RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY
121109-N-SB121-170 MAYPORT, Fla. (Nov. 9, 2012) The University of Florida Gators, Georgetown University Hoyas and gathered spectators stand for the singing of the national anthem by the country music group Little Big Town and the parading of the colors aboard the amphibious assault ship USS Bataan (LHD-5) during the Navy-Marine Corps Classic. The Hoyas faced off against the Gators in the Navy-Marine Corp Classic hosted by the City of Jacksonville, which along with its surrounding communities has a long tradition of supporting Sailors and Marines. The game honors veterans, active and reserve service members, and military families. America's away team, the Navy and Marine Corps are reliable, flexible, and ready to respond worldwide on, and above and below the sea as well ashore. Join the conversation in social media using #BBallOnDeck. (U.S. Navy photo by Mass Communication Specialist 1st Class Ian W. Anderson/Released)

121109-N-SB121-288 MAYPORT, Fla. (Nov. 9, 2012) Fireworks explode above the guided-missile frigate USS De Wert (FFG-45) in Mayport harbor during the Navy-Marine Corps Classic basketball game. The Georgetown University Hoyas faced off against the University of Florida Gators in the Navy-Marine Corp Classic hosted by the City of Jacksonville, which along with its surrounding communities has a long tradition of supporting Sailors and Marines. The game honors veterans, active and reserve service members, and military families. America's away team, the Navy and Marine Corps are reliable, flexible, and ready to respond worldwide on, and above and below the sea as well ashore. Join the conversation in social media using #BBallOnDeck. (U.S. Navy photo by Mass Communication Specialist 1st Class Ian W. Anderson/Released)
 

GENERAL DEMPSEY HONORS U.S. VETERANS IN SOUTH KOREA

The "Bridge of No Return" in the Demilitarized Zone (DMZ) between North and South Korea was used for prisoner exchanges at the close of the Korean War. Credit:  CIA World Factbook.

FROM: U.S. DEPARTMENT OF DEFENSE
Dempsey Honors U.S. Veterans at Seoul Memorial

By Jim Garamone
American Forces Press Service

YONGSAN GARRISION, South Korea, Nov. 10, 2012 - Veterans of the Korean War would have recognized the weather if nothing else about the South Korean capital of Seoul today, as Pouring rain obscured the skyscrapers that are now a symbol of Seoul on Nov. 11 here, but the Veterans of Foreign War carried through with a ceremony to remember their comrades -- especially the more than 38,000 Americans killed in the Korean War from 1950 to 1953.

Army Gen. Martin E. Dempsey joined Army Gen. James D. Thurman -- commander of Combined Forces Korea and U.S. Forces Korea -- and U.S. Ambassador to South Korea Sung Y. Kim for the ceremony at the 8th Army Memorial here. The ceremony also honored some American and Korean veterans of the war who attended.

Dempsey said it is right and fitting to honor veterans, because while he represents the men and women who make up the finest military the world has ever seen, "we know we stand on very broad shoulders."

"On Veterans Day we honor every man or woman who has worn the uniform of our nation, who have selflessly secured America's promise throughout our history," the general said. "That history teaches us that security doesn't just happen. It demands effort, sacrifice, courage and commitment. It requires generations of men and women willing to go to distant lands and, as the Korean War Memorial in Washington says, 'to defend a country that they never knew and a people that they never met.'"

Dempsey asked the audience to remember not only the veterans of previous wars, but those thousands of service members in harm's way today.

"This isn't just about what we say here today; this is about how we honor our veterans every day of the year," the chairman said. "It's remaining committed to supporting them and their families in every way that we possibly can. It's about serving them as well as they serve and continue to serve our nation."

That, the chairman added, is the sacred trust between America and those who defend it. "It's a trust extolled by the 8th Army – honored by this memorial – that drove the enemy north of the 38th parallel," he said.

Kim thanked the Korean War veterans for giving Americans and Koreans "the freedom to chose their own paths."

The ambassador noted that what began as a purely military alliance in 1950 has morphed to a full and close alliance on every level. Behind the bulwark of U.S. military, the South Korean military has grown to a world-class organization. South Korea has grown from a destitute land destroyed by war in 1953 to the 12th-largest economy in the world. Thanks to the security provided by the U.S.-South Korean alliance, he added, this country has risen from a Third World nation to the First World in a generation.

Kim said the South Korean military has stood with its American allies in Vietnam, Iraq and Afghanistan, and he thanked them for the Korean people for their sacrifices.

Thurman said the ceremony was a chance for both Americans and Koreans to reflect on "our values and our freedoms that we share."

He noted that many U.S. veterans live in South Korea, and said it is fitting to recognize them.

"Today we honor the young men and women who throughout the history of our nation answered the call in times of need," Thurman said. "Our veterans served both at home and overseas to defend our country and its values."

GAMING EXECUTIVES CHARGED BY SEC WITH LYING TO INVESTORS

Photo Credit:  SEC.

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., Nov. 8, 2012 — The Securities and Exchange Commission today charged three executives with repeatedly lying to investors about the operations and financial condition of an Irvine, Calif.-based company that purported to sell credit card-size electronic games. The SEC also charged the company’s independent auditor with facilitating the scheme.

The SEC alleges that chief executive officer Lee Cole and chief financial officer Linden Boyne orchestrated a scheme in which Electronic Game Card Inc. (EGMI) enticed investors by claiming to have millions of dollars in annual revenue, hold millions of dollars in investments, and own an off-shore bank account worth more than $10 million. In reality, many of the company’s purported contracts were phony, the purported investments were merely in entities affiliated with Cole or Boyne, and the bank account did not exist. As a result of EGMI’s false claims, the company’s outstanding common stock was once valued as high as $150 million. EGMI is now bankrupt and its stock is worthless.

The SEC charged the company’s outside auditor — certified public accountant Timothy Quintanilla — with repeatedly issuing clean audit opinions about EGMI based on reckless and deficient audit work. Also charged is Kevin Donovan, who later replaced Cole as CEO and ignored many red flags about the accuracy of the company’s public statements and the integrity of Cole and Boyne. He provided false information during conference calls with analysts and investors.

"Cole and Boyne played a game of make-believe with a publicly-traded microcap company," said Andrew M. Calamari, Director of the SEC’s New York Regional Office. "We will continue to fight microcap fraud and bring charges against not only the company executives but also the auditors or other gatekeepers who legitimize a fraud and allow investors to be victimized."

According to the SEC’s complaint filed in federal court in Manhattan, EGMI’s material misrepresentations and omissions in SEC filings and public statements occurred from 2007 to 2009. The company repeatedly reported non-existent revenues and assets, misrepresented its business operations, and failed to disclose related-party transactions. Those misrepresentations and others like them were just part of a scheme that Cole and Boyne orchestrated through EGMI to reap approximately $12 million in unlawful gains. While they were making material misrepresentations to inflate EGMI’s stock price, Cole and Boyne also secretly funneled millions of shares of EGMI stock to entities based in Gibraltar that they secretly controlled. They directed the Gibraltar entities to sell the shares, and proceeds of those sales were transferred to people or entities associated with Cole and Boyne or to EGMI itself. Cole and Boyne bolstered their lies by providing falsified documents to the company’s outside auditors.

The SEC alleges that as EGMI’s engagement partner, Quintanilla and the public accounting firm Mendoza Berger & Co. LLP issued clean audit opinions for EGMI’s year-end financial statements for 2006, 2007, and 2008, even though those statements were riddled with material misstatements and omissions. Mendoza Berger and Quintanilla knowingly or recklessly misrepresented that the firm had conducted audits of EGMI’s financial statements "in accordance with the standards of the Public Company Accounting Oversight Board (United States)." Mendoza Berger’s opinion stated that EGMI’s financial statements "present[ed] fairly, in all material respects, the financial position" of EGMI. In fact, Mendoza Berger had not audited critical aspects of EGMI’s financial statements, and its work did not conform to the standards of the Public Company Accounting Oversight Board (PCAOB). Quintanilla had no meaningful basis to have Mendoza Berger issue an opinion on EGMI’s financial statements.

The SEC further alleges that shortly after Donovan became CEO, he was notified of many red flags related to the company’s public statements about its operations, finances, and share count. Donovan violated the antifraud provisions of the securities laws when he led several public conference calls with securities analysts and investors in 2009, and knowingly or recklessly relayed false financial information about the company that had been provided to him by Cole and Boyne.

The SEC’s complaint alleges that Cole and Boyne violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933; Sections 10(b), 13(b)(5), 13(d), and 16(a) of the Securities Exchange Act of 1934 and Rules 10b-5, 13a-14, 13b2-1, 13b2-2, 13d-1, 13d-2, 16a-2, and 16a-3; and Section 304 of the Sarbanes-Oxley Act of 2002. The SEC also alleges that Cole and Boyne are liable as control persons and for aiding and abetting violations of Sections 10(b), 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13a-13. The SEC charges that Donovan violated Sections 17(a)(1) and 17(a)(3) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5. The SEC alleges that Quintanilla violated Section 17(a) of the Securities Act and Sections 10(b), 10A(a)(1), and 10A(b)(1) of the Exchange Act and Rule 10b-5. Quintanilla also is charged with aiding and abetting violations of Sections 10(b), 10A(a)(1), and 10A(b)(1) of the Exchange Act and Rule 10b-5 thereunder.

The SEC’s complaint seeks, among other things, a final judgment ordering Cole, Boyne, Donovan, and Quintanilla to pay financial penalties and permanently enjoining them from future violations of the securities laws; enjoining Cole, Boyne, and Donovan from serving as officers and directors of public companies and from participating in penny stock offerings; and ordering Cole, Boyne, and Quintanilla to disgorge their ill-gotten gains with prejudgment interest.

The SEC’s investigation, which is continuing, has been conducted by Michael Paley, Stephen Larson, James Addison, Gwen Licardo, and Aaron Arnzen of the New York Regional Office. Mr. Arnzen will lead the SEC’s litigation. The SEC thanks the PCAOB for its assistance in this matter.

U.S. EXPORT-IMPORT BANK GUARANTEES $35 MILLION FOR CONSTRUCTION OF SULFUR PURIFICATION PLANT IN IRAQ



Trade.  Credit:  CIA World Factbook.

FROM: U.S. EXPORT-IMPORT BANK
Washington, D.C. – The board of the Export-Import Bank of the United States (Ex-Im Bank) voted to guarantee a JPMorgan Chase loan totaling $35 million to Devco International LLC (Devco) of Tulsa, Okla., for the design and construction of a sulfur purification plant in Mosul, Iraq.

Ex-Im Bank’s financing will support approximately 380 U.S. jobs, according to bank estimates derived from Departments of Commerce and Labor data and methodology.

"This significant transaction not only supports American small-business jobs here at home, but it also supports the sulfur and agricultural industries in Iraq," said Ex-Im Bank Chairman and President Fred P. Hochberg. "By providing a working –capital guarantee, Ex-Im Bank is demonstrating that we are always looking to support U.S. exporters and grow our economy by creating quality jobs here at home."

Devco utilizes as part of its design a modular concept that maximizes labor concentration in a fabrication-shop environment. The company will design, procure, fabricate, and pre-assemble the plant in the United States and then ship the plant in modular form to Iraq. Upon arrival, Al Hawarth, an Iraqi-owned company, will re-assemble the facility outside the riverside city of Mosul.

The plant will process sulfur from underground deposits utilizing a priority process, Submerged Combustion Distillation, developed by CTI Consulting of New Orleans, La. The Al-Mishraq Sulphur State Company, which will own and operate the facility, plans to retail the purified sulfur output in Iraq for domestic use. Sulfur is a key ingredient in fertilizer and therefore is in demand within the agricultural sector.

"We are proud to support Devco International LLC in this important transaction which will create hundreds of American jobs," said Lillian Labbat, managing director, J.P. Morgan. "We see exports as a key driver of economic expansion. Our export finance capabilities and global footprint are what enable us to help small businesses to compete and to succeed."

Founded in 1978, Devco is a chemical-engineering firm that designs sulfur-handling equipment. The small-business company developed a wet-processing technology known as the Devco II Wet Pelletizing Technology, which converts molten sulfur into solid sulfur pellets in a process that is both economical and environmentally friendly.

"We are very pleased with the support being provided to us by Ex-Im Bank on this critical project. A project such as this would have been difficult to obtain without their dedicated assistance," said Doug Houston, the owner and chief executive officer of Devco. "Projects of this magnitude allow us to extend and expand our technical staff, while supplying significant job opportunities for our fabrication partners in several locations throughout the United States. This project heightens the company’s opportunity to provide additional United States based technology and equipment solutions for Iraq."

U.S. DOD RELEASES BENGHAZI TIMELINE FOR RESPONSE

Sahara Desert In Libya.  Credit:  CIA World Factbook.

FROM: U.S. DEPARTMENT OF DEFENSE

DOD Releases Detailed Timeline for Benghazi Response
By Karen Parrish
American Forces Press Service
WASHINGTON, Nov. 10, 2012 - The Defense Department released a detailed timeline yesterday of the Pentagon's response to the September attack in Benghazi, Libya, that left four Americans dead, including U.S. Ambassador J. Christopher Stevens.

A senior defense official, speaking on background with Pentagon reporters, emphasized the rapid consultation, planning and troop pre-deployment actions defense leaders undertook in the first hours following the attack.

"With naval, Marine, special operations and air forces either employed or en route to Libya during the attacks, we responded," the official said. "We mourn the loss of four American heroes in Benghazi."

The military's initial response began within minutes of the first incident in Benghazi, the official said: the attack on the U.S. consulate began at 3:42 p.m. EDT [9:42 p.m. Benghazi time], and by 5:10 EDT an unarmed surveillance aircraft was on station over the Benghazi compound.

By 5:30 p.m., all surviving Americans had left the consulate, the official noted, adding that defense officials didn't have that information until later.

The senior official noted that for people to understand the sequence of events in Benghazi, "it's important to discuss the wider context of that tragic day."

In the months before the attack, the official said, hundreds of reports surfaced of possible threats to U.S. citizens and facilities across the globe. In the Middle East and North Africa on Sept. 11, the official added, U.S. facilities in more than 16 countries were operating on a heightened force-protection level, based on specific threats.

"I would note ... that there was no specific or credible threat that we knew of on the day that the attacks ... occurred in Benghazi," the official said.

The official acknowledged that since Sept. 11, many people have speculated on whether increased military intervention, including the use of manned and unmanned aircraft, might have changed the course of events in Libya that night.

"Unfortunately, no alternative or additional aircraft options were available within ... [enough time] to be effective," the official said. "Due to the incomplete intelligence picture on the ground, armed aircraft options were simply not feasible."

The DOD timeline records that in the first hours following the initial attack, Defense Secretary Leon E. Panetta and Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, conferred first with the president, and shortly after with senior officials including Army Gen. Carter F. Ham, who leads U.S. Africa Command. Africom's area of responsibility includes Libya.

During those meetings, the official said, Panetta verbally ordered two fleet antiterrorism security team, or FAST, platoons to prepare to deploy from their base in Rota, Spain. The secretary also issued verbal prepare-to-deploy orders for a U.S. European Command special operations force then training in Central Europe and a second special operations force based in the United States.

At 6:30 p.m. EDT, according to the timeline, a six-person security team, including two DOD members, left the U.S. Embassy in Tripoli for Benghazi.

The official noted the Pentagon's National Military Command Center staff, within hours of the attack, began planning support and contingency operations with transportation and special operations experts, as well as with representatives from the four services and Africa, Europe and Central commands. By 8:39 p.m., the official said, the command center had started issuing written orders for the forces the secretary had alerted.

At 11 p.m. EDT, the official said, a second unmanned, unarmed surveillance aircraft relieved the first, and at 11:15 p.m. -- around 5 a.m. Sept. 12 in Benghazi -- the second U.S. facility there, an annex near the consulate, came under mortar and rocket-propelled grenade fire.

By 1:40 a.m. EDT Sept. 12, the first wave of Americans left Benghazi for Tripoli by airplane, with the second wave, including the bodies of the fallen, following at 4 a.m. A C-17 aircraft, under Africom direction, flew the evacuees from Tripoli to Germany later that day, the official said.

As the timeline makes clear, the official said, the evacuation took place before the FAST platoons or special operations forces arrived, although all were converging on Libya -- noting repeatedly that DOD leaders lacked a clear picture of enemy, civilian and American positions in the area.

"There are people out there who have suggested that an overhead surveillance aircraft could have perfect visibility into what was happening on the ground, and on that basis alone, you could send in a team," the official said. "That is not necessarily how things work."

An overhead surveillance aircraft operating at night over a city can't always help military members separate friend and foe on the ground, the official said.

"You get a lot of good information from a surveillance aircraft, ... but it doesn't necessarily provide you a complete and instant picture of what is happening on the ground. ... If you're going to undertake military action, you'd better have solid information before you decide to take the kinds of steps that are required to effectively complete a military mission of this sort," the official told reporters.

Over the roughly 12 hours between the start of the attacks and the time the last Americans were evacuated from Benghazi, the official said, defense leaders postured forces to meet any contingencies that might develop, as there was no way to know in the early, "murky" stages whether the situation would be resolved within hours, days or longer.

"We absolutely had our forces arrayed in a way that could potentially respond to events that might unfold," the official said. "We are an excellent military -- the finest in the world. We're always prepared. But we're neither omniscient nor omnipresent."

GOVERNMENT, INDUSTRY, ALLIES NEED TO WORK TOGETHER FOR CYBERSECURITY

GEN Keith B. Alexander United States Army

FROM: U.S. DEPARTMENT OF DEFENSE

Cybersecurity Involves Federal, Industry Partners, Allies
By Cheryl Pellerin
American Forces Press Service
WASHINGTON, Nov. 8, 2012 - The $110 billion-a-year cyber economy has never been more vulnerable to crime and other threats, and securing the Internet against attacks demands the expertise of government agencies, industry and allies, the commander of U.S. Cyber Command said here yesterday.

Army Gen. Keith B. Alexander, Cybercom chief and director of the National Security Agency, spoke before a large audience at the Symantec 2012 Government Symposium.

The symposium examines a fundamental question: How to protect sensitive information while enabling collaboration across jurisdictions, nations, citizens and the private sector?

"Government ... operations depend on the network. If we lose that network we can't communicate, [and] ... what happens when [adversaries] disrupt our network or the power grid or our banking institutions?" Alexander said, adding that the U.S. must work with its partners in industry and its allies to solve the problem.

"Many will ask about the roles of [the National Security Agency and Cybercom] in this, and how can we ensure civil liberties and privacy [as well as] the security of cyberspace? We can do both," he said.

One of the first things industry and government must decide is how to make sure all companies involved in U.S. critical infrastructure -- including financial and information services and the defense industrial base -- institute the highest possible levels of computer security.

"How many companies in the United States and among our allies are at this level?" Alexander asked.

"We actually do inspections," he added. "We inspect our government networks to see how many are at 100 percent. And the answer is, very few."

Companies in some sectors, like banking and the high end of the defense industrial base, are "right there at the top" of computer security, the general said.

"Then you go out to some companies that are being [attacked by adversaries in cyberspace] and they don't know what the threat looks like nor what they should do, and some of them are in critical infrastructure," he added.

Nobody wants to make such an effort hard, costly or bureaucratic, Alexander said.

"The question is how do we help them?" he said. "What's the right forum for government and industry to work together to help those companies get to the right level of security?"

Another imperative for government-industry collaboration involves gaps in computer security exploited by what are called "zero-day" attacks -- those that exploit vulnerabilities in computer applications.

Eventually, patches are created to plug the security holes, but not before adversaries have entered and damaged the network or stolen intellectual property.

Alexander used an analogy to explain how Cybercom or the NSA could help industry identify what the general called "bad packets," or those that carry destructive payloads out on the Internet.

"Internet service providers see packets out there. We want them to be able to see bad packets and do something about them. We'll have [an examination process] for every packet. And we'll say, 'Did you see a bad packet in the network? Tell us where it's coming from and going to, and stop it because [it's carrying] a destructive payload,'" the general explained.

"When they see that bad packet, we don't need to know what was in the communications," he added. "All we need to know is a dangerous packet went from point A to point B right now, and that we may need to act."

The federal government "is not looking at the traffic," Alexander said.

"Industry is looking at the traffic and they have to do that to own and operate these networks. We're going to help them with signatures and other things, and they need to tell us when they need our help. But it's got to be done in time for us to help, and that's part of the key issue."

At Cybercom, the general said, experts are training the cyber workforce of the future, determining roles and responsibilities of the federal agencies involved in cybersecurity and exploring a defensible architecture for the Defense Department.

"The DOD architecture, in my opinion, is not defensible per se. We're doing our best to defend it, but we've made this really hard," Alexander said. The department has 15,000 enclaves, each run by separate system administrators and each with its own firewalls, he added.

"What that means is we need to come up with a defensible architecture," the general said, adding that "a ... virtual cloud is key to our success for a couple of areas for the Defense Department," including for a growing number of mobile users.

Cybercom and other agencies are also working on issues related to their authority to respond to a problem, Alexander said.

The key question, he added, is what can the Department of Homeland Security, the FBI, Cybercom and the NSA do to defend the country against a cyberattack, and when can they do it?

Alexander said that he, DHS Secretary Janet Napolitano, and FBI Director Robert S. Mueller III "have laid out lanes in the road for the government entities."

The FBI is responsible for investigation, attribution and domestic problems. DHS is responsible, along with partners like NSA, the National Institute for Standards and Technology and the SANS Institute, for cybersecurity standards.

NSA and Cybercom have a couple of roles and responsibilities, Alexander said, including foreign intelligence.

"NSA has the best folks in the world," the general said. "They have special skills and we want to leverage those skills to help secure cyberspace for our country and for our allies."

Cybercom's role "is not only to operate and defend DOD networks but to defend the country," he said, noting Cybercom would step in if America came under cyberattack.

In the meantime, the general said, he's concerned that attacks like the destructive August attack on computers at Saudi Arabia's government-owned oil company Aramco are happening and "we're spending a lot of time talking about what we should do and when we should do it."

While there is still time, he said, "while you're all in the room together with us ... we ought to argue it out just like we did in the election [on Tuesday], come to a solution and then get going."

PLANET MERCURY'S SMILING FACE

FROM: NASA

It looks like even the craters on Mercury have heard of Bob Ross! The central peaks of this complex crater have formed in such a way that it resembles a smiling face. This image taken by the MESSENGER spacecraft is oriented so north is toward the bottom. The MESSENGER spacecraft is the first ever to orbit the planet Mercury, and the spacecraft's seven scientific instruments and radio science investigation are unraveling the history and evolution of the Solar System's innermost planet. During the one-year primary mission, MESSENGER acquired 88,746 images and extensive other data sets. MESSENGER is now in a yearlong extended mission, during which plans call for the acquisition of more than 80,000 additional images to support MESSENGER's science goals. Image Credit: NASA

ROBOT TEST OF THE INTERPLANETARY INTERNET

Photo:  International Space Station.  Credit:  NASA

FROM: NASA

NASA, ESA Use Experimental Interplanetary Internet to Test Robot From International Space Station

WASHINGTON -- NASA and the European Space Agency (ESA) successfully have used an experimental version of interplanetary Internet to control an educational rover from the International Space Station. The experiment used NASA's Disruption Tolerant Networking (DTN) protocol to transmit messages and demonstrate technology that one day may enable Internet-like communications with space vehicles and support habitats or infrastructure on another planet.

Space station Expedition 33 commander Sunita Williams in late October used a NASA-developed laptop to remotely drive a small LEGO robot at the European Space Operations Centre in Darmstadt, Germany. The European-led experiment used NASA's DTN to simulate a scenario in which an astronaut in a vehicle orbiting a planetary body controls a robotic rover on the planet's surface.

"The demonstration showed the feasibility of using a new communications infrastructure to send commands to a surface robot from an orbiting spacecraft and receive images and data back from the robot," said Badri Younes, deputy associate administrator for space communications and navigation at NASA Headquarters in Washington. "The experimental DTN we've tested from the space station may one day be used by humans on a spacecraft in orbit around Mars to operate robots on the surface, or from Earth using orbiting satellites as relay stations."

The DTN architecture is a new communications technology that enables standardized communications similar to the Internet to function over long distances and through time delays associated with on-orbit or deep space spacecraft or robotic systems. The core of the DTN suite is the Bundle Protocol (BP), which is roughly equivalent to the Internet Protocol (IP) that serves as the core of the Internet on Earth. While IP assumes a continuous end-to-end data path exists between the user and a remote space system, DTN accounts for disconnections and errors. In DTN, data move through the network "hop-by-hop." While waiting for the next link to become connected, bundles are temporarily stored and then forwarded to the next node when the link becomes available.

NASA's work on DTN is part of the agency's Space Communication and Navigation (SCaN) Program. SCaN coordinates multiple space communications networks and network support functions to regulate, maintain and grow NASA's space communications and navigation capabilities in support of the agency's space missions.

The space station also serves as a platform for research focused on human health and exploration, technology testing for enabling future exploration, research in basic life and physical sciences and Earth and space science.

Press Briefing | The White House

Press Briefing | The White House

Weekly Address: Extending Middle Class Tax Cuts to Grow the Economy | The White House

Weekly Address: Extending Middle Class Tax Cuts to Grow the Economy | The White House

U.S. Department of Defense Armed with Science Update: Army's Real UFO

U.S. Department of Defense Armed with Science Update

ENVIRONMENTAL LABORATORY OPERATOR CHARGED WITH FALSIFIYING RECORDS AND OBSTRUCTION

FROM: U.S. JUSTICE DEPARTMENT
Friday, November 9, 2012
Mississippi Laboratory Operator Charged with Falsifying Records on Industrial Wastewater
An owner and sole operator of an environmental laboratory has been charged in U.S. District Court for the Southern District of Mississippi with falsification of records and obstructing a federal criminal investigation, announced U.S. Attorney for the Southern District of Mississippi Gregory K. Davis and Assistant Attorney General Ignacia S. Moreno of the Justice Department’s Environment and Natural Resources Division.

Tennie White, owner, operator and manager of Mississippi Environmental Analytical Laboratories Inc. was charged in a three-count felony indictment with two false statements counts and one count of obstructing proceedings.

According to the indictment, White was hired to perform laboratory testing of a manufacturer’s industrial process waste water samples and then to use those results to complete monthly discharge monitoring reports for submission to the Mississippi Department of Environmental Quality (MDEQ). The indictment alleges that from February to August 2009 White created three discharge monitoring reports (DMRs) that falsely represented that laboratory testing had been performed on samples when, in fact, such testing had not been done. The indictment further alleges that White created a fictitious laboratory report and presented it to her client for use in preparing another DMR.

The indictment further alleges that White made false statements to a federal agent during a subsequent criminal investigation.

An indictment is not a finding of guilt, and a defendant is presumed innocent unless and until proven guilty in a court of law.

The false statements charges carry a maximum sentence of five years in prison and a $250,000 fine per count. The obstructing proceedings charge carries a maximum sentence of 20 years in prison and a $250,000 fine.

This case is being prosecuted by Trial Attorney Richard J. Powers of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, and Assistant U.S. Attorney Gaine Cleveland of the U.S. Attorney’s Office for the Southern District of Mississippi.

TWO PAKISTANI NATIONALS INDICTED FOR ROLES IN ILLEGALLY SHIPPING PHARMACEUTICALS INTO THE U.S.

Credit:  FDA

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, November 7, 2012

Two Pakistani Nationals Indicted for Conspiring to Illegally Ship Pharmaceuticals into the US

Defendants Allegedly Shipped More Than $780,000 of Drugs into U.S.
Two Pakistani nationals have been indicted by a federal grand jury in the District of Columbia on charges alleging that they operated Internet sites that illegally shipped pharmaceuticals from Pakistan and the United Kingdom to customers in the United States.

Sheikh Waseem Ul Haq, 39, and Tahir Saeed, 50, are accused of operating Internet sites that, since late 2005, illegally shipped $2 million of pharmaceuticals from Pakistan and the United Kingdom to customers worldwide, including nearly $780,000 in sales to U.S. purchasers.

According to the indictment, the defendants and others owned, operated and conducted business as Waseem Enterprises and Harry’s Enterprises, wholesale pharmaceutical companies that were located in Pakistan. The businesses were used to unlawfully distribute a wide variety of controlled substances and prescription drugs through Internet sites. The defendants and others also advertised their companies on Internet sites to generate business.

Ul Haq and Saeed directed U.S. customers to submit payments via Western Union to numerous individuals in Karachi, Pakistan, in order to conceal the fact that the funds were going to Ul Haq and Saeed. As alleged in the indictment, the defendants admitted in e-mails that they paid bribes to Pakistani customs officials to facilitate shipment of the drugs out of Pakistan, and warned that U.S. customers bore the risk of interception by U.S. customs officials. The indictment alleges that the defendants packaged the drug shipments in ways which reduced the likelihood of interdiction by customs inspectors and told customers that, despite the packaging, some of the shipments might not get through.

The drugs shipped into the United States included methylphenidate (sold as Ritalin); various anabolic steroids; alprazolam (sold as Xanax); diazepam (sold as Valium), lorazepam (sold as Ativan), clonazepam (sold as Klonapin) and other controlled and non-controlled substances.

The indictment, which was returned on Nov. 6, 2012, was announced today by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Acting Assistant Attorney General Stuart F. Delery of the Department of Justice’s Civil Division; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; Robert Brisolari, Acting Special Agent in Charge of the Washington Division Office of the Drug Enforcement Administration; Gary R. Barksdale, Inspector in Charge, Washington Division, U.S. Postal Inspection Service, and Antoinette V. Henry, Special Agent in Charge of the Metro Washington Field Office of the U.S. Food & Drug Administration’s Office of Criminal Investigations.

The indictment was returned following a presentation of evidence by the U.S. Attorney’s Office for the District of Columbia, working in conjunction with the Department of Justice’s Consumer Protection Branch. It charges the defendants with conspiracy to import controlled substance pharmaceuticals into the United States; conspiracy to distribute controlled substance pharmaceuticals; conspiracy to introduce misbranded pharmaceuticals into interstate commerce; importation and distribution of controlled substance pharmaceuticals; introduction into interstate commerce of misbranded drugs, and conspiracy to commit international money laundering. It also includes a forfeiture allegation seeking all proceeds that can be traced to the scheme.

If convicted, the defendants face up to 20 years in prison for each of the two counts involving the conspiracy to import and distribute controlled substances, as well as up to 20 years for the conspiracy to commit international money laundering. They face a maximum penalty of five years for conspiracy to introduce misbranded pharmaceuticals into interstate commerce, and additional time if convicted of the other charges.

In early October 2012, a law enforcement task force investigating the case learned that the defendants would be traveling from Pakistan to northern Europe. With coordination from the U.S. Department of Justice’s Office of International Affairs, U.S. authorities lodged provisional arrest warrants for the defendants first in Germany and then in the United Kingdom.

With the assistance of Interpol and law enforcement agents in Germany and the United Kingdom, the defendants were tracked from Germany to London, where they were arrested by the London Metropolitan Police Service Fugitive Squad at a hotel near Heathrow Airport on Oct. 19, 2012. They were presented to Westminster Magistrate’s Court in London and ordered held pending extradition to the United States.

"This indictment alleges an international conspiracy to sell anabolic steroids, anti-anxiety medications, and other prescription drugs over the Internet to American consumers without any doctor involved," said U.S. Attorney Machen. "These Pakistani nationals are alleged to have engaged in a scheme to ship unregulated pharmaceuticals to American consumers in exchange for money wired to their cohorts in Pakistan. The controlled substances were packaged to conceal the illegal shipments from being discovered by customs officials. Our Office, along with our law enforcement colleagues, will continue to aggressively investigate and prosecute those who are intent on shipping unregulated and potentially dangerous drugs into the United States."

"This prosecution aims to curb the flow of dangerous drugs into the hands of United States citizens," said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. "The drugs allegedly sold by the defendants were not approved for distribution into the United States, were not dispensed by U.S. licensed pharmacies, and were not prescribed by any physician. Along with the FBI, FDA and our other law enforcement partners, we will continue to protect our citizens from unsafe and potentially harmful drugs."

"This complex investigation and subsequent arrests disrupted an international black market for potentially dangerous drugs entering the United States," said Assistant Director in Charge McJunkin. "This indictment is the direct result of the hard work of FBI Agents in partnership with the Drug Enforcement Administration, U.S. Postal Inspection Service, U.S. Food & Drug Administration’s Office of Criminal Investigations and the London Metropolitan Police Service as well as the prosecutors working on this case."

"This indictment shows the commitment of the U.S. Postal Inspection Service to keep its customers safe from potentially harmful products," said Inspector in Charge Barksdale. "We would also like to thank our federal partners in our continued effort to rid the U.S. Mail of illegal pharmaceuticals."

"The FDA Office of Criminal Investigations is committed to working with our international and domestic law enforcement partners in aggressively pursuing unscrupulous individuals who seek to sell adulterated and misbranded pharmaceuticals to U.S. citizens via the Internet," said Special Agent in Charge Henry.

An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.

This investigation was sponsored and supported by the Department of Justice’s Organized Crime Drug Enforcement Task Force. The case was investigated by the FBI’s Washington Field Office; the Drug Enforcement Administration; the U.S. Postal Inspection Service, and the FDA’s Office of Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney John P. Dominguez and Linda I. Marks, Senior Litigation Counsel for the Department of Justice’s Consumer Protection Branch, who coordinated the investigation and presented the evidence to the grand jury.

U.S. PROPOSES PROTECTION PLAN FOR ANTARTIC MARINE LIFE

Photo Credit:  Wikimedia Commons

FROM: U.S. STATE DEPARTMENT

United States Advances Antarctic Marine Protection Proposal
Media Note
Office of the Spokesperson
Washington, DC
November 8, 2012
31st Meeting of the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR) concluded on November 1 in Hobart, Australia. The meeting yielded a significant step toward protecting Antarctica’s Ross Sea as the United States and New Zealand reached agreement on a joint proposal to establish the world’s largest marine protected area (MPA) in that region. The Ross Sea is of tremendous conservation and scientific value and continues to be a focal point for U.S. marine conservation efforts in Antarctica.

Although the United States and New Zealand had submitted different proposals to CCAMLR for MPAs in the Ross Sea, productive negotiations between the two countries resulted in a joint plan that balances ecosystem protection, scientific research, and fishing objectives. The proposed MPA would protect roughly 876,000 square miles (2.27 million square kilometers) of the Ross Sea, an area larger than the state of Alaska.

Unfortunately, the joint plan was not finalized during the meeting. Opposition from a small number of members prevented the Commission from reaching the consensus required to approve the Ross Sea and other MPA proposals. Members agreed, however, to convene a special meeting in Germany in July 2013 to consider and make decisions on the pending MPAs, demonstrating the importance and urgency of the issue.

The U.S. delegation at CCAMLR is led by the U.S. Department of State’s Bureau of Oceans and International Environmental and Scientific Affairs, and also includes representatives from the National Oceanic and Atmospheric Administration and the National Science Foundation, as well as advisers from the fishing industry and non-governmental conservation organizations.

The United States looks forward to working with New Zealand and other interested governments in advance of the July meeting on this significant marine protection initiative.

ARMY NATIONAL GUARD RECRUITER ADMITS TO ROLE IN FRAUDULENT RECRUITING REFERRAL BONUS SCHEME

FROM: U.S. DEPARTMENT OF DEFENSE

Friday, November 9, 2012
Army National Guard Recruiter Admits Crimes in Fraudulent Recruiting Referral Bonus Scheme

Plea Latest of Ten in Ongoing Corruption Investigation
An Army National Guard recruiter pleaded guilty today in the Western District of Texas for his role in a bribery and fraud scheme that caused approximately $98,000 in losses to the Army National Guard Bureau, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.

Staff Sergeant Jermaine Britt, 39, of Richmond, Texas, pleaded guilty to a three-count criminal information charging him with one count of bribery, one count of conspiracy to commit bribery and wire fraud and one count of obstruction of justice. The criminal information was filed on Nov. 2, 2012, in the U.S. District Court for the Western District of Texas.

The case against Britt arises from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging bribery and fraud scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against ten individuals, all of whom have now pleaded guilty.

According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. to administer a recruiting program designed to offer monetary incentives to soldiers of the Army National Guard who referred others to join. Through this program, a participating soldier could receive up to $2,000 in bonus payments for every person whom the participating soldier referred to join the Army National Guard. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.

According to court documents, Britt enlisted in the Army National Guard in approximately July 2005, and served as a military recruiter from approximately November 2006. Britt admitted that between approximately May 2008 and April 2011, he and other recruiters obtained the names and Social Security numbers of potential soldiers and provided them to recruiting assistants, including Stephanie Heller, with the understanding that these recruiting assistants would use the information to obtain fraudulent recruiting bonuses. The recruiting assistants used the information to claim they were responsible for referring these potential soldiers to join the Army National Guard, when they were not. In exchange, Britt admitted that he personally received a total of $23,750 in cash payments.

Britt also admitted that after learning of a federal investigation into the fraudulent bonus scheme, he attempted to persuade Heller to falsify her statements to special agents of the U.S. Army Criminal Investigation Command (Army CID agents), whom Britt understood at the time were conducting a federal investigation of Britt’s and Heller’s unlawful activities. Specifically, Britt coached Heller on how she could provide false exculpatory explanations to Army CID agents concerning, among other things, Heller’s large cash withdrawals from her personal bank account, Britt’s e-mails to Heller in which he provided her with the personal identifiers of potential soldiers, and Heller’s use of Britt’s military computer to make fraudulent referrals under her recruiting assistant account.

On Oct. 4, 2012, Stephanie Heller pleaded guilty to one count of bribery and one count of conspiracy to commit bribery and wire fraud in connection with her unlawful dealings with Britt and another recruiter and her personal receipt of approximately $44,500 in fraudulent recruiting bonuses.

The charge of bribery carries a maximum potential penalty of 15 years in prison, the charge of conspiracy carries a maximum potential penalty of five years in prison and the charge of obstruction carries a maximum potential penalty of 20 years in prison. Each charge also carries a maximum $250,000 fine, or twice the pecuniary gain or loss from the offense. Sentencing has been scheduled for Feb. 8, 2013, before Chief U.S. District Judge Fred Biery in San Antonio.

The case is being prosecuted by Trial Attorneys Edward J. Loya Jr., Brian A. Lichter, and Sean F. Mulryne of the Criminal Division’s Public Integrity Section. The case is being investigated by agents from the San Antonio Fraud Resident Agency of the Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command.

GENERATORS SENT TO HELP HURRICANE SANDY SURVIVORS

Army Sgt. 1st Class Barry "Lee" Newnam II, noncommissioned officer in charge, 249th Engineer Battalion, Fort Bragg, N.C., assists in the movement of generators to be sent to areas in New Jersey that are in critical need of power. U.S. Army photo by Sgt. Jennifer Brady

FROM: U.S. DEPARTMENT OF DEFENSE

Soldiers Coordinate Generator Shipment for Sandy Relief

By Army Sgt. Jennifer Brady
10th Press Camp Headquarters

LAKEHURST, N.J., Nov. 9, 2012 - State and local authorities, with support from federal agencies, have been working to restore power to residents of the northeastern United States impacted by Hurricane Sandy.

New Jersey Gov. Chris Christie said his top priority is to restore power to those affected by the storm and the U.S. Army's 249th Engineer Battalion, based at Fort Bragg, N.C., is helping to do just that.

"We're conducting support of the national response framework by conducting assessments at critical facilities and sending the information back to the generator yard to begin sending generators out so that we can help bring power back to the people of New Jersey," said Army Capt. Michael Wiehagen, who commands the battalion's Bravo Company.

Wiehagen, a Pittsburgh native, is responsible for a number of engineer teams throughout New Jersey and parts of New York that are working around the clock to assess damage and determine the scale of assistance needed.

Once local power needs are identified, Wiehagen's mission is coordinating the allocation and shipping of generators to these areas.

For Army Sgt. 1st Class Barry "Lee" Newnam II, noncommissioned officer in charge, 249th Engineer Battalion, it's more than a mission; it's an opportunity to help fellow Americans.

"Being a United States Army soldier, it's a privilege to help the citizens of New Jersey in this time of need and I look forward to continuing to serve," Newnam said. "We are here to offer support to the state of New Jersey for as long as they need us and it's imperative that we continue this support at such a critical time."

The generators allocated for New Jersey residents are ready and capable, the engineers said, with enough power to support hospitals and other areas in critical need.

Four generators can provide enough energy to power a small town, and with hundreds of generators facilitated by the 249th Engineer Battalion, the soldiers and FEMA are well on their way to restoring power in New Jersey.

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY
121109-N-PW661-037 MAYPORT, Fla. (Nov. 9, 2012) The country music band Little Big Town performs at the Navy and Marine Corps Classic pre-basketball game concert for servicemembers and their families at the Naval Station Mayport as part a Week of Valor tribute. The game honors veterans, active and reserve service members, and military families. America's away team, the Navy and Marine Corps are reliable, flexible, and ready to respond worldwide on, and above and below the sea as well ashore. Join the conversation in social media using #BBallOnDeck. (U.S. Navy photo by Mass Communication Specialist Seaman Rob Aylward/Released)
　

121108-N-MJ645-284 MAYPORT, Fla. (Nov. 8, 2012) The University of Florida Gators basketball team practices on the hardwood court assembled on the flight deck aboard the amphibious assault ship USS Bataan (LHD 5). The Gators will face off against the Georgetown University Hoyas in the Navy-Marine Corp Classic aboard Bataan and is hosted by the City of Jacksonville, which along with its surrounding communities has a long tradition of supporting Sailors and Marines. The game honors veterans, active and reserve service members, and military families. America's away team, the Navy and Marine Corps are reliable, flexible, and ready to respond worldwide on, and above and below the sea as well ashore. Join the conversation in social media using #BBallOnDeck. (U.S. Navy photo by Mass Communication Specialist 2nd Class Marcus L. Stanley/Released)

 

DEPARTMENT OF JUSTICE CLEANS-UP IN $100 MILLION MONEY LAUNDERING CASE

FROM: U.S. DEPARTMENT OF JUSTICE

Friday, November 9, 2012
Moneygram International Inc. Admits Anti-Money Laundering and Wire Fraud Violations, Forfeits $100 Million in Deferred Prosecution

Also Agrees to Enhanced Compliance Obligations and Structural Changes in Connection with Five-Year Agreement
WASHINGTON – MoneyGram International Inc. – a global money services business headquartered in Dallas – has agreed to forfeit $100 million and enter into a deferred prosecution agreement (DPA) with the Justice Department in which it admits to criminally aiding and abetting wire fraud and failing to maintain an effective anti-money laundering program, as charged in an information filed today in the Middle District of Pennsylvania.

The announcement was made by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Peter Smith for the Middle District of Pennsylvania; and Karen V. Higgins, Inspector in Charge, Philadelphia Division, U.S. Postal Inspection Service (USPIS).

According to court documents, MoneyGram was involved in mass marketing and consumer fraud phishing schemes, perpetrated by corrupt MoneyGram agents and others, that defrauded tens of thousands of victims in the United States. MoneyGram also failed to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act. The Justice Department will return the forfeited funds to the victims of the fraud scheme through its Victim Asset Recovery Program.

"MoneyGram’s broken corporate culture led the company to privilege profits over everything else," said Assistant Attorney General Breuer. "MoneyGram knowingly turned a blind eye to scam artists and money launderers who used the company to perpetrate fraudulent schemes targeting the elderly and other vulnerable victims. In addition to forfeiting $100 million, which will be used to compensate victims, MoneyGram must for the next five years retain a corporate monitor who will report regularly to the Justice Department."

U.S. Attorney Smith said, "Thousands of citizens in Pennsylvania and other states suffered heartbreaking financial losses for years because of these international telemarketing schemes which depended on MoneyGram’s facilities to give them an electronic highway to move their illegal profits quickly out of the country. The determined work of U.S. Postal Inspectors and federal prosecutors disrupted and closed that electronic highway, hopefully for good. This case provides a way to get restitution for victims and ensure that MoneyGram does its part to deter similar scams in the future."

"This agreement demonstrates the ongoing and important work of the U.S. Postal Inspection Service in protecting consumers all across America," said Karen V. Higgins, Inspector in Charge, Philadelphia Division. "Businesses are supposed to provide their customers with fair and honest services. Today’s agreement reflects the commitment of the U.S. Postal Inspection Service in seeking justice and, to every extent possible, restitution for the most vulnerable in our society."

As part of the DPA, MoneyGram has agreed to enhanced compliance obligations and structural changes to prevent a repeat of the charged conduct, including:

Creation of an independent compliance and ethics committee of the board of directors with direct oversight of the chief compliance officer and the compliance program;
Adoption of a worldwide anti-fraud and anti-money laundering standard to ensure all MoneyGram agents throughout the world will, at a minimum, be required to adhere to U.S. anti-fraud and anti-money laundering standards;
Adoption of a bonus system which rates all executives on success in meeting compliance obligations, with failure making the executive ineligible for any bonus for that year; and
Adoption of enhanced due diligence for agents deemed to be high risk or operating in a high-risk area.

To oversee implementation and maintenance of these enhanced compliance obligations and evaluate the overall effectiveness of its anti-fraud and anti-money laundering programs, MoneyGram has agreed to retain an independent corporate monitor who will report regularly to the Justice Department. Under the DPA, the department will recommend the dismissal of the criminal information in five years, provided MoneyGram fully abides by the DPA’s terms.

The Fraud Scheme

According to court documents, starting in 2004 and continuing until 2009, MoneyGram violated U.S. law by processing thousands of transactions for MoneyGram agents known to be involved in an international scheme to defraud members of the U.S. public. MoneyGram profited from the scheme by collecting fees and other revenues on the fraudulent transactions.

The scams – which generally targeted the elderly and other vulnerable groups – included posing as victims’ relatives in urgent need of money and falsely promising victims large cash prizes, various high-ticket items for sale over the Internet at deeply discounted prices or employment opportunities as "secret shoppers." In each case, the perpetrators required the victims to send them funds through MoneyGram’s money transfer system.

Despite thousands of complaints by customers who were victims of fraud, MoneyGram failed to terminate agents that it knew were involved in scams. As early as 2003, MoneyGram’s fraud department would identify specific MoneyGram agents believed to be involved in fraud schemes and recommended termination of those agents to senior management. These termination recommendations were rarely accepted because they were not approved by executives in the sales department and, as a result, fraudulent activity grew from 1,575 reported instances of fraud by customers in the United States and Canada in 2004 to 19,614 reported instances in 2008. Cumulatively, from 2004 through 2009, MoneyGram customers reported instances of fraud totaling at least $100 million.

The USPIS and U.S. Attorney’s Office for the Middle District of Pennsylvania have been investigating and prosecuting telemarketing scams that used MoneyGram’s money transfer system and corrupt MoneyGram agents since 2007. To date, the U.S. Attorney’s Office for the Middle District of Pennsylvania has brought conspiracy, fraud and money laundering charges against 28 former MoneyGram agents.

Ineffective Anti-Money Laundering Program

MoneyGram’s involvement in this international fraud scheme resulted from a systematic, pervasive, and willful failure to meet its anti-money laundering (AML) obligations under the Bank Secrecy Act (BSA), a set of laws and regulations enacted by Congress to strengthen the U.S. financial system’s protections against criminal money laundering activity through financial institutions, including money services businesses like MoneyGram. Court documents show that MoneyGram failed to meet its AML obligations by, among other things, failing to:

Implement policies or procedures governing the termination of agents involved in fraud and/or money laundering;
Implement policies or procedures to file the required Suspicious Activity Reports (SARs) when victims reported fraud to MoneyGram on transactions over $2,000;
File SARs on agents MoneyGram knew were involved in the fraud;
Conduct effective AML audits of its agents and outlets;
Conduct adequate due diligence on prospective and existing MoneyGram Agents by verifying that a legitimate business existed; and
Sufficiently resource and staff its AML program.

MoneyGram’s BSA failures spanned five years, and resulted, among other things, from the failure of its fraud and AML compliance functions to share information and from its regularly resolving disagreements between its sales and fraud departments in the sales department’s favor. One notable such disagreement occurred in April 2007, when, at a meeting attended by senior MoneyGram executives, the fraud department recommended that 32 specific Canadian agents that were characterized as "the worst of the worst" in terms of fraud be immediately closed. The sales department disagreed with the fraud department’s recommendation, and these outlets were not closed; instead, MoneyGram continued to process transactions from the 32 outlets despite continued complaints of fraud.

This case was prosecuted by Money Laundering and Bank Integrity Unit Trial Attorney Craig Timm of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and Assistant U.S. Attorney Kim Douglas Daniel of the U.S. Attorney’s Office for the Middle District of Pennsylvania. The forfeiture was handled by Acting Assistant Deputy Chief Jeannette Gunderson of AFMLS’ Forfeiture Unit. The case was investigated by the Harrisburg, Pa., office of the USPIS, Philadelphia Division.

The Money Laundering and Bank Integrity Unit is a corps of prosecutors with a boutique practice aimed at hardening the financial system against criminal money laundering vulnerabilities by investigating and prosecuting financial institutions and professional money launderers for violations of the money laundering statutes, the Bank Secrecy Act and other related statutes.


 

INTERNATIONAL SPACE STATION NEWS FOR NOVEMBER 9, 2012

FROM: NASA

 

U.S. DEFENSE DEPARTMENT UPDATE ON RESPONSE TO HURRICANE SANDY

Photo Credit:  U.S. DOD.

FROM: U.S. DEPARTMENT OF DEFENSE

Pentagon Provides Sandy Response Update
American Forces Press Service
WASHINGTON, Nov. 9, 2012 - The Department of Defense is a fully integrated partner in the federal, state, and local response to Hurricane Sandy and the northeaster that swept through the mid-Atlantic and northeastern United States, defense officials reported today.

DOD still maintains significant capacity in the region to provide emergency temporary power and pumping capability and to distribute fuel, food, cold-weather clothing, and other comfort items as requested by civil authorities.

DOD's response to Hurricane Sandy continues, officials said. Significant updates over the past 24 hours, as of 11 a.m. EST, include:

DOD:
-- U.S. Northern Command has nearly 4,000 personnel supporting Hurricane Sandy relief operations in the affected area.

-- Air Force teams completed unwatering operations at Rockaway Wastewater Treatment facility, and East School in Long Beach, N.Y., and provided teams to support fire departments conducting unwatering operations in Breezy Point, N.Y.

-- Army divers repaired the pier system at Caven Point, N.J. Additionally, divers continue to assist the New York City Fire Department unwater the PATH tunnel at the World Trade Center and unwater the Long Beach High School and Recreation Center, N.Y.

-- Marines continued assessments with Army engineers in Far Rockaway, N.Y., and pumped 90,000 gallons of water from apartment buildings there. About 750,000 gallons were pumped from affected homes and parks in Breezy Point, N.Y.

-- Navy dive detachments continue to support the World Trade Center site and Marine Corps pump teams are assisting pumping operations at Breezy Point.

-- Helicopters from the 26th Marine Expeditionary Unit are transporting and relocating generators in the area at the direction of the Federal Emergency Management Agency. Navy Seabees and Marine personnel restored the beach at Coast Guard Station Sandy Hook; and supporting debris clearance operations at locations in Bayonne, N.J. and the Battery, N.Y.

Defense Logistics Agency:
-- More than 1.8 million gallons of fuel have been delivered to FEMA distribution points in the New York/New Jersey region. Nine generators were delivered to the Army Corps of Engineers to power apartment buildings in New York City. Seven more generators and seven transformers are en route. Seven additional generators have been provided to the New York City Housing Authority.

-- Contracts are in place to support waste water clean-up, hazardous material removal, and debris removal operations. Two contracts have been awarded for 330 roll-off dumpsters and 34 trucks for overland trash hauling. In the last 48 hours, 2.5 million pounds of debris have been removed.

Army Corps of Engineers:

-- More than 500 generators are now staged at forward locations.

-- A total of 570 power generation and restoration taskings have been received. Five-hundred forty-five assessments have been completed, three are in progress and 22 are not yet started.

National Guard:
-- There are 6,618 National Guard personnel from New York, New Jersey, Connecticut and West Virginia assisting in response and recovery efforts across their affected states.

-- The following states are supporting the response efforts through Emergency Management Agreement Compacts: Florida, Delaware, Georgia, Kansas, Massachusetts, Maine, Ohio, Pennsylvania and West Virginia.

-- Forty-seven chaplains and chaplain's assistants are providing trauma intervention/counseling, shelter visitations, worship services and other support.

-- There are 3,237 New York National Guard personnel on state active duty supporting relief operations in New York. Guardsmen have distributed 1,439,654 meals from 21 points of distribution sites since Nov 1. Fifty personnel are supporting Red Cross shelters at six sites in sites in Nassau County, N.Y. Guardsmen are also sorting and distributing donated goods from the Javits Center and delivering them to three points of distribution sites.

-- There are 1,957 New Jersey National Guard personnel on state active duty supporting relief operations in New Jersey. Since Nov. 1, the guardsmen distributed 12,590 blankets, 1,740 cots and 3,648 towels. Since Nov. 2, they also have distributed 93,229 gallons of fuel to emergency responders from four distribution points in support of FEMA and DLA. The New Jersey National Guard is providing tents and mobile kitchen trailers to shelter and feed emergency management personnel. Guardsmen continue to assist civil authorities at state-run shelters with transportation, meals, water and power generation in Middlesex, Monmouth and Ocean counties, at the Jersey City Armory, and in Glen Gardner borough. Unarmed Guardsmen are providing safety and security support to law enforcement agencies in Monmouth and Ocean counties.

-- The West Virginia National Guard has 364 personnel on state active duty conducting community assessments; medical evacuations; snow and debris removal; and food, water and generator distribution.