A PUBLICATION OF RANDOM U.S.GOVERNMENT PRESS RELEASES AND ARTICLES
Wednesday, April 18, 2012
U.S. STATE DEPARTMENT DAILY PRESS BRIEFING
Mark C. Toner
Deputy Spokesperson
Daily Press Briefing
Washington, DC
April 18, 2012
TRANSCRIPT:
1:17 p.m. EDT
MR. TONER: Everyone, welcome to the State Department. Just quickly at the top, I do want to note that World Press Freedom Day is approaching. I’m sure it’s something you all have a date on your calendars that you all have, given your profession. And UNESCO will be hosting its annual conference in Tunis beginning on May 3rd. I believe Assistant Secretary for International Organizations Esther Brimmer will be attending that on behalf of the United States and will deliver the keynote address on May 3rd.
But every year, the U.S. Government, as you know, we mark World Press Freedom Day. This year we’re trying something a little bit different in light of the large number of journalists who have been jailed, attacked, disappeared, or forced into exile or even murdered. As part of our Free the Press campaign, we’ll be highlighting some of these freedom of expression cases on our website, which is HumanRights.gov.
Today, for example, there’s a profile of the jailed Vietnamese blogger Dieu Cay. And as the – and continuing this run-up to World Press Freedom Day, we’ll continue to roll out cases from around the world that are emblematic of the problems facing your counterparts and colleagues as they try to do their job throughout the world.
I would also note if you’re really interested in a deeper dive on this subject, Under Secretary Sonenshine, as well as Assistant Secretary Posner, gave a press conference earlier today at the Foreign Press Center, and I’m sure there’ll be a transcript available of that.
Matt. By the way, I missed you yesterday. I apologize.
QUESTION: Well, thank you for – (laughter) – the apology. I’m not sure you’re really telling the truth that you miss me, but –
MR. TONER: (Laughter.)
QUESTION: I actually don’t have anything that really warrants starting the briefing with, so I’ll defer to whoever.
MR. TONER: Okay. Shaun, you got anything?
QUESTION: Sure. Well, to begin with, in Burma, Aung San Suu Kyi, she’s going to be traveling for the first time overseas since her house arrest, to speak – going to be going to Norway and to the UK. I was wondering – presumably, the Secretary invited her during her trip last year. Are there any plans in the near future for Aung San Suu Kyi to come here?
MR. TONER: Well, Shaun, as you correctly noted, we – she certainly would always have an open invitation to carry on the dialogue that began when the Secretary was in Burma. I don’t know that there’s any plans at this time, but certainly we welcome, in fact, her ability to go out and travel to these countries and to engage in a dialogue with these governments; view it as a positive sign.
QUESTION: Sure. Could I switch topics --
MR. TONER: Sure thing.
QUESTION: -- to Sudan? Just want to see if you could have any update on Princeton Lyman’s visit there, and also a look at the developments now. President Bashir earlier today gave a speech where he was talking about the potential overthrow of the South Sudanese authorities. I think he referred to them as insects. Just what your read is on the situation and what Princeton Lyman’s been able to do, or not do?
MR. TONER: Well, as you noted, there’s a lot of unconstructive rhetoric being thrown around. We’ve also seen reports of new fighting along the Sudan-South Sudan border. Our central message is the same as it was yesterday. We continue to call for an immediate and unconditional cessation of violence by both parties, and that means we want to see the immediate withdrawal of South Sudanese forces from Heglig, and we want to see the – an immediate end to all aerial bombardments of South Sudan by the Sudanese armed forces.
Just – you asked about Princeton’s travels. He was, as you noted, in Khartoum. He has held high-level meetings with the Government of South Sudan, as I mentioned yesterday, including President Kiir, and he is in Khartoum today meeting with Sudanese officials.
QUESTION: Do you know whom he met?
MR. TONER: I don’t have a list of the officials with whom he met. I’ll try to get that for you.
QUESTION: Is he still there? Is he planning to continue his work, or is that --
MR. TONER: He’s still there for the time being. I don’t know where he’ll go from Khartoum.
QUESTION: Follow on that, please.
MR. TONER: Yeah. Sure.
QUESTION: In that rally, President al-Bashir said that his main target is now to liberate the people of Southern Sudan from the SPLM. Does that raise concerns about what you think Khartoum’s respect for that new border?
MR. TONER: Well, I mean, obviously, given the escalation of violence over the past few weeks, given the rhetoric that’s being thrown about, we’re very concerned. We continue to, as we’ve said, through Princeton on the ground as well as publicly here, call for both sides to get back to the AU process. The Secretary spoke about this a few weeks ago, where she said it’s absolutely in both sides’ interests to get back to the negotiating table to settle borders, to talk about resources, and sharing of those resources. The situation such as it is right now gains nothing for either side.
QUESTION: Could I --
MR. TONER: Yeah. Go ahead, Andy.
QUESTION: Just another one on that because, I mean, you have been making this comment for quite a while now, and yet it seems to be falling on deaf ears. Is there any backup plan or second strategy that you guys might have to try to get these guys back to the negotiating table? I mean, it seems like the Thabo Mbeki initiative isn’t going anywhere. Princeton Lyman hasn’t been able to get them to do what everyone says they should do, which is pull back. Why – I mean, isn’t there anything else that the international community can do to get this together?
MR. TONER: Well, as you know, we’ve already – we still are – have sanctions in place against the Government of Sudan. I think part of this is trying to remind both parties what there is to gain to a peaceful resolution of this conflict and these contested areas. As I just said, there’s absolutely no military solution to the present situation. We’re going to continue with the on the ground diplomacy from Princeton. I know that Mbeki was in – at the UN, I believe, yesterday where he briefed the Security Council on the situation. People are concerned about the situation there. I think they’re concerned about the escalation and fighting, but we remain engaged with both sides.
Yeah. In the back.
QUESTION: Different subject?
MR. TONER: We can go ahead with a different subject.
QUESTION: (Inaudible) from The Guardian. The story in The New York Times this morning about China and Bo Xilai. I know the State Department has said repeatedly it doesn’t discuss asylum-seeking requests, but The New York Timestoday – a few wrinkles that make it different. There’s discussion – why did the State Department or the consulate agree to cooperate with the authorities and hand him over to someone in Beijing rather than in Chengdu? Why was a discussion with the White House about the – whether this would impact on the visit with Biden?
Sorry, just a related thing. There’s also a report in the last few days suggesting that Bo Xilai’s son was taken from his apartment under escort. Was he taken into custody for his own protection or what?
MR. TONER: I’ll start with your second question first. I – we’ve had inquiries about his son. As far as we know, there’s nothing to those reports. I can recommend you contact local authorities, but as far as we know, there’s nothing to those reports. He remains at school at Harvard.
In response to your first question, I agree it was an interesting read based on anonymous sources within the U.S. Government. Obviously, I can’t speak to the credibility of any of their statements. I can only say that, as we’ve said previously, that Wang Lijun requested a meeting with U.S. Consulate General Chengdu officials in early February. That meeting was scheduled accordingly. He was there, I believe, on Monday, February 6th and Tuesday, February 7th, and left of his own volition. But I can’t talk about the contents of that meeting.
Yeah.
QUESTION: Can I follow up on that?
MR. TONER: Sure.
QUESTION: Wang Lijun – his current status and – are there any concerns about his status right now? He was taken into custody after --
MR. TONER: Well again, we don’t – we have no contact with him since his departure from the consulate. So I’d just have to refer you to the Chinese Government for any information.
Yeah, go ahead.
QUESTION: I have a Canada question, if I may.
QUESTION: Well, wait.
MR. TONER: Sure. We can stay on this topic. We’ll stay. We always finish the topic and then --
QUESTION: Okay. Sure. Fantastic.
QUESTION: Sorry. What – you can’t speak to the credibility of colleagues of yours? You’re saying that they’re incredible?
MR. TONER: I said I can’t speak to quotes from anonymous sources in a newspaper article.
QUESTION: Well, let’s not talk about their quotes.
MR. TONER: Okay.
QUESTION: Let’s talk about what they actually said. I mean, is it correct that he brought with him documents that were related to – or that you presume that the consulate employees presume to – or that he said had to do with corruption and investigation into --
MR. TONER: Again, I’m not going to get into the discussions that were held. I can only confirm that he was at the consulate in Chengdu on the dates that I just specified. I can’t get into the contents or what we discussed or --
QUESTION: There wasn’t any concern – well, there was no request for asylum?
MR. TONER: I couldn’t speak about it if it were.
QUESTION: There – is it correct that the U.S. Government does not like to give asylum to people with – who have somewhat checkered records?
MR. TONER: There’s no way for me to – I mean, asylum cases are all – follow a precise legal framework, and in fact, many of those – almost all asylum cases – speaking now globally or largely about the issue, all asylum cases, I believe, are carried out within the United States.
QUESTION: Did the Embassy actually make it – facilitate his phone call to officials in Beijing?
MR. TONER: I can’t comment on that.
QUESTION: You can’t comment because you don’t know or because you --
MR. TONER: I can’t comment on it because I don’t know --
QUESTION: Because that’s the purview of anonymous officials speaking in The New York Times.
MR. TONER: -- but it would also be within the purview of our diplomatic exchanges with another individual and a country. So we don’t need to --
QUESTION: Oh okay. So --
MR. TONER: -- talk about the substance of those conversations.
QUESTION: -- when he showed up --
MR. TONER: Or those meetings.
QUESTION: -- at the consulate, he was acting on behalf of the Chinese Government?
MR. TONER: Matt, I think I’ve gone about as far as I can on this. He came to the consulate, he requested a meeting --
QUESTION: Right.
MR. TONER: -- it was scheduled --
QUESTION: As a member of the Chinese --
MR. TONER: He was there on the dates --
QUESTION: -- Government? Or as an individual?
MR. TONER: It was in his capacity as vice mayor.
QUESTION: In his capacity as vice mayor. And you regard the vice mayor of Chengdu to be an official of the national --
MR. TONER: A local government official, yes.
QUESTION: A local government official, which is that --
MR. TONER: And again, those conversations would be confidential, absolutely.
QUESTION: Except when your colleagues speak about them to The New York Times.
MR. TONER: Again, I can’t speak to the veracity of any of the --
QUESTION: I’m just curious if you can’t speak to the veracity of them because you think that – because they’re not true, or you can’t speak to the veracity of them because you were told that you can’t speak to the veracity.
MR. TONER: Let’s try to end this line of conversation, because I don’t think it’s productive. I can’t speak to the veracity of any anonymous officials being quoted in newspapers.
QUESTION: You could speak to the veracity of what those people said, though.
MR. TONER: And I can’t speak to the substance of any of this issue – this story. I can’t talk about what was discussed in the meeting for reasons I just gave. I can only confirm there was a meeting. He left there on his own volition. We’ve not had contact with him since.
QUESTION: Did you understand that he left alone, as he came?
MR. TONER: I don’t know that.
QUESTION: Have you sought to make contact with him since then?
MR. TONER: I don’t know.
QUESTION: You don’t know.
QUESTION: Well, is it correct that the Administration believes that it has been put into a position that it was – in other words, put into a position that it doesn’t want to be in, involved in the middle of a power struggle in the Chinese Government, or the Chinese couldn’t --
MR. TONER: Well, again, that wouldn’t be – it wouldn’t be my position to comment on internal Chinese politics.
QUESTION: Well, no, I’m not asking you about internal Chinese politics. I’m asking about --
MR. TONER: I thought you were.
QUESTION: No, no. I’m saying is it correct – the statement in the story says that it’s pressed the Administration into a position that it doesn’t want to be in, that it really doesn’t want to have anything to do with power struggles and internal Chinese power struggles.
MR. TONER: Well, I’m not going to --
QUESTION: Is that correct? Do you not --
MR. TONER: To talk about some of the implications of this – that are discussed in this story would be to, I think, address the substance of the story, and I said I’m not going to get into that.
Yeah, go ahead.
QUESTION: Mark, move back to Syria?
MR. TONER: We can go to Syria.
QUESTION: Okay. Well, France has pulled for tougher sanction and Secretary Clinton will be tomorrow in Paris. First, will she join the Friend of Syria meeting? Secondly, will she propose something new in light of the new escalation on the ground?
MR. TONER: Thank you. You stole my top line, but you already heard the Secretary from Brussels said she will be attending tomorrow, Thursday, the ad-hoc meeting taking place in Paris with a group of foreign ministers to discuss next steps on Syria. I think she spoke to this; Ambassador Rice spoke to it earlier in New York, of our concern that the ceasefire is showing signs of eroding, that the other conditions laid out in the Annan plan are not being fulfilled.
That said, the Secretary was clear that she didn’t want to prejudge the success of the monitoring mission. It is moving forward. There are more monitors on the ground and there will be more in the coming days. And we’re going to look to their reporting back, as well as, I believe the Secretary General himself is going to provide a report on the monitoring mission, the scope and the size of it in the coming days.
QUESTION: Mark, just wanted to – the Secretary also said that the international community’s response to Syria is at a critical point and that --
MR. TONER: She did.
QUESTION: -- Assad can either let the monitors do their job or squander his last chance. And the question is: Or what? Squander his last chance or what happens? More expressions of outrage, or is there actually a plan?
MR. TONER: Well, I think the plan going forward – there’s going to be this meeting. We’ve always had a two-track approach to this, as you well know. We’ve – well, actually three tracks. I mean, there’s been our unilateral sanctions against Assad, but there’s also been the UN track, which we saw bear fruit with the latest Security Council resolution. And we’ve also been pursuing this Friends of Syria track and working with likeminded countries and organizations around the world.
And that’s what the goal of tomorrow is, is that she’s going to be there talking about what possible next steps we can do, undertake, to put more pressure on Assad. I think the sanctions working group met yesterday in Paris and had the chance to talk about further coordination on – and sanctions. So our basic thrust here is the same. We’re going to continue to work to implement the Annan plan, while at the same time, we’re going to continue to look at ways we can add more sanctions, more pressure on Assad as we move forward.
QUESTION: So I’m curious about --
MR. TONER: Yeah, go ahead.
QUESTION: -- your choice of words. You said the ceasefire is showing signs of eroding. Really? Showing --
MR. TONER: Is that too much passive voice? I’m sorry.
QUESTION: Well, I don’t know. No, no. Not too much passive voice. I mean, just think it’s -
PARTICIPANT: I mean, I think it’s --
QUESTION: -- because seems like it’s a total mudslide. It’s not just showing signs of erosion. It’s like it didn’t – it’s a Grand Canyon-type erosion that we’re talking about here.
MR. TONER: Well, you are correct, Matt, that we have seen a lot of violence, almost to pre-ceasefire levels throughout the past 24 hours. I think I’ve seen that 70 people were killed in Syria yesterday and today, reports that at least 24 were killed.
QUESTION: Right.
MR. TONER: I don’t mean to downplay that at all.
QUESTION: Well, I mean, isn’t – this ceasefire seems to have been an increase fire, in fact, because it doesn’t look like – I mean, things have gotten worse rather than better since it happened. So I just don’t understand why you all have any confidence that adding an additional 30 or 25 monitors in the short term and then presumably, if the Syrians even agree to it, adding another 250 or 300 is actually going to do anything. It just seems to be, to use one of your words, Pollyanna-ish to think that that’s --
MR. TONER: One of my words?
QUESTION: Yeah.
MR. TONER: In any case, look, we aren’t under any illusions here. It is very clear that the violence is beginning to return. The Secretary, Ambassador Rice both spoke to the fact that the onus is on Assad. He needs to comply with the Annan plan. He needs to take steps to meet its conditions. He hasn’t done so. Even with the ceasefire, it wasn’t enough. There are other aspects to the plan, including the release of political prisoners and access for international media and international humanitarian assistance.
There’s been no progress on any of those fronts, so we’re going to continue, as I just said to Andy, to look at Plan B or Option B, which is ways to increase the pressure on Assad as we move forward. But that said, we’re not going to prejudge the outcome of the Annan plan and this monitoring mission. If we can get 250 monitors on the ground reporting back credible information about the situation there, then that’s valuable.
QUESTION: So you don’t think that it’s already failed?
MR. TONER: I think we’re --
QUESTION: Even though it’s shown no – even though nothing – none of the conditions have been met, and one of them, the ceasefire, has actually gotten worse, not better, you don’t think that’s a sign of abject failure?
MR. TONER: I think we’re going to wait to hear back from the monitoring mission, from the secretary general, and even from Kofi Annan, but we are very concerned.
QUESTION: Because somehow, they can tell you what you don’t know already?
MR. TONER: No, Matt, but just to understand and to appreciate --
QUESTION: Because – well, I – okay, I get that you want to hear back from the guy whose plan it is, but frankly, that’s not going to be for another four or five days, right? I mean, he’s not expected to report back until at least the weekend, right?
MR. TONER: Well, it’ll be up to --
QUESTION: So that’s another four or five days that people are going to get slaughtered.
MR. TONER: Matt --
QUESTION: Am I right or am I wrong?
MR. TONER: I don’t think I’m trying to couch this in any other terms than a realistic expectation here that the ceasefire plan, as I just said, is eroding. I mean, we are very concerned about the situation there. The Secretary is going to Paris talking about next steps.
QUESTION: But I guess – my question is --
MR. TONER: Yeah.
QUESTION: My question is why not say this is --
MR. TONER: You’re saying why don’t we declare it --
QUESTION: Yeah, say, “All right, all right, we tried this one plan and it hasn’t worked. Clearly it hasn’t worked. And it’s now time to move to the next stage,” instead of waiting for another --
MR. TONER: Well, we’re not --
QUESTION: -- 150, 200 people to get killed?
MR. TONER: The bottom line is we’re not waiting. We’re going to continue to work with the Friends of Syria Group to put pressure on Assad. At the same time, we’re going to try to give the Annan plan more opportunity to work.
Yeah.
QUESTION: Did you get in touch with Moscow and exchange view with respect to this deterioration in the last 24 hours?
MR. TONER: I don’t believe the Secretary’s had any calls or contacts with Lavrov. Of course, I don’t know that – whether Ambassador Rice has spoken to her Russian counterpart in New York.
Yeah.
QUESTION: New topic, (inaudible)?
MR. TONER: Oh, sorry. Yeah, finish it (inaudible).
QUESTION: (Inaudible.)
QUESTION: I just – I was wondering – and I apologize if you addressed this last week, but there was this – that German ship that’s been towed to a port in Turkey --
MR. TONER: Right.
QUESTION: -- suspected of taking Syrian arms – arms to Syria. Do you guys have anything on that?
MR. TONER: Well, we have seen these reports that you mentioned. It’s a Ukrainian charted ship that’s now in a Turkish port that is apparently or allegedly carrying munitions to Syria. If true, this would be a violation of the EU arms embargo on Syria, and any aid to the regime’s violent capacities supports the killing of innocent victims, so we want to see the – we want to see it stopped and sanctioned.
QUESTION: But you don’t have any independent reason to believe that this is (inaudible)?
MR. TONER: I don’t at this point.
QUESTION: Sorry. How is it a violation of the EU arms embargo?
MR. TONER: Against Syria.
QUESTION: I’m sorry; I don’t understand. Turkey is not in the EU and neither is Ukraine, at least the last time I checked. Why would this be a violation?
MR. TONER: Look, I think that --
QUESTION: Turkey wants to be in the EU.
MR. TONER: (Laughter.) I know that they want to be in the EU.
QUESTION: Or at least they did.
MR. TONER: I’m aware of their aspirations. I think that we are calling on all countries that are unified – and certainly, Turkey is with us on our stance against the situation in Syria – to comply with existing embargos. And we would seek in this case --
QUESTION: Well, my understanding is there is not an arms embargo on Syria, a UN arms embargo, so who is the – who would be – I mean, the Russians or whoever the Ukrainians can ship as – whatever they want without violating – I mean, EU – an EU arms embargo, to me, suggests that that means that EU countries cannot send weapons to Syria.
MR. TONER: Well, again, I think it’s a fair question. I’m not sure the legality or the – all the legal aspects to it. I think fundamentally, what we’re trying to say here is that countries like Turkey have played a leadership role in speaking out against Syria and taking action against the regime there, and what they’re carrying out should be willing to comply with this.
QUESTION: You think that the ship is owned by a German company?
MR. TONER: I think it’s owned by a German company, thank you. As you know, these – the ships also – often have a long pedigree.
QUESTION: Venezuela?
MR. TONER: No, let’s do Canada.
QUESTION: Very quickly, I’m just wondering what you can tell us about the request to transfer Omar Khadr from Guantanamo Bay to Canada, how that process will now move ahead, and why the U.S. is so anxious to get this transfer moving.
MR. TONER: Well, I can say that the U.S. Government and the Canadian Government continue to work closely to effectuate Omar Khadr’s application to serve the remainder of his sentence in Canada, which was pursuant to his plea agreement. And the first step, as you know, in this process was completed last year, which was an exchange of diplomatic notes. And those notes continue to govern this transfer. We did recently approve the transfer of Khadr to serve the remainder of his sentence in Canada, and we’ve been in regular contact with the Canadian Government on this case. We’ve worked diligently to take appropriate steps consistent with the treaty, but we’re not going to be able to give you a transfer timeline. But we’re working quickly and deliberately to close this process out.
I think your question was: Why are we working so quickly? Well, as you know, we’re working to close Guantanamo Bay, and as part of that process, we’re trying to find homes, if you will, for the remaining prisoners.
QUESTION: Just a quick follow-up: Is there any more action that the United States has to take in order for this to happen, or is it now entirely in the hands of Canada?
MR. TONER: That’s a good question. I think I’ll have to take that question, frankly. I’m not sure whether we have any more legal steps we need to take in this process.
QUESTION: Thank you.
MR. TONER: Other than, obviously, the physical transfer.
Yeah, go ahead.
QUESTION: Venezuela?
MR. TONER: Sure.
QUESTION: Yesterday the highest official in the Venezuelan Government – Eladio Aponte, supreme court – defected to the United States as serious accusations against the Chavez government – high military officials, the closest aides to Chavez on corruption and drug trafficking. How this changes the dynamic of the U.S. Government relations with Venezuela?
MR. TONER: Well, with regard to his current status and situation, I’d have to refer you to the DEA. As to the larger issue, I don’t really have any comment on the broader implications of his transfer.
QUESTION: Is there a concern about corruption and narco-traffic within the highest echelons of the Venezuelan Government?
MR. TONER: Well, again, I think we talk about our concerns. We’ve talked about them before, about our concerns about drug trafficking and corruption, frankly, in the region and the negative effects of it. But as to this case, because of its legal ramifications, I can’t really talk about any more detail.
Yeah. Go ahead, Scott.
QUESTION: Have you finished studying Argentina’s proposed nationalization of YPF? Can you give us anything on that?
MR. TONER: Well, I can give you a little bit more today, yes. I can say that we’re very concerned about the Government of Argentina’s intent to nationalize Repsol YPF. Frankly, the more we look at this, we view it as a negative development along the lines of what the Secretary said the other day, in that these kinds of actions against foreign investors can ultimately have an adverse effect on the Argentine economy and could further dampen the investment climate in Argentina.
And just to add that we’ve raised this on numerous occasions and at the highest levels of the Government of Argentina; our concerns about these kinds of actions that can affect the investment climate in Argentina. And we would just urge Argentina to normalize its relationship with the international financial and investment community.
QUESTION: Just a quick follow-up on that. The Spanish foreign minister today said that this issue not only affects Spain’s interests or the European Union interests, it affects the interests of the whole international community. Do you agree with that?
MR. TONER: Well, insofar as along the lines of what I just said insofar as that it creates a very negative investment climate. Yes.
QUESTION: Thanks.
MR. TONER: Yeah, go ahead.
QUESTION: Palestinian issue?
MR. TONER: Sure.
QUESTION: According to press report, President Abbas, in his letter to Prime Minister Netanyahu warned that he might go back to the United Nation or he might raise legal issue before the international justice. Do you have any comment on that?
MR. TONER: Well, as we talked yesterday, I am aware that the parties did meet yesterday. Obviously we’re encouraged by these face-to-face exchanges. There was a letter that was exchanged. To your broader question, our position hasn’t changed with regard to going to the UN or other organizations. It’s not productive and conducive to creating the kind of atmosphere that’s going to get both parties back to the negotiating table.
Yeah, go ahead.
QUESTION: Did the U.S. get a copy from President Abbas of the letter he gave to the Israeli prime minister?
MR. TONER: I don’t know. Possibly. I don’t have confirmation. I haven’t spoken with David about that.
Yeah, go ahead.
QUESTION: I have a couple of little ones.
MR. TONER: Sure.
QUESTION: The first is the Indian Government had plans – they’ve now postponed them, but they have plans to test this new missile. Apparently it can carry payloads deep into China or perhaps even as far as Europe. I was just wondering if you’d had any communication with that – on that subject with them.
MR. TONER: Well, look, you know that we’ve got a very strong strategic and security partnership with India, so we obviously have routine discussions about a wide range of topics, including their defense requirements. I’m not aware that we’ve specifically raised this issue with them. We’ve certainly seen the reports that between April 18th and 20th that they plan to test this ballistic missile. As I – I think I understand or saw in press reports that it was postponed.
Naturally, I just would say that we urge all nuclear-capable states to exercise restraint regarding nuclear capabilities. That said, India has a solid nonproliferation record. They’re engaged with the international community on nonproliferation issues. And Prime Minister Singh, I believe, has attended both the nuclear – both of the nuclear summit – security summits, the one in Washington and then Seoul.
QUESTION: So you wouldn’t have any specific concerns on it as a destabilizing factor in the region?
MR. TONER: I think I’ll just stay with – the fact that we always caution all nuclear-capable states to exercise restraint.
QUESTION: Okay. And one other one --
MR. TONER: Yeah, go ahead.
QUESTION: On a separate issue, the Embassy in Abuja put out this morning about Boko Haram and threats to attack hotels. And the Nigerian Government has reacted rather unhappily to this warning, saying that it just fans panic. Did you guys run this by the Nigerians before you put it out? What sort of information was it based on? Can you tell us?
MR. TONER: Yeah. In response to your question about whether we ran this by the Government of Nigeria, I don’t know that we would be obliged to do so. I don’t know if we did in this case. We did receive, however, information that Boko Haram may be planning attacks in Abuja, Nigeria, as you said, against hotels frequently visited by Westerners. We don’t have any additional information regarding the timing of these attacks. But as you know, in accordance with the Department’s no double standard policy, when we deem a threat to any U.S. citizen – safety – rather a threat to a U.S. citizen’s safety or security to be specific, credible, and non-counterable, we do issue these kinds of emergency messages.
QUESTION: Specific, credible, and what?
MR. TONER: Non-counterable, meaning we can’t find any evidence to refute it.
QUESTION: Or non-counterable, meaning it can’t be stopped?
MR. TONER: No. Non-counterable meaning we can’t find any readily available evidence to dispute it.
QUESTION: And you can’t be any more specific?
MR. TONER: I can’t at this – no.
QUESTION: Because --
MR. TONER: Because I don’t know that we have any other information beyond what I just said, which is that – attacks against hotels frequented by Westerners. I’m sorry.
QUESTION: Well, no, I – the source of this information I think it was what the question was.
MR. TONER: I can’t. We don’t comment on the source of our threat information.
QUESTION: Well, do you regard it – you believe it to be specific and credible?
MR. TONER: Yes.
QUESTION: Like, so what you said?
MR. TONER: Yes. What I said.
QUESTION: Specific, credible, and non-counterable?
MR. TONER: Yeah.
QUESTION: On India (inaudible) --
MR. TONER: And I also asked what non-counterable meant, and I think that’s the explanation I was given. If that’s wrong, I’ll let you guys know.
QUESTION: Doesn’t the development of an ICBM cross a certain line?
MR. TONER: I’m sorry. Where are we at again?
QUESTION: India. The missile.
MR. TONER: Look, there’s been no launch; it’s been postponed. I think I gave you all I’m going to say on that.
Yeah, go ahead, Scott.
QUESTION: The French Government has issued an international arrest warrant against the son of the president of Equatorial Guinea. This is the guy who the Justice Department went to court last week seeking to seize as much as $70 million of his assets. He’s a large property owner in California. Has there been any contact by the French Government to the United States Government about this arrest warrant?
MR. TONER: I’m sorry. This is – this individual is --
QUESTION: The son of the president of Equatorial Guinea.
MR. TONER: Okay. I’m not aware of it. I’ll just take the question, Scott.
QUESTION: (Inaudible.)
MR. TONER: Yeah, let’s go in the back then.
QUESTION: Yeah. Can I just follow up on Omar Khadr?
MR. TONER: Yeah, sure.
QUESTION: And – yeah. I was just wondering, what was part of the negotiation between the U.S. and Canada regarding – because we were being told that it was a deal – and if Canada was offered something in return.
MR. TONER: I’m not sure I understand what you’re saying – that whether there was some kind of quid pro quo or something or --
QUESTION: No. That there was that – because we were being told that there was a deal regarding his transfer.
MR. TONER: I don’t have anything to add other than that there was – and I would just point you in the direction of there were diplomatic notes exchanged last year that are publicly available that spell out the transfer and the rules that govern it.
QUESTION: But there is nothing newer than that?
MR. TONER: Certainly not that I’m aware of. No.
QUESTION: Different topic?
MR. TONER: Yeah.
QUESTION: North Korea. The Japanese newspaper, the Yomiuri Shimbun, reported today that China has suspended deportations to North Korea of refugees. The article was saying that this was partly in retaliation because North Korea didn’t consult China or inform China about its launch recently. But obviously, the U.S. has had long-standing concerns.
MR. TONER: We have had long-standing concerns. I’m frankly not aware of this particular report, but --
QUESTION: Just if there’s any information about whether those repatriations have actually been stopped.
MR. TONER: I don’t know. I’ll take the question.
QUESTION: Sure, sure.
MR. TONER: Is that it, everyone? Thanks guys.
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U.S. DEFENSE AND STATE DEPARTMENT SECRETARIES EXPRESS COMMITMENT TO AFGHAN STABILITY
Remarks With Secretary of Defense Leon Panetta
Remarks Hillary Rodham Clinton
Secretary of State NATO Headquarters
Brussels, Belgium
April 18, 2012
SECRETARY CLINTON: Good afternoon. I’m very pleased to join Secretary Panetta and our defense and foreign minister colleagues here in Brussels for this meeting, the joint ministerial of NATO, to prepare for the upcoming NATO summit in my birthplace, Chicago. The main focus of our conversations today was Afghanistan, which I will focus on tomorrow at the meeting of our ISAF partners. But let me say how grateful the United States is for the solidarity and steadfastness of our NATO allies and ISAF partners.
As difficult a week as this has been in Kabul and other parts of Afghanistan, the big picture is clear. The transition is on track, the Afghans are increasingly standing up for their own security and future, and NATO remains united in our support for the Lisbon timetable, and an enduring commitment to Afghanistan. The attacks in Kabul this week show us that while the threat remains real, the transition can work. The response by the Afghan National Security forces were fast and effective, and the attacks failed. Not long ago, this kind of response by Afghans themselves would not have been possible. So the Afghans are proving themselves increasingly ready to take control of their own future.
Now by their nature, transitions of any kind are challenging. There will be setbacks and hard days. But clear progress is happening, and today, NATO reaffirmed our commitment to stand with the Afghans to defend stability and security, to protect the gains of the last decade, and to prevent there ever being a return of al-Qaida or other extremists operating out of the Afghan territory.
Both Secretary Panetta and I were impressed by how united the NATO allies are in supporting the Lisbon timetable. We are on track to meet the December 2014 deadline for completing the security transition. Already 50 percent of the Afghan people are secured primarily by Afghan forces, and by this spring, it will be 75 percent. Today, we worked on the three initiatives for the Chicago summit next month.
First, we will agree on the next phase of transition to support our 2014 goals. Second, we want to be ready to define NATO’s enduring relationship with Afghanistan after 2014. And third, we are prepared to work with the Afghans to ensure that the Afghan National Security force is fully funded. NATO is united behind all these goals, so we are looking forward to a very productive summit in Chicago.
But let’s keep in mind that the transition and NATO’s mission are part of a larger enterprise, one that also has political and economic dimensions. Afghanistan’s neighbors have a central role to play in that larger enterprise along with the international community. Our common approach was sharpened when the international community met in Istanbul and Bonn last year, and will be carried forward when we meet again in Chicago, Kabul, and Tokyo this year.
So beyond NATO, many nations are invested in Afghanistan’s future and are providing support for the Afghans to attain self reliance, stability, and further their democratic future. They have to protect, however, as they go through this transition, their hard-fought political and economic and human rights progress. Incidents like the one we heard of yesterday when 150 Afghan girls became sick after the water at their school was poisoned, reminds us that there are people who would destroy Afghanistan’s long-term future in order to restrict the rights of women and girls. Human rights protections for religious and ethnic minorities are also still fragile. Universal human rights are critical to Afghanistan’s security and prosperity, and we will continue to make them a priority.
While NATO has worked very hard to assist the people of Afghanistan, NATO has also been changed by this experience. The alliance is now a leading force for security, not just in the Atlantic region, but globally. We are steadily deepening and broadening the partnerships NATO has with dozens of countries around the world, and our partners are adding valuable capability, legitimacy, and political support to NATO’s operations and missions from the Mediterranean and Libya to Kosovo and Afghanistan.
So we believe we are building a stronger, more flexible, more dynamic alliance enriched by partners from every continent and prepared to meet the security challenges of our time. With that, let me turn the floor to Secretary Panetta.
SECRETARY PANETTA: Thank you. Good afternoon. It’s a pleasure to join Secretary Clinton here in Brussels. We had a very good series of meetings today with our NATO defense and foreign minister counterparts. Much of our discussion focused on our shared effort in Afghanistan, and what came out of these meetings was a strong commitment to sticking to the plan and the strategy that has been laid out by General Allen, and finishing the job in Afghanistan. Allies and partners have a very clear vision and a very clear message. Our strategy is right, our strategy is working, and if we stick to it, we can achieve the mission of establishing an Afghanistan that can secure and govern itself, and never again become a safe haven for terrorists to plan attacks on our country or any other country.
All of us are committed to the goals that were set out in the Lisbon framework, including continuing the transition to full Afghan security leadership by the end of 2014. We know there will be continuing challenges, and we saw some of those challenges over this last weekend. This is a war. There will be losses, there will be casualties, there will be incidents of the kind that we have seen in the last few days. But we must not allow any of that to undermine our commitment to our strategy.
The fact is, with regards to the events that took place over the weekend, we saw Afghan security forces do what we have trained them to do. They responded quickly, professionally, and with great courage, rendering ineffective those largely symbolic attacks that we saw in and around Kabul.
General Allen said he visited an Afghan special operations commando who had been wounded in the insurgent attacks and asked him if he could do anything for him. The Afghan commando’s response was, and I quote, “I just want to get back out there with my brother soldiers,” unquote. That short phrase speaks volumes. As General Allen has made clear, history proves that insurgencies are best and ultimately defeated not by foreign troops but by indigenous security forces, forces that know the ground, that know the territory, that know the culture, that know the neighborhood. When the Afghans do their job, we are doing our job. When the Afghans win, we win.
And the Afghans are making progress. They are in the lead now in areas that encompass more than 50 percent of the population in Afghanistan. When the third tranche of areas are transferred, we will have 75 percent of the population under Afghan governance and security. They have been in the lead for counterterrorism night operations since December. And now, thanks to a memorandum of understanding that was recently signed, all of these operations will fall under the authority of Afghan law. In less than six months’ time, Afghan security forces will take full leadership of detention operations, thanks again to another agreement that was signed recognizing Afghan sovereignty.
As I’ve said, 2011 was a real turning point. It was the first time in five years that we saw a drop in the number of enemy attacks. Over the past 12 weeks, enemy attacks continue to decrease compared to the same period in 2011. Taliban has been weakened, Afghan army operations are progressing, and the reality is that the transition to Afghan security and governance is continuing and progressing.
We see other signs that we are seriously degrading the insurgency. By January 2011, 600 Taliban had integrated into the society. This month, that number topped 4,000. We intend to build on this success. We’re committed to an enduring presence in Afghanistan post-2014 and a continuing effort to train, advise, and assist the ANSF in protecting the Afghan people and denying terrorists a safe haven. We cannot and we will not abandon Afghanistan. The key to our enduring partnership is continued international support. We cannot shortchange the security that must be provided by the Afghan forces now and in the future.
Today, I will also discuss with my NATO counterparts the steps needed to ensure that the alliance has the right military capabilities for the future. Across the board, allies are making important commitments to smart defense, with opportunities for new capabilities in ISR, missile defense, and air-to-air refueling. While significant progress has been made, important work lies ahead. The NATO we build is not only the force of today; it must be the force of 2020.
I’m pleased to announce that earlier today, along with Czech Defense Minister Vondra, I signed the Reciprocal Defense Procurement Agreement with the Czech Republic. The agreement reaffirms the importance and vitality of the U.S.-Czech defense relationship and enhances our cooperative security relationship. And as you know, this is the last high-level meeting before the Chicago summit in May. I think Secretary Clinton and I will take back to President Obama the results of these discussions. And I believe we have helped lay the groundwork for a very successful summit, and most importantly, for a strong and enduring NATO alliance.
MS. NULAND: We’ll take three today. Let’s start with Reuters. Arshad Mohammed, please.
QUESTION: Madam Secretary, I’m sure that you will have seen that the violence – the government violence continues in Syria. Homs continues to be shelled, I think almost every day since the ceasefire ostensibly took effect. And the Syrian foreign minister has pushed back against the kind of mission that Kofi Annan would like to insert, saying that it should be no more than 250 monitors, they don’t need their own helicopters and mobility, and they should be from friendly countries.
Given this, is it now time for the United States to look harder at whatever kinds of pressure can be brought to bear against the Assad government? And specifically, are you giving any more thought to rethinking your previous opposition to others arming the rebels? And are you giving any more thought to trying to get the Arabs to impose a more forceful sanctions regime on Syria?
SECRETARY CLINTON: Well, Arshad, first of all, Syria was a subject of conversation among many of our allies today. Every country in NATO is watching the situation with concern. I don’t want to prejudge what does or does not happen with the observers. The first tranche of the UN monitors is just beginning to deploy. It is, obviously, quite concerning that while we are deploying these monitors pursuant to a Security Council resolution that confirms our commitment to Kofi Annan’s six-point plan, the guns of the Assad regime are once again firing in Homs, Idlib, and elsewhere, and Syrians continue to die. So we are certainly cognizant of the very challenging road ahead. We are all here, united in favor of Kofi Annan’s plan and his urgent call for a robust monitoring force.
But we are at a crucial turning point. Either we succeed in pushing forward with Kofi Annan’s plan in accordance with the Security Council direction, with the help of monitors steadily broadening and deepening a zone of non-conflict and peace, or we see Assad squandering his last chance before additional measures have to be considered.
Now, we will continue to increase the pressure on Assad. I spoke with several ministers about the need to tighten sanctions, tighten pressure on the regime, on those who support the regime. And we also are going to continue pressing for a political solution, which remains the goal of Kofi Annan’s plan and the understandable goal of anyone who wants to see a peaceful transition occur in Syria.
I also would add that I’ve only spoken for the United States. The United States is not providing lethal arms, but as I’ve said before, the United States is providing communications and logistics and other support for the opposition. And we will continue to do everything we can to assist the opposition to be perceived as – and in reality become – the alternative voice for the Syrian people’s future.
And make no mistake about it; this conflict is taking place right on NATO’s border. We saw, just last week, the shelling across the borders into Turkey and into Lebanon. Our NATO ally, Turkey, has already suffered the effects of not only the influx of refugees that it is very generously housing, but also having two people killed on their side of the border because of Syrian artillery.
So we will remain in very close touch as events unfold. I look forward to continuing our consultations tomorrow at the ad-hoc group meeting that will be hosted by Foreign Minister Juppe in Paris.
But as I have reiterated, we will judge the Assad regime by their actions, not their words. We have been working to try to reach consensus in the Security Council, which we did in support of Kofi Annan’s six-point plan. The burden has shifted, not only to the Assad regime, but to those who support it to be forced to explain why, after time and time again stating that they will end the violence, the violence continues. So obviously, this is going to be a very high priority for all of us going forward.
QUESTION: Is it okay for others to arm any rebels?
SECRETARY CLINTON: I’m not speaking for anyone but the United States of America.
MODERATOR: The next question will be from Anne Gearan of the Associated Press.
QUESTION: Yes. To both of you, please, could I ask you to comment on publication today of photos purportedly showing U.S. troops posing with the corpses of Taliban militants? What did you think when you heard about this? What did you think when you saw the photos? And doesn’t this sort of undermine all the progress that you claim and the strategy you laid out just a moment ago?
Secondly, if I could ask each of you to respond to President Karzai’s remark yesterday that he would like a firm written commitment of 2 billion a year from the United States for security forces. Should he be concerned that you’re going to renege on that promise? And why doesn’t he just take your word for it?
SECRETARY PANETTA: With regards to the photos, I strongly condemned what we see in those photos, as has General Allen. That behavior that was depicted in those photos absolutely violates both our regulations, and more importantly, our core values. This is not who we are, and it’s certainly not who we represent when it comes to the great majority of men and women in uniform who are serving there.
I expect that the matter will be fully investigated. That investigation has already begun. This is a matter that goes back, I believe, to 2010, but it needs to be fully investigated, and that investigation, as I understand, is already underway. And wherever those facts lead, we will take the appropriate action. If rules and regulations were found to have been violated, then those individuals will be held accountable.
Let me also say this: This is war. And I know that war is ugly and it’s violent. And I know that young people sometimes caught up in the moment make some very foolish decisions. I am not excusing that. That’s – I’m not excusing that behavior. But neither do I want these images to bring further injury to our people or to our relationship with the Afghan people. We had urged the L.A. Times not to run those photos, and the reason for that is those kinds of photos are used by the enemy to incite violence, and lives have been lost as a result of the publication of similar photos in the past, so we regret that they were published. But having said that, again, that behavior is unacceptable, and it will be fully investigated.
With regards to President Karzai’s comment, we – as both the Secretary of State and I know from our own experience, you have to deal with Congress when it comes to what funds are going to be provided. And we don’t, nor do – we do not have the power to lock in money for the Afghans or anybody else.
QUESTION: Did you apologize on behalf of the United States for those photos or the actions depicted in them in your meetings today?
SECRETARY PANETTA: I was not asked about it, but obviously, my apology is on behalf of the Department of Defense and the U.S. Government.
QUESTION: Thank you.
MODERATOR: And the final question will come from Petro Dekurning of NRC Handelsblad, a Dutch newspaper.
QUESTION: Madam Secretary, the secretary general told us that some allies already came up with contributions for the Afghan army after 2014. Are you satisfied with this? And while this was not a pledging conference, what do you expect? What amounts do you expect from the allies to come up with? Thank you.
SECRETARY CLINTON: Well, we were very encouraged by the commitment from the NATO allies to the funding of the Afghan National Security Forces. We believe that we are on the path to ensuring that these security forces, which, as Leon has just said, made such progress because of our training and mentoring over the last few years, will have the resources necessary to protect the Afghan state and the Afghan people. So I’m going to let individual countries make their own announcements.
But as we move forward toward the NATO summit, one of the goals is to ensure that NATO has an enduring relationship with Afghanistan, and in many ways, not just in terms of financial commitments, but in other ways as well. A lot of the member countries are stepping up and talking about what they intend to do. And similarly, tomorrow, we expect to hear from a number of our ISAF partners about their continuing commitment as well. So I think both Leon and I were encouraged and believe we’re making progress.
MS. NULAND: Thank you very much.
NY LAW SCHOOL CLINICS HELP 9/11 VICTIMS FILE CLAIMS
FROM: U.S. DEPARTMENT OF JUSTICE
New York-Area Law School Clinics Assist Individuals Filing Claims under the 9/11 Victim Compensation Fund
April 18th, 2012 Posted by Tracy Russo
The following post appears courtesy of the Access to Justice Initiative .
Approximately ten years after the terrorist attacks of September 11th, Congress passed the James Zadroga 9/11 Health & Compensation Act. The Act reactivated the September 11th Victim Compensation Fund(VCF), which operated from 2001-2003, and expanded the pool of claimants to include first responders, members of cleanup crews, and other individuals who suffered latent physical injuries due to their exposure to Ground Zero. Sheila Birnbaum, a lifelong New Yorker with decades of experience resolving complicated litigation, was appointed Special Master of the Fund.
To ensure that the claim-filing process was accessible, transparent, and easy to navigate, the VCF established a streamlined online filing system and encouraged claimants to register and submit their claims electronically. The site was made available in English, Spanish, Polish, and Mandarin Chinese.
But the administrators of the VCF and the Department’s Access to Justice Initiative (ATJ) knew some potential claimants might not have easy access to computers or might be uncomfortable with technology. Those claimants, as well as people who were not proficient in English, could benefit from direct assistance, so the VCF and ATJ reached out to the New York public interest legal community. Building on the success of the work of Lynn Kelly of the City Bar Justice Center establishing clinics for VCF claimants staffed by volunteer attorneys, David Udell of the National Center for Access to Justice at Cardozo Law School (NCAJ), suggested that law students might also be able provide similar assistance.
Working with the area law schools’ public interest coordinators, the VCF administrators, ATJ, the City Bar Justice Center, and the NCAJ, Columbia Law School and Cardozo Law School agreed to host two pilot student clinics. VCF conducted a training at Columbia Law School for all interested student participants with the participation of DLA Piper volunteer attorneys who also attended the clinics to help supervise.
Columbia University Law School successfully hosted the first pilot clinic on March 13 and 15, 2012 in which 12 to 15 students assisted roughly 15 claimants each day. Cardozo Law School hosted the second clinic from April 9 to 11. Each day approximately 25 law students from Cardozo, Hofstra, Touro, and the University of Pennsylvania assisted 15 to 20 claimants in all stages of the filing process. At both schools students worked in pairs, often with interpreters or interpreting themselves, and spent one to two hours interviewing individuals, helping them fill out the electronic forms, and uploading documents into the online system.
The result of this true community effort has been a success for everyone involved. For some students the clinics were their first pro bono experience. They gained valuable skills in client communication, and many found it immensely rewarding to offer tangible help to people suffering from grave illness, injury, and loss. Frances Gottfried, Director of the New York Office of the VCF, said she was “impressed with the students’ dedication, flexibility, and enthusiasm,” and claimants at both clinics expressed their gratitude for the students’ assistance.
The City Bar Justice Center is continuing to assist those whose health or loved ones were harmed as a result of 9/11, and will host a pro bono clinic staffed by attorneys on May 7, 2012.
DELTA AGREES TO COMPLY WITH OSHA ON WORKER SEAT BELT COMPLIANCE MEASURES
FROM: U.S. DEPARTMENT OF LABOR
Delta Air Lines signs agreement with US Department of Labor’s OSHA on seat belt compliance measures to protect airline industry workers
OSHA also issues hazard alert to other airlines urging compliance
WASHINGTON — Delta Air Lines Inc. has signed a corporatewide settlement agreement with the U.S. Department of Labor's Occupational Safety and Health Administration in order to protect workers who operate baggage handling vehicles.
The agreement covers approximately 90 of the Atlanta-based company's airport sites that fall under federal OSHA's jurisdiction, as well as 16,000 Delta employees and 6,000 baggage handling vehicles. Under the agreement, Delta will come into compliance with applicable requirements for the use of seat belts by ensuring that all types of the company's baggage handling vehicles are equipped with them and that employees use the seat belts while operating the vehicles on specified airport routes.
"OSHA's corporatewide settlement agreements are highly effective tools for ensuring that companies address hazards that can injure or kill their workers," said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. "This kind of widespread change within corporations can go a long way toward keeping workers across the country safe and healthy at the end of every workday."
The agreement is the result of a citation issued to Delta following a workplace fatality in which an employee operating a baggage tug vehicle without wearing a seat belt was ejected from the vehicle and died. OSHA cited Delta for violating 29 Code of Federal Regulations 1910.132, which requires employers to provide employees with personal protective equipment, including — in this case — seat belts.
According to the agreement, Delta has committed to an abatement schedule that will result in full compliance within two years. During the first year, Delta will train its employees on the proper use of seat belts and install seat belts on those pieces of equipment that currently lack them. During the second year of the agreement, the company will fully enforce seat belt use among its employees, as well as hire safety consultants to monitor the company's implementation of its seat belt use program and report the results to OSHA.
In addition to entering into the agreement with Delta, OSHA will address this hazard throughout the airline industry. The agency recently sent a hazard alert letter to airlines across the nation reminding them that they are obligated to comply with applicable seat belt use requirements.
INSIDE TRADING CASE INVOLVING A HEDGE FUND MANAGER
FROM: SEC
April 10, 2012
SEC v. Spyridon Adondakis et al., Civil Action 12-CV-0409 (SDNY)(HB)
SEC Obtains Final Judgments on Consent against Diamondback Capital Management LLC
The SEC announced that the Honorable Harold Baer, Jr., United States District Judge, United States District Court for the Southern District of New York, entered a Final Judgment on Consent as to Diamondback Capital Management LLC (“Diamondback”) on April 6, 2012, in the SEC’s insider trading case, SEC v. Spyridon Adondakis et al., Civil Action 12-CV-0409 (SDNY) (HB).
The SEC filed its complaint on January 18, 2012, charging two multi-billion dollar hedge fund advisory firms – including Diamondback – as well as seven fund managers and analysts involved in a $78 million insider trading scheme based on nonpublic information about Dell’s quarterly earnings and other similar inside information about Nvidia Corporation.
The SEC’s complaint alleged that in 2008 and 2009, Jesse Tortora, an analyst at Diamondback, obtained inside information about quarterly earnings reports of both Dell and Nvidia and passed that information to Todd Newman, a Diamondback portfolio manager, who used the information to execute trades on behalf of hedge funds managed by Diamondback. These illegal trades in Dell and Nvidia securities resulted in millions of dollars in illicit gains for Diamondback.
The Final Judgment against Diamondback: (1) permanently enjoins the firm from violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”), and Exchange Act Rule 10b-5; and (2) orders it to pay disgorgement of $5,173,000 plus pre-judgment interest of $832,751.35, for a total of $6,005,751.35, provided that the amount Diamondback owes would be credited, dollar for dollar, by amounts paid pursuant to a non-prosecution agreement between Diamondback and the U.S. Attorney’s Office for the Southern District of New York; and (c) orders it to pay a civil penalty in the amount of $3,000,000.
April 10, 2012
SEC v. Spyridon Adondakis et al., Civil Action 12-CV-0409 (SDNY)(HB)
SEC Obtains Final Judgments on Consent against Diamondback Capital Management LLC
The SEC announced that the Honorable Harold Baer, Jr., United States District Judge, United States District Court for the Southern District of New York, entered a Final Judgment on Consent as to Diamondback Capital Management LLC (“Diamondback”) on April 6, 2012, in the SEC’s insider trading case, SEC v. Spyridon Adondakis et al., Civil Action 12-CV-0409 (SDNY) (HB).
The SEC filed its complaint on January 18, 2012, charging two multi-billion dollar hedge fund advisory firms – including Diamondback – as well as seven fund managers and analysts involved in a $78 million insider trading scheme based on nonpublic information about Dell’s quarterly earnings and other similar inside information about Nvidia Corporation.
The SEC’s complaint alleged that in 2008 and 2009, Jesse Tortora, an analyst at Diamondback, obtained inside information about quarterly earnings reports of both Dell and Nvidia and passed that information to Todd Newman, a Diamondback portfolio manager, who used the information to execute trades on behalf of hedge funds managed by Diamondback. These illegal trades in Dell and Nvidia securities resulted in millions of dollars in illicit gains for Diamondback.
The Final Judgment against Diamondback: (1) permanently enjoins the firm from violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”), and Exchange Act Rule 10b-5; and (2) orders it to pay disgorgement of $5,173,000 plus pre-judgment interest of $832,751.35, for a total of $6,005,751.35, provided that the amount Diamondback owes would be credited, dollar for dollar, by amounts paid pursuant to a non-prosecution agreement between Diamondback and the U.S. Attorney’s Office for the Southern District of New York; and (c) orders it to pay a civil penalty in the amount of $3,000,000.
DEPARTMENT OF DEFENSE COMBATS HYPOTHERMIA
FROM: DEPARTMENT OF DEFENSE ARMED WITH SCIENCE WEBSITE
Written on APRIL 13, 2012 AT 7:51 AM by JTOZER
Cool Under Pressure – Using Science to Stave Off Hypothermia
By Bob Reinert for USAG-Natick Public Affairs
Seventeen years after four soldiers died from hypothermia during the final phase of Ranger School, researchers at the U.S. Army Research Institute of Environmental Medicine at Natick Soldier Systems Center continue to study how the human body cools down, in hopes of one day developing medical techniques to help prevent such tragedies.
“You can’t design possible countermeasures — pharmacological treatments, perhaps — until you know mechanisms,” said Capt. David DeGroot, Ph.D., a research physiologist in USARIEM’s Thermal and Mountain Medicine Division, who is leading the study.
“You’ve got to understand the basic mechanism before you (say), ‘Okay, now how do I target it?’
“This is going to allow us to get further insight with the actual mechanisms so that we can follow it up with, Okay, what could we possibly do in terms of an intervention to mitigate that rate of core temperature drop?”
Dr. John Castellani, serving as an Army captain with USARIEM at the time, was a member of the team that conducted the institute’s initial study at Camp Rudder on Eglin Air Force Base, Fla., soon after the February 1995 deaths. He still works at the institute as a research physiologist.
Castellani said that the original study led to adjustments to the tables Rangers use to determine what amount of exposure to cold is safe.
“The swamp portion of training takes place at the very tail end of Ranger School, so soldiers have lost a lot of muscle, fat,” Castellani said. “They’re also, during that time frame, purposefully not being fed, so they may have very little food on board, and they’re also sleep deprived a lot as part of that part of the training.”
“So we studied Ranger students who were finishing up Ranger School. We tested them immediately as they came out of the swamp.”
Castellani followed these studies with the Rangers by trying to understand how physically fatigued soldiers are more susceptible to hypothermia.
“What John found was if you exposed people to cold air after they exercised, they cooled off faster than people who were warmed up passively,” DeGroot said. “So there was something about that prior exercise that led to a faster rate of decline in core temperature, higher skin temperature, higher rate of heat transfer through the skin.
“The follow-up question was always, ‘why? What’s controlling that skin temperature? What’s the mechanism responsible for this abnormal response?’”
DeGroot and his team are studying that mechanism with the help of eight soldiers from theHuman Research Volunteer Program at NSSC, who are fitted with microdialysis fibers, muscle temperature probes and skin temperature sensors. They are then put into the 102-degree waters of an immersion tank, followed by a trip to an environmental chamber, where the air temperature is a relatively cool 66 degrees.
“Now that doesn’t sound very cold, (but) all he’s wearing is a pair of shorts and a pair of socks, and he’s at rest,” said DeGroot of one volunteer. “A normal response in the cold is that the blood vessels in the skin are going to constrict, and that’s to limit the rate of heat loss from the core out to the environment. What varies is how we warm them up prior to the cold exposure — exercise versus passive.”
The use of microdialysis fibers, implanted under the skin to gather samples, was in its “infancy” when Castellani did his study, DeGroot said. Things have changed since then.
“(We are) using some different techniques that, frankly, we didn’t have a dozen years ago,” DeGroot said. “We didn’t have the technical capability to do this study.
“This is unique. Off the top of my head, I can think of (only) six other labs in the world that use microdialysis to study the control of skin blood flow.”
With a better understanding of the human body’s response to cold, USARIEM researchers likely will be in a better position to help future soldiers ward off hypothermia.
“Everything in science is incremental,” said DeGroot, “just building off of others.”
"WE'RE AT A PIVOTAL POINT" SAID U.S. SEC. OF DEFENSE PANETTA
Panetta: NATO at 'Pivotal Point' in Afghan Mission
By Karen Parrish
BRUSSELS, April 17, 2012 - Defense Secretary Leon E. Panetta arrived here today ahead of this week's NATO "jumbo" ministerial conference, where the alliance's defense and foreign ministers are scheduled to discuss Afghanistan security transition and alliance capabilities.
Panetta said during a Pentagon news conference yesterday that the gathering will take place against a backdrop of change within the 63-year-old alliance.
"We're at a pivotal point for the alliance as we build on the gains that have been made in Afghanistan and try to chart the course for the future in that area," he said.
George Little, acting assistant secretary of defense for public affairs, today told reporters traveling with the secretary that Panetta views NATO as a strong alliance. International Security Assistance Force contributing nations remain committed to the strategy, agreed upon at the alliance's 2010 summit, of a gradual handover of security responsibility to Afghan forces by the end of 2014, Little said.
Panetta judged those forces performed capably and decisively in quelling a series of coordinated attacks attributed to the Haqqani network in Afghanistan's capital of Kabul on April 15, Little noted. The secretary expects Afghan forces will sustain that level of performance, and he believes "the overall [Afghanistan] narrative is a very positive one," he added.
A senior defense official accompanying Panetta said the secretary will attend a meeting of defense ministers tomorrow. Participants will discuss ongoing alliance defense needs and the "smart defense" approach of combined investment in NATO military equipment, the official said.
Many NATO member nations face budget challenges, while operations in Afghanistan and Libya have exposed some shortfalls in the alliance's overall defense capabilities, the official noted.
Later, along with Secretary of State Hillary Rodham Clinton, Panetta will attend the larger session involving defense and foreign ministers, which the official said will focus on Afghanistan and funding for Afghan security forces. Foreign minister meetings will continue into April 19, but the defense segment of the week's NATO gathering will conclude tomorrow, the official added.
The official called the "jumbo" ministerial conference "a rare bit of geometry." While the two groups of ministers normally hold separate meetings, this last gathering before the alliance's Chicago summit in May will allow senior officials to "move issues along" so heads of state won't need to argue over policy questions next month, the official said.
"We don't want our bosses to have to deal with things that we can't resolve on our own," the official added.
U.S & TENNESSEE REACH CLEAN WATER ACT AGREEMENT WITH CITY OF MEMPHIS.
FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY
U.S. and Tennessee Announce Clean Water Act Agreement with the City of Memphis
WASHINGTON – The U.S. Environmental Protection Agency, the U.S. Department of Justice, the Tennessee Department of Environment and Conservation and the Office of the Tennessee Attorney General announced a comprehensive Clean Water Act (CWA) settlement with the City of Memphis, Tenn. Memphis has agreed to make improvements to its sewer systems to eliminate unauthorized overflows of untreated raw sewage. Memphis estimates such work will cost approximately $250 million.
WASHINGTON – The U.S. Environmental Protection Agency, the U.S. Department of Justice, the Tennessee Department of Environment and Conservation and the Office of the Tennessee Attorney General announced a comprehensive Clean Water Act (CWA) settlement with the City of Memphis, Tenn. Memphis has agreed to make improvements to its sewer systems to eliminate unauthorized overflows of untreated raw sewage. Memphis estimates such work will cost approximately $250 million.
“EPA is working with communities across country to address sewage overflows that negatively impact the health of residents and impair local water quality,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “This collaborative agreement with the city of Memphis will reduce raw sewage overflows, protecting area waterways now and into the future.”
“The improvements required by this settlement agreement will bring lasting public health and environmental benefits to Memphis residents,” said Ignacia S. Moreno, assistant attorney general for the Justice Department’s Environment and Natural Resources Division. “We will continue to work in partnership with EPA to enforce the Clean Water Act and work with municipalities across the country to advance the goal of clean water for all communities.”
A consent decree, filed today in U.S. District Court for the Western District of Tennessee in Memphis, represents the combined efforts of the United States and the state of Tennessee, co-plaintiffs in this settlement, and the Tennessee Clean Water Network, an intervening plaintiff in this action. The United States and Tennessee previously filed a complaint against Memphis on February 5, 2010, seeking injunctive relief and civil penalties for Memphis’ alleged violations of the Clean Water Act and the Tennessee Water Quality Control Act.
The major features of the consent decree will require Memphis to implement specific programs designed to ensure proper management, operation and maintenance of its sewer systems to eliminate unauthorized overflows of untreated raw sewage. In order to address the problem of grease buildup within the sewer lines, Memphis developed and will be required to implement a comprehensive fats, oil and grease (FOG) program. Furthermore, the consent decree will require Memphis to develop and implement a continuing sewer assessment and rehabilitation program to ensure that the integrity of sewer infrastructure is appropriately maintained to prevent system failures that would likely result in unauthorized overflows. The consent decree will also require Memphis to perform corrective measures in certain specifically identified priority areas.
In addition to the control requirements, the consent decree will also require Memphis to pay a civil penalty of $1.29 million. Half of this amount will be paid to the United States. At the direction of the state, the other half of the civil penalty will be paid by Memphis through the performance of certain state projects. These projects include implementation of improvements to Memphis’ Geographic Information System (GIS) and implementation of an effluent color study to better delineate limits for the color of Memphis’ permitted discharges into the Mississippi River.
Keeping raw sewage and contaminated stormwater out of the waters of the United States is one of EPA’s national enforcement initiatives for 2011 to 2013. The initiative focuses on reducing sewer overflows, which can present a significant threat to human health and the environment. These reductions are accomplished by obtaining cities’ commitments to implement timely, affordable solutions to these problems, including the increased use of green infrastructure and other innovative approaches.
The United States has reached similar agreements in the past with numerous municipal entities across the country including Mobile and Jefferson County, Ala. (Birmingham); Atlanta and Dekalb County, Ga.; Knoxville and Nashville, Tenn.; Miami-Dade County, Fla.; New Orleans; Hamilton County (Cincinnati), Ohio; Northern Kentucky Sanitation District #1; and Louisville, Ky.
The proposed consent decree with Memphis is subject to a 30-day public comment period and final court approval.
USS AIRCRAFT CARRIER GETS REFUELED AT SEA
FROM: U.S. NAVY
The Nimitz-class aircraft carrier USS Carl Vinson (CVN 70) and the Indian navy replenishment oiler INS Shakti (A57) conduct a refueling at sea exercise. Carl Vinson and Carrier Air Wing (CVW) 17 are deployed participating in the Malabar Exercise with ships and aircraft from the Indian Navy. U.S. Navy photo by Mass Communication Specialist Apprentice Andrew K. Haller
U.S. ANNOUNCES TEN YEAR VISA VALIDITY FOR COLOMBIANS
FROM: U.S. STATE DEPARTMENT
Announcement of Ten-Year Visa Validity for Colombians Visiting the United States
Fact Sheet Office of the Spokesperson Washington, DC
April 15, 2012
The State Department is pleased to announce an increase in the validity of visas for Colombians traveling on a temporary basis to the United States from five years to ten years. This means that most Colombian applicants who qualify for a B-category non-immigrant visa may be issued a 120-month, multiple-entry visa.
This extension of visa validity is supporting of the expanding partnership between the United States and Colombia on a broad array of issues, which has resulted in increased exchanges for tourism and business. The extension is also consistent with the passage of the U.S.-Colombia Trade Promotion Agreement, which can increase investment between our two countries. A growing Colombian economy will lead to a growth in travel for education and training, tourism, and economic activities.
Approximately 577,000 Colombians visit the United States annually, according to the Department of Homeland Security.
Changes in visa reciprocity have no effect on visa eligibility or security screening procedures. Visa applicants will be subject to the same standards of eligibility for a U.S. visa as before the change in validity.
Benefits of the Visa Validity Extension:
Colombians qualified for a temporary visa to the United States will only need to apply to renew their visa once every ten years.
U.S. and Colombian businesses and service providers, including the tourist industry, will benefit from increased travel between the two countries.
Announcement of Ten-Year Visa Validity for Colombians Visiting the United States
Fact Sheet Office of the Spokesperson Washington, DC
April 15, 2012
The State Department is pleased to announce an increase in the validity of visas for Colombians traveling on a temporary basis to the United States from five years to ten years. This means that most Colombian applicants who qualify for a B-category non-immigrant visa may be issued a 120-month, multiple-entry visa.
This extension of visa validity is supporting of the expanding partnership between the United States and Colombia on a broad array of issues, which has resulted in increased exchanges for tourism and business. The extension is also consistent with the passage of the U.S.-Colombia Trade Promotion Agreement, which can increase investment between our two countries. A growing Colombian economy will lead to a growth in travel for education and training, tourism, and economic activities.
Approximately 577,000 Colombians visit the United States annually, according to the Department of Homeland Security.
Changes in visa reciprocity have no effect on visa eligibility or security screening procedures. Visa applicants will be subject to the same standards of eligibility for a U.S. visa as before the change in validity.
Benefits of the Visa Validity Extension:
Colombians qualified for a temporary visa to the United States will only need to apply to renew their visa once every ten years.
U.S. and Colombian businesses and service providers, including the tourist industry, will benefit from increased travel between the two countries.
NATO SECRETARY GENERAL RASMUSSEN BELIEVES IN SUPPORTING AFGHANISTAN BEYOND 2014 PULL-OUT
FROM: AMERICAN FORCES PRESS SERVICE
NATO Conference Focuses on Post-2014 Afghanistan
By Karen Parrish
BRUSSELS, April 18, 2012 - NATO Secretary General Anders Fogh Rasmussen today emphasized support to Afghanistan beyond 2014 in remarks opening a conference of the alliance's defense and foreign ministers here.
Rasmussen noted the NATO summit in Chicago is a month away. "We have important work to do today and tomorrow to help set the stage," he said.
The NATO-led International Security Assistance Force has been engaged in Afghanistan since 2001, and Rasmussen said the alliance will continue to support that nation beyond 2014.
Meetings of NATO defense and foreign ministers today and tomorrow will shape the decisions on Afghanistan that the alliance's heads of state and government will make in Chicago, Rasmussen said, including completing the transition to Afghan security lead by the end of 2014 and what form NATO's contributions in Afghanistan will take after that transfer.
Rasmussen noted Afghan security forces defeated coordinated enemy attacks April 15 in and around Afghanistan's capital of Kabul.
"This shows that the Afghan security forces can deal with dangers and difficulties, and they are getting stronger every day," the secretary general said.
He said his clear message to Afghanistan's enemies is that they can't just wait NATO out. "As we gradually draw down," he added, "a still stronger Afghan security force is taking charge to protect the Afghan people against brutality and inhumanity."
NATO will maintain a training mission and financial support to Afghan security forces beyond 2014, Rasmussen said. "We must make sure we maintain the gains made with so much investment in lives and resources," he added.
Even in tough financial times, the secretary general said, supporting the Afghan forces is "a good deal in financial and political terms."
NATO remains committed to its strategy and its long-term partnership with Afghanistan, Rasmussen said.
"This is our message to the people of Afghanistan, to the enemies of Afghanistan, and to the neighbors of Afghanistan," he said, "because it is in the interest of our own security."
Before a morning meeting of defense ministers this morning, Rasmussen said their discussion would center on alliance "smart defense" efforts to acquire capabilities jointly that the alliance will need to counter future threats. Smart defense, he said, "means setting the right priorities. We must specialize in what we do best and focus resources on what we need most. And we must work together to deliver capabilities that many nations cannot afford on [their] own."
At the Chicago summit next month, Rasmussen said, NATO will demonstrate its commitment "to continue to invest political, military and economic capital in a transatlantic alliance that is fully fit to deal with the security challenges of today and tomorrow."
In a news conference following the morning session, he announced ministers have prepared an interim missile defense plan for Europe, with details to be announced in Chicago.
NATO defense ministers also discussed a "connected forces" initiative to be finalized at the Chicago summit, he added. This agreement will strengthen member nations' coordinated education, training and technology efforts, the secretary general said.
Financial support to Afghan forces after 2014 is expected to cost $4 billion per year, Rasmussen added, though details of NATO nations' contributions to that total have not been finalized.
Defense Secretary Leon E. Panetta and Secretary of State Hillary Rodham Clinton are both here for the NATO meetings, and are scheduled to hold a joint news conference later today.
Defense Secretary Leon E. Panetta and Secretary of State Hillary Rodham Clinton are both here for the NATO meetings, and are scheduled to hold a joint news conference later today.
U.S.DENIES SUNDAY'S TALIBAN ATTACKS WERE LIKE 1968 TET OFFENSIVE
FROM: AMERICAN FORCES PRESS SERVICE
Official Dismisses Comparison of Kabul Attacks, Tet Offensive
By Jim Garamone
American Forces Press Service
American Forces Press Service
WASHINGTON, April 16, 2012 - A few terrorist attacks does not make yesterday's combat in Afghanistan's capital of Kabul the "Taliban Tet Offensive," the Pentagon's top public affairs official said here today.
The Tet Offensive in 1968 involved tens of thousands of North Vietnamese regulars and thousands of Viet Cong irregulars. They attacked the length and breadth of South Vietnam from Hue in the north to the Mekong Delta to the American Embassy in Saigon.
Yesterday's attacks, by contrast, involved tens of terrorists armed with suicide vests and car bombs and some rocket-propelled grenades and small arms, George Little, acting assistant secretary of defense for public affairs, told reporters.
"Initial indications are that the Haqqani network was involved in the attacks in Kabul," Little said. "This was a well-coordinated set of attacks. I'm unaware of any U.S. casualties."
The Afghan national security forces responded to the attacks and handled matters by themselves, Little said. "They had the lead role in many instances and successfully repelled the enemy," he said.
The attacks mark the beginning of the "fighting season" in Afghanistan, when enemy fighters typically have become active after the harsh Afghanistan winter.
"We thought something like this could very well happen, and it did," Little said. "These were attacks that we believe show the Haqqanis and other insurgents are concerned about the progress being made in Afghanistan. And the fact that certain institutions of governance in Afghanistan were targeted ... suggests they feel the need to attack those institutions and what those institutions stand for: a brighter Afghanistan."
Little flatly rejected any analogy between yesterday's events in Afghanistan and the Tet Offensive in Vietnam. "This was a coordinated set of attacks," he said. "We are looking at suicide bombers, RPG, mortar fire etc. This was not a large-scale offensive sweeping into Kabul or other parts of the country."
The actions were multiple terrorist attacks, he noted. "I'm not minimizing the serious
ness of this, but this was in no way akin to the Tet Offensive or other enemy offensives that I'm aware of," he said.
While Little didn't speak directly to intelligence on the attacks, he did say chatter had indicated something like this might occur. "I don't believe this was an intelligence failure," he said. "We had some sense that something like this might happen. We know from past history that this is something they might do. This is the start of the spring fighting season, and the response was very effective.
"If we're going to be held to the standard that we have to know precisely when and where each insurgent attack is going to occur," he continued, "then that's an unfair standard."
NAVY GETS READY FOR HURRICANE SEASON
FROM: U.S. NAVY
A landing craft air cushion from Assault Craft Unit (ACU) 4 enters the well deck of the amphibious assault ship USS Bataan (LHD 5) as part of HURREX 08-002. HURREX is a Commander, U.S. Second Fleet directed exercise designed to test the ship's ability to respond to humanitarian assistance and disaster relief needs during the 2008 hurricane season. (U.S. Navy photo by Mass Communication Specialist Seaman Matthew Bookwalter/Released)
From U.S. Fleet Forces Public Affairs
NORFOLK, Va. (NNS) -- Commander, U.S. Fleet Forces Command (USFF) and Commander, Navy Installations Command (CNIC) are conducting a hurricane preparedness exercise, HURREX/Citadel Gale 12, April 16 through 27.
The purpose of this annual exercise is to prepare the Navy to respond to weather threats to U.S. coastal regions, and to maintain its ability to deploy naval forces even under the most adverse weather conditions.
HURREX/Citadel Gale 12 will involve two simulated storm systems developing and intensifying to hurricane strength, threatening the Caribbean Islands, East Coast and Gulf Coast regions.
All Navy commands with personnel in these regions will participate, to include reviewing and exercising heavy weather instructions and procedures and accounting for Sailors and Navy families in the affected regions through the Navy Family Accountability and Assessment System (NFAAS).
There is no U.S. Navy ship movement associated with HURREX/Citadel Gale 12.
ONLINE BROKER CHARGED BY SEC WITH NOT COMPLYING WITH STOCK DELIVERY REQUIREMENTS
FROM: SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., April 16, 2012 – The Securities and Exchange Commission today charged an online brokerage and clearing agency specializing in options and futures as well as four officials at the firm and a customer involved in an abusive naked short selling scheme.
The SEC’s Division of Enforcement alleges that Chicago-based optionsXpress failed to satisfy its close-out obligations under Regulation SHO by repeatedly engaging in a series of sham “reset” transactions designed to give the illusion that the firm had purchased securities of like kind and quantity. The firm and customer Jonathan I. Feldman engaged in these sham reset transactions in a number of securities, resulting in continuous failures to deliver. Regulation SHO requires the delivery of equity securities to a registered clearing agency when delivery is due, generally three days after the trade date (T+3). If no delivery is made by that time, the firm must purchase or borrow the securities to close out the failure-to-deliver position by no later than the beginning of regular trading hours on the next day (T+4).
The former chief financial officer at optionsXpress – Thomas E. Stern of Chicago – was named in the SEC’s administrative proceeding along with optionsXpress and Feldman. Three other optionsXpress officials – head of trading and customer service Peter J. Bottini and compliance officers Phillip J. Hoeh and Kevin E. Strine – were named in a separate administrative proceeding and settled the charges against them for their roles in the scheme.
“OptionsXpress used sham reset transactions to avoid, sometimes for months, its obligation to comply with Reg. SHO’s stock delivery requirements,” said Robert Khuzami, Director of the Division of Enforcement. “Illegally extending its naked short positions put optionsXpress in plain violation of the law and undermined Reg. SHO’s intent to reduce fails to deliver.”
Daniel M. Hawke, Chief of the Division of Enforcement’s Market Abuse Unit, added, “Reg. SHO compliance continues to be a high enforcement priority. Broker-dealers, their employees, and their customers must ensure that they comply with the close-out requirements of the short sale rules and regulations.”
According to the SEC’s order, the misconduct occurred from at least October 2008 to March 2010. In September 2011, optionsXpress became a wholly-owned subsidiary of The Charles Schwab Corporation.
The SEC’s Enforcement Division alleges that the sham reset transactions impacted the market for the issuers. For example, from Jan. 1, 2010 to Jan. 31, 2010, optionsXpress customers including Feldman accounted for an average of 47.9 percent of the daily trading volume in one of the securities. In 2009 alone, the optionsXpress customer accounts engaging in the activity purchased approximately $5.7 billion worth of securities and sold short approximately $4 billion of options. In 2009, Feldman himself purchased at least $2.9 billion of securities and sold short at least $1.7 billion of options through his account at optionsXpress.
According to the SEC’s order, by engaging in the alleged misconduct, optionsXpress violated Rules 204 and 204T of Regulation SHO; Feldman willfully violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5 and 10b-21 thereunder; optionsXpress and Stern caused and willfully aided and abetted Feldman’s violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rules 10b-5 and 10b-21 thereunder; and Stern caused and willfully aided and abetted optionsXpress’s violations of Rules 204 and 204T.
In the separate settled administrative proceeding, Bottini, Hoeh, and Strine consented to a cease-and-desist order finding that they caused optionsXpress’s violations of Rules 204 and 204T of Regulation SHO and ordering them to cease-and-desist from committing or causing violations of Rule 204. They neither admitted nor denied the SEC’s findings.
The SEC’s investigation was conducted by Deborah Tarasevich, Jill Henderson, and Paul Kim. Market Surveillance Specialist Brian Shute, Market Abuse Unit Trading Specialist Ainsley Fuhr, and Financial Economist Michael P. Barnes provided assistance with the investigation. The litigation will be led by Frederick Block.
Washington, D.C., April 16, 2012 – The Securities and Exchange Commission today charged an online brokerage and clearing agency specializing in options and futures as well as four officials at the firm and a customer involved in an abusive naked short selling scheme.
The SEC’s Division of Enforcement alleges that Chicago-based optionsXpress failed to satisfy its close-out obligations under Regulation SHO by repeatedly engaging in a series of sham “reset” transactions designed to give the illusion that the firm had purchased securities of like kind and quantity. The firm and customer Jonathan I. Feldman engaged in these sham reset transactions in a number of securities, resulting in continuous failures to deliver. Regulation SHO requires the delivery of equity securities to a registered clearing agency when delivery is due, generally three days after the trade date (T+3). If no delivery is made by that time, the firm must purchase or borrow the securities to close out the failure-to-deliver position by no later than the beginning of regular trading hours on the next day (T+4).
The former chief financial officer at optionsXpress – Thomas E. Stern of Chicago – was named in the SEC’s administrative proceeding along with optionsXpress and Feldman. Three other optionsXpress officials – head of trading and customer service Peter J. Bottini and compliance officers Phillip J. Hoeh and Kevin E. Strine – were named in a separate administrative proceeding and settled the charges against them for their roles in the scheme.
“OptionsXpress used sham reset transactions to avoid, sometimes for months, its obligation to comply with Reg. SHO’s stock delivery requirements,” said Robert Khuzami, Director of the Division of Enforcement. “Illegally extending its naked short positions put optionsXpress in plain violation of the law and undermined Reg. SHO’s intent to reduce fails to deliver.”
Daniel M. Hawke, Chief of the Division of Enforcement’s Market Abuse Unit, added, “Reg. SHO compliance continues to be a high enforcement priority. Broker-dealers, their employees, and their customers must ensure that they comply with the close-out requirements of the short sale rules and regulations.”
According to the SEC’s order, the misconduct occurred from at least October 2008 to March 2010. In September 2011, optionsXpress became a wholly-owned subsidiary of The Charles Schwab Corporation.
The SEC’s Enforcement Division alleges that the sham reset transactions impacted the market for the issuers. For example, from Jan. 1, 2010 to Jan. 31, 2010, optionsXpress customers including Feldman accounted for an average of 47.9 percent of the daily trading volume in one of the securities. In 2009 alone, the optionsXpress customer accounts engaging in the activity purchased approximately $5.7 billion worth of securities and sold short approximately $4 billion of options. In 2009, Feldman himself purchased at least $2.9 billion of securities and sold short at least $1.7 billion of options through his account at optionsXpress.
According to the SEC’s order, by engaging in the alleged misconduct, optionsXpress violated Rules 204 and 204T of Regulation SHO; Feldman willfully violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5 and 10b-21 thereunder; optionsXpress and Stern caused and willfully aided and abetted Feldman’s violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rules 10b-5 and 10b-21 thereunder; and Stern caused and willfully aided and abetted optionsXpress’s violations of Rules 204 and 204T.
In the separate settled administrative proceeding, Bottini, Hoeh, and Strine consented to a cease-and-desist order finding that they caused optionsXpress’s violations of Rules 204 and 204T of Regulation SHO and ordering them to cease-and-desist from committing or causing violations of Rule 204. They neither admitted nor denied the SEC’s findings.
The SEC’s investigation was conducted by Deborah Tarasevich, Jill Henderson, and Paul Kim. Market Surveillance Specialist Brian Shute, Market Abuse Unit Trading Specialist Ainsley Fuhr, and Financial Economist Michael P. Barnes provided assistance with the investigation. The litigation will be led by Frederick Block.
WIN MILLIONS DESIGNING A DISASTER ROBOT
Mars Rover Self-Portrait Photo: NASA
FROM: DEPARTMENT OF DEFENSE ARMED WITH SCIENCE
Written on APRIL 16, 2012 AT 7:40 AM by JTOZER
Wanted: Robot. Willing To Pay $2M
Written by Jessica L. Tozer
Hey you, robot enthusiast!
Do you want two million dollars? Can you build amazing robots? If so, have we got the most awesome contest FOR YOU! No, seriously. This isn’t the premise for a 1980's SciFi action flick. This is for real, folks.
The Defense Advanced Research Projects Agency (DARPA) is offering millions to the person who creates a robot designed to handle disasters of epic proportion. The kind humans can’t handle, no matter how noble or determined we are. No, not the asteriod-hurling-to-Earth type (although truthfully that would currently fall into the things-we-can’t-handle-no-seriously-Bruce-Willis-isn’t-going-to-save-us category).
All epic movie montages aside, DARPA really is looking for robots that can handle things that are too dangerous for humans, like the meltdown at Japan’s Fukushima Daiichi power plant last year.
This is more than just the work of a machine. This robot has to go above and beyond the call of autonomous duty in order to handle the kind of crisis we’re talking about. As awesome as that sounds, it’s not quite as unprecedented as you might think.
The truth is, the use of robots in serious situations is nothing new.
Robots are used by U.S. military forces as assistants for service members in diffusing improvised explosive devices. That’s not to say that the current robot cavalcade can’t be improved upon, and I guess that concept is what brings us to this blog post today.
True innovation in robotics technology could result in much more effective robots that could better intervene in high-risk situations. This could save human lives, and help contain the impact of natural and man-made disasters. So, are we headed to a new age of human-robot coexistence? The handy helper AIs who come at the touch of a button? Possibly even reach new technological heights with our new autonomous friends?
I immediately think “helpful robots in space” (Robby the Robot style), but maybe I’m getting ahead of myself.
s iconic symbols of the future, robots rank high with flying cars and starships, but basic robots are already in use in emergency response, industry, defense, healthcare and education. DARPA plans to offer a $2 million prize to whomever can help push the state-of-the-art in robotics beyond today’s capabilities in support of the DoD’s disaster recovery mission.
DARPA’s Robotics Challenge will launch in October 2012. Teams are sought to compete in challenges involving staged disaster-response scenarios in which robots will have to successfully navigate a series of physical tasks corresponding to anticipated, real-world disaster-response requirements.
The DARPA Robotics Challenge consists of both robotics hardware and software development tasks. It is DARPA’s position that achieving true innovation in robotics – and thus success in this challenge – will require contributions from communities beyond traditional robotics developers.
The DARPA Robotics Challenge supports the National Robotics Initiative launched by President Barack Obama in June 2011.
To answer questions regarding the Robotics Challenge and provide an opportunity for interested parties to connect, DARPA will hold a virtual Proposers’ Day workshop today, April 16, 2012.
This online workshop will introduce interested communities to the effort, explain the mechanics of this DARPA challenge, and encourage collaborative arrangements among potential performers from a wide range of backgrounds. More information on the BAA and Proposers’ Day is available here.
So whether you’re just looking for a reason to build the world’s next greatest robot (and really, who isn’t?), or you just want to make the world a safer place for us humans, I’d check out this challenge. I look forward to seeing the innovation and creativity that can come from this.\
I’d also like to be the first blogger to officially request an interview with the two million dollar robot. The robot, not the winner (although I *suppose* the winner can come, too). I want to get on his/her good side. You never know when your AI connections are going to come in handy, and if he/she is going to be saving humanity someday, I’d like to be on a first name basis.
Robby The Robot was featured at 2006 San Diego Comic Con in honor of the 50th anniversary of Forbidden Planet and the remastering of the film on DVD. Photograph by Patty Mooney, Crystal Pyramid Productions, San Diego, California.
U.S. DC CIRCUIT COURT OF APPEALS BLOCKS REQUIRED POSTING OF EMPLOYEE RIGHTS
FROM: NATIONAL LABOR RELATIONS BOARD
In light of conflicting decisions at the district court level, the DC Circuit Court of Appeals has temporarily enjoined the NLRB’s rule requiring the posting of employee rights, which had been scheduled to take effect on April 30, 2012.
In view of the DC Circuit's order, and in light of the strong interest in the uniform implementation and administration of agency rules, regional offices will not implement the rule pending the resolution of the issues before the court.
In March, the D.C. District Court found that the agency had the authority to issue the rule. The NLRB supports that decision, but plans to appeal a separate part that raised questions about enforcement mechanisms. The agency disagrees with and will appeal last week’s decision by the South Carolina District Court, which found the NLRB lacked authority to promulgate the rule.
Chairman Mark Gaston Pearce said of the recent decisions, “We continue to believe that requiring employers to post this notice is well within the Board’s authority, and that it provides a genuine service to employees who may not otherwise know their rights under our law.”
In light of conflicting decisions at the district court level, the DC Circuit Court of Appeals has temporarily enjoined the NLRB’s rule requiring the posting of employee rights, which had been scheduled to take effect on April 30, 2012.
In view of the DC Circuit's order, and in light of the strong interest in the uniform implementation and administration of agency rules, regional offices will not implement the rule pending the resolution of the issues before the court.
In March, the D.C. District Court found that the agency had the authority to issue the rule. The NLRB supports that decision, but plans to appeal a separate part that raised questions about enforcement mechanisms. The agency disagrees with and will appeal last week’s decision by the South Carolina District Court, which found the NLRB lacked authority to promulgate the rule.
Chairman Mark Gaston Pearce said of the recent decisions, “We continue to believe that requiring employers to post this notice is well within the Board’s authority, and that it provides a genuine service to employees who may not otherwise know their rights under our law.”
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