U.S.-CHINA PARTICIPATED IN NAVAL EXERCISE TO CURB PIRACY

FROM: U.S. NAVY
120917-N-YF306-390 GULF OF ADEN (Sept. 17, 2012) A visit, board, search and seizure (VBSS) team member from the Chinese People's Liberation Army (Navy) frigate Yi Yang (FF 548) boards a rigid-hull inflatable boat after completing a bilateral counter-piracy exercise aboard the guided-missile destroyer USS Winston S. Churchill (DDG 81). The focus of the exercise was American and Chinese naval cooperation in detecting, boarding, and searching suspected pirated vessels. Winston S. Churchill is deployed to the U.S. 5th Fleet area of responsibility conducting maritime security operations, theater security cooperation efforts and support missions for Operation Enduring Freedom. (U.S. Navy photo by Mass Communication Specialist 2nd Class Aaron Chase/Released)

　

US and China Team Up for Counter-Piracy Exercise
By USS Winston S. Churchill (DDG 81) Public Affairs

AT SEA (NNS) -- Guided-missile destroyer USS Winston S. Churchill (DDG 81) and other U.S. Navy assets participated in a counter-piracy exercise with elements of the Chinese People's Liberation Army (Navy) PLA(N) near the Horn of Africa, Sept. 17.

The exercise, the first bilateral counter-piracy exercise ever conducted between the U.S. and China, paired Winston S. Churchill with PLA(N) frigate Yi Yang (FF 548) to conduct a combined visit, board, search, and seizure (VBSS) boarding.

The focus was on bilateral interoperability in detecting, boarding and searching suspected vessels as well as the ability of both Chinese and American naval assets to respond to pirated vessels.

"Piracy is a threat to the freedom of the seas, economic security, and the safety of mariners from all nations. Bilateral exercises such as this demonstrate the cooperative will of the international community and increases proficiency of multinational forces in confronting the threat," said Cmdr. Chris D. Stone, Winston S. Churchill's commanding officer. "We have common regional and global security challenges, and we are able to jointly address those by training together."

VBSS teams from both ships performed the boarding on Winston S. Churchill, which was simulating a pirated vessel. Executing the boarding side-by-side as a combined U.S.-Chinese team, the team successfully searched the vessel and provided assistance to the role-playing mariners.

Participants felt that the training was meaningful, providing a unique opportunity to operate alongside one another.

"It was exciting to interact with the Chinese Sailors and cooperate in a critical environment," said Lt. j.g. Edward R. Kellum, boarding officer for Winston S. Churchill's VBSS team. "Anytime we work with a foreign military, it adds a different perspective to how we operate. However, to collaborate with the Chinese in an anti-piracy framework is a rare opportunity and a real achievement for maritime security."

Following the exercise, leaders from both navies discussed the elements of the boarding in order to learn how to better operate together in the future.

U.S and Chinese leaders expressed how important and beneficial the training was, both in terms of building cooperative ties and development of techniques to counter piracy.

"We're appreciative of the opportunity to train with other nations to establish ties that will allow us to work together to face the piracy threat," said Stone. "As fellow mariners we have great admiration for our Chinese counterparts who are sailing alongside us and other coalition partners to keep the sea lanes safe."

Winston S. Churchill is currently deployed to the U.S. 5th Fleet area of responsibility conducting maritime security operations, theater security cooperation efforts, and support missions for Operation Enduring Freedom.

THE GREEN INVESTMENT PONZI SCHEME

Photo:  NYSE Shortly After 1929 Crash.  Credit:  Wikimedia
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

SEC Obtains Final Judgments Ordering More Than $135 Million in Monetary Relief in "Green" Investment Ponzi Scheme
The Securities and Exchange Commission announced that on September 13, 2012, the Honorable Christine M. Arguello, U.S. District Court Judge for the District of Colorado, entered final judgments against Troy B. Wragg, Amanda E. Knorr, Speed of Wealth, LLC, Wayde M. McKelvy, and Donna M. McKelvy ordering disgorgement, prejudgment interest, and civil penalties totaling more than $135 million. The Court ordered Wragg and Knorr to pay $37,031,035.36 in disgorgement plus interest of $3,713,772.06 jointly and severally with Mantria Corporation and a civil penalty of $37,031,035.36 each; Speed of Wealth and Wayde McKelvy to pay $6,273,632.78 in disgorgement plus interest of $869,141.87 jointly and severally and a civil penalty of $6,273,632.78 each; and Donna McKelvy to pay $429,731.84 in disgorgement plus interest of $55,172.93 and a civil penalty of $214,865.92.

The parties were originally charged in a Complaint filed on November 17, 2009. The Complaint alleged that Wayde and Donna McKelvy, through their Denver-based company Speed of Wealth LLC, as well as Mantria executives Wragg and Knorr, raised funds for numerous Mantria "green" initiatives such as a supposed "carbon negative" housing community in rural Tennessee and a "biochar" charcoal substitute made from organic waste. The SEC alleged that Mantria’s "green" representations were fraudulent and that investors were falsely promised enormous returns on their investments ranging from 17 percent to "hundreds of percent" annually. Mantria’s environmental initiatives did not generate any significant cash, and any returns paid to investors were funded almost exclusively from other investors’ funds. In addition, none of the relevant offerings were registered with the Commission, nor were any of the defendants registered as a broker-dealer or associated with a registered broker-dealer.

Upon the Commission’s motion, the Court entered a temporary restraining order on November 16, 2009, and an order of preliminary injunction on December 2, 2009. After entry of the September 13, 2012 final judgments, permanent injunctions have now been entered against all Defendants.

U.S. STATE DEPARTMENT DAILY PRESS BRIEFING

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Violent TV and kids’ bad nights

Violent TV and kids’ bad nights

RECENT U.S. NAVY PHOTOS

 

FROM: U.S. NAVY
120916-N-SH953-389 ORCHARD PARK, N.Y. (Sept. 16, 2012) Retired Navy SEAL Jim Woods, a member of the U.S. Navy parachute demonstration team, The Leap Frogs, lands as the USS Constitution Honor Guard marches onto the field during the opening ceremonies of the Bills and Chiefs NFL football game during Buffalo Navy Week 2012. Buffalo Navy Week is one of 15 signature events planned across America in 2012. The weeklong event commemorates the bicentennial of the War of 1812, hosting service members from the U.S. Navy, Marine Corps, Coast Guard and Royal Canadian Navy. (U.S. Navy photo by Mass Communication Specialist 2nd Class Kathryn E. Macdonald/Released)

The amphibious assault ship USS Peleliu (LHA 5) pulls away from the pier for a scheduled deployment to the western Pacific region. U.S. Navy Photo by Mass Communication Specialist 1st Class Elizabeth Merriam (Released) 120917-N-BB534-184

SPACECRAFT LANDS IN KAZAKHSTAN

FROM: NASA

Expedition 32 Landing
The Soyuz TMA-04M spacecraft is seen as it lands with Expedition 32 Commander Gennady Padalka of Russia, NASA Flight Engineer Joe Acaba and Russian Flight Engineer Sergie Revin in a remote area near the town of Arkalyk, Kazakhstan, on Monday, September 17, 2012. Padalka, Acaba and Revin returned from five months onboard the International Space Station where they served as members of the Expedition 31 and 32 crews.
Photo Credit- NASA-Carla
Cioffi

EXPORT-IMPORT BANK BACKS AIRCRAFT SALE IN BRAZIL

Map Credit:  CIA World Factbook.

FROM: U.S. EXPORT-IMPORT BANK

Ex-Im Authorizes $900,000 in Export Insurance
to Back Texas Small Business’s Aircraft Sale in Brazil;
Supports 135 Jobs in Texas
Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) has authorized credit insurance to support the export by Air Tractor Inc. of nearly $900,000 worth of American-made crop-spraying aircraft to a biofuel and soybean grower in Brazil.

This Bank-supported export sale is the twentieth of approximately forty similar deals expected to benefit Air Tractor this year. The total body of export sales will support 135 American jobs in Olney, Texas, both in production and in sales management.

"We’re glad to see Air Tractor -a small business in Texas- winning this sale to Brazil, which is one of our nine key markets," said Ex-Im Bank Chairman and President Fred P. Hochberg. "This export transaction continues the long relationship we have had with Air Tractor that helped them dramatically grow their foreign sales while supporting American jobs."

Air Tractor employs 270 people to build its aircraft and custom equipment. Since 1972, the Air Tractor line has sold about 2,800 aircraft to buyers on six continents. Over the past 17 years, Air Tractor has utilized Ex-Im Bank’s medium-term insurance to export an estimated $70 million worth of its aircraft, primarily to small private-sector buyers in Argentina and Brazil. In 2009 and 2011, Air Tractor also obtained Bank-guaranteed working capital loans.

"The export finance products of Ex-Im Bank have been invaluable to Air Tractor in supporting our growth in the international market over the last 15 years," said David Ickert, chief financial officer for Air Tractor. "We continue to look to Ex-Im Bank for support as we expand our export sales in the future. The Bank’s products and hard-working employees are key to our export growth and job creation."

The financing will support the export of Air Tractor’s model AT-502B, a single-engine turbo prop aircraft outfitted with a 500-gallon hopper that can be utilized both to extinguish fires and to spray crops. The aircraft is specifically adapted to operational conditions in Brazil’s State of Mato Grosso.

Taua Biodiesel Ltda, headquartered in Nova Mutum, Brazil, purchased the medium-sized Air Tractor equipment for its agricultural operations. The Taua group produces biodiesel fuel, vegetable oil, and soybean meal on 40,000 acres now under cultivation. Taua plans to increase its operation to 100,000 hectares by 2015.

Ex-Im Bank concentrates market development efforts in Brazil because of that country’s massive and growing consumer population, which welcomes goods stamped "Made in USA." The Bank’s exposure in Brazil as of the end of fiscal year 2011 amounted to $2.7 billion.

JAPAN TO HAVE NEW ANTI-BALLISTIC MISSILE RADAR INSTALLATION



U.S. Defense Secretary Leon E. Panetta meets with Japanese Defense Minister Satoshi Morimoto in Tokyo, Sept. 17, 2012. DOD photo by Erin Kirk-Cuomo

FROM: U.S. DEPARTMENT OF DEFENSE

U.S., Japan Agree to Add Second Radar Installation
By Karen Parrish
American Forces Press Service

TOKYO, Sept. 17, 2012 - The United States and Japan have agreed to add a second U.S. anti-ballistic missile radar installation in Japan, Defense Secretary Leon E. Panetta announced here today.

During a news conference following separate meetings with Japanese Foreign Affairs Minister Koichiro Gemba and Defense Minister Satoshi Morimoto, Panetta and Morimoto both discussed the radar's significance.

The agreement "reflects our joint commitment to this alliance, and to promoting peace and security in the Asia-Pacific region," Panetta said.

A defense official traveling with PanettaTPY-2, will augment one previously set up in Shariki on the northern part of Honshu island. A team from the United States arrived in Japan this week to work with Japanese officials in determining a site for the new radar, the official added.

The official said the radar is not a defense against China, but rather against the growing ballistic missile threat North Korea poses to "the U.S. homeland as well as U.S. citizens, our deployed forces, allies and partners in the region."

"U.S. missile defense and Japan are focused on deterring North Korean aggression," the official said, "and if deterrence fails, defending against the growing arsenal of North Korean ballistic missiles. North Korea has hundreds of ballistic missiles that can threaten our interests ... [as well as] other countries in the region."

The official said the land-based system will bolster regional security and allow flexibility in deploying ships equipped with the same radar, now stationed in the Asia-Pacific region, to other parts of the world as needed.

"The U.S. has been committed to the collective regional security of the Asia-Pacific region for decades, and to that end we cooperate with our partners on a broad range of capabilities, including missile defense," the official said.

According to a Missile Defense Agency fact sheet, the AN-TPY-2 is an X-band, high-resolution, phased-array radar designed specifically for ballistic missile defense, capable of tracking all classes of ballistic missiles and identifying small objects at long distances.

Used with the Ballistic Missile Defense System, the AN-TPY-2 acts as advanced "eyes" for the system, detecting ballistic missiles early in their flight and providing precise tracking information for the system's use.

EARTH SUSTAINABILITY

Photo:  Mountain Landscape.  Credit:  Wikimedia. 
FROM: NATIONAL SCIENCE FOUNDATION
Maintaining Earth's Sustainability: Scientists, Engineers, Educators Take Coordinated Approach National Science Foundation makes second set of awards in sustainability Research Coordination Networks program

September 17, 2012

Coordinating phosphorus research to create a sustainable food system; studying urban heat islands; and advancing social and environmental understanding of mountain landscapes are all topics of new grants totaling $5 million recently made through the National Science Foundation's (NSF) Science, Engineering and Education for Sustainability (SEES) portfolio.

The awards are through NSF's SEES-Research Coordination Networks (RCN) program.

Grants also include building a research network for promoting Arctic urban sustainability in Russia; multidisciplinary approaches to carbon capture, utilization and storage; creating an engineering research collaboratory for sustainable infrastructure in a changing climate; and developing an integrated network for social sustainability concepts, language and assessment.

"These collaborative projects address difficult challenges that threaten the sustainability of our country's natural resources and built environment," says Thomas Peterson, NSF assistant director for Engineering.

"With a sound base in science and engineering, sustainable development can benefit society, the economy and the environment over the long term."

SEES activities span the range of scientific domains at NSF.

SEES RCN awards are supported by NSF's Directorates for Biological Sciences; Computer & Information Science & Engineering; Education and Human Resources; Engineering; Geosciences; Mathematical & Physical Sciences; Social, Behavioral & Economic Sciences; Office of Cyberinfrastructure; Office of International Science and Engineering; and Office of Polar Programs.

These NSF directorates and offices support interdisciplinary research and education projects that will move society toward global sustainability; build new links among existing projects and partners; add new participants in sustainability research; and develop the workforce needed to understand and address the complex issues of environmental sustainability.

"An important metric of the success of a program like SEES RCN is the legacy it will leave long after the program has been completed," says Marge Cavanaugh, NSF acting assistant director for Geosciences.

"The interdisciplinary partnerships that SEES RCN projects will create, along with the broadly educated and creative students and young researchers they will produce, are just as important as the new processes and links that will be discovered."

Sustainability science and engineering goes beyond adaptation to and mitigation of environmental change. A sustainable world is one in which human needs are met without harm to the environment, and without sacrificing the ability of future generations to meet their needs in turn.

This formidable task requires understanding the integrated system of society and the natural world, along with the alterations humans are making on Earth, scientists, engineers and educators believe.

NSF's SEES activities are addressing this need by supporting interdisciplinary research and education leading to a better understanding of, predictive capability for, and solutions to environmental challenges.

The RCN program's goal is to advance a scientific field or create new directions in research and education. Groups of investigators coordinate their research, training and education activities across disciplinary, organizational, geographic and international boundaries.

The program fosters new collaborations, including international partnerships, and addresses interdisciplinary topics.

By linking U.S. and international scientists in research on sustainable cities, energy, water, engineering and manufacturing sustainability, and related subjects, SEES RCNs are creating new directions in sustainability science and engineering.

European Space Agency United Kingdom (EN) Update

European Space Agency United Kingdom (EN) Update

U.S. STATE DEPARTMENT DAILY PRESS BRIEFING

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U.S. ENERGY SECURITY

FROM: U.S. NAVY

120908-N-QY430-010 NORFOLK (Sept. 08, 2012) Adm. John C. Harvey, Jr. commander, U.S. Fleet Forces Command, left, greets U.S. Department of Agriculture Secretary Tom Vilsack during a tour of the guided-missile cruiser USS Monterey (CG 61). Secretary Vilsack made the visit to discuss efforts by the Departments of Agriculture and the Navy to strengthen energy security for our nation's military. (U.S. Navy photo by Mass Communication Specialist 1st Class Rafael Martie/Released)

USDA and DON Visit to USS Monterey Reinforces Commitment to Greater Energy Security
NORFOLK (NNS) -- U.S. Agriculture Secretary Tom Vilsack and Deputy Assistant Secretary of the Navy for Energy Tom Hicks toured the USS Monterey (CG 61) at Naval Station Norfolk Sept. 8, highlighting the commitment of both agencies to greater energy security for the nation's military.

During the tour, Vilsack and Hicks discussed the tremendous opportunities advanced biofuels hold for reducing America's dependence on foreign oil while creating more jobs in rural communities.

"Developing the next generation of advanced biofuels for our nation's military is both a national security issue and an economic issue," said Vilsack. "By utilizing renewable energy produced on American soil, our military forces will become less reliant on fuel that has to be transported long distances and often through choke points that can be disrupted during times of conflict.

"Meanwhile, a strong and diverse biofuels industry will support good-paying jobs in rural America that can't be shipped overseas," he continued. "Through this joint effort, USDA and the U.S. Navy have the opportunity to create a model for American energy security while ensuring the safety of our troops and the long term viability of our armed forces."

"Secretary Vilsack's leadership and the work carried out by USDA on alternative fuel is so critical to the Navy's efforts to address a critical military vulnerability: our reliance on foreign oil," stated U.S. Navy Secretary Ray Mabus. "I am grateful that he took the time today to tour USS Monterey and meet some of our Sailors. I am sure he came away as impressed with their professionalism and skill as I am always am."

This past July, the U.S. Navy completed a demonstration of the "Great Green Fleet" using a 50/50 blend of advanced hydroprocessed biofuel and conventional fuel to power helicopters, jets, a cruiser and two destroyers. The demonstration also incorporated technologies designed to enhance the combat capability of Navy warships, such as energy efficient solid state lighting, stern flaps and shipboard "smart voyage" planning decision aid software.

The July demonstration took place off the coast of Hawaii as part of the Rim of the Pacific Exercise (RIMPAC). Secretary Mabus observed operations, which included fueling helicopters and jets from the deck the USS Nimitz (CVN 68); completing arrested landings of aircraft onto a carrier, the first ever using biofuels; refueling a destroyer while underway; and air-to-air refueling.

"Today's event demonstrates our joint commitment to energy security and how the department is exploring ways to improve our combat capabilities." said Tom Hicks, deputy assistant secretary of the Navy for Energy. "We are excited about our partnership with the U.S. Department of Agriculture and U.S. Department of Energy to produce advanced biofuels for military and commercial use."

Navy, USDA and DOE recently announced an agreement that makes $30 million in funding available to support commercialization of "drop-in" biofuel substitutes for diesel and jet fuel through the Defense Production Act Title III (DPA). The DPA dates back to 1950 and has been used to support the industrialization of defense-critical domestic industries such as steel, aluminum, titanium, semiconductors, beryllium, and radiation-hardened electronics.

At the same time, DOE announced an additional $32 million to support research into advanced biofuel technologies that are in earlier stages of development.

SEC ALLEGES BROKERS CHURNED ACOUNTS FOR FEES

FROM: U.S. SECURITIES AND EXCHANGE COMMISSIOIN

Washington, D.C., Sept. 10, 2012 – The Securities and Exchange Commission today charged three former brokers at an Atlanta-based brokerage firm for "churning" the accounts of customers with conservative investment objectives, causing severe investor losses while the brokers collected handsome fees.

The SEC also charged the head supervisor at JP Turner & Company, Michael Bresner, as well as the firm’s president William Mello and the firm itself for compliance failures. JP Turner and Mello agreed to settle the SEC’s charges, while an administrative proceeding will continue against the three brokers and the supervisor.

Churning is a fraudulent practice in which brokers disregard the customer’s investment objectives and engage in excessive trading for the purpose of generating commissions and other revenue for themselves or their firms. The SEC’s Enforcement Division alleges that brokers Ralph Calabro, Jason Konner, and Dimitrios Koutsoubos engaged in churning while they worked at JP Turner. They collectively generated commissions, fees, and margin interest totaling approximately $845,000 while the defrauded customers suffered aggregate losses of approximately $2.7 million.

"Broker-dealers’ supervisory systems must provide customers with reasonable protection from churning and similar abuses. JP Turner’s supervisory systems failed to do that," said William P. Hicks, Associate Director of the SEC’s Atlanta Regional Office.

According to the SEC’s order instituting administrative proceedings against the three brokers and the supervisor, Calabro lives in Matawan, N.J. and Konner and Koutsoubos each live in Brooklyn, N.Y. They all work at different firms now. While at JP Turner, they collectively churned the accounts of seven customers with conservative investment objectives and low or moderate risk tolerances. The churning occurred between January 2008 and December 2009.

According to the SEC’s order, Bresner lives in Atlanta and is an executive vice president and the head of supervision at JP Turner. He is charged with failing to reasonably supervise Konner and Koutsoubos, who generated such high commissions for some of their churned customers that it triggered a requirement in the firm’s procedures requiring that Bresner personally review the underlying trading activity. However, Bresner failed to take appropriate action in response to the trading in these accounts despite several red flags.

Specifically, the SEC’s Enforcement Division alleges that Calabro, Konner, and Koutsoubos violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Bresner failed reasonably to supervise Konner and Koutsoubos with a view to preventing and detecting their violations.

The settled administrative order against JP Turner and Mello finds that they failed to implement adequate procedures to detect and prevent the fraudulent churning of customer accounts. Mello as president was ultimately responsible for establishing and implementing the firm’s supervisory policies and procedures designed to detect and prevent churning violations. Although JP Turner had a monitoring system to identify actively traded accounts, the system imposed few requirements and no meaningful guidance for supervisors to review these accounts and take meaningful action to investigate the trading activity.

In settling the SEC’s charges without admitting or denying the findings, JP Turner agreed to hire an independent consultant to review the firm’s supervisory procedures in order to prevent future violations. The SEC’s order censures JP Turner and requires payment of $200,000 in disgorgement (JP Turner’s approximate share of the commissions and fees generated by the fraudulent churning) plus $16,051 in prejudgment interest and a $200,000 penalty. The order suspends Mello from association in a supervisory capacity with a broker, dealer, or investment adviser for a period of five months and requires him to pay a $45,000 penalty.

The SEC’s investigation was conducted in its Atlanta Regional Office by staff attorneys Natalie M. Brunson and Song P. Brandon under the supervision of Assistant Regional Director Matthew F. McNamara. The SEC’s litigation will be led by Regional Trial Counsel M. Graham Loomis, senior trial counsels Edward G. Sullivan and W. Shawn Murnahan, and staff attorney Natalie Brunson. Assistant Regional Director Anthony D. Russell and securities compliance examiner Charlotte E. Moncrieff conducted the examination that led to the investigation.

U.S. NAVY PHOTOS FROM HISTORY

FROM:  U.S. NAVY
020103-N-3653A-001.JPG - USS George Washington (CVN 73) Jan. 3, 2002. - Snow covering the flight deck of the USS George Washington after more than eight inches fell in the Norfolk, Virginia area. U.S Navy photo by PH3 Summer M. Anderson. (Released)

011014-N-XXXXL-002 Honolulu, Hawaii (Oct. 24, 2001) -- The Japanese fishing vessel "Ehime Maru" is lifted from the ocean floor by the Rockwater 2 to a shallow-water recovery site off the coast of Honolulu. In this photo, the "Quest" electric work-class remotely operated vehicle (ROV) observes the wreckage. The Ehime Maru went down off the coast of Honolulu, Hawaii, after a collision at sea  with the submarine USS Greeneville (SSN 772). U.S. Navy Photo. (RELEASED)

SPACEDOCK

FROM:  NASA
Astronaut Ron Garan took this image during the spacewalk conducted on Tues., July 12, 2011. It shows the International Space Station with Space Shuttle Atlantis docked on the right and a Russian Soyuz on the far left. In the foreground is the Alpha Magnetic Spectrometer (AMS) experiment installed during the STS-134 mission.


AMS is a state-of-the-art particle physics detector designed to use the unique environment of space to advance knowledge of the universe and lead to the understanding of the universe's origin by searching for antimatter and dark matter, and measuring cosmic rays.

Image Credit: NASA

25TH ANIVERSARY OF NUCLEAR RISK REDUCTION CENTERS

Photo:  Little Boy.  Credit:  Wikimedia

FROM: U.S. STATE DEPARTMENT
25 Years of Enhanced Strategic Security Through the Nuclear Risk Reduction CentersMedia Note

Office of the Spokesman

Washington, DC

September 15, 2012

Today, the U.S. Department of State commemorates the 25th Anniversary of the creation of the Nuclear Risk Reduction Centers (NRRCs). Established under President Reagan and Soviet General Secretary Gorbachev with the purpose of opening a communications channel to reduce the risk of conflict, the Nuclear Risk Reduction Centers at the Department of State in Washington, D.C. and the Russian Ministry of Defense in Moscow operate twenty-four hours a day, seven days a week and are equipped with secure and reliable lines of direct communication to perform the critical mission of sustaining strategic security.

Over the years, the U.S. NRRC has expanded its role in bilateral and multilateral security and confidence building arrangements, supporting conventional treaties and agreements with a wide variety of foreign partners and international institutions.

Today, the U.S. NRRC exchanges thousands of time-sensitive notifications a year under a multitude of arms control treaties and agreements such as the New START Treaty and is a key resource for the promotion of transparency and stability that enhances confidence and directly contributes to our national security interests.

As we meet the security challenges of the 21st century, we will continue to support future arms control measures and explore new ways at strengthening modern confidence building through technical and innovative means.

ALLEGED FOREX FRAUD UNCOVERED

FROM: U.S. COMMODITY FUTURES TRADING COMMISSION

CFTC Charges Florida Resident William Jeffery Chandler with Forex Fraud and Misappropriation

Federal court enters emergency order freezing defendant’s assets and protecting books and records

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that on September 11, 2012, Judge James D. Whittemore of the U.S. District Court for the Middle District of Florida entered an emergency order freezing the assets of defendant William Jeffery Chandler of Ft Myers, Fla. The court’s order also prohibits Chandler from destroying or altering books and records. The judge set a hearing on the CFTC’s motion for a preliminary injunction for September 26, 2012.

The court’s order arises out of a civil enforcement action filed by the CFTC on September 10, 2012, charging Chandler with foreign currency (forex) fraud and misappropriation. Chandler has never been registered with the CFTC in any capacity, according to the complaint.

The CFTC complaint alleges that, since at least July 2010, and continuing to the present, Chandler has solicited at least six individuals to contribute at least $773,100 to a pooled account to trade off-exchange forex contracts in Chandler’s account at Dukascopy Bank SA, a Switzerland-domiciled bank. To entice prospective pool participants to invest, Chandler allegedly guaranteed a two percent to 12.5 percent monthly return on participants’ principal.

However, according to the complaint, Chandler’s Dukascopy Bank account was closed on or about July 15, 2011, due to changes in U.S. regulations. The Dukascopy Bank account was transferred to Alpari US LLC, a U.S.-based registered Retail Foreign Exchange Dealer, on August 8, 2011, according to the complaint. At that time, the pooled account allegedly had a balance of only $292.49, far less than the amount contributed by pool participants.

Chandler allegedly continues to solicit and receive funds from pool participants to trade in his Dukascopy Bank account, even after it had closed, and continues to represent to pool participants that their funds remain in the pool in his Dukascopy Bank account. Although Chandler has received requests from many pool participants to return their funds, he refuses to refund participant’s principal, instead asserting a litany of fabricated excuses, according to the complaint. Chandler has misappropriated the vast majority of the pool’s funds for his personal use, the complaint charges.

Furthermore, pool participants received statements from a purported accounting firm named A.R. Watkins; however, upon information and belief, A.R. Watkins is a fictitious entity controlled by Chandler, according to the complaint.

In its continuing litigation, the CFTC seeks civil monetary penalties, restitution, rescission, disgorgement of ill-gotten gains, trading and registration bans, and preliminary and permanent injunctions against further violations of the Commodity Exchange Act and CFTC regulations, as charged.

The CFTC appreciates the assistance of the Pasco County Sheriff’s Office.

CFTC Division of Enforcement staff responsible for this case are Jo Mettenburg, Jeff Le Riche, Stephen Turley, Rick Glaser, and Richard Wagner.

IMPROVING U.S. DEPARTMENT OF DEFENSE CONTRACTOR MANAGEMENT

Photo:  Alan F. Estevez.  Credit:  U.S. DOD.

FROM:  U.S. DEPARTMENT OF DEFENSE

DOD Pursues Improvement in Operational Contractor Management

By Amaani Lyle
American Forces Press Service

WASHINGTON, Sept. 12, 2012 - Efforts to improve management of civilian contractors performing critical mission support functions are creating a cultural shift in the way the military prepares for battle, senior Defense Department officials told the House Armed Services Committee today.

Alan F. Estevez, assistant secretary of defense for logistics and materiel readiness, and Marine Corps Brig. Gen. Craig C. Crenshaw, the Joint Staff's vice director of logistics, testified along with other experts at a hearing held to examine the Defense Department's planning and management of contractors on the battlefield.

Lessons learned in the combat theater over the last decade can optimize management and oversight of operational contract support in future operations, they said.

Estevez said that as the DOD has increasingly embraced operational contract support, he has seen a cultural shift in the way the military prepares for contingency operations.

"The lessons we have learned from recent operations are being incorporated and applied ... across all echelons of the department, including the military services and the combatant commands," he added.

Operational contract support capabilities and planning have become significant in the stand-up of joint contingencies and combatant commands, and the development and updates of policy and doctrine with an eye on increased visibility and accountability, Estevez told the House panel. Improvements in training and education in both the acquisition and nonacquisition workforce responsible for contingency contract management also are part of the program's evolution, he added.

As an example, Estevez cited a critical lesson learned following the nuclear reactor failure that resulted from the March 2011 earthquake and tsunami in Japan.

"[U.S.] Pacific Command established the Air Force as the lead service for contracting," Estevez said. "This meant that all forces deploying to Japan had a clear understanding of the contracting authority and would not be competing against each other for scarce resources."

To sustain these advances, Estevez added, DOD needs to maintain its focus, secure and solidify gains, and continue its momentum in implementing the operational contract support capability.

"To lose such capability now would be truly wasteful," he said.
Crenshaw agreed, explaining that the Defense Department began a "deliberate effort" in 2007 to significantly improve strategic operational contract support guidance.

"I am confident that ongoing efforts will ensure that we meet the warfighter's current and future needs while judiciously managing DOD resources and balancing risk," Crenshaw said.

The heart of the plan, the general said, involves closer links of contracts and contractors to operational effects to more rapidly and decisively achieve the joint force commander's intent.

"In the past decade, we have recognized that contractors leverage important support to our troops while advancing operation objectives," he said.

U.S.-BURUNDI RELATIONS

Map Credit:  U.S. State Department.
FROM: U.S. STATE DEPARTMENT

The United States established diplomatic relations with Burundi in 1962, following its independence from a Belgian-administered trusteeship. From 1993 to 2006, the country saw civil war driven by ethnic tensions. The 2000 Arusha Peace and Reconciliation Accords provided a negotiated settlement to the conflict. National elections in 2010 were judged by domestic and international observers to be free and fair. Democratic consolidation remains critical, as does the need to demonstrate peace dividends to the population. Burundi is one of the poorest countries in the world.

U.S. Government goals in Burundi are to help the people of Burundi realize a just and lasting peace based on democratic principles and sustainable economic development. The United States encourages political stability, ongoing democratic reforms, political openness, respect for human rights, and economic development. In the long term, the United States seeks to strengthen the process of internal reconciliation and democratization within all the states of the region to promote a stable, democratic community of nations that will work toward mutual social, economic, and security interests on the African continent. As the situation in Burundi normalizes, the United States seeks to facilitate its integration into regional and international markets, as a means to promote sustainable economic development.

U.S. Assistance to Burundi

U.S. foreign assistance aims to promote private sector-led economic growth, emphasizing agricultural production and trade (particularly within the East African Community Common Market); improve health care delivery; combat HIV/AIDS; reduce malnutrition in children under the age of 2 years; strengthen good governance and government effectiveness; and build the capacity of Burundi to maintain peace and security both at home and elsewhere in Africa. All development assistance programs seek to prioritize women and youth.

Bilateral Economic Relations

Burundi is eligible for preferential trade benefits under the African Growth and Opportunity Act. The United States has signed trade and investment framework agreements with the East African Community and with the Common Market for Eastern and Southern Africa. Burundi is a member of both regional organizations. U.S. exports to Burundi include iron and steel products, baking-related products, pharmaceutical products, wheat, and furniture and bedding. The primary import from Burundi to the United States is coffee.

Burundi's Membership in International Organizations

Burundi and the United States belong to a number of the same international organizations, including the United Nations, International Monetary Fund, World Bank, and World Trade Organization.

SEC. OF DEFENSE PANETTA'S GOALS DURING ASIAN TRIP

FROM: U.S. DEPARTMENT OF DEFENSE
U.S. Defense Secretary Leon E. Panetta gives an in-flight press briefing while flying to Tokyo, Sept. 15, 2012. Panetta is on an eight-day trip to meet with defense counterparts in Japan, China and New Zealand. DOD photo by Erin A. Kirk-Cuomo
Panetta Lists Goals for Asia Trip, Assesses Mideast
By Karen Parrish
American Forces Press Service

ABOARD A MILITARY AIRCRAFT, Sept. 16, 2012 - Defense Secretary Leon E Panetta yesterday told traveling reporters about the importance of the three countries he's going to visit: Japan, China and New Zealand.

This trip, Panetta said, offers "an opportunity to further advance our strategy of rebalancing towards the Asia-Pacific."

Panetta said the strategy calls for expanding the U.S. naval presence in the region, deepening military engagement with partners and allies, and establishing rotational troop deployments in areas throughout the Asia-Pacific as outlined in his speech at the Shangri-La dialogue in Singapore in June.

The U.S. Asia-Pacific strategy involves not just defense issues but diplomatic and economic concerns as well, he said.

"Secretary [of State Hillary Rodham] Clinton ... spent the last 10 days in the region," the secretary said. Panetta noted that U.S. Pacific Command's top officer, Navy Adm. Samuel J. Locklear III, was in China in June and that Deputy Defense Secretary Ashton B. Carter spent 10 days traveling in the Asia-Pacific region in July.

These visits, Panetta said, along with this current trip, bolster the U.S. position that rebalancing focus to the Asia-Pacific region ensures stability there.

The strategy "is really about maintaining and strengthening, not just our presence, but also ... a system of rules and norms and institutions in Asia that have brought decades of security and prosperity" that allowed many nations to thrive, Panetta said.

The U.S. alliance with Japan, the first stop on this trip, is a cornerstone of regional security, Panetta said. Topics to be discussed with Japanese leaders, such as Defense Minister Satoshi Morimoto, include ballistic missile defense, relocating some U.S. Marines now in Okinawa to Guam and others to another more remote site on the island, and the roles, missions and capabilities of Japan's Self Defense Forces, the secretary said.

The "realignment roadmap" for U.S. Marines in Japan is an issue that has been under discussion between the two countries for many years, he noted.

"We have worked with them closely ... and we were able to work out an agreement, and we are putting that into effect," Panetta said.

"Japan is making new investments for the 21st century, as are we," the secretary said. Japan's "extremely cooperative" support to U.S. troop deployments to the Asia-Pacific in the region is significant, he said.

Panetta said he looks forward to the opportunity on his first visit to China as defense secretary to deepen American-Chinese military-to-military relations. He is scheduled to meet with China's top military and civilian leaders including Defense Minister Gen. Liang Guanglie.

"I recognize the challenges that we have in the relationship," the secretary said. "But I think it is in both of our nations' interest to work towards a healthy, stable, reliable and continuous military-to-military relationship."

Regular senior leader visits between Beijing and Washington have led to important progress toward that goal, Panetta said, adding that he views his trip to China "as an opportunity to advance that relationship even further."

Panetta acknowledged he expects the current territorial disputes over some islands in the South China Sea and elsewhere in the region involving China, Japan, the Philippines and other Asia-Pacific nations will be part of the discussions. The secretary said he will continue to urge the U.S. policy of peaceful resolution for territorial disputes, in which the United States does not take sides.

Panetta said the Association of Southeast Asian Nations, or ASEAN, has developed a code of conduct that can serve as the basis for a forum aimed at resolving such territorial disputes peacefully. Issues involving freedom of navigation and mineral or fishing rights may complicate resolution of the dispute over the islands, but Panetta said his central message is that all states involved should refrain from provocative actions.

"Countries are searching for resources; there's going to be questions raised as to who has jurisdiction over these areas," he said. "What we don't want is any kind of provocative behavior resulting in conflict."

The secretary added that issues involving nuclear proliferation, piracy, trade and humanitarian assistance are all areas in which the United States and China can work together.

That work, he said, can foster security in the Asia-Pacific and "enhance the ability of that region to really ... prosper in the future."

Panetta's final stop will be New Zealand, where, he noted, his visit will be the first by a U.S. defense secretary in 30 years.

In his experience, the secretary said, New Zealand is "a very steadfast and a very valued partner to the United States. We deeply appreciate the role that they've played in Afghanistan, and the sacrifice that they've made."

The recent deaths of New Zealand troops serving in Afghanistan is tragic, Panetta said. Yet, New Zealand remains "committed to a strong and continuing role in Afghanistan," he added.

The secretary said his central purpose in traveling to New Zealand is "to see what opportunities exist to try to deepen our defense cooperation."

Even as he sets out on a trip aimed at advancing the U.S. strategic rebalance to the Asia-Pacific, Panetta said, recent events "remind all of us of the need to maintain a strong presence in the Middle East as well."

The United States has a robust troop presence in the region and has deployed more forces to a number of areas there to respond if the State Department requests defense assistance "to protect our personnel and American property," Panetta said.

Panetta said Libyan authorities are making a strong effort "to respond to the crisis and deal with the issues involved" following the Sept. 11 attack on the U.S. Consulate in Benghazi that left U.S. Ambassador to Libya J. Christopher Stevens and three other Americans dead.

The secretary said defense leaders remain concerned about al-Qaida affiliates in Yemen, Somalia, North Africa and elsewhere, although any al-Qaida involvement in the Benghazi attack remains to be determined.

"We have to ... go after al-Qaida wherever they are, and wherever they try to hide," Panetta said. The terrorist group is still working to inspire violence and undermine stability, he said, and continues to represent a threat to the United States.

Panetta said he and other U.S. defense leaders have developed a strategy and budget that can address threats around the world while cutting spending by $487 billion over 10 years.

"We are able to respond to the threats that we confront, both in the Middle East and elsewhere," he said. "Obviously, we continue to monitor ... our resources and the costs involved, and to keep the Congress informed."

DOD has "great support from Congress for the work that we're doing," Panetta said, "and I feel very confident we can respond to any contingency we face."

The secretary noted that while some anti-American demonstrations continue in the Middle East, they seem to have leveled off.

"I suspect these demonstrations ... are likely to continue over the next few days, if not longer," Panetta said. His primary concern, he added, is to "make sure ... our people are protected, and we don't have a recurrence of what happened in Libya."