Saturday, December 15, 2012
SEC ALLEGES CREATION OF FRAUDULENT VALUATIONS OF COMPANY STOCK
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| Photo: Patterns In Nature. Credit: National Science Foundation. |
SEC Charges Massachusetts Company, CEO and Promoters With $9 Million Securities Fraud
The Securities and Exchange Commission filed an enforcement action today in federal court in Boston against BioChemics, Inc., a biopharmaceutical company based in Danvers, Massachusetts, its CEO and two individuals it paid to solicit investors. The SEC alleges, among other things, that the defendants made false statements to investors about collaborations with major pharmaceutical companies and the status and results of drug trials of the company’s main product, and that they created fraudulent valuations of the company’s stock in order to raise millions of dollars from investors. The action charges BioChemics, its CEO John Masiz of Topsfield, Massachusetts, Craig Medoff of New York, New York and Gregory Kroning of Norwood, New Jersey, with violating the federal securities laws in a fraudulent scheme that raised at least $9 million from 70 investors in 19 states from at least 2009 until 2012.
According to the SEC’s complaint, filed in the United States District Court for the District of Massachusetts, BioChemics purportedly makes a transdermal drug delivery system. The defendants allegedly told investors that BioChemics was engaged in active research and development collaborations with major pharmaceutical companies, that it had two drugs under FDA review, and that it was conducting specific clinical trials—all of which was false. According to the complaint, when BioChemics finally did conduct one clinical trial, it misrepresented the results of that trial. The SEC’s complaint further alleges that defendants Masiz and Medoff created and gave to investors fraudulent valuations setting the worth of BioChemics at between $500 million and $2 billion. However, according to the complaint, the valuations had no reasonable basis and the defendants’ representations that the valuations had been developed by reputable independent investment banks were false. In addition, the complaint alleges that defendants told investors their money would be used to fund clinical trials and for operating expenses, but in fact used some investor funds to pay for personal expenses for Masiz including meals, massages, clothes and sporting goods and to make interest-free loans of over $200,000 to Kroning in addition to paying for his personal expenses including a leased BMW.
Masiz and Medoff have previously been sued by the Commission in connection with earlier securities frauds. Masiz was a defendant in a 2004 SEC enforcement action alleging false and misleading statements by VASO Active Pharmaceuticals, a BioChemics subsidiary. A final judgment by consent was entered against Masiz that permanently enjoined him from violating the antifraud provisions of the federal securities laws. Medoff was a defendant in a 1993 SEC enforcement action alleging the fraudulent offering of unregistered securities. That case resulted in a final judgment by consent against Medoff in 1994 that permanently enjoined him from violating the antifraud provisions of the federal securities laws. The Commission also issued an Order in January 1995 barring Medoff from associating with, among others, brokers, dealers, and investment advisers. In a separate case involving different conduct, Medoff also pled guilty to criminal securities fraud charges in 1995.
The complaint charges all defendants with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 thereunder and also charges Kroning and Medoff with violating Section 15(a) of the Exchange Act by acting as unlicensed brokers and Medoff with violating Section 15(b) of the Exchange Act by acting as a broker after being permanently barred from the industry in a previous action by the Commission. The complaint seeks injunctive relief, disgorgement, and civil penalties, as well as an order barring Masiz from serving as an officer or director of any public company. The complaint also seeks an order barring Masiz and Medoff and any entity they own or control from participating in the issuance, offer, or sale of any security aside from their own personal trading accounts.
MARINE VOLUNTEERS TIME AND FISHING SKILLS WITH WOUNDED VETS
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| Marine Corps Cpl. Joshua T. Shakeshaft, a combat engineer and head instructor for improvised explosive device awareness at the Battle Skills Training School on Camp Lejeune, N.C., accepts the 2012 Veteran of the Year award from Mayor Sammy Phillips of Jacksonville, N.C., during a ceremony held Nov. 20, 2012. Shakeshaft received the award for his ongoing efforts to help wounded veterans. Photo by Lisa Miller |
FROM: U.S. DEPARTMENT OF DEFENSE
Face of Defense: Marine Shares Love of Fishing With Injured Vets
By Marine Corps Cpl. Paul Peterson
2nd Marine Logistics Group
CAMP LEJEUNE, N.C., Dec. 13, 2012 - They called his name, and the rest was just a blur
Marine Corps Cpl. Joshua T. Shakeshaft, a combat engineer and head instructor for improvised explosive device awareness at the Battle Skills Training School here, walked to the head of the council chambers at City Hall in Jacksonville, N.C., Nov. 20 to accept the 2012 Veteran of the Year award.
Jacksonville is proud of its unique bond with local veterans, said Mayor Sammy Phillips, who personally handed the award to Shakeshaft. Every year since 1988, the city takes a moment to recognize veterans from each of the city's veteran organizations for demonstrating outstanding volunteerism, support and leadership.
More than 100 people filled the council chambers as Phillips thanked each of the 30 recipients for their continued service to the local community and the nation.
"I was perfectly happy with a pat on the back," said Shakeshaft, who accepted the award as the nominee for Heroes on the Water, an organization that provides wounded and disabled veterans with an outlet for stress though kayak fishing. "The last thing I ever expected was to get an award from the mayor."
Shakeshaft, a Castle Rock, Colo., native and veteran of Operation Enduring Freedom, first became active with the organization after returning to the states to be with his mother, who was dying of cancer.
He instantly found an outlet for his own combat stress and personal loss through an activity he loved from his time back home: fishing.
"He was hooked the very first time he went out with us, and he has gone out ever since," said Patrick Curley, one of Shakeshaft's personal mentors and the Chrystal Coast Chapter coordinator for Heroes on the Water. "He has found something he enjoys doing, and now he is sharing it with other people."
Shakeshaft saw his participation as a personal means of healing and a way to help his fellow veterans struggling with visible and unseen wounds. It increasingly consumed his free time.
"No one here knew I was taking veterans out fishing every weekend," Shakeshaft said. "I don't expect recognition for it. I'm doing it for me. I'm doing it for my gratification -- helping people helps me. I got that from my mom."
Shakeshaft continues to share his expertise with IEDs as an instructor during his working hours here, but his weekends belonged to the waterways of North Carolina.
"It has changed my life," he said. "It is like the brotherhood you see when you are in combat ... [whether] it is a double amputee or someone who has post-traumatic stress disorder, everybody can relate with each other."
Shakeshaft said his wife, Traci, is his biggest supporter. Fishing and volunteering cut into the couple's small amount of free time, but she understands its importance and even tells him to go out.
He takes particular joy in seeing what he calls a "hero's moment," when a wounded warrior finds a few minutes of peaceful sleep in a kayak while his feet dangle in the water.
Shakeshaft's contributions to the community quickly grew after his first volunteering experience with the group. He regularly brought new participants to events and became increasingly involved in other volunteer opportunities.
Whether it is mentoring local youth, participating in veterans meetings and parades or simply providing an open ear to a fellow service member, he said the gratification of doing something good helps him heal.
Shakeshaft is planning additional outreach programs. He hopes someday to return to Colorado, where he can help veteran communities find some of the peace he experiences nearly every weekend in North Carolina.
USO KICK-OFF
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| Army Gen. Martin E. Dempsey, center-left, chairman of the Joint Chiefs of Staff, and Marine Corps Sgt. Maj. Bryan B. Battaliga, center-right, the chairman's senior enlisted advisor, join a group of USO celebrities and some of the Carrier Strike Group 3, USS John C. Stennis' crew, for a photo opportunity aboard the aircraft carrier, Dec. 13, 2012. The chairman began his annual USO holiday tour aboard the USS Stennis. DOD photo by U.S. Army Sgt. 1st Class Tyrone C. Marshall Jr. |
FROM: U.S. DEPARTMENT OF DEFENSE
Dempsey Praises Troops During USO Tour Kick-off
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service
ABOARD THE USS JOHN C. STENNIS, Dec. 14, 2012 - The chairman of the Joint Chiefs of Staff greeted deployed sailors and Marines on this huge aircraft carrier as he kicked off his annual USO holiday tour yesterday.
Army Gen. Martin E. Dempsey introduced this year's lineup of USO talent with Washington Nationals Major League Baseball players Ross Detwiler and Craig Stammen; Matt Hendricks, a Washington Capitals' National Hockey League player; comedian Iliza Schlesinger, winner of NBC's Last Comic Standing; as well as country music singer Kellie Pickler.
The chairman was joined by his senior enlisted advisor, Marine Corps Sgt. Maj. Bryan B. Battaglia, their spouses, USO President Sloan D. Gibson, and Shane Hudella, of "Defending the Blue Line," an organization that donates hockey equipment to military families.
"On behalf of all of the million-plus men and women serving in uniform, let me thank you for your service," Dempsey said, as the USO talent presented their inaugural show to the ship's crew.
"When the itinerary for the chairman's annual holiday USO tour was being formed, the only thing I said to my staff was, 'Look, we've got to go to the Stennis because we've asked more of those young men and women than we've asked of anybody else in the past year,'" he said.
The chairman acknowledged many of the sailors were assigned to this deployment soon after a short five-month turnaround from a previous combat tour that ended in March.
"You're out here keeping commerce flowing [in the Arabian Gulf], making sure that our potential enemies know that we're alert and ready, and just being the best possible representatives of our great country," Dempsey said.
"So on behalf of the Joint Chiefs, all of us -- the senior leaders of the military -- let me say thanks to you," he said. "And also I want you to pass that to your family members when you have a chance to talk to them."
Dempsey added, "I do want you to tell them how much we appreciate the service of the John C. Stennis Strike Group. We're really, really proud of you."
Battaglia was equally grateful to the crew of the aircraft carrier and pointed to the ship's motto, "Honor, Commitment and Courage," as a symbol of their commitment to military service.
"I was just noticing the powerful-looking image that we have standing behind us," he said, noting an enormous USS Stennis flag, serving as a backdrop for the USO show.
"It's not only the image of naval sea power in its best of form," Battaglia said. "It's those three words that define our profession. It's moving to be able to share that with you -- honor, courage and commitment."
It's tough on troops during the holiday season when they're deployed away from home protecting the nation and its interests, the sergeant major acknowledged.
"[But] we're excited to be here -- we really are," he said. "And we know that you came down here for a specific reason ... you've come here to see some celebrities and entertainers and we're going to get that to you."
"So enjoy the show," Battaglia said. "Thanks, [USS] Stennis!"
NATO FACES LEAN TIMES
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| Czech Republic A10 Thunderbolt II Air Craft. Credit: U.S. Air Force |
FROM: U.S. DEPARTMENT OF DEFENSE
Smart Defense Team Helps NATO Face Lean Times
By Amaani Lyle
American Forces Press Service
NORFOLK, Va., Dec. 13, 2012 – As the cost of militaries increase, NATO allies can benefit from an efficiencies-driven Smart Defense program, Allied Command Transformation officials said here yesterday.
Army Lt. Col. William Brown III, ACT Core Team member, and Richard Perks, ACT Capability Development Strategist spoke with reporters during the 2012 Chiefs of Transformation Conference. The event brings together NATO, partner, industry and government agency professionals to share best practices and expand collaboration.
"What Smart Defense really tries to do is help allies work together," said Perks, adding that even a small uptick in multinational group projects could significantly reduce the burden on individual allies.
"It’s about facilitating allies’ efficiency in their own defense programs … and by doing so it’s better for NATO," he said.
Brown agreed, noting that NATO aims to build and maintain capabilities that increase its effectiveness and relevance.
"Smart Defense is one of the ways that we are helping the nations to meet the demands of capability requirements as we go forward," Brown said. "We try to align the capabilities, achieve economies of scale and reduce duplication."
To do that, Brown explained, Smart Defense first examines the capabilities under a conceptual lens in helping to produce policy through NATO-level discussion. Next, he said, the core team takes a pragmatic approach to execute the ideas.
"We have 148 Smart Defense projects and proposals that cover a wide range of areas from procurement to training … a lot of them in the logistical realm," he said.
Brown cited a recent helicopter maintenance success story in which allies merged powers and unearthed major savings.
"Instead of nations having to send their experts and their maintenance people to Afghanistan to do scheduled maintenance on the aircraft, they are able to work together through the NATO logistics committee [in which the U.S.] had the lead and several nations participated," Brown said.
Ultimately, Brown explained, the Smart Defense project saved a nation 1.2 million Euros by enabling it to leave the aircraft in place for repairs instead of sending it back to its home station.
Equally important is operational readiness, Perks said.
"The helicopter stayed there, and whereas it would’ve been three or four months before it was available again, it was available in three or four weeks," he added.
Perks also emphasized that NATO’s capabilities are largely rooted in what the allies bring to the alliance. Because some NATO members have experienced difficult financial times, Brown said, Smart Defense is not a new concept, rather one brought to the foreground based on necessity.
Brown also noted the value of smaller countries that have positively impacted the alliance.
"It’s great to see a country like Slovakia or the Czech [Republic], who both have robust programs in the chemical and biological area [and] are providing some of the expertise on the projects related to that," Brown said.
The Czech Republic’s flight training program has been a feather in the nation’s cap, Brown added.
"Instead of every nation having to train five to 10 pilots per year, let’s work together on that. You can just imagine fixed costs when you run a flight school," Brown said.
"Smart Defense will continue if we’re able to get the mindset included in everybody’s beam," he said. "It’s not always going to be about pushing projects or proposals under the Smart Defense banner, but we need to make it so that it is included as part of the [NATO Defense Planning Process]."
NATO’s defense planning process, according to Brown, is a top-down approach where the requirements for member nations are being provided by NATO, while Smart Defense helps provide a bottom-up feed with the projects and proposals the nations use.
"The nations have come up with these ideas," Brown said. "If they believe that a project is important for them to pursue, the fact that they’re working in a multinational effort instead of trying to do it themselves … you see the efficiencies of these projects as they go forward."
Perks shared Brown’s sentiment.
"Smart Defense addresses the fiscal reality head on," Perks said. "Capabilities are big, they’re expensive, they’re complex and it’s increasingly difficult to build them, so we have to come together -- it’s the way ahead."
PRESIDENT OBAMA SPEAKS TO NATION REGARDING ELEMENTARY SCHOOL SHOOTING
FROM THE WHITE HOUSE:
This afternoon, I spoke with Governor Malloy and FBI Director Mueller. I offered Governor Malloy my condolences on behalf of the nation, and made it clear he will have every single resource that he needs to investigate this heinous crime, care for the victims, counsel their families.
We've endured too many of these tragedies in the past few years. And each time I learn the news I react not as a President, but as anybody else would -- as a parent. And that was especially true today. I know there's not a parent in America who doesn't feel the same overwhelming grief that I do.
The majority of those who died today were children -- beautiful little kids between the ages of 5 and 10 years old. They had their entire lives ahead of them -- birthdays, graduations, weddings, kids of their own. Among the fallen were also teachers -- men and women who devoted their lives to helping our children fulfill their dreams.
So our hearts are broken today -- for the parents and grandparents, sisters and brothers of these little children, and for the families of the adults who were lost. Our hearts are broken for the parents of the survivors as well, for as blessed as they are to have their children home tonight, they know that their children's innocence has been torn away from them too early, and there are no words that will ease their pain.
As a country, we have been through this too many times. Whether it's an elementary school in Newtown, or a shopping mall in Oregon, or a temple in Wisconsin, or a movie theater in Aurora, or a street corner in Chicago -- these neighborhoods are our neighborhoods, and these children are our children. And we're going to have to come together and take meaningful action to prevent more tragedies like this, regardless of the politics.
This evening, Michelle and I will do what I know every parent in America will do, which is hug our children a little tighter and we'll tell them that we love them, and we'll remind each other how deeply we love one another. But there are families in Connecticut who cannot do that tonight. And they need all of us right now. In the hard days to come, that community needs us to be at our best as Americans. And I will do everything in my power as President to help.
Because while nothing can fill the space of a lost child or loved one, all of us can extend a hand to those in need -- to remind them that we are there for them, that we are praying for them, that the love they felt for those they lost endures not just in their memories but also in ours.
May God bless the memory of the victims and, in the words of Scripture, heal the brokenhearted and bind up their wounds.
MORE EFFORT NEEDED TO COUNTER IEDs, JIEDDO DIRECTOR TELLS SENATE
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| Sgt. Michael Quandt, an Afghan Local Police trainer with Company D, 1st Battalion, 67th Armor Regiment, attached to 2nd Special Troops Battalion, 2nd Brigade Combat Team, 4th Infantry Division, relays instructions through an interpreter to an ALP officer during an improvised explosive device training lane at Joint Combat Outpost Masaw, Afghanistan, Sept. 15, 2011. The lane focused on teaching the ALP about identifying and securing IEDs. |
More Effort Needed to Counter IEDs, General Says
By Jim Garamone
American Forces Press Service
WASHINGTON, Dec. 14, 2012 – The Joint Improvised Explosive Device Defeat Organization has made progress against IEDs, "but it isn’t enough," Army Lt. Gen. Michael D. Barbero told the Senate Foreign Relations Committee yesterday.
In Afghanistan, much of the fertilizer used in explosives comes from Pakistan, and Barbero, who directs JIEDDO, said he understands the importance of working with Pakistani officials.
"The U.S., led by the State Department, continues to seek a relationship with Pakistan that is constructive and advances both U.S. and Pakistani interests," the general told the Senate panel yesterday.
The importance of countering the threat posed by IEDs and of attacking threat networks cannot be overstated, Barbero said.
"Counter-IED is an area ripe for cooperation between the United States and Pakistan and I am also encouraged by the recent positive tone in our discussions with the government of Pakistan and the assurances from our Pakistani counterparts," he said.
But Barbero emphasized that Pakistan must do more. More than 60 percent of U.S. combat casualties in Afghanistan, both killed and wounded in action, are caused by IEDs. This year IEDs killed or wounded almost 1,900 Americans. Pakistanis have also suffered from these devices.
"It is in their interest to increase counter-IED cooperation with us and take effective actions against these networks," Barbero said.
Afghanistan has banned ammonium nitrate-based fertilizers. Yet these remain the main explosive used in IEDs. "Today more than 85 percent of the IEDs employed against coalition forces are homemade explosives," Barbero said. "And of those, about 70 percent are made with ammonium nitrate derived from the fertilizer calcium ammonium nitrate, referred to as CAN, a common agriculture fertilizer produced in and transited through Pakistan."
While the fertilizer is produced elsewhere, Pakistan is almost exclusively the source of the chemical compound used in IEDs, he said. Another chemical compound, potassium chlorate, is used in Pakistan’s textile and matchstick industries, and is also being used to make IEDs in Afghanistan.
"In concert with our Pakistani partners, we must address the continued flow of ammonium nitrate-based fertilizers and other IED materials into Afghanistan," the general told senators.
Coalition and Afghan forces seized 30 tons of fertilizer in 2009, compared to 440 tons so far in 2012. "The high number of IED incidents and the growing seizure rates highlight the continued lack of effective measures to impede the supply of IED materials into Afghanistan from Pakistan," he said.
Barbero said he is working with the Pakistani fertilizer producer to counter the illicit use of the product as an explosive. The general said he is also working with U.S. and international fertilizer organizations to put controls in place on fertilizers.
"While international and U.S. professional fertilizer associations are receptive and actively addressing these issues, the producers within Pakistan have been less than cooperative," he said. "Despite making minor packaging, tracking and marketing changes, they have not implemented any effective product security or stewardship efforts."
The Pakistani producers can and must do more, Barbero said.
"While the government of Pakistan has taken military actions to address the IED threat and go after these networks, these efforts remain focused on Pakistan’s domestic threat and have had no measurable effect on the number of IED events in Afghanistan, on the flow of precursor materials smuggled across the border, or on the threat of networks operating in Pakistan who attack our troops in Afghanistan," the general said.
He emphasized that the U.S.-Pakistan dialogue has been improving, but more still must be done.
"We must move from discussing cooperation to actual cooperation," Barbero said, noting Pakistan has passed legislation, but has done little to implement the laws.
Military cooperation also remains stalled, Barbero told committee members.
"We must move beyond talking about cooperation to developing a comprehensive framework and then work together to address the shared problems," he said.
U.S. JOINT CHIEFS CHAIRMAN WARNS OF SEQUESTRATION CONSEQUENCES
FROM: U.S. DEPARTMENT OF DEFENSEDempsey Warns of Sequestration's Potential Impact
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service
MANAMA, Bahrain, Dec. 14, 2012 - The potential impact of sequestration, if it happens, could significantly degrade the Defense Department's overall readiness for years to come, the chairman of the Joint Chiefs said here yesterday.
Army Gen. Martin E. Dempsey was responding to a sailor's question on the possible effects of the massive budget cuts that could take effect in January, while speaking to an audience from U.S. Naval Forces Central Command, U.S. Fifth Fleet.
Sequestration is a mechanism built into the Budget Control Act which would trigger across-the-board cuts in federal spending -- including an additional $500 billion cut in defense -- if Congress and the president cannot agree on a plan to reduce the federal deficit before Jan. 2, 2013.
"It'll be a significant degradation," Dempsey said. "How does it translate to you? Stretched out maintenance periods, less flying hours before deployment, less training, potentially some interruptions of PCS movements or schools."
The Defense Department has spread the word that allowing sequestration to occur would be "a really bad idea," Dempsey said.
"It will have an effect, and I think it'll be an effect felt for two or three years," the general said. "There are some who think we can just let it happen, and then sweep it up over the next six months."
The chairman explained how he and Defense Secretary Leon E. Panetta requested military manpower be exempt from the additional proposed budget reductions.
"We went to [President Obama] and asked him to use his authority to exempt manpower," Dempsey said. "If we hadn't done that, in an almost inconceivable way, we would have had to cut the endstrength by 8 percent as part of the package."
The president approved the exemption, he said, but the "bad news is it puts a bigger burden on the other accounts," which include operations, maintenance, training and infrastructure.
"So those will now be impacted at about a 10 percent blow across the board," Dempsey said. "What does this mean to your particular community? I can't say for sure because the CNO -- chief of naval operations -- is the one who has to figure that out."
However, operations won't be impacted by sequestration if it occurs, the chairman said.
"So now I just told you we've exempted two places. Now when I say operations, I mean deployed operations," he said.
The Joint Strike Fighter is among defense projects that would be disrupted by sequestration, Dempsey said, adding that
civilian DOD employees would likely also feel the impact.
"There could be some civilian employees placed on unpaid furloughs," the chairman said. "So it's really serious."
U.S.-CANADA VISA AND IMMIGRATION INFORMAITON-SHARING AGREEMENT
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| Peggys Point Lighthouse in Peggys Cove, Nova Scotia is a very popular tourist site operated by the Canadian Coast Guard. The lighthouse, the second one on this site, was built in 1914 and is 15 m (50 ft) tall. Credit: CIA World Factbook. |
FROM: U.S. STATE DEPARTMENT
Media Note
Office of the Spokesperson
Washington, DC
December 14, 2012
U.S. Ambassador to Canada David Jacobson and the Canadian Minister of Citizenship, Immigration and Multiculturalism Jason Kenney signed a U.S.-Canada Visa and Immigration Information-Sharing Agreement on December 13, 2012.
This agreement will enable Canada and the United States to share information from third country nationals who apply for a visa or permit to travel to either country. This will better protect the safety and security of Americans and Canadians and facilitate legitimate travel and business. Increased information sharing will support better decision-making by both countries to confirm applicants’ identities, and identify risks and inadmissible persons at the earliest opportunity. It will increase safety and security, as both countries work to identify terrorists, violent criminals, and others who pose a risk before they reach our borders. All officers working on immigration and refugee protection will be equipped with more information to make decisions. This will better protect the safety and security of Americans and Canadians alike and further facilitate legitimate travel.
The agreement authorizes development of arrangements under which the United States may send an automated request for data to Canada, such as when a third country national applies to the United States for a visa or claims asylum. Such a request would contain limited information, such as name and date of birth in the case of biographic sharing, or an anonymous fingerprint in the case of biometric sharing. If the identity matches that of a previous application, immigration information may be shared, such as whether the person has previously been refused a visa or removed from the other country. The same process would apply in reverse when a third country national applies to Canada for a visa or claims asylum. Biographic immigration information sharing is set to begin in 2013, and biometric sharing in 2014.
Under the agreement, information will not be shared regarding U.S. or Canadian citizens or permanent residents. Any information shared on travellers and asylum seekers will be handled responsibly and, as with other information sharing agreements, exchanged in accordance with relevant U.S. and Canadian laws.
RECENT U.S. NAVY PHOTOS
FROM: U.S. NAVY
121207-N-QP351-021 SAN DIEGO (DEC. 07, 2012) The amphibious assault ship USS Boxer (LHD 4) returns returns to San Diego Bay. (U.S. Navy photo by Mass Communication Specialist 3rd Class J. Michael Schwartz/Released)
121206-N-ZQ794-050 VIRGINIA BEACH, Va. (Dec. 6, 2012) Sailors assigned to Explosive Ordinance Disposal Group (EODGRU) 2 fast rope from an MH-60S Sea Hawk helicopter from Helicopter Sea Combat Squadron (HSC) 28 during a demonstration for World Wrestling Entertainment (WWE) superstars and divas. WWE athletes visited EODGRU 2 as part of the 10th annual WWE "Tribute to the Troops" in Hampton Roads. (U.S. Navy photo by Mass Communication Specialist 3rd Class Kay Savarese/Released)
SECRETARY OF EDUCATION ARNE DUNCAN STATEMENT ON CONNECTICUT SCHOOL SHOOTINGS
FROM: U.S. DEPARTMENT OF EDUCATION
Statement from U.S. Secretary of Education Arne Duncan on the Newtown, Connecticut, School Shootings December 14, 2012"School shootings are always incomprehensible and horrific tragedies. But words fail to describe today's heartbreaking and savage attack at Sandy Hook Elementary School. As the father of two children in elementary school, I can barely imagine the anguish and losses suffered today by the Newtown community.
"Our hearts and prayers go out to every parent, child, teacher, staff member, and administrator at Sandy Hook and the surrounding community. And our thanks go out to every teacher, staff member, and first responder who cared for, comforted, and protected children from harm, often at risk to themselves. We will do everything in our power to assist and support the healing and recovery of Newtown."
Friday, December 14, 2012
JOINT CHIEFS CHAIRMAN ADDRESSES SAILORS' CONCERNS
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| Army Gen. Martin E. Dempsey, center, chairman of the Joint Chiefs of Staff, thanks sailors, their families and Defense Department civilians from U.S. Naval Forces Central Command, U.S. Fifth Fleet, during a stop on his annual holiday USO tour in Manama, Bahrain, Dec. 13, 2012. DOD photo by U.S. Army Sgt. 1st Class Tyrone C. Marshall Jr. |
FROM: U.S. DEPARTMENT OF DEFENSE
Chairman Addresses Deployed Sailors' Concerns
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service
MANAMA, Bahrain, Dec. 14, 2012 - Members of U.S. Naval Forces Central Command, U.S. Fifth Fleet, had the opportunity to voice their concerns during a meeting with the chairman of the Joint Chiefs of Staff and his senior enlisted advisor here yesterday.
Army Gen. Martin E. Dempsey, joined by Marine Corps Sgt. Maj. Bryan B. Battaglia, met sailors, families and Defense Department civilians, and provided them an opportunity to ask questions of their senior leaders during a meet and greet on his annual holiday United Service Organizations tour in the region.
"You're doing an incredible job," Dempsey told the group. "We are really in 21-year conflict that started in this region in 1991 with Operation Desert Shield/Desert Storm.
"We were deeply engaged in trying to keep stability in this part of the world," the chairman continued. "And then, of course, along came 9/11, and many of the threats that created that challenge for our country emanated out of here."
The chairman told service members assembled around him that they represent "the latest generation of young men and women who have answered the call, as your country has asked, to come and serve here. And you're really, really making us proud."
Today there are "any number of challenges facing our nation," Dempsey said, citing rising powers as well as the possibility of available technology and weaponry falling in to the hands of nonstate groups, making them "more dangerous than they really should be to us."
"And then there's also our financial situation, which we share with many countries in the rest of the world," he added.
The United States, however, will weather through today's period of uneasiness, Dempsey said, as it has done before.
"We figure stuff out, even when we appear a little uncertain or unsettled," the chairman said. "We will, at the end of the day, do what's right, and get it right 100 percent of the time."
The chairman said the current generation of military leaders serving the nation at home, in Afghanistan, and elsewhere around the globe makes him confident of the future.
As long as leaders remain committed to the mission, to their own development as individuals, and to their families, Dempsey said, "I think we're going to be fine."
The chairman also rebuked the notion that the U.S. military is in decline.
"It is not in decline and it will never be in decline," Dempsey said. "We won't let it be in decline. It might get bigger some years and smaller in others; we might stretch part of the force more one time than another -- it always seems to level out over time.
"But like I said, we will figure it out -- I promise you that," he continued. "So during this holiday season let me just tell you, 'Thanks.' And I wish you everything that could possibly come your way."
Dempsey added, "However you chose to worship, I wish you all of the blessings that come, because you, more than anyone in our country, has earned those blessings. And I promise you, we will not forget that as we do our part of the fight back in Washington, D.C."
Following his remarks, the chairman fielded questions from the audience on topics such as the future of the Defense of Marriage Act, a federal law which currently defines marriage as the legal union between a man and a woman.
"The Supreme Court did agree to take it up sometime between now and June," Dempsey said. "[And] yes, we do have plans in place ... if the law is repealed. We will put in place methods to ensure same-sex partners have the same benefits, if they're married, as a heterosexual couple will."
However, he did note that the Defense Department is "bound by law" until the act is "repealed or overturned" by the Supreme Court.
On a question about future operations in Afghanistan, Dempsey said after the next two years, "the president has made clear, our war in Afghanistan will be over." However, he added, "we'll be there in more modest numbers to support [Afghan security forces]."
Dempsey also addressed concerns about a change in the current military retirement system, and assured the audience that he, and Defense Secretary Leon E. Panetta, will keep faith with "anybody already in the system."
The 18th chairman concluded his visit by serenading the crowd with a rendition of "Christmas in Killarney," then wished everyone a "Merry Christmas."
ISS UPDATE: A BRIEF HISTORY OF FOOD (IN SPACE)
FROM: NASA
ISS Update: Nutrition Manager Talks About Children's Book "Space Nutrition"
NASA Public Affairs Officer Brandi Dean interviews Scott Smith, Manager of Nutritional Biochemistry at Johnson Space Center, about the children’s book he co-authored called "Space Nutrition." The book talks about the history of space flight, the various space programs and of course space food.
ISS Update: Nutrition Manager Talks About Children's Book "Space Nutrition"
NASA Public Affairs Officer Brandi Dean interviews Scott Smith, Manager of Nutritional Biochemistry at Johnson Space Center, about the children’s book he co-authored called "Space Nutrition." The book talks about the history of space flight, the various space programs and of course space food.
ACCOUNTANT INDICTED FOR ALLEGEDLY STEALING MONEY THAT WAS TO GO TO THE IRS
FROM: U.S. DEPARTMENT OF JUSTICEThursday, December 13, 2012
Florida Accountant Indicted for Stealing Client Money Intended for IRS
An indictment was unsealed today in Fort Pierce, Fla., charging Joseph Rizzuti with one count of corruptly endeavoring to obstruct the Internal Revenue Service (IRS) and four counts of wire fraud, the Justice Department and the IRS announced. The indictment was returned by a grand jury on Nov. 29, 2012.
According to the indictment, Rizzuti, the owner of Beacon Accounting Services in Palm City, Fla., interfered with the IRS’s ability to collect taxes owed by two clients, stole payments from those clients intended for the IRS, and made misrepresentations to those clients and to the IRS. Rizzuti allegedly stole approximately $265,000 from one client and approximately $23,500 from another client, money that the clients gave him to pay to the IRS.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Rizzuti faces a maximum potential sentence of 20 years in prison for each of the four wire fraud counts and a maximum potential sentence of 3 years for the obstruction count. He is also subject to fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation and Treasury Inspector General for Tax Administration. Trial Attorneys Justin Gelfand and Rebecca Perlmutter of the Justice Department’s Tax Division are prosecuting the case.
RECENT U.S. MARINE CORPS PHOTOS
Afghan National Police watch as their commander engages insurgents during an Afghan-led security patrol in Farah province, Afghanistan, Dec. 7, 2012. U.S. Marine Corps photo by Sgt. Pete Thibodeau
FOUR FUTURE WORLDS
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| Photo: Gold Buddha In Burma. Credit: CIA World Factbook. |
FROM: U.S. DEPARTMENT OF DEFENSE
Intelligence Council Poses Four Worlds of the Future
By Jim Garamone
American Forces Press Service
WASHINGTON, Dec. 13, 2012 - Prediction is an inexact science.
The 1939 New York World's Fair was billed as a look at tomorrow, and nations built pavilions and presented their latest inventions along with how they believed they would change the world.
One large part of the Fair itself was called "Futurama" -- a scale model of what planners believed would be America in 1960. The model had futuristic homes, urban complexes, bridges, dams and an advanced highway system which envisioned speeds of 100 mph.
The visionaries of 1939 did not anticipate suburbs, satellites, an oil embargo, nuclear energy or apparently where all those 100 mph cars were going to park.
The National Intelligence Council, which supports the Director of National Intelligence by providing long-term strategic analysis, has learned from instances like this and presents a range of options in its publication World Trends 2030.
The council posits four possible worlds in 2030: stalled engines, fusion, gini out-of-the-bottle and nonstate world.
"Gini" refers to the gini coefficient, which is a statistical measurement of income inequality.
The stalled engine world predicts a planet where the risk of interstate conflict rises due to a new great game in Asia. This scenario is a bleak one. "Drivers behind such an outcome would be a U.S. and Europe that turn inward, no longer interested in sustaining their global leadership," the report says. This scenario envisions the Euro Zone unraveling, causing Europe's economy to tumble.
The stalled engine world also sees the U.S. energy revolution failing to materialize -- despite current trends that suggest the U.S. will be a future energy exporter.
This scenario is most likely to lead to conflict between nations over scarce resources, but this scenario does not necessarily envision major conflagrations. Economic interdependence and globalization would be mitigating factors.
The fusion scenario represents the other end of the spectrum.
"This is a world in which the specter of a spreading conflict in South Asia triggers efforts by the U.S., Europe and China to intervene and impose a ceasefire," the report says. "China, the U.S. and Europe find other issues to collaborate on, leading to a major positive change in their bilateral relations, and more broadly leading to worldwide cooperation to deal with global challenges."
This scenario sees China adopting political reforms and Chinese leaders managing growing nationalism. Fusion sees more multinational organizations.
"In this scenario, all boats rise substantially," the report says. Developing economies rise, but so do those in developed countries. Under fusion, the American dream remains a reality with the council seeing U.S. incomes rising by $10,000 over a decade.
"Technological innovation -- rooted in expanded exchanges and joint international efforts -- is critical to the world staying ahead of the rising financial and resource constraints that would accompany a rapid boost in prosperity," the report says.
The genie out-of-the-bottle scenario is a world of extremes, but somewhere between the stalled engine and fusion scenarios. This scenario sees winners and losers in the global commons; a core group of the European Union remaining while others -- those not doing well economically -- fall away.
In the "gini" scenario the United States remains the preeminent power but it doesn't play global policeman. Energy producing nations see prices fall while they fail to diversify their economies. "Cities in China's coastal zone continue to thrive, but inequalities increase and split the [Communist] Party," the report says.
Global growth continues, but it is uneven. More countries fail in part because of the failure of international organizations.
"In sum, the world is reasonably wealthy, but it is less secure as the dark side of globalization poses an increasing challenge in domestic and international politics," the report says.
The final scenario -- the nonstate world -- sees nonstate actors taking the lead in confronting global challenges. Nonstate actors include nongovernmental organizations, multinational businesses, academic individuals, wealthy individuals and cities.
"The nation state does not disappear, but countries increasingly organize and orchestrate 'hybrid' coalitions of state and nonstate actors which shift depending on the issue," the report says.
This is a complex and diverse world that favors democracies. "Smaller, more agile countries in which the elites are also more integrated are apt to do better than larger countries that lack social or political cohesion," the report says.
By its nature, the nonstate world would be uneven and would carry its own dangers. Some global problems would be solved because the networks would coalesce to solve them but others would not. Security threats would increase because not all nonstate actors are benign. Access to lethal and disruptive technologies could expand, "enabling individuals and small groups to perpetuate violence and disruption on a large scale," according to the report.
The four worlds suggested in the report could happen or something altogether different may occur also. The report notes that unplanned, unforeseen events can change all of this.
The example of the New York World's Fair extends here too. While the Fair opened in 1939, it reopened in 1940. Two nations that sponsored buildings in 1939 -- Czechoslovakia and Poland -- had ceased to exist when the Fair returned in 1940.
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