Wednesday, April 10, 2013

DUNE: AUSTRALIA




FROM: NASA
Great Sandy Desert, Australia


In northwest Australia, the Great Sandy Desert holds great geological interest as a zone of active sand dune movement. While a variety of dune forms appear across the region, this astronaut photograph features numerous linear dunes (about 25 meters high) separated in a roughly regular fashion (0.5 to 1.5 kilometers apart). The dunes are aligned to the prevailing winds that generated them, which typically blow from east to west. Where linear dunes converge, dune confluences point downwind. When you fly over such dune fields—either in an airplane or the International Space Station—the fire scars stand out. Where thin vegetation has been burned, the dunes appear red from the underlying sand; dunes appear darker where the vegetation remains.

Astronaut photograph ISS035-E-9454 was acquired on March 25, 2013, with a Nikon D3S digital camera using a 400 millimeter lens, and is provided by the ISS Crew Earth Observations experiment and Image Science & Analysis Laboratory, Johnson Space Center. The image was taken by the Expedition 35 crew. It has been cropped and enhanced to improve contrast, and lens artifacts have been removed. Image Credit: NASA

Tuesday, April 9, 2013

Press Briefing | The White House

Press Briefing | The White House

FORMER FUGITIVE PLEADS GUILTY TO IDENTITY THEFT AND BANKRUPTCY FRAUD

FROM: U.S. DEPARTMENT OF JUSTICE
Monday, April 8, 2013
Former Federal Fugitive Pleads Guilty in California to Massive Fraud and Identity Theft Scheme in Connection with Nationwide Foreclosure Scam

Defendant Collected More Than $1.2 Million from More Than 800 Distressed Homeowners

A former Los Angeles resident, who fled to Canada and was a federal fugitive for 12 years, pleaded guilty today to aggravated identity theft and bankruptcy fraud in connection with leading a nearly 15-year foreclosure-rescue scam that fraudulently postponed foreclosure sales for more than 800 distressed homeowners, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Central District of California AndrĂ© Birotte Jr., U.S. Attorney for the Northern District of California Melinda Haag, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).

Glen Alan Ward, 48, pleaded guilty in connection with three separate sets of charges in the Central and Northern Districts of California, all stemming from Ward’s 15-year fraud. In 2000, Ward became a federal fugitive when he failed to appear in court after signing a plea agreement, which arose out of federal charges in 2000 in the Central District of California related to Ward’s early conduct in the scheme. In 2002, Ward was indicted on multiple counts of bankruptcy fraud in the Northern District of California for continuing the scheme in and around San Francisco. On Aug. 17, 2012, Ward was indicted on mail fraud, aggravated identity theft, and additional bankruptcy fraud counts in the Central District of California after fleeing to Canada and continuing his fraud from there. While in Canada, Ward recruited Frederic Alan Gladle, who was indicted in the Central District of California for bankruptcy fraud and identity theft in 2011, and was sentenced in 2012 to 61 months in custody for engaging in similar conduct.

On April 5, 2012, Ward was arrested in Canada by the Royal Canadian Mounted Police and the Waterloo Regional Police Service based on a U.S. provisional arrest warrant. On Dec. 21, 2012, Ward was extradited to the United States to answer all three sets of charges.

"Glen Alan Ward spent years preying on distressed homeowners and stealing the identities of bankruptcy debtors, all to pad his own pockets," said Acting Assistant Attorney General Raman. "Now he faces years in prison for his crimes. This successful prosecution illustrates our commitment to tirelessly pursuing fraudsters and ensuring that sophisticated schemes that prey on vulnerable homeowners will not go unpunished."

"Mr. Ward fled the United States years ago in an attempt to keep his fraudulent foreclosure scheme running," said United States Attorney André Birotte Jr. "Today's conviction should serve as a reminder that criminals can run, but they can't hide. The reach of the federal law is long and scammers like Ward, who try to take advantage of distressed homeowners, will be tracked down and prosecuted regardless of their efforts to do otherwise."

According to the plea agreement filed today before U.S. District Judge Dale S. Fischer in the Central District of California, Ward admitted to engaging in a fraud scheme that took place from 1997 to April 5, 2012, the day he was arrested by Canadian authorities. According to the plea agreement, Ward led a scheme that solicited and recruited homeowners whose properties were in danger of imminent foreclosure. Ward promised to delay their foreclosures for as long as the homeowners could afford his $700 monthly fee. Once a homeowner paid the fee, Ward accessed a public bankruptcy database and retrieved the name of an individual debtor who recently filed bankruptcy. Ward admitted that he obtained copies of unsuspecting debtors’ bankruptcy petitions and directed his clients to execute, notarize and record a grant deed transferring generally a 1/100th fractional interest in their distressed home into the name of the debtor that Ward provided. Then, after stealing the debtor’s identity, Ward faxed a copy of the bankruptcy petition, the notarized grant deed and a cover letter to the homeowner’s lender or the lender’s representative, directing it to stop the impending foreclosure sale due to the bankruptcy.

Because bankruptcy filings give rise to automatic stays that protect debtors’ properties, the receipt of the bankruptcy petitions and deeds in the debtors’ names forced lenders to cancel foreclosure sales. The lenders, which included banks that received government funds under the Troubled Asset Relief Program (TARP), could not move forward to collect money that was owed to them until getting permission from the bankruptcy courts, thereby repeatedly delaying the lenders’ recovery of their money for months and even years. In addition, if a distressed homeowner wanted to complete a loan modification or short sale, they were left to the mercy of Ward to send them forged deeds, supposedly signed by the debtors, to re-unify their title as required by most lenders.

As part of the scheme, Ward delayed the foreclosure sales of approximately 824 distressed properties by using at least 414 bankruptcies filed in 26 judicial districts across the country. During that same period, Ward admitted to collecting more than $1.2 million from his clients who paid for his illegal foreclosure-delay services, all of which he has agreed to forfeit.

"Today's announcement is the result of a collaborative international effort and the FBI is grateful to our partners with the Royal Canadian Mounted Police and the Waterloo Regional Police for their assistance in the fugitive investigation and apprehension," said Bill Lewis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "Mr. Ward's long-term scheme is an extreme example of calculated fraud based on greed, and I'm proud of the persistence shown by our federal partners at SIGTARP, the Office of United States Trustees, and the United States Attorney's Office, in pursuing this case to its successful end."

"We are committed to pursuing those who defraud the most vulnerable victims of the real estate market," said FBI San Francisco Special Agent in Charge David J. Johnson. "This is an excellent example of how closely we work with our law enforcement partners here and abroad to ensure that criminals are brought to justice."

"With today’s plea, justice is served for the victims of Ward’s long-running bankruptcy fraud scheme," said Christy Romero, Special Inspector General for TARP (SIGTARP). "While on the run for 12 years and having fled to Canada to avoid answering for earlier charges of bankruptcy fraud, Ward continued to victimize hundreds of struggling homeowners, steal the identities of unsuspecting U.S. taxpayers involved in bankruptcy proceedings, and exploit civil protections under bankruptcy law to defraud lenders, including numerous TARP recipients. SIGTARP and our law enforcement partners will continue to ensure that those responsible for fraud related to TARP are brought to justice and answer for their crimes."

Each count of bankruptcy fraud carries a maximum sentence of five years in prison. Aggravated identity theft carries a two-year mandatory sentence, to run consecutive to any other sentence. Ward will be sentenced on July 29, 2013 before United States District Judge Dale S. Fischer, and will continue to be held without bond.

This case is being prosecuted by Trial Attorney Paul Rosen of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Evan Davis of the U.S. Attorney’s Office for the Central District of California. Assistant U.S. Attorney Jonathan Schmidt is prosecuting the charges in the Northern District of California, which were transferred to the Central District of California for entry of the guilty pleas. The investigation was conducted by SIGTARP and the FBI, which received substantial assistance from the U.S. Trustee’s Office. In addition, the Canadian Waterloo Regional Police Service and Royal Canadian Mounted Police provided exceptional support and assistance in connection with Ward’s arrest and extradition.

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.

U.S. Department Of State Daily Press Briefing - April 9, 2013

Daily Press Briefing - April 9, 2013

SECRETARY OF STATE AND ISRAELI PRESIDENT PERES MAKE REMARKS BEFORE MEETING

Map:  Israel.  Credit:  CIA World Factbook.
FROM: U.S. DEPARTMENT OF STATE
Remarks With Israeli President Shimon Peres Before Their Meeting
Remarks
John Kerry
Secretary of State
President's Residence
Jerusalem
April 8, 2013


Well, Mr. President, thank you very, very much for an extraordinarily generous and warm welcome. It’s really such an honor to be here today to share in Yom HaShoah and to be there at Yad Vashem to lay a wreath on behalf of the American people, but most importantly to simply share in the uniqueness of that expression of sorrow and honor for this remarkable moment in history that we marked.

I was standing there listening to the siren wail and thinking of the stories people have told me of everybody in Israel stopping. If you’re in a car, you get out and you stand at attention. The whole country freezes. And I know it’s one of only two moments when that happens, for Yom HaShoah and for the fallen in battle in struggles. So that wailing had a profound impact on me. It was impressive. And I think the lesson of today is underscored in your comments about the possibilities for peace, the possibilities for people to live together without hatred, and finding the common ground. I believe in that, and I know you believe in that.

You are correct; we have known each other, I think, more than 30 years now. And I’ve had the privilege of watching you lead as a statesman. I’ve had the privilege of working with you in the different hats you have worn in government. And it’s a great privilege for me to be able to be here now representing President Obama and the American people in this effort to try to get us across the line.

We all know it’s not easy. But as you said yourself, it can be done. And it has been expressed by your leaders and others through years that people believe in the possibility of a two-state solution. I am convinced there is a road forward, and I look forward to the discussions with your leaders and yourself regarding how that road could be sort of reignited, if you will, once again setting out on that path.

I would say to everybody I have no illusions about difficulties. We’ve seen them. But you have to believe in the possibilities to be able to get there, and you and I believe in them, and I am convinced that there is a road ahead.

With respect to Iran and other threats, I am very pleased to confirm to you what I know you know, and what I hope the people of Israel know after the historic visit of President Obama here: You have a friend in President Obama. You have friends in this Administration, in the Congress, and in America. We understand the nature of the threat of Iran. And as the President has said many times – he doesn’t bluff; he is serious – we will stand with Israel against this threat and with the rest of the world, who have underscored that all we are looking for is Iran to live up to its international obligations.

No option is off the table. No option will be taken off the table. And I confirm to you, Mr. President, that we will continue to seek a diplomatic solution. But our eyes are open, and we understand that the clock is moving. And no one will allow the diplomatic process to stand in the way of whatever choices need to be made to protect the world from yet another nuclear weapon in the wrong hands.

So I look forward to our conversation, and I’ll look forward to my subsequent conversations while I’m here. And I’m confident, Mr. President, that we will be working together and seeing more of each other over the course of these next months. And thank you again for a very, very generous welcome.

EX-IM BANK SAYS U.S. EXPORTED $186 MILLION GOODS AND SERVICES IN FEBRUARY

FROM: U.S. EXPORT-IMPORT BANK
U.S. Exports Total $186 Billion in February;
Exports During Past Year Hit $2.2 Trillion


WASHINGTON, D.C. — The United States exported $186.0 billion of goods and services in February 2013, an increase from January’s exports of $184.4 billion, according to data released Friday by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.

"The many successful small- and mid-sized businesses attending last week’s Ex-Im annual conference demonstrated that growing sales and profits in today’s global economy is possible by selling to the 95 percent of the world’s customers located outside the United States", said Ex-Im Bank Chairman and President Fred P. Hochberg. "Export growth remains a vital component of the nation’s economic recovery, and Ex-Im will continue to provide export credit support to American entrepreneurs as they expand their reach to buyers outside our borders."

Hochberg noted that during the first six months of FY 2013 Ex-Im Bank export credit authorizations were strong, amounting to $14.8 billion, supporting over 100,000 U.S. jobs and exceeding the Bank’s authorizations in all of 2008.

U.S. exports of goods and services over the last twelve months totaled $2.2 trillion, which is 39.7 percent above the level of exports in 2009. Over the last twelve months, exports have been growing at an annualized rate of 11.1 percent when compared to 2009.

Over the last twelve months, among the major export markets (i.e., markets with at least $6 billion in annual imports of U.S. goods), the countries with the largest annualized increase in U.S. goods purchases, when compared to 2009, occurred in Panama (31.8 percent), Russia (25.1 percent), Chile (24.4 percent), United Arab Emirates (23.6 percent), Peru (23.4 percent), Venezuela (22.5 percent), Argentina (21.9 percent), Hong Kong (20.6 percent), Colombia (20.7 percent), and Turkey (20.3 percent).

SECRETARY OF STATE KERRY AT BEN GURION INTERNATIONAL AIRPORT

FROM: U.S. SECRETARY OF STATE KERRY,
Solo Press Availability in Tel Aviv, Israel
Press Availability
Ben Gurion International Airport
Tel Aviv, Israel
April 9, 2013


SECRETARY KERRY:
Good afternoon, everybody. It's always a great pleasure for me to be able to be here in Israel. And before I leave for our next stop at the ministerial in London, I wanted to take a moment to update everybody on what I consider to be very constructive talks over the course of the last 24 hours here. A very good series of discussions with Prime Minister Netanyahu, with President Abbas, as well as with Prime Minister Fayyad and President Peres. Each of them made very serious and well-considered, constructive suggestions with respect to what the road forward might look like. And they all embraced the goal that we all share here. So this effort is not just about getting the parties back into direct negotiations, it’s about getting everybody in the best position to succeed.

This effort has been dogged by good intentions and failed efforts at one time or another for a lot of different reasons. I think we’ve all had enough time to analyze those reasons and understand some of the lessons we need to learn in trying to go forward now. It’s our intention, and we all committed to this, every party, to continue our intensive discussions with the belief that they are constructive and they are in good faith, and that we intend to try to create the conditions for peace so that we can resume negotiations between the parties in a clear and precise, predetermined manner.

We also spoke about other steps that could be taken in order to facilitate this process and to make it more conducive to success. Specifically, we agreed among us – President Abbas, Prime Minister Netanyahu, and ourselves – that we are going to engage in new efforts, very specific efforts, to promote economic development and to remove some of the bottlenecks and barriers that exist with respect to commerce in the West Bank, to move very rapidly towards increased business expansion and private sector investment in the West Bank, all of which, we are convinced, will help improve the economic security of the people living there as well as improve the security of the people of Israel. Economic growth will help us be able to provide a climate, if you will, an atmosphere, within which people have greater confidence about moving forward.

But I want to emphasize – I emphasize this very strongly: This is not in lieu of, or an alternative to, the political track. It is not a substitute. The political track remains the primary focus. But this is in addition to, in a way that could help to facilitate that track, and I believe will begin to take hold immediately.

I held discussions regarding these efforts with both Israeli and Palestinian officials, as well as with the Quartet representative Tony Blair, and other private sector business people. And this will be a focus of our work over the course of the next months in a very intensive way, and I will have more to say about this in the very near future. I will answer your questions about specifically who, what, where, when, and how.

Prime Minister Netanyahu and I spoke about this in some detail this morning, about the specific steps that we could take to break through red tape, to help expedite the goal of economic growth on the West Bank, and I let him know that I have already been in touch with our partners in the United States. The White House is committed to this – the President is committed to this process – and we will put all of the energy of our own government – OPIC, Ex-Im Bank, USAID, the international financial institutions, the Trade Partnership Agency – all of these efforts will be put into this initiative to try to make a significant dent with respect to employment and economic security of the West Bank.

As I’ve said before, and I want to emphasize it here again today, the President has not sent me here to propose or impose an American plan or to dictate to anybody the way forward. Ultimately, this negotiation is between the state of Israel and the Palestinian Authority. Now we are not naive about the challenges before us, but we believe very deeply that it is our duty to give every effort we can to this effort, and each of the leaders that I met with assured me that they will put their best effort into trying to help us move forward. And everybody understands that if we work together, knowing that doing it right is more important than doing it quickly, I think we increase the possibilities of success.

So that’s the framework within which I wanted to leave here today. As I think many of you know, I’ll be somewhere in the region in a short period of time with respect to the Syrian issue, and we will continue to have our discussions. The most important thing is we have homework to do; we’re going to go home and get our homework done while others do theirs, and we will continue to move in a deliberate and thoughtful way.

On that note, happy to throw it open to questions.

MODERATOR: The Secretary will take four questions today. The first is Brad Klapper from the Associated Press.

QUESTION: Thank you, Mr. Secretary. Real quick, what – you said you made progress in your talks with Mr. Netanyahu. What concretely was that progress? Is there anything more you can say about the economic development plans for the West Bank, and if you could be more specific at all about when you’re expecting to come back to the region?

SECRETARY KERRY: Brad, I’m going to come back when we get our homework done, and that’s as specific as I’m going to be right now. We’re going to stay in close touch. We’re never out of touch. And with respect to the economic plans, as I said, I will be very specific next week. We will have the Washington meeting, and you all will have a chance to see this fleshed out in full. And I think that’s the most important thing is to make sure we have all the details pulled together.

But we’ve talked about it a lot. We have it in full concept. I just want to have the meetings I need to have next week, and we will announce some of the corporate entities that may be involved and some of the specific plans that we have with respect to it.

MODERATOR: The next question will come from Bow Shapira from Channel 1.

QUESTION: 
Yeah, this is me. Thank you very much. Mr. Secretary, yes, I would like to ask about future possible withdrawal of Israel from West Bank. Israel is a bad lesson from the withdrawal from Gaza. A few months after Israel left, they found Hamas took over. And this is one point that Israel is hesitate to do some steps regarding going out of West Bank. And second thing is a guarantee coming from Bush Administration, April 9th, 2004, telling that blocs of settlements can stay, cannot removed from the territory, as Israel can leave but peace territories – well, does it exist?
I have the two questions today, withdraw and a guarantee from the past.

SECRETARY KERRY: Well, as everybody here knows very well, I don’t now and never have spoken for the Bush Administration. (Laughter.) That said, I remember that commitment very well because I was running for president then, and I personally have supported the notion that the situation on the ground has changed, and obviously, we’re talking about blocs that are in a very different status.
I’m not going to get into telling you what ought to happen with respect to any particular piece of geography today because that’s for the parties to decide in their negotiation. But I have certainly supported the notion publicly myself that we need to deal with the ’67 lines, plus the swaps that reflect some of the changes that have taken place since then. And that has been my prior public position. It’s up to the parties to negotiate this, and what the United States wants is for Israel’s security to be guaranteed and Palestinian aspirations to be reflected in that dialogue.
We clearly care deeply about the security of Israel. We have provided Iron Dome. We have an unprecedented cooperative level with Israel at this point in time. I think your military and intelligence personnel will tell you that never has the cooperation with the United States been as good as it is today. And I can guarantee you that President Obama, in whatever role we play to try to help the parties come to an agreement, knows that that agreement must address Israel’s security concerns.
Now, Gaza reflected a unilateral withdrawal, not a peace agreement, and so there is a difference there. Secondly, the reality is that the President made it very clear when he was here that he puts the security of Israel way up on top as a paramount issue that has to be resolved. And obviously, that issue will have to be addressed because no leader of Israel is going to sign an agreement that doesn’t adequately meet the needs of Israel’s security. So you can rest assured that’s on the agenda, as are the other issues of concern to the other parties.
Both parties have a set of needs here, and the art of any negotiation is to find a way to satisfy the parties’ needs. We know that Israel lives in a very narrow piece of land with a different kind of threat today from rockets and missiles, and Israel deserves peace, real peace. And it doesn’t make sense to have some kind of an agreement that doesn’t allow you to know you can provide for the security of your people. So this is an issue that is front and center, and I can guarantee you that’s part of the homework and part of the work that all of us have to do. But nobody is entering this with any sense of naivetĂ©. These are complicated issues. They need to be part of the negotiation.
And most importantly, to answer Brad’s question a little more from earlier, it’s not going to be done and shouldn’t be done in piecemeal public releases. That would do everybody a disservice. You cannot take one component of this and say this is what’s being worked on, and then pretend you’re going to adequately meet the needs of anybody. So it’s best done quietly, by your leaders, by their leaders, in a process that is thoughtful, responsible, and at the right time, when it is appropriate, then when the parties decide to, something should and could be made public. But it shouldn’t be done in some daily, weekly tick-tock, and I caution any of you to try to draw conclusions from any leaks or anybody’s partisan statement that reflects some point of view that they’re really pushing for.
This is going to be contained, it’s going to be tightly held, and it’s going to be managed as effectively as possible so that we can try to guarantee a result.

QUESTION: Thank you.

MODERATOR: Anne Gearan, Washington Post.

QUESTION: Thank you, Mr. Secretary. Looking ahead to your meetings in London, will you be meeting with members of the Syrian opposition who are expected to be there? And what is your message for them about any possible movement on new battlefield support, either from you or from any of the other allies you’ll be talking to there?
Also, on Iran, do you expect to be consulting in London about any further sanctions? And lastly, have you seen the report from Iran today that they are reopening two yellowcake mines? Is that a setback? Thank you.

SECRETARY KERRY: Well, the answer is yes, I will be meeting with the Syrian opposition in London, and, yes, we will be discussing various means of having an impact on President Assad’s calculations about where the battlefield is going.
I reiterate: President Obama’s preference – my preference also – is to have a diplomatic solution along the Geneva communiquĂ©’s lines, where you have a legitimate transfer of governing responsibility to an independent entity, and that you try to stop the killing. Now, that’s the first priority. It sounds good. The problem is you can’t get there if President Assad is unwilling to decide that he should transfer that authority, and that’s the current situation. So we are left with no choice but to try to find ways to get him to think differently about what lies in the future. That will be part of the discussion in London and in the ensuing weeks.
I will leave it to the White House. They ought to make any announcements with respect to any stepped-up efforts, but I will say that those efforts have been very much front and center in our discussions in the last week in Washington. And I’m not sure what the schedule is, but I do believe that it’s important for us to try to continue to put the pressure on President Assad and to try to change his calculation. And we’ll see what is forthcoming on that in the days ahead.

QUESTION: On Iran?

SECRETARY KERRY: On Iran, I think it’s fair to say that we were hoping that there would be a more fulsome presentation in Almaty that would have laid out with greater specificity and greater breadth what could have been done to try to reduce the tensions over Iran’s nuclear program. And clearly, any effort – not unlike the DPRK, where Kim Jong-un has decided to reopen his enrichment procedures by rebuilding a facility that had been part of an agreement to destroy – in the same way as that is provocative, to open up yellowcake production and to make any step that increases the rapidity with which you move towards enriched fissile material raises the potential of questions, if not even threat. And I think that is not constructive.

So we will have discussions in London about this, yes. And there will be further discussions in Washington, and we’ll take stock of precisely where we are. But I’ll repeat what I said, and have said in several stops: The clock that is ticking on Iran’s program has a stop moment, and it does not tick interminably. We have said again and again that negotiations are not for the sake of negotiations, they are to make progress. And negotiations cannot be allowed to become a process of delay which in and of itself creates greater danger.

So it is important for the Iranians to make the fundamental choice here: Which direction do they want to move in? If it is a peaceful program, it is very easy to prove it is peaceful. If they want to make the choice to confound that possibility of proving it is peaceful, that is their choice. And President Obama has made it clear he takes no option off the table with respect to what may follow.

Thank you all.

MODERATOR: Oh, sorry, sir.

SECRETARY KERRY: Oh, sorry.

MODERATOR: One more question.

SECRETARY KERRY: Oh, one more.

MODERATOR: The final question is from Abdelraouf Arnaout from al Ayyam.

SECRETARY KERRY: Abdel, thank you.

QUESTION: Hi, Mr. Secretary. I want to ask: We’ve heard from several sources that in your meetings with the parties you proposed two changes to the Arab Peace Initiative, so that this initiative would serve afterwards as a basis for negotiations on borders and security.

Second issue: Just a follow-up for things that you spoke in the beginning; you spoke about economic steps to be taken on the ground. Now the pertinent issue for the Palestinians on the ground is the issue of prisoners. Have you heard anything from the Israelis in this regard?

Thank you.

SECRETARY KERRY: Thank you very much. President Abbas raised the issue of prisoners with me, and he’s very passionate about it, and I understand that passion. And obviously, the issue of prisoners is very, very important to the Palestinians, very, very important to President Abbas. And I am not going to discuss here what I discussed privately with the Prime Minister; I think that’s inappropriate. But suffice it to say that President Abbas made a passionate argument to me about the prisoners, and I think the government in Israel has a full understanding of the potency of that issue.

With respect to --

QUESTION: The Arab Peace Initiative.

SECRETARY KERRY: -- the question of the Arab Peace Initiative, let me make this very clear. I actually am happy to have the question because I’ve wanted to have a chance to clarify a couple of things that I’ve been reading. Number one, no, I have not made any proposals to change it. It’s not my initiative to change; it belongs to King Abdullah and the Kingdom of Saudi Arabia that made the initial proposal, and to the Arabs, the Arab League, and the Arab community that has – Arab and Muslim community that has adopted it. It is a very important initiative, free-standing on its own. And what is important about it is that it suggests in its own language a way forward for the Arab world to make peace with Israel. And as such, it remains a very important statement.

Now, it may not be that in its current format it is a basis for a negotiation or for – it is a – the foundation of the way in which negotiations can take place, but any statement, any document where you have a proposal for peace and where you have dozens of Arab countries, Muslim countries, willing to make peace, needs to be taken at its value and should be respected. And it is an important contribution to the overall dialogue. And that’s the way I think it ought to be reflected.

Now, I will be meeting in a matter of weeks with a delegation from the Arab League that will come to Washington. I’m confident they will want to discuss components of it. But in the end, the parties themselves, Israel and the Palestinians, need to come to the table, and this is a negotiation between them, and they need to work out the details of which agreement they want to work off of, or what language they want to work off of, and where they want to proceed.

Clearly, this is one of the things that I am working on in the context of laying the groundwork so that we can bring people to the table with a clear understanding of what we’re beginning on, of what we’re trying to do, and of where we want to wind up. And those are the things that require time and thought and care. And we will continue, as I said, to do our homework. Others will do their homework, and when we’ve done our homework, I’m confident we’re going to be in a position to be make some progress and move forward.

Thank you all very, very much. Appreciate it.
 

THE OPTIMIZATION OF CELL BASED CENSORS

Photo:  Cells.  Credit:  Wikimedia Commons
FROM: U.S. NAVY
Recruiting Engineered Cells to Work for Warfighters
Date: 4/8/2013 3:27:00 PM
By Katherine H. Crawford, Office of Naval Research

ARLINGTON, Va. (NNS) -- The Office of Naval Research (ONR) launched a collaborative initiative with university researchers April 8 focused on synthetic, or engineered, cells as part of a larger effort to use the smallest units of life to help Sailors and Marines execute their missions.

ONR currently has multiple ongoing projects in the field of synthetic biology, which offers new tools and methods for creating new organisms with specific functions, such as threat monitoring.

Even the simplest cells can have complex functions, such as being able to move in a particular direction or glow in the dark. The idea is to make these capabilities useful to humans by directing their natural functions and adding non-natural functions to a cell's repertoire.

In one instance, ONR is examining synthetic cell circuits, which is a genetic programs designed by scientists either to make a cell perform a certain task or change the way a cell would normally do the task. For example, plants have been engineered to turn white when they detect trinitrotoluene (TNT) as a visual cue to their handlers.

"We're developing better ways to program cells to detect things we're interested in-like explosives-and then communicate that they've found that chemical to a device like a robot," said Dr. Linda Chrisey, ONR program officer for naval biosciences and bio-centric technology. "For example, you could grow these special cells on a silicon chip that's part of a robot. When the cells detect something and respond, they would communicate this information to the 'mother ship'-the autonomous robot system."

One of ONR's biggest successes to date was a TNT-detecting plant. This "plant sentinel" transitioned to the Defense Threat Reduction Agency and Department of Homeland Security in 2010. A small company was founded to modify this plant for other applications, such as chemical warfare detection and crop security.

"The grand plan is to try and take advantage of the natural capabilities of microbes to collect chemical and physical signal information of different types and process this information," Chrisey said. "We already make a lot of medicines and industrial products using cells and engineered cells. Synthetic biology is going to smarten that process up, make it less susceptible to failure and save money by allowing us greater control of the engineered cells."

Another initiative is looking at microbes that use carbon dioxide and electrical current for their metabolism and programming them to make liquid fuels.

"Eventually, in a remote location, with just a vial of these organisms and materials that most people consider to be waste products, Sailors and Marines could potentially make organic compounds, such as fuel, medicine or polymers, on demand, even under austere conditions," Chrisey said.

In the long term, synthetic circuits offer possibilities for enabling new methods for manufacturing. These new processes can be used: to make certain products, such as biofuels, pharmaceuticals and specialty chemicals; as medical devices and therapies for infection control, regenerating tissues and disease treatment; as environmental sensors and pollution treatments; and for micro-robotic systems.

The Multidisciplinary University Initiative (MURI) launched today, "Next-generation genetic devices: Model-guided Discovery and Optimization of Cell-Based Sensors," is aimed at applying tools from synthetic biology to construct high-performance and robust genetic sensors that respond to non-natural signals, such as non-visible wavelengths of light (ultraviolet and infrared) and magnetic fields.

This program is expected to contribute to the development of "smart" hybrid biological-robotic systems that will detect threats in the environment. The universities involved are the Massachusetts Institute of Technology, Penn State, Rice University, Rutgers University, California Institute of Technology and University of Minnesota.

MURI efforts involve teams of researchers investigating high-priority topics and opportunities that involve more than one technical area. This multidisciplinary approach often stimulates innovations, accelerates research progress and expedites transition of results into naval applications.


SECRETARY OF STATE KERRY AND ISRAELI PRIME MINISTER NETANYAHU MAKE REMARKS BEFORE MEETING

FROM: U.S. STATE DEPARTMENT
Remarks With Israeli Prime Minister Benjamin Netanyahu Before Their Meeting

Remarks
John Kerry
Secretary of State
David Citadel Hotel
Jerusalem
April 9, 2013

SECRETARY KERRY:
I want to thank Prime Minister Netanyahu for, first of all, his extraordinary hospitality yet again. We had an extremely friendly, very productive, long discussion last night. I think it’s fair to say that we made progress, that we were pleased with the substance of the discussion and agreed, each of us, to do some homework. And we’re going to do our homework over the course of the next weeks, and today we’re going to continue some of that discussion with a view to seeing how we can really pull all of the pieces together and make some progress here. And I want to thank the Prime Minister for his good-faith efforts here. It’s been serious, it’s been focused, and I would characterize it as very productive.

PRIME MINISTER NETANYAHU: Thank you. Thank you, John. It’s good to see you again in Jerusalem and to work at our common goal for peace. I am determined to not only to resume the peace process with the Palestinians but to make a serious effort to end this conflict once and for all. This has economic components. We welcome any initiatives that you and others will bring forward in this regard. But it also has a political component, political discussions that will address a myriad of issues. Foremost in our minds are questions of recognition and security. This is a real effort, and we look forward to advance in this effort with you.

We’ve been talking about several other issues, and I’ll only mention two. First, we’ve been talking about Syria and the human tragedy there. But the fragmentation of that country is creating a situation where one of the most dangerous stockpiles of weapons in the world is now becoming accessible to terrorists of every shade and hue. This is of great concern for both of us, for both the United States and Israel, and we are talking about addressing this problem specifically.

And last, and certainly not least, we’ve been talking about Iran. I think everybody understands that Iran has been running out the clock, has been using the talks to continue to advance its nuclear program. You’ve just heard by Iranian state television about a new production facility for nuclear material and two new extraction sites. I think we also understand what it means for the world to have rogue states with nuclear weapons. Iran cannot be allowed to cross into that world. It cannot be allowed to continue its program, its nuclear weapons program, and we must not allow it to continue to do so in defiance of the entire international community.

These are the three most obvious subjects we’ve been talking about. You may not believe it, but we’ve actually talked about a few others as well. It’s good to see you again.

SECRETARY KERRY: Thank you very much.

PRIME MINISTER NETANYAHU: Thank you for everything. Thank you.

SECRETARY KERRY: Thank you. Could I just add very quickly one thing? We have been talking about some economic initiative, but I think both of us – and the Prime Minister just said this – we want to make it absolutely clear that whatever steps we take with respect to economics are in no way a substitute but they are in addition to the political track. The political track is first and foremost; other things may happen to supplement it.

Secondly, with respect to Iran, I have reiterated to the Prime Minister, as I did yesterday to the President, President Obama could not be more clear: Iran cannot have and will not have a nuclear weapon. And the United States of America has made clear that we stand not just with Israel but with the entire international community in making it clear that we are serious, we are open to negotiation, but it is not an open-ended, endless negotiation; it cannot be used as an excuse for other efforts to try to break out with respect to a nuclear weapon. And we are well aware and coordinating very, very closely with respect to all of our assessments regarding that. But President Obama doesn’t bluff; he’s made that very clear to me. And we hope the Iranians will come back to the table with a very serious proposal.

Thank you.

U.S. ,MARSHALS SERVICE REPORTS ABDUCTED TEXAS CHILD FOUND

FROM: U.S. MARSHALS SERVICE
Child Abducted from Robertson County Recovered in New Mexico

 Waco, TX
– The United States Marshals Service’s Lone Star Fugitive Task Force is pleased to announce that on April 2, 2013, an abducted child from Robertson County, TX, was found near Silver City, New Mexico.

In August 2012, Brian Keith Moore, 29, and Madeline McCartney-Moore, 26, abducted their biological child, 6, during a court ordered week long visitation. When the Moore’s failed to return the child to the legal guardians, Timothy and Tracey Moore, the guardians contacted the Robertson County Sheriff’s Office. The investigation by the Sheriff’s Office revealed that the Brian and Madeline Moore had moved out of their home near Hearne, TX; turned their livestock loose on the streets; turned off utilities and closed bank accounts. It was suspected that the family was being assisted by Michael McCartney, Madeline McCartney-Moore’s father and grandfather to the child.

The Robertson County Sheriff’s Office sought and received felony arrest warrants for Brian Moore and Madeline McCartney-Moore for Violation of Court Order. The Sheriff’s Office also requested the assistance from the U.S. Marshals Service because it was believed that the Moore’s had left the state. The Sheriff’s Office also registered the child as an abducted child with NCMEC, the National Center for Missing and Exploited Children.

In February 2013, the Robertson County Sheriff’s Office received information that Michael McCartney had contacted a friend or family member by phone. The person passed on the information to the investigator. This break allowed investigators to focus on the western New Mexico and eastern Arizona area. On February 1, 2013, the investigators discovered that the family had shopped at a local grocery store in Show Low, Arizona. Video surveillance footage showed that Michael McCartney and the abducted child were together along with all the other family members. With that information, the Robertson County Sheriff’s Office sought and received a felony arrest warrant for Michael McCartney charging him with Interference with Child Custody.

On April 2, 2013, investigators received information that the Moore’s may be staying in an area between Silver City, NM and Santa Clara, NM. Investigators located vehicles owned and utilized by the family on Camino Oro Road in rural Grant County, NM. After hours of surveillance, Grant County Sheriff’s Office deputies and U.S. Marshal’s Service deputies approached the trailer where Brian Moore was seen coming and going earlier in the evening. When investigators made entry into the trailer, investigators found the abducted child along with Brian Moore, Madeline McCartney-Moore and Michael McCartney. The child was unharmed and was taken into protective custody. Brian, Madeline and Michael were all arrested and taken to the Grant County Jail, Silver City, NM, where they await extradition back to Central Texas. Brian and Madeline Moore’s two other children were turned over to Child Protective Services.

"Crimes against children will not be tolerated at any level, and we will continue to utilize our state, local and federal partners and all of our national resources to protect our children", U.S. Marshal for the Western District of Texas, Robert Almonte said.

FEMA AWARDS GRANT TO VILLAGE OF WHITEFISH BAY WI TO UPGRADE SEWER SYSTEM

FROM: FEDERAL EMERGENCY MANGEMENT AGENCY
FEMA Awards $3.1 Million Grant to the Village of Whitefish Bay: Hazard Mitigation Grant Program funds will be used for the upgrade of storm sewer system

Release date:
April 5, 2013

CHICAGO – The U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) today approved $3,143,531 in Hazard Mitigation Grant Program (HMGP) funds to the village of Whitefish Bay, Wis., for the upgrading of several storm sewers, including the construction of a dry detention basin to alleviate flooding to nearby properties.

"The Hazard Mitigation Grant Program enables communities to implement critical mitigation measures to reduce the risk of loss of life and property," said FEMA Region V Administrator Andrew Velasquez III. "The improvement to the storm water system will reduce flood damage to nearby homes and other structures, thereby reducing the financial impact on individuals and the community."

"This is the largest construction projected funded through the Hazard Mitigation Grant Program in Wisconsin," said Wisconsin Emergency Management Administrator Brian Satula. "The flooding in 2010 demonstrated the need for improvements to prevent future flood damage to homes in the area."

HMGP provides grants to state and local governments to implement long-term hazard mitigation measures. Through HMGP, FEMA will pay $3,143,531, or 75 percent of the project’s total cost. Wisconsin Emergency Management and the village of Whitefish Bay will each contribute 12.5 percent of the funds, or $523,922 each.

FEMA’s mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.

ISAF NEWS FROM AFGHANISTAN FOR APRIL 8, 2013


U.S. soldiers provide security for U.S. engineers and Afghan soldiers during a road construction project in the Panjwai district of Afghanistan’s Kandahar province, March 28, 2013. The soldiers are assigned to the 2nd Infantry Division's 1st Battalion, 38th Infantry Regiment, 4th Stryker Brigade Combat Team and the engineers are assigned to the 229th Engineer Company of the Wisconsin Army National Guard. U.S. Army photo by Sgt. Kimberly Hackbarth

FROM: U.S. DEPARTMENT OF DEFENSE
Combined Afghan, Coalition Force Arrests Facilitator
From an International Security Assistance Force Joint Command News Release

KABUL, Afghanistan, April 8, 2013 - A combined Afghan and coalition security force killed Islamic Movement of Uzbekistan facilitator Juma Khan in the Ishkamish district of Afghanistan's Takhar province today, military officials reported.

Khan used his home as a staging point for terrorists, offering a safe haven and weapons storage for fighters as they prepared for attacks against Afghan and coalition forces, officials said. He also had a history of procuring and distributing weapons and ammunition to insurgents.

The security force also seized several grenades, an assault rifle with magazines, a pistol belt with magazines and ammunition, officials said.

During another operation today in the Ishkamish district, a combined force arrested a facilitator with ties to the Taliban and the Islamic Movement of Uzbekistan.

The facilitator owns a home suspected of being used exclusively for building and distributing IEDs. He also is believed to be heavily involved in generating funding for the insurgency.

In other news, the provincial response company in Wardak province, aided by coalition forces, detained known insurgent Juma Gul in the province's Jalrez district April 6.

Monday, April 8, 2013

FLOUR HANFORD AGREES TO PAY OVER $1 MILLION TO RESOLVE ALLEGED LOBBYING PROBLEMS

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, April 3, 2013
Fluor Hanford Agrees to Pay $1.1 Million to Resolve Allegations of Improper Lobbying

The Justice Department announced today that Fluor Hanford LLC has agreed to pay $1.1 million to settle allegations that Fluor violated the False Claims Act by using federal funds for lobbying. Fluor is a Department of Energy (DOE) contractor that performs management and engineering services at the DOE’s Hanford Nuclear Site in eastern Washington. Fluor’s parent company, Fluor Corporation, is headquartered in Texas and performs engineering, construction and personnel services for commercial and government customers.

Between 2005 and 2009, Fluor contracted with the DOE to manage and operate the Hazardous Materials Management and Emergency Response (HAMMER) Center. The HAMMER Center provides homeland security and emergency response training to first responders and law enforcement personnel. Fluor allegedly used DOE funds to lobby Congress and other federal officials to increase funding for the HAMMER Center, in violation of a federal law known as the Byrd Amendment, which prohibits the use of federal funds for lobbying.

"The money allocated by Congress for this program was designed to train first responders and law enforcement personnel to respond to crisis situations, not to lobby Congress for more funding," said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice. "This resolution demonstrates that the Justice Department will work to ensure that public funds are not used to influence legislation."

"The cleanup efforts at Hanford are too important to have prime contractors who misuse government funds to lobby for more government funds," said Michael C. Ormsby, U.S. Attorney for the Eastern District of Washington. "We are pleased that Fluor has settled these allegations and hope that this serves as a reminder to all prime contractors at Hanford that they must be good stewards of tax payer dollars."

The allegations resolved by today’s settlement were initially alleged in a whistleblower lawsuit filed under the False Claims Act by Loydene Rambo, a former employee of Fluor. Under the False Claims Act, private whistleblowers can sue on behalf of the United States for false claims. The United States has the right to take over the action, as it did here. The whistleblower is entitled to a share of any recovery. Rambo will receive $200,000 of the government’s settlement.

This case was handled by the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Washington, with investigative assistance provided by the Department of Energy’s Office of Inspector General.

The False Claims Act suit was filed in the U.S. District Court for the Eastern District of Washington, and is captioned United States ex rel. Rambo v. Fluor Hanford, LLC et al., No. cv-11-5037 (E.D. Wash.). The claims settled in this case are allegations only; there has been no determination of liability.

Press Briefing | The White House

Press Briefing | The White House

U.S. State Department Daily Press Briefing - April 8, 2013

Daily Press Briefing - April 8, 2013

SECRETARY OF STATE KERRY'S STATEMENT ON THE DEATH OF MARGARET THATCHER

FROM: U.S. DEPARTMENT OF STATE
Press Statement
John Kerry
Secretary of State
Washington, DC
April 8, 2013

STATEMENT BY SECRETARY KERRY

Death of Margaret Thatcher


I was saddened to learn of Baroness Thatcher’s passing, and Teresa and I join millions across the United Kingdom and around the world in mourning her loss and celebrating her life. We pray especially for Carol and Mark and their families. The United States has lost a dear friend, and the world has lost a transformative leader who broke the glass ceiling in global politics. With her characteristic determination, she defined grit on the world stage and grace in the face of advancing age and illness.

Lady Thatcher took the helm of government amid tumultuous times. She would face wars abroad, terrorism at home, and deep uncertainty about the United Kingdom’s future. She met all these challenges and many others with unyielding drive and courage.

We celebrate especially the way, with a hand outstretched across the Atlantic, Lady Thatcher strengthened the Special Relationship between the United States and the United Kingdom—a relationship that remains a driving force for freedom, justice, and democracy. In 1985, when I was a newly sworn Senator, Prime Minister Thatcher spoke to our Congress. The threat of a Soviet Empire she warned against has given way to a new set of global challenges, but our alliance with the United Kingdom remains an unrivaled source of strength in today’s challenges from Afghanistan to Syria.

 

RESTRUCTURE AND THE U.S. AIR FORCE SPACE COMMAND

FROM: U.S. AIR FORCE SPACE COMMAND

Space mission continues despite restructure

4/2/2013 - PETERSON AIR FORCE BASE, Colo. (AFPS) -- Critical Air Force missions continue from their current locations after today's restructure of Air Force Space Command's Space Innovation and Development Center at Schriever AFB, Colo.

The SIDC restructure and realignment of subordinate organizations is part of the Air Force response to meet future challenges by balancing and realigning like missions to AFSPC and to Air Combat Command's U.S. Air Force Warfare Center at Nellis AFB, Nev. The Secretary of the Air Force and Chief of Staff of the Air Force announced to Congress in November 2011 the Air Force intent to restructure the SIDC.

AFSPC and ACC jointly restructured the Space Innovation and Development Center as part of an ongoing Air Force effort to increase efficiencies, reduce overhead and eliminate redundancy. Effective today, the existing SIDC structure will transition to become several

Operating Locations at Schriever AFB under ACC's United States Air Force Warfare Center, headquartered at Nellis Air Force Base, Nev. The Air Force Tactical Exploitation of National Capabilities program, the Distributed Mission Operations Center - Space, the 17th Test Squadron, and the 25th Space Range Squadron will transfer to USAFWC but will remain operational at Schriever AFB.

The 595th Space Group and its 595th Operations Support Flight will inactivate. The 3rd Space Experimentation Squadron will remain in AFSPC but transfer to the 50th Operations Group at Schriever AFB.

The Advanced Space Operations School will become a Field Operating Agency reporting directly to the AFSPC Director of Air, Space and Cyberspace Operations. ASoPS has relocated to Peterson AFB and resides in the new Moorman Space Education and Training Center.

Airmen and civilians assigned to SIDC are responsible to fully integrate space capabilities into the operational battlespace. Their mission is to advance full-spectrum warfare through rapid innovation, integration, training, testing and experimentation.

Early in the planning stages, 106 SIDC Air Force civilian employee positions were identified as surplus in an effort to increase efficiencies, reduce overhead and eliminate redundancy.

Beginning in the fall of 2011, local Air Force civilian personnel offices began offering the first of two rounds of Voluntary Early Retirement Authority/Voluntary Separation Incentive Payments.

These programs were offered to all eligible employees in identified positions who wanted to retire early or be offered a financial incentive to leave their position. In addition to VERA/VSIP,

Air Force leaders have been working diligently to reassign personnel to valid vacant positions.
As of today, approximately 20 employees are still in identified surplus positions. Civilian personnel offices and local leadership are working to offer management reassignment beyond Schriever AFB and considering additional efforts to support the remaining employees.

SIDC organizations work together to conduct wargaming; integrate space into exercises and experiments; rapidly prototype, field and exploit integrated air, space and cyberspace capabilities; provide advanced space testing, training and range Infrastructure; and execute
AFSPC Force Development Evaluation and Operational Test programs.

The USAFWC is the sole Air Force organization responsible to facilitate development and integration of operational and tactical warfighting capabilities for all Air and Space Component Commanders. Based on USAFWC's mission, ACC and AFSPC agreed that aside from specified space-centric missions, the bulk of SIDC's responsibilities best fit under USAFWC as the Air Force's sole Warfare Center with responsibility to support all major commands.
Aligning like missions under a single headquarters allows the missions to better respond to future Air Force requirements.

The SIDC realignment and restructure is not related to sequestration actions, nor the current budget climate.


 

Drei Jahre CryoSat: Das neue Bild vom irdischen Eis

Drei Jahre CryoSat: Das neue Bild vom irdischen Eis

THE THEORY OF RELATIVITY DEMOSTRATED BY STARS

 

FROM: NASA

This artist's animation depicts an ultra-dense dead star, called a white dwarf, passing in front of a small red star. As the white dwarf crosses in front, its gravity is so great that it bends and magnifies the light of the red star.

NASA's planet-hunting Kepler space telescope was able to detect this effect, called gravitational lensing, not through direct imaging, but by measuring a strangely subtle dip in the star's brightness.

The red dwarf star is cooler and redder than our yellow sun. Its companion is a white dwarf, the burnt-out core of a star that used to be like our sun. Though the white dwarf is about the same diameter as Earth, 40 times smaller than the red dwarf, it is slightly more massive. The two objects circle around each other, but because the red dwarf is a bit less massive, it technically orbits the white dwarf.

Kepler is designed to look for planets by monitoring the brightness of stars. If planets cross in front of the stars, the starlight will periodically dip. In this case, the passing object turned out to be a white dwarf not a planet. The finding was serendipitous for astronomers because it allowed them to measure the tiny "gravitational lensing" effect of the white dwarf, a rarely observed phenomenon and a test of Einstein's theory of relativity. These data also helped to precisely measure the white dwarf's mass.

Image credit: NASA/JPL-Caltech

UK COMPANY ALLEGEDLY TARGETED THE RELIGIOUS WITH INVESTOR FRAUD

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

SEC Obtains Temporary Restraining Order Against Uk Company Operating Fraudulent Profitable Sunrise Internet Scheme and Names Czech Companies as Relief Defendants

On April 4, 2013, the U.S. Securities and Exchange Commission filed an enforcement action against Inter Reef Ltd., doing business as Profitable Sunrise, as a defendant and Melland Company S.R.O., Color Shock S.R.O., Solutions Company S.R.O. and Fortuna-K S.R.O. as relief defendants. The Commission’s complaint was filed in the United States District Court for the Northern District of Georgia.

The Commission’s complaint alleges that Inter Reef, located in the United Kingdom, has operated a fraudulent securities offering over the internet under the name of "Profitable Sunrise" that has been targeted towards investors in the United States. Through its website, promoters and social media, Profitable Sunrise promised investors returns of between 1.6% and 2.7% per business day, compounded daily, on funds invested in various programs that were purportedly to be used to provide loans to businesses at even higher rates. Investors have been encouraged to recruit others for the scheme with promises of percentages of the amounts put in by the new investors. Among other things, the Commission’s complaint alleges that the Profitable Sunrise has promised impossibly high rates of return and misrepresented that investments in the program were insured by a leading investment bank. The fraud appears to have been targeted at religious investors, as Profitable Sunrise’s website contained several Bible verses and the company purported to make frequent charitable donations.

Melland, Color Shock, Solutions Company and Fortuna-K are Czech companies that the Commission alleges have received funds from investors in the United States through transfers at the direction of Profitable Sunrise. At present, a bank account in the name of Color Shock in Hungary has been frozen by authorities there. The Commission has named these Czech companies as relief defendants because they have no right to retain the funds sent to their accounts by investors.

Shortly after the Commission filed its complaint, the Honorable Thomas W. Thrash issued an order granting a temporary restraining order against Inter Reef along with an order directing an accounting, allowing expedited discovery, preventing the destruction of documents and providing for an asset freeze. The Commission may seek additional relief, such as preliminary and permanent injunctions, disgorgement of any ill-gotten gains with prejudgment interest and civil penalties, at a later time. The court’s order also freezes the assets of the relief defendants.

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