Tuesday, September 17, 2013

FDA EVALUATES TECHNOLOGIES TO MAKE BLOOD SUPPLY SAFER

FROM:  U.S. FOOD AND DRUG ADMINISTRATION 

Every two seconds in the U.S., someone needs a blood transfusion or blood product—people of all ages who are injured, need surgery or who are suffering from illness. The Food and Drug Administration's (FDA) primary responsibility with regard to blood and blood products is to assure the safety of patients who receive these life-saving products. FDA is at the forefront of evaluating and encouraging innovative technologies designed to identify and minimize the risks to people who receive transfusions, such as the transmission of infectious disease, while maintaining a safe and adequate supply.

Richard Davey, M.D., is director of the Division of Blood Applications, Office of Blood Research and Review, at FDA. He discusses advances in the field, contingency plans during disasters and why—and when—to give blood.

Q: There have been many improvements in transfusion practice since the modern era of blood transfusion began in 1900. What's on the horizon?

A: We're excited about many developments, including a new red blood cell testing technology aimed at patients with illnesses that require frequent transfusions, for example sickle cell anemia. These patients sometimes develop antibodies that complicate finding compatible blood for transfusion.

A new FDA laboratory is evaluating this new technology which identifies the genetic characteristics of a patient's red blood cells so they can be more precisely matched to a donor. FDA is encouraging submissions from industry for these molecular test kits. It's an important breakthrough.

Exciting research is also progressing on technologies that will significantly reduce any bacteria, viruses and parasites that may be in blood. These technologies would complement existing tests for these infectious agents, thus making a safe blood supply even safer.

Q: Isn't the blood supply already safe?

A: The United States is recognized as having one of the safest blood supplies in the world, but assuring the safety and availability of blood products still poses challenges. The HIV risk to recipients is now only about 1 in every 2 million units of blood transfused in the USA, but it's still not zero. We test all blood for HIV, hepatitis B and C, West Nile virus and the parasite that causes Chagas disease, among other infectious agents. Blood found to contain any of these pathogens is discarded and, in most cases, the individual is notified and deferred from further donation.

Q: Is artificial blood possible?

A: Companies are working to develop oxygen carriers that could substitute for red blood cells. We're working with these companies and remain hopeful that one or more of these technologies eventually will prove to be safe and effective.

Q: How much blood is needed in the U.S.?

A: About 15 million units of red blood cells are drawn every year for transfusion to about five million recipients. In recent years, the demand for red blood cells has declined, primarily because doctors are learning to transfuse more scientifically and use blood only when necessary. However, challenges remain. In June, for example, the American Red Cross had almost 50,000 fewer donors than expected. Type O negative red cells, which can be transfused to people of all blood types, is the blood type most likely to be in short supply, but there is a need for donors of all blood types, all the time.

The American Red Cross and independent blood centers affiliated with America's Blood Centers each collect about 45% of the blood supply, with the remainder collected by hospital blood banks.

Q: At the Boston Marathon, 264 people were injured, creating an unexpected demand for blood. Did that cause a supply problem?

A: Boston has an excellent triage system so casualties were spread among several hospitals, which also spread the need for blood. In case of a disaster such as the marathon bombing, an interagency task force mobilizes to move blood to where it is needed.

Q: During disasters, many people volunteer to donate blood. Is that helpful?

A: It's a good and noble response, but we need donors every day to meet ongoing requirements for blood. It takes two to three days to fully test and qualify blood for transfusion. Therefore, it is the blood that is fully tested and available for transfusion that is used at the time of an emergency. The people donating today will be the heroes if a disaster occurs next week.

After 9/11, for example, many people donated. However, little of the additional blood was needed, and some of the donated blood expired and had to be discarded. The best response during a major disaster is to have already qualified as a regular blood donor and to have records on file at the blood center. Then the blood center can call you when your blood type is most needed. And, as mentioned above, become a regular blood donor for everyday patient needs and to have your blood available if an emergency occurs.

Q. What are the different components of blood, and how are they used?

A. Whole blood can be divided into several components, each of which can be important to a patient in need. Red blood cells carry oxygen, and are important to correct bleeding or to compensate for inadequate production of these cells. Blood platelets are small particles that are important for normal blood clotting to occur. They are often used in cancer patients, when the disease or the treatment interferes with the normal production of these elements. Blood plasma is the yellow fluid that remains when the red cells and other particles are removed. Plasma is also important for normal blood clotting to occur. It can be transfused without modification, or further processed into important products such as gamma globulin or albumin.

Q: How long does blood last?

A: It's different for each of the blood components. Red blood cells can be stored for six weeks as a liquid. Blood platelets can be stored only for five days. Blood plasma can be frozen for use up to one year. New additives, preservatives and storage techniques are being developed to help extend expiration dates.

Q: Of those eligible to donate, how many do so?

A: We estimate that about 45% of the population is eligible to donate blood. However, only about 4% actually do so, and 75% of those are repeat donors.

Donating blood is extremely safe for donors, with each needle and blood bag used only once. About one pint of whole blood is collected in a standard donation, which is about 10% of an average adult's total blood volume. Alternatively, most blood centers have instruments that allow a donor to specifically donate red cells, platelets and/or plasma, according to current needs. The body replaces the donated blood within a short time. Donors get a "mini-physical" and cookies. Most importantly, they know that their donation can help several patients who require these life-saving products. They truly are giving the "gift of life."

This article appears on FDA's Consumer Updates page, which features the latest on all FDA-regulated products.

Sept 16, 2013

"HI I'M RACHEL" ROBOCALL CREDIT CARD RATE-REDUCTION SCAMS SHUT DOWND

FROM:  FEDERAL TRADE COMMISSION 
Deceptive Robocallers Permanently Shut Down In FTC Settlements

Companies Behind Credit Card Rate-Reduction Scams Will Be Banned From Telemarketing, Robocalling
The Federal Trade Commission has continued its crackdown on illegal robocallers, with two more companies agreeing to settle charges that they used prerecorded calls to trick consumers into deceptive credit card interest rate reduction scams.

Under separate proposed settlements, the defendants behind Treasure Your Success and Ambrosia Web Design will be banned from telemarketing and delivering robocalls.  They also will be permanently prohibited from advertising, marketing, promoting, or offering for sale any debt relief product or service, or assisting others in doing so.

The FTC filed the initial cases against the operators of both companies in 2012 as part of a joint-agency crackdown on companies and individuals responsible for making millions of illegal “Rachel” robocalls pitching credit card rate-reduction services.

Treasure Your Success

In its original complaint against Treasure Your Success, the FTC alleged that the defendants tricked consumers into paying up-front fees for as much as $1,593, using deceptive offers for credit card interest rate reduction services.

The complaint named two individuals, Willy Plancher and Valbona Toska, as well as their three companies, WV Universal Management, Global Financial Assist, and Leading Production.  The defendants began marketing credit card interest rate reduction services in 2010.  According to the FTC’s complaint, the defendants lured consumers by telling them they could substantially reduce their credit card interest rates, down to as low as three percent, in many instances.  After collecting the upfront fees, however, consumers typically failed to get any interest rate reduction or any savings at all.

In November 2012, at the FTC’s request, a federal court halted the scheme and froze the defendants’ assets pending further court proceedings. The FTC subsequently amended its complaint to include new defendants and additional counts.

In addition to the other provisions of the settlement, the proposed order holds the defendants liable for $2,032,626, based on the amount of consumer injury in the case. Due to the inability of the individual defendants to pay redress, the monetary judgment has been suspended. However, if the defendants misstate or fail to disclose any of their material assets, the full amount of the judgment will be immediately due and payable.

The case against Treasure Your Success was filed in the U.S. District Court for the Middle District of Florida, Orlando Division. Litigation continues against: HES Merchant Services Company, Business First Solutions, VoiceOnyx Corp., Hal E. Smith, Jonathon E. Warren, Ramon Sanchez-Ortega, Universal Processing Services of Wisconsin, and Derek Depuydt.

Ambrosia Web Design

According to the FTC’s complaint, the Ambrosia Web Design defendants delivered prerecorded calls that urged consumers they called to “press one” if they were interested in credit card interest rate reduction services.  Consumers who pressed one were connected to a telemarketer who promised to get them very low interest rates or, in some cases, specific amounts of interest savings.  The defendants often deceived consumers into thinking defendants were affiliated with a government program.  If consumers agreed to sign up, the telemarketer got their credit card information, often charging an illegal advance fee before providing any service, the FTC alleged.

The FTC alleged that defendants then typically failed to deliver on their promises. In addition, the FTC charged defendants with failing to disclose their purported no-refund/no cancellation policy and billing some consumers without their express authorization.  Finally, the FTC alleged defendants illegally called many phone numbers on the National Do Not Call Registry.

In June 2013, the FTC amended its original complaint to add charges of credit card laundering in violation of the agency’s Telemarketing Sales Rule.  According to the FTC, in many cases, the defendants laundered credit card payments by processing them for other telemarketers through the Ambrosia defendants’ own merchant accounts; and arranging for other merchants to process credit card payments for the defendants through their accounts.

In addition to the bans on outbound telemarketing and robocalling, the proposed settlement order:

Bans the defendants from using certain payment processing methods, such as remotely created checks, that are often used to conduct fraud;
Prohibits the defendants from making misrepresentations regarding any “financial products or services;” and
Prohibits the defendants from misrepresenting the efficacy of a product or service.
The proposed settlement requires the defendants to liquidate virtually all of their assets, including a valuable watch and a sports memorabilia collection.  It also includes a judgment of $8.3 million, which will be suspended if defendants comply with the terms of the settlement.

The settlement resolves the FTC’s charges against: 1) Ambrosia Web Design, LLC, also doing business as AWD; 2) Concord Financial Advisors LLC; 3) CAM Services Direct LLC; 4) AFB LLC; 5) Western GPS LLC; 6) Chris Ambrosia, individually and as a manager of Ambrosia Web Design LLC and CAM Services Direct LLC; and 6) LeRoy Castine, also known as Lee Castine, individually and as a manager of Ambrosia Web Design LLC, Concord Financial Advisors LLC, AFB LLC, and Western GPS LLC.

The case against Ambrosia Web Design was filed in the U.S. District Court for the District of Arizona.

The Commission vote approving the proposed settlements in both actions was 4-0.

Information for Consumers

The FTC has tips for consumers, as well as two new consumer education videos explaining robocalls and describing what consumers should do when they receive one.  See ftc.gov/robocalls for more information.

FTC STOPS COMPANY AND THREE PRINCIPALS IN ALLEGED FRAUDULENT DEBT RELIEF SCHEME

FROM:  FEDERAL TRADE COMMISSION 
FTC Shuts Down Fraudulent Debt Relief Operation

The defendants behind an alleged credit card interest rate reduction scam are banned from selling debt relief services and from telemarketing any goods or services.
A federal court judge in Florida approved and signed a stipulated order against Innovative Wealth Builders, Inc., (IWB) and its three Florida-based principals: Carly Janene Pelland (also known as Carly Zurita), Sheryl Leigh Lopez, and Tamara Dawn Johnson. The defendants agreed to settle Federal Trade Commission allegations that they falsely promised to substantially reduce consumers’ credit card interest rates and save them thousands of dollars on their credit card debts.

The FTC will continue to move forward with litigation against Independant Resources Network Corp. (IRN), the payment processor that allegedly assisted and facilitated the scam. In June, the FTC amended its original complaint to name IRN as a defendant in the case.

According to the FTC’s complaint, the settling defendants, IWB and its three principals, violated the FTC Act by misrepresenting credit card interest rate reduction services, misrepresenting refund policies, and billing consumers without authorization. The complaint also alleges the defendants violated the FTC’s Telemarketing Sales Rule by misrepresenting the debt relief services they were selling, charging a fee before providing these services, and billing consumers without their express informed consent.

The stipulated order also prohibits the settling defendants from making any material misrepresentations in connection with advertising, marketing, promotion, offering for sale, or sale of any financial related product or service. The order includes a $9.9 million judgment against IWB and its three principals.

The Commission’s vote authorizing staff to file the stipulated final order was 4-0. The FTC filed the stipulated final order for permanent injunction in the U.S. District Court for the Middle District of Florida, Tampa Division. The District Court judge signed and approved the order on Sept. 10, 2013.

NOTE: Stipulated orders have the force of law when signed and approved by the District Court judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

GUARDSMEN, FIRST RESPONDERS EVACUATED IN COLORADO

FROM:  U.S. DEFENSE DEPARTMENT 
Army Evacuates Guardsmen, First Responders in Colorado
From a Colorado National Guard News Release

CENTENNIAL, Colo., Sept. 16, 2013 - As rain and cloud cover hampered military aviation operations in Colorado yesterday, the rising waters added Colorado National Guardsmen and first responders to the list of flood evacuees.
At about 4:20 p.m., a mix of 51 Colorado National Guardsmen, first responders and civilians, along with five pets, were reported to be stopped by rising waters in Lyons, Colo. Flood waters rose so high that even the half-dozen Light Medium Tactical Vehicles deployed with the group -- the "go-to" high-mobility trucks that have become the staple of the military's ground search-and-rescue efforts -- couldn't ford them, officials said.
In the meantime, the weather in Boulder County broke, so U.S. Army aviators from the 4th Infantry Division from Fort Carson resumed flight operations from the Boulder Municipal Airport. Among their priority missions was to evacuate the 51 people stranded in Lyons.

Aviators flying two helicopters -- a CH-47 Chinook and a UH-60 Black Hawk -- were able to evacuate all 10 civilians and their pets, along with a number of first responders and Guardsmen, before weather took another bad turn and aviation operations were suspended again.

"It's great to provide support to our neighbors and work with such great professionals," said Army Col. Robert Ault, commander of the 4th Combat Aviation Brigade. "The first responders have the desire, we have the capabilities and it's great when we can all come together to help make a difference."

Of the original 51, 15 first responders and Guardsmen, along with the high-mobility vehicles, are waiting out the flood on higher ground until flight operations resume or the waters become passable, officials said.

Twenty military helicopters and crews were scheduled to conduct evacuation operations yesterday, but most were grounded for much of the day as heavy rain and low ceilings hampered visibility, causing flight safety issues for much of the day.

MAN SENTENCED IN BLACK MARKET PESO EXCHANGE SCHEME

FROM:  U.S. DEPARTMENT OF JUSTICE 
Wednesday, September 11, 2013

Houston Man Sentenced for $20 Million ‘Black Market Peso Exchange’ Scheme
One of the leaders of a criminal conspiracy that laundered more than $20 million through “shell” business bank accounts was sentenced today to 151 months in prison.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.

Willie Whitehurst, 45, of Houston, was sentenced by U.S. District Judge Lee H. Rosenthal of the Southern District of Texas.  In January and February 2013, Whitehurst and co-conspirators Enrique Morales, Fulton Smith and Anthony Foster pleaded guilty to conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business.  Another co-conspirator, Sarah Combs, also pleaded guilty to conspiracy to operate an unlicensed money transmitting business.
 
In August 2012, a federal grand jury in Houston indicted the five defendants for their parts in a large “Black Market Peso Exchange” scheme.  From October 2009 to September 2011, the defendants placed U.S. currency gained through the sale of drugs in U.S. cities into bank accounts held in the names of the organization’s “shell” companies.  The money was then transferred to different accounts in the U.S. and in Mexico.  In exchange, pesos were transferred back to accounts owned by the organization’s clients.

Morales was previously sentenced to 188 months in prison, and Foster received a sentence of 121 months in prison.  Smith was sentenced to 30 months, while Combs was sentenced to 24 months in prison.

The case was investigated by the Drug Enforcement Administration and the Internal Revenue Service – Criminal Investigation Division.  Assistant U.S. Attorney Ted Imperato of the Southern District of Texas and Trial Attorney Keith Liddle of the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section prosecuted the case.

Monday, September 16, 2013

READOUT: CARTER'S TRAVEL TO PAKISTAN

FROM:  U.S. DEFENSE DEPARTMENT 
Readout of Deputy Secretary of Defense Carter's Travel to Pakistan

Deputy Secretary of Defense Ashton B. Carter traveled to Pakistan on Sept. 16 where he met with senior Pakistani government and defense officials.

In Pakistan Deputy Secretary Carter met with Sartaj Aziz, Advisor to the Prime Minister for Foreign Affairs and National Security; General Khalid Shameem Wynn, Chairman of the Joint Chiefs of Staff Committee; and General Ashfaq Parvez Kayani, Chief of Army Staff.

During his meetings with the senior Pakistani officials, Deputy Secretary Carter expressed his condolences for the recent killing by extremists of three Pakistan military personnel, including Maj. Gen. Sanaullaha, commander of Swat Division. He also discussed the significantly improved bilateral defense relationship between the United States and Pakistan, which has made important contributions to the security interests of both countries.

Deputy Secretary Carter also met with U.S. Ambassador to Pakistan Richard Olson and Commander of the Office of the Defense Representative Pakistan (ODRP) Lt. Gen. Greg Biscone at the U.S. Embassy. While at the embassy, Carter thanked U.S. personnel serving in ODRP and the embassy Marine Security Guard Detachment for their service and continued dedication.

TREASURY SECRETARY LEW'S STATEMENT ON ANNIVERSARY OF FINANCIAL CRISIS

FROM:  U.S. DEPARTMENT OF TREASURY 
Statement from Secretary Lew on the Five-Year Anniversary of the Financial Crisis

“Five years ago, a devastating crisis hit our financial system.  The ensuing economic recession, unlike anything we had seen since the Great Depression, was not caused by a single firm or a single event.  It was the culmination of many factors, including excessive risk taking, the accumulation of too much debt, and an outdated regulatory structure.

“The swift emergency response that began on a bipartisan basis helped the financial system to stabilize and our economy start growing again.  Today, taxpayers will be repaid for the extraordinary investments we made in the financial system, but we are still healing from the deep damage the crisis did to our economy. Because President Obama took up the mantle of reform and made Dodd-Frank the law of the land, our financial system is now safer, stronger, and more resilient than it was before the crisis.  In fact, financial markets are more transparent, we have new tools to monitor risk and wind down companies whose failure would threaten the entire financial system and Americans have a dedicated consumer watchdog looking out for them.  In addition, because of these efforts and other policies to strengthen the recovery, private employers have added 7 and a half million jobs over the past 42 months.  

“As we finish the remaining elements of Wall Street reform this year, we must remember that financial reform is not about writing a set of rules and then walking off the field. We must remain vigilant and respond immediately to new risk in the financial system. Reforming Wall Street is ultimately about an enduring commitment to making our financial system a model of stability and safety that contributes to job creation and economic growth.”

FBI SEEKS MORE INFORMATION ON NAVAL YARD SHOOTER

http://www.fbi.gov/wanted/seeking-info/aaron-alexis/view

CHUCK HAGEL'S STATEMENT ON WASHINGTON NAVY YARD SHOOTINGS

FROM:  U.S. DEFENSE DEPARTMENT 
Statement from Secretary of Defense Chuck Hagel on the Incident at Washington Navy Yard

I have been receiving regular updates on the shooting at the Washington Navy Yard, and continue to monitor the situation closely.  This is a tragic day for the Department of Defense, the national capital area, and the nation.  My thoughts and prayers are with the victims of this outrageous act of violence, their families, and all those affected by today's events.  I am grateful for the swift response of federal and local law enforcement, and for the professionalism of DoD personnel at the Navy Yard complex.  The Department of Defense will continue to offer its full assistance in the investigation of this terrible and senseless violence.

PEST CONTROL COMPANY CHARGED WITH UNLAWFUL APPLICATION OF PESTICIDES

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, September 11, 2013
Pest Control Company and Its Owner Charged with Unlawful Application of Pesticides and Falsification

A pest control services company and its owner have been charged today in the U.S. District Court for the Middle District of Georgia with conspiracy, unlawful use of pesticides, false statements, falsification of records and mail fraud, announced Robert G. Dreher, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division and Michael J. Moore, U.S. Attorney for the Middle District of Georgia.

Steven A. Murray, 54, of Pelham, Ala., and his company, Bio-Tech Management Inc., were charged in a felony indictment with one count of conspiracy, 10 counts of making false statements, 20 counts of falsifying records, 10 counts of mail fraud and 10 counts of unlawful use of a pesticide.

The indictment alleges that from October 2005 to June 2009, Steven Murray and Bio-Tech repeatedly misapplied the registered pesticide Termidor SC in nursing homes in the state of Georgia and falsified documents to conceal the unlawful use.  The indictment further alleges that Murray and Bio-Tech sent invoices through the U.S. Mail to their nursing home clients to solicit payment for the unlawful pesticide applications.  

According to the indictment, Steve Murray and Bio-Tech provided monthly pest control services to nursing homes in Georgia by spraying pesticides in and around their clients’ facilities.  The indictment alleges that, at the direction of Murray, Bio-Tech employees routinely applied the pesticide Termidor indoors more than twice a year, contrary to the manufacturer’s label instructions.  The indictment further alleges that after the Georgia Department of Agriculture made inquiries regarding Bio-Tech’s misuse of Termidor and other pesticides, Murray directed several of his Bio-Tech employees to alter company service reports with the intent to obstruct an investigation.        

U.S. Environmental Protection Agency (EPA) regulations require that all pesticides be registered, properly labeled, and applied as specified by manufacturer’s labeling to protect public health and the environment.

A criminal indictment is not a finding of guilt.  An individual or company charged by criminal indictment is presumed innocent unless and until proven guilty in a court of law.

The falsifying records and mail fraud charge carry a maximum sentence of 20 years in prison and $250,000 fine per count.  The false statements charges each carry a maximum sentence of five years in prison and a $250,000 fine.

These cases are being investigated by Special Agents of the EPA’s Criminal Investigations Division in Atlanta and prosecuted by Trial Attorneys Richard J. Powers and Adam C. Cullman of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section.

FORMER EXECUTIVE SENTENCED TO 87 MONTHS IN PRISON FOR ROLE IN KICKBACK SCHEMES

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, September 12, 2013
Former Airline Executive Sentenced to Prison for Schemes to Defraud Illinois-Based Ryan International Airlines
Executive Sentenced to Serve 87 Months in Prison

A former executive of Ryan International Airlines, a charter airline company located in Rockford, Ill., was sentenced today to serve 87 months in prison and to pay restitution for participating in kickback schemes to defraud Ryan, the Department of Justice announced.

Wayne E. Kepple, the former vice president of ground operations for Ryan, was sentenced to serve 87 months in prison and to pay $529,998 in restitution.  On Nov. 4, 2011, Kepple pleaded guilty in U.S. District Court in West Palm Beach, Fla., to three counts of conspiracy to commit wire fraud and honest services fraud and three counts of wire fraud.  The charges against Kepple stem from a kickback scheme involving Robert A. Riddell, the former owner and operator of an airline security and ground service company, as well as separate kickback schemes involving David A. Chaisson, the former owner and operator of an Indiana flight management services company, James E. Murphy, the former owner and operator of a Florida aviation fuel supply company, and others.

Ryan provided air passenger and cargo services for corporations, private individuals and the U.S. government – including the U.S. Department of Defense and the U.S. Department of Homeland Security.

“Today’s sentence should serve as a stiff deterrent to executives who might be tempted to solicit a kickback from their supplies in exchange for their honest services,” said Bill Baer, Assistant Attorney General in charge of the Antitrust Division. “The Antitrust Division is committed to ensuring that contracts are won based on competition and not collusion.”

According to court documents, Kepple was in charge of contracting with providers of goods and services on behalf of Ryan and approving the invoices submitted by the providers to Ryan for payment. From October 2005 through at least August 2009, Kepple participated in three separate conspiracies in which he received kickback payments of more than $520,000 from Riddell, Murphy, Chaisson and others in exchange for Kepple awarding them Ryan airline services and fuel contracts.  According to court documents, the payments from Chaisson and Riddell included the proceeds of fabricated invoices submitted by their companies to Ryan.

As a result of the ongoing investigation, four individuals, including Kepple, have pleaded guilty and been sentenced to prison.  On Oct. 28, 2011, Murphy was sentenced to serve 23 months in prison and to pay $42,500 in restitution and Chaisson was sentenced to serve 16 months in prison and to pay $50,742 in restitution.  On Jan. 27, 2012, Riddell was sentenced to serve 24 months in prison and to pay $131,540 in restitution. Kepple’s 87-month sentence reflects his central role in multiple kickback schemes.

On Aug. 13, 2013, a fifth individual, Sean E. Wagner, and his company, Aviation Fuel International Inc. (AFI), a Florida-based airline fuel supply company, were indicted for participating in a conspiracy to defraud Ryan by making kickback payments to Kepple in exchange for awarding business to AFI.  That case is ongoing.
         
The investigation is being conducted by the Antitrust Division’s National Criminal Enforcement Section and the U.S. Department of Defense’s Office of Inspector General with assistance from the U.S. Attorney’s Office for the Southern District of Florida.

DHS AND NASA WORK TOGETHER TO SAVE VICTIMS OF DISASTER

FROM:  U.S. DEPARTMENT OF HOMELAND SECURITY
Detecting Heartbeats in Rubble: DHS and NASA Team up to Save Victims of Disasters

In June 2013, Urban Search and Rescue team tested the FINDER’s human-finding abilities at the Fairfax County Fire Department training center.

When natural disasters or man-made catastrophes topple buildings, search and rescue teams immediately set out to recover victims trapped beneath the wreckage. During these missions, time is imperative, and quickly detecting living victims greatly increases chances for rescue and survival.

A new radar-based technology named Finding Individuals for Disaster and Emergency Response (FINDER) has been developed by the Department of Homeland Security’s Science and Technology Directorate (S&T) and the National Aeronautics Space Administration’s Jet Propulsion Laboratory (JPL) to detect a human heartbeat buried beneath 30 feet of crushed materials, hidden behind 20 feet of solid concrete, and from a distance of 100 feet in open spaces. In the past several months, S&T and JPL have been testing and developing several FINDER prototypes. Last June, DHS and first responders used the prototype to conduct more than 65 test searches with two Urban Search and Rescue (US&R) teams: the Virginia Task Force One (VA-TF1) at the Fairfax County Fire Department training center and Virginia Task Force Two (VA-TF2) in Virginia Beach, Va.

“Testing proved successful in locating a VA-TF1 member buried in 30 feet of mixed concrete, rebar, and gravel rubble from a distance of over 30 feet,” said John Price, S&T program manager. “This capability will complement the current Urban Search and Rescue tools such as canines, listening devices, and video cameras to detect the presence of living victims in rubble.”

MAN INDICTED IN $30 MILLION PONZI SCHEME THAT TARGETED HAITIAN-AMERICANS

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 
SEC Defendant Indicted in $30 Million Ponzi Scheme and Affinity Fraud Targeting Haitian-American Investors

On July 2, 2013, the United States Attorney’s Office for the Southern District of Florida filed criminal charges against George Louis Theodule, a defendant in a now settled SEC action. The 40-count indictment charges Theodule with securities fraud, wire fraud, and money laundering. According to the indictment, Theodule, among other things, falsely presented himself as a financial expert who would double investors’ funds within three months by placing trades through their investment accounts. The indictment also alleges that Theodule operated a Ponzi scheme that raised more than $30 million from thousands of investors. Theodule allegedly perpetrated the fraud through Creative Capital Consortium, LLC and Creative Capital Concept$, LLC (the “Creative Capital entities”), among other entities he controlled.

In December 2008, the Commission halted Theodule’s on-going fraud at Creative Capital when it filed an emergency civil enforcement action against him and his companies. The SEC’s complaint alleged that the defendants had raised more than $23 million from thousands of mostly Haitian-American investors through a fraudulent, unregistered offering of securities nationwide, and operated a Ponzi scheme, having lost at least $18 million trading stocks and options through a network of purported investment clubs. The SEC obtained a restraining order to halt the fraudulent activity, and thereafter a receiver was appointed by the United States District Court for the Southern District of Florida to identify and trace assets. In October 2009, the Court entered a Judgment of Permanent Injunction and Other Relief against Theodule. The Judgment entered by consent, enjoined Theodule from violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, and also ordered Theodule to pay disgorgement with prejudgment interest and a civil penalty. In March 2010, the Court entered a Final Judgment ordering him to pay disgorgement in the amount of $5,099,512, prejudgment interest of $202,638 and imposed a civil penalty of $250,000.

The SEC's investigation was conducted by Linda S. Schmidt and Kathleen Strandell of the Miami Regional Office. The litigation was led by Amie Riggle Berlin and Robert K. Levenson. The SEC acknowledges the work of the United States Attorney’s Office for the Southern District of Florida, the Federal Bureau of Investigation, Miami Field Office, and the State of Florida’s Office of Financial Regulation this matter.


Sunday, September 15, 2013

Chuck Mangione Children Of Sanchez

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

FROM:  U.S. STATE DEPARTMENT 
Remarks With Israeli Prime Minister Benjamin Netanyahu After Their Meeting
Remarks
John Kerry
Secretary of State
Israeli Prime Minister Benjamin Netanyahu
Prime Minister's Office
Jerusalem
September 15, 2013

PRIME MINISTER NETANYAHU: Mr. Secretary, John, a pleasure to welcome you again in Jerusalem. I very much appreciate the fact that you’re here today. You’ve got a lot on your plate. Despite that busy schedule of yours, you took the time to come to Jerusalem. It’s deeply appreciated. I appreciate the fact that you’re making a great personal effort on matters of vital strategic importance for all of us.

We have been closely following and support your ongoing efforts to rid Syria of its chemical weapons. The Syrian regime must be stripped all its chemical weapons, and that would make our entire region a lot safer. The world needs to ensure that radical regimes don’t have weapons of mass destruction, because as we’ve learned once again in Syria, if rogue regimes have weapons of mass destruction, they will use them. The determination the international community shows regarding Syria will have a direct impact on the Syrian regime’s patron, Iran.

Iran must understand the consequences of its continual defiance of the international community by its pursuit towards nuclear weapons. What the past few days have showed is something that I’ve been saying for quite some time, that if diplomacy has any chance to work, it must be coupled with a credible military threat. What is true of Iran – or what is true of Syria is true of Iran, and by the way, vice versa.

John, I appreciate the opportunity we’ve had to discuss at some length our quest for peace with the Palestinians and the ongoing talks. We both know that this road is not an easy one, but we’ve embarked on this effort with you in order to succeed, to bring about a historic reconciliation between Israelis and Palestinians that ends the conflict once and for all. I want to welcome you once again to Jerusalem. I want to promise all of those who are seeing us now that this will not be our last long meeting.

SECRETARY KERRY: No. (Laughter.) Not by any means.

Mr. Prime Minister, my friend Bibi, thank you very much for one of your generous welcomes here again. I’m very appreciative, very happy to be back here in Israel, and only sorry that it’s a short time and a short visit. I thank you for your generous hospitality and I pick up on your comments that the road ahead is not easy. If it were easy, peace would have been achieved a long time ago. But what is clearer than ever today is that this is a road worth traveling. And so I’m delighted to have spent a good period of time – (clears throat) – excuse me, folks, the benefits of a lot of travel. (Laughter.)

I’m really happy to have spent a serious amount of time with the Prime Minister this afternoon talking in some depth about the challenges of the particular road that we are on. This is a follow-up to a very productive meeting that I had in London last week with President Abbas, so I am talking to both presidents directly as we agreed --

PRIME MINISTER NETANYAHU: Don’t elevate me to the role of president.

SECRETARY KERRY: President – Prime Minister and President, I apologize.

PRIME MINISTER NETANYAHU: I can’t reach those heights --

SECRETARY KERRY: (Laughter.) Both leaders.

PRIME MINISTER NETANYAHU: -- and I respect Mr. Peres greatly and --

SECRETARY KERRY: I am talking to both leaders directly. And everybody, I think, understands the goal that we are working for. It is two states living side by side in peace and in security. Two states because there are two proud peoples, both of whom deserve to fulfill their legitimate national aspirations in a homeland of their own, and two states because today, as we commemorate the 40th anniversary of the Yom Kippur War, I think everybody is reminded significantly of the costs of conflict and the price, certainly, that Israelis have paid in the quest for their security and identity.

The Prime Minister and I and all of the parties involved have agreed that we will not discuss details at any point in time. We are convinced that the best way to try to work through the difficult choices that have to be made is to do so privately with confidence that everybody will respect that process. And since I have asked for that from all the parties, I’m not going to break it now or at any other time. We will not discuss the substance of what we are working on.

I do want to comment, however, as the Prime Minister has, on the challenge of the region and what we have just been doing in the last few days of negotiations in Geneva. And that is, as the Prime Minister has said, an issue that directly affects the stability of this entire region, and ultimately, weapons of mass destruction, which are at stake in this issue, are a challenge to everybody on this planet. So this is a global issue, and that is the focus that we have tried to give it in the talks in Geneva in the last days, but we want to make sure people understand exactly what we are trying to achieve and how.

The ongoing conflict in Syria has enormous implications for all of the neighbors – the press of refugees, the fact of weapons of mass destruction having been used against the people of their own state. These are crimes against humanity, and they cannot be tolerated, and they are a threat to the capacity of the global community to be able to live by standards of rules of law and the highest standards of human behavior.

So I want people to understand the key elements of what we agreed to in Geneva. It is a framework, not a final agreement. It is a framework that must be put into effect by the United Nations now. But it is a framework that, with the Russian and U.S. agreement, it has the full ability to be able to, as the Prime Minister said, strip all of the chemical weapons from Syria. The Russians have agreed, they state, that the Assad regime has agreed to make its declaration within one week of the location and the amount of those weapons. And then we will put in place what we hope to put in place through the United Nations, what Russia and the United States agreed on, which is the most far-reaching chemical weapons removal effort well beyond the CWC that has been designed.

Now this will only be as effective as its implementation will be, and President Obama has made it clear that to accomplish that, the threat of force remains. The threat of force is real, and the Assad regime and all those taking part need to understand that President Obama and the United States are committed to achieve this goal. We cannot have hollow words in the conduct of international affairs because that affects all other issues, whether Iran or North Korea or any other.

The core principles with respect to the removal of these weapons and the containment of these weapons, which we want to achieve, as we said in the document, in the soonest, fastest, most effective way possible – if we achieve that, we will have set a marker for the standard of behavior with respect to Iran and with respect to North Korea and any other state, rogue state, group that decide to try to reach for these kinds of weapons.

The core principles will have the full backing of the international community through the UN Security Council. And Russia agreed that any breach of compliance, according to standards already set out in the CWC, any breach of the specifics of this agreement or any use of chemical weapons by anyone in Syria will result in immediate referral and action by the Security Council for measures under Chapter 7, which means what they select, up to and including the possibility of the use of force.

So again, I reiterate diplomacy has always been the preferred path of the President of the United States, and I think is any peace-loving nation’s preferred choice. But make no mistake, we’ve taken no options off the table. President Obama’s been absolutely clear about the remainder of the potential of use of force if there is noncompliance or refusal to take part, because the egregious use of chemical weapons by the Assad regime against innocent men, women, children, their own citizens all indiscriminately murdered in the dead of night, is unacceptable. And we have said in no uncertain terms that this should never happen again. This country understands the words, “Never again,” perhaps better than any other.

I’ve been in contact with many of my counterparts, with Foreign Secretary Hague of the United Kingdom, Foreign Minister Laurent Fabius. Their partnership on these issues has been essential. And I will see both of them tomorrow and Foreign Minister Davutoglu of Turkey in Paris, where I’ll also meet Foreign Minister Saud Faisal of Saudi Arabia in order to talk about the road ahead to achieve our goals.

Our attention and our efforts will now shift to the Organization of the Prohibition of Chemical Weapons and the UN Security Council, and the international community expects the Assad regime to live up to its commitments, and we expect Russia to join with us in holding them accountable.

I also want to make clear this effort is not just about securing chemical weapons in Syria. We are not just standing up for a redline that the world drew some 100 years ago, and which is worth standing up for. Our focus now must remain on ending the violence, ending the indiscriminate killing, ending the creation of more and more refugees that is not only tearing Syria apart, but threatens the region itself.

As President Obama has said, and I have said many times, there is no military solution to this conflict. We don’t want to create more and more extremist elements and we don’t want to see the implosion of the state of Syria. So our overall objective is to find a political solution through diplomacy, and that needs to happen at the negotiating table, and we will stay engaged with a sense of urgency. And I say to the Syrian opposition and all those in Syria who recognize that just removing the chemical weapons doesn’t do the job, we understand that, and that is not all we are going to seek to do. But it is one step forward, and it eliminates that weapon from the arsenal of a man who has proven willing to do anything to his own people to hold onto power.

Foreign Minister Lavrov and I met with Special Envoy Brahimi yesterday. We will meet again in New York. We are committed to continue to work towards the Geneva 2. And we have made clear that our support to the opposition in an effort to get there will continue unabated.

So, Mr. Prime Minister, I know you and I are both clear-eyed about the challenges ahead. We have to summon the grit and the determination to stay at this, to make the tough decisions – tough decisions about eliminating weapons of mass destruction and tough decisions about making peace between Israel and the Palestinians. We will not lose sight of the end game. I know that from talking with the Prime Minister today. And I think both of us remain deeply committed, and we hope very much with our partners in the region, to doing our best to try to make this journey towards peace get to its destination.

Thank you, Mr. Prime Minister.

PRIME MINISTER NETANYAHU: John, another sound bite. (Laughter.)
FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission today charged the operator of the largest hospital in Miami-Dade County with misleading investors about the extent of its deteriorating financial condition prior to an $83 million bond offering.

An SEC investigation found that the Public Health Trust, which is the governing authority for Jackson Health System, misstated present and future revenues due to breakdowns in a new billing system that inaccurately recorded revenue and patient accounts receivable.  The Public Health Trust projected a non-operating loss in the official statement accompanying the bond offering in August 2009, but reported a figure that was more than four times lower than what was ultimately reported at the end of the 2009 fiscal year.  The Public Health Trust also failed to properly account for an adverse arbitration award, and misrepresented that its financial statements were prepared according to U.S. Generally Accepted Accounting Principles (GAAP).

The Public Health Trust has agreed to settle the SEC’s charges.

“The Public Health Trust fell short in its obligation to maintain adequate accounting systems and controls that ensure truthful disclosures to investors about its financial condition,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office.  “The Public Health Trust used stale numbers to calculate its revenue figures and lacked any reasonable basis for projecting losses that were far less than reality.”

Mark Zehner, Deputy Chief of the SEC Enforcement Division’s Municipal Securities and Public Pensions Unit, added, “Investors must be able to rely on the financial information accompanying municipal bond offerings.  We will continue to scrutinize financial statements provided to investors and pursue municipal issuers who aren’t providing accurate information to the public.”

According to the SEC’s order instituting settled administrative proceedings, the official statement accompanying the bond offering represented that the Public Health Trust (PHT) projected a $56 million non-operating loss for its fiscal year ending Sept. 30, 2009.  Several months after the bonds were sold, external auditors discovered problems with the PHT’s patient accounts receivable valuation.  This discovery required a large accounting adjustment to the reported net income, and the PHT ultimately reported a non-operating loss of $244 million for fiscal year 2009 – more than four times the projection made to bond investors.

The SEC’s order found that the PHT was aware of the rising level of patient accounts receivable and declining cash-on-hand prior to the bond offering, which caused concern among trustees and executive management.  They raised questions about the accounts receivable amounts and collection rates that were used to calculate the PHT’s revenue figures.  The $56 million non-operating loss amount included in the bond offering’s official statement was generated by the budget department using stale cash collection numbers amid the known problems with the new billing system.  The budget department was not updating its collection rates in a timely fashion due to a lack of adequate communication among departments.  Therefore, the PHT lacked a reasonable basis for its loss projection, and the official statement was materially misleading.

The SEC’s order also found that the PHT failed to properly account for a December 2008 arbitration award that negatively impacted patient accounts receivable in its 2008 audited financial statements that were attached to the bond offering’s official statement.  The arbitration award required the PHT to pay a third-party receivables company $3.9 million in cash, and transfer to the company $360 million face amount of existing accounts receivable and $250 million face amount of future accounts receivable.  The PHT failed to perform an analysis to determine the value of the replacement accounts receivable awarded to the third-party company.  The analysis is required under the relevant accounting standards in order to evaluate whether to accrue an expense related to the arbitration award or disclose the arbitration award in the notes to its financial statements.  Without the proper analysis, the PHT failed to accurately account for the arbitration award in the audited financial statements.

The SEC’s order directs the PHT to cease and desist from committing or causing any violations of Sections 17(a)(2) and (3) of the Securities Act of 1933.  The PHT neither admitted nor denied the SEC’s findings.  The Commission determined not to impose a monetary penalty due to the PHT’s current financial condition.  The Commission also considered the PHT’s cooperation with the investigation and the remedial measures undertaken.

The SEC’s investigation, which is continuing, has been conducted in the Miami office by members of the Municipal Securities and Public Pensions Unit, including Brian P. Knight, Sean M. O’Neill, and Fernando Torres under the supervision of Jason R. Berkowitz.  The investigation followed an examination conducted by Paul Anderson under the supervision of Nicholas A. Monaco and the oversight of John C. Mattimore.

DEPUTY SECRETARY CARTER VISITS HERAT, AFGHANISTAN CONSULATE TWO DAYS AFTER ATTACK

Deputy Defense Secretary Ash Carter addresses service members as he surveys the damage to the U.S. Consulate in Herat, Afghanistan, Sept. 14, 2013. A day earlier, troops fought off a Taliban attack. DOD photo by Glenn Fawcett 
FROM:  U.S. DEFENSE DEPARTMENT 
Carter Visits Herat Consulate, Praises Defeat of Attackers
By Claudette Roulo
American Forces Press Service

KABUL, Afghanistan, Sept. 14, 2013 - On the second day of his trip to Afghanistan to assess the progress of the retrograde, Deputy Defense Secretary Ash Carter visited the U.S. Consulate in Herat, which was attacked yesterday morning.

Following a stop at Camp Leatherneck for a briefing by Marine Corps Maj. Gen. Lee Miller, commander of Regional Command Southwest, Miller and Carter flew to Herat aboard a V-22 Osprey.

Two Afghan police officers and a security guard were killed in a complex early morning assault that involved armed Taliban fighters and a vehicle bomb. About 20 people were injured and the consulate building was damaged, and all seven of the Taliban attackers were killed.

"Now, the individuals that attacked here yesterday did what they did because they wanted to get headlines," Carter told the U.S., Afghan and coalition forces at Herat. But they didn't get the headlines they expected, the deputy defense secretary added.

"The headline they're getting is that they were defeated," he said. "They were defeated in just a few minutes. And not only were they defeated, but there was an overwhelming and incredibly confident American, Afghan and coalition response ... ready to deal with the situation."

Carter told the troops that he and Defense Secretary Chuck Hagel were incredibly impressed with their efforts. "You should be very proud," he added.

After a brief stop at the Shindand air base, where Afghan air force pilots and aircraft maintainers are trained, Carter returned to Kabul for meetings with Afghan Defense Minister Bismullah Khan Mohammadi and Interior Minister Umar Daudzai.

RECENT FLOODING IN EASTERN RUSSIA

http://earthobservatory.nasa.gov/IOTD/view.php?id=82020&src=eoa-iotd

EXECUTIVE INDICTED IN AUTO PARTS PRICE FIXING AND BID RIGGING CASE

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, September 11, 2013

G.S. Electech Inc. Executive Indicted for Role in Bid Rigging and Price Fixing on Automobile Parts Installed in U.S. Cars

A federal grand jury in Covington, Ky., has returned an indictment against G.S. Electech Inc. executive, Shingo Okuda for his role in an international conspiracy to fix prices and rig bids of auto parts used on antilock brake systems installed in U.S. cars, the Department of Justice announced today. Today’s charge is the first to be filed in Kentucky in the department’s ongoing investigation into anticompetitive conduct in the automotive parts industry.

The indictment, filed today in the U.S. District Court for the Eastern District of Kentucky, charges Okuda, a Japanese national, with engaging in a conspiracy to rig bids for, and to fix, stabilize, and maintain the prices of speed sensor wire assemblies, which are installed in automobiles with an antilock brake system (ABS), sold to Toyota Motor Corp. and Toyota Motor Engineering and Manufacturing North America Inc. (collectively Toyota) in the United States and elsewhere.

G.S. Electech Inc. manufactures, assembles and sells a variety of automotive electrical parts, including speed sensor wire assemblies. The speed sensor wire assemblies connect a sensor on each wheel to the ABS to instruct it when to engage.

According to the charge, Okuda and his co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and discussions to coordinate bids and fix prices of automotive parts submitted to Toyota. According to the charge, Okuda’s involvement in the conspiracy lasted from at least as early as January 2003 until at least February 2010.

“ Today’s indictment marks the 16th executive to be charged in the Antitrust Division’s continuing investigation of price fixing in the auto parts industry,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “Holding individuals accountable for their actions is the surest way to deter executives from choosing to collude rather than to compete for business.”
         
“Those who engage in price fixing, bid rigging and other fraudulent schemes harm the automotive industry by driving up costs for vehicle makers and buyers,” said John Robert Shoup, Acting Special Agent in Charge, FBI Detroit Division.  “The FBI is committed to pursuing and prosecuting these individuals for their crimes.”
                     
Okuda is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence for individuals of 10 years in prison and a criminal fine of $1 million. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Including Okuda, 11 companies and 16 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry. To date, more than $874 million in criminal fines have been imposed and 14 individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each. One other executive has agreed to serve time in prison and is scheduled to be sentenced on Sept. 25, 2013.

In May 2012, G.S. Electech Inc. pleaded guilty and was sentenced to pay a $2.75 million criminal fine for its role in the conspiracy related to speed sensor wire assemblies.

Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s National Criminal Enforcement Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit.

HHS CLAIMS AFFORDABLE CARE ACT SAVES CONSUMERS $1.2 BILLION

FROM:  U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 
Health care law saves consumers $1.2 billion nationwide

A new report released today by the Department of Health and Human Services (HHS) shows that 6.8 million consumers saved an estimated $1.2 billion on health insurance premiums in 2012, due to the “rate review” provision of the Affordable Care Act, which brought unprecedented accountability to slow the growth of health insurance premiums.  The Affordable Care Act, along with state efforts, continues to bring scrutiny to proposed health insurance rate increases and is saving consumers real money as a result.

“Thanks to the health care law, we are seeing that holding insurance companies accountable is leading to increased competition and saving billions of dollars for consumers across the country,” said Kathleen Sebelius, Secretary of HHS. “This type of competition and transparency will continue in the Health Insurance Marketplace, or Exchanges, where Americans will be able to shop for and compare plans side-by-side to find the one that fits their needs and budget.”

Beginning on Sept. 1, 2011, the federal rate review rules under the health care law were implemented. These rules ensure that, in every state, insurance companies are required to submit for review and justify any proposed health insurance premium increase of 10 percent or more.

To assist states in this effort, the Affordable Care Act provides states with Health Insurance Rate Review Grants to enhance their rate review programs and bring greater transparency to the process.  Forty-six states, the District of Columbia, and five territories have been awarded rate review grant funds to make the rate review process stronger and more transparent.

These provisions have put an end to the days when insurance companies could raise health insurance premiums by double digit percentages with little oversight.  Because of rate review, the report released today shows that consumers have saved approximately $1.2 billion over the past year in the individual and small group markets.

This initiative is one of many in the health care law aimed at saving money for consumers and specifically works in conjunction with the 80/20 rule, which requires insurance companies to spend at least 80 percent of premiums on health care or provide rebates to their customers, instead of overhead, administrative expenses. Thanks to the 80/20 rule, last year 77.8 million consumers saved an estimated $3.4 billion up front on their premiums as insurance companies operated more efficiently.  Insurance companies that did not meet the 80/20 rule provided nearly 8.5 million Americans with $500 million in rebates.

Search This Blog

Translate

White House.gov Press Office Feed