AFGHAN AND NATO TROOPS WORK TOGETHR AGAIN

Defense Secretary Leon E. Panetta and Army Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, brief the press at the Pentagon Sept. 25, 2012. DOD photo by Erin A. Kirk-Cuomo
FROM: U.S. DEPARTMENT OF DEFENSE

By Jim Garamone
American Forces Press Service
WASHINGTON, Sept. 27, 2012 - Afghan and NATO troops have resumed partnered operations which were suspended earlier this month because of a series of deadly insider attacks, Defense Secretary Leon E. Panetta announced during a news conference here today.

Marine Corps Gen. John R. Allen, the top U.S. and NATO commander in Afghanistan, had ordered that all combined operations below the battalion level be approved by regional commanders following attacks by Afghan soldiers and police that have killed 51 members of the coalition this year.

However, Afghan and coalition troops are now back to conducting partnered operations as before, Panetta told Pentagon reporters. The military believes some of the insider attacks were perhaps triggered by Muslim anger over an American-made internet video that defamed the Prophet Muhammad.

"I can now report to you that most ISAF units have returned to their normal partnered operations at all levels," said Panetta, who was accompanied by Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff.

Dempsey, just back from a visit to Afghanistan, said partnering efforts are back to the level they were before the difficulties. Around 90 percent of all operations in the country are partnered.

Even with the insider attacks, Panetta said the coalition and Afghan efforts are paying off. He said the Taliban were in control of large swaths of Afghanistan and were poised to take more when the coalition surge into the country began in December 2009.

Last week, the secretary announced the end of the surge, with the departure of the last of the 33,000 troops who were ordered deployed. There are now 68,000 American service members in Afghanistan.

"[The surge] accomplished the primary objectives of reversing the Taliban's momentum on the battlefield and dramatically increased the size and capability of the Afghan national security forces," Panetta said.

This will continue, said Dempsey, noting coalition troops will continue to partner with Afghan soldiers and police. The Taliban has failed to recover momentum or any territory. "Our Afghan partners are working with us to shut down the threat of insider attacks," the chairman said. "As one Afghan army commander told me, insider attacks are an affront to their honor, at odds with their culture and their faith."

Taliban insurgents are actively trying to infiltrate Afghan army and police formations, Dempsey said. The insurgent group is also trying to turn Afghan soldiers and police against their coalition allies.

Dempsey said coalition forces are adapting to the Taliban's change in tactics.

"That's what professional militaries do," he said. "And we are doing it in a way that ensures we continue to be able to partner."

The Taliban wants to break the coalition, the general said, but the coalition's resolve to stand with Afghan formations is strong.

Still, it will be tough going in the country, Panetta said. "The enemy we are dealing with ... is adaptive and resilient," the secretary said. "Their focus has shifted to carrying out high-profile attacks in order to undermine the new sense of security that has been felt by ordinary Afghans."

Panetta expects there will be more high-profile attacks like the one that struck Camp Bastion last week.

"The enemy will do whatever they can to try and break our will using this kind of tactic. That will not happen," he said.

Afghan forces are the "defeat mechanism" of the insurgency, Panetta said.

"We have an enduring commitment to an Afghanistan that can secure and govern itself and that is never again a safe haven from which terrorists can attack us," he said. "Our men and women in uniform, our fighting forces, ISAF, Afghanistan fighting forces I think have sent a strong message to the Taliban that time is not on their side."

NEWS FROM AFGHANISTAN, SEPTEMBER 27, 2012

Photo:  Afghanistan.  From:  CIA World Factbook.

FROM: U.S. DEPARTMENT OF DEFENSE

Combined Force Detains Insurgents, Seizes Narcotics
From an International Security Assistance Force Joint Command News Release

KABUL, Afghanistan, Sept. 27, 2012 - A combined security force detained several suspected insurgents during an operation to arrest a Taliban facilitator in the Washer district of Helmand province today, military officials reported.

The facilitator is alleged to coordinate the movement of insurgent fighters and weapons, as well as coordinating attacks across northern Helmand province, officials said.

The security force also seized multiple assault rifles and several pounds of illegal narcotics, officials said.

Also today, an Afghan-led, coalition-supported force killed a number of insurgents and detained two suspects during a search for a Haqqani leader in the Sabari district of Khost province. The sought-after insurgent leader is linked to multiple rocket-propelled grenade attacks on Afghan and coalition security forces. The security force also seized several assault rifles and other military equipment.

In Sept. 26 operations:

An Afghan-led, coalition-supported force recovered a cache of weapons, improvised explosive devices and IED-making components in the Qalat district of Zabul province. The force found some pressure plate IEDs, 573 pounds of ammonium nitrate, 220 pounds of potassium chloride, 55 pounds of homemade explosive, 33 pounds of aluminum powder, RPGs, ammunition, and two Afghan National Security Forces uniforms.

In Sept. 23 operations:

-- Al-Qaida facilitator Abdul Rauf was killed along with two other insurgents during an airstrike in the Marawarah district of Kunar province. Abdul Rauf was a Pakistani al-Qaida facilitator who coordinated the movement of foreign fighters into Afghanistan. He also constructed IEDs for use in attacks against security forces. No civilians were harmed and no civilian structures were damaged during the operation.

OCEAN ACIDIFICATION RESEARSH

Picture:  Ocean Acidification.  From:  NOAA.

FROM:  NATIONAL SCIENCE FOUNDATION
Ocean Acidification: Finding New Answers Through National Science Foundation Research Grants

September 26, 2012
With increasing levels of carbon dioxide accumulating in the atmosphere and moving into marine systems, the world's oceans are becoming more acidic.

The oceans may be acidifying faster today than at anytime in the past 300 million years, scientists have found.

To address the concern for acidifying marine ecosystems, the National Science Foundation (NSF) recently awarded new grants totaling $12 million in its Ocean Acidification program.

The program is part of NSF's Science, Engineering and Education for Sustainability (SEES) investment.

The awards, the second round in this program, are supported by NSF's Directorates for Geosciences and Biological Sciences, and Office of Polar Programs.

From tropical oceans to icy seas, the projects will foster research on the nature, extent and effects of ocean acidification on marine environments and organisms in the past, present and future.

"With this round of awards, NSF has an increasingly diverse portfolio of research projects on ocean acidification," says David Garrison, program director in NSF's Directorate for Geosciences and chair of NSF's Ocean Acidification Working Group.

"These scientists will make major contributions to understanding this serious environmental threat," says Garrison.

"We look forward to building on this effort over the next few years, and expect that ocean acidification research will be a major contribution to SEES efforts at NSF."

Ocean acidification affects marine ecosystems, organisms' life histories, ocean food webs and biogeochemical cycling, scientists have discovered.

The researchers believe there is a need to understand the chemistry of ocean acidification and its interplay with marine biochemical and physiological processes before Earth's seas become inhospitable to life as it is known today.

Animal species from pteropods--delicate, butterfly-like planktonic drifters--to hard corals are affected by ocean acidification. So, too, are the unseen microbes that fuel ocean productivity and influence the chemical functioning of ocean waters.

As the oceans become more acidic, the balance of molecules needed for shell-bearing organisms to manufacture shells and skeletons is altered.

The physiology of many marine species, from microbes to fish, may be affected. A myriad of chemical reactions and cycles are influenced by the pH, or acidity, of the oceans.

"The Ocean Acidification awards address how organisms detect carbon dioxide and levels of acidity, and regulate these variables in their cells and body fluids," says William Zamer, program director in NSF's Directorate for Biological Sciences.

"These projects include studies of whether populations of animals have the genetic capacity to adapt to ocean acidification. The findings will yield new insights about how a future more acidic ocean will affect marine life."

Has ocean life faced similar challenges in our planet's past?

Earth system history informs our understanding of the effects of ocean acidification in the present and the future, says Garrison.

For a true comprehension of how acidification will change the oceans, he says, we must integrate paleoecology with marine chemistry, physics, ecology and an understanding of the past environmental conditions on Earth.

Overall, Ocean Acidification grantees will ask questions such as will regional differences in marine chemistry and physics increase acidification? Are there complex interactions, cascades and bottlenecks that will emerge as the oceans acidify, and what are their ecosystem implications? And if current trends continue, how far-reaching will the changes be?

U.S. SECURITIES AND EXCHANGE COMMISSION

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to help educate investors about affinity fraud, a type of investment scam that preys upon members of identifiable groups, such as religious or ethnic communities or the elderly.

What is Affinity Fraud?

Affinity fraud almost always involves either a fake investment or an investment where the fraudster lies about important details (such as the risk of loss, the track record of the investment, or the background of the promoter of the scheme). Many affinity frauds are Ponzi or pyramid schemes, where money given to the promoter by new investors is paid to earlier investors to create the illusion that the so-called investment is successful. This tricks new investors into investing in the scheme, and lulls existing investors into believing their investments are safe. In reality, even if there really is an actual investment, the investment typically makes little or no profit. The fraudster simply takes new investors’ money for the fraudster’s own personal use, often using some of it to pay off existing investors who may be growing suspicious. Eventually, when the supply of investor money dries up and current investors demand to be paid, the scheme collapses and investors discover that most or all of their money is gone.

How Does Affinity Fraud Work?

Fraudsters who carry out affinity scams frequently are (or pretend to be) members of the group they are trying to defraud. The group could be a religious group, such as a particular denomination or church. It could be an ethnic group or an immigrant community. It could be a racial minority. It could be members of a particular workforce – even members of the military have been targets of these frauds. Fraudsters target any group they think they can convince to trust them with the group members’ hard-earned savings.

At its core, affinity fraud exploits the trust and friendship that exist in groups of people who have something in common. Fraudsters use a number of methods to get access to the group. A common way is by enlisting respected leaders from within the group to spread the word about the scheme. Those leaders may not realize the "investment" is actually a scam, and they may become unwitting victims of the fraud themselves.

Because of the tight-knit structure of many groups, it can be difficult for regulators or law enforcement officials to detect an affinity scam. Victims often fail to notify authorities or pursue legal remedies. Instead, they try to work things out within the group. This is particularly true where the fraudsters have used respected community or religious leaders to convince others to join the investment.

How to Avoid Affinity Fraud

Here are a few tips to help you avoid affinity fraud.
Even if you know the person making the investment offer, be sure to research the person’s background, as well as the investment itself – no matter how trustworthy the person who brings the investment opportunity to your attention seems to be. Be aware that the person telling you about the investment may have been fooled into believing that the investment is legitimate when it is not.
Never make an investment based solely on the recommendation of a member of an organization or group to which you belong. This is especially true if the recommendation is made online. An investment pitch made through an online group of which you are a member, or on a chat room or bulletin board catered to an interest you have, may be a fraud.
Do not fall for investments that promise spectacular profits or "guaranteed" returns. Similarly, be extremely leery of any investment that is said to have no risks. Very few investments are risk-free. Promises of quick and high profits, with little or no risk, are classic warning signs of fraud.
Be skeptical of any investment opportunity that you can’t get put in writing. Fraudsters often avoid putting things in writing. Avoid an investment if you are told they do "not have the time to put in writing" the particulars about the investment. You should also be suspicious if you are told to keep the investment opportunity confidential or a secret.
Don’t be pressured or rushed into buying an investment before you have a chance to research the "opportunity." Just because someone you know made money, or claims to have made money, doesn’t mean you will, too. Be especially skeptical of investments that are pitched as "once-in-a-lifetime" opportunities, particularly when the salesperson bases the recommendation on "inside" or confidential information.
Recent Affinity Fraud Schemes

Ponzi scheme promoters raised almost $6 million from nearly 80 evangelical Christian investors through fraudulent, unregistered offerings of stock and short-term, high-yield promissory notes issued by their company, which was marketed as a voice-over-internet-protocol video services provider around the world.

Fraudster raised nearly $11 million claiming returns as high as 26%. He typically met and pitched prospective investors over meals at expensive restaurants in and around Fort Lauderdale. His clients typically came to him through word-of-mouth referrals among friends and relatives. A significant number of the victims of his scheme were members of the gay community in Wilton Manors, Florida.

TV and teens’ weight

TV and teens’ weight

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY
Flight deck crewmen remove chock and chains from a Brazilian navy MK.21A Super Lynx helicopter on the flight deck of the Ticonderoga-class guided-missile cruiser USS Anzio (CG 68) during UNITAS Atlantic 2012. UNITAS is an annual multi-national exercise that involves naval forces from 13 partner nations to promote interoperability and cooperation with each other and is hosted by U.S. Fourth Fleet. U.S. Navy photo by Mass Communications Specialist 3rd Class Frank J. Pikul (Released) 120925-N-ZE938-041

Landing Craft Air Cushion (LCAC) 10, bottom, assigned to Naval Beach Unit (NBU) 7, passes by LCAC 9 during well deck operations aboard the amphibious assault ship USS Bonhomme Richard (LHD 6). Bonhomme Richard is the lead ship of the only forward-deployed amphibious ready group and is operating in the U.S. 7th Fleet area of responsibility. U.S. Navy photo by Mass Communication Specialist 2nd Class Michael Russell (Released) 120925-N-KB563-060

U.S. STATE DEPARTMENT SPRECIAL BRIEFING ON MEETINGS BETWEEN U.S., JORDAN AND THE PALESTINIAN AUTHORITY



CREDIT:  U.S. STATE DEPARTMENT

FROM: U.S. DEPARTMENT OF STATE
Background Briefing on the Secretary's Bilateral Meetings With Jordanian King Abdullah II and Palestinian Authority President Mahmoud Abbas
Special Briefing

Senior State Department Official
Waldorf Astoria Hotel
New York City
September 26, 2012
MODERATOR: All right, everybody. Thank you for hanging with us for the late hour. We have with us [Senior State Department Official], hereafter Senior State Department Official, to talk to you both about the working lunch that the Secretary had with Jordanian King Abdullah, and also about the meeting that she just had with the President of the Palestinian Authority, Mr. Abbas. Take it away, [Senior State Department Official].

SENIOR STATE DEPARTMENT OFFICIAL: Okay. Well, thank you very much, and good evening. We might start with the working lunch that the Secretary had. It lasted about an hour. It was preceded by, oh, I don’t know, about 15-20 minutes of one-on-one time as well. It was over at the King’s Hotel at the Mandarin Oriental. And the participants in the lunch were, on our side, in addition to the Secretary, Acting Assistant Secretary Beth Jones, Special Envoy David Hale, (inaudible) the Policy Planning Chief, Jake Sullivan, on our side. And on their side it was the Foreign Minister Nasser Judeh, the King’s Chief of Staff Imad Fakhoury, and their Ambassador to Washington Alia Bouran.

As you know, the relationship between Jordan and the United States is one of – it’s very, very close, and between the King and the Secretary and our leadership similarly one very close. So this was a good opportunity to compare notes about developments across the region that we and the King are both focused on.

I’d say that it really boiled down to three topics. One was Middle East peace and the Israeli-Palestinian set of issues. The second related to Syria, which of course is a major challenge for Jordan. And third, the internal reform agenda of the King and the people of Jordan.

On Middle East peace, the King has been a leader on this from the beginning. Most recently in January, he devoted a lot of time and energy and effort and showed great leadership and skill in bringing the parties together at a level below that of the leaders for a set of talks. He has been someone, along with the Foreign Minister, who has been in very close coordination with us on the way forward. We talked a bit about that, and certainly we understood that we can count on Jordan and his leadership when we need to, and we often do, to try to overcome the obstacles that are blocking the parties right now.

On Syria, I think that there was very lengthy discussion about the terrible situation there and the options to try to reverse that and change it. The humanitarian situation, which weighs very heavily on Jordan, was also a major theme – the refugee flows and the danger that there will be more to come into Jordan and the challenges and burdens that that poses on that country with its limited resources. The Secretary talked about what we could do to help the Jordanians bear that burden and to work with the international community and the UN and others to make sure that the resources were available for them to do that.

There was also a discussion, obviously, of the political situation there and how we would work together and work – and try to encourage the Syrian opposition to work together on a unity plan. And there was an agreement that we would be working and talking more about this on Friday when there is a Friends of the Syrian Opposition Ad Hoc meeting. So this is something that we’re both very much focused on. And of course, the Secretary made very clear our position on President Assad and the fact that he must go.

On the set of reform issues, the King was very upbeat and very optimistic about the direction things are going in and the pace at which they’re going in. Secretary Clinton welcomed the progress that has been made so far to broaden and deepen participation in the political process for all Jordanians, by all Jordanians, and expressed our support for pursuing that in the way that he described. That, in a nutshell, was the discussion with the Jordanians, so I move onto the Palestinians.

We had a meeting there with – at his hotel at the Grand Hyatt – that lasted for about half an hour, and then they had another 10 minutes or so one-on-one. In the larger meeting, participation on our side was Ambassador Susan Rice, Under Secretary of State Sherman, Michael Ratney, our Consul General in Jerusalem who came here for the meeting, Acting Assistant Secretary Beth Jones from the Near East Bureau, Special Envoy David Hale, and Policy Planning Director Jake Sullivan. On the Palestinian side the participants were their lead negotiator Saeb Erekat and key advisors to the President, Akram Haniyeh, Nabil Aburudainah, and their representative – the PLO representative in Washington, Maen Areikat.

The discussion also, as always I think with Abu Mazen, covered a whole range of issues. He is watching the region very closely and he has been a leader of the Palestinian people for a very long time, and his insights and observations are of great interest to us, and he shared them. They compared notes on really everything you could think of – Syria certainly, Lebanon, Jordan, Iran, Egypt, and all the changes going on around the Palestinians. And certainly, we recognize that these events reflect on the Palestinians and the choices that they have as they look at the future.


The Secretary also asked him about the situation in the West Bank and expressed her concern for what we’ve seen in terms of the financial and economic pressures and challenges that the Palestinian people are enduring and the Palestinian Authority trying to address. He went on at some length about that and about the difficulties.

We indicated that we are looking at every means we can to help the Palestinian Authority meet these financial challenges. There was a major event that we hold twice a year earlier this week. The Ad Hoc Liaison Committee met, chaired by the Norwegians and co-chaired by the United States and the EU, in which all the donors involved with the Palestinians came together and talked about ways in which they could help make a difference.


The Secretary also talked about our own assistance and the status of that as we work with our Congress to – the assistance package is now with the Hill, and her efforts to work with Congress so we could get that money to the Palestinian Authority, including a crucial $200 million in budget – direct budget support. And we also talked about what could be done on the ground, in the here and now, as Prime Minister Fayyad often calls it, to help overcome the difficulties.

We also, of course, turned to the Middle East peace process and the efforts that we’ve been working on to try to overcome the differences separating the parties, exchanged ideas on how to do that. And we certainly plan to continue our intensive work in that direction.

I think I’ll stop there, unless, [Moderator], you want me to cover any other topics.



PHOTO:  THE DEAD SEA.  CREDIT:  CIA WORLD FACTBOOK 

MODERATOR:
No, I think that’s good.

SENIOR STATE DEPARTMENT OFFICIAL: But those are the main themes that we discussed this evening.

MODERATOR: Questions? Michel.

QUESTION: Will there be a meeting between President Abbas and Prime Minister Netanyahu, since both of them are in the (inaudible)?

SENIOR STATE DEPARTMENT OFFICIAL: Yeah. They are both going to be here tomorrow, but I don’t know of any plans. You, of course, would have to ask them, but I’m not aware of any between them.

QUESTION: But are you trying to (inaudible)?

SENIOR STATE DEPARTMENT OFFICIAL: No. We’re not anticipating a meeting like that now. We do want to – of course, have a long-term objective of resuming direct talks, but at this stage, I don’t anticipate any encounter like that.

MODERATOR: Jo.

QUESTION: Is there a Quartet (inaudible)?

SENIOR STATE DEPARTMENT OFFICIAL: The Quartet envoys met earlier this week on Monday. Tony Blair joined us. The Quartet principals, as we call them, will not be meeting this week. They’ve met twice this year already. I have every expectation there’ll be another meeting at some stage down the road. We’re in complete coordination. The envoys are – talk all the time. We’ve had, by last count, eight meetings or conference calls since the beginning of the summer. So we have a work plan, we’re working on it, and there’s really no urgent need to meet right now.

MODERATOR: Anybody else? Michel.

QUESTION: President Abbas will have a speech tomorrow, and he will ask the General Assembly to recognize the state of Palestine. Have you discussed this issue with him, and do you encourage him to ask the General Assembly recognizing the state of Palestine?

SENIOR STATE DEPARTMENT OFFICIAL: Well, we have had conversations with President Abbas on this topic, including this evening. I think that obviously we’ll have to wait and see what the President does tomorrow. I think that he’s been talking about this initiative for quite some time, so it’s not news that he has this ambition.

We’ve made clear all along our position on this to him publicly, privately, in every way, so there are no surprises on our part. And I don’t know that there’ll be – certainly, we have made very clear that our goal is to resume direct talks and that the idea of going to the UN is not the road that takes us there. So, as I said though, we’ll see what happens tomorrow.

MODERATOR:

Anything else? All right. Thank you very much.

MAN PLEADS GUILTY TO TRAFFICKING IN COUNTERFEIT GM DIAGNOSTIC EQUIPMENT

Photo Credit: Wikimedia

 . 

FROM: U.S. DEPARTMENT OF JUSTICE

Wednesday, September 26, 2012

 

Virginia man pleaded guilty today in federal court to selling counterfeit General Motors (GM) automotive diagnostic devices used by mechanics to identify problems with and assure the safety of motor vehicles, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and FBI Assistant Director Joseph Demarest.

 

Justin DeMatteo, 31, of Saxe, Va., pleaded guilty before Senior U.S. District Judge Claude M. Hilton in U.S. District Court in the Eastern District of Virginia to an information charging him with one count of trafficking in goods bearing counterfeit marks. DeMatteo, in a plea agreement with the government, also agreed to pay restitution of $328,500 (the full amount of GM’s losses) and forfeit $109.074 and all facilitating property and contraband seized during the execution of search warrants at his business and home on Dec. 15, 2011 . Sentencing is scheduled for Jan. 11, 2013.



In court documents, DeMatteo admitted he sold counterfeit GM Corporation-branded "Tech 2" vehicle diagnostic systems between January and May 2011. The Tech 2 is a hand-held computer used to diagnose problems in vehicles that use electronic controls and interfaces. For newer vehicles, GM designed a new diagnostic interface – the Controller Area Network diagnostic interface (CANdi) module, which serves as an enhancement to the Tech 2 and completes the interface necessary to communicate with future on-board computer systems.

DeMatteo also admitted he offered for sale purported Tech 2 units and CANdi modules that bore counterfeit GM marks. DeMatteo sold the counterfeit Tech 2 units on eBay and accepted payment via Paypal. DeMatteo purchased the units from unauthorized manufacturers in the People’s Republic of China (PRC) and in many cases had them drop-shipped directly from the PRC to U.S. customers. On Dec. 15, 2011, federal agents executed search warrants at DeMatteo’s residence in Saxe and place of business in South Boston, Va. Among other things, agents seized numerous counterfeit GM Tech 2 units and CANdi modules, and various computer equipment and documents that contained evidence linking DeMatteo to the sale of the counterfeit Tech 2 units. According to the stipulated statement of facts and plea agreement, the number of Tech 2 and CANdi units sold by DeMatteo or seized during the searches totaled nearly 100. The retail price of 100 authentic products would have been more than $380,000.

The case was prosecuted by Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia and Trial Attorney Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and was investigated by the FBI’s Intellectual Property Rights Unit.

U.S. DEPARTMENT OF DEFENSE STUDIES FAMILIES MOURNING SERVICE MEMBERS

On Memorial Day, men and women across the nation pause to remember America’s fallen soldiers who have made the ultimate sacrifice for the sake of protecting American freedom. Originally known as "Decoration Day," Memorial Day came into existence just three years after the Civil War ended. Decoration Day was intended as a time to remember the soldiers who lost their lives during the Civil War and more specifically, to honor their memory by decorating their graves

　
FROM: U.S. DEPARTMENT OF DEFENSE
DOD Studies Families Mourning Service Members
By Lisa Daniel
American Forces Press Service

WASHINGTON, Sept. 25, 2012 - The Defense Department's Uniformed Services University of the Health Sciences is conducting the nation's first large-scale study of the impact of a service member's death on surviving family members.

The university's Center for the Study of Traumatic Stress, based in Bethesda, Md., received funding through DOD's Congressionally Directed Medical Research Program to conduct the five-year study to fill a void in understanding the myriad ways families are affected by a service member's death ranging from the emotional impact to loss of benefits, Dr. Stephen J. Cozza, director of the center's child and family program and a principal investigator of the study, said today.

"This is an opportunity for recognizing that military service has certain unique challenges, certain strengths, certain risks or potential protective factors," Cozza said in an American Forces Press Service interview. "So this is an important opportunity to really understand the experiences of surviving family members and by understanding, to inform future policies."

In the first phase of the National Military Bereavement Study, the center is seeking about 3,000 participants through its website whose family member died while on active duty since 9/11, Cozza said, noting that several hundred participants already are lined up. One-third of those deaths have been combat-related, one-third have been from accidents, and a significant number have been from illnesses and suicide, he said. The study will include any causes of death, and participants may be spouses or ex-spouses, parents, siblings or children by birth, marriage or adoption.

Participants will be asked to fill out a questionnaire in the study's first phase. Then, they will be asked if they and their families will participate in the second phase, which studies families, including children ages 6 to 18, with in-person interviews.

In the first phase, participants also will be asked if they are willing to provide a saliva sample to provide genetic information to help understand whether a genetic factor applies to risk and resilience, Cozza said.

"Most people after a death – adults or children – have clear and significant mourning," he said. "Over time, most return to healthy functioning, even if they continue to harbor grief and sadness. ... But there does seem to be some population of adults and children where there are more complicated courses of bereavement. ... We want to understand the likely risk factors for that."

The study will follow families over the course of two years to understand how bereavement changes over time, Cozza said, adding that investigation of families isn't well-known in the civilian world either.

"No two people's experiences are the same," Cozza said. "We really want to give as broad a description of these surviving family members as possible in all these relationship categories."

The center has several nonprofit partners with the study, including the National Military Family Association, the Military Child Education Coalition, the Tragedy Assistance Program for Survivors and others.

THE NEW HORSE SOLDIER BATTALION

 

 FROM:  U.S. ARMY09/18/2012HORSE SOLDIERS

Soldiers from Fort Carson's mounted color guard ride in formation during a ceremony on Fort Carson, Colo., Sept. 15, 2012. The soldiers are assigned to the 440th Civil Affairs Battalion, which has spent the last year filling its ranks with new and veteran civil affairs soldiers. It is now an officially commissioned unit. U.S. Army photo by Staff Sgt. Felix Fimbres.   

TWO FORMER OFFICERS OF STERLING FINANCIAL CORP. SUBSIDIARY SENTENCED TO LENGTHY PRISON TERMS AND ORDERED TO PAY $53 MILLION

FROM: U.S. COMMODITY FUTURES TRADING COMMISSION
The Securities and Exchange Commission announced that on September 11 and 12, 2012, Joseph M. Braas, of Lititz, Pennsylvania, and Michael J. Schlager, of Lancaster, Pennsylvania, were sentenced in a criminal action for orchestrating a sophisticated financial fraud that lasted over five years. Braas and Schlager were two senior officers at Equipment Finance, LLC ("EFI"), formerly a commercial lender to the soft pulp logging industry and wholly-owned subsidiary of Sterling Financial Corp. ("Sterling"), a publicly traded bank holding company based in Lancaster, Pennsylvania. Judge Paul S. Diamond of the United States District Court for the Eastern District of Pennsylvania sentenced Braas to 15 years in federal prison, and Schlager to 20 years in prison, each followed by five years of supervised release. Braas and Schlager were also each ordered to pay $53 million in restitution. Braas and Schlager had each previously pleaded guilty to one count of conspiracy to commit mail fraud, and two counts of mail fraud, all affecting a financial institution.

On January 6, 2011, the Commission filed a civil action against Braas and Schlager based on the same conduct alleged in the criminal case. Without admitting or denying the Commission’s allegations, Braas and Schlager agreed to settle the matter, and Final Judgments were entered as to each. The Commission’s complaint alleged that, from at least February 2002 until April 2007, Braas, EFI’s Vice President and Chief Operating Officer, and Schlager, EFI’s Executive Vice President, orchestrated a pervasive and wide-ranging scheme using fraudulent underwriting and reporting practices to hide mounting losses and defaults within EFI’s commercial loan portfolio from Sterling’s senior management and auditors.

The Commission further alleged that Braas and Schlager were able to subvert virtually every aspect of EFI’s loan process and internal controls. They created fictitious loans for the purpose of making monthly payments on delinquent loans, altered loan documents to hide delinquent and fictitious loans, granted excessive deferrals and resets of delinquent loans to make them appear current, reassigned loan payments to unrelated accounts to fund payments on delinquent loans, and used aliases for borrowers to circumvent EFI’s maximum lending limitations. They also deceived Sterling’s internal and independent auditors through fraudulent accounting entries, false collateral descriptions and appraisals, fabricated UCC filings, and by recruiting vendors to assist in the circumvention of loan confirmation procedures.

As alleged in the complaint, Braas and Schlager caused EFI to report false financial information to Sterling which, in turn, from 2002 through 2006, filed quarterly and annual reports with the Commission containing materially false and misleading financial statements. As a result of the fraud, Sterling ultimately charged off $281 million of EFI finance receivables, which represented a large majority of EFI’s loan portfolio, and approximately 13 percent of Sterling’s total loan portfolio during the period of the fraud.

WHEN LIGHT GETS BENT

WHEN LIGHT GETS BENT

FROM: NASA, BENDING LIGHT AND DARK MATTER

Bending the Light
This image of galaxy cluster MACS J1206.2-0847 (or MACS 1206 for short) is part of a broad survey with NASA's Hubble Space Telescope.

The distorted shapes in the cluster are distant galaxies from which the light is bent by the gravitational pull of an invisible material called dark matter within the cluster of galaxies. This cluster is an early target in a survey that will allow astronomers to construct the most detailed dark matter maps of more galaxy clusters than ever before.

These maps are being used to test previous, but surprising, results that suggest that dark matter is more densely packed inside clusters than some models predict. This might mean that galaxy cluster assembly began earlier than commonly thought.

The multi-wavelength survey, called the Cluster Lensing And Supernova survey with Hubble (CLASH), probes, with unparalleled precision, the distribution of dark matter in 25 massive clusters of galaxies. So far, the CLASH team has completed observations of six of the 25 clusters.

Dark matter makes up the bulk of the universe's mass, yet it can only be detected by measuring how its gravity tugs on visible matter and warps space like a fun-house mirror so that the light from distant objects is distorted.

Galaxy clusters like MACS 1206 are perfect laboratories for studying dark matter's gravitational effects because they are the most massive structures in the universe. Because of their heft, the clusters act like giant cosmic lenses, magnifying, distorting and bending any light that passes through them — an effect known as gravitational lensing.

MACS 1206 lies 4.5 billion light-years from Earth. Hubble's keen vision helped CLASH astronomers uncover 47 multiple images of 12 newly identified faraway galaxies. Finding so many multiple images in a cluster is a unique capability of Hubble, and the CLASH survey is optimized to find them. The new observations build on earlier work by Hubble and ground-based telescopes.

The era when the first clusters formed is not precisely known, but is estimated to be at least 9 billion years ago and possibly as far back as 12 billion years ago. If most of the clusters in the CLASH survey are found to have excessively high accumulations of dark matter in their central cores, then it may yield new clues to the early stages in the origin of structure in the universe.

Image Credit: NASA, ESA, M. Postman (STScI), and the CLASH Team

U.S. SECRETARY OF STATE CLINTON'S REMARKS ON THE SAHEL

FROM: U.S. DEPARTMENT OF STATE
Remarks at a UN Secretary General Meeting on the SahelRemarks

Hillary Rodham Clinton
Secretary of State
United Nations
New York City

September 26, 2012
Secretary General, thank you for calling this meeting and co-chairing it along with so many distinguished heads of state and government and ministers and excellencies. And let me recognize the leadership of President Hollande. I think we all respond to President Hollande’s sense of urgency and passion, and therefore, it is imperative that we leave this special high-level meeting resolved to immediately get to work. And it is the work that should begin in the Security Council to consider the various proposals by ECOWAS, France, and others because the chaos and violence in Mali does threaten to undermine the stability of the entire region. We all know too well what is happening in Mali, and the incredible danger posed by violent extremists imposing their brutal ideology, committing human rights abuses, destroying irreplaceable cultural heritage.

But it’s not only the violent extremists. We now have drug traffickers and arms smugglers finding safe havens and porous borders, providing them a launching pad to extend their reach throughout not only the region, but beyond. And nearly 500,000 people have been displaced from their homes, and 4.5 million more are suffering from dwindling food supplies. This is not only a humanitarian crisis; it is a powder keg that the international community cannot afford to ignore.

The United States supports the appointment of a senior UN envoy empowered to lead a comprehensive international effort on Mali and the creation of a diplomatic core group. This effort must include coordinating the delivery of emergency aid, helping address longstanding political grievances of ethnic groups in the north, and preparing for credible elections. We need to bring together all of the nations affected, and I appreciated President Yayi’s very strong statement about what is at stake for the countries of the region, and also his speaking on behalf of the African Union. The African Union must be at the table, ECOWAS must be at the table, because these are complex and interconnected security, political, and humanitarian challenges.

The United States has already provided more than $378 million to meet the escalating humanitarian needs in the Sahel, and we call on all parties to ensure unhindered access so that emergency aid meets those who need it most. We encourage fellow donors to increase their pledges and follow through quickly and fully. The need is urgent and growing.

It is also critical for all the actors in the region to redouble their efforts to develop a sound approach to tackling what is happening coming over their borders. We have to train the security forces in Mali, help them dislodge the extremists, protect human rights, and defend borders. We have seen the success of African-led efforts to do just that in Somalia and in Cote d’Ivoire and elsewhere. We need to now get about the business of examining seriously proposals to do the same. Because in the end, only a democratically elected government will have the legitimacy to achieve a negotiated political settlement in Northern Mali, end the rebellion, and restore the rule of law. So it is imperative that the interim government meet the April deadline for holding elections that are fair, transparent, and free of influence by the military junta. And all parties must do more to protect human rights and punish abuses.

But let us be clear. What is happening inside Mali is augmented by the rising threat from violent extremism across the region. For some time, al-Qaida in the Islamic Maghreb and other groups have launched attacks and kidnappings from northern Mali into neighboring countries. Now, with a larger safe haven and increased freedom to maneuver, terrorists are seeking to extend their reach and their networks in multiple directions. And they are working with other violent extremists to undermine the democratic transitions underway in North Africa, as we tragically saw in Benghazi.

This is a threat to the entire region and to the world, and most particularly, to the people in the region themselves who deserve better. They deserve better from their leaders and they deserve better from the international community. The United States is stepping up our counterterrorism efforts across the Maghreb and Sahel, and we’re working with the Libyan Government and other partners to find those responsible for the attack on our diplomatic post in Benghazi and bring them to justice. But we are also expanding our counterterrorism partnerships to help countries meet their own growing threats. We’re taking aim at the support structure of al-Qaida and its affiliates – closing safe havens, cutting off finances, countering their ideology and denying them recruits. Let me mention briefly three initiatives.

First, our Trans-Sahara Counterterrorism Partnership is now helping build the capacity of 10 countries across the region, providing training and support so they can tighten border security, disrupt terrorist networks, and prevent attacks. This program brings together civilian, law enforcement, and military experts to pursue a comprehensive approach to counterterrorism.

Second, we are expanding our work with civil society organizations in specific terrorist hotspots – particular villages, prisons, and schools – trying to disrupt the process of radicalization by creating jobs, promoting religious tolerance, amplifying the voices of the victims of terrorism.

And third, we are working with our partners to reform security services and strengthen the rule of law. For example, Tunisia has agreed to host a new international training center that will help police, prosecutors, and other criminal justice officials across the region move away from the repressive approaches that helped fuel radicalization in the past, and instead develop strategies grounded in the rule of law and respect for human rights.

Ultimately, our perspective is that strengthening democratic institutions must be at the heart of our counterterrorism strategy. It is democracies that offer their citizens constructive outlets for political grievances, create opportunities for upward mobility and prosperity, and are clear alternatives to violent extremism. And their success offers a powerful rejection of the extremist ideology of hate and violence as we also saw in Benghazi last week.

So all this work, from meeting the humanitarian crisis in the Sahel to bringing stability back to Mali to combating violent extremism across the region is a shared responsibility. And there is no place where that shared responsibility can be actualized other than the United Nations. So in the days and weeks ahead, I look forward to deepening our cooperation and accelerating our common action. I personally don’t believe we have any time to waste.

Thank you. (Applause.)

THE U.S. DEPARTMENT OF DEFENSE COMMITMENT TO CYBERSECUTITY

The U.S. Cyberbrigade On Parade.  Credit:   U.S. DOD

FROM:  U.S. DEPARTMENT OF DEFENSE
Official Reaffirms DOD Commitment to Cybersecurity

By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service
WASHINGTON, Sept. 25, 2012 – The Defense Department remains vigilant and committed to cybersecurity, especially since its cyber operations present a target for hackers, a senior Pentagon official said here today.

Speaking at the Telework Exchange’s fall town meeting, David L. DeVries, the Defense Department’s deputy chief information officer for joint information enterprise, said the department is an attractive target for potential cyber attacks, due in part to its size.

"DOD is a large magnet for the security vulnerability side of the house," he said. "Just like they would like to hack into Wall Street or a financial institution, they would also like to hack into the Department of Defense and other federal agencies here."

Defense Department officials take cybersecurity very seriously, DeVries said, and that creates pressure on the department’s information technology personnel to stay vigilant.

"It gets exponentially more complex to ensure the security of the whole thing," he said. "And that’s why I have to keep security at the [forefront]."

DeVries said when he turns on his personal computer at home, it automatically seeks updates from Microsoft and implements those changes. "So Microsoft is keeping track of my computer for me," he said. "And it’s saying, ‘Hey, I found something and I updated this thing. You need to do this now, Mr. DeVries.’ So I … say, ‘OK, do it.’"

As the Defense Department moves away from laptops and personal computers and toward smart technology, DeVries said, officials face a difficult challenge. "There are more vendors with these [smartphones] that we’re trying to get connected into the network than we can possibly keep track of," he said.

To police this issue, he added, rules and policies have been published.

"We’re now starting to enforce it," he said. "I’m looking at it from an end-device capability: Are you complying with the measures I’ve put forth?"

DeVries said he was shocked when he learned, during an earlier panel, of a general lack of security for personal information when people use smartphones.

"What’s amazing is, I thought everything I bought was checked out," he said, waving his smartphone. "So I thought all those [applications] were checked by somebody."

A panelist in the earlier discussion said he had a report that said 80 percent of the apps on his smartphone are not compliant with security requirements, DeVries said.

"[This is] my personal stuff I’m worried about there, and now I’ve put it into my workspace. … That’s a scary thought," he added.

Some companies work with the business world to make sure that their apps and operating systems are secure, DeVries said.

"Other vendors are more worried about, ‘I just want to be open to everybody out there from the teenager all the way up to the grandfather,’" he added.

DeVries said the Defense Department already has taken certain precautions.

"So we published our mobile strategy, and again, with a corporation the size of DOD, we’re going a little bit slow," he said.

"I can’t keep up with how fast this stuff gets on the street," he continued. "But I do know I have to protect the data that resides inside DOD -- No. 1, because people’s lives are at stake, and 2, the defense of the nation is at stake. So I take this seriously."

RELIABLE, SAFE NUKES WITHOUT EXPLOSIVE TESTING

Photo:  Nuclear Bomb Test.  Credit:  U.S. Army Signal Corps

FROM: U.S. STATE DEPARTMENT
Maintaining the U.S. Nuclear Stockpile in the Absence of Nuclear Explosive Testing
Fact Sheet

Bureau of Arms Control, Verification and Compliance

September 26, 2012

The leading methods used to maintain the United States nuclear weapons stockpile include:
The Stockpile Stewardship Program (SSP), run by the National Nuclear Security Administration (NNSA), maintains the continued safety, security and reliability of the nation’s nuclear weapons in the absence of nuclear explosive testing. A key goal of the SSP is to increase scientific understanding of nuclear device performance, as well as the aging behavior of weapon materials and components to ensure a safe and effective nuclear deterrent.

Life Extension Programs (LEPs) extend the service life of the current weapons in the stockpile by using only nuclear components based on previously tested designs thereby eliminating the need to conduct nuclear explosive tests. NNSA, in coordination with the Department of Defense (DoD), also performs alterations and modifications to the stockpile in order to sustain the warheads that underpin the U.S. nuclear deterrent.

Advanced Simulation and Computing capabilities provide greatly increased confidence in the ability to model and evaluate the performance and safety of nuclear weapons without nuclear explosive testing. Computers have become at least a hundred-thousand times more powerful, and modern integrated design codes now more realistically capture the behavior of real nuclear devices.

Enhanced Surveillance tools and models play critical roles in providing information essential to assessing weapon safety, security, and performance changes that would affect military effectiveness. The use of data from surveillance of our nuclear weapons enables us to predict how the weapons will perform over time without using underground nuclear explosive testing.

The Annual Assessment process of the U.S. Nuclear Weapons Stockpile is the authoritative method for the DoD and NNSA to evaluate the safety, reliability, performance and military effectiveness of the nuclear weapons stockpile, and it is a principal factor in our ability to maintain a credible nuclear deterrent without nuclear explosive testing.

Infrastructure Modernization is in accordance with the Nuclear Posture Review; NNSA has identified a path for sustaining the nuclear deterrent while modernizing the supporting infrastructure without nuclear explosive testing. This modernization is implemented by focusing on recapitalization and refurbishment of existing infrastructure for plutonium, uranium, tritium, high-explosive production, non-nuclear component production, high-fidelity testing and waste disposition

Mutated smokers

Mutated smokers

NEWS FROM AFGHANISTAN, SEPTEMBER 26, 2012

 

An AV-8B Harrier II Plus with Marine Attack Squadron 211, 3rd Marine Aircraft Wing (Forward), awaits its next mission on the tarmac at Camp Bastion, Afghanistan, Sept. 18, 2012. The aircraft provides air support to the ground units throughout Helmand and Nimroz provinces. Despite a roller coaster week for the squadron, VMA-211 remains fully operational and continues to provide support to ground troops throughout Regional Command Southwest’s area of operations.
Date Photo Taken- 9-18-2012
Unit: Marine Attack Squadron 211
Photo ByLine- Cpl. Timothy Lenzo
Photo VRIN- 120918-M-PC317-325.jpg
Photo Size- 994 KB

FROM: U.S. DEPARTMENT OF DEFENSE
Coalition, Afghan Troops Arrest 2 Taliban Leaders
From an International Security Assistance Force Joint Command News Release

KABUL, Afghanistan, Sept. 26, 2012 - A combined coalition and Afghan security force arrested two Taliban leaders -- an attack commander and an improvised explosive device expert -- during an operation in the Ghazni district of Afghanistan's Ghazni province today, military officials reported.

The attack commander is suspected of having directed IED attacks against coalition and Afghan security forces across the district, officials said, in addition to coordinating the construction of homemade bombs and providing training on their use and placement. He also is believed to be involved in suicide bomber training. The security force also detained three other suspected insurgents in the operation.

Also today, an Afghan and coalition security force arrested a Taliban leader in Ghazni province's Wali Muhammad Shahid Khugyani district. He is believed to have coordinated with insurgent groups to conduct direct-fire and IED attacks targeting Afghan and coalition forces. The security force also detained four other suspected insurgents.

In operations around Afghanistan yesterday:

-- A precision airstrike killed Malang, a Taliban leader, in the Sayyidabad district of Afghanistan's Wardak province after a combined security force saw him engaged in insurgent activity and ensured that no civilians were in the area. Malang was directly involved in planning attacks using improvised explosive devices against Afghan and coalition forces, as well coordinating the movement of insurgent fighters throughout the region. A post-strike assessment determined no civilians were harmed and no civilian property was damaged during the operation.

-- Provincial Response Company Wardak, mentored by coalition forces, reinforced another response company patrol that came under enemy fire in Wardak province's Maidan Shahr district. The combined force defeated the attack, killing seven insurgents. Responding to a request for a quick-reaction force, the combined element reached the unit in contact and was itself engaged by small arms and rocket propelled grenade fire from insurgents before fighting off the attack. Coalition officials said the rapid and effective response from PRC Wardak demonstrates their increased capability and their dedication to supporting their fellow Afghans in arms.

-- A combined U.S. Army Special Forces and Afghan National Army force killed an insurgent after being attacked at a local bazaar and at a combined outpost in Wardak province's Bahadur village. After eight to 10 insurgents opened fire with small arms and rocket propelled grenades, the combined force returned fire, secured the bazaar and village, and killed the insurgent at his fighting position. No civilians or Afghan forces were injured or killed during the engagement.

In a Sept. 24 operation, a combined security force arrested a Haqqani network IED attack leader in Khost province's Khost district. Officials said he is suspected of coordinating and planning IED attacks against Afghan and coalition forces throughout the region and was directly involved in acquiring and distributing a large amount of explosives and weapons, as well as providing training on the use of homemade bombs. He also is believed to have been trying to infiltrate Afghan security forces. The security force also seized firearms and heavy weapons ammunition.

In other news, an orphaned Afghan boy escaped from insurgents who were trying to use him as a suicide bomber and fled to the Afghan National Police in Helmand province's Nawa district Sept. 22.

The boy told Afghan police that insurgents had given him money to influence him to wear a suicide vest and detonate it near coalition or Afghan security personnel. He refused, and now is receiving care and support from the police.

PRESIDENT OBAMA'S REMARKS TO THE UN ON BEGHAZI ATTACKERS

FROM: U.S. DEPARTMENT OF DEFENSE
Beghazi Attackers Struck Against U.N. Ideals, Obama SaysBy Jim Garamone
American Forces Press Service

WASHINGTON, Sept. 25, 2012 - The assault on the U.S. Consulate earlier this month in Benghazi, Libya, was an attack not only on America, but also on the ideals of the United Nations, President Barack Obama said in a speech to the U.N. General Assembly today.

The attack that killed four Americans, including U.S. Ambassador to Libya J. Christopher Stevens, was an assault on "the notion that people can resolve their differences peacefully, that diplomacy can take the place of war, and that in an interdependent world, all of us have a stake in working towards greater opportunity and security for our citizens," the president said.

Nations must be serious about the assault on those ideals and must go to the root causes that extremists use to incite populations, Obama said. "If we are serious about those ideals," he told the General Assembly, "we must speak honestly about the deeper causes of this crisis, because we face a choice between the forces that would drive us apart, and the hopes we hold in common."

Leaders, the president said, must decide that violence and intolerance have no place in the United Nations.

America has supported the forces of change sweeping North Africa and the Middle East, Obama said. "We were inspired by the Tunisian protests that toppled a dictator, because we recognized our own beliefs in the aspirations of men and women who took to the streets," he said. "We insisted on change in Egypt, because our support for democracy put us on the side of the people."

The United States supported leadership transition in Yemen and intervened in Libya alongside a broad coalition "because we had the ability to stop the slaughter of innocents, and because we believed that the aspirations of the people were more powerful than a tyrant," he said.

Obama also restated the U.S. position that the regime of Syrian dictator Bashar Assad must end.

"We have taken these positions because we believe that freedom and self-determination are not unique to one culture," he said. Freedom is a universal value, the president added.

The events of the past two weeks -- in which extremists have used an Internet video that denigrates the Prophet Muhammad to spur anti-American demonstrations -- speak to the need for nations to address the tensions between the West and an Arab World moving to democracy, Obama said. The United States will not dictate the outcome of democratic transitions, the president said, nor does America expect every nation to agree with U.S. positions.

"However, I do believe that it is the obligation of all leaders, in all countries, to speak out forcefully against violence and extremism," he said. "It is time to marginalize those who -- even when not resorting to violence -- use hatred of America, or the West, or Israel, as a central principle of politics. For that only gives cover, and sometimes makes excuses, for those who resort to violence."

Obama reiterated that the United States will not allow Iran to develop nuclear weapons. "America wants to resolve this issue through diplomacy, and we believe that there is still time and space to do so," he said. "But that time is not unlimited."

A nuclear-armed Iran is not a challenge that can be contained, Obama said. "It would threaten the elimination of Israel, the security of [Persian] Gulf nations, and the stability of the global economy," he added.

Iranian possession of nuclear weapons would spur an arms race in the region and unravel the Nuclear Non-proliferation Treaty, Obama said.

"That is why a coalition of countries is holding the Iranian government accountable," he added. "And that is why the United States will do what we must to prevent Iran from obtaining a nuclear weapon."

Little Briefs the Pentagon Press Corps

Little Briefs the Pentagon Press Corps

MAN AND FOUR COMPANIES ARE CHARGED IN COMMODITY POOL FRAUD INVOLVING MADOFF/MF GLOBAL

The Legacy of the Bernie Madoff Ponzi Scheme

FROM: COMMODITY FUTURES TRADING COMMISSION

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.