SEC CHARGES CHINA-BASED COMPANY AND CHIEF EXECUTIVE WITH RECORDING FAKE SALES TO INFLATE REVENUES

Photo Credit:  SEC
FROM: U.S. SECURITIES AND EXCHANGE DEPARTMENT
The Securities and Exchange Commission today charged a China-based company and its chief executive with fraud for recording fake sales of a weight loss product to inflate revenues in the company’s financial statements by millions of dollars.

The SEC alleges that China Sky One Medical Inc. (CSKI) falsely stated in 2007 annual and quarterly reports that it had entered into a strategic distribution agreement with a Malaysian company that would become the "exclusive" distributor of CSKI’s "slim patch" in Malaysia and generate $1 million per month in sales. However, the company never actually entered into any such agreement. CSKI instead created approximately $19.8 million in phony export sales to Malaysia that were recorded as revenue in its financial results for 2007 and 2008. CEO Yan-qing Liu certified the overstated financial results, which appear in CSKI’s financial statements through 2010 and continue to impact the company’s retained earnings on its balance sheet.

"Accurate and reliable financial reporting is the bedrock of our capital markets, and CSKI blatantly defrauded investors by fabricating sales and overstating its financial results," said John M. McCoy III, Associate Director of the SEC’s Los Angeles Regional Office

According to the SEC’s complaint filed in U.S. District Court for the Central District of California, CSKI is based Harbin, China. In addition to weight loss patches, the company produces and sells sprays, ointments, and other Chinese traditional pain relief and health and beauty products. CSKI became a public company trading on the U.S. markets through a reverse merger in May 2006.

The SEC alleges that after CSKI devised the purported strategic distribution agreement with Takasima Industries – which is a Malaysian fitness equipment manufacturer and retailer – CSKI went on to falsely report export sales to Malaysia of more than $12.2 million for 2007, which constituted 25 percent of its total revenues. CSKI then falsely recorded $7.5 million (8.2 percent of total revenues) in such sales for 2008. Virtually all of CSKI’s reported sales to Malaysia via Takasima were bogus. Takasima only purchased $167,542 in slim patches from CSKI in 2007, and none in 2008. And it never entered into any distribution agreement with CSKI and never undertook – much less satisfied – any minimum purchase commitment.

According to the SEC’s complaint, CSKI also falsely claimed in its public filings that its top two customers for 2007 were sales agents for Takasima. CSKI identified those customers as Ningbo Yuehua International Trading Company and Guangzhou Xinghe International Trading Company, which collectively accounted for the phony 25 percent of CSKI’s total revenues for 2007. CSKI claimed that all of these purported sales to Ningbo Yuehua and Guangzhou Xinghe went through Takasima, while in fact Takasima never had any relationship with these two entities.

CSKI and Liu are charged with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and various Exchange Act provisions including corporate reporting, recordkeeping, internal controls, and false statements to auditors.

The SEC’s complaint seeks financial penalties against CSKI and Liu as well as disgorgement of ill-gotten gains by Liu, who personally benefited from the overstated financial statements through the company’s 2008 private placement of securities. The SEC also seeks to have Liu reimburse CSKI for certain incentive-based compensation he received during the period affected by the fraud pursuant to Section 304 of the Sarbanes-Oxley Act, and to have Liu barred from acting as an officer or director of a public company. The SEC also seeks to have CSKI and Liu permanently enjoined from future violations of these provisions of the federal securities laws

In addition to the court action, the SEC instituted administrative proceedings to determine whether to revoke or suspend registration of CSKI’s securities due to the company’s failure to file its annual report for 2011 or any quarterly reports for 2012.

The SEC’s investigation, which is continuing, has been conducted by Junling Ma, Rhoda Chang, and Marshall S. Sprung of the SEC’s Los Angeles Regional Office. The SEC’s Cross Border Working Group – which focuses on U.S. companies with substantial foreign operations – and the SEC’s Office of International Affairs assisted in the investigation. The SEC’s litigation will be led by David Van Havermaat.

DOD News Briefing with Pam Mitchell from the Pentagon

DOD News Briefing with Pam Mitchell from the Pentagon

DOD News Briefing with Lt. Gen. Terry from the Pentagon

DOD News Briefing with Lt. Gen. Terry from the Pentagon

Pay attention and graduate college

Pay attention and graduate college

THREE FORMER UBS EXECUTIVES CONVICTED FOR FRAUD

FROM: U.S. DEPARTMENT OF JUSTICE
FRIDAY, AUGUST 31, 2012　
WASHINGTON — A federal jury in New York City today convicted three former financial services executives for their participation in frauds related to bidding for contracts for the investment of municipal bond proceeds and other municipal finance contracts, the Department of Justice announced.

Peter Ghavami, Gary Heinz and Michael Welty, all former UBS AG executives, were found guilty on conspiracy and fraud charges in the U.S. District Court in New York City. Ghavami was found guilty on two counts of conspiracy to commit wire fraud and one count of substantive wire fraud. Heinz was found guilty on three counts of conspiracy to commit wire fraud and two counts of substantive wire fraud. Welty was found guilty on three counts of conspiracy to commit wire fraud. Heinz was found not guilty on one count of witness tampering and Welty was found not guilty on one count of substantive wire fraud.

The trial began on July 30, 2012. Ghavami, Heinz and Welty were initially indicted on Dec. 9, 2010.

"For years, these executives corrupted the competitive bidding process and defrauded municipalities across the country out of money for important public works projects," said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. "Today’s convictions demonstrate that the division is committed to holding accountable those who seek to unfairly and illegally undermine competitive markets."

According to evidence presented at trial, while employed at UBS, Ghavami, Heinz and Welty participated in separate fraud conspiracies and schemes with various financial institutions and with a broker, at various time periods from as early as March 2001 until at least November 2006. These financial institutions, or providers, offered a type of contract—known as an investment agreement— to state, county and local governments and agencies, and not-for-profit entities, throughout the United States. The public entities were seeking to invest money from a variety of sources, primarily the proceeds of municipal bonds that they had issued to raise money for, among other things, public projects. Public entities typically hire a broker to assist them in investing their money and to conduct a competitive bidding process to determine the winning provider.

According to evidence presented at trial, while acting as providers, Ghavami, Heinz and Welty, with their provider and broker co-conspirators, corrupted the bidding process for more than a dozen investment agreements to increase the number and profitability of the agreements awarded to UBS. At other times, while acting as brokers, Ghavami, Heinz, Welty and their co-conspirators arranged for UBS to receive kickbacks in exchange for manipulating the bidding process and steering investment agreements to certain providers.

Ghavami, Heinz and Welty deprived the municipalities of competitive interest rates for the investment of tax-exempt bond proceeds that were to be used by municipalities to refinance outstanding debt and for various public works projects, such as for building or repairing schools, hospitals and roads. Evidence at trial established that they cost municipalities around the country and the U.S. Treasury millions of dollars.

During the trial, the government presented specific evidence relating to approximately 26 corrupted bids and approximately 76 recorded conversations made by the co-conspirator financial institutions. Among the issuers and not-for-profit entities whose agreements or contracts were subject to the defendants' schemes were the Commonwealth of Massachusetts, the New Mexico Educational Assistance Foundation, the Tobacco Settlement Financing Corporation of Rhode Island and the RWJ Health Care Corp at Hamilton.

"Corrupt bidding schemes serve to weaken the public’s trust in the municipal bond market and prevent public entities from enjoying the benefits of a true competitive bidding process," said Mary E. Galligan, Acting Assistant Director in Charge of the FBI in New York. "Today’s conviction is further proof of our efforts to weed out these corrupt criminals and ensure justice is served."

Today's verdict is important because it confirms that these complex, seemingly uninteresting backroom deals have a real impact on taxpayers, who should benefit from a municipal bond issue and are ultimately responsible for paying it off," said Richard Weber, Chief, Internal Revenue Service-Criminal Investigation (IRS-CI). "Today’s convictions send a strong message to the municipal bond industry and demonstrates the commitment of the Internal Revenue Service and the Justice Department to rid the industry of corrupt practices."

A total of 20 individuals have been charged as a result of the department’s ongoing municipal bonds investigation. Including today’s convictions, a total of 19 individuals have been convicted or pleaded guilty, and one awaits trial. Additionally, one company has pleaded guilty.

Two of charged fraud conspiracies carry a maximum penalty per count of 30 years in prison and a $1 million fine. A third fraud conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine. The two wire fraud charges carry a maximum penalty per count of 30 years in prison and a $1 million fine. These maximum fines per count may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either amount is greater than the statutory maximum fine.

The verdict announced today resulted from an ongoing investigation conducted by the Antitrust Division’s New York and Chicago Offices, the FBI and the IRS-CI. The division is coordinating its investigation with the U.S. Securities and Exchange Commission, the Office of the Comptroller of the Currency and the Federal Reserve Bank of New York.

REMARKS BY U.S. SEC. OF STATE CLINTON AND ASEAN SECRETARY GENERAL SURIN

FROM:  U.S. STATE DEPARTMENT
Meeting with ASEAN Secretary General SurinRemarks

Hillary Rodham Clinton
Secretary of State
ASEAN Secretariat
Jakarta, Indonesia, Indonesia
September 4, 2012
ASEAN SECRETARY GENERAL SURIN: Secretary Hillary Rodham Clinton, chair of ASEAN program representative, Excellencies, members of the CPR, it is a great privilege for us to welcome the Secretary here for the second time in her term. And I remember very well on the 18th of February you were here. Your first trip to the world you came to Asia. You came to the ASEAN Secretariat. You became the highest ranking ever official of the United States Government to visit us. And ever since, this place has been a routine destination for visiting dignitaries to ASEAN, to the Republic of Indonesia.

At that time you promised many things. You promised full engagement with ASEAN, with Southeast Asia. You promised to accede to our Treaty of Amity and Cooperation. You have promised the highest presidential engagement. You have promised to come to attend our post-ministerial (inaudible) conference, ARF. And I am glad to say that you have delivered it all. Thank you very, very much. Along the way we were a bit skeptical and we asked you -- we challenged you we would believe in the change when you delivered everything that you had promised us. And you did. And we certainly feel very much honored to welcome you here.

Now, let me just say that most of the diplomats we work with, they are counterparts. And you have turned your counterparts here in Southeast Asia, in ASEAN, into your friends. And friendship is extremely important for the region and for the region's diplomacy. We count you not as counterpart, but as a true friend. That is why today is very special. And we hope that we will accomplish many more things together into the future with the United States and ASEAN.

Madam, warmly welcome, please.

SECRETARY CLINTON: Thank you so much, my friend. And let me express what a pleasure it is to be back in Jakarta and to have this second opportunity to visit the ASEAN Secretariat.

As Dr. Surin has said, I came here in February of 2009 with the intention of deepening and broadening and elevating the relationship between the United States and ASEAN. And we have worked to do just that. I believe our relationship is stronger and more effective. And that is all to the good, because the United States views ASEAN as central to regional stability and economic progress in the Asia-Pacific.

We did sign the Treaty of Amity and Cooperation, as I said we would, and I visited back in February of 2009. We were the first dialogue partner to open a mission to ASEAN. And I am pleased that others are also doing that. We appointed our first resident U.S. Ambassador, and Ambassador Carden holds regular meetings with his counterparts in the ASEAN Committee of Permanent Representatives, whom we soon will welcome on their first official visit to the United States. We have engaged with ASEAN at the highest levels, with President Obama attending three U.S.-ASEAN leaders meetings, as well as the East Asia Summit, here in Indonesia last year.

Later this month, I will host my ASEAN counterparts in a meeting on the margins of the UN General Assembly. We have devoted resources to supporting ASEAN's goal of economic and political integration through the Advance program to narrow the development gap among ASEAN nations, and to promote and protect human rights. We are increasing our People-to-People ties through the ASEAN Youth Volunteers program and the U.S.-ASEAN Fulbright program, which we are now launching.

In short, we are making a sustained, all-out effort to build an enduring, multi-faceted relationship between ASEAN and the United States. We want to do all we can to advance ASEAN's goal of integration, because we have an interest in strengthening ASEAN's ability to address regional challenges in an effective, comprehensive way.

And we really invite and need ASEAN to lead in crafting strong, regional responses to challenges like climate change and trans-national crime, which require collective actions. And we need ASEAN to lead in upholding a system of rules and responsibilities that will protect regional stability and guide the region to greater political and economic progress.

So, Dr. Surin, it is a great honor for me now to have returned for a second visit to conduct, if you will, a progress report among partners and friends, and to state once again what I have said in other contexts. The United States believes in ASEAN centrality, and ASEAN centrality is essential to ASEAN unity. So I am looking forward to our exchange today and the dialogue among us, looking forward to continuing to work on behalf of the U.S.-ASEAN relationship.

ASEAN SECRETARY GENERAL SURIN: Thank you very much. (Applause.)

PARALYMPIAN SAYS, 'NOBODY'S IN THIS BY THEMSELVES...IT TAKES A COMMUNITY TO DO ANYTHING'

FROM: U.S. DEPARTMENT OF DEFENSE

Former Air Force Staff Sgt. Mario Rodriguez, right, a member of the 2012 U.S. Paralympic fencing team, squares off with France's Ludov LeMoine at London's ExCel Centre during the Paralympic Games, Sept. 4, 2012. DOD photo by U.S. Army Sgt. 1st Class Tyrone C. Marshall Jr.

 

Air Force Veteran Shares Wisdom With Young Paralympians
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

LONDON, Sept. 4, 2012 - The camaraderie of being part of a team is a draw to many athletes and can be traced to the origins of why many embarked on lengthy careers, staying the course even when things are not always going their way.

Mario Rodriguez, a member of the U.S. Paralympic fencing team and former Air Force staff sergeant, is one such athlete competing at the 2012 Paralympic Games here.

"I was a Russian translator for just under four years with the Air Force," he said. "I really loved the job. I liked serving my country, being at the forefront of things. And the other part of that was just basically being part of something bigger than myself. I think that's kind of how I ended up in sports, because [I enjoy] being part of a team, [building teams], and doing thing together to make things happen.

"Nobody's in this by themselves," he added. "It takes a community to do anything."

Rodriguez said he served his lone Air Force tour stationed on the Greek island of Crete. He elected to have his leg removed in 1992 after an untreatable tumor was discovered. It was then that he discovered wheelchair fencing and began his career.

During his bouts today -- in which he unsuccessfully faced competitors from Hungary, Hong Kong, France and Russia -- the Paralympian fencer said, he didn't feel quite as focused as he could be.

"I was trying to be in the right place at the right time," he said. "This is definitely a game of wits and speed. I definitely had the preparation. I guess I'm just getting a little bit old, to put it bluntly."

Rodriguez said he stepped away from the fencing in 2004, but later the appeal of coaching young, talented fencers brought him back.

"Between 2008 and now, I kind of got coached back into the [fencing] circuit," Rodriguez said. "Basically, what happened was we have a couple of younger athletes that really piqued my interest, and I wanted to see them do well."

Rodriguez noted that as he went to some of the same tournaments and had some success, such as taking the gold medal in Brazil's zonal championships, he built a rapport with the younger athletes.

"I was trying to give them a little extra fodder, and give them the benefit of my experience and knowledge," he said.

Hearing the national anthem at the championship was amazing, Rodriguez said, and also served to inspire him to return to the game.

"I wish I could do that here, but I don't think it's going to happen for me," he said. "It's great to be part of something bigger than myself."

Rodriguez said his goals for the Paralympic Games were to perform the best he could, be a good representative of the United States, and spend time with old athlete friends from other countries, noting that he enjoys sharing the experience with all of the athletes, volunteers and coaches.

Rodriguez also talked about his preparation for Paralympic competition and the advice he gives to younger competitors.

"I think before, the key to my success was overtraining," he said. "I've got to a point in my career where overtraining is definitely detrimental to my being able to stay on the mark. What I [would] tell anyone these days is the most important thing is being able to find a good, healthy sports regimen and not overdoing it."

The Paralympic fencer also said "it's a very, very fine edge to ride on when you're training for something like the Paralympics or any elite sport.

"You have to take care of yourself," he continued. "If you overdo it, then you can't do your personal best. You've got to stay in good physical shape, good mental shape, and just be consistent."

Rodriguez said he is his own worst critic when it comes to examining his own performances.

"I think, some of us, maybe more than others, are [tough on ourselves]," he said. "I tend to be self-critical, and I want to do better, and make my coach ... [and] teammates happy -- make myself happy."

At the end of the day, the Air Force veteran said, he's just happy to represent his country in the Paralympic Games.

"I feel like I've gotten a lot of support," Rodriguez said. "I looked out in the stands and saw several members of our team -- not just people in the fencing community, but from other sports as well. So that really pushed me to do the best I could."

THE BLUE MOON

NASA
Blue Moon Over Cincinnati


A rare second Full Moon of the month, known as a "Blue Moon," is seen over Cincinnati on Friday, Aug. 31, 2012.

The family of Apollo 11 Astronaut Neil Armstrong held a memorial service celebrating his life earlier in the day in Cincinnati. Armstrong, the first man to walk on the moon during the 1969 Apollo 11 mission, died Saturday, Aug. 25. He was 82.

Image Credit: NASA/Bill Ingalls

WYOMING GRAY WOLF NO LONGER PROTECTED UNDER ENDANGERED SPECIES ACT

Photo: Wyoming Gray Wolf. Credit: Tracy Brooks, U.S. Fish And Wildlife Service.

FROM: U.S. FISH AND WILDLIFE SERVICE

Service Declares Wyoming Gray Wolf Recovered Under the Endangered Species Act and Returns Management Authority to the State
August 31, 2012

The U.S. Fish and Wildlife Service announced today that the Wyoming population of gray wolves is recovered and no longer warrants protection under the Endangered Species Act (ESA). Beginning September 30th, wolves in Wyoming will be managed by the state under an approved management plan, as they are in the states of Idaho and Montana.

"The return of the wolf to the Northern Rocky Mountains is a major success story, and reflects the remarkable work of States, Tribes, and our many partners to bring this iconic species back from the brink of extinction," said Fish and Wildlife Service Director Dan Ashe. "The wolf population has remained healthy under state management in Idaho and Montana, and we’re confident that the Wyoming population will sustain its recovery under the management plan Wyoming will implement."

The most recent official minimum population estimate shows that the Northern Rocky Mountain wolf population contains more than 1,774 adult wolves and more than 109 breeding pairs. Most of the suitable habitat across the Northern Rocky Mountain region is now occupied and likely at, or above, long-term carrying capacity. This population has exceeded recovery goals for 10 consecutive years.

The Service will continue to monitor the delisted wolf populations in all three states for a minimum of five years to ensure that they continue to sustain their recovery, and retains authority to reinstate ESA protections at any time if circumstances warrant.

"Our primary goal, and that of the states, is to ensure that gray wolf populations in the Northern Rocky Mountains remain healthy, giving future generations of Americans the chance to hear its howl echo across the area," added Ashe. "No one, least of all Idaho, Montana and Wyoming, wants to see wolves back on the endangered species list. But that’s what will happen if recovery targets are not sustained."

Wyoming has committed to meeting its statutory and regulatory standards by managing for a buffer above minimum management targets. The management framework adopted by the State is designed to maintain at least 150 wolves and 15 breeding pairs within the State of Wyoming. This is the same management objective as was adopted by the States of Montana and Idaho. The Service expects the Greater Yellowstone Area wolf population to maintain a long-term average of around 300 wolves, while the entire Northern Rocky Mountains Distinct Population Segment is expected to achieve a long-term average of around 1,000 wolves. These wolves represent a 400-mile southern range extension of a vast contiguous wolf population that numbers over 12,000 wolves in western Canada and about 65,000 wolves across all of Canada and Alaska.

In 2009, the Service published a final rule to remove ESA protections for gray wolves across the Northern Rocky Mountain distinct population segment, with the exception of those in Wyoming. Wyoming was not included because the state’s management plan did not provide the necessary regulatory mechanisms to assure that gray wolf populations would be conserved if the protections of the ESA were removed. Subsequently, the Service and the State of Wyoming developed points of agreement that would promote management of a stable, sustainable population of wolves and allow management authority to be turned over to the state. Wyoming subsequently developed a wolf management plan and amended its state law and regulations to codify those protections.

With publication of this final rule, the northern Rocky Mountain population of gray wolves that includes all of Montana, Idaho, and Wyoming, the eastern third of Washington and Oregon, and a small corner of north-central Utah will be managed by state and tribal jurisdictions. Today’s decision will take effect September 30th.

Biologists have determined that the vast majority of Wyoming’s wolf population and habitat is located in northwest Wyoming, where wolves will be managed as "trophy game" animals year-round. Trophy game status allows the Wyoming Game and Fish Commission and the Wyoming Game and Fish Department to regulate timing, methods, and numbers of wolves taken through regulated hunting and other methods such as control of wolves found to be depredating on livestock.

Existing Federal law prohibits hunting in Yellowstone National Park and Grand Teton National Park. No wolf hunting will occur in the John D. Rockefeller Jr. Memorial Parkway, the National Elk Refuge, and the Wind River Reservation in 2012, although hunting could occur in these three areas in future years. Beginning October 1, the State of Wyoming has authorized a harvest of 52 wolves in other portions of northwestern Wyoming’s Trophy Area in 2012. Current information indicates only about ten percent of the Greater Yellowstone Area wolf population resides outside the Trophy Game Area in Wyoming, where they have been designated as predators and can be taken with very few restrictions.



 

NEW BIO-THREAT SENSORS WILL BE TESTED IN BOSTON SUBWAY SYSTEM

Photo:  S&T scientists will spray small quantities of killed Bacillus subtilis in the subway tunnels.  Credit:  DHS

FROM: U.S. DEPARTMENT OF HOMELAND SECURITY
Boston Subway System to be Used to Test New Sensors for Biological Agents
Department of Homeland Security’s Science and Technology Directorate’s "Detect to Protect" program will assess trigger and confirmer sensors designed to detect biological agents within minutes
The idea that disease and infection might be used as weapons is truly dreadful, but there is plenty of evidence showing that biological weapons have been around since ancient times. Bioterrorism, as it is dubbed, is nothing new, and although medicines have made the world a safer place against a myriad of old scourges both natural and manmade, it still remains all too easy today to uncork a nasty cloud of germs.

The Department of Homeland Security’s Science and Technology Directorate (DHS S&T) has scheduled a series of tests in the Boston subways to measure the real-world performance of new sensors recently developed to detect biological agents.

S&T’s "Detect-to-Protect" (D2P) Bio Detection project is assessing several sensors (made by Flir Inc., Northrop Grumman, Menon and Associates, and Qinetiq North America) to alert authorities to the presence of biological material. These devices with "trigger" and "confirmer" sensors have been designed to identify and confirm the release of biological agents within minutes.

In 2009, and in early August this year, inert gasses were released in the Boston subway system in an initial study to determine where and how released particulates would travel through the subway network and to identify exactly where to place these new sensors. The current study will involve the release of a small amount of an innocuous killed bacterium in subway stations in the Boston area to test how well the sensors work. After the subway stations close, S&T scientists will spray small quantities of killed Bacillus subtilis in the subway tunnels. This common, food-grade bacterium is found everywhere in soil, water, air, and decomposing plant matter and, even when living, is considered nontoxic to humans, animals, and plants.

S&T’s Dr. Anne Hultgren, program manager for the D2P project, says, "While there is no known threat of a biological attack on subway systems in the United States, the S&T testing will help determine whether the new sensors can quickly detect biological agents in order to trigger a public safety response as quickly as possible."

DHS leads federal efforts to prepare for, respond to, and recover from a possible domestic biological attack. The testing will continue periodically for the next six months and will be monitored by the Massachusetts Bay Transportation Authority as well as state and local public health officials.

The particles released in the stations will dissipate quickly. But before they do, their brief travels will provide invaluable data for DHS’ ongoing effort to protect American travelers from potential hazards. Unlike the "Charlie on the MTA" made famous by the Kingston Trio folk group, these particles will NOT ‘ride forever ’neath the streets of Boston.’

This Day in Naval History - Sept. 05

This Day in Naval History - Sept. 05

ISAF NEWS FOR AUGUST 5, 2012

FROM:  U.S. DEPARTMENT OF DEFENSE
Airstrike Kills Taliban Leader Involved in Aug. 7 Attack
From an International Security Assistance Force Joint Command News Release

KABUL, Afghanistan, Sept. 5, 2012 - One of the Taliban leaders behind an Aug. 7 attack on a coalition base in Afghanistan's Logar province was killed by Afghan and coalition security forces in Logar's Pul-e Alam district yesterday, military officials reported.

Afghan and coalition security forces positively identified the Taliban leader, Bismullah, and two additional insurgents and killed them with a precision airstrike after confirming no civilians were in the area, officials said.

Bismullah is believed to have supplied suicide bombers with essential equipment for the Aug. 7 attack, which wounded several Afghan civilians but failed to cause any significant damage to the coalition base. At the time of his death, officials said, he was believed to be planning another large-scale attack and had transported several rockets across the region.

A post-strike assessment determined no civilian property was damaged and no civilians were harmed.

In other news, a combined Afghan and coalition security force killed several armed insurgents during an operation to arrest a senior Taliban leader in Balkh province's Chimtal district today. As the security force approached the Taliban leader's suspected location, several insurgents opened fire and the security force returned fire.

In operations yesterday:

-- A combined force of coalition troops and Afghan special police in Kandahar province's Maiwand district seized a vehicle packed with nearly 3 tons of explosives. The Afghan-led team stopped the vehicle and detained its three occupants. The vehicle is believed to have been bound for bomb makers in Helmand and Kandahar provinces, officials said, and the explosives were destroyed on site.

-- The Wardak Provincial Response Company and coalition forces disrupted an insurgent attack on an Afghan army security patrol in Wardak province's Maidan Shahr district. Responding to a reported insurgent ambush on the patrol, the response company provided covering fire for the unit in contact and conducted a follow-on mission to investigate a suspected Taliban checkpoint.

White House Hangout: AmeriCorps Alumni | The White House

White House Hangout: AmeriCorps Alumni | The White House

Behind the Scenes with President Obama & Team USA Basketball | The White House

Behind the Scenes with President Obama & Team USA Basketball | The White House

SEC RAISES ALERT REGARDING "PAY TO PLAY" CAMPAIGN CONTRIBUTIONS

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., Aug. 31, 2012
– The Securities and Exchange Commission issued an alert to strengthen compliance with a Municipal Securities Rulemaking Board rule that limits political contributions by municipal securities professionals to campaigns of public officials of issuers with whom they are doing or seek to do business.

The Risk Alert issued by the agency’s Office of Compliance Inspections and Examinations notes that SEC examiners have observed practices that raise concerns about firms’ compliance with their obligations under MSRB Rule G-37, which clamped down on so-called "pay to play" practices. These concerns include:
Compliance with the rule’s ban on doing business with a municipal issuer within two years of a political contribution to officials of the issuer by any of the firm’s municipal finance professionals
Possible recordkeeping violations
Failure to file accurate and complete required forms with regulators regarding political contributions
Inadequate supervision
The Risk Alert identifies practices that examiners have seen some firms use to comply with applicable federal, state, and local rules on contributions. These include training programs for municipal finance professionals, self-certification of compliance with restrictions on political contributions, surveillance for unreported political contributions, and preclearance or restrictions on political contributions when permitted by state or local law. The Risk Alert stresses that the practices are described only to inform firms about approaches being used to strengthen compliance efforts; these practices may not be applicable to a particular firm, and other practices may be appropriate to consider instead.

"This Risk Alert is intended to help firms to strengthen their compliance and risk management efforts with regard to political contributions," said OCIE Director Carlo di Florio. "We hope that by describing practices that our examiners have observed, we will promote compliance by helping firms to consider how each of them can most effectively meet their obligations under MSRB rules."

The alert is the fourth this year and the sixth in a continuing series of Risk Alerts that the SEC’s examination staff began issuing in 2011. It is intended to assist senior management, risk management, and legal and compliance staff as they review compliance with Rule G-37 by brokers, dealers, and municipal securities dealers.

The following staff contributed substantially to preparing this Risk Alert: Robert Miller, Suzanne McGovern, Julius Leiman-Carbia, and George Kramer.

U.S. AND AFRICAN AIR FORCE MILITARY LEADERS WORKING TOGETHERR

Gen. Philip Breedlove speaks with Brig. Gen. Alain Pereira during a group discussion at the Regional Air Chief Conference in Dakar Senegal, Aug. 29, 2012. The conference focused on promoting regional partnerships in Northern and Western Africa and to help find African solutions to African problems. Breedlove is U.S. Air Forces in Europe and Air Force Africa commander and Pereira is the Senegal air chief. (U.S. Air Force photo/Staff Sgt. Travis Edwards)

 
FROM:  U.S. AIR FORCE
African air chiefs pledge cooperation, trust, solutions

by Staff Sgt. Travis Edwards
U.S. Air Forces Africa Public Affairs

8/31/2012 - DAKAR, Senegal (AFNS) -- The 2012 Regional Air Chief Conference wrapped up here Aug. 30, leaving military leaders from multiple North and Western African nations excited about progress and resolutions involving an increase in regional coordination.

One of the main points was, "The need to share information," said Ghana air force Air Cmdr. Philip Ayisa, the commander of Tamale air force base, Ghana. "African countries need to come together to decisively coordinate and face these challenges together."

The attending African nations communally agree that each country, individually, does not have the equipment, resources or air power necessary to combat all aspects of national defense. However, they accept that together it can be done.

"Participation and cooperation (amongst African countries) is key to the improvement of our capabilities, our personnel readiness and the multiple challenges and security challenges in the region," said Nigerian Air Marshall M.D. Umar, chief of the Nigerian air force.

On the opening day, the group discussed cross-regional issues (common threats and challenges) affecting all African nations in attendance.

"This discussion group reflects a sincere commitment to our collective efforts," said Maj. Gen. Carlton Everhart, the 3rd Air Force vice commander. "Capacity building has continued to be the focus of what we have done here this week and I think we've learned a lot from each other."

The second day focused on the use of intelligence, surveillance and reconnaissance and strategic airlift in Africa and how to properly enable the sharing and inter-cooperation of these assets within the affected African nations.

"ISR is more than just an aircraft, more than just sensors, it takes a considerable amount of manpower to put it together and placed in the right hands in a timely manner," said Col. Gordon Hendrickson, the U.S. Air Forces in Europe and Air Force Africa director of intelligence. "It's important for us to draw together these air chiefs from throughout Africa and help guide them into coming up with those solutions to many of the unique challenges that they face."

Strategic airlift capabilities in African countries are also limited due to the limited resources available.

"Strategic airlift remains a critical supporting capability that should be achieved, maintained and improved," said Nana Adu-Gyamfi a Ghana air force wing commander. "A systematic use of pulled and shared (strategic airlift) assets would reduce duplication, overhead and medium and long-term capabilities."

The last subject discussed was the use of air-ground integration where Lt. Col. Craig McCarty, 435th Air Ground Operations Group commander spoke about the capabilities close air support can bring to the fight.

"CAS is something that can help bring together the African armies and air forces to allow them to work more efficiently with each other," McCarty said. "In the long term, it will act as the baseline information for when each country starts cooperating and working together."

The conference ended as a resounding success as military leaders packed up and prepared to leave Senegal to bring home lessons learned, an understanding of the challenges affecting the region and possible solutions to those challenges.

At the end of the conference, Everhart had a few parting words for all the attendees.

"Thank you so much for this opportunity, it's an immense effort that we've put together here and I look forward to making great strides in progress for the benefit of these nations," said Everhart.

DOD STILL HAS CONCERNS REGARDING OSAMA BIN-LADEN RAID BOOK

Photo Credit:  U.S. DOD 
FROM: U.S. DEPARTMENT OF DEFENSE
Concerns Persist Over Ex-SEAL's bin Laden Raid Book

By Amaani Lyle
American Forces Press Service

WASHINGTON, Sept. 4, 2012 - Defense Department officials continue to weigh their legal options against a former Navy SEAL who may have revealed classified information in a book he wrote about the Osama bin Laden raid, Pentagon Press Secretary George Little said in a news conference here today.

On Aug. 30, the Defense Department sent an advisory letter of material breach and nondisclosure violation to the author, who used the pen name Mark Owen to write "No Easy Day."

Officials maintain Owen may have divulged classified information that could jeopardize the safety of military members in future operations.

"When it comes to sensitive special operations missions such as the [one] that took down Osama bin Laden, it is important that those ... involved in such operations take care to protect sensitive and classified information," Little said. "And if I had been part of the raid team on the ground and I had decided to write a book about it, it wouldn't have been a tough decision for me to submit the book for prepublication review. That is common sense. It's a no-brainer, and it did not happen."

Little said Pentagon officials have read the book and are unwavering in their concerns about sensitive and classified information that they believe the book contains, but no plans have been put in place to withhold sale of the book in military exchanges or to the public.

"There's been no directive from this department to withhold sale of the book from military exchanges. ... [The] book is being made widely available in bookstores and online," Little said.

The Defense Department typically is not in the business of policing what goes on bookshelves, Little said. Rather, he added, it simply wants to protect classified information, as all current and former DOD employees have a "solemn obligation" to do.

"The sole yardstick is classification. ... This is a former service member who wrote a book," Little said. "This is about merely trying to protect classified information, ... not about trying to prevent the telling of a story."

GOLDEN HOUR BOX DEVELOPER HERO'S REFLECTIONS

Army Col. Frank Rentas, director of the Armed Services Blood Program, hosts a teleconference discussing an upcoming lessons- learned workshop in his Falls Church, Va., office, March 30, 2012. Armed Services Blood Program photo by Christine June

FROM: U.S. DEPARTMENT OF DEFENSE
Face of Defense: 'Golden Hour Box' Developer Reflects on Career
By Christine June
Armed Services Blood Program Office

FALLS CHURCH, Va., Sept. 4, 2012 - One of the men who helped to invent a "box" that could save lives on the battlefield said he joined the Army for "three years -- tops."

"That was 31 years ago," Army Col. Francisco Rentas added with a smile, remembering what he said to his family gathered at Fort Buchanan, Puerto Rico, on his way to basic training. "Everybody was crying, and I told them that it was for two or three years. I told them I would be back."

A native of Ponce, Puerto Rico, Rentas had every intention of returning home to his parents, sister and brothers.

"Every time we go by Fort Buchanan, we always remember -- just like a movie -- Francis sitting on a small wooden bench, carrying a small handbag," said his sister Hilda Rocafort, who was 12 years old when Rentas was born. "When he didn't return in two or three years as we expected, we were sad because of the distance, but deep inside, we knew that he was happy. He was focused on new achievements."

And there would be a multitude of worthy achievements, including one that has made a lasting difference in the lives of his military family -- the invention of the Golden Hour Human Blood Transport Container.

The 10-inch-square Golden Hour box is a device that carries blood far forward to the battlefield. No effective combat-environment, thermal, blood-carrying container existed in 2002 when U.S. troops were fighting in Afghanistan, far away from any fixed medical facility.

Rentas retires from the Army in a ceremony Sept. 21, as his latest tour of duty -- director of the Armed Services Blood Program Office -- winds to a close. In this role, he has overseen the disposition of blood products to the combat theater and elsewhere throughout the military medical community.

"[Special Forces units] needed a container to carry red blood cells that could operate in Afghanistan's desert and mountainous terrain and maintain the cells without freezing or cooking them," said Dr. Victor MacDonald, product manager and subject matter expert on blood products for the Pharmaceutical Systems Project Management Office at the U.S. Army Medical Material Development Activity at Fort Detrick, Md.

Transporting blood, which is regulated by the Food and Drug Administration, is no simple task. MacDonald said red blood cells must be preserved at the correct temperature -- 1 to 6 degrees Celsius or 34 to 43 degrees Fahrenheit -- to be viable for transfusion.

"The beauty of the Golden Hour container is that it preserves red blood cells without the use of electricity, batteries or even ice," said MacDonald, a member of the original invention team. The team received the Army's 2003 Greatest Invention Award.

Rentas' path toward the science of blood banking would begin with his Army enlistment as a clinical laboratory technician in 1981. He said he wanted to be an enlisted soldier even though he had just earned a bachelor's degree in biology from the University of Puerto Rico. Before a year was up, Rentas met his wife of 30 years. They now have two daughters.

He stayed enlisted for almost six years, attaining the rank of sergeant before earning a direct commission in 1987 as a second lieutenant in the Army's Medical Service Corps.

"I really enjoyed working in the lab behind the bench, testing blood and other samples -- plus, I was married," said Rentas, with his smile returning as he explained how his three-year homecoming never happened.

And for those whose lives have been saved by preserved blood products close at hand, many would agree that it is a very good thing that Rentas decided to make the Army a career.

"How [the Golden Hour container] works," Rentas explained, "is that there are panels inside the container that you freeze ahead of time, and when these panels go from frozen to liquid, everything inside stays at 4 degrees Celsius for about 72 to 75 hours, depending on the temperature outside."

Success of the Golden Hour container, Rentas and MacDonald said, is evident by the fact that it is still in use today -- not only in the U.S. military and civilian medical communities, but also in several countries.

"And not just for blood," Rentas said, "A lot of medical professionals are using the box for other temperature-sensitive, life-saving medical supplies -- platelets, vaccines and medications -- during emergencies as well as on the battlefield today."

"I know how important it is to have more time available to use blood products for patients," said Robert Rentas, a younger brother of the colonel and administrator of the Instituto de Radioterapia del Este in Humacao, Puerto Rico. "I feel very proud to have Francis as a brother, and I am completely sure that from heaven our Mami and Papi are smiling for all of his accomplishments, and for being a great father and husband."

Through his 30 years of service, Rentas' achievements include service as chief of military laboratories and blood bank centers; more than 20 medals, honors and awards; close to 50 published presentations and publications; a master's degree; a fellowship in blood banking; and a doctorate in clinical laboratory science. But being a part of military blood banking – the noble mission of saving lives -- has always inspired him, he said.

"Our motivation is driven by the pictures of those returning in flag-draped caskets that could not be saved or those of a young wife with two children at her husband's funeral," said Rentas, who plans to continue working in blood banking when he enters the civilian workforce.

"Every member of the Armed Services Blood Program throughout the world works hard to ensure we do whatever we can to take care of our customers while maintaining the safety of the military blood supply," he said. "I will miss them all."

SpaceUp Unconference viendra à l'Europe

SpaceUp Unconference viendra à l'Europe

U.S. PRIMARIES AND CONVENTIONS PRE-1900

Photo: Theodore Roosevelt. From: U.S. Library of Congress

FROM: U.S. LIBRARY OF CONGRESS

I can picture ... the great Democratic convention of 1894 at the old coliseum in Omaha... right now I can hear the Hallelluiahs of the assembled. Oh how I wish I had back the youth and the enthusiasm I felt that night, I jumped on a chair and ask[ed] that by a rising vote the nomination be made unanimous, how the people yelled, how the packed gallories applauded, it cheers an old man now to think about it.

Mrs. J.J. McCarthy's enthusiasm for party conventions wasn't shared by all of his contemporaries. Even before 1900, many sought to reform these conventions that uniformly ignored the will of individual voters in their selection of presidential candidates. Though these conventions were attended by delegates sent from their respective states, delegates were often chosen by state and party bosses with sway over the delegates' loyalties, instead of by state-wide or majority elections, called primaries. Before the 1920s, party bosses were often accused of trading convention floor votes for power, patronage, or even cash! These problems kept the representational method of nominating candidates by sending delegates to conventions from being truly representational.

In the first decade of the 1900s, states began to hold primary elections to select the delegates that would attend national nominating conventions. The introduction of these primary elections mitigated the corrupt control of party and state bosses. But the widespread adoption of primary elections was not immediate and so they did not play the role of virtually determining a party's candidate as they do today. 1912 was the first year in which a presidential candidate, two-time President Theodore Roosevelt, tried to secure his nomination through primary elections. That year, nine states elected delegates that supported Roosevelt, while incumbent, William Howard Taft, won only one primary election. Despite Roosevelt's wholesale victory of the popular vote, Taft received the Republican nomination. This was because only 42% of the delegates who attended the nominating convention had been selected through primary elections. The rest had been selected by party bosses who supported Taft and succeeded in granting him their party's nomination.

Failing to win the Republican nomination, Roosevelt and his supporters formed the Progressive Party, or Bull Moose Party, with Roosevelt as its presidential candidate. Roosevelt failed to win the Presidency that year, but with the help of the Progressive party, our country's primary system began to change. Fed up with corrupt party politics, Americans demanded and won reforms that reduced the power of party bosses. The introduction of the secret ballot had led the way in 1888. By the 1920's, almost every state had loosened the grip of political bosses and placed candidate selection more firmly in the hands of citizen voters.

The excitement and corruption of party politics was not limited to the national arenas and big party players. E.R. Kaiser paints a picture of local party politics in the late 1800s:
Politics played a big part in the life of this town years ago. Campaigns were hot, and there was always a big celebration afterwards. ... Votes used to be bought -- that is before the secret ballot was adopted. Some sold 'em pretty cheap. I remember one old fellow who sold out to one party for a dollar -- then sold out to the other for the same price.