Saturday, June 30, 2012

BROTHER OF BERNIE MADOFF CHARGED WITH FRAUD BY SEC


FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., June 29, 2012 – The Securities and Exchange Commission today charged Peter Madoff, the brother of Bernie Madoff, with committing fraud, making false statements to regulators, and falsifying books and records in order to create the false appearance of a functioning compliance program over Madoff’s fraudulent investment advisory operations.

The SEC alleges that Peter Madoff, who served as Chief Compliance Officer and Senior Managing Director at Bernard L. Madoff Investment Securities LLC (BMIS) from 1969 to December 2008, created stacks of compliance documents setting out supposedly robust policies and procedures over BMIS’s investment advisory operations. However, Peter Madoff created these compliance manuals, written supervisory procedures, reports of annual compliance reviews, and compliance certifications to merely paper the file. No policies and procedures were ever implemented, and none of the reviews were actually performed even though Peter Madoff represented that he personally completed the reviews.

The U.S. Attorney’s Office for the Southern District of New York today announced parallel criminal charges against Peter Madoff.

“Peter Madoff helped Bernie Madoff create the image of a functioning compliance program purportedly overseen by sophisticated financial professionals,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “Tragically, the image was merely an illusion supported by Peter’s sham paperwork and false filings for which he was rewarded with tens of millions of dollars in stolen investor funds.”

According to the SEC’s complaint filed in U.S. District Court for the Southern District of New York, Bernie Madoff realized in late 2008 that his decades-long scheme was on the verge of collapse. He told Peter Madoff that he could not pay billions of dollars of investor redemption requests and wanted to distribute remaining investor money to family, friends, and favored employees before the scheme collapsed. Peter Madoff then helped choose which family, friends and employees to pay, and rushed to withdraw $200,000 from BMIS’s bank account for himself before the fraud’s final downfall.

The SEC alleges that in addition to creating false compliance materials, Peter Madoff created false broker-dealer and investment advisor registration applications filed by BMIS. He also failed to implement and review required policies and procedures, and falsified the firm’s books and records. Peter Madoff was richly rewarded for his misconduct, pocketing tens of millions of dollars through salary and bonuses, fake trades, sham loans, and direct, undocumented transfers of investor funds to himself from the bank account that BMIS used to perpetrate the Ponzi scheme.

The SEC’s complaint against Peter Madoff alleges that by engaging in this conduct, he violated and aided and abetted violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Section 207 of the Investment Advisers Act of 1940; and aided and abetted violations of Sections 15(b)(1), 15(c) and 17(a) of the Exchange Act and Rules 10b-3, 15b3-1 and 17a-3 thereunder, and Sections 204, 206(1), 206(2), 206(4) and 207 of the Advisers Act and Rules 204-2 and 206(4)-7 thereunder.
The SEC’s investigation was conducted by Aaron P. Arnzen and Kristine M. Zaleskas of the New York Regional Office. The SEC thanks the U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation for their coordination and assistance. The SEC’s investigation is continuing.

APOLLO 9 COMMAND DOCKS WITH SERVICE MODULE




FROM:  NASA
Gumdrop Meets Spider
This image, taken on March 6, 1969, shows the Apollo 9 Command and Service Modules docked with the Lunar Module. Apollo 9 astronaut Dave Scott stands in the open hatch of the Command Module, nicknamed "Gumdrop," docked to the Lunar Module "Spider" in Earth orbit. His crewmate Rusty Schweickart, lunar module pilot, took this photograph from the porch of the lunar module. Inside the lunar module was Apollo 9 commander Jim McDivitt. The crew tested the orbital rendezvous and docking procedures that made the lunar landings possible.
Image Credit: NASA

BALDOR ELECTRIC TO PAY $2 MILLION TO SETTLE ALLEGED DISCRIMINATION CASE


FROM:  U.S. DEPARTMENT OF LABOR
Baldor Electric to pay $2 million to settle hiring discrimination case with US Labor Department
Agreement includes back wages and interest, some job offers, for 795 female and minority applicants denied positions at Fort Smith, Ark., facility

WASHINGTON — The U.S. Department of Labor's Office of Federal Contract Compliance Programs today announced that Baldor Electric Co. has agreed to settle allegations of systemic discrimination stemming from the company's applicant screening process at its facility in Fort Smith, Ark. OFCCP investigators determined that the process violated Executive Order 11246 by creating a disparate impact on women and minorities. As a result, 795 qualified women, African-Americans and job seekers of Asian and Hispanic descent were denied the opportunity to advance to the interview stage when applying for production and laborer positions.

"I am pleased with this settlement, which reflects a mutual commitment between the Department of Labor and the leadership of Baldor to ensure that all workers have a fair and equal shot at competing for good jobs," said Secretary of Labor Hilda L. Solis. "Our shared goal is to create lasting change so that anyone who comes looking for work at Baldor can be sure that discrimination will never be a factor in determining who gets the job."

Under the terms of the conciliation agreement negotiated by OFCCP, Baldor will pay a total of $2 million in back wages and interest to the affected individuals and will make at least 50 job offers to members of the original class as positions become available. The company also has agreed to undertake extensive self-monitoring measures to ensure that all hiring practices fully comply with the law, including record-keeping requirements.

"Discrimination is preventable when employers have certain processes in place and see to it that they are followed," said OFCCP Director Patricia A. Shiu. "That's why it's so important for federal contractors to implement their affirmative action programs, keep accurate employment records and commit to ending barriers to fair employment. A proactive strategy is the best way to guarantee that all workers have an equal opportunity to succeed in the workplace. Plus, it's the law."

Baldor Electric, which is owned by Zurich, Switzerland-based ABB Ltd., manufactures industrial motors and generators. The company currently holds federal contracts worth more than $18 million with the General Services Administration and the U.S. departments of Veterans Affairs and Justice. From 1997 to 2010, Baldor received $79 million to produce batteries and generators for federal agencies including GSA, the Justice Department and the Army.

U.S. GOVERNMENT ANNOUNCES AIR EMISSIONS SETTLEMENT WITH WISCONSIN UTILITY


FROM:  U.S. DEPARTMENT OF JUSTICE
Friday, June 29, 2012
US Announces Clean Air Act Settlement with Wisconsin Utility – Dairyland Power Cooperative to Reduce Emissions by More Than 29,000 Tons Annually

WASHINGTON – The Department of Justice   and the U.S. Environmental Protection Agency (EPA) today announced a Clean Air Act settlement with Dairyland Power Cooperative (DPC) that will cover the utility’s three power plants in Alma and Genoa, Wis. DPC has agreed to invest approximately $150 million in pollution control technology that will protect public health and resolve violations of the Clean Air Act. The settlement will also require that DPC spend $5 million on environmental mitigation projects and pay a civil penalty of $950,000.

“This settlement will improve air quality in Wisconsin and downwind areas by significantly reducing releases of sulfur dioxide, nitrogen oxide and other harmful pollutants,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. “This agreement also demonstrates the Justice Department’s commitment to enforcing the New Source Review provisions of the Clean Air Act, which help ensure cleaner air for those communities located near large sources of air pollution.”
         
“EPA is committed to protecting communities by reducing air pollution from the largest sources of emissions,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “The pollution reductions and the significant investment in local environmental projects under this agreement will ensure that the people of Wisconsin and neighboring states have cleaner, healthier air.”  

Under the settlement, DPC must install pollution control technology on its three largest units and will be required to comply with stringent emission rates and annual tonnage limitations. The settlement also requires DPC to permanently retire three additional coal-fired units at the Alma plant, which have been out of operation since last year.   The permanent retirement of these units will ensure that they do not restart without first complying with the Clean Air Act. The actions taken by DPC to comply with this settlement will result in annual reductions of sulfur dioxide (SO2) emissions by 23,000 tons and nitrogen oxides (NOx) emissions by 6,000 tons from 2008 levels, in addition to significant reductions of particulate matter emissions.  This settlement covers all seven coal-fired boilers at DPC’s three power plants.

The settlement also requires DPC to spend $5 million on projects that will benefit the environment and human health in communities located near the DPC facilities.   DPC must pay $250,000 each to the U.S. Forest Service and the National Park Service, to be used on projects to address the damage done from DPC’s alleged excess emissions.   At least $2 million will be spent on a major solar photovoltaic development project. The remaining mitigation funding will be spent on one or more of the following projects; 1) installation of solar photovoltaic panels, 2) home weatherization projects, and 3) the replacement of DPC’s standard vehicle fleet with cleaner burning vehicles.   The Sierra Club is a party to the settlement, which will also resolve violations alleged by Sierra Club in related litigation.

Reducing air pollution from the largest sources of emissions, including coal-fired power plants, is one of EPA’s National Enforcement Initiatives for 2011-2013. SO2 and NOx, two key pollutants emitted from power plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. These pollutants are converted in the air to fine particles of particulate matter that can cause severe respiratory and cardiovascular impacts, and premature death. Reducing these harmful air pollutants will benefit the communities located near DPC facilities, particularly communities disproportionately impacted by environmental risks and vulnerable populations, including children. Because air pollution from power plants can travel significant distances downwind, this settlement will also reduce air pollution outside the immediate region.

This is the 22nd judicial settlement secured by the Justice Department and the EPA, and the 23rdsettlement overall, as part of a national enforcement initiative to control harmful emissions from power plants under the Clean Air Act’s New Source Review requirements. The total combined sulfur dioxide and nitrogen oxides emission reductions secured from these settlements will exceed nearly 2 million tons each year once all the required pollution controls have been installed and implemented.

The settlement was lodged in the U.S. District Court for the Western District of Wisconsin, and is subject to a 30-day public comment period and final court approval. The settlement can be viewed at www.justice.gov/enrd/Consent_Decrees.html

TREASURY DESIGNATED TWO EXCHANGE HOUSES WITH STORING OR MOVING MONEY FOR TALIBAN


Map Credit:  Wikimedia/CIA
FROM:  U.S. DEPARTMENT OF TREASURY 
Action Targets Terrorist Financing Linked to Hawalas
WASHINGTON – The U.S. Department of the Treasury today designated two exchange houses, the Haji Khairullah Haji Sattar Money Exchange (HKHS) and the Roshan Money Exchange (RMX), which principally operate in Afghanistan and Pakistan, pursuant to the U.S. government’s terrorism sanctions authority, Executive Order (E.O.) 13224, for storing or moving money for the Taliban. Treasury is also designating the co-owners of HKHS, Haji Abdul Sattar Barakzai and Haji Khairullah Barakzai, pursuant to E.O. 13224 for donating money and providing financial services to the Taliban.  Both HKHS and RMX operate as hawalas and have been used by the Taliban to facilitate money transfers in support of the Taliban’s narcotics trade and terrorist operations.  Today the United Nations also added Haji Abdul Sattar Barakzai, Haji Khairullah Barakzai, HKHS and RMX to its 1988 List of individuals, groups, undertakings and entities associated with the Taliban in constituting a threat to the peace, stability and security of Afghanistan.

“Today’s action, which coincides with action by the UN, is aimed at disabling two key financial hubs supporting the Taliban.  Whether financial support to the Taliban moves through banks or less formal mechanisms, like the hawalas we are designating in this action, we will continue to work alongside our partners to expose and disrupt this illicit financial activity,” said Under Secretary for Terrorism and Financial Intelligence David S. Cohen.

As a result of today’s action, all property in the United States or in the possession or control of U.S. persons in which HKHS, RMX, Haji Abdul Sattar Barakzai (Sattar), or Haji Khairullah Barakzai (Khairullah) have an interest is blocked, and U.S. persons are prohibited from engaging in transactions with them.

Haji Abdul Sattar Barakzai
Haji Abdul Sattar Barakzai is being designated today for owning, or controlling HKHS, and for providing financial, material, or technological support for, or financial, or other services to, or in support of, the Taliban.  Sattar is a co-owner and operator of HKHS.  Sattar and Khairullah have co-owned and jointly operated hawalas known as HKHS throughout Afghanistan, Pakistan, and Dubai and managed an HKHS branch in the Afghanistan-Pakistan border region.  As of late 2009, Sattar and Khairullah had an equal partnership in HKHS.  Sattar founded HKHS and customers chose to use HKHS in part because of Sattar’s and Khairullah’s well-known names.

Sattar has donated thousands of dollars to the Taliban to support Taliban activities in Afghanistan and has distributed funds to the Taliban using his hawala.  As of 2010, Sattar provided financial assistance to the Taliban.  As of late 2009, Sattar provided tens of thousands of dollars to aid the Taliban’s fight against Coalition Forces in Marjah, Nad’Ali District, Helmand Province, Afghanistan, and helped to transport a Taliban member to Marjah.  As of 2008, Sattar and Khairullah collected money from businessmen and distributed the funds to the Taliban using their hawala.

Haji Khairullah Barakzai
Haji Khairullah Barakzai is being designated today for owning or controlling HKHS, and for providing financial, material, or technological support for, or financial, or other services to, or in support of, the Taliban.  Khairullah is a co-owner and operator of HKHS.  As of late 2009, Khairullah and Sattar had an equal partnership in HKHS.  They jointly operated hawalas known as HKHS throughout Afghanistan, Pakistan, and Dubai and managed an HKHS branch in the Afghanistan-Pakistan border region.  As of early 2010, Khairullah was the head of the HKHS branch in Kabul.

As of 2010, Khairullah was a hawaladar, or hawala operator, for Taliban senior leadership and provided financial assistance to the Taliban.  Khairullah, along with his business partner Sattar, provided thousands of dollars to the Taliban to support Taliban activities in Afghanistan.  As of 2008, Khairullah and Sattar collected money from businessmen and distributed the funds to the Taliban using their hawala.

Haji Khairullah Haji Sattar Money Exchange (HKHS)
Haji Khairullah Haji Sattar Money Exchange (HKHS) is being designated today for providing financial, material, or technological support for, or financial or other services to, or in support of, the Taliban.  HKHS is co-owned by Haji Abdul Sattar Barakzai and Haji Khairullah Barakzai.  Sattar and Khairullah have jointly operated money exchanges throughout Afghanistan, Pakistan, Iran, and the United Arab Emirates (UAE).  Taliban leaders have used HKHS to disseminate money to Taliban shadow governors and commanders and to receive hawala transfers for the Taliban.

As of 2011, HKHS was a preferred method for Taliban leadership to transfer money to Taliban commanders in Afghanistan.  In late 2011, the HKHS branch in Lashkar Gah, Helmand Province, Afghanistan was used to send money to the Taliban shadow governor for Helmand Province.  In mid-2011, a Taliban commander used an HKHS branch in the Afghanistan-Pakistan border region to fund fighters and operations in Afghanistan. After the Taliban deposited a significant amount of cash monthly with this HKHS branch, Taliban commanders could access the funds from any HKHS branch.  Taliban personnel used HKHS in 2010 to transfer money to hawalas in Afghanistan, where operational commanders could access the funds.  As of late 2009, the manager of the HKHS branch in Lashkar Gah oversaw the movement of Taliban funds through HKHS.

Roshan Money Exchange
Roshan Money Exchange (RMX) is being designated today for providing financial, material, or technological support for, or financial, or other services to, or in support of, the Taliban.  RMX stores and transfers funds in support of Taliban military operations and the Taliban’s role in the Afghan narcotics trade.  As of 2011, RMX was one of the primary hawalas used by Taliban officials in Helmand Province.
In 2011, a senior Taliban member withdrew hundreds of thousands of dollars from an RMX branch in the Afghanistan-Pakistan border region to distribute to Taliban shadow provincial governors.  To fund the Taliban’s spring offensive in 2011, the Taliban shadow governor of Helmand Province sent hundreds of thousands of dollars to RMX.  Also in 2011, a Taliban member received tens of thousands of dollars from RMX to support military operations.  An RMX branch in the Afghanistan-Pakistan border region also held tens of thousands of dollars to be collected by a Taliban commander.  In 2010, on behalf of the Taliban shadow governor of Helmand Province, a Taliban member used RMX to send thousands of dollars to the Afghanistan-Pakistan border region.

The RMX branch in Lashkar Gah, Helmand Province, has been used by the Taliban to transfer funds for operations to Helmand Province.  In 2011, a Taliban sub-commander transferred tens of thousands of dollars to a Taliban commander through the RMX branch in Lashkar Gah.  The Taliban also sent funds to the RMX branch in Lashkar Gah for distribution to Taliban commanders in 2010.  Also in 2010, a Taliban member used RMX to send tens of thousands of dollars to Helmand Province and Herat Province, Afghanistan, on behalf of the Taliban shadow governor of Helmand Province.
In 2009, a senior Taliban representative collected hundreds of thousands of dollars from an RMX branch in the Afghanistan-Pakistan border region to finance Taliban military operations in Afghanistan.  In 2008, a Taliban leader used RMX to transfer tens of thousands of dollars to Afghanistan.

The Taliban also uses RMX to facilitate its role in the Afghan narcotics trade.  As of 2011, Taliban officials, including the shadow governor of Helmand Province, transferred hundreds of thousands of dollars from an RMX branch in the Afghanistan-Pakistan border region to hawalas in Afghanistan for the purchase of narcotics on behalf of Taliban officials.  Also in 2011, a Taliban official directed Taliban commanders in Helmand Province to transfer opium proceeds through RMX.  One Taliban district chief transferred thousands of dollars from Marjah, Helmand Province, Afghanistan to an RMX branch in the Afghanistan-Pakistan border region.

Friday, June 29, 2012

NAVAL RESEARCH LABORATORY DEVELOPING "SCIFI-LIKE" LIGHT SCANNER


FROM:  U.S. DEPARTMENT OF DEFENSE ARMED WITH SCIENCE


I SEE THE LIGHT SCANNER
Written on JUNE 29, 2012 AT 7:26 AM by JTOZER

The concept of new technology is something that always grabs my attention, but no more so than when real research suggests that my dramatic daydreams of science fiction technology might actuallybecome a reality.

So when I heard that the Naval Research Laboratory (NRL) was developing a real life scanning device, my first immediate thought was STAR TREK SCANNER!
And then I took a deep breath, reeled it in, and read more.  I mean, come on, that kind of technology is centuries away…right?

As it turns out, NRL’s scanning device isn’t that far removed from Star Trek’s fictitious future world or Doctor Who’s technoverse gadgetry.  Although, instead of being an impressively multipurpose-yet-unfortunately-fictitious sonic screwdriver, this real life device uses light to scan objects from far away.

The Naval Research Laboratory (NRL) has developed a Photothermal Infrared Imaging Spectroscopy (PT-IRIS) technology for stand-off detection of explosives, illicit drugs, chemical warfare agents and biochemical warfare agents. That’s right; technology that can scan for dangerous objects from a distance.  PT-IRIS has been demonstrated for standoff or proximity detection of explosives.

That, my friends, could be a huge help to our troops.
Being able to “scan” for dangerous items from a safe distance – especially when it comes to explosive materials – would be an unbelievable asset to the warfighter.  Service members would have the benefit of knowing what they’re up against long before they put themselves in the blast range.
And it’s all about seeing the light.  In this case literally.

This approach employs quantum cascade lasers (QCL) to illuminate a sample surface with one or more wavelengths which are selectively absorbed by analytes of interest. With eye-safe QCL power levels, this results in modest selective heating (1-2 oC) of particulate explosives within a few milliseconds, which can be readily monitored at video frame rates of commercial IR cameras.

Basically, the PT-IRIS absorbs the information and relays it back.  The idea of no longer wondering what’s on that suspicious van on the side of the road could literally mean life or death for service members.

Utilizing compact QCL light sources and an IR focal plane array to image the illuminated area, a portable, handheld system design can be realized. Don’t leave home without your explosive-detection device!  No, seriously, you don’t want to leave something like that just lying around.

As an eye safe system, PT-IRIS is ideal for probing surfaces of vehicles, places, people, packages, and boarding passes for explosives and other hazardous chemicals of interest.  This technology could be used everywhere, from police stations to airports, to suspicious parents who think their kids aren’t just “high on life” (okay, maybe not that one…).

That’s all well and good, but really I’m most interested in the idea that our men and women in uniform stand the chance of not being blown up as much. Science fiction hopes and dreams aside, if anything can make our service members safer and more effective, then I say hop to it.

This technology could give a whole new meaning to the phrase “Stand off, we got this”

DOD News Briefing with Secretary Panetta and Gen. Dempsey from the Pentagon

DOD News Briefing with Secretary Panetta and Gen. Dempsey from the Pentagon

SECRETARY OF DEFENSE PANETTA'S REMARKS ON PARTNERSHIPS


FROM:  AMERICAN FORCES PRESS SERVICE
Defense Secretary Leon E. Panetta delivers remarks as part of the Acheson lecture series at the United States Institute of Peace in Washington, D.C., June 28, 2012. DOD photo by Navy Petty Officer 1st Class Chad J. McNeeley  

Panetta: Partnerships Bolster National Security
By Amaani Lyle
WASHINGTON, June 29, 2012 - Collaboration, as much as military might, should play a key role in national security, Defense Secretary Leon E. Panetta said here last night.
In remarks as part of the United States Institute of Peace's Acheson lecture series, Panetta outlined a blueprint for building 21st-century partnerships and improving security cooperation across several areas.

"We must be bold enough to adopt a more collaborative approach to security, both within the United States government and among allies, partners, and multilateral organizations," he said, adding that the United States must place even greater strategic emphasis on building the security capabilities of others.

Panetta underscored the need to maintain comprehensive and integrated capabilities in key regions to confront critical security challenges.

"Unlike past defense drawdowns when the threats the country was facing appeared to diminish, we still confront many challenges," the secretary said.

Destabilizing behavior of nations such as Iran and North Korea, the rise of new powers across Asia and the ongoing need to deter aggression in the Middle East and North Africa, Panetta said, have made partnership a critical component of peaceful and cooperative international order.

"Our new strategy prioritizes the Asia-Pacific region and the Middle East – the areas with the most significant security challenges," he said. "We will retain ... our military presence, ... but we are also going to help more nations share the responsibilities and costs of providing security by investing in alliances and partnerships."

These partnerships will include engagement in exercises, training and innovative rotational deployments, the secretary added.

Panetta acknowledged that the United States must face these challenges while grappling with a deficit and debt problem that has led Congress to seek early half a trillion dollars in defense savings over the next decade. This, he added, requires reshaped priorities that will include a leaner, agile and quickly deployable force on the cutting edge of technology while continuing to develop key capabilities.

"We will ... continue to invest in the capabilities of the future such as cyber, unmanned systems, space, special operations forces, and the ability to quickly mobilize and maintain our industrial base," he said.

Panetta said his strategies built on many enduring philosophies put forth by Dean Acheson, for whom the lecture series is named. As secretary of state from 1949 to 1953, Acheson was a leading proponent for bolstering America's military might and was a principal architect of America's foreign policy.

"Acheson strongly believed that America should not seek to shoulder the burden and costs for global security alone," the secretary said. "Instead, he understood that a key part of a strong defense was to build the security capacity of allies and partners."

Panetta praised Acheson's forward-thinking in policy from Western Europe and NATO to South Korea, from the Truman Doctrine to the Nixon Doctrine, and the statesman's involvement with key allies and regional partners to build a sound U.S. national security strategy after World War II.

The Affordable Care Act Is Moving Forward

The Affordable Care Act Is Moving Forward

ESA Portal - Portugal - Marés de Titã apontam para um oceano escondido

ESA Portal - Portugal - Marés de Titã apontam para um oceano escondido

U.S. AND CANADA ISSUE BEYOND THE BORDER STATEMENT ON PRIVACY PRINCIPLES


FROM:  U.S. DEPARTMENT OF JUSTICE
Thursday, June 28, 2012
U.S. and Canada Announce the Release of the Beyond the Border: Statement of Privacy Principles

WASHINGTON—The United States and Canada today announced they are delivering on key commitments under the U.S.-Canada Beyond the Border Action Plan by releasing a joint Statement of Privacy Principles.  These principles reflect the commitment of the United States and Canada to protecting privacy, and underscore the importance of information sharing to the security of both nations.

“These privacy principles reflect the shared commitment of the United States and Canada to implement our Beyond the Border Action Plan,” said Attorney General Eric Holder.  “Timely and efficient information sharing between the United States and Canada is critical to the national security of both nations.  These principles reflect our two nations’ continued shared commitment to protecting our collective security without sacrificing the fundamental rights and civil liberties that both our countries value.”

“The release of these principles is an important milestone in the implementation of the Beyond the Border Action Plan,” said Secretary of Homeland Security Janet Napolitano.  “They represent both the United States’ and Canada’s commitment to sharing information, while simultaneously protecting the fundamental privacy principles upon which both our nations were built .”

The Statement of Privacy Principles concerning the provision, receipt and use of personal information exchanged between the U.S. and Canada will inform and guide all information sharing arrangements and initiatives under Beyond the Border Action Plan.  Implementing the privacy principles will promote the flow of accurate, relevant and necessary information to address shared threats to national security.

Developed collaboratively by privacy officials from the Department of Homeland Security, the Department of Justice, Public Safety Canada and Justice Canada, the privacy principles are based on commonly understood privacy protections and fair information practices; and are consistent with the laws of each country .

The United States and Canada will collaborate regularly, through the Beyond the Border Executive Steering Committee and other avenues, on the application of the Statement of Privacy Principles.

On Feb. 4, 2011, President Obama and Prime Minister Harper announced the U.S.-Canada joint declaration, Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness.  It articulates a shared vision where both our countries work together to address threats at the earliest point possible, while facilitating the legitimate movement of people, goods and services into our countries and across our shared border.

The Beyond the Border Action Plan consists of 32 separate initiatives.  It calls for enhancements to programs that help trusted businesses and travelers move efficiently across the border; introduces new measures to facilitate movement and trade across the border while reducing the administrative burden for business; and invests in improvements to our shared border infrastructure and technology.  By expediting lawful trade and commerce into and across our shared border, the United States and Canada seek to enhance our economic competitiveness, create jobs and support economic growth.

SEC. OF EDUCATION ARNE DUNCAL ON 40 YEARS OF PELL GRANTS



FROM:  U.S. DEPARTMENT OF EDUCATION
Celebrating Success: 40 Years of Pell Grants
Chances are you know someone who wouldn’t have gone to college without the help of a Pell Grant. Since 1972, more than 60 million Americans have received financial assistance to earn their degree.

As President Obama said in a message commemorating the 40th anniversary of the enactment of this program:

Forty years ago, our Nation codified a commitment to bringing higher education within reach for every American by creating the Basic Educational Opportunity Grant—later renamed the Federal Pell Grant after Senator Claiborne Pell, to honor his efforts in creating the program.  On this anniversary, we reflect on four decades of progress toward fulfilling that fundamental promise and rededicate ourselves to making college affordable for all.

Federal Pell Grants have helped millions of Americans achieve their fullest potential by not only opening the doors to college, but also providing students the financial support necessary to complete their studies and prosper in today’s economy.  That is why my Administration has prioritized Pell Grants as a source of funding they can count on each and every year.  We have provided resources to support a 50 percent increase in Pell Grant recipients, giving college access to millions of additional students across our country; aggressively raised the maximum Pell Grant award to keep pace with rising costs; and strengthened the Pell Grant Program by cutting banks out of Federal student lending and delivering financial aid directly to students.  By continuing to provide grants that extend educational opportunity to students, we make critical investments both in their personal success and in America’s success in the 21st century.

As we mark the 40th Anniversary of the Federal Pell Grant Program, we also celebrate the individuals and organizations who have worked to widen the circle of opportunity for countless Americans through higher education.  Today and tomorrow, let us recommit to empowering the next generation with the tools and resources they need to achieve their dreams.  I am confident that, through programs like Pell Grants, our Nation will reach our goal of once again leading the world in college completion by the year 2020.

Senator Claiborne Pell, the chief sponsor of the program, liked to say, ‘Any student with the talent, desire, and drive, should be able to pursue higher education.’ Because of his commitment and vision, millions of students from poor and working class backgrounds received the economic lifeline they need to earn a college degree. The Pell Grant program has literally transformed millions of lives.

In today’s global economy that’s more important than ever. High school graduation is no longer a path leading to a good paying job. College, or other postsecondary training, has never been more important to finding meaningful and substantial employment.

More students than ever are relying on Pell grants, and if we are to reach our goal of out-innovating, out-educating and out-building the rest of the world, we need to continue our investment in Pell.
Arne Duncan is the US Secretary of Education

NATIONAL GUARD HELP FLORIDA RESIDENTS AFTER FLOODING


FROM:  AMERICAN FORCES PRESS SERVICE
Air Force Maj. Gen. Emmett R. Titshaw Jr., Florida's adjutant general, watches as workers assess the stability of a sinkhole outside the Suwannee County Courthouse in Florida, June 28, 2012. The Florida National Guard is providing assistance to residents in several state counties affected by flooding caused by Tropical Storm Debby. Florida National Guard photo by Army Sgt. 1st Class Blair Heusdens  

Face of Defense: Guard Members Aid Flood-stricken Floridians
By Army Sgt. 1st Class Blair Heusdens
Florida National Guard
LIVE OAK, Fla., June 29, 2012 - The Florida National Guard is supporting relief efforts in several counties affected by widespread flooding after Tropical Storm Debby dumped large amounts of rain during its slow journey across the state.

Florida Gov. Rick Scott, Adjutant General Air Force Maj. Gen. Emmett R. Titshaw Jr. and several other senior state officials journeyed to Wakulla, Suwannee and Pasco counties to survey the flood damage and to talk to residents.

"We just left the shelter here that has the citizens of Live Oak who lost their homes, who essentially lost everything," Titshaw said. "Talking to some of the people, it was very gratifying to hear when they told me they were rescued by the Florida National Guard. It's the reason we do what we do."

The Florida National Guard participated in several rescues of residents from the flood waters in Columbia and Suwannee counties.

"The National Guard pulled up in a truck and I was like, 'Thank God,'" said Michaela Solomon, a resident of Live Oak who, along with her children, was rescued from her home by soldiers from the Florida National Guard. "It was such a relief to know we were going to somewhere safe. It was just a blessing that the National Guard came to where we were."

As of June 29, more than 70 Florida National Guard members have been called to duty in support of relief efforts, officials said. Due to rising flood waters, Guard members are providing high-water tactical vehicles to assist with rescues, evacuations and damage assessments in Suwannee and Columbia counties, officials said.

In addition to the high-water vehicles, officials said, the Florida National Guard is also assisting with communications in Suwannee County, providing an emergency response vehicle to provide internet and phone capabilities to the county's Emergency Operations Center.

For soldiers from the 868th Engineer Company, Guard officials said, the flooding hit close to home, affecting many local soldiers in the tight-knit Live Oak-based unit. Officials said approximately half of the unit resides in the area and several of the full-time unit support staff members were affected by the storm.

The Florida National Guard is continuing to provide support as requested by the State Emergency Response Team, officials said, noting that Florida's citizen-soldiers and airmen are trained and equipped for a wide range of life support, security and public safety missions, and can mobilize approximately 9,000 personnel if needed to protect lives and property during disasters.

HOUSTON WORKSHOP MARKS KEY STEP IN PLANNING FUTURE MARS MISSIONS


Photo:  The Famous Face On Mars.  Credit:  NASA.
FROM:  NASA
WASHINGTON -- A recent workshop conducted for NASA by the Lunar and 
Planetary Institute (LPI) in Houston, marked a key step in the 
agency's effort to forge a new Mars strategy in the coming decades. A 
report that summarizes the wide range of cutting-edge science, 
technology and mission concepts discussed is available online. 

Held in Houston June 12-14 and attended by scientists and engineers 
worldwide, the meeting was held to seek ideas, concepts and 
capabilities to address critical challenge areas in exploring the Red 
Planet. Discussions provided information for reformulating NASA's 
Mars Exploration Program (MEP) to be responsive to high-priority 
science goals and the challenge of sending humans to Mars orbit in 
the 2030s. 

Participants identified a number of possible approaches to missions 
that can be flown to Mars in the coming decade that would make 
progress toward returning Martian samples -- a top priority of the 
Planetary Science Decadal Survey -- and make significant advances in 
scientific understanding of the planet, developing key technologies 
and advancing knowledge necessary for human exploration on and around 
Mars. 

NASA's Mars Program Planning Group (MPPG), tasked with developing 
options for a reformulated MEP, will consider the workshop inputs in 
addition to budgetary, programmatic, scientific and technical 
constraints. 

"Scientists and engineers came together to present their most creative 
ideas for exploring Mars," said John Grunsfeld, an astronaut, 
astrophysicist and associate administrator for NASA's Science Mission 
Directorate at NASA Headquarters in Washington. "Great ideas come 
from challenging the best and brightest and igniting their passion 
and determination to succeed." 

The MPPG reports to Grunsfeld, who chairs the agency-wide Mars 
reformulation effort along with William Gerstenmaier, NASA's 
associate administrator for Human Exploration and Operations Mission 
Directorate, Chief Scientist Waleed Abdalati and Chief Technologist 
Mason Peck. The official draft MPPG report is expected to be 
delivered to NASA for review at the end of the summer. 

Concepts put forth tapped into significant benefits that could be 
gained from technology investments by NASA's Science Mission 
Directorate, Human Exploration and Operations Mission Directorate, 
and Office of the Chief Technologist. The participants also stressed 
the importance of establishing international collaboration early in 
the planning process and sustaining it throughout future missions. 

"Future Mars exploration missions will require new concepts and 
technologies," said Michael Gazarik, director of NASA's Space 
Technology Program. "There were many innovative and transformational 
concepts presented at the workshop. With continued investments in 
cutting-edge technology, these will lead to increased capability, 
reduced mission risk and lower mission costs." 

Workshop attendance included almost 200 scientists, engineers and 
graduate students from academia, NASA centers, federal laboratories, 
industry, and international partner organizations. More than 1,600 
people participated online as the workshop proceedings were streamed 
live on the Internet. 

"The LPI workshop provided a broad set of ideas for Mars exploration, 
including synergies between science, human exploration and technology 
development," Gerstenmaier said. "The number of workshop participants 
demonstrates the broad interest in Mars exploration." 

The workshop provided a forum for broad community input on near-term 
mission concepts. Ideas for longer-term activities will be used to 
inform program architecture planning beyond the early 2020s. Workshop 
results represent individual perspectives from members of the 
scientific and technical community. 

"The scientific and technical community has given us quite a range of 
ideas to consider in reformulating the Mars Exploration Program," 
said Doug McCuistion, director of NASA's Mars Exploration Program at 
the agency's headquarters. "Many concepts presented are highly 
relevant to the challenges the MPPG must address." 

NASA will land its most advanced rover, Curiosity, on the surface of 
Mars in August. This mobile science laboratory will assess whether 
the past or present environment on Mars could support life. In 2013, 
NASA will launch the Mars Atmosphere and Volatile Evolution orbiter, 
the first mission devoted to understanding the Martian upper 
atmosphere. 

PRESIDENT OBAMA DECLARES MAJOR DISASTER FOR COLORADO


FROM:  U.S. FEDERAL EMERGENCY MANAGEMENT AGENCY
Release Date: June 29, 2012
President Declares Major Disaster for Colorado
WASHINGTON, D.C. --  The U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) today announced that federal disaster assistance has been made available to Colorado to supplement state and local recovery efforts in the areas affected by the High Park and Waldo Canyon Fires beginning on June 9, 2012, and continuing.

Federal funding is available for Crisis Counseling and Disaster Unemployment Assistance for affected individuals in El Paso and Larimer counties impacted by the High Park and Waldo Canyon Fires.

Federal funding also is available to state, and eligible local governments and certain private nonprofit organizations on a cost-sharing basis for emergency protective measures, including direct federal assistance, for El Paso and Larimer counties impacted by the High Park and Waldo Canyon Fires.

Michael F. Byrne has been named as the Federal Coordinating Officer for federal recovery operations in the affected area.  Byrne said that damage surveys are continuing in other areas, and more counties and additional forms of assistance may be designated after the assessments are fully completed.

INNOVATIVE ENTREPRENEUR ALLEGEDLY CREATED PONZI-LIKE MORTGAGE INVESTMENT BUSINESS


FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., June 28, 2012 — The Securities and Exchange Commission today announced that it has obtained an emergency court order to halt an alleged Ponzi-like scheme operated by Small Business Capital Corp. and its principal Mark Feathers, who raised $42 million by selling securities issued by Investors Prime Fund LLC and SBC Portfolio Fund LLC - two mortgage investment funds they controlled.

The SEC alleges that more than 400 investors were attracted to the funds by promises that profits from mortgage investments would yield annual returns of 7.5 percent or more. In reality, Feathers operated a Ponzi-like scheme by paying returns to investors that came partly from fund profits and partly from other investors.

“Feathers raised millions from investors by promising high returns,” said John McCoy, Associate Regional Director of the SEC’s Los Angeles Office. “The returns turned out to be too good to be true and were funded in part with new investors’ money.”

The SEC alleges that from 2009 to early 2012, Feathers improperly transferred more than $6 million from the funds to Small Business Capital to pay its expenses, including substantial payments to Feathers. According to the SEC, the defendants had the funds account for the transfers in a way that disguised the depletion of fund assets, and did not tell investors that Small Business Capital’s ability to repay was uncertain and that it was only able to make the interest payments owed to the funds by borrowing more from them.
In addition, the SEC alleges that investors were not told that in February and March 2012, the defendants caused one fund to sell mortgages to the other fund at an inflated price, thus generating a “profit” for the selling fund so it could pay Small Business Capital management fees of more than $575,000. The SEC also charged Feathers and Small Business Capital for Small Business Capital’s effecting transactions in the funds’ securities without being registered as a broker-dealer with the SEC.

The Honorable Edward J. Davila for the U.S. District Court for the Northern District of California granted the SEC’s request for a temporary restraining order and asset freeze against Feathers, Small Business Capital, and the funds, and appointed Thomas A. Seaman as a temporary receiver over Small Business Capital and the funds. Judge Davila has scheduled a court hearing for July 10, 2012, on the SEC's motion for a preliminary injunction.

Susan Hannan and Roger Boudreau conducted the investigation and John Bulgozdy will lead the litigation. They work in the SEC's Los Angeles Regional Office.


UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT WEEK ENDING JUNE 23, 2012



FROM:  U.S. DEPARTMENT OF LABOR
SEASONALLY ADJUSTED DATA
In the week ending June 23, the advance figure for seasonally adjusted initial claims was 386,000, a decrease of 6,000 from the previous week's revised figure of 392,000. The 4-week moving average was 386,750, a decrease of 750 from the previous week's revised average of 387,500.

The advance seasonally adjusted insured unemployment rate was 2.6 percent for the week ending June 16, unchanged from the prior week's unrevised rate.
The advance number for seasonally adjusted insured unemployment during the week ending June 16 was 3,296,000, a decrease of 15,000 from the preceding week's revised level of 3,311,000. The 4-week moving average was 3,306,000, an increase of 9,250 from the preceding week's revised average of 3,296,750.

UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 368,418 in the week ending June 23, an increase of 3,870 from the previous week. There were 406,633 initial claims in the comparable week in 2011.

The advance unadjusted insured unemployment rate was 2.4 percent during the week ending June 16, unchanged from the prior week's unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,107,684, an increase of 5,712 from the preceding week. A year earlier, the rate was 2.8 percent and the volume was 3,511,416.

The total number of people claiming benefits in all programs for the week ending June 9 was 5,890,091, an increase of 71,724 from the previous week.

Extended benefits were available in the District of Columbia, Idaho, Nevada, New Jersey, New York, Rhode Island, and West Virginia during the week ending June 9.

Initial claims for UI benefits by former Federal civilian employees totaled 1,345 in the week ending June 16, a decrease of 187 from the prior week. There were 2,464 initial claims by newly discharged veterans, a decrease of 335 from the preceding week.

There were 16,095 former Federal civilian employees claiming UI benefits for the week ending June 9, a decrease of 303 from the previous week. Newly discharged veterans claiming benefits totaled 38,266, an increase of 131 from the prior week.

States reported 2,645,517 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending June 9, an increase of 111,768 from the prior week. There were 3,300,706 claimants in the comparable week in 2011. EUC weekly claims include first, second, third, and fourth tier activity.

The highest insured unemployment rates in the week ending June 9 were in Alaska (4.2), Puerto Rico (3.8), Pennsylvania (3.6), California (3.4), New Jersey (3.3), Connecticut (3.2), Illinois (3.1), Oregon (3.1), Nevada (2.9), Rhode Island (2.9), and the Virgin Islands (2.9).

The largest increases in initial claims for the week ending June 16 were in Pennsylvania (+4,656), New Jersey (+3,907), Maryland ( +2,624), Florida (+2,528), and Puerto Rico (+1,533), while the largest decreases were in California (-8,016), New York (-3,018), Georgia (-2,160), Illinois (-1,996), and Missouri (-1,339).

"BEYOND THE HORIZONS 2012" BRINGS HEALTHCARE TO REMOTE VILLAGE


FROM:  AMERICAN FORCES PRESS SERVICE
Army Capt. Gloria Graham, a 352nd Combat Support Hospital, teaches a Guatemalan girl how to properly brush her teeth during a five-day medical readiness training exercise in Pocola, Guatemala, as part of Beyond the Horizon 2012, June 27, 2010. DOD photo by Donna Miles

Beyond the Horizons' Clinic Fosters Health, Goodwill
By Donna Miles
POCOLA, Guatemala, June 28, 2012 - Thousands of local residents in this remote mountain village are getting what for many is one of their first experiences seeing a doctor, nurse or dentist during a five-day medical readiness training exercise being conducted here during Beyond the Horizons 2012.

U.S. service members, working hand in hand with Guatemalan doctors and health and agricultural officials and several Canadian and Colombian medical officers, are sponsoring the clinic as part of U.S. Southern Command's largest annual humanitarian civic assistance mission. This week's exercise is the third in Guatemala since Beyond the Horizons kicked off in April.

The crowds began assembling yesterday hours before the clinic moved into its third day, forming a line that extended miles beyond the tiny school that had been temporarily converted into a medical clinic. Young and old, all clamored to receive one of the 700 coveted tickets that served as the price of admission to preventive medical classes and sessions with military medical professionals specializing in internal medicine, women's health, pediatrics, dentistry or optometry.

"We try to increase it each day, to give as much chance for as many people to get seen as possible," said Army Capt. Sherry Kwon, an Army reservist from the 352nd Combat Support Hospital serving as officer in charge of the clinic. "When you have people willing to come and wait hours and hours for a bag of vitamins, it's so humbling that you want to do everything you can to help as many as possible."

The first stop for all patients was a preventive medicine class, where Army Capt. Gloria Graham, a 352nd CSH nurse, reviewed along with a Colombian military doctor the basics about washing hands, boiling water to sanitize it, keeping food, utensils and toilet facilities covered to keep insects away, and practicing oral hygiene.

These lessons are critical in a region where periodontal disease and intestinal parasites are the leading killers, explained Army Sgt. 1st Class John Williams, the 35th Engineer Brigade's operations noncommissioned officer for the clinic.

Graham periodically strolled to the back of the room to chat in her native Spanish with children seated around a table with sheets torn from a coloring book and crayons in hand. Holding up a poster of a smiling girl, she gave each a chance to demonstrate how to use the toothbrushes she had given them, drawing shy giggles as she gestured the techniques herself.

Across the courtyard, Army Col. Theresa Mercados-Sconzo, a nurse administrator and 352nd CSH battalion commander, and Army Maj. (Dr.) Mike Crownover, an emergency room physician, consulted with a steady flow of patients suffering from vitamin deficiencies, abdominal issues, worms and other ailments.

Meanwhile, dozens of people waited outside the busiest clinic, where a team of dentists from the 133rd Medical Company in Colorado and dental technicians from the 185th Dental Company in California performed extractions and minor dental surgeries.

Studying the mouth of an elderly woman, Army Maj. (Dr.) Ricky Harrell, a professor of orthodontics at the University of Colorado, prepared to extract the tooth that had caused the woman so much pain for so long.
In an adjoining room, Army Maj. (Dr.) Jennifer Fiatreau, an active-duty optometrist from Tripler Army Medical Center in Hawaii, evaluated eye tests. In the adjoining room, Army Capt. Brian Kuruc from the 256th CSH kept the pharmacy humming to keep up with the demand for medications.

As they treated one patient after another, the service members said they were overwhelmed by the need for medical care and the appreciation patients extended for care they received.

"What we are seeing here is like nothing we see at home," said Army Maj. Wayne Musgrove, a registered nurse. "Many of these people have had no or minimal medical care, so they really appreciate what we provide them. You can see how happy they are that we are here."

"They are simply ecstatic to be getting this care," echoed Mercados-Sconzo. "They couldn't be more thankful."

While providing a vital need, medical readiness training exercises serve as a learning experience for everyone involved, she said.

"They're getting valuable training, similar to what they would get during a deployment," she explained, as the exercises involve preparing for the mission and setting up operations in austere conditions. "But it's also a learning experience across cultures. That's one of the biggest takeaways: developing understanding and respect for other cultures."

For Army Spc. Riyaz Jahn, a 352nd CSH medic, knowing the impact he and his fellow service members are able to make on people's lives makes the mission one of the most satisfying he's ever experienced.

"This is absolutely awesome. I love this," he said. "It's helping out the locals who need help and can't afford it, and you have the gratification of knowing what this means to the people. You can see it in the kids' smiles."

"These missions are very important, and all of us are enthusiastic about coming because we feel like we are making a difference," agreed Graham. "There's no question that people appreciate what we are doing."

Harrell, who joined the military at age 52 and has since deployed to Iraq and Afghanistan, said being able to provide a desperately needed service gives him a new perspective on life. "Being a part of this, I know that I've helped a few hundred people who wouldn't otherwise have gotten help," he said.

Kuruc, who deployed for similar missions in El Salvador in 2004 and Peru in 2007, said he shot up his hand to volunteer to participate in this one. "It's very humbling to know we are here on a mission that is providing so much for so many people," he said. "It may be a small band-aid to a big problem, but it's very rewarding, and that's why I came back."

As they take pride in helping others, participants in the medical readiness training exercise said they recognize that they also are conveying an important message about the United States and the U.S. military.

Entertaining the local children as their parents awaited their medical care, Army Master Sgt. Gary Adamek of the Missouri National Guard's force protection element blew up latex gloves into balloons and drew funny faces on them. He also staged a contest, giving the children plastic trash bags and challenging each to bring back the biggest load of trash strewn across the nearby hillsides to win the loose change Adamek and his fellow soldiers had thrown into a kitty.

"We realize that in everything we do here, we are ambassadors for the United States," he said. "That's everything we do -- whether it's helping get rid of trash, or something as simple as blowing up a balloon."

"I feel good knowing I am representing the United States," said Army Spc. Scott Doney, a member of the 304th Engineers who volunteered to support the medical clinic because most of the engineering projects for Beyond the Horizons are now complete. "When I leave here, I want to be able to say that I came here and helped make a difference."

Army Capt. Kwon said that difference will go a long way in U.S. Southern Command's efforts to forge a closer, long-term partnership between the United States and Guatemala. "We're forming a relationship between our two countries, and showing that we are friendly forces," she said. "We are here to help, working together, united."

TWO ALLEGED REAL ESTATE FORECLOSURE BID RIGGERS INDICTED



FROM:  U.S. DEPARTMENT OF JUSTICE
Thursday, June 28, 2012
Two Alabama Real Estate Investors and Their Company Indicted for Conspiracies to Rig Bids and Commit Mail Fraud for the Purchase of Real Estate at Public Foreclosure Auctions

WASHINGTON – A federal grand jury in Mobile, Ala., returned an indictment today against two real estate investors and their company, charging them with participating in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions held in southern Alabama, the Department of Justice announced today.

The department said the father and son real estate investors, Robert M. Brannon of Laurel, Miss., and Jason R. Brannon of Mobile, respectively, and their Mobile-based company, J & R Properties LLC, conspired with others not to bid against one another at public real estate foreclosure auctions in southern Alabama. The indictment, returned in the U.S. District Court for the Southern District of Alabama, charges that after a designated bidder bought a property at a public auction, which typically takes place at the county courthouse, the conspirators would generally hold a secret, second auction, at which each participant would bid the amount above the public auction price he or she was willing to pay. The highest bidder at the secret, second auction won the property.

The Brannons and J & R Properties were also charged with conspiring to use the U.S. mail to carry out a scheme to acquire title to rigged foreclosure properties sold at public auctions at artificially suppressed prices, to make and receive payoffs to co-conspirators, and to cause financial institutions, homeowners and others with a legal interest in rigged foreclosure properties to receive less than the competitive price for the properties. Jason Brannon, Robert Brannon and J & R Properties are charged with participating in the bid-rigging and mail fraud schemes from as early as October 2004 until at least August 2007.

“Today’s indictment underscores the commitment of the Antitrust Division to prosecute those who illegally profit on the real estate market at the expense of distressed homeowners,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s Criminal Enforcement Program. “The division will pursue vigorously those who engage in collusive schemes to eliminate competition in the marketplace.”  

FBI Acting Special Agent in Charge Patrick Kiernan reaffirmed his commitment to pursuing these complex economic investigations stating, “This investigation has sent a strong message to the community at large, and the real estate community specifically, that abuses within the real estate industry will not be tolerated. Fraud related to home mortgage investments can have financial implications both locally and nationally, and the integrity of the system must be vigilantly maintained.”
         
Each violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals, and a $100 million fine for companies. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than the statutory maximum fine. Each count of conspiracy to commit mail fraud carries a maximum penalty of 20 years in prison and a fine of $250,000 for individuals, and a fine of $500,000 for companies. The fine may be increased to twice the gross gain the conspirators derived from the crime or twice the gross loss caused to the victims of the crime by the conspirators.
     
The investigation into fraud and bid rigging at certain real estate foreclosure auctions in southern Alabama is being conducted by the Antitrust Division’s Atlanta Field Office and the FBI’s Mobile Office, with the assistance of the U.S. Attorney’s Office for the Southern District of Alabama. To date, five individuals—Harold H. Buchman, Allen K. French, Bobby Threlkeld Jr., Steven J. Cox and  Lawrence B. Stacy—and one company—M & B Builders LLC— have pleaded guilty in the U.S. District Court for the Southern District of Alabama in connection with the investigation. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s Atlanta Field Office at 404-331-7100 or visit www.justice.gov/atr/contact/newcase.htm.

Today’s charges are part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.

RECENT U.S. NAVY PHOTOS


FROM:  U.S. NAVY
Sixteen coalition partner ships sail in formation while participating in the War of 1812 fleet exercise. The exercise is a week-long multi-national exercise involving 19 ships from the United States, Canada, the United Kingdom, Germany, Norway, Denmark, Brazil, and Portugal, and is designed to increase interoperability with allied nations, improve tactical prowess and certification of participating units. U.S. Navy photo by Mass Communication Specialist Petty Officer 2nd Class Gretchen M. Albrecht (Released) 120627-N-NR998-347


The Nimitz-class aircraft carrier USS Dwight D. Eisenhower (CVN 69) and the guided-missile destroyer USS Farragut (DDG 99) operate in the Atlantic Ocean. The ships are on a scheduled deployment supporting maritime security operations and theater security cooperation efforts in the U.S. 5th and 6th Fleet areas of responsibility. U.S. Navy photo by Mass Communication Specialist 2nd Class William Jamieson (Released) 120626-N-OV802-104

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