FROM: U.S. DEFENSE DEPARTMENT
Presenter: Secretary of Defense Chuck Hagel and Indonesian Minister of Defense Purnomo Yusgiantoro August 26, 2013
Remarks by Secretary Hagel and Minister of Defense Purnomo to Indonesian troops in Jakarta, Indonesia
MINISTER OF DEFENSE PURNOMO YUSGIANTORO: (Translator)
Well, a very good afternoon to all of you. With us this afternoon is the secretary of defense, United States, Secretary Chuck Hagel. He arrived in Indonesia this morning, and then we paid a courtesy visit to the president, to the President Yudhoyono. With the president, we discussed a lot of things, the global issue, regional issue, and also the bilateral ties between Indonesia and U.S.
All right. After the visit from the palace, then, we came to the ministry of defense. We had the guest of honor, due to Secretary Hagel, and then we have bilateral meetings. Many things that we discuss, how we can enhance the cooperation between U.S. and Indonesia.
The important thing that I raise is the education and training, are things very important for you, the young officials. I think most of them, Secretary Hagel (inaudible) from the military academy, on the military academy, those young persons.
Then since after we finish with this program, we're going to have the signing of (inaudible) letter of agreement. And then we have a press conference. And tomorrow, both of us, you know, fly to Bandar Seri Begawan to meet 10 ASEAN defense ministers' meeting and plus eight countries.
So with this kind of introduction, I would like to ask you, Secretary Hagel, you want to say something before you discuss with this young official here. Please. The floor is yours.
SECRETARY OF DEFENSE CHUCK HAGEL: Minister -- Minister Purnomo, thank you. I very much appreciate an opportunity to see you again. And as you noted, we had a very positive and productive meeting with the president a couple of hours ago.
But I am particularly pleased and honored to have an opportunity to address all of you. You are an elite force. You have tremendously important responsibilities, as you know.
Minister Purnomo just noted that education and training are particularly important. And many times I think in militaries that can occasionally get lost. You know, we all begin our lives and finish our lives as complete people. We are individuals first and soldiers, or whatever your profession is, second. And a professional soldier, a well-trained, well-led, well-equipped soldier, is a pride of any country.
And it is the pride of a country because in democracies you recognize the rule of law. And you recognize your obligations are to your people and to each other and defending laws in the higher -- in the higher law of all of us, as -- as individuals.
So I congratulate you for your professionalism. I know some of you have graduated and attended some of our military institutions in the United States. And we're very proud of you. We're proud of our graduates. We have -- as you know, many of the U.S. military people come here in not only exchanges and exercises, but we take training here. And that exchange of people-to-people, regardless of your profession, but in particular the military-to-military exchange is a very solid bridge-building mechanism for countries.
And I just want you to know how proud we are of our militaries in the United States and what you're doing, as we work together to make a better world, to enhance peace and prosperity and security. That is your life; that is your commitment. And I do not know of a more noble profession than what you are doing on behalf of a better world.
So, thank you. Minister, thank you for allowing me the privilege to share a few words with these magnificent soldiers. Thank you.
MIN. PURNOMO: I just want to make sure, with Secretary Hagel, that, you know, he'll be able to -- he'll be happy to receive the Q&A, the question-and-answer from you. So feel free, you know, if you have any questions, because I believe that you were also a soldier before. You can -- you can share some of your experiences being a soldier before.
SEC. HAGEL: Well, I'm not in the same class or category with these soldiers. I did spend two years of my life in the United States Army. I fought in Vietnam in 1968, so I have some appreciation for war and for battle and what your challenges are and your training.
But I'm not in your class. I was a soldier for two years, but I guess if you're once a soldier, you're always a soldier, but I'm very proud of my service in the United States Army. Thank you.
MIN. PURNOMO: (speaking foreign language) Please.
Q: (Translator) Mr. Secretary, it is a great honor to have you among us today in Jakarta. I am (inaudible). I served in the U.N. peacekeeping mission in Lebanon, 2006 and 2007, and I am currently serving as the chief of operations at the 17th Airborne Infantry Brigade, part of KOSTRAD, the Army's strategic reserve command.
And here I'd like to inform you that I was pleased and was fortunate to be part of the IMET program, whereas I finished the advanced officers' course or the Maneuver Captain's Career Course from Fort Benning, 2011. During the six months' rigorous training, I had the opportunity to enrich my military knowledge and experience through engagement with my fellow American officers who have been deployed in Iraq and Afghanistan. In addition, I was able to interact with the local Americans and to learn about the local traditions and cultures. And I think it was a very rewarding experience for me, personally and professionally.
And I would like to take this rare opportunity to express my great expectation as a junior TNI officer that we can enhance our cooperation of our two militaries and also to strengthen the bond of our soldiers in the future. A great example was the last -- the last joint airborne exercise, taking place in Indonesia with the 82nd Airborne Division. That event served as an effective medium of exchange, knowledge, skills and experience, but on top of it, it was the spirit of brotherhood that made that kind of exercise even more valuable.
Therefore, I would like to recommend that we can enhance the military cooperations between the two countries by enhancing the IMET program through two sectors, just like what you have said earlier, education and training. As for education, it is so -- it will be very important for us if we can have a greater opportunity to send officers for post-graduate-level education, because it is critical to produce our very own soldier-scholars, because you want to make -- we want to develop our institution into more -- more professional, world-class military, including to produce brilliant strategic thinkers and defense practitioners.
And the second track will be joint exercises. We can -- I'm sorry, the military courses. The military courses is very valuable, because it will help us to -- to have certain number of officers who can develop our doctrines, tactics and procedures so we can be a more developed and -- and a more joint fighting forces.
And second track will be the joint exercises. We can enhance the existing regular joint exercises that we conduct in Indonesia, for example, the (inaudible) Shield and other trainings within our armed forces. And the second will be, if it is possible, Mr. Secretary, we can discuss this possibilities whether we can send our soldiers to train in your training ground in the U.S., so we can experience your advanced training facilities, which we believe that we can learn and acquire important lessons learned, especially in terms of military operations in urban terrain, as well as peace-making operations.
With this, we believe that both of our militaries can enhance cooperations and to pursue our common objective, especially to preserve peace and security in this region. I thank you.
SEC. HAGEL: Thank you. Very articulate summation of the quality of your forces represented by your words, and very wise words. And I thank you for that.
On the specific point of the IMET, I have always believed -- and I think most of the Congress of the United States -- I know President Obama and all of the leadership of the Pentagon and the American armed forces believe strongly that the IMET program is -- is one of the smartest, best investments that the United States can make in relationships around the world, and in particular for the future. And I think you and many of your colleagues are very clear examples of that.
The consequences of training and education hardly can be qualified, they are so important. Each of you are role models. And how you conduct yourselves, what you say, and how you lead ripple out in ways you'll probably never know. But people watch you. Your subordinates watch you. Others watch you carefully. And how you conduct yourselves is really the essence of leadership.
And that comes through a lot of things. It comes through other role models. We each have had role models in our lives. You have them. It comes through education, through training, through the professionalization of your services. IMET does that as well as any one program I think the United States has, so you can be assured that that program is going to continue and we'll continue to enhance it. Thank you.
MIN. PURNOMO: Well, it's time limit. We would like to thank for your presence here and thanks, Secretary Hagel, for sharing of your knowledge. And we're going to move now to the press conference in the other buildings. And, again, thank you very much. Appreciate it. (Applause.)
Tuesday, August 27, 2013
NAVIES OF CHINA AND U.S. PARTICIPATE IN COUNTER PIRACY EXERCISE
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| An MH-60S Seahawk helicopter assigned to the "Swamp Foxes" of Maritime Helicopter Combat Squadron 74 departs the guided-missile destroyer USS Mason during a U.S.-China cross-deck landing exercise with the Chinese navy destroyer Harbin in the Gulf of Aden, Aug. 24, 2013. The operation was part of a two-day counter piracy exercise between U.S. 5th Fleet and the Chinese navy. U.S. Navy photo by Petty Officer 2nd Class Rob Aylward |
U.S., Chinese Navies Exercise Counter Piracy in Gulf of Aden
By Donna Miles
American Forces Press Service
WASHINGTON, Aug. 26, 2013 - After concluding an ambitious counter piracy exercise yesterday with the Chinese navy, members of the U.S. 5th Fleet expressed hope it will lay groundwork for closer future cooperation in ensuring freedom of movement in the Gulf of Aden, other regional waters, and beyond.
The guided-missile destroyer USS Mason joined the Chinese destroyer Harbin and Chinese auxiliary replenishment oiler Weishanhu for the two-day exercise in the Gulf of Aden, Navy Capt. Joseph Naman, commander of Destroyer Squadron 50 and Task Force 55, said during a phone interview from Bahrain.
The Chinese oiler played the role of a pirated vessel, as crew members from the Mason and Harbin conducted a combined visit, board, search and seizure drill that included a night boarding, reported Navy Cmdr. D. Wilson Marks, Mason's commanding officer.
Simulated medical emergencies and hostage scenarios required the sailors to work together to provide a coordinated response.
In addition, the crews demonstrated synchronized maneuver techniques during a live-fire proficiency exercise, engaging an inflatable target with the 5-inch MK-45 lightweight gun and 3.9-inch ENG deck guns, Marks said.
Another "significant milestone," Naman said, was the landing of a helicopter from each country aboard the deck of each other's ship.
The exercise represented a big step beyond the first counterpiracy exercise between 5th Fleet and the Chinese navy, conducted in September near the Horn of Africa, Naman said. The 2012 exercise, which involved the USS Winston S. Churchill and the Chinese frigate Yi Yang, lasted only about six hours and was limited to a basic visit, board, search and secure exercise, follow-on discussion and crew lunch.
Throughout this week's mission, Marks said, he was struck by how similarly the two navies operate.
"What my crew found out is they are sailors like we are," practicing many of the same techniques as they confronted the same challenges, he said.
Both the United States and China recognize the importance of freedom of access and movement in the maritime environment, uninhibited by piracy or other illicit activity, Naman noted.
"I think both China and the U.S. share the common goal to make that happen," he said.
Both navies, for example, regularly conduct counterpiracy operations in the Gulf region.
The United States is part of a multinational coalition task force that works collaboratively in and around the Gulf of Aden, Arabian Sea, Indian Ocean and the Red Sea. China, in contrast, operates independently. Naman said he would like to see that change, and that he hopes exercises like the one conducted over the weekend will encourage China to consider joining the coalition.
International cooperation and measures taken by the civilian shipping industry to discourage pirates have brought a dramatic drop in piracy compared to just three to four years ago, he reported.
"The sum of the parts is greater than the one, which is what the coalition brings in," Marks said. "You can share best practices, build on each other's strengths [and] capitalize on those strengths. ... We are all working toward that shared goal of freedom of movement in the maritime [domain]. So if we all share the same goal, we ought to be working together, and that is what we are really trying to do."
In the meantime, he said, exercising together helps to increase interoperability between the U.S. and Chinese navies that they can draw on in the future, anywhere in the world.
"As we have learned in the past, military-to-military engagement pays big dividends, because we operate in the same environment and ... share the same common goals for that maritime environment," Naman said.
Marks, who called the exercise "one of those once-in-a-career experiences," said he and his crew hope for more opportunities to work with the Chinese navy.
For one of the participants, Navy Seaman Yi An, the exercise was particularly memorable. A naturalized U.S. citizen, the culinary specialist was born in China's Quingdao province -- which the Harbin's crew calls home.
Yi served as an interpreter during the exercise, generating a lot of excitement among the Chinese sailors as he shared hometown stories, Marks said. He was treated as an honored guest aboard the Harbin during a luncheon yesterday that concluded the exercise.
But exercising with their Chinese counterparts gave the entire Mason crew new insights, Marks said.
"Watching U.S. and Chinese sailors working side by side was amazing," he said. "We may come from different places and speak a different language, but at the end of the day, we all share a common interest in protecting the maritime environment."
(Navy Petty Officer 2nd Class Rob Aylward contributed to this article.)
U.S. TO SELL APACHE HELICOPTERS TO INDONESIA
FROM: U.S. DEFENSE DEPARTMENT
Hagel Announces U.S. Deal to Sell Helicopters to Indonesia
By Cheryl Pellerin
American Forces Press Service
JAKARTA, Indonesia, Aug. 26, 2013 - In a first-of-its-kind deal worth about $500 million, the United States has agreed to sell eight new Apache AH-64E attack helicopters and Longbow radars to Indonesia, Defense Secretary Chuck Hagel said here today.
Hagel announced the deal during a joint news conference with Indonesian Defense Minister Purnomo Yusgiantoro after productive meetings this afternoon with Yusgiantoro and earlier today with President Susilo Bambang Yudhoyono.
The secretary is visiting Indonesia as part of an eight-day, four-nation trip that has included a stop in Malaysia and will take him this week to Brunei and the Philippines.
"Providing Indonesia these world-class helicopters is an example of our commitment to help build Indonesia's military capability," Hagel said.
The U.S. military will train Indonesian pilots and help in developing tactics, techniques and procedures for operating in the Southeast Asian security environment, a senior defense official said, adding that details of the delivery and training timeline are being determined.
The agreement represents a significant advance in military capabilities by a key U.S. partner and is the sort of investment the United States believes is prudent to support security in the Asia-Pacific region, the official said.
The new capability "will help Indonesia respond to a range of contingencies, including counterpiracy operations and maritime awareness," he added.
"The United States is committed to working with Southeast Asian nations to grow defense capabilities and deepen military-to-military cooperation with all of our partners," the official said.
During the news conference with Yusgiantoro, Hagel said it has been impressive to watch a democratic Indonesia emerge as one of the most important contributors to peace and prosperity, not only in Asia, but also globally.
"Helping ensure the region's security and prosperity is a goal the United States strongly shares," the secretary said. "The strong and enduring security partnership that has been built between the United States and Indonesia is a relationship the United States greatly values."
Hagel said President Barack Obama looks forward to his October visit to Indonesia and to deepening ties between the two countries.
Progress on security includes increasingly complex exercises between the two militaries, and growing defense, trade and high-level policy engagement, the secretary added.
The two militaries recently launched an initiative to share best practices in defense planning and management to increase Indonesian military capability, Hagel said, and next month the United States and Indonesia will cohost a counterterrorism exercise under the framework of the ASEAN Defense Ministers Meeting-Plus.
ASEAN is the Association of Southeast Asian Nations, whose 10 member states are Burma, Brunei, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Defense ministers from these nations attend the annual ASEAN Defense Ministers Meeting, or ADMM. And the ADMM-Plus is made up of ASEAN members and eight dialogue partners: the United States, China, Japan, South Korea, Australia, India, New Zealand and Russia. This year's ADMM-Plus meeting will be start tomorrow in Brunei.
Hagel said the United States welcomes Indonesia's leadership in promoting regional security cooperation through ASEAN and regional forums such as the East Asia Summit.
"The United States is committed to further strengthening the U.S.-ASEAN relationship and I look forward to meeting with my counterparts this week at the ASEAN Defense Ministers Meeting- Plus in Brunei to address the many security challenges we face in this region," he said.
Developing long-term and enduring solutions to challenges like maritime security, humanitarian assistance, disaster relief, counterterrorism, and the peaceful management of disputes in the South China Sea calls for greater cooperation and respect for rules and norms among all parties and the institutions that underpin them, the secretary noted.
"I am also pleased to be able to announce that the U.S. and Indonesia have pledged mutual support and cooperation on the search and recovery of U.S. personnel missing from World War II," Hagel said.
Several Indonesian ministries have oversight of such requests, including defense, education and culture, and research and technology. All have agreed to process future requests from the Joint POW/MIA Accounting Command, a joint task force within the Defense Department whose mission is to account for Americans listed as prisoners of war, or missing in action, from all past wars and conflicts.
The United States believes that about 1,800 U.S. personnel are still missing in action from World War II in the waters and lands of Indonesia, a senior defense official said, adding that while not all are recoverable, current research indicates that hundreds ultimately may be found and brought home.
"The United States commitment to this effort is important to our personnel serving today," Hagel said, "to make clear that we stand by our pledge to leave no one behind."
Hagel Announces U.S. Deal to Sell Helicopters to Indonesia
By Cheryl Pellerin
American Forces Press Service
JAKARTA, Indonesia, Aug. 26, 2013 - In a first-of-its-kind deal worth about $500 million, the United States has agreed to sell eight new Apache AH-64E attack helicopters and Longbow radars to Indonesia, Defense Secretary Chuck Hagel said here today.
Hagel announced the deal during a joint news conference with Indonesian Defense Minister Purnomo Yusgiantoro after productive meetings this afternoon with Yusgiantoro and earlier today with President Susilo Bambang Yudhoyono.
The secretary is visiting Indonesia as part of an eight-day, four-nation trip that has included a stop in Malaysia and will take him this week to Brunei and the Philippines.
"Providing Indonesia these world-class helicopters is an example of our commitment to help build Indonesia's military capability," Hagel said.
The U.S. military will train Indonesian pilots and help in developing tactics, techniques and procedures for operating in the Southeast Asian security environment, a senior defense official said, adding that details of the delivery and training timeline are being determined.
The agreement represents a significant advance in military capabilities by a key U.S. partner and is the sort of investment the United States believes is prudent to support security in the Asia-Pacific region, the official said.
The new capability "will help Indonesia respond to a range of contingencies, including counterpiracy operations and maritime awareness," he added.
"The United States is committed to working with Southeast Asian nations to grow defense capabilities and deepen military-to-military cooperation with all of our partners," the official said.
During the news conference with Yusgiantoro, Hagel said it has been impressive to watch a democratic Indonesia emerge as one of the most important contributors to peace and prosperity, not only in Asia, but also globally.
"Helping ensure the region's security and prosperity is a goal the United States strongly shares," the secretary said. "The strong and enduring security partnership that has been built between the United States and Indonesia is a relationship the United States greatly values."
Hagel said President Barack Obama looks forward to his October visit to Indonesia and to deepening ties between the two countries.
Progress on security includes increasingly complex exercises between the two militaries, and growing defense, trade and high-level policy engagement, the secretary added.
The two militaries recently launched an initiative to share best practices in defense planning and management to increase Indonesian military capability, Hagel said, and next month the United States and Indonesia will cohost a counterterrorism exercise under the framework of the ASEAN Defense Ministers Meeting-Plus.
ASEAN is the Association of Southeast Asian Nations, whose 10 member states are Burma, Brunei, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Defense ministers from these nations attend the annual ASEAN Defense Ministers Meeting, or ADMM. And the ADMM-Plus is made up of ASEAN members and eight dialogue partners: the United States, China, Japan, South Korea, Australia, India, New Zealand and Russia. This year's ADMM-Plus meeting will be start tomorrow in Brunei.
Hagel said the United States welcomes Indonesia's leadership in promoting regional security cooperation through ASEAN and regional forums such as the East Asia Summit.
"The United States is committed to further strengthening the U.S.-ASEAN relationship and I look forward to meeting with my counterparts this week at the ASEAN Defense Ministers Meeting- Plus in Brunei to address the many security challenges we face in this region," he said.
Developing long-term and enduring solutions to challenges like maritime security, humanitarian assistance, disaster relief, counterterrorism, and the peaceful management of disputes in the South China Sea calls for greater cooperation and respect for rules and norms among all parties and the institutions that underpin them, the secretary noted.
"I am also pleased to be able to announce that the U.S. and Indonesia have pledged mutual support and cooperation on the search and recovery of U.S. personnel missing from World War II," Hagel said.
Several Indonesian ministries have oversight of such requests, including defense, education and culture, and research and technology. All have agreed to process future requests from the Joint POW/MIA Accounting Command, a joint task force within the Defense Department whose mission is to account for Americans listed as prisoners of war, or missing in action, from all past wars and conflicts.
The United States believes that about 1,800 U.S. personnel are still missing in action from World War II in the waters and lands of Indonesia, a senior defense official said, adding that while not all are recoverable, current research indicates that hundreds ultimately may be found and brought home.
"The United States commitment to this effort is important to our personnel serving today," Hagel said, "to make clear that we stand by our pledge to leave no one behind."
A REAL CRIMESTOPPER
FROM: U.S. MARSHALS SERVICE
1 Man Crime Stopper Team
Albuquerque, NM – On August 6, 2013, Detective Jesse Carter of the Albuquerque Police Department’s Special Investigation Unit, made his 36th arrest this year to date from crime stopper tips. Detective Carter is assigned full time to the United States Marshals Service’s South West Investigative Fugitive Team (SWIFT) task force. Detective Carter’s mission on the task force is to follow up on leads and tips generated by the Albuquerque Metro Crime Stopper unit.
Last night, the task force arrested fugitive Meghan Clark on charges of Robbery and Kidnapping. Clark’s boyfriend Tom Deforest was also arrested; he was booked on charges of Domestic Battery. Clark and Deforest mark arrests 35 and 36 for the year that have been the result of Crime Stopper tips. District of New Mexico, United States Marshal, Conrad Candelaria said “Detective Carter----- known by the United States Marshals Service for the District of New Mexico as Special Deputy United States Marshal Carter, is part of what defines “Force Multiplier”, whereby the task force is comprised of many law enforcement agencies, across many jurisdictions within New Mexico, because dangerous and violent fugitives do not recognize jurisdictional boundaries. The “Force Multiplier” is relied upon in order to achieve the important mission of fugitive apprehension, through collaboration, cooperation that is combined with exceptional investigative skill and it is through these efforts that our many communities in New Mexico are safer.”
1 Man Crime Stopper Team
Albuquerque, NM – On August 6, 2013, Detective Jesse Carter of the Albuquerque Police Department’s Special Investigation Unit, made his 36th arrest this year to date from crime stopper tips. Detective Carter is assigned full time to the United States Marshals Service’s South West Investigative Fugitive Team (SWIFT) task force. Detective Carter’s mission on the task force is to follow up on leads and tips generated by the Albuquerque Metro Crime Stopper unit.
Last night, the task force arrested fugitive Meghan Clark on charges of Robbery and Kidnapping. Clark’s boyfriend Tom Deforest was also arrested; he was booked on charges of Domestic Battery. Clark and Deforest mark arrests 35 and 36 for the year that have been the result of Crime Stopper tips. District of New Mexico, United States Marshal, Conrad Candelaria said “Detective Carter----- known by the United States Marshals Service for the District of New Mexico as Special Deputy United States Marshal Carter, is part of what defines “Force Multiplier”, whereby the task force is comprised of many law enforcement agencies, across many jurisdictions within New Mexico, because dangerous and violent fugitives do not recognize jurisdictional boundaries. The “Force Multiplier” is relied upon in order to achieve the important mission of fugitive apprehension, through collaboration, cooperation that is combined with exceptional investigative skill and it is through these efforts that our many communities in New Mexico are safer.”
IMAGE OF NEAR-EARTH OBJECT 1998 KN3
FROM: NASA
This image shows the potentially hazardous near-Earth object 1998 KN3 as it zips past a cloud of dense gas and dust near the Orion nebula. NEOWISE, the asteroid-hunting portion of the Wide-field Infrared Survey Explorer, or WISE, mission, snapped infrared pictures of the asteroid, seen as the yellow-green dot at upper left. Because asteroids are warmed by the sun to roughly room temperature, they glow brightly at the infrared wavelengths used by WISE. Astronomers use infrared light from asteroids to measure their sizes, and when combined with visible-light observations, they can also measure the reflectivity of their surfaces. The WISE infrared data reveal that this asteroid is about .7 mile (1.1 kilometers) in diameter and reflects only about 7 percent of the visible light that falls on its surface, which means it is relatively dark. In this image, blue denotes shorter infrared wavelengths, and red, longer. Hotter objects emit shorter-wavelength light, so they appear blue. The blue stars, for example, have temperatures of thousands of degrees. The coolest gas and dust appears red. The asteroid appears yellow in the image because it is about room temperature: cooler than the distant stars, but warmer than the dust. JPL manages the Wide-field Infrared Survey Explorer for NASA's Science Mission Directorate, Washington. The principal investigator, Edward Wright, is at UCLA. The mission was competitively selected under NASA's Explorers Program managed by the Goddard Space Flight Center, Greenbelt, Md. The science instrument was built by the Space Dynamics Laboratory, Logan, Utah, and the spacecraft was built by Ball Aerospace & Technologies Corp., Boulder, Colo. Science operations and data processing take place at the Infrared Processing and Analysis Center at the California Institute of Technology in Pasadena. Caltech manages JPL for NASA. Image Credit: NASA/JPL-Caltech.
Monday, August 26, 2013
SECRETARY OF STATE KERRY'S REMARKS ON CHEMICAL WEAPONS ATTACKS BY SYRIA
FROM: U.S. STATE DEPARTMENT
Remarks on Syria
Remarks
John Kerry
Secretary of State
Press Briefing Room
Washington, DC
August 26, 2013
Well, for the last several days President Obama and his entire national security team have been reviewing the situation in Syria, and today I want to provide an update on our efforts as we consider our response to the use of chemical weapons.
What we saw in Syria last week should shock the conscience of the world. It defies any code of morality. Let me be clear: The indiscriminate slaughter of civilians, the killing of women and children and innocent bystanders, by chemical weapons is a moral obscenity. By any standard it is inexcusable, and despite the excuses and equivocations that some have manufactured, it is undeniable.
The meaning of this attack goes beyond the conflict in Syria itself, and that conflict has already brought so much terrible suffering. This is about the large-scale, indiscriminate use of weapons that the civilized world long ago decided must never be used at all – a conviction shared even by countries that agree on little else. There is a clear reason that the world has banned entirely the use of chemical weapons. There is a reason the international community has set a clear standard and why many countries have taken major steps to eradicate these weapons. There is a reason why President Obama has made it such a priority to stop the proliferation of these weapons and lock them down where they do exist. There is a reason why President Obama has made clear to the Assad regime that this international norm cannot be violated without consequences. And there is a reason why no matter what you believe about Syria, all peoples and all nations who believe in the cause of our common humanity must stand up to assure that there is accountability for the use of chemical weapons so that it never happens again.
Last night after speaking with foreign ministers from around the world about the gravity of this situation, I went back and I watched the videos, the videos that anybody can watch in the social media, and I watched them one more gut-wrenching time. It is really hard to express in words the human suffering that they lay out before us. As a father, I can’t get the image out of my head of a man who held up his dead child, wailing while chaos swirled around him; the images of entire families dead in their beds without a drop of blood or even a visible wound; bodies contorting in spasms; human suffering that we can never ignore or forget. Anyone who can claim that an attack of this staggering scale could be contrived or fabricated needs to check their conscience and their own moral compass.
What is before us today is real, and it is compelling. So I also want to underscore that while investigators are gathering additional evidence on the ground, our understanding of what has already happened in Syria is grounded in facts informed by conscience and guided by common sense. The reported number of victims, the reported symptoms of those who were killed or injured, the firsthand accounts from humanitarian organizations on the ground like Doctors Without Borders and the Syria Human Rights Commission – these all strongly indicate that everything these images are already screaming at us is real, that chemical weapons were used in Syria.
Moreover, we know that the Syrian regime maintains custody of these chemical weapons. We know that the Syrian regime has the capacity to do this with rockets. We know that the regime has been determined to clear the opposition from those very places where the attacks took place. And with our own eyes, we have all of us become witnesses.
We have additional information about this attack, and that information is being compiled and reviewed together with our partners, and we will provide that information in the days ahead.
Our sense of basic humanity is offended not only by this cowardly crime but also by the cynical attempt to cover it up. At every turn, the Syrian regime has failed to cooperate with the UN investigation, using it only to stall and to stymie the important effort to bring to light what happened in Damascus in the dead of night. And as Ban Ki-moon said last week, the UN investigation will not determine who used these chemical weapons, only whether such weapons were used – a judgment that is already clear to the world.
I spoke on Thursday with Syrian Foreign Minister Muallim and I made it very clear to him that if the regime, as he argued, had nothing to hide, then their response should be immediate – immediate transparency, immediate access – not shelling. Their response needed to be unrestricted and immediate access. Failure to permit that, I told him, would tell its own story.
Instead, for five days, the Syrian regime refused to allow the UN investigators access to the site of the attack that would allegedly exonerate them. Instead, it attacked the area further, shelling it and systematically destroying evidence. That is not the behavior of a government that has nothing to hide. That is not the action of a regime eager to prove to the world that it had not used chemical weapons. In fact, the regime’s belated decision to allow access is too late, and it’s too late to be credible. Today’s reports of an attack on the UN investigators, together with the continued shelling of these very neighborhoods, only further weakens the regime’s credibility.
At President Obama’s direction, I’ve spent many hours over the last few days on the phone with foreign ministers and other leaders. The Administration is actively consulting with members of Congress and we will continue to have these conversations in the days ahead. President Obama has also been in close touch with the leaders of our key allies, and the President will be making an informed decision about how to respond to this indiscriminate use of chemical weapons. But make no mistake: President Obama believes there must be accountability for those who would use the world’s most heinous weapons against the world’s most vulnerable people. Nothing today is more serious and nothing is receiving more serious scrutiny.
Thank you.
Remarks on Syria
Remarks
John Kerry
Secretary of State
Press Briefing Room
Washington, DC
August 26, 2013
Well, for the last several days President Obama and his entire national security team have been reviewing the situation in Syria, and today I want to provide an update on our efforts as we consider our response to the use of chemical weapons.
What we saw in Syria last week should shock the conscience of the world. It defies any code of morality. Let me be clear: The indiscriminate slaughter of civilians, the killing of women and children and innocent bystanders, by chemical weapons is a moral obscenity. By any standard it is inexcusable, and despite the excuses and equivocations that some have manufactured, it is undeniable.
The meaning of this attack goes beyond the conflict in Syria itself, and that conflict has already brought so much terrible suffering. This is about the large-scale, indiscriminate use of weapons that the civilized world long ago decided must never be used at all – a conviction shared even by countries that agree on little else. There is a clear reason that the world has banned entirely the use of chemical weapons. There is a reason the international community has set a clear standard and why many countries have taken major steps to eradicate these weapons. There is a reason why President Obama has made it such a priority to stop the proliferation of these weapons and lock them down where they do exist. There is a reason why President Obama has made clear to the Assad regime that this international norm cannot be violated without consequences. And there is a reason why no matter what you believe about Syria, all peoples and all nations who believe in the cause of our common humanity must stand up to assure that there is accountability for the use of chemical weapons so that it never happens again.
Last night after speaking with foreign ministers from around the world about the gravity of this situation, I went back and I watched the videos, the videos that anybody can watch in the social media, and I watched them one more gut-wrenching time. It is really hard to express in words the human suffering that they lay out before us. As a father, I can’t get the image out of my head of a man who held up his dead child, wailing while chaos swirled around him; the images of entire families dead in their beds without a drop of blood or even a visible wound; bodies contorting in spasms; human suffering that we can never ignore or forget. Anyone who can claim that an attack of this staggering scale could be contrived or fabricated needs to check their conscience and their own moral compass.
What is before us today is real, and it is compelling. So I also want to underscore that while investigators are gathering additional evidence on the ground, our understanding of what has already happened in Syria is grounded in facts informed by conscience and guided by common sense. The reported number of victims, the reported symptoms of those who were killed or injured, the firsthand accounts from humanitarian organizations on the ground like Doctors Without Borders and the Syria Human Rights Commission – these all strongly indicate that everything these images are already screaming at us is real, that chemical weapons were used in Syria.
Moreover, we know that the Syrian regime maintains custody of these chemical weapons. We know that the Syrian regime has the capacity to do this with rockets. We know that the regime has been determined to clear the opposition from those very places where the attacks took place. And with our own eyes, we have all of us become witnesses.
We have additional information about this attack, and that information is being compiled and reviewed together with our partners, and we will provide that information in the days ahead.
Our sense of basic humanity is offended not only by this cowardly crime but also by the cynical attempt to cover it up. At every turn, the Syrian regime has failed to cooperate with the UN investigation, using it only to stall and to stymie the important effort to bring to light what happened in Damascus in the dead of night. And as Ban Ki-moon said last week, the UN investigation will not determine who used these chemical weapons, only whether such weapons were used – a judgment that is already clear to the world.
I spoke on Thursday with Syrian Foreign Minister Muallim and I made it very clear to him that if the regime, as he argued, had nothing to hide, then their response should be immediate – immediate transparency, immediate access – not shelling. Their response needed to be unrestricted and immediate access. Failure to permit that, I told him, would tell its own story.
Instead, for five days, the Syrian regime refused to allow the UN investigators access to the site of the attack that would allegedly exonerate them. Instead, it attacked the area further, shelling it and systematically destroying evidence. That is not the behavior of a government that has nothing to hide. That is not the action of a regime eager to prove to the world that it had not used chemical weapons. In fact, the regime’s belated decision to allow access is too late, and it’s too late to be credible. Today’s reports of an attack on the UN investigators, together with the continued shelling of these very neighborhoods, only further weakens the regime’s credibility.
At President Obama’s direction, I’ve spent many hours over the last few days on the phone with foreign ministers and other leaders. The Administration is actively consulting with members of Congress and we will continue to have these conversations in the days ahead. President Obama has also been in close touch with the leaders of our key allies, and the President will be making an informed decision about how to respond to this indiscriminate use of chemical weapons. But make no mistake: President Obama believes there must be accountability for those who would use the world’s most heinous weapons against the world’s most vulnerable people. Nothing today is more serious and nothing is receiving more serious scrutiny.
Thank you.
KEY PART OF CLIMATE ACTION PLAN BEGINS
FROM: ENVIRONMENTAL PROTECTION AGENCY
EPA Launches Online Green Sports Resource Directory
WASHINGTON — The U. S. Environmental Protection agency (EPA) is unveiling a new online Green Sports Resource Directory that can help teams, venues, and leagues save money and reduce carbon pollution through increased energy efficiency, a key part of President Obama's Climate Action Plan.
Additionally, the new directory contains information that can help teams reduce waste and gain recognition for their programs that reduce the environmental impact of their events. EPA Deputy Administrator Bob Perciasepe made the announcement today during the third annual Green Sports Alliance summit in New York City.
“As a founding partner of the Green Sports Alliance, EPA is committed to working with its members to help teams and sports venues green their operations, and engage fans,” said Deputy Administrator Perciasepe. “EPA’s new Green Sports Resource Directory will provide easy access to information on Agency tools and programs along with success stories to serve as examples of what can be achieved with a winning game plan for going green.”
Currently, the Green Sports Alliance has more than 180 members and is working with more than 75 teams at both the professional and collegiate levels and over 100 stadiums and sports venues across the country, with participation increasing daily. This week’s Summit includes a number of EPA speakers as well as leaders from across the sports community who recognize the potential for real environmental benefits from greening sports events and venues, and the potential for teams to inspire fans to adopt greener practices in their daily lives.
The Green Sports Resource Directory brings together Agency resources to support teams and their fans, stadiums, and venues, who want to improve their waste management, water and energy conservation, and other sustainability efforts.
EPA compiled a Green "Scoreboard" that highlights a number of winning efforts across numerous sports leagues and some statistics on the environmental and saving benefits. The Scoreboard is available on the Green Sports Resource Directory.
EPA Launches Online Green Sports Resource Directory
WASHINGTON — The U. S. Environmental Protection agency (EPA) is unveiling a new online Green Sports Resource Directory that can help teams, venues, and leagues save money and reduce carbon pollution through increased energy efficiency, a key part of President Obama's Climate Action Plan.
Additionally, the new directory contains information that can help teams reduce waste and gain recognition for their programs that reduce the environmental impact of their events. EPA Deputy Administrator Bob Perciasepe made the announcement today during the third annual Green Sports Alliance summit in New York City.
“As a founding partner of the Green Sports Alliance, EPA is committed to working with its members to help teams and sports venues green their operations, and engage fans,” said Deputy Administrator Perciasepe. “EPA’s new Green Sports Resource Directory will provide easy access to information on Agency tools and programs along with success stories to serve as examples of what can be achieved with a winning game plan for going green.”
Currently, the Green Sports Alliance has more than 180 members and is working with more than 75 teams at both the professional and collegiate levels and over 100 stadiums and sports venues across the country, with participation increasing daily. This week’s Summit includes a number of EPA speakers as well as leaders from across the sports community who recognize the potential for real environmental benefits from greening sports events and venues, and the potential for teams to inspire fans to adopt greener practices in their daily lives.
The Green Sports Resource Directory brings together Agency resources to support teams and their fans, stadiums, and venues, who want to improve their waste management, water and energy conservation, and other sustainability efforts.
EPA compiled a Green "Scoreboard" that highlights a number of winning efforts across numerous sports leagues and some statistics on the environmental and saving benefits. The Scoreboard is available on the Green Sports Resource Directory.
U.S.-RUSSIA MILITARY-TO-MILITARY COOPERATION IN TERRORIST HIJACKER EXERCISE
FROM: U.S. DEPARTMENT OF DEFENSE
Vigilant Eagle Continues Closer U.S.-Russian Cooperation
By Donna Miles
American Forces Press Service
WASHINGTON, Aug. 26, 2013 - Beginning tomorrow, fighter jets from the North American Aerospace Defense Command and the Russian air force will scramble to track and intercept "hijacked" aircraft during an air defense exercise viewed as a steppingstone toward closer military-to-military cooperation in additional areas.
Vigilant Eagle 13 kicked off today, with scenarios that present the United States, Canada and Russia with a common enemy: terrorist hijackers, Joseph Bonnet, director of joint training and exercises for NORAD and U.S. Northern Command, said during a telephone interview with American Forces Press Service.
The exercise is the fifth in a series, based on a 2003 agreement between the sitting U.S. and Russian presidents to strengthen the two militaries' relationship and their ability to work together. The threat of international hijackers served as a foundation to help advance that effort, resulting in an exercise program that addresses a recognized threat, Bonnet explained.
Vigilant Eagle began in 2008 as a command post exercise. At Russia's request, it now alternates between CPXs that test out principles and procedures in a computer-based setting and "live-fly" exercises that apply those principles and procedures the following year.
This year's exercise is the third in the series to incorporate actual aircraft, Bonnet reported. A Russian Tupolev and a commercial aircraft contracted by the United States will simulate commercial airliners seized by terrorists. The U.S. Air Force's Airborne Warning and Control System and Russia's A-50 Beriev will serve as command-and-control platforms.
Live fighter jets -- Canadian CF-18 Hornets and Russian Sukhois -- will track, identify, intercept and follow the hijacked aircraft, and both Canada and Russia will conduct air-to-air refueling operations. The Canadian air force has been integral to past Vigilant Eagle exercises, but is contributing aircraft for the first time this year, Bonnet said.
In addition, the Federal Aviation Administration and its Russian equivalent are participating.
The scenario involves two "hijacked" commercial aircraft that challenge participants on the ground and in the sky to provide a coordinated response, Bonnet explained. The first flight, to originate tomorrow from Anchorage, Alaska, will travel into Russian airspace. The following day, a Russian aircraft will take off from Anadyr, Russia, toward U.S. airspace.
When the aircraft fail to respond to communications, NORAD, the U.S.-Canada command that safeguards U.S. skies under Operation Noble Eagle, and the Russian air force will move into action. Both will launch or divert fighter jets to investigate and follow the suspect aircraft headed toward each other's airspace. At that point, they will hand off the missions to each other to complete.
Working together in Anchorage and Anadyr and at the NORAD headquarters in Colorado Springs, Colo., participants will cooperate in escort and handoff procedures using two distinct communications, command-and-control and air traffic control systems, Bonnet said.
Vigilant Eagle has become more ambitious and valuable with each iteration, Bonnet said, noting that this year's exercise will be no different.
"This is the culmination of everything that has gone on in previous exercises, and we expect it to continue to mature," he said. "Like us, the Russian Federation air force is eager to expand the scope and complexity of the exercise, and to look into other areas," such as related search-and-rescue and airfield operations.
Bonnet called continuation of Vigilant Eagle, particularly at a time when budget costs have caused the cancellation of many other exercises, a success in itself. With fewer than 100 people directly involved from the United States, Vigilant Eagle offers tremendous "bang for the buck," he said.
"This is a small, relatively inexpensive exercise with a huge payoff," he said. "It doesn't cost any of the countries a lot of money, but it is building things that have immediate value for all of them. When you have procedures and a means of communicating information between both sides, that has a lot of value."
Another big success, Bonnet said, is that the exercise has transcended leadership changes both in the United States and in Russia, as well as recent political tensions between them.
Both countries recognize the importance of continued cooperation to keep their international borders safe, he said.
"It is one of the biggest single areas where the Russian Federation, U.S. and Canada can truly cooperate," he said. "All three countries share a common objective in thwarting, combating and cooperating against terrorism."
As their militaries work together to confront terrorist hijackers, Bonnet said, they are laying the foundation for future cooperation in other areas.
"What we are trying to do is continually build and expand the exercise and use this as a basis for moving the relationship forward," he said. "That, to me, is the biggest value of Vigilant Eagle."
Vigilant Eagle Continues Closer U.S.-Russian Cooperation
By Donna Miles
American Forces Press Service
WASHINGTON, Aug. 26, 2013 - Beginning tomorrow, fighter jets from the North American Aerospace Defense Command and the Russian air force will scramble to track and intercept "hijacked" aircraft during an air defense exercise viewed as a steppingstone toward closer military-to-military cooperation in additional areas.
Vigilant Eagle 13 kicked off today, with scenarios that present the United States, Canada and Russia with a common enemy: terrorist hijackers, Joseph Bonnet, director of joint training and exercises for NORAD and U.S. Northern Command, said during a telephone interview with American Forces Press Service.
The exercise is the fifth in a series, based on a 2003 agreement between the sitting U.S. and Russian presidents to strengthen the two militaries' relationship and their ability to work together. The threat of international hijackers served as a foundation to help advance that effort, resulting in an exercise program that addresses a recognized threat, Bonnet explained.
Vigilant Eagle began in 2008 as a command post exercise. At Russia's request, it now alternates between CPXs that test out principles and procedures in a computer-based setting and "live-fly" exercises that apply those principles and procedures the following year.
This year's exercise is the third in the series to incorporate actual aircraft, Bonnet reported. A Russian Tupolev and a commercial aircraft contracted by the United States will simulate commercial airliners seized by terrorists. The U.S. Air Force's Airborne Warning and Control System and Russia's A-50 Beriev will serve as command-and-control platforms.
Live fighter jets -- Canadian CF-18 Hornets and Russian Sukhois -- will track, identify, intercept and follow the hijacked aircraft, and both Canada and Russia will conduct air-to-air refueling operations. The Canadian air force has been integral to past Vigilant Eagle exercises, but is contributing aircraft for the first time this year, Bonnet said.
In addition, the Federal Aviation Administration and its Russian equivalent are participating.
The scenario involves two "hijacked" commercial aircraft that challenge participants on the ground and in the sky to provide a coordinated response, Bonnet explained. The first flight, to originate tomorrow from Anchorage, Alaska, will travel into Russian airspace. The following day, a Russian aircraft will take off from Anadyr, Russia, toward U.S. airspace.
When the aircraft fail to respond to communications, NORAD, the U.S.-Canada command that safeguards U.S. skies under Operation Noble Eagle, and the Russian air force will move into action. Both will launch or divert fighter jets to investigate and follow the suspect aircraft headed toward each other's airspace. At that point, they will hand off the missions to each other to complete.
Working together in Anchorage and Anadyr and at the NORAD headquarters in Colorado Springs, Colo., participants will cooperate in escort and handoff procedures using two distinct communications, command-and-control and air traffic control systems, Bonnet said.
Vigilant Eagle has become more ambitious and valuable with each iteration, Bonnet said, noting that this year's exercise will be no different.
"This is the culmination of everything that has gone on in previous exercises, and we expect it to continue to mature," he said. "Like us, the Russian Federation air force is eager to expand the scope and complexity of the exercise, and to look into other areas," such as related search-and-rescue and airfield operations.
Bonnet called continuation of Vigilant Eagle, particularly at a time when budget costs have caused the cancellation of many other exercises, a success in itself. With fewer than 100 people directly involved from the United States, Vigilant Eagle offers tremendous "bang for the buck," he said.
"This is a small, relatively inexpensive exercise with a huge payoff," he said. "It doesn't cost any of the countries a lot of money, but it is building things that have immediate value for all of them. When you have procedures and a means of communicating information between both sides, that has a lot of value."
Another big success, Bonnet said, is that the exercise has transcended leadership changes both in the United States and in Russia, as well as recent political tensions between them.
Both countries recognize the importance of continued cooperation to keep their international borders safe, he said.
"It is one of the biggest single areas where the Russian Federation, U.S. and Canada can truly cooperate," he said. "All three countries share a common objective in thwarting, combating and cooperating against terrorism."
As their militaries work together to confront terrorist hijackers, Bonnet said, they are laying the foundation for future cooperation in other areas.
"What we are trying to do is continually build and expand the exercise and use this as a basis for moving the relationship forward," he said. "That, to me, is the biggest value of Vigilant Eagle."
BANK SUED BY LABOR DEPARTMENT OVER ILLEGAL DIVERSION OF EMPLOYEE ASSETS
FROM: U.S. LABOR DEPARTMENT
US Department of Labor sues San Francisco's California Pacific Bank
Nearly $1.4 million in employee stock ownership assets allegedly mismanaged
SAN FRANCISCO — The U.S. Department of Labor has filed a lawsuit against San Francisco's California Pacific Bank and four of its directors. The complaint alleges that the bank, its CEO and three additional fiduciaries of the bank's Employee Stock Ownership Plan mismanaged plan assets resulting in potential plan losses totaling approximately $1.4 million. The suit asks the court to require the fiduciaries to restore all losses they caused to the plan.
The department alleges that after terminating the ESOP in 2010, the fiduciaries violated the Employee Retirement Income Security Act by failing to liquidate and distribute plan assets in cash to plan participants as required. Because the bank is not a publicly traded company, participants were left with shares of the company's stock they could not easily liquidate for cash, if at all.
Agency investigators determined that the participants would have received approximately $1.24 million if the plan's 97,237 shares had been liquidated and distributed in cash at their assessed December 2009 value. The lawsuit also alleges that in 2011, $81,407 was improperly diverted to the bank, and in 2012, the fiduciaries improperly transferred nearly $70,000 in plan assets to the bank. Finally it is alleged that the bank also held plan assets in non-interest bearing accounts, making assets available for bank use without charge and without accruing interest on the funds for the benefit of the plan.
The complaint names California Pacific Bank CEO and board member Richard Chi, who served as the plan administrator and a plan trustee. Also named are board members and trustees Akila Chen, Kent Chen, and William Mo. The suit asks the court to permanently remove all four as plan fiduciaries and to appoint an independent fiduciary with control over the plan and its assets. The independent fiduciary would administer the liquidation and termination of the plan. The complaint also seeks to permanently enjoin the defendants from ever serving, directly or indirectly, as a fiduciary or service provider with respect to any employee benefit plan subject to ERISA, and to require them to disgorge to the plan any financial benefits they realized as a result of their violations.
US Department of Labor sues San Francisco's California Pacific Bank
Nearly $1.4 million in employee stock ownership assets allegedly mismanaged
SAN FRANCISCO — The U.S. Department of Labor has filed a lawsuit against San Francisco's California Pacific Bank and four of its directors. The complaint alleges that the bank, its CEO and three additional fiduciaries of the bank's Employee Stock Ownership Plan mismanaged plan assets resulting in potential plan losses totaling approximately $1.4 million. The suit asks the court to require the fiduciaries to restore all losses they caused to the plan.
The department alleges that after terminating the ESOP in 2010, the fiduciaries violated the Employee Retirement Income Security Act by failing to liquidate and distribute plan assets in cash to plan participants as required. Because the bank is not a publicly traded company, participants were left with shares of the company's stock they could not easily liquidate for cash, if at all.
Agency investigators determined that the participants would have received approximately $1.24 million if the plan's 97,237 shares had been liquidated and distributed in cash at their assessed December 2009 value. The lawsuit also alleges that in 2011, $81,407 was improperly diverted to the bank, and in 2012, the fiduciaries improperly transferred nearly $70,000 in plan assets to the bank. Finally it is alleged that the bank also held plan assets in non-interest bearing accounts, making assets available for bank use without charge and without accruing interest on the funds for the benefit of the plan.
The complaint names California Pacific Bank CEO and board member Richard Chi, who served as the plan administrator and a plan trustee. Also named are board members and trustees Akila Chen, Kent Chen, and William Mo. The suit asks the court to permanently remove all four as plan fiduciaries and to appoint an independent fiduciary with control over the plan and its assets. The independent fiduciary would administer the liquidation and termination of the plan. The complaint also seeks to permanently enjoin the defendants from ever serving, directly or indirectly, as a fiduciary or service provider with respect to any employee benefit plan subject to ERISA, and to require them to disgorge to the plan any financial benefits they realized as a result of their violations.
DEPARTMENTS OF JUSTICE AND EDUCATION ANNOUNCE RESEARCH FINDINGS ON EDUCATION AND RECIDIVISM
FROM: U.S. JUSTICE DEPARTMENT
Thursday, August 22, 2013
Justice and Education Departments Announce New Research Showing Prison Education Reduces Recidivism, Saves Money, Improves Employment
Attorney General Eric Holder and Secretary of Education Arne Duncan today announced research findings showing that, on average, inmates who participated in correctional education programs had 43 percent lower odds of returning to prison than inmates who did not. Each year approximately 700,000 individuals leave federal and state prisons; about half of them will be reincarcerated within three years. The research, funded by the Justice Department’s Bureau of Justice Assistance, was released today by the RAND Corporation.
“These findings reinforce the need to become smarter on crime by expanding proven strategies for keeping our communities safe, and ensuring that those who have paid their debts to society have the chance to become productive citizens,” said Attorney General Holder. “We have an opportunity and an obligation to use smart methods – and advance innovative new programs – that can improve public safety while reducing costs. As it stands, too many individuals and communities are harmed, rather than helped, by a criminal justice system that does not serve the American people as well as it should. This important research is part of our broader effort to change that.”
The findings, from the largest-ever analysis of correctional educational studies, indicate that prison education programs are cost effective. According to the research, a one dollar investment in prison education translates into reducing incarceration costs by four to five dollars during the first three years after release, when those leaving prison are most likely to return.
“Correctional education programs provide incarcerated individuals with the skills and knowledge essential to their futures,” said Secretary of Education Duncan. “Investing in these education programs helps released prisoners get back on their feet—and stay on their feet—when they return to communities across the country.”
With funding from The Second Chance Act (P.L. 110-199) of 2007, the RAND Corporation’s analysis of correctional education research found that employment after release was 13 percent higher among prisoners who participated in either academic or vocational education programs than among those who did not. Those who participated in vocational training were 28 percent more likely to be employed after release from prison than those who did not receive such training.
The report is a collaborative effort of the Departments of Justice and Education, two of 20 federal agencies that make up the federal interagency Reentry Council. The Reentry Council’s members are working to make communities safer by reducing recidivism and victimization; assisting those who return from prison and jail in becoming contributing members of their communities; and saving taxpayer dollars by lowering the direct and collateral costs of incarceration. Attorney General Holder chairs the Reentry Council which he established in January 2011.
Thursday, August 22, 2013
Justice and Education Departments Announce New Research Showing Prison Education Reduces Recidivism, Saves Money, Improves Employment
Attorney General Eric Holder and Secretary of Education Arne Duncan today announced research findings showing that, on average, inmates who participated in correctional education programs had 43 percent lower odds of returning to prison than inmates who did not. Each year approximately 700,000 individuals leave federal and state prisons; about half of them will be reincarcerated within three years. The research, funded by the Justice Department’s Bureau of Justice Assistance, was released today by the RAND Corporation.
“These findings reinforce the need to become smarter on crime by expanding proven strategies for keeping our communities safe, and ensuring that those who have paid their debts to society have the chance to become productive citizens,” said Attorney General Holder. “We have an opportunity and an obligation to use smart methods – and advance innovative new programs – that can improve public safety while reducing costs. As it stands, too many individuals and communities are harmed, rather than helped, by a criminal justice system that does not serve the American people as well as it should. This important research is part of our broader effort to change that.”
The findings, from the largest-ever analysis of correctional educational studies, indicate that prison education programs are cost effective. According to the research, a one dollar investment in prison education translates into reducing incarceration costs by four to five dollars during the first three years after release, when those leaving prison are most likely to return.
“Correctional education programs provide incarcerated individuals with the skills and knowledge essential to their futures,” said Secretary of Education Duncan. “Investing in these education programs helps released prisoners get back on their feet—and stay on their feet—when they return to communities across the country.”
With funding from The Second Chance Act (P.L. 110-199) of 2007, the RAND Corporation’s analysis of correctional education research found that employment after release was 13 percent higher among prisoners who participated in either academic or vocational education programs than among those who did not. Those who participated in vocational training were 28 percent more likely to be employed after release from prison than those who did not receive such training.
The report is a collaborative effort of the Departments of Justice and Education, two of 20 federal agencies that make up the federal interagency Reentry Council. The Reentry Council’s members are working to make communities safer by reducing recidivism and victimization; assisting those who return from prison and jail in becoming contributing members of their communities; and saving taxpayer dollars by lowering the direct and collateral costs of incarceration. Attorney General Holder chairs the Reentry Council which he established in January 2011.
COURT ENFORCES NLRB ORDERS AGAINST RELCO LOCOMOTIVES, INC., REGARDING TERMINATED EMPLOYEES
FROM: U.S. LABOR DEPARTMENT
Eighth Circuit Court of Appeals Enforces NLRB Orders Against RELCO Locomotives, Inc.
In a decision issued on August 20, 2013, the Eighth Circuit Court of Appeals enforced two decisions and orders issued by the National Labor Relations Board against Relco, Locomotives, Inc. In enforcing the Board’s Orders, the Court agreed that Relco illegally terminated a total of eight employees in violation of the National Labor Relations Act.
Relco repairs and rebuilds locomotives at its facility in Albia, Iowa. In 2009, employees in the Albia facility sought union representation. Relco suddenly discharged the leading employee Union adherents. In addition, in 2010, Relco terminated two other employees who were involved in protests that Relco was overcharging employees to clean their uniforms. After an investigation, Region 18 of the Board, located in Minneapolis, issued a complaint alleging the four terminations violated the National Labor Relations Act. The legality of the terminations was litigated before an administrative law judge on September 14 through 16, 2010.
In 2011, employees again sought union representation. In March 2011, Relco terminated two additional employees who not only were involved in the renewed union organizing, but who also testified in support of the discharged employees in the September 2010 NLRB proceeding. Around the same time, Relco terminated another two employees who expressed concerns about job security when there were rumors in the plant that the company had terminated another employee. Following a second investigation, Region 18 issued a second complaint against Relco alleging that the four additional terminations also violated the Act. The legality of these four terminations was litigated before a different administrative law judge than the first complaint, on August 9 and 10, 2011.
In enforcing the Board Orders, the Eighth Circuit stated that there was substantial evidence that Relco terminated two employees in 2009 because of their union support; that Relco terminated two other employees in 2010 because of their protests involving overcharging for cleaning work uniforms; that Relco terminated two employees in 2011 because of their testimony before the NLRB in the case involving the 2009 terminations; and that two additional employees were illegally terminated because of their discussions and concerns about the rumored termination of another employee. In doing so, the Court noted that the National Labor Relations Act “provides protections to workers who seek to form a union or otherwise engage in concerted labor activities.”
Finally, the Court (Circuit Judge Smith dissenting) found that Relco waived its right to challenge the Board’s decision on the basis that the Board panel deciding the cases was not constitutionally appointed.
Eighth Circuit Court of Appeals Enforces NLRB Orders Against RELCO Locomotives, Inc.
In a decision issued on August 20, 2013, the Eighth Circuit Court of Appeals enforced two decisions and orders issued by the National Labor Relations Board against Relco, Locomotives, Inc. In enforcing the Board’s Orders, the Court agreed that Relco illegally terminated a total of eight employees in violation of the National Labor Relations Act.
Relco repairs and rebuilds locomotives at its facility in Albia, Iowa. In 2009, employees in the Albia facility sought union representation. Relco suddenly discharged the leading employee Union adherents. In addition, in 2010, Relco terminated two other employees who were involved in protests that Relco was overcharging employees to clean their uniforms. After an investigation, Region 18 of the Board, located in Minneapolis, issued a complaint alleging the four terminations violated the National Labor Relations Act. The legality of the terminations was litigated before an administrative law judge on September 14 through 16, 2010.
In 2011, employees again sought union representation. In March 2011, Relco terminated two additional employees who not only were involved in the renewed union organizing, but who also testified in support of the discharged employees in the September 2010 NLRB proceeding. Around the same time, Relco terminated another two employees who expressed concerns about job security when there were rumors in the plant that the company had terminated another employee. Following a second investigation, Region 18 issued a second complaint against Relco alleging that the four additional terminations also violated the Act. The legality of these four terminations was litigated before a different administrative law judge than the first complaint, on August 9 and 10, 2011.
In enforcing the Board Orders, the Eighth Circuit stated that there was substantial evidence that Relco terminated two employees in 2009 because of their union support; that Relco terminated two other employees in 2010 because of their protests involving overcharging for cleaning work uniforms; that Relco terminated two employees in 2011 because of their testimony before the NLRB in the case involving the 2009 terminations; and that two additional employees were illegally terminated because of their discussions and concerns about the rumored termination of another employee. In doing so, the Court noted that the National Labor Relations Act “provides protections to workers who seek to form a union or otherwise engage in concerted labor activities.”
Finally, the Court (Circuit Judge Smith dissenting) found that Relco waived its right to challenge the Board’s decision on the basis that the Board panel deciding the cases was not constitutionally appointed.
'L.A. GANGSTER HUNTED DOWN BY U.S. MARSHALS'
FROM: U.S. MARSHALS SERVICE
L.A. Gangster Wanted for Murder Hunted Down by U.S. Marshals and Arrested in Mexico
Tucson, AZ – Today, Thomas Ruben Velarde, age 26, of California, was returned back to the United States and into the hands of awaiting Deputy U.S. Marshals and detectives with the Los Angeles County Sheriff’s Department. Velarde was deported by Mexican law enforcement officials through the Nogales Port of Entry in Nogales, Arizona. Velarde, aka “Poison” and “Serio,” is a known street gang member and has been wanted for homicide with a bond of nine million dollars, since January 2009, for his alleged participation in a homicide that killed one man and wounded two others.
On January 11, 2009, Velarde and Patricio Michel, age 26, confronted three male subjects in a parking lot outside a Mexican food restaurant in Compton, California. An altercation between the subjects ensued and Velarde allegedly shot at the three males, killing a 28 year old male and wounding the other two.
Within close proximity of the incident two armed security guards hired to work at a nearby party heard the gun shots and responded. While approaching the scene, the security guards observed a vehicle accelerating in their direction and in self-defense fired upon the vehicle. The vehicle fled the area and a search for Velarde and Michel began. Law enforcement officers located and arrested Michel later that morning at his residence in Downey, California. Detectives conducting the homicide investigation learned that Velarde had fled to the Republic of Mexico, where his whereabouts remained unknown.
On January 26, 2009, Velarde and Michel were both charged with one count of murder and two counts of attempted murder. Velarde maintained his fugitive status for over four years and was featured on the television show America’s Most Wanted, meanwhile, Michel continued his journey through the justice system. On July 14, 2010, Michel pled guilty to manslaughter with the use of a firearm, and was
sentenced to 15 years in a California state prison. Velarde continued to elude U.S. law enforcement officials until recent information on his location was obtained. Deputies with the U.S. Marshals led Violent Offender Taskforce - Mexican Investigative Liaison unit were contacted and were requested to assist with newly discovered information. Deputies immediately began to assist the Mexican authorities with their investigation of U.S. fugitive, Velarde. Authorities in Mexico located Velarde and arrested him without incident in Huatabampo, Sonora Mexico. Velarde was taken into custody by Deputy U.S. Marshals and was transported to the Pima County Detention Center where he will await his extradition back to Los Angeles, California.
United States Marshal David Gonzales stated, “Tracking down and arresting individuals that commit these violent acts in our communities is a priority of the United States Marshals Service. It is my hope this arrest can bring some sense of closure to the victim’s family.” He added, “We will continue to work with our law enforcement partners in Mexico and throughout the United States to track down dangerous individuals.”
The federal, state, and local law enforcement agencies that comprise the Arizona WANTED Violent Offender Taskforce (Tucson Metro Division) include: U.S. Marshals Service; Immigration and Customs Enforcement; Arizona Department of Public Safety; Pima County Adult Probation Office; Arizona Department of Corrections; Tucson Police Department; U.S. Border Patrol; Pima County Sheriff’s Department; Bureau of Alcohol, Tobacco, Firearms & Explosives.
L.A. Gangster Wanted for Murder Hunted Down by U.S. Marshals and Arrested in Mexico
Tucson, AZ – Today, Thomas Ruben Velarde, age 26, of California, was returned back to the United States and into the hands of awaiting Deputy U.S. Marshals and detectives with the Los Angeles County Sheriff’s Department. Velarde was deported by Mexican law enforcement officials through the Nogales Port of Entry in Nogales, Arizona. Velarde, aka “Poison” and “Serio,” is a known street gang member and has been wanted for homicide with a bond of nine million dollars, since January 2009, for his alleged participation in a homicide that killed one man and wounded two others.
On January 11, 2009, Velarde and Patricio Michel, age 26, confronted three male subjects in a parking lot outside a Mexican food restaurant in Compton, California. An altercation between the subjects ensued and Velarde allegedly shot at the three males, killing a 28 year old male and wounding the other two.
Within close proximity of the incident two armed security guards hired to work at a nearby party heard the gun shots and responded. While approaching the scene, the security guards observed a vehicle accelerating in their direction and in self-defense fired upon the vehicle. The vehicle fled the area and a search for Velarde and Michel began. Law enforcement officers located and arrested Michel later that morning at his residence in Downey, California. Detectives conducting the homicide investigation learned that Velarde had fled to the Republic of Mexico, where his whereabouts remained unknown.
On January 26, 2009, Velarde and Michel were both charged with one count of murder and two counts of attempted murder. Velarde maintained his fugitive status for over four years and was featured on the television show America’s Most Wanted, meanwhile, Michel continued his journey through the justice system. On July 14, 2010, Michel pled guilty to manslaughter with the use of a firearm, and was
sentenced to 15 years in a California state prison. Velarde continued to elude U.S. law enforcement officials until recent information on his location was obtained. Deputies with the U.S. Marshals led Violent Offender Taskforce - Mexican Investigative Liaison unit were contacted and were requested to assist with newly discovered information. Deputies immediately began to assist the Mexican authorities with their investigation of U.S. fugitive, Velarde. Authorities in Mexico located Velarde and arrested him without incident in Huatabampo, Sonora Mexico. Velarde was taken into custody by Deputy U.S. Marshals and was transported to the Pima County Detention Center where he will await his extradition back to Los Angeles, California.
United States Marshal David Gonzales stated, “Tracking down and arresting individuals that commit these violent acts in our communities is a priority of the United States Marshals Service. It is my hope this arrest can bring some sense of closure to the victim’s family.” He added, “We will continue to work with our law enforcement partners in Mexico and throughout the United States to track down dangerous individuals.”
The federal, state, and local law enforcement agencies that comprise the Arizona WANTED Violent Offender Taskforce (Tucson Metro Division) include: U.S. Marshals Service; Immigration and Customs Enforcement; Arizona Department of Public Safety; Pima County Adult Probation Office; Arizona Department of Corrections; Tucson Police Department; U.S. Border Patrol; Pima County Sheriff’s Department; Bureau of Alcohol, Tobacco, Firearms & Explosives.
NEW GAMMA-RAY OBSERVATORY HAS BEGUN THE STUDY OF THE ENERGETIC UNIVERSE
FROM: LOS ALAMOS NATIONAL LABORATORY
New Gamma-Ray Observatory Begins Operations at Sierra Negra Volcano In The State Of Puebla, Mexico
New Site to Observe Supernovas and Supermassive Black Holes
LOS ALAMOS, N.M., August 21, 2013—The High-Altitude Water Cherenkov (HAWC) Gamma Ray Observatory has begun formal operations at its site in Mexico. HAWC is designed to study the origin of very high-energy cosmic rays and observe the most energetic objects in the known universe. This extraordinary observatory, using a unique detection technique that differs from the classical astronomical design of mirrors, lenses, and antennae, is a significant boost to international scientific and technical knowledge.
“The HAWC observatory will search for signals from dark matter and to study some of the most extreme objects in the universe, such as supermassive black holes and exploding stars,” said Brenda Dingus, principal investigator and a research fellow at Los Alamos National Laboratory. Dingus is a Fellow of the American Physical Society, and in 2000 was a recipient of the Presidential Early Career Award for Scientists and Engineers.
HAWC is located at an altitude of 4100 meters on the slope of the volcanoes Sierra Negra and Pico de Orizaba at the border between the states of Puebla and Veracruz. The observatory, which is still under construction, uses an array of Cherenkov detectors to observe high-energy cosmic rays and gamma rays. Currently 100 out of 300 Cherenkov detectors are deployed and taking data. Each Cherenkov detector consists of 180,000 liters of extra-pure water stored inside an enormous tank (5 meters high and 7.3 meters in diameter) with four highly sensitive light sensors fixed to the bottom of the tank.
“Los Alamos has a long history of working in this field and built the predecessor to the HAWC observatory, called Milagro, located at the Los Alamos site in New Mexico,” Dingus said.
HAWC 15 Times More Sensitive Than Predecessor
“HAWC will be more than 15 times more sensitive than Milagro was, and it will detect many new sources of high-energy photons. Los Alamos also studies these high-energy phenomena through complex computer simulations to understand the physical mechanisms that accelerate particles to energies millions of times greater than man-made accelerators,” Dingus said.
The construction and operation of HAWC has been made possible by the financial support of several Mexican institutions such as the Consejo Nacional de Ciencia y Tecnología (CONACYT), the Universidad Nacional Autónoma de México (UNAM), and the Instituto Nacional de Astrofísica, Óptica y Electrónica (INAOE). Funding has also been provided by the United States through the National Science Foundation (NSF), the Department of Energy (DOE) Office of Science, the Los Alamos National Laboratory (LANL), and the University of Maryland. The University of Maryland is the managing institute of the project overall.
The HAWC array, operating with 100 Cherenkov detectors since August 1 and growing each week, will be sensitive to high-energy particles and radiation between 100 GeV and 100 TeV, energy equivalent to a billion times the energy of visible light. For more information online see http://www.hawc-observatory.org/.
In 2009, HAWC was identified as the Mexican astronomical project with the highest expected impact on high-energy astrophysics. Shortly thereafter a test array with three Cherenkov detectors was installed at the volcano Sierra Negra and successfully observed cosmic rays and gamma rays. Following these early tests, a prototype array of seven Cherenkov detectors was built in 2009 to test the tank design, simulate real data-taking, and study the logistics of deploying a large-scale observatory in this remote location. In 2012, the first 30 of 300 HAWC detectors were deployed, and since that time have been operated nearly continuously. The 30-detector stage of HAWC permitted calibration of the observatory via the observation of the shadow of the moon as it blocked cosmic rays. (http://1.usa.gov/14jjT8w)
Today, the scientific team of HAWC will formally begin observations of the most violent phenomena in the known universe, such as supernovae explosions and the evolution of supermassive black holes.
Image captions:
Figure 1: Artist’s conception of a black hole in the center of a distant galaxy emitting gamma rays, one of which reaches the Earth. Upon entering the terrestrial atmosphere, the gamma ray will produce a cascade of energetic particles that travels to detectors on the ground. Credit: Aurore Simonnet, Sonoma State University.
Figure 2. Diagram of a HAWC Cherenkov detector, with a person shown for scale. Inside the Cherenkov detector, a high-energy charged particle (red line) produces Cherenkov light (green lines) as it moves from top to bottom through the tank. The Cherenkov light is recorded by four highly sensitive photo-sensors placed at the bottom of the Cherenkov detector. By combining measurements from many tanks the properties of the original gamma ray or cosmic ray can be inferred.
Figure 3. Image of an event produced by particle cascade in the HAWC observatory. The larger circles represent each Cherenkov detector in HAWC, each contains 4 photo-sensors represented in the figure as smaller circles. The color of each small circle or photo-sensor represents the arrival time of the particle cascade to each sensor. This is one of the first images recorded by HAWC since the beginning of operations. In particular, this cascade arrived from the upper left to the bottom right and its center hit HAWC at the “X” mark. The time scale is given in the lower scale in nanometers.
Figure 4. The HAWC Observatory taken in August 2013 from the summit of Sierra Negra. The image has been digitally altered to show HAWC as it will appear when construction is complete in 2014. The 111 Cherenkov detectors currently installed (100 Cherenkov detectors in operation) are colored white and located in the upper right quadrant of the array.
Background: The Most Energetic Particles in the Known Universe
Gamma rays (electromagnetic radiation of very high frequency) and cosmic rays (subatomic particles of very high energy) are products of the most energetic and cataclysmic events in the known universe. These phenomena include the collisions of two neutron stars, the explosions of supernovae, binary systems of stars with stellar accretion, and active gal actic nuclei which host black holes millions of times more massive than the sun.
When high-energy cosmic rays and gamma rays reach the Earth, they interact with air molecules in the upper atmosphere. Gamma rays, for example, are converted into pairs of charged matter and anti-matter particles (mainly electrons and positrons). These particles rapidly interact with other air molecules, producing additional gamma rays of reduced energy, which then create further charged particle pairs. This chain reaction proceeds until a large cascade of particles and radiation reaches ground level, where it can be recorded in the HAWC detectors.
When the charged particle cascade from an extra-terrestrial gamma ray passes through a Cherenkov detector, its particles are traveling faster than the speed of light in water. The resulting effect is similar to the shock wave produced in the atmosphere by a supersonic airplane (a "sonic boom"), but instead of producing sound the particles produce a visible cone of light. The flash of light, called Cherenkov radiation, is measured by the light sensor fixed to the bottom of each detector in HAWC. By combining the light signal observed in many tanks with fast electronics and high precision computing equipment, it is possible for scientists to determine the time of arrival, energy, and direction of the original extraterrestrial gamma ray or cosmic ray.
New Gamma-Ray Observatory Begins Operations at Sierra Negra Volcano In The State Of Puebla, Mexico
New Site to Observe Supernovas and Supermassive Black Holes
LOS ALAMOS, N.M., August 21, 2013—The High-Altitude Water Cherenkov (HAWC) Gamma Ray Observatory has begun formal operations at its site in Mexico. HAWC is designed to study the origin of very high-energy cosmic rays and observe the most energetic objects in the known universe. This extraordinary observatory, using a unique detection technique that differs from the classical astronomical design of mirrors, lenses, and antennae, is a significant boost to international scientific and technical knowledge.
“The HAWC observatory will search for signals from dark matter and to study some of the most extreme objects in the universe, such as supermassive black holes and exploding stars,” said Brenda Dingus, principal investigator and a research fellow at Los Alamos National Laboratory. Dingus is a Fellow of the American Physical Society, and in 2000 was a recipient of the Presidential Early Career Award for Scientists and Engineers.
HAWC is located at an altitude of 4100 meters on the slope of the volcanoes Sierra Negra and Pico de Orizaba at the border between the states of Puebla and Veracruz. The observatory, which is still under construction, uses an array of Cherenkov detectors to observe high-energy cosmic rays and gamma rays. Currently 100 out of 300 Cherenkov detectors are deployed and taking data. Each Cherenkov detector consists of 180,000 liters of extra-pure water stored inside an enormous tank (5 meters high and 7.3 meters in diameter) with four highly sensitive light sensors fixed to the bottom of the tank.
“Los Alamos has a long history of working in this field and built the predecessor to the HAWC observatory, called Milagro, located at the Los Alamos site in New Mexico,” Dingus said.
HAWC 15 Times More Sensitive Than Predecessor
“HAWC will be more than 15 times more sensitive than Milagro was, and it will detect many new sources of high-energy photons. Los Alamos also studies these high-energy phenomena through complex computer simulations to understand the physical mechanisms that accelerate particles to energies millions of times greater than man-made accelerators,” Dingus said.
The construction and operation of HAWC has been made possible by the financial support of several Mexican institutions such as the Consejo Nacional de Ciencia y Tecnología (CONACYT), the Universidad Nacional Autónoma de México (UNAM), and the Instituto Nacional de Astrofísica, Óptica y Electrónica (INAOE). Funding has also been provided by the United States through the National Science Foundation (NSF), the Department of Energy (DOE) Office of Science, the Los Alamos National Laboratory (LANL), and the University of Maryland. The University of Maryland is the managing institute of the project overall.
The HAWC array, operating with 100 Cherenkov detectors since August 1 and growing each week, will be sensitive to high-energy particles and radiation between 100 GeV and 100 TeV, energy equivalent to a billion times the energy of visible light. For more information online see http://www.hawc-observatory.org/.
In 2009, HAWC was identified as the Mexican astronomical project with the highest expected impact on high-energy astrophysics. Shortly thereafter a test array with three Cherenkov detectors was installed at the volcano Sierra Negra and successfully observed cosmic rays and gamma rays. Following these early tests, a prototype array of seven Cherenkov detectors was built in 2009 to test the tank design, simulate real data-taking, and study the logistics of deploying a large-scale observatory in this remote location. In 2012, the first 30 of 300 HAWC detectors were deployed, and since that time have been operated nearly continuously. The 30-detector stage of HAWC permitted calibration of the observatory via the observation of the shadow of the moon as it blocked cosmic rays. (http://1.usa.gov/14jjT8w)
Today, the scientific team of HAWC will formally begin observations of the most violent phenomena in the known universe, such as supernovae explosions and the evolution of supermassive black holes.
Image captions:
Figure 1: Artist’s conception of a black hole in the center of a distant galaxy emitting gamma rays, one of which reaches the Earth. Upon entering the terrestrial atmosphere, the gamma ray will produce a cascade of energetic particles that travels to detectors on the ground. Credit: Aurore Simonnet, Sonoma State University.
Figure 2. Diagram of a HAWC Cherenkov detector, with a person shown for scale. Inside the Cherenkov detector, a high-energy charged particle (red line) produces Cherenkov light (green lines) as it moves from top to bottom through the tank. The Cherenkov light is recorded by four highly sensitive photo-sensors placed at the bottom of the Cherenkov detector. By combining measurements from many tanks the properties of the original gamma ray or cosmic ray can be inferred.
Figure 3. Image of an event produced by particle cascade in the HAWC observatory. The larger circles represent each Cherenkov detector in HAWC, each contains 4 photo-sensors represented in the figure as smaller circles. The color of each small circle or photo-sensor represents the arrival time of the particle cascade to each sensor. This is one of the first images recorded by HAWC since the beginning of operations. In particular, this cascade arrived from the upper left to the bottom right and its center hit HAWC at the “X” mark. The time scale is given in the lower scale in nanometers.
Figure 4. The HAWC Observatory taken in August 2013 from the summit of Sierra Negra. The image has been digitally altered to show HAWC as it will appear when construction is complete in 2014. The 111 Cherenkov detectors currently installed (100 Cherenkov detectors in operation) are colored white and located in the upper right quadrant of the array.
Background: The Most Energetic Particles in the Known Universe
Gamma rays (electromagnetic radiation of very high frequency) and cosmic rays (subatomic particles of very high energy) are products of the most energetic and cataclysmic events in the known universe. These phenomena include the collisions of two neutron stars, the explosions of supernovae, binary systems of stars with stellar accretion, and active gal actic nuclei which host black holes millions of times more massive than the sun.
When high-energy cosmic rays and gamma rays reach the Earth, they interact with air molecules in the upper atmosphere. Gamma rays, for example, are converted into pairs of charged matter and anti-matter particles (mainly electrons and positrons). These particles rapidly interact with other air molecules, producing additional gamma rays of reduced energy, which then create further charged particle pairs. This chain reaction proceeds until a large cascade of particles and radiation reaches ground level, where it can be recorded in the HAWC detectors.
When the charged particle cascade from an extra-terrestrial gamma ray passes through a Cherenkov detector, its particles are traveling faster than the speed of light in water. The resulting effect is similar to the shock wave produced in the atmosphere by a supersonic airplane (a "sonic boom"), but instead of producing sound the particles produce a visible cone of light. The flash of light, called Cherenkov radiation, is measured by the light sensor fixed to the bottom of each detector in HAWC. By combining the light signal observed in many tanks with fast electronics and high precision computing equipment, it is possible for scientists to determine the time of arrival, energy, and direction of the original extraterrestrial gamma ray or cosmic ray.
Sunday, August 25, 2013
STATEMENT BY LABOR SECRETARY PEREZ ON FATAL OCCUPATIONAL INJURIES RESULTS FOR 2012
FROM: U.S. LABOR DEPARTMENT
Statement by Secretary of Labor Thomas E. Perez on fatal occupational injuries in 2012
WASHINGTON — Preliminary results from the Bureau of Labor Statistics' National Census of Fatal Occupational Injuries released today show a reduction in the number of fatal work injuries in 2012 compared with 2011. Last year, 4,383 workers died from work-related injuries, down from a final count of 4,693 fatal work injuries in 2011. Based on preliminary counts, the rate of fatal workplace injuries in 2012 was 3.2 per 100,000 full-time equivalent workers, down from a rate of 3.5 per 100,000 in 2011. In response, Secretary of Labor Thomas E. Perez issued the following statement:
"Workers in this country have the right to return home safe and healthy at the end of a work day. Despite that right, poor safety conditions cause thousands of people each year to lose their lives at work.
"I am greatly encouraged by the reduction in workplace fatalities, even in a growing economy. It is a testament to the hard work of employers, unions, health and safety professionals and the Labor Department's Occupational Safety and Health Administration and Mine Safety and Health Administration. Through collaborative education and outreach efforts, and effective law enforcement, these numbers indicate that we are absolutely moving in the right direction.
"But to me these aren't just numbers and data — they are fathers and mothers, brothers and sisters, who will never come home again.
"We can and must do better. Job gains in oil and gas and construction have come with more fatalities, and that is unacceptable. That's why OSHA has undertaken a number of outreach and educational initiatives, including a campaign to prevent falls in construction and the National Voluntary Stand Down of U.S. Onshore Oil and Gas Exploration and Production, co-sponsored by oil and gas industry employers and planned for Nov. 14. Employers must take job hazards seriously and live up to their legal and moral obligation to send their workers home safe every single day. The Labor Department is committed to preventing these needless deaths, and we will continue to engage with employers to make sure that these fatality numbers go down further.
"No worker should lose their life for a paycheck."
Statement by Secretary of Labor Thomas E. Perez on fatal occupational injuries in 2012
WASHINGTON — Preliminary results from the Bureau of Labor Statistics' National Census of Fatal Occupational Injuries released today show a reduction in the number of fatal work injuries in 2012 compared with 2011. Last year, 4,383 workers died from work-related injuries, down from a final count of 4,693 fatal work injuries in 2011. Based on preliminary counts, the rate of fatal workplace injuries in 2012 was 3.2 per 100,000 full-time equivalent workers, down from a rate of 3.5 per 100,000 in 2011. In response, Secretary of Labor Thomas E. Perez issued the following statement:
"Workers in this country have the right to return home safe and healthy at the end of a work day. Despite that right, poor safety conditions cause thousands of people each year to lose their lives at work.
"I am greatly encouraged by the reduction in workplace fatalities, even in a growing economy. It is a testament to the hard work of employers, unions, health and safety professionals and the Labor Department's Occupational Safety and Health Administration and Mine Safety and Health Administration. Through collaborative education and outreach efforts, and effective law enforcement, these numbers indicate that we are absolutely moving in the right direction.
"But to me these aren't just numbers and data — they are fathers and mothers, brothers and sisters, who will never come home again.
"We can and must do better. Job gains in oil and gas and construction have come with more fatalities, and that is unacceptable. That's why OSHA has undertaken a number of outreach and educational initiatives, including a campaign to prevent falls in construction and the National Voluntary Stand Down of U.S. Onshore Oil and Gas Exploration and Production, co-sponsored by oil and gas industry employers and planned for Nov. 14. Employers must take job hazards seriously and live up to their legal and moral obligation to send their workers home safe every single day. The Labor Department is committed to preventing these needless deaths, and we will continue to engage with employers to make sure that these fatality numbers go down further.
"No worker should lose their life for a paycheck."
OBAMA ADMINISTRATION FINDS PARTNER IN EDUCATING AMERICANS ABOUT HEALTH INSURANCE MARKETPLACE
FROM: U.S. HEALTH AND HUMAN SERVICES
Pennsylvania Champions for Coverage partner with Obama administration to help Americans understand the Health Insurance Marketplace
PHILADELPHIA, Pa. - Health and Human Services (HHS) Secretary Kathleen Sebelius recognized more than 25 Pennsylvania organizations and businesses that have volunteered to help uninsured Americans get coverage through the Health Insurance Marketplace. Secretary Sebelius made today’s announcement at an event hosted by Congreso, a Champion for Coverage dedicated to strengthening Latino communities.
“A network of volunteers on the ground in every state – health care providers, business leaders, faith leaders, community groups, advocates, and local elected officials – can help spread the word and encourage their neighbors to get enrolled,” said Secretary Sebelius.
Champions for Coverage are local businesses and organizations – bloggers, community health centers, hospitals, communities of faith, and civic organizations. They will use publicly available materials – both digital and in print – from the Centers for Medicare & Medicaid Services (CMS) to help members of their communities understand their new options through the Marketplace. There are many ways these organizations can help, including hanging a poster in their office, hosting an enrollment fair or educational event, or posting links on their website.
“We are both excited and thankful to have such a wide variety of businesses and organizations that want to get involved and help us spread the message about these new opportunities for people to access quality, affordable health insurance when open enrollment begins on October 1,” said CMS Administrator Marilyn Tavenner.
“Congreso is proud to partner with HHS on this historic effort to expand access to health care coverage for all Americans,” said Cynthia Figueroa, Congreso president and chief executive officer. “As a Champion for Coverage, we aim to be a trusted community resource for Latino individuals and families who want to learn more about their options for quality, affordable coverage thanks to the Affordable Care Act.”
Today’s announcement follows the significant progress made this summer on outreach and education around the Marketplace. Consumers can learn about and enroll in coverage later this fall through HealthCare.gov. They can participate in an online web chat, or call 1-800-318-2596 toll free to speak with a trained customer service representative.
The growing list of Pennsylvania organizations includes:
ACLAMO Family Centers
Berks Community Health Center
Better Health Network
Black Women's Health Alliance
Central Montgomery Mental Health
Columbia County Volunteers in Medicine Clinic Inc.
Community Health Clinic of Butler County
Congreso de Latinos Unidos
Dermatology Associates of Plymouth Meeting
Diagnostic Imaging Specialists LLC
Family Planning Council
Jewish Healthcare Foundation
Keystone Rural Health Center
La Comunidad Hispana
Maternity Care Coalition
Mental Health Association of Southeastern Pennsylvania
Mt. Tabor AME Church
Office of HIV Planning Philadelphia
Pennsylvania Office of Rural Health
Pittsburgh Regional Health Initiative
Planned Parenthood Keystone
Susquehanna Community Health and Dental Clinic Inc
Webkite
Welsh Mountain Health Centers
West Philadelphia Salvation Army
Women's Law Project
There will also be people in local communities who can provide in-person help with coverage choices. Last week, HHS awarded $67 million to 105 Navigator grant applicants. More than 1,200 community health centers across the country have received more than $150 million to help enroll uninsured Americans in coverage. And a partnership with the Institute of Museum and Library Services will help trusted local libraries be a resource for consumers who want information on their options.<</p>
Open enrollment in the Health Insurance Marketplace begins October 1 for coverage starting as early as Jan. 1, 2014. Visit HealthCare.gov to learn more and to sign up for account.
To see the list of 100 national organizations announced last week visit: http://marketplace.cms.gov/help-us/champions-for-coverage-list.pdf.
Pennsylvania Champions for Coverage partner with Obama administration to help Americans understand the Health Insurance Marketplace
PHILADELPHIA, Pa. - Health and Human Services (HHS) Secretary Kathleen Sebelius recognized more than 25 Pennsylvania organizations and businesses that have volunteered to help uninsured Americans get coverage through the Health Insurance Marketplace. Secretary Sebelius made today’s announcement at an event hosted by Congreso, a Champion for Coverage dedicated to strengthening Latino communities.
“A network of volunteers on the ground in every state – health care providers, business leaders, faith leaders, community groups, advocates, and local elected officials – can help spread the word and encourage their neighbors to get enrolled,” said Secretary Sebelius.
Champions for Coverage are local businesses and organizations – bloggers, community health centers, hospitals, communities of faith, and civic organizations. They will use publicly available materials – both digital and in print – from the Centers for Medicare & Medicaid Services (CMS) to help members of their communities understand their new options through the Marketplace. There are many ways these organizations can help, including hanging a poster in their office, hosting an enrollment fair or educational event, or posting links on their website.
“We are both excited and thankful to have such a wide variety of businesses and organizations that want to get involved and help us spread the message about these new opportunities for people to access quality, affordable health insurance when open enrollment begins on October 1,” said CMS Administrator Marilyn Tavenner.
“Congreso is proud to partner with HHS on this historic effort to expand access to health care coverage for all Americans,” said Cynthia Figueroa, Congreso president and chief executive officer. “As a Champion for Coverage, we aim to be a trusted community resource for Latino individuals and families who want to learn more about their options for quality, affordable coverage thanks to the Affordable Care Act.”
Today’s announcement follows the significant progress made this summer on outreach and education around the Marketplace. Consumers can learn about and enroll in coverage later this fall through HealthCare.gov. They can participate in an online web chat, or call 1-800-318-2596 toll free to speak with a trained customer service representative.
The growing list of Pennsylvania organizations includes:
ACLAMO Family Centers
Berks Community Health Center
Better Health Network
Black Women's Health Alliance
Central Montgomery Mental Health
Columbia County Volunteers in Medicine Clinic Inc.
Community Health Clinic of Butler County
Congreso de Latinos Unidos
Dermatology Associates of Plymouth Meeting
Diagnostic Imaging Specialists LLC
Family Planning Council
Jewish Healthcare Foundation
Keystone Rural Health Center
La Comunidad Hispana
Maternity Care Coalition
Mental Health Association of Southeastern Pennsylvania
Mt. Tabor AME Church
Office of HIV Planning Philadelphia
Pennsylvania Office of Rural Health
Pittsburgh Regional Health Initiative
Planned Parenthood Keystone
Susquehanna Community Health and Dental Clinic Inc
Webkite
Welsh Mountain Health Centers
West Philadelphia Salvation Army
Women's Law Project
There will also be people in local communities who can provide in-person help with coverage choices. Last week, HHS awarded $67 million to 105 Navigator grant applicants. More than 1,200 community health centers across the country have received more than $150 million to help enroll uninsured Americans in coverage. And a partnership with the Institute of Museum and Library Services will help trusted local libraries be a resource for consumers who want information on their options.<</p>
Open enrollment in the Health Insurance Marketplace begins October 1 for coverage starting as early as Jan. 1, 2014. Visit HealthCare.gov to learn more and to sign up for account.
To see the list of 100 national organizations announced last week visit: http://marketplace.cms.gov/help-us/champions-for-coverage-list.pdf.
FACT SHEET: PRESIDENT OBAMA'S PLAN FOR MAKING COLLEGE MORE AFFORDABLE
FROM: THE WHITE HOUSE
FACT SHEET on the President’s Plan to Make College More Affordable: A Better Bargain for the Middle Class
A higher education is the single most important investment students can make in their own futures. At the same time, it has never been more expensive. That’s why since taking office, President Obama has made historic investments in college affordability, increasing the maximum Pell Grant award for working and middle class families by more than $900, creating the American Opportunity Tax Credit, and enacting effective student loan reforms eliminating bank subsidies and making college more affordable.
However, despite these measures, college tuition keeps rising. The average tuition at a public four-year college has increased by more than 250 percent over the past three decades, while incomes for typical families grew by only 16 percent, according to College Board and Census data. Declining state funding has forced students to shoulder a bigger proportion of college costs; tuition has almost doubled as a share of public college revenues over the past 25 years from 25 percent to 47 percent. While a college education remains a worthwhile investment overall, the average borrower now graduates with over $26,000 in debt. Only 58 percent of full-time students who began college in 2004 earned a four-year degree within six years. Loan default rates are rising, and too many young adults are burdened with debt as they seek to start a family, buy a home, launch a business, or save for retirement.
Today, President Obama outlined an ambitious new agenda to combat rising college costs and make college affordable for American families. His plan will measure college performance through a new ratings system so students and families have the information to select schools that provide the best value. And after this ratings system is well established, Congress can tie federal student aid to college performance so that students maximize their federal aid at institutions providing the best value. The President’s plan will also take down barriers that stand in the way of competition and innovation, particularly in the use of new technology, and shine a light on the most cutting-edge college practices for providing high value at low costs. And to help student borrowers struggling with their existing debt, the President is committed to ensuring that all borrowers who need it can have access to the Pay As You Earn plan that caps loan payments at 10 percent of income and is directing the Department of Education to ramp up its efforts to reach out to students struggling with their loans to make sure they know and understand all their repayment options.
A Better Bargain for the Middle Class: Making College More Affordable
Paying for Performance
Tie financial aid to college performance, starting with publishing new college ratings before the 2015 school year.
Challenge states to fund public colleges based on performance.
Hold students and colleges receiving student aid responsible for making progress toward a degree.
Promoting Innovation and Competition
Challenge colleges to offer students a greater range of affordable, high-quality options than they do today.
Give consumers clear, transparent information on college performance to help them make the decisions that work best for them.
Encourage innovation by stripping away unnecessary regulations.
Ensuring that Student Debt Remains Affordable
Help ensure borrowers can afford their federal student loan debt by allowing all borrowers to cap their payments at 10 percent of their monthly income.
Reach out to struggling borrowers to ensure that they are aware of the flexible options available to help them to repay their debt.
PAY COLLEGES AND STUDENTS FOR PERFORMANCE
The federal government provides over $150 billion each year in student financial aid, while states collectively invest over $70 billion in public colleges and universities. Almost all of these resources are allocated among colleges based on the number of students who enroll, not the number who earn degrees or what they learn. President Obama’s plan will connect student aid to outcomes, which will in turn drive a better, more affordable education for all students:
Tie Financial Aid to College Value: To identify colleges for providing the best value and encourage all colleges to improve, President Obama is directing the Department of Education to develop and publish a new college ratings system that would be available for students and families before the 2015 college year. In the upcoming reauthorization of the Higher Education Act, the President will seek legislation allocating financial aid based upon these college ratings by 2018, once the ratings system is well established. Students can continue to choose whichever college they want, but taxpayer dollars will be steered toward high-performing colleges that provide the best value.
New College Ratings before 2015. Before the 2015 school year, the Department of Education will develop a new ratings system to help students compare the value offered by colleges and encourage colleges to improve. These ratings will compare colleges with similar missions and identify colleges that do the most to help students from disadvantaged backgrounds as well as colleges that are improving their performance. The results will be published on the College Scorecard. The Department will develop these ratings through public hearings around the country to gather the input of students and parents, state leaders, college presidents, and others with ideas on how to publish excellent ratings that put a fundamental premium on measuring value and ensure that access for those with economic or other disadvantages are encouraged, not discouraged. The ratings will be based upon such measures as:
Access, such as percentage of students receiving Pell grants;
Affordability, such as average tuition, scholarships, and loan debt; and
Outcomes, such as graduation and transfer rates, graduate earnings, and advanced degrees of college graduates.
Base Student Aid on College Value by 2018. Over the next four years, the Department of Education will refine these measurements, while colleges have an opportunity to improve their performance and ratings. The Administration will seek legislation using this new rating system to transform the way federal aid is awarded to colleges once the ratings are well developed. Students attending high-performing colleges could receive larger Pell Grants and more affordable student loans.
Engage States with a Race to the Top for Higher Education that Has Higher Value and Lower Costs: The President requested $1 billion in Race to the Top funding to spur state higher education reforms and reshape the federal-state partnership by ensuring that states maintain funding for public higher education. About three-quarters of college students attend a community college or public university, and declining state funding has been the biggest reason for rising tuition at public institutions. The Race to the Top competition will have a special focus on promoting paying for value as opposed to enrollment or just seat time. States typically fund colleges based on enrollment rather than on their success at graduating students or other measures of the value they offer. There are notable exceptions, like Tennessee, Indiana and Ohio, which fund colleges based on performance. To build on their examples, the President’s plan would also encourage states to provide accelerated learning opportunities, smooth the transition from high school to college and between two- and four-year colleges, and strengthen collaboration between high schools and colleges.
Reward Colleges for Results with a Pell Bonus and Higher Accountability: To encourage colleges to enroll and graduate low- and moderate-income students, the President will propose legislation to give colleges a bonus based upon the number of Pell students they graduate. And the Administration will prevent the waste of Pell dollars by requiring colleges with high dropout rates to disburse student aid over the course of the semester as students face expenses, rather than in a lump sum at the beginning of the semester, so students who drop out do not receive Pell Grants for time they are not in school.
Demand Student Responsibility for Academic Performance: To ensure students are making progress toward their degrees, the President will also propose legislation strengthening academic progress requirements of student aid programs, such as requiring students to complete a certain percentage of their classes before receiving continued funding. These changes would encourage students to complete their studies on time, thereby reducing their debt, and will be designed to ensure that disadvantaged students have every opportunity to succeed.
PROMOTE INNOVATION AND COMPETITION
A rising tide of innovation has the potential to shake up the higher education landscape. Promising approaches include three-year accelerated degrees, Massive Open Online Courses (MOOCs), and “flipped” or “hybrid” classrooms where students watch lectures at home and online and faculty challenge them to solve problems and deepen their knowledge in class. Some of these approaches are still being developed, and too few students are seeing their benefits. The federal government can act as a catalyst for innovation, spurring innovation in a way that drives down costs while preserving quality.
To promote innovation and competition in the higher education marketplace, the President’s plan will publish better information on how colleges are performing, help demonstrate that new approaches can improve learning and reduce costs, and offer colleges regulatory flexibility to innovate. And the President is challenging colleges and other higher education leaders to adopt one or more of these promising practices that we know offer breakthroughs on cost, quality, or both – or create something better themselves:
Award Credits Based on Learning, not Seat Time. Western Governors University is a competency-based online university serving more than 40,000 students with relatively low costs— about $6,000 per year for most degrees with an average time to a bachelor’s degree of only 30 months. A number of other institutions have also established competency-based programs, including Southern New Hampshire University and the University of Wisconsin system.
Use Technology to Redesign Courses. Redesigned courses that integrate online platforms (like MOOCs) or blend in-person and online experiences can accelerate the pace of student learning. The National Center for Academic Transformation has shown the effectiveness of the thoughtful use of technology across a wide range of academic disciplines, improving learning outcomes for students while reducing costs by nearly 40 percent on average. Carnegie Mellon University’s Open Learning Initiative has developed a hybrid statistics course used at six public universities, and its students performed as well as their peers in a traditional course in only 75 percent of the time. Arizona State University’s interactive algebra lessons helped students perform 10 percent better, despite meeting half as often, and at a lower cost. The University of Maryland redesigned an introductory psychology course, reducing costs by 70 percent while raising pass rates. New York’s Open SUNY initiative brings together every online program offered system-wide, helping students complete more quickly.
Use Technology for Student Services. Online learning communities and e-advising tools encourage persistence and alert instructors when additional help is needed. Technology is enabling students from across campuses and across the world to collaborate through online study groups and in-person meet-ups. MOOC-provider Coursera has online forums in which the median response time for questions posed by students is 22 minutes. To help students choose the courses that will allow them to earn a degree as quickly as possible, Austin Peay State University has developed the “Degree Compass” system that draws on the past performance of students in thousands of classes to guide a student through a course, in a similar manner to the way Netflix or Pandora draw on users’ past experience to guide movie or music choices.
Recognize Prior Learning and Promote Dual Enrollment. Colleges can also award credit for prior learning experiences, similar to current Administration efforts to recognize the skills of returning veterans. Dual-enrollment opportunities let high school students earn credits before arriving at college, which can save them money by accelerating their time to degree.
To help colleges innovate and improve quality and outcomes, the Administration will:
Empower Students with Information: New college ratings will help students compare the value offered by different colleges. The Department of Education will enlist entrepreneurs and technology leaders with a “Datapalooza” to catalyze new private-sector tools, services, and apps to help students evaluate and select colleges. The effort will be complemented by earnings information by college that will be released for the first time on Administration’s College Scorecard this fall.
Seed Innovation and Measure What Works: To demonstrate what works, President Obama has proposed a new $260 million First in the World fund to test and evaluate innovative approaches to higher education that yield dramatically better outcomes, and to develop new ways for colleges to demonstrate that they are helping their students learn. In addition, the Department of Labor is planning to grant an additional $500 million to community colleges and eligible four-year colleges and universities next year. A portion of these resources will be used to promote accelerated degree paths and credentials that would drive more high-quality and affordable options for adult workers and students. Through these efforts, the Administration will work with business and philanthropy to support industry partnerships to enrich student learning with valuable job exploration and experience.
Reduce Regulatory Barriers: The Department will use its authority to issue regulatory waivers for “experimental sites” that promote high-quality, low-cost innovations in higher education, such as making it possible for students to get financial aid based on how much they learn, rather than the amount of time they spend in class. Pilot opportunities could include enabling colleges to offer Pell grants to high school students taking college courses, allowing federal financial aid to be used to pay test fees when students seek academic credit for prior learning, and combining traditional and competency-based courses into a single program of study. The Department will also support efforts to remove state regulatory barriers to distance education.
Finally, the President will challenge leaders in states, philanthropy, and the private sector to make their own commitments to improve college value while reducing costs. For example, states can redesign the transition to postsecondary education and commit to strategies to improve student learning and enhance student advising, such as hybrid learning pilots, adaptive learning platforms, and digital tutors. Philanthropists can create initiatives, pilots and prizes for colleges that advance competency-based education, accelerated degrees, and the integration of new technologies into on-campus teaching and learning. Investors and entrepreneurs can directly support and develop new technologies and innovations that accelerate student learning while evaluating the effectiveness of different approaches. And employers and industry groups can collaborate with postsecondary institutions and new providers to develop high-quality, low-cost degrees in growing sectors of the economy, offer work-based learning experiences to students, and hire graduates who demonstrate the knowledge and skills employers need.
ENSURE STUDENT DEBT IS AFFORDABLE
While bringing down costs for current and future college students, President Obama will also help students with existing debt to manage their obligations. Income-driven repayment plans allow borrowers to take responsibility for their federal student loan debt with more flexible repayment terms, while helping professionals like teachers and nurses who take on critical jobs in our society that require significant education but may result in modest salaries. These plans allow students to fully repay their student debt on a sliding scale that adjusts monthly payments based on changing income and growing families. Nearly two-thirds of people that currently participate in the income-driven repayment plans make less than $60,000 a year. Currently, over 2.5 million of 37 million federal student loan borrowers are benefitting from income-driven plans.
Make All Borrowers Eligible for Pay As You Earn: To make sure that students and families have an easy-to-understand insurance policy against unmanageable debt now and in the future, the President has proposed allowing all student borrowers to cap their federal student loan payments at 10 percent of their monthly income. Currently, students who first borrowed before 2008 or have not borrowed since 2011 are not eligible for the President’s Pay As You Earn plan. In addition, the Administration will work with Congress to ensure that the benefits are targeted to the neediest borrowers.
Launching an Enrollment Campaign for Pay As You Earn: Beginning this fall, the Department of Education will contact borrowers who have fallen behind on their student loan payments, undergraduate borrowers with higher-than-average debts, and borrowers in deferment or forbearance because of financial hardship or unemployment to ensure they have the information they need to choose the right repayment option for them. Starting in 2014, the Department of Education and the Department of Treasury will work to help borrowers learn about and enroll in Pay As You Earn and Income-Based Repayment plans when they file their taxes. And to assist guidance counselors and other advisers who guide students through the process of selecting and financing their higher education, the Administration will launch a “one-stop shop” that will include important resources for choosing among various income-driven repayment options.
FACT SHEET on the President’s Plan to Make College More Affordable: A Better Bargain for the Middle Class
A higher education is the single most important investment students can make in their own futures. At the same time, it has never been more expensive. That’s why since taking office, President Obama has made historic investments in college affordability, increasing the maximum Pell Grant award for working and middle class families by more than $900, creating the American Opportunity Tax Credit, and enacting effective student loan reforms eliminating bank subsidies and making college more affordable.
However, despite these measures, college tuition keeps rising. The average tuition at a public four-year college has increased by more than 250 percent over the past three decades, while incomes for typical families grew by only 16 percent, according to College Board and Census data. Declining state funding has forced students to shoulder a bigger proportion of college costs; tuition has almost doubled as a share of public college revenues over the past 25 years from 25 percent to 47 percent. While a college education remains a worthwhile investment overall, the average borrower now graduates with over $26,000 in debt. Only 58 percent of full-time students who began college in 2004 earned a four-year degree within six years. Loan default rates are rising, and too many young adults are burdened with debt as they seek to start a family, buy a home, launch a business, or save for retirement.
Today, President Obama outlined an ambitious new agenda to combat rising college costs and make college affordable for American families. His plan will measure college performance through a new ratings system so students and families have the information to select schools that provide the best value. And after this ratings system is well established, Congress can tie federal student aid to college performance so that students maximize their federal aid at institutions providing the best value. The President’s plan will also take down barriers that stand in the way of competition and innovation, particularly in the use of new technology, and shine a light on the most cutting-edge college practices for providing high value at low costs. And to help student borrowers struggling with their existing debt, the President is committed to ensuring that all borrowers who need it can have access to the Pay As You Earn plan that caps loan payments at 10 percent of income and is directing the Department of Education to ramp up its efforts to reach out to students struggling with their loans to make sure they know and understand all their repayment options.
A Better Bargain for the Middle Class: Making College More Affordable
Paying for Performance
Tie financial aid to college performance, starting with publishing new college ratings before the 2015 school year.
Challenge states to fund public colleges based on performance.
Hold students and colleges receiving student aid responsible for making progress toward a degree.
Promoting Innovation and Competition
Challenge colleges to offer students a greater range of affordable, high-quality options than they do today.
Give consumers clear, transparent information on college performance to help them make the decisions that work best for them.
Encourage innovation by stripping away unnecessary regulations.
Ensuring that Student Debt Remains Affordable
Help ensure borrowers can afford their federal student loan debt by allowing all borrowers to cap their payments at 10 percent of their monthly income.
Reach out to struggling borrowers to ensure that they are aware of the flexible options available to help them to repay their debt.
PAY COLLEGES AND STUDENTS FOR PERFORMANCE
The federal government provides over $150 billion each year in student financial aid, while states collectively invest over $70 billion in public colleges and universities. Almost all of these resources are allocated among colleges based on the number of students who enroll, not the number who earn degrees or what they learn. President Obama’s plan will connect student aid to outcomes, which will in turn drive a better, more affordable education for all students:
Tie Financial Aid to College Value: To identify colleges for providing the best value and encourage all colleges to improve, President Obama is directing the Department of Education to develop and publish a new college ratings system that would be available for students and families before the 2015 college year. In the upcoming reauthorization of the Higher Education Act, the President will seek legislation allocating financial aid based upon these college ratings by 2018, once the ratings system is well established. Students can continue to choose whichever college they want, but taxpayer dollars will be steered toward high-performing colleges that provide the best value.
New College Ratings before 2015. Before the 2015 school year, the Department of Education will develop a new ratings system to help students compare the value offered by colleges and encourage colleges to improve. These ratings will compare colleges with similar missions and identify colleges that do the most to help students from disadvantaged backgrounds as well as colleges that are improving their performance. The results will be published on the College Scorecard. The Department will develop these ratings through public hearings around the country to gather the input of students and parents, state leaders, college presidents, and others with ideas on how to publish excellent ratings that put a fundamental premium on measuring value and ensure that access for those with economic or other disadvantages are encouraged, not discouraged. The ratings will be based upon such measures as:
Access, such as percentage of students receiving Pell grants;
Affordability, such as average tuition, scholarships, and loan debt; and
Outcomes, such as graduation and transfer rates, graduate earnings, and advanced degrees of college graduates.
Base Student Aid on College Value by 2018. Over the next four years, the Department of Education will refine these measurements, while colleges have an opportunity to improve their performance and ratings. The Administration will seek legislation using this new rating system to transform the way federal aid is awarded to colleges once the ratings are well developed. Students attending high-performing colleges could receive larger Pell Grants and more affordable student loans.
Engage States with a Race to the Top for Higher Education that Has Higher Value and Lower Costs: The President requested $1 billion in Race to the Top funding to spur state higher education reforms and reshape the federal-state partnership by ensuring that states maintain funding for public higher education. About three-quarters of college students attend a community college or public university, and declining state funding has been the biggest reason for rising tuition at public institutions. The Race to the Top competition will have a special focus on promoting paying for value as opposed to enrollment or just seat time. States typically fund colleges based on enrollment rather than on their success at graduating students or other measures of the value they offer. There are notable exceptions, like Tennessee, Indiana and Ohio, which fund colleges based on performance. To build on their examples, the President’s plan would also encourage states to provide accelerated learning opportunities, smooth the transition from high school to college and between two- and four-year colleges, and strengthen collaboration between high schools and colleges.
Reward Colleges for Results with a Pell Bonus and Higher Accountability: To encourage colleges to enroll and graduate low- and moderate-income students, the President will propose legislation to give colleges a bonus based upon the number of Pell students they graduate. And the Administration will prevent the waste of Pell dollars by requiring colleges with high dropout rates to disburse student aid over the course of the semester as students face expenses, rather than in a lump sum at the beginning of the semester, so students who drop out do not receive Pell Grants for time they are not in school.
Demand Student Responsibility for Academic Performance: To ensure students are making progress toward their degrees, the President will also propose legislation strengthening academic progress requirements of student aid programs, such as requiring students to complete a certain percentage of their classes before receiving continued funding. These changes would encourage students to complete their studies on time, thereby reducing their debt, and will be designed to ensure that disadvantaged students have every opportunity to succeed.
PROMOTE INNOVATION AND COMPETITION
A rising tide of innovation has the potential to shake up the higher education landscape. Promising approaches include three-year accelerated degrees, Massive Open Online Courses (MOOCs), and “flipped” or “hybrid” classrooms where students watch lectures at home and online and faculty challenge them to solve problems and deepen their knowledge in class. Some of these approaches are still being developed, and too few students are seeing their benefits. The federal government can act as a catalyst for innovation, spurring innovation in a way that drives down costs while preserving quality.
To promote innovation and competition in the higher education marketplace, the President’s plan will publish better information on how colleges are performing, help demonstrate that new approaches can improve learning and reduce costs, and offer colleges regulatory flexibility to innovate. And the President is challenging colleges and other higher education leaders to adopt one or more of these promising practices that we know offer breakthroughs on cost, quality, or both – or create something better themselves:
Award Credits Based on Learning, not Seat Time. Western Governors University is a competency-based online university serving more than 40,000 students with relatively low costs— about $6,000 per year for most degrees with an average time to a bachelor’s degree of only 30 months. A number of other institutions have also established competency-based programs, including Southern New Hampshire University and the University of Wisconsin system.
Use Technology to Redesign Courses. Redesigned courses that integrate online platforms (like MOOCs) or blend in-person and online experiences can accelerate the pace of student learning. The National Center for Academic Transformation has shown the effectiveness of the thoughtful use of technology across a wide range of academic disciplines, improving learning outcomes for students while reducing costs by nearly 40 percent on average. Carnegie Mellon University’s Open Learning Initiative has developed a hybrid statistics course used at six public universities, and its students performed as well as their peers in a traditional course in only 75 percent of the time. Arizona State University’s interactive algebra lessons helped students perform 10 percent better, despite meeting half as often, and at a lower cost. The University of Maryland redesigned an introductory psychology course, reducing costs by 70 percent while raising pass rates. New York’s Open SUNY initiative brings together every online program offered system-wide, helping students complete more quickly.
Use Technology for Student Services. Online learning communities and e-advising tools encourage persistence and alert instructors when additional help is needed. Technology is enabling students from across campuses and across the world to collaborate through online study groups and in-person meet-ups. MOOC-provider Coursera has online forums in which the median response time for questions posed by students is 22 minutes. To help students choose the courses that will allow them to earn a degree as quickly as possible, Austin Peay State University has developed the “Degree Compass” system that draws on the past performance of students in thousands of classes to guide a student through a course, in a similar manner to the way Netflix or Pandora draw on users’ past experience to guide movie or music choices.
Recognize Prior Learning and Promote Dual Enrollment. Colleges can also award credit for prior learning experiences, similar to current Administration efforts to recognize the skills of returning veterans. Dual-enrollment opportunities let high school students earn credits before arriving at college, which can save them money by accelerating their time to degree.
To help colleges innovate and improve quality and outcomes, the Administration will:
Empower Students with Information: New college ratings will help students compare the value offered by different colleges. The Department of Education will enlist entrepreneurs and technology leaders with a “Datapalooza” to catalyze new private-sector tools, services, and apps to help students evaluate and select colleges. The effort will be complemented by earnings information by college that will be released for the first time on Administration’s College Scorecard this fall.
Seed Innovation and Measure What Works: To demonstrate what works, President Obama has proposed a new $260 million First in the World fund to test and evaluate innovative approaches to higher education that yield dramatically better outcomes, and to develop new ways for colleges to demonstrate that they are helping their students learn. In addition, the Department of Labor is planning to grant an additional $500 million to community colleges and eligible four-year colleges and universities next year. A portion of these resources will be used to promote accelerated degree paths and credentials that would drive more high-quality and affordable options for adult workers and students. Through these efforts, the Administration will work with business and philanthropy to support industry partnerships to enrich student learning with valuable job exploration and experience.
Reduce Regulatory Barriers: The Department will use its authority to issue regulatory waivers for “experimental sites” that promote high-quality, low-cost innovations in higher education, such as making it possible for students to get financial aid based on how much they learn, rather than the amount of time they spend in class. Pilot opportunities could include enabling colleges to offer Pell grants to high school students taking college courses, allowing federal financial aid to be used to pay test fees when students seek academic credit for prior learning, and combining traditional and competency-based courses into a single program of study. The Department will also support efforts to remove state regulatory barriers to distance education.
Finally, the President will challenge leaders in states, philanthropy, and the private sector to make their own commitments to improve college value while reducing costs. For example, states can redesign the transition to postsecondary education and commit to strategies to improve student learning and enhance student advising, such as hybrid learning pilots, adaptive learning platforms, and digital tutors. Philanthropists can create initiatives, pilots and prizes for colleges that advance competency-based education, accelerated degrees, and the integration of new technologies into on-campus teaching and learning. Investors and entrepreneurs can directly support and develop new technologies and innovations that accelerate student learning while evaluating the effectiveness of different approaches. And employers and industry groups can collaborate with postsecondary institutions and new providers to develop high-quality, low-cost degrees in growing sectors of the economy, offer work-based learning experiences to students, and hire graduates who demonstrate the knowledge and skills employers need.
ENSURE STUDENT DEBT IS AFFORDABLE
While bringing down costs for current and future college students, President Obama will also help students with existing debt to manage their obligations. Income-driven repayment plans allow borrowers to take responsibility for their federal student loan debt with more flexible repayment terms, while helping professionals like teachers and nurses who take on critical jobs in our society that require significant education but may result in modest salaries. These plans allow students to fully repay their student debt on a sliding scale that adjusts monthly payments based on changing income and growing families. Nearly two-thirds of people that currently participate in the income-driven repayment plans make less than $60,000 a year. Currently, over 2.5 million of 37 million federal student loan borrowers are benefitting from income-driven plans.
Make All Borrowers Eligible for Pay As You Earn: To make sure that students and families have an easy-to-understand insurance policy against unmanageable debt now and in the future, the President has proposed allowing all student borrowers to cap their federal student loan payments at 10 percent of their monthly income. Currently, students who first borrowed before 2008 or have not borrowed since 2011 are not eligible for the President’s Pay As You Earn plan. In addition, the Administration will work with Congress to ensure that the benefits are targeted to the neediest borrowers.
Launching an Enrollment Campaign for Pay As You Earn: Beginning this fall, the Department of Education will contact borrowers who have fallen behind on their student loan payments, undergraduate borrowers with higher-than-average debts, and borrowers in deferment or forbearance because of financial hardship or unemployment to ensure they have the information they need to choose the right repayment option for them. Starting in 2014, the Department of Education and the Department of Treasury will work to help borrowers learn about and enroll in Pay As You Earn and Income-Based Repayment plans when they file their taxes. And to assist guidance counselors and other advisers who guide students through the process of selecting and financing their higher education, the Administration will launch a “one-stop shop” that will include important resources for choosing among various income-driven repayment options.
STATE DEPARTMENT CONCLUDES EXPORT VIOLATIONS BY MEGGITT-USA, INC.
FROM: U.S. STATE DEPARTMENT,
Department of State Concludes Settlement of Export Violations by Meggitt-USA, Inc.
Media Note
Office of the Spokesperson
Washington, DC
August 23, 2013
The State Department concluded an administrative settlement with Meggitt-USA, Inc. ("Meggitt") a Delaware corporation, and subsidiary of Meggitt PLC, a corporation organized under the laws of England and Wales and ultimate parent of the Meggitt group of companies, to resolve alleged violations of the Arms Export Controls Act ("AECA")(22 U.S.C. § 2778) and the International Traffic in Arms Regulations ("ITAR")(22 C.F.R. parts 120-130). The settlement was resolved pursuant to ITAR Section 128.11 wherein Meggitt agreed to enter into a consent agreement with the Department.
The settlement was reached after an extensive compliance review by the Department of State’s Office of Defense Trade Controls Compliance in the Bureau of Political-Military Affairs of multiple disclosures submitted by Meggitt group subsidiaries involving hundreds of potential civil violations of the AECA and ITAR, of which sixty-seven are alleged as charges. This settlement highlights the Department’s responsibility to protect U.S. defense hardware and technology from unauthorized use and ensure compliance with the AECA and ITAR.
Over the course of several years, Meggitt subsidiaries and business units disclosed to the Department hundreds of ITAR violations beginning in the mid-1990s, largely involving the unauthorized export of defense articles, including technical data, the unauthorized provision of defense services, violation of the terms of provisos or other limitations of license authorizations, and the failure to maintain specific records involving ITAR-controlled transactions.
Under the terms of the 30-month consent agreement with the Department, Meggit is assessed a civil penalty of $25 million, of which $3 million will be paid in installments and the remainder suspended on the condition the Department approves expenditures for self-initiated, pre-consent agreement remedial compliance measures and consent agreement-authorized remedial compliance costs. In addition, an Internal Special Compliance Official will be engaged by Meggitt to oversee the consent agreement, which will also require the company to implement additional compliance measures, including enhanced policies and procedures, to review external audit programs and conduct audit measures pursuant to the agreement, to review jurisdictional determinations of commodities, and report on system upgrades and improvements.
Meggitt disclosed nearly all of the ITAR violations resolved in this settlement voluntarily to the Department, many of which were the result of post-acquisition review by Meggitt, acknowledged their serious nature, cooperated with Department reviews, and implemented or has planned extensive remedial measures throughout its subsidiaries. For these reasons, the Department determined that an administrative debarment or suspension of Meggitt was not appropriate at this time.
Department of State Concludes Settlement of Export Violations by Meggitt-USA, Inc.
Media Note
Office of the Spokesperson
Washington, DC
August 23, 2013
The State Department concluded an administrative settlement with Meggitt-USA, Inc. ("Meggitt") a Delaware corporation, and subsidiary of Meggitt PLC, a corporation organized under the laws of England and Wales and ultimate parent of the Meggitt group of companies, to resolve alleged violations of the Arms Export Controls Act ("AECA")(22 U.S.C. § 2778) and the International Traffic in Arms Regulations ("ITAR")(22 C.F.R. parts 120-130). The settlement was resolved pursuant to ITAR Section 128.11 wherein Meggitt agreed to enter into a consent agreement with the Department.
The settlement was reached after an extensive compliance review by the Department of State’s Office of Defense Trade Controls Compliance in the Bureau of Political-Military Affairs of multiple disclosures submitted by Meggitt group subsidiaries involving hundreds of potential civil violations of the AECA and ITAR, of which sixty-seven are alleged as charges. This settlement highlights the Department’s responsibility to protect U.S. defense hardware and technology from unauthorized use and ensure compliance with the AECA and ITAR.
Over the course of several years, Meggitt subsidiaries and business units disclosed to the Department hundreds of ITAR violations beginning in the mid-1990s, largely involving the unauthorized export of defense articles, including technical data, the unauthorized provision of defense services, violation of the terms of provisos or other limitations of license authorizations, and the failure to maintain specific records involving ITAR-controlled transactions.
Under the terms of the 30-month consent agreement with the Department, Meggit is assessed a civil penalty of $25 million, of which $3 million will be paid in installments and the remainder suspended on the condition the Department approves expenditures for self-initiated, pre-consent agreement remedial compliance measures and consent agreement-authorized remedial compliance costs. In addition, an Internal Special Compliance Official will be engaged by Meggitt to oversee the consent agreement, which will also require the company to implement additional compliance measures, including enhanced policies and procedures, to review external audit programs and conduct audit measures pursuant to the agreement, to review jurisdictional determinations of commodities, and report on system upgrades and improvements.
Meggitt disclosed nearly all of the ITAR violations resolved in this settlement voluntarily to the Department, many of which were the result of post-acquisition review by Meggitt, acknowledged their serious nature, cooperated with Department reviews, and implemented or has planned extensive remedial measures throughout its subsidiaries. For these reasons, the Department determined that an administrative debarment or suspension of Meggitt was not appropriate at this time.
SEC CHARGES INVESTMENT ADVISER IN ALGORITHMIC TRADING ABILITY CASE
FROM: SECURITIES AND EXCHANGE COMMISSION
SEC Charges North Carolina-Based Investment Adviser for Misleading Fund Board About Algorithmic Trading Ability
08/21/2013 10:43 AM EDT
The Securities and Exchange Commission today announced charges against a North Carolina-based investment adviser and its former owner for misleading an investment fund’s board of directors about the firm’s ability to conduct algorithmic currency trading so they would approve the firm’s contract to manage the fund.
The SEC’s Enforcement Division alleges that Chariot Advisors LLC and Elliott L. Shifman misled the fund’s board about the nature, extent, and quality of services that the firm could provide as he touted the competitive benefits of algorithmic trading in two presentations before the board. Contrary to what Shifman told the directors, Chariot Advisors did not devise or otherwise possess any algorithms capable of engaging in the currency trading that Shifman was describing. After the fund was launched, Chariot Advisors did not use an algorithm model to perform the fund’s currency trading as represented to the board, but instead hired an individual trader who was allowed to use discretion on trade selection and execution. The misconduct by Shifman and Chariot Advisors caused misrepresentations and omissions in the Chariot fund’s registration statement and prospectus filed with the SEC and viewed by investors.
The case arises out of an initiative by the SEC Enforcement Division’s Asset Management Unit to focus on the “15(c) process” – a reference to Section 15(c) of the Investment Company Act of 1940 that requires a registered fund’s board to annually evaluate the fund’s advisory agreements. Advisers must provide the board with the truthful information necessary to make that evaluation. Other enforcement actions taken against misconduct in the investment contract renewal process and fee arrangements include cases against Morgan Stanley Investment Management, a sub-adviser to the Malaysia Fund, and two mutual fund trusts affiliated with the Northern Lights Variable Trust fund complex.
“It is critical that investment advisers provide truthful information to the directors of the registered funds they advise,” said Julie M. Riewe, Co-Chief of SEC Enforcement Division’s Asset Management Unit. “Both boards and advisers have fiduciary duties that must be fulfilled to ensure that a fund’s investors are not harmed.”
According to the SEC’s order instituting administrative proceedings, the false claims by Chariot and Shifman defrauded the Chariot Absolute Return Currency Portfolio, a fund that was formerly within the Northern Lights Variable Trust fund complex. In December 2008 and again in May 2009, Shifman misrepresented to the Chariot fund’s board that his firm would implement the fund’s investment strategy by using a portion of the fund’s assets to engage in algorithmic currency trading. Chariot fund’s initial investment objective was to achieve absolute positive returns in all market cycles by investing approximately 80 percent of the fund’s assets under management in short-term fixed income securities, and using the remaining 20 percent of the assets under management to engage in algorithmic currency trading.
According to the SEC’s order, Chariot Advisors did not have an algorithm capable of conducting such currency trading. The ability to conduct currency trading was particularly significant for the Chariot fund’s performance, because in the absence of an operating history the directors focused instead on Chariot Advisors’ reliance on models when the board evaluated the advisory contract. Even though Shifman believed that the fund’s currency trading needed to achieve a 25 to 30 percent return to succeed, Shifman never disclosed to the board that Chariot Advisors had no algorithm or model capable of achieving such a return.
According to the SEC’s order, because Chariot Advisors possessed no algorithm, currency trading for the fund was under the control of an individual trader who was not using an algorithm for at least the first two months after the fund’s launch. Shifman had interviewed the trader prior to her hiring and knew that she used a technical analysis, rules-based approach for trading that combined market indicators with her own intuition. The trader traded currencies for the fund until Sept. 30, 2009 when she was terminated due to poor trading performance. Subsequently, Chariot employed a third party who utilized an algorithm to conduct currency trading on behalf of the Chariot fund.
The SEC’s order alleges that the misconduct by Chariot and Shifman, who lives in the Raleigh area, resulted in violations of Sections 15(c) and 34(b) of the Investment Company Act of 1940 and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8. A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the order are true and whether any remedial sanctions are appropriate.
The SEC’s investigation was led by Stephen E. Donahue and John G. Westrick of the Asset Management Unit and Atlanta Regional Office as well as Micheal D. Watson of the Atlanta office. Pat Huddleston and Shawn Murnahan will lead the Enforcement Division’s litigation. John Sherrick and Timothy J. Barker of the Atlanta Regional Office conducted the related examination that led to the investigation.
SEC Charges North Carolina-Based Investment Adviser for Misleading Fund Board About Algorithmic Trading Ability
08/21/2013 10:43 AM EDT
The Securities and Exchange Commission today announced charges against a North Carolina-based investment adviser and its former owner for misleading an investment fund’s board of directors about the firm’s ability to conduct algorithmic currency trading so they would approve the firm’s contract to manage the fund.
The SEC’s Enforcement Division alleges that Chariot Advisors LLC and Elliott L. Shifman misled the fund’s board about the nature, extent, and quality of services that the firm could provide as he touted the competitive benefits of algorithmic trading in two presentations before the board. Contrary to what Shifman told the directors, Chariot Advisors did not devise or otherwise possess any algorithms capable of engaging in the currency trading that Shifman was describing. After the fund was launched, Chariot Advisors did not use an algorithm model to perform the fund’s currency trading as represented to the board, but instead hired an individual trader who was allowed to use discretion on trade selection and execution. The misconduct by Shifman and Chariot Advisors caused misrepresentations and omissions in the Chariot fund’s registration statement and prospectus filed with the SEC and viewed by investors.
The case arises out of an initiative by the SEC Enforcement Division’s Asset Management Unit to focus on the “15(c) process” – a reference to Section 15(c) of the Investment Company Act of 1940 that requires a registered fund’s board to annually evaluate the fund’s advisory agreements. Advisers must provide the board with the truthful information necessary to make that evaluation. Other enforcement actions taken against misconduct in the investment contract renewal process and fee arrangements include cases against Morgan Stanley Investment Management, a sub-adviser to the Malaysia Fund, and two mutual fund trusts affiliated with the Northern Lights Variable Trust fund complex.
“It is critical that investment advisers provide truthful information to the directors of the registered funds they advise,” said Julie M. Riewe, Co-Chief of SEC Enforcement Division’s Asset Management Unit. “Both boards and advisers have fiduciary duties that must be fulfilled to ensure that a fund’s investors are not harmed.”
According to the SEC’s order instituting administrative proceedings, the false claims by Chariot and Shifman defrauded the Chariot Absolute Return Currency Portfolio, a fund that was formerly within the Northern Lights Variable Trust fund complex. In December 2008 and again in May 2009, Shifman misrepresented to the Chariot fund’s board that his firm would implement the fund’s investment strategy by using a portion of the fund’s assets to engage in algorithmic currency trading. Chariot fund’s initial investment objective was to achieve absolute positive returns in all market cycles by investing approximately 80 percent of the fund’s assets under management in short-term fixed income securities, and using the remaining 20 percent of the assets under management to engage in algorithmic currency trading.
According to the SEC’s order, Chariot Advisors did not have an algorithm capable of conducting such currency trading. The ability to conduct currency trading was particularly significant for the Chariot fund’s performance, because in the absence of an operating history the directors focused instead on Chariot Advisors’ reliance on models when the board evaluated the advisory contract. Even though Shifman believed that the fund’s currency trading needed to achieve a 25 to 30 percent return to succeed, Shifman never disclosed to the board that Chariot Advisors had no algorithm or model capable of achieving such a return.
According to the SEC’s order, because Chariot Advisors possessed no algorithm, currency trading for the fund was under the control of an individual trader who was not using an algorithm for at least the first two months after the fund’s launch. Shifman had interviewed the trader prior to her hiring and knew that she used a technical analysis, rules-based approach for trading that combined market indicators with her own intuition. The trader traded currencies for the fund until Sept. 30, 2009 when she was terminated due to poor trading performance. Subsequently, Chariot employed a third party who utilized an algorithm to conduct currency trading on behalf of the Chariot fund.
The SEC’s order alleges that the misconduct by Chariot and Shifman, who lives in the Raleigh area, resulted in violations of Sections 15(c) and 34(b) of the Investment Company Act of 1940 and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8. A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the order are true and whether any remedial sanctions are appropriate.
The SEC’s investigation was led by Stephen E. Donahue and John G. Westrick of the Asset Management Unit and Atlanta Regional Office as well as Micheal D. Watson of the Atlanta office. Pat Huddleston and Shawn Murnahan will lead the Enforcement Division’s litigation. John Sherrick and Timothy J. Barker of the Atlanta Regional Office conducted the related examination that led to the investigation.
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