Tuesday, November 13, 2012

U.S. GENERAL DEMPSEY SAYS U.S. WILL HAVE 'MEASURED RESPONSE' TO IRAN


FROM:  U.S. DEPARTMENT OF DEFENSE

Dempsey: U.S. Will Make 'Measured Response' to Iranian Threats

By Jim Garamone
American Forces Press Service

ABOARD A MILITARY AIRCRAFT, Nov. 12, 2012 - The attempted shootdown of an unmanned U.S. Predator aircraft is the latest example of a pattern of disturbing behavior by Iran, and the United States will take "a measured response," the chairman of the Joint Chiefs of Staff said today.
In an interview during a travel leg of an overseas trip, Army Gen. Martin E. Dempsey said the Nov. 1 attack on the unarmed Predator intelligence, surveillance and reconnaissance aircraft over the Arabian Gulf was "clearly a hostile act."

An Iranian Frogfoot aircraft fired on the Predator at least twice, but the American craft escaped unharmed and returned to its base.

Iranian officials charge that the Predator was in Iranian airspace. "We're absolutely certain that we were within international airspace, so their attack on the unmanned Predator – despite their assertions otherwise – was clearly a hostile act against our assets," Dempsey said.

The U.S. government has informed the Iranian government that this behavior is unacceptable. The U.S. military will continue to fly these missions and will protect the aircraft, Dempsey said.
Iran is one of a few nations in the world that calculates its water boundaries using the "straight baseline assertion." Libya used this assertion in the mid-1980s to say it controlled the Gulf of Sidra in the Mediterranean Sea. The rest of the international community follows the 12-nautical-mile territorial water limit that follows the contours of the coastline.

"We've made it clear for decades, actually, that we don't accept Iran's straight baseline assertion," Dempsey said. "Were we to do so, it would make the space inside the Arabian Gulf so constricted that it would be unnavigable."

This latest incident in a long-line of disturbing activities by Iran is disturbing to U.S. officials, Dempsey said. Iran is a state sponsor of terrorism, he noted, supplying arms to Hezbollah. And Iranian officials "are sponsoring the Syrian regime, they traffic in arms and weapons, they are very active in cyber, and they are on a path – despite international pressure – to develop nuclear energy that could be weaponized," he said.

Iranian officials plotted to assassinate the Saudi Arabian ambassador on U.S. soil and have threatened to mine the Straits of Hormuz, a transit point for the world's oil.

The international community has imposed tough diplomatic and economic sanctions on Iran, and Dempsey said he believes the sanctions are working. He added that he does not know if the latest incident signifies a regime that is lashing out in frustration.

"It's very difficult to see inside a nation and see their intent," he said, "but there is clearly a pattern, and I think it's one we have to keep an eye on."

Monday, November 12, 2012

Media Availability with Secretary Panetta en route to Perth, Australia

Media Availability with Secretary Panetta en route to Perth, Australia

U.S. Department of Defense Armed with Science Update: Body Armor For Women

U.S. Department of Defense Armed with Science Update

U.S. ATTORNEY GENERAL HOLDER SPEAKS AT BALTIMORE UNIVERSITY SCHOOL OF LAW

U.S. Attorney General Eric Holder
FROM: U.S. JUSTICE DEPARTMENT
Attorney General Eric Holder Speaks at the Baltimore University School of Law
Baltimore ~ Thursday, November 8, 2012

Thank you, Ron. I appreciate those kind words, and I want to thank you and President Bogomolny – along with all of the faculty members, administrators, and students who are here with us today – for welcoming me to this vibrant campus, with your dramatic new Law School building under construction. It’s a pleasure to be here. And, especially during this historic week, it’s a privilege to be joined by so many current – and future – leaders of our nation’s legal community – men and women who will help to shape America’s course and to bring Americans together.

As members of this law school community, you are well – and uniquely – suited for such endeavors. History proves this. For more than eight decades, the University of Baltimore School of Law has served as an important meeting ground – where issues of consequence are discussed and addressed. It’s also become known as a training ground for distinguished attorneys, jurists, advocates, policymakers, and public servants. The track record you’ve built, and the reputation you’ve established, are impressive. And, with students like all of you – and educators like the outstanding professors who are with us today, including your new Dean – it’s easy to see why.

As you just heard, I had the pleasure of working closely with Ron during his tenure at the Justice Department, where he served as Assistant Attorney General for Legislative Affairs – a role widely considered to be one of the hardest jobs in all of government. That was especially true over the last three years. But our roots – and shared experiences – run even deeper. Ron and I are both native New Yorkers. We attended rival high schools – and both went to Columbia University as undergraduates.

To anyone who knows Ron, it’s clear that he is deeply grateful for the first-rate education that he received – from the second-best high school in New York, from Columbia, and from Yale Law School. And he recognizes that these learning opportunities paved the way for the remarkable career he has built – in private practice; on Capitol Hill, as chief counsel to the late Senator Ted Kennedy, and as principal legal advisor to the U.S. Senate Majority Leader; at our nation’s Justice Department; and, now, in academia. He also understands that with these extraordinary opportunities come important obligations – to help others recognize and realize their potential. This is why Ron is here. And this is what motivates his efforts to support the kind of inclusive academic environment – and foster the robust discussion and debate – for which this University has become known. Although we miss him in Washington, I can think of no one better to help train the next generation of lawyers, leaders, advocates, and public servants – whose service, and contributions, will help to keep the great American experiment in motion – and ensure that our nation can continue to carry out, and live up to, its founding ideals.

T he country we have inherited has been defined by the hard work and tremendous courage of those who, throughout our history, have chosen not just to devote themselves to studying the law, but also to advancing the cause of justice. These brave individuals – armed with the same training that you’re receiving – have served on the front lines of national efforts to abolish slavery and segregation, to guarantee decent wages for our workers, and to secure fundamental civil rights protections for all – regardless of race, religion, gender, economic means, social status, or sexual orientation. They’ve helped to draft – and safeguard – our founding documents; to shape – and improve – the greatest legal system in the world; and to maintain the strength and integrity of our most sacred institutions by securing, and expanding, the most basic right of American citizenship – the right to vote.

These are the issues that must continue to unite our profession – and our nation. Despite the divisions we may have felt in recent months, and the fierceness with which this year’s campaigns were contested, I am convinced that that the American people will come together, as they always have in times of difficulty, to advance the aspirations, and to honor the values, we share. Starting this week, we face a uniquely democratic moment of both healing and renewal – a time when all Americans, and especially our elected leaders, are called upon to join forces once again; to meet common challenges with shared resolve; and to carry forward the critical work that has always driven our pursuit of a more perfect Union.

As aspiring stewards of the law – and servants of those whom it protects and empowers –the students in this room have made an important commitment, and taken on very serious responsibilities. Already, you’re putting your legal training to work in assisting vulnerable tenants, disabled students, disadvantaged patients, and victims of crime – as well as nonprofits and neighborhood organizations. And you’re striving to realize the vision that has always shaped this University’s unique culture, and defined it as an institution founded on community involvement, dedicated to serving the public interest, and determined to foster increased diversity.

Along the way, you’re learning to build relationships with your peers and to engage in respectful debates with one another. You’re identifying the best ways to right wrongs, to address disparities, and to formulate solutions for problems that span across regions and even around the globe. And soon – whether you choose to build a career in private practice, join a corporation, teach, serve in government, or even run for public office – all of you will be called upon to fulfill the ideal that has always been at the center of your legal education and the heart of your chosen profession: not merely to serve clients or win cases, but to do justice.

I realize that’s an intimidating thought. But the fact that you’re here today proves that you’re not only up to the challenges that lie ahead – you welcome the chance to confront them. And that’s why I urge you to make a habit of public service; to seek to improve the lives of those around you; and to do everything in your power to help make your communities, and your country, stronger.

Despite the tremendous advances that have been made over the course of our nation’s history – and even within my lifetime – the reality is that significant obstacles, persistent disparities, and evolving threats remain before us. And you don’t have to look far to find them.

Today, in too many American neighborhoods, including many here in Baltimore, young people – especially young men of color – are more likely to be murdered than to die by any other cause. A majority of our children – 60 percent of them – have been exposed to violence at some point in their lives, either as victims or as witnesses. In total, more than 50 million Americans are eligible for federally-funded legal aid – but most cannot access it. Nearly 80 percent of civil legal needs go unmet. Countless lives and communities are devastated each year by fraud targeting homeowners, investors, and those who rely on essential federal health care programs. And systemic threats – from terrorism to climate change – continue to challenge our society, to endanger our people, and to spark conflict and division around the world.

These are just a few of the challenges that America’s current and future leaders will be called upon to address and overcome. There’s no question that they are daunting. And the stakes could hardly be higher. But you’ve been given a rare opportunity – the chance to make a profound difference. And, here at the University of Baltimore, you’re gaining the tools you’ll need to do just that.

Armed with the skills and knowledge that only a world-class legal education can confer –I’m certain that each of you soon will find that, just as surely as you’re coming of age in a moment of great consequence, you stand poised to lead our nation’s legal profession, and justice system, at a time of extraordinary promise.

In these efforts, I am proud to count each of you as partners. And, as our nation looks toward a new chapter in its history, you make me feel optimistic about the days ahead. I look forward to all that you must – and surely will – achieve together. And I want you to know that I am counting on you all – and that includes you, Dean Weich.

SECRETARY OF STATE CLINTON'S STATEMENT ON U.S. REELECTION TO THE UN HUMAN RIGHTS COUNCIL


FROM: U.S. STATE DEPARTMENT

United States Reelection to the Human Rights Council

Press Statement
Hillary Rodham Clinton
Secretary of State
Washington, DC
November 12, 2012

 

The United States is pleased to have been elected by the United Nations General Assembly to a second term on the Human Rights Council. We thank the countries that voted for us in what was a highly competitive race among several qualified Western candidates that are all strong champions of human rights. We pledge to continue to work closely with the international community to address urgent and serious human rights concerns worldwide and to strengthen the Council. While much hard work remains to be done, especially ending the Council’s disproportionate and biased focus on Israel, we look forward to cooperating with other Council members to continue to address human rights concerns and to ensure that the Council fully realizes its promise.

U.S. SECRETARY OF DEFENSE'S TRIP TO ASIA-PACIFIC


FROM: U.S. DEFENSE DEPARTMENT
Panetta's Asia-Pacific Trip Seeks to Broaden Rebalance
By Cheryl Pellerin
American Forces Press Service

HONOLULU, Nov. 12, 2012 - Defense Secretary Leon E. Panetta has begun a weeklong visit to three nations in the Asia-Pacific region, his fourth official trip to area that is the focus of a rebalance of time, attention and resources for the Defense Department.

The trip includes visits to Australia, Thailand and Cambodia, but for the secretary it began here yesterday on Veterans Day at the National Memorial Cemetery of the Pacific, also called the Punchbowl.

The cemetery rises above Honolulu on land that 75,000 years ago was a crater formed when hot lava gushed through cracks in ancient coral reefs.

Today it is the final resting place of soldiers, sailors, airmen and Marines from the Boxer Rebellion, the Korean War, World War II and Vietnam, as well as two astronauts and World War II correspondent Ernie Pyle, a Navy Reserve seaman third class killed by a Japanese sniper near Okinawa in 1945.

At the cemetery, veterans and their families formed a long line, waiting to shake hands and chat with the secretary of defense. Panetta laid a wreath at a monument, and then greeted the veterans and members of the color guard one by one and took a photograph with the crew of cemetery caretakers, all of them veterans.

When Panetta leaves Honolulu today, he will head to Perth, Australia, to attend the annual bilateral consultations between Australia and the United States.

There, he will join with Secretary of State Hillary Rodham Clinton, Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, and Navy Adm. Samuel J. Locklear III, commander of U.S. Pacific Command, in meetings with Prime Minister Julia Gillard and sessions of the conference.

Panetta also will meet with Defense Minister Stephen Smith and Western Australia Premier Colin Barnett.

During this first official trip to Australia, Panetta will express to the Australians his gratitude for their contribution to U.S. and coalition efforts in Afghanistan, officials said.

Earlier yesterday, aboard a military aircraft en route to Hawaii, a senior defense official told reporters traveling with the secretary that the United States "very much appreciates the Australians' commitment to Afghanistan, ... and we look forward to bringing that spirit of cooperation and interoperability to the Pacific as well in a greater capacity."

A key accomplishment this year for the U.S.-Australia partnership has been the start of Marine Corps and Air Force rotational deployments to northern Australia, the official said.

At the ministerial consultations, he said, "I think our primary objective is to make more progress on the Marine Corps and Air Force [deployments]."

Senior-level meetings will help to "move the ball forward and deepen the implementation," he added, "so we're going to try to keep this on track, as well as broaden our cooperation with the Australians."

Later this week in Bangkok, Panetta will meet with his Thai counterpart, Defense Minister Sukampol Suwannathat, and Prime Minister Yingluck Shinawatra.

This is the first visit of a secretary of defense to Thailand since 2008, the senior defense official said. "We enjoy great operational cooperation and access with the Thais, [and] we're trying to do is bring back this important strategic piece of the defense relationship," the official added. "That's our primary objective in Thailand."

After his meetings in Thailand, the secretary will travel to Siem Reap, Cambodia, where he will meet with Cambodian Defense Minister Gen. Tea Banh and with defense ministers from member countries of ASEAN, the Association for Southeast Asian Defense.

"It's a change to talk about how we would like to work with these countries on key nontraditional security threats, such as humanitarian assistance, disaster response, nonproliferation, counterpiracy and others, ... and how we can cooperatively tackle some of these transnational threats," the defense official said.

Panetta also could discuss regional cooperation, ASEAN unity, his recent trips to China and India, and U.S. fiscal pressures on the Defense Department, the official added.

The U.S. rebalance toward the Asia-Pacific region is building on relationships that have been going on for decades, the official said. "We've been in the Asia-Pacific for 60 or 70 years, and we have worked with friends, partners and allies to promote and maintain a system that has brought economic prosperity, security and in parts democracy to this region," he added.

The United States is inextricably tied to the region, he said, "and the whole point of the rebalance is to keep doing what we have been doing."

The rebalance is part of a process, the official noted. "We are playing the long game here," he said. "This is something that's going to take years to do, but it doesn't take away from the fact that ... we're off to a fast start.

"The resources are moving," he added, "the engagement of senior-level officials is there, and the bureaucratic weight and the time, attention and resources of the United States government are moving toward the Pacific theater."

RECENT U.S. NAVY PHOTOS





FROM: U.S NAVY
121108-N-BT887-022 PACIFIC OCEAN (Nov. 8, 2012) Sailors stand by as fuel lines are connected during a replenishment-at-sea aboard the aircraft carrier USS Nimitz (CVN 68). Nimitz is currently underway participating in the ship's joint task force exercise (JTFEX). (U.S. Navy photo by Mass Communication Specialist 2nd Class Benjamin Crossley-Released)




121107-N-LP801-044 PACIFIC OCEAN (Nov. 7, 2012) Aviation Boatswain's Mate (Handling) Airman Jordon Howard maneuvers a fixed-wing aircraft in the hanger bay of the aircraft carrier USS Nimitz (CVN 68). Nimitz is currently underway participating in the ship's joint task force exercise (JTFEX). (U.S. Navy photo by Mass Communication Specialist 3rd Class Raul Moreno Jr./Released)
 

Video Remarks on Refugees International

Video Remarks on Refugees International

RECENT FEMA PHOTOS


FROM: FEMA: HURRICANE SANDY
Leanardo, N.J., Nov. 8, 2012 -- Utility crews are working to restore power to communities in New Jersey that were devastated after Hurricane Sandy swept through the area. FEMA is working with state and local officials to assist residents who were affected by Hurricane Sandy. Photo by Patsy Lynch-FEMA




Long Beach, N.Y., Nov. 10, 2012 -- Representatives the FEMA led Federal Surge Crisis Response team inform Hurricane Sandy survivors, Long Beach, N.Y. residents of how to take advantage of FEMA's services. FEMA, Border Patrol, TSA and ICE visited homes to inform residents of FEMA services as part of the Federal Surge Crisis Response. (Photo by Mass Communication Specialist 3rd Class Patrick Ratcliff/Released)
 

ESA Portal - Italy - L'estate è arrivata nella base italo-francese in Antartide

ESA Portal - Italy - L'estate è arrivata nella base italo-francese in Antartide

U.S. PRESIDENT BARACK OBAMA LAYS WREATH AT "TOMB OF THE UNKNOWN"

President Barack Obama and Army Sgt. 1st Class Chad Stackpole lay a wreath to mark Veterans Day at the Tomb of the Unknowns in Arlington National Cemetery, Va., Nov. 11, 2012. Stackpole, sergeant of the guard for the tomb, is assigned to the 3rd U.S. Infantry Regiment, known as "The Old Guard." U.S. Army photo by Staff Sgt. Megan Garcia
FROM: U.S. DEPARTMENT OF DEFENSE
Obama Recognizes Veterans' Service, Sacrifice
By Amaani Lyle
American Forces Press Service

WASHINGTON, Nov. 11, 2012 - President Barack Obama laid a flowered wreath at the Tomb of the Unknowns today in a traditional display of remembrance and gratitude for every service member who has worn the nation's uniform.

Also attending the ceremony at Arlington National Cemetery were First Lady Michelle Obama, Vice President Joe Biden and his wife, Dr. Jill Biden, and Veterans Affairs Secretary Eric K. Shinseki.

"Each year, on the 11th day of the 11th month, we pause as a nation and as a people to pay tribute to you, to thank you, to honor you, the heroes over the generations who have served this country of ours with distinction," Obama said. He also acknowledged the toll taken on veterans' loved ones, who he said continue to "walk these quiet hills and kneel before a final resting place of those they cherish the most."

The president assured that the sacrifices of living and fallen veterans and their families and friends would never be forgotten.

"It is in that sacrifice that we see the enduring spirit of America. ... Since even before our founding, we have been blessed with an unbroken chain of patriots who have always come forward to serve," Obama said. "Time and again, at home and abroad, you and your families have sacrificed to protect that powerful promise that all of us hold so dear: life, liberty and the pursuit of happiness."

Though he acknowledged the gratitude of the nation, the president also noted that no ceremony, parade, hug or handshake is enough to truly honor veterans' service.

"We must commit this day and every day to serving you as well as you've served us," the president said.

Obama related the significance of today's service members, the 9/11 generation that "stepped forward after the towers fell and in the years since have stepped into history."

"You toppled a dictator and battled insurgency in Iraq," he said. "You pushed back the Taliban and decimated al-Qaida in Afghanistan. You delivered justice to Osama bin Laden."

These deeds drive the commitment to care for veterans, as more than a million warriors will transition back into civilian life over the next few years, the president said.

"This is the first Veterans Day in a decade in which there are no American troops fighting and dying in Iraq," the president said over applause, adding that 33,000 troops also have returned from Afghanistan.

"Our heroes are coming home. ... They'll take off their uniforms and take on a new and lasting role: they will be veterans," he said.

As veterans return, the president explained, it falls to Americans as fellow citizens to be there for them and their families as those who once wore the uniform now find new ways to serve.

"Some of our most patriotic businesses have hired and trained 125,000 veterans and military spouses," the president said.

He also pledged to maintain the 9/11 GI Bill, which has helped thousands of veterans pursue their education, including certifications, undergraduate, graduate and post-graduate degrees.

Obama also pledged to champion the cause of those who suffer invisible wounds of war, such as post-traumatic stress disorder. "No veteran should have to wait months or years for the benefits that you've earned, so we will continue to attack the claims backlog," Obama said.

And as the United States marks the 50th anniversary of the Vietnam War, the president said, the government has secured new disability benefits for veterans who fought there and were exposed to Agent Orange.

"We carry on knowing that our best days always lie ahead," Obama said. "You needed it, you fought for it, and we got it done."

U.S. ASSISTANT ATTORNEY GENERAL ANNOUNCES CHARGES AGAINST ARYAN BROTHERHOOD OF TEXAS LEADERSHIP

FROM: U.S. DEPARTMENT OF JUSTICE

Assistant Attorney General Lanny A. Breuer Speaks at Press Conference to Announce Charges Against Alleged Aryan Brotherhood of Texas Leaders

Houston ~ Friday, November 9, 2012

Good afternoon. Today, I am pleased to join U.S. Attorney Kenneth Magidson, Special Agent in Charge Melvin King, Special Agent in Charge Stephen Morris and numerous other federal, state and local law enforcement partners to announce a landmark indictment against the top leadership of the Aryan Brotherhood of Texas, or ABT – a violent and highly structured criminal enterprise operating throughout the state.

Earlier today, over 170 law enforcement agents swept across Texas and North Carolina, and arrested 14 of the 34 ABT members and associates named in the indictment. Fifteen defendants are already in custody, and five defendants remain at large. Today’s operations represent years of work by Justice Department prosecutors and agents in Washington, D.C., Texas and Oklahoma, and by our partners in state and local law enforcement. With this indictment, we have charged or convicted 72 ABT members and associates in federal court.

Today’s indictment represents a devastating blow to the leadership of ABT. As charged, ABT was founded in the 1980s as a "whites only," prison-based gang and is governed by a "constitution" that establishes a military-style organizational structure and a rigid code of conduct for gang members. At the top are five "generals," each of whom is responsible for a different region in Texas. Together, these "generals" comprise a steering committee known as the "wheel."

Four ABT generals are named in today’s indictment. Thirteen other alleged ABT leaders – with the rank of "major," "captain" or "lieutenant" – are also being charged today, along with numerous other gang members and associates.

Brutal beatings, fire bombings, drug trafficking and murder, are all part of ABT’s alleged standard operating procedure. As charged, ABT uses violence and threats of violence to maintain internal discipline, and to retaliate against those believed to be cooperating with law enforcement.

As an example, according to the indictment, alleged ABT leader Kelly Ray Elley and others ordered subordinates to kill a prospective ABT member, and to make the killing "as messy as possible," in order to send a message to gang members not to cooperate with law enforcement. Mr. Elley also allegedly ordered gang members to return the prospect’s severed finger as a trophy.

As another example, three named defendants allegedly burned an ABT tattoo off the arm of a fellow gang member because he failed to carry out a direct order.

The indictment further alleges three specific murders – one in 2001, one in 2002 and one in 2008 – along with kidnappings, cocaine and methamphetamine trafficking, and other crimes.

ABT, like other violent gangs, wreaks havoc – throughout the communities it terrorizes and in the lives of its members. Through violence and intimidation, ABT exerts control over prison populations and neighborhoods, and instills fear in those who come in contact with its members. The Criminal Division is determined, with its federal, state and local law enforcement partners, to continue disrupting and dismantling ABT and other violent criminal enterprises.

I am exceptionally proud of the prosecutors and agents who carried out today’s law enforcement operations and am privileged now to turn things over to my friend and colleague U.S. Attorney Magidson. Thank you

DEFENSE SECRETARY PANETTA'S MESSAGE FOR VETERANS DAY


FROM: U.S. DEPARTMENT OF DEFENSE
Panetta Salutes Veterans' Selflessness, Sacrifice
American Forces Press Service


WASHINGTON, Nov. 11, 2012 - As the nation observes the Veterans Day holiday, Defense Secretary Leon E. Panetta has issued a message paying tribute to the men and women who have served the United States in uniform.

Here is the secretary's message:

Since our nation's founding, brave young Americans from every generation have answered the call to serve in uniform and put their lives on the line to defend this country. Today, we honor all of those who've added new chapters to that very proud legacy of selflessness and sacrifice.

On this Veterans Day I recall how, as a boy in California, I had the great privilege of greeting and thanking soldiers that were stationed near my home and destined to fight in World War II. In the years that followed, I knew veterans of the Korean War, who fought bravely in unimaginably difficult conditions.

During the Vietnam era, I served in the Army and I remember how our nation failed to fully recognize the costs and sacrifices made by those who served in that war. Our nation has learned from that failure, and as we mark the 50th anniversary of that war, we honor our Vietnam veterans for all they have done for our country.

The United States is now emerging from the longest continuous time of war in its history, and a new generation of veterans is returning home. They have carried a very heavy burden. They've dealt with multiple deployments, long separations from loved ones, and the tragic consequences of war. Some have sustained grievous, life-altering injuries, and they are dealing with significant challenges, both seen and unseen.

Our veterans are also much stronger because of their hard won experiences in the deserts of Iraq, the mountains of Afghanistan, and elsewhere around the world. They are leaders who take responsibility and initiative, who think independently, and who inspire others. They are trained to operate some of the world's most sophisticated technical equipment. Above all, they love the country that they've served so well in uniform, and they are already giving back to their communities here at home.

Over the next five years, more than one million service men and women will leave the armed services and transition back to civilian life. Some will finally be able to marry the person they love and start a family. Others will be reunited with husbands, wives, and children after years spent apart. By pursuing the dream of giving their children a better life, our nation's veterans will help shape the future of this country. They will be doctors and lawyers, teachers and nurses, mayors and members of Congress.

America owes each of our veterans – from every generation – gratitude and support. November is Military Family Month, a time for all Americans to do more to recognize and support the members of their community who have fought on our behalf. For those who are transitioning out of military service, in particular, we must do everything we can to help them find a job, start a business, or obtain a quality education. These veterans are national assets who stand ready to contribute to our economic recovery and to a stronger America.

Let us all renew our pledge to fight for those who fight for us with such bravery and distinction. In some small way, today and every day, find a way to thank a veteran. Nothing means more to them than knowing that their service and sacrifice is appreciated right here at home. Thanks to our veterans, the American dream is safe and secure for us and our children.

Thank you, and may God bless all Americans serving around the world in uniform.

CORALS AND CHEMICAL SIGNALS FOR HELP

Goby fish in the genus Gobiodon-the fish are common coral reef residents in Fiji.
Credit-Wikimedia Commons

FROM:  NATIONAL SCIENCE FOUNDATION

Coral Reef 911: Corals Attacked by Seaweed Use Chemical Signals to Summon Help
November 8, 2012

Corals under attack by toxic seaweed do what anyone might when threatened--they call for help.

Results reported this week in the journal Science show that threatened corals send signals to fish "bodyguards" that quickly respond to trim back noxious algae, which can kill the coral if not promptly removed.

Scientists at the Georgia Institute of Technology found evidence that these "mutualistic" fish respond to chemical signals from the coral in a matter of minutes, like a 911 emergency call.

The inch-long fish--known as gobies--spend their entire lives in the crevices of specific corals, receiving protection from their own predators while removing threats to the corals.

"These findings illustrate the complexity of coral reef systems," said David Garrison, program director in the National Science Foundation's Division of Ocean Sciences, which funded the research. "This newly discovered relationship may be a key factor in the resilience of some coral species."

The symbiotic relationship between fish and the coral on which they live is the first known example of one species chemically signaling a consumer species to remove competitors.

It is similar to the symbiotic relationship between Acacia trees and mutualist ants, in which the ants receive food and shelter while protecting the trees from both competitors and consumers.

"This species of coral is recruiting inch-long bodyguards," said Mark Hay, a biologist at Georgia Tech and co-author of the paper. "There is a careful and nuanced dance of odors that makes all this happen.

"The fish have evolved to cue on the odor released into the water by the coral, and they very quickly take care of the problem."

The research was part of a long-term study of chemical signaling on Fiji Island coral reefs. It was aimed at understanding these threatened ecosystems and discovering chemicals that may be useful as pharmaceuticals.

The importance of large herbivorous fish to maintaining the health of coral reefs has been known for some time. They control the growth of seaweeds that damage coral.

But Georgia Tech scientist Danielle Dixson, also a co-author of the paper, suspected that the role of the gobies might be more complicated.

To study that relationship, she and Hay set up a series of experiments to observe how the fish would respond when the coral that shelters them was threatened.

They studied Acropora nasuta, a species in a genus of coral important to reef ecosystems because it grows rapidly and provides much of the structure for reefs.

To threaten the coral, they moved filaments of Chlorodesmis fastigiata, a species of seaweed that is particularly chemically toxic to corals, into contact with the coral.

Within a few minutes of the seaweed touching the coral, two species of gobies--Gobidon histrio and Paragobidon enchinocephalus--moved toward the site of contact and began neatly trimming away the offending seaweed.

"These little fish would come out and mow the seaweed off so it didn't touch the coral," said Hay.

"This takes place very rapidly, which means it must be very important to both the coral and the fish. The coral releases a chemical and the fish respond right away."

In corals occupied by the gobies, the amount of offending seaweed declined 30 percent over a three-day period, and the amount of damage to the coral declined by 70 to 80 percent.

Control corals that had no gobies living with them had no change in the amount of toxic seaweed and were badly damaged by it.

To determine what was attracting the fish, Dixson and Hay collected samples of water from several locations: near the seaweed itself where the seaweed was contacting coral and from coral that had been in contact with the seaweed 20 minutes after the seaweed was removed.

They released the samples near other corals that hosted gobies, which were attracted to the samples taken from the seaweed-coral contact area and the damaged coral, but not the seaweed by itself.

"We demonstrated that the coral is emitting some signal or cue that attracts the fish to remove the encroaching seaweed," Hay said. "The fish are not responding to the seaweed itself."

Similar waters collected from a different species of coral placed in contact with the seaweed did not attract the fish, suggesting they were only interested in removing seaweed from their host coral.

Finally, the researchers obtained the chemical extract of the toxic seaweed and placed it onto nylon filaments designed to simulate the mechanical effects of seaweed.

They also created simulated seaweed samples without the toxic extract.

When placed in contact with the coral, the fish were attracted to areas in which the chemical-containing mimic contacted the coral, but not to the area contacting the mimic without the chemical.

By studying the contents of the fish digestive systems, the researchers learned that one species--Gobion histrio-- actually eats the noxious seaweed, while the other fish apparently bites it off without eating it.

In the former, consuming the toxic seaweed makes the fish less attractive to predators.

The two species of fish also eat mucus from the coral, as well as algae from the coral base and zooplankton from the water column. By defending the corals, the gobies are defending the home in which they shelter and feed.

"The fish are getting protection in a safe place to live and food from the coral," Hay said. "The coral gets a bodyguard in exchange for a small amount of food.

"It's kind of like paying taxes in exchange for police protection."

As a next step, Hay and Dixson plan to determine whether other species of corals and fish have similar symbiotic relationships.

The research was also supported by the National Institutes of Health and the Teasley Endowment at Georgia Tech.

-NSF-

Sunday, November 11, 2012

BUCKLEY AIR FORCE BASE POWERS FORWARD TOWARD ENERGY GOALS

Space supports
Space Duty Technician Staff Sgt Cristina Kavanagh, deployed from Buckley Air Force Base, Colo., and Space Duty Officer 1st Lt. Tanya Frazier, deployed from F.E. Warren AFB, Wyo., provide space-based theatre ballistic warning to U.S. forces in the Southwest Asia theatre from the Combat Operations Space Cell inside the Combined Air Operations Center. They also run Global Positioning Satellite predictions to ensure GPS accuracy and support Personnel Recovery/Combat Search and Rescue missions when necessary via space support. (U.S. Air Force photo by Master Sgt. Scott Wagers)


FROM: U.S. AIR FORCE SPACE COMMAND
Buckley endeavors to meet, exceed energy goals
by Staff Sgt. Kali L. Gradishar
460th Space Wing Public Affairs


11/1/2012 - BUCKLEY AIR FORCE BASE, Colo. -- For a base with a main mission that requires immense power sources and an abundance of electricity, the task of reducing energy consumption is no easy feat. However, Buckley is on par with researching the latest and greatest in efficient technologies and implementing them if found cost effective.

"The Air Force is known for its innovation, and researchers and scientists in our labs are working diligently to help develop the game-changing technologies that will be essential to future operations," said Secretary of the Air Force Michael B. Donley at the National Clean Energy Summit 5.0 - Power of Choice in Las Vegas in August.

"Experts in the 460th Civil Engineer Squadron are doing their part as they research efforts in the commercial industry, new and improved technologies, and initiatives within Air Force Space Command," said Ken Webb, 460th CES energy manager. "They explore how much energy the technology saves and if such schemes are employable at Buckley. They also research how much it would cost to run and if the technology is cost effective."

All efforts to reduce Buckley's use of resources fall in line with requirements to reduce energy and water consumption.

"Per federal mandates and Defense Department guidance, we have to reduce energy (intensity) by 30 percent by 2015 and water (intensity) by 26 percent by 2020," Webb said. "That's an intensity metric. It's not necessarily a complete reduction. Since Buckley Air Force Base is growing - we get new base partners and we're also growing the mission - the goal is to build new energy-efficient facilities.

"By building low energy-intensity buildings," Webb noted, "we're being more responsible with the energy we consume."

Webb explained that Buckley is trying to exceed mandated goals to bolster command-wide achievements. Within AFSPC, Buckley accounts for four percent of energy usage.

"In terms of energy efficiency and intensity we're actually below the Air Force average, and we're one of the more energy efficient bases in Space Command currently," Webb said. "Our concern now is energy demand - reducing our consumption during peak periods."

Reducing peak-hour energy consumption can be especially important in a four-season state where residents see all types of weather. Buckley's location requires extra consideration for heating and cooling technology and costs to accommodate for both cold and hot temperatures.

"We see all temperature ranges, for the most part, so we have to be prepared for hot climates and cold climates," Webb explained. "That increases our workload. Geographical location makes us have to be more creative for renewable technologies."

Projects recently completed and those currently being implemented create a more energy-thrifty installation.

Solar panels topping some base buildings and a solar field supply a portion of the energy for the base. Programmed systems regulate temperatures during off times to reduce heating costs. Also, new LED lights now line Aspen Street. The rest of the 460th Space Wing parking lot and street lights will gradually follow suit.

"After replacing nearly 500 light fixtures on base, expected savings from the LED project alone reach $42,000 a year," Webb said. "With the solar panels, temperature regulation and LED lighting projects, you can find a lot of buildings have subtle technologies added to them."

Less subtle is the potential project to update the Buckley Exchange. Tested previously at shoppettes in the continental U.S., energy-minded professionals brainstormed and implemented ways to make the quick-stop shops less of an energy sponge.

"Estimated savings in the shoppettes was around 30 to 40 percent. They ended up receiving about 45 percent actual savings, and now they're rolling out those changes that they made to 270 or so shoppettes across the CONUS," Webb noted. "There is hope that if they get the same sort of results at the Buckley Exchange, we'll have one of the most efficient exchanges in the Air Force.

Another major project currently funded for design under the energy manager's scope is a geothermal system shared between 10 AFSPC facilities, a potential endeavor should it prove cost effective after design and analysis.

"Not only is it a shared geothermal system, it also shares the heating, ventilation and air conditioning system already installed," Webb explained. "It's developing five technologies into one project."
"We're still developing, so it's not 100 percent, but it's what we like to call our second generational projects. We're trying things that are more unique," Webb said. "We feel that the need to be creative on an already energy-efficient base is what we should be doing."

While there are a number of highly technical and large projects ongoing to decrease resource consumption, all Team Buckley members can contribute to consumption reduction efforts.

"Air Force driven initiatives are important, but it is critical to remember that Airmen play a key role in achieving our energy objectives," Donley said during the National Clean Energy Summit. "We will look to their continued creativity and focus on energy to obtain an assured energy advantage in air, space, and cyberspace."

Webb advises people to practice basic energy-saving habits such as turning off lights when not in the room and turning off monitors at the end of the day or when not in use. Offices should also consolidate appliances in the work center and consider replacing old, inefficient appliances if possible, he said. Using windows for lighting when feasible during the day can also reduce electricity usage.

"Additionally, people can report any deficient items, such as leaking water fixtures and improper lighting, their facility managers who then report to the 460th CES customer service. For example, a leaking toilet can waist more than 35,000 gallons, equating to approximately $400 per month," Webb added.

Across the board, the energy manager works with a team of professionals to ensure Buckley is taking the right steps to becoming as energy efficient as possible.

"We're looking at our mission operations and how we can do it more efficiently, and that's a big part of Air Force Space Command as a whole," Webb noted. "We know we can, but the question is how. That's the next big hurdle for us."

 

 

 

DVIDS - Video - Wreath Laying Ceremony

DVIDS - Video - Wreath Laying Ceremony

U.S. SECRETARY OF STATE CLINTON'S REMARKS AT THE PARTNERSHIP MEETING ON WILDLIFE TRAFFICKING

Photo Credit:  CIA World Factbook.

FROM: U.S. DEPARTMENT OF STATE

Remarks at the Partnership Meeting on Wildlife Trafficking
Remarks
Hillary Rodham Clinton
Secretary of State
Benjamin Franklin Room
Washington, DC
November 8, 2012

Thank you very much. Thank you. Thank you all very much. Well, it’s a great delight to see all of you here. And as I look out on this audience, I see many familiar faces from the diplomatic community. And I especially thank each and every one of you for being here on this important issue.

Congressman Moran, thank you for joining us today. I’d also like to welcome Deputy Administrator Steinberg from USAID, Naoko Ishii of the Global Environmental Facility. Thanks to Under Secretary Bob Hormats for his commitment to this issue, along with Under Secretary Maria Otero and Under Secretary Tara Sonenshine and Assistant Secretary Kerri-Ann Jones, and many others here in the State Department, and particularly all of you from the conservation and wildlife community and the private sector who have been involved in this issue for many years and have done extraordinary work. Unfortunately, we now find ourselves with all of that positive effort that started 30, 40 years ago being affected by changes that we have to address at every level of the international community.

Now, some of you might be wondering why a Secretary of State is keynoting an event about wildlife trafficking and conservation, or why we are hosting this event at the State Department in the first place. Well, I think it’s because, as Bob Hormats has just pointed out, and as the public service announcements reinforce, over the past few years wildlife trafficking has become more organized, more lucrative, more widespread, and more dangerous than ever before.

As the middle class grows, which we all welcome and support, in many nations items like ivory or rhinoceros horn become symbols of wealth and social status. And so the demand for these goods rises. By some estimates, the black market in wildlife is rivaled in size only by trade in illegal arms and drugs. Today, ivory sells for nearly $1,000 per pound. Rhino horns are literally worth their weight in gold, $30,000 per pound.

What’s more, we are increasingly seeing wildlife trafficking has serious implications for the security and prosperity of people around the world. Local populations that depend on wildlife, either for tourism or sustenance, are finding it harder and harder to maintain their livelihoods. Diseases are spreading to new corners of the globe through wildlife that is not properly inspected at border crossings. Park rangers are being killed. And we have good reason to believe that rebel militias are players in a worldwide ivory market worth millions and millions of dollars a year.

So yes, I think many of us are here because protecting wildlife is a matter of protecting our planet’s natural beauty. We see it’s a stewardship responsibility for us and this generation and future generations to come. But it is also a national security issue, a public health issue, and an economic security issue that is critical to each and every country represented here.

We all, unfortunately, contribute to the continued demand for illegal animal goods. Wildlife might be targeted and killed across Asia and Africa, but their furs, tusks, bones, and horns are sold all over the world. Smuggled goods from poached animals find their way to Europe, Australia, China, and the United States. I regret to say the United States is the second-largest destination market for illegally trafficked wildlife in the world. And that is something we are going to address.

Now, several conservation groups are here with us today, and we greatly appreciate their invaluable work. But the truth is they cannot solve this problem alone. None of us can. This is a global challenge that spans continents and crosses oceans, and we need to address it with partnerships that are as robust and far-reaching as the criminal networks we seek to dismantle.

Therefore, we need governments, civil society, businesses, scientists, and activists to come together to educate people about the harms of wildlife trafficking. We need law enforcement personnel to prevent poachers from preying on wildlife. We need trade experts to track the movement of goods and help enforce existing trade laws. We need finance experts to study and help undermine the black markets that deal in wildlife. And most importantly, perhaps, we need to reach individuals, to convince them to make the right choices about the goods they purchase.

Now, there’s no quick fix, but by working closely, internationally, with all of these partners, we can take important steps to protect wildlife in their environments and begin to dry up the demand for trafficked goods. So with these goals in mind, the State Department is pursuing a four-part strategy.

First, on the diplomatic front, we are working with leaders from around the world to develop a global consensus on wildlife protection. I spoke with President Putin, Ambassador, when we were together at the APEC summit in Vladivostok. He has been a staunch, vocal, public supporter of Russian wildlife. And I think it’s fair to say his personal efforts over the last years have made the lives of tigers in Russia much safer. There’s still poaching, but at least there is a commitment from the highest level of the Russian Government to protect the wildlife of Russia. In fact, when I was in Vladivostok, there were posters everywhere with tigers on the pictures on the lampposts and walls and everywhere we looked, reminding people that this was an important issue to Russia and the Russian Government. And I worked – I had the great privilege of working with President Putin and the other leaders there to make sure that the leaders’ statement that was issued included, for the first time ever, strong language on wildlife trafficking.

Now, Undersecretaries Bob Hormats and Maria Otero have met with African and Asian leaders to discuss the immediate actions needed to thwart poachers. Next week, President Obama and I will personally bring this message to our partners in ASEAN and the East Asia Summit when we meet in Phnom Penh.

We are also pressing forward with efforts to protect marine life. And last week, we joined forces with New Zealand to propose the world’s largest marine protected area, the Ross Sea region of Antarctica. And we hope to gain support from the international community as this important proposal moves forward.

We’re strengthening our ability to engage diplomatically on these and other scientific issues. Building scientific partnerships is an important tool in addressing such global challenges. That’s why I’m pleased to announce our three new science envoys, Dr. Bernard Amadei of the University of Colorado, the founder of Engineers Without Borders; Dr. Susan Hockfield, the former president and currently faculty member of the Massachusetts Institute of Technology; and renowned evolutionary biologist Dr. Barbara Schaal of Washington University in St. Louis. Are these three scientists with us today? Are they? Okay. But I think it’s working to create a scientific consensus and very preeminent scientists from across the world speaking out that is one of the important steps that we are urging partners to join with us in doing.

Secondly, we are reaching beyond governments to enlist the support of people. As part of this effort, Under Secretary Tara Sonenshine, our Under Secretary for Public Diplomacy, is spearheading a global outreach campaign which we will launch December 4th on Wildlife Conservation Day. Our embassies will use every tool at their disposal to raise awareness about this issue, from honoring local activists, to spreading the word on Facebook and Twitter. We want to make buying goods, products from trafficked wildlife, endangered species unacceptable, socially unacceptable. We want friends to tell friends they don’t want friends who ingest, display, or otherwise use products that come from endangered species anywhere in the world.

Third, we’re launching new initiatives to strengthen and expand enforcement areas. USAID has already provided more than $24 million over the past five years on a range of programs that combat wildlife crimes. Last year, they launched the ARREST program, which is establishing regional centers of expertise and expanding training programs for law enforcement. We really want to work with all of you, and we want both from countries that are victimized by trafficking to countries where consumers are the end-buyers of such products.

Finally, this is a global issue, and it calls, therefore, for a concerted global response. So I hope every government and organization here today will join the Coalition Against Wildlife Trafficking. That is the global partnership for sharing information on poachers and illicit traders. We’ll also be convening meetings with traditional stakeholders like NGOs and governments and with less traditional stakeholders like air and cruise line companies to discuss new potential partnerships.

Some of the most successful initiatives we’ve seen so far are the regional wildlife enforcement networks. These networks are critical to strengthening protection efforts and enhancing cooperation among key countries. To build on these efforts, today I’m calling for the creation of a global system of regional wildlife enforcement networks to take advantage of those networks that already are operating and the lessons we have learned from them. The sooner we get this off the ground, the better, and to that end, the State Department is pledging $100,000 to help get this new global system up and running.

I want to mention one last step we’re taking. Trafficking relies on porous borders, corrupt officials, and strong networks of organized crime, all of which undermine our mutual security. I’m asking the intelligence community to produce an assessment of the impact of large-scale wildlife trafficking on our security interests so we can fully understand what we’re up against. When I was in Africa last summer, I was quite alarmed by the level of anxiety I heard from leaders. It is one thing to be worried about the traditional poachers who come in and kill and take a few animals, a few tusks, a few horns, or other animal parts. It’s something else when you’ve got helicopters, night vision goggles, automatic weapons, which pose a threat to human life as well as wildlife. Local communities are becoming terrified. Local leaders are telling their national leaders that they can lose control of large swaths of territory to these criminal gangs. Where criminal gangs can come and go at their total discretion, we know that begins to provide safe havens for other sorts of threats to people and governments.

So I think we have to look at this in a comprehensive, holistic way. And there’s something for everybody. If you love animals, if you want to see a more secure world, if you want our economy not to be corrupted globally by this kind of illicit behavior, there is so much we can do together. After all, the world’s wildlife, both on land and in our waters, is such a precious resource, but it is also a limited one. It cannot be manufactured. And once it’s gone, it cannot be replenished. And those who profit from it illegally are not just undermining our borders and our economies. They are truly stealing from the next generation. So we have to work together to stop them and ensure a sustainable future for our wildlife, the people who live with them, and the people who appreciate them everywhere.

So let me thank you all for being here. I really appreciate the turnout, and it means a great deal and the fact that so many ambassadors are here representing their countries – and I particularly want to thank our colleagues, the Ambassador of Kenya, the Ambassador from Indonesia, for taking a leading role in this effort. We want to hear your ideas. These are our ideas, but we really are soliciting your ideas – what works, what can we do better, how can we make a difference. Let’s put the poachers out of business and build a more secure and prosperous world for all of us, and particularly for children generations to come.

Thank you, all. (Applause.)

U.S. Department of Defense Armed with Science Update

U.S. Department of Defense Armed with Science Update

MARINE BROTHERS REUNITE IN AFGHANISTAN

Marine Corps Capt. Dustin Kerlin recently reunited with his brother, Marine Corps Lt. Col. Matthew Kerlin for a mission in Afghanistan. U.S. Marine Corps photo by Cpl. Timothy Lenzo
FROM: U.S. DEPARTMENT OF DEFENSE
Face of Defense: Brothers Share Family Time in Afghanistan

By Marine Corps Cpl. Timothy Lenzo
Regional Command Southwest

CAMP BASTION, Afghanistan, Nov. 6, 2012 - A pair of Marine Corps brothers had a chance to get together briefly before an operation over Afghanistan's Helmand province.

Capt. Dustin Kerlin, a pilot with Medium Tiltrotor Squadron 161, recently enjoyed flying with his brother, Lt. Col. Matthew Kerlin.

Matthew, an embedded training team deputy commander, arrived here before the operation. Family members do not often deploy together, and his brother appreciated the opportunity.

"Getting to meet up with my brother in Afghanistan was the highlight of my career," Dustin said. "It was great to get to see him."

The brothers, from Albion, Ind., reunited on the flightline for a brief meeting before a joint operation with the two units to transport service members into Helmand province.

"I am thankful any time I get to see a member of the family," the elder brother said, "even if it is for only 20 minutes on a flightline in Afghanistan."

The brothers do not see each other often. Their family is scattered across the United States making it difficult to meet.

"It was great to see him," Dustin said. "My brother has always been a mentor personally and professionally for me."

Like many families, the brothers picked up right where they left off. Though years had passed since the last time they saw each other, they said, it was easy to be themselves with one another.

The rest of the Kerlin family was shocked, but pleased, to hear the brothers got to work together.

"Being dispersed across the U.S. makes it even better when we have a chance to get together," Matthew said.

While the chance to work together surprised the two Marine pilots, the fact that they both chose to be pilots did not surprise anyone. Their father had his private pilot's license and took them flying when they were children. This sparked their love for flying at a young age.

"As long as I can remember, he would take us up in his plane," Dustin said. "We would fly low by the house [and] do tricks like stalls and go to air shows."

For the brothers, the experiences shaped their lives.

"He is the reason I am a Marine pilot, and it's also his fault I am a helicopter pilot," Matthew said. "Flying is his passion, and his knowledge of military aircraft is incredible."

When Matthew was a young teen, he went to a small airport that had an old Bell 47, a two-bladed, light helicopter. He paid $100 and experienced his first helicopter flight.

Whether it was taking rides in helicopters or flying by their house, the two Marines were hooked. Now, many years later and thousands of miles away from their hometown, the brothers got an early holiday gift. For the one operation they flew together, the Afghanistan skyline temporarily replaced the Indiana landscape of their childhood.

SEC CHARGES HEDGE FUND MAMAGER IN BATON ROUGE, LA., WITH DEFRAUDING INVESTORS


Credit:  Wikimedia Commons
FROM: SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., Nov. 8, 2012 — The Securities and Exchange Commission today charged a hedge fund manager in Baton Rouge, La., with defrauding investors by hiding millions of dollars in losses suffered during the financial crisis from investments tied to residential mortgage-backed securities (RMBS).

The SEC alleges that Walter A. Morales and his firm Commonwealth Advisors Inc. caused the hedge funds they managed to buy the lowest and riskiest tranches of a collateralized debt obligation (CDO) called Collybus. They sold mortgage-backed securities into the CDO at prices they had obtained four months earlier while knowing that the RMBS market had declined precipitously in the meantime. As the CDO investments continued to perform poorly, Morales instructed Commonwealth employees to conduct a series of manipulative trades between the hedge funds they advised (called cross-trades) in order to conceal a $32 million loss experienced by one of the funds in its Collybus investment. Morales and Commonwealth lied to investors about the amount and value of mortgage-backed assets held in the hedge funds, and they created phony internal documents to justify their false valuations.

"Morales and Commonwealth Advisors concealed significant hedge fund losses from investors, including pension fund investors, instead of owning up to them and facing the consequences," said Robert Khuzami, Director of the SEC’s Division of Enforcement. "Investors put their fundamental trust in the hands of their investment adviser, and they deserve better than being manipulated and lied to through deceptive trades and phony documents."

According to the SEC’s complaint filed in U.S. District Court for the Middle District of Louisiana, Commonwealth’s hedge fund clients included pension funds and individual investors. Morales and Commonwealth invested a significant portion of hedge fund assets in RMBS. When the mortgage markets began to decline dramatically in 2007, bond rating agencies began to aggressively downgrade subprime RMBS. Therefore, Commonwealth clients were sustaining heavy investment losses and Morales knew those losses would probably continue.

The SEC alleges that rather than come clean with investors, Morales directed Commonwealth to execute more than 150 deceptive cross-trades from two hedge funds they advised to another one of their hedge funds in June 2008 at prices below Commonwealth’s own valuation for those securities. After the trades, Morales directed a Commonwealth employee to mark the securities at fair market value, which created a fraudulent $19 million gain for the acquiring hedge fund at the expense of the funds that sold. Morales ordered the cross-trades even though Commonwealth had represented in forms filed with the SEC that it would not execute such trades between these hedge fund clients. Moreover, when the trades raised concern from the prime broker, Morales falsely represented that the transactions were for a legitimate business purpose and at prevailing market prices.

The SEC further alleges that Morales deceived Commonwealth’s largest investor about its exposure to the CDO. Morales agreed to limit the investor’s exposure to Collybus through its investment in a particular Commonwealth hedge fund to 10 percent of that hedge fund’s equity. Morales, however, abided by this agreement only temporarily, and the investor’s exposure to Collybus more than doubled by mid-2008. After the large investor learned that Commonwealth was not following its stated valuation procedures, the investor requested valuation committee meeting minutes to review. Morales prepared false minutes that were delivered to the investor purporting to describe meetings that never occurred.

The SEC’s complaint charges Morales and Commonwealth with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8. The SEC also alleges that Commonwealth violated Sections 204, 206(4), and 207 of the Advisers Act and Rules 204-2, 206(4)-2, and 206(4)-7, and that Morales aided and abetted Commonwealth’s violations of Section 10(b) of the Exchange Act, Rule 10b-5, and Sections 204, 206(1), 206(2), 206(4), and 207 of the Advisers Act and Rules 204-2, 206(4)-2, 206(4)-7, and 206(4)-8. Morales was a controlling person of Commonwealth pursuant to Section 20(a) of the Exchange Act, and is therefore liable as a control person for Commonwealth’s violations of the Exchange Act.

The SEC’s investigation, which is continuing, has been conducted by Gary M. Zinkgraf, Carol E. Schultze, Jacob D. Krawitz, and Paul Gunson in coordination with members of the SEC Enforcement Division’s Structured and New Products Unit and Asset Management Unit. Matthew Rossi and Jan Folena will handle the SEC’s litigation.

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