MICHIGAN HOME HEALTH AGENCY OWNER PLEADS GUILTY IN MEDICARE FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, August 15, 2013
Michigan Physical Therapist and Home Health Agency Owner Pleads Guilty for Role in Medicare Fraud Scheme

A greater Detroit-area physical therapist who was also an owner of a home health agency pleaded guilty yesterday for his role in a $22 million home health care fraud scheme.

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

Hemal Bhagat, 32, of Troy, Mich., pleaded guilty on Aug. 14, 2013, before U.S. District Judge Bernard A. Friedman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.  At sentencing, scheduled for Nov. 12, 2013, Bhagat faces a maximum penalty of 10 years in prison and a $250,000 fine.

According to information contained in plea documents, Bhagat admitted that from approximately May 2009 through October 2011, he conspired with others to commit health care fraud through billing Medicare for home health care services that were not actually rendered and/or not medically necessary.  A licensed physical therapist, Bhagat began working in June 2009 for Troy-based Prestige Home Health Services Inc., a home health agency owned by alleged co-conspirators.   In approximately August 2009, he and other co-conspirators became owners of Royal Home Health Care Inc., a home health agency also located in Troy.

Bhagat admitted that his co-conspirators at Prestige and Royal paid kickbacks to patient recruiters to obtain the information of Medicare beneficiaries, which the co-conspirators then used to bill Medicare for services that were not provided to these beneficiaries and/or were not medically necessary.   He and his co-conspirators then created fictitious therapy files appearing to document physical therapy services provided to Medicare beneficiaries, when in fact no such services had been provided and/or were not medically necessary.   Bhagat’s role in creating the fictitious therapy files was to sign documents – including physical therapy evaluations, supervisory patient visits, and patient discharge forms – indicating that he and others had provided physical therapy services to particular Medicare beneficiaries, when in fact they had not.   Bhagat admitted to knowing that the documents he falsified would be used to support false claims to Medicare by his co-conspirators at Prestige and Royal.   He submitted or caused the submission of claims to Medicare for services that were not medically necessary and/or not provided, which in turn caused Medicare to pay approximately $4,767,359.03.

This case was investigated by the FBI, HHS-OIG and IRS Criminal Investigation and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.  This case is being prosecuted by Trial Attorney Niall M. O’Donnell, Deputy Chief Charles E. Duross, and Trial Attorney James McDonald of the Criminal Division’s Fraud Section.

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 and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

U.S. SENDS BEST WISHES TO PEOPLE ON AFGHANISTAN ON THEIR INDEPENDENCE DAY

FROM:  U.S. STATE DEPARTMENT 
Afghanistan's Independence Day
Press Statement
John Kerry
Secretary of State
Washington, DC
August 18, 2013

On behalf of President Obama and the people of the United States, I send best wishes to the government and people of Afghanistan as you celebrate your Independence Day on August 19.

I have been to Afghanistan many times and seen firsthand the enduring partnership between our countries, which is founded on mutual respect and common interests. I have seen the people of Afghanistan work to build a peaceful, prosperous and unified nation that respects the rights of women and minorities in every fabric of society. The United States is committed to working with you and supporting the efforts necessary to achieve this goal and sustaining the gains that have been made.

There has been inspiring progress across Afghanistan in many sectors, including health care, media, education, women’s rights, trade and commerce. During the past year alone, the Afghan people have also taken significant steps to prepare for the coming security and political transitions, from the milestone event on June 18 that marked Afghan forces taking the lead for security across the country to the new electoral laws that set the stage for the coming 2014 elections. At the same time, Afghans continue to build their economy by working toward WTO accession, attracting private sector investment and developing their natural resources.

This progress is creating a better life for all Afghans. As you celebrate your independence, the United States shares your commitment to a strong and sovereign Afghanistan where Afghans enjoy security, peace, prosperity, and dignity for generations to come.

TWO SENTENCED TO PRISON IN ASBESTOS VIOLATIONS CASE

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, August 14, 2013
Two Idaho Men Sentenced to Prison for Asbestos Violations

Waterline Renovation Project Led to $3,980,000 Cleanup
Bradley Eberhart, 51, of Garden Valley, Idaho, and Douglas Greiner, 53, of Eagle, Idaho, were sentenced this week in federal court for violating the asbestos work practice standards of the Clean Air Act, announced Robert G. Dreher, Acting Assistant Attorney General for Environment and Natural Resources Division, and Wendy J. Olson, U.S. Attorney for the District of Idaho.

U.S. District Judge Edward J. Lodge sentenced Eberhart on Monday to six months in prison plus six months of home confinement, followed by six months of supervised release, 200 hours of community service, and restitution of $3.98 million, in joint and several liability.  Greiner was also sentenced to six months in prison and six months of home confinement, to be followed by six months of supervised release.  The amount of restitution by Greiner will be the subject of further briefing by the parties.

Both defendants previously pleaded guilty on Feb. 26, 2013.

Boise-based Owyhee Construction Inc., was the successful bidder on a $2.1 million waterline renovation project in Orofino, Idaho, a rural community in north central Idaho.  Greiner was the project superintendent and Eberhart was the onsite supervisor of the project.  The contract documents warned Owyhee Construction that the company may encounter up to 5,000 linear feet of cement asbestos pipe (CAP) during the renovation.  CAP is a non-friable form of asbestos that is encapsulated in a cement matrix.  When the CAP is broken or crushed by heavy equipment or subjected to cutting and grinding by machinery it becomes subject to regulation because of the threat to public health from airborne fibers.

Eberhart and Greiner failed to properly supervise the renovation.  Eberhart supervised employees who were not properly trained in asbestos work and were not properly outfitted with protective gear while cutting CAP with saws.  While working in the trenches to replace pipe, workers would remove CAP from the trenches, crush it and then place it back in the trenches.  Large quantities of CAP were also removed from the trenches and ended up as fill material on sixteen properties around Orofino.  Greiner pleaded guilty to orchestrating one of the disposals.  The EPA cleanup cost just under $4 million.

“These prison sentences reflect the serious consequences of the failure of these defendants to comply with EPA’s regulations that protect public health from asbestos, a human carcinogen,” said Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division.  “Such criminal acts endanger workers and the community and can, as demonstrated here, cost the federal government millions of dollars to cleanup.  The Justice Department will continue to vigorously prosecute these crimes.”

“This case demonstrates the commitment of law enforcement and the Department of Justice to ensure the health of our residents,” said U.S. Attorney Olson.  “Threats to the environment and to public health may not be readily apparent from a construction project.  Renovation projects like these often generate dust with fine asbestos particles that may have the potential to cause serious health and environmental problems if safety precautions are not taken.  The full extent of injury from airborne asbestos may not be noticed or diagnosed for years.  It is important that companies, their foremen and their operators comply with environmental laws to avoid serious harm.”

“These two Defendants carelessly subjected Orofino residents to asbestos exposure,” said Tyler Amon, Special Agent in Charge of EPA’s Criminal Investigation Division in Seattle.  “In the course of their enterprise, they also created sixteen separate asbestos disposal sites that threatened the community, jeopardized workers and cost taxpayers $4 million to cleanup.  Today’s sentence sends a clear message: if you risk people’s lives to save time and money, you will pay the price.”

The case was investigated by the U.S. Environmental Protection Agency.  The case was prosecuted by Assistant U.S. Attorney D. Marc Haws from the District of Idaho and Senior Trial Attorney J. Ronald Sutcliffe of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.

MAN INDICTED IN CONNECTION WITH JAMAICAN LOTTERY FRAUD

FROM:  U.S. DEPARTMENT OF JUSTICE 
Wednesday, August 14, 2013

Individual Arrested in Florida in Connection with a Lottery Scam in Jamaica
A Jamaican citizen charged in connection with the operation of a fraudulent lottery was arrested Tuesday in Orlando, Fla., following his indictment by a federal grand jury in Fort Lauderdale, Fla., on Aug. 9, 2012, the Justice Department, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Marshals Service announced today.  Oneike Mickhale Barnett was arrested based on charges that he and his co-conspirators ran a lottery scam in Jamaica that fraudulently induced elderly victims in the United States to send them thousands of dollars to cover fees for lottery winnings that victims had not in fact won.  The indictment unsealed with Barnett’s arrest forms part of the government’s crackdown on fraudulent lottery scams based in Jamaica.

Beginning in October 2008, Barnett and his co-conspirators are alleged to have contacted victims in the U.S., announced that the victims had won cash and prizes and persuaded the victims to send them thousands of dollars in fees to release the money.  The victims never received cash or prizes.  The defendant and his co-conspirators allegedly made calls from Jamaica using Voice Over Internet Protocol technology that allowed them to use a telephone number with a U.S. area code.  According to the indictment, Barnett convinced victims to send money to middlemen in South Florida, who forwarded the money to Jamaica.

“Lottery scams that target older Americans, such as the one alleged here, are the most pernicious kind of fraud – often swindling seniors out of their life savings,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division.  “The Justice Department will continue to combat these schemes and bring those responsible to justice.”

 “The alleged lottery scheme in this case is most vile because it targeted the elderly, one of the most vulnerable members in our society,” said Wifredo Ferrer, U.S. Attorney for the Southern District of Florida.  “While the scam was based in Jamaica, it targeted victims in the United States, including South Florida.  We will continue to pursue and prosecute those responsible for these illegal schemes in an effort to bring those responsible to justice and protect those in our society.”

Barnett was charged with conspiracy and 37 counts of wire fraud, and with committing these offenses via telemarketing.  If convicted, he faces a statutory maximum sentence of 30 years per count, a possible fine and mandatory restitution.
         
 “This arrest highlights the joint effort between U.S. and Jamaican law enforcement to prosecute those who prey on our nation’s senior citizens,” said U.S. Postal Inspector in Charge for the Miami Division Ronald Verrochio.  “The mission of the Postal Inspection Service is to protect consumers by ensuring the nation’s mail system is not used as a tool for fraud.”

Special Agent in Charge for Homeland Security Investigations in Miami Alysa D. Erichs added, “These individuals are preying on some of the most vulnerable members in our communities.  We will continue to work with our partners in Jamaica and other law enforcement agencies to put these criminal enterprises out of business.”

Acting U.S. Marshal Neil DeSousa said, “The U.S. Marshals Service in the Southern District of Florida, along with the Jamaica Foreign Field Office and the Organized Crime Drug Enforcement Task Force, remain committed to locating and apprehending criminals who defraud elderly Americans.  We will continue to work with the U.S. Postal Inspection Service and Department of Homeland Security on the JOLT task force in the ongoing effort to combat lottery fraud targeting some of our most vulnerable citizens.”

U.S. Attorney Ferrer and Assistant Attorney General Delery both commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations, the U.S. Marshals Service and Jamaica’s Major Organized Crime and Anti-Corruption Task Force.  The case is being prosecuted by Assistant U.S. Attorney Bertha Mitrani and Consumer Protection Branch, Civil Division attorneys Jeffrey Steger and Kathryn Drenning.

An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.

DOJ SETTLES FAIR HOUSING LAWSUIT WITH HOMEOWNERS ASSOCIATION

FROM:  U.S. DEPARTMENT OF JUSTICE 
Tuesday, August 13, 2013
Justice Department Reaches Settlement with Homeowners Association and Property Management Company in Fair Housing Lawsuit Involving Occupancy Limits

The Justice Department announced today that the Townhomes of Kings Lake HOA Inc. (HOA) and Vanguard Management Group Inc. have agreed to pay $150,000 to settle a lawsuit alleging violations of the Fair Housing Act (FHA).  The lawsuit alleged that the HOA adopted and both defendants enforced occupancy limits that discriminated against families with children at the Townhomes of Kings Lake, a 249-townhome community in Gibsonton, Fla.

Under the proposed consent decree, which must still be approved by the U.S. District Court for the Middle District of Florida, the defendants will pay $45,000 to the family that initiated the original complaint filed with the U.S. Department of Housing and Urban Development (HUD), $85,000 into a victim fund to compensate other aggrieved families, and $20,000 to the United States as a civil penalty.  In addition, the proposed consent decree prohibits the defendants from discriminating in the future against families with children and requires the defendants to receive training on the requirements of the FHA.  In January 2013, while the lawsuit was pending, the HOA modified its occupancy limits to permit four occupants in 2-bedroom townhomes, six occupants in 3-bedroom townhomes, and eight occupants in 4-bedroom townhomes.

“The Fair Housing Act ensures that families with children are not denied their housing rights based on discriminatory occupancy policies,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously enforce fair housing laws that protect the rights of families with children.”

The lawsuit, filed in October 2012, arose from a complaint filed with HUD by a family with six children that was living at the Townhomes of Kings Lake.  After the family moved into their 4-bedroom townhome, the defendants indicated there was a problem with the number of people living in the home and threatened to evict the family.  The family eventually moved out of the Kings Lake community.  After HUD investigated the complaint, it issued a charge of discrimination and referred the matter to the Justice Department.  The lawsuit alleged that the defendants violated the family’s rights, that the restrictive occupancy policies discriminated against other families with children, and that the defendants engaged in a pattern or practice of discrimination or denied rights protected by the FHA to a group of persons.

“Twenty-plus years of HUD guidance and cases have put housing providers on notice that occupancy standards which unfairly limit or exclude families with children violate the Fair Housing Act,” said Bryan Greene, HUD’s Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and the Department of Justice are committed to making sure that all people have equal access to the housing for which they financially qualify.”

THERAPEUTIC MEDICINES AND TECHNOLOGY

FROM:  NATIONAL SCIENCE FOUNDATION 
From fundamental science to Innovation Corps: Technology to develop new therapeutic medicines

In medical diagnostics, clinicians often use positron emission technology (PET), a nuclear medicine imaging technology that sends an active molecule containing a radioactive tag--almost like a GPS system--that is designed to hone in on specific parts of the body.

These molecules are specific to certain conditions. For example, abnormally growing tissue will take up large amounts of glucose, so PET scans often use a glucose analog with a radioactive tag to pinpoint a suspected tumor.

Until recently, however, compounds that are known biomarkers for certain diseases had been very difficult to label with radioactive tags, limiting their value for detecting these diseases, for example, L-DOPA, which is taken up by the brain. "Because the technology to put the isotope on the molecule efficiently did not exist, we just couldn't use these compounds," says Stephen DiMagno, professor of chemistry at the University of Nebraska-Lincoln.

But DiMagno and his research team have found a way to add radioactive tags to L-DOPA, and dopamine, an advance that increases the potential for speeding up the diagnosis of certain pediatric cancers, cardiac disease, and such neurological disorders as Alzheimer's and Parkinson's diseases. Moreover, "it opens the way to make new compounds as well as 'label' those compounds that had been difficult to label," DiMagno says.

These compounds, with their radioactive tracers, are 6-[18F]-Fluorodopamine (6-[18F], a promising imaging biomarker of neuroblastoma, a serious and often fatal childhood cancer, and pheochromocytoma, a rare tumor of the adrenal gland, and 6-[18F]-L-DOPA, which has potential as a biomarker in patients with Parkinson's disease.

DiMagno and his colleagues, using a specific chemical reaction, developed a process that modifies L-DOPA in a way that allows the radioactive tag to be more easily attached. "The actual reaction we used has been known for a long time, but it was difficult to use effectively because there were fundamental things about the chemistry we did not understand," he says. "It took three or four years, but we fixed the problems that prevented them from being used."

The scientists make "precursor" molecules, that is, the compounds that ultimately will become imaging agents, that are designed to combine rapidly and efficiently with [18F]-fluoride, in a sterile glass reactor, according to DiMagno.

"After heating the mixture under a special set of conditions, the [18F]-fluoride displaces an ancillary portion of the precursor, yielding the fluorinated compound," he says. "Then we quickly purify the compound for use in imaging studies."

DiMagno's lab had long focused on the process of putting fluorine into molecules, but a sabbatical he took seven years ago, when he had time to reflect more deeply about his science, convinced him to work on this particular project.

"I got into science because I wanted to have an impact," he says. "I was doing fundamental work, but I wanted to do more to make a difference in the world. So when I came back, we took an inventory on the possible ways this problem could be solved, to figure out these chemical reactions and the routes for putting the label onto these drugs."

In the fall of 2011, DiMagno was among the first group of scientists to receive a $50,000 National Science Foundation Innovation Corps (I-Corps) award, which supports a set of activities and programs that prepare scientists and engineers to extend their focus beyond the laboratory into the commercial world.

Such results may be translated through I-Corps into technologies with near-term benefits for the economy and society. It is a public-private partnership program that teaches grantees to identify valuable product opportunities that can emerge from academic research, and offers entrepreneurship training to student participants.

Last February, DiMagno co-founded Ground Fluor Pharmaceuticals, a company that now manufactures the precursor molecules, those materials destined to be tagged with radioactive isotopes. The company also has received an NSF $180,000 Small Business Innovative Research (SBIR) award.

"This new chemistry can be used to increase the efficiency and reduce production costs per dose for many existing PET agents," he says. "We believe this technology can also be used to make new PET agents that will assist drug companies in their efforts to develop new therapeutic drugs."

DiMagno worked with his former doctoral student Kiel Neumann, now an employee of the new company, who helped establish a collaboration with St. Jude Children's Research Hospital, an internationally recognized pediatric treatment and research facility in Memphis. St. Jude's is interested in using radiotracers prepared through this technology to image pediatric cancers.

Interestingly, the research initially grew from an NSF basic science grant of $420,000, awarded in July 2007, that focused on the behavior of salts in liquids such as gasoline.

"That's where the chemistry came from, even though it seems like a pretty far cry from what we are doing now," DiMagno says. "But it's not. It was a logical extension of a basic science proposal."

The researchers formed the new company "to allow physicians to image patients with cancer and diseases such as Alzheimer's better than they could before," he says, adding that he now feels he is making the impact he sought. "I look forward to the day when I can shake some parents' hands because I played role in saving their child's life," he says.

-- Marlene Cimons, National Science Foundation

DOJ FILES LAWSUIT TO ENFORCE EMPLOYMENT RIGHTS OF MILITARY RESERVE MEMBER

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, August 14, 2013
Justice Department Files Lawsuit in Delaware Against Regal Contractors LLC Et Al., to Enforce the Employment Rights of Air Force Reserve Member

The Justice Department and U.S. Attorney for the District of Delaware Charles M. Oberly III announced today the filing of a lawsuit alleging that Regal Contractors LLC, Regal Builders LLC and Noble Pond Homes willfully violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by terminating U.S. Air Force Reserve Member Lon Fluman following his return from required military training with his reserve unit.

Fluman is a Senior Airman with the U.S. Air Force Reserve serving with the 712th Aircraft Maintenance Squadron at Dover Air Force Base.   According to the complaint, filed in the U.S. District Court for Delaware, Fluman was scheduled for reserve military duty to begin on Sept. 3, 2012 but was rescheduled on short notice to start one day later.    Subsequently, Fluman served weekend reserve duty in early December of 2012.  Following his second duty, the defendants terminated Fluman from his position as a maintenance technician.   Although Fluman satisfied USERRA’s notification requirements before departing for his military leaves, according to the complaint,  the defendants terminated Fluman anyway, claiming the notice provided was not sufficient.

USERRA explicitly protects the rights of members of the uniformed services to retain their employment following absences due to military service obligations. “Congress enacted USERRA to protect our men and women in uniform from experiencing this kind of injustice,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department is committed to vigorously enforcing federal laws that protect the employment rights of our servicemembers.”

“Members of the Air Force Reserve sacrifice time away from their jobs to serve their country,” said U.S. Attorney Oberly.   “USERRA ensures that they are not discriminated against and that their employment rights are protected.”

This case stems from a referral by the U.S. Department of Labor following an investigation by the Department of Labor’s Veterans’ Employment and Training Service.   The case is being handled by the Civil Rights Division and the U.S. Attorney’s Office for the District of Delaware, who work collaboratively with the Department of Labor to protect the jobs and benefits of National Guard and Reserve servicemembers upon their return to civilian life.

Hyperbaric Oxygen Therapy: Don't Be Misled

Hyperbaric Oxygen Therapy: Don't Be Misled

FORMER LIQUOR STORE OWNER PLEADS GUILTY TO SELLING CUTTING AGENTS TO DRUG DEALERS

FROM:  DEPARTMENT OF JUSTICE 
Tuesday, August 13, 2013
Former Owner of Liquor Store Pleads Guilty to Tax Crime and Selling Cutting Agents to Local Drug Dealers

Southfield, Mich., resident Bashar Saroki pleaded guilty to filing a false tax return and selling drug paraphernalia, the Justice Department and the Internal Revenue Service (IRS) announced today.

According to court documents, Saroki controlled and operated Golden Star Party Store, a liquor store that was located in Detroit.  From 2007 through 2011, Saroki sold more than $1 million worth of a variety of cutting agents to local narcotics dealers out of Golden Star Party Store and from his residence.  The cutting agents were substances used by narcotics dealers to dilute the potency and increase the quantity of the narcotics sold to customers.  Despite the significant proceeds from the sale of cutting agents, Saroki reported very little income on his false tax return for 2009.    

Saroki faces a maximum sentence of three years in prison, one year of supervised release and a $250,000 fine on each count.  U.S. District Judge Robert H. Cleland set sentencing for Dec. 17, 2013.

Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended the efforts of special agents of IRS-Criminal Investigation, who investigated this case, and Tax Division Trial Attorneys Kenneth C. Vert and Yael T. Epstein, who prosecuted the case.

GSA SAYS 'CITY PAIR PROGRAM' SAVES GOVERNMENT BILLIONS

FROM:  U.S. GENERAL SERVICES ADMINISTRATION

City Pair Program Saves Billions for Federal Agencies
Air travel program leverages government’s buying power to save over $2 billion annually
August 16, 2013

WASHINGTON — Today, the U.S. General Services Administration announced the award of its cost-saving air travel contracts for 2014, which will save taxpayers approximately $2.2 billion a year. Under GSA’s City Pair Program, airfare rates for the federal government’s official travel are pre-negotiated and offer up to 59 percent off of commercial airfare for the federal workforce. In addition to offering considerable discounts, the City Pair Program allows the federal government additional flexibility in how it books air travel.

“GSA’s mission is to help federal agencies save money, and that includes getting the best price for government travelers," said Tom Sharpe, Jr. Commissioner of GSA’s Federal Acquisition Service. "By leveraging the government’s buying power, we are able to help federal agencies reduce travel costs and save billions of taxpayer dollars.”

GSA’s data-driven analytical approach to managing the program and negotiating with the carriers is driving greater cost savings and performance for the City Pair Program and the overall rates for 2014 are consistently below corporate benchmark rates in all top markets.

In 2014, the City Pair Program is expanding its reach, increasing available routes by 25 percent to more than 6,300 destinations.  Average one-way ticket prices for domestic flights have dropped four percent and international rates have dropped seven percent. Additionally, non-stop flights have been expanded by 20 percent to 1,887 routes.

For the upcoming year, the City Pair Program retained all of the same benefits which contribute to greater savings, beyond ticket cost, for government. The program gives federal travelers the flexibility to book one- way, multi-leg, and round-trip airfare at the lowest cost possible, while retaining the ability to adjust or cancel flights at no additional cost to the government.

Another positive trend for federal travelers is that many secondary markets that were not awarded in 2013, because lower commercial fares were readily available, were awarded and will be available in 2014. Following the 2013 decision to not award the secondary markets, instead directing federal travelers to the lower commercially-available rates, the airlines came back to GSA with competitive pricing in those markets this year, allowing for travelers to book lowest rates and receive the benefits associated with booking through City Pairs.

Ten major U.S. carriers were awarded contracts. When awarding City Pair contracts to airlines, GSA considers a number of criteria, including availability of non-stop service, total number of flights, flight availability, average elapsed flight time, availability of jet service, and price of service. The program also offers dual fare markets to provide flexibility for immediate travel and discounted fares for booking flights early.  The 2014 rates will become effective October 1, 2013.

12 PACIFIC WOMEN LEADERS TO ATTEND CLIMATE CHANGE PROGRAM

FROM:  U.S. STATE DEPARTMENT 
Women Leaders from Pacific Participate in U.S. Program on Climate Change
Media Note
Office of the Spokesperson
Washington, DC
August 16, 2013

From August 18 – 28, 2013, twelve women climate leaders from across the Pacific region will visit Washington, D.C., Pensacola, Florida, and Honolulu, Hawaii to meet with policymakers, scientists, and innovators to share their experiences and to learn about U.S. efforts to combat climate change. This exchange, a joint initiative of the Secretary's Office of Global Women's Issues and Bureau of Educational and Cultural Affairs, advances the Rarotonga Partnership for the Advancement of Pacific Island Women and broader U.S. efforts to support the critical role of women around the world in combating climate change. It also builds on a 2012 International Visitors Leadership Program of women climate leaders.

In Washington, the group will meet with senior officials from the Department of State, the Environmental Protection Agency, and the Department of Energy; participate in a roundtable discussion with non-governmental organizations and a panel with World Bank experts on climate change; and receive training in social media at George Washington University.

In Pensacola and Honolulu, the participants will engage in a series of meetings and site visits to learn more about topics related to climate change, ranging from disaster risk management and emergency operations to environmental conservation to innovative renewable energy technologies. In Pensacola, the participants will learn more about life in the United States by engaging with local residents during home hospitality visits.

Representing the Cook Islands, Fiji, Micronesia, Nauru, New Zealand, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, and Vanuatu, these climate leaders will share practical skills and ideas learned with counterparts upon returning home.

SAVING MILITARY MORALE, WELFARE AND RECREATION UNDER TIGHTENING BUDGETS

FROM:  U.S. DEFENSE DEPARTMENT
Officials Strive to Protect MWR Programs Amid Budget Cuts
By Donna Miles
American Forces Press Service

WASHINGTON, Aug. 21, 2013 - Committed to preserving quality-of-life offerings despite ever-tighter budgets, military morale, welfare and recreation officials are scaling back in some areas as they introduce innovative approaches to delivering services and programs.

Military fitness centers, swimming pools, lodging facilities and outdoor recreation offices might sound to some like a footnote among competing budget requirements. But Ed Miles, DOD's MWR policy director, and his counterparts across the military services see a close connection to military readiness.

"We have a direct impact on the readiness and retention and resilience of the troops and their families," Miles told American Forces Press Service. "When you have a healthy and fit force, it has absolute national security implications -- in terms of stress reduction, physical and emotional health and esprit de corps.

Congress has long agreed, authorizing funds since 1989 to cover 85 percent of programs with the most direct link to readiness: fitness centers, community centers and library programs, among them, Miles explained.

Amenities such as arts-and-crafts centers, outdoor recreation centers and youth programs that are less directly tied to readiness receive a lower authorization of 65 percent.

Meanwhile, "nice-to-have" offerings such as military golf courses, bowling alleys, campgrounds, food and beverage services and similar services generally must be self-supporting, with user fees covering all costs and overhead.

A variety of factors has thrown this formula off kilter, Miles said. With increased privatization, almost three-quarters of military families now live off installations and tap services and programs in their communities. Many, like their civilian neighbors, have fewer spare dollars to spend on recreation. And with sequestration putting a big dent in already-reduced MWR budgets, the military services find themselves struggling to provide quality-of-life programs and services to their members.

It all converges after 11 years of war -- at a time when safe, affordable options for military members and their families to blow off steam are more important than ever, said Bob Vogt, the Army's division chief for soldier and community recreation.

"If we didn't have the programs offered on an installation for a soldier or his family, they would have to go find a release somewhere else," he said. "We have a safe, controlled environment on our installations, and we can offer a reduced fee for a lot of programs to help them release some of that pent-up stress and frustration.

"So our goal is to try not to reduce or eliminate any services and to try to maintain the current level of services," Vogt said.

In some cases, that has required the Army to borrow from nonappropriated-fund activities to keep fitness centers and other appropriated activities running.

"But we can only do that for so long, because it puts our funding under a lot of strain," Vogt said. "Over the short term, it allows you to maintain your services. But if you start diverting funds from self-sustaining activities for an extended period of time, you lose your ability to recapitalize. When the roof on the club collapses or the freezer blows up, you don't have the funds you need to recapitalize."

Across the services, officials are looking at other ways to keep MWR programs viable.

They're beginning to scale back operating hours at fitness centers to the Defense Department-mandated 90 hours per week. Patrons increasingly find themselves being asked to pay nominal fees for aerobics and other fitness classes taught by paid staffers. Library hours at many installations have been reduced to 40 hours a week. Most bases now operate just one pool to reduce lifeguard salaries and other overhead costs. Outdoor recreation centers are considering charging rental fees for skis and other equipment, rather than the smaller maintenance fee charged in the past. Concerts and other special entertainment have been scaled back or cancelled altogether.

Volunteers, long the backbone of many MWR services and programs, are putting in more time in fitness centers, family support centers and libraries as well as on intramural fields to cover personnel shortfalls.

"It would be a lot tougher for our staff to deliver the quantity and quality of programs they do without those volunteers," Miles said. "And with sequestration, we find that we are depending on them more than ever. Without our volunteers, we would be in a world of hurt."

The decisions to reduce or eliminate services have been tough, Vogt acknowledged.

"With sequestration and the loss of appropriated fund support to continue many of our programs, we are going to have to increase user fees, reduce hours or possibly eliminate services," he said. "But we are doing everything in our power not to let that happen."

As decisions are made, the emphasis remains on readiness, officials emphasized.

The Navy, for example, has put fitness, libraries and the Liberty Program that serves single sailors at the top of its list, reported Lorraine Seidel, Navy recreation program manager.

"Those programs are pretty important to have," she said. "So by curtailing other programs somewhat, but not down to the bone, we are allowing some flexibility to retain those things that we really need to have on the base."

Based on extensive surveys, the Air Force identified fitness, appropriated-fund dining facilities, youth and child care services, outdoor programs and libraries as its most important offerings, said Michael Bensen, the Air Force Personnel Center's deputy director of services.

In some cases, the services are trying new innovations to keep popular programs running.

The Air Force, for example, is testing a pilot program at six bases that gives qualified users 24/7 access to fitness centers, even after the paid staff has left for the day. Based on the results, the initiative could be expanded to more bases, Bensen explained.

The Navy is revamping its community recreation program to bundle services and programs at one location, Seidel reported. A waterfront recreational area at Naval Base San Diego serves as a model, combining outdoor recreation services and the ticket booth for local tours and attractions under one roof, served by a central front desk. Eielson Air Force Base, Alaska, initiated a similar concept, consolidating MWR activities under one overall manager.

New partnerships are helping to keep services going despite budget cuts. In some cases, military patrons now get free or low-cost access to community or commercial services and programs that their installations no longer offer.

For example, Joint Base Andrews in Maryland established a partnership with a popular private-sector company that teaches rappelling, kayaking and other outdoor activities to military patrons. That saves the Air Force the cost of hiring its own instructors while ensuring "a quality experience at a reduced cost," Bensen said.

In other cases, installations are opening their doors to outside patrons. Many Army posts invite local swim teams to their pools and high school golf clubs to their golf courses. One particularly successful arrangement between the Presidio of Monterey and the city of Monterey, Calif., provides free maintenance services on the post's sports fields in exchange for city use of those fields based on availability, Vogt reported.

"We are generating income, working with our partners outside the gate, and offering programs we might not otherwise be able to offer," he said. "We are trying to be creative and tie into municipalities outside the gate, many of them in the same situation we are. So it is a perfect time for us to partner with everybody."

That mindset must continue to sustain morale, welfare and recreation programs through the current budget crunch, officials said. The result, they said, will have a direct impact on military readiness.

"We think MWR makes for an overall healthy living experience," Seidel said. "If we don't take a step back and take care of ourselves, we lose the ability to function and be at our best. That underlies everything MWR strives to provide, so [service members] can live a healthy life and be ready for the job."

LABOR DEPARTMENT AWARDS GRANT MONEY FOR HURRICANE SANDY RECOVERY IN R.I.

FROM:  U.S. DEPARTMENT OF LABOR 

US Department of Labor awards grant increment to continue Hurricane Sandy recovery efforts in Rhode Island

WASHINGTON — The U.S. Department of Labor today announced a $500,000 National Emergency Grant increment to assist Rhode Island with continued cleanup and recovery efforts following the devastation caused by Hurricane Sandy.

"Rhode Island is still cleaning up beaches and other public lands damaged by Hurricane Sandy," said acting Assistant Secretary of Labor for Employment and Training Eric M. Seleznow. "This additional funding will provide much needed cleanup assistance while also providing temporary work for those in need of employment."

On Nov. 3, 2012, the Federal Emergency Management Agency initially declared the Rhode Island counties of Bristol, Newport and Washington as eligible for FEMA's Public Assistance Program. FEMA subsequently declared Kent County as eligible for the program. More information on designated disaster areas in Rhode Island is available from FEMA at http://www.fema.gov/disaster/4089/designated-areas.

The department approved a grant for up to $1.5 million on Nov. 6, 2012, with $500,000 released initially. The department awarded a $500,000 grant increment in May 2013. This latest funding increment brings the total awarded to $1.5 million.

National Emergency Grants are part of the secretary of labor's discretionary fund and are awarded based on a state's ability to meet specific guidelines.

ASSEMBLY OF THE JAMES WEBB SPACE TELESCOPE

A crane in a clean room at NASA's Goddard Space Flight Center in Greenbelt, Md., lowers a test mass simulator (center of frame) onto the Ambient Optical Assembly Stand or AOAS to ensure it can support the James Webb Space Telescope's Optical Telescope Element during its assembly.  Image Credit: NASA/Chris Gunn

FROM:  NASA 

Dropping in on a James Webb Space Telescope Clean Room Test
The James Webb Space Telescope is a large space telescope, optimized for infrared wavelengths. It is scheduled for launch later in this decade. Webb will find the first galaxies that formed in the early Universe, connecting the Big Bang to our own Milky Way galaxy. Webb will peer through dusty clouds to see stars forming planetary systems, connecting the Milky Way to our own solar system. Webb's instruments will be designed to work primarily in the infrared range of the electromagnetic spectrum, with some capability in the visible range.

Webb will have a large mirror, 6.5 meters (21.3 feet) in diameter, and a sunshield the size of a tennis court. The mirror and sunshade won't fit into a rocket fully open, so both will be folded and open once Webb is in outer space. Webb will reside in an orbit about 1.5 million km (1 million miles) from Earth at the second Lagrange point.

The James Webb Space Telescope was named after a former NASA administrator.

PRESIDENT OBAMA'S WEEKLY ADRESS

WEEKLY ADDRESS: Working to Implement the Affordable Care Act

WASHINGTON, DC— In this week’s address, President Obama said we are on the way to fully implementing the Affordable Care Act and helping millions of Americans.  Unfortunately, a group of Republicans in Congress are working to confuse people and are even suggesting they will shut down the government if they cannot shut down the health care law.  Health insurance isn’t something to play politics with, and the President will keep working to make sure the law works as it’s supposed to, and he encourages everyone to visit HealthCare.gov to find out more about the law and how to sign up.


Remarks of President Barack Obama
Weekly Address
The White House
August 17, 2013

Hi, everybody.  Over the past few weeks, I’ve been visiting with Americans across the country to talk about what we need to do to secure a better bargain for the middle class.

We need to rebuild an economy that rewards hard work and responsibility; an economy built firmly on the cornerstones of middle-class life.  Good jobs.  A good education.  A home of your own.  A secure retirement.  And quality, affordable health care that’s there when you need it.

Right now, we’re well on our way to fully implementing the Affordable Care Act.  And in the next few months, we’ll reach a couple milestones with real meaning for millions of Americans.

If you’re one of the 85% of Americans who already have insurance, you’ve already got new benefits and protections under this law that you didn’t before.  Free checkups, mammograms, and contraceptive care.  Discounted prescription medicine on Medicare.  The fact you can stay on your parents’ plan until you turn 26.  And much, much more.  And it’s okay if you’re not a fan of the Affordable Care Act – you can take advantage of these things anyway.

If you don’t have insurance, beginning on October 1st, private plans will actually compete for your business.  You can comparison shop in an online marketplace, just like you would for cell phone plans or plane tickets.  You may be eligible for new tax credits to help you afford the plan that’s right for you.  And if you’re in the up to half of all Americans who’ve been sick or have a preexisting condition, this law means that beginning January 1st, insurance companies have to cover you – and they can’t use your medical history to charge you more than anybody else.

You can find out more about the law, and how to sign up to buy your own coverage right now at HealthCare.gov.  Tell your friends and neighbors without insurance about it, too.  And tell your kids that there’s a new, easy way to buy affordable plans specifically tailored to young people.

Many Members of Congress, in both parties, are working hard to inform their constituents about these benefits, protections, and affordable plans.  But there’s also a group of Republicans in Congress working hard to confuse people, and making empty promises that they’ll either shut down the health care law, or, if they don’t get their way, they’ll shut down the government.

Think about that.  They’re actually having a debate between hurting Americans who will no longer be denied affordable care just because they’ve been sick – and harming the economy and millions of Americans in the process.  And many Republicans are more concerned with how badly this debate will hurt them politically than they are with how badly it’ll hurt the country.

A lot of Republicans seem to believe that if they can gum up the works and make this law fail, they’ll somehow be sticking it to me.  But they’d just be sticking it to you.

Some even say that if you call their office with questions about the law, they’ll refuse to help.  Call me old-fashioned – but that’s lousy constituent service.  And it’s not what you deserve.

Your health insurance isn’t something to play politics with.  Our economy isn’t something to play politics with.  This isn’t a game.  This is about the economic security of millions of families.

See, in the states where governors and legislatures and insurers are working together to implement this law properly – states like California, New York, Colorado and Maryland – competition and consumer choice are actually making insurance affordable.

So I’m going to keep doing everything in my power to make sure this law works as it’s supposed to.  Because in the United States of America, health insurance isn’t a privilege – it is your right.  And we’re going to keep it that way.

Thanks.  And have a great weekend.

MT. EVEREST ICE

http://earthobservatory.nasa.gov/IOTD/view.php?id=81823&src=eoa-iotd

U.S. Department of Defense Armed with Science Update

U.S. Department of Defense Armed with Science Update

SECRETARY KERRY'S REMARKS ON VIOLENCE AND BLOODSHED IN EGYPT

FROM:  U.S. DEPARTMENT OF STATE 
Remarks by Secretary of State John Kerry on Egypt
Remarks
John Kerry
Secretary of State
Press Briefing Room
Washington, DC
August 14, 2013

Sorry to keep you waiting, folks. I’ll make a statement and then Jen Psaki will stay and take questions and brief everybody.

The United States strongly condemns today’s violence and bloodshed across Egypt. It’s a serious blow to reconciliation and the Egyptian’s people’s hopes for a transition towards democracy and inclusion. In the past week, at every occasion, perhaps even more than the past week, we and others have urged the government to respect the rights of free assembly and of free expression, and we have also urged all parties to resolve this impasse peacefully and underscored that demonstrators should avoid violence and incitement.

Today’s events are deplorable and they run counter to Egyptian aspirations for peace, inclusion, and genuine democracy. Egyptians inside and outside of the government need to take a step back. They need to calm the situation and avoid further loss of life. We also strongly oppose a return to a state of emergency law and we call on the government to respect basic human rights including freedom of peaceful assembly and due process under the law. And we believe that the state of emergency should end as soon as possible.

Violence is simply not a solution in Egypt or anywhere else. Violence will not create a roadmap for Egypt’s future. Violence only impedes the transition to an inclusive civilian government, a government chosen in free and fair elections that governs democratically, consistent with the goals of the Egyptian revolution. And violence and continued political polarization will only further tear the Egyptian economy apart and prevent it from growing and providing the jobs and the future that the people of Egypt want so badly.

The United States strongly supports the Egyptian people’s hope for a prompt and sustainable transition to an inclusive, tolerant, civilian-led democracy. Deputy Secretary of State Burns, together with our EU colleagues, provided constructive ideas and left them on the table during our talks in Cairo last week. From my many phone calls with many Egyptians, I believe they know full well what a constructive process would look like. The interim government and the military, which together possess the preponderance of power in this confrontation, have a unique responsibility to prevent further violence and to offer constructive options for an inclusive, peaceful process across the entire political spectrum. This includes amending the constitution, holding parliamentary and presidential elections, which the interim government itself has called for.

All of the other parties – all of the opposition, all of civil society, all parties – also share a responsibility to avoid violence and to participate in a productive path towards a political solution. There will not be a solution through further polarization. There can only be a political solution by bringing people together with a political solution.

So this is a pivotal moment for all Egyptians. The path towards violence leads only to greater instability, economic disaster, and suffering. The only sustainable path for either side is one towards a political solution. I am convinced from my conversations today with a number of foreign ministers, including the Foreign Minister of Egypt, I am convinced that that path is, in fact, still open and it is possible, though it has been made much, much harder, much more complicated, by the events of today.

The promise of the 2011 revolution has simply never been fully realized, and the final outcome of that revolution is not yet decided. It will be shaped in the hours ahead, in the days ahead. It will be shaped by the decisions which all of Egypt’s political leaders make now and in these days ahead. The world is closely watching Egypt and is deeply concerned about the events that we have witnessed today. The United States remains at the ready to work with all of the parties and with our partners and with others around the world in order to help achieve a peaceful, democratic way forward.

Now Jen will be happy to answer any questions. Thanks.

USDA RELEASES REPORT ON THE ILLEGAL SALE OF SNAP BENEFITS FOR CASH OR INELIGIBLE ITEMS

FROM:  U.S. DEPARTMENT OF AGRICULTURE 

USDA Releases New Report on Trafficking and Announces Additional Measures to Improve Integrity in the Supplemental Nutrition Assistance Program

WASHINGTON, August 15, 2013 – Agriculture Undersecretary for Food, Nutrition and Consumer Services Kevin Concannon today released a report that examines the trafficking rate in the Supplemental Nutrition Assistance Program (SNAP) and better pinpoints where the vast majority of SNAP trafficking occurs—smaller stores that typically offer minimal access to the healthier foods encouraged by the Dietary Guidelines for Americans. In response, the U.S. Department of Agriculture (USDA) will begin gathering public input on establishing stricter “depth of stock” requirements for SNAP retailers in order to discourage bad actors from entering and abusing the program. This move also supports USDA’s continuing efforts to improve SNAP recipients’ access to healthy foods.

The report indicates that the vast majority of trafficking – the illegal sale of SNAP benefits for cash or other ineligible items – occurs in smaller-sized retailers that typically stock fewer healthy foods. Over the last five fiscal years, the number of retailers authorized to participate in SNAP has grown by over 40 percent; small- and medium-sized retailers account for the vast majority of that growth. The rate of trafficking in larger grocery stores and supermarkets—where 82 percent of all benefits were redeemed—remained low at less than 0.5 percent.

While the overall trafficking rate has remained relatively steady at approximately one cent on the dollar, the report attributes the change in the rate to 1.3 percent primarily to the growth in small- and medium-sized retailers authorized to accept SNAP that may not provide sufficient healthful offerings to recipients. These retailers accounted for 85 percent of all trafficking redemptions. This finding echoes a Government Accountability Office (GAO) report that suggested minimal stocking requirements in SNAP may contribute to corrupt retailers entering the program.

“USDA has a zero tolerance policy on fraud, and we continue to strengthen our anti-fraud tactics to identify and exclude bad actors. More than any other factor, we know that the change in the trafficking rate is being driven by the growth in the number of smaller retailers where trafficking occurs at ten times the rate of larger grocery stores and supermarkets,” said Concannon. “And while the vast majority of retailers and participants are honest, exploring enhanced retailer requirements reaffirms our commitment to ensuring that everyone plays by the rules.”

In order to begin the process of establishing stricter retailer stocking requirements, USDA will be publishing a Request for Information (RFI) in the Federal Register to solicit feedback from stakeholders and the public.

USDA today also finalized a rule that will provide states the option to require SNAP recipients to make contact with the state when there have been an excessive number of requests for EBT card replacements in a year. Requesting excessive replacement cards can indicate that a client is exchanging SNAP cards for cash or other ineligible items. The rule will provide states the opportunity to determine whether the request is legitimate, or requires further investigation.

“Eliminating waste, fraud and abuse is a shared responsibility between the federal government and the states that administer SNAP,” said Concannon. “This new rule better safeguards the taxpayer investment in this critical nutrition program by providing states with additional tools to investigate potentially fraudulent behavior.”

SNAP continues to have one of the lowest fraud rates for Federal programs. Over the past several years, USDA has taken steps to improve SNAP oversight through its SNAP Stewardship Solutions Project. USDA has seen declines in the rate of trafficking from four percent down to about one percent of benefits over the last 15 years. While fraud is rare in SNAP, no amount is acceptable, and it will not be tolerated. USDA continues to crack down on individuals who violate the program and misuse taxpayer dollars by:

Supporting a Robust Investigation Process that, so far this fiscal year, has led to sanctioning of 549 stores and permanent disqualification of 826 stores for trafficking in SNAP benefits or falsifying an application. In 2012, USDA reviewed more than 15,000 stores and permanently disqualified almost 1,400 for program violations, a 14 percent increase over the 1,215 disqualified permanently in FY 2011. The Administration has requested additional resources for program integrity in the fiscal year 2014 budget request.

Cracking Down on New Forms of Fraud by requiring more frequent reviews of higher risk retailers, and expanding the definition of fraud to include so-called “water dumping” and online schemes to illegally sell benefits through social media sites like Facebook, Craigslist and Twitter.

Establishing Stiffer Penalties including a proposed rule that allows USDA to not only permanently disqualify a retailer who traffics, but to assess a monetary penalty in addition to the disqualification, and a separate proposal that would authorize USDA to immediately suspend payments to retailers suspected of flagrant trafficking violations while the retailer is under investigation.
Strengthening State Partnerships through data-sharing agreements to help states more aggressively target suspicious recipient activity and State Law Enforcement Bureau agreements, including a recently announced partnership with Massachusetts, that expands the power of states to investigate retailer fraud.
Improving Program Administration including ensuring that only eligible individuals participate and that recipients receive the correct amount of benefits with a record-high payment accuracy rate of 96.58 percent.

The SNAP Stewardship Solutions Project is part of the Obama Administration's ongoing Campaign to Cut Waste designed to fight fraud, abuse and misuse in federal programs. For more information about USDA efforts to combat fraud, visit the Stop SNAP fraud website at www.fns.usda.gov/snap/fraud.htm.

SNAP is the nation's first line of defense against hunger and is a vital supplement to the monthly food budget of millions low-income individuals. Nearly half of SNAP participants are children and more than 40 percent of recipients live in households with earnings.

USDA’s Food and Nutrition Service (FNS) oversees the administration of 15 nutrition assistance programs, including the Summer Food Service Program and other child nutrition programs, that touch the lives of one in four Americans over the course of a year. These programs work in concert to form a national safety net against hunger. Visit www.fns.usda.gov for information about FNS and nutrition assistance programs.

COMPANY AND FORMER CFO CHARGED BY SEC WITH FRAUD

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 
Commission Charges Anchor Bancorp Wisconsin and Former CFO with Fraud

The Securities and Exchange Commission announced today that it filed a settled civil action in the United States District Court for the District of Columbia against Anchor Bancorp Wisconsin, Inc. (Anchor) and Dale C. Ringgenberg, Anchor's former Chief Financial Officer. The Commission's complaint alleged, among other things, that Anchor and Ringgenberg intentionally or recklessly made material misstatements in Anchor's quarterly Report on Form 10 Q for the period ended June 30, 2009.

The Commission's complaint alleges that Ringgenberg took, or failed to take, actions to keep from having to correct earnings that Anchor had already released to its shareholders. Ringgenberg manipulated an estimate to offset an accounting adjustment required by Anchor's external auditors, and he refused or failed to properly account for real estate appraisals and related information that was available after the quarter closed but before Anchor filed its quarterly report.

Without admitting or denying the allegations in the Commission's complaint, Anchor agreed to settle the action against it by consenting to the entry of a final judgment permanently enjoining it from violating Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 10b-5 and 13a-13 thereunder. Ringgenberg agreed to consent, without admitting or denying the allegations in the Commission's complaint, to the entry of a final judgment: (1) permanently enjoining him from violating Section 10(b) of the Exchange Act and Exchange Act Rules 10b-5, 13a 14, 13b2 1, and 13b2-2(a) and from aiding and abetting violations of Exchange Act Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) and Rule 13a-13 thereunder; (2) imposing a civil penalty of $75,000; and (3) barring him from serving as an officer or director of a public company for five years. The settlement is subject to the approval of the district court.

The Commission acknowledges the assistance and cooperation of the Special Inspector General for the Troubled Asset Relief Program, the Office of the United States Attorney for the Western District of Wisconsin, and the Madison, Wisconsin Office of the Federal Bureau of Investigation.