SEC HAS NEAR RECORD RESULTS FOR FISCAL YEAR 2012

Photo Credit:  Wikimedia.

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., Nov. 14, 2012 — Building on last year’s record results, the Securities and Exchange Commission today announced that it filed 734 enforcement actions in the fiscal year that ended Sept. 30, 2012, one shy of last year’s record of 735. Most significantly, that number included an increasing number of cases involving highly complex products, transactions, and practices, including those related to the financial crisis, trading platforms and market structure, and insider trading by market professionals. Twenty percent of the actions were filed in investigations designated as National Priority Cases, representing the Division’s most important and complex matters.

The SEC also announced that it obtained orders in fiscal year 2012 requiring the payment of more than $3 billion in penalties and disgorgement for the benefit of harmed investors. It represents an 11 percent increase over the amount ordered last year. In the past two years, the SEC has obtained orders for $5.9 billion in penalties and disgorgement.

"The record of performance is a testament to the professionalism and perseverance of the staff and the innovative reforms put in place over the past few years," said SEC Chairman Mary L. Schapiro. "We’ve now brought more enforcement actions in each of the last two years than ever before including some of the most complex cases we’ve ever seen."

Robert Khuzami, Director of the SEC’s Division of Enforcement, added, "It’s not simply numbers, but the increasing complexity and diversity of the cases we file that shows how successful we’ve been. The intelligence, dedication, and deep experience of our enforcement staff are, more than any other factors, responsible for the Division’s success."

The sustained high-level performance comes two years after the Division underwent its most significant reorganization since it was established in the early 1970s. The results in 2012 were aided by many of the reforms and innovations put in place in the past two years, such as increased expertise in complex and emerging financial markets, products, and transactions, including through enhanced training, the hiring of industry experts, and the creation of specialized enforcement units focused on high-priority misconduct; a flatter management structure; streamlined and centralized processes and the improved utilization of information technology; and a vastly enhanced ability to collect, process, and analyze tips and complaints.

Financial Crisis-Related Cases

Among the cases filed by the SEC in FY 2012 were 29 separate actions naming 38 individuals, including 24 CEOs, CFOs and other senior corporate officers, regarding wrongdoing related to the financial crisis.

These cases included enforcement actions involving:
The former senior officers of Fannie Mae and Freddie Mac for misleading statements regarding the extent of each company’s holdings of higher-risk mortgage loans.

Former investment bankers at Credit Suisse for fraudulently overstating the prices of $3 billion in subprime bonds.
Several bank and mortgage executives including those at United Commercial Bank, TierOne Bank, Franklin Bank, and Thornburg Mortgage for misleading investors about mounting loan losses and the deteriorating financial condition of their institutions.
The U.S. investment banking subsidiary of Japan-based Mizuho Financial Group for misleading investors in a CDO by using "dummy assets" to inflate the deal’s credit ratings.

During the last 2½ years, the agency has filed actions related to the financial crisis against 117 defendants – nearly half of whom were CEOs, CFOs and other senior corporate executives, resulting in approximately $ 2.2 billion in disgorgement, penalties, and other monetary relief obtained or agreed to. The SEC brought enforcement actions against Goldman Sachs, J.P Morgan Securities, and Morgan Keegan as well as senior executives from Countrywide, New Century, and American Home Mortgage.

Insider Trading Cases

Insider trading cases also are on the upswing with 58 actions filed in FY 2012 by the SEC, an increase over last year’s total of 57 actions. The 168 total insider trading actions filed since October 2009 have been the most in SEC history for any three-year period.

In these actions, the SEC has charged approximately 400 individuals and entities for illegal trading totaling approximately $600 million in illicit profits. Among those charged in SEC insider trading cases in 2012 were:
Former McKinsey & Co. global head Rajat Gupta for illegally tipping convicted hedge fund manager Raj Rajaratnam.

Hedge funds Diamondback Capital and Level Global Investors and affiliated traders and analysts.
Hedge fund manager Douglas Whitman.

John Kinnucan and his expert network consulting firm Broadband Research Corporation.
A second round of charges in an insider trading case involving former professional baseball players and the former top executive at Advanced Medical Optics.

Other Enforcement Matters

In order to ensure fair trading and equal access to information in the securities markets, the SEC brought several actions involving compliance failures and rules violations relating to stock exchanges, alternative trading platforms, and other market structure participants.

These cases included:
First-of-its-kind charges against the New York Stock Exchange for compliance failures that gave certain customers an improper head start on trading information.
The first-ever action against a "dark pool" trading platform (Pipeline Trading Systems) for failing to disclose to its customers that the vast amount of orders were filled by an affiliated trading operation.
An action against Direct Edge Holdings LLC for violations at two of its electronic stock exchanges and a broker-dealer arising out of weak controls that resulted in millions of dollars in trading losses and a systems outage.

In the NYSE matter, the exchange and its parent company NYSE Euronext agreed to pay a $5 million penalty, marking the first-ever SEC financial penalty against an exchange.

Investment Advisers: The SEC filed numerous actions resulting from several risk-based, proactive measures that identify threats at an early stage so that early action to halt the misconduct can be initiated and investor harm minimized. In 2012, several actions resulted from the Division’s investment adviser compliance initiative, which looks for registered investment advisers who lack effective compliance programs designed to prevent securities laws violations.

The SEC also filed actions charging three advisory firms and six individuals as part of the Aberrational Performance Inquiry into abnormal performance returns by hedge funds. Other actions against investment advisers included cases against UBS Financial Services of Puerto Rico and two executives for misleading disclosures relating to certain proprietary closed-end mutual funds, Morgan Stanley Investment Management for an improper fee arrangement, and OppenheimerFunds for misleading investors in two funds suffering significant losses during the financial crisis. UBS paid more than $26 million to settle the SEC’s charges while OppenheimerFunds paid more than $35 million for its violations.

The SEC filed 147 enforcement actions in 2012 against investment advisers and investment companies, one more than the previous year’s record number.

Issuer Disclosures:
The SEC brought 79 actions in FY 2012 for financial fraud and issuer disclosure violations. Those cases included actions against Life Partners Holdings and senior executives for fraudulent disclosures related to life settlements; two executives at China-based Puda Coal for defrauding investors about the nature of the company’s assets; and an enforcement action against Shanghai-based Deloitte Touche Tohmatsu for its refusal to provide the SEC with audit work papers related to a China-based company under investigation for potential accounting fraud against U.S. investors.

Broker-Dealers:
The agency filed 134 enforcement actions related to broker-dealers, a 19 percent increase over the previous year. Broker-dealer actions included charges against a Latvian trader and electronic trading firms for their roles in an online account intrusion scheme that manipulated the prices of more than 100 NYSE and Nasdaq securities as well as charges against New York-based brokerage firm Hold Brothers On-Line Investment Services and three of its executives for their roles in allowing overseas traders to access the markets and conduct manipulative trading through accounts the firm controlled. The defendants in the Hold Brothers action paid a total of $4 million to settle the SEC’s charges.

FCPA:
The SEC filed 15 actions in FY 2012 for violations of the Foreign Corrupt Practices Act. FCPA actions were filed against former Siemens executives, Magyar Telekom, Biomet, Smith & Nephew, Pfizer, Tyco International, and a former executive at Morgan Stanley’s real estate investment and fund advisory business.

Municipal Securities:
The SEC filed 17 enforcement actions related to municipal securities, more than double the number filed in 2011. Among those charged in SEC municipal securities actions were the former mayor and city treasurer of Detroit in a pay-to-play scheme involving investments of the city’s pension funds, and Goldman Sachs for violations of various municipal securities rules resulting from undisclosed "in-kind" non-cash contributions that one of its investment bankers made to a Massachusetts gubernatorial candidate.

LOWER MEKONG INITIATIVE LAUNCHES "CONNECT MEKONG"

Golden lion on a Mekong River waterfront.  Credit:  CIA World Factbook.

FROM: U.S. DEPARTMENT OF STATE

Lower Mekong Initiative Launches "Connect Mekong"
Fact Sheet
Office of the Spokesperson
Washington, DC
November 20, 2012

The Lower Mekong Initiative (LMI) is a multilateral partnership effort initiated by the United States in 2009 for promoting cooperation in the Mekong sub-region in the areas of education, health, environment and water, connectivity, agriculture and food security, and energy security. Over the past four years, LMI has implemented programs through a variety of interagency partners on both sides of the Pacific to meet some of the most pressing trans-boundary challenges in the region.

Looking forward, the United States has committed substantial resources to LMI over the next three years through the Asia Pacific Strategic Engagement Initiative (APSEI), which allows LMI members to support regional efforts towards political and economic integration and narrowing the development gap in ASEAN over the long-term.

On November 20, 2012, President Obama held a photo op with LMI country leaders Prime Minister Hun Sen of Cambodia, Prime Minister Thongsing Thammavong of Laos, President Thein Sein of Myanmar, Prime Minister Yingluck Shinawatra of Thailand, and Prime Minister Nguyen Tan Dung of Vietnam on the sidelines of the East Asia Summit in Phnom Penh, Cambodia. This photo op was a demonstration of the commitment of all members to develop strong collaboration to address the most important transnational challenges of the region.

Building on the priorities identified under ASEAN’s Economic and Socio-Cultural Pillars and the ASEAN Master Plan on Connectivity, "Connect Mekong" leverages U. S. expertise in fostering entrepreneurship and trade, cultivating technical expertise to promote infrastructure connectivity, and expanding educational access to support development of sustainable infrastructure systems and technical capacity in the sub-region. "Connect Mekong" increases investment opportunities in the region by providing avenues for public-private cooperation, establishes formal channels of communication between LMI and ASEAN to fast track LMI programs which contribute most effectively to ASEAN connectivity, and initiates new efforts to generate grassroots entrepreneurship in the Mekong sub-region.
"Connect Mekong" is the result of the collaboration and consultation with government agencies and offices, including USAID, as well as LMI member governments.
The signature program under "Connect Mekong," the Mekong Technology Innovation Generation and Entrepreneurship Resources (TIGERS), is a new public-private platform aimed at boosting competitiveness and growth in targeted Mekong economies by supporting young innovators and entrepreneurs.
"Connect Mekong" also includes the next phase of the Professional Communication Skills (PCS) program, which aims to train up to 1,000 public officials in LMI countries working in technical sectors essential to ASEAN connectivity, such as civil aviation, urban planning and river navigation.
"Connect Mekong" will support a series of best practice exchanges with a wide range of U.S. and LMI partners, focusing on how to develop infrastructure which enhances competitiveness and allows better access to transportation, electricity, information technology, education, and improved sanitation and quality of life for the people.

ROCKET SLED TEST VIDEO

FROM: NASA

 

Rocket Sled Testing
Video of rocket-sled testing of the SIAD-R device, conducted in fall 2012 at China Lake, Calif. The SIAD-R is one of three supersonic deceleration devices now being prepared for flight testing by the Low-Density Supersonic Decelerator project at NASA's Jet Propulsion Laboratory in Pasadena, Calif. The devices, which slow the rate of descent for vehicles entering the atmosphere of another planet, could be used in Mars missions launching as early as 2018. Credit-NASA.

RECENT PHOTOS FROM THE U.S. NAVY

FROM: U.S. NAVY
The Aircraft carrier John C. Stennis (CVN 74) operates in the U.S. 5th Fleet Area of Responsibility during sunset. Stennis is deployed to the U.S. 5th Fleet area of Responsibility conducting maritime security operations, theater security cooperation efforts and support missions as part of Operation Enduring Freedom. U.S. Navy photo by Mass Communication Specialist 2nd Class Aaron Chase (Released) 121118-N-YF306-158

Family members wave to Sailors aboard the guided-missile destroyer USS Michael Murphy (DDG 112) as it arrives at hits homeport, Joint Base Pearl Harbor-Hickam for the first time. The new destroyer honors the late Lt. (SEAL) Michael P. Murphy, a New York native who was posthumously awarded the Medal of Honor for his actions in combat as leader of a four-man reconnaissance team in Afghanistan. Murphy was the first person to be awarded the medal for actions in Afghanistan, and the first member of the U.S. Navy to receive the award since the Vietnam War. U.S. Navy photo by Mass Communication Specialist 2nd Class Jon Dasbach (Released) 121121-N-KT462-091

A NEW GATEWAY TO SPACE

FROM: NASA

Establishing A New Gateway to Space

A year after space shuttle Atlantis touched down to end the shuttle program, NASA's Kennedy Space Center in Florida is preparing for future missions. Facilities are being remodeled to host a variety of spacecraft, rockets and companies to continue humanity's great adventure into space.

MARINE DONATES BONE MARROW TO LEUKEMIA VICTIM

Marine Corps Lance Cpl. Enrique Gallardo sets up a communication interface system at Camp Foster in Okinawa, Japan, Nov. 6, 2012. In May, Gallardo flew to San Diego to donate bone marrow to a woman suffering from acute lymphoblastic leukemia. Gallardo volunteered to be a donor during recruit training and was contacted as a potential match two years later. U.S. Marine Corps photo by Pfc. Kasey Peacock

FROM: U.S. DEPARTMENT OF DEFENSE
Face of Defense: Marine Donates Bone Marrow for Stranger

By Marine Corps Pfc. Kasey Peacock
Marine Corps Installations Pacific

CAMP FOSTER, Okinawa, Japan, Nov. 19, 2012 - In the midst of recruit training, Pvt. Enrique Gallardo was given a form to sign in January of 2010 -- a form that, while similar in appearance to countless others that had passed in front of Gallardo, would be very significant in the Marine's future.

By checking a box on this form, Gallardo elected to be a potential bone marrow donor, setting events into motion that would possibly save the life of a complete stranger.

Two years later, Lance Cpl. Gallardo, an aviation systems radio technician with Marine Air Support Squadron 2, Marine Air Control Group 18, 1st Marine Aircraft Wing, III Marine Expeditionary Force, received an email stating he was a potential bone marrow match for a 23-year-old female patient in need of a transplant.

The patient, whose identity remains anonymous to the donor until one year after the procedure is completed, was diagnosed with acute lymphoblastic leukemia: a fast-growing cancer affecting white blood cells.

"When they contacted me, I had forgotten that I chose to be a potential donor," Gallardo said. "I have always lived by the idea that if you can help out someone in need, you should. If the temporary pain I [had] to endure during the process could prevent someone from a lifetime of pain, it was worth it."

After further testing confirmed Gallardo was a match for the patient, he received approval to continue with the procedure in either California or New York.

"I chose San Diego because I'm from Los Angeles and my parents and wife were able to meet up with me during the procedure," Gallardo said. "Their support definitely helped me through the process because they were behind my decision to help someone in need."

The procedure, known as a peripheral blood stem cell donation, began the day after Gallardo arrived at the hospital. The first phase of the procedure consists of a five-day series of shots designed to expand the bone marrow in the donor's body to assist with its withdrawal.

"The first two days of the injections, I remember feeling a minor headache with a few aches and pains in my hips," Gallardo said. "By the fourth and fifth day, I could feel extreme pain throughout my body."

Gallardo was ready for the marrow extraction a few hours after the fifth injection. His blood was removed through a hypodermic needle in one arm and passed through a machine to separate out blood stem cells. The remaining blood, minus the stem cells, was returned to Gallardo through the other arm.

"Throughout the process, I would think about what my staff sergeant told me back when I was contemplating carrying on with the process," Gallardo said. "It was a morning after we had just run a [physical] fitness test. I was bent over feeling a little tired and she came up to me and [asked if I was] in pain. I said that I was and she responded that whoever is in need of this procedure probably wishes they could run a PFT to feel that pain in their legs."

After the procedure, Gallardo was cleared to leave the hospital and took leave to spend time with his family and recover.

"I did my best to be there for him for whatever he needed," said Vannia Gallardo, Enrique's wife. "Even though he never complained about the side effects from the shots, I could see that he was going through some pain. When the day of the donation arrived, we were a little nervous, but the hospital personnel took very good care of him. After lying on the hospital bed with [intravenous fluids] in him for more than four hours, we were relieved to be told everything went well."

Following his leave, Gallardo was back into the swing of things, carrying out his daily duties with no issues.

"I was impressed that, without hesitation, Gallardo was willing to help someone he didn't even know who was in an extreme situation," said Sgt. Eric J. Hansen, an aviation systems radio technician with MASS-2. "As Marines, we are expected to go above and beyond what is expected in everything we do. Gallardo showed that with his selfless sacrifice."

While Gallardo continues on in his Marine Corps career, he says he eagerly awaits the day he will get an update on the condition of the recipient of his donation, hoping he was able to make a difference in her life.

NEWS FROM AFGHANISTAN FOR NOVEMBER 23, 2012

Photo:  Refueling Over Afghanistan.  Credit:  U.S. Air Force.

FROM: U.S. DEPARTMENT OF DEFENSE
Combined Force Arrests Taliban Leader

From an International Security Assistance Force Joint Command News Release
KABUL, Afghanistan, Nov. 23, 2012 - An Afghan and coalition security force arrested a Taliban leader in Afghanistan's Kandahar province yesterday, military officials reported.

The arrested Taliban leader coordinated improvised explosive device emplacements and ambushes against Afghan and coalition forces, officials said.

The security force detained two other suspected insurgents.

In Nov. 21 Afghanistan operations:

-- Three Taliban senior leaders, including the No. 1 Taliban leader in western Logar province, were killed Nov. 21 during a security operation in Logar province. At the time of his death, Abu Baker was the top Taliban leader in western Logar province. Abu Baker facilitated weapons to insurgents, planned attacks against Afghan and coalition forces and was directly involved in foreign fighter facilitation. Deceased Taliban leader Bashir was involved in the Aug. 7 suicide-vehicle IED attack on Forward Operating Base Shank, and directly linked to the final, pre-execution stages of planning for an impending vehicle-borne IED attack targeting Afghan and coalition forces in Logar province, officials said. Deceased Taliban leader Zarqawi facilitated weapons to execute IED as well as direct- and indirect-fire attacks on Afghan and coalition forces. A number of additional insurgents were also killed. One suspect was detained and several rocket-propelled grenades and multiple assault rifles were confiscated.

-- A combined force arrested a Taliban facilitator in Kunduz province. The arrested facilitator is suspected of being directly involved in the purchasing and distribution of weapons to Taliban fighters. The security force also detained one other suspect and seized rocket-propelled grenades, mortars, hand grenades, assault rifles and ammunition.

-- Combined forces arrested a Taliban senior leader in Nimroz province. The arrested insurgent leader is suspected of being involved in the purchasing and movement of weapons and providing intelligence to other Taliban senior leaders. The security force also detained a number of other suspects.

U.S. WELCOMES THAILAND'S ENDORSEMENT OF PROLIFERATION SECURITY INITIATIVE



A Yaksha demon guards the Wat Phra Kaew, Temple of the Emerald Buddha, in the Grand Palace in Bangkok. Credit: CIA World Factbook.

 

FROM: U.S. STATE DEPARTMENT 

 Thailand Endorses the Proliferation Security Initiative
Media Note
Office of the Spokesperson
Washington, DC
November 19, 2012
　

The United States welcomes the Kingdom of Thailand’s decision to endorse the Proliferation Security Initiative (PSI). President Obama has commended Thailand for its decision to participate in the Initiative, which advances our shared vision of a secure and peaceful Asia-Pacific where the rights and responsibilities of all nations are upheld. The United States looks forward to working with the Royal Thai Government to advance the nonproliferation goals of the PSI and its Statement of Interdiction Principles. Thailand is the 102nd state to become a PSI participant.

Launched in Krakow, Poland in 2003, the PSI will mark its tenth anniversary in May 2013. PSI participants commit to undertake measures, on a voluntary basis and consistent with their authorities and resources, to interdict illicit transfers of weapons of mass destruction- and missile-related items, exchange relevant information, and strengthen legal authorities to conduct interdictions. They also conduct exercises, workshops, and other activities to improve their capacities to fulfill their PSI commitments. The addition of each new participating state strengthens the Initiative and helps ensure that it will remain a durable international effort in the years ahead.



 

U.S. Department of Defense Contracts for November 23, 2012

Contracts for November 23, 2012

U.S.- MISSISSIPPI ANNOUNCE CLEAN WATER ACT AGREEMENT WITH CITY OF JACKSON

Photo Credit:  Wikimedia.

FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY


WASHINGTON – The U.S. Environmental Protection Agency (EPA), the Department of Justice, and the Mississippi Department of Environmental Quality (MDEQ) announced today a comprehensive Clean Water Act settlement with the city of Jackson, Miss. Jackson has agreed to make improvements to its sewer systems to eliminate unauthorized overflows of untreated raw sewage and unauthorized bypasses of treatment at the Savanna Street Wastewater Treatment Plant (WWTP), the city’s largest wastewater treatment facility. When wastewater systems overflow, they can release untreated sewage and other pollutants into local waterways, threatening water quality and contributing to beach closures and disease outbreaks.

"EPA is working with cities to protect the nation’s waters from raw sewage overflows that can have significant impacts on people’s health and the environment," said Cynthia Giles, assistant administrator for the EPA’s Office of Enforcement and Compliance Assurance. "Today’s settlement will lead to improvements in the management of wastewater overflows, which will reduce water pollution and benefit the Jackson community for years to come."

"This agreement will bring lasting benefits to the people of Jackson by reducing the threats to public health posed by untreated sewage overflows," said Ignacia S. Moreno, assistant attorney general for the Justice Department’s Environment and Natural Resources Division. "The settlement will bring the city into compliance with the nation’s Clean Water Act, requiring significant upgrades to the existing sewer system. Under the settlement, assistance will be provided to residents to repair sewer connections in lower-income areas that have suffered historically from overflows of untreated sewage"

The consent decree requires Jackson to implement specific programs designed to ensure proper management, operation and maintenance of its sewer systems. In order to address the problem of wet weather overflows of raw sewage from the sewer lines, Jackson will develop and implement a comprehensive sewer system assessment and rehabilitation program. The city will also develop and implement a comprehensive performance evaluation and composite correction program to reduce the bypasses of treatment at the Savanna Street WWTP.

The consent decree also requires Jackson to develop and implement numerous sewer system capacity, management, operations and maintenance programs, including a pump station operation and preventive maintenance program, a WWTP operation and maintenance program and a water quality monitoring program.

In addition to the control requirements, the consent decree requires Jackson to pay a civil penalty of $437,916. As part of the settlement, Jackson has also agreed to implement a supplemental environmental project valued at $875,000 that will provide additional environmental benefits to the local community. The project involves reducing the flow of water from entering the sewer system by eliminating illicit stormwater connections and repairing defective private lateral sewer lines from the low-income residential properties.

Keeping raw sewage and contaminated stormwater out of the waters of the United States is one of the EPA’s national enforcement initiatives for 2011 to 2013. The initiative focuses on reducing sewer overflows, which can present a significant threat to human health and the environment. These reductions are accomplished by obtaining cities’ commitments to implement timely, affordable solutions to these problems, including the increased use of green infrastructure and other innovative approaches.

The United States has reached similar agreements in the past with numerous municipal entities across the country including Mobile and Jefferson County (Birmingham), Ala.; Atlanta and Dekalb County, Ga.; Memphis, Knoxville and Nashville, Tenn.; Miami-Dade County, Fla.; New Orleans, La.; Hamilton County (Cincinnati), Oh.; Northern Kentucky Sanitation District #1 and Louisville MSD, Ky.

The proposed consent decree with Jackson is subject to a 30-day public comment period and final court approval before becoming effective.


　

U.S. RESPONDS TO CONCENTRATION OF POWER IN EGYPT

Photo Credit:  U.S. Air Force.



FROM: U.S. STATE DEPARTMENT
The United States' Reaction to Egypt's November 22 Decisions
Press Statement
Victoria Nuland
Department Spokesperson, Office of the Spokesperson
Washington, DC
November 23, 2012


The decisions and declarations announced on November 22 raise concerns for many Egyptians and for the international community. One of the aspirations of the revolution was to ensure that power would not be overly concentrated in the hands of any one person or institution. The current constitutional vacuum in Egypt can only be resolved by the adoption of a constitution that includes checks and balances, and respects fundamental freedoms, individual rights, and the rule of law consistent with Egypt's international commitments. We call for calm and encourage all parties to work together and call for all Egyptians to resolve their differences over these important issues peacefully and through democratic dialogue.

CHARGES FILED IN SEC'S LARGEST EVER INSIDER TRADING CASE

Photo Credit:  SEC

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

November 20, 2012

The Securities and Exchange Commission today charged Stamford, Conn.-based hedge fund advisory firm CR Intrinsic Investors LLC and its former portfolio manager along with a medical consultant for an expert network firm for their roles in a $276 million insider trading scheme involving a clinical trial for an Alzheimer's drug being jointly developed by two pharmaceutical companies. The illicit gains generated in this scheme make it the largest insider trading case ever charged by the SEC.

The SEC alleges that Mathew Martoma illegally obtained confidential details about the clinical trial from Dr. Sidney Gilman, who served as chairman of the safety monitoring committee overseeing the trial. Dr. Gilman was selected by Elan Corporation and Wyeth to present the final drug trial results to the public. In phone calls that were arranged by a New York-based expert network firm for which he moonlighted as a medical consultant, Dr. Gilman tipped Martoma with safety data and eventually details about negative results in the trial about two weeks before they were made public in July 2008. Martoma then caused several hedge funds to sell more than $960 million in Elan and Wyeth securities in just over a week.

Dr. Gilman, who lives in Ann Arbor, Mich., where he works as a medical school professor, has agreed to settle the SEC's charges and cooperate in this action and related SEC investigations. In a parallel action, the U.S. Attorney's Office for the Southern District of New York today announced criminal charges against Martoma and a non-prosecution agreement with Dr. Gilman. Martoma lives in Boca Raton, Fla.

According to the SEC's complaint filed in federal court in Manhattan, Martoma first met Dr. Gilman through paid consultations arranged by the expert network firm. Dr. Gilman provided Martoma with material nonpublic information concerning the Phase II trial of the potential Alzheimer's drug called bapineuzumab (bapi). They coordinated their expert network consultations around scheduled safety monitoring committee meetings, and during their phone calls they discussed PowerPoint presentations made during the meetings and Dr. Gilman provided Martoma with his perspective on the results. Dr. Gilman developed a personal relationship with Martoma, eventually coming to view Martoma as a friend and pupil.

The SEC alleges that Martoma caused hedge funds managed by CR Intrinsic as well as hedge funds managed by an affiliated investment adviser to trade on the negative inside information he received from Dr. Gilman. Although Elan and Wyeth's shares rose on June 17, 2008, on the public release of top-line results of the Phase II trial, market participants were disappointed by the detailed final results issued on July 29, 2008. Double-digit declines in Elan and Wyeth shares ensued. After Martoma was tipped, the hedge funds not only liquidated their combined long position in Elan and Wyeth of more than $700 million, but went on to hold substantial short positions in both securities. This massive repositioning allowed CR Intrinsic and the affiliated advisory firm to reap approximately $82 million in profits and $194 million in avoided losses for a total of more than $276 million in illicit gains.

According to the SEC's complaint, Martoma received a $9.3 million bonus at the end of 2008 - a significant portion of which was attributable to the illegal profits that the hedge funds managed by CR Intrinsic and the other investment advisory firm had generated in this scheme. Dr. Gilman, who was generally paid $1,000 per hour as a consultant for the expert network firm, received more than $100,000 for his consultations with Martoma and others at the hedge fund advisory firms. Dr. Gilman also received approximately $79,000 from Elan for his consultations concerning bapi in 2007 and 2008.

The SEC's complaint charges each of the defendants with violating Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and seeks a final judgment ordering them to disgorge their ill-gotten gains plus prejudgment interest, ordering them to pay financial penalties, and permanently enjoining them from future violations of these provisions of the federal securities laws.

Dr. Gilman has agreed to pay more than $234,000 in disgorgement and prejudgment interest. He also agreed to a permanent injunction against further violations of the federal securities laws. The proposed settlement is subject to approval by the court, which also will determine at a later date whether any additional financial penalty is appropriate.

TWIN SUNS AND MULTIPLE PLANETS

FROM:  NASA

　

NASA's Kepler Mission Discovers Multiple Planets Orbiting Twin Suns

NASA's Kepler mission has discovered the first transiting circumbinary system -- multiple planets orbiting two suns -- 4,900 light-years from Earth, in the constellation Cygnus, proving that more than one planets can form and survive in orbit around a binary star. The inner planet, Kepler-47b, orbits the pair of stars in less than 50 days. It is thought to be a sweltering world, where the destruction of methane in its super-heated atmosphere might lead to a thick haze that could blanket the planet. At three times the radius of Earth, Kepler-47b is the smallest known transiting circumbinary planet. The outer planet, Kepler-47c, orbits its host pair every 303 days, placing it in the so-called 'habitable zone,' the region in a planetary system where liquid water might exist on the surface of a planet. While not a world hospitable for life, Kepler-47c is thought to be a gaseous giant, slightly larger than Neptune, where an atmosphere of thick bright water clouds might exist.

HOSPITALS AGREE TO PAY $10.1 MILLION TO RESOLVE FALSE CLAIMS ALLEGATIONS

FROM: U.S. DEPARTMENT OF JUSTICE

Tuesday, November 20, 2012

Group of Owned and Affiliated Florida Hospitals Agree to Pay US $10.1 Million to Resolve False Claims Act Allegations

Morton Plant Mease Health Care Inc. and its affiliated hospitals (Morton Plant) have agreed to pay $10,169,114 to the federal government to resolve allegations that they violated the False Claims Act by submitting false claims for services rendered to Medicare patients, the Justice Department announced today. Morton Plant owns and operates, or is affiliated with, Morton Plant Hospital, St. Joseph’s Hospital, Morton Plant North Bay Hospital, St. Anthony’s Hospital, Mease Countryside Hospital and Mease Dunedin Hospital. These hospitals are part of the BayCare Health System in Florida’s Pinellas, Hillsborough and Pasco counties.

The settlement announced today resolves allegations that, between July 1, 2006 and July 31, 2008, Morton Plant improperly billed for certain interventional cardiac and vascular procedures as inpatient care when those services should have been billed as less costly outpatient care or as observational status.

"Overbilling the government for routine procedures wastes valuable resources that could be used to care for other patients," said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division. "At a time when we are trying to reduce public spending, it is especially important to ensure that hospitals do not overcharge the government by improperly inflating their billing."

"We hold medical providers to a high standard in our district, and we will not hesitate to hold them to account when we find evidence of serious misconduct," said Robert O’Neill, U.S. Attorney for the Middle District of Florida. "This settlement should send a strong message that health care fraud enforcement is a growing priority in our office."

Today’s settlement resolves a qui tam, or whistleblower, lawsuit filed by Randi Ferrare, a former director of Health Management Services at Morton Plant Hospital. Under the False Claims Act, private citizens, known as relators, can bring suit on behalf of the United States and

share in any recovery. Ms. Ferrare will receive over $1.8 million as her share of the government’s recovery.

"When hospitals attempt to boost profits with improper inpatient admissions, they squander scarce dollars from Medicare and Medicaid," said Daniel R. Levinson, Inspector General of the Department of Health & Human Services. "Our corporate integrity agreements hold providers accountable for preventing such abuse of government health care programs."

This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.1 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $13.8 billion

The United States’ investigation was conducted by the U.S. Attorney’s Office for the Middle District of Florida, the Civil Division of the Department of Justice, the FBI and the Department of Health and Human Services, Office of Inspector General.

The claims settled by this agreement are allegations only; there has been no determination of liability.

ESA Portal - Spain - Astronautas regresan con nuevas formas de vida

ESA Portal - Spain - Astronautas regresan con nuevas formas de vida

SURINAME NATIONAL DAY

From:  CIA World Factbook

FROM: U.S. DEPARTMENT OF STATE
Suriname National Day Message
Press Statement
Hillary Rodham Clinton
Secretary of State
Washington, DC
November 20, 2012

On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the people of Suriname as you celebrate 37 years of independence this November 25.

Our two countries share a rich tradition of cultural and religious diversity that is a foundation for a stronger future. Your efforts to preserve your natural resources and environment are setting an example for others. Through the Caribbean Basin Security Initiative, our two countries are increasing security for the people of the region, strengthening democracy, rule of law and transparent government, and expanding the circle of human rights.

I wish you a happy, safe, and prosperous independence day as you enjoy some of Suriname’s festivities held for the first time in Nickerie, and honor your country’s heritage during the annual parade.

　

Locator Map Credit:  CIA World Factbook

ADDITIONAL INFORMATION FROM CIA WORLD FACTBOOK
First explored by the Spaniards in the 16th century and then settled by the English in the mid-17th century, Suriname became a Dutch colony in 1667. With the abolition of slavery in 1863, workers were brought in from India and Java. Independence from the Netherlands was granted in 1975. Five years later the civilian government was replaced by a military regime that soon declared a socialist republic. It continued to exert control through a succession of nominally civilian administrations until 1987, when international pressure finally forced a democratic election. In 1990, the military overthrew the civilian leadership, but a democratically elected government - a four-party coalition - returned to power in 1991. The coalition expanded to eight parties in 2005 and ruled until August 2010, when voters returned former military leader Desire BOUTERSE and his opposition coalition to power.

　

Aktuelle Karrierechancen bei der ESA

Aktuelle Karrierechancen bei der ESA

THE OLD GUARD INFANTRY REGIMENT

Army Spc. Dmitry Malkov, an infantryman with Caisson Platoon, 3rd U.S. Infantry Regiment (The Old Guard), trains a soldier on how to prepare and maintain equipment at the horse stables on Joint Base Myer-Henderson Hall, Va., Oct. 18, 2012. U.S. Army photo by Sgt. Luisito Brooks

FROM: U.S. DEPARTMENT OF DEFENSE

Face of Defense: 'Old Guard' Soldiers Gain Unique Skills
By Army Sgt. Luisito Brooks
3rd U.S. Infantry Regiment

ARLINGTON, Va., Nov. 14, 2012 - For many soldiers, serving in the 3rd U.S. Infantry Regiment (The Old Guard) is an opportunity to experience and perform missions that are truly unique.

Many of these opportunities can be found within the regiment's specialty platoons, such as the U.S. Army Drill Team and the U.S. Army Caisson Platoon.

Often, soldiers will come into these units with little to no experience in the required skills. That's why each of these platoons has very specific training programs to turn these soldiers into experts at what they do.

"We are always looking for [soldiers] that show good initiative and discipline to join our platoon," said Sgt. Drew Hilliard, Caisson Platoon's basic horsemanship course noncommissioned officer in charge. "No matter what platoon you are in, the preparation and guidance you're given allows you to grow and learn skills."

The Caisson Platoon has the solemn mission of conveying fallen soldiers to their final resting place in Arlington National Cemetery. For soldiers with no horseback riding experience, training is critical.

"Everyone struggles at first, but if they push themselves then any mission is possible," Hilliard said. "It is my job to help them be the best caisson soldiers they can be. I get to help other soldiers appreciate the unit and caisson because of what we represent."

Spc. Dmitry Malkov went into his training with the Caisson Platoon with no previous experience in his new skill set. During the training, Malkov learned how to perform ground work, gear maintenance, horse care and riding. Now he's an instructor in the nine-week-long course.

"If you would have told me about two years ago that I was going to join the Army and go to a unit where I could train and take care of horses, I would have said that you were a little crazy," said Malkov, who hails from the Ukraine. "I used to be a little worried around all these large animals, but I quickly learned that they are no more dangerous to me than I am to them."

With a less-solemn task, but no less rigid standards of performance, the Drill Team also tailors its training to meet the needs of the team and its newest members. Tasked with showcasing the U.S. Army at home and abroad, the team must know its routines and techniques inside-out and be able to perform them flawlessly in front of huge crowds.

Sgt. Mychael Begaye, an infantryman with no prior training in rifle drilling, related how he found the instruction.

"The training was great, not only because it covers the basic fundamentals to be successful, but it also has great practices that I can apply in other areas of my career and in life," Begaye said.

"Basic rifle manual teaches us discipline on and off the front stage," he added. "Some of the routines require you to use muscles that have never been used before. I learned how to overcome challenges mentally and physically, and now I am a better soldier because of it."

With the team's high-flying aerial displays of bayonet-tipped 1903 Springfield rifles, there are very small margins for error. Begaye said the most important aspect for these soldiers is the pursuit of perfection.

"Each move requires the highest amount of focus for us to be successful," he said. "I was a little nervous with the rifle at first because I have never done anything like it, but I learned to just take control of it and execute the maneuvers. Even though it can be very dangerous, we train enough that many possible injuries are prevented."

With his newfound confidence, Begaye has set even bigger goals for himself.

"One of my goals now is to perform in front of thousands of people and showcase the Army," Begaye said. "This team travels the world to show how disciplined, tough and trained we are."

Having overcome their own obstacles to earn positions in The Old Guard's specialty platoons, Hillard and Begaye said they are grateful they took that chance.

"Having the opportunity to do a job not found anywhere [else] in the Army is really fortunate for the soldiers of this unit," Begaye said. "All of these different platoons can be found in one unit, and only one percent of the Army does what we are able to learn and do."

WOMAN PLEADS GUILTY TO ONLINE MARKETPLACE FRAUD

Online Auto Auction

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, November 21, 2012

Hungarian Woman Pleads Guilty in Tennessee for Role in International Fraud Scheme Involving Online Marketplace Websites

WASHINGTON – A Hungarian woman pleaded guilty today in Nashville, Tenn., for her role in moving approximately $550,000 in illicit proceeds derived from an international online marketplace fraud scheme, announced Assistant Attorney General Lanny Breuer of the Justice Department’s Criminal Division and U.S. Attorney Jerry E. Martin for the Middle District of Tennessee.

Beatrix Boka, 34, of Hungary, pleaded guilty today before U.S. District Judge Aleta A. Trauger in the Middle District of Tennessee to one count of conspiracy to commit bank and wire fraud. Boka and co-conspirator Aleksandar Kunkin, also of Hungary, were charged in a one-count indictment by a federal grand jury in August 2012. Kunkin pleaded guilty on Nov. 15, 2012.

Boka admitted in her plea hearing today that members of the conspiracy fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, co-conspirators sent emails that directed victims to wire payments to certain bank accounts, and victims never received the vehicles for which they paid.

Boka further admitted that, from May to June 2012, she and Kunkin visited Bank of America branches in North Carolina and South Carolina and opened bank accounts under false identities, which were supported by fraudulent identity documents including counterfeit Hungarian passports. Boka pleaded guilty to opening 17 such accounts, each under a different name. In total, 36 victims sent approximately $550,102 to accounts opened by Boka and Kunkin. Boka admitted that she and Kunkin subsequently sent the bulk of the money to co-conspirators located abroad.

According to the criminal complaint affidavit, in June 2012, Boka and Kunkin traveled together to Madison, Tenn., where Kunkin was apprehended as he attempted to open an account at a Bank of America branch using a Hungarian passport bearing an alias. Boka was subsequently apprehended in Kennesaw, Ga., when she attempted to open an account at a Bank of America branch using a Hungarian passport bearing an alias.

Boka faces a maximum sentence of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 21, 2013.

The case is being prosecuted by Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee and Trial Attorney Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section. The case is being investigated by the FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department, and the Cobb County, Ga., Sheriff’s Department.

SUMMIT ON THE LORD'S RESISTANCE ARMY

Photo:  Ugandan Countryside.  Photo Credit:  CIA World Factbook 

FROM: U.S. STATE DEPARTMENT

Global Summit on the Lord's Resistance Army
Remarks
Johnnie Carson
Assistant Secretary, Bureau of African Affairs
Hosted by Invisible Children
Washington, DC
November 17, 2012

Thank you for the kind introduction. Let me express my warm welcome to the distinguished ministers, foreign officials, diplomats, civil society leaders, advocates and activists here today. For those of you visiting, welcome to Washington D.C.

I’m inspired to be here with you today. Your presence sends a strong signal that people across the globe, especially young people, will not stand by and be silent as armed groups commit senseless atrocities and terrorize innocent communities. The results may not always be direct or immediate, but know this – your voices make a difference. As the late Dr. Martin Luther King Jr. said, the arc of the moral universe is long, but it bends toward justice.

Great distances and different worldviews often divide us. However, particular events in history break down those barriers and connect us on a personal level, on a human level. They touch our sense of what is fundamentally right and wrong. The Lord’s Resistance Army is one such phenomenon. As President Obama said two years ago, the LRA’s actions are an affront to human dignity. Those abducted must be freed, those wounded must heal, and those responsible must be brought to justice.

Over the last several years, the people and governments of Uganda, the Central African Republic, the Democratic Republic of the Congo, and South Sudan have worked to bring an end to the threat posed by the LRA. They have endured difficult circumstances and made sacrifices in search of peace. In coordination with the African Union, the United Nations, and other international partners, the United States has provided cross-cutting support to these regional efforts. We believe it is in our collective interest to help our African partners to strengthen their capacity to resolve conflicts and establish lasting security.

When it comes to the LRA, it is tempting to talk about a silver bullet or a ready-made solution. However, history has taught us that it is not that simple or straightforward. Anyone who has spent time in the remote areas where the LRA operates or studied the LRA over the years can testify to that. That is why we are pursuing a comprehensive approach, supporting both military and civilian efforts. Over the past year, the United States has deployed military advisors and increased our logistical support to regional military operations. At the same time, we have deployed civilian officers and expanded programs to promote defections from the LRA, establish communications networks, and empower affected communities.

Despite enormous challenges, the region is making progress in addressing this threat. The LRA has been weakened and pushed out of many areas. Hundreds of abductees have been rescued. There has not been a reported LRA attack in South Sudan for over a year. In May, the Ugandan military captured LRA senior commander Ceasar Acellam, long considered one of the LRA’s top five commanders. In August, the Ugandan military attacked the group led by senior LRA commander Dominic Ongwen, who is wanted by the International Criminal Court, and seized their campsite.

Defections are also on the rise. Since Acellam’s capture, several mid-level officers have left the group. In the last month alone, more than 19 people have defected or escaped from the LRA. We are working with a range of partners in the region, including Invisible Children, to airdrop more leaflets, expand radio broadcasts, and establish safe reporting sites to encourage the remaining LRA to peacefully surrender from the group. We are also supporting communities in establishing new strategies and networks, incorporating High Frequency Radios, to increase their own security. And our delivery of humanitarian relief continues.

This is not to suggest that the situation is resolved or that Joseph Kony will be apprehended tomorrow. Communities remain vulnerable, the top fugitives remain at large, and the LRA continues to have a significant physical and psychological impact across multiple countries. Ending the LRA threat will require more effort, more time, and even a little bit of luck. But as we gather today, I think we can confidently say that we are moving in the right direction. We have come a long way over the last several years and with the support of international partners, the AU, UN, and NGOs, the region is moving closer to turning the page on this tragic chapter.

Achieving that ultimate goal of ending the LRA threat and establishing security will require the sustained resolve and collaboration of all those involved, beginning first and foremost with the governments in the region. Although CAR, the DRC, South Sudan and Uganda may have their differences, they are bound together by a desire to protect their people from this regional threat. Their troops and their citizens are on the frontlines. Their continued partnership and leadership, more than anything else, will determine the success of this effort. We believe the African Union’s involvement can help to solidify that regional cooperation.

At the same time though, there are many other stakeholders who have critical roles to play. One of the remarkable things about this effort is that it has brought together an unusual, non-traditional coalition – involving UN peacekeepers and civil affairs officers, former abductees, community radio operators, religious leaders, local self-defense groups, aid workers, international diplomats, peace mediators, philanthropists, and not to forget, all of you here today. As we move forward, we must continue to strengthen this coalition and to grow it by reaching out to new groups and forging new partnerships.

The theme of your Summit is "move." But when you think about it, just moving is not enough. It’s how and where you move that matters. And when we move together, we can have a resounding impact. That is what has made this regional effort, this movement, and this coalition so effective over the past several years, and that’s what is needed to sustain this progress.

So let’s keep moving together. If we continue to do so, I believe we’ll continue to move in the right direction toward a future free of the LRA, and ultimately a future where civilians are protected and such horrific abuses are deterred. Thank you for being here and for your commitment to this important work.