U.S. ARMY CYBER COMMANDER DISCUSSES TRANSFORMATION

Lt. Gen. Rhett A. Hernandez, commanding general for the Army Cyber Command, discusses the Army’s transformation to a joint-information environment during a Cyber and LandWarNet panel at the Association of the United States Army annual meeting.
 

FROM: U.S. DELPARTMENT OF DEFENSE
ARMED WITH SCIENCE
by jtozer
ARCYBER Working To Build Joint-Info Environment

The opportunities and challenges cyberspace presents have changed not only the way the world operates, but also the
Army, service officials said Tuesday.

Army leaders addressed the growing arena of cyberspace and the threats it presents during the "Cyber Domain and LandWarNet: Powering the Army" panel at the Association of the United States Army annual meeting.

"(Cyber) threats are real, growing, sophisticated and evolving," said Lt. Gen. Rhett A. Hernandez, commanding general for the Army Cyber Command. He led the panel, which discussed the Army’s transformation to a joint-information environment.

Collectively, the cyber threats facing the Army create a "dynamic and dangerous" environment, Hernandez said. The force has had to change the way it thinks about cyberspace to continue to guarantee versatility, agility and depth to "prevent, shape and win," he explained.

To prevent conflict, the Army needs to deter and influence potential enemies through a modernized force ready to conduct a full range of cyberspace operations, Hernandez continued. If prevention fails, the Army needs to be ready to rapidly apply its combined arms capabilities to win.

"In cyberspace, the significant advantage will go to the side that can protect and secure critical information as well as gain and exploit advantages," he said.

Chief Information Officer and G-6 Lt. Gen. Susan S. Lawrence agreed, stating that the current cyber operational environment is disjointed and difficult to mobilize or integrate, and the Army cannot afford to continue to operate in that environment.

The joint information environment the Army is working toward will be key in maintaining dominance in the cyber arena, Lawrence said.

It will provide the ability to deploy with little to no notice into any theater; allow installations to be used as docking stations, which will enable soldiers to take their technology and train anywhere; it will allow a modernized force from the "strategic core" to the "tactical edge" and provide a single, secure network with centralized management and decentralized execution, she said.

said.
"We have got to able to, in any type of combat or spectrum of operations, have technology overmatch against any enemy, and getting to this environment will allow us to do that," Lawrence said.
The G-6 is aligning LandWarNet with the joint information environment, working toward a single, secure-based, versatile environment that is ready to deploy at any time. , Lawrence said the four lines of operation the G-6 is working through are:
– building technological capacity
– improving cyber security
– providing enterprise services to the tactical edge
– enforcing network standards

"Our energy is shifting to an active defense while moving us to a joint information environment, which will strengthen our ability to operate and defend our networks," Hernandez said.

The cyberspace environment requires quite a bit of support from throughout the Army. Lt. Gen. Mary A. Legere, deputy chief of staff for the G-2, was on hand to discuss Army’s intelligence role.

"(Intelligence) provides the kinds of capabilities necessary to support the mission," Legere said, "and the kinds of capabilities that General Hernandez needs to defend the networks and, as required, to conduct full-spectrum operations on behalf of other Army commanders are quite unique. They aren’t something we have parked in motor pools."

The community’s job is to develop an intelligence corps that has the right capabilities, and develop cyber forces that are appropriate to the mission in the cyber domain, she said.
"It is a conscious development of some of the brightest and most skilled soldiers and civilians we’ve ever attempted to create," Legere said.
"The reality is this is a very dynamic, challenging environment that we’re in and it’s going to require a kind of agility we’ve never seen before, machine-to-machine agility — soldiers and leaders that are capable of making quick decisions and policies that are responsive," Legere said.

Another key organization in supporting Cyber Command is the Space and Missile Defense Command/Army Forces Strategic Command.

Cyberspace and space are separate domains, Lt. Gen. Richard P. Formica, SMDC, explained, but they are linked. Space enables the delivery of cyber signals, while cyberspace supports space operations through enabling payloads of systems. They both rely on the intelligence community and the joint information environment.

"They are both information-centric and information-enabled and they share network systems, and in some cases physical infrastructures. As I said, both Space and Cyber are global warfighting domains with distinctive space and cyber military activities that occur in those domains," Formica said.

"I don’t envision a cyber war, or a space war, but rather the delivery and application of both space and cyber effects in support of joint and unified land operations," he said.

By Jacqueline M. Hames

INFORMATION TECH AND THE FUTURE OF U.S. DOD'S TRANSCOM

Personnel assigned to the 618th Tanker Airlift Control Center coordinate with aircrews, maintenance personnel and aerial porters around the world from the unit's operations floor at Scott Air Force Base, Ill. The center makes global reach a reality by transforming requirements into effective missions through the planning, tasking and execution of a fleet of more than 1,200 mobility aircraft in support of combat delivery and strategic airlift, air refueling and aeromedical evacuation operations around the world. DOD photo by Robert Fehringer

FROM: U.S. DEPARTMENT OF DEFENSE

IT Plays Central Role in Transcom's New Strategy
By Donna Miles
American Forces Press Service
SCOTT AIR FORCE BASE, Ill., Nov. 13, 2012 - Shaping itself for the future as it implements its new five-year strategy, U.S. Transportation Command is maximizing what one of its senior officers calls the ultimate enabler: information technology.

Information technology is the driver that keeps the wheels of Transcom's global transportation and distribution enterprise turning, Air Force Brig. Gen. Gregory J. Touhill, the command's director of command, control, communications and cyber systems, told American Forces Press Service.

"There is not one single organization in this command or its components that does not rely on information technology," said Touhill, Transcom's self-described "head geek."

"We share a lot of information in order to choreograph the many movements that Transcom makes ... on behalf of the nation," Touhill said. "And it is all reliant on getting the right information to the right people at the right time, in a trusted manner.

"In fact," Touhill added, "some would argue that information technology provides the fuel for this command."

Among those proponents is Air Force Gen. William M. Fraser III, Transcom's commander. He puts such a high emphasis on IT's value to the mission that he made IT management excellence one of the four pillars in his new strategy.

"As we look at our strategy of how we are going to get better to meet the demands of the future, it is all built upon a foundation of having solid information so that decision makers have the right information to make informed and valued decisions in a spirit of collaboration and partnership," Touhill said.

That requires rethinking the whole way Transcom approaches information technology. One of the first steps is evaluating the 77 major IT systems Transcom's headquarters and its components currently operate across 16 discrete networks, to the tune of about $500 million a year.

"We are working as a team with our components and within the headquarters here, looking at opportunities to consolidate where it makes sense, retire some old and inefficient systems and perhaps birth some new capabilities using some of the latest techniques and technologies," Touhill said.

Some of the systems being evaluated, like a logistics system from 1972 used to maintain Transcom's inventories, still perform beautifully, he said. But many could work just as well -- even better and more securely -- if they were migrated onto platforms that also cost less to operate and maintain.

They key to the whole initiative, Touhill said, is standardization: standardized views, information exchanges, architectures and delivery.

Transcom relies on multiple portals to exchange vast quantities of information with customers and the components and commercial partners that provide the aircraft, ships, ground vehicles and other assets that support the mission.

Adopting a standard language -- most likely, the universally recognized Extensible Markup Language, or XML -- would reduce maintenance costs while streamlining the process. Touhill said it also would better position Transcom to leverage industry-wide best practices.

Similarly, Touhill wants to introduce more Web technologies to replace the service-oriented architectures used to link these multiple communications systems. This could dramatically reduce costs, he said, eliminating the need to maintain interfaces that cost about $100,000 apiece to maintain each year.

Air Mobility Command, Transcom's air component, already has started adopting this practice, one that's been proven across the business world, Touhill noted.

Meanwhile, Transcom is exploring ways to standardize the way it delivers information, eliminating the need for separate infrastructure and support stovepipes for individual IT systems.

"Technology has evolved to the point now where we can host multiple systems and multiple capabilities on a reduced number of platforms," Touhill said. "Furthermore, we believe that we will get greater operational effectiveness by putting our development, test and production environments in synchronization with each other, and virtualizing across the entire enterprise."

In simple terms, that means using the same systems throughout its processes. It also involves running multiple operating systems at the same time using a single central processing unit -- a cornerstone of the Defense Department's Joint Information Environment initiative, which is designed to enhance information-sharing.

"We are not going to go out and buy a separate computer for every single system," Touhill said. "Rather, technology allows us to host multiple applications and systems, all on the same box."

One of the challenges in implementing Transcom's five-year strategy is that many of the best solutions haven't yet been invented. So any plan for moving forward has to be flexible enough to incorporate new technologies as they are introduced.

"We are not going to go chase the latest fad just because it is out there," Touhill said. "We certainly will be monitoring all the new and latest technologies, but we are only going to invest in those that can demonstrate great value to the mission."

"And ultimately, that is what IT is all about: providing value -- to the mission, to the taxpayer and to our customers," he said. "There is great power in the capabilities that information technology provides."

U.S. SECRETARY OF STATE CLINTON'S REMARKS AT TECHPORT AUSTRAILIA

Koala And Joey.  Credit:  CIA World Factbook. 

FROM: U.S. STATE DEPARTMENT      
Hillary Rodham Clinton
Secretary of State
Adelaide, South Australia
November 15, 2012
 Thank you. First, let me say what a great pleasure it is to visit Adelaide and South Australia for the first time. I'm proud to be the first Secretary of State ever to do so. And the others did not know what they were missing. Adelaide is, from our perspective, one of the great, critical industrial centers in the world, the heart of Australia's defense manufacturing, and a place where American and Australian companies work in close partnership every day.

This city, this place showcases two of the strongest elements of the U.S.-Australia relationship: our security alliance, and our economic ties. I want to thank Rod Equid and AWD Alliance for hosting us. I want to thank Senator Wang, Penny, thank you for being here, back home for you. And I want to thank the Premier. Premier Weatherill has been a very great visionary when it comes to understanding the partnership, the public-private partnership that is essential for advanced manufacturing to be successful, not only here in Australia, but around the world.

Techport, this world-class maritime industrial hub is where you can see the future of the Royal Australian Navy being built, including the next generation of Air Warfare Destroyers. Now, this work is obviously critical to Australia's continued defense, your ability to provide security for yourselves and throughout the region, and to maintain and advance your role as a global force for peace and stability.

Now, these are goals that the United States shares with Australia, and we are deeply committed to your continued security. We are proud to work with Australia across a range of regional and global security challenges, including standing shoulder to shoulder in Afghanistan and fighting piracy together in the Horn of Africa. So I am greatly impressed by the work being done here to keep Australia strong at home and abroad and very proud of the role that American companies are playing in this effort.

In 2011 alone, U.S. military sales to Australia came to nearly $4 billion making Australia one of our top defense trading partners. And that partnership just received a major boost. Your parliament passed the bill to implement the Defense, Trade, and Cooperation Treaty between our two countries, which the Governor-General assented to this week.

Our leaders signed this treaty back in 2007. The United States Senate passed it in 2010, and now that it has passed your parliament, U.S. and Australian forces will be able to cooperate even more closely and swiftly for our mutual defense. They will be building on a strong foundation. American defense manufacturers are helping to modernize Australia's defense forces through programs like the Joint Strike Fighter project, the Growler upgrades to your Super Hornets, Wedgetail Airborne Early Warning and P-8 anti-submarine warfare aircraft, C-17 and C-27 transport aircraft, MH-60 helicopters for your navy, and the AEGIS weapons systems for you new Air Warfare Destroyers built right here.

But this is a two-way street, because Australian defense manufacturers in turn are contributing to our U.S. defense projects. I just saw the turrets that are manufactured and then exported to the United States for us to be using in our defense. We're also working with you and getting your help in our littoral combat ships. So this is a mutual partnership where we both look out for each other, and we both benefit.

But I want to emphasize that all the work happening here at Techport Australia and at other manufacturing hubs across both our countries is not only about defense and security as important as that is. It's about jobs. It's about trade and investment. It's about putting people to work, and I see some of the high-skilled workers here in front of me.

Now, this economic relationship is just as vital to both of our nations' continued strength as our defense partnership, because in today's world, power is increasingly measured and exercised in economic terms. So it is critical that Australia and the United States keep seeking every opportunity to increase trade and investment between us, to build economic partnerships, to share innovation and technological advances so we can continue not only to lead in the global economy, but more importantly to provide a rising standard of living to the hardworking people in both our countries.

We're on the right path. Since the U.S.-Australia Free Trade Agreement entered into force seven years ago, bilateral trade and investment between our countries has steadily increased, and we're very proud to be Australia's third largest trade partner and your leading investment partner. Now, sometimes it may not always be reflected in the press, but American investment is the biggest source of investment in Australia.

American firms have $136 billion in direct investment in Australia ranging across many industries, including Chevron's gas projects off the cost of Western Australia, and I heard a lot about that in Perth yesterday, or the IBM data centers across Australia, or Boeing, GE, Citigroup, Exxon Mobile, dozens of other American companies whose names I have seen both here in Adelaide and in Perth and of course in Melbourne and Sydney and Canberra on previous visits.

Australia is also a growing market for growing exports even as we welcome more trade from you. In fact, our exports to Australia jumped more than 40 percent between 2009 and 2011 raising from under 20 billion to more than 27 billion, and in the first nine months of this year, they're up another 20 percent. President Obama set a goal of doubling U.S. exports within five years, and we've seen extraordinary progress in our relationship with Australia.

So it's fair to say that our economies are entwined, and we need to keep upping our game both bilaterally and with partners across the region through agreements like the Trans-Pacific Partnership or TPP. Australia is a critical partner. This TPP sets the gold standard in trade agreements to open free, transparent, fair trade, the kind of environment that has the rule of law and a level playing field. And when negotiated, this agreement will cover 40 percent of the world's total trade and build in strong protections for workers and the environment.

That's key, because we know from experience, and of course research proves it, that respecting workers' rights leads to positive long-term economic outcomes, better jobs with higher wages and safer working conditions. And including everybody in that, those who have been previously left out of the formal economy will help build a strong middle class, not only here in Australia or in our country, but across Asia. And that will be good for us.

If we do this right, and that's what we're trying to do, then globalization, which is inevitable, can become a race to the top with rising standards of living and more broadly shared prosperity. Now, this is what I call jobs diplomacy, and that's what I've been focused on in part as Secretary of State. And that's one of the reasons that I wanted to come here to Adelaide and come to this impressive facility.

But for me, and I think for most Americans, it's not only about security, and it's not only about our economy. So let me close with a word about our alliance. These last three days have reinforced for me the indispensability of the U.S.-Australia partnership, indispensible to our shared prosperity, yes, and to our shared security for sure, but also indispensible for our shared values. We are cooperating everywhere together, in businesses, in shipbuilding, from the mountains of Afghanistan to the atolls of the Pacific to the thriving cities of Asia.

But I know there are some who present a false choice, that Australia needs to choose between its longstanding ties to the United States and its emerging links with China. Well, that kind of zero-sum thinking only leads to negative-sum results. We support Australia having strong, multifaceted ties with every nation in the Asia Pacific, indeed in the world, including China just as we seek the same. And I have said repeatedly the Pacific is big enough for all of us.

But for both of us, the U.S.-Australia alliance is not a matter of calculation or cost-benefit analysis, though the benefits are clear. It is much deeper than that. It is in our DNA. It is rooted in shared history and shared struggles to overcome adversity and build a better future for ourselves, our families, and future generations. We are not fair-weather friends. We've been there for each other for decades, and we will keep being there to deliver greater security, greater prosperity, greater opportunity, and the chance for all Australians and Americans alike to live up to our God-given potential in this, the Pacific century. God bless you. And God bless Australia and our relationship forever. Thank you. (Applause.)

U.S.-SINGAPORE RELATIONS

Singapore Map Credit:  CIA World Factbook.

FROM: U.S. STATE DEPARTMENT

United Sattes-Singapore RelationsFact Sheet
Office of the Spokesperson
Washington, DC
November 17, 2012

Singapore is a close strategic partner of the United States across a range of developmental, economic, people-to-people and security issues. We maintain this close relationship in regional multilateral fora such as the Association of Southeast Asian Nations (ASEAN), Asia Pacific Economic Cooperation (APEC), and the East Asia Summit (EAS) to support regional integration, prosperity, and security. We are building on the strong foundation of our bilateral Free Trade Agreement in negotiating a successful outcome for the Trans-Pacific Partnership negotiations.

Bilateral trade in 2011 exceeded $50 billion, making Singapore the United States’ 15th largest trading partner and 11th largest export market. Cumulative U.S. investment in Singapore is over $116 billion while Singapore has $22 billion of foreign direct investment in the United States. Approximately 1,500 American companies use Singapore as a regional base for Asian operations, contributing to job creation and economic development in Singapore and the United States.

Our people-to-people relationships are also strong with 25,000 U.S. citizens residing in Singapore and a similar number of Singaporeans in the United States. A broad range of State Department exchange programs are building academic, professional, and cultural ties between our citizens. In addition, formal educational links are growing, as numerous U.S. universities establish satellite campuses in Singapore.

The United States-Singapore Strategic Partnership Dialogue, announced in 2012, introduced new mechanisms to further strengthen our cooperation to support regional development. Our multifaceted cooperation includes the Third Country Training Program (TCTP), a joint technical assistance program for developing countries in the region, including in the Lower Mekong area. The first projects under this program have focused on training officials in the Lower Mekong region in the areas of environment, health, urban planning, and disaster management.

The United States and Singapore enjoy a close security relationship. Bilateral defense cooperation has deepened since the signing of the Strategic Framework Agreement in 2005, and both militaries interact regularly through joint exercises, operations, training and technological collaboration. Starting in 2013, Singapore will host the first of up to four United States’ Littoral Combat Ships (LCS) on a rotational basis. The LCS will strengthen U.S. engagement in the region, through port calls and interaction with regional navies.

Singapore Locator Map Credit:  CIA World Factbook.

ADDITIONAL INFORMATION FROM CIA WORLD FACTBOOKSingapore was founded as a British trading colony in 1819. It joined the Malaysian Federation in 1963 but separated two years later and became independent. Singapore subsequently became one of the world's most prosperous countries with strong international trading links (its port is one of the world's busiest in terms of tonnage handled) and with per capita GDP equal to that of the leading nations of Western Europe.

Mieux connaître l’ESA, l'Agence Spatiale pour l’Europe

Mieux connaître l’ESA, l'Agence Spatiale pour l’Europe

ASSISTANT ATTORNEY GENERAL BREUER'S SPEECH ON FOREIGN CORRUPT PRACTICES ACT

FROM: U.S. DEPARTMENT OF JUSTICE
Assistant Attorney General Lanny A. Breuer Speaks at the American Conference Institute’s 28th National Conference on the Foreign Corrupt Practices Act

National Harbor, Md. ~ Friday, November 16, 2012
Thank you, Joe, for that kind introduction. This is the fourth year in a row that I have been privileged to address this conference.

I am told that I have been the longest serving Assistant Attorney General of the Criminal Division in nearly 50 years. And during my time as head of the division, I have spoken about our ambitious efforts in the United States to fight foreign bribery, perhaps more than on any other subject, and all over the world. I have traveled around the globe – from Russia and Romania, to Liberia and Ghana, from Sweden and France, to the Ukraine and the U.K. – to discuss our anti-corruption enforcement work. And just as I have done here, I have told those countries that combating corruption around the world is, and will remain, a priority of the United States.

This message resonates in every country, because everyone – from the fruit stand owner in Tunisia, to the oil rig worker in Nigeria, to the punk rock musician in Russia – knows how pernicious corruption can be; and we in the United States are in a unique position to spread the gospel of anti-corruption, because there is no country that enforces its anti-bribery laws more vigorously than we do. The Justice Department’s record of accomplishment in this area is a signature achievement of ours, and I’m delighted to have this occasion to address you once again.

Three years ago, I came here and told you that, building on the work of my predecessors, I was going to make fighting corruption, and expanding our enforcement of the Foreign Corrupt Practices Act, a critical piece of the Criminal Division’s mission. I think I’ve kept that promise. Since 2009, the number of prosecutors we have devoted to working on FCPA cases has approximately doubled; we launched a new initiative – the Kleptocracy Asset Recovery Initiative – through which we seize and forfeit the assets of corrupt leaders around the world; and we have also rebuilt the Public Integrity Section – which is one of the Department’s crown jewels.

As a result of our efforts over the past three-and-a-half years, robust FCPA enforcement has become part of the fabric of the Justice Department: Our global anti-corruption mission has seeped into the Criminal Division’s core. And there is no turning back. The FCPA is now a reality that companies know they must live with and adjust to; and this nation is better off for it.

The dramatic change in the way the corporate world thinks about the FCPA didn’t happen overnight. It is the product of years of work, by a talented corps of dedicated and tenacious prosecutors. This audience, perhaps more than any other I’ve addressed, knows our record. I’ve heard that there are even several blogs that keep track of each one of our cases, which I think is terrific.

I will point out just two statistics: First, since 2009, our FCPA Unit has entered into over 40 corporate resolutions, including nine of the top ten resolutions ever, as measured by the size of the penalty, resulting in over $2 billion in fines. Second, since 2009, we have secured convictions against over three dozen individuals. One corporate executive, the former president of Terra Telecommunications, was sentenced to 15 years in prison – the longest sentence ever imposed in an FCPA case.

Looking back at these cases, and thinking about the ones in the pipeline, I see a Criminal Division that is focused on the cases and investigations that matter. We are focused on bribes of consequence – ones that have a fundamentally corrosive effect on the way companies do business abroad. And our record of success has meant that corporate executives now actually believe – for good reason – that if they participate in a scheme to improperly influence a foreign official, they face the very real prospect of going to prison. That may be our single most important achievement.

Because the prosecutors handling FCPA cases for the Criminal Division are experienced, sophisticated lawyers, companies also know that we are always attempting to strike an appropriate balance between vigorous and responsible enforcement.

The most vivid, recent illustration is our prosecution of Garth Peterson. As a managing director of Morgan Stanley, Peterson conspired to circumvent Morgan Stanley’s internal FCPA controls in order to transfer a multi-million-dollar ownership interest in a Shanghai building to himself and a Chinese public official with whom he had a personal friendship. Morgan Stanley voluntarily disclosed Peterson’s conduct, cooperated with our investigation, and showed us that it maintained a rigorous compliance program, involving extensive training of bank employees – including Peterson – on the FCPA and other anti-corruption measures. So we decided not to bring any enforcement action against the bank. But Peterson had to face the music. He pleaded guilty to conspiring to evade Morgan Stanley’s internal FCPA controls, and is currently serving time in federal prison, in Edgefield, S.C.

When we announced earlier this year that Garth Peterson had pleaded guilty, we took the unusual step of publicizing the fact that we were declining to bring a case against Morgan Stanley. Three days ago, I would have told you that our decision to make that declination public best illustrates our commitment to transparency. But, this past Wednesday marked an even more vivid example of that commitment.

Last year, I told you, in this room, that in 2012 we would release detailed guidance on the FCPA’s criminal and civil enforcement provisions. On Wednesday, keeping that promise, S.E.C. Director of the Division of Enforcement, Robert Khuzami, and I announced the release of A Resource Guide to the U.S. Foreign Corrupt Practices Act.

At roughly 120 pages, the Guide may be the most comprehensive effort ever undertaken by either the Justice Department or the SEC to explain our approach to enforcing a particular statute. I am extraordinarily proud of the lawyers and staff in the Criminal Division and at the SEC who worked on the Guide over the past year. In it, we analyze the central provisions of the Act and provide commentary and analysis for enterprises big and small – from small businesses doing their first transactions abroad to multi-national corporations with subsidiaries around the world.

Transparency is, of course, a worthwhile goal all by itself. We want U.S. businesses, foreign officials, non-governmental organizations and others to understand why we prosecute FCPA cases as vigorously as we do, and also how and why we make our charging decisions. But there are additional reasons why we strive to be so open in this area. The vast majority of companies doing business internationally want to get it right. They want to comply with the FCPA – and they know they may face Justice Department prosecutors and S.E.C. enforcement lawyers if they don’t. The Guide, which is perhaps the boldest manifestation of our transparent approach to enforcement, will help businesses that are unsure of their obligations, and should therefore improve compliance. Compliance officers and others have, over the years, worried out loud to me that their employees live in doubt. Does the cup of coffee they bought for a contracting official violate the FCPA? Will paying for a taxi for someone who might be a foreign official land them in prison? As you will see, the Guide addresses those questions and many others.

The Guide is the product of a remarkably close collaboration between the Criminal Division and the SEC’s Division of Enforcement. It could not have happened without the close partnership our two agencies have developed. And, as a non-neutral party, let me say that the Guide is simply an extraordinary piece of work. No guide will satisfy every constituency, and I would be surprised if the people in this room thought the Guide answered all of their questions. But, I think it’s fair to say that the Guide is one of the most comprehensive efforts ever by law enforcement to explain how and why we do what we do.

Thirty-five years after Congress passed the FCPA, we are in an important, and developing, era of foreign bribery enforcement. Countries across the globe are passing new anti-bribery legislation, or revising outdated laws. Russia, China, India, Sweden, the U.K. – the list goes on and on. More countries are also joining international bodies such as the OECD Working Group on Bribery. And we are cooperating with foreign law enforcement on FCPA cases more closely than ever before. In addition to our well publicized FCPA prosecutions, we have recently had our first Kleptocracy Initiative successes. In June, we successfully forfeited over $400,000 belonging to a corrupt former governor of a Nigerian oil-producing state; and since July we have secured restraining orders against more than $7 million in proceeds related to a different governor of another oil-producing state in Nigeria, including the proceeds from the sale of a penthouse unit in the Ritz-Carlton in Washington, D.C. Also, just this week, we announced the forfeiture of $2.1 million worth of property purchased with alleged bribes paid to the family of the former president of Taiwan. These are challenging, and extremely meaningful, cases. Our theory is simple: Corrupt leaders should not be allowed to use the United States as a safe haven for their ill-gotten gains; so, even if we cannot pursue you criminally in the United States – because we lack criminal jurisdiction, for example – we will pursue your assets.

As Assistant Attorney General, I am acutely aware that we have many urgent law enforcement priorities – fighting child exploitation, stemming the flow of narcotics from South America and elsewhere, stopping gang violence. I am here to tell you that fighting global corruption is just as urgent, and with the momentum of many countries behind us, now is the time to redouble our anti-corruption efforts. Because corruption – at home and abroad – has such corrosive effects, I have pledged to use every tool at our disposal to fight it. Not only does corruption undermine the public trust and weaken democratic institutions; it also creates gaps in government structures that organized criminal groups and terrorist networks can exploit. In short, corruption is a "gateway crime" that we must do everything we can, working with others around the globe, to stamp out.

Some practitioners and commentators see FCPA enforcement as no more than an esoteric area of the criminal law. But, for me, the global anti-corruption fight is so much more than that. During my tenure as Assistant Attorney General, I have seen people agitate for the rule of law during the Arab Spring. I have seen, first hand, how nations in upheaval are struggling to cope with corrupt leaders. I have spent time with our Justice Department prosecutors stationed abroad, who are fighting to establish rule-of-law programs in emerging democracies and contending with governments that are ill-equipped to resist corruption. And I have seen, first hand, people across the globe demanding more from their leaders. For me, our enforcement of the FCPA – as well as our Kleptocracy and capacity building work – is our way of ensuring not only that the Justice Department is on the right side of history, but also that it has a hand in advancing that history.

The idea that a company could get away with bribing foreign officials for the sake of corporate profits didn’t make sense 35 years ago. It doesn’t make sense today. As I have tried to convey to you in the four speeches I’ve delivered here, nothing is more important than curbing corruption around the world – and we must, and we will, continue to do everything we can to ensure that young people across the globe can dream big dreams without having to worry that a corrupt leader will extinguish them. It’s a critical mission, and one I’m very proud to be part of.

It has been my privilege to speak with you once again. Thank you.

U.S.-MYANMAR WORK TO COMBAT HUMAN TRAFFICKING

Photo:  Golden Buda.  From:  CIA World Factbook

FROM: U.S. DEPARTMENT OF STATE

United States-Myanmar Joint Plan on Trafficking in Persons
Media Note
Office of the Spokesperson
Washington, DC
November 18, 2012

The Governments of the Union of Myanmar and the United States; affirming their commitment to the global effort to combat human trafficking, a modern form of slavery that afflicts both of our nations; recognizing the requirements and provisions of the UN Protocol to Suppress, Punish, and Prevent Trafficking in Persons, Especially Women and Children, supplementing the 2000 UN Convention on Transnational Organized Crime; acknowledging the progress made by the Government of Myanmar in addressing sex trafficking and forced labor over the last two years, particularly:
The repealing of the 1907 Towns and Villages Acts, which provided legal condoning of the government officials’ use forced labor;
The enactment of the 2012 Wards and Village Tracts Administration Act, which explicitly criminalizes all forms of forced labor;
The forging with the International Labor Organization (ILO) of a time-bound, comprehensive action plan to tackle forced labor in Myanmar;
The opening of two additional border liaison offices on the Thai border to prevent cross-border trafficking;
The signing of a child soldiers action plan with the United Nations that calls for the release of child soldiers from the Burmese armed forces and access to military sites and prisons to inspect for the presence of child soldiers;
The opening, in collaboration with the Thai government, of five Myanmar Ministry of Labor-staff migrant help centers inside Thailand; and the more robust anti-trafficking efforts undertaken by the Ministry of Home Affairs-chaired Central Body on Trafficking in Persons (CBTIP), such as the abolishment of the mandatory detention time in government shelters for trafficking victims;
And recognizing that the Union of Myanmar’s anti-trafficking efforts will be enhanced through the sharing of technical knowledge and best practices from the United States and its partners in this global effort against trafficking in persons;

Declare as follows:

Objectives

1. The governments affirm that this joint plan provides a framework for joint action against all forms of trafficking in persons, including both sex and labor trafficking, whether committed across international borders or wholly within a country’s borders – through efforts to boost the capacity of Myanmar government officials and civil society partners in jointly identifying cases of forced labor, the illegal recruitment of child soldiers, and sex trafficking, including the sharing of best practices, and technical assistance and training provided by the United States government and partner entities.

2. The governments emphasize that this joint plan heralds a new era of Myanmar-United States cooperation in addressing this serious crime and human rights issue.

Areas of Cooperation

The Governments of the Union of Myanmar and the United States commit to areas of cooperation and measurable progress in increasing the capacity of Myanmar efforts to: identify trafficking offenses; investigate and prosecute trafficking offenders; provide victims with access to services in line with existing international guidelines; and to prevent Myanmar citizens from being subjected to sex trafficking or forced labor either within the country’s border or abroad.

Specifically, the governments commit to:

A. Implement the ILO Action Plan on Forced Labor and the provisions of the new Wards and Village Tracts Administration Act by registering with Myanmar government authorities an increased number of alleged cases of forced labor, both through the ILO complaint mechanism and the government’s own enforcement authorities;

B. Expand CBTIP’s official responsibilities over human trafficking issues. Demonstrate progress in this regard by increasing the number of criminal investigations and prosecutions of those who are alleged to have committed forms of human trafficking to include forced labor and the unlawful recruitment and use of child soldiers;

C. Encourage greater civil society participation in anti-trafficking efforts throughout the country, including through more robust and structured partnerships – both at the policy and operational levels – between Myanmar authorities (law enforcement and social services) and a wide range of civil society organizations and faith institutions; and

D. Provide technical assistance, training, and the regular sharing of best practices in the areas of law enforcement investigations, victim/witness interviewing, victim assistance, and trafficking prevention, through U.S. government-funded programs to be closely coordinated with Myanmar government partners to ensure the most effective collaboration possible.

Bilateral Anti-Trafficking Dialogue and Participation

With the announcement of this joint plan, the Governments of the Union of Myanmar and the United States are opening a regular anti-TIP dialogue that will be structured to have at least annual meetings in either Myanmar or the United States, supplemented by regular ad hoc meetings at both senior and working levels throughout the year.

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY, MH-60S SEA HAWK HELICOPER
An MH-60S Sea Hawk helicopter assigned to the Eightballers of Helicopter Sea Combat Squadron (HSC) 8, embarked aboard the aircraft carrier USS John C. Stennis (CVN 74), circles around a flare during a casting and recovery exercise. John C. Stennis is deployed to the U.S. 5th Fleet area of responsibility conducting maritime security operations, theater security cooperation efforts and support missions for Operation Enduring Freedom. The U.S. Navy is constantly deployed to preserve peace, protect commerce, and deter aggression through forward presence. Join the conversation on social media using #warfighting. U.S. Navy photo by Mass Communication Specialist 3rd Class Kenneth Abbate (Released) 121112-N-OY799-139

121113-N-XQ375-034 ARABIAN SEA (Nov. 13, 2012) Sailors assigned to a visit, board, search and seizure team from the guided-missile destroyer USS Jason Dunham (DDG 109) approach the Comoros-flagged cargo vessel Al Dahab for a flag verification. Jason Dunham is deployed to the U.S. 5th Fleet area of responsibility conducting maritime security operations, theater security cooperation efforts and support missions for Operation Enduring Freedom. (U.S. Navy photo by Mass Communication Specialist 2nd Class Deven B. King/Released)

ACUPUNCTURE AND BATTLEFIELD MEDICINE

Dr. John Baxter, middle, Pentagon Clinic Director and acupuncturist, assists a Beijing University of Chinese Medicine student with inserting acupuncture needles into fellow student, Minli Sun's ear Oct. 24, 2012 in Beijing, China. At the invitation of China's People Liberation Army, U.S. Air Force medical physicians, alongside their Chinese military and civilian counterparts, conducted the first-ever Medical Acupuncture Subject Matter Expert Exchange in Beijing Oct. 21-27, 2012. (U.S. Air Force courtesy photo)

FROM: U.S. AIR FORCE
AF, China's PLA physicians gather for first-ever acupuncture exchange
by Tech. Sgt. Matthew McGovern
Pacific Air Forces Public Affairs

11/16/2012 - BEIJING, China (AFNS) -- At the invitation of China's People Liberation Army, Air Force medical physicians, along-side their Chinese military and civilian counterparts, conducted the first-ever Medical Acupuncture and Battlefield Medicine Subject Matter Expert Exchange in Beijing, China, on Oct. 21-27.

The exchange, attended by seven U.S. representatives from the Air Force Medical Service, civilians from the National Intrepid Center of Excellence, and more than 30 PLA members, was an effort to help U.S.-China militaries increase mutual trust and understanding while sharing practices in traditional Chinese medicine.

"The sessions were friendly, informative and far-reaching in their scope," said Lt. Col. Gregory Sweitzer, Pacific Air Forces clinical quality and innovation chief from Joint Base Pearl Harbor-Hickam, Hawaii. "The enthusiasm and camaraderie that emerged from this exchange was clearly palpable and led to a series of discussions that extended outside the conference rooms and into the break room where genuinely enthusiastic inter-personal exchanges took place."

The exchange was held at three separate locations: a military hospital, university of medicine and a traditional Chinese medicine clinic. The different venues allowed the group to explore each other's acupuncture techniques, operational medicine issues, and acupuncture research. The group also focused on ways acupuncture remedies hypertension, diabetes, obesity, stroke, chronic pain, as well as gynecological complaints.

At the military hospital, where the Americans were greeted with prominently displayed U.S. and China banners and multiple cameramen, discussions included acupuncture treatment of battlefield injuries, post-traumatic stress disorder, traumatic brain injury, and treatment of pain associated with amputations.

"We were treated very graciously (by our Chinese counterparts) and our hope is that we can have future exchanges in acupuncture and other medical exchanges with the PLA and civilian counterparts to learn more from them and them from us," said Sweitzer.

The Chinese physicians formed a similar opinion regarding the exchanges.

"The exchange (facilitated) Sino-U.S. friendship, enhanced relations, and I hope communications," said Col. Lou Yongchang, PLA air force aviation medicine branch director.

Sweitzer remained optimistic about further relations with the Chinese experts.

"We believe this visit truly enhanced U.S.-China military-medical relations, particularly with regard to the provision and utilization of acupuncture in our respected militaries. In fact, our group has already identified some prospective topics and workshops that could provide the framework for a second U.S.-China exchange," said Sweitzer.

Pacific Air Forces conduct subject matter exchanges throughout the pacific to collaborate with other professionals and assist with communications across various military disciplines. Dialogue and exchanges are designed to promote stable military-to-military relationships by reducing misunderstanding, misperception, and miscalculation through increased communication and interaction

　

U.S. PRESIDENT OBAMA VISITS THE KINGDOM OF THAILAND

President Barack Obama, with Secretary of State Hillary Rodham Clinton and Ambassador Kristie Kenney, left, meet with King Bhumibol Adulyadej of the Kingdom of Thailand, at Siriraj Hospital in Bangkok, Thailand, Nov. 18, 2012. (Official White House Photo by Pete Souza)

FROM: THE WHITE HOUSE

The first nation on the itinerary for President Obama's Asia trip is Thailand -- America's oldest friend on the continent, with diplomatic ties stretching back nearly 180 years.

Though his stop to the country lasted for less than one full day, the President visited a Buddhist temple at the Wat Pho monastery, met with Thai King Bhumibol Adulyadej, held a joint press conference with Thai Prime Minister Yingluck Shinawatra, and enjoyed a dinner hosted by the prime minister at the Government House in Bangkok.

Before the dinner, President Obama toasted the character and strength of the Thai people.

"Everything that I’ve felt -- your dignity, your resilience, your friendship, your warmth -- that is the foundation of our alliance," he said. "It’s why you were the first Asian nation to reach out to America after we won our independence. It’s why in Asia, to this day, we can say Thailand is our oldest friend. And we are extraordinarily proud of that friendship, and we are especially pleased to see the excellent leadership that, Madam Prime Minister, you are providing as you continue this country’s path of democracy, freedom and development."

SEC SAYS IT RECEIVED OVER 3000 WHISTLEBLOWER TIPS OVER THE PAST YEAR

SEC Headquarters.  Credit:  Wikimedia Commons  

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C., Nov. 15, 2012 — Over the past year, the Securities and Exchange Commission received more than 3,000 whistleblower tips from all 50 states and from 49 countries, according to the agency's 2012 Annual Report on the Dodd-Frank Whistleblower Program released today.

The report, which is required by the Dodd Frank Wall Street Reform and Consumer Protection Act, summarizes the activities of the SEC's Office of the Whistleblower.

"In just its first year, the whistleblower program already has proven to be a valuable tool in helping us ferret out financial fraud," said SEC Chairman Mary L. Schapiro. "When insiders provide us with high-quality road maps of fraudulent wrongdoing, it reduces the length of time we spend investigating and saves the agency substantial resources."

Among other things, the report notes:
The SEC made its first award under the new program to a whistleblower who helped the SEC stop an ongoing multi-million dollar fraud. The whistleblower received an award of 30 percent of the amount collected in the SEC's enforcement action, which is the maximum percentage payout allowed by law.
The SEC received 3,001 tips, complaints, and referrals from whistleblowers from individuals in all 50 states, the District of Columbia, and the U.S. territory of Puerto Rico as well as 49 countries outside of the United States.
The most common complaints related to corporate disclosures and financials (18.2 percent), offering fraud (15.5 percent), and manipulation (15.2 percent).
There were 143 enforcement judgments and orders issued during fiscal year 2012 that potentially qualify as eligible for a whistleblower award. The Office of the Whistleblower provided the public with notice of these actions because they involved sanctions exceeding the statutory threshold of more than $1 million.
Under the Dodd-Frank Act, the SEC can pay financial awards to whistleblowers who provide high-quality, original information about a possible securities law violation that leads to a successful SEC enforcement action with more than $1 million in monetary sanctions. The SEC is authorized to pay the whistleblower 10 to 30 percent of the sanctions collected. Awards are paid from the Investor Protection Fund established by Congress to fund payments.

Information on eligibility requirements, directions on how to submit a tip or complaint, instructions on how to apply for an award, and answers to frequently asked questions are available at: www.sec.gov/whistleblower.

President Obama Meets with Congressional Leadership | The White House

President Obama Meets with Congressional Leadership | The White House

TWO MEN AND COMPANY CHARGED WITH RATTLESNAKE TRAFFICKING



Photo Credit:  Wikimedia.

FROM: U.S. DEPARTMENT OF JUSTICE

Tuesday, November 13, 2012
Two Florida Men and Company Charged in Philadelphia with Rattlesnake Trafficking
Robroy MacInnes, 54, of Fort Myers, Fla., Robert Keszey, 47, of Bushnell, Fla., and Glades Herp Farm Inc., were charged in a two-count indictment today in federal court in Philadelphia, announced Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division and Zane David Memeger, U.S. Attorney for the Eastern District of Pennsylvania. The indictment charges MacInnes, Keszey and the Florida business they co-own, Glades Herp Farm, with conspiracy to traffic in endangered and threatened reptiles, as well as charging MacInnes and Glades with trafficking in protected timber rattlesnakes in violation of the Lacey Act.

According to the indictment, between 2007 and 2008, the defendants collected protected snakes from the wild in Pennsylvania and New Jersey, purchased protected eastern timber rattlesnakes that had been illegally collected from the wild in violation of New York law, and transported federally threatened eastern indigo snakes from Florida to Pennsylvania. The indictment also charges that defendants MacInnes and Glades violated the Lacey Act by purchasing illegal eastern timber rattlesnakes and having the snakes transported to Florida.

The eastern timber rattlesnake is a species of venomous pit viper native to the Eastern United States, and is considered endangered in New Jersey and threatened in New York. It is also illegal to possess an eastern timber rattlesnake without a permit in Pennsylvania. The eastern indigo snake, the longest native North American snake species, is listed as threatened by both Florida and Federal law.

The Lacey Act, one of the oldest statutes in the United States, prohibits interstate trafficking in wildlife known to be illegally obtained. The maximum penalty for conspiring to commit offenses and for violations of the Lacey Act is up to five years in prison and a $250,000 fine for each violation.

The allegations in the indictment are mere accusations and all persons are presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.

This case is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement. The case is being prosecuted by Patrick M. Duggan of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorney Mary Kay Costello of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

Background Briefing With a Senior State Department Official

Background Briefing With a Senior State Department Official

THE AIR FORCE GREEN DEMOLITION PROJECT

Heavy equipment sits idle during a break in the demolition of Bldg. T-609 Nov. 5. The project is on going through Nov. 9. (U.S. Air Force Photo/Dennis Rogers)

FROM: U.S. AIR FORCE
 
Demolition highlights Schriever's green side
by Scott Prater
Schriever Sentinel
11/8/2012 - SCHRIEVER AIR FORCE BASE, Colo. -- Contractor crews smashed Bldg. T-609 to bits Monday morning.

Giant backhoes toppled walls and pulverized large chunks of concrete, steel and sheetrock into a mangled mess. But, first impressions might have been deceiving in this case. What may have looked like a pile of loose debris actually turned out to be a controlled recycling site.

Based on 50th Civil Engineer Squadron guidance, the contractor demolished the temporary building, and former home of the 310th Space Wing headquarters, in such a fashion as to save valuable copper, steel and other recyclable material.

The demolition culminated more than a year of planning by members of 50 CES and the 50th Contracting Squadron.

"There are several reasons why we conducted this project the way we did," said Robert Blevins, 50 CES chief of programs. "We have regulations to satisfy, energy and efficiency standards to meet, and operations and maintenance cost concerns."

First constructed for use by the Space Innovation and Development Center in 2004, Bldg. T-609 eventually found its way into the hands of the 310 SW, which used it until construction on its permanent structure concluded last year.

Air Force Instruction 32-101 states organizations are only authorized to use a temporary facility while they are waiting for a new military construction project to be completed.

"Temporary structures, by their nature, are also very costly to maintain, own and operate," Blevins said. "Their energy characteristics underperform compared to permanent facilities and they don't incorporate LEED [Leadership in Engineering and Environmental Design] construction standards for energy efficiency."

As soon as Bldg. 26 opened, 50 CES put word out on base that office furniture and other useful materials from Bldg. T-609 were available. The squadron also offered the building's modular furniture to any units who could use them. The remaining furniture was disassembled and sent to Peterson Air Force Base for use in future projects.

Squadron engineers removed the building's heating ventilation and air conditioning units and electrical transformers for future use as well.

"We've been leveraging the value of that building for quite a while now," Blevins said. "Gone are the days when a contractor would arrive, demolish, scoop and haul everything away to the local landfill."

During the past few months, Bldg. T-609 delivered even more lasting results as the Schriever Fire Department recognized an opportunity to conduct fire training exercises on the roof and interior of the building. Fire fighters were able to cut through floors, ceilings, floors and walls, as well as break down doors and windows.

Thanks in part to the fire department's previous work inside, the demolition contractor will level the building in the span of a week, but it could take a few weeks to clear the site, which Blevins said will be returned to its natural state.

In the meantime, Bldg. T-609 might just be remembered as the building that kept on giving.

"The overall demo of Bldg. T-609 will help Schriever AFB reach the Air Force's mandated energy reduction goals," said Lt. Col. Trent Tuthill, 50th Mission Support Group deputy commander. "In the fiscally constrained environment we operate in today, every dollar counts and the demolition will directly reduce the overall Schriever utility bill. Additionally, the recycled material will help the wing reach the AF mandated goal of diverting 55 percent of non-hazardous solid waste by 2015."

MONACO'S NATIONAL DAY

Monaco Map Credit:  CIA World Factbook

FROM:  U.S. DEPARTMENT OF STATE
On the Occasion of the Principality of Monaco's National Day
Press Statement
Hillary Rodham Clinton
Secretary of State
Washington, DC
November 16, 2012

On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the people of Monaco as you celebrate your national day this November 19.

For more than a century, Monaco and the United States have worked together to promote peace and prosperity around the globe. This year, Monaco hosted representatives from the United States and over 50 other countries at the 21st Parliamentary Assembly of the Organization for Security and Cooperation in Europe. This important gathering highlighted the Principality’s commitment to development, security, and human rights. It is just one of the many contributions that Monaco has made to international collaboration and understanding. We also commemorate the 5th anniversary of the opening of the Monegasque embassy in Washington, a tangible example of our enduring friendship.

Congratulations again on this special day. I look forward to continued cooperation between our countries in the years to come.

　

Monaco Locator Map.  From:  CIA World Factbook

ADDITIONAL INFORMATION FROM CIA WORLD FACTBOOK

The Genoese built a fortress on the site of present day Monaco in 1215. The current ruling Grimaldi family first seized temporary control in 1297, and again in 1331, but were not able to permanently secure their holding until 1419. Economic development was spurred in the late 19th century with a railroad linkup to France and the opening of a casino. Since then, the principality's mild climate, splendid scenery, and gambling facilities have made Monaco world famous as a tourist and recreation center.

U.S. DEPARTMENT OF EDUCATION AWARDS $50,000 TO COLORADO SCHOOLS RECOVER FROM THEATER SHOOTING

Public School.  Credit:  Wikimedia. 

FROM: U.S. DEPARTMENT OF EDUCATION
U.S. Department of Education Awards Nearly $50,000 to Help Colorado's Aurora Public Schools Recover from Theater Shooting

November 16, 2012The U.S. Department of Education’s Office of Safe and Healthy Students, formerly the Office of Safe and Drug-Free Schools, has awarded Aurora Public Schools in Aurora, Colo., a Project School Emergency Response to Violence (SERV) grant totaling nearly $50,000. The grant will provide assistance for ongoing recovery efforts following a deadly shooting during the midnight premiere of the movie, "The Dark Knight Rises."

"This senseless attack profoundly impacted students and educators throughout the city, and these resources will help the Aurora community provide special care to those who need it," said U.S. Secretary of Education Arne Duncan. "We want to support this community as it continues to recover and reconnect after this horrific event."

Project SERV provides critical support to districts and institutions of higher education that have experienced a significant traumatic event and need resources to respond, recover, and re-establish a safe environment for students. The Office of Safe and Healthy Students has awarded more than $29 million to 97 grantees, including Aurora Public Schools, since the grant program began in 2001.

On Thursday, July 20, 2012, a lone gunman opened fire in the Century 16 multiplex theater. He shot and killed 12 people, including a recent school district graduate, and wounded 58 more. According to Aurora Public Schools, more than 300 of its students and staff were affected, including 50 students from Gateway High School, some of whom were injured, and 10 students from Hinkley High School, who experienced the shooting spree in the theater. With high school registration scheduled for the following week, and the new academic year’s launch scheduled for the week of August 6, 2012, the teaching and learning environment was immediately affected, and continues to be impacted by the tragedy.

Aurora Public Schools applied for and received a Project SERV Immediate Services grant in order to support efforts taken by the district to restore the learning environment while also providing critical assistance to students and staff.

J.P. MORGAN SECURITIES LLC CHARGED BY SEC WITH MISLEADING INVESTORS IN RMBS OFFERINGS

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
In coordination with the federal-state Residential Mortgage-Backed Securities Working Group, the Securities and Exchange Commission today charged J.P. Morgan Securities LLC and affiliated entities with misleading investors in offerings of residential mortgage-backed securities (RMBS). The firm agreed to a settlement in which it will pay $296.9 million. The SEC plans to distribute the money to harmed investors.

The SEC alleges that JP Morgan misstated information about the delinquency status of mortgage loans that provided collateral for an RMBS offering in which it was the underwriter. JP Morgan received fees of more than $2.7 million, and investors sustained losses of at least $37 million on undisclosed delinquent loans. JP Morgan also is charged for Bear Stearns' failure to disclose its practice of obtaining and keeping cash settlements from mortgage loan originators on problem loans that Bear Stearns had sold into RMBS trusts. The proceeds from this bulk settlement practice were at least $137.8 million.

According to the SEC's complaint against JP Morgan filed in federal court in Washington D.C., federal regulations under the securities laws require the disclosure of delinquency information related to assets that provide collateral for an asset-backed securities offering. Information about the delinquency status of mortgage loans in an RMBS transaction is important to investors because those loans are the primary source of funds by which investors can earn interest and obtain repayment of their principal.

The SEC alleges that in the prospectus supplement for the $1.8 billion RMBS offering that occurred in December 2006, JP Morgan made materially false and misleading statements about the loans that provided collateral for the transaction. The firm represented that only four loans (.04 percent of the total loans collateralizing the transaction) were delinquent by 30 to 59 days, and that those four were the only loans that had had an instance of delinquency of 30 or more days in the 12 months prior to the "cut-off date" for the transaction. However, at the time JP Morgan made these representations, the firm actually had information showing that more than 620 loans (above 7 percent of the total loans collateralizing the transaction) were, and had been, 30 to 59 days delinquent, and the four loans represented as being 30 to 59 days delinquent were in fact 60 to 89 days delinquent.

The SEC's complaint also alleges that Bear Stearns' bulk settlements covered loans collateralizing 156 different RMBS transactions issued from 2005 to 2007. Loan originators were usually required by contract to buy back loans that suffered early payment defaults or had other defects. However, Bear Stearns frequently negotiated discounted cash settlements with these loan originators in lieu of a buy-back on loans that were owned by the RMBS trusts. The firm - both before and after the merger with JP Morgan - then kept most of the bulk settlement proceeds. The firm failed to disclose the practice to investors who owned the loans. Bear Stearns repurchased only about 13 percent of these defective bulk settlement loans from the trusts, compared to a nearly 100 percent repurchase rate when loan originators agreed to buy back the defective loans. For most loans covered by bulk settlements, the firm collected money from originators without paying anything to the trusts.

JP Morgan and J.P. Morgan Acceptance Corporation I settled the SEC's charges by consenting to pay disgorgement of $39,900,000, prejudgment interest of $10,600,000, and a penalty of $24,000,000 for the delinquency misstatements, which the SEC will seek to distribute to harmed investors in the transaction through a Fair Fund. JP Morgan; EMC Mortgage, LLC; Bear Stearns Asset Backed Securities I, LLC; Structured Asset Mortgage Investments II, Inc.; and SACO I, Inc. agreed to pay disgorgement of $137,800,000, prejudgment interest of $24,265,536, and a penalty of $60,350,000 for the bulk settlement practice misconduct, and the SEC will seek to distribute these funds to harmed investors through a separate Fair Fund. JP Morgan and each of the other defendants consented, without admitting or denying the allegations, to the entry of a final judgment permanently enjoining them from violating Section 17(a)(2) and (3) of the Securities Act of 1933. The settlement is subject to court approval.

U.S. DOD 'DISTRIBUTION SYNCHRONIZER'

U.S. Transportation Command's global campaign plan for distribution will ensure the command is postured to ensure warfighters have the transportation and logistical support required to conduct future missions around the world. Here, Army Spc. Chance Alwin with 1st Battalion, 17th Infantry Regiment, takes the lead during a combat patrol in Kandahar province, Afghanistan, Dec. 9, 2009. Courtesy photo

FROM: U.S. DEPARTMENT OF DEFENSE

Transcom Charts Future as DOD's 'Distribution Synchronizer'
By Donna Miles
American Forces Press Service
SCOTT AIR FORCE BASE, Ill., Nov. 14, 2012 - For years, tiny Morón Air Base in Southern Spain appeared to be headed to the chopping block. The base, established with the Spaniards in the early 1950s, had for decades been relegated to standby status for U.S. deployments in support of exercises or crisis response.

U.S. Air Forces in Europe leaders, looking for ways to cut operations that don't directly support their contingency plans, were prepared to close its gates. However, officials at U.S. Transportation Command, working with U.S. European Command, helped them realize that although Morón may no longer be vital to activities in the European theater, it's a key node for operations within both U.S. Central Command and U.S. Africa Command.

The decision to maintain Morón offers a snapshot of Transcom's work as the Defense Department's officially designed "distribution synchronizer," Navy Rear Adm. William "Andy" Brown, the command's director of strategy, policies, programs and logistics, told American Forces Press Service

That mission, assigned in early 2011, charges Transcom to look horizontally across the combatant commands -- rather than vertically, through individual combatant command stovepipes -- to synchronize planning for global distribution operations, Brown explained.

The idea is to help DOD "knit the distribution seams among the combatant commands to better support their theater campaign and contingency plans," Air Force Gen. William M. Fraser III, the Transcom commander, told the Senate Armed Services Committee earlier this year.

This, in turn, will help ensure access to the places vital to Transcom's transportation and distribution mission, Fraser said, ensuring sufficient distribution lines across multiple theaters for it to project and sustain forces around the globe.

A big consideration, Brown said, is to continue posturing Transcom to react to simultaneous events with the transportation and distribution network in place to support them. "What happens if we had to [respond to] a hurricane over here and another operation over there?" he said, pointing to two opposite ends of the globe. "What happens to the global transportation network, and how do you maintain that resiliency and ability to react quickly to changes?"

Transcom's global campaign plan for distribution, expected to be completed by late 2013, will provide the framework for addressing these issues, Air Force Col. Carol Johnson, a plans officer in Brown's directorate, reported.

The campaign plan will help Transcom identify what measures need to be taken now to provide the infrastructure, relationships and other requirements to support the defense strategic guidance, she said. That includes the department's pivot toward the Asia-Pacific region, the drawdown of combat operations within Centcom, natural disasters and other contingencies.

Recognizing that requirements will always outweigh capability, Johnson said the global campaign plan will help DOD identify redundancies, establish priorities, weigh risks and recommend solutions for reducing them.

Working with an initial concept, Transcom brought together stakeholders from across its distribution community to war-game it in July. "Everybody agreed it was feasible and would work," Johnson said of the concept. Now, the Transcom staff is waiting for Undersecretary of Defense for Policy James N. Miller to give that concept the green light, most likely in early December, so they can begin drafting the official plan.

If that plan is approved as expected by the end of next year, Transcom officials plan to spend a year fine-tuning the processes.

Then, once each year, the Transcom commander will sit at the table with defense senior leaders and the other combatant commanders to review their theater distribution plans and identify ways to shore up any gaps.

"Our job will be to look across the spectrum and make recommendations to the chairman," Brown said. "From a national perspective, our No. 1 priority is to get this global campaign plan for distribution right."

The annual review will help keep Transcom's global distribution plan in line with the changing strategic environment and COCOM requirements, Johnson said.

"Most people write plans, get them approved, then put them on the shelf until it's time to pull them off and execute," she said. "But ours is consistently going to be evolving and updating, because we do this every day. Our plan will be updated based on the strategic environment and the strategic needs of the Defense Department."

Ultimately, she said, the new plan will help DOD develop a more strategic posture for the future.

"In the past, we have been reactionary in supporting folks when things happen, and we haven't had that strategic look at distribution," Johnson said. "But with the global campaign plan for distribution, we can be more strategic in the planning effort of distribution. And that will make us more effective in everything we do."

DEFENSE: MULTIPLE MISSILE ENGAGEMENT

A Terminal High Altitude Area Defense (THAAD) interceptor is launched from Meck Island on its way to intercept of a ballistic missile target during MDA’s historic flight test on Oct. 24, 2012. (Photo by Andrew Hall)

FROM: U.S. DELPARTMENT OF DEFENSE
Written by jtozer
Five Targets, One Missile

The Missile Defense Agency, U.S. Army soldiers from the 94th and 32nd Army Air and Missile Defense Command; U.S. Navy sailors aboard the USS FITZGERALD (DDG 62); and airmen from the 613th Air and Space Operations Center successfully conducted the largest, most complex missile defense flight test ever attempted resulting in the simultaneous engagement of five ballistic missile and cruise missile targets.

An integrated air and ballistic missile defense architecture used multiple sensors and missile defense systems to engage multiple targets at the same time.

All targets were successfully launched and initial indications are that the Terminal High Altitude Area Defense system successfully intercepted its first medium-range ballistic target in history, and PATRIOT Advanced Capability-3 (PAC-3) near simultaneously destroyed a Short Range Ballistic Missile and a low flying cruise missile target over water.

The live-fire demonstration, conducted at U.S. Army Kwajalein Atoll/Reagan Test Site, Hickam Air Force Base and surrounding areas in the western Pacific, stressed the performance of the Aegis Ballistic Missile Defense, THAAD and PATRIOT weapon systems.

An Extended Long Range Air Launch Target (E-LRALT) missile was airdropped over the broad ocean area north of Wake Island from a U.S. Air Force C-17 aircraft, staged from Joint Base Pearl Harbor-Hickam, Hawaii. The AN/TPY-2 X-band radar, located with the THAAD system on Meck Island, tracked the E-LRALT, and a THAAD interceptor successfully intercepted the medium-range ballistic missile. THAAD was operated by soldiers from the 32nd AAMDC.

Another short-range ballistic missile was launched from a mobile launch platform located in the broad ocean area northeast of Kwajalein Atoll. The PATRIOT system, manned by soldiers of the 94th AAMDC, detected, tracked and successfully intercepted the target with a PAC-3 interceptor.

The USS FITZGERALD successfully engaged a low-flying cruise missile over water. The Aegis system also tracked and launched an SM-3 Block 1A interceptor against a short-range ballistic missile. However, despite indication of a nominal flight of the SM-3 Block 1A interceptor, there was no indication of an intercept of the SRBM.

FTI-01 was a combined developmental and operational test. Soldiers, sailors and airmen from multiple combatant commands operated the systems and were provided a unique opportunity to refine operational doctrine and tactics. Program officials continue to assess and evaluate system performance based upon telemetry and other data obtained during the test.

Ballistic Missile Defense System programs have completed 56 successful hit-to-kill intercepts in 71 flight test attempts since 2001

Story provided by the Missile Defense Agency