NEWS FROM AFGHANISTAN FOR DECEMBER 17, 2012

Afgahnistan Operations.  Credit:  U.S. Marine Corps

NEWS FROM AFGHANISTAN FOR DECEMBER 17, 2012

FROM: U.S. DEPARTMENT OF DEFENSE

ISAF Commander Condemns Kabul Explosion, Offers Condolences
Compiled from International Security Assistance Force Joint Command News Releases

WASHINGTON, Dec. 17, 2012 - The commander of the International Security Assistance Force and U.S. forces in Afghanistan strongly condemned today's explosion in Kabul, which reportedly killed at least one Afghan civilian and injured more than a dozen others, military officials said.

"Like many of the insurgents' attacks, this morning's explosion in Kabul served only to kill and injure innocent Afghan civilians," Marine Corps Gen. John R. Allen said in a statement. "I condemn this act, and all indiscriminate insurgent attacks that harm Afghan civilians.

"I offer condolences to the family and friends of those killed and injured in Kabul this morning," Allen continued. "I also extend my continued thanks and admiration to the Afghan National Security Forces, who immediately secured the scene and rendered assistance to the innocent civilians harmed in this attack. The ISAF community of nations stands with these brave protectors of the Afghan people."

In Afghanistan operations today:

-- An Afghan and coalition security force arrested a Taliban leader in the Nad 'Ali district of Afghanistan's Helmand province today, military officials reported.

The arrested Taliban leader had emplaced improvised explosive devices and coordinated attacks against Afghan and coalition forces throughout the Nad 'Ali district, officials said.

The security force also detained one other suspected insurgent.

In other Afghanistan operations today:

-- A combined force arrested two insurgents during a search for a Haqqani leader in the Pul-e 'Alam district of Logar province. The sought-after insurgent leader coordinates and plans attacks against Afghan and coalition forces.

-- In the Jaghatu district of Wardak province, a combined force arrested two insurgents and seized several weapons during a search for Taliban suicide attack planners. The planners are believed to have been preparing for an attack against Afghan and coalition forces.

-- A combined force arrested a Haqqani leader, detained four other suspects and seized several weapons and ammunition in the Sabari district of Khost province. The arrested Haqqani leader conducted rocket-propelled grenade attacks against Afghan and coalition troops. He also acquired and transferred grenade launchers, rockets and other weapons for Haqqani insurgents operating in the district.

Yesterday, a combined force arrested a Taliban facilitator in the Jalalabad district of Nangarhar province. The facilitator had provided direct support to the insurgents who conducted the Dec. 2 attack on Jalalabad Airfield.

In a Dec. 15 operation, an Afghan-led, coalition-supported force arrested a Taliban leader and detained two other suspects in the Kandahar district of Kandahar province. The Taliban leader supplied insurgents with weapons and ammunition, coordinated attacks and oversaw the transfer of homemade explosives and IED-making materials.

And on Dec. 14, a combined force discovered an IED cache in the Washir district of Helmand province. The cache contained seven IEDs, weapons and IED-making materials. All the items found in the cache were destroyed.

GERMAN COMPANY CHARGED BY SEC WITH FOREIGN CORRUPT PRACTICES VIOLATIONS

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., Dec. 17, 2012 — The Securities and Exchange Commission today charged Germany-based insurance and asset management company Allianz SE with violating the books and records and internal controls provisions of the Foreign Corrupt Practices Act (FCPA) for improper payments to government officials in Indonesia during a seven-year period.

The SEC’s investigation uncovered 295 insurance contracts on large government projects that were obtained or retained by improper payments of $650,626 by Allianz’s subsidiary in Indonesia to employees of state-owned entities. Allianz made more than $5.3 million in profits as a result of the improper payments.

Allianz, which is headquartered in Munich, agreed to pay more than $12.3 million to settle the SEC’s charges.

"Allianz’s subsidiary created an 'off-the-books' account that served as a slush fund for bribe payments to foreign officials to win insurance contracts worth several million dollars," said Kara Brockmeyer, Chief of the SEC Enforcement Division’s FCPA Unit.

According to the SEC’s order instituting settled administrative proceedings against Allianz, the misconduct occurred from 2001 to 2008 while the company’s shares and bonds were registered with the SEC and traded on the New York Stock Exchange. Two complaints brought the misconduct to Allianz’s attention. The first complaint submitted in 2005 reported unsupported payments to agents, and a subsequent audit of accounting records at Allianz’s subsidiary in Indonesia uncovered that managers were using "special purpose accounts" to make illegal payments to government officials in order to secure business in Indonesia. The misconduct continued in spite of that audit.

According to the SEC’s order, the second complaint was made to Allianz’s external auditor in 2009. Allianz failed to properly account for certain payments in their books and records. The improper payments were disguised in invoices as an "overriding commission" for an agent that was not associated with the government insurance contract. In other instances, the improper payments were structured as an overpayment by the government insurance contract holder, who was later "reimbursed" for the overpayment. Excess funds were then paid to foreign officials who were responsible for procuring the government insurance contracts. Allianz lacked sufficient internal controls to detect and prevent the wrongful payments and improper accounting.

The SEC’s order found that Allianz violated the books and records and internal controls provisions of the FCPA, specifically Sections 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934. Without admitting or denying the findings, Allianz agreed to cease and desist from further violations and pay disgorgement of $5,315,649, prejudgment interest of $1,765,125, and a penalty of $5,315,649 for a total of $12,396,423.

The SEC’s investigation was conducted by Irene Gutierrez, Jennifer Baskin and Tracy L. Price of the FCPA Unit.

President Obama Speaks at Newtown High School | The White House

President Obama Speaks at Newtown High School | The White House

REPORTED SYRIAN AIRSTRIKE ON PALESTINIAN REFUGEES CAUSES U.S. CONCERNS



Map:  Syria.  Credit:  CIA

FROM: U.S. STATE DEPARTMENT

Airstrike Killing Palestinian Refugees in Yarmouk, Syria
Press Statement
Victoria Nuland
Department Spokesperson, Office of the Spokesperson
Washington, DC
December 17, 2012
　

The United States is deeply concerned by reports that dozens of civilians, including women and children, were killed or wounded in Yarmouk, an area of Damascus home to 150,000 Palestinian refugees, as a result of aerial bombardment and fighting between Syrian government forces and armed opposition on December 16. These latest attacks mark a significant and alarming escalation of the conflict in Syria. All parties must stop unlawful attacks on civilians and comply with international law. Those who are responsible for atrocities against the civilian population must be held accountable. We express our deepest condolences to the families of those who have lost their lives in Yarmouk.

In addition to the suffering endured by the Syrian people, the United States is concerned about the situation of the more than 500,000 Palestinian refugees in Syria who are also increasingly suffering from the escalating violence. The Government of Syria should allow all humanitarian actors full and unfettered access in order to protect and assist the victims of the conflict.

The U.S. Government remains the largest bilateral financial supporter of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), including its emergency operations in Syria. UNRWA is providing cash and food assistance to the more than 350,000 Palestinians in Syria who have been directly affected by the conflict, as well as sheltering displaced Syrians and other civilians in its schools and other facilities. Vulnerable refugees in Syria are also receiving emergency health care, water, sanitation, and educational support through partners with U.S. Government funding.

THIRD CARRIBEAN-U.S. SECURITY COOPERATION DIALOGUE

110616-N-XD935-040 BRIDGETOWN, Barbados (June 16, 2011) Divers dive onto a 22-ton engine block off the coast of Barbados. Mobile Diving and Salvage Unit (MDSU) 2 is participating in Navy Diver-Southern Partnership Station, a multinational partnership engagement designed to increase interoperability and partner nation capacity through diving operations. (U.S. Navy photo by Mass Communication Specialist 1st Class Jayme Pastoric/Released)

FROM: U.S. DEPARTMENT OF STATE

Third Caribbean - United States Security Cooperation Dialogue
Media Note
Office of the Spokesperson
Washington, DC
December 13, 2012

Following is the text of a joint statement issued by Antigua and Barbuda; the Commonwealth of the Bahamas; Barbados; the Commonwealth of Dominica; the Dominican Republic; Grenada; the Co-operative Republic of Guyana; the Republic of Haiti; Jamaica; the Federation of Saint Kitts and Nevis; Saint Lucia; Saint Vincent and the Grenadines; the Republic of Suriname; the Republic of Trinidad and Tobago; and the United States of America at the Caribbean Security Dialogue in the Port of Spain, Trinidad and Tobago, December 5, 2012.

Begin text:

We, the Governments of Antigua and Barbuda; the Commonwealth of the Bahamas; Barbados; the Commonwealth of Dominica; the Dominican Republic; Grenada; the Co-operative Republic of Guyana; the Republic of Haiti; Jamaica; the Federation of Saint Kitts and Nevis; Saint Lucia; Saint Vincent and the Grenadines; the Republic of Suriname; the Republic of Trinidad and Tobago; and the United States of America (US);

REAFFIRMING our commitment to the Caribbean Basin Security Initiative (CBSI) Partnership launched on 27 May, 2010, at the Inaugural Caribbean-US Security Cooperation Dialogue in Washington, D.C.;

REAFFIRMING also our keen interest in advancing our commitments stated in the Caribbean-United States Declaration of Principles ; the Caribbean-United States Plan of Action on Security Cooperation ; the Joint Caribbean-United States Framework for Security Cooperation Engagement and the Joint Statement of the Second Caribbean-US Security Cooperation Dialogue held in the Bahamas in 2011;

RECOMMITTING to the priorities of substantially reducing illicit trafficking, advancing public safety and security and further promoting social justice as outlined in the Caribbean-United States Declaration of Principles;

RECOGNIZING the work done by the Commission and the Technical Working Groups over the past year as outlined in the Joint Implementation Report;

COMMENDING the leadership shown by Caribbean states in formulating and implementing policies to promote security, and encouraging continuation of efforts through regional integration mechanisms and national contributions of adequate financing based on timely fiscal and budgetary policy decisions;

UNDERSCORING the value of international partner support and the need to maximize the effectiveness and sustainability of that support in order to reduce duplication of efforts and generate a more effective impact in advancing common security objectives in the Caribbean;

WELCOMING new international partners and expressing appreciation to the Government of Canada's initiative to organize donors and implementers in the security partnership framework in the Caribbean;

ACKNOWLEDGING the requirement for enhanced regional cooperation and sustainability of our efforts over the long-term to effectively address security in the Caribbean;

DECLARE our intent to strengthen our cooperation in the period 2012-2013 in the following ways:
Strengthening our institutions and partnerships by: • Recognizing the Caribbean Community (CARICOM) Implementation Agency for Crime and Security (IMPACS) as the primary entity for the coordination of all regional security programs and projects among the CARICOM States and with the Dominican Republic;
• Providing resources to CARICOM IMPACS;
• Recognizing the institutions and mechanisms of the Dominican Republic focused on enhancing security and implementation with CARICOM States and IMPACS;
• Requesting that international partners coordinate with IMPACS to provide effective political, technical and financial support;
• Implementing a mechanism for the dissemination of information on CBSI and regional efforts to enhance security in the Caribbean through a virtual site for official use and a website for public use;
• Ensuring the monitoring and evaluation of program implementation for effective results;
• Identifying national focal points for the internal dissemination and coordination of information with respect to the CBSI within and among countries and with the CBSI Secretariat;
• Ensuring full representation of Member States at CBSI meetings, including Technical Working Group meetings;
• Inviting other nations, regional and international organizations and private sector institutions to partner with us, as appropriate, in advancing security throughout the Caribbean;
• Addressing corruption in the public sector so as to build public trust and confidence in national institutions.
2. Substantially reducing illicit trafficking by:
• Developing a common maritime and airspace strategy, as well as standard operating procedures or other measures including, as appropriate, those provided in the CARICOM Maritime and Airspace Security Cooperation Agreement, and the Caribbean Regional Maritime Agreement
that allow for the coordination of maritime interdiction efforts between and among Caribbean countries, to include regional security institutions such as the Regional Security System (RSS) and the security institutions of the Dominican Republic;
• Continuing progress on a counter illict trafficking strategy for the Caribbean;
• Adopting the programs, initiatives, guidelines and Action Plan of the Hemispheric Drug Strategy of the Inter American Drug Abuse Control Commission (CICAD) and the United Nations Office on Drugs and Crime (UNODC);
• Enhancing mechanisms for training and counter narcotics coordination and operations among our nations, in particular, by supporting the Technical Assistance Field Team Program (TAFT);
• Considering all necessary agreements and arrangements to facilitate the operation of the Cooperative Sensor and Information Integration (CSII) Programme;
• Developing a common action plan among the Caribbean States and international partners to comprehensively address firearms trafficking;
• Establishing dedicated units for firearms trafficking, where appropriate, to ensure a focus on identifying illegal sources and methods;
• Fully investigating the origin of all seized firearms through tracing and ballistics analysis;
• Implementing regionally, programmes to counter the illicit trafficking in firearms, in particular, the Regional Integrated Ballistic Information Network;
• Establishing national firearms commissions that work effectively, regionally and with international partners;
• Considering policy and legislative reforms, as appropriate, and in accordance with national laws, to implement information sharing mechanisms on a region-wide basis, including the sharing of –
• radar and sensor data for the purpose of detecting, monitoring and interdicting illicit activities in the Caribbean
• ballistic forensic data,
• biometric data.
3. Advancing Public Safety and Security by:

• Enacting judicial reforms and continuing to build judicial capacity to ensure that criminals are brought to justice;
• Fully implementing the Automated Fingerprint Identification System (AFIS) to facilitate the exchange of data among all Caribbean countries, subject to domestic laws;
• Developing regional polygraph capabilities across the region;
• Developing a sustainable and complementary sub-regional and regional defence, maritime and security training capacity in the Caribbean that utilizes existing national and regional training facilities and facilitates harmonization of security measures;
• Enacting and streamlining legislative authorities in the Caribbean that allow for the seizure of assets used in illicit activity and, in turn, making these assets available for law enforcement and crime prevention initiatives;
• Developing national cybersecurity strategies and enacting, where applicable, cybercrime legislation.
4. Further Promoting Social Justice by:
• Instituting Youth Workforce Development programmes in Caribbean nations to focus on life skills training, technical and vocational training based on market needs, and private sector assistance with internships and job placements;
• Increasing economic and skills development opportunites for youth and other vulnerable populations;
• Continuing to pursue policy reforms at the national and regional levels to expand productive opportunities for youth in areas such as education, employment, entrepreneurship, volunteerism sports and culture;
• Supporting improvements in basic education, including the monitoring of school management and performance, developing public/private partnerships and improving literacy and numeracy for primary school students and young adults;
• Cooperating with regional and international organizations, non-governmental organizations, private sector, community service agencies, religious instititutions and the media in the design, implementation, monitoring and evaluation of effective crime prevention programs;
• Establishing a regional repository of best practices in the areas of crime prevention and social justice to facilitate networking, policy development and program development;
• Developing a regional juvenile justice policy and harmonised legislation that promotes community intervention and alternatives to sentencing and incarceration, including modernization of diversion, detention, and rehabilitation processes;
• Establishing and strengthening drug prevention programs for the reduction in the supply and demand of illicit drugs to youth and vulnerable populations.


Map:  Trinadad And Tobago.  Credit:  CIA World Factbook.

WE THANK
the Government and people of the Republic of Trinidad and Tobago for their hospitality and efforts in hosting the Third High Level Dialogue of the CBSI.

WE LOOK FORWARD to the Fourth High Level Security Cooperation Dialogue to be held in December in 2013.

WE STRESS our commitment to maintain regular dialogue to meet the common challenges we face in advancing the security and prosperity of our people.

ARMY COOKS IN JAPAN EXERCISE



Army Spc. Tieka Jones, a military food service specialist and reservist from Las Vegas with the 35th Combat Sustainment Support Battalion, makes final preparations for the dinner meal as part of the bilateral Yama Sakura 63 training exercise at Camp Sendai, Japan. U.S. Army photo by Sgt. William Jones

FROM: U.S. DEPARTMENT OF DEFENSE
Face of Defense: Army Cooks Excel in Japan Bilateral Exercise
By Army Sgt. William Jones
118th Mobile Public Affairs Detachment

CAMP SENDAI, Dec. 12, 2012 - Army reservists Spc. Tieka Jones, 311th Sustainment Command (Expeditionary), and Spc. Jasmine Gomez, 693rd Quartermaster Co., employed their culinary skills during a recent overseas duty training assignment here.

The two soldiers and other troops who deployed with the 35th Combat Sustainment Support Battalion added a lot of the special touches during the Yama Sukara 63 training exercise held here that made "chow" a little closer to what mom used to make.

Yama Sakura is a bilateral training exercise held twice a year with members of the Japanese Ground Self Defense Force and the U.S. military. Yama Sakura began 30 years ago. It is designed to enhance the combat readiness and interoperability between the two nations. American and Japanese service members exchange ideas, tactics, techniques and military experiences during the exercise, now in its 31st iteration.

When the 35th CSSB deployed to Japan to participate in this year's Yama Sakura exercise, they did so with only a moderate-sized contingent of active-duty cooks and the rest of the team came from the reserve components. The part-time soldiers serving on active duty in support of the exercise quickly proved their worth as they prepared two hot meals each day for 800 men and women participating in the exercise.

The food service soldiers worked long hours performing their duties with excellence, officials said. Jones and Gomez made a point to make eye contact and greet each person as they went through the food line. Gomez was frequently seen lugging several heavy insulated food containers from the mobile kitchen trailer to the serving line several times during each meal.

The reservists' outstanding contributions were noticed by Army Col. Nora Marcos, Deputy Chief of Staff and chief information officer for U.S. Army Japan, who recognized the soldiers during a recent staff meeting.

"Jones and Gomez have really worked hard while they were here at Camp Sendai and they both have a great attitude," said Army Staff Sgt. Daniel Kessler, the dining facility manager. "Jones always has a smile and people have commented on that to me and you cannot outwork Gomez."

A real holiday season

A real holiday season

COGNITIVE SIMULATION TOOL MAY HELP IMPROVE CULTUREAL INTERACTION

U.S. Military and Provincial Troops in Afghanistan.  Credit:  U.S. Navy.

FROM: U.S. DEPARTMENT OF DEFENSE,  'ARMED WITH SCIENCE'

by jtozer

Top Tech-Cognitive Simulation Tool

Top Technology is an Armed with Science series that highlights the latest and greatest federal laboratory inventions which are available for transfer to business partners.
Naval Research Laboratory has patented an artificial intelligence and cognitive modeling technology designed to better understand what can happen in culturally diverse circumstances. It’s called the Cognitive Simulation Tool, and it could very well change the way we interact with people from different cultures.

So what is it?

The techno-babble for the
Cognitive Simulation Tool is that NRL has patented this technology so it applies to a learning algorithm grounded in social science to model interactions of agents/actors from different groups or cultures. The tool embedding this technology uses agent-based simulation of preference-driven agents endowed with cognitive maps representing their causal beliefs.

What does that mean?

That means that this is simulation technology that allows us to get a better understanding of what can happen when two very different groups have to interact with each other. Agents can modify their cognitive maps through social learning, and a user can seed the simulation with diverse belief structures and activate the simulation to predict coalitions/conflicts and shifts of allegiance.

Basically, it’s a what-if social scenario simulator (say that ten times fast).

What does it do?

I don’t think I need to tell you that the balance of social interaction can be a delicate one.

When it comes to speaking or working with foreign nationals, being able to respect them and possibly encourage cooperation to a mutual benefit can be influential, and in some cases necessary. This technology is designed to measure the impact of a foreign presence on a society before systems collide. It can predict coalitions, population attitudes in response to exogenous events, and even visualize group information.

How can this help the warfighter?

Service members typically spend a lot of time interacting with different people from different social, economic and religious backgrounds. Having a better understanding of how to approach people is as valuable as having situational awareness. Indeed, it’s a viable element of SA. This tool could provide service members with the skills they need to interact with diverse groups effectively and positively, while also teaching them how to be more effective at certain forms of communication.

Also it includes a video gaming system, so that’s bound to be fun.

My take?

I think everyone could benefit from a little social interaction training. If people could plan ahead on how to interact with others I think the world would be a less awkward place.

Imagine how different first dates would be if you’d already ruled out all those cheesy one-liners and unfunny jokes. Or an interview simulator that allowed you to figure out if your self-depreciating humor would fall flat or not. Now I’m not saying this Cognitive Simulation Tool is capable of that – it’s certainly not going to fix all the awkward conversations in the world – but it can help service members to cross certain cultural barriers in times where it could really be important to do so.

Like on a deployment. Or establishing new multi-cultural collaborations. Or ordering food in a foreign country.

Now, this is something that falls under the heading of education and homeland security, but really I think it would help our warfighters to become better, more effective ambassadors to these other countries. Part of our mission is to be able to connect to people from other countries. It’s intuitive that we ought to prepare our troops for any and all circumstances they might encounter.

Having adequate training that prepares warfighters for any real-world scenario is important.

Having a social interaction simulator is, in my opinion, a long time coming.

My take on this is make it so, NRL. And besides, you know I’m a fan of anything that brings us that much closer to a holodeck.

MAN SENTENCED TO PRISON FOR PART IN FORECLOSURE RESUCE SCAM

FROM: U.S. DEPARTMENT OF JUSTICE

Las Vegas Man Sentenced to 37 Months in Prison for Foreclosure Rescue Scam and Theft of Government Funds

WASHINGTON – A Las Vegas man was sentenced today to 37 months in prison for operating a foreclosure rescue scam that defrauded distressed homeowners who were struggling to pay their mortgages, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.

Alex P. Soria, 65, was sentenced today by U.S. District Judge Lloyd D. George in the District of Nevada. In addition to his prison term, Soria was sentenced to serve three years of supervised release and ordered to pay $320,266 in restitution.

In August 2012, Soria pleaded guilty to one count of wire fraud in connection with his scheme to defraud distressed homeowners and one count of theft of government funds for defrauding the Social Security Disability Insurance benefits program.

According to court documents, Soria identified homeowners whose mortgage debt exceeded the value of their homes and charged them a fee purportedly to reduce the principal balance of their mortgages using money from the Department of the Treasury’s Troubled Asset Relief Program (TARP). Soria admitted in court that he lied to homeowners about his affiliation with several mortgage lenders and that he provided victims with fraudulent letters stating they had been approved for loans. Soria also admitted he falsely told victims that his loan program had been successful in the past and charged homeowners for loan modifications he knew he could not deliver. Court documents show that Soria concealed from homeowners the fact that the state of Nevada had issued a cease and desist order which legally prohibited him from working in the mortgage industry. Soria collected over $100,000 in fees from distressed homeowners, many of whom lost their homes to foreclosure after Soria failed to deliver the loan modifications he promised.

As part of the same case, Soria also admitted to stealing government funds by continuing to collect Social Security Disability Insurance benefits while at the same time receiving income from his foreclosure relief operation. The Social Security Disability Insurance program is a federal program that replaces the wages of individuals who become unable to work due to a disability. Soria admitted to collecting over $200,000 in disability benefits from 1990 to 2010 while at the same time receiving income that he concealed from the Social Security Administration.

This case is being prosecuted by Trial Attorneys Brian R. Young and Mary Ann McCarthy of the Criminal Division’s Fraud Section. The U.S. Attorney’s Office for the District of Nevada assisted with the investigation and prosecution. The case was investigated by the Offices of Inspector General for the Department of Housing and Urban Development and the Social Security Administration.

This prosecution is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

CONTRACTOR PLEADS GUILTY IN FRAUDULENT POLICE VEHICLE SALE TO IRAQ

FROM: U.S. DEPARTMENT OF JUSTICE

Monday, December 10, 2012

British Contractor Agrees to Plead Guilty to Wire Fraud Conspiracy Related to Iraq Reconstruction Efforts

WASHINGTON – British contractor APTx Vehicle Systems Limited agreed today to plead guilty to conspiracy to defraud the United States, the Coalition Provisional Authority that governed Iraq from April 2003 to June 2004, the government of Iraq and JP Morgan Chase Bank. A civil settlement agreement resolving a related action filed under the False Claims Act was also announced today.

APTx was charged with one count of wire fraud conspiracy in a criminal information filed today in U.S. District Court in Massachusetts. As part of the plea agreement filed with the information, APTx agreed to pay a criminal fine of $1 million.

The charges and resolutions were announced today by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, Principal Deputy Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division and U.S. Attorney for the District of Massachusetts Carmen M. Ortiz.

According to the criminal information, APTx engaged in a fraudulent scheme involving an August 2004 contract valued at over $8.4 million for the procurement of 51 vehicles for the Iraqi Police Authority. The contract was initially awarded to a different, "prime" contractor, which in turn subcontracted the procurement to APTx for over $5.7 million. Payment under the contract was by letters of credit issued by JP Morgan Bank.

The criminal information further charges that in May and June 2005, APTx submitted shipping documents to JP Morgan to draw down on the letters of credit, which falsely and fraudulently asserted that all 51 vehicles were produced and ready to ship to Iraq. In fact, as APTx knew, none of the vehicles had been built, none of the vehicles were legally owned or held by APTx and none of the vehicles were in the process of transport to Iraq. The fraudulent shipping documents also listed a company as the freight carrier that APTx knew was not a shipping company and named a fictitious company as the freight forwarder.

In a related civil settlement agreement, APTx, along with Alchemie Grp Ltd., a United Kingdom corporation, and Haslen Back, the director and shareholder of Alchemie, agreed to pay $2 million to the United States to resolve claims originated by Ian Rycroft, an individual retained by the prime contractor to oversee transportation of the vehicles, under the qui tam, or whistleblower, provisions of the False Claims Act in the District of Massachusetts. The False Claims Act authorizes private whistleblowers to bring suit for false claims submitted to the United States and to share in any recovery. Rycroft’s estate will receive $540,000 as its share of the settlement amount.

Benjamin Kafka, a representative for APTx in the United States, was charged on April 13, 2009, with one count of misprision of a felony in connection with his role in the wire fraud conspiracy. According to court documents, Kafka allegedly allowed APTx to use his corporate name and identity as the freight carrier and freight forwarder on the fraudulent shipping documents presented to JP Morgan.

The criminal case is being prosecuted by Director of Procurement Fraud Catherine Votaw and Trial Attorney William H. Bowne III of the Criminal Division’s Fraud Section, and by Assistant U.S. Attorneys Eugenia M. Carris and Jeffrey Cohen of the District of Massachusetts. The civil case is being handled by Trial Attorney Diana Younts of the Civil Division, and by Assistant U.S. Attorney Christine Wichers of the District of Massachusetts. The investigation was conducted by the Special Inspector General for Iraq Reconstruction, the Defense Criminal Investigative Service Boston Resident Agency and U.S. Immigration and Customs Enforcement Homeland Security Investigations in Washington, D.C.

FEMA SAYS HURRICANE SANDY DEBRIS REMOVAL "ON TRACK"

Far Rockaway, N.Y., Dec. 12, 2012 -- The U.S. Army Corps of Engineers is removing debris from Far Rockaway, Long Island beaches boardwalk. Using a fleet of front-end loaders, crawler excavators and dump trucks, the Army Corps is working block by block to clear debris and make way for new sand. Replenishing the beach falls under the New York Department of Parks and Recreation authority. Eliud Echevarria/FEMA

FROM: FEDERAL EMERGENCY MANAGEMENT AGENCY
Debris Removal on Track
Release date:
December 16, 2012

NEW YORK – The partnership between New York State, New York City, other municipalities, the Army Corps of Engineers and the Federal Emergency Management Agency has made significant progress in removing the massive amounts of debris left by Hurricane Sandy. To date, along with private contractors, they have removed in excess of four million cubic yards of debris from New York City’s five boroughs and Nassau, Rockland, Suffolk, and Westchester counties.

FEMA’s Public Assistance program has approved more than $17 million to reimburse Nassau County for 75 percent of the costs of overtime for 270 employees and the rental of heavy duty wood chippers to reduce the volume of the debris. Approved this week is a $2.2 million reimbursement to supplement the $15 million approved for the county in November. More Public Assistance funding is anticipated to offset county costs for debris removal and disposal.

Strong winds and heavy rains from Hurricane Sandy brought down trees, tree limbs and power lines throughout the New York area. Collecting and clearing out piles of debris has been one of the most difficult and time-consuming challenges of the recovery. But despite this, the debris piles are disappearing.

After collection, debris is trucked to staging areas where it is inspected, separated into categories and disposed of in the safest manner possible. To reduce the amount of material going into landfills, the Army Corps of Engineers, in cooperation with the New York City’s Sanitation Department, is looking at alternate ways of using the vegetative debris (wood, tree branches, leaves and other organic matter) that will be of benefit to the communities.

FEMA’s Public Assistance program reimburses state and local governments and certain private nonprofit organizations 75 percent of eligible debris removal costs. The remaining 25 percent is provided by non-federal funds. The state forwards the federal funds to the eligible local governments or organizations that incurred costs.

For debris removal to be eligible, the damage must be direct result of Hurricane Sandy, and the work must be necessary to:
Eliminate an immediate threat to lives, public health and safety,
Eliminate immediate threats of significant damage to improved public and private property when the measures are cost effective, or
Ensure the economic recovery of the affected community to the benefit of the community-at-large.

NEW TECH DEVELOPING TO PROTECT SOLDIERS FROM CHEMICAL AND BIOLOGICAL THREATS

 

Dr. Calvin Chue, a research biologist with the U.S. Army Research, Development and Engineering Command, is focused on the next generation of devices to protect Soldiers and civilians against unknown chemical or biological threats. Photo by Tom Faulkner RDECOM PAO

FROM:  U.S. DEPARTMENT OF DEFENSE 'ARMED WITH SCIENCE'
Written on December 7, 2012 at 7:09 am by jtozer
Army Biologist Developiing NetGen Tools for Soldiers

U.S. Army scientists are developing new technologies, including smartphones that detect and identify chemical and biological agents, to empower soldiers.


Dr. Calvin Chue, a research biologist with the U.S. Army Research Develoopment and Engineering Command, or RDECOM, is focused on the next generation of devices to protect soldiers and civilians against unknown chemical or biological threats.

"The biggest threat is always going to be the emerging pathogen, the things you hear about on the news where pools of disease pop up randomly," Chue said.
"We have soldiers deployed around the world. Being able to develop tools and technologies to pick up those unknown hazards before [soldiers] are exposed to them is a large measure of what we do."
"I’ve chosen to come to the government side because we’re able to make the most practical impact in developing tools that directly meet the needs of soldiers. The other nice thing about here at government labs is having direct interaction with warfighters. We can build tools that they tell us they need," he said.

DETECTING HAZARDS WITH A SMARTPHONE

ECBC’s BioSciences Division is conducting research on sensors embedded with smartphones to identify unknown or suspicious samples, Chue said.

"We’re trying to develop new kinds of sensors that a soldier could use to amplify their knowledge in the field," Chue said. "For example, a soldier might go to a new area and plant 30 or 40 different chemical and biological sensor devices.
"They would be tied back to a smartphone or tablet that is providing the user interface display. That is a new modality, and it expands the soldier’s senses."
In addition to on-site diagnostics in the field, the smartphone could send results to a command post or a laboratory for further analysis. The work on chem-bio sensors at ECBC will be integrated with the communications and electronics research community within the Army, Chue said. He anticipates a practical application for soldier use within five to six years.

Chue said another benefit of the smartphone sensors will be to unburden soldiers by reducing the size and weight of detectors they already have access to.

"If [soldiers] have a weight limitation, they have to choose what they’re not carrying. By going with the small, distributed sensors, we’re hoping to give them the power without the limitations," he said. "They will be able to deploy a chemical sensor at a distance or a biological detector that perhaps will be based on odorant detection or sampling the air for nucleic acids.

"All of that information comes back to a phone or platform that has been deployed with them. It gives them integration and power that they would not have otherwise."

FUSING BIOLOGY, ENGINEERING

Another key initiative within the BioSciences Division is fusing the disciplines of biology and engineering.

Chue described a partnership between ECBC, Specific Technologies of Mountain View, Calif., and the Defense Science Technology Laboratory in Great Britain to replace the sense of smell by using paper.

"A paper-based modality is where you get a color change in the presence of certain kinds of odorants. That’s a fusing of the biology with engineering and chemistry to create a simple, easy-to-use product that doesn’t require any special equipment," he said.

ECBC is also developing processes to test grown human organs using new three-dimensional printer technology with the Wake Forest University for Regenerative Medicine, Harvard University Medical School, Morgan State University and The Johns Hopkins University, Chue said. Instead of printing ink, the printer places layer upon layer of cells to build on organ.

The artificial organs could help scientists understand how the body responds to chemical and biological agents.

"This may allow us to grow new kinds of sensors. We would like to grow an immune organ that could respond to chemical and biological insults," he said. "It’s probably at least several decades before it has a practical application. It’s the kind of long-term science that we’re making an investment in because it will benefit the service member in the end."

FOUNDATION FOR FUTURE MILITARY SCIENTISTS

Chue said many life-science researchers do not understand the contributions they could make to soldiers and the public while working in a military laboratory. He is trying to reverse those misconceptions.

"It was fortuitous to begin my career with the U.S. military and it has been a great place to work to be able to continue that," he said. "It’s most important to be at the scientific forefront for our soldiers to know what risks they may be exposed to and protect them from that as best we can.

"We hope to inspire a new generation of scientists and engineers to choose a career working for a government or military laboratory. It’s rare that people in the life sciences think about working for the military. We’re doing a wide variety of things to not just benefit the soldier, but also the American public."

By Mr. Dan Lafontaine (RDECOM)

U.S. Department of Defense Armed with Science Update

U.S. Department of Defense Armed with Science Update

VIDEO: NASA'S GROUND SYSTEMS DEVELOPMENT AND OPERATIONS PROGRAM

FROM: NASA
GSDO: Exploration Begins Here

NASA's Ground Systems Development and Operations Program is developing the technologies and innovations to launch the next generation of rockets and spacecraft.

CHAIRMAN OF THE U.S. HOUSE WAYS AND MEANS COMMITTEE'S VIEWS ON THE FISCAL CLIFF, HIGHER TAXES, AND FIXING SOCIAL SECURITY

FROM: CONGRESSMAN DAVE CAMP'S WEBSITE
Camp Statement on the Fiscal Cliff

Monday, December 10, 2012

Midland, MI – Today, Congressman Dave Camp (R-MI) released the following statement in response to President Obama’s event in Redford, MI.

"Today the President restated his same old demand to raise taxes on nearly 1 million small businesses. The time for campaign events is over, Michigan families and small businesses are at risk. Raising taxes will not create jobs. Tax reform, however, will create jobs here in Michigan and across America and produce more revenues – something the President demands. I urge the President to abandon his push for higher tax rates that threatens middle-class jobs. Comprehensive tax reform, which is supported by Republicans and Democrats in Congress, can help solve both the fiscal and jobs crisis we face in this country."

Social Security

Social Security must be protected for all Americans, especially those who are retired or near retirement age. The Social Security Trust Fund, however, faces significant financial challenges in the coming years. Without Congressional action, retirees could see reduced benefits as soon as 25 years from now.

The biggest strain on the Social Security Trust Fund is the simple fact that individuals live much longer lives today than in 1935, and the program has never truly been updated to keep pace with America’s demographic changes. Successfully fixing Social Security means that Americans who retire in 2035 will not be faced with a system that was built for the world of 1935, but a system that has been modernized to meet the realities of the 21st Century.

While adjustments to the system must be made sooner rather than later to ensure the Social Security Trust Fund remains solvent, I believe any reforms must assure Americans they will get back from Social Security what they have paid into the system over their lifetime. I also believe that the current system should remain in place for those at or near retirement age, who would not have time to plan for any changes.

While Congress faces difficult choices in order to improve Social Security’s long term financial outlook, I know this mission can be accomplished in a way that strengthens this vital government program.

KEYNOTE REMARKS AT EUROPEAN UNION'S HUMAN RIGHTS DAY EVENT

Sun Rise From Space.  Credit:  ISS/NASA/Ron Garan.

FROM: U.S. DEPARTMENT OF STATE

Under Secretary Otero's Keynote Remarks at the European Union's Human Rights Day Event
Remarks
Daniel Baer
Deputy Assistant Secretary, Bureau of Democracy, Human Rights, and Labor
EU Mission To The United States
Washington, DC
December 11, 2012

Thank you, Mr. Ambassador, for that kind introduction. It is a special honor to be with you the day after the European Union was awarded the 2012 Peace Prize. My warm congratulations to you.

And thank you also to the embassies that are cohosting today’s event—Cyprus, Finland, and Lithuania—as well as the embassies of the Czech Republic, Sweden and the UK which have supported this event as well.

I am very sorry that Maria Otero could not be here. As you’ve heard, there was a death in her family overnight, and certainly my thoughts are with her. Those of you who know her know that she brings wisdom, grace and warmth to all that she does, and so I am glad that she can be with her family, as I’m sure she is a comfort to them.

Maria and I have traveled together and worked on many issues together over the last three and a half years—so it’s an honor to be her understudy today, and I thank the mission for inviting me to deliver her remarks in her stead.

Today’s meeting fits well with the EU’s legacy of working for peace and justice. And I am pleased you have organized such a distinguished panel to address the issue of human rights, a key pillar of U.S. foreign policy.

Yesterday was International Human Rights Day, when we celebrate the adoption of the Universal Declaration of Human Rights. In adopting the Declaration, governments around the world recognized that human beings are, by virtue of their birth, endowed with certain inalienable rights. And these rights serve as "the foundation of freedom, justice and peace in the world."

Today, we continue to look to the Universal Declaration not just as a reminder of our values, but as a guide for action. As Secretary of State Clinton said last week in Dublin, "it is a time-tested blueprint for successful societies."

The theme of today’s event – "Supporting Freedom of Expression, Freedom of Association, and Political Participation" – is particularly appropriate. For we recognize that human rights are not just about freedom from violence, torture, unlawful detention, discrimination, and oppression. Human rights also include the fundamental freedoms to speak, associate, assemble, and follow one’s faith.

The European Union and the United States have been strong partners in promoting these basic rights that are so important to securing other rights. We are bound together by a common history and shared values, within which these fundamental freedoms play a key role.

Today, I’d like to highlight a few areas where the EU and the United States are working together to promote and strengthen human rights around the world.

First, we both work to ensure that the freedoms of expression, association, and political participation enhance citizen involvement in the democratic electoral process. As Secretary Clinton has said on numerous occasions, a vibrant civil society in which citizens and activists engage in vigorous public debate is one of the fundaments of free, democratic nations. Such public deliberation helps keep citizens informed, exposes them to a variety of opinions, values and interests, and induces them to refine their own views and defend them with good reasons.

And democratic elections, in turn, help to protect fundamental freedoms and to promote good governance, by enabling citizens to hold their leaders accountable. Thus, the mutually reinforcing feedback loop between civil society and democratic institutions creates a virtuous circle of vibrant democracy.

Second, we work together to protect freedom of expression, enshrined in Article 19 of the Universal Declaration of Human Rights, as well as a number of other international instruments. Of course, protecting the right of expression does not mean endorsing everything that people say. There are billions of people on earth; some of them will say terrible, hurtful things. They may offend our religious feelings or defame groups we belong to. Rather than banning such speech, the rest of us should use our own freedom of expression to challenge, condemn, and reject hateful or offensive speech.

Working with youth from many European Union countries over the past few years, we have shown that it is possible to stop bigotry and promote respect across lines of culture, religion, tradition, class, disability, and gender. The 2012 Hours Against Hate campaign uses social media to invite youth throughout Europe and around the world to volunteer their time with someone who does not look like them, live like them, or pray like them. The success of the campaign is evident through the more than 20,000 volunteer hours pledged globally. People from faith groups, NGOs, international organizations, universities, businesses, governments, and other individuals in Europe and around the world have joined the campaign.

Third, we share the same objectives in the fight against anti-Semitism, anti-Muslim sentiment, and discrimination against religious and ethnic minorities, LGBT individuals, and persons with disabilities. The EU continues to play the leading role in combating all forms of discrimination across the European continent. We applaud the EU’s Framework for National Roma Integration Strategies as an important step in protecting the rights of the members of the Romani minority, and we encourage the EU to press forward in its commitments to promote the social and economic inclusion of members of all marginalized groups.

We also applaud the EU Council’s adoption in June of an "EU Strategic Framework on Human Rights and Democracy." And we look forward to continue working closely with newly appointed EU Special Representative Mr. Lambrinidis on the implementation of our human rights policy. (Incidentally we are already working together-- I was in Geneva last week for the first UN Forum on Business and Human Rights where Mr. Lambrinidis and Mike Posner both addressed the plenary session.)

Fourth, as Secretary of State Clinton noted in a recent speech in Washington, we will cooperate with the EU to promote democracy and human rights in those parts of Europe that are not yet where they need to be. The Secretary reiterated this message in Dublin last week when she met with embattled civil society organizations from across Europe on the sidelines of the OSCE ministerial meetings.

Beyond Europe, we applaud some of the newest members of the EU for using their recent experiences with democratization to support democratic aspirations in Eurasia, the Middle East, and North Africa.

And we look to our European allies to help improve security and build new relationships in Asia. As Secretary Clinton said, "our pivot to Asia is not a pivot away from Europe. On the contrary, we want Europe to engage more in Asia along with us, to see the region not only as a market, but as a focus of common strategic engagement."

And as a good example, European governments, including Germany, UK, Switzerland, the Czech Republic, and Poland, have joined the call for Chinese authorities to address the worsening human rights conditions in Tibetan areas.

The United States is deeply concerned and saddened by the continuing violence in Tibetan areas of China and the increasing frequency of self-immolations by Tibetans.

Chinese authorities have responded to these tragic incidents with measures that tighten already strict controls on the freedoms of religion, expression, assembly and association of Tibetans. Official rhetoric that denigrates the Tibetan language, the Dalai Lama, and those that have self-immolated has further exacerbated tensions.

The United States government has consistently urged the Chinese government to address policies in Tibetan areas that have created tensions. These policies include increasingly severe government controls on Tibetan Buddhist religious practice and monastic institutions; education practices that undermine the preservation of Tibetan language; intensive surveillance, arbitrary detentions and disappearances of Tibetans, including youth and Tibetan intellectual and cultural leaders; escalating restrictions on news, media and communications; and the use of force against Tibetans seeking peacefully to exercise their universal human rights.

Ladies and gentlemen, in conclusion, we celebrate Human Rights Day every December. But advancing freedom and human rights is our daily work, as the Secretary noted in Dublin, and we must continue the hard work of "making human rights a human reality." We continue to press for the fundamental rights and freedoms of all people, and we will stand with citizens, activists, and governments around the world that do the same, as we strive for a world in which each human being lives freely and with dignity. Thank you.

FEMA INFRASTRUCTURE REPAIRS CONTINUE AFTER HURRICANE SANDY

FROM: FEDERAL EMERGENCY MANAGEMENT AGENCY
Rockaway Beach, N.Y., Dec. 11, 2012 -- Emergency generators sit abandoned after being submerged in the Hurricane Sandy water surge. FEMA public assistance will often help finance generators to public entities and for public infrastructure. Ed Edahl-FEMA

Rockway Beach, N.Y., Dec. 11, 2012 -- Contractors run new telephone cables to replace equipment ruined by Hurricane Sandy. Contractors are routinely hired to facilitate a more rapid recovery. Ed Edah-FEMA

GEN. DEMPSEY DISCUSSES STRATEGIC REBALANCE

 

FROM: U.S. DEPARTMENT OF DEFENSE

Dempsey Discusses North Korea, U.S. Strategic Rebalance
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

WASHINGTON, Dec. 15, 2012 – The decision by North Korea to conduct another missile launch is unfortunate and counterproductive to stability in the region, the chairman of the Joint Chiefs of Staff said today.

Army Gen. Martin E. Dempsey took a moment during his travel on his annual USO holiday tour for a one-on-one interview with American Forces Press Service to discuss North Korea's recent actions and the U.S. strategic rebalance to the Asia-Pacific.

"My thoughts are that the North Koreans continue to be a force of instability in a region while we're working diligently to increase stability," Dempsey said.

"So their decision to do that [missile launch] was very unwise, very unfortunate and I think the international community increasingly sees them for what they are -- which is a force of instability during a time when they ought to be looking for opportunities to contribute to regional stability," he said.

The chairman also discussed the progress made in the U.S. strategic rebalance to the Asia-Pacific region.

"Last year, we talked about our strategic interests, globally, and how they would change over time," Dempsey said. "But that's an important point -- over time. This wasn't a light switch."

"And so, as we thought about that rebalancing of our interests, kind of horizontally, this year we're looking at the impact of that vertically," he said.

The chairman explained the three-part, vertical aspect of the rebalancing, "which is to say how much of our force structure is forward, how much is rotational and how much is retained in the homeland to provide surge capability for security issues that we may not anticipate."

Asked of the "gains" seen in this strategic pivot, Dempsey described what he perceives as a gain, although he said he doesn't necessarily view the rebalancing in terms of "losses and gains."

"When you use the term 'gains,' I would say the single biggest gain is we've got this, I think, pretty coherent vision of how our security will be shaped between now and [the year] 2020," he said. "[This is] the first step and that's a significant step."

Over the course of the next three or four years, "we've got to put into place a system, processes, resources [and the] intellectual energy to deliver," Dempsey said.

THE "SCAREWARE" INFECTION CRIME

Credit:  U.S. GSA

FROM: U.S. DEPARTMENT OF JUSTICE

Friday, December 14, 2012
Payment Processor for Scareware Cybercrime Ring Sentenced to 48 Months in Prison

WASHINGTON – A Swedish credit card payment processor was sentenced today to 48 months in prison for his role in an international cybercrime ring that netted $71 million by infecting victims’ computers with "scareware" and selling rogue antivirus software that was supposed to secure victims’ computers but was, in fact, useless, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Western District of Washington Jenny A. Durkan and Special Agent in Charge Laura M. Laughlin of the FBI Seattle Division.

Mikael Patrick Sallnert, 37, a citizen of Sweden, was sentenced by Chief U.S. District Judge Marsha J. Pechman in the Western District of Washington. In addition to his prison term, Sallnert was ordered to pay $650,000 in forfeiture.

"Mikael Patrick Sallnert played an instrumental role in carrying out a massive cybercrime ring that victimized approximately 960,000 innocent victims," said Assistant Attorney General Breuer. "By facilitating payment processing, Sallnert allowed the cybercrime ring to collect millions of dollars from victims who were duped into believing their computers were compromised and could be fixed by the bogus software created by Sallnert’s co-conspirators. Cybercrime poses a real threat to American consumers and businesses, and the Justice Department is committed to pursuing cybercriminals across the globe."

"Payment processors like this defendant are the backbone of the cybercrime underworld," said U.S. Attorney Durkan. "As an established businessman, this defendant put a stamp of legitimacy on cyber criminals. He was involved in defrauding thousands of victims, and his actions contributed to insecurities in e-commerce that stifle the development of legitimate enterprises and increase the costs of e-commerce for everyone."

"Partnerships are central to the FBI in accomplishing its mission," said Special Agent in Charge Laughlin. "This cyber crime ring spanned multiple countries—increasing the threat it posed and complicating the necessary law enforcement response. Thanks to the commitment of many foreign partners and FBI entities across the nation, we were able to dismantle that threat and ensure Mr. Sallnert faced justice. The FBI and its partners will continue to work tirelessly until we bring in the remaining perpetrators of this malicious scheme."

Sallnert was arrested in Denmark on Jan. 19, 2012, and extradited to the United States in March 2012. He pleaded guilty on Aug. 17, 2012, to one count of conspiracy to commit wire fraud and one count of accessing a protected computer in furtherance of fraud.

The prosecution of Sallnert is part of Operation Trident Tribunal, an ongoing, coordinated enforcement action targeting international cybercrime. The operation targeted international cybercrime rings that caused more than $71 million in total losses to more than one million computer users through the sale of fraudulent computer security software known as "scareware." Scareware is malicious software that poses as legitimate computer security software and purports to detect a variety of threats on the affected computer that do not actually exist. Users are then informed they must purchase what they are told is anti-virus software in order to repair their computers. The users are then barraged with aggressive and disruptive notifications until they supply their credit card number and pay for the "anti-virus" product, which is, in fact, fake.

The scareware scheme used a variety of ruses to trick consumers into unknowingly infecting their computers with the malicious scareware products, including web pages featuring fake computer scans. Once the scareware was downloaded, victims were notified that their computers were infected with a range of malicious software, such as viruses and Trojans and badgered into purchasing the fake antivirus software to resolve the non-existent problem at a cost of up to $129. An estimated 960,000 users were victimized by this scareware scheme, leading to $71 million in actual losses.

According to Sallnert’s plea agreement, he agreed to establish and operate credit card payment processing services for the scareware ring, knowing that his co-conspirators were intentionally causing fake and fraudulent messages to display on victims’ computers that would fraudulently induce the victims into purchasing the rogue security software. According to court documents, between approximately August 2008 and October 2009, the payment processing mechanisms established by Sallnert processed approximately $5 million in credit card payments on behalf of the scheme.

This case is being investigated by the FBI Seattle Division Cyber Task Force and other FBI entities. The case is being prosecuted by Trial Attorneys Carol Sipperly and Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Norman Barbosa and Kathryn Warma of the Western District of Washington. Substantial assistance was provided by the Criminal Division’s Office of International Affairs.

Critical assistance in the prosecution was provided by the Security Service of Ukraine, German Federal Criminal Police, Netherlands National High-Tech Crime Unit, London Metropolitan Police, Latvian State Police, Lithuanian Criminal Police Bureau, Swedish National Police Cyber Unit, French Police Judiciare, Royal Canadian Mounted Police, Romania’s Directorate for Combating Organized Crime, Cyprus National Police in cooperation with the Unit for Combating Money Laundering and the Danish National Police.

To avoid falling victim to a scareware scheme, computer users should avoid purchasing computer security products that use unsolicited "free computer scans" to sell their products. It is also important for users to protect their computers by maintaining an updated operating system and using legitimate, up-to-date antivirus software, which can detect and remove fraudulent scareware products.

Additional tips on how to spot a scareware scam include:

• Scareware advertising is difficult to dismiss. Scareware purveyors employ aggressive techniques and badger users with pop-up messages into purchasing their products. These fake alerts are often difficult to close and quickly reappear.

• Fake anti-virus products are designed to appear legitimate and can use names such as Virus Shield, Antivirus or VirusRemover. Only install software from trusted sources that you seek out. Internet service providers often make name-brand anti-virus products available to their customers for free.

• Become familiar with the brand, look and functionality of the legitimate anti-virus software that is installed on your computer. This will assist you in identifying scareware.

Computer users who think they have been victimized by scareware should file a complaint with the FBI’s Internet Crime Complaint Center, www.ic3.gov.

EXPORT-IMPORT BANK LOANS $1 BILLION TO FINANCE MANUFACTRUING EQUIPMENT EXPORT TO GERMANY

Part of Schloss Cecilienhof where the Potsdam Conference - which established post-World War II order in Europe - took place in the summer of 1945.

FROM: U.S. EXPORT-IMPORT BANK

Ex-Im Approves $1 Billion Direct Loan to Finance Export
of U.S. Manufacturing Equipment to Germany


Washington, D.C. – In a decision that will support nearly 10,000 high-tech jobs, the Export-Import Bank of the United States (Ex-Im Bank) has approved a $1.03 billion loan to GLOBALFOUNDRIES to finance the export of American-made semiconductor manufacturing equipment to Germany.

The transaction, which is Ex-Im Bank’s third with GLOBALFOUNDRIES and its related entities, will support approximately 9,700 jobs, according to Bank estimates derived from Departments of Commerce and Labor data and methodology.


Four American exporters from California, Massachusetts, and Oregon will participate in the transaction.

Ex-Im Bank’s credit will support the expansion of the GLOBALFOUNDRIES Fab 1 silicon-wafer-fabrication facility in Dresden, Germany. The expansion will increase the company’s capacity to manufacture semiconductor products, which are critical components of personal computers, tablets, and smart phones.

"Our financing allows American manufacturers to capture a larger share of a growing market," said Ex-Im Bank Chairman and President Fred P. Hochberg. "The export sales will in turn support U.S. jobs and increase American competiveness in a vital industry."

Launched in March 2009 and based in Milpitas, Calif., GLOBALFOUNDRIES is the second largest dedicated semiconductor foundry in the world. Its global footprint is supported by major facilities for research, development, and design enablement. GLOBALFOUNDRIES is owned by the Advanced Technology Investment Company.

Applied Materials Inc., one of the exporters involved in the transaction, is a global leader in providing innovative equipment to enable the manufacture of advanced semiconductors. Headquartered in Santa Clara, Calif., Applied Materials has more than 7,000 employees in the U.S., located primarily at corporate, manufacturing, and research-and-development facilities in California, Massachusetts, Montana, and Texas.

"The ability of our customer GLOBALFOUNDRIES to access this financing benefits Applied Materials’ manufacturing and R&D in the United States, as well as our supply chain, at a time of tremendous global competition for high-tech jobs," said Mike Splinter, chairman and CEO of Applied Materials, Inc.

Atradius of the Netherlands is also lending to GLOBALFOUNDRIES as part of an export-credit-agency facility totaling $1.5 billion.