A PUBLICATION OF RANDOM U.S.GOVERNMENT PRESS RELEASES AND ARTICLES
Thursday, December 13, 2012
U.S. EPA AND CONSUMER PRODUCT SAFETY COMMISION TO RESEARCH HEALTH IMPACTS OF NANOMATERIALS
FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY
EPA & Consumer Product Safety Commission Collaborate to Research Health Impacts of Nanomaterials
WASHINGTON, DC—The U.S. Environmental Protection Agency (EPA) and the U.S. Consumer Product Safety Commission (CPSC) are collaborating in a worldwide research effort to assess any potential impacts of nanomaterials on people’s health and the environment. Nanomaterials appear in many household products ranging from clothing to building materials. For example, one ongoing study evaluates the potential human and environmental effects from exposure to copper nanomaterials, an ingredient in wood treatment products used on wood for building decks and fences.
The emerging field of nanotechnology has led to substantial advances in energy, medicine, electronics, and clean technologies. The field relies on using materials at the nanoscale level, these nanomaterials are made up of very small particles, which are about 100,000 times smaller than the width of a human hair. Because of the unique properties of these materials, it is important to conduct research to identify methods that will allow manufacturers and other stakeholders to ensure that products containing these materials do not harm people or the environment.
"Nanotechnology and nanomaterials used in the development of these products improve our everyday lives, but it is important that we understand how humans are exposed to nanomaterials and to assess the risks they may pose to people’s health and the environment," said Dr. Tina Bahadori, national program director for EPA’s Chemical Safety for Sustainability Research. "This innovative research greatly improves what is known about nanomaterials and will inform the future design of more sustainable, effective nanomaterials."
"These tiny nanomaterials are widely used in products ranging from clothing to sunscreen, but the need for additional research and knowledge on how they affect consumers is great. The CPSC staff is working diligently to meet the challenges involved in regulating this emerging technology and is pleased to be collaborating with staff at EPA to develop test methods and exposure data to adequately address health and safety concerns" said Dr. Treye Thomas, program manager for the CPSC Nanotechnology program.
EPA's collaborative research with CSPC is part of a larger international effort that focuses on:
• Identifying, characterizing and quantifying the origins of nanomaterials
• Studying biological processes affected by nanomaterials that could influence risk
• Determining how nanomaterials interact with complex systems in the human body and the environment
• Involving industry to develop sustainable manufacturing processes
• Sharing knowledge through innovative online applications that allow for rapid feedback and accelerated research progress
CPSC, in working with other federal agencies, ensures that common public health concerns are met and will use research findings to inform:
• Protocol development to assess the potential release of nanomaterials from consumer products
• Credible rules for consumer product testing to evaluate exposure
• Determination of the potential public health impacts of nanomaterial used in consumer products
This research is a part of the U.S. government’s efforts to assess the potential risks of nanomaterials. These efforts are coordinated by the U.S. National Nanotechnology Initiative (NNI). NNI is a collaborative project comprised of 25 agencies, including EPA and CPSC.
U.S. UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING DECEMBER 8, 2012
FROM: U.S. DEPARTMENT OF LABOR
SEASONALLY ADJUSTED DATA
In the week ending December 8, the advance figure for seasonally adjusted initial claims was 343,000, a decrease of 29,000 from the previous week's revised figure of 372,000. The 4-week moving average was 381,500, a decrease of 27,000 from the previous week's revised average of 408,500.
The advance seasonally adjusted insured unemployment rate was 2.5 percent for the week ending December 1, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending December 1 was 3,198,000, a decrease of 23,000 from the preceding week's revised level of 3,221,000. The 4-week moving average was 3,270,750, a decrease of 42,250 from the preceding week's revised average of 3,313,000.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 428,814 in the week ending December 8, a decrease of 72,117 from the previous week. There were 435,863 initial claims in the comparable week in 2011.
The advance unadjusted insured unemployment rate was 2.5 percent during the week ending December 1, 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 3,159,199, a decrease of 158,195 from the preceding week. A year earlier, the rate was 2.8 percent and the volume was 3,540,663.
The total number of people claiming benefits in all programs for the week ending November 24 was 5,642,678, an increase of 683,477 from the previous week. There were 7,449,508 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 24.
Initial claims for UI benefits filed by former Federal civilian employees totaled 2,017 in the week ending December 1, an increase of 389 from the prior week. There were 2,910 initial claims filed by newly discharged veterans, an increase of 1,047 from the preceding week.
There were 20,778 former Federal civilian employees claiming UI benefits for the week ending November 24, an increase of 1,930 from the previous week. Newly discharged veterans claiming benefits totaled 41,391, an increase of 4,501 from the prior week.
States reported 2,194,253 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending November 24, an increase of 185,645 from the prior week. There were 3,048,926 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 24 were in Alaska (5.8), New Jersey (4.5), Puerto Rico (4.0), Oregon (3.8), Pennsylvania (3.7), California (3.5), Wisconsin (3.5), Montana (3.4), Connecticut (3.3), Nevada (3.2), and West Virginia (3.2).
The largest increases in initial claims for the week ending December 1 were in California (+24,411), Pennsylvania (+14,636), North Carolina (+13,961), New York (+11,025), and Texas (+10,435), while the largest decreases were in Kentucky (-615), Idaho (-481), Vermont (-402), Florida (-348) and Wisconsin (-91).
SEASONALLY ADJUSTED DATA
In the week ending December 8, the advance figure for seasonally adjusted initial claims was 343,000, a decrease of 29,000 from the previous week's revised figure of 372,000. The 4-week moving average was 381,500, a decrease of 27,000 from the previous week's revised average of 408,500.
The advance seasonally adjusted insured unemployment rate was 2.5 percent for the week ending December 1, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending December 1 was 3,198,000, a decrease of 23,000 from the preceding week's revised level of 3,221,000. The 4-week moving average was 3,270,750, a decrease of 42,250 from the preceding week's revised average of 3,313,000.
The advance number of actual initial claims under state programs, unadjusted, totaled 428,814 in the week ending December 8, a decrease of 72,117 from the previous week. There were 435,863 initial claims in the comparable week in 2011.
The advance unadjusted insured unemployment rate was 2.5 percent during the week ending December 1, 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 3,159,199, a decrease of 158,195 from the preceding week. A year earlier, the rate was 2.8 percent and the volume was 3,540,663.
The total number of people claiming benefits in all programs for the week ending November 24 was 5,642,678, an increase of 683,477 from the previous week. There were 7,449,508 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 24.
Initial claims for UI benefits filed by former Federal civilian employees totaled 2,017 in the week ending December 1, an increase of 389 from the prior week. There were 2,910 initial claims filed by newly discharged veterans, an increase of 1,047 from the preceding week.
There were 20,778 former Federal civilian employees claiming UI benefits for the week ending November 24, an increase of 1,930 from the previous week. Newly discharged veterans claiming benefits totaled 41,391, an increase of 4,501 from the prior week.
States reported 2,194,253 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending November 24, an increase of 185,645 from the prior week. There were 3,048,926 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 24 were in Alaska (5.8), New Jersey (4.5), Puerto Rico (4.0), Oregon (3.8), Pennsylvania (3.7), California (3.5), Wisconsin (3.5), Montana (3.4), Connecticut (3.3), Nevada (3.2), and West Virginia (3.2).
The largest increases in initial claims for the week ending December 1 were in California (+24,411), Pennsylvania (+14,636), North Carolina (+13,961), New York (+11,025), and Texas (+10,435), while the largest decreases were in Kentucky (-615), Idaho (-481), Vermont (-402), Florida (-348) and Wisconsin (-91).
GETTING READY FOR THE PRESIDENTIAL INAUGURATION PARADE
Rehearsals Pave Way for Presidential Inauguration, Parade
By Claudette Roulo
American Forces Press Service
WASHINGTON, Dec. 12, 2012 - A map the size of half a basketball court covers the floor of the D.C. Armory today. On it, hundreds of people are rehearsing what one military official describes as a "ballet" -- the events of the 57th Presidential Inauguration
The inauguration and parade will showcase months of planning between military and civilian organizations, according to a Joint Task Force National Capital Region news release.
"[The rehearsal is] a very good tool for synchronizing events in time and space," said Army Maj. Gen. Michael S. Linnington, the commanding general of JTF-NCR. It allows participating units to actually walk on the map as they talk through the sequence of events surrounding the inauguration and parade, he said.
"The military does rehearsals better than anybody," the general said. "As they're walking through the routes, folks that are along the routes or have other events taking place can see the effect [on their event]."
"The majority of the parade is civilian and we have to help stage and move those folks as well," said Air Force Brig. Gen. James P. Scanlan, JTF-NCR's deputy for inaugural support. "It's an incredible amount of folks that have to be moved into the mall area and onto the parade route."
Staging the bands, floats, horse units and buses all in one day is a very difficult task, Linnington said.
"Once you see it all happen [on the map], it helps you de-conflict all those movements," he said.
The actual setup for the inauguration largely happens less than 24 hours beforehand to avoid disrupting traffic and city residents, Linnington said.
"It's amazing how quickly it takes place," he added.
"If you look now, obviously you see the reviewing stand by the White House is already under construction [and] the stand up on the west Capitol front [is] already under construction, so there's a lot being done that we can do now," Scanlan said.
"It's quite a ballet when you think about it," he said. "In the wee hours of the morning prior to the inauguration, that's when a lot of the finer details will be set up." Those details, he added, include placing warming tents, bike racks and barriers.
In addition, traffic lights and signs along Pennsylvania Avenue will be taken down and then put back up before rush hour the next morning, said Army Maj. Gen. Errol R. Schwartz, the commanding general of the D.C. National Guard.
Linnington said he expects to conduct about 24 more rehearsals before the inauguration, each focusing on various aspects of the inauguration itself and the events surrounding it.
"Today's rehearsal is a ceremonial rehearsal," he said, "where we're synchronizing all the ceremonial events that will take place and the support for those events on inauguration day."
The rehearsals allow everyone to synthesize the months of planning that have taken place, the general said, and to ensure that "in the final 40 days -- the final stages of the event -- there are no missteps or misunderstandings."
RECENT U.S. NAVY PHOTOS
FROM: U.S. NAVY
121207-O-GR159-001 PATUXENT RIVER, Md. (Dec. 7, 2012) Maj. C. R. Clift, a Marine Corps test pilot, flies BF-1, an F-35B Lightning II, on a short take off and vertical landing mode mission. The flight marked the 1000th developmental test flight for the F-35B Lightning II in the program's program's system development and demonstration phase. The F-35B is the variant of the Lightning II designed for use by the U.S. Marine Corps, as well as F-35 international partners in the United Kingdom and Italy. The F-35B is capable of short takeoffs and vertical landings to enable air power projection from amphibious ships, ski-jump aircraft carriers and expeditionary airfields. The F-35B is undergoing flight test and evaluation at NAS Patuxent River, Md., prior to delivery to the fleet. (Photo by Dane Wiedmann/Released)
121210-N-QM601-167 ATLANTIC OCEAN (Dec. 10, 2012) The multipurpose amphibious assault ship USS Iwo Jima (LHD 7), left, the amphibious dock landing ship USS Gunston Hall (LSD 44) and the amphibious transport dock ship USS New York (LPD 21) transit the Atlantic Ocean. Iwo Jima, the flagship of the Iwo Jima Amphibious Ready Group with the embarked 24th Marine Expeditionary Unit (24th MEU), is currently deployed to support maritime security operations and theater security cooperation efforts in the U.S. 6th Fleet area of responsibility. (U.S. Navy photo by Mass Communication Specialist Seaman Apprentice Scott Youngblood/Released)
MANAGER AND HEDGE FUNDS TO PAY $44 MILLION TO SETTLE STOCK PRICE MANIPULATION CHARGES
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., Dec. 12, 2012 — The Securities and Exchange Commission today charged the manager of two New York-based hedge funds with conducting a pair of trading schemes involving Chinese bank stocks and making $16.7 million in illicit profits. He and his firms have agreed to pay $44 million to settle the SEC’s charges.
The SEC alleges that Sung Kook "Bill" Hwang, the founder and portfolio manager of Tiger Asia Management and Tiger Asia Partners, committed insider trading by short selling three Chinese bank stocks based on confidential information they received in private placement offerings. Hwang and his advisory firms then covered the short positions with private placement shares purchased at a significant discount to the stocks’ market price. They separately attempted to manipulate the prices of publicly traded Chinese bank stocks in which Hwang’s hedge funds had substantial short positions by placing losing trades in an attempt to lower the price of the stocks and increase the value of the short positions. This enabled Hwang and Tiger Asia Management to illicitly collect higher management fees from investors.
In a parallel action, the U.S. Attorney’s Office for the District of New Jersey today announced criminal charges against Tiger Asia Management.
"Hwang today learned the painful lesson that illegal offshore trading is not off-limits from U.S. law enforcement, and tomorrow’s would-be securities law violators would be well-advised to heed this warning," said Robert Khuzami, Director of the SEC’s Division of Enforcement.
Sanjay Wadhwa, Associate Director of the SEC’s New York Regional Office and Deputy Chief of the Enforcement Division’s Market Abuse Unit, added, "Hwang betrayed his duty of confidentiality by trading ahead of the private placements, and betrayed his fiduciary obligations when he defrauded his investors by collecting fees earned from his attempted manipulation scheme."
The SEC also charged Raymond Y.H. Park for his roles in both schemes as the head trader of the two hedge funds involved – Tiger Asia Fund and Tiger Asia Overseas Fund. Park, who lives in Riverdale, N.Y., also agreed to settle the SEC’s charges. Hwang lives in Tenafly, N.J.
According to the SEC’s complaint filed in federal court in Newark, N.J., from December 2008 to January 2009, Hwang and his advisory firms participated in two private placements for Bank of China stock and one private placement for China Construction Bank stock. Before disclosing material nonpublic information about the offerings, the placement agents required wall-crossing agreements from Park and the firms to keep the information confidential and refrain from trading until the transaction took place. Despite agreeing to those terms, Hwang ordered Park to make short sales in each stock in the days prior to the private placement. Hwang and his firms illegally profited by $16.2 million by using the discounted private placement shares they received to cover the short sales they had entered into based on inside information about the placements.
The SEC further alleges that on at least four occasions from November 2008 to February 2009, Hwang and his firms, with Park’s assistance, attempted to manipulate the month-end closing prices of Chinese bank stocks publicly listed on the Hong Kong Stock Exchange. These stocks were among the largest short position holdings in the hedge funds’ portfolios. The more assets the hedge funds had under management, the greater the management fee that Tiger Asia Management was entitled to collect. So Hwang directed Park to place losing trades in order to depress the stock prices, which would inflate the calculation of the management fees. Hwang and Tiger Asia Management made approximately $496,000 in fraudulent management fees through this scheme.
The SEC’s complaint charges Hwang, his firms, and Park with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 as well as Section 17(a) of the Securities Act of 1933. Hwang and his firms also are charged with violating Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8, and Park is charged with aiding and abetting those violations.
The settlements, which are subject to court approval, require Hwang, Tiger Asia Management, and Tiger Asia Partners to collectively pay $19,048,787 in disgorgement and prejudgment interest. Each of them has agreed to pay a penalty of $8,294,348 for a total of 24,883,044. Park agreed to pay $39,819 in disgorgement and prejudgment interest, and a penalty of $34,897. With the exception of Tiger Asia Management, the defendants neither admit nor deny the charges.
The SEC’s investigation was conducted by Thomas P. Smith, Jr., Sandeep Satwalekar, and Amelia A. Cottrell of the SEC’s Market Abuse Unit in New York, and Frank Milewski of the New York Regional Office. The SEC appreciates the assistance of the U.S. Attorney’s Office for the District of New Jersey, the Federal Bureau of Investigation, the Japanese Securities and Exchange Surveillance Commission, and the Hong Kong Securities and Futures Commission.
Washington, D.C., Dec. 12, 2012 — The Securities and Exchange Commission today charged the manager of two New York-based hedge funds with conducting a pair of trading schemes involving Chinese bank stocks and making $16.7 million in illicit profits. He and his firms have agreed to pay $44 million to settle the SEC’s charges.
The SEC alleges that Sung Kook "Bill" Hwang, the founder and portfolio manager of Tiger Asia Management and Tiger Asia Partners, committed insider trading by short selling three Chinese bank stocks based on confidential information they received in private placement offerings. Hwang and his advisory firms then covered the short positions with private placement shares purchased at a significant discount to the stocks’ market price. They separately attempted to manipulate the prices of publicly traded Chinese bank stocks in which Hwang’s hedge funds had substantial short positions by placing losing trades in an attempt to lower the price of the stocks and increase the value of the short positions. This enabled Hwang and Tiger Asia Management to illicitly collect higher management fees from investors.
In a parallel action, the U.S. Attorney’s Office for the District of New Jersey today announced criminal charges against Tiger Asia Management.
"Hwang today learned the painful lesson that illegal offshore trading is not off-limits from U.S. law enforcement, and tomorrow’s would-be securities law violators would be well-advised to heed this warning," said Robert Khuzami, Director of the SEC’s Division of Enforcement.
Sanjay Wadhwa, Associate Director of the SEC’s New York Regional Office and Deputy Chief of the Enforcement Division’s Market Abuse Unit, added, "Hwang betrayed his duty of confidentiality by trading ahead of the private placements, and betrayed his fiduciary obligations when he defrauded his investors by collecting fees earned from his attempted manipulation scheme."
The SEC also charged Raymond Y.H. Park for his roles in both schemes as the head trader of the two hedge funds involved – Tiger Asia Fund and Tiger Asia Overseas Fund. Park, who lives in Riverdale, N.Y., also agreed to settle the SEC’s charges. Hwang lives in Tenafly, N.J.
According to the SEC’s complaint filed in federal court in Newark, N.J., from December 2008 to January 2009, Hwang and his advisory firms participated in two private placements for Bank of China stock and one private placement for China Construction Bank stock. Before disclosing material nonpublic information about the offerings, the placement agents required wall-crossing agreements from Park and the firms to keep the information confidential and refrain from trading until the transaction took place. Despite agreeing to those terms, Hwang ordered Park to make short sales in each stock in the days prior to the private placement. Hwang and his firms illegally profited by $16.2 million by using the discounted private placement shares they received to cover the short sales they had entered into based on inside information about the placements.
The SEC further alleges that on at least four occasions from November 2008 to February 2009, Hwang and his firms, with Park’s assistance, attempted to manipulate the month-end closing prices of Chinese bank stocks publicly listed on the Hong Kong Stock Exchange. These stocks were among the largest short position holdings in the hedge funds’ portfolios. The more assets the hedge funds had under management, the greater the management fee that Tiger Asia Management was entitled to collect. So Hwang directed Park to place losing trades in order to depress the stock prices, which would inflate the calculation of the management fees. Hwang and Tiger Asia Management made approximately $496,000 in fraudulent management fees through this scheme.
The SEC’s complaint charges Hwang, his firms, and Park with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 as well as Section 17(a) of the Securities Act of 1933. Hwang and his firms also are charged with violating Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8, and Park is charged with aiding and abetting those violations.
The settlements, which are subject to court approval, require Hwang, Tiger Asia Management, and Tiger Asia Partners to collectively pay $19,048,787 in disgorgement and prejudgment interest. Each of them has agreed to pay a penalty of $8,294,348 for a total of 24,883,044. Park agreed to pay $39,819 in disgorgement and prejudgment interest, and a penalty of $34,897. With the exception of Tiger Asia Management, the defendants neither admit nor deny the charges.
The SEC’s investigation was conducted by Thomas P. Smith, Jr., Sandeep Satwalekar, and Amelia A. Cottrell of the SEC’s Market Abuse Unit in New York, and Frank Milewski of the New York Regional Office. The SEC appreciates the assistance of the U.S. Attorney’s Office for the District of New Jersey, the Federal Bureau of Investigation, the Japanese Securities and Exchange Surveillance Commission, and the Hong Kong Securities and Futures Commission.
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.
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.
U.S. MILITARY MEETS OR EXCEEDS MOST RECRUITMENT GOALS IN FIRST MONTH OF FISCAL 2013
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 |
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
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.
Wednesday, December 12, 2012
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.
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. |
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 RULE MAKES DISTRIBUTION OF BANKRUPT COMPANY RETIREMENT FUNDS, EASIER
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.
THE FIRST LADY WORKS WITH MARINE CORPS AT TOYS FOR TOTS EVENT
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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