SECRETARY OF DEFENSE PANETTA ABOARD USS PELELIU

Secretary Panetta Gaggle Aboard USS Peleliu
  SECRETARY OF DEFENSE LEON PANETTA:  Okay.  Are you all right?
Okay.
             Q:  Staff Sergeant Bales’ defense team says they’re facing an almost complete information blackout from the government that’s having a devastating effect.
            SEC. PANETTA:  Well, you know, the key here is to follow the procedures that we have under the military code of justice and we’ve made very clear that – I’ve made very clear that those procedures will be followed and that they’ll be entitled to whatever information we’d be entitled to under the military code of justice.  But I’ve been assured that this investigation now is going to continue, that charges have now been brought.  We’re going through an Article 32 process and the defendant, as I said, will be entitled to the rights that are provided under the military code of justice.
             Q:  (Inaudible) – since 2007.  And 75 percent have been in the last two years.  We’re wondering, with this situation can the partnership endure and what needs to be done and can be done?
             SEC. PANETTA:  No, you know, I really do think that General Allen has the right strategy for Afghanistan and that 2011 was an important turning point that we’ve made some significant gains there and that we’re in the process of transitioning areas to Afghan governance and control.  And I think we need to stick to that strategy.  As I’ve said, war is hell.  We’re going to run into these kinds of incidents.  That’s the nature of conflict, but we can’t allow those kinds of incidents to undermine our basic strategy.  We’re on the right track and we have to stick to it.
             Q:  Mr. Secretary –for the spring – what the strategy as far –
             SEC. PANETTA:  The –spring?  I think right now obviously our goal is to make sure that we continue to secure the key areas that we’re involved with and that we continue the transition.  There’s another transition that’s due to be made in this year and we’ve got about three more areas of transition to complete.  The final transition will take place about in the fall of 2013.  So our goal from General Allen is to do that.  The other goal, frankly, is that we are going to be withdrawing the remainder of the surge, which is about 23,000.  And so General Allen will present me with a plan sometime in April as to how we accomplish that by the end of this fighting season.
             Q:  Sir, I have a two-part question about BRAC.  If you secure approval for it, how might that affect Southern California?  If you don’t, what can the Department do on its own?  Are you prepared to close the smaller bases -- 300 and less personnel?
             SEC. PANETTA:  You know, the reason we’ve asked for BRAC authority here is because, you know, as we draw down the force over the next five to 10 years, that we’re going to have – you kow, we’ll have some excess infrastructure.  And that if we’re spending money on maintaining excess infrastructure, it’s money that is taken away from other areas in defense.
             The BRAC process, I know it’s a tough process.  I’ve been through BRAC, when I was a congressman in Monterey.  I went through the loss of Fort Ord, so I know what it means for a community.  But the BRAC process is at least the only approach we have trying to do this right.
             I believe that we ought to do it through that approach.  There is some de minimis closures that we have the right to do under the law, but my view is that for the kind of major installation, that ought to be done through the BRAC process.
             Q:  Mr. Secretary, have we taken any special precautions –
             SEC. PANETTA:  By the way, on Southern California, I mean, I think generally the bases here are pretty important to the strategy that we put in place in terms of our defense.  And I think most of those will largely be maintained.
             Q:  Particularly regarding the pivot to the Pacific or –
             SEC. PANETTA:  Yes, the pivot to the Pacific is important, but more importantly being able to maintain the facilities for our troops and our Navy, and particularly the Marine Corps.  Those are going to be essential elements to that strategy.
             Q:  Have we taken any special precautions should the North Koreans launch missiles?
             SEC. PANETTA:  We expressed our concern.  The president of the United States made very clear that the North Koreans should not do this.  It is provocative.  It’s dangerous and it violates the international law.  And so our hope is that they will not do it.  But as always takes place in these kinds of situations, we have to be fully prepared for any possibility -- and we are.
             Q:  Have we moved – (inaudible).
             SEC. PANETTA:  Put whatever assets in place that we need in order to deal with any contingency.
             Q:  Mr. Secretary, there’s a lot of concern on Capitol Hill about having sufficient ships in the Navy to do the Navy – (inaudible) – the Navy have pushed the decommissioning another year, but it’s going to be retired at some point.  The Marines are concerned and they want to make sure that there’s enough – (inaudible) – them.  How do you reconcile the two needs both from a budgetary perspective and also operationally having ships available to train and prepare and then deploy overseas?
             SEC. PANETTA:  We just – we actually just sent up the 30-year shipbuilding plan to the Congress.  And as I testified, our goal is to maintain the target of developing 300 ships in the Navy.  And we will do that by – I think the target right now is to do that by 2019.  So yes, there’ll be – yes, there’ll be some ups and downs and there are some ships that obviously we’ll draw down that are outdated.  But overall, we are going to maintain -- not only maintain, but increase our ships in the Navy.
             Q:  Are you concerned that there are – you know, the fleet has been ridden hard and put away wet?
             SEC. PANETTA:  It has and – you know – but these are great ships.  I had a chance to go on ships like this and I was just on the Enterprise, which is a carrier that’s being deployed for the last time in the Middle East, but, you know, they’ve served this country well.
             One of the things that I want to maintain is our industrial base for the future so that we can produce the ships we need for the future.  And I want to do it in American shipyards.  I don’t want to do it abroad.  So what I’ve got to do is to try to – and we’re committed to this – is to try to do this in a way that protects our industrial base so that it will be there if and when we need it for the future.
             Okay?  Thanks very much.

FDIC REPORTS COUNTERFEIT MONEY ORDERS IN CIRCULATION

FROM:  FDIC E-MAIL TO:	CHIEF EXECUTIVE OFFICER (also of interest to Security Officer)
SUBJECT:	Counterfeit Money Orders
Summary:	Counterfeit money orders bearing the name Northrim Bank, Anchorage, Alaska, are reportedly in circulation.

Northrim Bank, Anchorage, Alaska, has contacted the Federal Deposit Insurance Corporation (FDIC) to report that counterfeit money orders bearing the institution's name are in circulation.

The counterfeit items display the routing number 125200934, which is assigned to Northrim Bank. The items are dissimilar to authentic money orders and when copied display a three- column "VOID" background. A security feature statement is embedded in a darkened top border and along the bottom border between two padlocks.
Authentic money orders display a three-sided ornate border with open squares in each top corner and solid circles in each lower corner. A security feature statement is centered below the top border. The wording "NOT VALID OVER $2,500.00" is printed below the dollar amount line.
 Be aware that the appearance of counterfeit items can be modified and that additional variations may be presented.

Information about counterfeit items, cyber-fraud incidents and other fraudulent activity may be forwarded to the FDIC's Cyber-Fraud and Financial Crimes Section, 3501 North Fairfax Drive, CH-11034, Arlington, Virginia 22226, or transmitted electronically to alert@fdic.gov. Questions related to federal deposit insurance or consumer issues should be submitted to the FDIC using an online form that can be accessed at http://www2.fdic.gov/starsmail/index.asp.

	Sandra L. Thompson
	Director Division of Risk Management Supervision

FEMA WARNS TO WATCH OUT FOR DISASTER SCAMS

FROM: FEDERAL EMERGENCY MANAGEMENT AGENCY
Be on the Lookout for Scams and Frauds After a Disaster
CHARLESTON, W. Va. -- West Virginia residents whose properties were damaged in the recent storms are warned to be alert for and report any potential fraud during recovery and rebuilding efforts, Federal Emergency Management Agency officials said today.
The aftermath of a disaster can attract opportunists and con artists. Homeowners, renters and businesses can follow some simple steps to avoid being scammed.
Be suspicious if a contractor:
Demands cash or full payment up front for repair work;
Has no physical address or identification;
Urges you to borrow to pay for repairs, then steers you to a specific lender or tries to act as an intermediary between you and a lender;
Asks you to sign something you have not had time to review; or
Wants your personal financial information to start the repair or lending process.
To avoid scams:
Question strangers offering to do repair work and demand to see identification;
Do your own research before borrowing money for repairs. Compare quotes, repayment schedules and rates. If they differ significantly, ask why;
Never give any personal financial information to an unfamiliar person; and
Never sign any document without first reading it fully. Ask for an explanation of any terms or conditions you do not understand.

Disasters also attract people who claim to represent charities but do not. The Federal Trade Commission warns people to be careful and follow some simple rules:

Donate to charities you know and trust. Be alert for charities that seem to have sprung up overnight.
If you’re solicited for a donation, ask if the caller is a paid fundraiser, who they work for, and the percentage of your donation that will go to the charity and to the fundraiser. If you don’t get a clear answer — or if you don’t like the answer you get — consider donating to a different organization.

Do not give out personal or financial information – including your credit card or bank account number – unless you know the charity is reputable.

Never send cash: you can’t be sure the organization will receive your donation.
Check out a charity before you donate. Contact the Better Business Bureau’s Wise Giving Alliance at www.give.org.

If you believe you are the victim of a contracting scam, price gouging or bogus charity solicitations, contact local law enforcement and report it to the West Virginia office of the Attorney General. Call the Consumer Helpline at 1-800-368-8808 or find a complaint form online at www.wvago.gov/consumers.cfm.

Many legitimate persons -- insurance agents, FEMA Community Relations personnel, local inspectors and real contractors -- may have to visit your disaster-damaged property. Survivors could, however, encounter people posing as inspectors, government officials or contractors in a bid to obtain personal information or collect payment for repair work. Your best strategy to protect yourself against fraud is to ask to see identification in all cases and to safeguard your personal financial information. Please keep in mind that local, state and federal employees do not solicit or accept money for public services.

All FEMA employees and contractors will have a laminated photo ID. A FEMA shirt or jacket alone is not proof of identity. FEMA generally will only request an applicant's Social Security or bank account numbers during the initial registration process. However FEMA inspectors may require verification of identity. FEMA and U.S. Small Business Administration staff never charge applicants for disaster assistance, inspections or help to fill out applications. FEMA inspectors verify damages but do not recommend or hire specific contractors to fix homes.

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

U.S. SECRETARY OF STATE CLINTON ON INTERVENTION IN SYRIA

FROM:  U.S. STATE DEPARTMENT
Intervention to the Friends of the Syrian People
Remarks Hillary Rodham Clinton
Secretary of State As Prepared
Istanbul, Turkey
April 1, 2012
I want to thank Prime Minister Erdogan, Foreign Minister Davutoglu and the people of Turkey for hosting us today. Turkey has shown steadfast leadership throughout this crisis. I also want to recognize the continuing contributions of the Arab League and in particular the work of Secretary General Elaraby and the chair of the Syria committee, Prime Minister Hamad bin Jassim. To all my colleagues, and to all our friends and partners around the world, thank you for standing by the Syrian people.

We meet at an urgent moment for Syria and the region. Faced with a united international community and persistent popular opposition, Bashar al-Assad pledged to implement Joint Special Envoy Kofi Annan’s initial six point plan. He promised to pull his regime’s forces back and silence its heavy weapons, allow peaceful demonstrations and access for humanitarian aid and journalists, and begin a political transition.

Nearly a week has gone by, and we have to conclude that the regime is adding to its long list of broken promises.

Rather than pull back, Assad’s troops have launched new assaults on Syrian cities and towns, including in the Idlib and Aleppo provinces. Rather than allowing access for humanitarian aid, security forces have tightened their siege of residential neighborhoods in Homs and elsewhere. And rather than beginning a political transition, the regime has crushed dozens of peaceful protests.

The world must judge Assad by what he does, not by what he says. And we cannot sit back and wait any longer. Yesterday in Riyadh, I joined with the members of the Gulf Cooperation Council to call for an immediate end to the killing in Syria and to urge Joint Special Envoy Annan to set a timeline for next steps. We look forward to hearing his views on the way forward when he addresses the United Nations Security Council tomorrow.

Here in Istanbul, we must take steps of our own to ratchet up pressure on the regime, provide humanitarian relief to people in need, and support the opposition as it works toward an inclusive, democratic and orderly transition that preserves the integrity and institutions of the Syrian state.

First, pressure. On Friday, the United States announced new sanctions against three more senior regime officials: Minister of Defense Rajiha, Deputy Chief of Staff of the Army Adanov and Head of Presidential Security Shalish. A growing list of Syria’s worst human rights offenders are learning that they cannot escape the consequences of their actions. I am pleased that the Friends of the Syrian People have agreed to form a sanctions working group, to coordinate and expand our national sanctions and strengthen enforcement. Together we must further isolate this regime, cut off its funds, and squeeze its ability to wage war on its own people.

The United States will also work with international partners to establish an accountability clearinghouse to support and train Syrian citizens working to document atrocities, identify perpetrators, and safeguard evidence for future investigations and prosecutions.
Our message must be clear to those who give the orders and those who carry them out: Stop killing your fellow citizens or you will face serious consequences. Your countrymen will not forget, and neither will the international community.
Turning to the humanitarian effort, the United States is expanding our commitment to help the people of Syria. This week in Washington, I met with the president of the International Committee of the Red Cross and we discussed the urgent needs, especially in the communities suffering under relentless shelling.

In Tunis, I pledged $10 million to fund makeshift field hospitals, train emergency medical staff, and get clean water, food, blankets, heaters, and hygiene kits to civilians who desperately need them, including displaced people. Despite the regime’s efforts to deny access, that aid is starting to get through. So in March we added $2 million to our commitment, and today I am announcing more than $12 million for the Syrian people – for a total of nearly $25 million.

But we know that no amount of aid will be enough if the regime continues its military campaign, targets relief workers, blocks supplies, restricts freedom of movement, and disrupts medical services. So the United States fully supports the UN’s diplomatic effort to secure safe and unfettered access for humanitarian workers and supplies, including a daily, two-hour ceasefire -- beginning immediately -- to allow aid to get in and wounded civilians to get out. And I want to thank the governments of Turkey, Jordan, Lebanon, and Iraq for keeping their borders open and serving as generous hosts to Syrians in great need.
The third track is supporting the opposition as it plans for an inclusive, democratic transition.

Here in Istanbul, the Syrian National Council and a wide range of opposition groups are uniting around a common vision for a free, democratic and pluralist Syria that protects the rights of all citizens and all communities. It is a roadmap for saving the state and its institutions from Assad’s death spiral. And it is worthy of support from the international community and Syrians from every background.

Turning this vision into reality will not be easy, but it is essential. Assad must go and Syrians must choose their own path. Citizens across the country are already laying the groundwork. Peaceful protests continue to swell, with citizens marching in the streets of Syrian cities and towns, demanding dignity and freedom. The regime has done everything it can to prevent peaceful political organizing, and activists and opposition members have been jailed, tortured, and killed. And yet, local councils have emerged all across the country. They are organizing civil resistance and providing basic governance, services and humanitarian relief, even as the shells rain down around them.

To support civil opposition groups as they walk this difficult path, the United States is going beyond humanitarian aid and providing additional assistance, including communications equipment that will help activists organize, evade attacks by the regime, and connect to the outside world – and we are discussing with our international partners how best to expand this support.

In the unlikely event that the Assad regime reverses course and begins to implement the six-point plan, then Kofi Annan will work with the opposition to take steps of its own. But in the meantime, Syrians will continue to defend themselves. And they must continue building momentum toward a new Syria: free, unified, and at peace.

Now that they have a unified vision for transition, it will be crucial for the opposition to translate it into a political action plan to win support among all of Syria’s communities. We’ve seen here in Istanbul that disparate opposition factions can come together. Despite the dangers they face, the next step is to take their case across Syria, to lead a national conversation about how to achieve the future Syrians want and deserve. That’s how the opposition will demonstrate beyond any doubt that they hold the moral high ground, strip away Assad’s remaining support, and expose the regime’s hypocrisy.

So this is where we find ourselves today: Kofi Annan has given us a plan to begin resolving this crisis. Bashar al-Assad has so far refused to honor his pledge to implement it. The time for excuses is over.

President Medvedev calls this the “last chance” for Syria. I call it a moment of truth.
Together we must hasten the day that peace and freedom come to Syria. That solution cannot come fast enough, and we grieve for every lost day and every lost life.
We are committed to this effort and we are confident that the people of Syria will take control of their own destiny. Let us be worthy of this challenge and move ahead with clear eyes and firm determination.
Thank you.

BRITISH VIRGIN ISLANDS CO. SETTLES CHARGES OF INSIDER TRADING IN INTERMUNE, INC., OPTIONS

The following excerpt is from the SEC website:
March 30, 2012
The Securities and Exchange Commission announced that, on March 29, 2012, the Honorable George B. Daniels,U.S. District Judge for the Southern District of New York, entered a settled final judgment for insider trading in the options of InterMune, Inc. as to Michael S. Sarkesian, a Swiss citizen and resident, and Quorne Ltd., a British Virgin Islands limited liability company wholly owned by a Cyprus trust maintained for the benefit of a Sarkesian relation. The alleged illicit trading by Sarkesian and Quorne took place ahead of a December 17, 2010 announcement that the European Union’s Committee for Medicinal Products for Human Use, or CHMP, had recommended to the European Commission that it permit InterMune to market its developmental drug, Esbriet, in the European Union. Sarkesian and Quorne consented to the entry of the final judgment, which imposes injunctive and monetary relief. The Commission also announced that on March 27, 2012, it amended its complaint, filed on December 23, 2010 against one or more unknown purchasers of the options of InterMune, to name Sarkesian and Quorne as defendants.

In its amended complaint, the Commission alleges that Sarkesian was tipped to material non-public information concerning the CHMP’s recommendation in advance of the December 17 announcement and that, while in possession of this material non-public information, Sarkesian exercised his authority to manage and administer Quorne’s funds by recommending to Quorne that it purchase InterMune call options. As a result, Sarkesian caused Quorne to purchase 400 InterMune call options through a brokerage account in Switzerland on December 7 and 8, 2010. The market price of the 400 options rose over 500% following the December 17 announcement.

On December 23, 2010, on the same day that the Commission filed its initial complaint, the Court entered a Temporary Restraining Order freezing assets and trading proceeds from the alleged illicit trading and prohibiting the then-unknown purchasers from disposing of the options or any proceeds from the sale of the options. Quorne later sold the 400 options, the proceeds of which have remained frozen by Court order.
Without admitting or denying the allegations of the amended complaint, Quorne and Sarkesian consented to entry of a final judgment enjoining them from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and ordering them jointly and severally to pay $616,000 in disgorgement and $93,806.17 in civil penalties pursuant to Exchange Act Section 21A. The monetary sanctions will be paid out of the frozen funds. See Litigation Release No. 21794 (December 23, 2010).

The Commission acknowledges the assistance of the Options Regulatory Surveillance Authority, the Swiss Financial Market Supervisory Authority, the Cyprus Securities and Exchange Commission, and the British Virgin Islands Financial Services Commission.

CYCLONE DAPHNE HITS FIJI ISLANDS

FROM:  NASA WEBSITE
NASA Satellite Sees Tropical Storm Daphne Born Near Fiji Islands
Tropical Storm Daphne was born on April Fool's Day in the southwestern Pacific Ocean, as low pressure System 95P consolidated and organized. NASA's Terra satellite passed over Daphne after the storm was named. Daphne had already caused severe flooding in areas of Fiji.

The Moderate Resolution Imaging Spectroradiometer (MODIS) instrument on NASA's Terra satellite captured a visible image of Tropical Cyclone Daphne when it was over the North Fiji Basin on April 1, 2012 at 2300 UTC (7 p.m. EDT).

Before Daphne had even become a tropical storm, warnings were in force throughout Fiji. The Fiji Meteorological Service noted today, April 2, that a gale warning remains in force for Viti Levu, Yasawa And Mamanuca Group, Southern Lau Group, Kadavu and Nearby Smaller Islands. Strong wind warnings are up for the other Fiji islands. In addition, a severe flood warning is in effect for all major rivers, streams and low-lying areas of Viti Levu. For additional warning information, visit: http://www.met.gov.fj/aifs_prods/20020.txt.

Sky news reported four people were killed from flash flooding in Fiji on April 1, and a state of emergency was declared.n The Australian Broadcasting Corporation reported that there were about 8,000 people in evacuation shelters and that air travel has resumed today after being grounded yesterday.

On April 2 at 0300 UTC (April 1, 11 p.m. EDT), Tropical Storm Daphne had maximum sustained winds near 35 knots (40 mph/64 kph). Those tropical-storm-force winds extend as far as 200 nautical miles (230 miles/370 km) from the center, making Daphne a good-sized storm, more than 400 nautical miles (460 miles/741 km) in diameter. Daphne's center was located about 340 nautical miles (391 miles/630 km) west-southwest of Suva, Fiji, near 19.8 South and 172.7 East. Daphne was moving to the east-southeast near 18 knots (20.7 mph/ 33.3 kph).

Forecasters expect Daphne to continue moving to the east-southeast and maintain strength over the next day or two.

Text Credit: Rob Gutro
NASA's Goddard Space Flight Center, Greenbelt, Md.

FINDINGS OF F-22 RAPTOR ADVISORY BOARD

The photo and excerpt are from the Department of Defense: 
F-22 Raptor Advisory Board Announces Findings
By Mitch Gettle
Air Force Public Affairs Agency
WASHINGTON, March 30, 2012 - Air Force leaders provided an update on the service's Scientific Advisory Board study into F-22 Raptor aircraft life support systems and flight operations during a Pentagon briefing yesterday.

Retired Air Force Gen. Gregory Martin, an aviator and a former commander of two major commands, chaired the nine-member SAB team which studied the F-22's onboard oxygen generation systems and briefed its findings and recommendations in trying to determine a reason why some people have experienced unexplained physiological events while piloting the aircraft.

"From April 2008 until May 2011, the Air Force experienced 14 physiological incidents with the fleet of F-22s," Martin said. "Each incident was investigated, and of those incidents, 10 did not reveal a root cause."

It was the unexplained nature of those incidents that gave the Air Force concern and led Secretary of the Air Force Michael B. Donley to ask for a broad area review which the SAB conducted, he added.
"We were unable to determine a root cause, but we were able to put in place the proper safety measures and risk mitigation techniques that would allow the F-22 fleet to return to fly ... to ensure the integrity of the life support system," Martin said. "We went from ground test to flight test to a return-to-fly phase, and moving into a transition phase."

The advisory board made nine findings and 14 recommendations based on a seven-month study of the F-22's evolution -- from conception and acquisition through current flight operations -- which the Air Force can use to move forward.

Martin said the board's findings and recommendations fall into three areas: acquisition processes and policies, organizational structure recommendations, and equipment recommendations to not only protect the pilots and crew members today but also in the future.

"Some of the things we recommended give us a much better understating of the pilots' performance in those environments that we have not operated in before," Martin said. "It will further our understanding of the aviation physiology of operating in that environment."

Air Force leaders remain steadfast that the F-22 is a fully combat capable aircraft and they have every confidence in its current and future performance.

"Since September of last year we've flown over 10,000 sorties," said Maj. Gen. Charles Lyon, Air Combat Command's director of operations. "We've had a 99.9 percent effective flying rate relative to physiological incidents, but that is not good enough.

"We will not rest. We will not stop," Lyon continued. "We will not end this journey we are on until we carry that 99 percent decimal point to the farthest right that we can."

The Air Force is well into the implementation phase of the recommendations from the SAB team, he said, and continues to aggressively pursue the cause of these unexplained incidents.
"Let there be no doubt, that safety is paramount to the men and women who operate [the F-22] and the commanders who command them," Lyon said. "When we wear this uniform there is risk, there is risk inherent in aviation and risk inherently in conducting military operations.
Pilot safety has and always will remain a priority, Lyon added.

"We have instructed and talked to our members in the field," Lyon said. "Whenever you get any indication that something may not be right ... terminate the flight. All eyes are focused on you and the safe recovery of your aircraft."

When a physiological event occurs, the pilot is met by a medical team that provides immediate care, he said. Additional tests are taken, he added, and sent to the laboratory.
"And so far, nothing remarkable has come back from the [F-22 pilot] lab tests we've analyzed," Lyon said. "When it comes to safety, no one second-guesses the pilot."
The F-22 is a fifth-generation fighter and one that is needed for the United States to establish air superiority in today's and tomorrow's conflict's, said Maj. Gen. Noel "Tom" Jones, Air Force Deputy Chief of Staff for Operations, Plans and Requirements.

The F-22 "is the leading edge of technology," Jones said, "and if our nation needs a capability to enter contested airspace to deal with air forces that are trying to deny our forces the ability to maneuver without prejudice on the ground, it will be the F-22 that takes on that mission."

COURT ENTERS $98.6 MILLION JUDGMENT AGAINST U.K. HEDGE FUND ADVISER PENTAGON CAPITAL MANAGEMENT PLC AND CEO

March 30, 2012
FROM:  SEC  WEBSITE
On Wednesday, March 28, 2012, United States District Judge Robert W. Sweet of the Southern District of New York entered a final judgment in favor of the U.S. Securities and Exchange Commission ordering total monetary relief of $98.6 million. The final judgment enjoins Defendants Pentagon Capital Management (“PCM”), a United Kingdom based hedge fund adviser, and its chief executive officer, Lewis Chester, from violating the antifraud provisions of the securities laws, Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. In addition, the final judgment orders PCM and Chester, on a joint and several basis with their hedge fund client Relief Defendant Pentagon Special Purpose Fund, Ltd., to pay $60,204,423.20, representing $38,416,500 in disgorgement of their ill-gotten gains and $21,787,923.20 in prejudgment interest. Finally, the final judgment imposes a civil money penalty of $38,416,500, on a joint and several basis, against PCM and Chester.

Previously, on February 15, 2012, the Court issued an Opinion finding that Defendants “intentionally, and egregiously,” violated the antifraud provisions of the securities laws by engaging in a late trading scheme to defraud United States mutual funds. Late trading refers to the practice of placing orders to buy, redeem, or exchange U.S. mutual fund shares after the time as of which the funds calculate their net asset value (usually as of the close of trading at 4:00 p.m. ET), but receiving the price based on the net asset value already determined as of 4:00 p.m. The same day that the Court entered the final judgment, the Court also issued an Opinion explaining its decision to impose a penalty equal to the disgorgement ordered because,inter alia, “Defendants understood that late trading was illegal and acted with marked scienter, going to great lengths to seek out, structure, and maintain the ability to deceive the funds into accepting their late trades and attempting to cover up their late trading after the fact.”

Chester, age 43, is a resident of London, England. PCM is an investment adviser and investment manager based in London, England, and is registered with the United Kingdom Financial Services Authority. Pentagon Special Purpose Fund, Ltd. is an international business company incorporated in the British Virgin Islands.

FORMER OFFICE MANAGER FOR SENATOR KENNEDY SENTENCED TO PRISON FOR THEFT AND WIRE FRAUD

The following excerpt is from the Department of Justice website:
Friday, March 30, 2012
Former Senate Office Manager Sentenced to 20 Months in Prison for Wire Fraud and Theft of Government Property
WASHINGTON – A former office manager in the U.S. Senate was sentenced today to 20 months in prison for wire fraud and theft of government property, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office.

Ngozi Pole, of Waldorf, Md., also was sentenced by U.S. District Judge Emmet G. Sullivan in the District of Columbia to serve three years of supervised release and 500 hours of community service following his prison term and ordered to pay $77,608.86 in restitution.  Pole was found guilty at trial on Feb. 1, 2011, of five counts of wire fraud and one count of theft of government property.

According to evidence presented at trial, beginning in at least 2003 and continuing until January 2007, Pole repeatedly submitted paperwork causing the Senate to pay him larger bonus payments than had been approved by either the chief of staff or former U.S. Senator Edward M. Kennedy.  According to the evidence presented at trial, these unauthorized bonus payments totaled more than $75,000.  Pole hid the existence of these unauthorized payments by repeatedly transmitting information to the chief of staff that falsely showed that he received only those payments that had been authorized.  

This sentencing was handled by Trial Attorney Tracee Plowell of the Criminal Division’s Public Integrity Section.  The case was investigated by the FBI’s Washington Field Office.   Former Senator Kennedy’s office cooperated fully with the investigation.

HUBBLE SPOTS UFO GALAXY

The NASA/ESA Hubble Space Telescope has spotted the "UFO Galaxy." NGC 2683 is a spiral galaxy seen almost edge-on, giving it the shape of a classic science fiction spaceship. This is why the astronomers at the Astronaut Memorial Planetarium and Observatory, Cocoa, Fla., gave it this attention-grabbing nickname. While a bird's eye view lets us see the detailed structure of a galaxy (such as this Hubble image of a barred spiral), a side-on view has its own perks. In particular, it gives astronomers a great opportunity to see the delicate dusty lanes of the spiral arms silhouetted against the golden haze of the galaxy’s core. In addition, brilliant clusters of young blue stars shine scattered throughout the disc, mapping the galaxy’s star-forming regions. Perhaps surprisingly, side-on views of galaxies like this one do not prevent astronomers from deducing their structures. Studies of the properties of the light coming from NGC 2683 suggest that this is a barred spiral galaxy, even though the angle we see it at does not let us see this directly. This image is produced from two adjacent fields observed in visible and infrared light by Hubble’s Advanced Camera for Surveys. A narrow strip which appears slightly blurred and crosses most the image horizontally is a result of a gap between Hubble’s detectors. This strip has been patched using images from observations of the galaxy made by ground-based telescopes, which show significantly less detail. The field of view is approximately 6.5 by 3.3 arcminutes. Image Credit: ESA/Hubble & NASA
The Photo and excerpt are from the NASA website:

GAS PLUME DETECTION SYSTEM TO PROTECT SOLDIERS AND FIRST RESPONDERS

FROM DEPARTMENT OF DEFENSE
The Local-Rapid Evaluation of Atmospheric Conditions uses both weather data and 3D terrain and building information to generate it's wind model. The model display how air flows around terrain and buildings so first responders can have a better idea how to approach or manage a site where an airborne hazard is present. Army Research Laboratory graphic

By John Andrew Hamilton, U.S Army Test and Evaluation Command
A wind monitoring and modeling system being developed by the Army Research Laboratory’s, or ARL, White Sands Missile Range, or WSMR, division could one day protect soldiers and civilians alike from weapons of mass destruction.

The Local-Rapid Evaluation of Atmospheric Conditions, or L-REAC, system is a computerized weather sensor system under development at ARL intended to help predict the flow of gasses and fumes, or “plumes,” produced by things such as gas leaks and chemical weapons.

Being able to identify how an airborne hazard will behave is a vital ability for first responders to have in order for them to know how to approach or evacuate an affected area.

“If you are a dispatch person and you have to direct first responders to the site, you can look at the wind field and see what the safest approach would be,” said Gail Vaucher, a research meteorologist with ARL at WSMR.

There are other systems available that can predict the plume with some accuracy. Such systems use things like wind speed, air pressure, temperature, and humidity in their calculations. But L-REAC system adds a new layer that previous systems didn’t have. Using terrain data, building plans and dimensions, L-REAC can model and display not only the plume, but the actual airflow around buildings and terrain features.
“We decided to utilize the 3D wind field model developed by Doctor Yansen Wang at ARL Headquarters in Adelphi (Md.) because it had the capability to not only render very quickly, but it can look at many different scales,” said Donald Hoock, chief of the Atmospheric Dynamics Branch of ARL at WSMR.

Thanks to this wind flow model, L-REAC can model how wind will flow when it encounters everything from trees and boulders, to buildings and other structures. While not real-time, the model will update regularly depending on the size of the area being observed.

As air flows around things like buildings, pockets of slower moving or even circular flowing air can be generated on the downwind side, while other formations like alleyways can form wind tunnels. Using L-REAC’s modeling capability, a first responder can predict how these wind effects will alter a plume.

Additionally, L-REAC is a scalable system. The system allows a first responder to monitor large areas, or focus in on a specific incident site. The system uses information about weather and terrain to help build its model.

“The models themselves, in order to be appropriate for an area, need to know about the area, what is the terrain and what is the morphology,” said Vaucher.
For urban areas, Vaucher said, this also includes the shape and size of buildings. In the case of established areas, exact data can be input for detailed results. If detailed information isn’t available, the system will accept less-detailed information if the operator is willing to accept less-detailed results.
“The more details you have, the better the results,” said Vaucher. “If you have a generic description, you’ll get a generic result.”

The L-REAC system collects data from a series of weather monitoring stations that evaluate things like air pressure, temperature, humidity, wind speed, and wind direction. These stations can be the transportable kind like several that ARL has placed around WSMR, or they can be permanent stations like those found at airports or similar facilities.
Since the weather stations and computer systems are largely autonomous, ARL sees military installations and similar facilities as prime examples of where L-REAC could be implemented as part of a force protection plan. On an installation, L-REAC could be installed as a continuously running system, ready for use at a moment’s notice by operation center operators or dispatchers.

“We want to have the capability for them to immediately pull up on their computer screen a picture of what the wind fields are across the post without having to go in and physically start anything running. It would always be running 24-hours a day,” said Hoock.
L-REAC, while still in development, has already seen real-world action. It was used to track and predict smoke and airflow during the Abrams wildfire that threatened WSMR last year.

Ultimately, ARL hopes to have the system integrated with compact mobile weather monitoring systems so first responders and service members can always have a weather station as close to an area of interest as possible.
“The current Army is focusing on short, quick missions, so we want to build a tool that they can use,” said Vaucher.

To make this final mobile component of L-REAC a reality, ARL will need the help of new partners to help fund the integration of mobile sensors into the system. ARL is hoping for partners within the Army and the Department of Defense for integration into force protection plans.

“I think our ultimate goal is to team first on the Army side, and them more on the DOD side, looking for putting L-REAC in at installation levels to begin with,” said Hoock.
Other government organizations and agencies could also easily become partners on the program. Commercial partners would be welcome as well, though the process of establishing a commercial partnership would be more complex.

LOBBYIST GOES TO PRISON FOR NOT DISCLOSING HE WORKED FOR GOVERNMENT OF PAKISTAN

The following excerpt is from the Department of Justice website:
Friday, March 30, 2012
Virginia Man Sentenced to 24 Months for Scheme to Conceal Pakistan Government Funding for His U.S. Lobbying Efforts

WASHINGTON – Syed Ghulam Nabi Fai, 62, a U.S. citizen and resident of Fairfax, Va., was sentenced today to 24 months in prison, followed by three years of supervised release, for conspiracy and tax violations in connection with a decades-long scheme to conceal the transfer of at least $3.5 million from the government of Pakistan to fund his lobbying efforts in America related to Kashmir.

The sentencing was announced by Neil MacBride, U.S. Attorney for the Eastern District of Virginia; Lisa Monaco, Assistant Attorney General for National Security; John DiCicco, Acting Principal Deputy Assistant Attorney General for the Justice Department’s Tax Division; James McJunkin, Assistant Director in Charge of the FBI Washington Field Office; and Eric Hylton, Special Agent in Charge of the Internal Revenue Service (IRS) Criminal Investigation’s Washington, D.C., Field Office, after sentencing by U.S. District Court Judge Liam O’Grady in the Eastern District of Virginia.

On Dec. 7, 2011, Fai pleaded guilty to a two-count criminal information.  Count one of the information charged Fai with conspiracy to: 1) falsify, conceal and cover up material facts he had a duty to disclose in matters within the jurisdiction of executive branch agencies of the U.S. government; and to 2) defraud the Treasury Department by impeding the lawful functions of the IRS in the collection of revenue.  Count two of the information charged Fai with endeavoring to impede the administration of tax laws.

According to court documents filed with his plea agreement, Fai served as the director of the Kashmiri American Council (KAC), a non-governmental organization in Washington, D.C., that held itself out to be run by Kashmiris, financed by Americans, and dedicated to raising the level of knowledge in the United States about the struggle of the Kashmiri people for self-determination.  But according to court documents, the KAC was secretly funded by officials employed by the government of Pakistan, including the Inter-Services Intelligence Directorate (ISI).

 “Mr. Fai spent 20 years operating the Kashmiri American Council as a front for Pakistani intelligence,” said U.S. Attorney MacBride.  “He lied to the Justice Department, the IRS and many political leaders throughout the United States as he pushed the ISI’s propaganda on Kashmir.”

“Syed Fai is today being held accountable for his role in a decades-long scheme to conceal the fact that the government of Pakistan was secretly funding his efforts to influence U.S. policy on Kashmir,” said Assistant Attorney General Monaco.
“Today’s sentence sends a strong message that using the tax-exempt status of charitable entities to promote or conceal federal crimes carries heavy consequences,” said Acting Principal Deputy Assistant Attorney General DiCiccio.

“Mr. Fai had a duty to inform the U.S. government of the finances which he received from Pakistan to fund lobbying efforts,” said FBI Assistant Director in Charge McJunkin.  “Concealed foreign affiliations can be a significant threat to our democracy, and those who engage in hiding these associations will be brought to justice.”

“Today’s sentencing further shows that IRS-Criminal Investigation is working vigorously to stop the misuse and abuse of charities in promoting or concealing federal crimes,” said IRS Special Agent in Charge Hylton.  “The message is clear that those who engage in this type of activity will face stiff criminal penalties.”
The Scheme

Fai admitted in court that, from 1990 until about July 18, 2011, he conspired with others to obtain money from officials employed by the government of Pakistan, including the ISI, for the operation of the KAC in the United States, and that he did so outside the knowledge of the U.S. government and without attracting the attention of law enforcement and regulatory authorities.

To prevent the Justice Department, FBI, Department of Treasury and the IRS from learning the source of the money he received from officials employed by the government of Pakistan and the ISI, Fai made a series of false statements and representations, according to court documents.  For example, Fai told FBI agents in March 2007 that he had never met anyone who identified himself as being affiliated with the ISI and, in May 2009, he falsely denied to the IRS on a tax return for the KAC that the KAC had received any money from foreign sources in 2008.

In addition, according to court documents, Fai sent a letter in April 2010 to the Justice Department falsely asserting that the KAC was not funded by the government of Pakistan.  Later that year, Fai falsely denied to the IRS that the KAC had received any money from foreign sources in 2009.  In July 2011, Fai falsely denied to FBI agents that he or the KAC received money from the ISI or government of Pakistan.

In fact, Fai repeatedly submitted annual KAC strategy reports and budgetary requirements to Pakistani government officials for approval.  For instance, in 2009, Fai sent the ISI a document entitled “Plan of Action of KAC / Kashmir Centre, Washington, D.C., for the Fiscal Year 2010,” which itemized KAC’s 2010 budget request of $658,000 and listed Fai’s plans to secure U.S. congressional support for U.S. action in support of Kashmiri self-determination.

Fai also admitted that, from 1990 until about July 18, 2011, he corruptly endeavored to obstruct and impede the due administration of the internal revenue laws by arranging for the transfer of at least $3.5 million to the KAC from employees of the government of Pakistan and the ISI.

According to court documents, Fai accepted the transfer of such money to the KAC from the ISI and the government of Pakistan through his co-defendant Zaheer Ahmad and middlemen (straw donors), who received reimbursement from Ahmad for their purported “donations” to the KAC.  Fai provided letters from the KAC to the straw donors documenting that their purported “donations” to the KAC were tax deductible and encouraged these donors to deduct the transfers as “charitable” deductions on their personal tax returns.  Fai concealed from the IRS that the straw donors’ purported KAC “donations” were reimbursed by Ahmad, using funds received from officials employed by the ISI and the government of Pakistan.

MISSILE TESTS BY NORTH KOREA COULD COST COUNTRY U.S. FOOD AID

American Forces Press Service North Korean Missile Tests Jeopardize U.S. Food Aid By Donna Miles WASHINGTON, March 30, 2012 - A recent North Korean announcement that it will conduct a missile test next month, in conjunction with a reported short-range missile test last night, jeopardizes millions of dollars in U.S. food aid for the secretive country, senior defense officials told Congress. "My view is that if North Korea goes forward with this test, we will stop this aid and stop the other steps that we had intended to take," James N. Miller told the Senate Armed Services Committee yesterday during his confirmation hearing as undersecretary of defense for policy. Miller is President Barack Obama's nominee to replace Michèle Flournoy, for whom he served as principal deputy secretary for three years, as the Pentagon's policy chief. North Korea announced March 16th that it plans to conduct a missile launch between April 12th and 16th. The announcement followed talks last month in Beijing, where the United States agreed to provide North Korea about 240 tons of nutritional aid, worth about $200 million, after it agreed to a moratorium on long-range missile launches. Asked yesterday by a panel member, Miller said he shares the administration's view that U.S. food aid promised last should stop if North Korea goes through with the planned launch. "The view is that if North Korea goes forward with this test," he said, "we will stop this aid and stop the other steps that we had intended to take and have to have a complete reconsideration of where we go in the future." Acting Assistant Secretary of Defense for Asia and Pacific Security Affairs Peter R. Lavoy told the House Armed Services Committee on March 28 that North Korea's announcement makes the February agreement null and void. During discussions with North Korea, he said, "the United States made it very clear that a satellite launch would be a deal-breaker. "So we've ... been forced to suspend our activities to provide nutritional assistance to North Korea," Lavoy added. The planned launch is "highly provocative because it manifests North Korea's desire to test and expand its long-range missile capability," he said. "In addition, the launch, if it occurs, would be in direct violation of Pyongyang's international obligations, including U.N. Security Council resolutions 1718 and 1874, which prohibit North Korea from conducting any launches that use ballistic missile technology," Lavoy said. North Korea claims the launch scheduled for April will be used to place a weather satellite into orbit to mark the 100th anniversary of the birth of Kim Il Sung. The United States and other members of the international community believe the launch is actually aimed at testing North Korea's long-range ballistic missiles, in violation of U.N. sanctions. Miller addressed the Senate panel yesterday, just before North Korea reportedly fired two short-range, surface-to-ship missiles off its western coast. "North Korea's provocative behavior, large conventional military, proliferation activities and pursuit of asymmetric advantages through its ballistic missile and weapons of mass destruction programs, including uranium enrichment, present a serious threat to the United States, its allies and partners in the region and the international community," Miller wrote in response to questions from the committee before yesterday's hearing. Miller pointed to North Korea's provocative attacks against South Korea. "The opaque nature of the two North Korean attacks on South Korean forces in 2010 provide a sober reminder that Pyongyang is willing to utilize its capabilities to undertake provocative actions," he said. Miller noted North Korea's flight tests of theater ballistic missiles in 2006 and 2009, demonstrating the capability to target South Korea and Japan. In addition, North Korea continues its work to develop Taepo Dong-2 ballistic missiles. Although Pyongyang claims to have tested this technology in a space launch configuration, Miller said it could reach the United States if developed as an intercontinental ballistic missile. "The United States must continue to monitor carefully North Korea's WMD and missile development programs and related proliferation activities," he told the committee. Miller promised, if confirmed, to ensure the Defense Department continues to work closely with other parts of the U.S. government as well as allies and partners to address these threats, reduce vulnerabilities and conduct contingency planning. "What concerns me most is that this range of threats comes from a single state standing on the outside of the international community," he told the senators. "If confirmed, I will ensure that we sustain and advance our military readiness and coordination with allies and partners and explore all avenues for shaping North Korean behavior."

GENERAL THURMAN TELLS CONGRESSIONAL PANEL THAT U.S. FORCES REMAIN READY IN N.E. ASIA

American Forces Press Service

Thurman: U.S. Forces Remain Ready in Northeast Asia

By Lisa Daniel

WASHINGTON, March 30, 2012 - As the military transitions its focus toward the Asia-Pacific region, the Korean Peninsula is a focal point where U.S. forces must maintain "unquestioned" readiness, the commander of U.S. Forces Korea told a congressional panel yesterday.

Army Gen. James D. Thurman outlined the situation on the Korean Peninsula and named his command priorities to the House Appropriations Committee's military construction subcommittee.

As the military transitions its focus toward the Asia-Pacific region, "the Korean Peninsula is at the nexus of U.S. interests in Northeast Asia," Thurman said. The region hosts four of the world's six largest militaries, a quarter of the world's population, and is the fastest-growing segment of the global economy, he said.

U.S. trade with the region exceeds $750 billion annually, he added, and direct U.S. investments amount to $270 billion each year.

As China rises in global importance, "it maintains an ambiguous relationship with an isolated North Korean regime in pursuit of a robust nuclear program," the general said.

Meanwhile, allies in the region "look to the U.S. as the key partner to maintain regional stability and prosperity while upholding international norms and a commitment to democratic values," he added.

Thurman noted recent executive leadership changes in North Korea, Taiwan, Russia and Japan, as well as upcoming elections in South Korea and an expected leadership change in China later this year.

"The uncertainty associated with these changes, compounded by lingering historical animosities, territorial disputes, and competition over access to resources, places us in a dangerously uncertain period as we maintain the 1953 armistice and remain prepared to defend [South Korea], as well as the United States, from North Korean aggression," he said.

The general called the U.S.-South Korea alliance "as solid as ever," and said it serves as the foundation for the combined readiness of the two militaries. Thurman said he and his South Korean military counterparts are guiding military leaders and units of both militaries "to work and train closely with one another on a daily basis, and that effort builds combined strength, faith, and trust -- qualities that are essential for us to successfully accomplish our mission in Korea."

The alliance's commitment to security has been rewarded with sustained economic growth and enhanced military capabilities for South Korea, Thurman said. But a declining birth rate and other factors, including violent North Korean provocations in 2010, have prompted the South Korean military to propose fundamental military reforms that "likely will be acted on in the coming year," he said.

With so much change underway on the Korean Peninsula and in the region, Thurman said, "it is imperative we remain steady in our commitment to regional stability through vigilant maintenance of the armistice and unquestioned military readiness."

North Korea remains the greatest security threat in the region, the general said.

"I believe we are in a very uncertain period ... with the possibility of unexpected events leading to miscalculation," Thurman said.

The transition of Kim Jong-un, who became North Korea's leader after the death of his father last fall, "appears to be proceeding without discernible internal challenges and with significant Chinese political and economic support," the general said.

North Korea maintains "robust" conventional forces of more than a million soldiers, a military that is "vastly disproportionate" to its nation's population size and defensive security requirements, Thurman said. North Korea continues improving its ability to attack Seoul -- the world's fourth-largest city where 50,000 private, U.S. citizens live, and which is in artillery range of the North, he said.

North Korea has the world's largest special operations force of 60,000 soldiers, has a growing cyber warfare capability, and the capability to manufacture, transport, and deliver a variety of persistent and nonpersistent chemical and biological weapons, Thurman said. The country also is "investing heavily" in its "already-robust" ballistic missile forces, he said.

Deterring North Korean threats and promoting stability on the peninsula, Thurman said, are his greatest priorities.

"If deterrence fails," he said, "we will decisively defeat external aggression and restore stability on terms favorable to the alliance."
 

U.S. TREASURY DESIGNATES THREE SYRIAN GOVERNMENT OFFICIALS

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

WASHINGTON – The U.S. Department of the Treasury today announced the designations of three senior officials of the Government of Syria – Syria’s Minister of Defense Dawood Rajiha, Syria’s Deputy Chief of Staff of the Army Munir Adanov and Syria’s Head of Presidential Security Zuhayr Shalish – pursuant to Executive Order (E.O.) 13573.

The Syrian regime’s continued use of violence against its people has imposed a devastating toll on Syria. Through today’s action, the United States reinforces its commitment to stand with the Syrian people, and it also sends a strong message to the Syrian armed forces and all Syrian officials that the international community is bearing witness to the regime’s brutality.  The United States will continue to work with our partners around the world to ensure that the Syrian regime and its senior officials are held accountable for the continued repression in Syria.

“The U.S. and the international community will hold to account those who stand with the Asad regime as it trains the instruments of war against Syrian civilians. The time has long since passed for Syrian officials at all levels to turn their backs on this bloody regime,” said Under Secretary for Terrorism and Financial Intelligence David S. Cohen.

Signed by President Obama on May 18, 2011, E.O. 13573 targets those determined to be senior officials of the Government of Syria. U.S. persons are generally prohibited from engaging in transactions with any of the designees and any assets they may have subject to U.S. jurisdiction are frozen.

Designated Individuals:

Dawood Rajiha

Dawood Rajiha was appointed Minister of Defense on August 10, 2011 and was reportedly chosen for his loyalty to the Asad regime.

Munir Adanov

Munir Adanov has served as Syria’s Deputy Chief of Staff of the Army since at least July 2010 and has accompanied President Asad on several high-level official visits abroad. Adanov was sanctioned by the European Union in August 2011, for his direct involvement in “repression and violence against the civilian population in Syria.”

Zuhayr Shalish

As Syria’s Head of Presidential Security, Zuhayr Shalish has served as Bashar Asad’s personal bodyguard. In July 2011, Shalish, a relative of Bashar Asad, was sanctioned by the European Union for his involvement in “violence against demonstrators.”

NASA, PARTNERS SOLICIT CREATIVE WASTE-MANAGEMENT SOLUTIONS

The following excerpt is from the NASA website:
NASA, the U.S. Agency for International Development (USAID), the State 
Department and Nike today announced a challenge to identify 10 
game-changing innovations that could transform waste-management 
systems and practices. Waste management is important for planning 
long-duration human spaceflight missions to an asteroid, Mars or 
beyond. 

Humans living off the planet require waste solutions that mirror 
issues facing people on Earth. In the hostile environment of space, 
waste must be eliminated or transformed in the most efficient and 
cost-effective manner possible. The innovations, which will be 
presented at the LAUNCH: Beyond Waste forum, may lead to practical 
applications for astronauts as we send humans deeper into our solar 
system. 

The challenge will be open April 1-May 15 and will seek creative 
solutions to minimize waste or transform it into new products in 
space and on Earth. Forum partners will select 10 innovators to 
present their technology solutions at the LAUNCH: Beyond Waste forum, 
hosted by NASA July 20-22, at the agency's Jet Propulsion Laboratory 
in Pasadena, Calif. 

NASA and the LAUNCH Council -- thought leaders representing a diverse 
and collaborative body of entrepreneurs, scientists, engineers, 
government, media and business -- will participate in the forum and 
help guide these innovations forward. The selected LAUNCH innovators 
will receive networking and mentoring opportunities from influential 
business and government leaders, as well as portfolio presentations. 

Previous LAUNCH forums have focused on water, health and energy. These 
forums resulted in innovations, including technology that enables 
irrigation using brackish, saline and polluted water; a biodegradable 
needle that can deliver vaccines or medicine under the skin using a 
pressure device; a tiny holographic microscope attached to a cell 
phone that can detect parasites and bacteria in blood and water in 
remote locations; a handheld lab-in-a-box that diagnoses a variety of 
diseases in a matter of minutes; a modular, flexible smart-grid 
distribution technology to provide access to power for those in need; 
and a simple, affordable fuel cell that converts biomass directly to 
electricity. 

LAUNCH was created to identify, showcase and support innovative 
approaches to global sustainability challenges. LAUNCH searches for 
visionaries whose ideas, technologies or programs show great promise 
for making tangible impacts on society in the developed and 
developing worlds. 

STATE DEPARTMENT OFFICIAL ON PIRACY OFF THE HORN OF AFRICA

The following excerpt is from a Department of State e-mail:
Piracy Off the Horn of Africa
Remarks Andrew J. Shapiro
Assistant Secretary, Bureau of Political-Military Affairs Remarks to the Center for American Progress
Washington, DC
March 27, 2012
Thank you for inviting me here today. I want to thank the Center for American Progress [CAP] for having me here to speak on the important subject of piracy off the Horn of Africa. CAP is a tremendous leader in developing new ideas and in approaching issues in new ways. I come here before you today to talk about an issue that the Obama administration has also had to approach in new and innovative ways.

Despite the romantic notions surrounding piracy of previous centuries, modern day piracy represents a new and complex threat to the international community. While piracy at sea is certainly not a new problem, its modern re-incarnation has an impact of a different magnitude. Piracy off the coast of Somalia threatens one of the principal foundations of today’s modern interconnected global economic system – and that is freedom of navigation on the high seas. In a globalized world, the impact of piracy in one area of the world can cause a ripple effect greater in magnitude than ever before. We live in an era of complex, integrated, and on-demand global supply chains. People in countries around the world depend on secure and reliable shipping lanes for their food, their medicine, their energy, and consumer goods. By preying on commercial ships in one of the world’s most traversed shipping lanes, pirates off the Horn of Africa threaten more than just individual ships. They threaten a central artery of the global economy, and therefore global security and stability.

When the Obama administration came to office the problem of piracy off the coast of Somalia was snowballing out of control. In 2007 and 2008 pirate attacks began to escalate dramatically. A vicious and reinforcing cycle was forming. Motivated by escalating ransom payments – which grew into the millions of dollars – and a lack of other employment opportunities, more and more Somali men took to the waters. Piracy, as a result, went from a fairly ad hoc, disorganized endeavor to a highly developed transnational criminal enterprise. Flush with money, pirates were also able to improve their capabilities and expand their operations further and further away from shore.

To make matters worse, Somalia offered pirates near ideal conditions. Piracy is a prime example of the dangers and problems that can arise from the presence of ungoverned spaces in our globalized world. In places where pirates operate – through the coastal areas in Puntland and parts of central Somalia – the lack of governance and weak institutions provide them with a safe haven. Additionally, with more than two thousand miles of coast line and with the Gulf of Aden to its north, Somalia sits along one of the busiest shipping lanes in the world. International seaborne trade traversing through the Suez Canal to get from the United States or Europe to Asia must also travel through the Gulf of Aden and therefore along Somalia’s coast. This high volume of trade means that there is virtually an endless supply of ships for Somali pirates to target.

Piracy emanating from Somalia therefore represented a perfect storm for the international community – a weak state in a strategically essential location that harbors a rapidly growing transnational criminal enterprise and which threatens a vital artery of the global economy. Action had to be taken.

While there seemed to be no limit to the growth of piracy, through the collective effort of the United States, the international community, and the private sector, we are now seeing signs of clear progress. The numbers clearly demonstrate this. In 2011, the number of successful pirate attacks fell by nearly half. As a result, there has been a significant drop in the numbers of ships and crew held hostage. In January 2011, pirates held 31 ships and 710 hostages. In early March of 2012 pirates held eight ships and 213 hostages – a roughly 70 percent decline. This is still way too many, but it is clear advances are being made.

Today, I want to talk to you about the U.S. response to Somali piracy and why I think our efforts, and the efforts of the international community and the private sector are having an impact. In combating piracy, the Obama administration has pursued a strategy that seeks to leverage all elements of U.S. power. We have developed and pursued an integrated multi-dimensional approach toward combating piracy that focuses on:
diplomatic engagement to spur collective international action;
expanding security on the high seas through the use of naval assets to defend private vessels and to disrupt pirate attacks;
preventing attacks by encouraging industry to take steps to protect itself;
deterring piracy through effective legal prosecution and incarceration;
and finally debilitating the networks that support piracy operations.
Let me now turn to talk about our diplomatic response. The international community has adopted innovative steps to address the problem of piracy. For our part, the United States has helped lead the international response and galvanize international action. As the State Department’s Quadrennial Diplomacy and Development Review concluded, “solving foreign policy problems today requires us to… bring countries and peoples together as only America can.” This is exactly what the United States has done when addressing the problem of piracy.

From the beginning, the United States has adopted a multilateral approach focused on addressing this issue as a shared challenge. Piracy affects the international community as a whole and can only be effectively addressed through broad, coordinated, and comprehensive international efforts. In January 2009, the United States helped establish the Contact Group on Piracy off the Coast of Somalia to both prompt action and coordinate the efforts to suppress Somali piracy. The Contact Group is based on a voluntary membership and was established concurrent with the UN Security Council’s passage of Resolution 1851. It now includes over 70 nations as well as international and maritime industry organizations, to help coordinate national and international counter-piracy policies and actions.

The Contact Group serves as an essential forum for interaction between states and regional and international organizations. A number of specialized working groups were established within the Contact Group to address a variety of subjects, including, naval coordination at sea, judicial and legal issues concerning captured pirates; and public diplomacy programs in Somalia to discourage piracy. Through these working groups, the Contact Group adopts a problem solving approach toward addressing piracy. While we don’t always agree on everything, we agree on a lot and this coordinated international engagement has spawned action. In this regard, the Contact Group helps synchronize the international efforts underway to prevent duplication and to maximize the impact of international efforts.

The issue of piracy has also become a significant component of our diplomatic engagement with countries. This is something we see at the State Department in our dealings with countries across the globe. When I engage in diplomatic talks with countries as varied as Indonesia and Brazil, piracy is on the agenda. It is a shared challenge that many countries have an interest in seeing addressed. The issue of piracy therefore has an ancillary diplomatic benefit, as it often proves to be a useful subject for us to discuss with countries with which we are looking to expand our security relationship.
Our response to piracy is an example of how we are seeking to lead in new ways, by reaching out to new actors, building new kinds of partnerships and coalitions. American diplomatic engagement and leadership on piracy has helped catalyze the action of others so that the burden of maintaining global stability is shared.

Now let me turn to talk about how we are increasing security at sea. As pirate attacks increased, the United States, NATO, the EU, and many other national navies took action.

The United States established Combined Task Force 151 – a multinational task force charged with conducting counter-piracy naval patrols in the region. It operates in the Gulf of Aden and off the eastern coast of Somalia, covering an area of over one million square miles. In addition, there are a number of coordinated multinational naval patrols off the Horn of Africa. NATO is engaging in Operation Ocean Shield, the European Union has Operation ATALANTA, and other national navies in the area conduct counter-piracy patrols as well. On any given day up to 30 vessels from as many as 20 nations are engaged in counter-piracy operations in the region, including countries new to these kinds of effort like China, India, and Japan. U.S. and international naval forces have thwarted pirate attacks in progress, engaged pirate skiffs, and successfully taken back hijacked ships during opposed boardings.

We have also sought to create a safe transit corridor for commercial shipping vessels. U.S. Naval Forces Central Command or NAVCENT has worked with partners to set up a nearly 500-mile long transit corridor through the Gulf of Aden. This transit zone is heavily patrolled by naval forces and used by some countries for convoy operations. The corridor has helped reduce the number of attacks within the transit zone but it also has had the unfortunate side effect of pushing pirate activities further out to sea.

This demonstrates how pirates are constantly adapting their tactics in response to international efforts. One example of this is their expanded use of mother-ships – which are themselves pirated ships with hostage crews aboard. These ships launch and re-supply groups of pirates who use smaller, faster boats for attacks. They can carry dozens of pirates and tow many skiffs for multiple simultaneous attacks. This has made pirates more difficult to interdict and more effective at operating during monsoon season, which previously restricted their activities. Mother-ships have extended the pirates’ reach far beyond the Somali Basin. Somali pirates now operate in a total sea space of approximately 2.5 million square nautical miles – an area equivalent to the size of the continental United States. Pirate activity has even extended as far as the waters off the coast of India. This increase makes it difficult for naval or law enforcement ships and other assets to reach the scene of a pirate attack quickly enough to disrupt an ongoing attack. There is just too much water to patrol.
But in the cat and mouse game that is modern day piracy, we have responded as well. Since discovering the use of mother-ships, international navies now seek to identify and interdict mother-ships when possible. These are very delicate engagements however. With hostages on board and with mother-ships sometimes capable of traveling thousands of miles, interdictions and contested boardings of mother-ships by international navies are at times not possible. Yet we are making progress in isolating these vessels when discovered and boarding when necessary.

An example of this occurred in January of this year, when the U.S. Navy rescued an Iranian fishing vessel that had been hijacked and was being used as a mother-ship. The mother-ship was discovered when its skiffs launched an attack on another commercial vessel travelling nearby. Under attack, the commercial vessel contacted the US Navy, which was able to respond in time, forcing the pirates to break off their attack and head back to their mother-ship. While the pirates thought that was the end of the engagement, U.S. forces were on their tail and tracked the pirate skiffs undetected back to the Iranian vessel. When U.S. warships approached, all 15 pirates surrendered and the Iranian crew held hostage aboard was freed. The pirates were arrested by U.S. forces and were transported to the Seychelles for prosecution. This case demonstrated our principled commitment to freedom of navigation no matter the country impacted.

The American public should also know that this administration will do everything it can to ensure the safety and security of American citizens threatened by pirates. The Obama administration has made clear that it will act aggressively to rescue and protect American citizens threatened by piracy and that it will act diligently against those who perpetuate these crimes. Just months into office, President Obama was confronted with the hostage taking of the American captain of the MAERSK Alabama. The President authorized the use of force to rescue the captured captain and after a long standoff, U.S. Navy Seals successfully freed the captain by force. And this year, just hours before the State of the Union address, President Obama ordered U.S. special forces to rescue an American and a Danish aid worker being held hostage on the ground in Somalia. The health of the American hostage Jessica Buchanan was deemed to be in jeopardy and President Obama ordered U.S. forces to attempt a rescue mission. This dangerous mission clearly demonstrated our resolve. If you attack or capture an American citizen, we will act vigilantly and aggressively to make sure you face justice.

Private Sector
Another integral part of the response to piracy has been the critical role played by the private sector in taking measures to prevent and deter attacks. Perhaps the most significant factor in the decline of successful pirate attacks has been the steps taken by commercial vessels to prevent and deter attacks from happening in the first place. We have found that the best defense against piracy is often simply vigilance on the part of the maritime industry.

In response to the growing threat, we worked with the shipping industry to expand and develop its implementation of industry-developed “best management practices” to prevent pirate boardings before they take place. These include practical measures, such as:
proceeding at full speed through high risk areas;
employing physical barriers such as razor wire;
posting additional look-out;
reporting positions to military authorities; and
mustering the crew inside a “citadel” or safe-room in the vessel when under attack.
These steps, when properly implemented, remain some of the most effective measures to protect against, and repel, pirate attacks. Recognizing the value of these measures, the U.S. government has required U.S.-flagged vessels sailing in designated high-risk waters to take additional security measures. Nevertheless, we remain troubled that there are still commercial ships travelling through pirate-infested waters that have yet to implement proper security measures. Approximately 20 percent of all ships off the Horn of Africa are not taking proper security precautions. Unsurprisingly, these account for the overwhelming number of successfully pirated ships.

However, we must also recognize that even when fully implemented best management practices do not guarantee security from pirates. As a result, we have also supported the maritime industry’s use of additional measures to enhance their security – such as having armed security teams on board. To date, not a single ship with Privately Contracted Armed Security Personnel aboard has been pirated. Not one.

These teams serve as a potential game-changer in the effort to counter-piracy. While many expected these teams to be made up of undisciplined “cowboys” that would cause an increase in the violence at sea, from what we have seen so far this has not been the case. We have not seen cases of pitched battles at sea between pirates and armed security personnel. In fact, in most engagements, the situation ends as soon as pirates are aware an armed security team is on board. In most cases, as pirates approach a ship the armed security teams will use flares or loudspeakers to warn the pirates. If the pirates keep coming, they will fire warning shots. That is usually when the interaction ends. Pirates break off the attack and turn their skiffs around and wait for another less protected ship to come by. These teams therefore have served as an effective deterrent.

However, when a vessel is successfully hijacked our foremost concern is always about the safety of the crew, regardless of nationality. The U.S. government is acutely aware of the dilemma that ship owners face when ships and sailors are taken hostage. While the safety of the crew is critical, we must all acknowledge that submitting to pirate ransom demands only ensures that future crews will be taken hostage. The United States has a long tradition of opposing the payment of ransom, and we have worked diligently to discourage or minimize ransom payments. While some may consider this the cost of doing business, every ransom paid further institutionalizes the practice of hostage-taking for profit and promotes its expansion as a criminal enterprise. We strongly encourage flag States, shipowners and private parties involved in hostage crises to seek assistance from appropriate U.S. government sources in their crisis management procedures.

The enormous ransoms that are paid out make the kidnapping-for-ransom industry incredibly lucrative. The average ransom is now at $4.5 million per incident and has reached as much as $12 million. We also know that lucrative industries fight hard to stay in business. Indeed, despite the decline in successful attacks, the overall number of attempted attacks actually increased slightly in 2011 compared to 2010. In light of the pirates growing difficulties at sea, we have seen pirates shift to targeting hostages on land, such as with the captured American and Danish aid workers. Pirates’ ability to adapt means that the maritime industry and the international community must be constantly vigilant in assessing the effectiveness of self-protection measures.

Prosecution, Incarceration, and Pirate Networks
Now let me turn to another aspect of our response – our efforts to deter piracy through effective apprehension, prosecution and incarceration of pirates and their supporters and financiers. Today, over 1,000 pirates are in custody in 20 countries around the world, most are or will be convicted and sentenced to lengthy prison terms.
An important element of our counter-piracy approach involves renewed emphasis on enhancing the capacity of states – particularly those in the region – to prosecute and incarcerate suspected pirates. The United States is currently supporting efforts to:
increase prison capacity in Somalia;
develop a framework for prisoner transfers so convicted pirates serve their sentence back in their home country of Somalia;
and to establish a specialized piracy chamber in the national courts of one or more regional states.

We are seeing progress in this area. Last year a new maximum security prison opened in northern Somalia to hold convicted pirates. And just this past month the government of the Seychelles once again demonstrated its tremendous commitment to combating piracy by accepting the 15 pirates captured from the Iranian fishing vessel for prosecution.
Nevertheless, the capacity and willingness to prosecute and incarcerate pirates is limited. Countries in the region that might be able and otherwise willing to prosecute Somali pirates in their national courts often decline to do so because they do not want to take dozens of Somali pirates into their already overburdened prison systems. In this regard, we are in some ways a victim of our own success. We are apprehending more pirates at sea, leading to more crowded prisons. Expanding the capacity to prosecute and incarcerate pirates is a real challenge and is one that the international community, including the governments of flag states and ship owners, will have to work hard to address.

As piracy has evolved into an organized transnational criminal enterprise, it is increasingly clear that the arrest and prosecution of pirates captured at sea is insufficient on its own to meet our longer term counter-piracy goals. Most pirates captured at sea are often low-level operatives. The sad fact is that prosecution is often a limited deterrent for men lacking employment opportunities onshore and who are willing to embark hundreds of miles out to sea in nothing more than a small boat – exposed to the elements and often with limited fuel. Sometimes pirates fail to carry enough fuel to get back from a voyage, which forces them to take remarkable risks in attempting to hijack vessels. An untold number of pirates are lost at sea every year. Part of what makes piracy seem so intractable is that despite these dangers, the lack of other economic opportunities in coastal communities means there is no shortage of willing recruits for pirate organizers to choose from.

After an intensive review of our strategy last year, Secretary Clinton approved a series of recommendations which, taken together, constitute a new strategic approach. A focus on pirate networks is now at the heart of our strategy.

We are using all of the tools at our disposal in order to disrupt pirate networks and their financial flows. We are focused on identifying and apprehending the criminal conspirators who lead, manage, and finance the pirate enterprise, with the objective of bringing them to trial and disrupting pirate business processes. Often, the best way to attack organized crime is to follow the money. Pirate organizers receive income both from investors and ransom payments, and disburse a portion of the proceeds of ransoms back to these investors. Already, the United States has indicted and is prosecuting two alleged Somali pirate negotiators.

The Contact Group recently validated the importance of this approach and formed a new working group to assist in multilateral coordination to disrupt the pirate enterprise ashore. We are working to connect law enforcement communities, intelligence agencies, financial experts, and our international partners to promote information sharing and develop actionable information against pirate conspirators. This effort will include tracking pirate sources of financing and supplies, such as fuel, outboard motors, and weapons.

Situation on the Ground in Somalia
Lastly, the only long-term solution to piracy is the re-establishment of stability, responsive law enforcement, and adequate governance in Somalia. This will require concentrated and coordinated assistance to states in the region – including those parts of Somali society with which we can work – to build their capacity to deal with the social, legal, economic and operational challenges to governance, effective law enforcement and economic development. To that end, the United States continues to support the Djibouti Peace Process, the Transitional Federal Government (TFG), and other regional authorities working toward these same goals. Last month Secretary Clinton attended the London Conference on Somalia, which the United Kingdom convened to galvanize high-level international support for Somalia’s political transition.

As the Secretary noted, Somalia is at a critical juncture, with less than five months left to complete the Roadmap to End the Transition. The United States and its partners are working to help the TFG and other Somali leaders seize this opportunity to make progress toward greater security and political stability. We also welcome the expansion of the troop level, mandate, and logistical support package for the African Union Mission in Somalia (AMISOM). AMISOM has made impressive security gains over the past several months, and we believe this positive trend will continue and will provide additional space for political progress and humanitarian access.

However, acknowledging the difficult situation on shore does not preclude progress at sea. While there is no simple solution to modern-day piracy, we are making advances to address what was seemingly an intractable transnational problem. The effective and coordinated international response to piracy also provides an example of how – with U.S. leadership – the international community can respond to other transnational threats and challenges that emerge. The U.S. response to piracy is also a prime example of how we as a government can address new and emergent transnational challenges. Addressing these threats requires us to be flexible and innovative in how we respond. It also requires agencies across the U.S. government to work together so that we bring every tool that we have to bear – including our diplomatic, military, law enforcement, economic, and intelligence tools. There isn’t just one thing we can do, or just one policy we can implement, that will simply solve piracy. Reducing and mitigating the threat posed by piracy will be long, hard work. But it is clear that the multi-faceted nature of our response is having an impact. While pirates will continue to adapt and evolve, it is vital that we stay vigilant and continue our efforts – the security of the region and the global economy depend on it.
With that I will be glad to take your questions.