of the State of Delaware, delivering the keynote address.
The new facility is located in the Baneasa commercial district, adjacent to the Tunari Forest, and consolidates Embassy staff to improve coordination and communication among the various embassy sections.

The Embassy’s permanent art collection curated by OBO’s Office of Art in Embassies, celebrates the exchange of artistic expression between the United States and Romania through paintings, photography, and sculpture by Romanian and American artists.
The new Embassy incorporates numerous sustainable features, most notably energy efficient building systems, high efficiency lighting, and the use of recycled and regional materials. A majority of the eleven-acre site is green space planted with drought tolerant species to reduce water consumption. The compound is registered with the Green Building Certification Institute and is entering the formal review process; it is the first LEED® registered government project in Romania.

American International Contractors (Special Projects), Inc., of Arlington, Virginia constructed the project, which was designed by Karn Charuhas Chapman & Twohey of Washington, D.C. The $153 million project generated hundreds of jobs in both the United States and Romania.

Since the 1999, as part of the Department’s Capital Security Construction Program, OBO has completed 88 new diplomatic facilities and has moved more than 27,000 people into safe, secure, and functional facilities. OBO has an additional 41 projects in design or construction.

BIG FLARE FROM AN OLD SOL

The photo and excerpt are from the NASA website:
NASA's Solar Dynamics Observatory (SDO) captured this image of an M7.9 class flare on March 13, 2012 at 1:29 p.m. EDT. It is shown here in the 131 Angstrom wavelength, a wavelength particularly good for seeing solar flares and a wavelength that is typically colorized in teal. The flare peaked at 1:41 p.m. EDT. It was from the same active region, No. 1429, that produced flares and coronal mass ejections the entire week. The region has been moving across the face of the sun since March 2, and will soon rotate out of Earth view. A solar flare is an intense burst of radiation coming from the release of magnetic energy associated with sunspots. Flares are our solar system’s largest explosive events. They are seen as bright areas on the sun and last from mere minutes to several hours. Scientists classify solar flares according to their x-ray brightness. There are 3 categories: X-, M- and C-class. X-class flares are the largest of these events. M-class flares are medium-sized; they can cause brief radio blackouts that affect Earth's polar regions. Compared to X- and M-class, C-class flares are small with few noticeable consequences on Earth. Image Credit: NASA/SDO

SECRETARY OF DEFENSE LEON PANETTA MEETS WITH NSA CYBER COMMAND

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

Panetta Visits NSA, Cyber Command Leadership

By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

WASHINGTON, March 24, 2012 - Defense Secretary Leon E. Panetta met today with the leader of the National Security Agency and U.S. Cyber Command, said Pentagon Press Secretary George Little.

"Today Secretary Panetta visited the National Security Agency and U.S. Cyber Command at Fort Meade, Maryland, where he met with General Keith Alexander, commander, U.S. Cyber Command, and director, National Security Agency, Central Security Service, and the organizations' leadership," Little said.

Little said Panetta observed technology demonstrations and received briefings about key issues in the cyber arena.

Panetta's "discussions focused on efforts to enhance information sharing across the Defense Department and the intelligence community," Little said.

According to Little, Panetta said he was deeply impressed by team efforts to defend America against cyber attack.

"The secretary acknowledged the critical and important work that the Cyber Command and NSA team are accomplishing, and continues to stress the importance of developing cyber capabilities to meet emerging cyber threats," Little said.

FORMER OWNER AND CEO SCOTT SALYER OF SK FOODS PLEADS GUILTY TO RACKETEERING AND PRICE FIXING IN CALIFORNIA

The following excerpt is from the Department of Justice Antitrust website: 
SACRAMENTO, Calif. — Frederick Scott Salyer, 56, of Pebble Beach, Calif., pleaded guilty today to racketeering and price fixing, U.S. Attorney Benjamin B. Wagner announced. Salyer entered his plea before U.S. District Judge Lawrence K. Karlton.

Between 1990 and 2009, Salyer was the CEO and owner of SK Foods LP, a grower, processor and international seller of tomato paste and other processed agricultural products with facilities in Monterey, Lemoore, Williams and Ripon, Calif. In his plea, Salyer admitted that he operated SK Foods as a racketeering organization. According to the plea agreement, from January 2004 to April 2008, Salyer encouraged food broker Randall Rahal to pay bribes and kickbacks to purchasing officers employed by SK Foods’s customers Kraft Foods, Frito-Lay and B&G Foods. The intent was to induce Kraft’s Robert Watson, Frito-Lay’s Richard Wahl and B&G’s Robert Turner to promote the interests of SK Foods over their employers’ interests. Salyer also admitted that at his direction, SK Foods routinely falsified the lab test results for its tomato paste. Salyer ordered former employees Alan Huey and Jennifer Dahlman to falsify tomato paste grading factors, and SK Foods lied about its product’s percentage of natural tomato soluble solids, mold count, production date and whether the tomato paste qualified as “organic.” Finally, Salyer admitted that he had discussed an illegal target price agreement with other sellers of tomato paste and, when another co-conspirator offered a lower price, Salyer got the co-conspirator to agree to withdraw that offer to a customer.

U.S. Attorney Benjamin B. Wagner said: “Food grown in California’s Central Valley feeds people all over the United States; agriculture and food processing are critical to this region’s economy. This case of corporate corruption was met with the government’s full arsenal of law enforcement tools, which included grand jury process, an informant operation, wiretaps, search warrants, computer forensics and arrests. This office and its partners will continue to use these tools to attack fraud and corruption wherever it is detected in this district.”

“The Antitrust Division has made antitrust enforcement in the agriculture sector a priority,” said Acting Assistant Attorney General Sharis A. Pozen in charge of the Department of Justice’s Antitrust Division. “The division is committed to continuing to work with its law enforcement partners to crack down on illegal price fixing conspiracies that affect products used by consumers in their everyday lives.”

“Corruption in any form is despicable, but when such occurs within the food industry, it erodes public trust in products and threatens the industry as a whole,” said Herbert M. Brown, Special Agent in Charge of the FBI’s Sacramento Field Office. “The FBI continues to tirelessly combat white collar crime that is motivated by unscrupulous greed.”

“Today’s guilty plea is the result of a combined law enforcement effort against a corrupt organization motivated by greed and profit,” said Internal Revenue Service-Criminal Investigation (IRS-CI) Assistant Special Agent in Charge Rick Goss. “These crimes touched the lives of many unsuspecting citizens and the public should know that we will hold accountable those individuals who put personal financial gain above the safety and well-being of the general public.”

“The Food and Drug Administration-Office of Criminal Investigations is fully committed to investigating and supporting the prosecution of those who defraud consumers by manufacturing and selling adulterated foods to an unsuspecting public for economic gain. We continue to look forward to working with our law enforcement partners and commend the U.S. Attorney’s Office for their diligence,” said Thomas Emerick, Special Agent in Charge, Food and Drug Administration (FDA)-Office of Criminal Investigations, Los Angeles Field Office.

Salyer’s plea caps an investigative effort that began in August 2006, when federal agents executed a search warrant at the home of Anthony Manuel, an SK Foods employee who had embezzled approximately $1 million from his former employer, a competitor of SK Foods. Manuel promptly confessed to the embezzlement and later told agents about the crimes to which Salyer and others have now pleaded guilty. In 2007 and 2008, Manuel recorded conversations with SK Foods executives, including Salyer, and provided documents corroborating his account of the crimes being committed at SK Foods.  Wiretaps of Rahal telephones revealed that Rahal was discussing bribery and food mislabeling with Salyer and other senior officers of SK Foods. The wiretap also confirmed that Rahal was bribing Watson, Wahl, Turner and Safeway Inc. employee Michael Chavez. On April 18, 2008, agents of the FBI, IRS-CI and FDA Office of Criminal Investigations executed search warrants at the offices of SK Foods and at Salyer’s residence in Pebble Beach, seizing documents and copying SK Foods’s computer servers.

In 2009, the bribe recipients and many of Salyer’s subordinates at SK Foods pleaded guilty before Judge Karlton. Also that year, creditors forced SK Foods into bankruptcy. According to court documents, in late 2009, Salyer moved more than $3 million to Andorra and made a $50,000 deposit on a condominium there. Andorra is a small principality in the Pyrenees Mountains between France and Spain and has no extradition treaty with the United States. When agents learned of Salyer’s plans, they obtained an arrest warrant for him, which was executed on Feb. 4, 2010, when Salyer made what was to have been a short visit back to the United States. Salyer was jailed as a flight risk until Sept. 3, 2010, when he was released to house arrest after posting a $6 million bond.

Salyer was indicted by a federal grand jury on Feb. 18, 2010, with a superseding indictment brought against him on April 29, 2010. According to court documents, several issues have been litigated, such as whether the evidence against Salyer had been obtained lawfully. Judge Karlton ultimately rejected Salyer’s efforts to suppress the evidence gathered by Manuel. Judge Karlton also upheld the wiretap and search warrant applications.

Salyer is scheduled to be sentenced by Judge Karlton on July 10, 2012, at 9:15 a.m EDT. The maximum statutory penalty for a Racketeer Influenced and Corrupt Organizations (RICO) violation is 20 years in prison and a $250,000 fine. The maximum statutory penalty for price fixing is 10 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. In the plea agreement, Salyer may argue for a sentence as low as four years and the government may argue for a sentence up to seven years. Salyer also agrees to forfeit to the United States all of his interest in the $3 million that he transferred to Andorra.

This is the 11th guilty plea in an extensive investigation by the FBI, IRS-CI, FDA Office of Criminal Investigations and the Antitrust Division of the U.S. Department of Justice. The case is currently being prosecuted by Assistant U.S. Attorneys Matthew D. Segal, R. Steven Lapham and Jared C. Dolan, and Antitrust Division Trial Attorneys Anna T. Pletcher and Tai Milder.