SEC CHARGES U.S. BASED CONSULTANTS TO NUMEROUS CHINESE REVERSE MERGER COMPANIES WITH SECURITIES FRAUD

FROM:   U.S. SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission today filed fraud charges, among others, against Huakang "David" Zhou (Zhou) and his consulting firm Warner Technology and Investment Corporation (Warner Investment) in connection with its investigation into China Yingxia International, Inc. (China Yingxia), a now defunct Chinese reverse merger company.

The SEC alleges that Zhou and Warner Investment, key players assisting numerous Chinese companies access and navigate the U.S. capital markets in recent years, engaged in varied misconduct from at least 2007 through 2010. Zhou and Warner Investment, through Zhou, have acted as advisers to over twenty Chinese issuers, locating private companies in China to bring public in the U.S., conducting reverse mergers and, for some, thereafter maintaining prominent, if not controlling, roles with the companies’ management and financial operations.

Zhou engaged in unregistered sales of securities for several clients, including by conducting an unregistered public offering of over $5 million in securities to roughly 85 Chinese-Americans in several states. Zhou and his firm also improperly assisted with securities offerings for two clients while acting as unregistered securities brokers, and further aided and abetted others’ unregistered broker-dealer violations.

In connection with raising $2 million for one client, Zhou engaged in deceptive conduct and made material misrepresentations and omissions to investors. Among other things, Zhou misused a significant portion of the investment proceeds to pay $271,500 towards his mortgage on a million-dollar condo in New York City. As well, Zhou concealed from investors that their money would be put at risk due to the circuitous manner in which Zhou sent proceeds to China. Unknown to the investors, Zhou sent hundreds of thousands of dollars by wire transfer to multiple individuals in China who apparently had no affiliation with the company. The individuals supposedly then wired the money to the company’s chief executive officer, who in turn purportedly transferred the money to the company’s Chinese bank account.

Further, Zhou committed securities fraud by orchestrating an elaborate scheme in an apparent effort to list another client, a Chinese real estate company, on a national securities exchange. Zhou engaged in manipulative trading, including matched orders, to meet the minimum bid required for listing. As well, via gifts of stock and a purportedly private sale to a broker dealer, Zhou in effect artificially created a sufficient number of shareholders to meet a listing requirement that applicants have in excess of 400 round lot shareholders (holders of 100 shares or more). Zhou’s scheme succeeded, and the company was approved for listing in the fall of 2010.

The SEC’s complaint against Zhou and Warner Investment alleges violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 10(b), 13(d), 15(a), and 16(a) of the Securities Exchange Act of 1934, and Rules 10b-5, 13d-1, 13d-2, and 16a-3 thereunder, and control person liability and aiding and abetting violations of Section 10(b) and 15(a) of the Exchange Act, and Rule 10b-5(b) thereunder.

More doctors adopting EHRs

More doctors adopting EHRs

U.S. MILITARY MEETS OR EXCEEDS MOST RECRUITMENT GOALS IN FIRST MONTH OF FISCAL 2013

U.S. Army soldiers jump from a hovering CH-47 Chinook helicopter during the helo-cast event on day two of the Best Sapper Competition, Fort Leonard Wood, Mo., April 20, 2010. The Best Sapper Competition gives engineers throughout the Army the opportunity to compete in a grueling six phase and three day competition to determine who are the best engineers in the Army. DoD photo by Benjamin Faske.

FROM: U.S. DEPARTMENT OF DEFENSE

DOD Announces Recruiting, Retention Numbers
American Forces Press Service

WASHINGTON, Dec. 11, 2012 - All four active-duty services and five of the six reserve components met or exceeded their recruiting goals in the first month of fiscal 2013, Defense Department officials announced today.

Here are the active-duty services' accessions for October:

-- Army: 5,080 accessions, 101 percent of its goal of 5,050;

-- Navy: 2,256 accessions, 100 percent of its goal of 2,256;

-- Marine Corps: 2,482 accessions, 100 percent of its goal of 2,471; and

-- Air Force: 1,985 accessions, 100 percent of its goal of 1,985.

All four services exhibited strong retention numbers for the first month of fiscal 2013, officials said.

As a result of the Navy's transition from a downsizing to a stabilizing posture, Zone A (Initial) is at 92 percent. However, the other two zones continue to exhibit strong retention numbers, officials said.

Five of the six reserve components met or exceeded their numerical accession goals for the first month of fiscal 2013.

-- Army National Guard: 4,211 accessions, 123 percent of its goal of 3,424;

-- Army Reserve: 2,098 accessions, 89 percent of its goal of 2,360;

-- Navy Reserve: 418 accessions, 100 percent of its goal of 418;

-- Marine Corps Reserve: 996 accessions, 117 percent of its goal of 850;

-- Air National Guard: 647 accessions, 100 percent of its goal of 647; and

-- Air Force Reserve: 691 accessions, 100 percent of its goal of 691.

The Army Reserve finished short of its goal for the month as a result of precision recruiting, which was implemented in an attempt to rebalance the force. Increased job announcements should help mitigate this shortfall, officials explained.

All reserve components met their fiscal 2012 attrition goals, officials said. This indicator lags by one month due to data availability.

U.S. DOD ARTICLE ON NIC GLOBAL TRENDS REPORT

The Future?.  Picture Credit:  NASA

FROM: U.S. DEPARTMENT OF DEFENSE

Report on Global Trends Discusses Game Changers
By Jim Garamone
American Forces Press Service


WASHINGTON, Dec. 12, 2012 - The pace of change in the world has accelerated and Global Trends 2030 -- a publication of the National Intelligence Council -- lists what experts consider game changers that will drive world events over the next 18 years.

The Office of the Director of National Intelligence released the Global Trends 2030 report Dec. 10. The game changers that appear in the report are mostly in place today.

"It's the economy, stupid" may have been the bumper sticker moment in the 1990s, and it will continue to be a game changer in the years ahead. The report said that the international economy will "almost certainly" be characterized by regional economies moving at different speeds -- just as they do today. This will cause imbalances and economic winners and losers in the world.

"The key question is whether the divergences and increased volatility will result in a global breakdown and collapse or whether the development of multiple growth centers will lead to resiliency," the report said.

China will eclipse the United States as the world's leading economy before 2030, the report says, and other nations such as India and Brazil will advance economically. The United States will no longer be the world's only superpower and with the emergence of other centers of power there will be a change in global dynamics.

"The world's economic prospects will increasingly depend on the fortunes of the East and South," the report said. The developing world already accounts for 50 percent of economic growth and 40 percent of global investment and this will increase. China's growth rate of 10 percent per year will probably slow to 5 percent by 2020, but that's still enough to maintain its growing economy.

Another game changer, according to the report, is the "governance gap." This means power will become more diffuse and a growing number of diverse state and non-state entities will play important governance roles.

"The governance gap will continue to be most pronounced at the domestic level and driven by rapid political and social changes," the report said. Advances in health, education and income will continue and will drive government structures, as will changes in communications.

The transition to democracy in some nations will continue to be rocky. "Currently, about 50 countries are in the awkward stage between autocracy and democracy," the report said. These countries are concentrated in Africa, the Middle East and Asia.

Recent history and trends, the report said, "support the idea that with maturing age structures and rising incomes, political liberalization and democracy will advance."

New communications technologies will become a double-edged sword for governance, the report said, noting social networking "will enable citizens to coalesce and challenge governments." On the other hand, the report added, such technologies "will provide governments ... an unprecedented ability to monitor their citizens."

A third game changer is the potential for increased conflict. This may sound like an oxymoron because the recent trend has been toward fewer major conflicts in the world. The report posits that there will be less chance of conflicts between great powers and probably fewer conflicts between nations. But there will likely be conflicts within nations. These "intrastate" conflicts would most likely occur in Sub-Saharan Africa, South Asia and East Asia.

The report said that the current Islamic terrorism may end by 2030, but terrorism will likely remain. "Many states might continue to use terrorist groups out of a strong sense of insecurity," the report said. Individuals with niche capabilities -- such as cyber expertise -- may sell themselves to terror groups to create widespread economic and financial disruptions.

A fourth game changer is a wider scope of regional instability. Essentially this means that localized unrest may spill over and cause problems well out of the area. The Middle East and South Asia, the report said, are the two areas where this is likeliest to happen.

A fifth game changer is the impact of new technologies. Information technology will continue to develop. Data storage will become cheaper and new ways of searching and fashioning data will aid all. Another breakthrough technology is anticipated in manufacturing and automation. These technologies will increase productivity and will drive the economies of Asia, the report says.

Finally, another game changer involves the role of the United States in world affairs, according to the report. How the U.S. role changes over the next 15 to 20 years will be crucial to reinventing the international system as the world transitions to a multipolar community. The United States will probably remain the first among equals, the report said. "The United States' dominant role in international politics has derived from its preponderance across the board in both hard and soft power," the report noted.

The United States' position in the world will be determined in part by maintaining alliances, building new relations with emerging countries and working with multinational organizations, the report said.

The report does say with certainty that a U.S. collapse or the sudden retreat of the United States from the world stage "would most likely result in an extended period of global anarchy."

SECRETARY OF DEFENSE PANETTA SPENDS TIME WITH TROOPS IN AFGHANISTAN

 

U.S. Defense Secretary Leon E. Panetta addresses troops on Ali Al Salem Air Base, Kuwait, Dec. 12, 2012. Panetta thanked them for their service while also wishing them holiday greetings. DOD photo by Erin A. Kirk-Cuomo.

FROM: U.S. DEPARTMENT OF DEFENSE

Panetta Arrives in Kabul to Thank Troops, Meet With Commanders
By Cheryl Pellerin
American Forces Press Service

KABUL, Afghanistan, Dec. 12, 2012 – After spending time with U.S. troops and officials in Kuwait, Defense Secretary Leon E. Panetta has landed here today to thank troops for their exceptional service, especially during the holidays when it’s harder to be far from family and friends.

This is Panetta’s fifth trip to Afghanistan as defense secretary and his eighth trip to the war-torn nation in the last four years.

"My main goal is to thank the troops," Panetta said, "but beyond that it’s to consult with military commanders, to consult with leadership in Afghanistan, talk to President [Hamid] Karzai and be able to get a better sense of just exactly what’s happening in Afghanistan."

The secretary said the campaign is on a better path than it was four years ago despite real challenges that remain in the region.

"We’ve got a strong campaign plan in place supported by the United States and [the International Security Assistance Force], confirmed by the NATO nations [during the NATO summit this summer in] Chicago," Panetta said, adding that a strategic partnership agreement signed June 1 by President Barack Obama and Karzai "pretty much affirms our enduring presence in Afghanistan in the long run."

Violence levels have trended downward in the last two years after five years of steady increases beginning in 2006, the secretary noted, and the Taliban have been unable to regain territory they’ve lost over the past few years.

"On insider attacks, an area that remains a concern, we have a downward trend, … and populated areas have grown more secure," Panetta said. "In 2012, violence dropped significantly in Kabul, [by] 22 percent, and in Kandahar by almost 62 percent."

The Afghan national security force is becoming more capable, the secretary said. They have reached the 352,000 end-strength goal on schedule and now are in the lead in about 85 percent of the operations. They’re also leading some large-scale operations, he added.

Seventy-five percent of the Afghan population now lives in areas that are undergoing transition to Afghan security, Panetta said, and 100 percent of the population should be in transition by mid-2013.

Progress in other areas includes health care and education, he added.

"Eighty-five percent of the population in Afghanistan now has ready access to health care, compared to 9 percent in 2002," the secretary said. "[And] more than 8 million students are enrolled in schools, compared to 1 million in 2002, and 35 percent of the kids in school are girls."

Significant challenges remain, he said, "involving governance, continuing corruption, the problem with insurgent safe havens in Pakistan, economic challenges and a resilient Taliban that continues to challenge our security in Afghanistan."

On the problem of enemy safe havens in Pakistan, the secretary said, the Pakistani government understands. "I think as a result of recent meetings with Pakistan that we are more encouraged with the fact that they want to take steps to try to limit the terrorist threat within their own country and the threat that goes across the border."

Panetta said his sense is that the Pakistanis are in a better place.

"They understand their responsibility," he added. "They certainly have cooperated with us in a better fashion with regards to opening up the [ground lines of communication between Pakistan and Afghanistan]."

The Pakistanis also have expressed a greater interest in helping with reconciliation of Taliban soldiers into Afghan society, and Gen. Ashfaq Parvez Kayani, chief of the Pakistani army, has indicated a willingness to try to put more pressure on the terrorist safe havens, the secretary added.

"As always, actions have to speak louder than words," he said. "But I do believe that they’re in a better place in the sense that they understand the kind of threat that they should deal with."

As security improves and the Afghan national security force steps into the lead, "the opportunity to focus on these challenges and hopefully strengthen governance and the rule of law and the Afghan economy is a goal we’re after," Panetta said.

The secretary said he looks forward to getting a firsthand view of Afghanistan’s status by speaking with ISAF Commander Marine Corps Gen. John R. Allen and other commanders, and with the Afghan leadership.

"This will help me as we set the groundwork for the decisions that have to be made by President Obama with regard to the enduring presence [in Afghanistan]," Panetta added.

The secretary said he and others will present options to Obama for the nature of the enduring presence in Afghanistan, , "and hopefully he’ll make a decision within these next few weeks."

Afterward, Panetta added, the president’s decision will allow Allen to figure out what the drawdown in Afghanistan ought to be and over what period of time.

NASA'S TELEROBOTICS PROJECT MANAGER TALKS ABOUT "SPHERES"

FROM:  NASA

ISS Update: SPHERES with Telerobotics Project Manager Terry Fong
NASA Public Affairs Officer Brandi Dean talks with Terry Fong, Telerobotics Project Manager, about how the Synchronized Position, Hold, Engage and Reorient Experimental Satellites, or SPHERES, are being used for a Human Exploration Telerobotics test.

U.S. PROVIDES HUMANITARIAN ASSISTANCE FOR SYRIAN PEOPLE DURING CRISIS

Map:  Syria.  Credit:  CIA World Factbook. 

FROM: U.S. DEPARTMENT OF STATE

U.S. Provides Additional Humanitarian Assistance for the Syrian Crisis
Media Note
Office of the Spokesperson
Washington, DC
December 12, 2012
　

Today, Deputy Secretary of State William J. Burns announced the United States is providing nearly $14 million in additional humanitarian aid that will provide nutrition support for children, as well as additional emergency medical and winterization supplies to families in need inside Syria. With this new assistance, the United States is providing $210 million in humanitarian assistance to help over 1.5 million people inside Syria and the hundreds of thousands who have fled to neighboring countries.

This new assistance will provide a monthly ration of highly-fortified, ready-to-use food supplements to help approximately 225,000 children in Syria. These supplements are specially formulated for young children between 6 and 24 months of age and provide all the vitamins and minerals required for their development. To further increase medical capacity in Syria, this additional aid also includes essential medicines and supplies for 150,000 people and specialized drugs and supplies for 3,000 surgical interventions. We are also supporting the Early Warning Alert and Response System, a medical surveillance system that allows early detection and timely response to epidemics of communicable diseases. The United States is already working to reach 375,000 people in Syria with critical, life-saving winterization supplies, and this new funding will provide heavy-duty plastic insulation, duct tape, blankets, mattresses, rubber boots, and woolen socks to help an additional 45,000 people with winterization needs.

The United States, along with the international community, is working tirelessly to ensure that the innocent children, women, and men affected by the conflict in Syria are provided with life-saving assistance, and we will continue to stand by them in their time of need. The United States acknowledges the extraordinary efforts of Jordan, Turkey, Lebanon, and Iraq to keep borders open and generously hosting and providing assistance to those fleeing Asad’s brutality.

New tools to help providers protect patient data

New tools to help providers protect patient data

NEW RULE MAKES DISTRIBUTION OF BANKRUPT COMPANY RETIREMENT FUNDS, EASIER

FROM: U.S. DEPARTMENT OF LABOR

US Department of Labor proposes rule to help retirees, workers of bankrupt companies get retirement money sooner

Rule makes it easier for bankruptcy trustees to distribute benefits to 401(k) plan participants

WASHINGTON — The U.S Department of Labor's Employee Benefits Security Administration today announced a proposed rule and related class exemption that will make it easier for Chapter 7 bankruptcy trustees to distribute assets from bankrupt companies' retirement plans. The proposal would allow such trustees to use EBSA's existing Abandoned Plan Program to terminate, wind up and distribute benefits from such plans.

The existing Abandoned Plan Program provides streamlined termination and distribution procedures for abandoned individual account plans, including 401(k) plans, under which benefits may be distributed in a manner that can substantially reduce fees charged to participants' accounts for, among other things, annual reporting, legal compliance and other administrative services, including termination costs. By making this streamlined process available to Chapter 7 bankruptcy trustees, the time and resources required to "wind up" a bankrupt company's retirement plan can be significantly reduced. As a result, plan participants likely will see fewer administrative and termination fees charged to their accounts and should have access to their money sooner.

"The rule we're proposing today is designed to help workers and retirees of bankrupt companies gain access to their retirement money sooner. Far too often, the retired workers of these companies are unable to obtain their hard-earned retirement savings in a timely way. The legal status of a former employer should not impede retirees' access to their own funds, especially at the very time they need them most," said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. "The proposed rule would extend the department's current Abandoned Plan Program to these retirement plans, and enable Chapter 7 bankruptcy trustees to more quickly and efficiently distribute retirement benefits to participants. The rule also would reduce the possibility of participants' accounts being eroded by excessive and unnecessary fees."

Under amendments in 2005 to federal bankruptcy law, if a company in liquidation administered an individual account retirement plan, the company's Chapter 7 bankruptcy trustee must perform those functions. The Abandoned Plan Program, established in 2006, provides specific guidance on when a plan may be considered abandoned, who may make that determination, and exactly how to terminate the affairs of the plan and make benefit distributions. The program also limits potential fiduciary liability of financial institutions that step in to terminate and wind up plans that have been abandoned by their sponsors.

U.S. STATE DEPARTMENT TESTIMONY BEFORE CONGRESS ON SITUATION IN THE CONGO

Map:  Democratic Republic Of The Congo.  Credit:  CIA World Factbook.

FROM: U.S. STATE DEPARTMENT

The Devastating Crisis in Eastern Congo
Testimony
Johnnie Carson
Assistant Secretary, Bureau of African Affairs
As Prepared
Before the House Committee on Foreign Affairs Subcommittee on Africa, Global Health, and Human Rights
Washington, DC
December 11, 2012

Chairman Smith, Ranking Member Bass, and members of the Committee. Thank you for the invitation to testify before the Subcommittee on the crisis unfolding in the eastern Democratic Republic of the Congo, or D.R.C.

As you know, the security and humanitarian situation in the Congo is the most volatile in Africa today. An estimated five million people have died in the years since the second regional war began in 1998, and millions more have been forced to flee their homes. The D.R.C. is also the site of one of the world’s longest-running and most expensive peacekeeping operations, having hosted a UN peacekeeping presence for several years after its independence in 1960, in addition to the more recent UN missions starting in the late 1990s. The people of North and South Kivu provinces in particular have faced repeated cycles of conflict, atrocities, and displacement. An unthinkable number of women, men, and children have experienced sexual violence or rape at the hands of soldiers and armed groups.

The November 20 fall of Goma to the M23 rebel group provided a stark reminder that, even as the international community has made major investments in humanitarian aid and peacekeeping, the underlying causes of the recurring conflicts in eastern D.R.C. remain unresolved. The Congolese Government has failed to provide effective security, governance, and services in the eastern provinces, and political and economic tensions persist between the D.R.C. and its eastern neighbors, particularly Rwanda. The current crisis has been fueled and exacerbated by outside support to rebel groups operating in the Kivu provinces.

The M23 is one of many armed groups operating in the eastern D.R.C. Most of its officers were at one time nominally integrated into the Congolese army, a concession they extracted after nearly capturing Goma as part of a precursor insurgency in 2008. Once integrated, these officers operated in a parallel chain of command and enjoyed impunity for their human rights abuses and illegal exploitation of the country’s mineral wealth. When the Congolese Government appeared poised earlier this year to challenge these arrangements, several of these officers mutinied and constituted themselves under a new name, the M23. The commanders of the M23 represent a "who’s who" of notorious human rights abusers in the eastern D.R.C. They include Bosco Ntaganda, who faces an International Criminal Court arrest warrant for sexual violence and other crimes against humanity and continues to play an active role in the militia.

Since the M23 rebellion erupted last spring, the United States has worked closely with international and regional partners to mobilize a comprehensive response aimed at preventing a further deterioration of the situation, securing an end to hostilities, and maintaining humanitarian assistance. In September, Secretary Clinton met with Congolese President Kabila and Rwandan President Kagame at the UN General Assembly to urge them to engage in a more constructive dialogue. In the UN Security Council, we proposed and supported new actions to ensure that five of the M23’s top commanders are now under targeted sanctions. We have also stressed the need to hold accountable all of those who commit human rights abuses. Ambassador Rice has remained directly engaged with senior UN officials throughout the crisis, as we believe it is critical that the UN continue to play a key mediating role. In early November, Under Secretary of State Wendy Sherman traveled to the region to meet with key heads of state to urge a rapid and peaceful resolution to this crisis.

In response to the M23’s offensive on Goma last month, I traveled to Kinshasa, Kigali, and Kampala between November 24 and 28 with my British and French counterparts. During meetings with senior Ugandan, Rwandan, and Congolese officials, we delivered a clear and common message: as agreed in the November 21 and 24 Kampala communiqués, there must be an immediate cessation of hostilities and M23 must withdraw from Goma; the Congolese, Rwandan, and Ugandan Governments should ensure the implementation of these commitments; and any outside support to the M23 is unacceptable and must stop. We also urged top officials in the Congolese, Rwandan, and Ugandan Governments to work together toward a sustainable resolution of underlying issues. All three governments reiterated to us their commitment to these goals. So far, the cessation of hostilities between Congolese forces and the M23 appears to be holding. Most M23 forces appear to have withdrawn from Goma, though many remain much closer to the city than the Kampala agreements called for.

We also stressed that, while the D.R.C. Government has agreed to hear the political grievances of the M23, there should be no impunity for senior M23 leaders who are under ICC indictment or international sanctions for human rights violations.

The M23 would not be the threat it is today without external support, and we will continue to discourage outside parties from providing any assistance to the M23. There is a credible body of evidence that corroborates key findings of the Group of Experts’ reports – including evidence of significant military and logistical support, as well as operational and political guidance, from the Rwandan government to the M23. The British Government has recently indicated that it shares this assessment. We do not have a similar body of evidence that Uganda has a government-wide policy of support to the M23.

Based on this evidence, we continue to press Rwanda to halt and prevent any and all forms of support to Congolese armed groups. As required by law, the Department suspended Foreign Military Financing funds to Rwanda this year. Looking forward, we expect all parties, including Rwanda, to cease any support to M23 and other armed groups, abide by the November 21 and 24 agreements, and to work constructively with neighbors and the international community and take affirmative steps to end impunity for M23 commanders responsible for human rights abuses in order to reach an acceptable political agreement. We ask the Government of Uganda to ensure that supplies to the M23 do not originate in or transit through Ugandan territory, including from individual officials that may be acting on their own. The Department continues to closely monitor reports of external support and we will continue to respond appropriately, including by reviewing our assistance, to deter this support as the situation develops.

We are taking a number of other steps, in concert with our international partners, as part of our comprehensive response to the current crisis.

First and foremost, we are monitoring humanitarian needs and mobilizing a response. The humanitarian situation in the eastern Congo remains deplorable, as it has been for years, with more than two million Congolese currently displaced internally or to neighboring countries. The recent attacks by M23 and other armed groups have displaced some 500,000 more. The reopening of the Goma airport on December 5 was an important step toward ensuring that vulnerable populations receive the emergency assistance they need. UN officials report that humanitarian organizations currently maintain sufficient capacity to respond to immediate humanitarian needs in and around Goma, but some areas of North and South Kivu are still not accessible to humanitarians because of insecurity. The United States provided more than $110 million in humanitarian assistance for Congolese refugees, internally displaced persons, and conflict-affected civilians in Fiscal Year 2012, including a $5 million supplemental contribution for the increased needs in the D.R.C., Uganda, and Rwanda as a result of displacements caused by the M23 rebellion. At the UN, we have urged donors to respond to the UN’s consolidated appeal for the D.R.C.

Second, the International Conference on the Great Lakes Region, or ICGLR, the African Union, and the Security Council have all demanded that the M23 refrain from further offensives and stay out of Goma. In the ICGLR talks, the Congolese Government agreed to hear the grievances of the M23. We are calling on the D.R.C., neighboring governments, and the broader international community to ensure accountability for M23 leaders who have committed serious human rights abuses. And we will continue to speak out against the forcible recruitment of children and the other crimes the M23 continues to commit against Congolese civilians. We also call on governments to enforce the terms of the travel ban and asset freeze imposed by UN sanctions.

Third, we believe that Presidents Kabila, Kagame, and Museveni must continue to engage in direct talks to address the underlying causes of instability in the region. These include conflict over land, tensions in areas where refugees have returned or may seek to return, armed rebel groups and their support networks, and the illegal exploitation of natural resources. The Governments of the D.R.C., Rwanda, and Uganda also have opportunities to discuss potential drivers of progress, including new agreements and concrete initiatives on economic integration and peace and security issues. We encourage the UN Secretary-General to appoint a UN Special Envoy to engage on a sustained basis to facilitate ongoing discussions toward a long-term solution of these long-standing problems. We need such a high-level Special Envoy to be dedicated to the hard work of helping develop this long-term solution with all of the relevant stakeholders and to ensure that the solution is implemented over the long run, especially when the world’s attention turns to the next crisis. We intend to continue working with our European, African, and UN partners to support this dialogue. We will work to ensure that any agreement is transparent, sustainable, and enjoys the support and commitment of the region, including Congolese civil society and civilian communities.

Fourth, we appreciate the brave service of peacekeepers from several dozen countries operating in very difficult, often dangerous conditions. Yet more must be done to protect civilians in the eastern D.R.C. We and our fellow Security Council members and troop contributing countries are reviewing options for improving the UN’s ability to protect civilians and help implement defined aspects of a potential regional political settlement. We must remain realistic about what MONUSCO can be expected to achieve to protect civilians across a large expanse of D.R.C. territory. We are also following the regional Great Lakes proposal to develop an effective regional fighting force in the Kivus that would confront the M23 and other armed groups. We are strongly encouraging our partners to ensure these efforts are coordinated with, and perhaps even integrated into, UN peacekeeping efforts.

Fifth, the D.R.C. Government has the primary responsibility for protecting its territory and all its citizens. We are urging President Kabila to undertake a credible effort to professionalize and reform the Congolese security forces. This will take time, but the Congolese Government needs to take clear and bold measures to ensure that its soldiers are professionally trained, adequately paid and supported, and respectful of international human rights norms. We also find very disturbing, and recognize the need to address, the abuses committed by the Congolese military, including recent reports of rapes and looting in North Kivu. At the same time, we are making clear that the Congolese Government must accelerate its efforts to deploy and strengthen state institutions and provide needed public services in the Kivus. The extension of effective governance, combined with legitimate provincial elections, is necessary for a lasting peace.

We believe that the time has come for the region’s leaders and the international community to break the cycle of violence and impunity in the region. We, and most importantly, the region’s political leaders, must ensure that the national security and territorial integrity of the D.R.C., Rwanda, and Uganda are protected; must help build a future for people who have seen more conflict than peace over the last two decades that is rooted in strong and credible institutions, the transparent and legitimate use of the East’s vast mineral wealth for economic development and not personal gain, and respect for human rights; and must establish nonviolent means of addressing their differences. It is for this reason that even as we tackle the immediacy of the current crisis, we are also focused on the equally urgent need for a long-term and lasting solution.

As Secretary Clinton noted when she visited Goma in 2009, the Congolese people are courageous and resilient. There are reasons for hope in the D.R.C. The Congolese army has begun implementing a program to pay its soldiers through electronic and mobile banking and has committed to removing the last vestiges of the use of child soldiers. Thousands of combatants and dependents from the génocidaire militias have been demobilized and returned to civilian society. And for the first time, a horrific mass rape in January 2011 was followed with swift criminal justice for the perpetrators and the officers who directed them.

We need to build on these steps, which have been gravely set back by the M23 rebellion and the violence committed by other armed groups. The decisions taken now will set the trajectory of the next several years. Other abusive militias in the Kivus are watching to see if violent behavior is an effective path to power and influence. Reformers who are promoting a conflict-free trade in mineral resources are watching to see if insecurity will be allowed to continue and prolong the conditions favorable to illegal smuggling. The FDLR militia is still active in the Kivus. The vicious Lord’s Resistance Army of Joseph Kony, which operates hundreds of miles away on the D.R.C.’s northern borders, is watching to see if insecurity in the Kivus will undermine regional efforts to deny it a safe haven. And the world is watching to see whether the eastern Congo can transcend its history as a theater for proxy conflict and finally have the chance to move toward peace.

If we are to stop the recurring lethal violence, rape, humanitarian emergencies, and cross-border conflict in the eastern D.R.C. that have cost millions of lives and billions of dollars, we must move beyond short-term fixes. Today’s crisis is a tragedy, but it also offers a real opportunity to help the Congolese people set a more sustainable course toward peace. The framework for action at the national, regional, and international levels that I have outlined today could help enable the peoples of the region to escape the recurring cycles of conflict.

Thank you again for the opportunity to testify. I look forward to answering your questions.

U.S. State Department Daily Press Briefing - December 12, 2012

Daily Press Briefing - December 12, 2012

Remarks by Secretary Panetta at Ali Al Salem Air Base, Kuwait

Remarks by Secretary Panetta at Ali Al Salem Air Base, Kuwait

THE FIRST LADY WORKS WITH MARINE CORPS AT TOYS FOR TOTS EVENT

First Lady Michelle Obama is escorted by Marine Corps Staff Sgt. Joel Vazquez as she arrives with a sack full of toys at the Toys for Tots Distribution Center at Joint Base Anacostia-Bolling in Washington, D.C., Dec. 11, 2012. The Marine Corps is ramping up efforts nationwide in support of its Toys for Tots campaign. Official White House Photo by Lawrence Jackson

 

FROM: U.S. DEPARTMENT OF DEFENSE
First Lady Assists Marines at Toys for Tots Event
By Paul Bello
Joint Base Anacostia-Bolling Public Affairs

JOINT BASE ANACOSTIA-BOLLINGWashington, D.C., Dec. 12, 2012 - First Lady Michelle Obama arrived here yesterday carrying a big red bag filled with presents -- courtesy of White House staff members.

The gesture comes as the Marine Corps ramps up efforts nationwide in support of its Toys for Tots campaign.

As she has for the past four years, Obama joined several Marines inside JBAB's Naval Marine Corps Reserve Center where they listened to Christmas music, shared some laughs and volunteered to sort toys and clothes into boxes for those less fortunate. The gifts will be handed out to underprivileged children living in the Washington, D.C., area.

"Toys for Tots started with a military family. A Marine reservist and his wife decided to make the holiday a little better for children in need," Obama told those gathered for the occasion. "Since then, Americans and military families like all of you have spent countless hours bringing gifts and holiday cheer to children all across this country. This is just one example of how military families go that extra mile to serve our communities. I'm proud to be here with all of you today."

Obama and Jill Biden, wife of Vice President Joe Biden, launched the "Joining Forces" program when they arrived in Washington as a way to honor, recognize and support veterans and military families everywhere. Obama said the program's goal from the start has been to serve the military as well as they've served the nation.

Recently, Obama invited military families to be the first to view the official White House Christmas tree, which is trimmed with ornaments decorated by children living on U.S. military bases around the world. Additionally, guests to the White House are participating in Operation Honor Cards where people send notes of thanks to service members representing all branches of the military.

Pete Osman, president and CEO of the Marine Toys for Tots Foundation and a retired Marine Corps lieutenant general, thanked everyone in the community for their generosity, particularly in a difficult economy and those who are still reeling from the effects of Hurricane Sandy.

He also thanked Obama, who he said has been the campaign's biggest supporter over the years. According to Osman, she has always kept her word on coming back to volunteer.

"The first lady literally rolls up her sleeves and helps us sort toys. I'm convinced the success of the Toys for Tots program is a result of the help we've gotten from her," Osman said. "When Michelle Obama leads, the American people follow. And they've certainly followed her on this one."

Osman said there are more than 700 local Toys for Tots campaigns nationwide this year. Toys will continue to be collected right up to the holidays and anyone can volunteer to help out, he said.

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PFIZER WILL PAY $55 MILLION FOR ILLEGAL PROMOTION OF PROTONIX FOR OFF-LABEL USE

FROM: U.S. DEPARTMENT OF JUSTICE

Wednesday, December 12, 2012
Pfizer Agrees to Pay $55 Million for Illegally Promoting Protonix for Off-Label Use

Pfizer Inc. will pay $55 million plus interest to resolve allegations that Wyeth LLC illegally introduced and caused the introduction into interstate commerce of a misbranded drug, Protonix, between February 2000 and June 2001, the Justice Department announced today.

Wyeth manufactured and promoted Protonix tablets. Protonix is a proton pump inhibitor (PPI) that was used by physicians to treat various forms of gastro-esophageal reflux disease (GERD). Wyeth sought and obtained approval from the Food and Drug Administration (FDA) to promote Protonix for short-term treatment of erosive esophagitis–a condition associated with GERD that can only be diagnosed with an invasive endoscopy. However, the government alleges that Wyeth fully intended to, and did, promote Protonix for all forms of GERD, including symptomatic GERD, which was far more common and could be diagnosed without an endoscopy.

Under the Federal Food Drug and Cosmetic Act, manufacturers must obtain FDA approval for any indication for use for which a manufacturer intends to market a drug. A drug is misbranded if its labeling does not bear adequate directions for use by a layman safely and for the purposes for which it is intended. A prescription drug must be prescribed by a physician and is only exempt from the adequate directions for use requirement if a number of conditions are met, including that the manufacturer only intended to sell that drug for an FDA-approved use. A prescription drug marketed for unapproved off-label uses does not qualify for the exemption and is misbranded.

As alleged in the government’s complaint, Wyeth’s illegal promotional campaign for Protonix was multi-faceted. Before Wyeth even began promoting Protonix, the FDA warned Wyeth that its proposed promotional materials were misleading because Wyeth had "overstated" its "erosive esophagitis indication" by "suggesting that Protonix is safe and effective in the treatment of patients with . . . GERD. Protonix is not indicated for treatment of GERD symptoms that occur in the absence of esophageal erosions." Despite the FDA’s admonishment, the government alleges that Wyeth trained its sales force to promote Protonix for all forms of GERD, beyond its limited erosive esophagitis indication, and that Wyeth sales representatives frequently promoted Protonix to physicians for unapproved uses, such as symptomatic GERD.

In addition, Wyeth allegedly promoted Protonix as the "best PPI for nighttime heartburn." even though there was never any clinical evidence that Protonix was more effective than any other PPI for nighttime heartburn. The allegations in the complaint are that this superiority slogan was formulated at the highest levels of the company. Wyeth retained an outside market research firm, at the cost of tens of thousands of dollars, to ensure that sales representatives delivered that misleading superiority message.

Finally, the government alleges that Wyeth used continuing medical education (CME) programs to promote Protonix for unapproved uses. CME programs are sponsored by accredited independent providers, such as universities, nonprofit organizations, or specialty societies. Pharmaceutical companies are permitted to provide financial support for CME programs, but they are not permitted to use CME programs as promotional vehicles for off-label indications. According to the complaint, Wyeth spent millions of dollars providing "unrestricted educational grants" to CME providers, and these grants invariably included promises that Wyeth would not attempt to influence the content of the program in any way. Nevertheless, the government alleges that one of Wyeth’s core marketing tactics for Protonix was to use CME programs to drive off-label use of the drug. According to the complaint, the Protonix "brand team" influenced virtually every aspect of these CME programs: program topics, speaker selection, organization, and content. In addition, the government alleges that Wyeth even insisted that the CME program materials use the same color and appearance as Protonix promotional materials–a tactic that Wyeth and the vendor called "branducation."

"Today’s settlement once again demonstrates our commitment to making sure drug manufacturers follow the rules," said Stuart Delery, Principal Deputy Assistant Attorney General of the Department of Justice’s Civil Division. "Drug manufacturers should not be permitted to profit from misbranding their products; the disgorgement remedy here ensures that this does not happen in this case."

"Wyeth tried to cheat the system by obtaining a limited FDA approval for Protonix, fully intending to promote this drug for additional, unapproved uses," said U.S. Attorney Carmen M. Ortiz. "Wyeth ignored the FDA’s warning not to promote Protonix off-label, and then went so far as to contaminate CME programs that physicians rely on for unbiased, independent scientific information. Today’s settlement reinforces this office’s historic commitment to holding drug companies responsible for their misconduct."

This case was litigated by Assistant U.S. Attorneys David Schumacher and Susan Winkler of Ortiz’s Health Care Fraud Unit, together with former Trial Attorney Kevin Larsen and Deputy Director Jill Furman in the Department of Justice Consumer Protection Branch. This case was investigated by the FDA’s Office of Criminal Investigations; the Office of Inspector General of the Department of Health and Human Services, the Department of Veterans’ Affairs, and the FBI.

This civil complaint and settlement resolve the United States’ investigation of Wyeth related to the promotion of Protonix for unapproved uses. The claims settled by this agreement are allegations only, allegations which Pfizer denies; there has been no determination of liability. Pfizer acquired Wyeth in October 2009. Since August 2009, Pfizer has been under a Corporate Integrity Agreement with the Department of Health and Human Services, which agreement remains in effect.

U.S. AND CANADA EXPAND ARTIC COOPERATION

U.S. Army Gen. Charles Jacoby Jr., left, at table, commander of NORAD and U.S. Northern Command, and Canadian Army Lt. Gen. Stuart Beare, Canadian Joint Operations Command commander, sign the Tri-Command Framework for Arctic Cooperation and the Tri-Command Training and Exercise Statement of Intent during the 230th meeting of the Canada-U.S. Permanent Joint Board on Defense at the U.S. Air Force Academy in Colorado Springs, Colo., Dec. 11, 2012. Photo by Doug Sanderson

FROM: U.S. DEFENSE DEPARTMENT

U.S., Canada Expand Arctic Cooperation, Military Training
By Donna Miles
American Forces Press Service

WASHINGTON, Dec. 11, 2012 - The United States and Canada entered into two new agreements today that expanded their security relationship by promoting closer cooperation in peacefully opening the Arctic and in expanding their bilateral military training and exercise program.

Army Gen. Charles Jacoby Jr., commander of North American Aerospace Defense Command and U.S. Northern Command, joined Canadian Army Lt. Gen. Stuart Beare, commander of Canadian Joint Operations Command, in signing the Tri-Command Framework for Arctic Cooperation during a meeting of the Permanent Joint Board of Defense at the U.S. Air Force Academy in Colorado Springs, Colo.

The agreement emphasizes that the Arctic is not a region of conflict, but rather a place where nations can work together peacefully and the U.S. and Canadian militaries will support other departments and agencies in response to regional threats and hazards when requested and directed, officials said.

The goal is to promote enhanced military cooperation in the Arctic, particularly in support of safety, security and defense operations.

During today's session, the participants agreed to collaborate more closely in a host of areas, including training, capabilities, research and development, science and technology, domain awareness, communications and operations, all to promote a safe and secure Arctic region, Royal Canadian Air Force Brig. Gen. A.D. "Al" Meinzinger, deputy director of NORAD's and Northcom's strategy, policy and plans directorate, told American Forces Press Service.

DOD's unified defense plan, which President Barack Obama signed in April 2011, designated Northcom as the department's advocate for Arctic capabilities.

The designation recognizes that the opening of the polar icecap -- and the increased presence of human activity -- has important strategic implications, Meinzinger said. "With an opening Arctic, we see more vessel traffic, and obviously see a greater need for a deeper understanding of the domain there," he said.

"We have common interests," he said. "The eight [Arctic] nations understand that this is a fragile environment, and we have a mutual interest in ensuring the Arctic opens in a peaceful manner and that conflict is not on anybody's priority list."

Another agreement signed today expands cooperation in the training and exercise realm and recognizes the shared security interests and budget constraints facing both militaries, Royal Canadian Navy Cmdr. Darren Rich, Canadian Joint Operations Command's representative to NORAD and Northcom, told American Forces Press Service.

The Tri Command Training and Exercise Statement is aimed at enhancing joint and combined readiness in support of safety, security and defense missions between the Canadian and U.S. militaries.

As examples, Rich noted the Vigilant Shield and Determined Dragon exercises, which bring the three commands together to exercise their ability to protect the U.S. and Canadian homelands and support civil authorities in the event of a natural or manmade disaster.

The new agreement will formalize these exchanges and encourage more cross-border training in ways that strengthen both countries' defense plans, he said.

"We hope to work through this in an exercise format to find out where the seams and capabilities are," Rich said. "What we all expect are better planned processes that help us define training objectives far enough in advance to develop the scenarios to test the training objectives. Then, through the [after action review] process, we can see if we met the objectives, where the gaps are, what worked well and what we need to fix."

The signing "further codifies the bilateral relationship" and helps the two countries' militaries work together more closely and leverage their resources, Rich said. "It postures us so we can both work together for the safety, security and defense of both our nations' populations," he said.

This week's meeting is the 230th for the Permanent Joint Board of Defense, which stood up after President Franklin Roosevelt and Canadian Prime Minister Mackenzie King solidified the two countries' military-to-military relationship with the signing of the Ogdensburg Agreement in August 1940. The board is the highest-level bilateral defense and security forum between the United States and Canada. Its collaboration ultimately led to the establishment of what is now the bi-national North American Aerospace Defense Command in 1958.

"This is a wonderful forum where Canadians and Americans discuss issues of common necessity," Meinzinger said. "We use this venue to put in motion action plans and to work together to address the challenges of the day."

This week's Permanent Joint Board of Defense forum follows the signing of a new Combined Defense Plan between the two countries last January.

During the session in Ottawa, Jacoby joined Canadian Army Lt. Gen. Walter Semianiw, commander of the former Canada Command that became part of Canadian Joint Operations Command in October, and established a planning framework to enhance defense cooperation in the event the U.S. or Canadian governments need each other's assistance, such as during a natural disaster or attack.

Jacoby and Semianiw also renewed for the next two years the Civil Assistance Plan that allows the military from one nation to support the armed forces of the other during a civil emergency. That agreement, in effect since 2008, recognizes the role of each nation's lead federal agency for emergency preparedness, but facilitates military support of civil authorities once government authorities have agreed on an appropriate response, officials said. In the United States, the Department of Homeland Security would be the lead agency. In Canada, it would be Public Safety Canada.

A third document, the Information Sharing Memorandum of Understanding, was signed last January, and updated existing arrangements to promote information-sharing among the three organizations, officials said.

Diabetes, 24-7

Diabetes, 24-7

THE MARTIAN ATMOSPHERE, GONE WITH THE WIND

FROM: NASA

Billions of years ago, Mars had a lot more air than it does today. (Note: Martian "air" is primarily carbon dioxide, not the nitrogen-oxygen mix we breathe on Earth.) Ancient martian lake-beds and river channels tell the tale of a planet covered by abundant water and wrapped in an atmosphere thick enough to prevent that water from evaporating into space. Some researchers believe the atmosphere of Mars was once as thick as Earth's. Today, however, all those lakes and rivers are dry and the atmospheric pressure on Mars is only 1% that of Earth at sea-level. A cup of water placed almost anywhere on the Martian surface would quickly and violently boil away—a result of the super-low air pressure.

 

Mars Atmosphere Loss

This video illustration shows how Mars may have lost its atmosphere to the solar wind after the Red Planet's magnetic field died.

 

SOCIAL MEDIA AND LEGAL RESPONSIBILITY REGARDING TERRORIST ORGANIZATIONS

Credit:  Wikimedia Commons.

FROM: U.S. STATE DEPARTMENT
FTOs Use of Social Media
Taken Question
Office of the Spokesperson
Washington, DC
December 11, 2012

QUESTION: Do ‘U.S. based’ social media companies violate sanctions if Foreign Terrorists Organizations (FTOs) agree to their company’s contractual agreement before establishing an account?

ANSWER: This is an issue governed by U.S. law, including laws that regulate interactions with designated entities. For example, persons subject to U.S. jurisdiction are prohibited from knowingly providing material support or resources to an entity that has been designated as Foreign Terrorist Organizations under section 219 of the Immigration and Nationality Act.

Additionally, it is illegal for persons subject to U.S. jurisdiction to engage in transactions with an entity that has been designated a Specially Designated Global Terrorist under Executive Order 13224.

We would refer you to the Department of Justice and the Department of the Treasury, respectively for any questions about how these are enforced in specific civil and criminal cases.

 

U.S. Department of Defense Armed with Science Update: THE NAME "ENTERPRISE" LIVES ON WITH NEW SHIP

U.S. Department of Defense Armed with Science Update

NIC FORECASTS THE FUTURE



PHOTO CREDIT:  NASA.

FROM: U.S. DEPARTMENT OF DEFENSE

National Intelligence Council Forecasts Megatrends
By Jim Garamone
American Forces Press Service

WASHINGTON, Dec. 11, 2012 – The American Century is drawing to a close, and the U.S. Defense Department will have to be more flexible in dealing with a faster-paced multipolar world, according to the Global Trends 2030 report released yesterday.

The National Intelligence Council has looked to the future to jumpstart the conversation about what U.S. policy should be, given world-wide trends.

In the annual report, the NIC makes its best guesses about several "megatrends" that will shape the world in 2030.

The first is individual empowerment. The council believes there will be a significant decrease in poverty in the world and a concomitant increase in the middle class. The council says this represents a "tectonic shift," as for the first time in history "a majority of the world’s population will not be impoverished."

The NIC expects the global economy to expand and the new members of the middle class will be able to harness new communications and manufacturing technologies.

The council sees this megatrend as the key to solving global challenges over the next 15 to 20 years. But the results of this expanded economy aren’t all rosy. The trend could also give individuals and small groups access to lethal and disruptive technologies and capabilities once only held by nation states.

The second megatrend NIC predicts is the diffusion of power. The council posits that by 2030, Asia will surpass the West in gross domestic production, population size, military spending and technology investment. If this occurs, China would become the world’s largest economy, with India and Brazil close behind. Other rising nations could include Colombia, Indonesia, Nigeria, South Africa and Turkey, while Russia, Europe and Japan could continue their declines.

But, according to the council, more important than who is up or down is that the nature of power will change. "Enabled by communications technologies, power will shift toward multifaceted and amorphous networks that will form to influence state and global actions," the report says. Countries unable to understand or use these new technologies "will not be able to punch their weight."

Demographic changes will transform the world of 2030, the report said. NIC estimates that the world population will grow from 7.1 billion today to 8.3 billion in 2030. Aging, migration and urbanization will push this megatrend. Its most noticeable manifestation will be the continued growth of cities, the report predicts, spurring economic growth, but potentially straining food and water resources.

The report said developing countries could become demographically "older," while the demand for labor drives migration. "Owing to rapid urbanization in the developing world, the volume of urban construction … over the next 40 years could roughly equal the entire volume of such construction to date in world history," the report says.

Finally, NIC predicts that "demand for food, water and energy will grow by approximately 35, 40 and 50 percent respectively." The growing population and expanded middle class will trigger that growth, the report said.

At the same time, the council wrote, climate change will accelerate, amplifying existing weather patterns -- meaning that wet areas become wetter and dry areas become drier. The council said this does not necessarily mean a world of scarcity, but stressed that world leaders must collaborate to tackle the problem.