NAVY CRACKS DOWN ON "SPICE", "BATH SALTS"

FROM:  U.S. NAVY
120329-N-WP746-068 JOINT BASE PEARL HARBOR-HICKAM (March 29, 2012) The Criminal Investigative Division at Commander, Navy Region Hawaii, displays examples of seized evidences of synthetic drugs, commonly known as "Spice" as part of an awareness campaign and training against its usage. Spice looks similar to marijuana or oregano and is used for its psychoactive and hallucinogenic effects. Spice and other designer drugs are falsely marketed by manufacturers in commercial-like packaging as a safe way to get high while avoiding drug testing. (U.S. Navy photo by Mass Communication Specialist 2nd Class Mark Logico/Released) 
Navy Weeds Out Users Of Designer Drugs 
MILLINGTON, Tenn. (NNS) -- Navy's implementation of synthetic drug testing for synthetic chemical compounds like "Spice" and "Bath Salts" is helping the service close ranks on Sailors who use these prohibited and dangerous substances, officials said July 2.

"Navy has zero tolerance for drug abuse. Drug abuse, including use of designer drugs and synthetic compounds, by members of the Navy is incompatible with high standards of performance, military discipline, and readiness as embodied by of 21st Century Sailors and Marines," said Rear Adm. Tony Kurta, director, military personnel plans and policy.

Navy reviews its testing of synthetic compounds continuously, and also continually responds to production of new controlled and synthetic compounds, changing testing procedures and pacing the changes being made by producers.

Navy has analyzed more than 3,300 urine samples for synthetic chemical compounds since testing began in March, with 101 samples testing positive. Authorized testing under the synthetic drug testing program is conducted under member consent, command directed, unit and/or subunit sweep.

NCIS will be notified of every positive sample for possible further investigation with a view towards potential disciplinary or adverse administrative action by the service member's command.

Spice is a synthetic chemical compound that is sold as herbal incense and mimics the effects of the drug marijuana. A ban was placed on five synthetic cannabis compounds commonly found in the designer drug Spice, but also sold under different names.

Some of the short-term effects include auditory and visual hallucinations, painless head pressure, panic attacks, time distortion and delirium. Long-term effects from the designer drug can include permanent physical impairment, mental illness or death.

Another synthetic chemical compound, bath salts are sold under the common names: Vanilla Sky, Ivory Wave, Pure Ivory, Purple Wave, Charge+, Ocean Burst, and Sextacy. Bath salts are a potentially addictive powdered substance that is snorted, smoked or injected. They can have an adverse effect on the heart, circulation, nervous system, similar to ecstasy or cocaine, and result in lethal overdose.

The unlawful possession or use by Department of the Navy personnel of controlled substance analogues (designer drugs), natural substances, chemicals wrongfully used as inhalants, propellants, prescribed or over-the-counter medication or pharmaceutical compound with the intent to induce intoxication, excitement or stupefaction of the central nervous system is prohibited via SECNAVINST 5300.28D. Violators are subject to punitive action under the Uniform Code of Military Justice, Article 92.

Navy's Synthetic Drug Testing Operating Guide is posted on the Navy Alcohol and Drug Abuse Prevention Office (NADAP) website and contains procedures for commands to request synthetic drug testing and synthetic drug testing information.

The Navy's zero-tolerance policy towards drug use is a key contributor to the readiness area of the 21st Century Sailor and Marine. To view the guide or for more news from NADAP, visitwww.nadap.navy.mil.

HHS GRANTS $971 MILLION FOR PUBLIC HEALTH DISASTER PREPAREDNESS

Photo Credit:  Wikimedia.
FROM:  DEPARTMENT OF HEALTH AND HUMAN SERVICES
HHS grants bolster health care and public health disaster preparedness
Systems prepared for emergencies can provide better daily care
The Department of Health and Human Services has awarded more than $971 million to continue improving preparedness and health outcomes for a wide range of public health threats within every state, eight U.S. territories, and four of the nation’s largest metropolitan areas.

“Health care and public health systems that are prepared to respond successfully to emergencies and recover quickly from all hazards are also able to deliver services more effectively and efficiently every day,” said Dr. Nicole Lurie, HHS assistant secretary for preparedness and response. “Having systems in place to provide better treatment for disaster survivors and improved public health for our communities also leads to better health outcomes on a day-to-day basis.”

The funding awards included a total of approximately $352 million awarded for the Hospital Preparedness Program (HPP) cooperative agreement and more than $619 million awarded for the Public Health Emergency Preparedness (PHEP) cooperative agreement.

Administered by the HHS Office of the Assistant Secretary for Preparedness and Response (ASPR), HPP funding supports preparedness for health care systems, health care coalitions, and health care organizations. HHS’ Centers for Disease Control and Prevention administers PHEP funding to support the preparedness of state, local, and territorial public health systems.

HPP and PHEP funding helps recipients build and sustain public health and health care preparedness capabilities outlined in ASPR’s Healthcare Preparedness Capabilities: National Guidance for Healthcare System Preparedness (PDF – 902 KB) and in CDC’s Public Health Preparedness Capabilities: National Standards for State and Local Planning. These documents establish standards for protecting human health and national health security.

For the first time, the HPP and PHEP funds are being awarded jointly, encouraging cooperation between the nation’s health care and public health systems. This change follows a year-long effort by ASPR and CDC to align the two federal preparedness programs. These programs represent critical sources of funding and support for public health and health care preparedness systems.

Improved coordination among federal emergency preparedness programs is a high priority of HHS and other federal entities, as well as for HPP and PHEP awardees. In December 2010, ASPR, CDC, and other federal partners began developing strategies to better align grants with public health and health care preparedness components.
“State and local agencies have made tremendous progress over the past decade in building and sustaining public health and health care preparedness capabilities,” Dr. Lurie said. "The integration fostered by HPP and PHEP alignment is important in streamlining and strengthening the day-to-day relationships and cross-sector cooperation that are critical to achieving a resilient health system ready to face any health hazard and capable of providing the affordable, high-quality daily care that all Americans deserve.”

With aligned HPP and PHEP cooperative agreement programs, states and communities can more easily, efficiently, and effectively conduct joint planning, exercising, and program operations. These activities are vital in preparing communities to respond and recover from emergencies and help communities manage health care and public health on a daily basis.

Dr. Lurie noted that as access to health care increases, more Americans are likely to seek care from primary care providers and health clinics to address these day-to-day health issues rather than visiting emergency departments. With fewer people seeking basic care in emergency rooms, hospitals can care for a greater number of patients during emergencies.
ASPR and CDC aligned HPP and PHEP cooperative agreements to advance all-hazards preparedness and national health security, promote responsible stewardship of federal funds, and reduce the administrative burden for grant recipients. The programs support complementary preparedness capabilities and performance measures, use the same processes for grants administration, technical assistance and data management, use common reporting requirements, and have compatible IT systems.

While closely aligned in many aspects, HPP and PHEP will continue to remain individual programs, in accordance with authorizing legislation. HPP and PHEP budgets also will remain separate, to ensure accountability for the statutory requirements of each separate funding stream.

This alignment has resulted in several key changes for the 2012 HPP-PHEP grant cycle. Among the changes are a single HPP-PHEP funding opportunity announcement, funding application, and grant award, as well as a single grants administration agency, CDC’s Procurement and Grants Office. An aligned grant cycle is also being implemented, with the annual HPP-PHEP grant cycle beginning each July 1 and ending on June 30 of the following year.

To learn more about HPP and PHEP including grant awards to individual states, territories or localities, visithttp://www.cdc.gov/about/organization/ophpr.htm.

FUND ADVISER SUED BY SEC FOR ALLEGED BREACH OF DUTY

FROM:  SECURITIES AND EXCHANGE COMMISSION
SEC Sues Fund Adviser for Fees Charged in Breach of Duty Under the Investment Company Act
Washington, D.C., June 26, 2012 — The Securities and Exchange Commission today sued AMMB Consultant Sendirian Berhad (AMC), a Malaysian investment adviser, alleging that for more than a decade, AMC charged a U.S. registered fund for advisory services that AMC did not provide. The SEC alleges that by doing so, AMC breached its fiduciary duty with respect to compensation under the Investment Company Act of 1940.

Kuala Lumpur-based AMC served as a sub-adviser to the Malaysia Fund, Inc., a closed-end fund that invests in Malaysian companies, whose principal investment adviser is Morgan Stanley Investment Management, Inc. (MSIM). The SEC alleges that AMC misrepresented its services during the fund’s annual advisory agreement review process for each year for more than 10 years, and AMC collected fees for advisory services that it did not provide.

AMC, a unit of AMMB Holdings Berhad, one of Malaysia’s largest banking groups, agreed to pay $1.6 million to settle the SEC’s charges, without admitting or denying the allegations. The case follows the SEC’s recent related action against the Malaysia Fund’s primary adviser, MSIM, and is part of an inquiry into the investment advisory contract renewal process by the SEC Enforcement Division’s Asset Management Unit.
“We are committed to ensuring that advisers to registered funds adhere to their fiduciary duty with respect to the receipt of compensation. Here, AMC breached that duty by charging fees for services that were not rendered,” said Bruce Karpati, Chief of the Asset Management Unit in the SEC’s Division of Enforcement.

AMC’s advisory fees were approved each year from 1996 to 2007 as part of the “15(c) process,” a reference to Section 15(c) of the Investment Company Act of 1940, which requires a registered fund’s board to annually evaluate the fund’s advisory agreements, and advisers to provide the board with information reasonably necessary to make that evaluation.

According to the SEC, AMC submitted a report to the Malaysia Fund’s board of directors each year that falsely claimed that AMC was providing specific advice, research, and assistance to MSIM for the benefit of the fund. In reality, the SEC’s complaint said AMC’s services were limited to providing two monthly reports based on publicly available information that MSIM did not request or use. Moreover, the SEC alleged that AMC failed to adopt and implement adequate policies, procedures, and controls over its advisory business, contrary to certifications provided to the fund’s directors in 2006 and 2007. AMC’s advisory agreement with the fund was terminated in early 2008 after the SEC’s examination staff inquired about the services AMC was purportedly providing to the fund.

The SEC’s complaint, filed in the U.S. District Court for the District of Columbia, alleges that AMC breached its fiduciary duty with respect to the receipt of compensation within the meaning of Section 36(b) of the Investment Company Act of 1940. The SEC also alleges that AMC violated Sections 206(2) and (4) of the Investment Advisers Act of 1940, and Rule 206(4)-7 thereunder, and Section 15(c) of the Investment Company Act of 1940. AMC consented to a judgment that bars it from violating these provisions in the future. AMC has also agreed to disgorge $1.3 million of its advisory fees paid by the fund and pay a $250,000 penalty.

Chad Alan Earnst, Christine Lynch, and Jessica Weiner, of the Enforcement Division’s Asset Management Unit staff, conducted the investigation along with Tonya Tullis and Edward D. McCutcheon. Karen Stevenson, Susan Schneider, and Dennis Delaney conducted the related examinations.

The SEC acknowledges the assistance of the Securities Commission of Malaysia and the Monetary Authority of Singapore.

U.S. SECRETARY OF STATE PANETTA WELCOMES OPENING OF SUPPLY LINES BY PAKISTAN

FROM:  AMERICAN FORCES PRESS SERVICE

By Cheryl Pellerin
WASHINGTON, July 3, 2012 - Defense Secretary Leon E. Panetta today welcomed Pakistan's decision to open ground lines of communication on the border with Afghanistan that have been closed since November.
Secretary of State Hillary Rodham Clinton announced the decision after a telephone call this morning with Pakistani Foreign Minister Hina Rabbani Khar.


"As I have made clear," Panetta said, "we remain committed to improving our partnership with Pakistan and to working closely together as our two nations confront common security challenges in the region."


On the call with Khar, Clinton said, "I once again reiterated our deepest regrets for the tragic incident in Salala last November. I offered our sincere condolences to the families of the Pakistani soldiers who lost their lives."


Clinton and Khar acknowledged the mistakes that resulted in the loss of Pakistani military lives, she added.


"We are sorry for the losses suffered by the Pakistani military," she added. "We are committed to working closely with Pakistan and Afghanistan to prevent this from ever happening again."


In reopening the ground lines of communication, Pakistan will not charge transit fees in the larger interest of peace and security in Afghanistan and the region, Clinton said.


"This is a tangible demonstration of Pakistan's support for a secure, peaceful and prosperous Afghanistan and our shared objectives in the region," she said, adding that the move will help the United States and the International Security Assistance Force conduct the planned drawdown at a much lower cost.
"This is critically important to the men and women who are fighting terrorism and extremism in Afghanistan," Clinton said.


Khar said no lethal equipment will transit Pakistan into Afghanistan unless it is meant to equip the Afghan national security force.


During the call, Khar and Clinton discussed the importance of taking coordinated action against terrorists who threaten Pakistan, the United States and the region, she said.


Clinton said she and Khar also discussed supporting Afghanistan's security, stability and efforts towards reconciliation, and continuing to work together to advance the two nations' many other shared interests, from increasing trade and investment to strengthening our people-to-people ties.


"Our countries should have a relationship that is enduring, strategic and carefully defined, and that enhances the security and prosperity of both our nations and the region," the secretary said.


U.S. and Pakistani troops are in a fight against a common enemy, she said, and have enhanced counterterrorism cooperation against terrorists that threaten both countries, with the goal of defeating al-Qaida in the region.


As the call ended, Clinton said, "I reiterated our deep appreciation to the government and the people of Pakistan for their many sacrifices and their critical contribution to the ongoing fight against terrorism and extremism."

C-130 MODULAR AIRBORNE FIREFIGHTING SYSTEM FLEET RESUMES OPERATIONS

Photo:  C130 Aircraft Fighting Wildfire.  Credit:  U.S. Air Force.
FROM:  U.S. DEPARTMENT OF DEFENSE
From a U.S. Northern Command News Release
PETERSON AIR FORCE BASE, Colo., July 3, 2012 – The military’s C-130 Modular Airborne Fire-Fighting System fleet will resume operations today to support the National Interagency Fire Center and its firefighters battling wildfires in several states, U.S. Northern Command officials said.
Operational flying was suspended yesterday to review flying and safety procedures after the July 1 crash of a MAFFS C-130 while fighting South Dakota's White Draw Fire. An official investigation into the crash is ongoing.

SOYUZ TMA-03M SPACECRAFT LANDS

The Soyuz TMA-03M spacecraft is seen as it lands with Expedition 31 Commander Oleg Kononenko of Russia and Flight Engineers Don Pettit of NASA and Andre Kuipers of the European Space Agency in a remote area near the town of Zhezkazgan, Kazakhstan, on Sunday, July 1, 2012. Pettit, Kononenko and Kuipers returned from more than six months onboard the International Space Station where they served as members of the Expedition 30 and 31 crews. Image Credit: NASA/Bill Ingalls

U.S. GOVERNMENT PROGRAM BOLSTERS RELATIONS IN SOUTH AMERICAN NATIONS

FROM:  AMERICAN FORCES PRESS SERVICE
 Excitement builds in El Rancho, Guatemala, as hundreds of local residents gather for the opening of a new medical clinic built by U.S. service members during U.S. Southern Command's Beyond the Horizons humanitarian civic assistance exercise, June 26, 2012. DOD photo by Donna Miles  

'Beyond the Horizons' Strengthens Bonds in Guatemala, Honduras
By Donna Miles
EL RANCHO, Guatemala, June 27, 2012 - Celebration filled this tiny mountain town yesterday, as hundreds of residents pulled out all the stops to mark the opening of a new medical clinic and to thank the U.S. service members who built it as part of U.S. Southern Command's Beyond the Horizons 2012 mission.

Women and young children dressed in a rainbow of colors began gathering long before the ceremony, with the local men looking on proudly as they awaited a musical procession toward the balloon- and ribbon-decked clinic. Schoolchildren waved Guatemalan and U.S. flags as they led members of Naval Mobile Construction Battalion 23 up a steep hill toward the gleaming blue-and-white structure the Seabees spent the last two and a half months building.

The Seabees -- Navy reservists based at Fort Belvoir, Va. -- are among almost 1,300 soldiers, airmen and sailors who have brought engineering, construction and health care services to Guatemala and Honduras since Beyond the Horizon kicked off in April.

In Guatemala alone, they collectively built a school and two new medical clinics, including the one here. They also renovated two other schools and a medical clinic.

The troops also sponsored three medical readiness exercises, providing free medical care in three local communities.

Army Maj. Orlando Ortega, Southcom's lead planner for Beyond the Horizons and its New Horizons sister mission in Peru, called the comprehensive humanitarian civic assistance exercises an opportunity for U.S. service members to receive valuable engineering and medical training while fostering stronger partnerships in the region.

The 90-day exercises are Southcom's largest involving ground troops in its area of responsibility, which includes Central and South America and the Caribbean. Many of the participants have been National Guard soldiers and airmen who served two- to four-week rotations in Guatemala or Honduras.

"These are joint ventures, with all services in the United States and within the host nation participating together and learning from each other," Ortega said.

U.S. Army South is leading the Beyond the Horizons exercises in Honduras and Guatemala, and U.S. Air Forces Southern is leading New Horizons.

With each concrete block laid and each patient treated, the missions help build closer relationships between the United States and its regional partners while demonstrating long-term U.S. commitment, Ortega said.

"This is a win-win situation for everyone. Our troops get training. The host nation forces get training. And in doing so, they leave something very tangible behind," he said. "And the local people appreciate that. You can see it on their faces, the fact that they know this is going to improve their communities."

Army Lt. Col. John Findley, a Missouri National Guardsman who served as commander of the Partnership of the Americas Cooperation and Collaboration Element overseeing the exercise in Guatemala, said the biggest reward was watching relationships unfold between the U.S. forces and the Guatemalans.

"The thing I really liked was the exchanging of experiences," he said. Guatemalan and U.S. doctors shared expertise as they treated cases that most medical staffs simply don't see in the United States. National Guard engineers, many of whom had focused predominantly on route-clearance operations in Afghanistan and Iraq, got a chance to return to basic engineering skills.

"Our biggest goal is to ensure that the soldiers, airmen and Seabees got valuable training in their job specialties," Findley said. "But there's also been another huge takeaway: that sense of accomplishment that comes from doing something good for a community and seeing the real benefit of that work."

Findley said he enjoyed watching the Guatemalan children grow attached to him and his troops. "At first, the kids were scared of us, but now it's all big smiles, high-fives and knuckle bumps," he said.

Naval Mobile Construction Battalion 23 experienced that growing acceptance as they put their skills to work on the 23-by-60-foot, concrete-block medical clinic here. It includes offices and a kitchen, and will serve 30,000 to 40,000 people in six communities.
The Seabees got so excited about the project that they took it the extra mile, also redoing the water and septic system that serves the facility and building a three-stall latrine, benches from scrap wood and a cooking pit, explained Navy Lt. Jeff Dong, the officer in charge.

"You know that you are making a sacrifice of your own time, but when you see how much it will do, it gives you a good, warm feeling," he said. "To be able to do something like this that will make such a difference for so many people is really rewarding."
Navy Petty Officer 2nd Class Al Baldassarre, participating in his first humanitarian assistance mission, said he enjoyed watching the growing anticipation among the local residents as the clinic took shape.

While knowing he and his fellow Seabees were making a valuable contribution to the community, Navy Petty Officer 1st Class Jeff Ambrose, lead petty officer for the project, said the experience also underscored his unit's full range of capabilities. "It reinforced that we actually are a mobile battalion, and that we can pick up and go anywhere and have the capability of doing our job," he said.

As Guatemalan community leaders expressed thanks to the United States and its military during yesterday's ceremony, Findley said everyone ultimately benefited through the Beyond the Horizons experience.

"By participating in this project, our soldiers have gained valuable experiences and opportunities that will be a lasting legacy of our partnership together," he told the group.
That sentiment is captured on a plaque affixed outside the front door of the new medical clinic: "This project was possible, thanks to the cooperation of the governments of Guatemala and the United States of America as a symbol of friendship between our countries."

"Beyond the Horizons is just part of the progress we can achieve together" as partners, Findley told yesterday's gathering. "I am confident that, working together, there is nothing we cannot achieve."

SECRETARY OF STATE CLINTON OFFERS CONDOLENCES FOR PAKISTANIS KILLED IN SALALA INCIDENT

FROM:  U.S. STATE DEPARTMENT
Statement by Secretary Clinton on her Call With Pakistani Foreign Minister Khar
Press Statement Hillary Rodham Clinton
Secretary of State Washington, DC
July 3, 2012
This morning, I spoke by telephone with Pakistani Foreign Minister Hina Rabbani Khar.
I once again reiterated our deepest regrets for the tragic incident in Salala last November. I offered our sincere condolences to the families of the Pakistani soldiers who lost their lives. Foreign Minister Khar and I acknowledged the mistakes that resulted in the loss of Pakistani military lives. We are sorry for the losses suffered by the Pakistani military. We are committed to working closely with Pakistan and Afghanistan to prevent this from ever happening again.

As I told the former Prime Minister of Pakistan days after the Salala incident, America respects Pakistan’s sovereignty and is committed to working together in pursuit of shared objectives on the basis of mutual interests and mutual respect.

In today’s phone call, Foreign Minister Khar and I talked about the importance of taking coordinated action against terrorists who threaten Pakistan, the United States, and the region; of supporting Afghanistan’s security, stability, and efforts towards reconciliation; and of continuing to work together to advance the many other shared interests we have, from increasing trade and investment to strengthening our people-to-people ties. Our countries should have a relationship that is enduring, strategic, and carefully defined, and that enhances the security and prosperity of both our nations and the region.

The Foreign Minister and I were reminded that our troops – Pakistani and American – are in a fight against a common enemy. We are both sorry for losses suffered by both our countries in this fight against terrorists. We have enhanced our counter-terrorism cooperation against terrorists that threaten Pakistan and the United States, with the goal of defeating Al-Qaida in the region.

In addition, I am pleased that Foreign Minister Khar has informed me that the ground supply lines (GLOC) into Afghanistan are opening. Pakistan will continue not to charge any transit fee in the larger interest of peace and security in Afghanistan and the region. This is a tangible demonstration of Pakistan’s support for a secure, peaceful, and prosperous Afghanistan and our shared objectives in the region. This will also help the United States and ISAF conduct the planned drawdown at a much lower cost. This is critically important to the men and women who are fighting terrorism and extremism in Afghanistan. Foreign Minister Khar has informed me that, consistent with current practice, no lethal equipment will transit the GLOC into Afghanistan except for equipping the ANSF. In concluding the call, I reiterated our deep appreciation to the Government and the people of Pakistan for their many sacrifices and their critical contribution to the ongoing fight against terrorism and extremism.

LABOR DEPARTMENT ANNOUNCES GRANTS FOR HOMELESS VET TRAINING

FROM:  DEPARTMENT OF LABOR NEWS RELEASE 
Labor Department Announces Grants to Train Homeless Vets
From a Department of Labor News Release
WASHINGTON, July 2, 2012 - The Labor Department today awarded 90 grants totaling more than $20 million to fund job training and support services that officials said will help more than 11,000 veterans succeed in civilian careers.
The grants are being awarded through the department's Homeless Veterans Reintegration Program.

"Americans who have served their country should not find themselves without a home," Labor Secretary Hilda L. Solis said. "The grants announced today will help these heroes find good jobs and take us one step closer to the goal of ending veteran homelessness altogether."

The grants are second- and third-year awards to state and local workforce investment boards, local public agencies and nonprofit organizations -- including faith-based and community organizations -- that demonstrated satisfactory performance during the past year, officials said. Some of the grants are set aside to serve formerly incarcerated veterans, female veterans and veterans with families who are homeless.

Homeless Veterans Reintegration Program grants provide occupational, classroom and on-the-job training, as well as job search and placement assistance, including follow-up services. Grantees are expected to maximize available assistance and find good jobs for veterans by coordinating efforts and resources with the Health and Human Services, Veterans Affairs, and Housing and Urban Development department, as well as other national, state and local agencies, in accordance with VA's five-year plan to end homelessness for veterans and their families, officials said.

Last month, Solis announced the award of 64 grants through the Homeless Veterans Reintegration Program. Those grants -- which are separate from the 90 receiving funds today -- are first-year awards totaling more than $15 million, aimed at providing about 8,600 homeless veterans nationwide with job training.

A NAVY RESEARCH FLOATING INSTRUMENT PLATFORM PARTIALLY SUBMERGED

FROM:  U.S. NAVY
The Floating Instrument Platform, or FLIP, is partially submerged in the Pacific Ocean. the 355-foot research vessel, owned by the Office of Naval Research (ONR) and operated by the Marine Physical Laboratory at Scripps Institution of Oceanography at University of California, is celebrating 50 years of operation. FLIP conducts investigations in acoustics, oceanography, meteorology and marine mammal observation. U.S. Navy photo by John F. Williams (Released) 120630-N-PO203-274

ARIZONA COMPANY TO PAY $10 MILLION TO RESOLVE FALSE CLAIMS ACT ALLEGATIONS

FROM:  U.S. DEPARTMENT OF JUSTICE
Monday, July 2, 2012
Arizona-based Nextcare Inc. to Pay US $10 Million to Resolve False Claims Act AllegationsAllegedly Charged for Unnecessary Testing and Inflated Billing for Urgent Care Medical Services
NextCare Inc., an Arizona-based company, has agreed to pay $10 million to settle federal and state allegations that it submitted false claims, the Justice Department announced today.  NextCare is an owner of a chain of urgent care facilities with locations in Arizona, Colorado, Texas, North Carolina, Ohio and Virginia.

The settlement resolves allegations that NextCare submitted false claims to Medicare, TRICARE and the Federal Employees Health Benefits Program, as well as the Medicaid programs of Colorado, Virginia, Texas, North Carolina and Arizona, by billing for unnecessary allergy, H1N1 virus and respiratory panel testing.   The United States also alleged that NextCare inflated billings for urgent care medical services in the years under review, a practice known as upcoding.

“This settlement demonstrates the Justice Department’s commitment to ensuring that federal health care dollars are spent appropriately,” said Stuart Delery, Acting Assistant Attorney General for the Civil Division. “Health care providers who administer unnecessary services or who overcharge for care will be held accountable.”

Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina, noted that, “Today’s $10 million settlement with NextCare demonstrates our commitment to putting a stop to improper billing practices that exploit Medicare and drain vital resources from our health care system.   NextCare’s upcoding and unnecessary medical testing wasted taxpayers’ dollars.  This is a strong message to companies and individuals who engage in such conduct.   We are here, we are watching, and we will use all of our resources to safeguard the integrity of important public programs and protect consumers across the nation.”

Daniel R. Levinson, Inspector General of the Department of Health and Human Services (HHS-OIG), added, “P roviders who subject beneficiaries to unnecessary medical testing, as alleged against NextCare, compromise the well-being of their patients and squander Federal health care funds .”

As a condition of the settlement, NextCare Inc. is also required to enter into a Corporate Integrity Agreement with HHS-OIG under which the company will be monitored for a period of five years to ensure that in the future it complies with all federal healthcare program rules.

The allegations resolved by today’s settlement were initially raised in a lawsuit filed against NextCare by former NextCare employee Lorin Cohen.   Under the False Claims Act, private citizens acting as relators can bring suit on behalf of the United States and share in the recovery.  Ms. Cohen will receive $1.614 million as her share of the recovery.

This resolution is part of the government’s emphasis on combating health care fraud and another step forward for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, a collaborative effort launched in May 2009 by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services (HHS).  Settlements such as this one emphasize both the Department of Justice and HHS's commitment to the reduction and prevention of Medicare and Medicaid financial fraud.   Through the False Claims Act alone, the Justice Department has recovered more than $7.7 billion since January 2009 in cases involving fraud against federal health care programs.   The Justice Department's total recoveries in False Claims Act cases since January 2009 are over $11.3 billion.

This matter was handled jointly by the Civil Division of the United States Department of Justice, the U.S. Attorney’s Office for the Western District of North Carolina, the FBI, the North Carolina Attorney General’s Office, the Office of Inspector General of the Department of Health and Human Services (HHS-OIG), the TRICARE Management Activity and the Office of Personnel Management (OPM), which administers the FEHBP.   The claims settled by this agreement are allegations only, and there has been no determination of liability.

PRESIDENT OBAMA SAYS FIREFIGHTING AIRMEN ARE HEROS

FROM:  AMERICAN FORCES PRESS SERVICE
Obama Calls Firefighting Airmen Heroes
American Forces Press Service
WASHINGTON, July 2, 2012 - President Barack Obama released a statement today calling the airmen battling wildfires in the Rocky Mountain region "heroes who deserve the appreciation of a grateful nation."

The statement comes following a crash yesterday of a North Carolina Air National Guard C-130 as its crew was battling a wildfire in South Dakota.
Here is the president's statement:

Yesterday, a military C-130 from the North Carolina Air National Guard crashed while supporting firefighting efforts in South Dakota. The full details are still under investigation, but the crew of this flight – along with their families and loved ones – are in our thoughts and prayers.

The men and women battling these terrible fires across the West put their lives on the line every day for their fellow Americans. The airmen who attack these fires from above repeatedly confront dangerous conditions in an effort to give firefighters on the ground a chance to contain these wildfires – to save homes, businesses, schools, and entire communities. They are heroes who deserve the appreciation of a grateful nation.
I know Americans across the country share my concern for the well-being of the surviving members of the crew and my deep condolences to the families of those who lost their lives. And I know that Americans join me in expressing my deepest gratitude for the selfless determination they and thousands of men and women involved in this fight in states across the country demonstrate every day.