U.S. AIR FORCE HISTORY

 

FROM: U.S. AIR FORCE SPACE COMMAND
Maui Ground-based Electro-Optical Deep Space Surveillance achieved intial operating capability on 1 Oct 1982. Photo Credit: U.S. Air Force Space Command.

AFSPC Milestone: Maui's GEODSS system achieved Initial Operating Capability
10/22/2012 - Peterson AFB, Colo. -- Air Force Space Command is celebrating its 30th Anniversary! Here is a significant milestone from the command's history ...

Maui's Ground-based Electro-Optical Deep Space Surveillance (GEODSS) achieved Initial Operating Capability on 1 Oct 1982. The current primary mission of the detachment is to detect, track and identify all tasked space objects within its area of coverage. The unit usually provides data on deep space objects in the orbits from 3,000 to 22,000 miles, although it has a limited near earth detection capability. Satellite information is provided to the Joint Space Operations Center at Vandenberg AFB, California. Additionally, GEODSS provides Space Object Identification (SOI) to the National Air and Space Intelligence Center (NASIC) at Wright Patterson AFB, Ohio.

World Polio Day

World Polio Day

PORTRAIT OF A MACHINE GUNNER SERVING IN AFGHANISTAN

FROM: U.S. DEPARTMENT OF DEFENSE
Army Spc. Patrick Serna, a 23-year-old native of Corcoran, Calif., is on his first deployment to Afghanistan. U.S. Army photo by Sgt. Michael Sword

Face of Defense: Son Inspires Machine Gunner's Service
By Army Sgt. Michael Sword
Combined Joint Task Force 1 Afghanistan

LOGAR PROVINCE, Afghanistan, Oct. 22, 2012 - Army Spc. Patrick Serna left his hometown of Corcoran, Calif., for only one reason: his son, Mason.

"I knew that if I could join, I could pay bills, go to college and I'll be able to support him in the long run," said Serna, a machine gunner for B Battery, 4th Battalion, 319th Airborne Field Artillery Regiment, Task Force 173rd Airborne Brigade Combat Team.

When Serna, 23, walked into the recruiter's office, he already was leaning toward a job in combat arms.

"I had that mindset that 'I need to go to the Army, be crazy and fight the war,' but, there were no infantry spots open," he said. "So I picked this [specialty] because they shoot cannons and it sounds fun."

As a cannon crewmember, Serna originally learned to be part of a team in charge of firing the battalion's large artillery pieces. But here, B Battery is in the role of a maneuver unit, and Serna finds himself patrolling the mountains with the nearly 30-pound M240B machine gun in hand.

"I'll do what I have to for all our guys to get back," he said.

No matter what he's doing, Serna said, he continues to enjoy it.

"I want to excel as much as I can in the Army and get what I can get out of it," he said. "My recruiter told me, 'If you're going to be combat arms, make sure you go to college,' so I'm going to do as much college as I can."

Growing up, Serna moved up and down the West Coast, so he's no stranger to being in a new location. But being so far from home, and especially his son, makes life in Afghanistan a little more difficult.

"It sucks being away from him now, but in the long run, it will be better for us," he said.

When he returns to Bamberg, Germany, the home of B Battery, Serna plans to re-enlist. He said he hopes to end up somewhere closer to home, but even if not, he plans on continuing his military career as a paratrooper.

"Probably my favorite thing about the Army is doing things you can't just do back home," he said. "You can't jump out of planes anywhere else for free."

What the label says

What the label says

GENERAL SERVICES ADMINISTRATOR DAN TANGHERLINI'S REMARKS REGARDING NEW NOAA CENTER

FROM: U.S. GENERAL SERVICES ADMINISTRATION
 
Tangherlini Says New NOAA Center Represents Government’s Commitment to Sustainable Practices
Remarks by
Dan Tangherlini
U.S. General Services Administration
Opening of the NOAA Center for Weather and Climate Prediction
University of Maryland, College Park
October 15, 2012

Ladies and Gentlemen, on behalf of everyone who has worked on this project at GSA, it is a pleasure to be here today. We all know how important it is to know the weather when you walk out the door in the morning, but I don’t think that I realized just how important it is to understand the effects of weather until I worked for the DC Department of Transportation.

In that kind of an environment, an accurate forecast is about more than whether or not you need an umbrella. It’s about deciding whether or not 40,000 children can get to school, some of whom rely on those schools not just for learning, but for food as well. It’s about understanding if it’s safe to send hundreds of thousands of commuters out on our roads and public transit systems.

No matter where you work, whether it is in government or in business, good data is the foundation of good decision making. And understanding the weather and the full range of its potential impact is essential information to individuals who manage some of our most important services.

This brand new, almost 270,000 square foot center will enable NOAA to provide exactly that kind of data. By consolidating 3 NOAA offices and bringing more than 800 meteorologists, scientists, data managers and other NOAA employees together in this state of the art facility, they will be able to provide the entire nation with short range and long range weather, climate, and hydrological forecasts.

At GSA, our mission is to provide federal agencies the support they need to fulfill their responsibilities to the American people at the maximum possible value. This facility gives NOAA the resources they need to do their jobs to the best of their ability. And with sustainable features such as "green roofs" bio-retention areas, recycled construction materials, highly energy efficient windows and motion based lighting systems, and a storm water cistern to collect water for irrigation, it provides value to both this agency and the taxpayers. We can all be proud of this "green crown jewel" of the M-Square Research and Technology Park. It represents this government’s commitment to sustainable practices by making the most efficient and effective use possible of natural as well as fiscal resources, which is why it is under consideration by the EPA as an "Energy Star" building.

This project would not have been possible without the dedicated work of some men and women here at GSA and I would be remiss if I did not take a moment to recognize their contributions. I want to thank Jim Dunn, the project manager; Calvin Myint, the Director of the Triangle Service Center; Martha Gates; the former Director of the Triangle Service Center, who is now retired, but handled a large amount of the work that went into this project; Mark Stadsklev; the project contracting officer; and everyone else from GSA who worked so hard to make this project a reality.

This is a great day for GSA, NOAA, and the University of Maryland. To Dr. Lubchenco and everyone at NOAA, and to Dr. Loh and everyone at the University of Maryland, congratulations on this new facility. I know you’ll put it to good use.

SBA-BACKED LOANS REACHED $923 MILLION IN FY2012

Photo: Cargo Ship. Credit: Wikimedia.

FROM: U.S. SMALL BUSINESS ASSOCIATION

– SBA-backed loans to exporters continued to grow in FY2012, reaching more than $923 million, which supported $1.7 billion in small business exports.

"Giving small businesses the tools they need to export their goods and services and create jobs is an important part of our core mission," said SBA Administrator Karen Mills. "Exporting is creating opportunities for small businesses to create good-paying jobs and provide economic benefits to local communities nationwide."

SBA has recently revamped its International Trade Loan which has seen an upsurge of 106 percent in loans guaranteed and 207 percent in dollar volume. The loan allows small manufacturers to expand their facilities or buy equipment to manufacture products sold internationally, either directly or indirectly through an Export Trading Company or an Export Management Company.

SBA is promoting this "indirect export" model of using an export intermediary, along with other export-related services, training and counseling, through a series of export conferences and matchmaking events hosted by the SBA that began in 2010. As part of that series, the SBA, the Federal Reserve Bank of St. Louis, and the National Small Business Association today jointly sponsored an Export Matchmaker Trade Fair – Missouri Edition. More than 150 business representatives from 16 states and four countries registered to participate, with half of the attendees from the St. Louis metropolitan area.

The event today featured workshops on international trade topics that will help small business owners learn how to export, expand their operations and create jobs. A matchmaking trade show helped small business manufacturers match up with Export Management Companies and Export Trading Companies specializing in exporting U.S. goods and services.

Since 2009, SBA has guaranteed 6,100 loans to small business exporters for over $3.1 billion and supported more than $6 billion in exports.

Internet Address:


http://www.sba.gov/news

　

RECENT U.S. NAVY PHOTOS

FROM:  U.S. NAVY
An F/A-18 Hornet flies by the Nimitz-class aircraft carrier USS Dwight D. Eisenhower(CVN 69) while conducting an air power demonstration. Dwight D. Eisenhower is deployed to the U.S. 5th Fleet area of responsibility conducting maritime security operations, theater security cooperation efforts and support missions as part of 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 Mass Communication Specialist Seaman Darien G. Kenney (Released) 121019-N-NU634-131

Lt. Cmdr. Ryan Beaty, assigned to the aircraft carrier USS Dwight D. Eisenhower (CVN 69), conducts aerial refueling with an Air Force KC-10A Extender during combat operations. Dwight D. Eisenhower 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. Greg Linderman (Released) 121011-N-DO750-001

SOYUZ ROCKET TRAVELS TO THE LAUNCH PAD IN KAZAKHSTAN

 

FROM: NASA

Rocket Rollout

The Soyuz rocket is rolled out to the launch pad by train, on Sunday, Oct. 21, 2012, at the Baikonur Cosmodrome in Kazakhstan. Launch of the Soyuz rocket is scheduled for Tuesday, Oct. 23. The rocket will send Expedition 33/34 Flight Engineer Kevin Ford of NASA, Soyuz Commander Oleg Novitskiy and Flight Engineer Engineer Evgeny Tarelkin of ROSCOSMOS on a five-month mission aboard the International Space Station.

Image Credit-NASA-Bill Ingalls

U.S. DEPARMENT OF DEFENSE ON FORCE STRUCTURE CHANGES

Photo Credit:  U.S. Navy

FROM: U.S. DEPARTMENT OF DEFENSE

Army, DOD Must Adjust to Budget, Force Structure Changes

By Amaani Lyle
American Forces Press Service


WASHINGTON, Oct. 23, 2012 - The Army will continue to customize its mission objectives based on budget and force structure changes, a senior defense official said here yesterday during the 2012 Association of the U.S. Army's annual conference.

Todd Harvey, director of force development for the Office of the Secretary of Defense, said a defense strategy drafted in January to meet severe spending cuts over the next decade reflected DOD's analysis of the preceding decade.

"We saw a transformation of a number of operations and activities that we had been engaged in over the past 10 years, [leading] us to believe we could begin shifting our focus to broader vistas," he said.

In addition to drawing down operations in Iraq, DOD steadily fostered the Afghan security lead transition as the fracturing of al-Qaida's central control and leadership of terrorist operations persisted, Harvey said.

Although the potential to examine future challenges emerged, Harvey said, the partial list of what was to come was "daunting."

"The variety, complexity and types of challenges we expected to face were remaining at least constant, and in some cases, even increasing," he said.

Harvey cited upheavals in North Africa and the Middle East and the "volatile" standoff with Iran, in which economic sanctions created an increasingly unpredictable situation, as examples. He also explained that a "shrouded leadership transition" in North Korea created its own dynamic of potential unpredictability, while al-Qaida local franchises mushroomed throughout the world.

Harvey also noted China's increasing devotion to economic and military resources as the nation continued determining how it will interact among its closest neighbors and with the United States.

This changing geopolitical landscape and the rise of asymmetric capabilities such as weapons of mass destruction and cyber issues are not entirely new, but their concurrence has potential to create particularly volatile situations for the United States, he said. Meanwhile, he added, Middle Eastern and North African upheavals continue to provide opportunities for local radicals to establish a foothold.

"As government-controlled stockpiles of sensitive technologies and capabilities began to decline, those systems become available to radicals and other disruptive forces," Harvey said.
With such potentially pendulous swings and a high degree of unpredictability, the Army and the Defense Department must adjust their strategies to best prime for future missions, Harvey added.

But what to cut isn't always cut and dried, officials discovered in determining how to absorb the spending cuts, Harvey said. "There really wasn't anything that we had been doing that we felt secure enough to risk at adequate levels ... to throw something overboard," he explained. Even in the realm of humanitarian assistance, he added, a senior leader might struggle with the decision to cut such a mission, opting instead to preserve the option to react to earthquakes, floods and other disasters.

Harvey noted that Pentagon officials have discovered no "free lunch" in functional missions or regional engagement.

"The force needs to be agile, versatile and ready to perform a range of missions," he said.

These demands pose unique challenges for each of the services, Harvey added, particularly the Army, in light of force structure constraints.

"The challenges are as broad as they've ever been," he said, adding that the Army will continue to seek the right balance among investments in force structure, readiness and modernization.

"We're trying to stretch a shrinking force across as least as much mission as we've had to date," he said.

NEWS FROM AFGHANISTAN FOR OCTOBER 23, 2012

Photo:  Afghanistan.  Credit:  U.S. Army

FROM: U.S. DEPARTMENT OF DEFENSE

Combined Force Arrests Taliban Fighter
From an International Security Assistance Force Joint Command News Release

KABUL, Afghanistan, Oct. 23, 2012 - An Afghan and coalition security force arrested a Taliban fighter in Afghanistan's Kunduz province today, military officials reported.

The arrested insurgent fighter is suspected of organizing and executing attacks against Afghan and coalition forces throughout Kunduz province.

During the operation, the security force also detained two other suspected insurgents.

In other operations today:
-- A combined force detained a number of insurgents during a search for a Taliban facilitator in Helmand province. The facilitator coordinates and assists in improvised explosive device attacks in central Helmand province.

-- In Kandahar province, a combined force detained a number of insurgents during a search for a Taliban leader responsible for conducting IED attacks against Afghan and coalition forces throughout Kandahar province.

In operations yesterday:
-- Afghan special police, enabled by coalition forces, arrested several suspected insurgents while executing an Afghan search warrant in Balkh province. After searching the immediate area the combined force found and seized several weapons and IED-making materials.

-- Combined forces in Wardak province killed Taliban leader Ghulam Ali, a Taliban leader directly responsible for coordinating attacks against Afghan and coalition forces, facilitating the transfer of weapons throughout Wardak province, and developing Taliban network attack plans with other Taliban leaders.

-- Afghan special police, enabled by coalition forces, killed two enemy fighters and seized weapons, ammunition and narcotics in Uruzgan province.

-- Combined forces killed two insurgents in Logar province conducting a mortar attack against Forward Operating Base Shank.

-- A combined force in Paktia province killed Haqqani network leader Niaz Mohammad, who was responsible for planning and participating in ambush attacks against Afghan and coalition forces in the area.

In an Oct. 21 operation, Taliban leader Qasim was killed in Kandahar province. He was responsible for the acquisition and distribution of weapons and ammunition for attacks against Afghan and coalition forces based in the area. An Oct. 20 coalition operation killed a senior Taliban leader and a number of associated insurgents in Uruzgan province.

　

　

　


　

A WELL TRAINED SPACECRAFT

DVIDS - Video - AUSA Speech - Gen. Ray Odierno

DVIDS - Video - AUSA Speech - Gen. Ray Odierno

ALASKA AIR NATIONAL GUARD RESCUE MISSIONS IN ALASKA

FROM: U.S. AIR FORCE
An Alaska Air National Guard HH-60 Pave Hawk helicopter flies over Alaska during a winter training mission. (U.S. Air Force photo/Master Sgt. Sean Mitchell)

Alaska National Guard conducts three search-and-rescues in three days
by Maj. Guy Hayes
Alaska Air National Guard
10/19/2012 - CAMP DENALI, Alaska (AFNS) -- The 11th Air Force Rescue Coordination Center is working around the clock to lead search-and-rescue efforts, calling in multiple agencies, including the Alaska Air National Guard, to assist in three separate missions since Oct. 14.

The first mission the RCC opened was in response to an overdue Super Cub that was last seen early morning Oct. 13 at the Soldotna Airport. The pilot was flying his aircraft from Soldotna to Wolf Lake, near Wasilla, but never made it to his destination, according to officials.

The RCC tasked the Kenai Civil Air Patrol on Oct. 14 to search the departure area around Soldotna, but Civil Air Patrol members were unable to locate his aircraft. Since then, the Alaska Air National Guard and Civil Air Patrol units from Anchorage, Joint Base Elmendorf-Richardson, Birchwood and Seward have joined in the search efforts, flying grid patterns over the pilot's flight path to look for signs of his aircraft.

The search has focused on three areas: the pilot's last known point in Soldotna, the destination at Wolf Lake and the flight path in between the two points. The RCC has also coordinated efforts with the Alaska State Troopers to follow leads that may help with the search. Weather conditions have hampered search efforts, but Civil Air Patrol units from Anchorage, Elmendorf and Birchwood are still searching.

The RCC was notified of a second mission by Alaska State Troopers Oct. 15 at 8 p.m. The request was for medical assistance to treat a man with a gunshot wound to the chest at Hiline Lake.

According to the RCC officials, Alaska State Troopers were unable to execute the mission with its helicopter because there was no crew available. LifeMed Alaska, an air ambulance provider, declined the mission because the weather was below its standards for flying.

The RCC alerted the Alaska National Guard's 210th and 212th Rescue Squadrons, and following a situation brief, they launched an HH-60 Pave Hawk helicopter at 9:25 p.m. with two Alaska State Troopers onboard because of the unknown circumstances surrounding the incident and remote nature of the location.

Arriving on scene at 10:07 p.m., the Guardian Angels performed life saving measures to treat the man. They continued these efforts as they loaded him onto the Pave Hawk and throughout the flight to an Anchorage hospital.

They arrived at the hospital at 11:30 p.m. where he was released to medical personnel.

During the same timeframe, RCC officials said they were contacted again by the Federal Aviation Administration to search for an overdue pilot flying a C-1A twin-engine cargo aircraft. The pilot was reported overdue by co-workers after he was scheduled to deliver supplies from Wasilla to Nixon Fork Mine.

The same 210th Rescue Squadron flight crew that had just finished the rescue at Hiline Lake was tasked and began their search at 1 a.m. Oct. 16, searching along the expected flight path using night-vision goggles.

With no flight plan filed by the pilot, RCC officials said the crew was unable to find any sign of the aircraft and returned to Elmendorf after two hours of searching.

At 8 a.m. Oct. 16, the Alaska Air National Guard's 211th Rescue Squadron was tasked by the RCC to continue the search with an HC-130 aircraft. According to RCC officials, the equipment onboard the HC-130 has advanced electronic search equipment that allows it to pick up weak electronic signals and hone in on them.

After hours of searching, the Alaska guardsmen on the HC-130 located a crash site in the vicinity of Skwentna. After circling over the suspected location, the crew obtained visual identification of the plane that matched the description of the aircraft.


The RCC immediately tasked the Alaska Air National Guard's 210th Rescue Squadron with 212th Rescue Squadron Guardian Angels onboard to respond to the crash site. Once on scene, the Guardian Angels were lowered from the HH-60 Pave Hawk helicopter via hoist into a wooded area that contained the site.

Guardsmen identified the single occupant pilot, who was deceased, officials said. The RCC transferred control of the mission to Alaska State Troopers and the National Transportation Safety Board.

Both aircraft reported overdue are equipped with older 121.5 MHz beacons. According to RCC officials, if the pilots had installed the newer 406 MHz beacon, their ability to locate the aircraft would be much faster because they could use satellites to hone in on their location.

DVIDS - Video - Amphibious Assault Ship America (LHA 6) Christening

DVIDS - Video - Amphibious Assault Ship America (LHA 6) Christening

U.S. GEN. CARTER F. HAM TALKS ABOUT MANAGING CHANGE TO CADETS

FROM: U.S. DEPARTMENT OF DEFENSE
Ham Urges Cadets to Manage Change, Stay with Bedrock Values

By Jim Garamone
American Forces Press Service
WASHINGTON, Oct. 22, 2012 - The U.S. military is a learning and growing entity, and young officers must be flexible enough to lead their organizations, the commander of U.S. Africa Command told ROTC cadets here today.

Army Gen. Carter F. Ham spoke at the Association of the U.S. Army's ROTC luncheon at the Renaissance Hotel.

Ham, who is the senior ROTC graduate in the Army today, compared what he faced when he entered the Army in 1974 with what today's ROTC graduates will face. He noted that when he entered the Army, the draft had just ended and the enemy was the Soviet Union.

"We focused everything we did on that one single, but very dangerous and predictable threat," he said. "The Army that you will lead is very different from that."

The threat environment is unpredictable, Ham said, and that will create more challenges for young officers coming into the force. "The good news is, the soldiers and noncommissioned officers that you will lead are tremendously experienced in this environment," the general told the cadets. "They are combat tested. They are culturally savvy. And they have demonstrated their ability to perform a wide range of tasks across the spectrum of conflict."

The very excellence of the rank and file in the Army today means the service needs officers who are "imaginative, agile, adaptive, and can think critically and creatively," he said.

But while the methods will change, Ham said, young officers can stand on the bedrock of 237 years of Army history and values. "Loyalty, duty, respect, selfless service, honor, integrity and personal courage are values that don't change," he said. "They are the foundation upon which you and your leadership and professional knowledge will be built upon."

The U.S. military has to be ready to confront a range of threats and issues, and the government has not been very good at predicting where the next threat is coming from, Ham said.

"But we do know the security environment is going to be increasingly complex," he said. "The world in which we live is ever so connected, and events go global instantly. So we may not know precisely what threats will emerge, but as an Army, as individuals, we must be prepared to respond across the spectrum of conflict to address those threats."

The next decade will see dynamic change, and young officers coming in today must survive and prosper managing that change, the general said. The combatant commands will change, and young officers must understand the roles and missions of these commands, Ham said. Language training and cultural training will become more important, he added.

"My crystal ball is a little bit fuzzy, and I don't know what the future holds," Ham said, "but I do know that wherever you are going to operate as Army officers, it is going to be inside somebody else's culture, and the more we understand about that, the better off we'll be."

Young soldiers today will be working even more closely with sailors, Marines and airmen in joint operations, and the ability to work with civilian agencies and international partners also will be an important asset for young officers, Ham noted.

"We have a hard time predicting what will happen," he said, "but we can identify the attributes that will be necessary for success."

U.S. STATE DEPARTMENT DAILY BRIEFING

http://www.google.com/url?q=http://www.addthis.com/bookmark.php&sa=D&sntz=1&usg=AFQjCNFYzDlKeLL_IMEm7XBQrYQa1f17Zg

THE USS COLE PROCEEDINGS

FROM: U.S. DEPARTMENT OF DEFESNE
Motions to Resume for Suspect in USS Cole Attack

By Terri Moon Cronk
American Forces Press Service

WASHINGTON, Oct. 22, 2012 - U.S. military commission proceedings against a suspect in the October 2000 USS Cole bombing and other alleged terrorist attacks are scheduled to resume in Guantanamo Bay, Cuba, tomorrow.

Alleged al-Qaida member and Saudi-born Abd al Rahim Hussayn Muhammad al-Nashiri, 46, is accused of being the mastermind behind the bombing of the Navy warship, defense officials said.

Charges against Nashiri also stem from an attempted attack on the USS The Sullivans in January 2000, and an attack on the French-flagged oil tanker Limburg in October 2002.

Nashiri is charged with perfidy, or treachery; murder in violation of the law of war; attempted murder in violation of the law of war; terrorism; conspiracy; intentionally causing serious bodily injury; attacking civilian objects and hazarding a vessel.

The Cole was in Aden, Yemen, for a routine fuel stop when a small watercraft approached the ship's port side and exploded. The bombing killed 17 sailors and wounded 40 others. U.S. officials allege Nashiri was under the supervision of Osama bin Laden, and that bin Laden personally approved the attacks.

The judge, Army Col. James L. Pohl, is expected to hear up to 18 motions from the defense and three from the prosecution over the next three days. The majority of motions from the defense involve disclosure from prosecutors, appearances by expert witnesses and dismissal of the trial, officials said.

The U.S. prosecution's motions concern Nashiri's presence in the courtroom, reducing the amount of the proceedings that are closed as compelled by the defense, and disclosure of the defendant's mental health records.

If convicted, Nashiri could receive the death penalty.






 

FORMER MORTAGAGE CO. OFFICERS PLEAD GUILTY IN $27 MILLION FRAUD SCHEME

FROM: U.S. DEPARTMENT OF JUSTICE

Friday, October 19, 2012

Former Officers of American Mortgage Specialists Inc. Plead Guilty in North Dakota to Conspiracy in $27 Million Fraud Against Bnc National Bank

Two Additional Employees Charged for Roles in Scheme
WASHINGTON – Two former officers of Arizona-based residential mortgage loan originator American Mortgage Specialists Inc. (AMS) pleaded guilty today for their roles in a $27 million scheme to defraud North Dakota-based BNC National Bank, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Timothy Q. Purdon of the District of North Dakota; Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and Steve A. Linick, Inspector General of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG).

Scott N. Powers, the CEO of AMS, and David E. McMaster, an AMS vice president, pleaded guilty today before U.S. District Judge Daniel L. Hovland in the District of North Dakota to one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution.

Powers and McMaster were charged in a criminal information unsealed on Oct. 2, 2012, in the District of North Dakota. Lauretta Horton, the former director of accounting at AMS, and David Kaufman, an outside auditor, were also charged in separate informations unsealed on Oct. 2, 2012, for their roles in this scheme. Both Horton and Kaufman are scheduled to appear this afternoon before Magistrate Judge Charles S. Miller Jr. for arraignment.

"At the height of the financial crisis, Scott Powers, David McMaster and their alleged co-conspirators enacted a scheme to systematically defraud BNC Bank," said Assistant Attorney General Breuer. "When their mortgage lending company became unsustainable, they turned to fraud. By deliberately misleading BNC about its assets and activities, Powers and McMaster threatened the viability of BNC and put its employees and customers at risk. Today’s guilty pleas demonstrate our commitment to holding individuals accountable for illegal conduct contributing to the housing crisis."

"This prosecution is proof that illegal conduct related to the mortgage crisis impacted banks all across the country and even here in North Dakota," said U.S. Attorney Purdon. "Through close collaboration with our federal investigative partners and the Justice Department’s Criminal Division, we were able to secure today’s guilty pleas and begin to correct this wrongdoing."

"Powers, McMaster and their alleged co-conspirator took advantage of BNC National Bank receiving $20 million in TARP funds to defraud BNC out of more than $27 million in a scheme engineered to cover their losses from the downturn in the housing market," said Special Inspector General Romero. "They used BNC as their personal piggy bank, and the bank was unable to pay millions of dollars in TARP dividend payments owed to American taxpayers. Fraud against TARP banks equals fraud against taxpayers, and SIGTARP and our law enforcement partners will hold perpetrators of TARP fraud accountable for their crimes."

"Such fraudulent activity at any time is unacceptable, but it’s particularly egregious when conducted by those who are supposed to ensure the integrity of the mortgage industry," said Inspector General Linick. "My office is committed to holding accountable those who engage in fraudulent activities, and we are proud to have worked on this case with our law enforcement partners."

According to court documents, Powers and McMaster conspired from October 2007 to April 2010 to defraud BNC by making false representations regarding the financial and operational well being of AMS in order to obtain funding from BNC and personal benefits for themselves. AMS was in the business of originating residential real estate mortgage loans to borrowers and then selling the loans to institutional investors.

In 2006, AMS entered into a loan participation agreement with BNC whereby BNC provided funding for the loans issued by AMS. Powers and McMaster pleaded guilty to causing AMS to delay sending "pay down" emails, which would notify BNC when specific loans were sold. By delaying the sending of pay down emails, Powers and McMaster were able to use funds from newly-sold loans to make payments for earlier-sold loans and inflate the dollar amount in the pay down emails for the earlier-sold loans.

According to their plea documents, Powers and McMaster also caused false financial information about AMS to be sent to BNC, overstating AMS’s cash-on-hand and disguising delinquent tax payments being made to the Internal Revenue Service as marketing and advertising expenses. As part of their plea agreements, Powers and McMaster have agreed to forfeit $28,564,470, which includes proceeds from the fraud.

Horton was charged in a one count information for conspiring to provide fraudulent financial information to BNC. According to court documents, Horton inflated asset items and altered other financial information in the AMS balance sheet provided to BNC to falsely reflect that AMS had substantial liquid assets when, in fact, it did not. Horton also allegedly concealed payments that AMS was making to the IRS for a delinquency in unpaid payroll taxes by disguising them as marketing and advertising expenses.

Kaufman, a certified public accountant who audited the annual financial statements of AMS, was charged in a one count information for allegedly obstructing the grand jury investigation into the AMS fraud. According to court documents, Kaufman lied to federal agents during the criminal investigation and obstructed the grand jury investigation when he denied that he had a conversation with an AMS executive in which Kaufman explained to the AMS executive that he had combined two expenses in the financial statements in order to conceal the true nature and extent of AMS’s financial condition from BNC.

Although BNC’s holding company had received approximately $20 million under the TARP and had injected approximately $17 million of the TARP funds into BNC, BNC incurred losses exceeding the millions received from TARP. BNC then did not make its required TARP dividends to the Department of Treasury for nearly two years.

At sentencing, scheduled for April 15, 2013, Powers and McMaster face a maximum penalty of 30 years in prison.

The investigation was conducted by agents assigned to the Offices of the Inspector General of SIGTARP and of FHFA. The case is being prosecuted by Assistant U.S. Attorney Clare Hochhalter of the District of North Dakota and by Trial Attorney Robert A. Zink and Senior Litigation Counsel Jack B. Patrick of the Criminal Division’s Fraud Section with the assistance of Trial Attorney Jeannette Gunderson of the Criminal Division’s Asset Forfeiture and Money Laundering Section.

This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

The charges and allegations contained in the informations are merely accusations and the defendants are presumed innocent unless and until proven guilty.

To D or not to D

To D or not to D

TWO FORMER HOSPITAL EMPLOYEES SENTENCED TO SERVE TIME IN PRISON

FROM: U.S. DEPARTMENT OF JUSTICE

WASHINGTON — Two former high-ranking employees of facilities operations at New York Presbyterian Hospital (NYPH) were sentenced in U.S. District Court for the Southern District of New York, in Manhattan, by Judge George B. Daniels today for their participation in two separate conspiracies involving kickbacks, the Department of Justice announced today.

Santo Saglimbeni, a former vice president of facilities operations at NYPH, was sentenced to serve 48 months in prison and ordered to pay a $250,000 criminal fine. Emilio "Tony" Figueroa, a former director of facilities operations at NYPH, was sentenced to serve 36 months in prison and ordered to pay a $25,000 criminal fine. Saglimbeni and Figueroa were ordered to jointly and severally pay $603,982 in total restitution to NYPH. Judge Daniels also entered a preliminary order of forfeiture for $2.3 million, which included certain bank accounts into which the kickback money from one of the schemes was deposited, as well as a parcel of land purchased with a portion of the kickback money, in Southampton, N.Y.

"Today's sentences are consistent with the serious nature of the crimes for which the individuals were convicted," said Acting Assistant Attorney General Joseph Wayland in charge of the Department of Justice's Antitrust Division. "The division remains committed to holding accountable corrupt purchasing officials who undermine the competitive bidding process for their personal gain."

On Feb. 2, 2012, after a four-week trial, Saglimbeni and Figueroa, along with Michael Yaron and two companies owned by him—Cambridge Environmental & Construction Corp., doing business as National Environmental Associates (Cambridge/NEA), and Oxford Construction & Development Corp.; Moshe Buchnik, the president of an asbestos abatement company doing business at NYPH; and Artech Corp., a sham company Saglimbeni created in the name of his mother, were each convicted of conspiracy to defraud NYPH. Additionally, Yaron, Cambridge/NEA, Oxford, Buchnik, Saglimbeni and Artech were also convicted of a wire fraud violation.

According to evidence presented at trial, the scheme to defraud NYPH centered on Saglimbeni, who with the assistance of Figueroa, awarded asbestos abatement, air monitoring and general construction contracts to Yaron, Buchnik and their companies in return for more than $2.3 million in kickbacks paid to Saglimbeni. A portion of those kickbacks were funneled by Yaron to Saglimbeni through Artech.

On July 31, 2012, Saglimbeni and Figueroa each pleaded guilty to additional mail fraud conspiracy and mail fraud violations. These charges were part of the same indictment but had been severed and were scheduled for a separate trial. According to the superseding indictment, the fraud scheme also centered on Saglimbeni, who with the assistance of Figueroa, awarded heating, ventilation and air conditioning (HVAC) contracts to an HVAC vendor in return for kickbacks in the form of cash goods and services paid to Saglimbeni and Figueroa.

On July 10, 2012, Yaron, Buchnik and the three companies were sentenced for their respective roles in the scheme. Yaron was sentenced to serve 60 months in prison and ordered to pay a $500,000 criminal fine. Buchnik was sentenced to serve 48 months in prison and ordered to pay a $500,000 criminal fine. Yaron's companies, Cambridge/NEA and Oxford Construction, were each sentenced to pay a $1 million criminal fine. Artech was also sentenced to pay a $1 million criminal fine. Including Saglimbeni and Figueroa, 15 individuals and six companies have been convicted or pleaded guilty as a result of this investigation and have been sentenced to pay a total of more than $4 million in criminal fines and to serve more than 16 years in prison.

This antitrust investigation of bid rigging, fraud, bribery and tax-related offenses relating to the award of contracts by the facilities operations department of NYPH was conducted by the Antitrust Division's New York Field Office with the assistance of the FBI and the Internal Revenue Service - Criminal Investigation's New York Field Office. The Office of International Affairs in the Justice Department's Criminal Division also provided assistance.