A PUBLICATION OF RANDOM U.S.GOVERNMENT PRESS RELEASES AND ARTICLES
Friday, November 30, 2012
RECENT U.S. NAVY PHOTOS
FROM: U.S. NAVY, USS IWO JIMA
USS Iwo Jima
at sea with USNS Laramie.
MEDITERRANEAN SEA (Nov. 28, 2012) The multipurpose amphibious assault ship USS Iwo Jima (LHD 7) transits alongside the Military Sealift Command fleet replenishment oiler USNS Laramie (T-AO 203) during a replenishment at sea. Iwo Jima is the flagship of the Iwo Jima Amphibious Ready Group with the embarked 24th Marine Expeditionary Unit and is deployed in support of maritime security operations and theater security cooperation efforts in the U.S. 6th Fleet area of responsibility. 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 Seaman Cyrus Roson/Released) 121128-N-YO707-292.
PENSACOLA, Fla. (Nov. 28, 2012) Pilots prepare to perform a touch and go maneuver aboard Fat Albert, a C-130 Hercules aircraft assigned to the U.S. Navy flight demonstration squadron, the Blue Angels, during a training flight as Blue Angels F/A-18 Hornet pilots taxi for takeoff at Naval Air Station Pensacola. An all-Marine crew of three pilots and five enlisted aircrew fly Fat Albert, provide logistical support for the team and open the air show by displaying the tactical flight characteristics of the C-130 aircraft. The U.S. Navy has a 237-year heritage of defending freedom and projecting and protecting U.S. interests around the globe. Join the conversation on social media using #warfighting. (U.S. Navy photo by Mass Communication Specialist 1st Class Rachel McMarr/Released) 121128-N-DI587-045
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NEWS FROM AFGHANISTAN FOR NOVEMBER 30, 2012
Helping Hand In Afghanistan. Photo Credit: U.S. Marines. |
Combined Force Arrests 2 Haqqani Insurgents
From an International Security Assistance Force Joint Command News Release
KABUL, Afghanistan, Nov. 30, 2012 - An Afghan and coalition security force arrested a Haqqani leader and a Haqqani facilitator in Afghanistan's Logar province today, military officials reported.
The arrested insurgent leader acquired weapons for Haqqani fighters and directed attacks against Afghan and coalition forces throughout the province's Muhammad Aghah district, officials said. At the time of his arrest, the insurgent leader was overseeing the movement of improvised explosive devices and Haqqani fighters in preparation for an attack.
The detained facilitator had planned and executed attacks against Afghan and coalition forces within the Muhammad Aghah district while managing the transfer of weapons and IEDs to Haqqani fighters.
The security force also detained one other suspected insurgent and seized multiple firearms.
In other Afghanistan operations today:
-- In Helmand province, a combined force arrested a Taliban financier. The detained insurgent financier managed money for the Taliban in several districts within the province and was directly responsible for distributing funds to Taliban fighters for their use in planning and executing attacks against Afghan and coalition forces. The security force also detained one other suspect.
-- A combined force arrested a Taliban facilitator in Kandahar province. The facilitator was responsible for distributing and coordinating the movement of weapons and ammunition for the Taliban in the area.
And in Jowzjan province yesterday, a combined force arrested a Taliban facilitator who planned and directed IED attacks against Afghan and coalition forces. The security force also detained one other suspect and seized a number of IED components.
ANOTHER MEMBER OF ONLINE PIRACY GROUP "IMAGiNE" SENTENCED TO PRISON
Photo: Pirate Flag. Credit: Wikimedia. |
Thursday, November 29, 2012
Third Member of Internet Piracy Group "IMAGiNE" Sentenced in Virginia to 40 Months in Prison for Criminal Copyright Conspiracy
Fifth Member of IMAGiNE Pleaded Guilty Today for Role in Conspiracy
WASHINGTON – A third member of the Internet piracy group "IMAGiNE" was sentenced today to 40 months in prison, and a fifth member of IMAGiNE pleaded guilty today for his role in the conspiracy, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Neil H. MacBride for the Eastern District of Virginia and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) in Washington, D.C.
Gregory A. Cherwonik, 53, of Canandaigua, N.Y., was sentenced today by Senior U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia. In addition to his prison term, Cherwonik was sentenced to serve three years of supervised release and ordered to pay $15,000 in restitution. Cherwonik pleaded guilty to one count of conspiracy to commit criminal copyright infringement on July 11, 2012.
Javier E. Ferrer, 41, of New Port Richey, Fla., pleaded guilty today to one count of conspiracy to commit criminal copyright infringement before U.S. District Judge Henry C. Morgan Jr. in the Eastern District of Virginia. At sentencing, scheduled for March 14, 2013, Ferrer faces a maximum sentence of five years in prison.
Cherwonik was indicted along with three other defendants on April 18, 2012, for their roles in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release Internet copies of movies only showing in theaters. Ferrer was charged in an information on Sept. 13, 2012, for his role in the IMAGiNE Group.
According to court documents, Cherwonik, Ferrer and their co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters. Cherwonik admitted to ordering a receiver to be used to capture the audio sound tracks of copyrighted movies (referred to as "capping"). Cherwonik wrote the computer code for the IMAGiNE Group’s website. He also worked with another IMAGiNE Group leader to establish a PayPal account for donations made to support the site and to create the new website, which was hosted on a computer server in France. Ferrer admitted he secretly used a video camera to film copyrighted motion pictures in movie theatres. He then used software to synchronize an audio file with his illegally obtained video of the movie to create a completed movie file suitable for sharing over the Internet. According to testimony by a representative of the Motion Picture Association of America, the IMAGiNE Group constituted the most prolific motion picture piracy release group operating on the Internet from September 2009 through September 2011.
Co-defendants Sean M. Lovelady, Willie O. Lambert and Jeramiah B. Perkins each pleaded guilty to one count of conspiracy to commit criminal copyright infringement on May 9, June 22 and Aug. 29, 2012, respectively. Lambert and Lovelady were sentenced on Nov. 2, 2012, to 30 months and 23 months in prison, respectively. Perkins is scheduled to be sentenced on Jan. 3, 2013.
The investigation of the case and the arrests were conducted by agents with HSI. Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.
SPACE TRAVEL: FISSION REACTOR ENGINE
Researchers Test Novel Power System for Space Travel
Joint DOE and NASA team demonstrates simple, robust fission reactor prototype
LOS ALAMOS, NEW MEXICO, November 26, 2012—A team of researchers, including engineers from Los Alamos National Laboratory, has demonstrated a new concept for a reliable nuclear reactor that could be used on space flights.
The research team recently demonstrated the first use of a heat pipe to cool a small nuclear reactor and power a Stirling engine at the Nevada National Security Site’s Device Assembly Facility near Las Vegas. The Demonstration Using Flattop Fissions (DUFF) experiment produced 24 watts of electricity. A team of engineers from Los Alamos, the NASA Glenn Research Center and National Security Technologies LLC (NSTec) conducted the experiment.
Heat pipe technology was invented at Los Alamos in 1963. A heat pipe is a sealed tube with an internal fluid that can efficiently transfer heat produced by a reactor with no moving parts. A Stirling engine is a relatively simple closed-loop engine that converts heat energy into electrical power using a pressurized gas to move a piston. Using the two devices in tandem allowed for creation of a simple, reliable electric power supply that can be adapted for space applications.
Researchers configured DUFF on an existing experiment, known as Flattop, to allow for a water-based heat pipe to extract heat from uranium. Heat from the fission reaction was transferred to a pair of free-piston Stirling engines manufactured by Sunpower Inc., based in Athens Ohio. Engineers from NASA Glenn designed and built the heat pipe and Stirling assembly and operated the engines during the experiment. Los Alamos nuclear engineers operated the Flattop assembly under authorization from the National Nuclear Security Administration (NNSA).
DUFF is the first demonstration of a space nuclear reactor system to produce electricity in the United States since 1965, and the experiment confirms basic nuclear reactor physics and heat transfer for a simple, reliable space power system.
"The nuclear characteristics and thermal power level of the experiment are remarkably similar to our space reactor flight concept," said Los Alamos engineer David Poston. "The biggest difference between DUFF and a possible flight system is that the Stirling input temperature would need to be hotter to attain the required efficiency and power output needed for space missions."
"The heat pipe and Stirling engine used in this test are meant to represent one module that could be used in a space system," said Marc Gibson of NASA Glenn. "A flight system might use several modules to produce approximately one kilowatt of electricity."
Current space missions typically use power supplies that generate about the same amount of electricity as one or two household light bulbs. The availability of more power could potentially boost the speed with which mission data is transmitted back to Earth, or increase the number of instruments that could be operated at the same time aboard a spacecraft.
"A small, simple, lightweight fission power system could lead to a new and enhanced capability for space science and exploration", said Los Alamos project lead Patrick McClure. "We hope that this proof of concept will soon move us from the old-frontier of Nevada to the new-frontier of outer space".
Los Alamos research on the project was made possible through Los Alamos’s Laboratory-Directed Research and Development Program (LDRD), which is funded by a small percentage of the Laboratory’s overall budget to invest in new or cutting-edge research. NASA Glenn and NSTec also used internal support to fund their contributions to the experiment.
"Perhaps one of the more important aspects of this experiment is that it was taken from concept to completion in 6 months for less than a million dollars," said Los Alamos engineer David Dixon. "We wanted to show that with a tightly-knit and focused team, it is possible to successfully perform practical reactor testing."
An animation of the new reactor concept can be seen on Los Alamos National Laboratory’s YouTube channel at: http://www.youtube.com/watch?v=KobRfGqlpGc&feature=youtu.be
Researchers Test Novel Power System for Space Travel
Joint DOE and NASA team demonstrates simple, robust fission reactor prototype
LOS ALAMOS, NEW MEXICO, November 26, 2012—A team of researchers, including engineers from Los Alamos National Laboratory, has demonstrated a new concept for a reliable nuclear reactor that could be used on space flights.
The research team recently demonstrated the first use of a heat pipe to cool a small nuclear reactor and power a Stirling engine at the Nevada National Security Site’s Device Assembly Facility near Las Vegas. The Demonstration Using Flattop Fissions (DUFF) experiment produced 24 watts of electricity. A team of engineers from Los Alamos, the NASA Glenn Research Center and National Security Technologies LLC (NSTec) conducted the experiment.
Heat pipe technology was invented at Los Alamos in 1963. A heat pipe is a sealed tube with an internal fluid that can efficiently transfer heat produced by a reactor with no moving parts. A Stirling engine is a relatively simple closed-loop engine that converts heat energy into electrical power using a pressurized gas to move a piston. Using the two devices in tandem allowed for creation of a simple, reliable electric power supply that can be adapted for space applications.
Researchers configured DUFF on an existing experiment, known as Flattop, to allow for a water-based heat pipe to extract heat from uranium. Heat from the fission reaction was transferred to a pair of free-piston Stirling engines manufactured by Sunpower Inc., based in Athens Ohio. Engineers from NASA Glenn designed and built the heat pipe and Stirling assembly and operated the engines during the experiment. Los Alamos nuclear engineers operated the Flattop assembly under authorization from the National Nuclear Security Administration (NNSA).
DUFF is the first demonstration of a space nuclear reactor system to produce electricity in the United States since 1965, and the experiment confirms basic nuclear reactor physics and heat transfer for a simple, reliable space power system.
"The nuclear characteristics and thermal power level of the experiment are remarkably similar to our space reactor flight concept," said Los Alamos engineer David Poston. "The biggest difference between DUFF and a possible flight system is that the Stirling input temperature would need to be hotter to attain the required efficiency and power output needed for space missions."
"The heat pipe and Stirling engine used in this test are meant to represent one module that could be used in a space system," said Marc Gibson of NASA Glenn. "A flight system might use several modules to produce approximately one kilowatt of electricity."
Current space missions typically use power supplies that generate about the same amount of electricity as one or two household light bulbs. The availability of more power could potentially boost the speed with which mission data is transmitted back to Earth, or increase the number of instruments that could be operated at the same time aboard a spacecraft.
"A small, simple, lightweight fission power system could lead to a new and enhanced capability for space science and exploration", said Los Alamos project lead Patrick McClure. "We hope that this proof of concept will soon move us from the old-frontier of Nevada to the new-frontier of outer space".
Los Alamos research on the project was made possible through Los Alamos’s Laboratory-Directed Research and Development Program (LDRD), which is funded by a small percentage of the Laboratory’s overall budget to invest in new or cutting-edge research. NASA Glenn and NSTec also used internal support to fund their contributions to the experiment.
"Perhaps one of the more important aspects of this experiment is that it was taken from concept to completion in 6 months for less than a million dollars," said Los Alamos engineer David Dixon. "We wanted to show that with a tightly-knit and focused team, it is possible to successfully perform practical reactor testing."
An animation of the new reactor concept can be seen on Los Alamos National Laboratory’s YouTube channel at: http://www.youtube.com/watch?v=KobRfGqlpGc&feature=youtu.be
U.S. LABOR DEPARTMENT SUES DALLAS-BASED COMPANY FOR BACK MINIMUM AND OVERTIME WAGES
US Labor Department sues Dallas-based The Christmas Light Co. to secure more than $240,000 in minimum and overtime back wages
DALLAS — The U.S. Department of Labor has filed a lawsuit against The Christmas Light Co. Inc. and owner William F. Rathburn to recover approximately $240,881 in wages and an additional amount in liquidated damages on behalf of 233 employers who installed and removed lights for the company. An investigation in Dallas by the department's Wage and Hour Division found that the company violated the Fair Labor Standards Act by failing to pay 233 installers and removers the minimum and overtime wages required by law.
"The Labor Department holds employers accountable when they do not properly pay their workers," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. "Failing to pay minimum and overtime wages is unacceptable. Such behavior robs workers of their rightful wages and undercuts those hardworking and conscientious employers who obey the law. This lawsuit demonstrates that the department will use all enforcement tools available, including litigation, to recover workers' wages and ensure a level playing field for law-abiding employers."
The complaint was filed in the Northern District of Texas, Dallas Division seeking back wages, liquidated damages and an injunction against future violations of the FLSA, which provides that employers who violate the law are, as a general rule, liable to employees for their back wages and an equal amount in liquidated damages. Liquidated damages are paid directly to the affected employees.
The investigation determined that the company paid employees a flat rate for installing and removing Christmas lights without regard to the number of hours the employees had worked. Investigators also found that in most cases employees were paid "straight time" rather than overtime at time and one-half their regular rates for hours worked over 40 in a week, as required. Additionally, records required by the FLSA were not maintained.
The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked. An overtime premium rate takes into account commissions, bonuses and incentive pay. Additionally, employers must maintain accurate time and payroll records.
FEMA AWARDS $39 MILLION TO REMOVE DEBRIS LEFT BY HURRICANE SANDY
FEMA Awards $39 Million in Debris Removal Funding
NEW YORK – The Federal Emergency Management Agency has approved two Public Assistance (PA) grants totaling more than $39 million to reimburse the city of Long Beach and Nassau County for 75 percent of their costs for debris removal due to Hurricane Sandy.
$24 million will go to the city of Long Beach; $15 million will be awarded to Nassau County. FEMA does not perform the actual debris removal work; it reimburses the local governments that contract for the eligible work.
Strong winds and heavy rains from Hurricane Sandy brought down trees, tree limbs and power lines throughout Nassau County. Within the city of Long Beach, heavy rains and a six foot storm surge deposited more than 330,000 cubic yards of debris, 400,000 cubic yards of sand and 2,550 cubic yards of vegetative debris throughout the city.
Collecting and clearing out piles of debris has been one of the most difficult and time-consuming challenges of the recovery. Through hard work and persistence over the past month, debris piles are dwindling and, in many cases, disappearing altogether. The FEMA PA program reimburses state and local governments and certain private nonprofit organizations 75 percent of eligible debris removal costs. In order to qualify, damage must be a direct result of Hurricane Sandy.
"FEMA is committed to getting people back into their homes" said Federal Coordinating Officer Michael F. Byrne. "A critical step is clearing debris out of the way so the recovery can progress. We will continue to work alongside our partners in New York state and local government until the job is finished."
Under FEMA’s PA program, FEMA obligates funds to the state for, at a minimum, 75 percent of eligible costs. The remaining 25 percent is covered provided by non-federal funds. The state forwards the federal funds to the eligible local governments or organizations that incurred costs.
For debris removal to be eligible, the work must be necessary to:
Eliminate immediate threats of significant damage to improved public and private property when the measures are cost effective, or
Ensure the economic recovery of the affected community to the benefit of the community-at-large.
SEC CHARGES TWO BROKERS WITH TRADING ON NONPUBLIC INFORMATION REGARDING THE ACQUISITION OF SPSS INC., BY IBM CORPORATION
Photo: NYSE. Credit: Wikimedia. |
Washington, D.C., Nov. 29, 2012 — The Securities and Exchange Commission today charged two retail brokers who formerly worked at a Connecticut-based broker-dealer with insider trading on nonpublic information ahead of IBM Corporation’s acquisition of SPSS Inc.
The SEC alleges that Thomas C. Conradt learned confidential details about the merger from his roommate, a research analyst who got the information from an attorney working on the transaction who discussed it in confidence. Conradt purchased SPSS securities and subsequently tipped his friend and fellow broker David J. Weishaus, who also traded. The insider trading yielded more than $1 million in illicit profits. The SEC’s investigation uncovered instant messages between Conradt and Weishaus where they openly discussed their illegal activity. The SEC’s investigation is continuing.
"When licensed professionals who are privileged to work in the securities industry violate legal duties and enrich themselves at investors’ expense, it undermines public confidence in the integrity of the markets," said Daniel M. Hawke, Director of the SEC’s Philadelphia Regional Office. "As industry professionals, Conradt and Weishaus clearly understood that what they were doing was wrong, but did so anyway while knowing the consequences they would face if caught."
In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Conradt and Weishaus, who live in Denver and Baltimore respectively.
According to the SEC’s complaint filed in federal court in Manhattan, the scheme occurred in 2009. Conradt revealed in instant messages that he received the information from the research analyst and warned Weishaus that they needed to "keep this in the family." Weishaus agreed, typing "i don't want to go to jail." They went on to discuss other people who have been prosecuted for insider trading. In another series of instant messages, Conradt bragged that he was "makin everyone rich" by sharing the nonpublic information. Weishaus later noted, "this is gonna be sweet."
The SEC alleges that the research analyst’s attorney friend sought moral support, reassurance, and advice when he privately told the research analyst about his new assignment at work on the SPSS acquisition by IBM. In describing the magnitude of the assignment, the lawyer disclosed material, nonpublic information about the proposed transaction, including the anticipated transaction price and the identities of the acquiring and target companies. The associate expected the research analyst to maintain this information in confidence and refrain from trading on this information or disclosing it to others.
The SEC alleges that Conradt, Weishaus, and other downstream tippees purchased common stock and call options in SPSS. A call option is a security that derives its value from the underlying common stock of the issuer and gives the purchaser the right to buy the underlying stock at a specific price within a specified period of time. Typically, investors will purchase call options when they believe the stock of the underlying securities is going up. Conradt, Weishaus, and other downstream tippees invested so heavily in SPSS securities that the investments accounted for 76 percent to 100 percent of their various brokerage accounts. Conradt and Weishaus both hold law degrees. Conradt is admitted to practice law in Maryland, and he passed the Colorado bar examination administered in February 2012.
The SEC alleges that Conradt and Weishaus violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The SEC is seeking disgorgement of ill-gotten gains with prejudgment interest and financial penalties, and a permanent injunction against the brokers.
The SEC’s investigation is being conducted by Mary P. Hansen, A. Kristina Littman and John S. Rymas, in the SEC’s Philadelphia Regional Office. G. Jeffrey Boujoukos and Catherine E. Pappas in the Philadelphia office are handling the litigation. The SEC acknowledges the assistance of the U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation.
ROMANIA'S NATIONAL DAY
Map: Romania. Credit: CIA World Factbook |
FROM: U.S. STATE DEPARTMENT
On the Occasion of Romania's National Day
Press Statement
Hillary Rodham Clinton
Secretary of State
Washington, DC
November 30, 2012
On behalf of President Obama and the people of the United States, I am delighted to send best wishes to all Romanians as you celebrate your Unification Day this December 1st.
This is a reminder of the important contributions your country continues to make toward peace and prosperity around the world. Your support for NATO and other international organizations have helped to advance the ideals of freedom and democracy. Together, we are working in the Balkans and Afghanistan to give millions of people hope for a brighter future.
The United States looks forward to continuing our partnership for many years and is grateful to have a strong friend and ally in Romania.
Romania Locator Map. Credit: CIA World Factbook. |
ADDITONAL INFORMATION FROM CIA WORLD FACTBOOK
The principalities of Wallachia and Moldavia - for centuries under the suzerainty of the Turkish Ottoman Empire - secured their autonomy in 1856; they were de facto linked in 1859 and formally united in 1862 under the new name of Romania. The country gained recognition of its independence in 1878. It joined the Allied Powers in World War I and acquired new territories - most notably Transylvania - following the conflict. In 1940, Romania allied with the Axis powers and participated in the 1941 German invasion of the USSR. Three years later, overrun by the Soviets, Romania signed an armistice. The post-war Soviet occupation led to the formation of a Communist "people's republic" in 1947 and the abdication of the king. The decades-long rule of dictator Nicolae CEAUSESCU, who took power in 1965, and his Securitate police state became increasingly oppressive and draconian through the 1980s. CEAUSESCU was overthrown and executed in late 1989. Former Communists dominated the government until 1996 when they were swept from power. Romania joined NATO in 2004 and the EU in 2007.
IRON DOME DEFENSE SYSTEM HELPED TO DEFEND ISRAEL FROM HUNDREDS OF ROCKETS
FROM: U.S. DEPARTMENT OF DEFENSE
Panetta, Barak Discuss Iron Dome Success, Israeli Defenses
By Jim Garamone
American Forces Press Service
WASHINGTON, Nov. 29, 2012 - Defense Secretary Leon E. Panetta and Israeli Defense Minister Ehud Barak praised the performance of the Iron Dome air defense system during a press conference here today.
Panetta said the Iron Dome system, which was developed by the Israelis and funded in large part by the United States, prevented war following hundreds of recent Palestinian rocket attacks on Israel from the Gaza Strip. The two men spoke to reporters after meeting at the Pentagon.
"I'm very proud that our two countries cooperated so closely to field the Iron Dome anti-rocket system," Panetta said, noting the system performed remarkably well during the rocket onslaught. "It intercepted more than 400 rockets bound for Israeli population centers, for a roughly 85 percent success rate overall," he said.
"Its success is a testament to the ingenuity of the Israeli people and to the commitment of the United States to Israel's security," he said. "Today, I assured the minister that our strong commitment to Iron Dome will continue into the future."
The U.S. provided $70 million in fiscal year 2012 funds for the system, on top of the $205 million previously allocated, Panetta said, noting DOD will continue to support the system in the future.
"We will obviously continue to work together to seek additional funding to enable Israel to boost Iron Dome's capacity further and to help prevent the kind of escalation and violence that we've seen," Panetta said.
Iron Dome prevents wars, Panetta said, but Israeli and Palestinian leaders must sit down and resolve their differences for real peace in the region.
Barak thanked the United States for the funding to deploy the Iron Dome batteries.
"We highly appreciate your plans to help us in the future on the same issue, because the needs are much larger than what we have right now, and we are determined to complete the system, besides the operational offensive capacities of the Israeli armed forces," Barak said.
Panetta and Barak also spoke about relations between the two nations, and touted the strength of the U.S.-Israeli partnership. Panetta said it is the strongest he has ever seen, describing it as based on shared values and also "on the iron-clad commitment of the United States to Israel's security."
Panetta said the United States strongly supports Israel's right to defend itself and strongly condemned the rocket attacks launched by Hamas against Israel.
"We are encouraged that the cease-fire agreement has held," he said.
The secretary stressed that the United States will continue to work with Israel and Egypt to end the smuggling of arms into Gaza. "No nation should have to live in fear of these kinds of attacks," he said.
Panetta and Barak also spoke about the Iranian nuclear danger. Both nations have continuing concerns over Iran's destabilizing activities and its nuclear program. Panetta reiterated that the United States will prevent Iran from obtaining a nuclear weapon.
"Iran is facing unprecedented pressure from the ... crippling sanctions that have been imposed by the international community," he said. "And I continue to believe that there is time and space for an effort to try to achieve a diplomatic solution, which remains, I believe, the preferred outcome for both the United States and for Israel."
Barak said the United States and Israel share the same beliefs in freedom, liberty, democracy and human dignity. The United States, he said, is a "moral beacon" to the people of the turbulent region. "We are highly appreciative of this role," he said. "We always keep the right to defend ourselves by ourselves on time where it's needed, but I think that the role of the United States is invaluable in our region."
Before leaving Israel, Barak announced he will retire from political life. Panetta paid tribute to his Israeli counterpart, praising "his brilliant strategic mind," which "stems from his warrior heart and his warrior experience."
The secretary pinned the DOD Medal for Distinguished Public Service on Barak.
Panetta, Barak Discuss Iron Dome Success, Israeli Defenses
By Jim Garamone
American Forces Press Service
WASHINGTON, Nov. 29, 2012 - Defense Secretary Leon E. Panetta and Israeli Defense Minister Ehud Barak praised the performance of the Iron Dome air defense system during a press conference here today.
Panetta said the Iron Dome system, which was developed by the Israelis and funded in large part by the United States, prevented war following hundreds of recent Palestinian rocket attacks on Israel from the Gaza Strip. The two men spoke to reporters after meeting at the Pentagon.
"I'm very proud that our two countries cooperated so closely to field the Iron Dome anti-rocket system," Panetta said, noting the system performed remarkably well during the rocket onslaught. "It intercepted more than 400 rockets bound for Israeli population centers, for a roughly 85 percent success rate overall," he said.
"Its success is a testament to the ingenuity of the Israeli people and to the commitment of the United States to Israel's security," he said. "Today, I assured the minister that our strong commitment to Iron Dome will continue into the future."
The U.S. provided $70 million in fiscal year 2012 funds for the system, on top of the $205 million previously allocated, Panetta said, noting DOD will continue to support the system in the future.
"We will obviously continue to work together to seek additional funding to enable Israel to boost Iron Dome's capacity further and to help prevent the kind of escalation and violence that we've seen," Panetta said.
Iron Dome prevents wars, Panetta said, but Israeli and Palestinian leaders must sit down and resolve their differences for real peace in the region.
Barak thanked the United States for the funding to deploy the Iron Dome batteries.
"We highly appreciate your plans to help us in the future on the same issue, because the needs are much larger than what we have right now, and we are determined to complete the system, besides the operational offensive capacities of the Israeli armed forces," Barak said.
Panetta and Barak also spoke about relations between the two nations, and touted the strength of the U.S.-Israeli partnership. Panetta said it is the strongest he has ever seen, describing it as based on shared values and also "on the iron-clad commitment of the United States to Israel's security."
Panetta said the United States strongly supports Israel's right to defend itself and strongly condemned the rocket attacks launched by Hamas against Israel.
"We are encouraged that the cease-fire agreement has held," he said.
The secretary stressed that the United States will continue to work with Israel and Egypt to end the smuggling of arms into Gaza. "No nation should have to live in fear of these kinds of attacks," he said.
Panetta and Barak also spoke about the Iranian nuclear danger. Both nations have continuing concerns over Iran's destabilizing activities and its nuclear program. Panetta reiterated that the United States will prevent Iran from obtaining a nuclear weapon.
"Iran is facing unprecedented pressure from the ... crippling sanctions that have been imposed by the international community," he said. "And I continue to believe that there is time and space for an effort to try to achieve a diplomatic solution, which remains, I believe, the preferred outcome for both the United States and for Israel."
Barak said the United States and Israel share the same beliefs in freedom, liberty, democracy and human dignity. The United States, he said, is a "moral beacon" to the people of the turbulent region. "We are highly appreciative of this role," he said. "We always keep the right to defend ourselves by ourselves on time where it's needed, but I think that the role of the United States is invaluable in our region."
Before leaving Israel, Barak announced he will retire from political life. Panetta paid tribute to his Israeli counterpart, praising "his brilliant strategic mind," which "stems from his warrior heart and his warrior experience."
The secretary pinned the DOD Medal for Distinguished Public Service on Barak.
U.S. SECRETARY OF LABOR SOLIS COMMENTS ON THE INDUSTRIAL FIRE IN BANGLADESH
Map: Bangladesh. Credit: CIA World Factbook |
Secretary of Labor Hilda L. Solis today issued the following statement regarding the tragic fire in Bangladesh:"This past Saturday, Bangladesh suffered one of the worst industrial accidents in its history. A devastating fire swept through the Tazreen Fashion garment factory, killing more than 100 and injuring many more. I join U.S. Ambassador to Bangladesh Dan Mozena in extending heartfelt condolences to the people of Bangladesh and the many families who lost their loved ones. "Just over a century ago, in March 1911, the Triangle Shirtwaist factory in New York City burned to the ground, killing 146 people, mainly young women. That fire was our call to action. It galvanized support for stronger worker protections and institutions to enforce them, from workplace health and safety to workers' right to organize and bargain collectively.
"The Tazreen Fashion factory fire is a similar call to action for Bangladesh and also for the many international buyers supplied by the country's garment factories. Investigations should be conducted and the perpetrators punished, but things cannot then return to business as usual. I know that change is not easy. The U.S. Department of Labor stands ready to help, with technical assistance and expertise, to work with the government of Bangladesh to ensure that this horrific tragedy becomes a watershed moment for Bangladeshi workers' rights."
U.S. SECRETARY PANETTA'S REMARKS ON U.S. TROOPS IN POST-2014 AFGHANISTAN
Defense Secretary Leon E. Panetta and Israeli Defense Minister Ehud Barak speak to reporters at the Pentagon, Nov. 29, 2012. |
Panetta Outlines Objectives For Troops in Post-2014 Afghanistan
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service
WASHINGTON, Nov. 29, 2012 - Defense Secretary Leon E. Panetta today laid out three missions for the post-2014 troop presence in Afghanistan, and made it clear the U.S. is not arming rebels fighting to topple the Assad regime in Syria.
During a joint press conference here with visiting Israeli Defense Minister Ehud Barak, Panetta was asked what the focus in Afghanistan should be following the transition to Afghan-led security.
"The fundamental mission in Afghanistan is to establish [a nation] that can secure and govern itself and ensure that al-Qaida, never again, finds a safe haven within Afghanistan from which to conduct attacks on the United States or any other country," he said.
The goal for remaining troops, Panetta said, is an enduring presence that will direct itself towards three important missions.
"One is obviously [counterterrorism] to ensure that we continue to go after whatever al-Qaida targets remain in Afghanistan," he said.
"Although we clearly have had an impact on their presence in Afghanistan, the fact is that they continue to show up, and intelligence continues to indicate that they are looking for some kind of capability to be able to go into Afghanistan as well," Panetta said. He noted that forces have to be continually vigilant to protect against the terrorist group's resurgence.
"So that's going to be the fundamental thrust of the CT effort in the enduring presence," Panetta said. "We also are going to continue to have a train-and-assist mission to help develop the capability of the Afghan Army."
"The third mission will be to continue to provide some enabling capability so that we can provide the support needed for our forces as well," he said.
Panetta noted the necessary troop levels to accomplish these missions is "exactly what's being discussed" now.
In addition to discussing Afghanistan, the defense secretary also re-emphasized that the United States has had no involvement in equipping rebel forces in Syria with weapons or surface-to-air missiles.
"With regards to Syria, let me say, unequivocally, that we have not provided any of those kinds of missiles to the opposition forces located in Syria," Panetta said. "We do provide ... non-lethal assistance to the opposition."
"We obviously are continuing to work on humanitarian relief to the refugees that have been impacted," he added.
Panetta noted the U.S., with assistance from Israel and other countries in the region, also continues to monitor fighting in areas with chemical or biological weapons sites.
Our main focus right now, he said, has been working with other countries to try to provide whatever assistance we can to the opposition so it can ultimately become not only an effective force, but one that will be "needed once Assad comes down."
EXTRACORPOREAL MEMBRANE OXYGENATION SAVES MOTHER'S LIFE
FROM: U.S. DEPARTMENT OF DEFENSE
Military Docs Use Cutting-edge Device to Save Patient
By Elaine Sanchez
Brooke Army Medical Center
JOINT BASE SAN ANTONIO-FORT SAM HOUSTON, Texas, Nov. 29, 2012 - Doctors from San Antonio Military Medical Center here saved a young mother's life last month using cutting-edge technology historically reserved for infants and young children.
The case marked the first time the medical center has treated an adult with extracorporeal membrane oxygenation, or ECMO, a heart-lung bypass system that circulates blood through an external artificial lung and sends it back into the patient's bloodstream.
"This is a true success story," said Air Force Lt. Col. (Dr.) Jeremy Cannon, the hospital's trauma chief and a key player in the case. "I firmly believe this patient would not be here if it wasn't for ECMO and a tremendous team effort."
Cannon first heard of the case a few months ago, while he was in the midst of a surgery. He had asked to be paged whenever patients in the hospital developed severe lung injury so he could assess them for ECMO treatment.
The patient -- referred to as "Jane" in this article to protect her privacy -- woke up several days earlier with itchy, irritated eyes, but she and her doctor chalked it up to an infection or a virus. It wasn't until her symptoms spread and worsened that she decided an emergency room visit was in order.
A few hours later, Jane was diagnosed with severe toxic epidermal necrolysis, or TENS, an autoimmune reaction to medication. She was flown by helicopter from her south Texas hometown to the U.S. Army Institute of Surgical Research's Burn Center, the Defense Department's only burn center, which is located in the medical center here.
The TENS progressed quickly, and by the time she reached the hospital, Jane's skin was sloughing off, her lungs were filling with fluid and tissue, and her vital organs were failing. She was admitted to the Burn Center on Sept. 15 and initially was stabilized. However, when her condition worsened, Cannon was alerted.
Cannon and his ECMO team members had one thought after assessing Jane: "She's going to die if we don't use ECMO."
Cannon and a select team of specialists had been training for this moment for more than a year, thanks to a Defense Department grant that provided ECMO supplies, training funds and equipment to explore the use of ECMO on adults.
ECMO is commonly used in neonatal intensive care units around the world on newborns with lung issues such as meconium aspiration, a medical condition that occurs when infants ingest their first stool before or during delivery. However, adult applications are much less common, mainly due to a lack of recent patient data.
Cannon, however, had been observing ECMO successes since his residency and strongly believed in its outcomes for adults, particularly for patients on the brink of death. He had transferred to SAMMC from the Air Force's Wilford Hall Medical Center, which had the military's only infant and child ECMO center, so he had ongoing exposure to the technology. Along with its experts, the neonatal ECMO center transferred to SAMMC last year.
Cannon said he brought his strong convictions about the lifesaving potential of the technology to his leadership and requested for Jane to be SAMMC's first adult ECMO patient. "I've been involved in ECMO cases for 15 years," he said. "I saw the benefit and felt confident we had the team structure and protocols in place."
The same day she checked in, Jane was put on ECMO, and stayed on it for 23 days.
It was touch-and-go at first, Cannon noted. "It was agonizing for 22 of those 23 days," he recalled.
Finally, on Day 21, Jane's lungs started to clear, and two days later, staff transitioned her from ECMO to a standard ventilator. "Within a day and a half, she went from profoundly ill to greatly improved," Cannon said, noting the team effort of experts across the hospital.
"It was exhilarating to see her get better, thanks to a concerted effort," he added.
Maria Serio-Melvin, ISR nurse research consultant, also credited the procedure's success to an "intense, collaborative, cooperative effort" between the ISR and ECMO teams.
A few weeks later, Jane is now an outpatient, staying with her mother in town until she gains enough strength to return home. "It's been tough, but I'm not going to give up," Jane said in a recent interview at the hospital. "I can't say enough about the care I've received here."
Jane's lungs and skin are still healing, but Cannon said he has high hopes for his patient, as well as for other SAMMC patients who can be helped through ECMO.
Cannon also said he hopes to see an increased use of adult ECMO in the war zone, where it's already proved lifesaving for several troops. In 2010, an ECMO-trained team picked up a soldier in Kandahar, Afghanistan, who had been shot in the chest. His right lung had to be removed, a procedure that typically carries a 100 percent mortality rate. However, the lung team placed him on ECMO and he quickly recovered in a hospital in Germany.
Cannon recalled meeting this patient a few weeks after he arrived at SAMMC. "He's married now and enjoying life," he said. Since then, there have been five ECMO transports from the battlefield to Germany, he added.
Cannon said his long-term vision is to see ECMO patients transported directly from the battlefield to a stateside location, such as the medical center here, for their recovery.
"We've proven we can very safely take care of even most critically ill patients, and I'm very optimistic we'll be able to offer these services to wounded warriors throughout their continuum of care," he said.
Based on recent successes around the nation, Cannon said, he expects to see a resurgence in ECMO research around the world, which will help to build confidence in the technology for adults. A trial with strict research protocols based in France is now under way and promises to answer some of the unknowns that remain about the use of ECMO in adults, he noted.
Whatever the future holds, Cannon said, he'll never forget the lifesaving impact of ECMO for Jane. "All of this came together beautifully, and it worked," he said. "She's alive because of an amazing team effort."
The day she improved, he added, "was the pinnacle day in my medical career."
Thursday, November 29, 2012
U.S. UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING NOVEMBER 24, 2012
FROM: U.S. DEPARTMENT OF LABOR
SEASONALLY ADJUSTED DATA
In the week ending November 24, the advance figure for seasonally adjusted initial claims was 393,000, a decrease of 23,000 from the previous week's revised figure of 416,000. The 4-week moving average was 405,250, an increase of 7,500 from the previous week's revised average of 397,750.
The advance seasonally adjusted insured unemployment rate was 2.6 percent for the week ending November 17, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending November 17 was 3,287,000, a decrease of 70,000 from the preceding week's revised level of 3,357,000. The 4-week moving average was 3,296,250, an increase of 6,250 from the preceding week's revised average of 3,290,000.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 357,015 in the week ending November 24, a decrease of 46,541 from the previous week. There were 372,640 initial claims in the comparable week in 2011.
The advance unadjusted insured unemployment rate was 2.2 percent during the week ending November 17, a decrease of 0.1 percentage point from the prior week's unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,820,064, a decrease of 124,308 from the preceding week. A year earlier, the rate was 2.5 percent and the volume was 3,167,053.
The total number of people claiming benefits in all programs for the week ending November 10 was 5,182,815, a decrease of 58,623 from the previous week. There were 7,004,413 persons claiming benefits in all programs in the comparable week in 2011.
Extended Benefits were only available in New York during the week ending November 10.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,629 in the week ending November 17, a decrease of 447 from the prior week. There were 2,385 initial claims filed by newly discharged veterans, a decrease of 416 from the preceding week.
There were 18,606 former Federal civilian employees claiming UI benefits for the week ending November 10, a decrease of 762 from the previous week. Newly discharged veterans claiming benefits totaled 39,318, a decrease of 285 from the prior week.
States reported 2,119,054 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending November 10, a decrease of 37,451 from the prior week. There were 2,972,894 persons claiming EUC in the comparable week in 2011. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending November 3 were in Alaska (5.1), New Jersey (4.1), Puerto Rico (3.8), Pennsylvania (3.6), Connecticut (3.2), Oregon (3.1), California (3.0), New York (2.9), Nevada (2.8), Virgin Islands (2.8), and West Virginia (2.8).
The largest increases in initial claims for the week ending November 17 were in Florida (+1,534), Michigan (+1,427), Massachusetts (+1,189), Kentucky (+945), and Minnesota (+872), while the largest decreases were in New York (-30,603), California (-26,337), Pennsylvania (-11,451), Oregon (-1,997) and North Carolina (-1,851).
Photo Credit: Wikimedia. |
FROM: U.S. DEPARTMENT OF LABOR
SEASONALLY ADJUSTED DATA
In the week ending November 24, the advance figure for seasonally adjusted initial claims was 393,000, a decrease of 23,000 from the previous week's revised figure of 416,000. The 4-week moving average was 405,250, an increase of 7,500 from the previous week's revised average of 397,750.
The advance seasonally adjusted insured unemployment rate was 2.6 percent for the week ending November 17, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending November 17 was 3,287,000, a decrease of 70,000 from the preceding week's revised level of 3,357,000. The 4-week moving average was 3,296,250, an increase of 6,250 from the preceding week's revised average of 3,290,000.
The advance number of actual initial claims under state programs, unadjusted, totaled 357,015 in the week ending November 24, a decrease of 46,541 from the previous week. There were 372,640 initial claims in the comparable week in 2011.
The advance unadjusted insured unemployment rate was 2.2 percent during the week ending November 17, a decrease of 0.1 percentage point from the prior week's unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,820,064, a decrease of 124,308 from the preceding week. A year earlier, the rate was 2.5 percent and the volume was 3,167,053.
The total number of people claiming benefits in all programs for the week ending November 10 was 5,182,815, a decrease of 58,623 from the previous week. There were 7,004,413 persons claiming benefits in all programs in the comparable week in 2011.
Extended Benefits were only available in New York during the week ending November 10.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,629 in the week ending November 17, a decrease of 447 from the prior week. There were 2,385 initial claims filed by newly discharged veterans, a decrease of 416 from the preceding week.
There were 18,606 former Federal civilian employees claiming UI benefits for the week ending November 10, a decrease of 762 from the previous week. Newly discharged veterans claiming benefits totaled 39,318, a decrease of 285 from the prior week.
States reported 2,119,054 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending November 10, a decrease of 37,451 from the prior week. There were 2,972,894 persons claiming EUC in the comparable week in 2011. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending November 3 were in Alaska (5.1), New Jersey (4.1), Puerto Rico (3.8), Pennsylvania (3.6), Connecticut (3.2), Oregon (3.1), California (3.0), New York (2.9), Nevada (2.8), Virgin Islands (2.8), and West Virginia (2.8).
The largest increases in initial claims for the week ending November 17 were in Florida (+1,534), Michigan (+1,427), Massachusetts (+1,189), Kentucky (+945), and Minnesota (+872), while the largest decreases were in New York (-30,603), California (-26,337), Pennsylvania (-11,451), Oregon (-1,997) and North Carolina (-1,851).
SEC CHARGES FORMER CEO OF PASSING ON INSIDER INFORMATION ON A STOCK TO A FRIEND
FROM: U.S SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., Nov. 28, 2012 — The Securities and Exchange Commission today announced charges against the former CEO of a Denver-based oil-and-gas company at the center of an insider trading scheme that the SEC began prosecuting last month.
According to the SEC’s complaint, the insider trading occurred in advance of Delta Petroleum Corporation’s public announcement that Beverly Hills-based private investment firm Tracinda had agreed to purchase a 35 percent stake in the company, which shot its stock value up by nearly 20 percent. The SEC initially charged insurance executive Michael Van Gilder for his illegal trading in the case, and is now additionally charging his source: Delta’s then-CEO Roger Parker.
The SEC’s amended complaint alleges that Parker, who lives in Englewood, Colo., illegally tipped his close friend Van Gilder and at least one other friend with confidential information about Tracinda’s impending investment. Despite his duty as CEO to protect nonpublic information, Parker repeatedly communicated with Van Gilder following meetings and other developments as the deal progressed. Parker also illegally tipped information about Delta’s quarterly earnings. The insider trading in this case generated more than $890,000 in illicit profits.
"Parker was entrusted with highly confidential information, and he betrayed that trust to help line the pockets of his close friends," said Sanjay Wadhwa, Deputy Chief of the SEC Enforcement Division’s Market Abuse Unit and Associate Director of the New York Regional Office. "Company officials who exploit their insider status must realize that they do so at the risk of inviting SEC scrutiny."
According to the SEC’s amended complaint filed late yesterday in federal court in Denver, Parker tipped Van Gilder and another friend on several occasions in late November and December 2007 as the Tracinda investment was developing. Based on the inside information, Van Gilder and the other friend loaded up on Delta stock and highly speculative options contracts, and Van Gilder advised his relatives, his broker, and a co-worker to do the same.
The SEC alleges that the Tracinda announcement was not the only nonpublic information that Parker tipped to Van Gilder. In November 2007, Van Gilder received an e-mail from a mutual friend of Parker’s that included a news article expressing a negative view of Delta’s future prospects. After sending an e-mail to his broker indicating he might want to sell the Delta securities that he owned, Van Gilder called Parker three times that evening. Parker conveyed to Van Gilder confidential details about Delta’s third quarter 2007 earnings results that were to be announced later that week. Rather than sell his Delta stock, Van Gilder purchased an additional 1,250 shares and responded to the e-mail from the mutual friend by writing, "I had a dialogue with a friend, of whom you know. Do not sell this stock, rather buy more ... Delta will hit their numbers at this Thursday’s announcement." When Delta announced its earnings, it reported production and revenue numbers above the company’s previously stated guidance.
The SEC’s amended complaint charges Parker and Van Gilder with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The amended complaint seeks a final judgment ordering them to disgorge their and their tippees’ ill-gotten gains plus prejudgment interest, ordering them to pay financial penalties, and permanently enjoining them from future violations of the above provisions of the federal securities laws. The SEC also seeks to prohibit Parker from acting as an officer or director of a public company.
The SEC’s investigation, which is continuing, has been conducted by members of the SEC’s Market Abuse Unit – Michael Holland and Joseph Sansone in New York and Jeffrey Oraker and Jay Scoggins in Denver – with substantial assistance from Neil Hendelman of the New York Regional Office. The SEC’s litigation is being handled by Thomas Krysa, who is Regional Trial Counsel in the Denver office, as well as Mr. Oraker and Mr. Holland.
The SEC thanks the U.S. Attorney offices in the Southern District of New York and the District of Colorado as well as the Federal Bureau of Investigation for their assistance in this matter.
Washington, D.C., Nov. 28, 2012 — The Securities and Exchange Commission today announced charges against the former CEO of a Denver-based oil-and-gas company at the center of an insider trading scheme that the SEC began prosecuting last month.
According to the SEC’s complaint, the insider trading occurred in advance of Delta Petroleum Corporation’s public announcement that Beverly Hills-based private investment firm Tracinda had agreed to purchase a 35 percent stake in the company, which shot its stock value up by nearly 20 percent. The SEC initially charged insurance executive Michael Van Gilder for his illegal trading in the case, and is now additionally charging his source: Delta’s then-CEO Roger Parker.
The SEC’s amended complaint alleges that Parker, who lives in Englewood, Colo., illegally tipped his close friend Van Gilder and at least one other friend with confidential information about Tracinda’s impending investment. Despite his duty as CEO to protect nonpublic information, Parker repeatedly communicated with Van Gilder following meetings and other developments as the deal progressed. Parker also illegally tipped information about Delta’s quarterly earnings. The insider trading in this case generated more than $890,000 in illicit profits.
"Parker was entrusted with highly confidential information, and he betrayed that trust to help line the pockets of his close friends," said Sanjay Wadhwa, Deputy Chief of the SEC Enforcement Division’s Market Abuse Unit and Associate Director of the New York Regional Office. "Company officials who exploit their insider status must realize that they do so at the risk of inviting SEC scrutiny."
According to the SEC’s amended complaint filed late yesterday in federal court in Denver, Parker tipped Van Gilder and another friend on several occasions in late November and December 2007 as the Tracinda investment was developing. Based on the inside information, Van Gilder and the other friend loaded up on Delta stock and highly speculative options contracts, and Van Gilder advised his relatives, his broker, and a co-worker to do the same.
The SEC alleges that the Tracinda announcement was not the only nonpublic information that Parker tipped to Van Gilder. In November 2007, Van Gilder received an e-mail from a mutual friend of Parker’s that included a news article expressing a negative view of Delta’s future prospects. After sending an e-mail to his broker indicating he might want to sell the Delta securities that he owned, Van Gilder called Parker three times that evening. Parker conveyed to Van Gilder confidential details about Delta’s third quarter 2007 earnings results that were to be announced later that week. Rather than sell his Delta stock, Van Gilder purchased an additional 1,250 shares and responded to the e-mail from the mutual friend by writing, "I had a dialogue with a friend, of whom you know. Do not sell this stock, rather buy more ... Delta will hit their numbers at this Thursday’s announcement." When Delta announced its earnings, it reported production and revenue numbers above the company’s previously stated guidance.
The SEC’s amended complaint charges Parker and Van Gilder with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The amended complaint seeks a final judgment ordering them to disgorge their and their tippees’ ill-gotten gains plus prejudgment interest, ordering them to pay financial penalties, and permanently enjoining them from future violations of the above provisions of the federal securities laws. The SEC also seeks to prohibit Parker from acting as an officer or director of a public company.
The SEC’s investigation, which is continuing, has been conducted by members of the SEC’s Market Abuse Unit – Michael Holland and Joseph Sansone in New York and Jeffrey Oraker and Jay Scoggins in Denver – with substantial assistance from Neil Hendelman of the New York Regional Office. The SEC’s litigation is being handled by Thomas Krysa, who is Regional Trial Counsel in the Denver office, as well as Mr. Oraker and Mr. Holland.
The SEC thanks the U.S. Attorney offices in the Southern District of New York and the District of Colorado as well as the Federal Bureau of Investigation for their assistance in this matter.
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