WHEN GALAXIES COLLIDE

BIG BANK PAYS FINE FOR VIOLATING WHEAT FUTURES SPECULATIVE POSITION LIMITS

Photo From: Wikimedia

FROM: U.S. COMMODITY FUTURES TRADING COMMISSION

September 21, 2012

CFTC Orders Citigroup Inc. and Citigroup Global Markets Ltd. to Pay $525,000 Penalty for Violating Wheat Futures Speculative Position Limits

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an order filing and settling charges that Citigroup Inc. (Citigroup) of New York, N.Y., and Citigroup Global Markets Ltd. (CGML) of London, England, exceeded speculative position limits in wheat futures contracts in trading on the Chicago Board of Trade (CBOT), which is part of CME Group, Inc. The CFTC order requires Citigroup and CGML to pay a $525,000 civil monetary penalty and cease and desist from further violations of section 4a(b)(2) of the Commodity Exchange Act and CFTC regulation 150.2, as charged.

The CFTC order finds that on several occasions in December 2009, Citigroup, via two of its wholly owned subsidiaries, including CGML, held aggregate net long positions in the wheat contract traded on the CBOT in excess of the CFTC’s all months speculative position limits. Additionally, on one or more days in December 2009, CGML individually held net long positions in wheat contracts that exceeded the all months speculative position limits established by the CFTC, the order finds. The position limit for CBOT wheat was 6,500 contracts for all months combined.

CFTC Division of Enforcement staff members responsible for this case are Michael R. Berlowitz, Trevor Kokal, David Acevedo, Jeremy Cusimano, Lenel Hickson, Jr., Stephen J. Obie, and Vincent A. McGonagle.

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C-130 FIREFIGHTING OPERATIONS DEACTIVATED



Air National Guard C-130 Hercules equipped with modular airborne firefighting systems, similar to this one, are dropping thousands of gallons of retardant on the wildfires in Southern California. (U.S. Air Force photo/Staff Sgt. Daryl McKamey)

FROM: U.S. AIR FORCE

Forest Service Deactivates C-130 Firefighting Operations From a 153rd Air Expeditionary Group News Release

CHEYENNE, Wyo., Sept. 17, 2012 - The U.S. Forest Service has deactivated the Modular Airborne Fire Fighting System-equipped military C-130s as fire conditions in the West have improved.

The 153rd Air Expeditionary Group received the notification late Sept. 14, releasing the two MAFFS planes and crews that were still operating, as well as the associated support and maintenance staff. All crews have reported back to their home stations.

The California Air National Guard's 146th Airlift Wing, and the North Carolina Air National Guard's 145th Airlift Wing each had a C-130 operating out of McClellan Air Tanker Base, Calif., for the last few weeks.

On Sept. 2, two C-130s from the Wyoming Air National Guard's 153rd Airlift Wing were released from MAFFS operations in Boise, Idaho. Two C-130s from the Air Force Reserve Command's 302nd Airlift Wing were released from duty Sept. 7.

"Although our planes and crews have returned home, we all know MAFFS can still be reactivated well into the fall," said Air Force Lt. Col. Donald Taylor, 153rd Air Expeditionary Group acting commander. "We have had a very busy season and know it's still too early to say the season is over for good."

According to 153rd Air Expeditionary Group officials based in Boise, Idaho, this season has become the second-highest in MAFFS history for gallons of fire retardant dropped, surpassed only by the MAFFS season of 1994 when about 5 million gallons were dropped. This season, through Sept. 14, the MAFFS fleet released almost 2.5 million gallons of fire retardant during 1,011 drops on fires in 10 states.

MAFFS is a joint Defense Department and U.S. Forest Service program designed to provide additional aerial firefighting resources when commercial and private air tankers are no longer able to meet the Forest Service's needs.

This is the first year since 2008 that all four MAFFS wings had been activated simultaneously, officials said.

As a self-contained aerial firefighting system owned by the U.S. Forest Service, MAFFS can discharge 3,000 gallons of water or fire retardant in less than five seconds, covering an area a quarter of a mile long by 100 feet wide. Once the load is discharged, it can be refilled in less than 12 minutes.

ATLAS V ROCKET LAUNCHED

FROM: U.S. AIR FORCE

Team Vandenberg launched a United Launch Alliance Atlas V rocket carrying a National Reconnaissance Office payload from Space Launch Complex-3 here Sept. 13 at 2:39 p.m. It was the fifth Atlas V processed at Vandenberg and the 606th Atlas mission in U.S.
history. (U.S. Air Force photo/ Lael Huss)

(U.S. Air Force photo/ Lael Huss

Vandenberg's 5th Atlas V lifts off
9/14/2012 - VANDENBERG AIR FORCE BASE, Calif. -- Team Vandenberg launched a United Launch Alliance Atlas V rocket from Space Launch Complex-3 here Sept. 13 at 2:39 p.m.

It was the fifth Atlas V processed at Vandenberg and the 606th Atlas mission in U.S. history.

"It's an honor to work alongside the men and women of Team Vandenberg, United Launch Alliance, the National Reconnaissance Office and our mission partners," said Col. Nina Armagno, 30th Space Wing commander. "These synergistic relationships are what guide Vandenberg to continual mission success and lead us into the next generation of spaceport excellence."

Western range launch operations were executed without incident.

The rocket carried a national security payload for the National Reconnaissance Office.

Vandenberg's next launch is a Minuteman III scheduled for Nov. 14.

VESTA: THE WATER OASIS IN SPACE

Capturing the Surface of Asteroid Vesta

This full view of the giant asteroid Vesta was taken by NASA's Dawn spacecraft, as part of a rotation characterization sequence on July 24, 2011, at a distance of 3,200 miles (5,200 kilometers). A rotation characterization sequence helps the scientists and engineers by giving an initial overview of the character of the surface as Vesta rotated underneath the spacecraft. This view of Vesta shows impact craters of various sizes and grooves parallel to the equator. The resolution of this image is about 500 meters per pixel.

Image credit: NASA/JPL-Caltech/UCLA/MPS/DLR/IDA

FROM: NASA

Dawn Spacecraft Sees Hydrated Minerals on Giant Asteroid

WASHINGTON -- NASA's Dawn spacecraft has revealed the giant asteroid Vesta has its own version of ring around the collar. Two new papers, based on observations from the low-altitude mapping orbit of the Dawn mission, show volatile, or easily evaporated, materials have colored Vesta's surface in a broad swath around its equator.

The volatiles were released from minerals likely containing water. Pothole-like features mark some of the asteroid's surface where the volatiles boiled off. Dawn did not find actual water ice at Vesta. However, it found evidence of hydrated minerals delivered by meteorites and dust in the giant asteroid's chemistry and geology. The findings appear Thursday in the journal Science.

One paper, led by Thomas Prettyman, the lead scientist for Dawn's gamma ray and neutron detector (GRaND) at the Planetary Science Institute in Tucson, Ariz., describes how the instrument found signatures of hydrogen, likely in the form of hydroxyl or water bound to minerals in Vesta's surface.

"The source of the hydrogen within Vesta's surface appears to be hydrated minerals delivered by carbon-rich space rocks that collided with Vesta at speeds slow enough to preserve their volatile content," said Prettyman.

A complementary paper, led by Brett Denevi, a Dawn participating scientist at the Johns Hopkins University Applied Physics Laboratory in Laurel, Md., describes the presence of pitted terrain created by the release of the volatiles.

Vesta is the second most massive member of our solar system's main asteroid belt. Dawn was orbiting at an average altitude of about 130 miles (210 kilometers) above the surface when it obtained the data. Dawn left Vesta on Sept. 5 EDT (Sept. 4) and is on its way to a second target, the dwarf planet Ceres.

Scientists thought it might be possible for water ice to survive near the surface around the giant asteroid's poles. Unlike Earth's moon, however, Vesta has no permanently shadowed polar regions where ice might survive. The strongest signature for hydrogen in the latest data came from regions near the equator, where water ice is not stable.

In some cases, space rocks crashed into these deposits at high speed. The heat from the collisions converted the hydrogen bound to the minerals into water, which evaporated. Escaping water left holes as much as six-tenths of a mile (1 kilometer) wide and as deep as 700 feet (200 meters). Seen in images from Dawn's framing camera, this pitted terrain is best preserved in sections of Marcia crater.

"The pits look just like features seen on Mars, and while water was common on Mars, it was totally unexpected on Vesta in these high abundances," said Denevi. "These results provide evidence that not only were hydrated materials present, but they played an important role in shaping the asteroid's geology and the surface we see today."

GRaND's data are the first direct measurements describing the elemental composition of Vesta's surface. Dawn's elemental investigation by the instrument determined the ratios of iron to oxygen and iron to silicon in the surface materials. The new findings solidly confirm the connection between Vesta and a class of meteorites found on Earth called the Howardite, Eucrite and Diogenite meteorites, which have the same ratios for these elements. In addition, more volatile-rich fragments of other objects have been identified in these meteorites, which supports the idea the volatile-rich material was deposited on Vesta.

The Dawn mission is managed by NASA's Jet Propulsion Laboratory for the Science Mission Directorate in Washington. The spacecraft is as a project of the Discovery Program managed by NASA's Marshall Space Flight Center in Huntsville, Ala. The University of California, Los Angeles, is responsible for overall mission science. Orbital Sciences Corporation of Dulles, Va., designed and built the spacecraft.

The framing cameras that saw the pitted terrain were developed and built under the leadership of the Max Planck Institute for Solar System Research, Katlenburg-Lindau, Germany, with contributions by the German Aerospace Center (DLR) Institute of Planetary Research, Berlin, and in coordination with the Institute of Computer and Communication Network Engineering, Braunschweig. The framing camera project is funded by NASA, the Max Planck Society and DLR. The gamma ray and neutron detector instrument was built by Los Alamos National Laboratory, N.M., and is operated by the Planetary Science Institute.

THE X-RAY SUN

USDA-COLORADO AGREE ON RIO GRANDE BASIN WATER CONSERVATION PROJECT

Rio Grande National Forest.  Credit:  Wikimedia.

FROM: U.S. DEPARTMENT OF AGRICULTURE

USDA and Colorado Announce Rio Grande Basin Water Conservation Project Agreement
WASHINGTON, Sept. 20, 2012— Agriculture Secretary Tom Vilsack and Colorado Commissioner of Agriculture John Salazar today announced that Colorado and USDA have agreed to the terms of a new Conservation Reserve Enhancement Program (CREP) to help conserve irrigation water and reduce ground water withdrawal from the Rio Grande Basin. The project will enhance water quality, reduce erosion, improve wildlife habitat and conserve energy in portions of the Rio Grande watershed in Colorado. Vilsack and Salazar made the joint announcement at the 2012 Colorado Water Conservation Board Statewide Drought Conference.

"USDA is proud to work with the state of Colorado to enroll up to 40,000 acres of eligible irrigated cropland in an effort to address critical water conservation and other natural resource issues within portions of the Rio Grande watershed," said Vilsack. "USDA’s Conservation Reserve Program continues to be one of our nation’s most successful voluntary efforts to conserve land, improve our soil, water, air and wildlife habitat resources—and now producers in Colorado have even greater incentives to enroll in efforts to protect the Rio Grande Basin."


This agreement is for the establishment of permanent native grasses, permanent wildlife habitat, shallow areas for wildlife and wetland restoration on up to 40,000 acres of eligible irrigated cropland with a primary goal of reducing annual irrigation water use by approximately 60,000 acre-feet.

The sign-up date for this voluntary conservation program is expected to be announced soon after an agreement is formalized later this year.Farmers and ranchers in portions of Alamosa, Rio Grande and Saguache counties will then be able to apply for this program at their Farm Service Agency (FSA) service center. FSA will administer the Colorado Rio Grande CREP within these counties, working with USDA’s Natural Resources Conservation Service (NRCS), the state of Colorado’s Department of Natural Resources through the Division of Water Resources, Subdistrict Number 1 of the Rio Grande Water Conservation District, and other state and local CREP partners.

After the agreement is formalized, participants will (1) voluntarily enroll irrigated cropland into specialized 14-15 year Conservation Reserve Program (CRP) contracts, and (2) enter into water use agreements with Subdistrict Number 1 of the Rio Grande Water Conservation District. An additional perpetual irrigation water retirement agreement also will be an option for producers to help achieve long-term water savings.

The following national CRP conservation practices will be made available for eligible land focusing on water resource conservation:

Establishment of Native Grasses and Forbs – CP2 Establishment of Permanent Wildlife Habitat, Non-easement – CP4D Establishment of Shallow Water Areas for Wildlife – CP9 Restoration of Wetland Habitat – CP23 and CP23A

CREP is an option under the Conservation Reserve Program (CRP) that agricultural producers may use to voluntarily establish conservation practices on their land. The project will provide land owners and operators financial and technical assistance. Under this CREP, participants will receive annual irrigated rental payments, cost share and incentive payments for voluntarily enrolling irrigated cropland into contracts and installing the approved conservation practices. USDA also will pay up to 50 percent of the cost of installing the conservation practices. Additional special incentives and cost share will be provided by the WAE for land enrolled within a designated focus area within the project area. Additional incentives will be provided by the subdistrict’s WAE to producers who elect to retire water permanently. Participants will establish permanent vegetative covers on enrolled land according to CRP conservation plans developed by NRCS.

To be eligible, cropland must meet CRP’s cropping history criteria, which includes cropping history provisions, one-year ownership requirement, and physical and legal cropping requirements. Marginal pastureland is also eligible for enrollment provided it is suitable for use as a needed and eligible riparian buffer. Producers who have an existing CRP contract are not eligible for CREP until that contract expires. Producers with expiring CRP contracts who are interested in CREP should submit offers for re-enrolling their land into CREP during the last year of their existing CRP contract.

In 2011, as a result of CRP, nitrogen and phosphorous losses from farm fields were reduced by 623 million pounds and 124 million pounds respectively. The CRP has restored more than two million acres of wetlands and associated buffers and reduces soil erosion by more than 300 million tons per year. CRP also provides $1.8 billion annually to landowners—dollars that make their way into local economies, supporting small businesses and creating jobs. In addition, CRP is the largest private lands carbon sequestration program in the country. By placing vulnerable cropland into conservation, CRP sequesters carbon in plants and soil, and reduces both fuel and fertilizer usage. In 2010, CRP resulted in carbon sequestration equal to taking almost 10 million cars off the road.

HHS SAYS AFFORDABLE CARE ACT WILL SAVE SENIORS $5000 OVER 12 YEARS

Photo: HHS Secretary Kathleen Sebelius

FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES

Through the Affordable Care Act, Americans with Medicare will save $5,000 through 2022
5.5 million seniors saved money on prescription drugs and 19 million got free preventive care in 2012
Because of the health care law – the Affordable Care Act – the average person with traditional Medicare will save $5,000 from 2010 to 2022, according to a report today from the U.S. Department of Health and Human Services. People with Medicare who have high prescription drug costs will save much more – more than $18,000 – over the same period.

HHS Secretary Kathleen Sebelius also announced that, because of the health care law, more than 5.5 million seniors and people with disabilities saved nearly $4.5 billion on prescription drugs since the law was enacted. Seniors in the Medicare prescription drug coverage gap known as the donut hole have saved an average of $641 in the first eight months of 2012 alone. This includes $195 million in savings on prescriptions for diabetes, over $140 million on drugs to lower cholesterol and blood pressure, and $75 million on cancer drugs so far this year. Also in the first eight months of 2012, more than 19 million people with original Medicare received at least one preventive service at no cost to them.

"I am pleased that the health care law is helping so many seniors save money on their prescription drug costs," Secretary Sebelius said. "A $5,000 savings will go a long way for many beneficiaries on fixed incomes and tight budgets."

The health care law includes benefits to make Medicare prescription drug coverage more affordable. In 2010, anyone with Medicare who hit the prescription drug donut hole received a $250 rebate. In 2011, people with Medicare who hit the donut hole began receiving a 50 percent discount on covered brand-name drugs and a discount on generic drugs. These discounts and Medicare coverage gradually increase until 2020, when the donut hole will be closed.

The health care law also makes it easier for people with Medicare to stay healthy. Prior to 2011, people with Medicare had to pay for many preventive health services. These costs made it difficult for people to get the health care they needed. For example, before the health care law passed, a person with Medicare could pay as much as $160 for a colorectal cancer screening. Because of the Affordable Care Act, many preventive services are now offered free to beneficiaries (with no deductible or co-pay) so the cost is no longer a barrier for seniors who want to stay healthy and treat problems early.

In 2012 alone, 19 million people with traditional Medicare have received at least one preventive service at no cost to them. This includes 1.9 million who have taken advantage of the Annual Wellness Visit provided by the Affordable Care Act – almost 600,000 more than had used this service by this point in the year in 2011. In 2011, an estimated 32.5 million people with traditional Medicare or Medicare Advantage received one or more preventive benefits free of charge.

Weekly Address: Congress Must Act to Create Jobs and Grow the Economy | The White House

Weekly Address: Congress Must Act to Create Jobs and Grow the Economy | The White House

AIR FORCE COMBAT SIMULATOR

FROM:  U.S. AIRFORCE
The MC-130E Combat Talon I simulator sits in one of the simulator bays Sept. 20, 2012 at Hurlburt Field, Fla. Since all of the simulators look the same from the outside, they are identified by a specific emblem. For example, this simulator is marked with a pterodactyl dinosaur. (U.S. Air Force photo by Senior Airman Melanie Holochwost)

U.S.-TOGO RELATIONS

Map Credit:  CLA World Factbook
FROM: U.S. DEPARTMENT OF STATE
U.S.-TOGO RELATIONSThe United States established diplomatic relations with Togo in 1960 following its independence from a French-administered trusteeship. After a troubled birth which saw coups and the assassinations, from 1967 to 2005, Togo was ruled by Dictator General Gnassingbe Eyadema, though with periods of quasi-constitutional government and occasional desultory efforts at political reconciliation. The current president, Faure Gnassingbe is Eyadema’s son; he came to power in seriously flawed elections in 2005, but the country's 2007 legislative elections and 2010 presidential election were deemed credible by the international community. Togo faces the challenge of balancing entrenched political groups with the need to implement democratic reforms and continue its nascent economic recovery. The United States and Togo have had generally good relations, and the United States seeks to work with Togo to consolidate democratic gains and economic growth.

Map Credit: CLA World Factbook

U.S. Assistance to Togo

U.S. foreign assistance to Togo aims to encourage a professional military that respects civilian leadership, while continuing to closely monitor the government's willingness to work toward democratic goals. The U.S. Agency for International Development runs local development programs from its office in Ghana through nongovernmental organizations in Togo. Peace Corps celebrates the 50th anniversary of its program in Togo this year, and has nearly 100 volunteers in the field.

Bilateral Economic Relations

Togo has a market-oriented economy, and the country is eligible for preferential trade benefits under the African Growth and Opportunity Act. U.S. exports to Togo include fuel oil, vehicles, petroleum products machinery and food products. The U.S. has a trade surplus with Togo. The United States imports cocoa and coffee from Togo. Togo's export processing zone, established with U.S. Government support, has attracted private investors interested in manufacturing, pharmaceuticals, cosmetics, and food processing, primarily for the export market. A 100-megawatt power plant is among the largest electricity investments in Togo and one of the largest single private U.S. investments in West Africa. The two countries have signed a treaty on investment and economic relations. The United States also has a trade and investment framework agreement with the West African Economic and Monetary Union, of which Togo is a member. Togo is working with the U.S. and other development partners to improve the investment climate and commercial infrastructure. Togo has the deepest port on the west coast of Africa. The government’s focus is to expand the port and road network to make Togo the best option for regional transshipment.

Togo's Membership in International Organizations
Togo 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.

ADDITIONAL FROM: CIA WORLD FACTBOOK

French Togoland became Togo in 1960. Gen. Gnassingbe EYADEMA, installed as military ruler in 1967, ruled Togo with a heavy hand for almost four decades. Despite the facade of multiparty elections instituted in the early 1990s, the government was largely dominated by President EYADEMA, whose Rally of the Togolese People (RPT) party has maintained power almost continually since 1967 and maintains a majority of seats in today's legislature. Upon EYADEMA's death in February 2005, the military installed the president's son, Faure GNASSINGBE, and then engineered his formal election two months later. Democratic gains since then allowed Togo to hold its first relatively free and fair legislative elections in October 2007. After years of political unrest and condemnation from international organizations for human rights abuses, Togo is finally being re-welcomed into the international community. In January 2012, Togo assumed a nonpermanent seat on the UN Security Council for the 2012-13 term.

SEC CHARGES OREGON-BASED HEDGE FUND MANAGER WITH RUNNING $37 MILLION PONZI SCHEME

Photo: Oregon's Mt. Hood Territory. Credit: Wikimedia.

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission today filed fraud charges against a Portland, Oregon-based investment adviser who perpetrated a long-running Ponzi scheme that raised over $37 million from more than 100 investors in the Pacific Northwest and across the country.

The SEC alleges that Yusaf Jawed used false marketing materials that boasted double-digit returns to lure people to invest their money into several hedge funds he managed. He then improperly redirected their money into accounts he personally controlled. As part of the scheme, Jawed created phony assets, sent bogus account statements to investors, and manufactured a sham buyout of the funds to make investors think their hedge fund interests would soon be redeemed. Jawed misused investor money to pay off earlier investors, pay his own expenses and travel, and create the overall illusion of success and achievement to impress investors.

According to the SEC’s complaint filed in federal court in Portland, Jawed managed a number of hedge funds through at least two companies he controlled: Grifphon Asset Management LLC and Grifphon Holdings LLC. Jawed’s marketing materials claimed that the Grifphon funds earned double-digit returns year after year even as the S&P 500 Index declined. For certain funds, Jawed also falsely claimed they would invest in publicly-traded securities and that their assets were maintained at reputable financial institutions.

The SEC alleges that Jawed instead invested very little of the more than $37 million that he raised from investors. For one fund, 70 percent of the money raised was either paid in redemptions to investors in other funds, paid to finders, or merely transferred to accounts belonging to Grifphon Asset Management or other entities that Jawed controlled. Jawed concealed the fraud by telling Grifphon’s bookkeepers that the money transfers represented purchases of offshore bonds – though in reality the purported investment was a sham entity supposedly managed by Jawed’s unemployed aunt who lives in Bangladesh.

According to the SEC’s complaint, Jawed further deceived investors as the funds were collapsing by telling them that independent third parties were buying the Grifphon funds’ alleged assets at a premium. In truth, the so-called third-parties were sham entities originally formed by Grifphon and Jawed containing no assets, no income, and no ability to pay for the funds’ alleged assets.

The SEC’s complaint against Jawed additionally charges Robert P. Custis, an attorney who Jawed hired to assist him in the fraud. Custis sent false and misleading statements to investors about the status of the purported purchase of the Grifphon funds’ assets. Custis consistently misrepresented that this purchase was imminent and would result in investors’ investments being repaid at a profit.

By engaging in the above conduct, Jawed, GAM, and Grifphon Holdings violated Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1), 206(2), and 206(4) of the Advisers Act and Rule 206(4)-8 thereunder. By engaging in the above conduct, Custis violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and aided and abetted violations of Section 206(4) and Rule 206(4)-8 thereunder. The Commission seeks a permanent injunction, disgorgement and prejudgment interest, civil penalty, and other relief as appropriate against them.

The SEC filed separate complaints against two others connected to Jawed’s scheme. Those complaints allege that Jacques Nichols – a Portland-based attorney – falsely claimed to investors that an independent third party would pay tens of millions of dollars to buy the hedge funds’ alleged assets at a premium, and that Jawed’s associate, Lyman Bruhn, of Vancouver, Wash., ran a separate Ponzi scheme and induced investments through false claims he was investing in "blue chip" stocks.

Without admitting or denying the allegations, Nichols, Bruhn, and two entities Bruhn controlled (Pearl Asset Management, LLC and Sasquatch Capital Management, LLC) agreed to settle the SEC’s charges. Along with other relief, Bruhn consented to the entry of permanent injunctions against violations of the Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1), 206(2), 206(4) of the Advisers Act and Rule 206(4)-8 thereunder. Along with other relief, Nichols consented to the entry of a permanent injunction against violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and aiding and abetting violations of Sections 206(1), 206(2), and 206(4) of the Advisers Act and Rule 206(4)-8 thereunder. The SEC’s litigation continues against Jawed, the two Grifphon entities, and Custis.

AIR FORCES IN EUROPE ROCK BAND, TOUCH 'n GO, PERFORMS IN SOUTH AFRICA

 

FROM:  U.S. AIR FORCE, SOUTH AFRICA
VANDERBIJLPARK, South Africa -- U.S. Air Forces in Europe rock band, Touch 'n Go, performs during a show for students and instructors at Northern University here, Sept. 19. The band, Touch 'n Go, has made three performances in local communities across South Africa and will be performing at the Africa Aerospace and Defense Exposition Sept. 22-23 at 10 a.m. and 2 p.m. on both days. The band is committed to fortifying international relationships, fostering trust and friendships, and enhancing troop morale. (U.S. Air Force photo by Staff Sgt. Benjamin Wilson)

CULLINAN, South Africa -- Staff Sgt. Samuel Kennedy, U.S. Air Forces in Europe rock band bassist, performs during a show for students and instructors of the Cullinan Field Band here, Sept. 18. The band, Touch 'n Go, has made three performances in local communities across South Africa and will be performing at the Africa Aerospace and Defense Exposition Sept. 22-23 at 10 a.m. and 2 p.m. on both days. Touch 'n Go is committed to fortifying international relationships, fostering trust and friendships, and enhancing troop morale. (U.S. Air Force photo by Staff Sgt. Debbie Lockhart)

CHAIRMAN OF JOINT CHIEFS OF STAFF BELIEVES MILITARY SHOULD BE APOLITICAL

FROM: U.S. DEPARTMENT OF DEFENSE

Public Trust Requires Apolitical Military, Dempsey SaysBy Jim Garamone
American Forces Press Service

ABOARD A MILITARY AIRCRAFT, Sept. 17, 2012 - The chairman of the Joint Chiefs of Staff wants service members and veterans to consider what using the uniform for partisan politics does to the trust Americans have in their military.

Army Gen. Martin E. Dempsey has maintained throughout his 38-year career that the American military, as a whole, must remain apolitical – meaning being neutral in political matters.

"I have sworn an oath to support and defend the Constitution and one of the principles of the Constitution is freedom of speech," he said during an interview on his way to Ankara, Turkey. "Anyone who claims that I am in any way trying to deny someone freedom of speech, I just can't accept that."

Dempsey has been outspoken that service members have truly earned their right to vote, and that all Americans are entitled to private and personal opinions. But he also is worried that using the uniform for partisan purposes could damage the trust Americans have in their military.

Survey after survey reveals the American military is one of the most trusted and most respected institutions in the land, and maintaining that trust is key to the success of the United States, Dempsey said. In his studies of civil-military relations, he added, the cornerstone of the profession of arms is that "we remain apolitical – that we are not a special-interest group."

And he applies that across the board. "I don't care what side of the aisle someone happens to sit on or happens to support," he said.

The chairman said he wants service members and those who have served and who may still use the title "just to think about what impact their actions will have on our standing as a profession with the American people if they engage in partisan political activity."

"I just want them to think about it," he said.

Retired general and flag officers must be extra careful when engaging in partisan political activities, the chairman said. They are held to a higher standard and probably should be, he explained, because many Americans do not make the distinction between an active duty and retired status. "And most [retired general and flag officers] understand that standard and meet it," he added.

Press Gaggle Following Remarks at the Center for European Policy Analysis

Press Gaggle Following Remarks at the Center for European Policy Analysis

SUBSIDIARY OF ALCATEL-LUCENT TO PAY $4.2 MILLION TO SETTLE FALSE CLAIIMS ACT ALLEGATIONS IN IRAQ

Map Credit:  CIA World Factbook.
FROM: U.S. DEPARTMENTOF JUSTICE
Friday, September 21, 2012

Alcatel-lucent Subsidiary Agrees to Pay U.S. $4.2 Million to Settle False Claims Act Allegations

Related to $250 Million Contract for 911 Emergency Response System in Iraq

WASHINGTON – An Alcatel-Lucent subsidiary, Lucent Technologies World Services Inc. (LTWSI), has agreed to pay the United States $4.2 million to settle False Claims Act allegations that it submitted misleading testing certifications to the Army in connection with the design, construction and modernization of Iraq’s emergency communications system, the Department of Justice announced today. Alcatel-Lucent is a global telecommunications provider.

In March 2004, the U.S. Army awarded LTWSI a $250 million contract to build the Advanced First Responder Network (AFRN), a 911 emergency response and first responder communications system designed to enable Iraqis to summon police, fire and medical assistance in emergencies. Today’s settlement resolves allegations that LTWSI submitted claims for payment for equipment, services and contract performance award fees under the AFRN contract based upon inaccurate certifications that LTWSI, between January and July 2005, had performed and successfully completed certain testing of AFRN radio transmission sites, as well as validation of the network as a whole, to ensure the network’s proper operation prior to acceptance by the United States and transfer to the Iraqi government.

"The integrity of our public contracting system is a matter of paramount concern to the Department of Justice, especially where contractors have been engaged to supply critical support for the work of stabilizing Iraq and Afghanistan," said Stuart F. Delery, Acting Assistant Attorney General for the Department of Justice’s Civil Division. "The department will seek to recover losses to the American taxpayer when a contractor has claimed money to which it was not entitled."

"The United States must be able to count upon government contractors to seek payment only for services performed in conformance with their contractual obligations. That is particularly true of contractors performing work for the United States in ‘hot spots’ around the globe where verification of invoiced work can be both difficult and dangerous," said Jenny Durkan, the U.S. Attorney for the Western District of Washington. "LTWSI’s internal procedures on the AFRN project clearly should have been more robust in this instance."

The settlement resolves a whistleblower suit filed under the False Claims Act in December 2008, by Geoffrey Willson, LTWSI's former contract manager for the project. The False Claims Act permits private parties to sue on behalf of the United States for submission of false claims to the government and to share in any recovery. Willson will receive $758,000 as his statutory share of today’s settlement.

This matter was handled jointly by the U.S. Attorney’s Office for the Western District of Washington and the Department of Justice Civil Division’s Commercial Litigation Branch in Washington, D.C. Investigative support was provided by the Department of Defense Inspector General’s Seattle Resident Agency of the Defense Criminal Investigative Service. The Defense Contract Audit Agency and Army Criminal Investigation Command also provided investigative support.

The claims settled by this agreement are allegations only and do not constitute a determination of liability.

TUNESIAN FOREIGN MINISTER ABDESSALEM'S REMARKS WITH SEC. OF STATE CLINTON

Map Credit:  U.S. Department Of State
FROM:  U.S. DEPARTMENT OF STATE
Remarks With Tunisian Foreign Minister Rafik Abdessalem Before Their Meeting
Remarks
Hillary Rodham Clinton
Secretary of State
Treaty Room
Washington, DC
September 21, 2012

SECRETARY CLINTON: Good morning. I am pleased to welcome the Foreign Minister from Tunisia. I’m looking forward to our meeting. We obviously have a great deal to discuss, and I want to thank the Foreign Minister and the Government of Tunisia for their efforts over the last week to help secure our Embassy and the American Cooperative School of Tunis following the violent assaults of last Friday.

We are monitoring events closely today. There is no higher priority for President Obama and myself than the safety of our people. We’ve taken a number of steps around the world to augment security and to protect our personnel at diplomatic posts. And we are working closely with host governments in this effort.

As I have said before and as is embodied in the Vienna Convention and other international agreements, all governments have the duty, the solemn duty, to defend diplomatic missions. They must be safe and protected places so that governments can exchange views and work on many important issues, and leaders across the world must stand up and be counted in rejecting violence and holding violent actors accountable.

We are working closely with the Government of Tunisia. They have assisted us in enhancing the security of our facilities. We’ve also discussed with them the imperative of bringing to justice those responsible for these violent attacks. And we have offered and will continue to look for ways that we can assist the new Government of Tunisia in ensuring the rule of law throughout their country, first and foremost for the people of Tunisia themselves. We look forward to continuing to build our new partnership with the Tunisian Government and people. Our relationship is built around the shared principles of all democracies – a commitment to nonviolence, to tolerance, and inclusivity for all people, and to upholding the rule of law.

The Tunisian people have bravely put themselves on the road to democracy. They were the first of the Arab revolutions and they have made important progress in a very short period of time. They have worked too hard and sacrificed too much over too many years to see their progress hijacked or derailed by extremists with their own agenda. And those extremists, not only in Tunisia but in too many places around the world, look for opportunities to exploit this current situation or other situations, and all people and leaders must stand against them.

So as the Tunisian Government takes steps to strengthen security and protect the Tunisian people and economy from extremism and violent agendas, the United States stands ready to help. We also are working closely with Tunisia on the broader shared threat of terrorism, including from groups like al-Qaida and its affiliates.

So Minister, please know the United States remains committed to supporting Tunisia as you deal with this current situation, as you continue your democratic transition, and we want to be with you as you confront challenges and help seize opportunities together for the betterment of the future of Tunisia.

FOREIGN MINISTER ABDESSALEM: Thank you. Thank you, Your Excellency, Secretary of State, for providing us this opportunity to meet with you here in Washington. I’m here to express my condolences for the loss of the American Ambassador in Libya and the three other members of staff.

I’m also here to express our regret and full and strong condemnation for the storming of the American Embassy and school in Tunisia last Friday. This event does not reflect the real image of Tunisia. As a newborn democracy, all of you know that we are in process to dismantle the heavy legacy of political despotism and to set up the foundations of a new democracy. And we have the heavy, broader responsibility to succeed in this process of democratization. And I’m sure if we succeed, at least we send a positive message to the region, is that democracy is possible in that part of the world.

We are familiar to hear and to read in the newspapers and to hear from the media that democracy expanded in different parts of the globe except in the Arab region. But I hope that we prove by reality that democracy is possible in the Arab world – to be a democrat, Arab, and Muslim at the same time.

We already taken the necessary measures to protect the American Embassy, the American schools, and all diplomatic presence in Tunisia, members of foreign communities. It is our duty, and I’m sure that we have the ability and the capability to protect all private and public institutions in Tunisia. Stability, political stability, and security is priority for us as well for our friend and partner the United States. And I want to thank you, Mrs. Hillary, for providing us this opportunity, and I’m looking forward for a fruitful and constructive discussion.

SECRETARY CLINTON: Thank you.

FOREIGN MINISTER ABDESSALEM: Thank you very much.

THE IED THREAT GROWS WORLDWIDE

FROM: U.S. DEPARTMENT OF DEFENSE
060607-N-7987M-068 Norfolk, Va. (June 7, 2006) - Explosive Ordnance Disposal Training and Evaluation Unit Two (EODTEU-2) demonstrates the destruction of an explosive device at Fort Story. EODTEU is part of the newly formed Naval Expeditionary Combat Command (NECC). Within NECC, all naval expeditionary combat and supply combat elements are integrated so that they are more capable, responsive and effective in their role in the global war on terrorism. U.S. Navy photo by Photographer's Mate Airman Mandy Mclaurin (RELEASED)
　

Threat of terrorist IED's Growing & Expanding, General SaysBy Jim Garamone
American Forces Press Service

WASHINGTON, Sept. 21, 2012 - The threat posed by crude homemade bombs known as improvised explosive devices is growing and spreading across the globe, and will be the terrorists' weapon of choice for decades, the commander of the Joint Improvised Explosive Device Defeat Organization said yesterday.

"We still need to do more," Army Lt. Gen. Michael D. Barbero told the House Appropriations Committee's defense subcommittee, adding that his organization is rapidly fielding critical counter IED capabilities. "But let me say up front that I believe the IED and the networks that use these asymmetric weapons will remain a threat to our forces and here at home for decades."

These bombs, he said, will be the weapon of choice for terrorists because they are cheap and readily available. Bomb makers use off-the-shelf technology to make the deadly explosives. IED's were the number one killer of American troops during the war in Iraq.

"This trend is readily apparent in Afghanistan ... where IED events continue to rise," Barbero said. "In the past two years, IED events have increased 42 percent, from 9,300 events in 2009 to 16,000 events in 2011. And this year, we're on track, for 2012, to meet or exceed the historic number of IED events we saw last year."

While the overall number of IED events is high, coalition casualties are down, the general said. This is because the coalition's ability to find IEDs before they explode is steadily improving. This has reduced U.S. casualties by more than 40 percent this past year, he said.

The decrease in IED effectiveness is a result of an across-the-board effort against these devices, he said, noting that troops deploying to Afghanistan receive the latest counter-IED training and use the latest technology from airborne sensors to handheld devices.

"Commanders and troopers on the ground are continuously refining their tactics, techniques and procedures tailored to the threat they face in the region," Barbero told the subcommittee.

Meanwhile, U.S. forces and civilian personnel "will remain the target of insurgent IED attacks and the IED will remain the weapon of choice," Barbero said. "From our experience in Iraq, the reduction of U.S. forces must not equal a reduction in counter-IED or other critical capabilities."

The general said that as the military footprint in Afghanistan gets smaller, troops there "will require flexibility to shift priorities rapidly, providing the requisite counter-IED capabilities, situational awareness and security and protection," he said.

Barbero said the IED threat is growing and morphing to other areas of the world.

"Since 2007, IED incidents outside of Iraq and Afghanistan have increased to average more than 500 incidents per month around the globe," the general said. "Since January 2011, there have been more than 10,000 global IED events occurring in 112 countries, executed by more than 40 regional and transnational threat networks. The extremist networks that employ the IEDs have proven to be resilient, interconnected and extremely violent."

Wherever there is turmoil and insecurity, there will be IEDs, Barbero said.

"I believe U.S. forces will operate in an IED environment," he said. "I believe it's a reality of 21st century warfare, and we must plan accordingly."

AFGHANISTAN'S FUEL ACCOUNTING QUESTIONED

FROM: U.S. DEPARTMENT OF DEFENSE
020101-N-2383B-507 Kandahar, Afghanistan, (Jan. 1, 2002) -- An Anti-Taliban Forces (ATF) fighter wraps a bandolier of ammunition around his body as ATF personnel help U.S. Marines from the 26th Marine Expeditionary Unit secure a compound. The Marines are in Afghanistan operating in support of Operation Enduring Freedom. U.S. Navy photo by Chief Photographer's Mate Johnny Bivera. (RELEASED)

　
Inspector Questions Accounting of Afghanistan Fuel
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

WASHINGTON, Sept. 21, 2012 - The U.S. Special Inspector General for Afghanistan Reconstruction has urged commanders in Afghanistan not to grant the Afghan government increased responsibility for fuel used by its security forces until questions about how the fuel is managed and accounted for are answered.

The recommendation by John F. Sopko came during testimony yesterday before the House Oversight and Government Reform Committee, where he raised "serious concerns" about fuel oversight provided by the Combined Security Transition Command-Afghanistan.

Sopko's organization, known by its acronym SIGAR, was created by Congress to provide independent and objective oversight of Afghanistan reconstruction projects and activities.

"Last week, I testified before this subcommittee that SIGAR had serious concerns about how CSTC-A has managed and accounted for the fuel provided to the Afghan Army," Sopko said. "Despite these problems, CSTC-A still plans to increase annual funding for the Afghan Army fuel by $212 million per year."

Sopko also noted CSTC-A, which assists the Afghan government in generating and sustaining Afghan security forces, expects to move forward with a plan to transfer fuel responsibilities and funding to the Afghan Army.

"We believe there is no basis for either decision," he said. "I continue to urge CSTC-A to halt its plan to increase fuel funding until it develops a better process for determining fuel needs, establishes a comprehensive action plan to improve fuel accountability and delay transferring fuel responsibilities and funding to the Afghan Army until the problems we have identified are fixed."

Sopko said his investigation found that records has been destroyed as well as difficulties with providing documentation detailing the dispensation of fuel.

The investigation "identified and has started interviewing "individuals located in the United States, Afghanistan, United Kingdom and Belgium who were involved in this matter," he said. "We have confirmed that shredding did indeed take place and have identified two Air Force officers who admitted to destroying documents covering the time periods of February 2010 to February 2011."

These officers, Sopko said, obtained supervisory approval to shred the documents because they did not have adequate storage space, but claimed they were saved in electronic format.

"Our investigators are now working to locate those electronic records to review to see if they are actually the records in question," he said. "In addition, just this Tuesday, CSTC-A provided our auditors in Kabul with a CD which they claim contains 97 percent of the documents we had requested for the time period of March 2011 to March 2012."

The inspector general said CSTC-A ensured they would provide complete records for March 2011 to March 2012; however, a sampling provided revealed at least half of the documents were missing.

Auditors will "review this new disc to ascertain whether it contains complete and accurate copies of the records we requested," Sopko told the lawmakers.

Meanwhile, "CSTC-A tells our auditors in Kabul that they have located additional hard copies of the records, including some prior to February 2010 which we intend to examine," he added.

Sopko characterized CSTC-A's handing of these records as "deeply troubling," and noted it raises questions about their ability to perform such a "serious function."

"It appears it has to take two congressional hearings, six months of [Inspector General] requests, an interim audit report, a management alert letter," he said. "And my personal meeting with every single military official in Afghanistan before CSTC-A deigns to seriously take our request for records as something they should respond to."

Sopko said following his initial testimony on Sept. 10, CSTC-A has revised their plan to transfer responsibilities to the Afghan government, in particular, changing the amount of funding it plans to provide directly to the Afghans from two-thirds of total funding to one-third, as well as the time frame.

"It appears ... the Afghan Ministry of Defense has said they can't handle this new mission until March of 2013," he said. "Although we think this is a good move to delay, we're surprised that apparently CSTC-A never talked to the Afghan ministry about this important function until subsequent to the hearing."

"These developments indicate that CSTC-A is perhaps approaching the transition to Afghan-run logistics more cautiously than before," he said, after noting they've struggled in the past with direct assistance.

Sopko noted providing direct assistance to the Afghan government is a critical part of transitioning reconstruction efforts to the Afghans.

"But moving forward with direct contributions, in face of the serious problems that CSTC-A itself has encountered in its fuel programs, reconfirms our belief that transferring funding responsibility in January is doubling down on a very risky bet," he said.

TAIWAN-BASED AU OPTRONICS CORPORATION SENTENCED TO PAY $500 MILLION CRIMINAL FINE

Credit:  Wikikmedia.

FROM: U.S. DEPARTMENT OF JUSTICE ANTITRUST DIVISION

Company Also Sentenced to Adopt Antitrust Compliance Program; Former Top Executives Each Sentenced to Serve Three Years in Prison and to Pay Criminal Fine

WASHINGTON — AU Optronics Corporation, a Taiwan-based liquid crystal display (LCD) producer, was sentenced today in U.S. District Court in San Francisco to pay a $500 million criminal fine for its participation in a five-year conspiracy to fix the prices of thin-film transistor LCD panels sold worldwide, the Department of Justice announced. Its American subsidiary and two former top executives were also sentenced today. The two executives were sentenced to serve prison time and to pay criminal fines for their roles in the conspiracy. The $500 million fine matches the largest fine imposed against a company for violating the U.S. antitrust laws.

Today's sentencing took place before Judge Susan Illston. Along with the criminal fine, AU Optronics Corporation was also sentenced to print advertisements in three major trade publications in the United States and Taiwan acknowledging its convictions and punishments and the remedial steps it has taken as a result of its conviction. The company and its American subsidiary, AU Optronics Corporation America, were also placed on probation for three years, required to adopt an antitrust compliance program and to appoint an independent corporate compliance monitor.

"This long-running price-fixing conspiracy resulted in every family, school, business, charity and government agency who bought notebook computers, computer monitors and LCD televisions during the conspiracy to pay more for these products," said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division's criminal enforcement program. "The Antitrust Division will continue to pursue vigorously international cartels that target American consumers and rob them of their hard earned money."

Former AU Optronics Corporation president Hsuan Bin Chen was sentenced to serve three years in prison and to pay a $200,000 criminal fine. Former AU Optronics Corporation executive vice president Hui Hsiung was also sentenced to serve three years in prison and to pay a $200,000 criminal fine.

"The number of criminal antitrust cases filed has significantly increased over the last five years, and so has the dedication of FBI resources to these important investigations. The FBI remains committed to thwarting fraud and corruption in the United States and around the world. To that end, we have agents, analysts and professional staff in all of our 56 Field Offices and 63 LEGATs that are committed to fighting these crimes wherever they are found and at whatever level they are found. I would like to commend the employees of the FBI's San Francisco Field Office and the Department of Justice Antitrust Division, for their fine work on this very important antitrust investigation. This team has devoted countless hours to the investigation and I appreciate their devotion to the mission," said Assistant Director Ronald T. Hosko, of the FBI's Criminal Investigative Division.

The companies and former executives were found guilty on March 13, 2012, following an eight-week trial. The indictment charged that AU Optronics Corporation participated in the worldwide price-fixing conspiracy from Sept. 14, 2001, to Dec. 1, 2006, and that its subsidiary joined the conspiracy as early as spring 2003. The jury found that the convicted companies and former executives fixed the prices of LCD panels sold into the United States. The prices were fixed during monthly meetings with their competitors secretly held in hotel conference rooms, karaoke bars and tea rooms around Taiwan. LCD panels are used in computer monitors and notebooks, televisions and other electronic devices. By the end of the conspiracy, the worldwide market for LCD panels was valued at $70 billion annually. The LCD price-fixing conspiracy affected some of the largest computer manufacturers in the world, including Hewlett Packard, Dell and Apple.

Including today's sentences, eight companies have been convicted of charges arising out of the department's ongoing investigation and have been sentenced to pay criminal fines totaling $1.39 billion. All together, 22 executives have been charged. Including today's sentences, 12 executives have been convicted and have been sentenced to serve a combined total of 4,871 days in prison.

Today's charges are the result of a joint investigation by the Department of Justice Antitrust Division's San Francisco Field Office and the FBI in San Francisco.