GETTING THE BEST RATES FROM SHIPPERS

FROM:  U.S. DEPARTMENT OF DEFENSEMilitary vehicles at Fort Hood, Texas are loaded onto DODX and commercial flat cars for transport to locations within the United States. DOD photo
Branch Helps DOD Shippers Get Best Rates
By Mitch Chandran
Military Surface Deployment and Distribution Command

SCOTT AIR FORCE BASE, Ill., Sept. 7, 2012 - Military Surface Deployment and Distribution Command's special requirements branch here is a one-stop shop for finding the right rate and transportation mode for Defense Department shippers who need to move specialized and large volume cargo domestically.

The branch -- part of the command's strategic business directorate -- can help DOD shippers with special shipping requirements to find cost-efficient transportation solutions.

It specializes in arranging transportation for oversized, overweight and volume cargo movements.

Dora Elias and her team of 11 transportation experts partner with commercial truck, rail, barge and pipeline carriers daily on behalf of shippers to secure special rates for agencies such as Defense Contract Management Agency, Tank-automotive and Armaments Command and Defense Logistics Agency, as well as the Federal Emergency Management Agency and the White House Communications Agency, among others.

"As an example," Elias said, "Defense Contract Management Agency would come to us with a volume move of a few dozen mine-resistant, ambush-protected vehicles. We, in turn, have the avenues and would find the best domestic rates to accommodate their move, which in the long run helps them save money."

Richard Cody, the branch's lead traffic management specialist, said the process for shippers is simple. "A shipper calls us and gives us their requirements – delivery date, weight, dimensions, volume, etc.," he explained. "We'll draw up the request letters and send them to various carriers, detailing a shipper's requirements, to obtain their rates. Once we get responses back, we'll offer our recommendations back to the shippers and go from there."

Elias said the branch is exploring more commercial rail options to offer shippers.

"So far, within the last five months, our branch has helped DOD shippers save $4.6 million by using rail for a majority of domestic movements," she said. "We deal with a lot of the volume move requests, and across the board savings really add up quick. If more organizations come to us for help with their transportation needs, I'm confident we would realize even more cost-savings."

The branch also can help local transportation offices to help themselves in meeting customer requirements, Elias said, and is challenging some industry partners to set more competitive rates.

Though commercial freight cars are always an option to consider in moving cargo, branch officials said, the industry does have weight and size limitations. When DOD shipping requirements exceed commercial freight car limits, they added, Military Surface Deployment and Distribution Command has an in-house solution.

The command's Defense Freight Railway Interchange Fleet comprises of more than 2,000 DODX-marked flat and special purpose railcars of varying length and weight capacities to accommodate most cargo the department needs to move. The fleet is made up of chemical tank, refrigerated and box cars, along with heavy duty flat cars boasting a weight capacity of up to 300 tons.

"Owning this rail fleet provides DOD with immediate accessibility for moving volume and overweight cargo," said George Gounley, chief of the command's rail fleet management branch.

In July, the special requirements branch was involved in arranging transportation for a large volume of oversized cargo: Bradley fighting vehicles and M1 Abrams tanks, shipped from Fort Hood, Texas, to multiple locations around the country.

For this mission, the command used both commercial and DODX rail cars to move all the vehicles. Renee Roper, transportation assistant for the Fort Hood transportation office, worked through the special requirements branch to arrange this movement.

"It makes more sense any time we can get two huge vehicles onto one railcar versus one vehicle per truck," Roper said. "Arranging the transportation for all these vehicles is very easy for us. We simply fill out the paperwork with the details, send it to SDDC, then they pretty much arrange the rest and make it work. It's really painless for us."

The streamlined shipper's request process, she added, allows her to devote more time to other aspects of her job.

"As long as we can find out our shipper's requirements a little in advance, then we can start scheduling transportation to meet their needs," Elias said. "Also, we can set up long-term options and provide consistent rates to our customers."

ISAF NEWS FROM AFGHANISTAN FOR SEPTEMBER 10, 2012

Photo:  Afghanistan.  Credit:  U.S. Marines. 
FROM:  U.S. DEPARTMENT OF DEFENSECombined Force Kills Insurgents in Laghman ProvinceCompiled from International Security Assistance Force Joint Command News Releases

WASHINGTON, Sept. 10, 2012 - A combined Afghan and coalition security force killed several armed insurgents during an operation to arrest a Taliban attack commander in the Alisheng district of Afghanistan's Laghman province today, military officials reported.

The insurgents were killed by return fire after they fired on the security force as it cleared the Taliban commander's suspected compound and secured the area.

The security force detained several suspected insurgents in the operation.

Also today, a combined force in Ghazni province's Waghaz district detained several suspected insurgents during an operation to arrest a Taliban leader who is believed to be responsible for transporting and equipping foreign insurgents for attacks against Afghan and coalition forces.

In operations yesterday:

-- A combined security force in the Kandahar district of Afghanistan's Kandahar province arrested a Taliban attack coordinator who is suspected of planning and directing multiple attacks throughout central Kandahar and is believed to have also plotted several assassination attempts against Afghan officials. At the time of his arrest, officials said, he was believed to be planning an imminent suicide attack against Afghan security forces. The security force also detained another suspected insurgent in the operation.

-- A combined force in Helmand province's Now Zad district detained numerous suspected insurgents and more than 25 pounds of illegal narcotics during an operation to arrest a Taliban leader who is believed to be responsible for equipping insurgents with mortars and heavy weapons for attacks against Afghan and coalition security forces.

-- Afghan and coalition forces in Laghman province's Alisheng district killed numerous armed insurgents during a security operation to arrest a Taliban leader. During the operation, Afghan and coalition forces identified multiple insurgents armed with assault rifles and a heavy machine gun maneuvering near their position. After ensuring that no civilians were in the area, the security force engaged the armed insurgents with a precision airstrike. A post-strike assessment determined no civilian property was damaged and no civilians were harmed.

In Sept. 8 operations:

-- Afghan and coalition security forces detained a suspected suicide attack facilitator in Nangarhar province's Jalalabad district. At the time of his arrest, he was believed to be involved in planning an imminent suicide-bomb attack in the region.

-- In Helmand province's Nahr-e Saraj district, security combined force arrested a Taliban improvised explosive device cell leader who is suspected of directing attacks against Afghan and coalition convoys. In the weeks prior to his arrest, the Taliban IED cell leader is believed to have conducted an attack that wounded several coalition security force members.

-- A combined force found and destroyed a Taliban weapons cache and detained several suspected insurgents in Sar-e Pul province's Sar-e Pul district. The cache included assault rifles and grenades, explosives, ammunition and bomb components.

-- In the Kunduz district of Kunduz province, security combined force detained several suspected insurgents during an operation to arrest an Islamic Movement of Uzbekistan facilitator suspected of providing money, ammunition and explosives to insurgents.

In other news, an Afghan special police unit and coalition forces recovered narcotics, weapons and explosives, including more than 500 pounds of heroin and 600 kilograms of opium, during a three-day operation that began Sept. 6 in Helmand province's Washir district.

During the operation, the combined force came under small-arms attack and killed several insurgents with return fire. Afterward, the combined force found pressure plate bombs and components, homemade explosives, rocket-propelled grenades, small arms and ammunition.

U.S. ATTORNEY GENERAL'S MESSAGE ON THE DEFENDING CHILDHOOD INITIATIVE

FROM: U.S. DEPARTMENT OF JUSTICE
A Message from the Attorney General on the Defending Childhood Initiative
September 4th, 2012 Posted by

Since the launch of the Defending Childhood Initiative in 2010 the Justice Department has been working with leading researchers to take an in-depth look at the problem of children exposed to violence. What we have learned has been a wake-up call, and warning bell, for all of us. We found that the majority of our kids – more than 60 percent – have been exposed to crime, abuse, and violence — many in their own homes. Ten percent of children in the United States have suffered some form of abuse or neglect; one in sixteen has been victimized sexually. And both direct and indirect exposure to violence is having a profound negative impact on the mental and emotional development of young people across the country.
I am happy to tell you that we have now, through the work of the Attorney General’s National Task Force on Children Exposed to Violence, reached an important milestone in the fight to prevent and reduce children’s exposure to violence in the United States.

Over the last year, the task force has traveled the country, listening to practitioners, policymakers, academics, concerned citizens, and victims. Its goal was to find out how violence and abuse are affecting our kids and our communities. The task force has now completed its fact-finding phase and is compiling a report to be issued late this fall, 2012. The report will be a blueprint for actions we can take to prevent children’s exposure to violence and mitigate its effects.

The task force heard personal testimony from 65 people from 27 states and the District of Columbia. These included survivors of violence, young people, social service providers, medical personnel, researchers, practitioners, advocates, tribal and local officials, private foundation representatives, and community residents. The four public hearings were held in Baltimore, Albuquerque, Miami and Detroit and the three listening sessions in Anchorage, Oakland and Joint Base Lewis-McChord outside Tacoma, WA. The variety of sites gave the task force members the big picture of violence in America. They learned that violence is more than an urban problem; it is pervasive throughout our nation. And they learned that in rural and tribal areas the damage is often compounded by the difficulty of getting resources for victims.

The problem of children’s exposure to violence is an urgent one, one we can’t afford to ignore. Nor is it an issue the Department of Justice – or any one agency or organization – can take on alone. It will take all of us, working together. And with the momentum we’ve generated through our Defending Childhood Initiative, the information and insights we’ve gained through the task force, and the tremendous support and leadership shown by everyone here, I know we will find a way to make America safer for our children.

A MARINE'S COMMUNICATION SKILLS AT CAMP LEATHERNECK AFGHANISTAN

 FROM:  U.S. DEPARTMENT OF DEFENSE By Cpl. Ed Galo
Regimental Combat Team 6
CAMP LEATHERNECK, Afghanistan , Sept. 7, 2012 - Standing over six feet tall, Lance Cpl. Justin Nobles can look pretty intimidating. But anyone who spends a few minutes talking to him quickly finds a soft-spoken guy with a country accent.
Nobles, a radio technician assigned to Regimental Combat Team 6 here, said he grew up living mostly with his father, who worked long hours to support his son. The Marine, from Petal, Miss., said is how he learned to work hard himself.
"I've always looked up to my father," Nobles said. "He always worked shift work, ever since I can remember. He would sometimes work 12- to 18-hour shifts to provide for me."
While his father worked, Nobles said, he spent time with his grandparents.
"They were like a second set of parents," he added. "My grandfather is a real great man - he even started the school system where I [grew up]. He definitely taught me how to be a man."
While Nobles was very family-oriented, he admits he made the wrong friends for a while. He said it took a near-death experience to make him consider the Marine Corps.
"Where I come from, people either do the right thing or the wrong thing," he said. "I got kicked out of school several times; I just couldn't get my head on straight. I was making some bad choices and some bad friends. It felt like a bad streak a mile wide."
Things changed one day, Nobles said, while he was relaxing in a canoe on a river near his hometown. Suddenly, a boat in front of him got stuck and the two vessels collided. Nobles' canoe flipped upside down and he was pinned underwater while the canoe was wedged against the boat.
"I just thought to myself 'Well, this is it, this is how it's going to end,'" he said.
Nobles said as his life flashed before him, he realized he hadn't done much with it. He said he felt God was giving him a wake-up call.
Nobles managed to get his footing and stand up underwater, he recounted, pushing the canoe out of the way and dislodging it from the boat.
"I really felt like if I died then, I wouldn't have done anything with my life," he said. "That next day I went to the Marine recruiter's office."
Nobles said he chose the Marine Corps over the other services because of a cousin who fought in Desert Storm.
"I just had so much respect for him growing up that I guess it just translated into respect for the Marine Corps," he said. "Once you get the mindset that you want to be a Marine, settling for anything else isn't something you want to do."
"I honestly didn't choose my [military occupational specialty]," Nobles said. "I thought I was coming in as infantry. I didn't even know the Marine Corps had a job like this."
Considering he didn't get the job he wanted, Nobles said, he couldn't have gotten a better one.
"I love fixing all these radios; it's just like a big puzzle and you have to figure out which piece is missing or broken," he said with a smile while updating the software on some radios. "My job is almost like being a redneck. Rednecks fix everything that's supposed to be broken, you know."
Nobles said one of his fondest memories is of when he went to Forward Operating Base Delhi to fix a radio. When he arrived, he said, he was told to rest because he had arrived late at night. But Nobles had a broken radio and a mission to accomplish.
"That particular one had been broken since August of 2011," Nobles said. "(Third Battalion, 3rd Marines), (3rd Battalion, 5th Marines) and RCT-5 all tried to fix it, but no one could. I fixed it in five hours. I was worried there for a minute, because I thought I wasn't going to be able to fix it."
Watching Nobles on the job, it's easy to see his work ethic.
"It's really just a pride thing," he said. "There's no sense in doing something half (way). It's all about being a man and taking pride in what you do. That's why I try so hard to learn new things about my MOS and try and better myself."

EXPORT-IMPORT BANK FINANCES U.A.E. POWER PLANT FOR $2 BILLION

FROM:  U.S. EXPORT-IMPORT BANK
Ex-Im Approves $2 Billion in Financing for Nuclear Power Plant in U.A.E.;
Project will Support 5,000 U.S. Jobs in 17 States
Washington, D.C. – In a decision that will support thousands of American jobs, the board of the Export-Import Bank of the United States (Ex-Im Bank) has authorized a $2 billion direct loan to the Barakah One Company of the United Arab Emirates (U.A.E.) to underwrite the export of American equipment and service-expertise for the construction of a nuclear power plant in the Emirate of Abu Dhabi, U.A.E.

According to estimates derived from U.S. Census Bureau statistics, the line of credit will support approximately 5,000 American jobs across 17 states.

The transaction will finance the construction of the first nuclear power plant on the Arabian Peninsula, which upon completion will number among the the largest nuclear-generating facilities in the world. Additionally, the loan ranks as Ex-Im Bank’s largest transaction in the U.A.E. to date and counts as Ex-Im Bank’s first greenfield nuclear-plant financing since the late 1990s.

"The 5,000 American jobs figure speaks volumes about the importance of the transaction to the U.S. economy," said Ex-Im Bank Chairman and President Fred P. Hochberg. "But in addition to bolstering American jobs, Ex-Im Bank will make history by backing the construction of the first nuclear power plant on the Arabian Peninsula."

The National Security Council and the Departments of State and Energy all support the transaction. Moreover, the U.S. and U.A.E. co-signed "U.S. – U.A.E. 123 Agreement for Peaceful Civilian Nuclear Energy Cooperation" in 2009 and the "Arrangement Between the Nuclear Regulatory Commission of the U.S. and the Federal Authority for Nuclear Regulation of the United Arab Emirates For the Exchange of Technical Information and Cooperation in Nuclear Safety and Security Matters" in 2010.

Barakah One Company plans to erect four nuclear reactor power-generating units on a coastal strip along the Arabian Gulf approximately 220 kilometers from the city of Abu Dhabi, a site chosen in light of seismic, socio-economic, and environmental factors. The reactors, supplied by the Korea Electric Power Corporation (KEPCO) and based on the state-of-the-art APR 1400 design, will come online at one-year intervals effective 2017 and yield an aggregate capacity of 5,600 megawatts gross electricity.

Westinghouse Electric Company LLC, a Pittsburgh, Pa.-based group company of Toshiba Corporation, is the largest exporter involved in the transaction and will provide the reactor coolant pumps, reactor components, controls, engineering services, and training. Employing approximately 9,000 people in the United States, the company retails fuel, technology, plant design, and equipment to customers in the nuclear power industry. Westinghouse nuclear power plants are currently under construction in China and the United States, among others.

"Westinghouse is delighted that the financing for Emirates Nuclear Energy Corporation four-unit Barakah project has been approved by the Bank’s Board of Directors, and we remain dedicated to ensuring an effective implementation of the project and related loan," said Ric Perez, the president and chief operating officer of Westinghouse Electric Company. "This work will create and sustain U.S. jobs in California, Connecticut, New Hampshire, Ohio, Pennsylvania, South Carolina, Texas and other states home to Westinghouse sub-suppliers. Within Westinghouse alone, the Barakah project will allow us to maintain about 600 U.S. jobs. In addition, the Bank’s support will sustain hundreds of well-paying jobs at Westinghouse’s U.S. sub-suppliers and indirect jobs in the service industry."

Ex-Im Bank, in conjunction with various U.S. and U.A.E. governmental agencies, has conducted a detailed and extensive risk assessment of the project. The U.A.E. invited the Integrated Regulatory Review Service of the International Atomic Energy Agency (IAEA) to examine the nation’s nuclear regulatory framework. Likewise, the Federal Authority for Nuclear Regulation of the U.A.E. established an internal task force to address the safety implications and lessons-learned of the Fukushima accident and to establish a process of outreach to the IAEA and other nuclear regulatory bodies throughout the world.

Along the same lines, the U.A.E. has entered into a number of important treaties and conventions pertaining to the nuclear sector and has signed bilateral agreements on the same subject with the U.S., Korea, France, and Japan, among others.


As of the end of FY 2011, the U.A.E. accounted for approximately $3.7 billion of the Bank’s worldwide credit exposure, and in the same year the Bank approved a total of $415 million in authorizations to support American exports bound for the country.

U.S.-SLOVENIA RELATIONS

Map Credit:  U.S State Department.
FROM:  U.S. STATE DEPARTMENT
The United States established diplomatic relations with Slovenia in 1992 following its independence from Yugoslavia. The United States and Slovenia work together actively on a number of fronts and have developed strong, cooperative relations on a broad range of bilateral, regional, and global issues. Slovenia is an important partner in advancing the shared goal of regional political and economic stability. The United States supported Slovenia's entrance into the North Atlantic Treaty Organization (NATO) and other Euro-Atlantic agreements and institutions.

The two countries worked closely to resolve succession issues stemming from the breakup of Yugoslavia. Slovenia provided invaluable assistance to the United States and NATO by facilitating the deployment of peacekeeping forces to Bosnia after the conclusion of the 1995 Dayton accords. With strong U.S. support, Slovenia has developed the International Trust Fund as the demining instrument of choice in the Balkans and has expanded operations to include other areas.

The United States works with the Slovenian military to promote greater cooperation and interoperability with NATO forces. Slovenia’s military personnel work alongside U.S. and international forces on stabilization and reconstruction efforts around the globe. Slovenia has deployed troops in Afghanistan, Kosovo, Bosnia and Herzegovina, Lebanon, and Somalia. Slovenia’s peacekeeping troops and contributions to international security operations help bolster stability specifically in the Western Balkans, but also strengthen common defense against transnational terrorism more broadly.

U.S. Assistance to Slovenia

U.S. security assistance seeks to help Slovenia maintain its position as a positive and stabilizing influence in southeastern Europe, and to help its forces to further modernize as Slovenia qualitatively increases its participation in NATO missions further abroad. Earlier assistance to promote the development of democratic institutions and a market economy was phased out as Slovenia achieved its EU status.

Bilateral Economic Relations

Slovenia is a member of the European Union (EU). The United States has worked to develop bilateral trade and investment with Slovenia, although U.S. investments in Slovenia have been modest. U.S. companies looking to do business in Slovenia face a challenging environment, particularly if they are interested in selling goods and services to the government. The public procurement process, although compliant with most EU regulations and international treaties, has been the focus of bilateral efforts to improve transparency and establish stronger regulations. The United States and Slovenia have signed a reciprocal taxation treaty. Slovenia participates in the Visa Waiver Program, which allows nationals of participating countries to travel to the United States for certain business or tourism purposes for stays of 90 days or less without obtaining a visa.

Slovenia's Membership in International Organizations

Slovenia and the United States belong to a number of the same international organizations, including the United Nations, North Atlantic Treaty Organization, Euro-Atlantic Partnership Council, Organization for Security and Cooperation in Europe, Organization for Economic Cooperation and Development, International Monetary Fund, World Bank, and World Trade Organization. Slovenia also is an observer to the Organization of American States.

SEC CHARGES COMPANY AND SENIOR OFFICERS WITH SECURITIES FRAUD

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
SEC Charges Massachusetts-Based Corporation and Senior Officers in $26 Million Fraudulent Securities Offering
On September 10, 2012, the Securities and Exchange Commission filed an enforcement action in federal court in Boston charging Massachusetts-based Bio Defense Corporation and others for their roles in a fraudulent offering of unregistered Bio Defense securities. The defendants are charged with defrauding investors through various misrepresentations and schemes while raising at least $26 million in investor funds.

In addition to Bio Defense, the Commission’s complaint charges Michael Lu of Lexington, Massachusetts, the founder and former CEO and Chairman of Bio Defense; Jonathan Morrone of Newton, Massachusetts, a former Senior Executive Vice President of Bio Defense; Z. Paul Jurberg of Brookline, Massachusetts, a senior officer of Bio Defense and most recently a Senior Vice President of Sales and Marketing; Anthony Orth of Tustin, California, a former Vice President of Marketing for Bio Defense; and Brett Hamburger of Delray Beach, Florida, a consultant to Bio Defense who raised investor funds for the company. The Commission also named May’s International Corporation, an entity controlled by Michael Lu, as a relief defendant based on its receipt of investor funds.

According to the Commission’s complaint, filed in the United States District Court for the District of Massachusetts, Bio Defense, which purports to develop, manufacture and sell a machine for combating the use of dangerous biological agents through the mails, and its principals began engaging in unregistered offers and sales of securities to investors in the United States by at least 2004 and, after attracting the attention of various domestic state regulators in 2008, began utilizing "boiler room" firms to assist in selling shares of Bio Defense securities to overseas investors primarily in the United Kingdom.

The Commission’s complaint alleges that, while making unregistered offers and sales of securities to US investors from at least 2004 through August 2008, Lu, Morrone, and Jurberg made false claims to investors that Bio Defense was not paying financial compensation to its employees and officers. The complaint further alleges that these individuals gave potential investors the false impression that Bio Defense preserved its cash assets by having employees who worked for no, or very little, pay, suggesting that these employees were working solely or primarily for "sweat equity" shares, which might later become valuable when the company became profitable or underwent an initial public offering of stock. In fact, Bio Defense’s largest expense during those years was the money it paid to Lu, Morrone, and Jurberg and other employees from funds raised from investors; in 2004 alone, Bio Defense paid approximately $1 million in compensation to its officers and employees.

The Commission’s complaint further alleges that, as Bio Defense began raising money overseas in August 2008, the defendants transformed the company into a deceptive and fraudulent device designed to enrich its principals while also paying as much as 75% of investor proceeds as commissions to its overseas boiler room fundraisers. From August 2008 through approximately July 2010, Bio Defense’s most substantial source of cash generation and most significant expense was not manufacturing and selling machines, but instead was its securities promotion and sales activities. Bio Defense and its representatives did not tell investors that 75% of funds received from them would be going straight to boiler room operators.

The Commission alleges that all defendants violated Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder; that Bio Defense, Lu, Morrone, Jurberg and Orth violated Sections 5(a) and 5(c) of the Securities Act; and that Lu, Morrone, Jurberg, Hamburger and Orth violated Section 15(a)(1) of the Exchange Act. The Commission also alleges, in the alternative, that Lu and Morrone are liable under Section 20(a) of the Exchange Act as control persons of Bio Defense for Bio Defense’s violations of Securities Act Section 17(a) and Exchange Act Section 10(b) and Rule 10b-5 thereunder. The SEC seeks in its action permanent injunctions, disgorgement plus prejudgment interest, civil penalties, and, against Lu, Morrone, Jurberg and Orth, officer and director bars.

The Commission acknowledges the assistance of the Massachusetts Securities Division, the UK Financial Services Authority and the City of London Police in this matter.

SCOTTS MIRACLE-GRO COMPANY TO PAY $4 MILLION FINE FOR FIFRA VIOLATIONS

Photo Credit:  Wikimedia

FROM:  U.S. DEPARTMENT OF JUSTICE

Friday, September 7, 2012

Scotts Miracle-Gro Will Pay $12.5 Million in Criminal Fines and Civil Penalties for Violations of Federal Pesticide Laws

 

The Scotts Miracle-Gro Company, a producer of pesticides for commercial and consumer lawn and garden uses, was sentenced today in federal district court in Columbus, Ohio, to pay a $4 million fine and perform community service for eleven criminal violations of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), which governs the manufacture, distribution, and sale of pesticides. Scotts pleaded guilty in February 2012 to illegally applying insecticides to its wild bird food products that are toxic to birds, falsifying pesticide registration documents, distributing pesticides with misleading and unapproved labels and distributing unregistered pesticides. This is the largest criminal penalty under FIFRA to date.

 

In a separate civil agreement with the U.S. Environmental Protection Agency (EPA), Scotts agreed to pay more than $6 million in penalties and spend $2 million on environmental projects under a settlement that resolves additional civil pesticide violations . The violations include distributing or selling unregistered, canceled or misbranded pesticides, including products with inadequate warnings or cautions. This is the largest civil settlement under FIFRA to date.

 

“As the world’s largest marketer of residential use pesticides, Scotts has a special obligation to make certain that it observes the laws governing the sale and use of its products. For having failed to do so, Scotts has been sentenced to pay the largest fine in the history of FIFRA enforcement,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. “The Department of Justice will continue to work with EPA to assure that pesticides applied in homes and on lawns and food are sold and used in compliance with the laws intended to assure their safety.”

 

“The misuse or mislabeling of pesticide products can cause serious illness in humans and be toxic to wildlife,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s sentence and unprecedented civil settlement hold Scotts accountable for widespread company noncompliance with pesticide laws, which put products into the hands of consumers without the proper authorization or warning labels.”

 

In the plea agreement, Scotts admitted that it applied the pesticides Actellic 5E and Storcide II to its bird food products even though EPA had prohibited this use. Scotts had done so to protect its bird foods from insect infestation during storage. Scotts admitted that it used these pesticides contrary to EPA directives and in spite of the warning label appearing on all Storicide II containers stating, “Storcide II is extremely toxic to fish and toxic to birds and other wildlife.” Scotts sold this illegally treated bird food for two years after it began marketing its bird food line and for six months after employees specifically warned Scotts management of the dangers of these pesticides. By the time it voluntarily recalled these products in March 2008, Scotts had sold more than 70 million units of bird food illegally treated with pesticide that is toxic to birds.

 

Scotts also pleaded guilty to submitting false documents to EPA and to state regulatory agencies in an effort to deceive them into believing that numerous pesticides were registered with EPA when in fact they were not. The company also pleaded guilty to having illegally sold the unregistered pesticides and to marketing pesticides bearing labels containing false and misleading claims not approved by EPA. The falsified documents submitted to EPA and states were attributed to a federal product manager at Scotts.

 

In addition to the $4 million criminal fine, Scotts will contribute $500,000 to organizations that protect bird habitat, including the Ohio Audubon’s Important Bird Area Program, the Ohio Department of Natural Resources’ Urban Forestry Program, the Columbus Metro-Parks Bird Habitat Enhancement Program, the Cornell University Ornithology Laboratory, and The Nature Conservancy of Ohio to support the protection of bird populations and habitats through conservation, research, and education.

 

At the time the criminal violations were discovered, EPA also began a civil investigation that uncovered numerous civil violations spanning five years. Scotts’ FIFRA civil violations included the nationwide distribution or sale of unregistered, canceled or misbranded pesticides, including products with inadequate warnings or cautions. As a result, EPA issued more than 40 Stop Sale, Use or Removal Orders to Scotts to address more than 100 pesticide products.

In addition to the $6 million civil penalty, Scotts will complete environmental projects, valued at $2 million, to acquire, restore and protect 300 acres of land to prevent runoff of agricultural chemicals into nearby waterways.

 

The criminal case was investigated by EPA’s Criminal Investigation Division and the Environmental Enforcement Unit of the Ohio Attorney General’s Office, Bureau of Criminal Identification & Investigation. It was prosecuted by Senior Trial Attorney Jeremy F. Korzenik of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division, by Michael J. McClary, EPA Criminal Enforcement Counsel and Special Assistant U.S. Attorney and by Assistant U.S. Attorney J. Michael Marous.

 

The civil case was investigated by U.S. EPA Region 5’s Land and Chemicals Divisionand Office of Regional Counsel, and the U.S. EPA Headquarters Office of Civil Enforcement, assisted by the Office of Pesticides Program.

ITALY BY NIGHT

FROM:  NASA
The country of Italy is visible running diagonally southward from the horizon across the center of the frame, with the night lights of Rome and Naples being visible on the coast near the center. Sardinia and Corsica are just above left center of the photo, and Sicily is at lower left. The Adriatic Sea is on the other side of Italy, and beyond it to the east and north can be seen parts of several other European nations.

Image Credit: NASA

MILD WINTERS BRING ON RISE IN TICK-BORNE DISEASES

Photo:  Ticks.  Credit:  National Science foundation 

FROM: NATIONAL SCIENCE FOUNDATION
Precautions for Tick-Borne Disease Extend "Beyond Lyme"

September 7, 2012
This year's mild winter and early spring were a bonanza for tick populations in the eastern United States. Reports of tick-borne disease rose fast.

While Lyme disease is the most common tick-borne disease in the Northeast and Upper Midwest, new research results emphasize that it is not the greatest cause for concern in most Southeastern states.

The findings are published today in a paper in the journal Zoonoses and Public Health.

The majority of human-biting ticks in the North--members of the blacklegged tick species--cause Lyme disease, but these same ticks do not commonly bite humans south of mid-Virginia.

Biologist Graham Hickling of the University of Tennessee, co-author of the paper, says many patients in Southeastern states, who become sick from a tick-bite, assume they have Lyme disease, but the odds of that being the case are low.

"Ticks in the eastern U.S. collectively carry more than a dozen agents that can cause human disease," says Hickling.

"Here in Tennessee we regularly collect lone star ticks that test positive for Ehrlichia, [a tick-borne bacterial infection]. Lone stars are an aggressive species that account for most of the human bites that we see in this region. So ehrlichiosis has to be a big concern, yet most people have never heard of it."

In contrast, says Hickling, there have been no confirmed reports to date of the Lyme disease pathogen among the sparse populations of blacklegged ticks found in Tennessee.

"The Southeast is dominated by different tick species than the ones that attack humans in the North," says Ellen Stromdahl, an entomologist at the U.S. Army Public Health Command and lead author of the paper.

"The lone star tick is by far the most abundant tick in the Southeast, and which species of tick bites you is critical because different ticks carry different diseases. In the Southeast you are unlikely to be bitten by the blacklegged ticks that spread Lyme disease," Stromdahl says.

Most bites in the Southeast are from the tick species that spread spotted fever rickettsiosis and ehrlichiosis, but not Lyme disease.

A complicating factor for public health officials is that tick species are on the move, as wildlife populations, forest habitats and weather patterns change across the continent.

This spring the Tennessee Department of Health, for example, reported a 500 percent increase in tick-borne rickettsiosis.

"Identifying health risks in the face of changing climates will be critical in coming years," says Sam Scheiner, National Science Foundation program director for the joint NSF-National Institutes of Health Ecology and Evolution of Infectious Diseases (EEID) program, which funds Hickling's research.

At NSF, the EEID program is co-funded by the Directorates for Biological Sciences and Geosciences.

"This study will inform public health officials about what diseases are found in which areas," says Scheiner, "so they can minimize human health problems."

Hickling's work is also in collaboration with scientist Jean Tsao of Michigan State University and is part of an EEID project to identify the ecological factors leading to distributions of tick species and pathogens--in particular, where the Lyme disease tick and pathogen are found.

Lyme-infected blacklegged ticks are expanding south through Virginia, and lone star ticks are moving north, the scientists have found.

The bite of the lone star tick can create a bulls-eye rash that appears like that of Lyme disease, but the rash isn't caused by the Lyme bacteria.

The scientists say that this almost certainly leads to misdiagnosis of some patients in mid-Atlantic states, where both tick species are common.

The best way to distinguish Lyme from other tick-borne diseases is to be vigilant for tick bites, and whenever possible save any tick that manages to bite you, the biologists recommend. Store the tick in your freezer or in a vial of alcohol so it can be identified if you become ill.

In the Northeast, Lyme disease awareness campaigns have focused public attention on the nymphal blacklegged tick--which is responsible for most disease transmission and which is tinier than the adult form.

While nymphal blacklegged ticks and nymphal lone star ticks--which also bite humans--can be distinguished, the two are often confused by the public.

In one study, 13 of 20 patients reporting tick bites to physicians were given antibiotics on the assumption that they were at risk for Lyme disease, yet 53 of the 54 ticks removed from those same patients were lone star ticks, which do not spread Lyme disease.

"Where you live determines which tick species is likely to bite you," says Tsao, "and therefore which diseases you're most likely to contract."

The biologists say they are happy that recent treatment recommendations have begun to emphasize the importance of considering the tick species and its infection status as part of the diagnostic process.

Their advice: Stay open-minded about which tick-borne diseases are most common in your area--and save the tick that bites you.

SECRETARY OF LABOR HILDA L. SOLIS COMMENTS ON UNEMPLOYMENT AUGUST NUMBERS

FROM: U.S. DEPARTMENT OF LABOR
Statement by Secretary of Labor Hilda L. Solis on August employment numbers

WASHINGTON — Secretary of Labor Hilda L. Solis issued the following statement on the August 2012 Employment Situation report released today:

"Our nation's labor market added 96,000 nonfarm payroll jobs in August, while the unemployment rate dropped to 8.1 percent.

"When President Obama came into office, the economy was in a free fall, credit markets were frozen, and our nation was bleeding hundreds of thousands of jobs a month. We've now added back 4.6 million private sector jobs over the last 30 months, including nearly 2 million in the last year alone.

"An economic crisis that was decades in the making will not be solved overnight, but our recovery remains on a stable trajectory of positive job growth. Smart and steady wins the race.

"It's worth noting that, in the 38 months since the end of the recession in June 2009, we've created three times as many private sector jobs as we had at the same point following the 2001 recession.

"To continue our path forward, Congress must reject the voices who seek to gut funding for education and skills training at this pivotal moment for our nation. We have to make a college education affordable for every student willing to work hard, invest in skills training so Americans workers can compete in a 21st century economy and prevent a tax increase on middle-class families. We know that an enduring recovery must be built from the middle out and the bottom up —not the top down. That's the key to securing our long-term prosperity."

PENTAGON OFFICIAL SAYS WORK BEING DONE TO CURB INSIDER THREATS

Photo:  George Little.  Credit:  DOD. 
FROM: U.S. DEPARTMENT OF DEFENSE
ISAF, Afghans Working to Curb Insider Threats, Spokesman Says
By Karen Parrish
American Forces Press Service

WASHINGTON, Sept. 4, 2012 - U.S. special operations forces have paused training for 1,000 new Afghan local police recruits, but partnered operations between coalition forces and established members of the local police remain ongoing, Pentagon Press Secretary George Little said here today.

Little said the training pause will allow an "intensive re-vetting process" for all 16,000 members of local police units across Afghanistan. Insider attacks against coalition forces have risen sharply in recent months, and the press secretary noted the Taliban see local police forces as both a threat and an opportunity.

Little told reporters that during a weekly briefing earlier today between Defense Secretary Leon E. Panetta and Marine Corps Gen. John R. Allen, commander of U.S. and coalition forces in Afghanistan, the general "reported ... that insurgents are alarmed by the ALP, whose legitimacy and local intelligence networks make it exceedingly difficult for the insurgency to maintain or establish a foothold in local communities."

The added strength local police units bring to small villages, Little said, is one reason why the Taliban would like to exploit the local police. "And it is why, in part, it is so important that the vetting process be sound for all members of the ALP," he added.

ISAF officials have described the local police program as a way to augment the national police force at the village level. Local police members have authority only within their own villages, officials have said.

"While the ALP is not part of the [Afghan national security forces], we believe they are critical to helping provide for security for the Afghan people," Little told reporters.

The press secretary emphasized that training continues unabated for Afghanistan's army and national police forces.

"The goal remains to train and field 352,000 [Afghan national security forces] by October, and we remain on track to reach that milestone," he said.

NATO's International Security Assistance Force is working with the Afghan government to thwart insider threats and to develop a joint protection plan, Little added. Everyone involved takes the issue of insider threats very seriously, he said, noting ISAF issued a tactical directive in March requiring specific and tailored force protection measures.

"Personnel at increased risk from an insider attack were required to undertake specific close-quarter combat and active shooter training," Little said. "All commands ... are required to conduct refresher training. This is particularly for mentors and others who routinely work side by side with Afghans."

The directive also required additional in-theater cultural awareness training, and instructed coalition force units to create safe zones inside Afghan security force compounds where they can defend themselves if necessary, the press secretary continued. More recently, he added, there's been a great deal of focus on small-unit leadership in counterintelligence matters, "that will help identify potential attackers early on."

Little acknowledged the risk of insider threats will never diminish to zero.

"This is something that we have to ... constantly be on the lookout for. This is a war zone. ... But what we can try to do is put as much effort into identifying potential attackers as early on as possible, to try to stop insider attacks," he said.

WORKERS IN SPACE

FROM:  NASA
NASA astronaut Sunita Williams, Expedition 32 flight engineer, appears to touch the bright sun during the mission’s third session of extravehicular activity (EVA) on Sept. 5, 2012. During the six-hour, 28-minute spacewalk, Williams and Japan Aerospace Exploration Agency astronaut Aki Hoshide (visible in the reflections of Williams’ helmet visor), flight engineer, completed the installation of a Main Bus Switching Unit (MBSU) that was hampered by a possible misalignment and damaged threads where a bolt must be placed. They also installed a camera on the International Space Station’s robotic arm, Canadarm2. Image Credit: NASA

THOUGHTS ON THE GAMES BY 2012 U.S. PARALYMPICS CHIEF

FROM: U.S. DEPARTMENT OF DEFENSE, 2012 PARALYMPIC GAMES
Charlie Huebner, far left, chief of U.S. Paralympics, and Brian Loeffler, center, coach for the U.S. men's Paralympics swim team, share their thoughts on the 2012 Paralympic Games during a news conference in London featuring Navy Lt. Bradley Snyder, second from left, at the 2012 London Paralympic Games, Sept. 5, 2012. DOD photo by Army Sgt. 1st Class Tyrone C. Marshall Jr.
 
U.S. Paralympics Chief Lauds Athletes, London Games

By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

LONDON, Sept. 8, 2012 - The Paralympic movement continues to grow as competition improves and opportunities to compete increase, providing fundamental growth to this burgeoning movement, the U.S. Paralympics chief said here Sept. 5.

Charlie Huebner, chief of the U.S. Paralympics Committee, praised the American team's athletes for their performance during a news conference honoring Navy Lt. Bradley Snyder, one of three active duty service members, participating in the 2012 Paralympic Games.

"We're very proud of the American team, and we're winning some medals ... and we have more opportunities," he said. "And we're also very proud of the 20 members of the armed forces and veterans that are on our team this year.

"They're great ambassadors for our nation, obviously, with our friends in the United Kingdom, we have a pretty unique partnership," Huebner said. "And they're also excelling ... in competition. I'm just very pleased with how things are going."

The U.S. Paralympics chief recognized Great Britain for its hospitality and organization of an "incredible environment for both the Olympic Games and these Paralympic Games."

"I just wanted to compliment the London Organizing Committee, [and] the people of the United Kingdom," Huebner said. "These games are fabulous, as you can see."

Huebner reaffirmed the U.S. Olympic Committee's commitment to enhancing Paralympic opportunities for those with disabilities.

"The reason this movement exists is [that] it's very personal for us," he said. "We have been asked to play a leadership role by the Department of Veteran Affairs, Department of Defense and congressional leaders in the United States. The U.S. Olympic Committee's expertise in physical disabilities and in multiple sports made it an obvious choice to lead the charge of enhancing the program, he added.

"There's a great need in the United States, not just for injured service members and veterans, but for kids with physical disabilities to have local community programming to be able to simply participate in physical activity," he said. "In 2008, we started a community-based program, now in 183 communities, called the Paralympic Sport Club Program," Huebner said. "We're committing to growing the availability of programs in the United States."

The U.S. Paralympics chief also noted the importance of including service members and veterans, like Snyder, in the U.S. Paralympics program.

"The military and veteran piece is critical us, and we have great partnerships with our government, the Department of Veteran Affairs and the Department of Defense," Huebner said.

Snyder has won Paralympic medals, he added, and the U.S. Paralympics Committee wants to succeed in competition while also providing opportunities for people with disabilities.

"We want to get more people involved in physical activity and sports, ... but we also want to be successful in the games," he said.

U.S.-RUSSIA SIGN MEMORANDUM OF UNDERSTANDING FOR COOPERATION IN ANTARTICA

Map:  Antartica.  Credit:  CIA World Factbook.
FROM: U.S. DEPARTMENT OF STATE, ANTARTICA

U.S.-Russia Cooperation on Antarctica, Interregional Areas, and Beringia

Fact Sheet
Office of the Spokesperson
Washington, DC
September 8, 2012

U.S. Secretary of State Hillary Rodham Clinton and Russian Foreign Minister Sergey Lavrov met during the Asia Pacific Economic Cooperation Summit in Vladivostok, Russia on September 8, 2012 to sign a Memorandum of Understanding for Cooperation in Antarctica and to issue Joint Statements on Pursuing a Transboundary Area of Shared Beringian Heritage and on Enhancing Interregional Cooperation. The United States and Russia conduct some of the most extensive and diverse scientific activities in Antarctica, and are among the original architects and signatories of the 1959 Antarctic Treaty.

Antarctic Cooperation
The Memorandum of Understanding for Cooperation in Antarctica will:
Strengthen cooperation and significantly improve coordination of bilateral policies, science, logistics, search and rescue, training, and public outreach in Antarctica.
Reinforce cooperative activities already taking place. For the first time, the United States and Russia are jointly conducting inspections of foreign facilities in Antarctica, which will take place in two phases in 2012.
Interregional Cooperation
The Joint Statement on Interregional Cooperation will:
Encourage closer state and municipal ties, such as sister-city initiatives, with the goal of stimulating increased U.S.-Russia trade and investment links at the local level.
Facilitate exchanges on state and municipal governance, paying close attention to e-government issues as well as the development of projects, including infrastructure development, along with plans to exchange delegations from local governments.
Foster business ties between our two countries at the sub-national level, particularly between the Pacific Northwest and the Russian Far East, where investments like ExxonMobil’s on Sakhalin Island, as well as our increased U.S. agricultural exports, are already making headway in our economic relationship.
Beringia
The Joint Statement on Pursuing a Transboundary Area of Shared Beringian Heritage represents the first time the United States and Russia have stated their intention to formally link National Parks in Alaska - the Bering Land Bridge Natural Preserve and the Cape Krusenstern National Monument - with the soon-to-be-designated Beringia National Park in Chukhotka, Russia.

The linkage will:
Facilitate conservation of flora, fauna, and the natural ecosystem.
Preserve kinship ties, traditional lifestyle, and languages of the indigenous peoples of the region.
Enhance collaboration on conservation, management, scientific research, and effective monitoring of the environment.
Formalize the symbolic linkage of our two continents, governments, and people.

SEC CHARGES COMPANY AND FORMER EXECS WITH DEFRAUDING INVESTORS

Photo:  Solar Panels.  Credit:  U.S. Navy

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., Sept. 6, 2012 – The Securities and Exchange Commission today charged a solar panel manufacturer headquartered in South San Francisco and three of its former executives with defrauding investors by concealing the transfer of nearly half of the ownership stake in its Chinese subsidiary to three individuals in China who manage the subsidiary.

The SEC alleges that Worldwide Energy and Manufacturing USA Inc. (WEMU) raised nearly $9 million from U.S. investors in early 2010 in order to expand its solar subsidiary based in Rugao City, China. The Chinese subsidiary represented the bulk of WEMU’s operations and generated 77 percent of the company’s revenue the previous year. In a power point presentation at road shows and in other communications with investors, the company’s founder and chairman of the board Jimmy Wang and the company’s president Jeffrey Watson touted the solar subsidiary’s success as the primary growth area for the company and represented that the company fully owned its Chinese subsidiary. They neglected to tell investors that WEMU actually was set to transfer 49 percent of the equity in the Chinese subsidiary to its three managers. This critical ownership deal was not disclosed in the company’s filings or offering documents. Later, Wang and his wife Mindy Wang, who served as the company’s vice president, secretary and treasurer, went so far as to sign additional agreements to effectuate the transfer that were concealed from WEMU’s board and auditors.

WEMU, the Wangs, and Watson agreed to settle the SEC’s charges.

"WEMU and its executives deliberately withheld the fact that its investors would not have a full ownership stake in its largest and most profitable subsidiary," said Marc J. Fagel, Director of the SEC’s San Francisco Regional Office. "The decreased ownership interest in the subsidiary would be a key piece of information for anyone investing in a company with significant offshore operations."

According to the SEC’s complaint filed in federal court in San Francisco, because the company’s future success depended on the technical expertise and sales connections of the three Chinese solar managers, WEMU entered into a stock option agreement with them in January 2008 that included consideration for a future change in organizational structure. The Chinese subsidiary grew dramatically over the next year and quickly became WEMU’s most profitable subsidiary. In February 2009, Jimmy Wang signed two key agreements on behalf of WEMU to share 49 percent of the Chinese subsidiary’s net profits with the solar managers and to transfer 49 percent of the subsidiary’s equity to them in February 2010. Failure to disclose these agreements resulted in WEMU filing false and misleading quarterly reports for the first three quarters of 2009 and first quarter of 2010.

According to the SEC’s complaint, WEMU management began planning a capital raise in the fall of 2009 so it could expand its solar operations by building a factory in China to manufacture solar panels. When Jimmy Wang and Watson went out to raise money from investors in early 2010, there was no mention of the agreement to transfer an ownership stake. Instead, in order to avoid informing investors about the profit sharing arrangement and contractual obligation to transfer equity to the Chinese subsidiary’s managers, Jimmy and Mindy Wang traveled to China in March 2010 to secretly sign a set of side agreements that allowed the solar managers to begin the registration process with the Chinese government to effectuate the transfer. Both Jimmy and Mindy Wang concealed these side agreements from WEMU’s auditors, other executives, and its board of directors. The company’s failure to report the transfer of the solar subsidiary resulted in a material overstatement of net income to WEMU’s reported financial statements.

Without admitting or denying the SEC’s allegations, WEMU agreed to pay a $100,000 penalty and be permanently enjoined from future violations of antifraud, reporting, books and records and internal controls provisions of the federal securities laws. The Wangs and Watson consented to permanent bars from serving as officers or directors of a public company and agreed to be permanently enjoined from future violations of the antifraud and other provisions of the federal securities laws. Mindy Wang and Watson each agreed to pay penalties of $50,000. The terms of the settlement with Jimmy Wang reflect credit given to him by the Commission for his substantial assistance in the investigation and the fact that he has entered into a cooperation agreement to assist in the ongoing investigation.

The SEC’s investigation was conducted by staff accountant Adrienne F. Miller, staff attorney Alice L. Jensen, and Assistant Regional Director Jina L. Choi in the SEC’s San Francisco Regional Office.

The SEC acknowledges the assistance of the U.S. Department of Labor in this matter.

MAJOR DREDGEING PROJECT ANNOUNCED FOR WAUKEGAN HARBOR

Photo:  Chicago Dock.  Credit:  Wikimedia.

FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY

EPA, Illinois and Local Officials Announce Major Dredging Project at Waukegan Harbor CHICAGO – (Sept. 6, 2012) The U.S. Environmental Protection Agency, the State of Illinois and Waukegan officials joined forces today to kick off a Superfund dredging project needed to remove the Waukegan Harbor "Area of Concern" (AOC) from a list of toxic hot spots identified in the 1987 Great Lakes Water Quality Agreement.

"Today, Waukegan Harbor is going from what was once called 'the world's worst PCB mess' to one of our best coastal turnaround stories," said Cameron Davis, senior advisor to U.S. EPA Administrator Lisa P. Jackson and founding co-chair of the Waukegan Citizens' Advisory Group in the early 1990s. "Last year, federal agencies announced they were prioritizing the Waukegan Harbor cleanup and this year we are making good on that commitment."


Enacted by Congress in 1980, Superfund is a federal law that was designed to clean up sites contaminated with hazardous substances. EPA's $48 million Superfund dredging project is an important step toward the cleanup of the Waukegan Harbor, one of four cleanup projects associated with the Outboard Marine Corp. (OMC) Superfund site.

EPA will remove approximately 175,000 cubic yards of PCB-contaminated sediment from the harbor. Dredging will begin later this month and is expected to be finished by next summer, a total of about 120 days.

Waukegan Harbor, the only AOC in Illinois, is one of 30 remaining AOCs in the U.S. In 2011, EPA Administrator Lisa P. Jackson targeted Waukegan as one of nine priority AOCs under the Great Lakes Restoration Initiative. The Administrator committed to finishing the cleanup of Waukegan Harbor by 2014. Since the United States and Canada identified the list of AOCs in 1987, only one on the U.S. side has been delisted.

"Illinois EPA is pleased to partner with U.S. EPA and the City of Waukegan in moving forward on this project that is a key step toward reaching the goal of Waukegan Harbor no longer being Illinois’ only designated Area of Concern on Lake Michigan," said Interim Illinois EPA Director John J. Kim.

"Waukegan Harbor has come a long way since contaminated sediment was first discovered here in 1975," said Senator Dick Durbin. "Upon this project’s completion, Waukegan’s fish will be healthier and its water cleaner, ramping up the community’s attractiveness as a place to live. The Great Lakes are one our nation’s greatest natural treasures and I am proud to have supported this effort to clean up Lake Michigan’s shoreline. Thanks to the State of Illinois and the Environmental Protection Agency for their efforts to ensure the waters around the harbor can support fish and wildlife for years to come."

"Today we mark the beginning of the end of a cleanup decades in the making," said Senator Mark Kirk. "Cleaning up Waukegan Harbor has been one of my top priorities since before I came to Congress in 2001, and we could not be here without the leadership of Cameron Davis and the members of the Waukegan Citizens Advisory Group. As co-chair of the Senate Great Lakes Task Force, I am fully committed to seeing this effort through its completion to ensure that Waukegan can transform the harbor into a powerful economic engine in northern Illinois."

"As Lake County’s gateway to Lake Michigan, a clean Waukegan Harbor is critical for our region’s commerce, environmental quality and recreation." said U.S. Representative Robert J. Dold. "The cleanup will save jobs, increase local property values, and leave a cleaner environment for future generations. I am proud to have been part of making this happen."

"When all is said and done the future of this community is greatly enhanced by the cleanup of the harbor and surrounding industrial facilities," said Waukegan Mayor Robert Sobanjian, Jr. "Once the process is completed, potential investors will be able to see past the old misperceptions of this community as a distressed blue collar community and see the great potential that the City of Waukegan has always held."

EPA placed the OMC site on its National Priorities List of Superfund sites in 1983 and has previously conducted cleanup work at this site. The OMC outboard-boat-motor manufacturing plant polluted Waukegan Harbor with PCBs.

In February 2009, President Obama proposed the Great Lakes Restoration Initiative, the largest investment in the Great Lakes in two decades. Since then, EPA has provided approximately $2 million in GRLI funding for habitat restoration projects and fish monitoring at the Waukegan Harbor AOC.

SEC CHARGES ASSET MANAGER WITH LYING TO INVESTORS

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION

SEC Charges Asset Manager Lied to Investors, Hid Major Losses While Boasting Remarkable Performance During Financial Crisis

09/07/2012 03:35 PM EDT
FOR IMMEDIATE RELEASE
2012-185

Washington, D.C., Sept. 7, 2012 – The Securities and Exchange Commission today announced an emergency enforcement action against an asset manager who has boasted remarkable investment success throughout the global financial crisis while allegedly exaggerating the value of the assets he manages and concealing major losses from investors.

The SEC alleges that Nikolai Battoo claims to manage $1.5 billion on behalf of investors around the world, including at least $100 million for U.S.-based investors. But contrary to Battoo’s proclaimed track record of exceptional risk-adjusted returns for his investors, he actually suffered major losses in 2008 due to his investments in the Bernard Madoff Ponzi scheme and a failed derivative investment program. Rather than admit the losses to investors, Battoo has been overstating the value of his investments in a variety of ways. By boasting benchmark-beating returns, he has continued to attract new investors. However, during the past several months, investors have requested redemptions on their investments with Battoo. Instead of paying them, Battoo has provided a series of excuses ranging from the MF Global collapse to others placing a hold on investors’ money due to government investigations.

In U.S. District Court for the Northern District of Illinois this week, the SEC sought and obtained a freeze of U.S.-based assets belonging to Battoo and two of his companies – BC Capital Group S.A. based in Panama and BC Capital Group Limited based in Hong Kong – in order to prevent additional harm to U.S. investors. In addition to Battoo and his companies, the SEC has charged Tracy Lee Sunderlage – an unregistered broker-dealer who was banned from the industry in a previous SEC enforcement action – for his involvement with Battoo’s investment program.

“Battoo attracted quite a following of investors by proclaiming his investments withstood the test of the financial crisis, but reality seems to have finally caught up with him,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “Now, Battoo is offering investors one excuse after another for holding their money hostage.”

According to the SEC’s complaint, Battoo’s financial empire is an amorphous syndicate of funds, entities, and affiliates. Battoo manages significant assets for companies that sell investment products to U.S. investors. Battoo also has investment proceeds channeled to him by a network of U.S.-based investment advisers. Battoo has created for clients individualized “portfolios” that he manages under a brand name Private International Wealth Management (PIWM). These portfolios consist of holdings in several hedge funds he manages, holdings in other hedge funds, and other investments.

The SEC’s complaint alleges that Battoo pitches himself as a highly successful alternative asset manager with a track record unblemished by the global financial crisis of 2008. Battoo hyped his purported success at a “due diligence conference” that he and Sunderlage sponsored for existing and prospective investors at the Four Seasons Hotel in Las Vegas in January 2009. A promotional material for that conference boasted, “How is it that PIWM-I can produce positive results or significantly reduce market losses when nearly everyone else is losing 35 to 50%?”

According to the SEC’s complaint, Battoo arranged for “asset verifications” in 2009 to reassure clients that their money was safe and secure following the market collapse. The asset verifications, however, contained false and backdated information. For example, they identify investments in at least seven hedge funds that Battoo did not manage. Battoo’s actual investments in these hedge funds amounted to about $9 million while his asset verifications falsely stated the investments to be worth approximately $33 million. Moreover, these asset verifications improperly included backdated investments that also inflated the value of the PIWM portfolios..

The SEC’s complaint alleges that while Battoo claimed success, he actually sustained particularly heavy losses in 2008. First, he was terminated as an investment adviser to the master fund of a large international bank, which terminated him from a “fund linked certificate” program through which Battoo-managed hedge funds collectively invested about $138 million. After Battoo’s termination, the net asset value of the hedge fund managed for the bank plummeted by nearly 50 percent, and Battoo’s losses on the fund linked certificates exceeded $100 million. The other major loss suffered by Battoo’s asset management business later that year flowed from Bernie Madoff’s Ponzi scheme, in which several Battoo-managed hedge funds were heavily invested. However, following Madoff’s arrest, Battoo assured his investors that the Madoff fraud had only a nominal or minimal impact on the portfolios. However, several Battoo-managed portfolios held substantial investments in hedge funds that fed into the Madoff scheme. In fact, Battoo had borrowed money to amplify the size of his Madoff investments. Battoo similarly concealed from investors the losses stemming from the fund linked certificates. Without knowledge of these substantial losses, investors have collectively invested tens of millions of dollars with Battoo since 2009.

According to the SEC’s complaint, once investors increasingly began seeking redemptions late last year, Battoo offered several false explanations for not paying them. Originally, Battoo claimed that the significant exposure of some of his investment portfolios to the MF Global liquidation prevented him from redeeming invesmtents. However, Battoo’s actual exposure to MF Global is only a small fraction of what he has claimed. More recently, Battoo has said that certain counterparties had frozen the assets he manages based on investigations by U.S. government agencies, and that his attorneys were negotiating a “release” with the SEC. Prior to filing this complaint, Battoo’s assets were not frozen and he was not negotiating any release with the SEC.

The SEC alleges that Sunderlage – who was charged and banned from the industry by the SEC for participating in an offering fraud in 1986 (SEC v. Sunderlage, et al., 86 C 6101 (N.D. Ill.)) – received commissions from the sale of investments and also received management fees for acting as the designated investment adviser to numerous client trusts that invested with Battoo. Sunderlage thus acted as an unregistered broker-dealer and investment adviser in violation of his industry bar.

The SEC alleges that Battoo and his companies violated Sections 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 10b-5 thereunder, and Section 206(4) of the Investment Advisers Act of 1940 (Advisers Act) and Rule 206(4)-8 thereunder. The SEC alleges that Sunderlage violated Section 15(a)(1) and 15(b)(6)(B)(i) of the Exchange Act and Section 203(f) of the Advisers Act.

The SEC’s investigation, which is ongoing, has been conducted in the Chicago Regional Office by John D. Mitchell, Brian D. Fagel, Pesach Glaser and John T. Brodersen under the leadership of John J. Sikora, Jr. The SEC's litigation will be led by Jonathan S. Polish, Daniel J. Hayes, and Eric M. Phillips.

The SEC acknowledges the cooperation and assistance of the U.S. Commodity Futures Trading Commission (CFTC), which has filed charges against Battoo in a parallel action.

Weekly Address: Coming Together to Remember September 11th | The White House

Weekly Address: Coming Together to Remember September 11th | The White House

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY

120904-N-FE728-113 DETROIT (Sept. 4, 2012) The US Brig Niagara arrives at Renaissance Pier during the Navy'Äôs commemoration of the bicentennial of the War of 1812 in Detroit. This celebration coincides with Detroit Navy Week, one of 15 signature events planned across America in 2012. Niagara served as the relief flagship for Oliver Hazard Perry in the Battle of Lake Erie during the War of 1812. (U.S. Navy photo by Mass Communication Specialist 1st Class Todd A. Stafford/Released)

　

　
120902-N-KT462-122 PEARL HARBOR (Sept. 2, 2012) Sailors standby to perform a rifle volley during the 67th anniversary of the end of World War II aboard the Battleship Missouri Memorial. The ceremony marked 67 years since Gen. Douglas MacArthur and Fleet Adm. Chester Nimitz, along with other U.S. and Allied officers, accepted the unconditional surrender of the Japanese, ending World War II. (U.S. Navy photo by Mass Communication Specialist 2nd Class Jon Dasbach/Released)