TWO FORMER U.S. CONTRACTOR EMPLOYEES SENTENCED FOR PARTS IN KICKBACK CONSPIRACY IN IRAQ

Soldiers of the 3rd Armored Cavalry Regiment maneuver their M1 Abrams tank during a combat patrol in Tall Afar, Iraq, Feb. 2, 2006. U.S. Air Force photo by Staff Sgt. Aaron Allmon

FROM: U.S. DEPARTMENT OF DEFENSE
Combat Patrol
Wednesday, October 10, 2012

Two U.S. Contractor Employees Sentenced for Kickback Conspiracy and Tax Crimes Related to Iraq Reconstruction Efforts

WASHINGTON – Two former employees of The Parsons Company, an international engineering and construction firm, were sentenced in federal court in the Northern District of Alabama for their participation in a kickback conspiracy in Iraq and related tax crimes, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney for the Northern District of Alabama Joyce White Vance.

Billy Joe Hunt, 57, was sentenced today by U.S. District Judge Abdul Kallon in federal court in Huntsville, Ala., to 15 months in prison, three years of supervised release, $66,212 in restitution to the Internal Revenue Service (IRS) and forfeiture of $236,472. Gaines R. Newell Jr., 53, was sentenced yesterday by U.S. District Judge Virginia Hopkins in federal court in Birmingham, Ala., to 27 months in prison, three years of supervised release, $1,102,115 in restitution ($861,027 to the U.S. Army Corps of Engineers and $241,088 to the IRS) and forfeiture of $861,027.

On May 8, 2012, Hunt pleaded guilty to one count of conspiracy to commit mail and wire fraud and pay kickbacks, and one count of subscribing a false tax return. On April 10, 2012, Newell pleaded guilty to one count of conspiracy to commit mail and wire fraud and to pay kickbacks, and one count of subscribing a false tax return.

According to court documents, Newell and Hunt were employed by Parsons in Iraq as program manager and deputy program manager, respectively, under a contract that Parsons held to support the Coalition Munitions Clearance Program operated by the U.S. Army Corps of Engineers in Huntsville. The Coalition Munitions Program sought to preclude insurgents and other unfriendly groups from getting munitions that had been stockpiled, abandoned or seized, and using them against Coalition forces or the Iraqi public. In their plea proceedings, Newell and Hunt admitted taking over $1 million in kickbacks from subcontractors from 2005 to 2007, in return for arranging to award contracts on the munitions clearance program to subcontractors. Newell and Hunt also admitted filing false federal income tax returns by not disclosing kickback income.

On May 21, 2012, Hunt and Newell’s co-conspirator Ahmed Sarchil Kazzaz, 45, pleaded guilty for his role in the scheme. Kazzaz and his business, Leadstay Company, were indicted in the Northern District of Alabama in September 2011 for paying over $947,000 in kickbacks to Newell and Hunt. According to the plea agreement, between March 2006 and June 2007, Kazzaz agreed to pay kickbacks to Newell and Hunt totaling 13 percent of the amounts paid by Parsons, and thus obtained over $23 million in subcontracts providing materials and equipment to Parsons. After Kazzaz’s arrest in Los Angeles on Dec. 2, 2011, this case was transferred to the Central District of California, where Kazzaz pleaded guilty. His sentencing is set for Oct. 29, 2012 before U.S. District Judge R. Gary Klausner in the Central District of California.

The cases are being prosecuted by Catherine Votaw, Director of Procurement Fraud for the Criminal Division’s Fraud Section, and Assistant U.S. Attorney David Estes of the Northern District of Alabama. The investigation was handled by the Special Inspector General for Iraq Reconstruction, the Defense Criminal Investigative Service, the IRS-Criminal Investigations Division and the FBI.

SBA NAMES NATIONAL MINORITY SMALL BUSINESS PERSON OF THE YEAR

Photo:  Small Business.  Credit:  Wikimedia.  

FROM: U.S. SMALL BUSINESS ADMINISTRATION

Idaho Contractor Named National Minority Small Business Person of the Year; GSA and Kansas Company Also Take Top Awards

SBA Launches New Online Training Series for Small Businesses

WASHINGTON – Kaleo Nawahine, a native Hawaiian and president of Performance Systems, Inc., an 8(a) and HUBZone-certified general contractor from Fruitland, Idaho, was named National Minority Small Business Person of the Year today by the U.S. Small Business Administration during the National 8(a) Training, Business Matchmaking and Awards event at the Carnegie Library in Washington, D.C.

Curt Koutelas, president and founder of Arrowhead Contracting, Inc. of Lenexa, Kan. received the 8(a) Graduate Firm of the Year award which recognizes 8(a) companies that have benefited from and exited the 8(a) program as intended by Congress and best exemplify the spirit and intent of the 8(a) program. The General Services Administration received the Administrator’s Leadership award, which recognizes the recipient’s tireless efforts and unwavering commitment on behalf of the nation’s minority small business community at the event co-hosted by the U.S. Black Chamber, Inc, the National 8(a) Association and J.P. Morgan Chase, N.A.

"The 8(a) program is one of the most effective tools we have to help small businesses and entrepreneurs in underserved communities grow and succeed," said SBA Deputy Administrator Marie Johns. "Kaleo and Curt are a testament to how effective the program can be in supporting small business growth. At the SBA, we continue to develop and improve our programs, so that more small businesses, in more communities, have the access and opportunity they need to build successful businesses that create good jobs."

Johns also announced the launch of an online pre-8(a) Business Development training series to help more small disadvantaged businesses gain access to SBA’s 8(a) Program. "This is another step in the right direction towards expanding outreach to underserved and minority business communities and helping them gain access to business development training and access to federal contracting opportunities," she said.

The first two parts of the new multi-part training series consists of four self-paced online courses introducing prospective small disadvantaged businesses to the 8(a) Business Development Program. The first course is a 30 minute tutorial with audio titled: Setting Expectations, which provides an overview of the 8(a) program, including eligibility requirements, step-by-step application instructions and a downloadable workbook. The second course, Introduction to Federal Contracting, is a 40-minute tutorial describing programs and initiatives that help small businesses win government contracts, including government-wide goals, size standards, set-asides and contracting methods used by the government. It also includes a downloadable workbook.

The two remaining courses in the training series are scheduled to be released by the end of the year. They will discuss marketing effectively to the government, business development, proposal writing, business and strategic planning and operational aspects of managing an 8(a) firm. The new comprehensive Pre-8(a) Business Development Program Training Series is featured in SBA’s Government Contracting Classroom at: www.sba.gov/gcclassroom.

Winners’ Biographies

National Minority Small Business Person of the Year

Kaleo Nawahine, a native Hawaiian is president of Performance Systems, of Fruitland, Idaho, and is certified in the SBA’s 8(a) Business Development and HUBZone Programs. Some of its major contracts include projects at the Boise airport and construction of the West Boise Waste Water Treatment Plant. The company maintains offices in Washington and Hawaii with 78 employees. Performance Systems was chosen from a group of 10 regional winners representing Massachusetts, New York, West Virginia, Florida, Michigan, Louisiana, Missouri, California and Montana.

8(a) Graduate Firm of the Year

Curt Koutelas, is founder and president of Arrowhead Contracting , Inc. of Lenexa, Kan., a diversified construction contractor headquartered in metropolitan Kansas City. Established in 1990, the company has an impressive track record of continuous growth, diversification and stability. Arrowhead’s services include general construction, civil construction, remedial construction, homeland security services and facility operation and maintenance. Some of its major projects include Department of Homeland Security projects such as: mass communication systems, level-5 bullet resistant window systems and cctv cabling, cameras, monitors and multiplexing systems.

NATO CHIEF SAYS TROOP NUMBERS WILL NOT CHANGE IN KOSOVO

U.S. Defense Secretary Leon E. Panetta, left, speaks with NATO Secretary General Anders Fogh Rasmussen, right, before a conference of NATO defense ministers in Brussels, Oct. 10, 2012. Panetta is scheduled to meet with several defense ministers during the two-day event. DOD photo by Erin A. Kirk-Cuomo

FROM: U.S. DEPARTMENT OF DEFENSE

Troop Numbers to Remain Stable for Kosovo, Rasmussen Says
By Jim Garamone
American Forces Press Service

WASHINGTON, Oct. 10, 2012 - NATO has no plans to reduce its Kosovo Force, Secretary General Anders Fogh Rasmussen said in Brussels today.

About 1,650 troops, including around 760 Americans, serve in the Kosovo Force, known as KFOR. Alliance defense ministers discussed the situation in the country during their meeting this week and will not make any changes in the make-up of the force, Rasmussen told reporters as the NATO defense ministers conference wrapped up.

"We agreed that KFOR continues to play an indispensable role in Kosovo," he said. "And ministers made clear that they remain committed to sustaining that role."

The ministers agreed that the security situation and freedom of movement have improved in Kosovo over the last six months, "but that we must remain vigilant and strong," he said.

NATO ministers welcome renewed contacts between Serbian and Kosovar officials, and NATO nations are fully committed to furthering that dialogue, the secretary general noted. "All need to live up to their responsibilities and move the whole region forward," he said.

NATO has no plans to reduce the troop presence in Kosovo, Rasmussen said. "We have the ambition to gradually reduce our troop presence in Kosovo as the security situation, hopefully, continues to improve," Rasmussen said. "But because of the volatile situation we have witnessed during the recent year, we have postponed the decision to reduce the number of troops."

The secretary general reiterated that what happens in Kosovo will be dictated by the security situation on the ground. "We will not take any step that can deteriorate the security situation in Kosovo," he said. "We will stay committed to fully implementing the United Nations Security Council's mandate to ensure a safe and secure environment and freedom of movement for all people in Kosovo."

Military commanders may change where troops are deployed in the country, Rasmussen said. "You will see some rebalancing in the coming months with a stronger focus on the north of Kosovo, taking into account the situation we have witnessed there," he said.

U.S. DEPARTMENT OF JUSTICE ALLEGES FRAUD IN CANDY VENDING MACHINE BUSINESS INVESTMENT

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, October 10, 2012

Ten Individuals Indicted in National Business Opportunity Fraud Scam

The Justice Department announced today the unsealing of an indictment charging 10 individuals in connection with a vending machine "business opportunity" that defrauded thousands of victims across the country.

The indictment alleges that managers, sales representatives and operators of "locating companies" associated with Multivend LLC, d/b/a Vendstar, made material misrepresentations about the profits customers would make from and the locations customers would receive for bulk candy vending machines. The indictment also alleges that, during these telemarketing calls, Vendstar’s sales representatives falsely claimed to operate their own profitable vending machine businesses.

According to the indictment, Vendstar advertised nationwide in newspapers and on the Internet. Vendstar sales representatives promised to provide consumers with everything they needed to operate a successful business, including vending machines, an initial supply of candy, assistance in finding locations for the vending machines, training and ongoing customer assistance. The locating companies who worked with Vendstar to close deals had no special skills, tools or expertise in finding locations and generally placed consumers’ machines wherever they could as quickly as they could, often in businesses that had not consented to housing the machines and that soon demanded that the machines be removed. The vending machines generated little business and Vendstar’s customers lost nearly all if not all of their investments. The typical customer paid about $10,000 for the business opportunity.

"Business opportunity fraud is a serious crime that insidiously targets Americans in search of a better future for their families. We will continue to work with the Postal Inspection Service and use our law enforcement resources to investigate and uncover business opportunity fraud," said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division, which includes the Consumer Protection Branch that handles criminal cases.

Tony Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service - Miami Division, stated: "The U.S. Postal Inspection Service will continue to work with our partners in law enforcement to ensure that the U.S. Postal Service isn’t used as a conduit to defrauding the American consumer. The protection of our citizens is at the cornerstone of our mission."

"Business opportunity schemes, like this candy vending machine venture, take advantage of individuals through misrepresentations and outright fraud," said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. "Instead of becoming successful entrepreneurs, the individual investors become victims of fraud, often losing their life’s savings. In this way, business opportunity schemes tarnish the American Dream of success through hard work. We will help protect the investing public by prosecuting these cases aggressively."

Vendstar was incorporated in Indiana and operated until July 2010 from Deer Park, N.Y., according to the indictment. The indictment was returned by a federal grand jury in Miami. The charges are part of a continuing crackdown by federal authorities on business opportunity fraud that during the last several years has resulted in more than 100 convictions in the Southern District of Florida alone.

Each of the defendants is charged with conspiracy to commit mail and wire fraud, and an enhanced penalty for telemarketing , which together provide for a maximum sentence of 10 years in prison. Weaver, Kaplan, Benowitz, Goldberg, Linick, Raia, Strauss and DiRenzo also are charged with mail fraud, and/or wire fraud, each of which carry a maximum of 20 years in prison.

The indictment contains only accusations against the defendants and is not evidence of guilt. The defendants should be presumed innocent unless and until proven guilty.

Acting Assistant Attorney General Delery commended the investigative efforts of the United States Postal Inspection Service. The case is being prosecuted by Patrick Jasperse and Adrienne Fowler, Trial Attorneys, U.S. Department of Justice, Consumer Protection Branch.

NATO SECRETARY GENERAL RASMUSSEN'S REMARKS ON 'SMART DEFENSE INITIATIVE'

FROM: U.S. DEPARTMENT OF DEFENSE

NATO Ministers Discuss 'Smart Defense' Initiative
By Jim Garamone
American Forces Press Service

WASHINGTON, Oct. 9, 2012 - NATO defense ministers held discussions in Brussels today on the alliance's "Smart Defense" initiative and how to provide security during tough financial times, NATO Secretary General Anders Fogh Rasmussen said.

Rasmussen briefed reporters on the defense ministers' consultations, in which Defense Secretary Leon E. Panetta is participating.

"This is one of the most urgent challenges facing our alliance today," Rasmussen said, noting that during May's summit in Chicago, the alliance's heads of state and government endorsed the program for the NATO militaries to work together more closely.

"Today, we took stock of the progress we have made, and we discussed the work which lies ahead," he said.

Because NATO nations must work together to develop and field technologies and capabilities that one country alone cannot afford, the summit yielded a list of more than 20 multinational projects "that will give allies more capabilities, more effectively," Rasmussen said.

Smart Defense includes projects related to use of intelligence, surveillance and reconnaissance assets, and it also looks toward improving joint logistics and maintenance. Other projects stress better force protection and better training.

Since the Chicago summit, Rasmussen said, NATO has kept up the Smart Defense momentum, agreeing to two more projects. "Over the coming months, I would expect us to agree to around 10 more, and dozens more ideas are under consideration," he added.

The effort reaches across the alliance, and all are involved. The secretary general stressed that the European allies are playing a central role in Smart Defense. "European countries are involved in every one of the 24 projects we have set in motion so far," he said. European nations are leading two-thirds of the projects, and one-third of the projects are purely European, he said.

The interest shows European allies are aware of their security responsibilities and are looking for smart ways to strengthen the alliance, the secretary general said.

U.S. SECRETARY OF STATE PANETTA'S REMARKS AT NATO MINISTERS MEETING IN BRUSSELS

U.S. Defense Secretary Leon E. Panetta meets with Afghan Defense Minister Bismullah Khan during a meeting at a conference of NATO defense ministers in Brussels, Oct. 10, 2012. DOD photo by Erin A. Kirk-Cuomo

FROM: U.S. DEPARTMENT OF DEFENSE
Presenter: Secretary of Defense Leon E. Panetta; NATO Secretary General Anders Fogh Rasmussen; George Little, Acting Assistant Secretary of Defense for Public Affairs; and Admiral James G. Stavridis (USN), Commander, European Command, and Supreme Allied Command

 

Remarks by Secretary Panetta at the NATO Ministers of Defense Meeting, Brussels, Belgium

MR. GEORGE LITTLE: Good afternoon. I'm pleased to introduce Secretary of Defense Leon Panetta, who is joined by the secretary general. With them are Admiral James Stavridis, NATO supreme allied commander-Europe and commander, United States European Command, General John Allen, commander, ISAF, and commander, U.S. Forces-Afghanistan, and General Joseph Dunford, assistant commandant of the United States Marine Corps.

Following an announcement by the secretary and the secretary general, we'll transition to a press conference with Secretary Panetta. Thank you.

Over to you, sir.

SECRETARY OF DEFENSE LEON E. PANETTA: Okay. Thanks, George.

Good afternoon. It's a pleasure to be back again at NATO headquarters here in Brussels for my fifth meeting with my fellow defense ministers as secretary of defense and for our first gathering since the Chicago summit in May.

Over the past two days, I've taken part in a series of very good meetings with my counterparts from NATO, from our partner nations, and from ISAF contributing nations. The goal of all of these discussions is to ensure that the alliance follows through on the commitments made by NATO political leaders at the Chicago summit, including investment in needed capabilities and implementation of the Lisbon framework on Afghanistan.

We have made significant progress in Afghanistan. Last month, U.S. and ISAF forces concluded the surge of forces to the fight. For the United States, sending an additional 33,000 men and women to war was no easy decision, but it was the right decision, and it made a decisive difference.

As a result, the Taliban could not regain lost ground in 2011 and lost even more ground in 2012. Compared to a year ago, more Afghans are secure, and the conflict has moved farther away from the population centers. Coalition casualties have decreased by 30 percent from last year, a trend that emerged months before we fully removed the surge forces.

The number of Afghan security forces has now grown to about 350,000. And that larger force has maintained its recruitment and retention rates. Those forces have taken the lead to very complex combat operations, and they are suffering the vast majority of coalition casualties, a further sign that the Afghans have the willingness to sacrifice and take the fight to the enemy for their own -- for their own future.

With the surge complete, we have reached a critical moment for the alliance and for this war. There are three keys to future success. First, we must maintain a strong coalition partnership with the Afghan forces. We must do everything we can to help Afghan security forces successfully transition and take the lead for security throughout all of Afghanistan as planned next year.

That includes building the capabilities of the Afghan army and police, by providing security force assistance teams with embedded trainers and mentors. I encourage my fellow ministers to eliminate the shortfalls that we have in providing those teams on the ground.

Second, we must have an effective response to insider attacks. Insider attacks are a tragic part of every war, and the enemy exploits them to undermine mutual trust and cohesion. General Allen and I briefed the coalition leaders on the steps that we are taking alongside our Afghan partners to diminish and defeat this threat.

Those steps include enhancing training, adapting our partnering based on real-time threat information, expansion of vetting and counterintelligence operations, and the use of guardian angels to deter and stop attackers. I made very clear that what tests the coalition is not so much the problem of insider attacks, but rather how effectively we respond to those attacks. Partnering even closer will frustrate the enemy's designs to capitalize on this problem.

And, third, we have to have a careful execution of the campaign plan. As we look to the mid-2013 milestone, and to the end of the transition in December of 2014, we anticipate that we will operate from fewer bases, that the net flow of materiel will turn outbound from Afghanistan, that U.S. enabler support for ISAF partners will continue, but the scope of support will change as the transition proceeds and as we jointly reduce our forces, and that as Afghan forces assume full responsibility, ISAF forces will continue stepping back.

While we have yet to determine the necessary size and composition of the force that will remain in Afghanistan after 2014, NATO's presence should be steadfast and effective.

My fellow ministers and I came out of today's meeting united on three key points. First, we are succeeding in implementing the campaign plan that General Allen put together and that was agreed to in Chicago. Secondly, whatever tactics -- whatever tactics the enemy throws at us, IEDs, insider attacks, car bombs, we will not allow those tactics to divide us from our Afghan partners and we will not allow those tactics to divert us from the mission that we are dedicated to. And, thirdly, we have to remain committed to the principle of in together, out together.

ISAF will complete our mission to help Afghanistan secure and governance itself. And as I said to my fellow ministers, we've come too far, we've fought too many battles, we have spilled too much blood not to finish the job that we are all about.

A clear signal of U.S. commitment to the alliance and to the mission in Afghanistan is the quality of our NATO-ISAF leadership team. And now I'd like to share with you some of the very important changes that we are making to that team.

General Allen has committed ISAF through a very crucial period. And his leadership has put the campaign on the path to success. He oversaw the war at the height of its combat strength, and he oversaw the surge recovery. Under his leadership, ISAF has put relentless pressure on the enemy and built up Afghan security forces. We have turned an important corner. And all of that is now demonstrating their readiness, the readiness of the Afghans, to take the security lead.

I want to express my deep and very heartfelt thanks to General Allen and to his leadership team, to the allied and partner forces in Afghanistan, and to our Afghan partners for their commitment to this effort and to the considerable sacrifices that have been made.

I'm very pleased to announce that President Obama will nominate General Allen to succeed Admiral Jim Stavridis as commander, U.S. European Command, and NATO supreme allied commander in Europe. General Allen is well known to all of you. And if confirmed, as I expect he will, his experience as head of the ISAF forces will be absolutely instrumental in his broader role and in leading NATO's oversight of the mission in Afghanistan.

President Obama will also nominee General Joseph Dunford, United States Marine Corps, to succeed General Allen as commander, U.S. Forces-Afghanistan, and commander of ISAF. General Dunford currently serves as the assistant commandant of the U.S. Marine Corps. He is an exceptionally gifted strategic leader. He's combat-tested, and he believes in ISAF, and if confirmed, as I believe he will be, will be an extraordinary leader of that effort.

And lastly, let me take my -- my opportunity here to thank General Stavridis, Jim, for his service. I've trusted his wise counsel. He's been a good friend. And I've depended on his ability to sustain our military and political relations in Brussels and across the region.

While Jim will be here until the spring, we'll have much more opportunity to talk about his leadership and service. But I can't tell you how much I am thankful for all you've done in this capacity. As an Italian, it's nice to say that about a Greek. (Laughter.)

Owing to the tradition in the United States, Generals Allen and Dunford will refrain from public comment on their nomination in advance of their confirmation testimony before the United States Senate. Ladies and gentlemen, I am privileged to give the floor to Secretary General Rasmussen, and then I'd like to invite General Stavridis to say a few words, as well.

SECRETARY GENERAL ANDERS FOGH RASMUSSEN: Secretary Panetta, ladies and gentlemen, it is a great pleasure for me to announce today that allies have approved the appointment of General John Allen, currently our commander in Afghanistan, as the new supreme allied commander in Europe, following the nomination by President Obama, and, of course, pending confirmation by the United States Senate.

General Allen is doing an outstanding job in Afghanistan. I have been impressed by his leadership, determination, and commitment. And if confirmed, I look very much forward to working with him even more closely once he takes on his new role in the spring. And until then, I will continue to rely as ever on Admiral Jim Stavridis, who continues to excel as our supreme allied commander.

And if confirmed by the Senate, I also look forward to working with General Dunford of United States Marine Corps, who is being nominated to take over command in Afghanistan.

This is a critical time in our mission. The transition of security responsibility to the Afghan forces is progressing according to the timeline we have agreed. We're on track to complete it by the end of 2014 when our combat mission will come to an end. We must ensure we keep up the momentum of transition and continue to build professional and strong Afghan security forces capable of securing their own country.

I'm certain that General Dunford will take on those challenges with great skill and energy. And I'm sure we will work closely together to build on the hard-fought gains we have made.

And with that, I would now like to hand the floor over to SACEUR, Jim.

SUPREME ALLIED COMMANDER JAMES STAVRIDIS: Thank you, Anders.

Thank you very much, Secretary General, Secretary Panetta, my two secretaries, it's a pleasure to appear today very briefly to say a word of pending Senate confirmation in the United States about two extraordinary U.S. Marine Corps officers.

I first would like to say I've known Joe Dunford for almost two decades. I've tracked his career. I've seen him in combat, and I have seen him take on the toughest responsibilities throughout that period, including his current service as a four-star officer and the assistant commandant of the Marine Corps. Joe, you will be superb in this role. We are all counting on you.

Above all, John Allen, who I've known for 40 years, we walked into the U.S. Naval Academy together in 1972, graduated together in 1976, have known and served together lo these four decades, and I assure you, Mr. Secretary and Secretary General, you have selected the right officer to be the next supreme allied commander.

Congratulations, classmate, friend, brother, thank you. Thank you all. (Applause.)

NEUTRON CRYSTALLOGRAPHY AIDING DRUG DESIGN

File Photo:  Chemistry.  Credit:  Wikimedia. 

FROM: LOS ALAMOS NATIONAL LABORATORY

Neutron Crystallography Aids Drug Design

Precisely tailored pharmaceuticals could reduce medical side effects



LOS ALAMOS, NEW MEXICO, October 9, 2012—Researchers at Los Alamos National Laboratory have used neutron crystallography for the first time to determine the structure of a clinical drug in complex with its human target enzyme. Seeing the detailed structure of the bonded components provides insights into developing more effective drugs with fewer side effects for patients.

 

The atomic details of drug binding have been largely unknown due to the lack of key information on specific hydrogen atom positions and hydrogen bonding between the drug and its target enzyme. In this research, scientists used the drug acetazolamide (AZM) -- a sulfonamide drug that has been used for decades to treat a variety of diseases such as glaucoma, altitude sickness, and epilepsy. But when the drug binds with the wrong form (called an isoform) of the target enzyme for the disease, it can produce unpleasant side effects in patients (so called "off-target" drug binding).

 

Enter neutron crystallography – the use of neutron scattering to paint a picture of these bonds.

 

By providing precise information on hydrogen bonding between target enzymes and the treatment drugs (carbon anhydrase II targeted by AZM in this study), the research enables improvements in targeted binding with fewer side effects. Neutron crystallography offers a new and unique insight into these details, providing imagery of the exact structures involved.

 

Scientists from Los Alamos National Laboratory collected the data at the Protein Crystallography Station using neutrons from the accelerator at the Los Alamos Neutron Science Center, LANSCE. The Journal of the American Chemical Society published the research, "Neutron Diffraction of Acetazolamide-Bound Human Carbonic Anhydrase II Reveals Atomic Details of Drug Binding".

 

Researchers include Zoë Fisher and Mary Jo Waltman of the Los Alamos Bioenergy and Environmental Science group, Andrey Kovalevsky formerly of Los Alamos and currently at Oak Ridge National Laboratory, and Robert McKenna, David Silverman and Mayank Aggarwal of the University of Florida.

 

The U.S. Department of Energy Office of Science funds the Protein Crystallography Station at LANSCE. Zoë Fisher received partial support through a Laboratory Directed Research and Development (LDRD) Early Career Award.

 

 

NATIONAL CENTER FOR MEDICAL INTELLIGENCE LOOKS FOR THREATS

Photo Credit:  U.S. Army

FROM: U.S. DEPARTMENT OF DEFENSE
Medical Intelligence Center Monitors Health Threats
By Cheryl Pellerin
American Forces Press Service

FORT DETRICK, Md., Oct. 10, 2012 – From a windowless building behind barriers and fences here, scientists, physicians and other experts monitor a range of intelligence and open-source channels for threats to the health of U.S. forces and the homeland.

But the Defense Intelligence Agency’s National Center for Medical Intelligence, known as NCMI, is an intelligence organization, not a public health organization.

The job, NCMI Director Air Force Col. (Dr.) Anthony M. Rizzo told American Forces Press Service, is not to tell the public what is happening. "It is our responsibility to tell policymakers and planners … what we believe is going to happen," he explained.

The center’s intelligence targets are medical and scientific issues. Its products, like those of the rest of the intelligence community, are predictive analysis and products for warning, produced in four divisions whose experts follow developments in infectious disease, environmental health, global health systems and medical science and technology.

NCMI is the primary source of medical intelligence in the federal government, Rizzo said, "so as a consequence, we have to write for all levels, all customers, … from the president down to the most tactical intelligence officer or surgeon in the field."

In the hallways and offices of the nondescript NCMI building are a broad range of scientists, many with multiple advanced academic degrees, many of them leaders in their fields.

"We take these very smart people," Rizzo said, "and turn them into intelligence officers."

Downstairs is a typical operations center -- multiple desks and computer monitors face large, wall-mounted screens that carry news reports from around the world.

Also at work in the building are scientists from many partner organizations.

"We are an all-source organization, and thus we have to use every means available to get our data. And the intelligence community partners who provide national technical means are physically located here," the director said.

"But we also have responsibility for intelligence for homeland health protection," he added, "[and] we could not do that job without a large number of non-intelligence-community partners who are also resident here -- fully cleared and full-up members of the organization."

Resident partners include organizations like the National Geospatial Intelligence Agency and the Agriculture Department. And Rizzo said he has NCMI experts embedded at other intelligence agencies.

Each NCMI division needs a certain amount of baseline data to do its job, the director explained.

"In the Infectious Disease Division, the baseline requirement is to understand the risk of every type of [endemic] infectious disease in every country. You can imagine why," Rizzo said.

"If an outbreak of mystery disease occurs in a country, we need to be able to say that we know in that country that Ebola, malaria and dengue are very common, so my people can look at the symptoms of mystery disease and know" the most likely suspects, Rizzo said.

"If mystery disease doesn’t fit the things that are most likely," he added, "then we have to start looking really differently."

At NCMI, every division also has a baseline product in addition to alerts and threat forecasts. In the Infectious Disease Division, it’s the Infectious Disease Risk Assessment, a predictive product, Rizzo noted, "that says if you go to a place unprotected, we predict these are the diseases your people will get, and … these are the numbers of cases."

Every federal organization that sends Americans overseas uses this product, along with baseline products from the other divisions.

Also at NCMI is a cross-divisional pandemic warning team that spends all its time monitoring highly pathogenic H5N1 avian influenza and other potential pandemic diseases.

In April 2009, two months before the World Health Organization and the U.S. Centers for Disease Control and Prevention officially declared the global outbreak of H1N1 influenza a pandemic, NCMI published an intelligence product for senior U.S. policymakers that predicted H1N1 would be a pandemic.

"That does not make us better than [CDC]," Rizzo said, "What it does do is make us different, because [CDC] has to be right. We in the intelligence community love to be right, but we also know that in order to provide timely warning, warning in time for the customer to take action to mitigate what we’ve predicted, we have to be early. And the earlier we predict, … the less certainty we have."

At NCMI, the Environmental Health Division monitors toxic industrial chemicals, materials and facilities worldwide. Its baseline product is the Environmental Health Risk Assessment, which addresses the quality of air, food, soil, water and risk from chemical exposure worldwide. The division also does what Rizzo calls predictive hazard area modeling.

"We can tell you with 99 percent accuracy," the director said, "if this thing that’s full of chemicals leaks next Thursday, here’s where the hazard area is, here’s where you should not be standing, and here’s where it’s OK to stand."

The division monitors several facilities around the clock and can forecast dispersion events at those places immediately, but it also can do similar forecasts for any chemical or nuclear facility on the planet, Rizzo said.

Every day of the year, the director said, "there is a biological or chemical event somewhere in the world, sometimes many of them. And we own the responsibility of assessing whether or not those events … are manmade or naturally occurring, and then making predictions about them."

The Global Health Systems Division is responsible for understanding the medical capabilities of every country in the world, and it monitors the quality of every nation’s blood supply. The division’s baseline product is the Medical Capabilities Assessment for each country, and it is responsible for maintaining Defense Department databases that characterize overseas medical facilities, including hospitals, clinics, labs, blood banks and pharmaceutical production facilities.

"If you’re a planner," the director said, "and I don’t care who you’re a planner for, you’re using that Infectious Disease Risk Assessment, you’re using that Medical Capabilities Assessment, you’re using the Environmental Health Assessment to decide, ‘What do I use to protect my people? What do I have to bring? What can I leave home?’"

The NCMI Science and Technology Division is responsible for understanding every nation’s medical defense capabilities against chemical, biological, radiological and nuclear weapons.

"If you understand a country’s medical defense capabilities, that can very much help you understand what their other capabilities might be and what their intent is," Rizzo said. "People plan medical defense based on what they think is going to happen to them or what they think they can do."

Along with the baseline products that come out of each NCMI division, all produce warnings, alerts and special products during crises.

"When it comes to a crisis such as the earthquake in Haiti or an invasion of a country or a NATO bombing campaign against a country, … we have to tailor products to support the U.S. government and the governments of our allies," Rizzo said. "So while we are writing all the time, we’re also very responsive to world events. When the earthquake in Haiti occurred, we put out close to 100 products."

Most products start out in a classified version, but the director said his people are very good at writing products to be shared with NCMI’s non-intelligence community partners.

"We don’t get credit," Rizzo added, "but that doesn’t matter."

NCMI itself is an important partner in the multiagency effort to implement the nation’s first U.S. National Strategy for Biosurveillance, released this summer by the White House to make sure that agencies can quickly detect a range of global health and security hazards.

"When we think of the word biosurveillance, we think of the kinds of things that the public health community does -- collecting cases, taking cultures, deciding which disease is which," Rizzo said. "But we in the intelligence community are looking way before that to determine [if there are] threats on the horizon."

When the experts at NCMI communicate a threat to the public health community, the director added, "they can focus … their public health efforts, and so we are very much involved in biosurveillance, but … at the front end of the process."

The whole world deals with limited resources, Rizzo added, and CDC, the World Health Organization and other public health organizations can’t look at everything all the time.

"But if we in the intelligence community, especially we in medical intelligence, are able to say, ‘Here’s a threat on the horizon that we perceive,’ … then it’s up to our customer to decide whether or not they will think about it," the director added.

"We have very good, nonadversarial, very supportive relationships with our partners," Rizzo said, "and typically if we say we’re concerned, they respond."

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY, USS ENTERPRISE
121004-N-ZZ999-016 ARABIAN SEA (Oct. 4, 2012) Two F/A-18 Super Hornets fly above the aircraft carrier USS Enterprise (CVN 65). Enterprise is deployed to the U.S. 5th Fleet area of responsibility conducting maritime security operations, theater security cooperation efforts and support missions for Operation Enduring Freedom. America's Sailors are Warfighters, a fast and flexible force deployed worldwide. Join the conversation on social media using #warfighting. U.S. Navy photo by Lt. Cmdr. Josh Hammond/Released

121006-N-AB355-338 ATLANTIC OCEAN (Oct. 6, 2012) Boatswain's Mate 2nd Class Ryan Beaton pilots a rigid-hull inflatable boat from the guided-missile cruiser USS Gettysburg (CG 64) with Engineman 2nd Class Jonathan Hendry, left, and Electronics Technician 2nd Class Mark Galetti as porpoise leap beside the boat during Exercise Joint Warrior. Joint Warrior takes place off the coast of Scotland and is designed and led by the joint tactical exercise planning staff in the United Kingdom. It is intended to improve interoperability between allied navies and prepare participants for a role in a joint maritime environment during deployments. America's Sailors are Warfighters, a fast and flexible force deployed worldwide. Join the conversation on social media using #warfighting. (U.S. Navy photo by Mass Communication Specialist 2nd Class Foster Bamford/Released)

NEWS FROM AFGHANISTAN FOR OCTOBER 10, 2012

FROM: U.S. DEPARTMENT OF DEFENSE


U.S. Army Spcs. Ryan Langton, left, and James Morris prepare to depart Forward Operating Base Farah on a mission to Farah City in Afghanistan's Farah province, Sept. 27, 2012. Langton and Morris are assigned to Provincial Reconstruction Team Farah. U.S. Navy photo by Lt. Benjamin Addison




Combined Force Kills Several Insurgents
From an International Security Assistance Force Joint Command News Release

KABUL, Afghanistan, Oct. 10, 2012 - An Afghan and coalition security force killed several armed insurgents during an operation to arrest a Taliban leader in Afghanistan's Sar-e Pul province today, military officials reported.

The security force also seized assault rifles, a machine gun, an extra machine-gun barrel and several grenades.

In other operations today:

-- A combined force in Helmand province detained several suspects during a search for a Taliban facilitator who is alleged to coordinate the movement of insurgent fighters and weapons while planning attacks against Afghan and coalition forces.

-- A combined force killed an armed insurgent during a search for a Taliban leader in Kandahar province. The security force also detained several other suspected insurgents and seized an assault rifle.

In operations yesterday:

-- An Afghan-led, coalition-supported force arrested a Haqqani network leader and killed another during operations in Paktia province. The detained Haqqani leader was actively involved in high-profile attacks on Afghan government officials. The deceased Haqqani leader, Khalid, was responsible for suicide attack planning and the facilitation of weapons and roadside bombs. The security force also detained six additional suspects.

In other recent operations:

-- Afghan commandos partnered with coalition forces killed several insurgents during an Oct. 8 operation in Kunar province. Afterward, the security forces uncovered and destroyed a stockpile of tactical equipment.

-- A combined force killed Taliban leader Amir Gul during an Oct. 7 operation in Wardak province. Also known as Qurashi, he planned roadside bomb and rocket attacks against Afghan and coalition forces.

-- Taliban leader Khal Mohammad was killed Oct. 6 during a coalition airstrike in Kandahar province. He organized the placement of roadside bombs.

US Navy Videos: New MRI Center's Grand Opening

US Navy Videos

FINANCIAL FRAUD ENFORCEMENT TASK FORCE MEMBERS REVEAL RESULTS OF DISTRESSED HOMEOWNER INITIATIVE

FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, October 9, 2012

Financial Fraud Enforcement Task Force Members Reveal Results of Distressed Homeowner Initiative

First Law Enforcement Effort Focused on Crimes Against Struggling Homeowners 530 Criminal Defendants Charged, 73,000 Victims and Losses of More Than $1 Billion

Attorney General Eric Holder, Housing and Urban Development (HUD) Secretary Shaun Donovan, FBI Associate Deputy Director Kevin L. Perkins and Federal Trade Commission (FTC) Chairman Jon Leibowitz today announced the results of the Distressed Homeowner Initiative, the first-ever nationwide effort to target fraud schemes that prey upon suffering homeowners. The yearlong initiative, launched by the FBI, a co-chair of the Financial Fraud Enforcement Task Force’s Mortgage Fraud Working Group, resulted in 530 criminal defendants charged, including 172 executives, in 285 federal criminal indictments or informations filed in U.S. District Courts across the country. These cases involved more than 73,000 homeowner victims and total losses by those victims estimated by law enforcement at more than $1 billion.

"These comprehensive efforts represent an historic, government-wide commitment to eradicating mo rtgage fraud and related offenses," said Attorney General Holder. "The success of the Distressed Homeowner Initiative, and the developments we announce today, underscore our determination to pursue these and other financial fraud criminals around the country."

From Oct. 1, 2011, to Sept. 30, 2012 (FY 2012), the Distressed Homeowner Initiative focused on fraud targeting homeowners, such as foreclosure rescue schemes that take advantage of homeowners who have fallen behind on their mortgage payments. Typically, the con-artist in such a scheme promises the homeowner that he can prevent foreclosure for a substantial fee by, for example, having so-called investors purchase the mortgage, or transferring title in the home to persons in league with the scammer. In the end, the homeowner can lose everything. Other targets of the Distressed Homeowner Initiative include perpetrators of loan modification schemes who obtained advance fees from homeowners after falsely promises that they would negotiate more favorable mortgage terms on behalf of the homeowners.

"With home price increases helping homeowners get back above water and billions of dollars in new resources for families still at risk through the recent mortgage servicing settlement, borrowers are finally beginning to see the light at the end of the tunnel. We know, however, that too many families are still facing threats to sharing in that recovery," said HUD Secretary Donovan. "The Financial Fraud Enforcement Task Force has made important progress through its Mortgage Fraud Working Group to crack down on some of the same types of scam artists that got us into this crisis in the first place—pushing predatory or fraudulent loans on families who simply wanted to own a home, and now pushing false hope for modification of those loans— often preying upon the trust families have in HUD and the Federal Housing Administration. With actions like those announced today, we send a very clear message: if you don’t operate ethically, transparently, and within the boundaries of the law, we will not hesitate to act."

As a part of the Justice Department’s efforts to improve the lives of struggling homeowners, the Financial Fraud Enforcement Task Force’s Victims’ Rights Committee, in partnership with the Certified Financial Planning Board and the Foundation for Financial Planning, will begin offering unprecedented pro-bono financial planning assistance to the victims of a foreclosure rescue scheme, indicted by the U.S. Attorney’s Office for the Central District of California. All 4,000 victims of the scheme, many of whom lost their homes as a result of the fraud, have been invited to attend a free financial planning workshop in Riverside, California. Those who attend the workshop will receive free financial information and education to assist them in recovering from the devastating effects the crime had on their lives and to help them plan for the future. The financial planners at the workshop will be able to answer critical questions relating to tax planning, debt management, foreclosure assistance, job loss, retirement planning, investment advice, insurance, employee benefits and more.

"We recognize the negative impact that mortgage fraud and foreclosures have on our economy and on our communities. We cannot merely investigate after the fact. We must use intelligence and sophisticated techniques to identify and stop those who seek to defraud American homeowners. We will continue to work with our partners across the country to ensure the integrity of the housing market, and to keep our communities safe," said FBI Associate Deputy Director Perkins.

In federal civil actions involving distressed homeowner victims, the Justice Department’s U.S. Trustee Program, the Federal Trade Commission and the Consumer Financial Protection Bureau (CFPB), protectors of the nation’s bankruptcy laws and federal consumer laws, filed 110 cases against 153 defendants in federal cases across the country, with more than 15,000 victims identified and losses estimated at more than $37 million. False or abusive filings in U.S. Bankruptcy Court are commonly used to execute foreclosure rescue scams. State Attorneys General also filed criminal cases against 51defendants, with losses at more than $2 million, and also filed at least 104 civil enforcement actions against 125 defendants with losses to homeowners at approximately $5 million. Last, the Treasury Department’s Office of Financial Stability’s Antifraud Unit and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), in order to protect homeowners from fraudulent or confusing websites that misuse the Treasury seal and key TARP housing program names, such as the Home Affordable Modification Program, shut down or forced into compliance more than 900 mortgage rescue websites or web advertisers.

"With many homeowners still struggling to hold onto their homes, the FTC takes a hard line against con artists who are seeking their next victim," said FTC Chairman Leibowitz.

In order to protect struggling homeowners and increase the number of criminal enforcement actions made as part of this initiative, the members of the Mortgage Fraud Working Group were proactive. The FBI generated new investigations by gathering victim complaint data from FTC databases and other sources, analyzed the data and distributed information of lead value to field offices from coast-to-coast. The FBI, together with HUD Office of Inspector General, also utilized sophisticated undercover operations to facilitate the development of federal distressed homeowner criminal cases. Further, the FBI led a surge consisting of several law enforcement agencies in southern California, where many foreclosure rescue scam operators are located, to develop investigations that could be prosecuted in various federal districts. Many of the investigations initiated as part of the Distressed Homeowner Initiative are ongoing and will result in additional enforcement actions in the near future.

The initiative included federal criminal prosecutions brought by various U.S. Attorneys’ offices and the Department of Justice’s Criminal and Civil Divisions, civil enforcement cases filed by the Department of Justice’s U.S. Trustee Program, FTC and CFPB and criminal and civil cases brought by Attorneys General in over 11 states. Participating federal agencies included the FBI, the Office of Inspector General of the Department of Housing and Urban Development, the Federal Housing Finance Agency’s Office of Inspector General (FHFA-OIG), SIGTARP, Internal Revenue Service-Criminal Investigation, U.S. Postal Inspection Service and the U.S. Secret Service. In addition, the Financial Crimes Enforcement Network, a task force partner, announced today that during the Distressed Homeowner Initiative it collected 4,395 foreclosure rescue Suspicious Activity Reports, a critical tool for law enforcement agencies when conducting investigations.

Press Conference with Secretary Panetta at NATO Headquarters, Brussels, Belgium

Press Conference with Secretary Panetta at NATO Headquarters, Brussels, Belgium

U.S. PRESIDENT OBAMA ANNOUNCES LEADERSHIP POSITIONS IN EUROPE AND AFGHANISTAN

FROM: U.S. DEPARTMENT OF DEFENSE

Obama Praises Nominees for Key Military Positions
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

WASHINGTON, Oct. 10, 2012 - President Barack Obama today announced his nominations for two key military leadership positions in Europe and Afghanistan.

The president is nominating Marine Corps Gen. John R. Allen to serve as NATO's supreme allied commander for Europe and commander of U.S. European Command and Marine Corps Gen. Joseph F. Dunford Jr. to succeed Allen as commander of the NATO-led International Security Assistance Force in Afghanistan.

If confirmed, Allen would succeed Navy Adm. James G. Stavridis, who will retire in the spring after three decades of service. Dunford currently serves as assistant commandant of the Marine Corps. Both nominations are subject to Senate confirmation.

For more than a year, Obama said, Allen has served with distinction in Afghanistan, guiding his forces through a critical period in the country's transition.

The president noted his personal reliance on Allen's counsel and lauded his devotion to national security and U.S. service members.

"Under General Allen's command, we have made important progress towards our core goal of defeating al-Qaida and ensuring they can never return to a sovereign Afghanistan," Obama said in a written statement. "Working with our Afghan partners and international civilians, the forces under General Allen's command have moved forward with a transition to Afghan security forces, who will take the lead for security across the country next year."

Obama noted that Allen's leadership of the coalition in Afghanistan has required close relationships with NATO nations and other partners. "During his tenure in Afghanistan, General Allen established his credibility with our NATO allies and ISAF partners as a strong and effective military leader," he said.

The president also thanked Stavridis for "his steadfast service on behalf of the United States and NATO."

"He has played a critical role in helping to make NATO a stronger alliance and ensuring we have the capabilities and partnerships to meet the challenges of the next century," Obama said.

In announcing Dunford's nomination, the president said the general will assume command of ISAF with "very difficult work" remaining ahead.

"I have full confidence in his extensive experience, strategic leadership and vision," Obama added. "If confirmed by the Senate, he will lead our forces through key milestones in our effort that will allow us to bring the war to a close responsibly as Afghanistan takes full responsibility for its security."

U.S. SAYS IT'S WORKING WITH JORDAN, TURKEY REGARDING PROBLEMS WITH SYRIA

FROM: U.S. DEPARTMENT OF DEFENSE
Panetta: DOD Works with Jordan, Turkey on Syria Repercussions
By Cheryl Pellerin
American Forces Press Service

WASHINGTON, Oct. 10, 2012 - The Defense Department is working with Jordan and Turkey to help with collateral humanitarian and security issues affecting them because of the brutal war that continues in Syria, Defense Secretary Leon E. Panetta said here today.

During a news conference held at the close of a NATO defense ministers meeting, Panetta described U.S. efforts in the Syrian border countries of Jordan and Turkey, where the numbers of Syrians fleeing to Turkey have spiked because of recent fighting in Aleppo.

Together the nations harbor tens of thousands of the more than 200,000 refugees from the violence and death produced since March 2011 by the clash between opposition fighters and the regime of Bashar Assad.

"We have been working with Jordan for a period of time now on a number of the issues that have developed as a result of what's happening in Syria," Panetta said.
One of the main issues is humanitarian relief, the secretary added, and the United States is doing what it can to help both countries respond to the flow of displaced Syrians.

Pentagon officials also have been working with Jordan in the effort to monitor Syrian chemical and biological weapon sites and to try to determine how best to respond to any concerns in that area, he said.

"We've also been working with [Jordan] to try to develop their own military and operational capabilities in the event of any contingency there," Panetta added.

For that reason, he said, "we have a group of our forces there, working to help them build a headquarters and to ensure that we make the relationship between the United States and Jordan a strong one so we can deal with all of the possible consequences" of the war in Syria.

The U.S. presence in Jordan consists of about 150 mostly Army special operations forces, some of whom have been in Jordan for several months, a senior defense official said.

The United States also has reached out to Turkey on humanitarian and chemical and biological weapons issues, the secretary said.

"They're obviously concerned about the CBW sites as well," Panetta said, "so we've worked with them to do what we can to monitor that situation."

On the U.S. approach to the situation in Syria, Panetta said the nation, in addition to working with allies to apply as much diplomatic pressure as possible, operates in three important areas.

One area is humanitarian relief, he said.

"We've provided funds for humanitarian assistance and we have provided other facilities that are needed ... to support the large number of refuges that have gathered in these different camps," the secretary said.

A second area involves monitoring chemical and biological weapon sites in Syria.

"We continue to be concerned about security at those sites," Panetta said. "We want to ensure that security is maintained and we want to be very sure that those [weapons] do not fall into the wrong hands." The United States continues to work with regional partners to monitor the situation and evaluate the security of the sites, he added.

The third area involves assisting the opposition, the secretary added, including providing nonlethal support.

"I know there are countries in the region that are providing lethal support," he said, "but our effort is aimed at trying to work with the opposition in every way possible to ... try to develop their capabilities as well."

BURMA: BEYOND VIOLENCE

From:  CIA World Factbook.

FROM: U.S. DEPARTMENT OF STATE 

Burma's Rohingya: Beyond the Communal Violence
Remarks
Anne C. Richard
Assistant Secretary, Bureau of Population, Refugees, and Migration
Open Society Foundation and Refugees International
Washington, DC
October 9, 2012





From:  CIA World Factbook

I was invited by my good friend Michel Gabaudin of Refugees International, and just now introduced by my good friend Mort Halpern of Open Society, to speak about this issue. And I said, "We can do better than that. I’ll come but we should have Kelly Clements speak." Because my Deputy Assistant Secretary Kelly Clements has just been out to the region on a very remarkable trip. In fact, the last two years have been quite remarkable. The trajectory of U.S.-Burma relations over the past two years, since Aung San Suu Kyi was released from house arrest in November 2010, has been an amazing time. Back then, our relationship with Burma was difficult and had many challenges. And while there are still tensions, no one would have thought possible all of the many developments of the past two years.
 
Highlights include Secretary Clinton’s visit to Nay Pyi Taw and Rangoon in early December of last year. In April 2012, the National League for Democracy, Aung San Suu Kyi’s party, won 43 of the 45 vacant seats in the lower house of Parliament, including a seat for The Lady, who now serves as Chair of the Rule of Law Committee. Ambassador Mitchell’s confirmation in June as our first Ambassador in two decades was another recent development, and most recently, Aung San Suu Kyi’s and President Thein Sein’s September visits to the United States. Perhaps the most important development has been indeed the partnership formed between the Burmese President and Aung San Suu Kyi.

Only a couple weeks ago, I was in a meeting at the State Department on the topic of rule of law with Aung San Suu Kyi. And the thought that she could come to the United States and discuss the situation in her country was unfathomable during her many years of imprisonment in her home.

The president and his partners in government have taken many reformist steps over the past year. However, mutual mistrust between the government and ethnic minority groups runs deep and a long road lies ahead. The June 2012 ethnic and sectarian violence in Rakhine State demonstrates the divisiveness in Burma cultivated over many decades, if not centuries. This will need to be overcome if the Burmese are to achieve lasting peace and genuine national reconciliation.

We, in the U.S. Government, are seeking an end to the violence and want the Burmese to establish a serious dialogue on fundamental political issues. Part of our role in the Bureau of Population, Refugees, and Migration is to provide aid to refugees and displaced people. And in fiscal year 2012, we provided almost $24 million to our international organization and non-governmental organization partners to support protection and humanitarian assistance programs for Burmese refugees and asylum seekers residing in neighboring countries and conflict-affected populations inside Burma. And we are looking at future opportunities to support humanitarian efforts inside.

My Bureau has also benefited from increased openness and unprecedented access, with our staff members being able to travel to places that previously had been off limits. I would specifically like to commend office director Dorothy Shea and program officer Hoa Tran for continuing to advance our engagement in Burma and the neighboring countries. In fact, they traveled to Rakhine state last May. And that trip was filled with great hope for progress, which subsequently was tempered by the June violence.

Most recently, as I said, Kelly Clements traveled to the region with three other senior officials; they were all Deputy Assistant Secretaries. So there was one from our Bureau, one from Democracy, Human Rights and Labor, one from the East Asia Pacific Bureau and one from the Bureau that covers Central Asia and South Asia. So it was called the 4 DAS’s trip, for ‘Deputy Assistant Secretary’. And they were joined in the respective countries by the U.S. Ambassador and the USAID Mission director. So this was really an unusual thing for the State Department to be so organized as to get these folks out there and traveling at the same time and talking to the host governments. Kelly is a PRM superstar. She’s super-smart, she’s super-active, whether she’s slicing and dicing refugee aid numbers or wrestling with foreign governments about flows of refugees. And so it was clearly the smart thing to do to get her to talk of her trip firsthand, things that she witnessed and saw, and so without further ado, let me introduce Kelly Clements.

OBAMA ADMINISTRATION AND BIG BUCKS FOR PUBLIC-PRIVATE PARTNERSHIPS SUPPORTING U.S. MANUFACTURING

FROM: U.S. DEPARTMENT OF LABOR

Obama administration announces $20 million for 10 public-private partnerships to support American manufacturing and encourage investment in the US

Investments will promote job creation and economic growth in local industry clusters in Ariz., Calif., Mich., NY, Okla., Ore., Pa., Tenn. and Wash.

WASHINGTON — The Obama administration today announced that 10 public-private partnerships across America will receive $20 million in total awards to help revitalize American manufacturing and encourage companies to invest in the United States.

The 10 partnerships were selected through the Advanced Manufacturing Jobs and Innovation Accelerator Challenge, which is a competitive multi-agency grant process announced in May 2012 to support initiatives that strengthen advanced manufacturing at the local level. These public-private partnerships consist of small and large businesses, colleges, nonprofits and other local stakeholders that "cluster" in a particular area. The funds will help the winning clusters support local efforts to spur job creation through a variety of projects, including initiatives that connect innovative small suppliers with large companies, link research with the startups that can commercialize new ideas, and train workers with skills that firms need to capitalize on business opportunities.

The Advanced Manufacturing Jobs and Innovation Accelerator Challenge is a partnership among the U.S. Department of Commerce's Economic Development Administration and the National Institute of Standards and Technology, the U.S. Department of Energy, the U.S. Department of Labor's Employment and Training Administration, the U.S. Small Business Administration and the National Science Foundation.

In order to create an economy built to last, America needs to make more things the rest of the world wants to buy. After losing millions of good manufacturing jobs in the years before and during the deep recession, the economy has added nearly 500,000 manufacturing jobs since February 2010 — the strongest period of sustained job growth since the 1990s. While there's more work to be done, steps like today's announcement build on this momentum.

"By partnering across the federal government, these grants will help us leverage resources and ensure that training programs for advanced manufacturing careers provide the skills, certifications and credentials that employers want to see from day one," Secretary of Labor Hilda L. Solis said.

"A strong manufacturing base in America is critical to the health of the U.S. economy, and these awards further demonstrate the Obama administration's commitment to keeping this country on the cutting edge of innovation in manufacturing," said acting Secretary of Commerce Rebecca Blank. "This investment will help accelerate and unleash the most promising ideas in advanced manufacturing, and bring those ideas to market. This will lead to good jobs for American workers, increase the nation's competitiveness, and strengthen an economy that's built to last."

The awards will help regional clusters grow by strengthening their connections to regional economic development opportunities and advanced manufacturing assets, helping develop a skilled and diverse advanced manufacturing workforce, increasing exports, encouraging the development of small businesses, and accelerating innovation in technology. The 10 winning initiatives — based in Arizona, California, Michigan, New York, Oklahoma, Oregon, Pennsylvania, Tennessee and Washington — will each receive approximately $2 million to fund projects that are expected to train a total of 1,000 workers and help nearly 650 companies leverage a cluster's resources in their regions and create jobs across the country.

"As part of President Obama's blueprint for an economy built to last, the Energy Department is investing in innovative, public-private initiatives like the Advanced Manufacturing Jobs and Innovation Accelerator Challenge that support the pillars of American energy, American manufacturing and skills for American workers," said Energy Secretary Steven Chu. "These investments are helping America strengthen our competitive edge and leadership in the global manufacturing sector."

"The SBA pioneered the federal government's first regional cluster strategy two years ago, and we've already seen the tangible benefits of these investments, including job creation, innovation and increased competitiveness," said SBA Administrator Karen Mills. "These 10 new advanced manufacturing jobs and innovation accelerators are proof that we can continue to build on — and complement — the success that we've already achieved and support strong ecosystems of small businesses in targeted regions throughout the country and across key industries. Additionally, by supporting our small innovative manufacturing companies, we are fostering the growth of the American supply chain and creating an economy built to last."

As part of President Obama's commitment to creating an economy built to last, the administration has invested more than $200 million promoting regional innovation clusters. The administration created an interagency task force, known as the Taskforce for the Advancement of Regional Innovation Clusters, to develop and administer interagency grant competitions. This is the third round of the Jobs and Innovation Accelerator Challenge and, in addition to the six partnering agencies, this initiative leverages technical assistance from up to eight other federal agencies.

The 10 winners announced today are:
Arizona: growing the Southern Arizona Aerospace and Defense Region, a project of the Arizona Commerce Authority ($1,817,000).
California: Advanced Manufacturing Medical/Biosciences Pipeline for Economic Development, a project of Contra Costa County, Manex, the University of California — Berkley, Laney College and the Northern California Small Business Development Center at Humboldt State University ($2,190,779).
Michigan: Innovation Realization: Building and Supporting an Advanced Contract Manufacturing Cluster in Southeast Michigan, a project of the Southeast Michigan Community Alliance, the Michigan Manufacturing Technology Center, the National Center for Manufacturing Sciences and Detroit Regional Chamber Foundation ($2,191,962).
New York: a Proposal to Accelerate Innovations in Advanced Manufacturing of Thermal and Environmental Control Systems, a project of Syracuse University, NYSTAR, the State University of New York's College of Environmental Science and Forestry and Onondaga Community College ($1,889,890).
New York: Rochester Regional Optics, Photonics and Imaging Accelerator, a project of the University of Rochester, NYSTAR and High Tech Rochester Inc. ($1,889,936).
Oklahoma: Manufacturing Improvement Program for the Oil and Gas Industry Supply Chain and Marketing Cluster, a project of the Oklahoma Manufacturing Alliance, the New Product Development Center at Oklahoma State University, the Oklahoma Department of Commerce, the Center for International Trade and Development at Oklahoma State University and the Oklahoma Application Engineer Program ($1,941,999).
Pennsylvania: Agile Electro-Mechanical Product Accelerator, a project of Innovation Works, the Catalyst Connection, the National Center for Defense Manufacturing and Machining and the Westmoreland/Fayette Workforce Investment Board ($1,862,150).
Pennsylvania: Greater Philadelphia Advanced Manufacturing Innovation and Skills Accelerator, a project of the Delaware Valley Industrial Resource Center ($1,892,000).
Tennessee: AMP! — the Advanced Manufacturing and Prototyping Center of East Tennessee, a project of Technology 2020, the Tennessee Manufacturing Extension Partnership, Oak Ridge National Laboratory, Pellissippi State Community College and the University of Tennessee ($2,391,778).
Washington and Oregon: Innovations in Advanced Materials and Metals, a project of the Columbia River Economic Development Council, Impact Washington, Southwest Washington Workforce Development Council and the Oregon Microenterprise Network ($1,792,221).

REPORT ON BROKER-DEALER HANDLING OF CONFIDENTIAL INFORMATION AND POTENTIAL MISUSE

New York Stock Exchange.  Photo:  U.S. Government.

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, DC, Sept. 27, 2012 –The Securities and Exchange Commission today issued a staff report intended to help broker-dealers safeguard confidential information from misuse, such as insider trading. The report by the Office of Compliance Inspections and Examinations (OCIE) describes strengths and weaknesses identified in examinations into how broker-dealers keep material nonpublic information from being misused.

This report should help broker-dealers assess the effectiveness of their controls over sensitive information," said OCIE Director Carlo di Florio. "The report illustrates the types of conflicts of interest that may arise between a broker-dealer’s obligations to clients that provide confidential information for business purposes and the potential misuse of such information for insider trading or other improper ends. It also describes various methods that broker-dealers use to identify and effectively manage such conflicts, including information barriers that limit the flow of sensitive information."

Conflicts of interest and other issues of concern raised by the report include:
A significant amount of informal, undocumented interaction occurred between groups that have material nonpublic information and internal and external groups with sales and trading responsibilities that might profit from the misuse of such material nonpublic information
At some broker-dealers, a senior executive might have access to material nonpublic information from one business unit while overseeing a different unit that could potentially profit from misuse of that information, with few if any restrictions or monitoring to prevent such misuse
Some broker-dealers did not have risk controls to address certain business units that possess material nonpublic information such as sales, trading or research personnel who receive confidential information for business purposes; institutional and retail customers or asset management affiliates with access to material nonpublic information, or firm personnel who receive information through business activities outside of investment banking, such as participation in bankruptcy committees or through employees serving on the boards of directors of public companies.
The report also highlights effective practices that examiners observed at some broker-dealers, such as:
Broker-dealers sometimes adopted processes that differentiate between types of material nonpublic information based on the nature of the information or where it originated. In some cases, broker-dealers create tailored "exception" reports that take into account the different characteristics of the information
Some broker-dealers expanded reviews for potential misuse of confidential information to include trading in credit default swaps, equity or total return swaps, loans, components of pooled securities such as unit investment trusts and exchange traded funds, warrants, and bond options
Broker-dealers often considered electronic sources of confidential information and instituted monitoring to identify which employees had accessed the information
Broker-dealers often monitored access rights for key cards and computer networks to confirm that only authorized personnel had access to sensitive areas.
The types of issues identified in this report may be helpful to firms as they review their conflict of interest risk management programs. In particular, in any review of information barriers control programs, broker-dealers should be alert to changes in business practices and available compliance tools.