FROM: U.S. DEPARTMENT OF STATE
Republic of Korea Independence Day
Remarks
Hillary Rodham Clinton
Secretary of State
Washington, DC
August 13, 2012
On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the people of the Republic of Korea as you celebrate the anniversary of your independence this August 15.
The United States and the Republic of Korea share a long history of friendship and cooperation based on common values and interests. From combating regional and global threats, to strengthening our economies, to enhancing people-to-people ties between our two nations, we are working together toward a better future for both our countries and the world.
As you celebrate this important day with family, friends, and loved ones, know that the United States stands with you as an ally and friend. To Korean people all over the world: I wish you the very best on this special day and in the year to come.
A PUBLICATION OF RANDOM U.S.GOVERNMENT PRESS RELEASES AND ARTICLES
Wednesday, August 15, 2012
RECENT U.S. NAVY PHOTOS: DIVING, BIG BRIDGE AND, HUNGER TASK FORCE
FROM: U.S. NAVY
120810-N-IL826-202 MILWAUKEE (Aug. 10, 2012) Navy Diver 2nd Class Jonathan Pounders, assigned to Mobile Diving and Salvage Unit (MDSU) 2 interacts with children at the Discovery World Museum during the Navy's commemoration of the Bicentennial of the War of 1812 in Milwaukee. The celebration coincides with Milwaukee Navy Week, one of 15 signature events planned across America in 2012. The weeklong event commemorates the Bicentennial of the War of 1812, hosting service members from the U.S. Navy, Marine Corps, Coast Guard and Royal Canadian Navy. (U.S. Navy Photo by Mass Communication Specialist 1st Class Kenneth Robinson/Released)
120813-N-LE393-049 NEWPORT, R.I. (August 13, 2012) The guided-missile cruiser USS San Jacinto (CG 56) passes underneath the Claiborne Pell Bridge before a visit to Newport, R.I. San Jacinto is scheduled to provide shipboard tours and training for the Surface Warfare Officers School. (U.S. Navy photo by Mass Communication Specialist 2nd Class Eric Dietrich/Released)
120810-N-IL826-032 MILWAUKEE (Aug. 10, 2012) Crew members assigned to the Cyclone-class Coastal patrol ship USS Hurricane (PC 3) volunteer and pack food for the Hunger Task Force during the Navy'Äôs commemoration of the Bicentennial of the War of 1812 in Milwaukee. The celebration coincides with Milwaukee Navy Week, one of 15 signature events planned across America in 2012. The weeklong event commemorates the Bicentennial of the War of 1812, hosting service members from the U.S. Navy, Marine Corps, Coast Guard and Royal Canadian Navy. (U.S. Navy Photo by Mass Communication Specialist 1st Class Kenneth Robinson/Released)
Tuesday, August 14, 2012
TREASURY LIFTS SANCTIONS AGAINST DEFECTED SYRIAN PRIME MINISTER
FROM: U.S. DEPARTMENT OF TREASURY
WASHINGTON – The U.S. Department of the Treasury today is lifting sanctions against former Prime Minister of Syria Riyad Hijab who recently severed his ties with the Assad regime. This action is being taken because Hijab is no longer a senior official of the Government of Syria. Hijab’s name will be removed from Treasury’s Specially Designated Nationals (SDN) and Blocked Persons List, and he is no longer subject to an asset freeze.
Since the uprising against the Assad regime began last year, the United States has used a number of different authorities to target and sanction those involved in human rights abuse in Syria, senior Syrian government officials, and the Syrian government itself in an effort to hasten the removal of the Assad regime from power and end the government’s campaign of violence against the Syrian people.
"Recent civilian and military defections from the Assad regime are further indications that the government is crumbling and losing its grip on power," said Under Secretary for Terrorism and Financial Intelligence David S. Cohen. "The United States encourages other officials within the Syrian government, in both the political and military ranks, to take similarly courageous steps to reject the Assad regime and stand with the Syrian people."
On July 18, 2012, Treasury designated 29 senior officials of the Syrian government, including Prime Minister Riyad Hijab, pursuant to Executive Order 13573 of May 18, 2011 "Blocking Property of Senior Officials of the Government of Syria." Three weeks later Hijab chose to defect from the Syrian government and denounce its campaign of violence.
One of the goals of identifying and levying sanctions on specific individuals is to encourage them to reconsider their involvement with the current Syrian government. Today’s action illustrates the flexibility and responsiveness of the U.S. sanctions regime, allowing a prompt response to events on the ground. It is not too late for others who continue to provide support to the Assad regime to sever their ties and to be relieved of the burden of sanctions.
Newly appointed Prime Minister Wael Nader Al-Halqi was designated by the Treasury Department in July 2012, in his previous position as the Minister of Health. The sanctions against Al-Halqi remain in effect.
WASHINGTON – The U.S. Department of the Treasury today is lifting sanctions against former Prime Minister of Syria Riyad Hijab who recently severed his ties with the Assad regime. This action is being taken because Hijab is no longer a senior official of the Government of Syria. Hijab’s name will be removed from Treasury’s Specially Designated Nationals (SDN) and Blocked Persons List, and he is no longer subject to an asset freeze.
Since the uprising against the Assad regime began last year, the United States has used a number of different authorities to target and sanction those involved in human rights abuse in Syria, senior Syrian government officials, and the Syrian government itself in an effort to hasten the removal of the Assad regime from power and end the government’s campaign of violence against the Syrian people.
"Recent civilian and military defections from the Assad regime are further indications that the government is crumbling and losing its grip on power," said Under Secretary for Terrorism and Financial Intelligence David S. Cohen. "The United States encourages other officials within the Syrian government, in both the political and military ranks, to take similarly courageous steps to reject the Assad regime and stand with the Syrian people."
On July 18, 2012, Treasury designated 29 senior officials of the Syrian government, including Prime Minister Riyad Hijab, pursuant to Executive Order 13573 of May 18, 2011 "Blocking Property of Senior Officials of the Government of Syria." Three weeks later Hijab chose to defect from the Syrian government and denounce its campaign of violence.
One of the goals of identifying and levying sanctions on specific individuals is to encourage them to reconsider their involvement with the current Syrian government. Today’s action illustrates the flexibility and responsiveness of the U.S. sanctions regime, allowing a prompt response to events on the ground. It is not too late for others who continue to provide support to the Assad regime to sever their ties and to be relieved of the burden of sanctions.
Newly appointed Prime Minister Wael Nader Al-Halqi was designated by the Treasury Department in July 2012, in his previous position as the Minister of Health. The sanctions against Al-Halqi remain in effect.
ISAF NEWS FROM AFGHANISTAN AUGUST 14, 2012
Photo: Troops On C-17
Combined Force Arrests Taliban Weapons Dealer
From an International Security Assistance Force Joint Command News Release
KABUL, Afghanistan, Aug. 14, 2012 - An Afghan and coalition security force arrested a Taliban weapons dealer and detained two suspected insurgents in the Panjwai district of Afghanistan's Kandahar province today, military officials reported.
The weapons dealer provided Taliban fighters with weapons, ammunition and improvised explosive device material for use in attacks against Afghan and coalition forces. At the time of his arrest, officials said, he was trying to arrange weapons training for insurgents in the province.
In other news today:
-- In the Now Zad district of Helmand province, a combined force found and destroyed 16 IEDs and more than 4,100 pounds of wet opium.
-- Afghan and coalition security force officials confirmed that a Haqqani network leader responsible for numerous attacks against Afghan and coalition forces was one of those detained during an Aug. 9 operation in the Shwak district of Paktia province.
In operations yesterday:
-- In the Chimtal district of Balkh province, a combined force arrested a Taliban weapons supplier who provided machine guns, rocket-propelled grenades and IEDs to insurgents for attacks against Afghan and coalition forces in and around the district. The weapons supplier also placed IEDs along local roads.
-- During an operation in the Watahpur district of Kunar province, a combined force conducted a precision airstrike against a group of armed insurgents. The force confirmed the strike had killed multiple insurgents and had not injured civilians or damaged civilian property.
-- In the Sabari district of Khost province, a combined force arrested a Haqqani weapons supplier. The supplier smuggled assault rifles into the district and tried to acquire grenades for a planned attack against Afghan and coalition forces. He is also responsible for coordinating multiple attacks against security forces. The combined force also detained several suspected insurgents and seized firearms.
In Aug. 12 operations:
--In the Pul-e Alam district of Logar province, a combined force arrested a Haqqani network leader who directed and conducted numerous attacks against Afghan and coalition forces in the province. Before his arrest, the Haqqani leader tried to acquire IED components for additional attacks. The security force also detained three suspected insurgents.
-- An Afghan security force, supported by coalition troops, arrested senior Taliban leader Mawawi Akbar in the Surobi district of Kabul province. Before his arrest, Akbar was one of the most senior Taliban insurgents operating in Surobi, and he was responsible for facilitating the movement of suicide bombers throughout the province.
Globemaster III En Route To Afghanistan. Credit: U.S. Marine Corps Photo
FROM: U.S. DEFENSE DEPARTMENTCombined Force Arrests Taliban Weapons Dealer
From an International Security Assistance Force Joint Command News Release
KABUL, Afghanistan, Aug. 14, 2012 - An Afghan and coalition security force arrested a Taliban weapons dealer and detained two suspected insurgents in the Panjwai district of Afghanistan's Kandahar province today, military officials reported.
The weapons dealer provided Taliban fighters with weapons, ammunition and improvised explosive device material for use in attacks against Afghan and coalition forces. At the time of his arrest, officials said, he was trying to arrange weapons training for insurgents in the province.
In other news today:
-- In the Now Zad district of Helmand province, a combined force found and destroyed 16 IEDs and more than 4,100 pounds of wet opium.
-- Afghan and coalition security force officials confirmed that a Haqqani network leader responsible for numerous attacks against Afghan and coalition forces was one of those detained during an Aug. 9 operation in the Shwak district of Paktia province.
In operations yesterday:
-- In the Chimtal district of Balkh province, a combined force arrested a Taliban weapons supplier who provided machine guns, rocket-propelled grenades and IEDs to insurgents for attacks against Afghan and coalition forces in and around the district. The weapons supplier also placed IEDs along local roads.
-- During an operation in the Watahpur district of Kunar province, a combined force conducted a precision airstrike against a group of armed insurgents. The force confirmed the strike had killed multiple insurgents and had not injured civilians or damaged civilian property.
-- In the Sabari district of Khost province, a combined force arrested a Haqqani weapons supplier. The supplier smuggled assault rifles into the district and tried to acquire grenades for a planned attack against Afghan and coalition forces. He is also responsible for coordinating multiple attacks against security forces. The combined force also detained several suspected insurgents and seized firearms.
In Aug. 12 operations:
--In the Pul-e Alam district of Logar province, a combined force arrested a Haqqani network leader who directed and conducted numerous attacks against Afghan and coalition forces in the province. Before his arrest, the Haqqani leader tried to acquire IED components for additional attacks. The security force also detained three suspected insurgents.
-- An Afghan security force, supported by coalition troops, arrested senior Taliban leader Mawawi Akbar in the Surobi district of Kabul province. Before his arrest, Akbar was one of the most senior Taliban insurgents operating in Surobi, and he was responsible for facilitating the movement of suicide bombers throughout the province.
RECORD AMOUNT OF RADIATION CONTAMINATED ITEMS SENT TO WIPP
Photo Credit: Los Alamos National Laboratory
FROM: LOS ALAMOS NATIONAL LABORATORY
LANL Sets Waste Shipping Record for Fourth Consecutive Year
Lab has sent 172 shipments so far this year; aiming for 200 by September 30
LOS ALAMOS, NEW MEXICO, August 6, 2012—For the fourth consecutive year, Los Alamos National Laboratory’s TRU Waste Program has shipped a record number of transuranic (TRU) waste shipments to the Waste Isolation Pilot Plant (WIPP) near Carlsbad, N.M, for permanent disposal.
The Laboratory’s 172nd shipment of TRU waste this year left Los Alamos bound for WIPP on August 2. With two months left in the fiscal year, the Laboratory has already beat last year’s fiscal year record of 171 shipments.
"Our goal this fiscal year is 184 shipments and we are on track to surpass that by a substantial margin," said Lee Bishop, TRU waste manager at the Department of Energy’s Los Alamos Site Office. "We expect to send in the neighborhood of 200 shipments to WIPP this year."
The Laboratory has transported more than 1,000 shipments to WIPP since that facility opened in 1999.
Additional emphasis was placed on Area G shipments after last year’s Las Conchas Fire. Although the fire did not pose an immediate threat and protective measures were in place, the State of New Mexico, the Department of Energy’s National Nuclear Security Administration and the Laboratory made removing the waste stored above ground at Area G one of their top environmental priorities.
In an agreement between the New Mexico Environment Department and DOE, the Laboratory will remove 3,706 cubic meters of waste from Area G by June 30, 2014.
"We are pleased with the progress we’ve made in our first year of accelerated shipping and we plan to more than double the volume of waste we ship next year," said Dan Cox, deputy associate director of environmental programs at the Laboratory.
The Laboratory plans to ship more than 800 cubic meters of waste to WIPP this year; 1,800 cubic meters next year; and the remaining 1,106 cubic meters by June 30, 2014.
"We are committed to removing the waste stored above ground at Area G as quickly and safely as possible," said Pete Maggiore, assistant manager for environmental operations at the National Nuclear Security Administration’s Los Alamos Site Office. "We broke our all-time shipping record this year and we plan to set the bar even higher next year."
What is transuranic, or TRU, waste?
TRU waste consists of clothing, tools, rags, debris, soil and other items contaminated with radioactive material, mostly plutonium. Transuranic elements such as plutonium have an atomic number greater than uranium, so they are labeled transuranic, for "beyond uranium" on the periodic table of elements.
About 90 percent of the current TRU waste inventory is a result of decades of nuclear research and weapons production at the Laboratory and is often referred to as "legacy" waste.
FROM: LOS ALAMOS NATIONAL LABORATORY
LANL Sets Waste Shipping Record for Fourth Consecutive Year
Lab has sent 172 shipments so far this year; aiming for 200 by September 30
LOS ALAMOS, NEW MEXICO, August 6, 2012—For the fourth consecutive year, Los Alamos National Laboratory’s TRU Waste Program has shipped a record number of transuranic (TRU) waste shipments to the Waste Isolation Pilot Plant (WIPP) near Carlsbad, N.M, for permanent disposal.
The Laboratory’s 172nd shipment of TRU waste this year left Los Alamos bound for WIPP on August 2. With two months left in the fiscal year, the Laboratory has already beat last year’s fiscal year record of 171 shipments.
"Our goal this fiscal year is 184 shipments and we are on track to surpass that by a substantial margin," said Lee Bishop, TRU waste manager at the Department of Energy’s Los Alamos Site Office. "We expect to send in the neighborhood of 200 shipments to WIPP this year."
The Laboratory has transported more than 1,000 shipments to WIPP since that facility opened in 1999.
Additional emphasis was placed on Area G shipments after last year’s Las Conchas Fire. Although the fire did not pose an immediate threat and protective measures were in place, the State of New Mexico, the Department of Energy’s National Nuclear Security Administration and the Laboratory made removing the waste stored above ground at Area G one of their top environmental priorities.
In an agreement between the New Mexico Environment Department and DOE, the Laboratory will remove 3,706 cubic meters of waste from Area G by June 30, 2014.
"We are pleased with the progress we’ve made in our first year of accelerated shipping and we plan to more than double the volume of waste we ship next year," said Dan Cox, deputy associate director of environmental programs at the Laboratory.
The Laboratory plans to ship more than 800 cubic meters of waste to WIPP this year; 1,800 cubic meters next year; and the remaining 1,106 cubic meters by June 30, 2014.
"We are committed to removing the waste stored above ground at Area G as quickly and safely as possible," said Pete Maggiore, assistant manager for environmental operations at the National Nuclear Security Administration’s Los Alamos Site Office. "We broke our all-time shipping record this year and we plan to set the bar even higher next year."
What is transuranic, or TRU, waste?
TRU waste consists of clothing, tools, rags, debris, soil and other items contaminated with radioactive material, mostly plutonium. Transuranic elements such as plutonium have an atomic number greater than uranium, so they are labeled transuranic, for "beyond uranium" on the periodic table of elements.
About 90 percent of the current TRU waste inventory is a result of decades of nuclear research and weapons production at the Laboratory and is often referred to as "legacy" waste.
FOREIGN CURRENCY TRADING PONZI SCHEME AND OFFSHORE ACCOUNT TAX EVASION
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, August 13, 2012
Residents of California and Utah Sentenced for Tax Fraud
David L. Johnson and Michael L. Putnam were sentenced today following their convictions for tax crimes related to their involvement in the Genesis Fund, the Justice Department and Internal Revenue Service (IRS) announced. Both Johnson and Putnam had previously pleaded guilty before U.S. District Judge Dale S. Fischer in the Central District of California. According to the original indictment filed in this case, the Genesis Fund was a private investment fund that was marketed as investing in foreign currency trading, but that operated as a Ponzi scheme.
Johnson, 73, of Loma Linda, Calif., was sentenced to 30 months in prison for filing two false tax returns in which he failed to disclose his bank account in Costa Rica to the IRS. According to the plea agreement, Johnson used this bank account to conceal Genesis Fund distributions from the IRS. Judge Fischer also ordered Johnson to pay restitution of $2.3 million: approximately $1.9 million to investors in the Genesis Fund and $400,000 to the IRS.
Putnam, 68, of St. George, Utah, formerly of Huntington Beach, Calif., was sentenced to 12 months and a day in prison for conspiracy and tax fraud and ordered to pay over $13 million in restitution: approximately $10 million to investors in the Genesis Fund and $3 million to the IRS. According to court documents, Putnam had cooperated with the government in the prosecution of other defendants charged for their involvement in the Genesis Fund.
According to court documents, Johnson and Putnam received significant distributions that they hid in foreign bank accounts and did not report to the IRS. Johnson received over $2.4 million while Putnam received over $1.5 million. Johnson and Putnam are the 10th and 11th defendants to be sentenced for crimes related to the promotion of the Genesis fund.
Monday, August 13, 2012
Residents of California and Utah Sentenced for Tax Fraud
David L. Johnson and Michael L. Putnam were sentenced today following their convictions for tax crimes related to their involvement in the Genesis Fund, the Justice Department and Internal Revenue Service (IRS) announced. Both Johnson and Putnam had previously pleaded guilty before U.S. District Judge Dale S. Fischer in the Central District of California. According to the original indictment filed in this case, the Genesis Fund was a private investment fund that was marketed as investing in foreign currency trading, but that operated as a Ponzi scheme.
Johnson, 73, of Loma Linda, Calif., was sentenced to 30 months in prison for filing two false tax returns in which he failed to disclose his bank account in Costa Rica to the IRS. According to the plea agreement, Johnson used this bank account to conceal Genesis Fund distributions from the IRS. Judge Fischer also ordered Johnson to pay restitution of $2.3 million: approximately $1.9 million to investors in the Genesis Fund and $400,000 to the IRS.
Putnam, 68, of St. George, Utah, formerly of Huntington Beach, Calif., was sentenced to 12 months and a day in prison for conspiracy and tax fraud and ordered to pay over $13 million in restitution: approximately $10 million to investors in the Genesis Fund and $3 million to the IRS. According to court documents, Putnam had cooperated with the government in the prosecution of other defendants charged for their involvement in the Genesis Fund.
According to court documents, Johnson and Putnam received significant distributions that they hid in foreign bank accounts and did not report to the IRS. Johnson received over $2.4 million while Putnam received over $1.5 million. Johnson and Putnam are the 10th and 11th defendants to be sentenced for crimes related to the promotion of the Genesis fund.
U.S. ED. DEPT. INVITES DISTRICTS TO APPLY FOR $400 MILLION "RACE TO THE TOP" MONEY
Photo: Sec. Of Education Arne Duncan. From: Dept. Of Education.
FROM: U.S. DEPARTMENT OF EDUCATION
Education Department Invites Districts to Apply for $400 Million Race to the Top Competition to Support Classroom-Level Reform Efforts
The U.S. Department of Education announced today that it has finalized the application for the 2012 Race to the Top-District competition, which will provide nearly $400 million to support school districts in implementing local reforms that will personalize learning, close achievement gaps and take full advantage of 21st century tools that prepare each student for college and their careers. The program sets a high bar to fund those districts that have a track record of success, clear vision for reform, and innovative plans to transform the learning environment and accelerate student achievement.
"Race to the Top helped bring about groundbreaking education reforms in states across the country. Building off that success, we're now going to help support reform at the local level with the new district competition," said U.S. Secretary of Education Arne Duncan. "We want to help schools become engines of innovation through personalized learning so that every child in America can receive the world-class public education they deserve. The Race to the Top-District competition will help us meet that goal."
Race to the Top, launched in 2009, has inspired dramatic education reform nationwide, leading 45 states and the District of Columbia to pursue higher college- and career-ready standards, data-driven decision making, greater support for teachers and leaders, and turnaround interventions in low performing schools. The next phase proposes to build on those principles at the classroom level to support bold, locally directed improvements in learning and teaching that will directly improve student achievement and educator effectiveness.
The Race to the Top-District competition invites applicants to demonstrate how they can personalize education for all students and is aimed squarely at classrooms and the all-important relationship between teachers and students. The competition will encourage transformative change within schools, providing school leaders and teachers with key tools and support in order to best meet their students’ needs.
The Department received about 475 public comments on the draft notice it shared in May. The 2012 final program criteria invites applications from districts or groups of districts proposing to serve at least 2,000 students with 40 percent or more qualifying for free or reduced-price lunch. Districts will choose to apply for funding to support learning strategies that personalize education in all or a set of schools, within specific grade levels, or select subjects. In addition, a districts must demonstrate a commitment to Race to the Top’s four core reform areas and have signoff on their plan from the district superintendent or CEO, local school board president, and local teacher union or association president (where applicable) in order to be eligible.
Applicants from all districts are invited to apply. The Department plans to support high-quality proposals from applicants across a variety of districts, including rural and non-rural as well as those already participating in a Race to the Top state grant and districts not participating. These 4-year awards will range from $5 million to $40 million, depending on the population of students served through the plan. The Department is expecting to make 15-25 awards.
Grantees will be selected based on their vision and capacity for reform as well as a strong plan that provides educators with resources to accelerate student achievement and prepare students for college and their careers. Plans will focus on transforming the learning environment so that it meets all students’ learning abilities, making equity and access to high-quality education a priority. Teachers will receive real-time feedback that helps them adapt to their students’ needs, allowing them to create opportunities for students to pursue areas of personal academic interest – while ensuring that each student is ready for college and their career.
The program also offers competitive preference to applicants that form partnerships with public and private organizations to sustain their work and offer services that help meet students’ academic, social, and emotional needs, as well as enhance their ability to succeed.
SEC CHARGES BIG BANK FOR SELLING MORTGAGE-BACKED SECURITIES WHILE UNINFORMED
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., Aug. 14, 2012 – The Securities and Exchange Commission today charged Wells Fargo’s brokerage firm and a former vice president for selling investments tied to mortgage-backed securities without fully understanding their complexity or disclosing the risks to investors.
The SEC found that Wells Fargo improperly sold asset-backed commercial paper (ABCP) structured with high-risk mortgage-backed securities and collateralized debt obligations (CDOs) to municipalities, non-profit institutions, and other customers. Wells Fargo did not obtain sufficient information about these investment vehicles and relied almost exclusively upon their credit ratings. The firm’s representatives failed to understand the true nature, risks, and volatility behind these products before recommending them to investors with generally conservative investment objectives.
Wells Fargo agreed to pay more than $6.5 million to settle the SEC’s charges. The money will be placed into a Fair Fund for the benefit of harmed investors.
"Broker-dealers must do their homework before recommending complex investments to their customers," said Elaine C. Greenberg, Chief of the SEC Enforcement Division’s Municipal Securities and Public Pensions Unit. "Municipalities and other non-profit institutions were harmed because Wells Fargo abdicated its fundamental responsibility as a broker to have a reasonable basis for its investment recommendations to customers."
According to the SEC’s order instituting settled administrative proceedings against Minneapolis-based Wells Fargo Brokerage Services (now Wells Fargo Securities), the improper sales occurred from January 2007 to August 2007. Registered representatives in Wells Fargo’s Institutional Brokerage and Sales Division made recommendations to institutional customers to purchase ABCP issued by limited purpose companies called structured investment vehicles (SIVs) and SIV-Lites backed largely by mortgage-backed securities and CDOs. Wells Fargo and its registered representatives did not review the private placement memoranda (PPMs) for the investments and the extensive risk disclosures in those documents. Instead, they relied almost exclusively on the credit ratings of these products despite various warnings against such over-reliance in the PPM and elsewhere. Wells Fargo also failed to establish any procedures to ensure that its personnel adequately reviewed and understood the nature and risks of these commercial paper programs.
The SEC’s order finds that Wells Fargo and its registered representatives failed to have a reasonable basis for their recommendations. They also failed to disclose to their customers the risks associated with the complex SIV-issued ABCP investments, including the nature and volatility of the underlying assets. A number of customers purchased SIV-issued ABCP as a result of Wells Fargo’s recommendations, and many of them ultimately suffered substantial losses after three SIV-issued ABCP programs defaulted in 2007.
The SEC charged former vice president Shawn McMurtry for his improper sale of SIV issued ABCP. McMurtry exercised discretionary authority in violation of Wells Fargo’s internal policy and selected the particular issuer of ABCP for one longstanding municipal customer. McMurtry did not obtain sufficient information about the investment and relied almost entirely upon its credit rating.
Wells Fargo and McMurtry were, at a minimum, negligent in recommending the relevant ABCP programs without obtaining adequate information about them to form a reasonable basis for recommending these products and without disclosing the material risks of these products. As a result, they violated Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933.
The SEC’s order finds that Wells Fargo has taken a number of remedial measures since 2007 to ensure that its registered representatives have adequate information about the nature and risk of the securities they recommend to customers, and that relevant information about those securities will be fully disclosed to customers.
Wells Fargo and McMurtry consented to the SEC’s order without admitting or denying the findings. Wells Fargo agreed to pay a $6.5 million penalty, $65,000 in disgorgement, and $16,571.96 in prejudgment interest. McMurtry agreed to be suspended from the securities industry for six months and pay a $25,000 penalty.
The SEC’s investigation was conducted by Peter K.M. Chan, Rebecca Goldman, and Sally Hewitt of the Enforcement Division’s Municipal Securities and Public Pensions Unit and the Chicago Regional Office with assistance by Steven C. Seeger of the Chicago office’s trial unit, and Daniel R. Gregus, George Jacobus, and Christopher L. Caprio of the Chicago office’s broker-dealer examinations group.
The SEC has filed more than 50 enforcement actions related to the financial crisis, charging 33 entities and 79 individuals for monetary sanctions totaling more than $2.1 billion. Summaries of the cases are available at: http://www.sec.gov/spotlight/enf-actions-fc.shtml
Washington, D.C., Aug. 14, 2012 – The Securities and Exchange Commission today charged Wells Fargo’s brokerage firm and a former vice president for selling investments tied to mortgage-backed securities without fully understanding their complexity or disclosing the risks to investors.
The SEC found that Wells Fargo improperly sold asset-backed commercial paper (ABCP) structured with high-risk mortgage-backed securities and collateralized debt obligations (CDOs) to municipalities, non-profit institutions, and other customers. Wells Fargo did not obtain sufficient information about these investment vehicles and relied almost exclusively upon their credit ratings. The firm’s representatives failed to understand the true nature, risks, and volatility behind these products before recommending them to investors with generally conservative investment objectives.
Wells Fargo agreed to pay more than $6.5 million to settle the SEC’s charges. The money will be placed into a Fair Fund for the benefit of harmed investors.
"Broker-dealers must do their homework before recommending complex investments to their customers," said Elaine C. Greenberg, Chief of the SEC Enforcement Division’s Municipal Securities and Public Pensions Unit. "Municipalities and other non-profit institutions were harmed because Wells Fargo abdicated its fundamental responsibility as a broker to have a reasonable basis for its investment recommendations to customers."
According to the SEC’s order instituting settled administrative proceedings against Minneapolis-based Wells Fargo Brokerage Services (now Wells Fargo Securities), the improper sales occurred from January 2007 to August 2007. Registered representatives in Wells Fargo’s Institutional Brokerage and Sales Division made recommendations to institutional customers to purchase ABCP issued by limited purpose companies called structured investment vehicles (SIVs) and SIV-Lites backed largely by mortgage-backed securities and CDOs. Wells Fargo and its registered representatives did not review the private placement memoranda (PPMs) for the investments and the extensive risk disclosures in those documents. Instead, they relied almost exclusively on the credit ratings of these products despite various warnings against such over-reliance in the PPM and elsewhere. Wells Fargo also failed to establish any procedures to ensure that its personnel adequately reviewed and understood the nature and risks of these commercial paper programs.
The SEC’s order finds that Wells Fargo and its registered representatives failed to have a reasonable basis for their recommendations. They also failed to disclose to their customers the risks associated with the complex SIV-issued ABCP investments, including the nature and volatility of the underlying assets. A number of customers purchased SIV-issued ABCP as a result of Wells Fargo’s recommendations, and many of them ultimately suffered substantial losses after three SIV-issued ABCP programs defaulted in 2007.
The SEC charged former vice president Shawn McMurtry for his improper sale of SIV issued ABCP. McMurtry exercised discretionary authority in violation of Wells Fargo’s internal policy and selected the particular issuer of ABCP for one longstanding municipal customer. McMurtry did not obtain sufficient information about the investment and relied almost entirely upon its credit rating.
Wells Fargo and McMurtry were, at a minimum, negligent in recommending the relevant ABCP programs without obtaining adequate information about them to form a reasonable basis for recommending these products and without disclosing the material risks of these products. As a result, they violated Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933.
The SEC’s order finds that Wells Fargo has taken a number of remedial measures since 2007 to ensure that its registered representatives have adequate information about the nature and risk of the securities they recommend to customers, and that relevant information about those securities will be fully disclosed to customers.
Wells Fargo and McMurtry consented to the SEC’s order without admitting or denying the findings. Wells Fargo agreed to pay a $6.5 million penalty, $65,000 in disgorgement, and $16,571.96 in prejudgment interest. McMurtry agreed to be suspended from the securities industry for six months and pay a $25,000 penalty.
The SEC’s investigation was conducted by Peter K.M. Chan, Rebecca Goldman, and Sally Hewitt of the Enforcement Division’s Municipal Securities and Public Pensions Unit and the Chicago Regional Office with assistance by Steven C. Seeger of the Chicago office’s trial unit, and Daniel R. Gregus, George Jacobus, and Christopher L. Caprio of the Chicago office’s broker-dealer examinations group.
The SEC has filed more than 50 enforcement actions related to the financial crisis, charging 33 entities and 79 individuals for monetary sanctions totaling more than $2.1 billion. Summaries of the cases are available at: http://www.sec.gov/spotlight/enf-actions-fc.shtml
PATIENT BROKER GOES TO PRISON FOR ROLE IN $200 MILLION MEDICARE FRAUD
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, August 13, 2012
Miami-Area Patient Broker Sentenced to 18 Months in Prison for Role in $200 Million Medicare Fraud Scheme
WASHINGTON – A Miami-area patient broker was sentenced today to 18 months in prison for recruiting Medicare beneficiaries as part of a $200 million Medicare fraud scheme, the Department of Justice, FBI and Department of Health and Human Services announced.
Jean-Luc Veraguas, 51, of Plantation, Fla., was sentenced by U.S. District Judge Frederico A. Moreno in the Southern District of Florida. In addition to his prison term, Veraguas was ordered to pay $1.8 million in restitution, jointly and severally with other co-conspirators.
On May 30, 2012, Veraguas pleaded guilty to one count of conspiracy to commit health care fraud. Veraguas admitted to serving as a patient broker for American Therapeutic Corporation (ATC) and other health care agencies. ATC operated purported partial hospitalization programs (PHPs) in seven different locations throughout South Florida and Orlando. A PHP is a form of intensive treatment for severe mental illness.
According to court documents, Veraguas recruited patients to attend ATC’s PHP program, among others, in exchange for illegal kickbacks. Veraguas admitted that based on his recruiting efforts, he caused $3.8 million in fraudulent bills to Medicare. Veraguas admitted he knew many of the individuals he recruited did not need the treatment they purported to have received.
According to court filings, ATC’s owners and operators paid millions of dollars in kickbacks to owners and operators of assisted living facilities and halfway houses and to patient brokers in exchange for delivering ineligible patients to ATC. According to court filings, co-conspirators fabricated documents in patient files to hide the fact that the patients did not, in the first instance, qualify for treatment and did not ultimately receive the treatment for which Medicare was billed.
ATC, its management company, Medlink Professional Management Group Inc., and various owners, managers, doctors, therapists, patient brokers and marketers of ATC, were charged with various health care fraud, kickback, money laundering and other offenses in two indictments unsealed on Feb. 15, 2011. ATC, Medlink and more than 20 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial.
The sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Jeffrey C. Mazanec, Acting Special Agent-in-Charge of the FBI’s Miami Field Office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
The criminal case is being prosecuted by Trial Attorneys Steven Kim, Robert Zink and Alan Medina of the Criminal Division’s Fraud Section. A related civil action is being handled by Vanessa I. Reed and Carolyn B. Tapie of the Civil Division. The case 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 Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,330 defendants who have collectively billed the Medicare program for more than $4 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Monday, August 13, 2012
Miami-Area Patient Broker Sentenced to 18 Months in Prison for Role in $200 Million Medicare Fraud Scheme
WASHINGTON – A Miami-area patient broker was sentenced today to 18 months in prison for recruiting Medicare beneficiaries as part of a $200 million Medicare fraud scheme, the Department of Justice, FBI and Department of Health and Human Services announced.
Jean-Luc Veraguas, 51, of Plantation, Fla., was sentenced by U.S. District Judge Frederico A. Moreno in the Southern District of Florida. In addition to his prison term, Veraguas was ordered to pay $1.8 million in restitution, jointly and severally with other co-conspirators.
On May 30, 2012, Veraguas pleaded guilty to one count of conspiracy to commit health care fraud. Veraguas admitted to serving as a patient broker for American Therapeutic Corporation (ATC) and other health care agencies. ATC operated purported partial hospitalization programs (PHPs) in seven different locations throughout South Florida and Orlando. A PHP is a form of intensive treatment for severe mental illness.
According to court documents, Veraguas recruited patients to attend ATC’s PHP program, among others, in exchange for illegal kickbacks. Veraguas admitted that based on his recruiting efforts, he caused $3.8 million in fraudulent bills to Medicare. Veraguas admitted he knew many of the individuals he recruited did not need the treatment they purported to have received.
According to court filings, ATC’s owners and operators paid millions of dollars in kickbacks to owners and operators of assisted living facilities and halfway houses and to patient brokers in exchange for delivering ineligible patients to ATC. According to court filings, co-conspirators fabricated documents in patient files to hide the fact that the patients did not, in the first instance, qualify for treatment and did not ultimately receive the treatment for which Medicare was billed.
ATC, its management company, Medlink Professional Management Group Inc., and various owners, managers, doctors, therapists, patient brokers and marketers of ATC, were charged with various health care fraud, kickback, money laundering and other offenses in two indictments unsealed on Feb. 15, 2011. ATC, Medlink and more than 20 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial.
The sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Jeffrey C. Mazanec, Acting Special Agent-in-Charge of the FBI’s Miami Field Office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
The criminal case is being prosecuted by Trial Attorneys Steven Kim, Robert Zink and Alan Medina of the Criminal Division’s Fraud Section. A related civil action is being handled by Vanessa I. Reed and Carolyn B. Tapie of the Civil Division. The case 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 Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,330 defendants who have collectively billed the Medicare program for more than $4 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
PACIFIC COMMAND'S FOCUS ON NORTH KOREA
U.S. Marines with 3rd Battalion, 12th Marine Regiment, 3rd Marine Division, 3rd Marine Expeditionary Force, launch artillery shells with South Korean counterparts during a bilateral artillery coordination exercise at Camp Rodriguez, South Korea, April 20, 2011. U.S. forces stand side by side with South Korean counterparts to maintain stability on the Korean peninsula. U.S. Marine Corps photo by Cpl. Kentavist Brackin
FROM: U.S. DEPARTMENT OF DEFENSE
North Korea Remains Key Focus for Pacific Command
By Donna Miles
American Forces Press Service
CAMP SMITH, Hawaii, Aug. 13, 2012 - Nearly six decades after an armistice agreement established a cease-fire that ended the Korean War, maintaining the fragile peace there and ensuring South Korean and U.S. troops are prepared to respond to aggression remains a top priority for U.S. Pacific Command.
North Korea looms as the most pressing trouble spot in Pacom's vast area of responsibility that spans half the globe, Navy Adm. Samuel J. Locklear III, the Pacom commander, told American Forces Press Service.
Locklear expressed concern about tenuous, unstable conditions stemming from North Korea's new, relatively untested leader, Kim Jong Un, and North Korea's pursuit of nuclear weapons in defiance of U.N. Security Council resolutions.
"If there is anything that keeps me awake at night, it's that particular situation," the admiral said. "We have to ensure that we maintain as much of a stable environment on the Korean peninsula as we can."
Toward that end, Locklear relies heavily on the leadership of Army Gen. James D. Thurman, commander of Combined Forces Korea and U.S. Forces Korea, to ensure that South Korean and U.S. forces remain strong.
Traveling to South Korea to meet with Thurman and South Korean leaders shortly after assuming the top U.S. military post in the Asia-Pacific region in March, Locklear emphasized the importance of the U.S.-South Korean alliance in deterring aggression and maintaining security and stability.
Locklear offered assurance of the "unwaverable" U.S. commitment to the alliance.
Although tensions on the peninsula have ebbed and flowed since the signing of the armistice, North Korean provocations, coupled with uncertainty as the new leader took power, have remained relatively high in recent years, noted William McKinney, director of Locklear's North Korea strategic focus group. The group of military and civilian experts, one of three "mini think tanks" within the Pacom staff, advises Locklear and his senior staff on the North Korean threat and plans for a U.S.-South Korean military response, if required.
McKinney, a retired foreign area officer who spent 15 years of his military service in South Korea, plus three years as the civilian U.S. representative for the Korea Energy Development Organization, expressed disappointment about the difficult stalemate that continues to characterize the peninsula.
"We've been [in] sort of [a] treading-water situation for quite some time with North Korea," he told American Forces Press Service at the Pacom headquarters here.
There's a common saying within McKinney's strategic focus group. "We had to build a fence across the peninsula to fence out North Korea," he said. "But regrettably, that has also fenced us out from North Korea. It was never intended to be a lasting division."
Ultimately, McKinney said, the United States would love a unified Korean peninsula -- but only, he emphasized, if it had "a democratically elected, free market-based government for all of the Korean people."
In a perfect world, that unified Korea would be an ally to the United States and a source of regional stability, he added.
While acknowledging that it's still too soon to know the impact of Kim's leadership, McKinney admitted that some of the initial signs are worrisome.
A missile test conducted just months after he came to power defied North Korea's agreement to a moratorium on missile testing in exchange for 240,000 tons of U.S. food aid. North Korea also has yet to return to the Six-Party Talks with the United States, China, Russia, Japan and South Korea aimed at getting North Korea to abandon its nuclear weapons program.
A nuclear-free Korean peninsula is critical, McKinney explained, because a nuclear-armed North Korea would upset the balance of power in the region. Making it particularly troubling, he said, is concern that a weak, even rogue North Korean state is ill-prepared to handle the challenges and responsibilities of possessing nuclear weapons.
The balance-of-power issue has dogged the Korean peninsula for the past 100 years as Japan, China and Russia all fought to control it, McKinney noted. And during that timeframe, the peninsula has been a primary battleground for four of the five wars in the Pacific: the Sino-Japanese War of 1894; the Russia-Japanese War of 1905; World War II; and the Korean War. At the signing of the Korean conflict's armistice agreement on July 27, 1953, the United States had lost 37,000 military lives and suffered 92,000 wounded. And what happens on the Korean peninsula today remains critically important to the United States, McKinney said.
That's not only because of the U.S. alliance with South Korea, he said, but also because the destabilizing balance-of-power situation hasn't gone away and continues to affect the entire region.
McKinney said he's been impressed by the growing professionalism of South Korea's military, which has been operating side by side with 28,500 U.S. troops there to maintain the peace.
"Over the years, there is no question that the [South Korean] forces have strengthened themselves and become a more professional military -- a military that has modern weaponry, knows how to use it and that has operated for the last 25 years or more in a combined command with the United States," he said. "They have become, in all senses, a much more modern, professional military than they were 60 years ago."
As South Korea prepares to assume wartime operational control of its forces from the United States in 2015 and the United States focuses on rebalancing its military to the Asia-Pacific region, McKinney said, he doesn't expect many force-posture changes on the Korean peninsula.
"From the standpoint of balance, the United States has really never left the Korean peninsula," he said. "We have never lessened the importance of our forces on the Korean peninsula [or] our commitment ... to the alliance."
But Locklear made clear while visiting South Korea that North Korea's government has important decisions to make.
"Should the North Korean leadership choose to start abiding by its international obligations, to cease provocations, this would be a preferred path," he told reporters in the South Korean capital of Seoul.
"But if further provocations is the path that they would continue to pursue," he continued, "then the challenge for us is to ensure that our alliance remains strong, that we work closely together to monitor and share information, and that we have the proper procedures in place ... [so] the security of the alliance is ensured."
FROM: U.S. DEPARTMENT OF DEFENSE
North Korea Remains Key Focus for Pacific Command
By Donna Miles
American Forces Press Service
CAMP SMITH, Hawaii, Aug. 13, 2012 - Nearly six decades after an armistice agreement established a cease-fire that ended the Korean War, maintaining the fragile peace there and ensuring South Korean and U.S. troops are prepared to respond to aggression remains a top priority for U.S. Pacific Command.
North Korea looms as the most pressing trouble spot in Pacom's vast area of responsibility that spans half the globe, Navy Adm. Samuel J. Locklear III, the Pacom commander, told American Forces Press Service.
Locklear expressed concern about tenuous, unstable conditions stemming from North Korea's new, relatively untested leader, Kim Jong Un, and North Korea's pursuit of nuclear weapons in defiance of U.N. Security Council resolutions.
"If there is anything that keeps me awake at night, it's that particular situation," the admiral said. "We have to ensure that we maintain as much of a stable environment on the Korean peninsula as we can."
Toward that end, Locklear relies heavily on the leadership of Army Gen. James D. Thurman, commander of Combined Forces Korea and U.S. Forces Korea, to ensure that South Korean and U.S. forces remain strong.
Traveling to South Korea to meet with Thurman and South Korean leaders shortly after assuming the top U.S. military post in the Asia-Pacific region in March, Locklear emphasized the importance of the U.S.-South Korean alliance in deterring aggression and maintaining security and stability.
Locklear offered assurance of the "unwaverable" U.S. commitment to the alliance.
Although tensions on the peninsula have ebbed and flowed since the signing of the armistice, North Korean provocations, coupled with uncertainty as the new leader took power, have remained relatively high in recent years, noted William McKinney, director of Locklear's North Korea strategic focus group. The group of military and civilian experts, one of three "mini think tanks" within the Pacom staff, advises Locklear and his senior staff on the North Korean threat and plans for a U.S.-South Korean military response, if required.
McKinney, a retired foreign area officer who spent 15 years of his military service in South Korea, plus three years as the civilian U.S. representative for the Korea Energy Development Organization, expressed disappointment about the difficult stalemate that continues to characterize the peninsula.
"We've been [in] sort of [a] treading-water situation for quite some time with North Korea," he told American Forces Press Service at the Pacom headquarters here.
There's a common saying within McKinney's strategic focus group. "We had to build a fence across the peninsula to fence out North Korea," he said. "But regrettably, that has also fenced us out from North Korea. It was never intended to be a lasting division."
Ultimately, McKinney said, the United States would love a unified Korean peninsula -- but only, he emphasized, if it had "a democratically elected, free market-based government for all of the Korean people."
In a perfect world, that unified Korea would be an ally to the United States and a source of regional stability, he added.
While acknowledging that it's still too soon to know the impact of Kim's leadership, McKinney admitted that some of the initial signs are worrisome.
A missile test conducted just months after he came to power defied North Korea's agreement to a moratorium on missile testing in exchange for 240,000 tons of U.S. food aid. North Korea also has yet to return to the Six-Party Talks with the United States, China, Russia, Japan and South Korea aimed at getting North Korea to abandon its nuclear weapons program.
A nuclear-free Korean peninsula is critical, McKinney explained, because a nuclear-armed North Korea would upset the balance of power in the region. Making it particularly troubling, he said, is concern that a weak, even rogue North Korean state is ill-prepared to handle the challenges and responsibilities of possessing nuclear weapons.
The balance-of-power issue has dogged the Korean peninsula for the past 100 years as Japan, China and Russia all fought to control it, McKinney noted. And during that timeframe, the peninsula has been a primary battleground for four of the five wars in the Pacific: the Sino-Japanese War of 1894; the Russia-Japanese War of 1905; World War II; and the Korean War. At the signing of the Korean conflict's armistice agreement on July 27, 1953, the United States had lost 37,000 military lives and suffered 92,000 wounded. And what happens on the Korean peninsula today remains critically important to the United States, McKinney said.
That's not only because of the U.S. alliance with South Korea, he said, but also because the destabilizing balance-of-power situation hasn't gone away and continues to affect the entire region.
McKinney said he's been impressed by the growing professionalism of South Korea's military, which has been operating side by side with 28,500 U.S. troops there to maintain the peace.
"Over the years, there is no question that the [South Korean] forces have strengthened themselves and become a more professional military -- a military that has modern weaponry, knows how to use it and that has operated for the last 25 years or more in a combined command with the United States," he said. "They have become, in all senses, a much more modern, professional military than they were 60 years ago."
As South Korea prepares to assume wartime operational control of its forces from the United States in 2015 and the United States focuses on rebalancing its military to the Asia-Pacific region, McKinney said, he doesn't expect many force-posture changes on the Korean peninsula.
"From the standpoint of balance, the United States has really never left the Korean peninsula," he said. "We have never lessened the importance of our forces on the Korean peninsula [or] our commitment ... to the alliance."
But Locklear made clear while visiting South Korea that North Korea's government has important decisions to make.
"Should the North Korean leadership choose to start abiding by its international obligations, to cease provocations, this would be a preferred path," he told reporters in the South Korean capital of Seoul.
"But if further provocations is the path that they would continue to pursue," he continued, "then the challenge for us is to ensure that our alliance remains strong, that we work closely together to monitor and share information, and that we have the proper procedures in place ... [so] the security of the alliance is ensured."
U.S. DEPARTMENT OF LABOR ANNOUNCES $100 MILLION IN GRANTS FOR "WORK SHARING" PROGRAMS
FROM: U.S. DEPARTMENT OF LABOR
US Labor Department announces nearly $100 million in grants available for states to implement, improve short-time compensation or 'work sharing'
WASHINGTON — The U.S. Department of Labor today announced the availability of nearly $100 million in grants for states to implement or improve existing short-term compensation, commonly referred to as "work sharing," programs. This funding has been made available through the bipartisan Middle Class Tax Relief and Job Creation Act of 2012 signed by President Obama in February, which authorized states to set up programs to give employers an alternative to layoffs.
"Establishing or expanding work-sharing programs nationwide will help business owners better weather hard economic times by temporarily reducing their labor costs while still keeping their existing skilled employees," said Secretary of Labor Hilda L. Solis. "This program is a win-win for businesses and employees alike."
Work sharing allows employees to keep their jobs and helps employers to avoid laying off their trained workforces during economic downturns by reducing the hours of work for an entire group of affected workers. Workers affected by reduced hours can have their wages compensated with a portion of their weekly unemployment compensation payments.
The legislation requires each state to submit a complete application to the Labor Department in order to receive a grant. Any state that currently has an active short-time compensation program is eligible to apply if the state's law on work sharing conforms to Section 3306(v) of the Federal Unemployment Tax Act and its program is not subject to discontinuation.
Each state has a designated allotment from the total grant funds available. One-third of the allotted grant money for each state will be used to implement or improve a short-time compensation program, and two-thirds will be available to promote and enroll employers in the program.
The department will provide technical assistance through webinars and other methods to help states achieve the purposes of the grants. The department also will collect and disseminate successful practices based on program implementation as well as outreach tools developed as a result of these grants.
PENTAGON OFFICIALS HOPE FOR COOPERATION BETWEEN MILITARY/ GOVERNMENT IN EGYPT
FROM: U.S. DEPARTMENT OF DEFENSE
U.S. Hopes Egyptian Civilian, Military Leaders Work TogetherBy Jim Garamone
American Forces Press Service
WASHINGTON, Aug. 13, 2012 - U.S. defense officials were expecting Egypt's new president to name his own defense team and hope civilian and military leaders can work together to address the country's problems, Pentagon Press Secretary George Little said today.
Egyptian President Muhammad Morsi announced yesterday that the head of military intelligence, Gen. Abdul-Fattah el-Sisi, would replace Field Marshal Mohamed Hussein Tantawi as defense minister and leader of the Supreme Council of the Armed Forces. The council effectively led Egypt after last year's fall of President Hosni Mubarak until Morsi took office in June.
Morsi is the first democratically elected leader in Egypt's history.
The president also replaced army chief of staff Gen. Sami Hafez Anan and the leaders of the navy, air force and air defense branch.
"It's important for both the military and civilians leaders in Egypt to work together to address the economic and security challenges facing that country," Little said. "We had expected President Morsi to coordinate changes in the military leadership. The United States and the Department of Defense, in particular, look forward to continuing a very close relationship with the [Supreme Council of the Armed Forces]."
U.S. officials know General Sisi, Little said. "He comes from within the ranks of the SCAF, and we believe we will be able to continue the strong partnership that we have with Egypt," he added.
Defense Secretary Leon E. Panetta has not spoken to the new defense minister, "but looks forward to doing so at the earliest possible moment," Little said.
Egyptian officials said the 76-year old Tantawi retired, but would continue to serve as a presidential advisor.
U.S. Hopes Egyptian Civilian, Military Leaders Work TogetherBy Jim Garamone
American Forces Press Service
WASHINGTON, Aug. 13, 2012 - U.S. defense officials were expecting Egypt's new president to name his own defense team and hope civilian and military leaders can work together to address the country's problems, Pentagon Press Secretary George Little said today.
Egyptian President Muhammad Morsi announced yesterday that the head of military intelligence, Gen. Abdul-Fattah el-Sisi, would replace Field Marshal Mohamed Hussein Tantawi as defense minister and leader of the Supreme Council of the Armed Forces. The council effectively led Egypt after last year's fall of President Hosni Mubarak until Morsi took office in June.
Morsi is the first democratically elected leader in Egypt's history.
The president also replaced army chief of staff Gen. Sami Hafez Anan and the leaders of the navy, air force and air defense branch.
"It's important for both the military and civilians leaders in Egypt to work together to address the economic and security challenges facing that country," Little said. "We had expected President Morsi to coordinate changes in the military leadership. The United States and the Department of Defense, in particular, look forward to continuing a very close relationship with the [Supreme Council of the Armed Forces]."
U.S. officials know General Sisi, Little said. "He comes from within the ranks of the SCAF, and we believe we will be able to continue the strong partnership that we have with Egypt," he added.
Defense Secretary Leon E. Panetta has not spoken to the new defense minister, "but looks forward to doing so at the earliest possible moment," Little said.
Egyptian officials said the 76-year old Tantawi retired, but would continue to serve as a presidential advisor.
U.S SECRETARY OF STATE CLINTON SENDS BEST WISHES ON PAKISTAN'S INDEPENDENCE DAY
FROM: U.S. DEPARTMENT OF STATE
Pakistan Independence Day
Remarks
Hillary Rodham Clinton
Secretary of State
Washington, DC
August 13, 2012
On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the government and people of Pakistan as you celebrate the anniversary of your independence this August 14. Since 1947, Pakistan has persevered in the face of immense challenges to build upon the democratic ideals of your country’s founders. Today, we take time to honor your sacrifices and renew our support for a stable and secure Pakistan for generations to come.
Muhammad Ali Jinnah dreamt of a vibrant, self-reliant Pakistan – a goal we all share. As Muslims around the world reflect upon the meaning of community and sacrifice during this holy month of Ramadan, the United States celebrates the hardworking Pakistanis who strive to fulfill Jinnah’s vision of a stable, secure, and prosperous Pakistan.
JAPANESE OWNED OIL TANKER AND U.S. NAVAL SHIP COLLIDE IN STRAIT OF HORMUZ
120812-N-XO436-025 ARABIAN GULF (Aug. 12, 2012) Guided-missile destroyer USS Porter (DDG 78) is damaged in a collision with the Japanese owned bulk oil tanker M/V Otowasan in the Strait of Hormuz, Aug., 12. No personnel on either vessel were reported injured. Porter is on a scheduled deployment to the U.S. 5th Fleet area of responsibility conducting maritime security operations and theater security cooperation efforts. (U.S. Navy photo by Mass Communication Specialist 3rd Class Jonathan Sunderman/Released)
FROM: U.S. DEPARTMENT OF DEFENSE
Update: No Injuries in Strait of Hormuz Collision
From U.S. Nava
l Forces Central Command Public Affairs
NAVAL SUPPORT ACTIVITY, Bahrain (NNS) -- No one was hurt when a U.S. Navy guided-missile destroyer and a large Japanese owned merchant vessel collided near the Strait of Hormuz Aug. 12.
The collision between USS Porter (DDG 78) and the Panamanian-flagged bulk oil tanker M/V Otowasan occurred at approximately 1:00 a.m. local time.
Porter transited under its own power to Jebel Ali, UAE and is now pierside for assessment and repair.
The incident is under investigation.
USS Porter is on a scheduled deployment to the U.S. 5th Fleet area of responsibility conducting maritime security operations and theater security cooperation efforts.
FROM: U.S. DEPARTMENT OF DEFENSE
Update: No Injuries in Strait of Hormuz Collision
From U.S. Nava
l Forces Central Command Public Affairs
NAVAL SUPPORT ACTIVITY, Bahrain (NNS) -- No one was hurt when a U.S. Navy guided-missile destroyer and a large Japanese owned merchant vessel collided near the Strait of Hormuz Aug. 12.
The collision between USS Porter (DDG 78) and the Panamanian-flagged bulk oil tanker M/V Otowasan occurred at approximately 1:00 a.m. local time.
Porter transited under its own power to Jebel Ali, UAE and is now pierside for assessment and repair.
The incident is under investigation.
USS Porter is on a scheduled deployment to the U.S. 5th Fleet area of responsibility conducting maritime security operations and theater security cooperation efforts.
FOREST SERVICE ASKS FOR HELP
Photo: C-130. Credit: U.S. Air Force
FROM: U.S. DEPARTMENT OF DEFENSE
Forest Service Requests More Aircraft for Firefighting Operations
American Forces Press Service
CHEYENNE, Wyo., Aug. 13, 2012 - More forest fires in the western United States have prompted the U.S. Forest Service to call in two additional C-130s equipped with the Mobile Airborne Fire Fighting System, or MAFFS.
Those aircraft, expected to be operating by tomorrow, will come from the Wyoming Air National Guard's 153rd Airlift Wing here, officials said.
"This has been an interesting fire season for us. Our operations have waxed and waned since we were activated June 25," said Air Force Col. Jerry Champlin, 153rd Air Expeditionary Group commander. "Our aircraft are heavily engaged, and having two additional MAFFS will definitely help."
Under the modified request for assistance received Aug. 11, the 153rd Airlift Wing's two C-130s will join Air Force Reserve Command C-130s from the 302nd Airlift Wing operating from Boise Air Terminal in Idaho. A C-130 from the California Air National Guard's 146th Airlift Wing and another from the North Carolina Air National Guard's 145th Airlift Wing will operate from McClellan Air Tanker Base in Sacramento, Calif.
This year's MAFFS operations have dropped more gallons of fire retardant than during the last nine fire seasons, officials said.
MAFFS is a joint Defense Department and U.S. Forest Service program designed to provide additional aerial firefighting resources when commercial and private air tankers are no longer able to meet the Forest Service's needs. MAFFS is a self-contained aerial firefighting system owned by the Forest Service that can discharge 3,000 gallons of water or fire retardant in less than five seconds, covering an area one-quarter of a mile long by 100 feet wide. Once the load is discharged, the system can be refilled in less than 12 minutes.
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