Wednesday, September 26, 2012
MAN AND FOUR COMPANIES ARE CHARGED IN COMMODITY POOL FRAUD INVOLVING MADOFF/MF GLOBAL
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| The Legacy of the Bernie Madoff Ponzi Scheme |
CFTC Charges Nikolai S. Battoo and Four Companies He Controls with Fraud In Connection With Commodity Pools that Accepted Over $140 Million from U.S. Investors
Defendants allegedly made fraudulent misrepresentations and omissions to hide losses sustained by a series of commodity pools called "Private International Wealth Management"
Washington, DC – On September 6, 2012, the U.S. Commodity Futures Trading Commission (CFTC) filed an emergency action in the U.S. District Court for the Northern District of Illinois to freeze assets under the control of defendants Nikolai S. Battoo (Battoo), BC Capital Group S.A., BC Capital Group International Limited, BC Capital Management LLP, and BC Capital Group Holdings S.A. (the BC Common Enterprise). The action also seeks an order appointing a receiver for the BC Common Enterprise and related entities, prohibiting the defendants from destroying books and records, and granting the CFTC immediate access to evidence.
The CFTC’s complaint alleges that defendants operated a series of commodity pools called "Private International Wealth Management" (PIWM) that solicited more than $140 million from U.S. residents. The complaint also alleges that defendants made fraudulent misrepresentations and omissions in connection with significant losses sustained by the PIWM pools through periodic account statements and asset verification documents as well as through telephone calls and letters to pool participants.
Specifically, defendants allegedly committed fraud in 2008 by failing to disclose the PIWM pools’ significant exposure to the Bernard Madoff Ponzi scheme, as well as trading losses suffered by other of Battoo’s hedge funds in which the PIWM pools were invested. In 2009, defendants sent asset verifications to pool participants that the CFTC alleges overstated the value of the PIWM pools’ investments. Finally, in 2011, defendants allegedly overstated the impact that the bankruptcy of MF Global, Inc. had on the PIWM pools and used it as an excuse for refusing to return pool participants’ funds.
In the continuing litigation against the defendants the CFTC seeks a permanent injunction from future violations of federal commodities laws, permanent registration and trading bans, full restitution to defrauded pool participants, disgorgement of any ill-gotten gains, and the payment of appropriate civil monetary penalties.
The CFTC appreciates the assistance of the U.S. Securities and Exchange Commission (SEC) in this matter.
The CFTC Division of Enforcement staff responsible for this action are Andrew Ridenour, Amanda Harding, David Slovick, Stephen Turley, Carlin Metzger, Erica Bodin, Theodore Kneller, Kathleen Banar, Rick Glaser and Richard Wagner.
U.S. SECRETARY OF STATE CLINTON'S REMARKS ON WATER SECURITY
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| Photo: Desert In Libya. Credit: CIA World Factbook |
Roundtable on Water Security
Remarks
Hillary Rodham Clinton
Secretary of State
United Nations
New York City
September 25, 2012
Thank you very, very much, Maria, and I am delighted to be able to join you for this meeting. Sometimes when you look at the busy schedule of the UN General Assembly, you see only the headlines, the problems, the hotspots, the conflicts, the challenges, and all of those are certainly important. But you also have to look at the trend lines, and you’re here because you know that water is an issue that cuts across borders and affects every human being.
You know better than any that water management and resource issues are both a moral imperative and a strategic investment, and I want to thank everyone who has participated in this, because whether you’re talking about economic development or improving global health, whether you focus on promoting food security or building peace or coping with climate change or providing sustainable energy, access to clean water is critical. And the problems that are already coming to the forefront around the world will only intensify as populations grow and demands increase.
Now, this year alone in the United States, we’ve experienced extreme drought conditions in some parts of our country and devastating floods in others. We are well aware that Europe, Asia, and Africa have all experienced similar challenges. Now, you’ve already heard about our Intelligence Community Assessment on Global Water Security, and I hope that you will have if you didn’t today have a chance to really study it, because water scarcity could have profound implications for security. The report found that dwindling supplies and poor management of water resources will certainly affect millions of people as food and crops grow scarcer and access to water more difficult to obtain. In fact, in some places, the water tables are already more depleted than we thought and wells are drying up.
In other parts of the world, water resources could become a real source of manipulation and increasing instability. And we want to get ahead of what those potential problems might be. We can’t wait until we already have a crisis. So I think water should be a priority in every nation’s foreign policy and domestic agenda, and we need to work together to advance cooperation on shared waters. Here at the UN, we have to work in our continuing efforts to ensure no child dies of a water-related disease and certainly no war is ever fought over water.
Now, to give just one example of what we need to be doing, the United States is working with the UN Development Program and other partners from not only governments but the business world, civil society, philanthropy, and academia on the shared waters partnership to help build really robust institutions. And also, as part of that, we will be looking for ways to establish online platforms to facilitate cooperation and to facilitate regional dialogues. All of us are here today because we understand the urgency. It is for me a critical issue that we have to start asking ourselves what are we going to do today and tomorrow to address.
Many of you are already working on developing practical solutions. How can we better connect and share what you’ve already learned? How can we build more effective institutions for managing shared water resources? And how do we bring safe drinking water and sanitation to all the world’s people? I’m sure it’s been said many times already today, but there are countries where there are more cell phones than toilets. How do we look for every possible creative, innovative approach to safe drinking water and sanitation? I’m excited, because I think this is now getting the attention that it so richly deserves. I thank Under Secretary Otero for leading our efforts inside the United States Government, and I look forward to hearing the results of your deliberations and working with you to try to implement your very practical solutions. Thank you all. (Applause.)
ICP, FOUNDER, SETTLE CDO FRAUD CASE FOR $23 MILLION
Washington, D.C., Sept. 7, 2012 – The Securities and Exchange Commission today announced that New York-based investment advisory firm ICP Asset Management and its founder and president Thomas C. Priore have agreed to settle the agency’s charges that they defrauded several collateralized debt obligations (CDOs) they managed.
ICP, Priore, and related entities have agreed to pay more than $23 million to settle the case the the SEC filed in federal court in Manhattan. The SEC alleged they engaged in fraudulent practices and misrepresentations that caused the CDOs to overpay for securities and lose millions of
dollars. Priore and the ICP companies also improperly obtained fees and undisclosed profits at the expense of the CDOs and their investors.
"The settlement with Priore and ICP sends a clear message that investment advisers must always act in the best interests of their advisory clients, even if those clients are sophisticated investors," said George S. Canellos, Deputy Director of the SEC’s Division of Enforcement. "When advisers put their own interests ahead of their clients’ interests, the SEC will seek to hold them accountable."
The court approved the settlement terms on September 6. The final judgment orders Priore to pay disgorgement of $797,337, prejudgment interest of $215,045, and a penalty of $487,618. ICP and its holding company Institutional Credit Partners LLC are required, on a joint and several basis, to pay disgorgement of $13,916,005 and prejudgment interest of $3,709,028. ICP also must pay a penalty of $650,000. An affiliated broker-dealer ICP Securities LLC is ordered to pay disgorgement of $1,637,581, prejudgment interest of $301,893, and a penalty of $1,939,474. Priore also agreed to settle an administrative proceeding against him and be barred from association with any broker, dealer, investment adviser, municipal securities dealer, or transfer agent, and from participating in any offering of a penny stock. He has a right to reapply for association or participation after a period of five years.
Priore and the ICP companies also consented, without admitting or denying the SEC’s allegations, to permanent injunctions enjoining them from future violations of the securities laws that they were alleged to have violated, which include Section 17(a) of the Securities Act of 1933, Sections 10(b) and 15(c)(1)(A) of the Securities Exchange Act of 1934 and Rules 10b-3 and 10b-5, and Sections 206(1), (2), (3), and (4) of the Investment Advisers Act of 1940 and Rules 204-2, 206(4)-7 and 206(4)-8.
The SEC’s investigation was conducted by Celeste A. Chase, Joseph Boryshansky, Joshua Pater, Susannah Dunn, and Kenneth Gottlieb of the New York Regional Office. Joseph Boryshansky led the litigation with assistance from Jack Kaufman, Mark Germann, Joshua Pater, and Susannah Dunn.
PARTNERED OPERATIONS CONTINUE IN AFGHANISTAN
FROM: U.S. DEPARTMENT OF DEFENSE
Partnered Coalition Operations Continue Despite Insider Attacks
By Nick Simeone
American Forces Press Service
WASHINGTON, Sept. 25, 2012 - Partnered operations between coalition and Afghan forces are continuing despite a decision by the top U.S. and NATO commander in Afghanistan to scale them back in response to a series of deadly insider attacks, Pentagon Press Secretary George Little said today.
On Sept. 16, Marine Corps Gen. John R. Allen ordered that all combined International Security Assistance Force and Afghan operations below the battalion level must be approved at the regional command level following attacks by Afghan soldiers and police that have killed 51 members of the coalition this year.
At a Pentagon news conference today, Little told reporters he did not know how long such operations would be scaled back, but that some patrols below the battalion level do continue. "This is a temporary measure," he said, "and let me be clear as well that operations with our Afghan partners continue."
Last week, Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, described the pullback as precautionary and partly in response to the violent anti-American demonstrations that broke out across the Islamic world after an American-made video surfaced on the Internet defaming the Prophet Muhammad. "The protection of our personnel is paramount, and we will continue to make adjustments as required over time to ensure their security," Little said.
The spokesman said it would be up to the command in Afghanistan to determine how long partnered operations are curtailed, and that Defense Secretary Leon E. Panetta strongly supports Allen's decision. He called coalition operations "successful" and stressed that the U.S. goal in Afghanistan remains the same.
"We see Afghans more and more in the lead for their own operations and for their own governance. That is the goal here, that is what we're training toward," he said.
"At the end of the day," he added, "that is how success is going to be defined: whether Afghans can provide for their own security and govern themselves."
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| U.S. Army Pfc. Michael Weymouth, left, and Sgt. Christopher Ouzts, center, provide dismounted security for U.S. Air Force Tech. Sgt. Michael Myers, right, and his military working dog, Rambo, in front, while clearing a hill of improvised explosive device threats along a route during Operation Southern Strike III in the Takhteh Pol district of Afghanistan's Kandahar province, Sept. 7, 2012. Weymouth and Ouzts are combat engineers assigned to the 569th Engineer Company. U.S. Army photo by Staff Sgt. Brendan Mackie |
FROM: U.S. DEPARTMENT OF DEFENSE
Partnered Coalition Operations Continue Despite Insider Attacks
By Nick Simeone
American Forces Press Service
WASHINGTON, Sept. 25, 2012 - Partnered operations between coalition and Afghan forces are continuing despite a decision by the top U.S. and NATO commander in Afghanistan to scale them back in response to a series of deadly insider attacks, Pentagon Press Secretary George Little said today.
On Sept. 16, Marine Corps Gen. John R. Allen ordered that all combined International Security Assistance Force and Afghan operations below the battalion level must be approved at the regional command level following attacks by Afghan soldiers and police that have killed 51 members of the coalition this year.
At a Pentagon news conference today, Little told reporters he did not know how long such operations would be scaled back, but that some patrols below the battalion level do continue. "This is a temporary measure," he said, "and let me be clear as well that operations with our Afghan partners continue."
Last week, Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, described the pullback as precautionary and partly in response to the violent anti-American demonstrations that broke out across the Islamic world after an American-made video surfaced on the Internet defaming the Prophet Muhammad. "The protection of our personnel is paramount, and we will continue to make adjustments as required over time to ensure their security," Little said.
The spokesman said it would be up to the command in Afghanistan to determine how long partnered operations are curtailed, and that Defense Secretary Leon E. Panetta strongly supports Allen's decision. He called coalition operations "successful" and stressed that the U.S. goal in Afghanistan remains the same.
"We see Afghans more and more in the lead for their own operations and for their own governance. That is the goal here, that is what we're training toward," he said.
"At the end of the day," he added, "that is how success is going to be defined: whether Afghans can provide for their own security and govern themselves."
THE ROVER LOOKS TOWARD IT'S DESTINY, MT. SHARP
FROM: NASA, MARS
Layers at the Base of Mount Sharp
A chapter of the layered geological history of Mars is laid bare in this postcard from NASA's Curiosity rover. The image shows the base of Mount Sharp, the rover's eventual science destination.
This image is a portion of a larger image taken by Curiosity's 100-millimeter Mast Camera on Aug. 23, 2012.
For scale, an annotated version of the figure highlights a dark rock that is approximately the same size as Curiosity. The pointy mound in the center of the image, looming above the rover-sized rock, is about 1,000 feet (300 meters) across and 300 feet (100 meters) high.
JPL manages the Mars Science Laboratory/Curiosity for NASA's Science Mission Directorate in Washington. The rover was designed, developed and assembled at JPL, a division of the California Institute of Technology in Pasadena.
Tuesday, September 25, 2012
THE NEW ASIA-PACIFIC FOCUS FOR THE UNITED STATES
Pentagon Official Explains Asia-Pacific Focus
FROM: U.S. DEPARTMENT OF DEFENSE
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service
WASHINGTON, Sept. 24, 2012 - The entire U.S. government has made a concerted effort to improve U.S.-China relations while implementing the tenets in the defense strategic guidance, a senior Pentagon official said here today.
Speaking to an audience at the Center for Strategic and International Studies, Kathleen Hicks, principal deputy undersecretary of defense for policy explained the U.S. military's strategic shift in focus toward the Asia-Pacific region.
"The investment of time and resources that the entire U.S. government is making in our relationships in this region includes a strong emphasis on improving relations with China," she said. But as President Barack Obama, Secretary of State Hillary Rodham Clinton, Defense Secretary Leon E. Panetta and Deputy Defense Secretary Ashton B. Carter have emphasized, the rebalance is not just about China, she added.
"It is not just about the U.S. goal in the region, and it's not an attempt by the U.S. to contain China," she said.
Hicks said the need for rebalancing became apparent in 2011 as the Defense Department's senior leaders, along with the president's staff, engaged in a strategic review of how to achieve the objectives of the national defense strategy amid changes to the geo-strategic and resource environments.
"The end of the war in Iraq and the onset of our transition to Afghan leadership for security in Operation Enduring Freedom were among the dynamics we felt necessitated a re-look prior to the next [Quadrennial Defense Review]," she said.
Hicks noted Clinton, Panetta and Carter all have visited Asia in recent months.
"These travels provide our leaders venue to describe the United States vision for a prosperous and peaceful Asia-Pacific," she said. "[It will be] supported by a shared commitment to the values of free and open commerce, unimpeded access to the global commons and a system based on a rule of law.
"This vision scans the spectrum of our diplomatic, economic and defense policies," she continued. "Our whole-of-government efforts include strengthening our alliances and partnerships, deepening working relationships with emerging powers, engaging in and strengthening multilateral institutions, expanding trade and investment and advancing principles of democracy and human rights."
Hicks said the rebalancing reflects the larger picture of the entire region "including U.S. engagement with China, including military-to-military relations."
"The stability and prosperity in this region will be shaped by our ability to work together," she said.
Hicks explained some of the changes to come during the course of the rebalancing to the region.
"As U.S. forces return from Afghanistan and reset globally, one of our priorities is having forces present and positioned in the Pacific to assure regional allies and partners, deter threats to regional stability and prevail in conflicts if necessary," she said.
"This includes the Army aligning specific forces to U.S. Pacific Command, as well as the return of Marine Corps units to the 3rd Marine Expeditionary Force," Hicks said. "We're also shifting our overall naval presence to the Pacific region."
She noted that Panetta has said the United States intends to have 60 percent of its naval assets based in the Pacific by 2020.
"The department continues to work with our allies and partners in the region to increase the number and size of bilateral and multilateral exercises," Hicks said. "For example, just a few weeks ago, and for the first time, Indonesian [forces] participated alongside Thai, U.S., and Australian fighters in the biannual exercise 'Pitch Black' in Australia's northern territory."
Hicks said these exercises and training with allied and partner militaries are essential to the United States remaining the "security partner of choice" in the region, while encouraging others to share the burden.
"Our forward presence and engagement play an essential role in strengthening the capabilities of Pacific nations to defend and secure themselves," she said. "Building strong partnership in the Asia-Pacific region requires us to sustain and enhance American military strength there."
FROM: U.S. DEPARTMENT OF DEFENSE
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service
WASHINGTON, Sept. 24, 2012 - The entire U.S. government has made a concerted effort to improve U.S.-China relations while implementing the tenets in the defense strategic guidance, a senior Pentagon official said here today.
Speaking to an audience at the Center for Strategic and International Studies, Kathleen Hicks, principal deputy undersecretary of defense for policy explained the U.S. military's strategic shift in focus toward the Asia-Pacific region.
"The investment of time and resources that the entire U.S. government is making in our relationships in this region includes a strong emphasis on improving relations with China," she said. But as President Barack Obama, Secretary of State Hillary Rodham Clinton, Defense Secretary Leon E. Panetta and Deputy Defense Secretary Ashton B. Carter have emphasized, the rebalance is not just about China, she added.
"It is not just about the U.S. goal in the region, and it's not an attempt by the U.S. to contain China," she said.
Hicks said the need for rebalancing became apparent in 2011 as the Defense Department's senior leaders, along with the president's staff, engaged in a strategic review of how to achieve the objectives of the national defense strategy amid changes to the geo-strategic and resource environments.
"The end of the war in Iraq and the onset of our transition to Afghan leadership for security in Operation Enduring Freedom were among the dynamics we felt necessitated a re-look prior to the next [Quadrennial Defense Review]," she said.
Hicks noted Clinton, Panetta and Carter all have visited Asia in recent months.
"These travels provide our leaders venue to describe the United States vision for a prosperous and peaceful Asia-Pacific," she said. "[It will be] supported by a shared commitment to the values of free and open commerce, unimpeded access to the global commons and a system based on a rule of law.
"This vision scans the spectrum of our diplomatic, economic and defense policies," she continued. "Our whole-of-government efforts include strengthening our alliances and partnerships, deepening working relationships with emerging powers, engaging in and strengthening multilateral institutions, expanding trade and investment and advancing principles of democracy and human rights."
Hicks said the rebalancing reflects the larger picture of the entire region "including U.S. engagement with China, including military-to-military relations."
"The stability and prosperity in this region will be shaped by our ability to work together," she said.
Hicks explained some of the changes to come during the course of the rebalancing to the region.
"As U.S. forces return from Afghanistan and reset globally, one of our priorities is having forces present and positioned in the Pacific to assure regional allies and partners, deter threats to regional stability and prevail in conflicts if necessary," she said.
"This includes the Army aligning specific forces to U.S. Pacific Command, as well as the return of Marine Corps units to the 3rd Marine Expeditionary Force," Hicks said. "We're also shifting our overall naval presence to the Pacific region."
She noted that Panetta has said the United States intends to have 60 percent of its naval assets based in the Pacific by 2020.
"The department continues to work with our allies and partners in the region to increase the number and size of bilateral and multilateral exercises," Hicks said. "For example, just a few weeks ago, and for the first time, Indonesian [forces] participated alongside Thai, U.S., and Australian fighters in the biannual exercise 'Pitch Black' in Australia's northern territory."
Hicks said these exercises and training with allied and partner militaries are essential to the United States remaining the "security partner of choice" in the region, while encouraging others to share the burden.
"Our forward presence and engagement play an essential role in strengthening the capabilities of Pacific nations to defend and secure themselves," she said. "Building strong partnership in the Asia-Pacific region requires us to sustain and enhance American military strength there."
NEWS FROM AFGHANISTAN SEPTEMBER 25, 2012
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| Photo: U.S. Air Force |
Combined Force Kills Taliban Weapons Dealer
From an International Security Assistance Force Joint Command News Release
KABUL, Afghanistan, Sept. 25, 2012 - An Afghan and coalition security force killed a Taliban weapons dealer and destroyed his cache of illegal weapons during an operation in the Omnah district of Afghanistan's Paktika province today, military officials reported.
Hizbullah, the weapons dealer, and another armed insurgent maneuvered on the Afghan and coalition troops as the security force approached Hizbullah's compound, officials said. The security force engaged both armed insurgents, killing them. No civilians were harmed.
Hizbullah acquired and provided firearms, ammunition and explosives to Taliban insurgents under his command, enabling them to conduct attacks against security forces throughout the region, officials said. He also was believed to have been attempting to acquire a heavy machine gun and additional equipment for future insurgent attacks.
A number of suspected insurgents were detained in the operation, officials said. The security force also found and destroyed assault rifles, rocket-propelled grenades, an RPG launcher, fragmentation grenades and ammunition.
Also today, a combined force arrested the leader of a Taliban cell and several other suspects in the Panjwai district of Kandahar province. The arrested leader's insurgent cell is suspected of conducting small-arms fire and improvised explosive device attacks against Afghan and coalition forces. He also allegedly is linked to attempts to acquire weapons -- including mortar rounds -- for future attacks. The Taliban leader also was believed to be involved in a plot to kidnap Afghan security officers.
In a Sept. 23 operation, an International Security Assistance Force patrol seized 1,150 pounds of opium during a drug interdiction operation in the Reg-e Khan Neshin district of Helmand province. The ISAF patrol discovered the drugs after stopping and searching a vehicle traveling along a known narcotics smuggling route. ISAF troops detained the driver and destroyed the opium.
U.S. SECRETARY OF STATE CLINTON MEETS WITH LIBYAN PRESIDENT MOHAMED MAGARIAF
FROM: U.S. STATE DEPARTMENTRemarks With Libyan President Mohamed Magariaf Before Their Meeting
Remarks
Hillary Rodham Clinton
Secretary of State
Waldorf-Astoria
New York City
September 24, 2012
SECRETARY CLINTON: Well, it’s wonderful to welcome the President of Libya and his distinguished delegation here to New York.
As we all know, the United States lost a great ambassador and the Libyan people lost a true friend when Chris Stevens and three other Americans were killed in the terrorist assault on our consulate in Benghazi.
Through everything, the President and the Libyan Government have been staunch partners to the United States. I want to thank them in person, as we already have through communications and through your Ambassador, for the important efforts that they are taking to help find and bring to justice all those responsible for the attacks. I’d also like to thank the Libyan people for the outpouring of support they have shown to not only Ambassador Stevens, but on behalf of the United States.
This summer, the Libyan people had the chance to choose their own leaders, and we have a President who has been freely chosen by the Libyan people. Courage has been the defining characteristic of the Libyan people over these last two years – courage to rise up and overthrow a dictator; courage to choose the hard path of democracy; courage to stand against violence and division in their country and the world. And Mr. President, that kind of courage deserves our support.
The United States was proud to stand with you and the Libyan people as you fought for your country last year. And we will continue to stand with you as you now write Libya’s new future as a democracy that will give all of your people a chance to have a better future.
Thank you.
PRESIDENT MAGARIAF: (Via interpreter.) Madam Secretary, at the outset, I would like to thank you, Secretary of State Clinton, for these kind words that you have expressed towards our Libyan people, towards the Libyan revolution, and toward the General National Congress of Libya that is today the legitimate and – the legitimacy and the legitimate authority in Libya.
Madam Secretary, I wouldn’t wish to speak for long, but however, before we continue, I would like to express – again reiterate the expression of my sincerest condolences, the condolences of the Libyan National Congress, the Libyan Government, the Libyan people, to you, to President Obama, and to the American people and to the families of the victims that fell during this painful, tragic tragedy. And they were the victims Ambassador Chris Stevens and his three comrades.
Madam Secretary, that was a very painful, huge tragedy, not only to the American people and the families of the victims but also for the Libyan people. The Libyan people lost a friend, lost someone who was very supportive of them, someone who was very supportive of their revolution, and someone who was always there for them.
Madam Secretary, undoubtedly, the understanding that was expressed by President Obama, by you as Secretary of State, towards these tragic events and your positive expression to continue to support Libya has led to mitigating the repercussions of this regrettable tragedy and incident on our close relationship.
Madam Secretary, their support, of course, mitigated the repercussions and the consequences. However, on the other hand, that support also furthered the responsibility on our shoulders towards taking responsibility – a great responsibility – for this tragedy and also let us look at the necessity to expedite the investigation in the incident and to pursue – to bring to justice those perpetrators. Of course, we are – we express our great readiness to cooperate with the U.S. Government in order to cooperate in the investigation and bring those perpetrators to justice.
Madam Secretary, I also will seize this opportunity to reaffirm that what happened on the 11th of September towards these U.S. citizens does not express in any way the conscience of the Libyan people, their aspirations, their hopes, or their sentiments towards the American people.
Madam Secretary, and I am confident that the protest that happened last Friday in Benghazi and the other protests that took place across the Libyan cities in protest to what happened are a very clear message to how we feel toward the United States. These protests embodied the conscience of the Libyan people. The Libyan people have spoken through these protests last Friday and expressed their true sentiments, how they feel towards the U.S. Administration and American people. You have mentioned the courage of the Libyan people, and we truly appreciate those words.
Madam Secretary, there is no doubt that the Libyan people have shown to the world and perhaps to across the world with their true courage and their love for their country and for the love for the freedom.
Madam Secretary, their courage would not have been possible for them also to win over a tyrant if it were not for the unlimited U.S. support, the political and military support of the United States, and the United States support in – at all levels that was given to the Libyan revolution, that the U.S. Administration gave to the Libyan revolution as well as your support, President Obama’s support, the American people’s support, and the support of the entire international community to this revolution.
This not only makes it our duty to thank you, thank the United States as well as the international community for that support, but that also makes it our duty to rise up to the level of the confidence and the trust that you, the United States, and the international community have put in us.
Madam Secretary, of course, despite all the challenges, the perils, the difficulties, and the – all the obstacles that we faced, the Libyan people were able – humbly as well as with pride – to show to the world the degree of their keenness to safeguard this revolution and to make it a success in order to bring about the goals – the noble and great goals of this revolution, mainly to establish a constitutional, democratic, civil state that would be based on pluralism and a peaceful transfer of authority.
Undoubtedly, these elections that happened over the past summer and brought about the General National Congress in Libya and also demonstrated the transparent elections that brought to power a new prime minister, all these events show and send a message of the new road that Libya is determined to take.
I am confident that the General National Congress and this new government – the new government are keen on undertaking their duties and fulfilling their responsibilities with integrity and sincerity as well as responsibility towards the world.
U.S. AIR FORCE NATIONAL GUARD HISTORICAL PHOTO
FROM: U.S. AIR FROCE NATIONAL GUARD
A C-130 of the 130th Tactical Airlift Group, West Virginia Air National Guard, flies over the Pyramids of Giza, Egypt, 1981.
EPA PRESENTS 2012 GREEN POWER LEADERSHIP AWARDS
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| Photo: Solar Panels. Credit: U.S. Navy. |
EPA Honors Organizations for Supporting Green Power
WASHINGTON – Today the U.S. Environmental Protection Agency (EPA) presented its 12th annual Green Power Leadership Awards to 24 Green Power Partners and three suppliers for their achievements in advancing the nation’s renewable electricity market. For most municipalities, electricity usage is the single-largest source of greenhouse gas emissions. By using green power, communities and businesses can dramatically reduce greenhouse gas emissions, create local jobs, and improve public health.
"Our 2012 Green Power Leadership Award winners have not only demonstrated commendable civic leadership in their efforts to use renewable energy sources, they’ve also helped to reduce our carbon footprint and cut back on pollution – all while supporting America's growing renewable energy industry," said EPA Administrator Lisa P. Jackson. "Thanks to their commitment -- and the commitment of all of our Green Power Partners -- our country is one step closer to a cleaner, more sustainable energy future."
"Green power" is electricity generated from renewable resources, such as solar, wind, geothermal, biogas and low-impact hydro, and produces no net increase of greenhouse gas emissions. From purchasing 100-percent green power to installing large-scale solar panel arrays, the award winners help demonstrate that green power makes sense not only for Americans' health and environment but for business' bottom lines.
The 2012 Green Power Leadership Award winners are listed below in the following categories:
First-ever Sustained Excellence in Green Power: Intel Corporation, Kohl’s Department Stores, Staples, and Whole Foods Market
Green Power Partner of the Year: City of Austin, Texas; Hilton Worldwide; Microsoft Corporation; and the University of Oklahoma
Green Power Community of the Year: Beaverton, Ore. and Oak Park, Ill.
Green Power Purchasing: American University; Bloomberg L.P.; City of Philadelphia, Pa.; Hobart and William Smith Colleges; Kettle Foods; Lockheed Martin; McDonald’s USA, LLC; MOM’s Organic Market; NYSE Euronext; Quinnipiac University; TD Bank; and The North Face
On-site Generation: Coca-Cola Refreshments and Zotos International, Inc.
Green Power Supplier of the Year: Renewable Choice Energy and Sterling Planet
Innovative Green Power Program of the Year: Wellesley Municipal Light Plant
The 24 award-winning partners were chosen from more than 1,300 partner organizations. Utilities, renewable energy project developers and other green power suppliers were eligible to apply for the Supplier of the Year and Program of the Year awards.
EPA also announced the winners of the second annual Green Power Community Challenge, a national competition between communities to use renewable energy and reduce greenhouse gas emissions. In addition to the Green Power Community of the Year award, Oak Park, Ill. also won the community challenge for achieving the highest green power percentage of total electricity use at 92 percent. Washington, D.C. also won the challenge for a second year in a row for using the most green power annually with more than one billion kilowatt-hours (kWh).
EPA, through the Green Power Partnership, works with partner organizations, over half of which are small businesses and nonprofit organizations, to reduce the environmental impacts of conventional electricity use. Partners are voluntarily using more than 23 billion kWh of green power annually. Through their use of green power, these organizations are avoiding carbon pollution equal to that created by the electricity use of more than two million average American homes each year.
SECRETARY OF DEFENSE PANETTA ADDRESSES SUICIDE PREVENTION
FROM: U.S. DEPARTMENT OF DEFENSEPanetta Discusses Efforts to Tackle Suicide
By Amaani Lyle
American Forces Press Service
WASHINGTON, Sept. 24, 2012 - In an interview with a North Carolina newspaper, Defense Secretary Leon E. Panetta voiced concern over suicide rates throughout the military and acknowledged the complexity of the issue.
The tragedy of suicide eludes "quick fixes," the secretary told Greg Barnes of the Fayetteville Observer.
"It's a real human loss," he said. "This situation, people who take their lives, it just strikes me as such a terrible waste of humanity when that happens."
Panetta described suicide as "very much a human problem" in which society as a whole grapples for answers.
"We've got to deal with it as best we can, because we are a family," Panetta said. "In the military, we have to take care of our family members, and they deserve the best treatment and support we can give them."
The secretary outlined the Defense Department's efforts in combatting suicide, specifically through joint funding with the Department of Veterans Affairs to allot $100 million toward advancing diagnosis and treatment.
"We've really been pushing on trying to open up access to quality mental and behavioral health care, trying to expand access, so we've got some 9,000 new psychiatrists and psychologists, social workers and nurses," Panetta said. In addition to increasing the roster of mental health professionals by 35 percent, the DOD has made efforts to elevate ongoing mental fitness and must not stop there, he added.
"I know the commanders themselves have gone out to their troops and basically said that we have got to make people at every level aware and sensitive to this problem to make sure we can spot the signs of stress," Panetta explained. "But it's going to take all of that and a hell of a lot more to try to be able to get a handle on this terrible problem."
The secretary said he believes that addressing the stigma of post-traumatic stress disorder and similar mental health issues must start at the top, with an understanding of the illness's intricacies.
"Just like sexual assault, when it comes to suicides, we have got to make our leadership in the military aware of what this problem is about," he said.
Leadership must therefore forge avenues for friends and family members to seek help for someone they suspect may be struggling, the secretary said.
"We've got to make family members feel that there's a way to approach this within the family network, that can respond to that individual with compassion, with caring. ... We have got to work on the ability of family members to feel comfortable that they have a place to go when they're worried about someone committing suicide," the secretary said.
Noting that suicide is an issue in society at large, not just in the military, the secretary said community support may be available to help the military address its suicide problem.
Panetta said he discussed the suicide issue with the military's combatant commanders recently.
"They're aware of it," he said. "They're concerned by it. As I told them, it's important that we have to continue to kick ass on this issue. We can't just assume that it's going to be dealt with."
The issue has to be at the top of all leaders' agendas, he said, and should be one of the things he and other leaders talk about when they meet with troops.
"We owe it to the people who serve in our military -- people who are willing to put their lives on the line to protect our country," Panetta added. "Surely, we owe it to them to do everything we can to protect them."
U.S. PRESS ISSUES NEGATIVE PRESS STATEMENT ON BELARUSIAN ELECTION
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| Map Credit: CIA World Factbook. |
Belarusian Election
Press Statement
Victoria Nuland
Department Spokesperson, Office of the Spokesperson
Washington, DC
September 24, 2012
The September 23 parliamentary elections in Belarus fell short of international standards and their conduct cannot be considered free or fair. The preliminary assessment of the OSCE election observation mission found that the elections were "not competitive from the start." The observer mission cited the limitation of choice for voters, the lack of impartiality on the part of the election commission, and the lack of proper counting procedures.
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| Map Credit: CIA World Factbook. |
CIA BACKGROUND OF BELARUS
After seven decades as a constituent republic of the USSR, Belarus attained its independence in 1991. It has retained closer political and economic ties to Russia than any of the other former Soviet republics. Belarus and Russia signed a treaty on a two-state union on 8 December 1999 envisioning greater political and economic integration. Although Belarus agreed to a framework to carry out the accord, serious implementation has yet to take place. Since his election in July 1994 as the country's first president, Aleksandr LUKASHENKO has steadily consolidated his power through authoritarian means. Government restrictions on freedom of speech and the press, peaceful assembly, and religion remain in place.
ECONOMY
As part of the former Soviet Union, Belarus had a relatively well-developed industrial base; it retained this industrial base - which is now outdated, energy inefficient, and dependent on subsidized Russian energy and preferential access to Russian markets - following the breakup of the USSR. The country also has a broad agricultural base which is inefficient and dependent on government subsidies. After an initial burst of capitalist reform from 1991-94, including privatization of state enterprises, creation of institutions of private property, and development of entrepreneurship, Belarus' economic development greatly slowed. About 80% of all industry remains in state hands, and foreign investment has been hindered by a climate hostile to business. A few banks, which had been privatized after independence, were renationalized. State banks account for 75% of the banking sector. Economic output, which had declined for several years following the collapse of the Soviet Union, revived in the mid-2000s thanks to the boom in oil prices. Belarus has only small reserves of crude oil, though it imports most of its crude oil and natural gas from Russia at prices substantially below the world market. Belarus exported refined oil products at market prices produced from Russian crude oil purchased at a steep discount. In late 2006, Russia began a process of rolling back its subsidies on oil and gas to Belarus. Tensions over Russian energy reached a peak in 2010, when Russia stopped the export of all subsidized oil to Belarus save for domestic needs. In December 2010, Russia and Belarus reached a deal to restart the export of discounted oil to Belarus. In November 2011, Belarus and Russia reached an agreement to drastically reduce the price of natural gas in exchange for selling to Russia the remaining share of Beltransgaz, the Belarusian natural gas pipeline operator. Little new foreign investment has occurred in recent years. In 2011, a financial crisis began, triggered by government directed salary hikes unsupported by commensurate productivity increases. The crisis was compounded by an increased cost in Russian energy inputs and an overvalued Belarusian ruble, and eventually led to a near three-fold devaluation of the Belarusian ruble in 2011. The situation has stabilized short-term due to a $3 billion loan from the Russian-dominated Eurasian Economic Community Bail-out Fund, a $1 billion loan from the Russian state-owned bank Sberbank, and the $2.5 billion sale of Beltranzgas to Russian state-owned Gazprom.
STATE DEPARTMENT STATEMENT ON MURDER OF ANTONIO TREJO CABRERA
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| From: CIA World Factbook. |
Honduras: Murder of Antonio Trejo CabreraPress Statement
Victoria Nuland
Department Spokesperson, Office of the Spokesperson
Washington, DC
September 24, 2012
The United States is saddened and outraged by the murder of Honduran attorney and human rights defender Antonio Trejo Cabrera, and urges the Honduran government to conduct a full and transparent investigation of his death immediately.
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| From: CIA World Factbook |
To strengthen measures meant to protect human rights defenders such as Mr. Trejo Cabrera, Under Secretary for Civilian Security, Democracy and Human Rights Maria Otero led a U.S. delegation to the first Bilateral Human Rights Working Group with the Government of Honduras on September 13, 2012. During the working group meetings, the United States and Honduras committed to work together to combat impunity, reform the Honduran security and justice sectors, and enhance the capacity of Honduran human rights institutions to operate effectively.
The United States is dedicated to working with the Government of Honduras to ensure that those responsible for this reprehensible act are brought to justice, and through the Special Victims Task Force, is assisting the Honduran investigation.
Mr. Trejo Cabrera worked tirelessly to resolve the tragic and complex land conflict in Honduras’s Bajo Aguan, relying on legal challenges and negotiations in a region where disputes are too often settled through violence. We urge all parties to continue his efforts to bring peace to the Bajo Aguan.
TWO MARINES FACE TRIAL IN DESECRATION INCIDENT
Marines Charged in Desecration Incident Face TrialFrom a Marine Corps Combat Development Command News Release
QUANTICO, Va., Sept. 24, 2012 - Charges against two Marines were referred to trial by courts-martial Sept. 21 for their alleged involvement in urinating on deceased Taliban fighters and for posing for unofficial photographs with human casualties in Afghanistan.
Marine Corps Lt. Gen. Richard P. Mills, commanding general of Marine Corps Combat Development command, referred the charges.
The incident allegedly took place during a counterinsurgency operation near Sandala in the Musa Qala district of Afghanistan's Helmand province on or about July 27, 2011. The charges were referred to courts-martial by Lieutenant General Richard P. Mills, the Commanding General of Marine Corps Combat Development Command.
Marine Corps Staff Sgts. Joseph W. Chamblin and Edward W. Deptola also were charged for other misconduct that allegedly took place during the same operation, including being derelict in their duties by failing to properly supervise junior Marines, failing to require junior Marines to wear their personal protective equipment, failing to stop and report the misconduct of junior Marines, failing to report the negligent discharge of a grenade launcher, and failing to stop the indiscriminate firing of weapons.
Deptola also is charged with failing to stop the unnecessary damaging of Afghan compounds and wrongfully and indiscriminately firing a recovered enemy machine gun.
Both Marines are assigned to 3rd Battalion, 2nd Marine Regiment, at Camp Lejeune, N.C.
Last month, three Marines received nonjudicial punishment for misconduct that came to light during several investigations into the desecration incident, shown in a video that became public and circulated widely on the Internet in January. Disciplinary actions regarding other Marines will be announced at a later date, officials said.
The charges are accusations against the individual Marines, officials emphasized, and the accused are presumed innocent and are guaranteed the right to due process under the Uniform Code of Military Justice.
"There are other pending cases related to this incident. In order to preserve the integrity of the investigations and to ensure fair and impartial legal proceedings in the future, we will not discuss evidence or specific findings of the investigations," the command said in a written statement. "We will be as forthright as possible while preserving the rights of the accused and the fairness and integrity of the military justice process."
TYCO INTERNATIONAL LTD. CHARGED BY SEC WITH MAKING ILLICIT PAYMENTS TO FOREIGN OFFICIALS
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| Credit: U.S. Marshals Service |
Washington, D.C., Sept. 24, 2012 — The Securities and Exchange Commission today charged Tyco International Ltd. with violating the Foreign Corrupt Practices Act (FCPA) when subsidiaries arranged illicit payments to foreign officials in more than a dozen countries.
The SEC alleges that subsidiaries of the Swiss-based global manufacturer perpetuated schemes that typically involved payments of fake "commissions" or the use of third-party agents to funnel money improperly to obtain lucrative contracts. Overall, Tyco reaped illicit benefits amounting to more than $10.5 million as a result of the paid to win business.
Tyco, whose securities are publicly traded in the U.S., agreed to pay more than $26 million to settle the SEC’s charges and resolve a criminal matter announced today by the U.S. Department of Justice.
"Tyco’s subsidiaries operating in Asia and the Middle East saw illicit payment schemes as a typical way of doing business in some countries, and the company illicitly reaped substantial financial benefits as a result," said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement.
The SEC alleges that Tyco subsidiaries operated 12 different illicit payment schemes around the world starting before 2006 and continuing until 2009. The most profitable scheme occurred in Germany, where agents of a Tyco subsidiary paid third parties to secure contracts or avoid penalties or fines in several countries. These payments were falsely recorded as "commissions" in Tyco’s books and records when they were in fact bribes to pay off government customers. Tyco’s benefit as a result of these illicit payments was more than $4.6 million.
According to the SEC’s complaint, Tyco’s subsidiary in China signed a contract with the Chinese Ministry of Public Security for $770,000 but reportedly paid approximately $3,700 to the "site project team" of a state-owned corporation to be able to obtain the contract. This amount was improperly recorded as a commission. Tyco’s subsidiary in France recorded payments to individuals from 2005 to 2009 for "business introduction services." However, one of the individuals receiving payments was a security officer at a government-owned mining company in Mauritania, and many of the earlier payments were deposited in the official’s personal bank account in France. In Thailand, Tyco’s subsidiary had a contract to install a CCTV system in the Thai Parliament House in 2006, and paid more than $50,000 to a Thai entity that acted as a consultant. The invoice for the payment refers to "renovation work," but Tyco is unable to ascertain what, if any, work was actually done.
The SEC alleges that another scheme occurred in Turkey, where Tyco’s subsidiary retained a New York City-based sales agent who made illicit payments involving the sale of microwave equipment in September 2006 to an entity controlled by the Turkish government. Employees at Tyco’s subsidiary were well aware that the agent was paying foreign government customers to obtain orders. One internal e-mail stated, "Hell, everyone knows you have to bribe somebody to do business in Turkey. Nevertheless, I’ll play it dumb if [the sales agent] should call." The benefit obtained by Tyco as a result of the September 2006 deal was $44,513.
The SEC’s complaint alleges that Tyco’s books and records were misstated as a result of the misconduct, and Tyco failed to devise and maintain internal controls sufficient to detect the violations. The complaint also alleges that the payments by the sales agent to Turkish government officials violated the anti-bribery provisions of the FCPA.
In arriving at the settlement, the Commission considered Tyco’s extensive efforts to identify and remediate its wrongdoing. Tyco conducted a global review and internal investigation for potential FCPA violations and voluntarily disclosed its findings to the SEC while implementing significant, broad-spectrum remedial measures. Tyco consented to a proposed final judgment that orders the company to pay $10,564,992 in disgorgement and $2,566,517 in prejudgment interest. Tyco also agreed to be permanently enjoined from violating Section 13(b)(2)(A), Section 13(b)(2)(B), and Section 30A(a) of the Securities Exchange Act of 1934.
In the parallel criminal proceedings, the Justice Department entered into a Non-Prosecution Agreement with Tyco in which the company will pay a penalty of approximately $13.68 million.
The SEC’s case was investigated by David Frohlich, Stephen E. Jones, Matthew B. Greiner, and Brent S. Mitchell. The Commission acknowledges the assistance of the U.S. Department of Justice’s Fraud Section in this matter.
GUINEA-BISSAU INDEPENDENCE DAY
Guinea-Bissau National Day Message
Press Statement
Hillary Rodham Clinton
Secretary of State
Washington, DC
September 24, 2012
On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the people of Guinea-Bissau as you celebrate your Independence Day this September 24. We share the desires of the people of Guinea-Bissau for reforms that will lead to democracy, good governance and economic development, including free and fair elections early next year. As you celebrate your independence, I wish all Bissau-Guineans a year of peace, reconciliation and prosperity.
CIA WORLD FACTBOOK BACKGROUND ON BUINEA-BISSAU
Since independence from Portugal in 1974, Guinea-Bissau has experienced considerable political and military upheaval. In 1980, a military coup established authoritarian dictator Joao Bernardo 'Nino' VIEIRA as president. Despite setting a path to a market economy and multiparty system, VIEIRA's regime was characterized by the suppression of political opposition and the purging of political rivals. Several coup attempts through the 1980s and early 1990s failed to unseat him. In 1994 VIEIRA was elected president in the country's first free elections. A military mutiny and resulting civil war in 1998 eventually led to VIEIRA's ouster in May 1999. In February 2000, a transitional government turned over power to opposition leader Kumba YALA after he was elected president in transparent polling. In September 2003, after only three years in office, YALA was ousted by the military in a bloodless coup, and businessman HenriqueVIEIRA was re-elected president pledging to pursue economic development and national reconciliation; he was assassinated in March 2009. Malam Bacai SANHA was elected in an emergency election held in June 2009, but he passed away abruptly in January 2012. A military coup on 12 April 2012 prevented Guinea-Bissau's second-round presidential election - to determine SANHA's successor - from taking place.
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