SECRETARY OF STATE KERRY'S PRESS STATEMENT ON SAUDI ARABIA AND THE UN CENTRE ON COUNTERTERRORISM

FROM:  U.S. STATE DEPARTMENT
Saudi Arabia's Contribution to the UN Centre on Counterterrorism
Press Statement
John Kerry
Secretary of State
Washington, DC
August 8, 2013

We welcome and applaud today’s $100 million donation by His Majesty King Abdullah, on behalf of the Kingdom of Saudi Arabia, to the UN Centre on Counterterrorism (UNCCT).

His Majesty’s generous donation, on the occasion of Eid al Fitr, demonstrates once again the Kingdom’s commitment to supporting multilateral institutions and strengthening international cooperation on counterterrorism.

With these funds, we hope that the UN Counterterrorism Implementation Task Force (UNCTITF), of which the Centre is a critical component, can intensify its work to provide countries with the long-term capacity building support they need to implement the UN Global Counterterrorism Strategy.

WHERE DISEASES AND CLIMATE CHANGE INTERSECT

Rat Eating Seeds.  Credit:  Wikimedia.

FROM:  NATIONAL SCIENCE FOUNDATION

Infectious diseases and climate change intersect with no simple answers
Climate change is already affecting the spread of infectious diseases--and human health and biodiversity worldwide--according to disease ecologists reporting research results in this week's issue of the journal Science.

Modeling disease outcomes from host and parasite responses to climate variables, they say, could help public health officials and environmental managers address the challenges posed by the changing landscape of infectious disease.

"Earth's changing climate and the global spread of infectious diseases are threatening human health, agriculture and wildlife," said Sam Scheiner, National Science Foundation (NSF) program director for the joint NSF-National Institutes of Health Ecology and Evolution of Infectious Diseases Program, which funded the research.

"Solving these problems requires a comprehensive approach that unites scientists from biology, the geosciences and the social sciences."

According to lead author Sonia Altizer of the University of Georgia, the issue of climate change and disease has provoked intense debate over the last decade, particularly in the case of diseases that affect humans.

In the Science paper, Altizer and her colleagues--Richard Ostfeld of the Cary Institute of Ecosystem Studies; Pieter Johnson of the University of Colorado; Susan Kutz of the University of Calgary and Canadian Cooperative Wildlife Health Centre; and Drew Harvell of Cornell University--laid out an agenda for future research and action.

"For a lot of human diseases, responses to climate change depend on the wealth of nations, healthcare infrastructure, and the ability to take mitigating measures," Altizer said.

"The climate signal, in many cases, is hard to tease apart from other factors like vector control, and vaccine and drug availability."

In diseases affecting wildlife and agricultural ecosystems, however, findings show that climate warming is already causing changes.

"In many cases, we're seeing an increase in disease and parasitism," Altizer said. "But the effect of climate change on these disease relationships depends on the physiology of the organisms and on the structure of natural communities."

At the organism level, climate change can alter the physiology of parasites. Some of the clearest examples are found in the Arctic, where temperatures are rising rapidly. Parasites are developing faster as a result. A lungworm that affects muskoxen, for instance, may be transmitted over a longer period each summer, making it a more serious problem for the populations it infects.

Climate change is also affecting entire plant and animal communities.

Community-level responses to rising temperatures are evident in tropical marine environments such as the coral reef ecosystems of the Caribbean. Warmer water temperatures have directly stressed corals and facilitated infections by pathogenic fungi and bacteria. When corals succumb, other species that depend on them are affected.

The potential consequences of these changes are serious. The combination of warmer temperatures and altered disease patterns is placing growing numbers of species at risk of extinction, the scientists say.

In human health, there is a direct risk from pathogens like dengue, malaria and cholera. All are linked to warmer temperatures.

Indirect risks also exist in threats to agricultural systems and game species that are crucial for subsistence and cultural activities.

The scientists recommend building on and expanding data on the physiological responses of hosts and parasites to temperature change. Those mechanisms may offer clues to how a system will respond to climate warming.

"We'd like to be able to predict, for example, that if the climate warms by a certain amount, then in a particular host-parasite system we might see an increase from one to two disease transmission cycles each year," Altizer said.

"But we'd also like to try to tie these predictions to actions that might be taken."

Some of those actions might involve more monitoring and surveillance, adjusting the timing of vector control measures and adopting new management measures.

These could include, for instance, closing coral reefs to human activity if a disease outbreak is predicted, or changing the planting strategy for crops to compensate for unusually high risks of certain diseases.

The researchers also point out that certain local human communities, such as those of indigenous peoples in the Arctic, could be disproportionately affected by climate-disease interactions.

Predicting where these local-scale effects might be most intense would allow societies to take measures to address issues such as health and food security.

"Involving local communities in disease surveillance," said Altizer, "could become essential."

DOCTOR AND OWNER OF MICHIGAN ONCOLOGY CENTERS CHARGED IN $35 MILLION MEDICARE FRAUD SCHEME

FROM:  U.S. DEPARTMENT OF JUSTICE

Tuesday, August 6, 2013

Oakland County Doctor and Owner of Michigan Hematology and Oncology Centers Charged in $35 Million Medicare Fraud Scheme

Dr. Farid Fata, 48, of Oakland Township, Michigan, was arrested this morning and charged in a criminal complaint for his role in a health care fraud scheme which involved submitting false claims to Medicare for services that were medically unnecessary, including chemotherapy treatments.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, FBI Special Agent in Charge Robert D. Foley III and Special Agent in Charge Lamont Pugh of the Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

“Dr. Fata allegedly perpetrated a brazen and dangerous fraud that time and again jeopardized his patients’ wellbeing,” said Acting Assistant Attorney General Raman. “The conduct alleged today is chilling, with the defendant endangering patient safety through misdiagnoses, over- or mis-prescription of chemotherapy and other treatments, and delay of hospital care for patients with serious injuries.  Through the work of our dedicated prosecutors and agents, today we have taken swift action to safeguard patient safety and hold the defendant to account.”

“Our first priority is patient care,” said U.S. Attorney McQuade. “The agents and attorneys acted with great attention to detail to stop these allegedly dangerous practices as quickly as possible, and we have set up a victim hotline so that patients can access their files and get questions answered.”

“Violating a patient's trust and placing them at risk through fraudulent abuse of our nation's health care system is deplorable and a crime which the FBI takes most seriously,” said FBI Special Agent in Charge Foley. “The FBI remains committed to the arrest and prosecution of those who commit health care fraud.”

“The conduct alleged in this complaint is serious, not only in terms of potential Medicare dollars improperly obtained, but patient safety as well,” said HHS-OIG Special Agent in Charge Pugh.  “The OIG will aggressively investigate allegations of this nature in order to ensure the safety of Medicare patients and to protect vital taxpayer dollars.”

According to the complaint, Dr. Fata owns and operates Michigan Hematology Oncology Centers (MHO), which has offices in Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park.  It was through MHO that Dr. Fata allegedly submitted fraudulent claims to Medicare for medically unnecessary services, including chemotherapy treatments, Positron Emission Tomograph (PET) scans and a variety of cancer and hematology treatments for patients who did not need them.  In the course of the scheme, Dr. Fata falsified and directed others to falsify documents to justify cancer treatments for billing purposes.  MHO billed Medicare for approximately $35 million dollars over a two-year period, approximately $25 million of which is attributable to Dr. Fata.

The complaint further alleges that Dr. Fata directed the administration of unnecessary chemotherapy to patients in remission; deliberate misdiagnoses of patients as having cancer to justify unnecessary cancer treatment; administration of chemotherapy to end-of-life patients who would not have benefitted from the treatment; deliberate misdiagnoses of patients without cancer to justify expensive testing; fabrication of other diagnoses such as anemia and fatigue to justify unnecessary hematology treatments, and distribution of controlled substances to patients without medical necessity or through administering the drugs at dangerous levels.

Dr. Fata will be making his initial appearance in federal court this afternoon at 1 p.m. in Detroit.

Patients who have questions concerning their medical records and/or information regarding this investigation and prosecution can call the United States Attorney’s Office Information Line at 888-702-0553.

The case is being prosecuted by Assistant Chief Catherine Dick, supervisor of the Detroit Medicare Fraud Strike Force and Trial Attorney Matthew Thuesen of the Department of Justice as well as Sarah Resnick Cohen, Deputy Chief of the Health Care Fraud Unit at the U.S. Attorney’s Office, and Justin Bidwell, Special Assistant United States Attorney.  The investigations were conducted jointly by the FBI and HHS-OIG, along with the assistance of the Michigan Attorney General’s Office.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion.  In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

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LANL ANNOUNCES EXPRESS LICENSING PROGRAM FOR NEW TECHNOLOGY

FROM:  LOS ALAMOS NATIONAL LABORATORY 

Los Alamos National Laboratory announces Express Licensing program

Streamlined procedure speeds business access to new technology

LOS ALAMOS, N.M., August 1, 2013—With the launch of a new “Express Licensing” program, access to innovative technology invented at Los Alamos National Laboratory (LANL) has gotten easier. The new licensing alternative was announced today by David Pesiri, director of LANL’s Technology Transfer Division.

“The Express License program offers an additional licensing resource for local entrepreneurs as well as national collaborators,” Pesiri said. “Our licensing and software teams have worked very hard to offer this specialized model for those wanting to quickly license Los Alamos technology.”

The Express Licensing program at LANL is the first of several new initiatives under development by the Technology Transfer Division (TT) at Los Alamos that should streamline access to LANL innovations by potential partners and customers.

“The primary goal of our first new commercialization initiative, the Express Licensing program, is to provide easy access to Los Alamos technologies and expedite the licensing process,” said Laura Barber, licensing manager at LANL. “This program will provide an accelerated, streamlined process for non-exclusive licensing of patents and software at LANL, with favorable, pre-established terms that eliminate time-consuming negotiations. Many of the software packages are freely available as either executable downloads or open-source software and may be accessed online with the click of a mouse.”

“By making access to LANL technologies faster, easier and more valuable to our partners, this initiative moves us closer to our broader goal of getting Los Alamos innovations into the hands of the experts in the marketplace and elsewhere who can make an impact,” Pesiri said.

FDA WORKS TO UNDERSTAND THE SAFETY OF ANESTHESIA FOR INFANTS AND YOUNG CHILDREN

FROM:  U.S. FOOD AND DRUG ADMINISTRATION 
When infants or young children need surgery, does anesthesia affect their developing brains?

With more than 1 million children under age 4 requiring anesthesia for surgery in the United States each year, the Food and Drug Administration (FDA) and other health organizations are working together to answer this question.

Previous scientific studies in young animals have shown that commonly used anesthetics can be harmful to the developing brain. However, results have been mixed in children. Some studies of infants and young children undergoing anesthesia have reported long-term deficits in learning and behavior; other studies have not.

These conflicting results show that more research is needed to fully understand the risks anesthesia may pose to very young patients.

To close these research gaps, FDA and the International Anesthesia Research Society (IARS) started an initiative called SmartTots (Strategies for Mitigating Anesthesia-Related neuroToxicity in Tots). SmartTots seeks to ensure that children under age 4 will be as safe as possible when they need anesthesia during surgery. Studies have shown that this is a period of significant brain development in young children.

"Our hope is that research funded through SmartTots will help us design the safest anesthetic regimens possible," says Bob Rappaport, M.D., director of the Division of Anesthesia, Analgesia and Addiction Products at FDA. "This research can potentially foster the development of new and safer anesthetic drugs for use in pediatric medicine."

According to SmartTots steering committee co-chair James Ramsay, M.D., young children usually do not undergo surgery unless the procedure is vital to their health. "Therefore, postponing a necessary procedure may itself lead to significant health problems and may not be an option for the majority of children," Ramsey says.

FORMER FUGITIVE SENTENCED FOR ROLE IN FORECLOSURE SCAM

FROM:  U.S. DEPARTMENT OF JUSTICE 
Monday, August 5, 2013
Former Federal Fugitive Sentenced in California for Nationwide Foreclosure Scam

Collected More Than $1.2 Million from More Than 800 Distressed Homeowners
Glen Alan Ward, 48, a former Los Angeles resident who fled to Canada and was a federal fugitive for 12 years, was sentenced today to serve 132 months in prison for aggravated identity theft and bankruptcy fraud in connection with his leading role in a nearly 15-year foreclosure-rescue scam that fraudulently postponed foreclosure sales for more than 800 distressed homeowners.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, 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 Special Inspector General for the Troubled Asset Relief Program Christy Romero made the announcement.

Ward was sentenced by U.S. District Judge Dale S. Fischer in the Central District of California.  In addition to his prison term, Ward was sentenced to serve three years of supervised release and ordered to pay approximately $60,000 in restitution.

Ward pleaded guilty on April 8, 2013, 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 on his guilty plea 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.

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 from his clients who paid for his illegal foreclosure-delay services more than $1.2 million.

The investigation was conducted by the Office of the Special Inspector General for the Troubled Asset Relief Program and the FBI, which received substantial assistance from the U.S. Trustee’s Office.  In addition, the Office of International Affairs of the Department of Justice, Canadian Waterloo Regional Police Service and Royal Canadian Mounted Police provided exceptional support and assistance in connection with Ward’s arrest and extradition.

This case was prosecuted by Assistant U.S. Attorney Evan Davis of the U.S. Attorney’s Office for the Central District of California with assistance from the Criminal Division’s Fraud Section.  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.

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. Attorney’s offices and state and local partners, it is 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.

STATE DEPARTMENT PROGRAM PROMOTING GOVERNMENT ACCOUNTABILITY

FROM  U.S. DEPARTMENT OF STATE
Promoting Greater Government Accountability Through the Extractive Industries Transparency Initiative
POSTED BY ROBERT F. CEKUTA
AUGUST 2, 2013

Last week was an important one here in Washington for the Extractive Industries Transparency Initiative (EITI), an international group that countries can join to promote accountability in the management of payments countries receive from oil, gas, and mining activities.  While the United States has long supported the EITI as a donor, we have committed to joining the initiative as an implementing member and taking on the same obligations to boost transparency as other countries around the globe (USEITI).  This step by the United States is a strong sign of the growing momentum towards greater transparency and accountability apparent in the world today.

The team of U.S. government, civil society, and company representatives that is charged with implementing USEITI met last week and discussed these developments with Clare Short, Chair of the international EITI Board (and former UK Development Minister).

I have the great pleasure of serving with Clare on the international EITI Board, where we worked hard to develop a set of changes in the EITI rules to enable the Initiative to have a greater impact benefiting citizens of the 39 member countries.  It was not easy for the Board to agree on these changes and there were many strongly held points of view.  After months of work and debate, we succeeded and the resulting consensus sets out a strong sense of what EITI should stand for and how to put in place systems to boost the government transparency and accountability that EITI seeks to promote.

In June, President Obama and all the G8 Leaders strongly supported this work.  Their Lough Erne Summit statement references the EITI eleven times, which is a remarkable sign not only of how truly widely supported the EITI has become, but also of the growing awareness of the connection between sound governance, the ability of countries to attract capital, and economic prosperity.  Several of our G8 partners – the UK, France, Germany, and Italy – are following the United States’ example by committing to implement or pilot the EITI at home.  Other countries that have recently committed, including Colombia and Papua New Guinea, will also be looking to our domestic USEITI process for lessons learned.

So it is in this context that it was truly special to have Clare join us to see the USEITI process in action.  Just as the international EITI Board discussed EITI’s goals at an international level, the USEITI representatives are working through what meaning EITI will have inside the United States.  This group representing various American stakeholders is showing the Initiative’s goals are important and applicable to countries that already consider themselves quite transparent.

The work here underlines that EITI is about much more than just meeting the Initiative’s core requirement to publish reports matching company payments to government receipts.  The USEITI discussions are highlighting that it is about bringing diverse groups together to identify what additional information the partners can make available to be even more transparent, and how to communicate accurate and timely information to the public about how the government is managing our oil, gas, and mining resources.  In many cases it is even about pulling together and putting into context information that is already available, in order to help the average citizen hold their government accountable for responsible extractive sector management.  And it will be important in many countries around in the world in seeing that the development of their natural resources benefits their people.

FORMER FBI SPECIAL AGENT CHARGED WITH BRIBERY

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, August 2, 2013
Former FBI Special Agent and Two Co-Conspirators Charged with Bribery Scheme

A former FBI agent and two others have been charged in the Southern District of New York with engaging in a bribery scheme to secure confidential, internal law enforcement documents about a prominent individual in Bangladesh.

Acting Assistant U.S. Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York, and Inspector General Michael E. Horowitz of the Department of Justice made the announcement.

 Robert Lustyik, 50, a former FBI special agent in the White Plains Resident Agency, is accused in a criminal complaint of conspiring with his friend, Johannes Thaler, 49, of soliciting cash payments from Thaler’s acquaintance, Rizve Ahmed, 34, aka “Caesar,” in exchange for confidential, internal law enforcement documents and information that Lustyik could access by virtue of his position at the FBI.  Ahmed and Thaler were arrested today on the charges in the complaint and will be presented later today before U.S. Magistrate Judge George A. Yanthis in the federal court in White Plains.  Lustyik is currently detained in connection with an unrelated indictment in U.S. District Court for the District of Utah, where he will be initially presented on the charges in the complaint.

Lustyik, Thaler, and Ahmed are each charged in a four-count complaint. Count one charges Lustyik, Thaler, and Ahmed with conspiring to bribe a public official.  Count two charges Lustyik and Thaler with soliciting and receiving bribes.  Count three charges Ahmed with bribing a public official and offering to bribe a public official.  Count four charges Lustyik with unlawfully disclosing a Suspicious Activity Report.

If convicted, Lustyik, of Westchester County, faces a maximum sentence of 25 years in prison. Thaler, of Fairfield County, Conn., faces a maximum sentence of 20 years in prison. Ahmed, of Fairfield County, faces a maximum sentence of 20 years in prison.

According to allegations in the complaint unsealed today in the White Plains federal courthouse, from about September 2011 through March 2012, Lustyik, Thaler and Ahmed engaged in a bribery scheme on behalf of Ahmed, a native of Bangladesh who sought confidential law enforcement information pertaining to a prominent citizen of Bangladesh who was affiliated with an opposing political party (Individual 1).  Ahmed sought, among other things, to obtain information about Individual 1, to locate Individual 1, and to harm Individual 1 and others associated with Individual 1.

As part of the scheme, Lustyik and Thaler exchanged text messages, including messages about how to pressure Ahmed to pay them additional money in exchange for confidential information.  For example, in text messages, Lustyik told Thaler, “we need to push [Ahmed] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.”  Thaler responded, “I know.  It’s all right there in front of us.  Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .”  As another example, in or about late January 2012, Lustyik, upon learning that Ahmed was considering using a different source to obtain confidential information about Individual 1, texted Thaler, “I want to kill [Ahmed] . . . . I hung my [***] out the window n we got nothing? . . . . Tell [Ahmed], I’ve got [Individual 1’s] number and I’m pissed. . . . I will put a wire on n get [Ahmed and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to [Individual 1].”

According to the complaint, Lustyik and Thaler accepted at least $1,000 from Ahmed in exchange for confidential FBI information, including a Suspicious Activity Report.  The complaint also alleges that Lustyik and Thaler schemed to obtain monthly cash bribes from Ahmed, in increments of tens of thousands of dollars, in exchange for the provision of additional confidential law enforcement information about Individual 1 and for assistance in having criminal charges against a Bangladeshi political figure dismissed.

This case was investigated by the Department of Justice’s Office of Inspector General. The prosecution is being handled by the U.S. Attorney’s Office for the Southern District of New York’s White Plains Division and by the Public Integrity Section of the U.S. Department of Justice’ Criminal Division. Assistant U. S. Attorney Benjamin Allee and Trial Attorney Emily Rae Woods are in charge of the prosecution.

The charges in the complaint are merely accusations, and the defendants are presumed innocent until and unless proven guilty.

LABOR DEPARTMENT, WAL-MART RESOLVE OSHA CITATIONS

FROM:  U.S. DEPARTMENT OF LABOR 
Wal-Mart signs corporate-wide settlement with US Labor Department
Agreement resolves OSHA citations at Rochester, N.Y., store following 2011 inspections

WASHINGTON —Wal-Mart Stores, Inc., has entered into a corporate-wide settlement agreement with the U.S. Department of Labor to improve safety and health conditions in all 2,857 Wal-Mart and Sam’s Club stores under federal jurisdiction.  The settlement, which resolves two enforcement cases that began in 2011, includes provisions for the Bentonville, Ark.-based retailer to enhance safety and health practices and training related to trash compactors, cleaning chemicals and hazard communications corporate-wide.

“This settlement will help to keep thousands of exposed Wal-Mart workers safe and healthy on the job,” said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. “We hope this sends a strong message that the law requires employers to provide safe working conditions, and OSHA will use all the tools at our disposal to ensure that all employers follow the law.”

Under the settlement, trash compactors must remain locked while not in use, and may not be operated except under the supervision of a trained manager or other trained, designated monitor.  Wal-Mart will also improve its hazard communications training; and, for cleaning chemicals, will enhance its procedures to ensure that employees do not handle undiluted chemicals. Also, the company must ensure that a protective protocol is in place in case of any malfunctions with a store’s cleaning chemicals dispensing equipment.  Wal-Mart will ensure employees are trained on the new procedures in a language, format, and vocabulary that the workers can understand.

For the safety citations pertinent to the corporate-wide trash compactor abatement, the settlement affirms one repeat lockout/tagout citation, two serious lockout/tagout citations, two serious confined space citations, and one serious machine guarding citation.

For the health citations pertinent to the corporate-wide cleaning chemical and hazard communication abatement, the settlement affirms two serious citations related to personal protective equipment, and two serious hazard communication citations.

A summary of the agreement will be posted in each affected store.
Settlement negotiations followed issuance of citations from two separate inspections conducted at the Wal-Mart Supercenter store in Rochester, N.Y.  A safety inspection was initiated on Aug. 2, 2011, and a health inspection began Aug. 17, 2011. As part of the settlement, Wal-Mart has also agreed to abate other hazards in the Rochester store unrelated to the corporate-wide remedy, and will pay $190,000 in civil penalties.

For the citations not related to the corporate-wide abatement, citations affirmed in the settlement include one repeat electrical hazard citation, one serious citation for obstructed exit routes, two serious machine guarding citations, one repeat other-than-serious platform fall hazard citation, and 11 serious blood borne pathogens citations.

DVIDS - Video - Navy Decides to Scrap USS Miami

DVIDS - Video - Navy Decides to Scrap USS Miami

SEC OBTAINS COURT ORDER TO HALT ALLEGED HEDGE FUND FRAUD TARGETING MILITARY PERSONNEL

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 
SEC Halts Ex-Marine’s Hedge Fund Fraud Targeting Fellow Military
 FOR IMMEDIATE RELEASE
2013-149
Washington D.C., Aug. 6, 2013 —

The Securities and Exchange Commission today obtained an emergency court order to halt a hedge fund investment scheme by a former Marine living in the Chicago area who has been masquerading as a successful trader to defraud fellow veterans, current military, and other investors.

The SEC alleges that Clayton A. Cohn and his hedge fund management firm Market Action Advisors raised nearly $1.8 million from investors through a hedge fund he managed.  Cohn lied to investors about his success as a trader, the performance of the hedge fund, his use of investor proceeds, and his personal stake in the hedge fund.  Cohn only invested less than half of the money raised from investors and instead used more than $400,000 for such personal expenses as a Hollywood mansion, luxury automobile, and extravagant tabs at high-end nightclubs.  He used his lavish lifestyle to carefully contrive the image of a successful trader and investor, when in reality he lost nearly all of the money invested through the hedge fund.  In order to cover up his fraud and continue raising money from investors, Cohn generated phony hedge fund account statements showing annual returns exceeding 200 percent.

“Cohn lured fellow military and other investors into his hedge fund by portraying himself as a successful trader who generated massive returns for his investors,” said Timothy L. Warren, Acting Director of the Chicago Regional Office.  “But Cohn’s hedge fund investors didn’t have a chance to make a profit since he never invested most of their money and promptly lost the portion he did invest.”

According to the SEC’s complaint filed in federal court in Chicago, Cohn targets mostly unsophisticated investors and has solicited friends, family members, and fellow veterans to invest in his hedge fund.  Cohn controls a so-called charity called the Veterans Financial Education Network (VFEN) that purports to teach veterans how to understand and manage their money.  Cohn has touted his Marine Corps pedigree in VFEN press releases and encourages veterans to find “a money-manager who is both trustworthy and knows what he is doing.” VFEN’s website identifies Cohn as a money manager who “manages millions of dollars.”

According to the SEC’s complaint, Cohn managed his hedge fund Market Action Capital Management through his investment advisory firm Market Action Advisors, which is registered with the state of Illinois.  Cohn solicited investments by falsely claiming that he had major success as a personal trader and invested $1.5 million of his own money in the hedge fund.  He also misrepresented that an accounting firm would audit the hedge fund’s financial statements.

The SEC alleges that Cohn had a record of trading losses, invested no more than $4,000 of his own money, and absconded with far more money for his personal expenses.  The audit firm named by Cohn never agreed to audit the fund’s financial statements.  Cohn continued to deceive investors after their initial investment by issuing account statements that showed annual returns of more than 200 percent for 2012 when the hedge fund actually lost money.

The SEC’s complaint charges Cohn and Market Action Advisors with violating the antifraud provisions of the federal securities laws.  The court granted the SEC’s request for emergency relief including a temporary restraining order and asset freeze.  The SEC further seeks permanent injunctions, disgorgement of ill-gotten gains, and financial penalties from Cohn and Market Action Advisors.

The SEC’s investigation was conducted by John J. Sikora, Jr. and Jason A. Howard, and the litigation will be led by Jonathan S. Polish.

Puesta de sol en Mordor

Puesta de sol en Mordor

U.S. EXPORT-IMPORT BANK SAYS EXPORTS REACH ALL-TIME HIGH

FROM:  EXPORT-IMPORT BANK 
U.S. Exports Reach All-Time High of $191.2 Billion in June

Exports Up 41.5 Percent Since 2009

WASHINGTON, D.C. – The United States exported a record $191.2 billion of goods and services in June 2013, according to trade data was released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.

U.S. exports in June 2013 reached an all-time high, exceeding the previous record of $188.7 billion set in December 2012. The June export level is also 2.2 percent higher than that of the previous month.

“Today’s announcement of record-level U.S. exports in June is a testament to the strength of American exports. Increased exports mean more jobs here at home – the goal of President Obama’s National Export Initiative. We at Ex-Im Bank work every day to help American exporters and their workers succeed in selling their products and services in an increasingly competitive global marketplace,” said Ex-Im Bank Chairman and President Fred P. Hochberg.

Exports of goods and services over the past twelve months totaled $2.2 trillion, which is 41.5 percent above the level of exports in 2009. Exports have been growing at an annualized rate of 10.4 percent when compared to the same period in 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 (28.6 percent), United Arab Emirates (23.1 percent), Russia (22.6 percent), Peru (21.9 percent), Chile (21.4 percent), Colombia (19.5 percent), Hong Kong (19.2 percent), Argentina (18.5 percent), South Africa (18.3 percent) and Venezuela (18.1 percent).

SECRETARY OF STATE KERRY'S STATEMENT ON THE FOUNDING OF ASEAN

FROM:  U.S. STATE DEPARTMENT 
Marking the Anniversary of the Founding of ASEAN
Press Statement
John Kerry
Secretary of State
Washington, DC
August 6, 2013

On behalf of President Obama and the people of the United States, we join the 600 million people of the member states of the Association of Southeast Asian Nations (ASEAN) - Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic Republic, Malaysia, the Republic of the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand, and the Socialist Republic of Vietnam - in marking the 46th anniversary of the founding of ASEAN.

ASEAN plays a critical and growing role in Asia through promoting regional integration and maintaining regional security. As the central regional organization in Asia, ASEAN is the keystone for Asia’s multilateral architecture, including the ASEAN Regional Forum and the East Asia Summit.

The United States is deeply committed to supporting and partnering with ASEAN. The United States was the first dialogue partner nation to establish a dedicated mission to ASEAN. Our engagement with ASEAN has led to collaboration on everything from maritime security to investing in sustainable energy resources to development in the Lower Mekong sub-region.

I was privileged to participate in my first ASEAN-U.S. Ministerial meeting just last month in Brunei to advance our cooperation on this wide range of shared interests, and I look forward to deepening and broadening our cooperation in the coming years. And I know that President Obama looks forward to participating in the East Asia Summit and the ASEAN-U.S. Summit in Brunei in October.

As we celebrate the anniversary of the founding of ASEAN, know that the United States stands with you as a steadfast partner.

FTC SEEKS CONTEMPT RULING AGAINST DEFENDANTS WHO VIOLATED A PERMANENT INJUNCTION

FROM:  U.S. FEDERAL TRADE COMMISSION 

FTC Seeks Contempt Ruling Against Suntasia Telemarketing Defendants
Defendants Ordered to Pay Over $11 Million in 2008

The Federal Trade Commission is seeking a contempt order in federal court against defendants previously involved in a massive, Florida-based marketing scheme, alleging that they violated the terms of a court-ordered permanent injunction by engaging in some of the same deceptive tactics that led to the FTC’s prior charges against them.

In 2007, the FTC took action against the defendants behind Suntasia Marketing, Inc., charging them with deceptively marketing negative option programs to consumers nationwide.  According to the agency, the defendants defrauded consumers and charged their bank accounts without consent for various negative option programs, including memberships in discount buyer’s and travel clubs.  In a negative option program, a company takes consumers’ silence or failure to cancel the program as acceptance of the offer and permission to debit funds from their accounts.

The defendants agreed to the 2008 injunction in order to settle the FTC’s charges. Under the settlement, 14 defendants involved in the scheme were required to pay more than $16 million. In particular, defendants Bryon Wolf and Roy Eliasson were required to pay over $11 million, and were barred from misrepresenting material facts regarding an offer, failing to disclose material terms of what they sell, debiting consumers’ accounts without their consent, and other unlawful acts.

But according to the FTC, within months of the court’s 2008 order, defendants Bryon Wolf and Roy Eliasson, and their firm Membership Services, LLC, which Wolf and Eliasson control, devised a new plan to defraud consumers.  In this scheme, they targeted recent loan applicants with deceptive phone and Internet solicitations that misled consumers to believe the defendants would provide them with cash advances or loans, or general lines of credit.  Instead of providing these services, the defendants debited consumers’ accounts for membership in a continuity program. Very few consumers used the program and many cancelled upon discovering their account had been debited by defendants.  The continuity plans go under the names “Monster Rewards,” “Mongo,” and “Money on the Go.”

Based on this conduct, the FTC charged the defendants with violating the permanent injunction by making misrepresentations to consumers about their programs, by failing to make key disclosures, by failing to get express informed consent before debiting consumers’ accounts, and by failing to disclose clearly and promptly their programs during telemarketed solicitations.  According to the FTC, through their deceptive actions, the defendants have netted over $9 million.

The civil contempt action was filed under seal in the U.S. District Court for the Middle District of Florida, Tampa Division on May 22, 2013, and unsealed by the Court on July 31, 2013.  It names as defendants Bryon Wolf, Roy Eliasson, and Membership Services, LLC.

IMMUNITY GENES FOUND IN SEA FANS

Photo Shows Sea Fan In Back.  Credit:  U.S. NOAA

FROM:  NATIONAL SCIENCE FOUNDATION

Sick Sea Fans: Undersea "Doctors" to the Rescue

Scientists discover genes involved in immunity of sea fans to coral diseases
Like all of us, corals get sick. They respond to pathogens (disease-causing microbes) and recover or die. But unlike us, they can't call a doctor for treatment.

Instead, help has arrived in the form of scientists who study the causes of the corals' disease, and the immune factors that might be important in their response and resistance.

With support from the National Science Foundation (NSF), scientists Drew Harvell and Colleen Burge of Cornell University and their colleagues have developed a catalog of genes that, the researchers say, will allow us to better understand the immune systems of corals called sea fans.

The marine ecologists have trained their undersea eyes on a particular sea fan species, Gorgonia ventalina, or the purple sea fan, found in the western Atlantic Ocean and the Caribbean Sea.

The team has monitored sea fan health in the Florida Keys, Mexican Yucatan and Puerto Rico for the past 15 years. The most recent research, in collaboration with Ernesto Weil of the University of Puerto Rico, is underway on reefs at La Parguera, Puerto Rico.

Gorgonia ventalina is a fan-shaped coral with several main branches and a latticework of smaller branches. Its skeleton is composed of calcite and gorgonian, a collagen-like compound. Purple sea fans often have smaller, accessory fans growing sideways out of their main fans.

These large sea fans fare best near shore in shallow waters with strong waves and on deeper outer reefs with strong currents, down to a depth of about 50 feet. Small polyps on the graceful fans catch plankton drifting by on fast-flowing currents.

Turning (more) purple

Life as a purple sea fan isn't always easy. The coral may be attacked by the fungus Aspergillus sydowii, which causes the disease aspergillosis.

It results in damaged patches on the fan, extreme purpling of tissues and sometimes death. Several outbreaks of aspergillosis have occurred in the Caribbean; corals in stressful conditions such as warming waters may be especially susceptible.

"Diseases and climate change are very tightly linked," says Mike Lesser, program director in NSF's Division of Ocean Sciences, which funds the research along with the joint NSF-National Institutes of Health Evolution and Ecology of Infectious Diseases (EEID) Program.

"The role of climate change in diseases is important," Lesser says, "for understanding the spread of infectious diseases in every corner of the globe, including the oceans."

Adds Sam Scheiner, NSF EEID program director, "Human-induced climate change is having profound effects on many parts of the world. As this research shows, coral reefs are being decimated by the combination of climate change and infectious diseases."

Undersea "doctors" come to sea fans' aid

Harvell agrees.

In a paper published earlier this year in The Annual Review of Marine Science, Harvell, Burge and other scientists reviewed climate change influences on marine infectious diseases.

Now the scientists are using the purple sea fan as a model for studying ocean diseases. "We're looking at microbial infection, pathways of defense and the health of this sea fan in the face of warming waters and climate change," says Harvell.

"All animals on Earth--from humans to fish to corals--are susceptible to infection by pathogens that cause illness," she says. "What we hope to answer is: How widespread are these infections? Why do they happen? And, what can we do about them?"

Coral reefs are declining worldwide. Even very old coral colonies in remote locations are dying. "Disease-related deaths are caused in part by pathogens alone and in part by interactions between pathogens and climate change," says Burge.

Many of these pathogens are unidentified, leaving sea fans and their coral relatives at high risk.

But the mystery is slowly being solved.

The scientists have discovered two pathogens in purple sea fans. The microbes are being cultured and used to examine how sea fans' immune systems work.

Past is prologue?

A look back a decade or more may provide clues to the present--and the future--for sea fans.

From 1996 through 2004, thousands of sea fans in the Caribbean died of aspergillosis. Many survived, however, and appear resistant to further attack.

But they're far from home free.

Purple sea fans are now being infected by a new pathogen, called Aplanochytrium. Burge was the first to isolate and culture the microbe from a sick sea fan.

Aplanochytrium is a member of an order of lethal microbes known as Labyrinthulomycetes. It grows faster at warmer temperatures, leaving sea fans in "hot water."

Corals don't have "immune memory," such as the T cells and antibodies found in humans. Instead they have an ancient defense system called the innate immune system.

Studying sea fans' immunity through their genes is an important step in protecting them, says Burge.

"We used molecular biology and bioinformatics--a combination of biology, computer science and information technology--to make a set of the genes' messages, called transcripts," she says. "Then we characterized these messages, which are known collectively as a transcriptome."

The results, reported this month in a paper in the journal Frontiers in Physiology, are the first to show which genes are activated in response to pathogens in sea fans. Co-authors of the paper are Burge, Harvell and Morgan Mouchka of Cornell, and Steven Roberts of the University of Washington.

Message in a (genetic) bottle

The purple sea fan may hold messages for the oceans, and for us, but the messages come in a genetic bottle.

The scientists studied what's called messenger RNA, which transfers genetic messages, in sea fans exposed to Aplanochytrium, comparing it with that of unexposed sea fans.

They found that the sea fans' genes hold clues to questions such as how the fans recognize and kill pathogens, and how they repair injured tissues.

The scientists are increasing the sea fan genetic "catalog" by adding genes expressed, or turned on, in response to record-breaking Caribbean Sea temperatures in 2010.

The researchers, working in Puerto Rico with Weil and Laura Mydlarz of the University of Texas at Arlington, assessed the effect of the 2010 Caribbean coral bleaching event, as it's known, on sea fans' genes and immune function.

The study compared immune system genes in a heat-sensitive coral species, Orbicella annularis, the boulder star coral, with that of Gorgonia ventalina.

The purple sea fan was thought to be resilient to the stresses of warming waters. But Gorgonia ventalina, the scientists found, is also susceptible to the double whammy of disease and warming.

-- Cheryl Dybas, NSF

DVIDS - Video - Vet, Plane Reunited After 70 Years

DVIDS - Video - Vet, Plane Reunited After 70 Years