Monday, February 25, 2013
NEWS FROM AFGHANISTAN FOR FEBRUARY 25, 2013
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| Photo Credit: U.S. Navy. |
Combined Force Arrests Taliban Leader in Nangarhar Province
From an International Security Assistance Force Joint Command News Release
KABUL, Afghanistan, Feb. 25, 2013 - A combined coalition and Afghan security force arrested a senior Taliban leader in the Khugyani district of Afghanistan's Nangarhar province yesterday, military officials reported.
The Taliban leader is believed to be responsible for coordinating and directing insurgents and of having maintained direct operational control of suicide bombers prepared to carry out attacks against Afghan and coalition forces, officials said. The security force also arrested three other suspected insurgents.
In other Afghanistan operations yesterday:
-- In Kandahar province's Arghandab district, a combined force arrested a Taliban facilitator believed to be responsible for the acquisition and distribution of lethal aid for attacks against Afghan and coalition forces and to be heavily involved in the finances of an insurgent network in the district. The security force also arrested another suspected insurgent.
-- A combined force in Logar province's Pul-e Alam district arrested three insurgents during a search for a Taliban leader believed to be responsible for attacks against Afghan and coalition forces. He also has been linked to kidnapping Afghans for ransom and establishing illegal checkpoints, officials said.
-- In Ghazni province's Andar district, a combined force arrested a Taliban leader believed to be responsible for procuring and distributing automatic weapons and roadside bombs to insurgents and to have personally planned and executed attacks. The security force also arrested another suspected insurgent.
EXECUTIVES SETTLE COMPENSATION FRAUD CASE WITH SEC
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| Credit: U.S. Marshals Service |
Executives to be Permanently Enjoined, to Pay Civil Penalties and Disgorgement, and to Reimburse Company Pursuant to Section 304 of Sarbanes-Oxley; Former CEO/Chairman also to be Barred for Five Years from Serving as an Officer and Director of any Public Company
The Securities and Exchange Commission today settled civil fraud charges against Amnon Landan, the former Chairman and Chief Executive Officer of Mercury Interactive, LLC (Mercury), and Douglas Smith, a former Chief Financial Officer of Mercury, arising from an alleged scheme to backdate stock option grants and from other alleged misconduct.
On May 31, 2007, the Commission charged Landan, Smith, and two other former senior Mercury officers with perpetrating a fraudulent and deceptive scheme from 1997 to 2005 to award themselves and other Mercury employees undisclosed, secret compensation by backdating stock option grants and failing to record hundreds of millions of dollars of compensation expense. The Commission's complaint also alleges that during this period Landan and certain other executives backdated stock option exercises, made fraudulent disclosures concerning Mercury's "backlog" of sales revenues to manage its reported earnings, and structured fraudulent loans for option exercises by overseas employees to avoid recording expenses.
Without admitting or denying the allegations in the Commission's complaint, Landan consented to the entry of a final judgment permanently enjoining him from violating and/or aiding and abetting violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, as well as the financial reporting, record-keeping, internal controls, false statements to auditors, and proxy provisions of the federal securities laws. Landan also agreed to be barred from serving as an officer or director of any public company for five years. Landan will pay $1,252,822 in disgorgement and prejudgment interest, representing the "in-the-money" benefit from his exercise of backdated option grants, and a $1,000,000 civil penalty. Pursuant to Section 304 of the Sarbanes-Oxley Act, Landan will also reimburse Mercury, or the parent company that acquired it after the alleged misconduct (Hewlett-Packard Company), $5,064,678 for cash bonuses and profits from the sale of Mercury stock that he received in 2003. Under the terms of the settlement, Landan's Section 304 reimbursement would be deemed partially satisfied by his prior return to Mercury of $2,817,500 in vested options.
Without admitting or denying the allegations in the Commission's complaint, Smith consented to the entry of a final judgment permanently enjoining him from violating Section 17(a)(2) and (a)(3) of the Securities Act of 1933. He will disgorge $451,200, representing the "in-the-money" benefit from his exercise of backdated option grants, and pay a $100,000 civil penalty. Pursuant to Section 304 of the Sarbanes-Oxley Act, Smith will also reimburse Mercury or its parent company $2,814,687 for cash bonuses and profits from the sale of Mercury stock that he received in 2003. Under the terms of the settlement, all of Smith's disgorgement and all but $250,000 of his Section 304 reimbursement would be deemed satisfied by his prior repayment to Mercury of $451,200 and his foregoing of his right to exercise vested options with a value of $2,113,487.
The settlements are subject to the approval of the United States District Court for the Northern District of California.
The Commission previously filed settled charges in this matter against Mercury and three former outside directors of Mercury. On May 31, 2007, the Commission filed civil fraud charges against Mercury based on the stock option backdating scheme and other fraudulent conduct noted above. Mercury, which was acquired by Hewlett-Packard Company on Nov. 8, 2006, after the alleged misconduct, settled the matter by agreeing to pay a $28 million penalty and to be permanently enjoined. See Litigation Release No. 20136 (May 31, 2007). On September 17, 2008, the Commission filed settled charges against three former outside directors of Mercury alleging that they recklessly approved backdated stock option grants and reviewed and signed public filings that contained materially false and misleading disclosures about the company's stock option grants and company expenses. The outside directors settled the matter by consenting to permanent injunctions and the payment by each director of a $100,000 penalty. See Litigation Release No. 20724 (Sept. 17, 2008). Mercury and the outside directors settled the charges without admitting or denying the allegations in the Commission's complaint. The Commission also previously settled with one of the four senior officers its contested action. On March 20, 2009, the Commission settled with former Mercury CFO Sharlene Abrams by which she agreed to entry of a permanent injunction against the antifraud and certain other securities law provisions, to pay $2,287,914 in disgorgement which was deemed partially satisfied by payment to Mercury, to pay a $425,000 civil penalty, to be permanently barred from serving as an officer and director of any public company, and to a Commission order barring her from appearing or practicing before the Commission as an accountant. See Litigation Release No. 20964 (March 20, 2009). Abrams settled without admitting or denying the allegations in the Commission's complaint.
The Commission's litigation against one remaining Mercury officer, former general counsel Susan Skaer, is continuing.
CALIFORNIA COMPANIES CALLED ON TO GAIN EDGE IN GLOBAL ECONOMY WITH EXPORTS
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| Photo: Containerships In Suez Canel. Credit: Wikimedia Commons. |
FROM: U.S. EXPORT-IMPORT BANK
Ex-Im Bank Chairman, Congressman Schiff Call on California Companies to Export and Gain Competitive Edge in Global Economy
Forum focuses on how businesses can increase foreign sales, move state economy forward
Los Angeles, Calif. -- Today Export-Import Bank Chairman Fred P. Hochberg and Congressman Adam Schiff (CA-28) hosted an exporter forum for local small and medium-sized businesses in downtown Los Angeles. More than 100 representatives from local companies attended the event, which focused on how American companies can gain a competitive edge and grow their business when exporting their products overseas. Local small businesses also received one-on-one trade counseling from Export-Import Bank experts.
"I am pleased to be here today with Congressman Schiff to highlight the benefits of exporting," said Chairman Hochberg. "Exports create and sustain U.S. jobs, and Ex-Im Bank will continue to host forums across the country that encourage small and medium-sized businesses to take advantage of foreign sales opportunities. Los Angeles businesses have much to gain from such opportunities, and we are confident that today’s forum will provide them necessary tools to sell their great exports around the world."
"I was delighted to see so many business people gather to hear presentations on how to improve their exports," said Representative Schiff. "Expanding American exports is a key ingredient in improving our economy, growing jobs and competing in a global environment. I want to see America become a manufacturing and exporting powerhouse again, and I will be doing everything I can to help our local businesses grow and thrive."
During the forum, Chairman Hochberg gave an overview of Export-Import Bank's Global Access for Small-Business initiative, aimed at increasing the number of small businesses across the United States that export goods and services produced by U.S. workers. This is an integral part of the President’s National Export Initiative (NEI) to double U.S. exports by 2015.
In FY’12, Ex-Im Bank authorized more than $2.3 billion for California businesses, with more than 20% going to small businesses.
Global Access is supported by a wide variety of business, financial and government partners, including the U.S. Chamber of Commerce, the National Association of Manufacturers (NAM), and the Bank’s 60-plus city/state partners located throughout the U.S. Export-Import Bank has hosted more than 40 Global Access forums around the country.
COUNTIES IN ILL., AND KAN. TO BE MONITORED BY JUSTICE DEPARTRMENT DURING FEB. ELECTIONS
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, February 25, 2013
Justice Department to Monitor Elections in Illinois and Kansas
The Justice Department announced today that the Civil Rights Division will monitor elections on Feb. 26, 2013, in Cook County, Ill., and Seward County, Kan. The monitoring will ensure compliance with the Voting Rights Act of 1965 and other federal voting rights statutes. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group. In addition, the act requires certain covered jurisdictions to provide language assistance during the election process. Cook County is required to provide language assistance to its Hispanic, Chinese and Asian Indian voters, and Seward County is required to provide language assistance to its Hispanic voters.
Justice Department personnel will monitor polling place activities in Cook and Seward Counties. Civil Rights Division attorneys will coordinate federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys hundreds of federal observers from the Office of Personnel Management, as well as departmental staff, to monitor elections across the country.
HHS SAYS NEW HEALTH CARE LAW PROTECTS CONSUMERS
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| Credit: U.S. Army. |
Health care law protects consumers against worst insurance practices
Key health insurance protections for all Americans moves forward
The U.S. Department of Health and Human Services (HHS) today issued a final rule that implements five key consumer protections from the Affordable Care Act, and makes the health insurance market work better for individuals, families, and small businesses.
"Because of the Affordable Care Act, being denied affordable health coverage due to medical conditions will be a thing of the past for every American," said HHS Secretary Kathleen Sebelius. "Being sick will no longer keep you, your family, or your employees from being able to get affordable health coverage."
Under these reforms, all individuals and employers have the right to purchase health insurance coverage regardless of health status. In addition, insurers are prevented from charging discriminatory rates to individuals and small employers based on factors such as health status or gender, and young adults have additional affordable coverage options under catastrophic plans.
Today’s final rule implements five key provisions of the Affordable Care Act that are applicable to non-grandfathered health plans:
Nearly all health insurance companies offering coverage to individuals and employers will be required to sell health insurance policies to all consumers. No one can be denied health insurance because they have or had an illness.
Fair Health Insurance Premiums
Health insurance companies offering coverage to individuals and small employers will only be allowed to vary premiums based on age, tobacco use, family size, and geography. Basing premiums on other factors will be illegal. The factors that are no longer permitted in 2014 include health status, past insurance claims, gender, occupation, how long an individual has held a policy, or size of the small employer.
Guaranteed Renewability
Health insurance companies will no longer refuse to renew coverage because an individual or an employee has become sick. You may renew your coverage at your option.
Single Risk Pool
Health insurance companies will no longer be able to charge higher premiums to higher cost enrollees by moving them into separate risk pools. Insurers are required to maintain a single state-wide risk pool for the individual market and single state-wide risk pool for the small group market.
Catastrophic Plans
Young adults and people for whom coverage would otherwise be unaffordable will have access to a catastrophic plan in the individual market. Catastrophic plans generally will have lower premiums, protect against high out-of-pocket costs, and cover recommended preventive services without cost sharing.
In preparation for the market changes in 2014 and to streamline data collection for insurers and states, the final rule amends certain provisions of the rate review program. And, HHS has increased the transparency by directing insurance companies in every state to report on all rate increase requests. A new report has found that the law’s transparency provisions have already resulted in a decline in double-digit premium increases filed: from 75 percent in 2010 to, according to preliminary data, 14 percent in 2013.
In addition, today the U.S. Department of Labor announced an interim final rule in the Federal Register that provides protection to employees against retaliation by an employer for reporting alleged violations of Title I of the Act or for receiving a tax credit or cost-sharing reduction as a result of participating in a Health Insurance Exchange, or Marketplace.
VESTA: PROTOPLANET SIZED ASTEROID
FROM: NASA
Vesta Sizes Up
This composite image shows the comparative sizes of nine asteroids. Up until now, Lutetia, with a diameter of 81 miles (130 kilometers), was the largest asteroid visited by a spacecraft, which occurred during a flyby. Vesta dwarfs all other small bodies in this image.
Asteroid Vesta also is considered a protoplanet because it's a large body that almost became a planet and has a diameter of approximately 330 miles (530 kilometers). Image Credit: NASA/JPL-Caltech/JAXA/ESA
RECENT U.S. NAVY PHOTOS
FROM: U.S. NAVY
130221-N-ZZ999-005 SAN DIEGO (Feb. 21, 2013) The littoral combat ship USS Freedom (LCS 1) departs San Diego on its way to conduct sea trials following a month-long dry dock availability. Freedom, the lead ship of the Freedom variant of LCS, is expected to deploy to southeast Asia this spring. (U.S. Navy photo by Command Master Chief Chris Kotz/Released)
130219-N-OY799-098 U.S. 5TH FLEET AREA OF RESPONSIBILITY (Feb. 19, 2013) Sailors perform a foreign object debris walkdown on the flight deck of the aircraft carrier USS John C. Stennis (CVN 74) as the guided-missile cruiser USS Mobile Bay (CG 53) transits behind. John C. Stennis is deployed to the U.S. 5th Fleet area of responsibility conducting maritime security operations, theater security cooperation efforts and support missions for Operation Enduring Freedom. (U.S. Navy photo by Mass Communication Specialist 2nd Class Kenneth Abbate/Released)
Sunday, February 24, 2013
U.S. DEPARTMENT OF LABOR ANSWERS QUESTIONS ABOUT 21ST CENTURY MANUFACTURING JOBS IN AMERICA
FROM: U.S. DEPARTMENT OF LABOR
Take Three: Expanding Manufacturing
In his State of the Union address, President Obama outlined a plan to strengthen the middle class by making the United States a magnet for jobs and manufacturing. The Employment and Training Administration is charged with ensuring American workers are prepared for jobs of the future. Jane Oates, assistant secretary of labor for employment and training, answers three questions on what American manufacturing means for the country:
What does 21st century manufacturing in America look like? Manufacturing is changing from what it was a generation ago. It's becoming more high-tech in both the tools and the processes used to manufacture new products. There are more computers and an expanded use of robotics. Manufacturing workers today need to know how to operate this equipment, which will require them to develop a whole new set of skills and knowledge.
How will we train workers with the right skills for these manufacturing jobs? Employers are looking for workers with the skills to operate the high-tech equipment used in advanced manufacturing. To help upgrade the skills of existing workers and prepare new workers in this industry, the Labor Department is investing $2 billion to expand the capacity of community colleges to train students in new and in-demand skills, like automation, robotics, and information technology. We are also encouraging community colleges to partner with local businesses and the workforce system so students can earn industry-recognized credentials. We also try to bolster manufacturing careers through our H-1B technical skills training grants.
What else can we do to bring jobs here? As President Obama said in the State of the Union, one critical step is to remove the incentives businesses have to set up shop overseas. We can end tax breaks for companies that ship jobs abroad and reward companies that hire here at home. We can help communities use local labor market data to ensure they are preparing workers for high-demand jobs, so that trained workers are ready when companies bring operations back home. At the department, we are working with our interagency partners, such as the Commerce Department and the Small Business Administration, to assist in economic development and encourage smart investments that benefit businesses and the public.
Take Three: Expanding Manufacturing
In his State of the Union address, President Obama outlined a plan to strengthen the middle class by making the United States a magnet for jobs and manufacturing. The Employment and Training Administration is charged with ensuring American workers are prepared for jobs of the future. Jane Oates, assistant secretary of labor for employment and training, answers three questions on what American manufacturing means for the country:
What does 21st century manufacturing in America look like? Manufacturing is changing from what it was a generation ago. It's becoming more high-tech in both the tools and the processes used to manufacture new products. There are more computers and an expanded use of robotics. Manufacturing workers today need to know how to operate this equipment, which will require them to develop a whole new set of skills and knowledge.
How will we train workers with the right skills for these manufacturing jobs? Employers are looking for workers with the skills to operate the high-tech equipment used in advanced manufacturing. To help upgrade the skills of existing workers and prepare new workers in this industry, the Labor Department is investing $2 billion to expand the capacity of community colleges to train students in new and in-demand skills, like automation, robotics, and information technology. We are also encouraging community colleges to partner with local businesses and the workforce system so students can earn industry-recognized credentials. We also try to bolster manufacturing careers through our H-1B technical skills training grants.
What else can we do to bring jobs here? As President Obama said in the State of the Union, one critical step is to remove the incentives businesses have to set up shop overseas. We can end tax breaks for companies that ship jobs abroad and reward companies that hire here at home. We can help communities use local labor market data to ensure they are preparing workers for high-demand jobs, so that trained workers are ready when companies bring operations back home. At the department, we are working with our interagency partners, such as the Commerce Department and the Small Business Administration, to assist in economic development and encourage smart investments that benefit businesses and the public.
ESTONIA'S NATIONAL DAY
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| Map: Estonia. Credit: CIA World Factbook. |
Estonia's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
February 21, 2013
On behalf of President Obama and the people of the United States, I am delighted to congratulate the people of Estonia as you celebrate the 95th anniversary of your independence February 24.
The United States celebrates your independence and all that Estonians have contributed to the region and world. The United States is proud to have you as a committed NATO Ally and a close friend. The Estonian people, through innovative thinking and hard work, continue to demonstrate new approaches to technology that help you develop and sustain a vibrant, free-market democracy. Your leadership in cyber-security, e-governance, and technological innovation sets a global example, and has already benefited global citizens from Tunisia to Mongolia, Moldova to Libya, serving as a model for others to follow.
As you celebrate this special day, know that the United States stands with you as we work together toward a bright and prosperous future for all our citizens.
ADDITIONAL INFORMATION FROM CIA WORLD FACTBOOK
After centuries of Danish, Swedish, German, and Russian rule, Estonia attained independence in 1918. Forcibly incorporated into the USSR in 1940 - an action never recognized by the US - it regained its freedom in 1991 with the collapse of the Soviet Union. Since the last Russian troops left in 1994, Estonia has been free to promote economic and political ties with the West. It joined both NATO and the EU in the spring of 2004, formally joined the OECD in late 2010, and adopted the euro as its official currency on 1 January 2011.
DOD DOES EXPANSION OF SECUIRTY PROFESSIONALS ROLES
FROM: U.S. DEPARTMENT OF DEFENSE
DOD Expands Role of Security Professionals
By Terri Moon Cronk
American Forces Press Service
LINTHICUM HEIGHTS, Md., Feb. 22, 2013 - With ever-changing technology and increasing cyber threats that can affect the nation's security, Defense Department officials are stepping up security professionals' training to help in determining potential risks before they occur, defense officials said here.
DOD has taken the lead to standardize the security professional's knowledge to protect more than classified and sensitive information, said Denise Humphrey, deputy director for Defense Security Service's Center for Development of Security Excellence.
Security also touches people, equipment, facilities, information technology and operations in the services and defense organizations, she added.
Now, for the first time, DOD's thousands of military and civilian security professionals can earn certification in their job series to gain proficiency in an all-encompassing field through the Security Professional Education Development Program, a Defense Department initiative to professionalize the department's security workforce.
DOD officials for many years have wanted a joint security environment among the services and defense organizations, said Kevin Jones, director of the center.
"As resources decrease, it's increasingly becoming [important] for different components to work together routinely, and agencies have to support the whole apparatus of defending the nation," he said, emphasizing the need for building a professional cadre of security professionals.
But certifying security professionals doesn't just apply to those in a security job series, Humphrey noted, because security affects all DOD employees.
"We are now facing unauthorized disclosure training requirements across DOD, and around the corner is the requirement for controlled unclassified mandatory training," Humphrey said. Security professionals will be responsible for ensuring their workforces are capable of protecting such information, she added.
Humphrey said DOD's former paper-based society offered fewer security risks compared to today's rapidly changing technology.
"Years ago, when security was just a support function, there were just a few people who actually had computers on their desks, and the amount of information that could be leaked was minimal," she said.
But in today's world, she added, DOD needs a cadre of security professionals who are savvy in identifying vulnerabilities.
"Now we have to deal with a cyber environment where information flows faster than you can stop it, and we've got to have highly trained professionals capable of addressing these issues to prevent these things from happening -- rather than chasing a security issue after it's already occurred," Humphrey said.
"Fundamentals of Security Certification" is now available for security employees, and defense officials are working on three more levels of certification education and training.
And security certification has to be maintained with ongoing education, Humphrey said.
"Security professionals cannot rest on their laurels," she added. "They have to keep up with the changing state of the art of security."
DOD Expands Role of Security Professionals
By Terri Moon Cronk
American Forces Press Service
LINTHICUM HEIGHTS, Md., Feb. 22, 2013 - With ever-changing technology and increasing cyber threats that can affect the nation's security, Defense Department officials are stepping up security professionals' training to help in determining potential risks before they occur, defense officials said here.
DOD has taken the lead to standardize the security professional's knowledge to protect more than classified and sensitive information, said Denise Humphrey, deputy director for Defense Security Service's Center for Development of Security Excellence.
Security also touches people, equipment, facilities, information technology and operations in the services and defense organizations, she added.
Now, for the first time, DOD's thousands of military and civilian security professionals can earn certification in their job series to gain proficiency in an all-encompassing field through the Security Professional Education Development Program, a Defense Department initiative to professionalize the department's security workforce.
DOD officials for many years have wanted a joint security environment among the services and defense organizations, said Kevin Jones, director of the center.
"As resources decrease, it's increasingly becoming [important] for different components to work together routinely, and agencies have to support the whole apparatus of defending the nation," he said, emphasizing the need for building a professional cadre of security professionals.
But certifying security professionals doesn't just apply to those in a security job series, Humphrey noted, because security affects all DOD employees.
"We are now facing unauthorized disclosure training requirements across DOD, and around the corner is the requirement for controlled unclassified mandatory training," Humphrey said. Security professionals will be responsible for ensuring their workforces are capable of protecting such information, she added.
Humphrey said DOD's former paper-based society offered fewer security risks compared to today's rapidly changing technology.
"Years ago, when security was just a support function, there were just a few people who actually had computers on their desks, and the amount of information that could be leaked was minimal," she said.
But in today's world, she added, DOD needs a cadre of security professionals who are savvy in identifying vulnerabilities.
"Now we have to deal with a cyber environment where information flows faster than you can stop it, and we've got to have highly trained professionals capable of addressing these issues to prevent these things from happening -- rather than chasing a security issue after it's already occurred," Humphrey said.
"Fundamentals of Security Certification" is now available for security employees, and defense officials are working on three more levels of certification education and training.
And security certification has to be maintained with ongoing education, Humphrey said.
"Security professionals cannot rest on their laurels," she added. "They have to keep up with the changing state of the art of security."
EPA WORKING TO ALLOW ACCESS TO CHEMICAL INFORMATION BUSINESSES CLAIM AS CONFIDENTIAL
FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY
Declassifying Confidentiality Claims to Increase Access to Chemical Information
Background
Under the Toxic Substances Control Act (TSCA), EPA collects a range of data, including health and safety studies on chemicals, some of which may be claimed asConfidential Business Information (CBI) by the submitter.
The Agency uses this information to carry out a range of activities including prioritizing chemicals for review, conducting risk assessments and taking risk management action if needed. This information is equally important to entities outside the Agency including product formulators, manufacturers, state governments, communities and others.
Access to chemical safety information allows a greater understanding of the possible implications of certain chemicals and enables users to make informed chemicals-related decisions. Through these efforts, EPA is attempting to make this information available in as timely a manner as possible.
In the past, public access to many of these studies on human health and the environment had been restricted by confidential business information claims. In 2010, the Agency initiated a program to review and where appropriate challenge confidentiality claims for chemical identity. The criteria for review were that the filing needed to contain health and safety data that had been submitted to the Agency under TSCA and relate to chemicals in commerce. The FY 2011-2015 EPA Strategic Plan included a measure to review, and challenge where appropriate, more than 22,000 existing TSCA cases with CBI claims for chemical identity, potentially containing health and safety studies.
EPA continues to encourage TSCA submitters to declassify unnecessary CBI claims made in submissions under TSCA section 8(e) through the TSCA CBI Voluntary Challenge. Additionally, EPA is reviewing certain older submissions made under TSCA sections 4 and 8(d) to verify that these cases contain CBI claims for chemical identity and health and safety studies. Finally, EPA is reviewing the non-CBI data recently collected under the Chemical Data Reporting Rule to determine if there are related cases with health and safety data and the chemical identity claimed as CBI that can be declassified.
The effort supports both legitimate CBI claims and protecting the public’s right to know about potential risks posed by widely-used chemicals. In addition to reviewing existing cases, all new cases containing health and safety data submitted under TSCA that claim the chemical identify as CBI and are chemicals in commerce are being reviewed upon receipt to determine if the claim is appropriate.
Declassifying Confidentiality Claims to Increase Access to Chemical Information
Background
Under the Toxic Substances Control Act (TSCA), EPA collects a range of data, including health and safety studies on chemicals, some of which may be claimed asConfidential Business Information (CBI) by the submitter.
The Agency uses this information to carry out a range of activities including prioritizing chemicals for review, conducting risk assessments and taking risk management action if needed. This information is equally important to entities outside the Agency including product formulators, manufacturers, state governments, communities and others.
Access to chemical safety information allows a greater understanding of the possible implications of certain chemicals and enables users to make informed chemicals-related decisions. Through these efforts, EPA is attempting to make this information available in as timely a manner as possible.
In the past, public access to many of these studies on human health and the environment had been restricted by confidential business information claims. In 2010, the Agency initiated a program to review and where appropriate challenge confidentiality claims for chemical identity. The criteria for review were that the filing needed to contain health and safety data that had been submitted to the Agency under TSCA and relate to chemicals in commerce. The FY 2011-2015 EPA Strategic Plan included a measure to review, and challenge where appropriate, more than 22,000 existing TSCA cases with CBI claims for chemical identity, potentially containing health and safety studies.
EPA continues to encourage TSCA submitters to declassify unnecessary CBI claims made in submissions under TSCA section 8(e) through the TSCA CBI Voluntary Challenge. Additionally, EPA is reviewing certain older submissions made under TSCA sections 4 and 8(d) to verify that these cases contain CBI claims for chemical identity and health and safety studies. Finally, EPA is reviewing the non-CBI data recently collected under the Chemical Data Reporting Rule to determine if there are related cases with health and safety data and the chemical identity claimed as CBI that can be declassified.
The effort supports both legitimate CBI claims and protecting the public’s right to know about potential risks posed by widely-used chemicals. In addition to reviewing existing cases, all new cases containing health and safety data submitted under TSCA that claim the chemical identify as CBI and are chemicals in commerce are being reviewed upon receipt to determine if the claim is appropriate.
FORMER GOVERNMENT EMPLOYEE ADMITS TO TAKING BRIBES FROM CONTRACTORS
FROM: U.S. DEPARTMENT OF JUSTICE Georgia Woman Admits to Taking Bribes for the Award of Government Contracts
A former employee at the Marine Corps Logistics Base Albany pleaded guilty today to receiving bribes related to the award of contracts for machine products, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Michelle Rodriguez, 32, of Albany, Ga., pleaded guilty before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During her guilty plea, Rodriguez, who worked as a supply technician in the Maintenance Center Albany (MCA), admitted to participating in a scheme to award contracts for machine products to companies operated by Thomas J. Cole and Frederick Simon, both of whom pleaded guilty to bribery charges in January 2013.
According to court documents, the MCA is responsible for rebuilding and repairing ground combat and combat support equipment, much of which has been used in military missions in Afghanistan, Iraq and other parts of the world. To accomplish the scheme, Rodriguez would transmit bid solicitations to Simon by fax or email, usually following up with a text message specifying how much the company seeking the contract should bid. Simon, with Cole’s knowledge, would then bid the amount specified by Rodriguez on each order, which was normally higher than fair market value. Rodriguez was paid $75.00 cash per order. Rodriguez admitted during today’s hearing that she awarded Cole and Simon’s companies nearly 1,300 machine product orders, all in exchange for bribes.
Rodriguez also admitted that in 2011, she began routing some orders through a second company, owned by Cole, because the volume of orders MCA placed with the first company was so high. Rodriguez admitted receiving approximately $161,000 in bribes during the nearly two-year scheme. Cole and Simon previously admitted to personally receiving approximately $209,000 and $74,500 in proceeds from the scheme, respectively. Rodriguez, Cole and Simon all conceded that the total loss to the Department of Defense from overcharges associated with the machine product orders placed during the scheme was approximately $907,000.
At sentencing, Rodriguez faces a maximum potential penalty of 15 years in prison and a fine of twice the gross gain or loss from the offense. As part of her plea agreement with the United States, Rodriguez agreed to forfeit the bribe proceeds she received from the scheme, as well as to pay full restitution to the Department of Defense. The plea agreement also required her to resign her position at the MCA. Sentencing is scheduled for April 25, 2013.
MAN SENTENCED FOR SELLING MILLIONS IN FRAUDULENT RENEWABLE FUEL CREDITS
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| Fried Cheese Curds. Credit: Wikimedia Commons. |
Rodney Hailey Sentenced to More Than 12 Years in Prison for Selling $9 Million in Fraudulent Renewable Fuel Credits
Owner of "Clean Green Fuel" falsely claimed his company produced 23 million gallons of renewable fuel
WASHINGTON - U.S. District Judge William D. Quarles, Jr. sentenced Rodney R. Hailey, of Perry Hall, Md., today to nearly 12 years and six months in prison, followed by three years of supervised release, for selling $9 million in renewable fuel credits which he falsely claimed were produced by his company, Clean Green Fuel, LLC.
"When invalid renewable fuel credits are ‘produced’ and sold, it undermines the integrity of an important program designed by Congress to reduce the nation’s dependence on foreign oil and to grow the nation’s renewable energy industry," said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. "Today’s sentence shows that there are serious consequences, including jail time, for defrauding the renewable fuels program for personal gain."
"Any government program that is based on trust is vulnerable to a fraudster like Rodney Hailey," said U.S. Attorney Rod J. Rosenstein. "The only thing Rodney Hailey’s ‘Clean Green Fuel’ business produced was the dirty money he used to fund his lavish lifestyle."
Judge Quarles enhanced Hailey’s sentence upon finding that he obstructed justice by concealing, selling and spending assets that were protected by court order. Judge Quarles also ordered Hailey to pay restitution of approximately $ 42.2 million to over 20 companies and forfeit $9.1 million in proceeds from the fraud, including cars, jewelry, his home and bank accounts, already seized by the government.
Hailey, age 34, was convicted on Jun. 25, 2012, of eight counts of wire fraud, 32 counts of money laundering, and two counts of violating the Clean Air Act. He has been detained since the guilty verdict.
According to evidence presented at the six day trial, Hailey owned Clean Green Fuel, LLC, located in the Baltimore, Md. area. Hailey registered Clean Green Fuel with EPA under the Renewable Fuel Standard (RFS) program as a producer of bio-diesel fuel, a motor vehicle fuel derived from renewable resources. To encourage the production of renewable fuel and lessen the nation’s dependence on foreign oil, all oil companies that market petroleum in the U.S. are required to produce a given quantity of renewable fuel or to purchase credits, called renewable identification numbers (RINs) from producers of renewable fuels to satisfy their renewable fuel requirements.
Between March 2009 and December 2010, Hailey engaged in a massive fraud scheme, selling over 35 million RINs (representing 23 million gallons of bio-diesel fuel) to brokers and oil companies, when in fact Clean Green Fuel had produced no fuel at all and Hailey did not have a facility capable of producing bio-diesel fuel.
Federal law enforcement agents investigated the scheme after a Baltimore County police detective working with Maryland’s federal financial crimes task force received a report about the large number of luxury cars parked in front of Hailey’s house. The financial crimes task force contacted EPA’s Criminal Investigation Division and initiated a criminal investigation.
Two civil inspectors from EPA’s Air Enforcement Division visited Clean Green’s headquarters on Jul. 22, 2010, to inspect Hailey’s bio-diesel production facility, in response to a complaint alleging that Clean Green had been selling false RINs. Hailey was not able to provide an exact location for the bio-diesel fuel production facility, nor any records to support claims that Clean Green Fuel had produced bio-diesel fuel. When asked to explain his method of production, Hailey falsely stated that he paid employees and contractors to recover waste vegetable oil from 2,700 restaurants in the "Delmarva" area, a peninsula that includes parts of Delaware, Virginia and Maryland, and bring it to his production facility where he converted it to bio-diesel fuel. Hailey claimed that only the drivers who picked up the oil knew the names of the restaurants, and Hailey could not provide the names of the drivers.
Hailey made more than $9.1 million from selling the false RINs. Hailey used the proceeds of the scheme to purchase luxury vehicles, including BMWs, Mercedes Benz, a Rolls Royce Phantom, a Lamborghini, Ferrari, Maserati and others, as well as real estate and more than $80,000 in diamond jewelry. In all of these transactions, Hailey generally used cash or checks drawn on accounts he controlled to make the purchase, including a check for $645,330.15 to buy his home in Perry Hall, Md.
The loss to the traders and major energy companies who purchased Hailey’s false RINs is more than $40 million, but the loss also extends to small bio-diesel companies, many of which, as a result of Hailey’s scheme, were unable to sell their RINs and have been forced out of business.
EPA recently proposed a voluntary quality assurance program to verify that RINs generated under the RFS program have been validly generated. EPA expects that this will promote greater liquidity in the transfer and use of RINs, helping to make the RFS program more efficient and effective.
SALMONELLA-TAINTED PEANUTS ALLEGEDLY DISTRIBUTED IN U.S.
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| Peanuts. Credit: Wikimedia Commons. |
Thursday, February 21, 2013
Former Officials and Broker of Peanut Corporation of America Indicted Related to Salmonella-Tainted Peanut Products
Allegations Include Mail and Wire Fraud, Introduction of Adulterated and Misbranded Food into Interstate Commerce with Intent to Defraud or Mislead, and Conspiracy
A 76-count indictment was unsealed yesterday charging four former officials of the Peanut Corporation of America (PCA) and a related company with numerous charges relating to salmonella-tainted peanuts and peanut products, the Justice Department announced today. Stewart Parnell, 58, of Lynchburg, Va.; Michael Parnell, 54, of Midlothian, Va.; and Samuel Lightsey, 48, of Blakely, Ga., have been charged with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy. Stewart Parnell, Lightsey and Mary Wilkerson, 39, of Edison, Ga., were also charged with obstruction of justice.
Also yesterday, an information filed against Daniel Kilgore, 44, of Blakely was unsealed. On the same day that charges against Kilgore were filed, he pleaded guilty to that information, which charged him with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy.
The investigation into the activity at PCA began in 2009, after the Food and Drug Administration and the U.S. Centers for Disease Control and Prevention traced a national outbreak of salmonella to a PCA plant in Blakely as the likely source. As alleged in the indictment, the Blakely plant was a peanut roasting facility where PCA roasted raw peanuts and produced granulated peanuts, peanut butter, and peanut paste; PCA sold these peanut products to its customers around the country.
The charging documents charge that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to manufacture and ship salmonella-contaminated peanuts and peanut products, and in so doing misled PCA customers. As alleged in the indictment, those customers ranged in size from small, family-owned businesses to global, multibillion-dollar food companies.
"When those responsible for producing or supplying our food lie and cut corners, as alleged in the indictment, they put all of us at risk," said Stuart F. Delery, who heads the Justice Department’s Civil Division. "The Department of Justice will not hesitate to pursue any person whose criminal conduct risks the safety of Americans who have done nothing more than eat a peanut butter and jelly sandwich."
Although PCA is now no longer in business, the allegations against each of the defendants arise from his or her conduct while at PCA and a related company. The following allegations are set forth in the indictment: Stewart Parnell was an owner and president of PCA; Michael Parnell, who worked at P.P. Sales, was a food broker who worked on behalf of PCA; Lightsey was the operations manager at the Blakely plant from on or about July 2008 through February 2009; and Wilkerson held various positions at the Blakely plant – receptionist, office manager and quality assurance manager – from on or about April 2002 through February 2009. As charged in the information, Kilgore served as operations manager of the PCA plant in Blakely from on or about June 2002 through May 2008.
"We all place a great deal of trust in the companies and individuals who prepare and package our food, often times taking it for granted that the public’s health and safety interests will outweigh individual and corporate greed," said Michael Moore, U.S. Attorney for the Middle District of Georgia. "Unfortunately and as alleged in the indictment, these defendants cared less about the quality of the food they were providing to the American people and more about the quantity of money they were gathering while disregarding food safety. This investigation was complex and extensive, and I credit the cooperation of our federal agencies with not only making sure that the cause of this outbreak was uncovered and the people responsible called to account, but also with working hard every day to make sure that parents across the country can feel confident that the food they are feeding their children is safe."
The charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in several schemes by which they defrauded PCA customers about the quality and purity of their peanut products and specifically misled PCA customers about the existence of foodborne pathogens, most notably salmonella, in the peanut products PCA sold to them. As the charging documents allege, the members of the conspiracy did so in several ways – for example, even when laboratory testing revealed the presence of salmonella in peanut products from the Blakely plant, Stewart Parnell, Michael Parnell, Lightsey and Kilgore failed to notify customers of the presence of salmonella in the products shipped to them.
In addition, the charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to fabricate certificates of analysis (COAs) accompanying various shipments of peanut products. COAs are documents that summarize laboratory results, including results concerning the presence or absence of pathogens. As alleged in the charging documents, on several occasions these four defendants participated in a scheme to fabricate COAs stating that shipments of peanut products were free of pathogens when, in fact, there had been no tests on the products at all or when the laboratory results showed that a sample tested positive for salmonella.
After the salmonella outbreak that gave rise to this investigation, FDA inspectors visited the plant several times in January 2009. According to the indictment, the inspectors asked specific questions about the plant, its operations, and its history, and, in several instances, Stewart Parnell, Lightsey and Wilkerson gave untrue or misleading answers to these questions.
"The charges announced today show that if an individual violates food safety rules or conceals relevant information, we will seek to hold them accountable," said FDA Commissioner Margaret A. Hamburg, M.D. "The health of our families and the safety of our food system is too important to be thwarted by the criminal acts of any individual or company."
Stewart Parnell, Michael Parnell, and Samuel Lightsey are each charged with two counts of conspiracy; multiple counts of introducing adulterated food into interstate commerce with the intent to defraud; multiple counts of introducing misbranded food into interstate commerce with the intent to defraud; multiple counts of interstate shipment fraud; and multiple counts of wire fraud. Stewart Parnell, Lightsey and Wilkerson are also charged with multiple counts of obstruction of justice.
Kilgore pleaded guilty to one count of conspiracy to commit fraud, one count of conspiracy to introduce adulterated and misbranded food into interstate commerce, eight counts of introducing adulterated food into interstate commerce with the intent to defraud, six counts of introducing misbranded food into interstate commerce with the intent to defraud, eight counts of interstate shipment fraud, and five counts of wire fraud.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, "The FBI was brought in to this matter to provide additional resources and expertise to a complex and very serious investigation. We fully understand the victim impact as a result of this salmonella outbreak and will be asking to hear from other possible victims in this matter."
The case is being prosecuted by Trial Attorneys Patrick Hearn and Mary M. Englehart of the Consumer Protection Branch of the Civil Division of the Department of Justice and Assistant U.S. Attorney Alan Dasher of the Middle District of Georgia. Marietta Geckos, formerly a Trial Attorney with the Consumer Protection Branch, also worked on the prosecution. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations and the FBI.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
THE COLORS OF MERCURY
FROM: NASA
This colorful view of Mercury was produced by using images from the color base map imaging campaign during MESSENGER's primary mission. These colors are not what Mercury would look like to the human eye, but rather the colors enhance the chemical, mineralogical, and physical differences between the rocks that make up Mercury's surface.
Mercury,Image Credit-NASA-Johns Hopkins University Applied Physics Laboratory-Carnegie Institution of Washington
Saturday, February 23, 2013
U.S. CONDEMS ALEPPO ATTACKS
FROM: U.S. DEPARTMENT OF STATE
United States Condemns Attacks on Aleppo
Press Statement
Victoria Nuland
Department Spokesperson, Office of the Spokesperson
Washington, DC
February 23, 2013
The United States Government condemns in the strongest possible terms the series of rocket attacks against Aleppo, most recently the attack using Scud missiles on an eastern district of the city late on Friday, February 22, that killed several dozen people. The Friday attack follows the assault on Aleppo of Tuesday, February 19, that destroyed several city blocks in the Jabal Badr district of Aleppo and injured hundreds of innocent civilians. These attacks, as well as other atrocities such as the strike against a field hospital earlier in the week, are only the latest demonstrations of the Syrian regime's ruthlessness and its lack of compassion for the Syrian people it claims to represent.
The Assad regime has no legitimacy and remains in power only through brute force. From the city of Deir Zour in the far eastern part of Syria to the mountains of Jebel Akrad near the Mediterranean, Syrians across the country have demanded that Assad, and the architects of his violent campaign, step aside and allow a Syrian-led political transition to begin so that the rights of all Syrians can be respected, and the country can begin to rebuild. The United States sees no indication that the brave Syrian people fighting against this aggression will accept these regime leaders, with the blood of so many Syrians on their hands, as part of a transition governing authority.
The United States has contributed $385 million to help Syrian refugees and citizens inside Syria who have been displaced by regime violence. As the regime strikes out against more and more civilians, we have increased our humanitarian aid in close coordination with Syrian activists, and we have urged other countries to do so as well. We also have helped local administrative councils, provincial revolution councils and the local coordination committees organize themselves to play their vital role in the revolution. We look forward to meeting soon with the leadership of the legitimate representative of the Syrian people, the Syrian Opposition Coalition, to discuss how the United States and other friends of the Syrian people can do more to help the Syrian people achieve the political transition that they demand and that they deserve
United States Condemns Attacks on Aleppo
Press Statement
Victoria Nuland
Department Spokesperson, Office of the Spokesperson
Washington, DC
February 23, 2013
The United States Government condemns in the strongest possible terms the series of rocket attacks against Aleppo, most recently the attack using Scud missiles on an eastern district of the city late on Friday, February 22, that killed several dozen people. The Friday attack follows the assault on Aleppo of Tuesday, February 19, that destroyed several city blocks in the Jabal Badr district of Aleppo and injured hundreds of innocent civilians. These attacks, as well as other atrocities such as the strike against a field hospital earlier in the week, are only the latest demonstrations of the Syrian regime's ruthlessness and its lack of compassion for the Syrian people it claims to represent.
The Assad regime has no legitimacy and remains in power only through brute force. From the city of Deir Zour in the far eastern part of Syria to the mountains of Jebel Akrad near the Mediterranean, Syrians across the country have demanded that Assad, and the architects of his violent campaign, step aside and allow a Syrian-led political transition to begin so that the rights of all Syrians can be respected, and the country can begin to rebuild. The United States sees no indication that the brave Syrian people fighting against this aggression will accept these regime leaders, with the blood of so many Syrians on their hands, as part of a transition governing authority.
The United States has contributed $385 million to help Syrian refugees and citizens inside Syria who have been displaced by regime violence. As the regime strikes out against more and more civilians, we have increased our humanitarian aid in close coordination with Syrian activists, and we have urged other countries to do so as well. We also have helped local administrative councils, provincial revolution councils and the local coordination committees organize themselves to play their vital role in the revolution. We look forward to meeting soon with the leadership of the legitimate representative of the Syrian people, the Syrian Opposition Coalition, to discuss how the United States and other friends of the Syrian people can do more to help the Syrian people achieve the political transition that they demand and that they deserve
DRILLING ON MARS VIDEO
FROM: NASA
Drilling into Mars
This animation of NASA's Curiosity rover shows the complicated suite of operations involved in conducting the rover's first rock sample drilling on Mars and transferring the sample to the rover's scoop for inspection. The drilling and sample transfer took place on Feb. 8 and 20, 2013, or sols 182 and 193, Curiosity's 182nd and 193rd Martian days of operations.
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