EXECUTIVES INDICTED FOR STEALING KEVLAR TRADE SECRETS

FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, October 18, 2012

Top Executives at Kolon Industries Indicted for Stealing DuPont’s Kevlar Trade Secrets

Also Charged with Conspiracy to Steal Intellectual Property from Japan-Based Teijin Limited

Kolon Industries Inc. and several of its executives and employees have been indicted for allegedly engaging in a multi-year campaign to steal trade secrets related to DuPont’s Kevlar para-aramid fiber and Teijin Limited’s Twaron para-aramid fiber . The indictment seeks forfeiture of at least $225 million in proceeds from the alleged theft of trade secrets from Kolon’s competitors.

The charges were announced today by U.S. Attorney for the Eastern District of Virginia Neil H. MacBride;Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office .

"Kolon is accused of engaging in a massive industrial espionage campaign that allowed it to bring Heracron quickly to the market and compete directly with Kevlar," said U.S. Attorney MacBride. "This country’s greatest asset is the innovation and the ingenuity and creativity of the American people. The genius of free enterprise is that companies compete on the excellence of their ideas, products and services – not on theft. This indictment should send a strong message to companies located in the United States and around the world that industrial espionage is not a business strategy."

"By allegedly conspiring to steal DuPont’s and Teijin’s intellectual property, Kolon threatened to undermine an economic engine at both companies," said Assistant Attorney General Breuer. "Developing Kevlar and Twaron was resource-intensive work, and required strategic investment and ingenuity. Kolon, through its executives and employees, allegedly acted brazenly to profit off the backs of others. The Justice Department has made fighting intellectual property crime a top priority, and we will continue to aggressively prosecute IP crimes all over the country."

"It’s critical that law enforcement aggressively investigate crimes of intellectual property theft, such as this one," said FBI Special Agent in Charge Mazanec. "If not, intellectual creativity and our economy will be compromised. As a member of the Department of Justice Task Force on Intellectual Property, our office will investigate any company, domestic or international, that steals confidential proprietary information for their own benefit. We will pursue those that prey on the originality and vision of hardworking businesses who conduct their own research, obtain patents and market a successful product."

Headquartered in Seoul, South Korea, Kolon was indicted by a grand jury in Richmond, Va. The indictment charges Kolon with one count of conspiring to convert trade secrets, four counts of theft of trade secrets and one count of obstruction of justice.

Kolon makes a product called Heracron, which is a recent entrant into the para-aramid fiber market as a competitor to products called Kevlar and Twaron. Para-aramid fibers are used to make, for example, body armor, fiberoptic cables and automotive and industrial products. Kevlar is produced by E. I. du Pont de Nemours and Company (DuPont), one of the largest chemical companies in the United States. For decades, Kevlar has competed against Twaron, a para-aramid fiber product produced by Teijin Limited, one of the largest chemical companies in Japan.

According to the indictment, from July 2002 through February 2009, Kolon allegedly sought to improve its Heracron product by targeting current and former employees at DuPont and Teijin and hiring them to serve as consultants, then asking these consultants to reveal information that was confidential and proprietary.

The indictment alleges that in July 2002, Kolon obtained confidential information related to an aspect of DuPont’s manufacturing process for Kevlar, and within three years Kolon had replicated it. This successful misappropriation of DuPont’s confidential information, the indictment alleges, spurred Kolon leadership to develop a multi-phase plan in November 2005 to secure additional trade secret information from its competitors, by targeting people with knowledge of both pre-1990 para-aramid technology and post-1990 technologies.

Kolon is alleged to have retained at least five former DuPont employees as consultants. Kolon allegedly met with these people individually on multiple occasions from 2006 through 2008 to solicit and obtain sensitive, proprietary information that included details about DuPont’s manufacturing processes for Kevlar, experiment results, blueprints and designs, prices paid to suppliers and new fiber technology. In cases where the consultants could not answer Kolon’s specific and detailed questions, Kolon allegedly requested the consultants to obtain the information from current employees at DuPont.

The indictment alleges that during a meeting with one consultant, a Kolon employee surreptitiously copied information from a CD the former DuPont employee had brought with him that contained numerous confidential DuPont business documents, including a detailed breakdown of DuPont’s capabilities and costs for the full line of its Kevlar products, customer pricing information, analyses of market trends and strategies for specific Kevlar submarkets. This wealth of information was allegedly copied and dispersed among several Kolon executives and employees, and the indictment alleges that many of these documents and others associated with the consultants were deleted by the Kolon executives and employees after DuPont filed a civil suit against Kolon in 2009.

Kolon also is accused of attempting to recruit a former employee of a Teijin subsidiary, Teijin Twaron, who reported the requests for trade secret information to Teijin Twaron. Legal representatives from Teijin Twaron sent a letter to Kolon in January 2008 demanding that Kolon cease and desist from seeking to obtain trade secrets related to Twaron. After this incident, the indictment alleges that Kolon continued to try to obtain trade secrets, but took additional steps to attempt to avoid detection of its actions.

The indictment alleges that, in August 2008, Kolon employees met with a current DuPont employee in a hotel room in Richmond and discussed how the DuPont employee could provide trade secrets to Kolon without leaving evidence.

In addition to the corporation itself, the following Kolon executives and employees from Seoul were charged with conspiring together to steal trade secrets and obstruction of justice for deleting information from their computers:

· Jong-Hyun Choi, 56, was a senior executive overseeing the Heracron Business Team. He allegedly met with other top executives at Kolon to develop the directives to secure consultants and directly participated in carrying out the directives.

· In-Sik Han, 50, managed Kolon’s research and development related to Heracron and was allegedly responsible for overseeing the "consulting" sessions with ex-DuPont employees.

· Kyeong-Hwan Rho, 47, worked for Kolon for more than 25 years and served as the head of the Heracron Technical Team beginning in January 2008. He allegedly participated in the consulting sessions.

· Young-Soo Seo, 48, reported to Choi and served as the general manager for the Heracron Business Team beginning in November 2006. He allegedly participated in the consulting sessions.

· Ju-Wan Kim, 40 , was a manager on the Heracron Business Team from September 2007 through February 2009 and reported to Seo. He was the main point of contact at Kolon for at least one of the ex-DuPont employees. He also participated in the consulting sessions.

The conspiracy and theft of trade secrets counts each carry a maximum penalty of 10 years in prison and a fine of $250,000 or twice the gross gain or loss for individual defendants, and a fine of $5 million or twice the gross gain or loss for the corporate defendant. The obstruction of justice count carries a maximum penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss for individual defendants, and a fine of $500,000 or twice the gross gain or loss for the corporate defendant.

The indictment seeks at least $225 million in forfeiture, which represents the approximate gross proceeds of the sale of Heracron from January 2006 through June 2012, along with $341,000 in payments made to former DuPont employees in exchange for trade secret information.

The case is being prosecuted by Assistant U.S. Attorneys Timothy D. Belevetz and Kosta S. Stojilkovic of the U.S. Attorney’s Office for the Eastern District of Virginia’s Financial Crimes and Public Corruption Unit and Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section and Senior Counsel Rudolfo Orjales of the Criminal Division’s Computer Crime and Intellectual Property Section. This case is being investigated by the FBI’s Richmond Field Office.

This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. .

U.S. Department of Defense Armed with Science Update

U.S. Department of Defense Armed with Science Update

Breast cancer and weight

Breast cancer and weight

NATIVE OF CUBA NOW SERVES IN WISCONSIN NATIONAL GUARD

FROM: U.S. DEFENSE DEPARTMENT

Army Command Sgt. Maj. Rafael Conde speaks to 32nd Infantry Brigade Combat Team soldiers following a Feb. 4, 2012, sendoff ceremony for the Wisconsin National Guard's 82nd Agribusiness Development Team at Hartford Union High School in Hartford, Wis. U.S. Army photo by 1st Sgt. Vaughn R. Larson

Face of Defense: Cuba Native Takes Pride in Guard Service
By Army 1st Sgt. Vaughn R. Larson
112th Mobile Public Affairs Detachment

MADISON, Wis., Oct. 17, 2012 - Command Sgt. Maj. Rafael Conde, the top enlisted soldier with the Wisconsin Army National Guard's 32nd Infantry Brigade Combat Team, was 5 years old when his parents fled communist Cuba on one of the last "Freedom Flights" in April 1968.

"My dad was working for a bakery company," Conde said. "They made Cuban bread and pastries. A couple of years after Fidel [Castro] took over, my uncle's company was taken away from him. At that time, my dad was asked to become part of the local communist party. He refused, saying he wasn't a political kind of person. Within a month, he was fired."

With few options available, Conde's father went underground, buying and selling different goods. All the while, his family worried that he would be sent to the grueling sugar cane fields. Conde said his parents applied to leave Cuba to provide better opportunities for their children.

"My dad was 48, and my mom was 42 when they left," Conde said. "They basically left everything they'd worked for in Cuba. They didn't get money for their house or their car -- they left with nothing. I'm 49 -- if I had to start all over, ... it brings you back to reality."

Conde's family settled in south Florida's Cuban community. After graduating from high school in 1980, Conde attended college in Minnesota and joined the Minnesota Army National Guard in 1983.

"What drove me to join the National Guard was I was going to school, and that would give me some extra cash. But that was only 20 percent of it," Conde said. "I looked at the opportunities this country has given me, all the freedoms and liberties you get. Many of us don't understand, I think, what it means to be an American, to live in the U.S. How do you give back? Military service is the way I chose."

Conde moved to Wisconsin in 1986 and joined the Wisconsin Army National Guard. He also served with the Florida Army National Guard in 1991 and 1992. As the command sergeant major for 2nd Battalion, 127th Infantry, he deployed to Iraq in 2005 for a convoy escort mission. In April 2009, he deployed to Afghanistan with an embedded training team, and five months later was assigned to Regional Support Team North Afghanistan as the senior noncommissioned officer for the Afghanistan national security forces development and infrastructure growth.

Living in River Falls in northern Wisconsin has coaxed the Cuban accent mostly out of Conde, but his heritage remains.

"I am who I am," he observed. "Cuban people are very hard-working and passionate about what they believe in. That's part of my Cuban heritage."

America, he said, is the land of opportunity.

"If you look long enough and work hard enough, you'll succeed," Conde said.

"There are great people in America, no matter what heritage they are," he explained. "We Americans need to understand that while there are differences and differences are good, we are better as a nation when we fully engage and understand what all heritages bring to the nation. Diversity means we understand what everybody can bring to the organization.

"I'm proud to say I was born in Cuba and earned the right to be an American citizen," he continued. "I'm proud of my service to this country."

SECRETARY OF DEFENSE PANETTA'S WARNING

FROM: U.S. DEPARTMENT OF DEFENSE

Panetta: Nation Faces 'Dangerous and Unpredictable' World
By Claudette Roulo
American Forces Press Service

NORFOLK, Va., Oct. 19, 2012 - The Hampton Roads area of Virginia has played a vital role in the history of the United States, and of the military in particular, Secretary of Defense Leon E. Panetta said here today.

Since the Civil War and the first battle between two ironclad ships, the area has been on the leading edge of American military innovation, with its shipyards serving as the backbone of American naval power, Panetta said in remarks to members of the Hampton Roads Chamber of Commerce.

The broad challenges now faced by the military also face the Hampton Roads region, he said.

After a decade of war, the U.S. is at a strategic turning point, the defense secretary said. Congressionally mandated budget cuts come at a time when the nation still faces a dangerous and unpredictable world, he said.

"I am not one who believes that you have to choose between fiscal security and national security," he said.

Violent extremism, weapons proliferation, international instability and the rise of new powers across Asia are just some of the challenges facing the country, Panetta said.

"And now we confront a whole new threat of warfare in cyber [space]" he said. "I think this is an area we have got to pay close attention to. This is the battle front of the future. As I speak, there are cyberattacks going on in this country."

"And now they're developing the capability to be able to go after our grid -- our power grid, our financial systems, our government systems -- and virtually paralyze this country," Panetta said.

"We are confronting a series of threats to our national security," he said. "I've got to do everything I can to make sure we protect this country."

To address those challenges while meeting America's fiscal responsibilities, he said, the Defense Department undertook a review of the defense strategy. As part of that review, it established new defense priorities and focused on designing a force that would carry the U.S. into the future.

The five elements of the new defense strategy are, Panetta said, a smaller, more agile force; a rebalance to the Asia-Pacific and Middle East; building international partnerships and alliances; ensuring the nation can confront and defeat aggression, even when it occurs on multiple fronts; and making key investments in defense technologies and capabilities.

As part of that strategy, the defense secretary said, "We will continue to invest in the unique capabilities and the military and industrial facilities like those in Hampton Roads."

"I also want to maintain our industrial base," Panetta said. I'll be damned if I'm going to contract out to any other country to be able to protect ... this country."

For example, he said, despite budget pressures, the Defense Department elected to retain the Navy's full fleet of aircraft carriers.

"Similarly, we are investing in the Virginia-class submarine and upgrading this important capability for the future," he said.

"And finally," Panetta said, "we are investing in the cutting-edge unmanned systems and cyber warfare capabilities that are so important in our mission at Langley Air Force Base."

"This community has strongly positioned itself to help us achieve our strategy," he said. "But ... we are jeopardized if Congress does not act to prevent sequester from taking effect in January," he added.

The additional cuts would be devastating to the nation's defense, Panetta said.

"There's still time to prevent sequestration," he said. "Let me be clear, no one wants this to happen ... but, for God's sake, don't just kick this can down the road."

"The last thing I need, having put this strategy in place, is not to know where I'm headed in the future in terms of a stable budget," the defense secretary said.

The decisions made in Washington have a lasting and real impact on American communities, Panetta said.

"As we emerge out of this decade of war, the new greatest generation of Americans is going to be returning home to communities like this. They need our support in order to transition back into civilian life," the defense secretary said.

"I've got some great weapons systems. I've got some great tanks. I've got some great ships. I've got the best in terms of bombers and fighters," Panetta said. "But do you know what makes the United States strong? It is the men and women in uniform who serve this country."

ONLY SIX STATES HAVE NOT REQUESTED A NO CHILD LEFT BEHIND WAIVER

Photo Credit:  U.S. Department Of Defense

FROM: U.S. DEPARTMENT OF EDUCATION

Obama Administration Approves Idaho’s Request for NCLB Flexibility

34 States and DC Now Approved For Waivers, with Several States Still Pending
The Obama Administration today approved Idaho’s request for flexibility from No Child Left Behind (NCLB) in exchange for state-developed plans to prepare all students for college and career, focus aid on the neediest students, and support effective teaching and leadership. With the addition of Idaho, 34 states and the District of Columbia have now joined in a nationwide, bipartisan movement toward next-generation education reforms that go far beyond No Child Left Behind’s rigid, top-down prescriptions.

"With the addition of Idaho, a growing number of states nationwide are receiving much-needed flexibility from No Child Left Behind," said U.S. Secretary of Education Arne Duncan. "More than a million students are now captured by states’ new accountability systems, and we continue to see impressive reform plans from the local level will drive student achievement and ensure that all students are ready for college and their careers."

Federal education law has been due for congressional reauthorization since 2007. In the face of congressional inaction, President Obama announced in September of 2011 that the Obama Administration would grant waivers from NCLB to qualified states. The first requests for waivers were granted in February of 2012.

The 34 states (plus the District of Columbia) that have been approved for waivers from NCLB include: Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Virginia, Washington and Wisconsin.

The 10 states (plus the Bureau of Indian Education and Puerto Rico) with outstanding requests for waivers include Alabama, Alaska, California, Hawaii, Illinois, Iowa, Maine, New Hampshire, North Dakota, West Virginia.

The 6 states that have not yet requested a waiver include: Montana, Nebraska, Pennsylvania, Texas, Vermont (request withdrawn), and Wyoming.

MEDICAL HERO UP IN THE AIR

FROM: U.S. AIR FORCE
Master Sgt. Shannon McBee saved a man's life while on a flight from Atlanta to San Antonio. McBee is a flight medic by trade who is now assigned to the Air Force Life Cycle Management Center at Maxwell -Gunter Air Force Base, Ala. (U.S. Air Force courtesy photo)

Hero at 30,000 feet

by Airman 1st Class William Blankenship
Air University Public Affairs

10/16/2012 - MAXWELL-GUNTER AIR FORCE BASE, Ala. (AFNS) -- (This feature is part of the "Through Airmen's Eyes" series on AF.mil. These stories focus on a single Airman, highlighting their Air Force story.)

A sergeant here became an unlikely hero Sept. 9 during a flight from Atlanta to San Antonio.

Master Sgt. Shannon McBee, an Air Force Life Cycle Management Center aeromedical evacuation electronic health records project manager, boarded the flight to travel for a temporary duty assignment.

"We had just taken off and got to altitude when I heard a call over the intercom for anyone with medical experience," said McBee, a 12-year flight medic. "It didn't seem like anyone was running back there, so I got up to see if I could help."

When McBee reached the rear of the plane, he found attendants huddled around a man who had passed out on the floor. The flight crew explained that the passenger was getting sick and when he stood up to excuse himself, he became dizzy and fell. Although McBee now manages electronic health records and hasn't seen patients in more than six months, he began administering what turned out to a be life-saving medical exam.

"The man's blood pressure was frighteningly low," McBee said. "The scary part was we did not know why his blood pressure was dropping. My initial thought was that he had internal bleeding or something going on with his heart."

McBee grabbed an oxygen bottle from the airplane's first-aid kit and began administering it to the man. When able to speak, the patient explained how he had not felt well all morning and had several dizzy spells throughout the day.

McBee and the pilot discussed the man's situation, and the pilot decided to continue the flight as scheduled. McBee reassured the pilot he could stabilize the man safely until paramedics could take him after landing.

During the remainder of the flight, McBee, and a nurse who was also onboard, continued helping the man. He administered fluids through an IV, elevated his legs and monitored his vital signs.

"The man passed out and woke up multiple times," McBee said. "He was too weak to get up off of the floor, so we sat in the jump seat beside him during the landing."

After landing two hours later, McBee gave the responding paramedics a medical report on the patient, and they transported the man to a medical facility for further examination.

"I am proud of the way McBee immediately responded to the in-flight medical emergency," said Maj. Anthony Crane, the AFLCMC functional management medical systems chief. "His actions are commendable and exemplary. I'm sure the fellow passenger felt fortunate to have him on his flight."

Although McBee has not heard from the patient, he has been called a hero by his co-workers.

McBee's response to being considered a hero: "Pay attention to the training you are getting in the Air Force," he said. "One day it may save a life."

HOME HEALTH COMPANY OWNER GOES TO PRISON FOR ROLE IN $42 MILLION FRAUD



Photo: Federal Prison In Miami. Credit: U.S. Federal Bureau Of Prisons

FROM: U.S. DEPARTMENT OF JUSTICE

Monday, October 15, 2012

Owner of Miami Home Health Company Sentenced to 120 Months in Prison for $42 Million Health Care Fraud Scheme

WASHINGTON – The owner and operator of a Miami health care agency was sentenced today to 120 months in prison for his participation in a $42 million home health Medicare fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent-in-Charge of the FBI’s Miami Field Office; and Special Agent-in-Charge Christopher B. Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.

Eulises Escalona, 44, of Monroe County, Fla., was sentenced today by U.S. District Judge Joan A. Lenard in the Southern District of Florida. In addition to sentencing Escalona to prison, Judge Lenard ordered him to pay $26.5 million in restitution.

On Aug. 2, 2012, Escalona pleaded guilty in the Southern District of Florida to one count of conspiracy to commit health care fraud.

According to court documents, Escalona was the owner of Willsand Home Health Inc., a Florida home health agency that purported to provide home health care and physical therapy services to eligible Medicare beneficiaries. Escalona pleaded guilty to conspiring with patient recruiters for the purpose of billing the Medicare program for unnecessary home health care and therapy services. Escalona and his co-conspirators paid kickbacks and bribes to patient recruiters in return for patients, prescriptions, Plans of Care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Escalona and co-conspirators also paid kickbacks and bribes directly to physicians, who provided home health and therapy prescriptions, POCs and medical certifications to Escalona and his co-conspirators. Escalona used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services, which Escalona knew was in violation of federal criminal laws.

According to court documents, at Willsand Home Health, patient files for Medicare beneficiaries were falsified to make it appear that such beneficiaries qualified for home health care and therapy services when, in fact, many of the beneficiaries did not actually qualify for such services. Escalona knew that in many cases the patient files at Willsand Home Health were falsified.

From approximately January 2006 through November 2009, Escalona and his alleged co-conspirators submitted approximately $42 million in false and fraudulent claims to Medicare, which paid approximately $27 million on those claims.

This case is being prosecuted by Senior Trial Attorney Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.

U.S. AIR FORCE SPACE COMMAND COMMEMORATES AIRMAN'S DEATH IN IRAQ

FROM: U.S AIR FORCE SPACE COMMAND

Members of Peterson Air Force Base do "burpees" (an up-down exercise with a push-up) while participating in the Airman 1st Class LeeBernard E. Chavis memorial workout Oct. 16. The workout is an annual event continued by Chavis' friends world-wide to commemorate his death on Oct. 14, 2006, in the streets near Baghdad, Iraq. U.S. Air Force photo by SSgt Christopher Boitz

Pain felt around the world

by Capt. Tamara Fischer-Carter
Air Force Space Command Public Affairs
10/17/2012 - PETERSON AFB, Colo. -- While many were hitting snooze for the second time, a driven few answered a calling from deep within.

Approximately 40 Air Force members gathered together outside the fitness center here Oct. 16 to commemorate the 6th anniversary of the death of Airman 1st Class LeeBernard E. Chavis in a unique way.

On Oct. 14, 2006, Chavis, a 21-year-old member of the 824th Security Forces Squadron at Moody AFB, Ga., was killed by sniper fire while he tried to keep civilians away from a suspected bomb in the streets near Baghdad.

Chief Master Sgt. Jason France, former 820th Security Forces Group operations superintendent at Moody AFB, now at Hill AFB, Utah, designed the annual Chavis Workout, a CrossFit-style workout that the group did together in Chavis' memory. The Chavis Workout consists of 150 burpees (or an up-down with a push-up), a one mile run and 150 squat thrusts.

This year, former 824th Security Forces member at Moody AFB, Ga., Staff Sgt. Heather Ruhlman, now a 21st Space Wing paralegal, sent out an invite to the workout via Facebook. She was there in Baghdad when Chavis was killed.

"I never thought in 2008 when we first did this workout together that years later we would be doing it at our new homes spread across the world. There are members of the unit who are not even in the military anymore who go and do the workout," Ruhlman said. "It's nice to know so many still take the time out to remember our fallen Ghostwalker."

Ruhlman said that last year 400 people across the globe accepted the workout invitation she sent. This year appears to have garnered a similar response. Among the people attending the workout here were members of security forces, comptroller, judge advocate and public affairs units; and the nearby USAF Academy.

Staff Sgt. Danny Keurtz, 21st Security Forces member, is a regular at the gym and has been doing two-(or more)-a-days in preparation for the event.

"The turn out today was fantastic. Much more than I think anyone expected," said Kuertz. "With everyone there you could tell people were pushing as hard as they could. It was nice to see people pour so much sweat and camaraderie into remembering Airman 1st Class Chavis. I couldn't have been happier to share this experience with everyone there."

1st Lt. Connie Dillon, public affairs officer with Air Force Space Command, participated. "This event was seriously challenging and deep in meaning. It was something that kicked my butt and made me want to quit every second, but I keep going because of what it stands for," said Dillon.

As each person progressed through the workout, they tick-marked their count with chalk on the pavement. They pressed through the workout in mostly respectful silence, while others from around the world wrote "complete," with their location and a message of love to Chavis on a Facebook page created for the event.


"It warms my heart when I see this enormous outpouring of support for the workout," said Ruhlman. "I can't believe the workout has become what it is today. Six years later, it still hurts just like it did on 14 Oct. 2006, but what's uplifting is knowing Chavis is still remembered just as I always hoped and knew he would be."

At the end of the workout everyone understood what the Air Force family means by "proud heritage and legacy of valor." There was no team huddle or cheer, only the symbolic chalk outlines at each person's feet as they mustered what strength they had left to gather drink bottles and cold weather gear.

With solemn expressions like they had just visited Airman Chavis' grave in person, they turned away to carry on the Air Force mission.

NEW STEALTH FIGHTER AIRCRAFT

FROM: U.S. AIR FORCE

An F-35A Lightning II joint strike fighter from the 33rd Fighter Wing at Eglin Air Force Base, Fla., flies over the Emerald Coast Sept. 19, 2012. (U.S. Air Force photo-Master Sgt. Jeremy T. Lock)

by Marine Corps Cpl. Daniel Wetzel
Defense Media Activity

10/16/2012 - EGLIN AIR FORCE BASE, Fla. (AFNS) -- The engines roared overhead as an F-35A fell into formation. Although this is a basic maneuver for the test pilots, the possibilities for combat environments created by these elite aircraft working together are anything but mundane.

The F-35, which features three variants to be used by the Air Force, Marine Corps and Navy, is a single-seat aircraft capable of stealthy operations, equipped with an enhanced computer technology system. The Marine Corps B variant is also capable of performing short takeoffs and vertical-landings while maintaining the conventional operations of other airplanes.

The F-35 Lightning II Joint Strike Fighter program started in 1997. The program includes plans to replace the Air Force's aging F-16 Fighting Falcon and A-10 Thunderbolt II, the Marine Corps' short takeoff, vertical landing AV-8B Harrier and dogfighting and air-to-ground attacking F/A-18 Hornet and the Navy's stock of legacy Hornets.

"The F-35 is a fifth-generation fighter; but it's more than just a stealthy airplane," said Marine Corps Col. Art Tomassetti, a pilot who has been with the JSF program since 1998. "It goes beyond stealth and low observable capability. It brings together everything that today's computer and digital age can bring to how the airplane flies and how it's maintained."

The F-35 is an ideal combination of stealth, sensor fusion and a robust digital flight control system making it, not only easy for a pilot to fly, but easy to identify and engage targets in the battlespace. Along with ease of flight, the F-35 also allows pilots greater situational awareness.

"When you look at the F-35, you can't look at it as a single airplane against another single airplane," Tomassetti said. "You have to look at a group of F-35s working together, then you really get to take advantage of what the F-35 brings to the battle space. The ability of the airplanes to use a variety of sensors to gather information and share the information they gather between planes is truly incredible."

With the F-35, pilots can access information about possible targets and threats from supporting F-35 aircraft via data links, which allows them to see more and identify more of what is happening in the battle space, Tomassetti said.

Currently, the military is only training seasoned pilots on the new airplane at Eglin Air Force Base.

When new pilots are allowed into the program, they will find themselves in a unique training environment along with enlisted aircraft maintainers and mechanics from all three branches of service and also coalition partners from several foreign nations.

These service members will learn how to operate and maintain the F-35 through a digital training environment. This kinetic learning system allows the learning to occur through touching and doing, rather than seeing and hearing.

"The fact that we're starting with the same airframe, same formations, same weapons capabilities, I think that already puts us at a better starting point when we show up to a combat theater together," said Lt. Col. Lee Kloos, squadron commander for the 58th Fighter Squadron, of the integration of forces with the F-35.

Kloos, who has more 2,100 hours flying the F-16, said having the Air Force, Marine Corps and Navy field the same airframe allows a common frame of reference for pilots regardless of service.

The aircraft is also a joy to fly, Kloos said. Despite the advanced technology and complexity of the aircraft, it's a very easy aircraft to fly, and basic pilot actions remain the same as in any fighter aircraft.

"Pull back on the stick and the trees get smaller, push forward and the trees get bigger," Kloos said. It is a stable and well-balanced plane designed for today's generation who grew up playing video games, he said.

Comparatively speaking, the F-35 has a clean cockpit. Instead of a multitude of switches inherent of many aircraft, the F-35 has two touch screens with interfaces similar to a tablet computer.

For the maintainers, things are a little tougher.

"I was working on the F-15 C and D models," said Staff Sgt. Matthew Reed, F-35 A maintainer. "The F-35 is a completely different aircraft. The technology is challenging at times."

Since the F-35 is still in operational testing, the maintainers and pilots work through all the bugs together. On a continuous basis, personnel are testing the aircraft in new maneuvers and capabilities. Once these are monitored and assessed, the pilots are cleared to perform them in their daily flight operations.

"Today our training consists of the basics of takeoff, landing, navigation and basic formation as we wait for the flight clearance to expand and allow us to train specific mission sets," Tomassetti said.

Air Force maintainers, the first service members to work on the F-35, use the maintenance side of the computer to do preventative diagnostics and pinpoint possible problems.

With the pilots and maintainers working together, the Air Force and Marine Corps have flown hundreds of training sorties since their first flight in 2011. They continue to fly daily to bring the F-35 A, the Air Force's conventional landing and take-off variant, F-35 B, the Marine Corps' STOVL variant, and F-35 C, the Navy's carrier-based variant, closer to combat operations.

USS JOHN C. STENNIS STRIKE GROUP TAKES PLACE IN U.S. 5TH FLEET

FROM: U.S. NAVYWarfighting: John C. Stennis Strike Group Enters US 5th Fleet

John C. Stennis Carrier Strike Group Public Affairs

JOHN C. STENNIS, At Sea (NNS) -- The John C. Stennis Carrier Strike Group (JCSSG), entered the U.S. 5th Fleet Area of Responsibility (AOR), Oct. 17.

The JCSSG takes the place of the Enterprise Carrier Strike Group, which departed U.S. 5th Fleet AOR to return to the United States where flagship USS Enterprise (CVN 65) will be deactivated after more than 50 years of service.

"We're looking forward to working with our partner nations and ensuring the vital sea lanes of this region remain free for all maritime traffic," said Rear Adm. Chuck Gaouette, commander, JCSSG. "We have trained for a wide variety of contingencies, from supporting coalition ground troops in Afghanistan to conducting humanitarian assistance operations, and I'm confident this strike group will accomplish any mission that we are asked to execute."

JCSSG deployed four months ahead of schedule, to support combatant commander requirements for U.S. assets in the region.

While en route to 5th Fleet, the JCSSG conducted integrated training within the strike group, as well as combined operations in the U.S. 7th Fleet with the George Washington Carrier Strike Group. The JCSSG also had two port visits in 7th Fleet, Sepangar, Malaysia and Phuket, Thailand.

The JCSSG consists of the aircraft carrier USS John. C. Stennis (CVN 74), Carrier Air Wing 9, Destroyer Squadron 21 and guided-missile cruiser USS Mobile Bay (CG 53).

INTERNATIONAL SPACE STATION NEWS FOR OCTOBER 18, 2012

FROM:  NASA

DOD News Briefing on Efforts to Enhance the Financial Health of the Force with Secretary Panetta, Assistant Director Petraeus, and Acting Deputy Assistant Secretary Milam from the Pentagon

DOD News Briefing on Efforts to Enhance the Financial Health of the Force with Secretary Panetta, Assistant Director Petraeus, and Acting Deputy Assistant Secretary Milam from the Pentagon

USS BAINBRIDGE CREW RECEIVE ARLEIGH BURKE FLEET AWARD

FROM: U.S. NAVY
Adm. Bill Gortney, left, commander of U.S. Fleet Forces Command, presents the Arleigh Burke Fleet Award to the crew of the guided-missile destroyer USS Bainbridge (DDG 96). The award is given annually to the most improved battle-efficient ship or aircraft squadron from both the Atlantic and Pacific Fleet. U.S. Navy photo by Mass Communication Specialist 3rd Class Kayla Jo Finley (Released) 121016-N-YF783-004

ASHTON B. CARTER ON MIDDLE EAST







FROM: U.S. DEPARTMENT OF DEFENSE

U.S. Must Stay Committed to Middle East, Carter Says

By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

SOUTHWEST ASIA, Oct. 18, 2012 - It is important for the U.S. to maintain its commitments to the Middle East, even as the nation's defense strategy starts to shift focus away from the region, the deputy defense secretary told troops on a military installation here today.

Deputy Defense Secretary Ashton B. Carter spoke to approximately 200 U.S. service members about the transition of the nation's defense strategy, but emphasized remaining engaged in the U.S. Central Command area of responsibility.

"You, right here, right now, are at the fulcrum of so much of our national security thinking," he said. "We did put together a good defense strategy last year. We're going from the era of Iraq and Afghanistan where we all were totally riveted [daily] on supporting the fight in Iraq and Afghanistan."

Carter noted that Afghanistan operations continue.

"We're still in there, and will be now for two [more] hard fighting seasons, and then an enduring presence there after," He said.

The secretary called the drawdown in Afghanistan "a realistic plan" requiring "us to keep going hard for another couple of years."

"You all are an important part of that effort. But, this is where the transition comes in. You can see the ending of that era. [The] first, post-9/11 era of focus on Iraq and Afghanistan. You can see that era coming to an end," Carter said.

"So all of us are picking our heads up out of that foxhole, and looking around, looking forward, looking ahead," he said. "[We're] asking ourselves what are the security challenges that are going to define our future?"

Carter said many people are familiar with the shift in focus toward the Asia-Pacific, but added "there's a second part of that."

"[It] is to retain our commitment to this CENTCOM [area of responsibility], and it's changing set of issues which are just as weighty as Iraq and Afghanistan," he said. "They're just different."

Yes, we still have to continue to support Afghanistan, Carter said, because it's still happening. This means both sending stuff in there, and getting stuff out.

"But looking beyond that, what do we have?" Carter asked. "Iran – very serious. All of the problems that you see didn't begin with the Arab Spring. They are made visible by the Arab Spring. All the tension in this region."

The secretary talked about changes in the military's approach to dealing with conflict from the "old days" to now.

"In the old days, you could wind up real slowly before you delivered a punch," Carter said. "That was okay. For Desert Storm, we took months getting ready, bringing stuff in. All the while saying 'brother, in six months, you're going to be sorry you messed around with the United States.'"

"Now you have to be postured," he said, "where it's 'brother, you're going to be sorry in six hours that you messed with the United States.'"

Carter said the "velocity of conflict" has increased, but so has the opportunity to "snuff" that conflict out.

"[It's] got to happen very fast, and so the presence, what we have here daily, matters in a way, strategically, that it didn't matter 20 years ago," he said. "So, you all are in a critical place, at a time where when we're asking you to do an entirely new set of things."

"A hugely important set of things, Carter said. "And we're counting on you back in the [United] States. We'll come as soon as we can, but the reality is you're it."

The secretary said it's "trivial" to talk about jointness, but it is "truly impressive" to see such team effort.

"The fact that you're able to operate as a joint force is a huge advantage," Carter said. "It's something that is like anything else in life, particularly, military affairs."

"It doesn't come for free – it comes from working at relationships," he said. "Practicing, making the whole sum of the parts do that."

This, Carter said, is why the U.S. has the best military in the world.

"Thanks to you all for what you're doing here," he said. "It is much appreciated. And that's why ... Kuwait looks to us for security."

"We have an excellent relationship with the Kuwaitis, and I thank you all for what you do to keep that going," Carter said.

U.S.-RUSSIA BILATERAL ADOPTION AGREEMENT

FROM: U.S. DEPARTMENT OF STATE

United States - Russia Bilateral Adoption Agreement

Media Note
Office of the Spokesperson
Washington, DC
October 18, 2012

The Department of State and U.S. Citizenship and Immigration Services (USCIS) are pleased to announce that the Agreement between the United States of America and the Russian Federation Regarding Cooperation in Adoption of Children will enter into force on November 1, 2012, following an exchange of diplomatic notes between the U.S. and Russian governments.

The Department of State and USCIS work to promote a safe, ethical, and transparent adoption process for prospective adoptive parents, birth families, and children involved in intercountry adoptions.

Each year, thousands of children find loving, nurturing homes through intercountry adoptions, and the lives of thousands of American families have been enriched by welcoming Russian orphans into their homes. In April 2010, the U.S. and Russian governments began negotiating the Agreement to strengthen procedural safeguards in the adoption process between the United States and Russia.

U.S. Secretary of State Hillary Clinton and Russian Foreign Minister Sergey Lavrov signed the Agreement on July 13, 2011 in Washington, D.C. The Russian Duma approved the Agreement on July 10, 2012 and the Russian Federation Council approved the Agreement on July 18, 2012. Russian President Vladimir Putin signed the Agreement into law on July 28, 2012.

The full text of the Agreement, as well as a detailed FAQ can be found online at http://adoption.state.gov.

MAN PLEADS GUILTY IN PLOT TO ASSASSINATE SAUDI AMBASSADOR TO THE U.S.

FROM: U.S. JUSTICE DEPARTMENT

Wednesday, October 17, 2012

Man Pleads Guilty in New York to Conspiring with Iranian Military Officials to Assassinate Saudi Arabian Ambassador to the United States

Manssor Arbabsiar, aka Mansour Arbabsiar, pleaded guilty today in federal court in the Southern District of New York to participating in a plot to murder the Saudi Arabian Ambassador to the United States while the Ambassador was in the United States. Arbabsiar, a 58-year-old naturalized U.S. citizen holding both Iranian and U.S. passports, was arrested on Sept. 29, 2011, at New York’s John F. Kennedy International Airport. He pleaded guilty today before U.S. District Judge John F. Keenan.

The guilty plea was announced by Attorney General Eric Holder; Michele M. Leonhart, Administrator of the Drug Enforcement Administration ( DEA); Lisa Monaco, Assistant Attorney General for National Security; Preet Bharara, U.S. Attorney for the Southern District of New York; and Stephen L. Morris, FBI Houston Special Agent in Charge.

Arbabsiar pleaded guilty to a superseding information that charges him with three counts. Count one charges Arbabsiar with traveling in foreign commerce and using interstate and foreign commerce facilities in the commission of murder-for-hire. Count two charges him with conspiring to do so. Count three charges Arbabsiar with conspiring to commit an offense against the United States, namely, an act of terrorism transcending national boundaries. He faces a maximum potential sentence of 25 years in prison (10 years on counts one and two, and five years on count three). Arbabsiar is scheduled to be sentenced by Judge Keenan on Jan. 23, 2013, at 11:30 a.m.

In connection with his guilty plea, Arbabsiar admitted that, from the spring of 2011 to the fall of 2011, he conspired with officials in the Iranian military who were based in Iran, to cause the assassination of the Saudi Arabian Ambassador while the Ambassador was in the United States. Arbabsiar acknowledged that at the direction of these co-conspirators, he traveled to Mexico on several occasions during 2011 in order to arrange the assassination of the Ambassador. Arbabsiar admitted that, with his co-conspirators’ approval, he had arranged to hire a DEA confidential source (CS-1), who claimed to be a representative of a drug cartel, and CS-1’s criminal associates, to murder the Ambassador. Arbabsiar further admitted that he agreed to pay $1.5 million to CS-1 and had discussed with CS-1 a plan to murder the Ambassador at a restaurant in Washington, D.C. -- a plan that was approved by Arbabsiar’s co-conspirators. Arbabsiar then arranged for a $100,000 down payment, in two installments, to be wired to CS-1.

As noted in the complaint and indictment previously filed in Manhattan federal court, t he Qods Force is a branch of the Iranian Islamic Revolutionary Guard Corps (IRGC). The Qods Force conducts sensitive covert operations abroad, including terrorist attacks, assassinations and kidnappings, and is believed to have sponsored attacks against Coalition Forces in Iraq. In October 2007, the U.S. Treasury Department designated the Qods Force under Executive Order 13224 for providing material support to the Taliban and other terrorist organizations.

"A little more than a year after his arrest, Manssor Arbabsiar has admitted to his role in a deadly plot approved by members of the Iranian military to assassinate a sitting foreign Ambassador on U.S. soil," said Attorney General Holder. "Today’s plea and the disruption of this plot should serve as a reminder of the exceptional efforts of our law enforcement and intelligence agencies in protecting America against terrorist attacks and in holding accountable those who plan such actions."

"The dangerous connection between drug trafficking and terrorism cannot be overstated, and this case is yet another example of DEA’s unique role in identifying potentially deadly networks that wish to harm innocent Americans and our allies worldwide," said DEA Administrator Leonhart. "Using DEA’s elaborate and sophisticated investigative expertise to infiltrate violent drug and terror organizations globally, we successfully identified this threat and worked closely with the FBI to prevent a potentially deadly outcome." ‪

"Thanks to the collaborative efforts of many U.S. law enforcement and intelligence professionals, this international assassination plot hatched in Iran was thwarted before anyone was harmed and a key conspirator has pleaded guilty. This case underscores the evolving threat environment we face and the need for continued vigilance at home and abroad," said Assistant Attorney General Monaco.

U.S. Attorney Bharara stated: "As was originally charged, and as Arbabsiar has now admitted, he was the extended murderous hand of his co-conspirators, officials of the Iranian military based in Iran, who plotted to kill the Saudi Ambassador in the United States and were willing to kill as many bystanders as necessary to do so. Arbabsiar traveled to and from the United States, Mexico and Iran and was in telephone contact with his Iranian confederates while he brokered an audacious plot. The audacity of the plot should not cause doubt, but rather vigilance regarding others like Arbabsiar, who are enlisted as the violent emissaries of plotting foreign officials. This office will continue to pursue the co-conspirators in this plot and others in Iran or elsewhere who try to export murder. Thanks to the great work of the FBI, DEA and the prosecutors in this office, Mr. Arbabsiar must now answer for his conduct."

"Today’s guilty plea entered by Mr. Arababsiar is the culmination of exceptional intelligence and law enforcement efforts," said FBI Special Agent in Charge Morris. "I would like to thank the investigators, analysts and task force officers at the FBI and DEA in Houston, our Legal Attaché Office in Mexico City, and all partners in the Intelligence Community who worked tirelessly on this case. Of special note I’d like to recognize the exemplary leadership from Department of Justice’s National Security Division and the U.S. Attorney’s Office in the Southern District of New York."

According to the complaint and indictment filed in Manhattan federal court, as well as the information to which Arbabsiar pleaded:

Arbabsiar met with CS-1 in Mexico on multiple occasions between May 2011 and July 2011. During the course of these meetings, Arbabsiar inquired as to CS-1’s knowledge with respect to explosives and explained that he was interested in, among other things, attacking an embassy of Saudi Arabia and the murder of the Saudi Ambassador to the United States. In a July 14, 2011, meeting in Mexico, CS-1 told Arbabsiar that he would need to use at least four men to carry out the Ambassador’s murder and that his price for carrying out the murder was $1.5 million. Arbabsiar agreed and stated that the murder of the Ambassador should be handled first, before the execution of other attacks that Arbabsiar had discussed with CS-1. Arbabsiar also indicated that he and his associates had $100,000 in Iran to pay CS-1 as a first payment toward the assassination.

During the same meeting, Arbabsiar also described to CS-1 his cousin in Iran, who he said had requested that Arbabsiar find someone to carry out the Ambassador’s assassination. Arbabsiar indicated that his cousin was a "big general" in the Iranian military; that he focuses on matters outside of Iran and that he had taken certain unspecified actions related to a bombing in Iraq.

In a July 17, 2011, meeting in Mexico, CS-1 noted to Arbabsiar that one of his workers had already traveled to Washington, D.C., to surveil the Ambassador. CS-1 also raised the possibility of innocent bystander casualties. Arbabsiar made it clear that the assassination needed to go forward, despite mass casualties, telling CS-1, "They want that guy [the Ambassador] done [killed], if the hundred go with him f**k ‘em." CS-1 and Arbabsiar discussed bombing a restaurant in the United States that the Ambassador frequented. When CS-1 noted that others could be killed in the attack, including U.S. senators who dine at the restaurant, Arbabsiar dismissed these concerns as "no big deal."

On Aug. 1 and Aug. 9, 2011, Arbabsiar caused two overseas wire transfers totaling approximately $100,000 to be sent to an FBI undercover account as a down payment for CS-1 to carry out the assassination. Later, Arbabsiar explained to CS-1 that he would provide the remainder of the $1.5 million after the assassination. On Sept. 20, 2011, CS-1 told Arbabsiar that the operation was ready and requested that Arbabsiar either pay one half the agreed upon price ($1.5 million) for the murder or that Arbabsiar personally travel to Mexico as collateral for the final payment of the fee. Arbabsiar agreed to travel to Mexico to guarantee final payment for the murder.

On Sept. 28, 2011, Arbabsiar flew to Mexico. Arbabsiar was refused entry into Mexico and was placed on a return flight destined for his last point of departure. On Sept. 29, 2011, Arbabsiar was arrested by federal agents during a flight layover at JFK International Airport in New York. Several hours after his arrest, Arbabsiar was advised of his Miranda rights and he agreed to waive those rights and speak with law enforcement agents. During a series of Mirandized interviews, Arbabsiar confessed to his participation in the murder plot.

Arbabsiar also admitted to agents that, in connection with this plot, he was recruited, funded, and directed by men he understood to be senior officials in Iran’s Qods Force. He said these Iranian officials were aware of and approved of the use of CS-1 in connection with the plot; as well as payments to CS-1; the means by which the Ambassador would be killed in the United States and the casualties that would likely result.

Arbabsiar also told agents that his cousin, who he had long understood to be a senior member of the Qods Force, had approached him in the early spring of 2011 about recruiting narco-traffickers to kidnap the Ambassador. Arbabsiar told agents that he then met with CS-1 in Mexico and discussed assassinating the Ambassador. Arbabsiar said that, afterwards, he met several times in Iran with Gholam Shakuri, aka "Ali Gholam Shakuri," a co-conspirator and Iran-based member of the Qods Force, and another senior Qods Force official, where Arbabsiar explained that the plan was to blow up a restaurant in the United States frequented by the Ambassador and that numerous bystanders would be killed. The plan was approved by these officials.

In October 2011, after his arrest, Arbabsiar made phone calls at the direction of law enforcement to Shakuri in Iran that were monitored. During these phone calls, Shakuri confirmed that Arbabsiar should move forward with the plot to murder the Ambassador and that he should accomplish the task as quickly as possible, stating on Oct. 5, 2011, "[j]ust do it quickly, it’s late…" Shakuri also told Arbabsiar that he would consult with his superiors about whether they would be willing to pay CS-1 additional money. Shakuri, who was also charged in the plot, remains at large. The charges against Shakuri are merely accusations, and he is presumed innocent unless and until proven guilty.

U.S. STATE DEPARTMENT REP. DAVIES ANSWERS QUESTIONS ON NORTH KOREA

Map: North Korea. Credit: CIA World Factbook

FROM: U.S. STATE DEPARTMENT

Remarks at Narita AirportRemarks

Glyn Davies
Special Representative for North Korea Policy
Tokyo, Japan
October 16, 2012

AMBASSADOR DAVIES: It's wonderful to be back in Tokyo. I'm here for meetings with Japanese counterparts and then also a trilateral meeting tomorrow morning with Korean counterparts and Japanese counterparts. My host for this visit is Director General Sugiyama, and I want to thank him very much in advance for his hospitality.

I look forward to having good conversations with Japanese Government officials, and this is the first stop on a week-long trip to North Asia. I go on from here to Korea and then from there to China, for talks with those governments. And with that, I'm happy to try to answer your questions.

QUESTION: What are your expectations for the trilateral talks tomorrow?

AMBASSADOR DAVIES: This trilateral meeting, this is not the first time we've done this. We do this every few months, this is very much a follow-up to the trilateral ministerial meeting that occurred in New York between the Foreign Ministers of Japan, Korea, and the United States just a few weeks ago at the United Nations General Assembly.

They discussed North Korea, among other issues, and we will follow up on those conversations. So the purpose of it is really to deepen our understanding of the issues, exchange views, and coordinate. This is particularly important given the fact that we are all coming up on political transitions, so we're very much looking forward to having these conversations.

QUESTION: I understand that you're not directly in charge of the territorial disputes, but with the current situation, do you have any concerns about the territorial disputes, that they might have a negative impact in terms of the unity of the trilateral meeting?

AMBASSADOR DAVIES: Well, I've found that on the North Korea issue, actually our coordination has been quite strong, and quite good, bilaterally obviously but then trilaterally with Korea as well. So I don't expect there to be any impact on our discussions. You know our basic position in the United States, which is that we hope very much and look to Japan, and China, and Korea to work these issues out between them. Thank you.

QUESTION: Just one more question. What is your current assessment of the North Korean situation in terms of nuclear development, missile development?

AMBASSADOR DAVIES: Well, we're in a somewhat troubling moment, because the North Koreans have been saying things that make it appear as if they are considering moving away from their long-standing obligation to denuclearize, which is spelled out best in the September 2005 Joint Statement.

This would be, we think, a big mistake for North Korea to make. Denuclearization is essential, from the standpoint of maintaining the Six Party Talks, it is the core reason why have Six Party Talks, is to work to denuclearize the Korean Peninsula.

And I think the other important thing is that North Korea will never have strong and full diplomatic, political, and economic relations with the outside world as long as it remains a nuclear outlaw. So it's very important that they take seriously their commitment to denuclearize and they follow up on it. That's one of the things we'll be talking about here today. Anyways, the flight was a little bit late, I've got to get to the hotel and then go to my meetings. So thank you very much.

THE INFUSION THERAPY SCHEME

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, October 17, 2012

Clinic Owners Plead Guilty in Detroit-Area Infusion Therapy Scheme

WASHINGTON – Two owners and operators of clinics that claimed to specialize in treating HIV and other conditions pleaded guilty today for their roles in an infusion therapy scheme carried out at two Detroit-area clinics that submitted millions of dollars in fraudulent claims to Medicare.

The guilty pleas were announced by Assistant Attorney General Lanny A. Breuer of the Department of Justice’s Criminal Division; U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan; Special Agent in Charge Robert Foley III of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (HHS-OIG) Chicago Regional Office.

Raymond Arias, 40, and his wife, Emelitza Arias, 25, of Troy, Mich., each pleaded guilty, before U.S. District Judge Paul D. Borman of the Eastern District of Michigan, to one count of conspiracy to commit health care fraud. At sentencing, the defendants each face a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is currently scheduled for Feb. 12, 2013.

According to plea documents, Raymond Arias conceived of and oversaw fraud schemes at two clinics for which he was a beneficial owner: Elite Wellness LLC, and Carefirst Occupational & Rehabilitation Center Inc. He admitted to paying physicians to refer Medicare beneficiaries to Elite Wellness, and to purchasing Medicare beneficiary identifications for the purpose of submitting fraudulent claims to Medicare for expensive infusion therapy services that were not rendered as claimed by Carefirst.

According to court documents, Raymond Arias attempted to hide the Elite Wellness scheme from law enforcement by directing a nominee owner to assume control of the claims submitted and the bank account into which Medicare payments were deposited. After the nominee owner became involved, Raymond Arias and his alleged co-conspirators submitted approximately $10 million in claims over a 3-month period beginning in August 2010.

According to court documents, Raymond Arias directed this nominee to transfer approximately $2.6 million in Medicare payments offshore to Panama and Mexico.

Between approximately October 2009 and October 2010, Raymond Arias admitted, he and his alleged co-conspirators at Elite Wellness submitted or caused to be submitted approximately $12.5 million in fraudulent claims to the Medicare program for infusion therapy services that were not rendered. Medicare paid approximately $5.4 million of those claims.

According to plea documents, Emelitza Arias participated with her husband in a scheme to defraud Medicare by submitting claims for expensive infusion therapy services that were not rendered by Carefirst, of which she was also an owner. In an attempt to create an appearance that Carefirst was a legitimate enterprise, Emelitza Arias injected Medicare beneficiaries with vitamins. Emelitza Arias also assumed responsibility for the claims submitted by Carefirst, and managed the bank account into which the fraud proceeds were deposited.

Between approximately July 2010 and June 2011, Raymond and Emelitza Arias and their alleged co-conspirators at Carefirst submitted or caused to be submitted more than $900,000 in fraudulent claims to the Medicare program for infusion therapy services that were not rendered. Medicare paid approximately $530,000 of those claims.

This case is being prosecuted by Assistant U.S. Attorney Philip A. Ross of the Eastern District of Michigan and Trial Attorney Catherine K. Dick of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

MENINGITIS AND SEPTIC ARTHRITIS

FROM: U.S. CENTERS FOR DISEASE CONTROL,

Case Definitions for Meningitis and Septic Arthritis

Probable Case
A person who received a methylprednisolone acetate (MPA) injection, with MPA that was definitely or likely produced by the New England Compounding Center (NECC), and subsequently developed any of the following
<sup>Meningitis1 of unknown etiology following epidural or para-spinal injection 2 after May 21, 2012;
Posterior circulation stroke without a cardioembolic source and without documentation of a normal cerebrospinal fluid (CSF) profile, following epidural or para-spinal injection2 after May 21, 2012;3
Osteomyelitis or abscess of unknown etiology in the spinal or para-spinal structures at the site of injection following epidural or para-spinal injection2 after May 21, 2012; or
Osteomyelitis or worsening inflammatory arthritis of a peripheral joint (e.g., knee, shoulder, or ankle) of unknown etiology diagnosed following joint injection after May 21, 2012.
1 Clinically diagnosed meningitis with one or more of the following symptoms: headache, fever, stiff neck, or photophobia, in addition to a CSF profile showing pleocytosis (>5 white blood cells, adjusting for presence of red blood cells by subtracting 1 white blood cell for every 500 red blood cells present) regardless of glucose or protein levels.

2 Para-spinal injections include, but are not limited to, spinal facet joint injection, sacroiliac joint injection, spinal or para-spinal nerve root/ganglion block, or blood patch.

3 Patients in this category who do not have any documented CSF results should have a lumbar puncture performed if possible.

Confirmed Case
A probable case with evidence (by culture, histopathology, or molecular assay) of a fungal pathogen associated with the clinical syndrome.

Post-ProceduralIinfection in Patients Exposed to Non-MPA NECC Products
A patient who developed an infection in a normally sterile site4 following use of one or more products labeled as sterile and prepared by NECC, excluding MPA.

4 Normally sterile sites include blood, CSF, pleural fluid, peritoneal fluid, pericardial fluid, surgical aspirate, bone, joint fluid, or internal body site (e.g., lymph node or brain).


　


　

　</sup>