Monday, June 11, 2012

SEC. OF STATE CLINTON'S REMARKS ON CUTBACKS IN IRANIAN CRUDE OIL PURCHASES


FROM:  U.S. STATE DEPARTMENT
Regarding Significant Reductions of Iranian Crude Oil Purchases
Press Statement Hillary Rodham Clinton
Secretary of StateWashington, DC
June 11, 2012
Today I have made the determination that seven economies—India, Malaysia, Republic of Korea, South Africa, Sri Lanka, Turkey and Taiwan--have all significantly reduced their volume of crude oil purchases from Iran. They join the 11 countries for which I made this determination in March. As a result, I will report to the Congress that sanctions pursuant to Section 1245(d)(1) of the National Defense Authorization Act for Fiscal Year 2012 will not apply to their financial institutions for a potentially renewable period of 180 days.

We have implemented these sanctions to support our efforts to prevent Iran from acquiring a nuclear weapon and to encourage Iran to comply with its international obligations. Today’s announcement underscores the success of our sanctions implementation. By reducing Iran’s oil sales, we are sending a decisive message to Iran’s leaders: until they take concrete actions to satisfy the concerns of the international community, they will continue to face increasing isolation and pressure.

The United States remains committed to a dual-track policy that offers Iran the chance to engage seriously with the international community to resolve our concerns over its nuclear program through negotiations with the P5+1. Iran has the ability to address these concerns by taking concrete steps during the next round of talks in Moscow. I urge its leaders to do so.

U.S. EXPORT-IMPORT BANK GETS BEST ECA IN THE AMERICAS AWARD


Photo Credit:  Wikimedia. 
FROM:  EXPORT-IMPORT BANK
Ex-Im Recognized as Best ECA in the Americas
Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) has received the Best Export Credit Agency (ECA) in the Americas Award from Trade Finance Magazine for the third year in a row.

“Being voted Best ECA in the Americas again this year demonstrates the respect that the trade finance industry has for Ex-Im Bank, its innovative products, and its ability to give U.S. exporters the edge they need in highly competitive overseas markets. Also reflected here is the vocal support that the market provided Ex-Im Bank during its challenging reauthorization process,” said Oliver O’Connell, the editor of Trade Finance.

The Bank also placed second in the Best Global ECA category and second in the Best ECA in Africa category.

“The award really goes to the employees of Ex-Im for their work on behalf of our customers’ exports and the U.S. jobs they create,” said Ex-Im Bank Chairman Fred P. Hochberg. “We will continue to aim for excellence and look forward to competing for next year’s awards.”

Additionally, the Bank was recognized by Trade Finance for its involvement in five deals of the year, including the export of oil and refinery equipment and services from more than 150 firms to Colombia’s Refinería de Cartagena S.A. (Reficar); oil and refinery equipment and services to Petroleo Brasileiro S.A. (Petrobras), Brazil's national oil company; oil and refinery equipment and services to Pemex, a Mexican state-owned petroleum company; telecommunications satellites to Avanti Communications of London; and aero-derivative gas turbine generators manufactured by GE Packaged Power Inc (GEPPI) to Aydin, Turkey.

Trade Finance Awards for Excellence have been annually awarded for the last 15 years and represent a comprehensive poll of the global trade finance market.
According to its website, Trade Finance will officially confer the award at the Trade Finance Magazine Americas Awards dinner at the Roosevelt Hotel in New York City June 26, and the write-up of the award will appear in the July/August edition of the magazine.

About Ex-Im Bank:
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers $1.9 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance, and financing to help foreign buyers purchase U.S. goods and services.

Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 -- an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales -- also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $41 billion in U.S. export sales and approximately 290,000 American jobs in communities across the country.


FROM OCEAN BOTTOM TO OCEAN SURFACE, LIFE FINDS A WAY


Photo:  Divers.  Credit:  NASA
FROM:  NATIONAL SCIENCE FOUNDATION
June 8, 2012
"Don't panic," Douglas Adams might have said.
Author of the sci-fi novel Hitchhiker's Guide to the Galaxy, Adams advised "don't panic" whenever facing invaders. What Adams might not have known is that the inner space of the oceans conceals aliens every bit as resourceful as any that might lurk in outer space.

"And now these deep-sea-dwellers have turned the tables on us," says Janet Voight, a biologist at the Field Museum of Natural History in Chicago.

Voight and other scientists studying deep-ocean hydrothermal vents have discovered that some life forms can survive the extreme pressure change from ocean-floor to sea surface.

On a recent dive in the deep-ocean research submersible Alvin, some unexpected companions--38 of them, to be exact--found their way topside.

Lepetodrilus gordensis, the invader is named. It's a type of marine snail called a limpet, well-known for its ability to stick like glue to surfaces.

"No one thought that included the gear of a submersible, however," says Voight.
The fauna at deep-sea hydrothermal vents is among the most isolated and inaccessible on Earth. Life at "vents" is based on a process called chemosynthesis, which, unlike photosynthesis, doesn't depend on sunlight. Rather, it survives on chemicals spewed from the vents themselves.

"Hydrothermal vents can only be visited by subsea vehicles, which can and do move freely among them," wrote Voight and colleagues in a paper published recently in the journalConservation Biology.

Co-authors of the paper are Raymond Lee of Washington State University, Abigail Reft of Ohio State University and Amanda Bates of the University of Tasmania.

"Researchers assumed that individual animals in the vent fauna, if brought to the surface, would be killed by the change in water pressure," says Voight. "Clearly it's not so."

After one Alvin dive, Voight found the 38 vent limpets in samples taken from an undersea locale where there are no hydrothermal vents--and therefore no vent limpets.

The scientists had collected samples from a non-limpet habitat along the Juan de Fuca Ridge, deep under the surface of the Northeastern Pacific Ocean. But when Voight looked at the treasure trove, it contained limpets.

"What's wrong with this picture?" she asked. "Well, that limpet species was known only from the vents of the Gorda Ridge, 635 kilometers south of Juan de Fuca."

The question became: how did the limpets get more than 600 kilometers from their habitat? "The only answer was that they must have been transported by the sub."

Which just goes to show, says Chuck Lydeard, program director in the National Science Foundation's (NSF) Division of Environmental Biology, which funded the research, "that humans cannot assume anything about the dispersal capabilities of other organisms, including those thought to be restricted to the most extreme environments on the planet."

The inadvertent introduction of a new species to an ecosystem is a major challenge to conservation efforts.

How a species will react to new surroundings, and the effect it has if it begins to reproduce and take over, is unpredictable.

"Deep-sea drilling and submersible activity can increase the probability of such introductions," says Voight, "but until now hydrothermal vents were considered too isolated to be a source of invaders."

In coastal areas, one of the biggest threats from invasive species is the introduction of diseases. Newly introduced pathogens can cause mass mortality in native species. Diseases that may exist in extreme environments such as hydrothermal vents have not been well-studied, says Voight.

"It's clearly possible to accidentally introduce a species--and any potential diseases it may carry--from a deep-sea vent to a new location," she says. "That has implications for the future exploration of hydrothermal vents. It reveals the potential risk of human-driven change to ecosystems, even those ecosystems most of us will never see."

The discovery is a valuable lesson to the scientists and vehicle operators who work in the deep sea, says Brian Midson of NSF's Division of Ocean Sciences.

"Potential cross-fertilization and contamination of hydrothermal vents and other sites need to be considered during pre and post-dive activities," says Midson. "This new information will result in future discussions between shipboard crew and research scientists about the need for rigorous cleaning and inspection of sampling gear and vehicles, before and after every dive."

The limpets Voight found hitched a ride somewhere in the sub's suction sampler, she believes, "perhaps in the corrugated hose, where enough water pooled to keep them alive.
"Replacing the corrugated hose with a smooth hose may help prevent inadvertent transplants of biota, but any surface or crevice on the submersible or its gear could provide a refuge."

The scientists urge other researchers to assume that "physiologically tough" stowaways are present on deep-sea research instruments and to guard against transport of non-native species--from or to The Deep.

"Preventing introductions is of paramount importance," says Voight, "in maintaining intact hydrothermal vent ecosystems."

Plan ahead for invaders, Douglas Adams might have suggested, but "don't panic."
At least not yet.

ALLEGED COMMODITY POOL FRAUD IN FLORIDA


FROM:  U.S. COMMODITY FUTURES TRADING COMMISSION
CFTC Charges Jose S. Rubio and his Florida firm, Rubio Wealth Management, LLC, with Commodity Pool Fraud
Defendants also charged with misappropriation, false statements, commingling investor funds, and failure to register
Defendants allegedly fraudulently solicited over $1.8 million from at least 21 individuals
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that it filed a civil enforcement action against Jose S. Rubio (Rubio) and Rubio Wealth Management, LLC (RWM) of Surfside and Coral Gables, Fla., respectively. The CFTC complaint charges Rubio and RWM with defrauding investors in connection with operating a commodity pool to trade commodity futures and off-exchange foreign currency (forex) contracts. The CFTC complaint also charges Rubio with making false statements to pool participants, misappropriating pool funds, commingling investor funds with those of RWM, failing to register as a commodity pool operator, and failing to produce documents to the CFTC.

The CFTC complaint, filed June 7, 2012, in the U.S. District Court for the Southern District of Florida, alleges that from at least January 2008 through the present, Rubio and RWM solicited and accepted at least $1.8 million from at least 21 individuals in connection with their commodity pool. According to the complaint, Rubio and RWM lost in excess of $900,000 through trading and misappropriated at least $820,000 of participants’ funds.

Rubio allegedly made misrepresentations when soliciting and accepting pool participants’ funds. Rubio and RWM allegedly misappropriated some of those funds and used some investor funds to repay other investors, in the manner of a Ponzi scheme. The complaint also alleges that Rubio commingled investor funds with those of RWM, failed to register with the CFTC, and failed to produce documents to the CFTC.

The complaint alleges that, to conceal and perpetuate the fraud, Rubio failed to provide annual financial statements to pool participants and provided at least one pool participant with false investment performance documents that failed to disclose trading losses and misappropriation.

In its continuing litigation, the CFTC seeks civil monetary penalties, restitution, trading and registration bans, and preliminary and permanent injunctions against further violations of the federal commodities laws, as charged.

The CFTC appreciates the assistance of the Florida Office of Financial Regulation and the Financial Industry Regulatory Authority.

CFTC Division of Enforcement staff members responsible for this case are Christopher Giglio, David Oakland, Nathan Ploener, Manal Sultan, Lenel Hickson, Steve Obie, and Vincent McGonagle.

U.S.-MACEDONIA RELATIONS

Photo:  Seaside View Of Ohrid in Republic of Macedonia.  Credit:  Wikipedia.
FROM:  U.S. DEPARTMENT OF STATE
U.S.-Macedonia Relations
Bureau of European and Eurasian Affairs
Fact Sheet
June 5, 2012
U.S.-MACEDONIA RELATIONS
Macedonia and the United States enjoy a cooperative relationship across a broad range of political, economic, cultural, military, and social issues. The two have had good bilateral relations since Macedonia gained its independence from Yugoslavia in 1991. The United States formally recognized Macedonia in 1994, and the countries established full diplomatic relations in 1995. The United States strongly supports Macedonia's aspirations for full integration into Euro-Atlantic institutions and is committed to helping Macedonia strengthen rule of law; improve education; promote media freedom; and build greater democratic foundations in a full, inclusive multi-ethnic society.

The United States and its European allies strongly condemned the initiators of the 2001 insurgency in Macedonia, which grew from ethnic tensions, and closely supported the government and major parties' successful efforts to forge a peaceful, political solution to the crisis through the Ohrid Framework Agreement. In partnership with the European Union and other international organizations active in Macedonia, the United States continues to facilitate the Macedonian Government's implementation of the Framework Agreement and fostering long-term peace and stability in the country..

U.S. Assistance to Macedonia
U.S. Government assistance to Macedonia focuses on facilitating Macedonia’s continued development on the path toward full integration into the Euro-Atlantic community and assisting the Macedonian Government’s efforts to sustain economic and democratic reforms to build stability and prosperity.

Bilateral Economic Relations
The United States supports Macedonia's transition to a market-oriented economy. Macedonia is a member of the World Trade Organization seeks to join the European Union (EU); a starting date for accession negotiations has been deferred by the EU.
In 2010, total trade between Macedonia and the United States was $116.6 million, and in the first 8 months of 2011 it was $65 million. U.S. electrical machinery and equipment have been particularly attractive to Macedonian importers. Principal Macedonian exports to the United States are tobacco, apparel, iron, and steel.

Macedonia's Membership in International Organizations
Macedonia and the United States belong to a number of the same international organizations, including the United Nations, Organization for Security and Cooperation in Europe, Adriatic Charter, International Monetary Fund, World Bank, and World Trade Organization.

Macedonia seeks to join the North Atlantic Treaty Organization (NATO).In 2008, NATO Allies noted that Macedonia met NATO membership criteria and in2012 reconfirmed the commitment to invite Macedonia to join NATO as soon as a solution is reached in Macedonia's dispute with NATO member Greece over Macedonia's name. Macedonia continues to make an important contribution to regional stability by supporting the logistical supply of North Atlantic Treaty Organization (including U.S.) peacekeepers in Kosovo. Macedonia participated in OIF and currently participates in ISAF, the EU Althea Mission in Bosnia and Herzgovina, and the UN’s observer mission in Lebanon.

GENERAL ALLEN APPOLGIZES FOR AIRSTRIKE


 Photo: Marine Corps General John R. Allen.  Credit:  U.S. Department of Defense.
FROM:  AMERICAN FORCES PRESS SERVICE
Allen Visits Afghan Officials, Families of Dead
By Army Sgt. 1st Class Tyrone C. Marshall Jr.

WASHINGTON, June 8, 2012 - The commander of International Security Assistance Forces today visited Afghan officials and the families of civilians reportedly killed during a June 6 airstrike and issued an apology for the attack, a senior Pentagon official said.
Marine Corps Gen. John R. Allen "did render his apologies for the civilian casualties that we caused," Navy Capt. John Kirby said in response to a reporter's question. "We know that we did cause a number of civilian casualties in this air strike, and he also made it clear that we would make good in terms of compensation to the families."

News reports say 18 Afghan civilians were killed in the airstrike, but Kirby noted an assessment team continues to investigate. "It would be premature and irresponsible" to discuss specific numbers, he said.

Kirby explained the incident leading to the airstrike which came after ISAF troops were fired upon while tracking Taliban fighters in eastern Logar province.
"As the joint Afghan-U.S. force approached the building, a number of our forces were taken under fire," he said. "A hand grenade was thrown and some of our people ... were wounded."

"Those forces called out to the people who were shooting at them to come out," he added. "They refused."

The coalition force used procedures in the tactical directive that seek to limit deadly force until there were no further alternatives, Kirby said.
"Unfortunately, the situation became worse and eventually air support was requested," he said. "And then, sadly, innocent people were killed, along with insurgents who were in the building when that air support was used."

Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, explained in a press briefing yesterday how knowledge of potential civilian casualties came about.

"At the time, there were two civilians who came forward declaring that they'd been wounded in the action," the general said. "We did a sweep of the area and did not, at that time, find any other civilian casualties in the rubble."

Following the search, Dempsey said, a leader of the province came forward and said further searching in the rubble yielded more civilian casualties.

"We don't know, at this point, the scope and scale of it," he said. "As you know, we do our very best to avoid civilian casualties, so this investigation will try to determine if there were civilian casualties and then we will take the appropriate actions."

Kirby pointed out while there was a loss of civilian lives, "we also know that we killed a number of insurgents, as well."

"[But] as I said before, we take these allegations – if they're proven that we have harmed innocent civilians – very seriously, as evidenced by General Allen's trip there today," he said.

"But we also work very hard to limit civilian casualties and when they're caused, we atone for that," Kirby said. "The Taliban doesn't. The Taliban causes far more civilian casualties than we do, and oftentimes, it's deliberate and malicious."

CHAIRMAN OF CFTC BLASTS CONGRESS FOR PUTTING WALL STREET INTEREST AHEAD OF THE PUBLICS


Photo Credit:  U.S. Commodity Futures Trading Commission  
FROM:  U.S. COMMODITY FUTURES TRADING COMMISSION 
Statement of CFTC Chairman Gary Gensler Regarding House Appropriations Subcommittee’s Vote on the CFTC Budget
Washington, DC – Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler today released the following statement after the House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies voted to cut the CFTC budget.

“The result of the House bill is to effectively put the interests of Wall Street ahead of those of the American public by significantly underfunding the agency Congress tasked to oversee derivatives – the same complex financial instruments that helped contribute to the most significant economic downturn since the Great Depression.

“The CFTC’s hardworking staff is just 10 percent more in numbers than at our peak in the 1990s, yet Congress has now directed the agency to oversee the swaps market that is eight times larger than the futures market. Picture the NFL expanding eightfold to play more than 100 football games in a weekend, leaving just one referee per game, and, in some cases, no referee. Imagine the mayhem on the field, the resulting injuries to players, and the loss of confidence fans would have in the integrity of the game.

“We would not want similar mayhem and loss of confidence in markets so critical to farmers, ranchers and end users that may result from this bill’s significant underfunding of the CFTC.”

EPA COMES TO TOWN TO CLEANUP DULUTH WITH $850,000


Photo:  Ore Ship Lake Superior Duluth, Minnesota.  Credit:  U.S. EPA
FROM:  U.S. ENVIRONMENTAL PROTECTION AGENCY
EPA Announces $850,000 in Grants to Clean Up Contaminated Sites in Duluth; State to Receive a Total of $2,650,000 in Grants and Loans

(CHICAGO – June 7, 2012) U.S. Environmental Protection Agency Regional Administrator Susan Hedman today joined Mayor Don Ness at the Duluth Heritage Sports Center to announce $850,000 in grants to redevelop contaminated properties, create jobs and protect public health in Duluth.  The city and the Duluth Economic Development Authority will use these “brownfield grants” to assess and clean up abandoned industrial and commercial properties.

Previous EPA brownfield grants helped to assess the Clyde Iron Works site so it could be cleaned up and redeveloped. The former brownfield site is now the Duluth Heritage Sports Center.

"EPA's brownfield grants will be used to clean up contaminated sites along the St. Louis River and Lake Superior shoreline in Duluth," said EPA Region 5 Administrator Susan Hedman.  "These grants will help to expand recreational opportunities and create jobs.”
The Duluth Economic Development Authority will receive a $200,000 brownfield grant to clean up hazardous substances at Bayfront Lot D on the 900 to 1000 block of Railroad Street. The site, which once housed freight depots, warehouses and manufacturing businesses, has been abandoned and is contaminated with polynuclear aromatic hydrocarbons, heavy metals and petroleum waste. The Duluth Economic Development Authority wants to redevelop the site as part of the Minnesota Department of Natural Resources Safe Harbor system for recreational boaters, which would help stimulate redevelopment and investment in the area.

“Our partnership with the EPA has been critical to DEDA’s ability to prepare sites for productive development. This grant will serve as a catalyst to significant private sector investment,” said Nancy Norr, Vice President of DEDA.

The city will also receive a $650,000 Revolving Loan Fund grant for the cleanup of hazardous substances.  This grant will be used to clean up brownfield sites throughout the city, with special emphasis on the St. Louis River/Lake Superior Shoreline Corridor Project Area. More than half of Duluth’s industrial brownfields are in the corridor, which extends from downtown to the western end of the city and northwest to Skyline Parkway. The St. Louis River flows into Lake Superior in the corridor, forming the world’s largest freshwater estuary. Ten of the streams that flow into the estuary within the Corridor are designated trout streams.

“Properties along the St. Louis River Corridor hold some of the greatest potential in the City for redevelopment that will result in the growth of jobs, tax base and population. There is also potential for increased recreational access to the St. Louis River.  But assessment and cleanup of brownfield properties is complex and costly; we constantly strive to have as many ‘tools’ in the toolbox to address these challenges, and the two grants announced today will be effective tools,” said Heidi Timm-Bijold, Duluth’s Acting Director for Business and Economic Development.

The Duluth grants are part of the EPA’s $69.3 million 2012 nationwide brownfield grants to clean up and redevelop contaminated properties, boost local economies, create jobs and protect public health. Since 2002, EPA has awarded more than $2 million in brownfield grants to Duluth.

VICE PRESIDENT BIDEN & FAMILY SHARE DEPLOYMENT EXPERIENCES


FROM:  AMERICAN FORCES PRESS SERVICE
Vice President Joe Biden (center, far right) meets with military children and families at the District of Columbia National Guard Armory in Washington, D.C., June 9, 2012. The Biden family participated in a United Service Organizations of Metropolitan Washington-hosted reading of Dr. Jill Biden's book, "Don't Forget, God Bless Our Troops." The book teaches coping methods for military children who are dealing with the absence of loved ones during deployment. DOD photo by Army Sgt. 1st Class Tyrone C. Marshall Jr.

Biden Family Shares Deployment Experiences at USO Event
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
WASHINGTON, June 9, 2012 - Vice President Joe Biden, accompanied by his wife, Dr. Jill Biden, and their five-year-old granddaughter, Natalie, shared their first-hand experiences on how the deployment of a military parent can impact children during a United Service Organizations-hosted book reading here today.

The Bidens traveled to the District of Columbia National Guard Armory to meet with children of members of the D.C. National Guard. Dr. Biden read from her new book, "Don't Forget, God Bless Our Troops."

Dr. Biden's book teaches coping methods for military children who are dealing with the absence of loved ones during deployment. The book provides a personal account of Natalie's experience in coping when her father, then-Army Capt. Joseph R. "Beau" Biden III, departed in the fall of 2008 for a year-long deployment to Iraq with his Delaware National Guard unit. Biden, a military lawyer, has since been promoted to major.
"There are tens of thousands of beautiful kids just like this all over the country," Vice President Biden said at the armory. "What we found out ... was when your mommy and daddy are away it's a hard thing. It's a difficult thing."

"So Jill found out there's a lot of ways to kind of make you feel better," he added. "By the way, it's not just little kids. You don't have to be four, five, six, seven or eight. You can be 17, 18, [or] 19. It doesn't matter."

Elaine Rogers, president of USO of Metropolitan Washington, explained to the children who Dr. Biden was and why she came up with the idea to write a book to help military families.

"She loves children," Rogers said of Dr. Biden. "But do you know which children are very special to her? Military children -- children who have ..." [one or both parents] "in the military."

Rogers said Dr. Biden knows things can be hard when parents are away because of her experiences with her own two grandchildren, Natalie and Hunter.

"This is Natalie's story, as well as your story, because how many your moms and dads have gone to Iraq or Afghanistan?" Dr. Biden asked the children. "What I realized when I went around this country, is that many Americans don't even know anybody, at all, in the military."

"And they don't know how strong you are and how resilient you are when your moms and dads are away," she added.

Prior to reading the book in its entirety, the Bidens provided free copies to each child at the armory. Proceeds from book sales, Rogers said, will be donated to the USO to support the education of military children.

"We're going to make scholarships for kids like you when you get ready to go to college," Rogers told the children.

Vice President Biden reminded the children to remember they are not alone in their experiences and their parents are constantly thinking of them.
"Just remember when your daddy and mommy are working for the country and they're away -- they're always, always thinking about you," he said. "And parents, thank you very much. Thank you for your service. It's amazing what you do."

SEC FILES ACTION AGAINST ALLEGED PENNY-STOCK FRAUDSTERS


FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
June 1, 2012
SEC Files Action Against Three Penny-Stock Fraudsters
The Securities and Exchange Commission ("SEC") today charged three individuals for their roles in a $3.9 million scheme to manipulate the market and to profit from the issuance and sale of Grifco International, Inc. (“Grifco”) stock. The SEC's complaint alleges that the stock manipulation scheme was orchestrated and devised by James Roland Dial, Grifco’s former president, chief executive officer, and sole director, Evan Nicolas Jarvis, a stock promoter and de facto Grifco officer, and Alex W. Ellerman, another stock promoter.

The complaint alleges that between December 2004 through November 2006, Dial and Jarvis caused Grifco, a publicly-traded corporation that claimed to be an international provider of oil and gas services equipment, to issue over 13 million purportedly unrestricted Grifco securities to Ellerman, themselves or their nominees. The complaint alleges that Dial, Jarvis and Ellerman sold the Grifco securities to the investing public shortly after receiving their shares, often times selling those shares into a rising, artificial market they created by disseminating false and material misleading information about Grifco to prospective investors and shareholders. None of the securities transactions were registered with the SEC and the transactions did not satisfy any exemption from registration according to the complaint. The SEC alleges that, as a result of this conduct, Dial, Jarvis, and Ellerman collectively received nearly $3.3 million in ill-gotten gains from the sale of newly-issued Grifco stock. The complaint also alleges that Dial misappropriated at least $600,000 by looting Grifco’s cash account from September 2005 through December 2006.

The SEC’s complaint also alleges that Dial, Jarvis, and Ellerman engaged in a pump-and-dump scheme designed to defraud and deceive existing and potential investors into purchasing Grifco shares while they sold Grifco shares at inflated prices into an artificially active market that they created. The complaint alleges that Dial made false and misleading information about Grifco through press releases, investor conference calls, and other statements to Grifco shareholders that Jarvis and Ellerman, at times, disseminated. Dial, Jarvis, and Ellerman sold many of their own Grifco shares at or near the release of this information, even though they knew that the press releases and other statements contained false and misleading information regarding Grifco’s financial position and projected sales, its products and product development, and the company’s total outstanding shares.

The complaint charges that Dial, Ellerman, and Jarvis violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, officer and director bars, and penny stock bars against each.

Dial, Jarvis, and Ellerman have consented to the entry of a final judgment that: (i) enjoins them from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; (ii) and bars them from serving as an officer or director of a public company or participating in an offering of any penny stock. Dial, Jarvis, and Ellerman also consented to entry of a final judgment that orders them to pay disgorgement and prejudgment interest in the amount of $1,600,628, $2,095,524, and $939,650, respectively, which will be deemed satisfied upon entry of a restitution order in an equal or greater amount in a related enforcement action brought by the United States Attorney’s Office for the Southern District of Texas (Houston); United States v. Alex Ellerman et al., Cr. NO. H-10-56-S (S.D. Tex.) (U.S. v. Ellerman).

On May 22, 2012, the Honorable David Hittner, United States District Court Judge for the Southern District of Texas, sentenced Dial to a five-year prison sentence for conspiring to commit wire fraud. Today, Judge Hittner also sentenced Jarvis to a five-year term of imprisonment for conspiring to commit wire fraud while Ellerman received a reduced prison sentence of 40 months because he cooperated with the prosecution and provided evidence against his co-defendants. The sentencings followed March 2011 pleas of guilty by Dial, Jarvis and Ellerman for conspiracy to commit wire fraud.

The SEC acknowledges the assistance of the United States Attorney's Office for the Southern District of Texas, the Federal Bureau of Investigation, and the Harris County (Houston, Texas) District Attorney's Office.

REPORT: CORRELATION BETWEEN GLOBAL CLIMATE AND ATMOSPHERIC CARBON DIOXIDE LEVELS



The phytoplankton Emiliania huxleyi offers new clues about climate past, present and future. Photo Credit:  Wikimedia.


June 6, 2012
Until now, studies of Earth's climate have documented a strong correlation between global climate and atmospheric carbon dioxide; that is, during warm periods, high concentrations of CO2 persist, while colder times correspond to relatively low levels.

However, in this week's issue of the journal Nature, paleoclimate researchers reveal that about 12-5 million years ago climate was decoupled from atmospheric carbon dioxide concentrations. New evidence of this comes from deep-sea sediment cores dated to the late Miocene period of Earth's history.
During that time, temperatures across a broad swath of the North Pacific were 9-14 degrees Fahrenheit warmer than today, while atmospheric carbon dioxide concentrations remained low--near values prior to the Industrial Revolution.
The research shows that, in the last five million years, changes in ocean circulation allowed Earth's climate to become more closely coupled to changes in carbon dioxide concentrations in the atmosphere.

The findings also demonstrate that the climate of modern times more readily responds to changing carbon dioxide levels than it has during the past 12 million years.

"This work represents an important advance in understanding how Earth's past climate may be used to predict future climate trends," says Jamie Allan, program director in the National Science Foundation's (NSF) Division of Ocean Sciences, which funded the research.

The research team, led by Jonathan LaRiviere and Christina Ravelo of the University of California at Santa Cruz (UCSC), generated the first continuous reconstructions of open-ocean Pacific temperatures during the late Miocene epoch.

It was a time of nearly ice-free conditions in the Northern Hemisphere and warmer-than-modern conditions across the continents.
The research relies on evidence of ancient climate preserved in microscopic plankton skeletons--called microfossils--that long-ago sank to the sea-floor and ultimately were buried beneath it in sediments.

Samples of those sediments were recently brought to the surface in cores drilled into the ocean bottom.  The cores were retrieved by marine scientists working aboard the drillshipJOIDES Resolution.

The microfossils, the scientists discovered, contain clues to a time when the Earth's climate system functioned much differently than it does today.
"It's a surprising finding, given our understanding that climate and carbon dioxide are strongly coupled to each other," LaRiviere says.

"In the late Miocene, there must have been some other way for the world to be warm. One possibility is that large-scale patterns in ocean circulation, determined by the very different shape of the ocean basins at the time, allowed warm temperatures to persist despite low levels of carbon dioxide."
The Pacific Ocean in the late Miocene was very warm, and the thermocline, the boundary that separates warmer surface waters from cooler underlying waters, was much deeper than in the present.

The scientists suggest that this deep thermocline resulted in a distribution of atmospheric water vapor and clouds that could have maintained the warm global climate.

"The results explain the seeming paradox of the warm--but low greenhouse gas--world of the Miocene," says Candace Major, program director in NSF's Division of Ocean Sciences.

Several major differences in the world's waterways could have contributed to the deep thermocline and the warm temperatures of the late Miocene.
For example, the Central American Seaway remained open, the Indonesian Seaway was much wider than it is now, and the Bering Strait was closed.
These differences in the boundaries of the world's largest ocean, the Pacific, would have resulted in very different circulation patterns than those observed today.

By the onset of the Pliocene epoch, about five million years ago, the waterways and continents of the world had shifted into roughly the positions they occupy now.

That also coincides with a drop in average global temperatures, a shoaling of the thermocline, and the appearance of large ice sheets in the Northern Hemisphere--in short, the climate humans have known throughout recorded history.

"This study highlights the importance of ocean circulation in determining climate conditions," says Ravelo. "It tells us that the Earth's climate system has evolved, and that climate sensitivity is possibly at an all-time high."
Other co-authors of the paper are Allison Crimmins of UCSC and the U.S. Environmental Protection Agency; Petra Dekens of UCSC and San Francisco State University; Heather Ford of UCSC; Mitch Lyle of Texas A&M University; and Michael Wara of UCSC and Stanford University.

Sunday, June 10, 2012

DETROIT RESIDENT SENTENCED TO 30 MONTHS IN PRISON FOR PART IN MEDICARE FRAUD SCHEME


FROM:  U.S. DEPARTMENT OF JUSTICE
Thursday, June 7, 2012
Co-Owner of Detroit-Area Therapy Company Sentenced to 30 Months for Medicare Fraud Scheme
WASHINGTON – The co-owner of a Detroit-area physical and occupational therapy company was sentenced today to 30 months in prison for his leading role in a more than $1.9 million Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).

Victor Jayasundera, 59, was sentenced by U.S. District Judge Avern Cohn in the Eastern District of Michigan.  In addition to his prison term, Jayasundera was sentenced to three years of supervised release and was ordered to pay $855,484 in restitution, joint and several with his co-defendants.

Jayasundera pleaded guilty on Jan. 18, 2012, to the charges against him in a superseding indictment:  one count of conspiracy to commit health care fraud and six counts of health care fraud.  According to the superseding indictment, Jayausundera co-owned a company known as Jos Campau Physical Therapy with co-defendant Fatima Hassan.  Jos Campau Physical Therapy did not have a Medicare provider number and was not entitled to bill Medicare for therapy services.

According to the superseding indictment and evidence presented at the trial of a co-defendant, Jos Campau paid kickbacks to recruiters who obtained Medicare beneficiary information and signatures needed to create fictitious physical and occupational therapy files.  The Medicare beneficiaries pre-signed forms and visit sheets that were later falsified to indicate that they received therapy services that were never provided.

Jayasundera, a physical therapist, falsified patient evaluation forms and fictitious patient notes for physical therapy services that were never rendered.  Jayasundera and his co-owner also hired and paid an occupational therapist and an uncertified occupational therapy assistant to falsify medical files.  The occupational therapist created patient evaluation forms for beneficiaries whom she had never met, seen or evaluated.  The uncertified therapy assistant fabricated and signed patient notes for occupational therapy visits.  The uncertified therapy assistant did not provide the services reflected in the fictitious patient notes.

Jayasundera and his co-owner sold the fictitious physical and occupational therapy files to multiple fraudulent therapy companies that had obtained Medicare provider numbers.  Those companies billed the fictitious files created by Jos Campau Physical Therapy to Medicare and paid kickbacks to Jos Campau Physical Therapy based on these billings.  Jayasundera and his co-owner split the profits from the sale of the falsified files.

Between approximately June 2005 and May 2007, the false files created and sold by Jos Campau Physical Therapy resulted in the submission of approximately $1.9 million in fraudulent claims to the Medicare program for physical and occupational therapy services that were never rendered.

Jayasundera’s co-owner, Fatima Hassan, pleaded guilty on Aug. 25, 2011, for her role in the scheme, and on May 17, 2012, was sentenced to 48 months in prison.  Carol Gant, the occupational therapist, and Vanessa Dowell, the uncertified occupational therapy assistant, also pleaded guilty in 2011.  Tariq Mahmud, the owner of a Medicare provider company that bought and billed Jos Campau Physical Therapy’s fake files, was convicted at trial on Feb. 2, 2012, for his role in the scheme and is scheduled to be sentenced on July 19, 2012.

Today’s sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.

This case was prosecuted by Trial Attorney Catherine K. Dick and Assistant Chief Benjamin D. Singer of the Criminal Division’s Fraud Section.  It was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.

Since their inception in March 2007, the Medicare Fraud Strike Force operations in nine districts have charged more than 1,330 individuals who collectively have falsely billed the Medicare program for more than $4 billion.  In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

AMERICAN SAMOA DEPARTMENT OF EDUCATION OFFICIAL SENTENCED TO PRISON



FROM:  U.S. DEPARTMENT OF JUSTICE
Friday, June 8, 2012
American Samoa Department of Education Official Sentenced to 35 Months in Prison for Witness Tampering and Obstruction of Justice
WASHINGTON – Paul Solofa, the former chief financial officer for the Department of Education for the government of the U.S. Territory of American Samoa was sentenced today to 35 months in prison following his conviction earlier this year for his efforts to obstruct a federal grand jury and law enforcement investigation into a bribery scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.

The sentence was imposed by U.S. District Court Judge Reggie B. Walton in the District of Columbia.  After a four-day trial in January 2012, a federal jury in the District of Columbia found Solofa, 50, guilty of one count of witness tampering and one count of obstruction of justice.

According to evidence presented at trial, in approximately early 2008, federal authorities began conducting an investigation into allegations of cash bribes and kickbacks paid by vendors to officials of the American Samoa Government in connection with the government’s purchase of school bus parts and services.

According to the trial evidence, Solofa met on April 3, 2009, with a school bus parts vendor who told Solofa that the FBI was interested in interviewing the vendor regarding the bus parts investigation.  Solofa, in a recorded meeting, allegedly told the vendor that, “They cannot do anything with cash.  Nothing.  They cannot do anything with cash.  They cannot track down you on cash.  Because even if you say you gave me cash I'll tell them ‘no.’  They cannot take your word on cash.  Because that’s hearsay.  So you know, but the best thing for you to do is ‘nope, I never give them any cash, I never’ – because that will open up the whole operation . . . You get what I am saying.  All you do is just tell them ‘no, yes, no, yes,’ period.”

In addition, according to the evidence presented at trial, Solofa met on April 14, 2009, with the same bus parts vendor, who told Solofa that a grand jury subpoena requiring production of specific documents and records, some of which related to Solofa and to the bus parts kickback scheme, would be issued shortly.  After discussing how to respond, Solofa told the vendor that, as for documents he did not want to produce, “[t]he only way to do it with those copies is burn it.  That way, they won’t see it, and you won’t worry that they might see it, you know. . . .  Just burn it, and nobody has a copy.”

The head of the School Bus Division for the American Samoa Department of Education, Gustav Nauer, 47, was also convicted for his role in the bribery scheme.  On June 4, 2012, Nauer was sentenced to 25 months in prison.

This case was prosecuted by Principal Deputy Chief Raymond N. Hulser and Trial Attorney Tim Kelly of the Public Integrity Section in the Justice Department’s Criminal Division.  The case was investigated by the FBI; the Office of the Inspector General for the U.S. Department of Education; and the Office of the Inspector General for the U.S. Department of the Interior.

JUSTICE AND UNITED AIRLINES SETTLE LAWSUIT REGARDING EMPLOYMENT RIGHTS OF AIR NATIONAL GUARDSMAN


FROM:  U.S. JUSTICE DEPARTMENT
Friday, June 8, 2012
Justice Department Settles Lawsuit with United Airlines to Enforce Employment Rights of Air National Guardsman
The Justice Department announced today that it has reached a settlement with United Airlines Inc., resolving TenEyck LaTourrette’s allegation that the airline violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) by under compensating his retirement plan during his military service.   LaTourrette is currently a major serving in the Colorado Air National Guard and a first officer for United Airlines.

LaTourrette alleged that United Airlines based its pension contributions on a minimum monthly schedule, rather than using LaTourrette’s actual schedule during the 12 months preceding his military obligations, as required by USERRA.   Among the protections provided by USERRA are provisions related to the pension benefits a service member receives from his civilian employer.  As a general matter, Section 4318 under USERRA provides that a service member’s pension benefits will continue to accrue while he is on active duty.   To that end, USERRA requires an employer to make contributions to the pension fund of a deployed reservist “in the same manner and to the same extent the allocation occurs for other employees during the period of service.”

“This nation relies on the members of our National Guard and reserve, and this settlement exemplifies our efforts to ensure that they can serve their nation without penalty from their employers,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.
                     
Under the terms of the settlement, United Airlines will fully compensate LaTourrette for all deficient pension payments, plus any associated earnings, in full satisfaction of any and all claims.  The settlement, if approved by the court, would resolve all of the allegations that United Airlines violated USERRA with respect to LaTourrette’s pension claim.

USS UNDERWOOD CREW COMMEMORATE CHILEAN NAVAL HERO ARTURO PRAT

FROM:  U.S. NAVY

VALPARAISO, Chile (June 6, 2012) Cmdr. Peter T. Mirisola, commanding officer of the Oliver Hazard Perry-class guided-missile frigate USS Underwood (FFG 36), and officers from the Chilean navy and U.S Military Group in Chile salute during a wreath-laying ceremony at the Arturo Prat Monument in Valparaiso, Chile. Underwood is deployed to Central and South America and the Caribbean in support of Southern Seas 2012. (U.S. Navy photo by Mass Communication Specialist 3rd Class Frank J. Pikul/Released) 




Underwood Crew Commemorates Chilean Naval Hero
By Mass Communication Specialist 3rd Class Frank J. Pikul, Southern Seas
2012 Public Affairs
VALPARAISO, Chile (NNS) -- Crew members from the Oliver Hazard Perry-class guided-missile frigate USS Underwood (FFG 36) participated in a wreath-laying ceremony at the Arturo Prat Monument in Valparaiso, Chile, June 6.

The ceremony was held to honor Capt. Arturo Prat, a Chilean naval hero, and other fallen Chilean sailors who fought during the War of the Pacific.

"The Chileans honor Capt. Arturo Prat and the other sailors who fought beside him because they respect the bravery of the men who followed him into battle," said Cmdr. David Brown, a U.S. Navy representative in Chile. "Those sailors sacrificed their lives in the defense of Chile."

The War of the Pacific was fought between Chile and Peru in the late 19th century. During the Battle of Iquique, Prat attempted to board a Peruvian vessel and was killed during the attack. His bravery is honored every year by the Chilean president's visit to the monument. May 21, the anniversary of the battle, is also annually celebrated in Chile as "Navy Day."

"The Chileans are very proud of their naval heritage and traditions and they honor bravery," said Brown.

Approximately 10 Sailors from Underwood were selected to attend the ceremony and were invited to tour the crypt beneath the monument, a special honor as the crypt is only opened three times a year.

"I think it is good to let the Sailors from Underwood experience this because it is a part of naval history and gives a unique perspective on how other navies honor their dead," said Brown.

Underwood is in Chile to promote cooperation and friendship between the U.S. and Chilean navies and is deployed to Central and South America and the Caribbean in support of Southern Seas 2012.

U.S. Naval Forces Southern Command and U.S. 4th Fleet (COMUSNAVSO/C4F) supports USSOUTHCOM joint and combined full-spectrum military operations by providing principally sea-based, forward presence to ensure freedom of maneuver in the maritime domain, to foster and sustain cooperative relationships with international partners and to fully exploit the sea as maneuver space in order to enhance regional security and promote peace, stability, and prosperity in the Caribbean, Central and South American regions.

A LOOK AT REAL LIFE COMMANDOS IN COMPETITION


FROM:  AMERICAN FORCES PRESS SERVICE 
A member of the U.S. special operations forces competes in the rifle qualification event for Fuerzas Comando, June 7, 2012, at the Colombian National Training Center in Tolemaida, Colombia. Photo by Army Sgt. Karen Kozub  

Commando Competition Promotes Special Ops Skills, Collaboration
By Donna Miles
WASHINGTON, June 8, 2012 - As elite commandos from across the Western Hemisphere compete this week in a grueling counterterrorism and special operations skills competition, the commander of Special Operations Command South said they're building the relationships required to confront transnational organized crime gripping much of the region.

Fuerzas Comando 2012 kicked off this week at the Colombian National Training Center in Tolemaida, Colombia.

Competitors from 21 nations across the Americas and the Caribbean are taking part in the ninth annual event, sponsored by U.S. Southern Command and designed to promote military-to-military relationships, increased interoperability and improved regional security, Navy Rear Adm. Thomas L. Brown, II, told American Forces Press Service.

The participants in this year's Fuerzas Comando hail from The Bahamas, Belize, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Honduras, Jamaica, Mexico, Panama, Paraguay, Peru, Trinidad and Tobago, the United States and Uruguay.

The eight-day competition consists of sniper, assault, aquatic, physical fitness, strength and endurance events that challenge commandos psychologically, as well as physically. It will wrap up with a multinational airborne operation and wing exchange June 13, with a closing ceremony the next day.

The event has sparked healthy competition among participants, Brown said, but added that they also get to learn a lot about other regional forces and how they operate. "The practical side is that we gain a better understanding of each other's equipment, capabilities and skills," he said.

Along with better understanding, he said competitors develop the kind of mutual trust they need to work together.

"Special operations is a very human-centric business. It's not as much dependent on platforms and technical capabilities. It is really about people," Brown said. "Relationships are critical... to confront the threats that we face in the hemisphere together."
Transnational organized criminals, violent extremist groups and dangerous non-state actors present a particular challenge because they operate without respect for national boundaries and sovereignty, he noted.

Nations working to confront them don't have that advantage. "We must respect them, so we have to overcome that advantage through increased cooperation and increased information flow wherever we can," Brown said. "In a nutshell, that's the science behind why we have to work hard at this."

As special operators test their tactical skills this week, their senior military and government leaders are coming together in Bogota to explore ways to promote those efforts. Each participating nation has sent senior special operations commandos and ministerial-level policymakers associated with the country's terrorism policies, procedures and strategies to the seminar.
"This is the one forum that we have annually where we can come together as a region and talk about ideas, [about how to] increase our effect, collectively, against these dangerous non-state-actor threats we face," Brown said.

Representatives of Southcom, U.S. Special Operations Command and the U.S. interagency will participate in panel discussions and speaker engagements designed to stimulate dialogue about transnational organized crime and ways to address it. They'll share best practices and lessons learned by U.S. special operators and tips about tools they've found valuable, particularly low-cost ones with a high return. "You just can't have enough communication on that," Brown said said.

While acknowledging a temptation to overload participants with as much information as possible, Brown said he's committed to providing "a little less PowerPoint and more time for an exchange of ideas" that better promotes relationship-building.

Brown said he's particularly pleased that Mexico, Canada and the Bahamas – countries that fall under U.S. Northern Command's area of responsibility – have joined this year's event.

"Many of the challenges we face are hemispheric challenges, and they don't follow a dividing line of our national security system," he said. "We have to draw [organizational command] lines somewhere, and that is fine," he continued. "But we are working hard to break down those stovepipes and ensure that Northcom and Southcom are working together as a team. And I think this exercise is an example of how we are doing that."
Brown called Fuerzas Comando 2012 and its associated senior-leader seminar examples of a concerted effort to promote regional cooperation and engagement across the special operations community.

He noted another recent example, the International Special Operations Forces Conference that Navy Adm. William H. McRaven, the Socom commander, hosted last month in Tampa. Delegates from 96 countries gathered to exchange ideas, along with their different tactics, techniques and procedures and explored ways to establish a global special operations partnership.

"I watch the region's special operations leaders making connections and increasing the level and value of the cooperation between them," Brown said. "And I see that as a direct outshoot of exercises and forums where we develop these relationships between special operations forces across national and regional boundaries."

Brown is working with Air Force Gen. Douglas Fraser, the Southcom commander, to explore ways to expand these partnership-building initiatives into new areas. In doing so, he said he's tapping capabilities from throughout the Defense Department, including Socom, the Naval Postgraduate School's Center for Defense Analysis, the Center for Hemispheric Defense Studies and Joint Special Operations University, as well as civilian academic institutions.

"We are increasingly working on the cognitive side, sharing ideas," and encouraging more countries to work together, multinationally, he said. "So we are increasingly trying to connect the dots across the region."

As they connect the dots, Brown said he's pleased by the media attention Fuerzas Comando is receiving. It's helping to educate to the public across the hemisphere about how the United States is cooperating and sharing ideas and facilitating cooperation in support of regional security, he said.
But Brown said it's also drawing attention to the special operators from across the region who have stood up to provide that security.

"The quality and dedication of the troops from these partner nations, the pride they show, and the important role they play in security in the region is having a direct effect on people's quality of life," he said. "And I think that's a good message to get out there."


OWNER OF NON-PROFIT MEDICAL PRACTICE SENTENCED FOR TAX EVASION



FROM:  U.S. JUSTICE DEPARTMENT
Friday, June 8, 2012
Former Alabama Resident Sentenced to 53 Months in Prison for Tax EvasionTried to Hide Wife’s Income from Irs as Phony Loans

William Paul, a self-described “bishop,” was sentenced yesterday to 53 months in federal prison for tax evasion, the Justice Department and Internal Revenue Service (IRS) announced. Paul was convicted on Dec. 1, 2011, after a four-day jury trial, of four counts of evasion of his wife’s 2004 through 2007 individual income taxes and of one count of failing to file a tax return. On Nov. 16, 2011, his wife, Donna Paul, a board-certified physician, pleaded guilty to one count of tax evasion and one count of filing a false individual income tax return. She was also sentenced yesterday to three years of probation, including six months of home confinement and 200 hours of community service. U.S. District Judge Mark E. Fuller also ordered the Pauls to pay $85,396 in restitution to the IRS. Both William Paul and Donna Paul are former residents of Montgomery, Ala.

According to evidence introduced at trial and documents filed with Donna Paul’s plea agreement, Donna and William Paul owned and operated a medical practice in Montgomery, which was registered as a non-profit organization. The Pauls attempted to evade the assessment and payment of Donna Paul’s income by falsely characterizing her income as loans, by making false statements to IRS employees, and by deliberately causing the non-profit organizations to not file tax returns.

Evidence at trial further showed that Donna Paul did not timely file federal individual income tax returns for the years 2004 through 2007. On April 5, 2011, the day special agents from IRS-Criminal Investigation arrested her, Donna Paul filed four false individual income tax returns for tax years 2004 through 2007. She testified at trial that none of these tax returns included money she earned from her medical practice.

Based on testimony at trial, William Paul had not filed a federal income tax return since the 1980s. Donna Paul also testified that William Paul ran the business side of the medical practice, initially called “Rheumatology Specialists of Central Alabama,” then “Rheumatology Specialists Arthritis and Osteoporosis Center,” then “Children and Adult Arthritis and Osteoporosis Center.”

Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked special agents of IRS-Criminal Investigation, who investigated the case, Tax Division Trial Attorneys Justin Gelfand and Michael Boteler, who prosecuted the case, and George L. Beck Jr., U.S. Attorney for the Middle District of Alabama, and his entire office for their assistance in the prosecution.

LOBBYIST INDICTED FOR MAKING ILLEGAL CONTRIBUTIONS TO A CONGRESSMAN



FROM:  U.S. DEPARTMENT OF JUSTICE
Wednesday, June 6, 2012
Nevada Lobbyist Harvey Whittemore Indicted for Making Unlawful Campaign Contributions and Lying to Investigators
WASHINGTON – Nevada lobbyist and lawyer Harvey Whittemore was indicted today in the District of Nevada by a federal grand jury on charges that he made unlawful campaign contributions to an elected member of Congress, caused false statements to be made to the Federal Election Commission (FEC) and lied to the FBI, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Daniel G. Bogden, U.S. Attorney for the District of Nevada.

F. Harvey Whittemore, 55, of Reno, Nevada, was charged with one count of making excessive campaign contributions, one count of making contributions in the name of others and two counts of making a false statement to a federal agency.  Whittemore is scheduled to appear before a U.S. Magistrate Judge in Reno, Nevada, on June 7, 2012, at 3:00 p.m. PDT for arraignment.  If convicted, Whittemore faces up to five years in prison and a $250,000 fine on each count.

“Mr. Whittemore allegedly used his family members and employees as conduits to make illegal contributions to the campaign committee of an elected member of Congress,” said Assistant Attorney General Breuer.  “Furthermore, according to today’s indictment, he attempted to conceal his crimes by lying to the FBI.  Our campaign finance laws establish maximum limits on individual contributions, and failure to adhere to those rules jeopardizes the integrity of our elections.  We will continue to pursue those who engage in such conduct.”

“We remain committed to investigating and prosecuting illegal behavior that jeopardizes the integrity of our elections and corrupts our political process,” said U.S. Attorney Bogden. “Campaign finance laws exist to protect that process and criminal violations of those laws will be vigorously prosecuted by this office.”

Under federal law, it is illegal to contribute to a federal political campaign using a conduit in order to hide the identity of the true contributor.  Federal law also sets limits on the amount that an individual can contribute to a campaign.  In 2007, the maximum individual contribution was $2,300 for a primary election and $2,300 for a general election; thus, the maximum for one candidate was $4,600.

The indictment states that Whittemore was the chief executive of Company A.  On about Feb. 21, 2007, Whittemore allegedly met with an elected member of Congress (identified in the indictment as Federal Elected Official 1), and agreed to try to collect $150,000 in contributions for the elected official’s campaign committee by March 31, 2007, which marked the end of a legally required quarterly reporting period.  Aware of the strict limits on individual federal campaign contributions, Whittemore allegedly devised a scheme and plan whereby he used family members, employees of Company A, and their respective spouses, as prohibited conduits through which to funnel his own money to the federal elected official’s campaign committee under the guise of lawful campaign contributions.  This scheme allowed Whittemore to make an individual campaign donation to the federal elected official in excess of the limits established by federal law.  Whittemore allegedly concealed the scheme from the FEC, the elected official and the elected official’s campaign committee.

In March 2007, Whittemore allegedly solicited the employees, family members and their respective spouses to make the maximum campaign donations to the federal elected official and reimbursed the contributors with personal checks and wire transfers.  The indictment alleges that Whittemore attempted to conceal some of the reimbursements he made to the contributors by telling the employees that they were bonuses.  Whittemore also allegedly paid the contributors additional money on top of the reimbursements.  If a conduit contributed $4,600, Whittemore reimbursed the individual $5,000; likewise if a couple contributed $9,200, he paid the couple $10,000.

On about March 28, 2007, Whittemore allegedly caused a Company A employee to transmit $138,000 in contributions to the federal elected official’s campaign committee, the vast majority of which were conduit contributions that Whittemore had personally funded in order to satisfy his pledge to the federal elected official.  On April 15, 2007, the campaign committee then unknowingly filed false reports with the FEC stating that the conduits had made the contributions, when in fact, Whittemore had made them.

On about Feb. 9, 2012, Whittemore allegedly made false statements during an interview with FBI agents by claiming that he never made a request for campaign contributions; never asked employees of company A to contribute to the elected official’s campaign; never provided payments to anyone with the expectation that they would serve as reimbursements for campaign contributions; never spoke to any candidate about raising money for the candidate; and never gave money to family members to make political contributions.

The case is being investigated by the FBI and is being prosecuted by First Assistant U.S. Attorney Steven W. Myhre, Assistant U.S. Attorney Sue Fahami and Trial Attorney Eric G. Olshan of the Public Integrity Section in the Justice Department’s Criminal Division.
An indictment contains only charges and is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

SECRETARY OF THE NAVY MABUS AN ALBANIA'S MINISTER OF DEFENSE ARBEN FAHN IMAMI



Secretary of the Navy (SECNAV) the Honorable Ray Mabus and Arben Fahri Imami, Albania's Minister of Defense, receive honors from Albanian soldiers outside the Ministry of Defense in Tirana, Albania. Mabus met with Albanian officials to discuss continued bilateral naval cooperation and expressed appreciation for Albania's continued commitment to Afghanistan, stability in western Balkans, and encouraged efforts to strengthen the country's defense reforms and initiatives. U.S. Navy photo by Chief Mass Communication Specialist Sam Shavers (Released) 120607-N-AC887-005

OPERATION SAIL 2012




FROM:  U.S. NAVY
120608-N-TY225-288 NORFOLK (June 8, 2012) Various ships participating in Operation Sail (OpSail) 2012 Virginia sail past Naval Station Norfolk towards the downtown Norfolk waterfront. OpSail 2012 Virginia will be Norfolk's largest gathering of international tall ships and naval vessels in more than 100 years. OpSail 2012 Virginia commemorates the bicentennial of the War of 1812 and the writing of the Star Spangled Banner. (US Navy photo by Mass Communication Specialist 2nd Class Bryan Weyers/Released)








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