FROM: U.S. DEPARTMENT OF DEFENSE
Army privates first class John Lopez and Kyle Lamb with the 108th Quartermaster Company, 530th Combat Sustainment Support Battalion, 82nd Sustainment Brigade, check the instrument panel of a fuel pump at the unit's motor pool on Fort Lee, Va., Nov. 1, 2012. The soldiers and their unit were preparing to make a trip to New York to support relief efforts in the wake of Hurricane Sandy. U.S. Army photo by Terrance Bell
Quartermaster Soldiers New York-bound to Aid Citizens
By Stephen Baker
U.S. Army Garrison Fort Lee
FORT LEE, Va., Nov. 2, 2012 - Soldiers from an Army unit based here are on their way to New York City today to help pump water from flooded areas in support of recovery operations in the wake of Hurricane Sandy.
Twenty-four men and women from the 108th Quartermaster Company were called to action Nov. 1, and mobilized immediately.
The soldiers spent the day preparing and loading gear and supplies, including a half-dozen 350-gallon-per-minute pumps, fuel, food, cots and other items needed to keep the equipment and troops operational.
Army 1st Lt. Melanie Wells, the soldiers' platoon leader for the deployment, said her unit is always ready for a humanitarian mission.
"They're ready to help their fellow man," Wells said of her soldiers. "They're ready to get up there and see what they can contribute to help people get back in their homes."
While the soldiers are scheduled to be deployed for one or two weeks, Wells said they are bringing enough supplies for up to two months of operations.
The 108th Quartermaster Company is organized under the 530th Combat Sustainment Support Battalion, 82nd Sustainment Brigade.
A PUBLICATION OF RANDOM U.S.GOVERNMENT PRESS RELEASES AND ARTICLES
Sunday, November 4, 2012
RECENT U.S. NAVY PHOTO
121103-N-OX587-004 ATLANTIC OCEAN (Nov. 3, 2012) The aircraft carrier USS Enterprise (CVN 65) underway in the Atlantic Ocean after completing a 7-and-a-half month deployment to support operations in the Mediterranean and Arabian seas. Enterprise is completing its final deployment to the U.S. 5th and 6th Fleet areas of responsibility in support of maritime security operations and theater security cooperation efforts. (U.S. Navy photo by Lt. Ryan de Vera/Released)
FEMA USES AIR GUARD BASE FOR HURRICANE SANDY RELIEF
FROM: U.S. FEDERAL EMERGENCY MANAGEMENT AGENCYStaff Sgt. Joshua Wishmyer signals to his brother Staff Sgt. John Wishmyer as he moves a pallet of boxed meals at the West Virginia Air National Guard's 167th Airlift Wing based in Martinsburg W.Va., Nov. 1, 2012. The 167th is serving as a staging area for disaster relief supplies which will then be transported throughout West Virginia as needed. The West Virginia National Guard has over 200 members aiding in recovery efforts from Hurricane Sandy. The storm blanketed the state with heavy snow and rains and also had severe winds that left homes and properties damaged. Guardsmen are involved in numerous aspects of the operations from search-and-rescue missions to debris removal. Air National Guard photo by Master Sgt. Emily Beightol-Deyerle
FEMA Employs Air Guard Base for Storm Relief
By Air Force Staff Sgt. Sherree Grebenstein
167th Airlift Wing, West Virginia Air National Guard
MARTINSBURG, Nov. 2, 2012 - The Federal Emergency Management Agency is using the West Virginia Air National Guard's 167th Airlift Wing base here as a staging area to push out much-needed storm relief supplies to Mountain State residents hit hardest by Hurricane Sandy.
Airmen and soldiers from the West Virginia National Guard are working in tandem to ensure the emergency supplies trucked in from around the country will be distributed to those in need. Operations spun up yesterday morning at the base with approximately three-and-a-half million liters of water and 600,000 self-heating emergency meals, as well as infant and toddler supplies slated to be delivered in the coming days.
"We will maintain 80 to 100 truckloads [of supplies] here at all times," said Joe D'Angelo, FEMA's Incident Management Assistance Team logistics chief for Region III.
D'Angelo said he expects the base to be used as a staging area through at least next week.
Two companies from the West Virginia Army National Guard's 77th Brigade are tasked with distributing the needed supplies to Mountain State residents. Citizen soldiers from the 1201st Forward Support Company and Delta 230th FSC will take to the roadways to drop off the supplies.
"We're going to turn them into ice truckers," said Army Master Sgt. Keith Bibb, property book officer for the 77th Brigade.
As of yesterday evening, the 120 citizen soldiers assigned to the mission were awaiting their first marching orders to begin distribution of the supplies.
"We're loaded, cocked and ready to go," Bibb said. "We are staged waiting for our mission."
FEMA Employs Air Guard Base for Storm Relief
By Air Force Staff Sgt. Sherree Grebenstein
167th Airlift Wing, West Virginia Air National Guard
MARTINSBURG, Nov. 2, 2012 - The Federal Emergency Management Agency is using the West Virginia Air National Guard's 167th Airlift Wing base here as a staging area to push out much-needed storm relief supplies to Mountain State residents hit hardest by Hurricane Sandy.
Airmen and soldiers from the West Virginia National Guard are working in tandem to ensure the emergency supplies trucked in from around the country will be distributed to those in need. Operations spun up yesterday morning at the base with approximately three-and-a-half million liters of water and 600,000 self-heating emergency meals, as well as infant and toddler supplies slated to be delivered in the coming days.
"We will maintain 80 to 100 truckloads [of supplies] here at all times," said Joe D'Angelo, FEMA's Incident Management Assistance Team logistics chief for Region III.
D'Angelo said he expects the base to be used as a staging area through at least next week.
Two companies from the West Virginia Army National Guard's 77th Brigade are tasked with distributing the needed supplies to Mountain State residents. Citizen soldiers from the 1201st Forward Support Company and Delta 230th FSC will take to the roadways to drop off the supplies.
"We're going to turn them into ice truckers," said Army Master Sgt. Keith Bibb, property book officer for the 77th Brigade.
As of yesterday evening, the 120 citizen soldiers assigned to the mission were awaiting their first marching orders to begin distribution of the supplies.
"We're loaded, cocked and ready to go," Bibb said. "We are staged waiting for our mission."
FEMA SAYS INDIVIDUALS RECEIVED OVER $100 MILLION IN ASSISTANCE FOR HURRICANE SANDY DISASTER
FROM: FEMASoldiers from the 249th Engineer Battalion walk past their pumps in Battery Park in lower Manhattan, New York City, Nov. 2, 2012. The pumps are draining an underpass flooded by Hurricane Sandy. DOD photo by EJ Hersom
Latest Updates from the FEMA Blog: FEMA’s Assistance to Individuals Over $100 Million
Release date:
November 3, 2012
Release Number:
HQ-12-135
As many people across the Northeast and Mid-Atlantic continue to recover from Hurricane Sandy, members of the entire emergency management team, including the federal, state, tribal, and local governments, the faith based and non-profit communities, and the public, are working tirelessly to support those across the impacted area. As of this morning, more than 122,000 people have registered for disaster assistance and more than $107 million in assistance has already been approved. Here’s a breakdown of disaster assistance by state:
New York: over 69,000 registered; more than $75 million in assistance approved
New Jersey: over 49,000 registered; more than $31 million in assistance approved
Connecticut: over 2,400 registered; more than $368,000 in assistance approved
These numbers continue to increase as residential power is being restored and those affected are able to register for assistance with FEMA online, as well as through the 800 number. If you’ve live in an eligible county and have been affected by Hurricane Sandy, we encourage you to apply for assistance by calling 1-800-621-FEMA (3362) TTY 1-800-462-7585 or if you have access to the internet, applying online at www.disasterassistance.gov.
Additionally, as many people have been without power for several days, fuel continues to be a top priority for FEMA. Under direction of President Obama, the Defense Logistics Agency (DLA) purchased up to 12 million gallons of unleaded fuel and up to 10 million gallons of diesel fuel for distribution in areas impacted by the storm to supplement ongoing private sector efforts. Tanker trucks have distributed fuel throughout New York, New Jersey and other communities impacted by the storm. There are currently 10 fuel sites throughout New York and New Jersey where residents can refuel their cars and get gas for generators and other necessities. We are committed to continuing our support in Hurricane Sandy response and recovery efforts.
To read more and to view photos highlighting our ongoing response and recovery efforts as we work to assist those residents affected by Hurricane Sandy, see today’s FEMA Blog.
Latest Updates from the FEMA Blog: FEMA’s Assistance to Individuals Over $100 Million
Release date:
November 3, 2012
Release Number:
HQ-12-135
As many people across the Northeast and Mid-Atlantic continue to recover from Hurricane Sandy, members of the entire emergency management team, including the federal, state, tribal, and local governments, the faith based and non-profit communities, and the public, are working tirelessly to support those across the impacted area. As of this morning, more than 122,000 people have registered for disaster assistance and more than $107 million in assistance has already been approved. Here’s a breakdown of disaster assistance by state:
New Jersey: over 49,000 registered; more than $31 million in assistance approved
Connecticut: over 2,400 registered; more than $368,000 in assistance approved
These numbers continue to increase as residential power is being restored and those affected are able to register for assistance with FEMA online, as well as through the 800 number. If you’ve live in an eligible county and have been affected by Hurricane Sandy, we encourage you to apply for assistance by calling 1-800-621-FEMA (3362) TTY 1-800-462-7585 or if you have access to the internet, applying online at www.disasterassistance.gov.
Additionally, as many people have been without power for several days, fuel continues to be a top priority for FEMA. Under direction of President Obama, the Defense Logistics Agency (DLA) purchased up to 12 million gallons of unleaded fuel and up to 10 million gallons of diesel fuel for distribution in areas impacted by the storm to supplement ongoing private sector efforts. Tanker trucks have distributed fuel throughout New York, New Jersey and other communities impacted by the storm. There are currently 10 fuel sites throughout New York and New Jersey where residents can refuel their cars and get gas for generators and other necessities. We are committed to continuing our support in Hurricane Sandy response and recovery efforts.
To read more and to view photos highlighting our ongoing response and recovery efforts as we work to assist those residents affected by Hurricane Sandy, see today’s FEMA Blog.
GRAVEYARD SCIENCE
Graveyards are excellent research sites; their soil lies undisturbed. Photo Credit: Wikimedia Commons.
October 31, 2012
Science on the Graveyard Shift
Discovering what gets buried and how
Into the graveyard
By dark of night in an old graveyard, things rustle. At least if that cemetery is at London Grove Friends Meeting in Kennett Square, Pa.
Look between the oldest markers, or under a gnarled oak tree that's been guarding the graveyard since the time of William Penn in 1682. You'll find not a ghost, but a scientist, probing the dirt for the secrets it might reveal.
"These soils have been undisturbed for centuries, if at all, and they hold the key to understanding how humans have altered the landscape," says geoscientist Anthony Aufdenkampe of the National Science Foundation's (NSF) Christina River Basin Critical Zone Observatory (CZO) on the border of Delaware and Pennsylvania.
To discover answers, Aufdenkampe, who is also affiliated with Pennsylvania's Stroud Water Research Center, is in graveyards taking samples at noon and at midnight. "We do a lot of storm-chasing to follow erosion," says Aufdenkampe, "so we're often out at the 'witching hour.'"
The Christina River Basin CZO is one of six NSF CZOs in watersheds across the nation.
In addition to the Christina River Basin site, CZOs are located in the Southern Sierra Nevada, Boulder Creek in the Colorado Rockies, Susquehanna Shale Hills in Pennsylvania, Luquillo riparian zone in Puerto Rico, and the Jemez River and Santa Catalina Mountains in New Mexico and Arizona.
They're providing us with a new understanding of the critical zone--the region between the top of the forest canopy and the base of unweathered rock: our living environment--and its response to climate and land use changes.
Marked by rotting soil
It all starts with bedrock and with rotting soil.
To scientists, this putrid rock, as the Greeks called it, is known as saprolite. It's the first stage of the continuous transformation of rock to fertile soils, says Aufdenkampe, and needs thousands to millions of years of mixing by water, plants, microbes, worms and other organisms.
But its journey doesn't end there.
For centuries, researchers thought that these building blocks of life stayed close to home--that the molecules in a falling leaf didn't travel far before meeting their ultimate fates. They returned to the atmosphere as greenhouse gas, or became incorporated into the soil.
Now scientists at the Christina River Basin CZO believe otherwise.
They're testing the idea that erosion and mixing of soil minerals with carbon in fresh plant remains--and subsequent burial downslope or downstream--is the key to what happens to the carbon, and to the greenhouse gases it forms.
Aufdenkampe and colleagues published results of a study comparing carbon transport in watersheds such as the Christina River Basin and others around the world in the February 2011, issue of the journal Frontiers in Ecology and the Environment.
"Society has long recognized the importance of water, soil, vegetation and land forms to human welfare, but only recently have we begun to holistically probe the workings of these coupled systems in projects like the CZOs," says Wendy Harrison, director of NSF's Division of Earth Sciences, which funds the CZO network.
"This new way of doing science will allow us to predict how an entire watershed will respond to land use and climate change."
Scientists once believed that they could understand whether a forest or a field was storing greenhouse gases by studying small research plots alone.
"Now we know that we need to look carefully at all the forms of carbon that leave a plot and flow downhill and downstream," says Aufdenkampe. "We need to follow the carbon and the soil from saprolite to the sea."
Twists and turns of the Christina River
Sippunk, Tasswaijres, Minquess Kill. The Christina River has been known by these names and many others.
It's a tributary of the Delaware River; its 35 miles flow through southeastern Pennsylvania, northeastern Maryland, and into Delaware. From Franklin Township in Pennsylvania to Wilmington, Delaware, the Christina River and its tributaries drain an area of 565 square miles.
Its streams supply 100 million gallons of water each day for more than half a million people in three states.
The first European settlements in Delaware sprang up near the confluence of the Christina and Delaware rivers. Trees lining the banks of the rivers, and across the land, were felled. In their place came farms and factories.
How has the region's human history affected rivers and streams that now course through forests and farms, suburbs and cities? And how has this centuries-old legacy changed the carbon cycle in the Christina River Basin watershed?
To find out, Aufdenkampe picks up a shovel. As he digs through fallen leaves and several feet of dirt on a streambank flanked by gravestones, stripes of soil begin to emerge.
In their center is something dark and moist. Perfectly preserved, it's a part of the bank buried hundreds of years ago by erosion caused by colonial forefathers.
Scientists at the Christina River CZO hope to discover how this sediment--and that above and below it--was deposited, and where waterways may carry it next, if anywhere.
"How are humans affecting the carbon cycle in a watershed like the Christina River Basin?" asks Aufdenkampe. "How far afield does what happens here go? Does it reach the Delaware, the Atlantic or beyond?"
Research at the CZO takes a "whole watershed" approach to discovering where carbon and other elements end up.
"They usually have one of three fates," Aufdenkampe says, "a return to the skies as a greenhouse gas, incorporation into the tissues of a living organism, or burial in soils and sediments."
From dust to dust
Where do scientists look for clues to those ultimate fates? They dig into soils and scour waterways, with a stop along the way near a local cemetery or two.
"Soils under ancient trees and in old cemeteries provide a geochemical reference that we can use to estimate human-caused erosion elsewhere on the landscape," says Aufdenkampe.
People inevitably leave their mark on the land, he says. But will the carbon buried by 400 years of human activities give up the ghost and move on, or will it rest in peace?
"In the future," Aufdenkampe asks, "will what's in the soil return to haunt us all?"
Cheryl Dybas, NSF (703) 292-7734 cdybas@nsf.gov
SENSITIVE CONSUMER INFORMATION ALLEGEDLY THROWN INTO DUMPSTERS BY PAYDAY LENDER
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, November 1, 2012
Company to Pay $101,500 Civil Penalty for Dumping Sensitive Consumer Documents in Publicly-Accessible Dumpsters
A company that operates payday loan and check cashing stores in at least nine states has settled with the government over allegations that it violated federal regulations, the Justice Department announced today. In April 2010, law enforcement officers retrieved boxes of intact consumer documents, including credit reports, from trash cans and dumpsters near four PLS Financial Services stores in the Chicago area. The improper disposal of these documents led to an investigation by the Federal Trade Commission (FTC).
A complaint filed by the Department of Justice on behalf of the FTC, naming PLS Financial Services, PLS Group and The Payday Loan Store of Illinois as defendants, alleged that the companies violated the Federal Trade Commission Act, and the Disposal Rule, the Safeguards Rule and the Privacy Rule by improperly disposing of sensitive financial documents, failing to develop reasonable safeguards to protect sensitive consumer information, failing to provide privacy notices to consumers and misleading consumers about its privacy policies.
Judge Joan Gottschall of the U.S. District Court for the Northern District of Illinois today entered a stipulated final judgment, which requires the defendants to pay a civil penalty of $101,500 for its violations of the Disposal Rule. The Disposal Rule requires that any person who possesses consumer information derived from consumer reports for a business purpose must take reasonable measures to protect against unauthorized access or use of that information. Violations of the Disposal Rule can result in a civil penalty of up to $3,500 per violation. The stipulated final judgment also includes a permanent injunction prohibiting the defendants from misrepresenting their security and privacy policies and from violating the Disposal, Safeguards and Privacy Rules. In addition, the proposed order requires the defendants to maintain a comprehensive information security program that meets the standards of the Safeguards Rule, and to obtain third-party biennial assessments of their information security procedures for a twenty-year period.
"Companies that handle sensitive consumer documents have a duty to keep that information secure and to dispose of it properly," said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. "Improper disposal of these documents can lead to dire consequences for consumers, including identity theft and other crimes. The Department of Justice will continue to support the FTC’s efforts to enforce federal regulations that protect consumer financial information."
Acting Assistant Attorney General Delery thanked the FTC for referring this matter to the Department. The Consumer Protection Branch of the Justice Department’s Civil Division brought the case on behalf of the United States.
Thursday, November 1, 2012
Company to Pay $101,500 Civil Penalty for Dumping Sensitive Consumer Documents in Publicly-Accessible Dumpsters
A company that operates payday loan and check cashing stores in at least nine states has settled with the government over allegations that it violated federal regulations, the Justice Department announced today. In April 2010, law enforcement officers retrieved boxes of intact consumer documents, including credit reports, from trash cans and dumpsters near four PLS Financial Services stores in the Chicago area. The improper disposal of these documents led to an investigation by the Federal Trade Commission (FTC).
A complaint filed by the Department of Justice on behalf of the FTC, naming PLS Financial Services, PLS Group and The Payday Loan Store of Illinois as defendants, alleged that the companies violated the Federal Trade Commission Act, and the Disposal Rule, the Safeguards Rule and the Privacy Rule by improperly disposing of sensitive financial documents, failing to develop reasonable safeguards to protect sensitive consumer information, failing to provide privacy notices to consumers and misleading consumers about its privacy policies.
Judge Joan Gottschall of the U.S. District Court for the Northern District of Illinois today entered a stipulated final judgment, which requires the defendants to pay a civil penalty of $101,500 for its violations of the Disposal Rule. The Disposal Rule requires that any person who possesses consumer information derived from consumer reports for a business purpose must take reasonable measures to protect against unauthorized access or use of that information. Violations of the Disposal Rule can result in a civil penalty of up to $3,500 per violation. The stipulated final judgment also includes a permanent injunction prohibiting the defendants from misrepresenting their security and privacy policies and from violating the Disposal, Safeguards and Privacy Rules. In addition, the proposed order requires the defendants to maintain a comprehensive information security program that meets the standards of the Safeguards Rule, and to obtain third-party biennial assessments of their information security procedures for a twenty-year period.
"Companies that handle sensitive consumer documents have a duty to keep that information secure and to dispose of it properly," said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. "Improper disposal of these documents can lead to dire consequences for consumers, including identity theft and other crimes. The Department of Justice will continue to support the FTC’s efforts to enforce federal regulations that protect consumer financial information."
Acting Assistant Attorney General Delery thanked the FTC for referring this matter to the Department. The Consumer Protection Branch of the Justice Department’s Civil Division brought the case on behalf of the United States.
$30 MILLION PAID TO SETTLE FALSE CLAIMS ACT ALLEGATIONS BY MEDICAL COMPANY
Photo From U.S. Department Of Defense. |
Friday, November 2, 2012
Orthofix Subsidiary, Blackstone Medical, Pays U.S. $30 Million to Settle False Claims Act Allegations
Allegedly Paid Kickbacks to Doctors to Induce Use of Company’s Products
Orthofix International NV, has agreed to pay the United States $30 million to settle allegations that an Orthofix subsidiary, Blackstone Medical Inc., paid illegal kickbacks to physicians in order to induce use of the company’s products, the Justice Department announced today. Orthofix, which manufactures spinal implants and other spinal surgery products, is a publicly traded company headquartered in Curacao.
The civil settlement resolves allegations that Blackstone paid kickbacks to spinal surgeons. These alleged kickbacks took a number of forms, including sham consulting agreements, sham royalty arrangements, sham research grants, travel and entertainment.
"Kickbacks to physicians are incompatible with a properly functioning health care system," said Stuart F. Delery, the Acting Assistant Attorney General for the Department’s Civil Division. "They can corrupt physicians’ medical judgment and cause misallocation of vital health care resources. Today’s settlement reflects the progress we are making in the ongoing fight against abusive and illegal practices in the healthcare industry."
"This settlement demonstrates the government’s continued resolve to ensure that patients receive, and the government pays for, health care that is based solely on sound medical judgment, not compromised by kickbacks," said Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts. "We believe that this is a just and meaningful resolution that is in the best interests of the citizens of the Commonwealth and taxpayers across the nation."
"To those contemplating taking advantage of Medicare for their own gain, today’s settlement sends a loud, clear message," said Susan Waddell, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General New England region. "Law enforcement will work aggressively to eliminate efforts to abuse vital taxpayer-funded health care programs."
"Our men and women in uniform and their beneficiaries rely on their healthcare providers to perform their jobs without bias and make decisions in the best interest of their patients," said Kathryn Feeney, Resident Agent in Charge for the Defense Criminal Investigative Service, New Haven Resident Agency. "Kickbacks, like those alleged here, undermine the TRICARE Military Health System . A settlement like this helps maintain the integrity of an important program our armed services depend on."
"Blackstone Medical, Inc. now knows the FBI and our law enforcement partners are committed to investigating and uncovering healthcare fraud in all its forms, particularly schemes like the kickbacks Blackstone perpetrated to obtain profits at the expense of taxpayers," said Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division.
As part of the settlement, Orthofix also agreed to enter into a corporate integrity agreement with the Office of Inspector General of the Department of Health and Human Services, which provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that alleged in this matter.
The allegations resolved by today’s settlement were initially alleged in a whistleblower suit filed under the False Claims Act, which authorizes private citizens to bring suit on behalf of the government for false claims for government funds, and share in any recovery. The whistleblower in this case, Susan Hutcheson, will receive $8 million as her share of the settlement amount.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $9.5 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $13.2 billion.
The case was handled by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Massachusetts, Office of Inspector General of the Department of Health and Human Services, the FBI and the Defense Criminal Investigative Service of the Department of Defense. The claims settled by this agreement are allegations only, and there has been no determination of liability.
PRESIDENT OBAMA STAYS INFORMED ON HURRICANE SANDY
FROM: FEDERAL EMERGENCY MANAGEMENT AGENCY
Obama Gets Storm Relief Update at FEMA Headquarters
American Forces Press Service
WASHINGTON, Nov. 3, 2012 - President Barack Obama today convened a briefing at the National Response Coordination Center at the Federal Emergency Management Agency headquarters here to receive the latest update on federal efforts to support state and local response and recovery activities for Hurricane Sandy, according to a White House news release.
At FEMA headquarters, the release said, Obama was joined by Secretary of Homeland Security Janet Napolitano, FEMA Administrator William Craig Fugate, Defense Secretary Leon E. Panetta, Energy Secretary Dr. Steven Chu, Health and Human Services Secretary Kathleen Sebelius, Housing and Urban Development Secretary Shaun Donovan, Education Secretary Arne Duncan, Treasury Secretary Timothy Geithner, Small Business Administration Administrator Karen Mills, Vice Chairman of the Joint Chiefs of Staff Navy Adm. James A. Winnefeld Jr., Deputy Chief of Staff Alyssa Mastromonaco, Deputy Assistant to the President for Homeland Security Richard Reed, and other senior officials.
Secretary of Transportation Raymond H. LaHood, Secretary of Agriculture Tom Vilsack and U.S. Northern Command commander Army Gen. Charles H. Jacoby Jr. joined the briefing by phone, according to the release.
On the call Obama received an update from the National Weather Service, including a forecast on a coastal low pressure system that could be moving into the area in coming days, and spoke directly with a number of state and local officials, who also joined by phone, including Connecticut Gov. Dannel Malloy, New Jersey Gov. Chris Christie, and New York Gov. Andrew Cuomo, as well as New York City borough presidents and mayors from across the affected area.
This conversation provided the president and his team another opportunity to discuss specific challenges with state and local leaders, including issues related to power generation, fuel challenges, and long-term housing needs among others, the release said.
Obama made clear that all available resources would be employed to support the deployment of necessary assets, and directed his team to continue to focus on identifying and removing any barriers to the movement of these resources, according to the release. On Nov. 1, following a conversation between the president and utility executives, the Department of Defense airlifted utility resources, including bucket trucks and other assets, from California to New York to support power restoration efforts.
FEMA announced Nov. 2 that the president directed the Defense Logistics Agency to purchase up to 12 million gallons of unleaded fuel and up to 10 million gallons of diesel fuel for distribution in areas impacted by the storm to supplement ongoing private sector efforts, the release said. This purchase will be transported by tanker trucks and distributed throughout New York, New Jersey and other communities impacted by the storm. This announcement, the release said, followed a decision earlier in the day to provide a temporary blanket waiver to the Jones Act, to ensure tankers could move oil and refined gas to the New York area as quickly as possible.
On today's call, following a discussion of additional resources available to individuals impacted by the storm, the president also directed SBA Administrator Karen Mills to brief local officials directly on the low-cost loans available through the FEMA Disaster Declarations provided to eligible families, according to the release.
The President thanked the state and local officials on the call for their hard work, and specifically praised the heroic efforts of the first responders still on the front lines, and told his team that continuing to surge all available resources was his top priority, the release said. The President closed by making clear he expected no letup in these efforts.
FROM: FEDERAL EMERGENCY MANAGEMENT AGENCY
Obama Gets Storm Relief Update at FEMA Headquarters
American Forces Press Service
WASHINGTON, Nov. 3, 2012 - President Barack Obama today convened a briefing at the National Response Coordination Center at the Federal Emergency Management Agency headquarters here to receive the latest update on federal efforts to support state and local response and recovery activities for Hurricane Sandy, according to a White House news release.
At FEMA headquarters, the release said, Obama was joined by Secretary of Homeland Security Janet Napolitano, FEMA Administrator William Craig Fugate, Defense Secretary Leon E. Panetta, Energy Secretary Dr. Steven Chu, Health and Human Services Secretary Kathleen Sebelius, Housing and Urban Development Secretary Shaun Donovan, Education Secretary Arne Duncan, Treasury Secretary Timothy Geithner, Small Business Administration Administrator Karen Mills, Vice Chairman of the Joint Chiefs of Staff Navy Adm. James A. Winnefeld Jr., Deputy Chief of Staff Alyssa Mastromonaco, Deputy Assistant to the President for Homeland Security Richard Reed, and other senior officials.
Secretary of Transportation Raymond H. LaHood, Secretary of Agriculture Tom Vilsack and U.S. Northern Command commander Army Gen. Charles H. Jacoby Jr. joined the briefing by phone, according to the release.
On the call Obama received an update from the National Weather Service, including a forecast on a coastal low pressure system that could be moving into the area in coming days, and spoke directly with a number of state and local officials, who also joined by phone, including Connecticut Gov. Dannel Malloy, New Jersey Gov. Chris Christie, and New York Gov. Andrew Cuomo, as well as New York City borough presidents and mayors from across the affected area.
This conversation provided the president and his team another opportunity to discuss specific challenges with state and local leaders, including issues related to power generation, fuel challenges, and long-term housing needs among others, the release said.
Obama made clear that all available resources would be employed to support the deployment of necessary assets, and directed his team to continue to focus on identifying and removing any barriers to the movement of these resources, according to the release. On Nov. 1, following a conversation between the president and utility executives, the Department of Defense airlifted utility resources, including bucket trucks and other assets, from California to New York to support power restoration efforts.
FEMA announced Nov. 2 that the president directed the Defense Logistics Agency to purchase up to 12 million gallons of unleaded fuel and up to 10 million gallons of diesel fuel for distribution in areas impacted by the storm to supplement ongoing private sector efforts, the release said. This purchase will be transported by tanker trucks and distributed throughout New York, New Jersey and other communities impacted by the storm. This announcement, the release said, followed a decision earlier in the day to provide a temporary blanket waiver to the Jones Act, to ensure tankers could move oil and refined gas to the New York area as quickly as possible.
On today's call, following a discussion of additional resources available to individuals impacted by the storm, the president also directed SBA Administrator Karen Mills to brief local officials directly on the low-cost loans available through the FEMA Disaster Declarations provided to eligible families, according to the release.
The President thanked the state and local officials on the call for their hard work, and specifically praised the heroic efforts of the first responders still on the front lines, and told his team that continuing to surge all available resources was his top priority, the release said. The President closed by making clear he expected no letup in these efforts.
Saturday, November 3, 2012
U.S. SECRETARY OF STATE CLINTON CONDEMNS MURDER OF OFFICER IN NORTHERN IRELAND
Map of Ireland Showing Northern Ireland. Credit: CIA World Factbook. |
Murder of Northern Ireland Prison Service Officer
Press Statement
Hillary Rodham Clinton
Secretary of State
Washington, DC
November 2, 2012
We strongly condemn yesterday’s senseless murder of David Black, an officer in the Northern Ireland Prison Service, and applaud the swift efforts of the Police Service of Northern Ireland to bring the perpetrators to justice. There is no justification for this outrageous and cowardly act. I offer my sincere condolences to the family, friends and colleagues of Officer Black, who had a long and distinguished record of service. The United States remains resolute in support of the people of Northern Ireland, who have condemned violence and embraced the path to peace and reconciliation.
NASA VIDEO: EXPLORATION OF THE EARLY UNIVERSE
NASA's Fermi Explores the Early Universe
This animation tracks several gamma rays through space and time, from their emission in the jet of a distant blazar to their arrival in Fermi's Large Area Telescope (LAT). During their journey, the number of randomly moving ultraviolet and optical photons (blue) increases as more and more stars are born in the universe. Eventually, one of the gamma rays encounters a photon of starlight and the gamma ray transforms into an electron and a positron. The remaining gamma-ray photons arrive at Fermi, interact with tungsten plates in the LAT, and produce the electrons and positrons whose paths through the detector allows astronomers to backtrack the gamma rays to their source.
Credit: NASA's Goddard Space Flight Center/Cruz ...
U.S. SANCTIONS AGAINST SUDAN RENEWED
Credit: CIA World Factbook |
Renewal of Sudan National Emergency
Media Note
Office of the Spokesperson
Washington, DC
November 2, 2012
Yesterday the President renewed the national emergency in Executive Order 13067, on the basis of which the United States has imposed economic sanctions with respect to Sudan since 1997. U.S. law requires that a decision be made regarding the renewal of the national emergency each year by the anniversary of the national emergency.
In recent years, Sudan has made progress in resolving a number of outstanding issues with South Sudan, which contributes significantly to the prospects for peace between the two countries. However, the ongoing conflict in Southern Kordofan, Blue Nile, and Darfur continue to threaten regional stability, and the human rights and humanitarian crises there – including the lack of humanitarian access – are very serious. Outstanding issues with South Sudan, such as the final status of Abyei, also pose such a threat. Addressing these concerns is necessary for a peaceful Sudan and would enable the United States and Sudan to move towards a normalized relationship.
We will continue our dialogue with the Government of Sudan on the steps that are necessary to improve our bilateral relationship.
Locator Map Credit: CIA World Factbook |
ADDITIONAL INFORMATION FROM CIA WORLD FACTBOOK
Military regimes favoring Islamic-oriented governments have dominated national politics since independence from the UK in 1956. Sudan was embroiled in two prolonged civil wars during most of the remainder of the 20th century. These conflicts were rooted in northern economic, political, and social domination of largely non-Muslim, non-Arab southern Sudanese. The first civil war ended in 1972 but broke out again in 1983. The second war and famine-related effects resulted in more than four million people displaced and, according to rebel estimates, more than two million deaths over a period of two decades. Peace talks gained momentum in 2002-04 with the signing of several accords. The final North/South Comprehensive Peace Agreement (CPA), signed in January 2005, granted the southern rebels autonomy for six years followed by a referendum on independence for Southern Sudan. The referendum was held in January 2011 and indicated overwhelming support for independence. South Sudan became independent on 9 July 2011. Since southern independence Sudan has been combating rebels from the Sudan People's Liberation Movement-North (SPLM-N) in Southern Kordofan and Blue Nile states. A separate conflict, which broke out in the western region of Darfur in 2003, has displaced nearly two million people and caused an estimated 200,000 to 400,000 deaths. The UN took command of the Darfur peacekeeping operation from the African Union in December 2007. Peacekeeping troops have struggled to stabilize the situation, which has become increasingly regional in scope and has brought instability to eastern Chad. Sudan also has faced large refugee influxes from neighboring countries primarily Ethiopia and Chad. Armed conflict, poor transport infrastructure, and lack of government support have chronically obstructed the provision of humanitarian assistance to affected populations.
RECENT FEMA PHOTOS
FROM: FEMA
Staten Island, N.Y., Nov. 3, 2012 -- Tanker trucks distribute fuel to residents in New York who were affected by Hurricane Sandy. The Defense Logistics Agency (DLA) purchased up to 12 million gallons of unleaded fuel and up to 10 million gallons of diesel fuel for distribution in areas impacted by the storm to supplement ongoing private sector efforts. Photo By Walt Jennings-FEMA
Cape May, N.J., Nov. 2, 2012 -- Houses in Reeds Beach suffered severe damage during Hurricane Sandy. FEMA is working with many partners and organizations to assist residents affected by Hurricane Sandy. Photo by Liz Roll/FEMA
EPA APPROVES ADDITIONAL FUEL WAIVERS IN THREE STATES AFFECTED BY SANDY
FROM: U.S. ENVIRONMENTAL PROTETION AGENCY
Air Force Lt. Col. David G. Rabel directs a semitruck on Yeager Air National Guard Base in Charleston, W. Va., Nov. 1, 2012. Rabel, the logistics readiness squadron commander for the130th Airlift Wing, is assigned to the West Virginia Air National Guard, which is assisting with Hurricane Sandy recovery efforts. U.S. Air Force photo by Tech. Sgt. Bryan G. Stevens
EPA Approves Additional Fuel Waivers for New Jersey, Pennsylvania, and New York
WASHINGTON – The U.S. Environmental Protection Agency (EPA) has exercised its authority under the Clean Air Act to temporarily waive federal clean diesel fuel requirements in New Jersey, Pennsylvania, and in and around New York City to allow the use of home heating oil in highway vehicles, nonroad vehicles, and nonroad equipment designated by the States of New Jersey, Pennsylvania and New York for emergency response. These waivers were granted by EPA in coordination with the Department of Energy (DOE).
EPA Administrator Lisa P. Jackson determined that, as a result of effects of Hurricane Sandy, extreme and unusual supply circumstances exist, which may result in a temporary shortage of diesel fuel compliant with federal regulations. The federal waivers will help ensure an adequate supply of fuel for emergency response in the impacted areas of New Jersey, New York City, and Pennsylvania.
These waivers temporarily allow the use of heating oil in highway vehicles, nonroad vehicles, and nonroad equipment types involved in disaster recovery efforts designated by the States of New Jersey, Pennsylvania, and New York, if ultra low-sulfur diesel fuel is not available. These waivers will not apply to a subset of newer products that could be damaged by the high sulfur fuel.
Air Force Lt. Col. David G. Rabel directs a semitruck on Yeager Air National Guard Base in Charleston, W. Va., Nov. 1, 2012. Rabel, the logistics readiness squadron commander for the130th Airlift Wing, is assigned to the West Virginia Air National Guard, which is assisting with Hurricane Sandy recovery efforts. U.S. Air Force photo by Tech. Sgt. Bryan G. Stevens
EPA Approves Additional Fuel Waivers for New Jersey, Pennsylvania, and New York
WASHINGTON – The U.S. Environmental Protection Agency (EPA) has exercised its authority under the Clean Air Act to temporarily waive federal clean diesel fuel requirements in New Jersey, Pennsylvania, and in and around New York City to allow the use of home heating oil in highway vehicles, nonroad vehicles, and nonroad equipment designated by the States of New Jersey, Pennsylvania and New York for emergency response. These waivers were granted by EPA in coordination with the Department of Energy (DOE).
EPA Administrator Lisa P. Jackson determined that, as a result of effects of Hurricane Sandy, extreme and unusual supply circumstances exist, which may result in a temporary shortage of diesel fuel compliant with federal regulations. The federal waivers will help ensure an adequate supply of fuel for emergency response in the impacted areas of New Jersey, New York City, and Pennsylvania.
These waivers temporarily allow the use of heating oil in highway vehicles, nonroad vehicles, and nonroad equipment types involved in disaster recovery efforts designated by the States of New Jersey, Pennsylvania, and New York, if ultra low-sulfur diesel fuel is not available. These waivers will not apply to a subset of newer products that could be damaged by the high sulfur fuel.
RECENT WHITE HOUSE PHOTOS
FROM: THE WHITE HOUSE
Seen through a wire screen, President Barack Obama conducts a conference call to update New York Gov. Andrew Cuomo and other New York officials on the ongoing federal government response to Hurricane Sandy, Nov. 1, 2012. The President made the call backstage at the University of Colorado in Boulder. (Official White House Photo by Pete Souza)
President Barack Obama and New Jersey Gov. Chris Christie look at storm damage along the coast of New Jersey on Marine One, Oct. 31, 2012. (Official White House Photo by Pete Souza)
INFRASTRUCTURE CHALLENGES FACE AFGHAN SECURITY FORCES REPORT SAYS
FROM: U.S. DEPARTMENT OF DEFENSE
Chris Geurtsen, a field program officer for the U.S. Agency for International Development, left, and U.S. Navy Lt. j.g. Matthew Stroup, public affairs officer for Provincial Reconstruction Team Farah, tour facilities with Farah Director of Information and Culture Farid Ahmad Ayubi, far right, during a key leader engagment at the director's office in Farah City, Afghanistan, Oct. 30, 2012. U.S. Navy photo by Lt. Benjamin Addison
Report: Afghan Security Forces Face Infrastructure Challenges
By Jim Garamone
American Forces Press Service
WASHINGTON, Nov. 1, 2012 - The Afghan government will have a tough time maintaining and operating the infrastructure for its national security forces once international forces leave, according to a report issued by the Special Inspector General for Afghanistan Reconstruction yesterday.
Defense Department officials are aware of these concerns and welcome the report, Pentagon Press Secretary George Little said today.
"There are problems that do come up and obstacles," he said. "But our commitment to the strategy remains sound. I think we've been very clear-eyed in our public statements about the fact that, while we're making progress, challenges remain."
The inspector general report echoes what defense leaders have been saying for years -- that the Afghan military will need assistance with maintenance and logistics.
"The Afghan government's challenges in assuming [operations and maintenance] responsibilities include a lack of sufficient numbers and quality of personnel, as well as undeveloped budgeting, procurement and logistics systems," according to the report.
Recruiting educated personnel to fill technical positions is a challenge for the Afghan military, which lacks personnel with the technical skills required to operate and maintain critical facilities, such as water supply, waste water treatment and power generation, the report said.
DOD leaders understand that there will be continuing challenges in Afghanistan, Little said, even as the process moves toward the transition to full Afghan-led responsibility at the end of 2014.
"Reports such as this are helpful in identifying some of the issues we continue to confront, and we certainly take their concerns on board," he said.
There will undoubtedly be problems developing these capabilities in the Afghan military, Little said.
"But, overall we think the process is going very well," he said. "[Afghan military] capabilities are growing steadily. They are taking more and more leadership on missions and operations. It's not going to be a perfect process, but it is certainly on the right trajectory."
Chris Geurtsen, a field program officer for the U.S. Agency for International Development, left, and U.S. Navy Lt. j.g. Matthew Stroup, public affairs officer for Provincial Reconstruction Team Farah, tour facilities with Farah Director of Information and Culture Farid Ahmad Ayubi, far right, during a key leader engagment at the director's office in Farah City, Afghanistan, Oct. 30, 2012. U.S. Navy photo by Lt. Benjamin Addison
Report: Afghan Security Forces Face Infrastructure Challenges
By Jim Garamone
American Forces Press Service
WASHINGTON, Nov. 1, 2012 - The Afghan government will have a tough time maintaining and operating the infrastructure for its national security forces once international forces leave, according to a report issued by the Special Inspector General for Afghanistan Reconstruction yesterday.
Defense Department officials are aware of these concerns and welcome the report, Pentagon Press Secretary George Little said today.
"There are problems that do come up and obstacles," he said. "But our commitment to the strategy remains sound. I think we've been very clear-eyed in our public statements about the fact that, while we're making progress, challenges remain."
The inspector general report echoes what defense leaders have been saying for years -- that the Afghan military will need assistance with maintenance and logistics.
"The Afghan government's challenges in assuming [operations and maintenance] responsibilities include a lack of sufficient numbers and quality of personnel, as well as undeveloped budgeting, procurement and logistics systems," according to the report.
Recruiting educated personnel to fill technical positions is a challenge for the Afghan military, which lacks personnel with the technical skills required to operate and maintain critical facilities, such as water supply, waste water treatment and power generation, the report said.
DOD leaders understand that there will be continuing challenges in Afghanistan, Little said, even as the process moves toward the transition to full Afghan-led responsibility at the end of 2014.
"Reports such as this are helpful in identifying some of the issues we continue to confront, and we certainly take their concerns on board," he said.
There will undoubtedly be problems developing these capabilities in the Afghan military, Little said.
"But, overall we think the process is going very well," he said. "[Afghan military] capabilities are growing steadily. They are taking more and more leadership on missions and operations. It's not going to be a perfect process, but it is certainly on the right trajectory."
MAN AND HIS COMPANY TO PAY OVER $3 MILLION FOR ROLE IN FOREX COMMODITY POOL FRAUD SCHEME
Media Credit: CFTC Website. |
Federal Court in Idaho Orders Brad Lee Demuzio and Demuzio Capital Management, LLC, to Pay over $3 Million in Connection with CFTC Commodity Pool Forex Fraud Action
In related criminal action, Demuzio pleaded guilty to one count of wire fraud, sentencing set for November 5
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge B. Lynn Winmill of the U.S. District Court for the District of Idaho entered a consent order for permanent injunction against defendant Brad L. Demuzio and an order of default judgment against his company, Demuzio Capital Management, LLC (DCM), both of Chubbuck, Idaho, charged by the CFTC with operating a fraudulent $1.8 million commodity pool and foreign currency (forex) Ponzi scheme (see CFTC Press Release 6229-12, April 12, 2012).
The consent order and order of default judgment (final orders) impose a permanent injunction against Demuzio and DCM, respectively, finding that the defendants violated the anti-fraud provisions of the Commodity Exchange Act and failed to register with the CFTC as Commodity Pool Operators (CPOs). In addition to the permanent injunction, the final orders each impose permanent trading and registration bans against Demuzio and DCM and order them to jointly pay restitution of $805,273. In addition, under terms of the final orders Demuzio is required to jointly pay a $1 million civil monetary penalty, and DCM is ordered to jointly pay a civil monetary penalty of $2,415,819.
The final orders find that from at least June 18, 2008 through November 2011, Demuzio, through DCM, solicited and accepted approximately $1.8 million from at least 16 investors to trade forex through a pooled investment vehicle. The final orders find that the defendants misappropriated investor funds to pay Demuzio’s personal expenses and sent emails to investors that falsely represented that their principal remained intact and was earning profits. The final orders also find that the defendants acted as a CPO without being registered as such.
In a related criminal proceeding based on substantially the same facts, Demuzio pleaded guilty in the U.S. District Court for the District of Idaho to one count of wire fraud. Sentencing is scheduled for November 5, 2012.
The CFTC appreciates the assistance of the U.S. Attorney’s Office for the District of Idaho and the Federal Bureau of Investigation.
CFTC Division of Enforcement staff members responsible for this action are Lara Turcik, Christopher Giglio, Manal M. Sultan, Lenel Hickson, Jr., Stephen J. Obie, and Vincent A. McGonagle.
U.S. DOJ SEEKS TO SHUT DOWN TAX PREPARTION FRANCHISE FIRM
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, November 1, 2012
Federal Court in Ohio Issues Preliminary Injunction Against Instant Tax Service Franchiser and Its CEO
Trial on Government Request to Permanently Shut Down Firm Is Scheduled for May 2013
A federal court has preliminarily enjoined ITS Financial LLC, the parent company that owns the Instant Tax Service tax-preparation franchise operation, the Justice Department announced today. Dayton, Ohio-based ITS claims to be the fourth-largest tax-preparation firm in the nation, according to the government complaint in the civil lawsuit. Judge Timothy Black of the U.S. District Court for the Southern District of Ohio signed the order, which also applies to the company’s CEO, Fesum Ogbazion. The defendants consented to the preliminary injunction.
The preliminary injunction will remain in force pending the court’s decision following trial in the case. Trial on the government’s suit seeking to shut down the defendants with a permanent injunction is scheduled to begin on May 20, 2013, in Dayton.
According to the government complaint in the case, ITS franchisees routinely prepare and file fraudulent federal tax returns, fabricate deductions and invent phony businesses. The suit further alleges that ITS franchisees file tax returns without customer authorization and without proper employer-issued W-2 wage statements, and charge customers exorbitant and bogus fees. Defendants and their franchisees allegedly lure mostly low-income customers into ITS stores by offering deceptive and misleading loans such as "Instant Cash" or "Holiday" loans, often before the tax return filing season begins. Defendants have denied the allegations in the complaint.
Under the terms of the preliminary injunction, defendants are barred from encouraging or preparing false or fraudulent tax returns, from filing tax returns without customer authorization, from charging customers exorbitant and bogus fees, from deceiving their customers and the government, and from otherwise violating the tax laws. In addition, defendants are barred from offering any Instant Cash loan or similar loan product that relies on a customer’s paystub (rather than an employer-issued IRS W-2 year-end wage statement), and from offering any loan product that violates any federal or state law. Defendants may offer only genuine loan products provided by independent, third-party lenders. The preliminary injunction also requires defendants, at their own expense, to hire third-party monitors who will review and audit tax returns prepared by all ITS franchisees. In addition, defendants must hire a neutral company to conduct "secret shopper" visits to ITS franchisees to test their compliance with the law.
The preliminary injunction order notes that the United States ultimately seeks to permanently bar ITS and Ogbazion from further operating a tax-preparation business.
In the past 10 years, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of tax-fraud schemes and the preparation of fraudulent returns.
Thursday, November 1, 2012
Federal Court in Ohio Issues Preliminary Injunction Against Instant Tax Service Franchiser and Its CEO
Trial on Government Request to Permanently Shut Down Firm Is Scheduled for May 2013
A federal court has preliminarily enjoined ITS Financial LLC, the parent company that owns the Instant Tax Service tax-preparation franchise operation, the Justice Department announced today. Dayton, Ohio-based ITS claims to be the fourth-largest tax-preparation firm in the nation, according to the government complaint in the civil lawsuit. Judge Timothy Black of the U.S. District Court for the Southern District of Ohio signed the order, which also applies to the company’s CEO, Fesum Ogbazion. The defendants consented to the preliminary injunction.
The preliminary injunction will remain in force pending the court’s decision following trial in the case. Trial on the government’s suit seeking to shut down the defendants with a permanent injunction is scheduled to begin on May 20, 2013, in Dayton.
According to the government complaint in the case, ITS franchisees routinely prepare and file fraudulent federal tax returns, fabricate deductions and invent phony businesses. The suit further alleges that ITS franchisees file tax returns without customer authorization and without proper employer-issued W-2 wage statements, and charge customers exorbitant and bogus fees. Defendants and their franchisees allegedly lure mostly low-income customers into ITS stores by offering deceptive and misleading loans such as "Instant Cash" or "Holiday" loans, often before the tax return filing season begins. Defendants have denied the allegations in the complaint.
Under the terms of the preliminary injunction, defendants are barred from encouraging or preparing false or fraudulent tax returns, from filing tax returns without customer authorization, from charging customers exorbitant and bogus fees, from deceiving their customers and the government, and from otherwise violating the tax laws. In addition, defendants are barred from offering any Instant Cash loan or similar loan product that relies on a customer’s paystub (rather than an employer-issued IRS W-2 year-end wage statement), and from offering any loan product that violates any federal or state law. Defendants may offer only genuine loan products provided by independent, third-party lenders. The preliminary injunction also requires defendants, at their own expense, to hire third-party monitors who will review and audit tax returns prepared by all ITS franchisees. In addition, defendants must hire a neutral company to conduct "secret shopper" visits to ITS franchisees to test their compliance with the law.
The preliminary injunction order notes that the United States ultimately seeks to permanently bar ITS and Ogbazion from further operating a tax-preparation business.
In the past 10 years, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of tax-fraud schemes and the preparation of fraudulent returns.
Subscribe to:
Posts (Atom)