FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today charged a former executive at Qualcomm Inc. and his former financial advisor with insider trading ahead of major announcements by the San Diego-based wireless technology company for more than a quarter-million dollars in profits.
The SEC alleges that Jing Wang, a former executive vice president and president of global business operations at Qualcomm, used a secret offshore brokerage account to make illegal trades based on confidential information that he learned on the job. Gary Yin, a former registered representative at Merrill Lynch, helped Wang set up the account. Yin also created a secret offshore account of his own and traded on the non-public information gleaned from Wang. When Wang eventually realized that insider trading in the offshore accounts still may be discovered by the SEC or other regulators, he concocted a plan to conceal his trading activity by claiming the trades were made by his brother. Wang even convinced Yin to travel to China and go over the account statements with Wang’s brother so he could explain the trades if asked by investigators.
“Wang violated his duty as an insider to protect confidential information when he made timely illegal trades ahead of major announcements to the detriment of other Qualcomm shareholders who did not have the same information,” said Michele Wein Layne, Director of the SEC’s Los Angeles Regional Office. “Wang and Yin went to extraordinary lengths to conceal their trading and cover it up afterwards, but despite their expansive efforts they still wound up in law enforcement’s crosshairs.”
In a parallel action, the U.S. Attorney’s Office for the Southern District of California today announced criminal charges against Wang and Yin.
According to the SEC’s complaint, Wang and Yin became friends in 2005 as members of the same church. When Wang learned that Yin was a financial advisor at Merrill Lynch, he asked Yin to manage his money and opened a number of brokerage accounts at the firm’s San Diego branch office. Each account was disclosed to Qualcomm because, as a company officer, Wang was restricted in his ability to trade Qualcomm stock and required to pre-clear all Qualcomm trades with the company.
The SEC alleges that in early 2006, Wang approached Yin about hiding cash transactions. Yin suggested that Wang create an entity registered in the British Virgin Islands (BVI) and use the name of a non-U.S. citizen family member as the beneficial owner. Then he could open a brokerage account in the newly created entity’s name. Yin then helped Wang set up a secret account in the name of a BVI company called Unicorn Global Enterprises, and Wang’s older brother was listed as the owner. Yin similarly created his own BVI-registered entity named Pacific Rim and put it in his mother-in-law’s name. Yin opened a Merrill Lynch brokerage account for Pacific Rim and used it to hide funds that he was using for investments.
The SEC alleges that Wang and Yin used their secret offshore accounts to trade on material, non-public information that Wang learned as an executive at Qualcomm. In early 2010, Wang was aware that Qualcomm executives were planning a board proposal to increase Qualcomm’s quarterly dividends and request authority to initiate a stock repurchase program. Qualcomm informed Wang and all executives that they would not be permitted to trade Qualcomm stock. On March 1, Wang attended a Qualcomm board meeting where the quarterly dividend increase and stock repurchase were approved. Wang immediately instructed Yin to use all of the funds in the offshore Unicorn account to purchase Qualcomm stock. Yin knew that Wang did not pre-clear these trades and realized that the purchase was out of character for Wang because he previously never purchased Qualcomm stock on the open market in his Merrill Lynch accounts. Within the hour of executing the trades for Wang, Yin himself bought Qualcomm stock on the basis of the material, non-public information. The stock price increased 6.7 percent after Qualcomm publicly announced the quarterly cash dividend and stock repurchase program. Wang and Yin profited when they sold all of their shares.
According to the SEC’s complaint, Wang used the funds from that sale to conduct insider trading again – this time in the shares of San Jose-based Atheros Communications, which was the highly confidential target of a planned acquisition by Qualcomm. Wang was regularly briefed on the transaction internally tabbed as “Project Tango” to protect its confidentiality. Wang instructed Yin to sell all of his Qualcomm stock in the Unicorn account on Dec. 2, 2010, and prepare to buy as many shares of Atheros stock as possible with the funds in that account. He told Yin that he was leaving on a trip to China and would contact him to execute the Atheros trade. On December 6, Wang attended a Qualcomm board meeting in Hong Kong and a resolution was passed to pursue the acquisition. Wang learned that Qualcomm planned to acquire Atheros at $45 per share. Wang and Yin immediately communicated several times through phone calls and a text message, and Wang then purchased the maximum number of shares he could purchase with the existing funds in the Unicorn account at prices between $34 and $35 per share. At Wang’s encouragement, Yin also purchased Atheros stock for himself in his offshore account. When the news became public in early January, Atheros stock increased more than 20 percent. Yin sold all of his Atheros shares in the Pacific Rim account on January 12, and Wang sold his Atheros shares in the Unicorn account on January 25.
According to the SEC’s complaint, Wang took his next insider trading step merely four minutes after selling the Atheros stock, using the proceeds to purchase Qualcomm shares in advance of a company announcement that it would raise its revenue and earnings guidance for the 2011 fiscal year. Wang had learned the confidential information prior to the board meeting he attended in Hong Kong, where Qualcomm’s better-than-expected first quarter financial performance was further discussed. Wang learned that Qualcomm planned to announce its earnings results on January 26, and thus purchased his Qualcomm shares the day before the announcement. After Qualcomm issued a press release to announcing its positive first quarter results, Qualcomm’s stock increased 5.9 percent.
The SEC alleges that Wang made more than $244,000 in illegal profits through the insider trading scheme, and Yin realized gains of more than $27,000. Wang eventually realized that his illegal trading may be detected by Merrill Lynch or others. Wang first asked Yin to delete records of the trades in the Unicorn account, but because they were permanent records in Merrill Lynch’s systems they could not be erased. Around January 2012, Wang directed Yin to establish a new BVI corporation named Clearview Resources and open a new account at Merrill Lynch to which they transferred the insider trading proceeds in the Unicorn account to further distance Wang from the suspicious trades. A few months later, Wang informed Yin that the trades may have been detected because the SEC had subpoenaed his e-mails. So Wang devised a cover story and convinced Yin if ever questioned to say that the Atheros trades were made by Wang’s brother. Because Yin had never communicated with Wang’s brother, Wang instructed him to travel to China with the Unicorn account statements and review the trades with his brother so he could explain the trading if asked. Yin did so in May 2012. To further hide Wang’s ownership of the Unicorn account and his link to the Atheros trades, Yin removed the Unicorn account from Wang’s “household” in Merrill Lynch’s computer system in July 2012. “Householding” is a function used by Merrill Lynch to link related accounts.
The SEC's complaint charges Wang, who lives in Del Mar, Calif., with violating Sections 10(b) and 16(a) of the Securities Exchange Act of 1934 and Rules 10b-5 and 16a-3. Yin, who lives in San Diego, is charged with violating Section 10(b) of the Exchange Act and Rule 10b-5. The SEC’s complaint seeks disgorgement of ill-gotten gains plus prejudgment interest, financial penalties, and permanent injunctions. The SEC also seeks an officer-and-director bar against Wang.
The SEC’s investigation has been conducted by Ann C. Kim, Wendy E. Pearson, Nina Yamamoto, and Finola H. Manvelian of the Los Angeles Regional Office. The SEC’s litigation will be led by Sam Puathasnanon. The SEC appreciates the assistance of the Department of Justice’s Criminal Division, the U.S. Attorney’s Office for the Southern District of California, and the Federal Bureau of Investigation.
Friday, September 27, 2013
SPANNING HALF A MILLION LIGHT YEARS
FROM: NASA
Clues to the Growth of the Colossus in Coma
A team of astronomers has discovered enormous arms of hot gas in the Coma cluster of galaxies by using NASA’s Chandra X-ray Observatory and ESA’s XMM-Newton. These features, which span at least half a million light years, provide insight into how the Coma cluster has grown through mergers of smaller groups and clusters of galaxies to become one of the largest structures in the universe held together by gravity.
A new composite image, with Chandra data in pink and optical data from the Sloan Digital Sky Survey appearing in white and blue, features these spectacular arms. In this image, the Chandra data have been processed so extra detail can be seen.
The X-ray emission is from multimillion-degree gas and the optical data shows galaxies in the Coma Cluster, which contain only about one-sixth the mass in hot gas. Only the brightest X-ray emission is shown here, to emphasize the arms, but the hot gas is present over the entire field of view.
Researchers think that these arms were most likely formed when smaller galaxy clusters had their gas stripped away by the head wind created by the motion of the cluster through the hot gas, in much the same way that the headwind created by a roller coaster blows the hats off riders.
Coma is an unusual galaxy cluster because it contains not one, but two giant elliptical galaxies near its center. These two giant elliptical galaxies are probably the vestiges from each of the two largest clusters that merged with Coma in the past. The researchers also uncovered other signs of past collisions and mergers in the data.
From their length, and the speed of sound in the hot gas (about four million km/hr), the newly discovered X-ray arms are estimated to be about 300 million years old, and they appear to have a rather smooth shape. This gives researchers some clues about the conditions of the hot gas in Coma. Most theoretical models expect that mergers between clusters like those in Coma will produce strong turbulence, like ocean water that has been churned by many passing ships. Instead, the smooth shape of these lengthy arms points to a rather calm setting for the hot gas in the Coma cluster, even after many mergers.
Large-scale magnetic fields are likely responsible for the small amount of turbulence that is present in Coma. Estimating the amount of turbulence in a galaxy cluster has been a challenging problem for astrophysicists. Researchers have found a range of answers, some of them conflicting, and so observations of other clusters are needed.
Two of the arms appear to be connected to a group of galaxies located about two million light years from the center of Coma. One or both of these arms connects to a larger structure seen in the XMM-Newton data, and spans a distance or at least 1.5 million light years. A very thin tail also appears behind one of the galaxies in Coma. This is probably evidence of gas being stripped from a single galaxy, in addition to the groups or clusters that have merged there.
These new results on the Coma cluster, which incorporate over six days worth of Chandra observing time, will appear in the September 20, 2013, issue of the journal Science. The first author of the paper is Jeremy Sanders from the Max Planck Institute for Extraterrestrial Physics in Garching, Germany. The co-authors are Andy Fabian from Cambridge University in the UK; Eugene Churazov from the Max Planck Institute for Astrophysics in Garching, Germany; Alexander Schekochihin from University of Oxford in the UK; Aurora Simionescu from Stanford University in Stanford, CA; Stephen Walker from Cambridge University in the UK and Norbert Werner from Stanford University in Stanford, CA.
NASA's Marshall Space Flight Center in Huntsville, Ala., manages the Chandra Program for NASA's Science Mission Directorate in Washington. The Smithsonian Astrophysical Observatory controls Chandra's science and flight operations from Cambridge, Mass.
Credits: X-ray: NASA/CXC/MPE/J. Sanders et al; Optical: SDSS
Thursday, September 26, 2013
DOD SAYS RECRUITING GOALS BENG MET
FROM: U.S. DEFENSE DEPARTMENT
Active Services Meet Fiscal Year Recruiting Goals Through August
American Forces Press Service
WASHINGTON, Sept. 26, 2013 - All four active services met or exceeded their numerical accession goals for fiscal year 2013 through August, Pentagon officials announced yesterday.
Here are the numbers for the first 11 months of the fiscal year:
-- Army: 62,453 accessions, 101 percent of its goal of 61,620;
-- Navy: 36,565 accessions, 100 percent of its goal of 36,565;
-- Marine Corps: 28,128 accessions, 100 percent of its goal of 28,085; and
-- Air Force: 24,335 accessions, 100 percent of its goal of 24,335.
The Army, Air Force, and Marine Corps exhibited strong retention, officials said. The Navy's retention numbers were strong in the mid-career and career categories, they added, and its achievement of 85 percent retention in the initial category is a result of reduced accessions from four to six years ago.
Five of the six reserve components met or exceeded their numerical fiscal year accession goals through August. The Army Reserve remains 3,206 accessions short of its fiscal goal.
Here are the reserve component numbers:
-- Army National Guard: 45,539 accessions, 101 percent of its goal of 45,047;
-- Army Reserve: 24,114 accessions, 88 percent of its goal of 27,320;
-- Navy Reserve: 5,296 accessions, 101 percent of its goal of 5,241;
-- Marine Corps Reserve: 8,778 accessions, 100 percent of its goal of 8,744;
-- Air National Guard: 9,465 accessions, 100 percent of its goal of 9,465; and
-- Air Force Reserve: 7,040 accessions, 126 percent of its goal of 5,593.
All reserve components have met their attrition goals, and current trends are expected to continue, officials said, adding that this indicator lags behind accessions by a month due to data availability.
SECRETARY OF STATE KERRY'S REMARK'S AFTER P-5+1 MINISTERIAL ON IRAN
FROM: U.S. STATE DEPARTMENT
Remarks After the P-5+1 Ministerial on Iran
Remarks
John Kerry
Secretary of State
New York City
September 26, 2013
SECRETARY KERRY: First of all, I think you’ve heard some of the other ministers. We had a constructive meeting, and I think all of us were pleased that Foreign Minister Zarif came and made a presentation to us, which was very different in tone and very different in the vision that he held out with respect to possibilities of the future.
I have just met with him now on a side meeting, which we took a moment to explore a little further the possibilities of how to proceed based on what President Obama laid out in his speech to the General Assembly earlier this week. And so we’ve agreed to try to continue a process that we’ll try to make concrete, to find a way to answer the questions that people have about Iran’s nuclear program.
Needless to say, one meeting and a change in tone, which was welcome, doesn’t answer those questions yet, and there’s a lot of work to be done. So we will engage in that work, obviously, and we hope very, very much – all of us – that we can get concrete results that will answer the outstanding questions regarding the program. But I think all of us were pleased that the Foreign Minister came today, that he did put some possibilities on the table. Now it’s up to people to do the hard work of trying to fill out what those possibilities could do.
Finally, let me just say that prior to this meeting, I was pleased to have a meeting with Foreign Minister Sergey Lavrov, and we did reach agreement with respect to the resolution. We’re now doing the final work of pulling that language together, but it’s our hope that that process between the Organization for the Prevention of Chemical Weapons and the United Nations and its resolution can now move forward and give life, hopefully, to the removal and destruction of chemical weapons from Syria.
Thank you all very, very much.
Remarks After the P-5+1 Ministerial on Iran
Remarks
John Kerry
Secretary of State
New York City
September 26, 2013
SECRETARY KERRY: First of all, I think you’ve heard some of the other ministers. We had a constructive meeting, and I think all of us were pleased that Foreign Minister Zarif came and made a presentation to us, which was very different in tone and very different in the vision that he held out with respect to possibilities of the future.
I have just met with him now on a side meeting, which we took a moment to explore a little further the possibilities of how to proceed based on what President Obama laid out in his speech to the General Assembly earlier this week. And so we’ve agreed to try to continue a process that we’ll try to make concrete, to find a way to answer the questions that people have about Iran’s nuclear program.
Needless to say, one meeting and a change in tone, which was welcome, doesn’t answer those questions yet, and there’s a lot of work to be done. So we will engage in that work, obviously, and we hope very, very much – all of us – that we can get concrete results that will answer the outstanding questions regarding the program. But I think all of us were pleased that the Foreign Minister came today, that he did put some possibilities on the table. Now it’s up to people to do the hard work of trying to fill out what those possibilities could do.
Finally, let me just say that prior to this meeting, I was pleased to have a meeting with Foreign Minister Sergey Lavrov, and we did reach agreement with respect to the resolution. We’re now doing the final work of pulling that language together, but it’s our hope that that process between the Organization for the Prevention of Chemical Weapons and the United Nations and its resolution can now move forward and give life, hopefully, to the removal and destruction of chemical weapons from Syria.
Thank you all very, very much.
SECURITY PROCEDURES BEING REVIEWED WORLDWIDE AFTER NAVY YARD SHOOTING
FROM: U.S. DEFENSE DEPARTMENT
Carter Details Security Reviews in Navy Yard Aftermath
By Karen Parrish
American Forces Press Service
WASHINGTON, Sept. 25, 2013 - The Pentagon and the Navy are reviewing security procedures worldwide in the wake of last week's tragic shootings at the Washington Navy Yard, Deputy Defense Secretary Ash Carter said today, with the aim of enhancing prevention of and response to any future such incidents.
Carter offered his sympathies to everyone affected "by this deplorable act of violence."
"The Department of Defense is a family. And when a family member's taken from us, it affects us all," he said in a briefing to Pentagon reporters. "So to those who are grieving, on behalf of the entire department family, please know that our thoughts and our prayers and our strength are with you."
The deputy secretary said the department is "determined to learn from this tragedy and to take decisive action to prevent such a tragedy from happening again."
Carter continued, "The bottom line is, we need to know how an employee was able to bring a weapon and ammunition onto a DOD installation, and how warning flags were either missed, ignored, or not addressed in a timely manner."
The deputy secretary briefed reporters on the two reviews, along with a third examination that will be conducted by an independent panel. Carter said former assistant secretary of defense for homeland security Paul N. Stockton and former commander of U.S. Special Operations Command, retired Navy Adm. Eric T. Olson, have agreed to lead the independent review.
Together, Carter said, the efforts will analyze physical security measures at U.S. military installations, security clearance processing procedures and emergency response plans.
Navy Secretary Ray Mabus has approved two recommendations tightening security management within Navy chains of command. Carter noted the Navy, DOD and independent reviews will all feed into a larger, White-House-led look at physical security and emergency response across government.
"We want to look at the whole system and the whole family of incidents that occur," Carter said.
Defense Secretary Chuck Hagel ordered the three department reviews, Carter said.
Hagel's "guidance was clear," Carter said. "The independent panel is to arrive at its own conclusions and make its own recommendations."
Stockton and Olson are uniquely suited to identifying security shortcomings, Carter said. Stockton, he said, brings knowledge from his work leading the department's internal review and response to the Fort Hood shootings in 2009. And, Carter said, Olson's "deep knowledge of special operations and intelligence communities, [and] his personal experience evaluating and developing physical security plans, will all be invaluable."
Together, the efforts are intended to be comprehensive, complementary and mutually reinforcing, Carter said. The department's internal review will be led by Mike Vickers, undersecretary of defense for intelligence, Carter said.
The department's synthesized findings will be in Hagel's hands by Dec. 20, Carter said. Then at Hagel's direction, he added, "the department will take appropriate actions after carefully considering all of the recommendations put forward."
In examining security clearance procedures, the department's internal review will seek to point out "what steps we can take to tighten the standards and procedures for granting and renewing security clearances for DOD employees and contract personnel," Carter said.
Millions of Americans in this and other departments hold clearances, he said, and overall government-wide handling of security clearances will be one focus of the White House's study.
"There are many contractors who are central to the accomplishment of the mission of this department," Carter said. "And they, like our government employees, both civilian and military, all three of those populations contribute to the defense mission, and they're all part of the review."
Carter echoed Hagel's remarks last week: "Where there are gaps, we'll close them. Where there are inadequacies, we will address them. And where there are failures, we will correct them. That process is underway. We owe nothing less to the victims, their families, and every member of the Department of Defense community."
In response to a question, Carter noted that the alleged shooter's previous record of firearms incidents was "something that jumped out at me" in reports following last week's incident in which a Navy contractor shot dead 12 civilians working at the Washington Navy Yard.
Carter said he and Hagel are concerned at the existence of such "evidence that there was behavior well before the Washington Navy Yard incident, which had it been spotted and understood to be indicative of this possibility might have led to an intervention that would have prevented [the shootings]."
Carter added, "That's exactly the kind of thing that we need to look at in the review -- exactly."
Carter Details Security Reviews in Navy Yard Aftermath
By Karen Parrish
American Forces Press Service
WASHINGTON, Sept. 25, 2013 - The Pentagon and the Navy are reviewing security procedures worldwide in the wake of last week's tragic shootings at the Washington Navy Yard, Deputy Defense Secretary Ash Carter said today, with the aim of enhancing prevention of and response to any future such incidents.
Carter offered his sympathies to everyone affected "by this deplorable act of violence."
"The Department of Defense is a family. And when a family member's taken from us, it affects us all," he said in a briefing to Pentagon reporters. "So to those who are grieving, on behalf of the entire department family, please know that our thoughts and our prayers and our strength are with you."
The deputy secretary said the department is "determined to learn from this tragedy and to take decisive action to prevent such a tragedy from happening again."
Carter continued, "The bottom line is, we need to know how an employee was able to bring a weapon and ammunition onto a DOD installation, and how warning flags were either missed, ignored, or not addressed in a timely manner."
The deputy secretary briefed reporters on the two reviews, along with a third examination that will be conducted by an independent panel. Carter said former assistant secretary of defense for homeland security Paul N. Stockton and former commander of U.S. Special Operations Command, retired Navy Adm. Eric T. Olson, have agreed to lead the independent review.
Together, Carter said, the efforts will analyze physical security measures at U.S. military installations, security clearance processing procedures and emergency response plans.
Navy Secretary Ray Mabus has approved two recommendations tightening security management within Navy chains of command. Carter noted the Navy, DOD and independent reviews will all feed into a larger, White-House-led look at physical security and emergency response across government.
"We want to look at the whole system and the whole family of incidents that occur," Carter said.
Defense Secretary Chuck Hagel ordered the three department reviews, Carter said.
Hagel's "guidance was clear," Carter said. "The independent panel is to arrive at its own conclusions and make its own recommendations."
Stockton and Olson are uniquely suited to identifying security shortcomings, Carter said. Stockton, he said, brings knowledge from his work leading the department's internal review and response to the Fort Hood shootings in 2009. And, Carter said, Olson's "deep knowledge of special operations and intelligence communities, [and] his personal experience evaluating and developing physical security plans, will all be invaluable."
Together, the efforts are intended to be comprehensive, complementary and mutually reinforcing, Carter said. The department's internal review will be led by Mike Vickers, undersecretary of defense for intelligence, Carter said.
The department's synthesized findings will be in Hagel's hands by Dec. 20, Carter said. Then at Hagel's direction, he added, "the department will take appropriate actions after carefully considering all of the recommendations put forward."
In examining security clearance procedures, the department's internal review will seek to point out "what steps we can take to tighten the standards and procedures for granting and renewing security clearances for DOD employees and contract personnel," Carter said.
Millions of Americans in this and other departments hold clearances, he said, and overall government-wide handling of security clearances will be one focus of the White House's study.
"There are many contractors who are central to the accomplishment of the mission of this department," Carter said. "And they, like our government employees, both civilian and military, all three of those populations contribute to the defense mission, and they're all part of the review."
Carter echoed Hagel's remarks last week: "Where there are gaps, we'll close them. Where there are inadequacies, we will address them. And where there are failures, we will correct them. That process is underway. We owe nothing less to the victims, their families, and every member of the Department of Defense community."
In response to a question, Carter noted that the alleged shooter's previous record of firearms incidents was "something that jumped out at me" in reports following last week's incident in which a Navy contractor shot dead 12 civilians working at the Washington Navy Yard.
Carter said he and Hagel are concerned at the existence of such "evidence that there was behavior well before the Washington Navy Yard incident, which had it been spotted and understood to be indicative of this possibility might have led to an intervention that would have prevented [the shootings]."
Carter added, "That's exactly the kind of thing that we need to look at in the review -- exactly."
HHS SAYS NEW HEALTH INSURANCE MARKET PLACE TO HAVE LOWER THAN EXPECTED PREMIUMS
FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Significant choice and lower than expected premiums available in the new Health Insurance Marketplace
A new report released by the Department of Health and Human Services (HHS) finds that in state after state, consumers will see increased competition in the Health Insurance Marketplace, leading to new and affordable choices for consumers. According to the report, consumers will be able to choose from an average of 53 health plans in the Marketplace, and the vast majority of consumers will have a choice of at least two different health insurance companies - usually more. Premiums nationwide will also be around 16 percent lower than originally expected – with about 95 percent of eligible uninsured live in states with lower than expected premiums – before taking into account financial assistance.
“We are excited to see that rates in the Marketplace are even lower than originally projected,” said Secretary Sebelius. “In the past, consumers were too often denied or priced-out of quality health insurance options, but thanks to the Affordable Care Act consumers will be able to choose from a number of new coverage options at a price that is affordable.”
In less than a week, the new Marketplace will be open for business where millions of Americans can shop for and purchase health insurance coverage in one place. Consumers will be able to find out whether they qualify for premium assistance and compare plans side-by-side based on pricing, quality and benefits. No one can be denied coverage because of a preexisting condition. October 1 marks the beginning of a six-month long open enrollment period that runs through March 2014. Coverage begins as early as January 1, or in as little as 100 days from today.
Today’s report finds that individuals in the 36 states where HHS will fully or partly run the Marketplace will have an average of 53 qualified health plan choices. Plans in the Marketplace will be categorized as either “gold,” “silver,” or “bronze,” depending on the share of costs covered. Young adults will also have the option of purchasing a “catastrophic” plan, increasing their number of choices to 57 on average. About 95 percent of consumers will have a choice of two or more health insurance issuers, often many more. About 1 in 4 of these insurance companies is offering health plans in the individual market for the first time in 2014, a sign of healthy competition.
The report also gives an overview of pricing and the number of coverage options across the nation. It finds that the average premium nationally for the second lowest cost silver plan will be $328 before tax credits, or 16 percent below projections based off of Congressional Budget Office estimates. About 95 percent of uninsured people eligible for the Marketplace live in a state where their average premium is lower than projections. And states with the lowest premiums have more than twice the number of insurance companies offering plans than states with the highest premiums.
Premium and plan options are broken down by state where information is available. For example, the report shows that a 27-year old living in Dallas who makes $25,000 per year will pay $74 per month for the lowest cost bronze plan and $139 per month for the lowest cost silver plan, taking into account tax credits. And he or she will be able to choose from among 43 qualified health plans. For a family of four in Dallas with an income of $50,000 per year, the lowest bronze plan would cost only $26 per month, taking into account tax credits. The majority (around 6 out of 10) of the people uninsured today will be able to find coverage for $100 or less per month in the Marketplace, taking into account premium tax credits and Medicaid coverage.
Consumers can get help finding Marketplace coverage through a number of different resources. They can get more information through HealthCare.gov, or cuidadodesalud.gov. Consumers can participate in online web chats or call 1-800-318-2596 toll free (TTY: 1-855-889-4325) to speak with trained customer service representatives, with translation services available in 150 languages. Community health centers, Navigators and other assisters are available in local communities to provide in-person help with coverage choices. Local libraries will help consumers learn about their options and hundreds of Champions for Coverage, which are public and private organizations all across the country, are helping people learn about their options and enroll in affordable coverage.
Significant choice and lower than expected premiums available in the new Health Insurance Marketplace
A new report released by the Department of Health and Human Services (HHS) finds that in state after state, consumers will see increased competition in the Health Insurance Marketplace, leading to new and affordable choices for consumers. According to the report, consumers will be able to choose from an average of 53 health plans in the Marketplace, and the vast majority of consumers will have a choice of at least two different health insurance companies - usually more. Premiums nationwide will also be around 16 percent lower than originally expected – with about 95 percent of eligible uninsured live in states with lower than expected premiums – before taking into account financial assistance.
“We are excited to see that rates in the Marketplace are even lower than originally projected,” said Secretary Sebelius. “In the past, consumers were too often denied or priced-out of quality health insurance options, but thanks to the Affordable Care Act consumers will be able to choose from a number of new coverage options at a price that is affordable.”
In less than a week, the new Marketplace will be open for business where millions of Americans can shop for and purchase health insurance coverage in one place. Consumers will be able to find out whether they qualify for premium assistance and compare plans side-by-side based on pricing, quality and benefits. No one can be denied coverage because of a preexisting condition. October 1 marks the beginning of a six-month long open enrollment period that runs through March 2014. Coverage begins as early as January 1, or in as little as 100 days from today.
Today’s report finds that individuals in the 36 states where HHS will fully or partly run the Marketplace will have an average of 53 qualified health plan choices. Plans in the Marketplace will be categorized as either “gold,” “silver,” or “bronze,” depending on the share of costs covered. Young adults will also have the option of purchasing a “catastrophic” plan, increasing their number of choices to 57 on average. About 95 percent of consumers will have a choice of two or more health insurance issuers, often many more. About 1 in 4 of these insurance companies is offering health plans in the individual market for the first time in 2014, a sign of healthy competition.
The report also gives an overview of pricing and the number of coverage options across the nation. It finds that the average premium nationally for the second lowest cost silver plan will be $328 before tax credits, or 16 percent below projections based off of Congressional Budget Office estimates. About 95 percent of uninsured people eligible for the Marketplace live in a state where their average premium is lower than projections. And states with the lowest premiums have more than twice the number of insurance companies offering plans than states with the highest premiums.
Premium and plan options are broken down by state where information is available. For example, the report shows that a 27-year old living in Dallas who makes $25,000 per year will pay $74 per month for the lowest cost bronze plan and $139 per month for the lowest cost silver plan, taking into account tax credits. And he or she will be able to choose from among 43 qualified health plans. For a family of four in Dallas with an income of $50,000 per year, the lowest bronze plan would cost only $26 per month, taking into account tax credits. The majority (around 6 out of 10) of the people uninsured today will be able to find coverage for $100 or less per month in the Marketplace, taking into account premium tax credits and Medicaid coverage.
Consumers can get help finding Marketplace coverage through a number of different resources. They can get more information through HealthCare.gov, or cuidadodesalud.gov. Consumers can participate in online web chats or call 1-800-318-2596 toll free (TTY: 1-855-889-4325) to speak with trained customer service representatives, with translation services available in 150 languages. Community health centers, Navigators and other assisters are available in local communities to provide in-person help with coverage choices. Local libraries will help consumers learn about their options and hundreds of Champions for Coverage, which are public and private organizations all across the country, are helping people learn about their options and enroll in affordable coverage.
SECRETARY KERRY MAKES REMARKS AT MILLENNIUM DEVELOPMENT GOALS HIGH-LEVEL MEETING
FROM: U.S. STATE DEPARTMENT
Remarks at the Millennium Development Goals High-Level Meeting
John Kerry
Secretary of State
Secretary of State
United Nations
New York City
September 25, 2013
Thank you very much (inaudible), Secretary General, and (inaudible) delegates, thank you for hosting this most important (inaudible). Thank you for the leadership and the commitment to universal values that we are trying to act on as we contemplate the future.
When nearly 200 countries came together in 2000 with the goal of relieving poverty, hunger, disease, and environmental degradation that disproportionately afflicts the planet’s most vulnerable people, we set a deadline to address these global challenges by 2015. At the time, 2015 felt like the distant future. But today, we have fewer than 830 days left on the clock, and everyone here, I think, knows we have to go further and we have to go faster in order to fulfill the promise of an inclusive future that leaves no one behind. So we need to finish strong and then we need to keep building in order to get the job done.
Even as we have cut in half the number who live on about a dollar a day, we know that that half is not clearly enough. So we have to decide, all of us together, to do what this institution was founded to do – to do more. As President Obama said in his State of the Union address this year and as Secretary General Ban said so eloquently yesterday, we have the historic opportunity to rid the world of extreme poverty in the next two decades. We can put all of our countries on the path to more sustained prosperity.
How do we do that? Well, frankly, experience teaches us exactly what works and it teaches us what doesn’t work. We know that creating true opportunity for every member of society without discrimination, investing in health and education, creating the conditions for broad-based economic growth, and strengthening the core institutions of democratic and accountable governance and also getting energy that works for everybody. (Laughter and applause.) (Inaudible) a serious documentation indeed. (Laughter.)
Today, thanks to our efforts, there are far fewer children who are going to sleep hungry than there were before the Millennium Development Goals were set. But every one of us knows that’s not enough. I think one of the frustrations for all of us is this confrontation with a reality that we see every day, against hurdles that we run up against, and the difficulties of actually moving forward. There are still about 870 million undernourished people around the world, more than 100 times the population of this city of New York. So we have to decide to do more. Through programs like Feed the Future and the New Alliance for Food Security, we can actually connect farmers with better technology and with more markets to bring more meals to more tables. We can save 12 million people from poverty and 1 million children from stunting.
Thanks to programs close to my heart that I began working on in the United States Senate like PEPFAR and the Global Fund, new HIV infections have declined by a third over the last decade. And as of this year, we have saved more than a million babies from becoming infected by HIV. These are remarkable achievements. But today, more people than ever are still living with this terrible disease. Fighting global AIDS is a shared responsibility, so together we must decide to do more. All partners should support the upcoming replenishment of the Global Fund to Fight AIDS, Tuberculosis and Malaria. And that way, we can promise and deliver on an AIDS-free generation. It is within our reach right now.
All of us are also aware that violent conflict makes development more difficult, and that conflict-afflicted parts of the world remain the furthest behind on achieving the Millennium Goals. So if we’re going to open opportunity to everyone, we need to secure peace where it is needed most, and even where doing that is the hardest.
Lastly, our efforts to improve people’s lives around the world means little if we let the planet itself fall into disrepair. That is why we must strive for a development agenda that recognizes that fighting poverty, combating discrimination, and safeguarding our environment are absolutely linked together, and are not separate endeavors. Protecting people from poverty, hunger, and disease, and protecting our planet from the threats that make all of those menaces even worse – dirty water, dangerous air, disappearing resources – these are challenges to all of us, and they are combined with the challenge of country after country in which populations are 60 percent under 30, 20 – 50 percent under the age of 21, 40 percent under the age of 18. This is our challenge, and these priorities have to go hand in hand.
So as we charge down the homestretch of the Millennium Development Goals, we are already thinking about what comes next. And our post-2015 development agenda will determine how ready the global community is going to be for the challenges ahead. Everything that we try to do here, and in all of our multilateral efforts, and in each of our countries independently is linked to these goals and to what we can decide in this effort. And I urge all of us, as President Obama does, to decide the right things. Thank you. (Applause.)
When nearly 200 countries came together in 2000 with the goal of relieving poverty, hunger, disease, and environmental degradation that disproportionately afflicts the planet’s most vulnerable people, we set a deadline to address these global challenges by 2015. At the time, 2015 felt like the distant future. But today, we have fewer than 830 days left on the clock, and everyone here, I think, knows we have to go further and we have to go faster in order to fulfill the promise of an inclusive future that leaves no one behind. So we need to finish strong and then we need to keep building in order to get the job done.
Even as we have cut in half the number who live on about a dollar a day, we know that that half is not clearly enough. So we have to decide, all of us together, to do what this institution was founded to do – to do more. As President Obama said in his State of the Union address this year and as Secretary General Ban said so eloquently yesterday, we have the historic opportunity to rid the world of extreme poverty in the next two decades. We can put all of our countries on the path to more sustained prosperity.
How do we do that? Well, frankly, experience teaches us exactly what works and it teaches us what doesn’t work. We know that creating true opportunity for every member of society without discrimination, investing in health and education, creating the conditions for broad-based economic growth, and strengthening the core institutions of democratic and accountable governance and also getting energy that works for everybody. (Laughter and applause.) (Inaudible) a serious documentation indeed. (Laughter.)
Today, thanks to our efforts, there are far fewer children who are going to sleep hungry than there were before the Millennium Development Goals were set. But every one of us knows that’s not enough. I think one of the frustrations for all of us is this confrontation with a reality that we see every day, against hurdles that we run up against, and the difficulties of actually moving forward. There are still about 870 million undernourished people around the world, more than 100 times the population of this city of New York. So we have to decide to do more. Through programs like Feed the Future and the New Alliance for Food Security, we can actually connect farmers with better technology and with more markets to bring more meals to more tables. We can save 12 million people from poverty and 1 million children from stunting.
Thanks to programs close to my heart that I began working on in the United States Senate like PEPFAR and the Global Fund, new HIV infections have declined by a third over the last decade. And as of this year, we have saved more than a million babies from becoming infected by HIV. These are remarkable achievements. But today, more people than ever are still living with this terrible disease. Fighting global AIDS is a shared responsibility, so together we must decide to do more. All partners should support the upcoming replenishment of the Global Fund to Fight AIDS, Tuberculosis and Malaria. And that way, we can promise and deliver on an AIDS-free generation. It is within our reach right now.
All of us are also aware that violent conflict makes development more difficult, and that conflict-afflicted parts of the world remain the furthest behind on achieving the Millennium Goals. So if we’re going to open opportunity to everyone, we need to secure peace where it is needed most, and even where doing that is the hardest.
Lastly, our efforts to improve people’s lives around the world means little if we let the planet itself fall into disrepair. That is why we must strive for a development agenda that recognizes that fighting poverty, combating discrimination, and safeguarding our environment are absolutely linked together, and are not separate endeavors. Protecting people from poverty, hunger, and disease, and protecting our planet from the threats that make all of those menaces even worse – dirty water, dangerous air, disappearing resources – these are challenges to all of us, and they are combined with the challenge of country after country in which populations are 60 percent under 30, 20 – 50 percent under the age of 21, 40 percent under the age of 18. This is our challenge, and these priorities have to go hand in hand.
So as we charge down the homestretch of the Millennium Development Goals, we are already thinking about what comes next. And our post-2015 development agenda will determine how ready the global community is going to be for the challenges ahead. Everything that we try to do here, and in all of our multilateral efforts, and in each of our countries independently is linked to these goals and to what we can decide in this effort. And I urge all of us, as President Obama does, to decide the right things. Thank you. (Applause.)
$100 MILLION IN PENALTIES IMPOSED IN "STARS" TAX SHELTER FRAUD CASE
FROM: U.S. JUSTICE DEPARTMENT
Friday, September 20, 2013
Justice Department Prevails in “Stars” Tax Shelter Case, Court Imposes Over $100 Million in Penalties
BB&T Corporation Engaged in an Abusive Tax Shelter Designed by Barclays Bank and KPMG to Generate Nearly Half a Billion Dollars in Foreign Tax Credits.
On Friday, the Court of Federal Claims in Washington, D.C., ruled that a subsidiary of the BB&T Corporation was not entitled to $660 million in tax benefits that BB&T claimed based on its participation in an abusive tax shelter known as Structured Trust Advantaged Repackaged Securities (STARS). Judge Thomas C. Wheeler, who delivered the opinion of the Court, imposed $112 million in penalties.
Barclays Bank PLC and KPMG LLP jointly developed and marketed the STARS transaction to subvert the foreign tax credit rules and generate illicit tax benefits to be shared among the transaction’s participants. BB&T additionally employed Sidley & Austin LLP to provide tax advice supporting the transaction. After hearing evidence during a month-long trial in March, Judge Wheeler ruled for the United States “on all grounds,” determining that BB&T, Barclays, KPMG and Sidley Austin’s conduct with regard to STARS was “nothing short of reprehensible,” and that the considerable effort put into the transaction was a “waste of human potential.”
“It is an affront to all taxpayers who work hard and do the right thing when our largest corporations rely on abusive schemes to avoid paying their fair share of taxes,” said Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division, hailing the Court of Federal Claims’ opinion. “Today’s ruling sends a strong message that no matter how sophisticated the scheme, these sham tax shelters will not stand.”
Assistant Attorney General Keneally thanked the agents and attorneys at the Internal Revenue Service who assisted the Justice Department, as well as Tax Division Senior Litigation Counsel Dennis Donohue, Trial Attorneys John Schoenecker, Kari Larson, Raagnee Beri, William Farrior, and Special Attorney Allen Kline.
Friday, September 20, 2013
Justice Department Prevails in “Stars” Tax Shelter Case, Court Imposes Over $100 Million in Penalties
BB&T Corporation Engaged in an Abusive Tax Shelter Designed by Barclays Bank and KPMG to Generate Nearly Half a Billion Dollars in Foreign Tax Credits.
On Friday, the Court of Federal Claims in Washington, D.C., ruled that a subsidiary of the BB&T Corporation was not entitled to $660 million in tax benefits that BB&T claimed based on its participation in an abusive tax shelter known as Structured Trust Advantaged Repackaged Securities (STARS). Judge Thomas C. Wheeler, who delivered the opinion of the Court, imposed $112 million in penalties.
Barclays Bank PLC and KPMG LLP jointly developed and marketed the STARS transaction to subvert the foreign tax credit rules and generate illicit tax benefits to be shared among the transaction’s participants. BB&T additionally employed Sidley & Austin LLP to provide tax advice supporting the transaction. After hearing evidence during a month-long trial in March, Judge Wheeler ruled for the United States “on all grounds,” determining that BB&T, Barclays, KPMG and Sidley Austin’s conduct with regard to STARS was “nothing short of reprehensible,” and that the considerable effort put into the transaction was a “waste of human potential.”
“It is an affront to all taxpayers who work hard and do the right thing when our largest corporations rely on abusive schemes to avoid paying their fair share of taxes,” said Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division, hailing the Court of Federal Claims’ opinion. “Today’s ruling sends a strong message that no matter how sophisticated the scheme, these sham tax shelters will not stand.”
Assistant Attorney General Keneally thanked the agents and attorneys at the Internal Revenue Service who assisted the Justice Department, as well as Tax Division Senior Litigation Counsel Dennis Donohue, Trial Attorneys John Schoenecker, Kari Larson, Raagnee Beri, William Farrior, and Special Attorney Allen Kline.
SEC CHARGES FATHER AND SON IN SCHEME INVOLVING THE TERMINALLY ILL
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission charged a father and son in Lexington, S.C., with operating a fraudulent investment program designed to illegally profit from the deaths of terminally ill individuals.
The SEC alleges that Benjamin S. Staples and his son Benjamin O. Staples deceived brokerage firms and bond issuers and made at least $6.5 million in profits by lying about the ownership interest in bonds they purchased in joint brokerage accounts opened with people facing imminent death who were concerned about affording the high costs of a funeral. The Stapleses recruited the terminally ill individuals into their program by offering to pay their funeral expenses if they agreed to open the joint accounts and sign documents that relinquished their ownership rights to the accounts or any assets in them.
According to the SEC’s complaint filed in federal court in Columbia, S.C., once a joint account was opened and they had sole control, the Stapleses purchased discounted corporate bonds containing a “survivor’s option” that allowed them to redeem the bonds for the full principal amount prior to maturity if a joint owner of the bond dies. Following the death of one of their terminally ill participants, the Stapleses redeemed the bonds early by citing the survivor’s option to the brokerage firm and misrepresenting that the deceased individual had ownership rights to the bond. Their illicit profit was the difference between the discounted price of the bonds they purchased and the full principal amount they obtained when redeeming the bonds early.
“The Stapleses exploited the tragic circumstances surrounding a terminally ill diagnosis and turned the misfortune of others into a profit-making enterprise for themselves,” said Kenneth Israel, Director of the SEC’s Salt Lake Regional Office that investigated the case. “The Stapleses deceived brokerage firms and bond issuers by casting themselves as survivors of a joint ownership situation when the deceased had no legal ties to the bonds at all.”
According to the SEC’s complaint, the Stapleses operated what they called the Estate Assistance Program from early 2008 to mid-2012. They recruited at least 44 individuals into the program and purchased approximately $26.5 million in bonds from at least 35 issuers. The Stapleses required the terminally ill individuals to sign three documents: an application to open a joint brokerage account with them, an estate assistance agreement, and a participant letter. The latter two documents required the terminally ill participant to relinquish any ownership interest in the assets in the joint account, including the bonds that the Stapleses later purchased.
The SEC alleges that after a terminally ill participant died, the Stapleses wrote a letter to the brokerage firm where the joint account was held and asked that the bonds be redeemed under the survivor’s option. In their redemption request letters, the Stapleses falsely represented that the deceased participant was an “owner” of the bonds. The Stapleses did not inform the brokerage firms or bond issuers that the deceased program participants had signed the estate assistance agreements and participant letters relinquishing all ownership interest in the bonds.
The SEC’s complaint charges Ben S. Staples and Ben O. Staples with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC is seeking disgorgement of ill-gotten gains plus prejudgment interest, financial penalties, and permanent injunctions. The SEC’s complaint names a different son of Ben S. Staples – Brian Staples also of Lexington, S.C. – as a relief defendant for the purposes of recovering $400,000 in illicit profits that were transferred into his possession. Brian Staples had no active role in the scheme.
The SEC’s investigation was conducted by Tanya Beard, Justin Sutherland, and Matthew Himes of the Salt Lake Regional Office. The SEC’s litigation will be led by Thomas Melton.
The Securities and Exchange Commission charged a father and son in Lexington, S.C., with operating a fraudulent investment program designed to illegally profit from the deaths of terminally ill individuals.
The SEC alleges that Benjamin S. Staples and his son Benjamin O. Staples deceived brokerage firms and bond issuers and made at least $6.5 million in profits by lying about the ownership interest in bonds they purchased in joint brokerage accounts opened with people facing imminent death who were concerned about affording the high costs of a funeral. The Stapleses recruited the terminally ill individuals into their program by offering to pay their funeral expenses if they agreed to open the joint accounts and sign documents that relinquished their ownership rights to the accounts or any assets in them.
According to the SEC’s complaint filed in federal court in Columbia, S.C., once a joint account was opened and they had sole control, the Stapleses purchased discounted corporate bonds containing a “survivor’s option” that allowed them to redeem the bonds for the full principal amount prior to maturity if a joint owner of the bond dies. Following the death of one of their terminally ill participants, the Stapleses redeemed the bonds early by citing the survivor’s option to the brokerage firm and misrepresenting that the deceased individual had ownership rights to the bond. Their illicit profit was the difference between the discounted price of the bonds they purchased and the full principal amount they obtained when redeeming the bonds early.
“The Stapleses exploited the tragic circumstances surrounding a terminally ill diagnosis and turned the misfortune of others into a profit-making enterprise for themselves,” said Kenneth Israel, Director of the SEC’s Salt Lake Regional Office that investigated the case. “The Stapleses deceived brokerage firms and bond issuers by casting themselves as survivors of a joint ownership situation when the deceased had no legal ties to the bonds at all.”
According to the SEC’s complaint, the Stapleses operated what they called the Estate Assistance Program from early 2008 to mid-2012. They recruited at least 44 individuals into the program and purchased approximately $26.5 million in bonds from at least 35 issuers. The Stapleses required the terminally ill individuals to sign three documents: an application to open a joint brokerage account with them, an estate assistance agreement, and a participant letter. The latter two documents required the terminally ill participant to relinquish any ownership interest in the assets in the joint account, including the bonds that the Stapleses later purchased.
The SEC alleges that after a terminally ill participant died, the Stapleses wrote a letter to the brokerage firm where the joint account was held and asked that the bonds be redeemed under the survivor’s option. In their redemption request letters, the Stapleses falsely represented that the deceased participant was an “owner” of the bonds. The Stapleses did not inform the brokerage firms or bond issuers that the deceased program participants had signed the estate assistance agreements and participant letters relinquishing all ownership interest in the bonds.
The SEC’s complaint charges Ben S. Staples and Ben O. Staples with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC is seeking disgorgement of ill-gotten gains plus prejudgment interest, financial penalties, and permanent injunctions. The SEC’s complaint names a different son of Ben S. Staples – Brian Staples also of Lexington, S.C. – as a relief defendant for the purposes of recovering $400,000 in illicit profits that were transferred into his possession. Brian Staples had no active role in the scheme.
The SEC’s investigation was conducted by Tanya Beard, Justin Sutherland, and Matthew Himes of the Salt Lake Regional Office. The SEC’s litigation will be led by Thomas Melton.
ROBOT PERCEPTION
FROM: NATIONAL SCIENCE FOUNDATION
Teaching a computer to perceive the world without human input
Researcher's work could lead to assistive technology for the visually impaired, traffic modeling, and improved navigation and surveillance in robots
Humans can see an object--a chair, for example--and understand what they are seeing, even when something about it changes, such as its position. A computer, on the other hand, can't do that. It can learn to recognize a chair, but can't necessarily identify a different chair, or even the same chair if its angle changes.
"If I show a kid a chair, he will know it's a chair, and if I show him a different chair, he can still figure out that it's a chair," says Ming-Hsuan Yang, an assistant professor of electrical engineering and computer science at the University of California, Merced. "If I change the angle of the chair 45 degrees, the appearance will be different, but the kid will still be able to recognize it. But teaching a computer to see things is very difficult. They are very good at processing numbers, but not good at generalizing things."
Yang's goal is to change this. He is developing computer algorithms that he hopes will give computers, using a single camera, the ability to detect, track and recognize objects, including scenarios where the items drift, disappear, reappear or when other objects obscure them. The goal is to simulate human cognition without human input.
Most humans effortlessly can locate moving objects in a wide range of environments, since they are continually gathering information about the things they see, but it is a challenge for computers. Yang hopes the algorithms he's developing will enable computers to do the same thing, that is, continually amass information about the objects they are tracking.
"While it is not possible to enumerate all possible appearance variation of objects, it is possible to teach computers to interpolate from a wide range of training samples, thereby enabling machines to perceive the world," he says.
Currently, "for a computer, an image is composed of a long string of numbers," Yang says. "If the chair moves, the numbers for those two images will be very different. What we want to do is generalize all the examples from a large amount of data, so the computer will still be able to recognize it, even when it changes. How do we know when we have enough data? We cannot encompass all the possibilities, so we are trying to define ‘chair' in terms of its functionalities."
Potentially, computers that can "see" and track moving objects could improve assistive technology for the visually impaired, and also could have applications in medicine, such as locating and following cells; in tracking insect and animal motion; in traffic modeling for "smart" buildings, and improved navigation and surveillance in robots.
"For the visually impaired, the most important things are depth and obstacles," Yang says. "This could help them see the world around them. They don't need to see very far away, just to see whether there are obstacles near them, two or three feet away. The computer program, for example, could be in a cane. The camera would be able to create a 3-D world and give them feedback. The computer can tell them that the surface is uneven, so they will know, or sense a human or a car in front of them."
Yang is conducting his research under a National Science Foundation Faculty Early Career Development (CAREER) award, which he received in 2012. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education and the integration of education, and research within the context of the mission of their organization. He is receiving $473,797 over five years.
Yang's project also includes developing a code library of tracking algorithms and a large data set, which will become publicly available. The grant also provides for an educational component that will involve both undergraduate and graduate students, with an emphasis on encouraging underrepresented minority groups from California's Central Valley to study computer sciences and related fields. The goal is to integrate computer vision material in undergraduate courses so that students will want to continue studying in the field.
Additionally, Yang is helping several undergraduate students design vision applications for mobile phones, and trying to write programs that will enable computers to infer depth and distance, as well as to interpret the images it "sees."
"It is not clear exactly how human vision works, but one way to explain visual perception of depth is based on people's two eyes and trigonometry," he says. "By figuring out the geometry of the points, we can figure out depth. We do it all the time, without thinking. But for computers, it's still very difficult to do that.
"The Holy Grail of computer vision is to tell a story using an image or video, and have the computer understand on some level what it is seeing," he adds. "If you give an image to a kid, and ask the kid to tell a story, the kid can do it. But if you ask a computer program to do it, now it can only do a few primitive things. A kid already has the cognitive knowledge to tell a story based on the image, but the computer just sees things as is, but doesn't have any background information. We hope to give the computer some interpretation, but we aren't there yet."
-- Marlene Cimons, National Science Foundation
Investigators
Ming-Hsuan Yang
Related Institutions/Organizations
University of California - Merced
Teaching a computer to perceive the world without human input
Researcher's work could lead to assistive technology for the visually impaired, traffic modeling, and improved navigation and surveillance in robots
Humans can see an object--a chair, for example--and understand what they are seeing, even when something about it changes, such as its position. A computer, on the other hand, can't do that. It can learn to recognize a chair, but can't necessarily identify a different chair, or even the same chair if its angle changes.
"If I show a kid a chair, he will know it's a chair, and if I show him a different chair, he can still figure out that it's a chair," says Ming-Hsuan Yang, an assistant professor of electrical engineering and computer science at the University of California, Merced. "If I change the angle of the chair 45 degrees, the appearance will be different, but the kid will still be able to recognize it. But teaching a computer to see things is very difficult. They are very good at processing numbers, but not good at generalizing things."
Yang's goal is to change this. He is developing computer algorithms that he hopes will give computers, using a single camera, the ability to detect, track and recognize objects, including scenarios where the items drift, disappear, reappear or when other objects obscure them. The goal is to simulate human cognition without human input.
Most humans effortlessly can locate moving objects in a wide range of environments, since they are continually gathering information about the things they see, but it is a challenge for computers. Yang hopes the algorithms he's developing will enable computers to do the same thing, that is, continually amass information about the objects they are tracking.
"While it is not possible to enumerate all possible appearance variation of objects, it is possible to teach computers to interpolate from a wide range of training samples, thereby enabling machines to perceive the world," he says.
Currently, "for a computer, an image is composed of a long string of numbers," Yang says. "If the chair moves, the numbers for those two images will be very different. What we want to do is generalize all the examples from a large amount of data, so the computer will still be able to recognize it, even when it changes. How do we know when we have enough data? We cannot encompass all the possibilities, so we are trying to define ‘chair' in terms of its functionalities."
Potentially, computers that can "see" and track moving objects could improve assistive technology for the visually impaired, and also could have applications in medicine, such as locating and following cells; in tracking insect and animal motion; in traffic modeling for "smart" buildings, and improved navigation and surveillance in robots.
"For the visually impaired, the most important things are depth and obstacles," Yang says. "This could help them see the world around them. They don't need to see very far away, just to see whether there are obstacles near them, two or three feet away. The computer program, for example, could be in a cane. The camera would be able to create a 3-D world and give them feedback. The computer can tell them that the surface is uneven, so they will know, or sense a human or a car in front of them."
Yang is conducting his research under a National Science Foundation Faculty Early Career Development (CAREER) award, which he received in 2012. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education and the integration of education, and research within the context of the mission of their organization. He is receiving $473,797 over five years.
Yang's project also includes developing a code library of tracking algorithms and a large data set, which will become publicly available. The grant also provides for an educational component that will involve both undergraduate and graduate students, with an emphasis on encouraging underrepresented minority groups from California's Central Valley to study computer sciences and related fields. The goal is to integrate computer vision material in undergraduate courses so that students will want to continue studying in the field.
Additionally, Yang is helping several undergraduate students design vision applications for mobile phones, and trying to write programs that will enable computers to infer depth and distance, as well as to interpret the images it "sees."
"It is not clear exactly how human vision works, but one way to explain visual perception of depth is based on people's two eyes and trigonometry," he says. "By figuring out the geometry of the points, we can figure out depth. We do it all the time, without thinking. But for computers, it's still very difficult to do that.
"The Holy Grail of computer vision is to tell a story using an image or video, and have the computer understand on some level what it is seeing," he adds. "If you give an image to a kid, and ask the kid to tell a story, the kid can do it. But if you ask a computer program to do it, now it can only do a few primitive things. A kid already has the cognitive knowledge to tell a story based on the image, but the computer just sees things as is, but doesn't have any background information. We hope to give the computer some interpretation, but we aren't there yet."
-- Marlene Cimons, National Science Foundation
Investigators
Ming-Hsuan Yang
Related Institutions/Organizations
University of California - Merced
Wednesday, September 25, 2013
SECRETARY OF STATE KERRY'S REMARKS AT ARMS TRADE TREATY SIGNING
FROM: U.S. STATE DEPARTMENT
Remarks at the Arms Trade Treaty Signing Ceremony
John Kerry
Secretary of State
Secretary of State
United Nations
New York City
September 25, 2013
Good morning, everybody. Good morning, all – Mr. Under Secretary-General and Mr. Legal Counsel, I believe. And thank you very much for the privilege of being here.
On behalf of President Obama and the United States of America, I am very pleased to have signed this treaty here today. I signed it because President Obama knows that from decades of efforts that at any time that we work with – cooperatively to address the illicit trade in conventional weapons, we make the world a safer place. And this treaty is a significant step in that effort.
I want to be clear both about what this treaty is, but I also want to be clear about what it isn’t. This is about keeping weapons out of the hands of terrorists and rogue actors. This is about reducing the risk of international transfers of conventional arms that will be used to carry out the world’s worst crimes. This is about keeping Americans safe and keeping America strong. And this is about promoting international peace and global security. And this is about advancing important humanitarian goals.
I also want to be clear about what this treaty is not about. This treaty will not diminish anyone’s freedom. In fact, the treaty recognizes the freedom of both individuals and states to obtain, possess, and use arms for legitimate purposes. Make no mistake, we would never think about supporting a treaty that is inconsistent with the rights of Americans, the rights of American citizens, to be able to exercise their guaranteed rights under our constitution. This treaty reaffirms the sovereign right of each country to decide for itself, consistent with its own constitutional and legal requirements, how to deal with the conventional arms that are exclusively used within its borders.
What this treaty does is simple: It helps lift other countries up to the highest standards. It requires other countries to create and enforce the kind of strict national export controls that the United States already has in place. And I emphasize here we are talking about the kind of export controls that for decades have not diminished one iota our ability in the United States as Americans to exercise our rights under the constitution – not one iota of restriction in the last decades as we have applied our standards.
So here’s the bottom line: This treaty strengthens our security, builds global security without undermining the legitimate international trade in conventional arms which allows each country to provide for its own defense. I want to congratulate everyone who has worked hard in order to help bring this agreement into fruition, including our international partners and the civil society organizations’ commitment was absolutely vital to winning support for this treaty. The United States is proud to have worked with our international partners in order to achieve this important step towards a more peaceful – and a more peaceful world, but a world that also lives by international standards and rules.
And we believe this brings us closer to the possibilities of peace as well as a security, a higher level of a security, and the promotion and protection of human rights. That, frankly, is a trifecta for America, and that’s why we’re proud to sign this treaty today.
Thank you very much. (Applause.)
On behalf of President Obama and the United States of America, I am very pleased to have signed this treaty here today. I signed it because President Obama knows that from decades of efforts that at any time that we work with – cooperatively to address the illicit trade in conventional weapons, we make the world a safer place. And this treaty is a significant step in that effort.
I want to be clear both about what this treaty is, but I also want to be clear about what it isn’t. This is about keeping weapons out of the hands of terrorists and rogue actors. This is about reducing the risk of international transfers of conventional arms that will be used to carry out the world’s worst crimes. This is about keeping Americans safe and keeping America strong. And this is about promoting international peace and global security. And this is about advancing important humanitarian goals.
I also want to be clear about what this treaty is not about. This treaty will not diminish anyone’s freedom. In fact, the treaty recognizes the freedom of both individuals and states to obtain, possess, and use arms for legitimate purposes. Make no mistake, we would never think about supporting a treaty that is inconsistent with the rights of Americans, the rights of American citizens, to be able to exercise their guaranteed rights under our constitution. This treaty reaffirms the sovereign right of each country to decide for itself, consistent with its own constitutional and legal requirements, how to deal with the conventional arms that are exclusively used within its borders.
What this treaty does is simple: It helps lift other countries up to the highest standards. It requires other countries to create and enforce the kind of strict national export controls that the United States already has in place. And I emphasize here we are talking about the kind of export controls that for decades have not diminished one iota our ability in the United States as Americans to exercise our rights under the constitution – not one iota of restriction in the last decades as we have applied our standards.
So here’s the bottom line: This treaty strengthens our security, builds global security without undermining the legitimate international trade in conventional arms which allows each country to provide for its own defense. I want to congratulate everyone who has worked hard in order to help bring this agreement into fruition, including our international partners and the civil society organizations’ commitment was absolutely vital to winning support for this treaty. The United States is proud to have worked with our international partners in order to achieve this important step towards a more peaceful – and a more peaceful world, but a world that also lives by international standards and rules.
And we believe this brings us closer to the possibilities of peace as well as a security, a higher level of a security, and the promotion and protection of human rights. That, frankly, is a trifecta for America, and that’s why we’re proud to sign this treaty today.
Thank you very much. (Applause.)
EDUCATION DEPARTMENT AWARDS $14 MILLION FOR SPECIAL EDUCATION PARENT TECHNICAL ASSISTANCE CENTERS
FROM: U.S. DEPARTMENT OF EDUCATION
U.S. Department of Education Awards $14 Million to Special Education Parent Technical Assistance Centers
The U.S. Department of Education announced today more than $14 million in five-year grants to operate eight special education parent technical assistance centers that work to assist families of children with disability. The eight centers set to receive funding include one Center for Parent Information and Resources (CPIR); six Regional Parent Technical Assistance Centers (RPTACs); and one Native American Parent Technical Assistance Center (NAPTAC).
The centers will use the funding to improve the information they provide parents on laws, policies, and evidence-based education practices affecting children with disabilities. The centers will also use the funding to explore how data can be used to inform instruction; how to interpret results from evaluations and assessments; and ways to effectively engage in school reform activities, including how to interpret and use the data that informs those activities.
"Parents will always be their children's first and most important teachers, and can have tremendous impact on their kids’ readiness to learn at every stage of the education pipeline,” said U.S. Secretary of Education Arne Duncan. “These grants will help special education parent technical assistance centers enhance the important services they provide to families across the country."
The 98 parent center grants currently funded by the Department of Education promote the effective education of infants, toddlers, children, and youth with disabilities by strengthening the role and responsibility of parents and ensuring that families of such children have meaningful opportunities to participate in the education of their children at school and at home.
The CPIR will focus on developing and disseminating resources to parent centers to use with families and youth, helping parent centers use those resources, and supporting parent centers in collecting data annually about their services.
Each Regional PTAC will provide technical assistance that is targeted directly to the parent centers in their regions in order to meet those centers’ unique needs. They will focus on increasing parent centers’ capacity to manage their work effectively, reach more parents and youth, and help parents improve outcomes for their children.
The Native American PTAC will focus on helping parent centers provide effective and culturally appropriate services to Native American parents of children with disabilities and Native American youth with disabilities.
The following is a list of the grants the Department announced and the states within each region they will serve, including the contact information for the project directors and the amount of each 5-year award:
Center for Parent Information and Resources:
Statewide Parent Advocacy Network, Debra Jennings, debra.jennings@sannj.org, $2,950,000.
Regional Parent Technical Assistance Centers:
Region 1: CT, ME, MA, NH, NJ, NY, PA, RI, and VT – Statewide Parent Advocacy Network, Diana Autin, diana.autin@sannj.org $1,618,972.
Region 2: DE, KY, MD, NC, SC, TN, VA, DC, and WV – Exceptional Children’s Assistance Center, Connie Hawkins, chawkins@ecacmail.org $1,618,972.
Region 3: AL, AR, FL, GA, LA, MS, OK, Puerto Rico, TX, and U.S. Virgin Islands – Parent to Parent of Georgia,Stephanie Moss, stephanie@p2pga.org $1,618,972.
Region 4: IL, IN, IA, MI, MN, MO, OH, and WI – Wisconsin Family Assistance Center for Education, Training, and Support, Janis Serak, jserak@wifacets.org $1,618,972.
Region 5: AZ, CO, KS, MT, NE, ND, NM, SD, UT, and WY – PEAK Parent Center, Barbara Buswell, bbuswell@peakparent.org $1,618,972.
Region 6: AK, CA, HI, ID, NV, OR, WA, the outlying areas of the Pacific Basin, and the Freely Associated States – Matrix, A Parent Network and Resource Center, Nora Thompson, norat@matrixparents.org $1,618,972.
Native American Parent Technical Assistance Center:
Education for Parents of Indian Children with Special Needs, Alvino Sandoval, asandoval@epicsnm.org $1,618,972.
U.S. Department of Education Awards $14 Million to Special Education Parent Technical Assistance Centers
The U.S. Department of Education announced today more than $14 million in five-year grants to operate eight special education parent technical assistance centers that work to assist families of children with disability. The eight centers set to receive funding include one Center for Parent Information and Resources (CPIR); six Regional Parent Technical Assistance Centers (RPTACs); and one Native American Parent Technical Assistance Center (NAPTAC).
The centers will use the funding to improve the information they provide parents on laws, policies, and evidence-based education practices affecting children with disabilities. The centers will also use the funding to explore how data can be used to inform instruction; how to interpret results from evaluations and assessments; and ways to effectively engage in school reform activities, including how to interpret and use the data that informs those activities.
"Parents will always be their children's first and most important teachers, and can have tremendous impact on their kids’ readiness to learn at every stage of the education pipeline,” said U.S. Secretary of Education Arne Duncan. “These grants will help special education parent technical assistance centers enhance the important services they provide to families across the country."
The 98 parent center grants currently funded by the Department of Education promote the effective education of infants, toddlers, children, and youth with disabilities by strengthening the role and responsibility of parents and ensuring that families of such children have meaningful opportunities to participate in the education of their children at school and at home.
The CPIR will focus on developing and disseminating resources to parent centers to use with families and youth, helping parent centers use those resources, and supporting parent centers in collecting data annually about their services.
Each Regional PTAC will provide technical assistance that is targeted directly to the parent centers in their regions in order to meet those centers’ unique needs. They will focus on increasing parent centers’ capacity to manage their work effectively, reach more parents and youth, and help parents improve outcomes for their children.
The Native American PTAC will focus on helping parent centers provide effective and culturally appropriate services to Native American parents of children with disabilities and Native American youth with disabilities.
The following is a list of the grants the Department announced and the states within each region they will serve, including the contact information for the project directors and the amount of each 5-year award:
Center for Parent Information and Resources:
Statewide Parent Advocacy Network, Debra Jennings, debra.jennings@sannj.org, $2,950,000.
Regional Parent Technical Assistance Centers:
Region 1: CT, ME, MA, NH, NJ, NY, PA, RI, and VT – Statewide Parent Advocacy Network, Diana Autin, diana.autin@sannj.org $1,618,972.
Region 2: DE, KY, MD, NC, SC, TN, VA, DC, and WV – Exceptional Children’s Assistance Center, Connie Hawkins, chawkins@ecacmail.org $1,618,972.
Region 3: AL, AR, FL, GA, LA, MS, OK, Puerto Rico, TX, and U.S. Virgin Islands – Parent to Parent of Georgia,Stephanie Moss, stephanie@p2pga.org $1,618,972.
Region 4: IL, IN, IA, MI, MN, MO, OH, and WI – Wisconsin Family Assistance Center for Education, Training, and Support, Janis Serak, jserak@wifacets.org $1,618,972.
Region 5: AZ, CO, KS, MT, NE, ND, NM, SD, UT, and WY – PEAK Parent Center, Barbara Buswell, bbuswell@peakparent.org $1,618,972.
Region 6: AK, CA, HI, ID, NV, OR, WA, the outlying areas of the Pacific Basin, and the Freely Associated States – Matrix, A Parent Network and Resource Center, Nora Thompson, norat@matrixparents.org $1,618,972.
Native American Parent Technical Assistance Center:
Education for Parents of Indian Children with Special Needs, Alvino Sandoval, asandoval@epicsnm.org $1,618,972.
PRESIDENT OBAMA ASKS UN TO CONFRONT SYRIAN PROBLEMS
FROM: U.S. DEFENSE DEPARTMENT
Obama Urges UN to Confront Syrian Violence, Chemical Weapons
By Jim Garamone
American Forces Press Service
WASHINGTON, Sept. 24, 2013 - While the world has made strides toward stability, the situation in Syria illustrates the dangers of current trends to the Middle East and the rest of the globe, President Barack Obama told world leaders at the United Nations today.
Obama spoke to the General Assembly meeting in New York this morning giving a synopsis of the situation in Syria and how the United Nations must work to end the violence that has killed more than 100,000 people.
The Syrian civil war has escalated with the government using chemical weapons on its own people. "The international community recognized the stakes early on, but our response has not matched the scale of the challenge," the president said. "Aid cannot keep pace with the suffering of the wounded and displaced. A peace process is stillborn."
The crisis in Syria goes to the heart of broader challenges the international community must confront, Obama said. From North Africa to Central Asia, there is turmoil and getting these nations through this time peacefully is the challenge.
With respect to Syria, the international community "must enforce the ban on chemical weapons," the president said.
"The evidence is overwhelming that the Assad regime used such weapons on August 21st," Obama said. "U.N. inspectors gave a clear accounting that advanced rockets fired large quantities of sarin gas at civilians. These rockets were fired from a regime-controlled neighborhood, and landed in opposition neighborhoods. It's an insult to human reason -- and to the legitimacy of this institution -- to suggest that anyone other than the regime carried out this attack."
Obama initially considered launching a limited U.S. military strike against Syrian regime targets, but the United States now is testing a diplomatic solution.
"In the past several weeks, the United States, Russia and our allies have reached an agreement to place Syria's chemical weapons under international control, and then to destroy them," Obama said.
The Syrian government has now begun accounting for its stockpiles.
"Now there must be a strong Security Council resolution to verify that the Assad regime is keeping its commitments, and there must be consequences if they fail to do so," Obama said. "If we cannot agree even on this, then it will show that the United Nations is incapable of enforcing the most basic of international laws.
"On the other hand, if we succeed," he continued, "it will send a powerful message that the use of chemical weapons has no place in the 21st century, and that this body means what it says."
If diplomacy works, it could energize a larger diplomatic effort to reach a political settlement within Syria.
"I do not believe that military action -- by those within Syria, or by external powers -- can achieve a lasting peace," Obama said. "Nor do I believe that America or any nation should determine who will lead Syria; that is for the Syrian people to decide. Nevertheless, a leader who slaughtered his citizens and gassed children to death cannot regain the legitimacy to lead a badly fractured country. The notion that Syria can somehow return to a pre-war status quo is a fantasy."
Obama stated that Russia and Iran must realize that insisting on Bashir al-Assad's continued rule in Syria will lead directly to the outcome that they fear: an increasingly violent space for extremists to operate.
"In turn, those of us who continue to support the moderate opposition must persuade them that the Syrian people cannot afford a collapse of state institutions, and that a political settlement cannot be reached without addressing the legitimate fears and concerns of Alawites and other minorities," he said.
The United States is committed to working the diplomatic track, the president said, and he urged all nations to help bring about a peaceful resolution of Syria's civil war.
He asked U.N. members to step forward to help alleviate the suffering of the Syrian people. The United States has committed more than $1 billion to this effort, and he announced the United States will donate a further $340 million.
"No aid can take the place of a political resolution that gives the Syrian people the chance to rebuild their country, but it can help desperate people to survive," he said.
Obama Urges UN to Confront Syrian Violence, Chemical Weapons
By Jim Garamone
American Forces Press Service
WASHINGTON, Sept. 24, 2013 - While the world has made strides toward stability, the situation in Syria illustrates the dangers of current trends to the Middle East and the rest of the globe, President Barack Obama told world leaders at the United Nations today.
Obama spoke to the General Assembly meeting in New York this morning giving a synopsis of the situation in Syria and how the United Nations must work to end the violence that has killed more than 100,000 people.
The Syrian civil war has escalated with the government using chemical weapons on its own people. "The international community recognized the stakes early on, but our response has not matched the scale of the challenge," the president said. "Aid cannot keep pace with the suffering of the wounded and displaced. A peace process is stillborn."
The crisis in Syria goes to the heart of broader challenges the international community must confront, Obama said. From North Africa to Central Asia, there is turmoil and getting these nations through this time peacefully is the challenge.
With respect to Syria, the international community "must enforce the ban on chemical weapons," the president said.
"The evidence is overwhelming that the Assad regime used such weapons on August 21st," Obama said. "U.N. inspectors gave a clear accounting that advanced rockets fired large quantities of sarin gas at civilians. These rockets were fired from a regime-controlled neighborhood, and landed in opposition neighborhoods. It's an insult to human reason -- and to the legitimacy of this institution -- to suggest that anyone other than the regime carried out this attack."
Obama initially considered launching a limited U.S. military strike against Syrian regime targets, but the United States now is testing a diplomatic solution.
"In the past several weeks, the United States, Russia and our allies have reached an agreement to place Syria's chemical weapons under international control, and then to destroy them," Obama said.
The Syrian government has now begun accounting for its stockpiles.
"Now there must be a strong Security Council resolution to verify that the Assad regime is keeping its commitments, and there must be consequences if they fail to do so," Obama said. "If we cannot agree even on this, then it will show that the United Nations is incapable of enforcing the most basic of international laws.
"On the other hand, if we succeed," he continued, "it will send a powerful message that the use of chemical weapons has no place in the 21st century, and that this body means what it says."
If diplomacy works, it could energize a larger diplomatic effort to reach a political settlement within Syria.
"I do not believe that military action -- by those within Syria, or by external powers -- can achieve a lasting peace," Obama said. "Nor do I believe that America or any nation should determine who will lead Syria; that is for the Syrian people to decide. Nevertheless, a leader who slaughtered his citizens and gassed children to death cannot regain the legitimacy to lead a badly fractured country. The notion that Syria can somehow return to a pre-war status quo is a fantasy."
Obama stated that Russia and Iran must realize that insisting on Bashir al-Assad's continued rule in Syria will lead directly to the outcome that they fear: an increasingly violent space for extremists to operate.
"In turn, those of us who continue to support the moderate opposition must persuade them that the Syrian people cannot afford a collapse of state institutions, and that a political settlement cannot be reached without addressing the legitimate fears and concerns of Alawites and other minorities," he said.
The United States is committed to working the diplomatic track, the president said, and he urged all nations to help bring about a peaceful resolution of Syria's civil war.
He asked U.N. members to step forward to help alleviate the suffering of the Syrian people. The United States has committed more than $1 billion to this effort, and he announced the United States will donate a further $340 million.
"No aid can take the place of a political resolution that gives the Syrian people the chance to rebuild their country, but it can help desperate people to survive," he said.
U.S.-MONGOLIA SIGN AGREEMENT ON TRANSPARENCY IN MATTERS RELATED TO INTERNATIONAL TRADE AND INVESTMENT
FROM: U.S. STATE DEPARTMENT
United States and Mongolia Sign Bilateral Transparency Agreement
Office of the Spokesperson
Washington, DC
September 24, 2013
The United States of America and Mongolia signed an Agreement on Transparency in Matters Related to International Trade and Investment today in New York, New York. The agreement, signed by United States Trade Representative Michael Froman and Mongolian Foreign Minister Luvsanvandan Bold, marks an important step in developing and broadening the economic relationship between Mongolia and the United States. The U.S.-Mongolia relationship has seen impressive growth over the past two decades. This bilateral Transparency Agreement adds to the continuing positive momentum in relations and benefits both countries by creating a more transparent and predictable environment for doing business.
The goal of the Transparency Agreement is to make it easier for American and Mongolian firms to do business. The agreement covers transparency in the formation of trade-related laws and regulations, the conduct of fair administrative proceedings, and measures to address bribery and corruption. In addition, it provides for commercial laws and regulations to be published in English, making it easier for international investors to operate in Mongolia.
The goal of the Transparency Agreement is to make it easier for American and Mongolian firms to do business. The agreement covers transparency in the formation of trade-related laws and regulations, the conduct of fair administrative proceedings, and measures to address bribery and corruption. In addition, it provides for commercial laws and regulations to be published in English, making it easier for international investors to operate in Mongolia.
PRESIDENT OBAMA TALKS ABOUT MIDDLE EAST IN UNITED NATIONS SPEECH
FROM: U.S. DEFENSE DEPARTMENT
Obama Describes Core US Interests in the Middle East
By Jim Garamone
American Forces Press Service
WASHINGTON, Sept. 24, 2013 - In a speech at the United Nations today, President Barack Obama described key United States' interests in North Africa and the Middle East and made clear America is prepared to use force to back them up.
"The United States of America is prepared to use all elements of our power, including military force, to secure our core interests in the region," Obama told the General Assembly in New York.
The nation, he said, will confront external aggression against allies and partners in the region.
"We will ensure the free flow of energy from the region to the world," Obama said. While the United States is reducing its oil imports, the world still depends on Middle Eastern oil and gas. A severe disruption could destabilize the global economy.
"We will dismantle terrorist networks that threaten our people," the president said. "Wherever possible, we will build the capacity of our partners, respect the sovereignty of nations, and work to address the root causes of terror. But when it is necessary to defend the United States against terrorist attack, we will take direct action."
And, the United States will not tolerate the development or use of weapons of mass destruction. "Just as we consider the use of chemical weapons in Syria to be a threat to our own national security, we reject the development of nuclear weapons that could trigger a nuclear arms race in the region, and undermine the global nonproliferation regime," Obama said.
It is in U.S. interests to see a peaceful, prosperous, stable and democratic Middle East, Obama said, but the United States cannot force this.
"We can rarely achieve these objectives through unilateral American action, particularly through military action," he said. "Iraq shows us that democracy cannot simply be imposed by force. Rather, these objectives are best achieved when we partner with the international community and with the countries and peoples of the region."
The president illustrated the U.S. position using Iran's pursuit of nuclear weapons and the Arab-Israeli conflict as examples.
"While these issues are not the cause of all the region's problems, they have been a major source of instability for far too long, and resolving them can help serve as a foundation for a broader peace," Obama said.
The United States and Iran have not had diplomatic relations since 1979. Mistrust between the two nations has developed over the years.
"This mistrust has deep roots," the president said. "Iranians have long complained of a history of U.S. interference in their affairs and of America's role in overthrowing an Iranian government during the Cold War. On the other hand, Americans see an Iranian government that has declared the United States an enemy and directly -- or through proxies -- taken American hostages, killed U.S. troops and civilians, and threatened our ally Israel with destruction."
Resolving the issue of Iranian pursuit of nuclear weapons could go a long way toward an improved relationship between the two countries, Obama said.
The United States is resolved to not allow Iran to develop nuclear weapons. "We are not seeking regime change and we respect the right of the Iranian people to access peaceful nuclear energy," the president said. "Instead, we insist that the Iranian government meet its responsibilities under the Nuclear Non-Proliferation Treaty and U.N. Security Council resolutions."
On the Iranian side, the Supreme Leader Ayatollah Ali Hoseini-Khamenei has issued a fatwa against the development of nuclear weapons, and new Iranian President Hasan Rouhani has just recently reiterated that the Islamic Republic will never develop a nuclear weapon.
"These statements made by our respective governments should offer the basis for a meaningful agreement," Obama said. "We should be able to achieve a resolution that respects the rights of the Iranian people, while giving the world confidence that the Iranian program is peaceful. But to succeed, conciliatory words will have to be matched by actions that are transparent and verifiable. After all, it's the Iranian government's choices that have led to the comprehensive sanctions that are currently in place. And this is not simply an issue between the United States and Iran."
The president has directed Secretary of State John Kerry to pursue this effort with the Iranian government in close cooperation with the European Union, Russia and China.
The conflict between the Palestinians and Israel is also a flashpoint that needs to be dampened, the president said. "I've made it clear that the United States will never compromise our commitment to Israel's security, nor our support for its existence as a Jewish state," he said.
The United States also remains committed to the belief that the Palestinian people have a right to live with security and dignity in their own sovereign state, he said.
Now is the time for the entire international community to get behind the pursuit of peace in the area, Obama said. Israeli and Palestinian leaders are meeting. Current talks are focused on final status issues of borders and security, refugees and Jerusalem.
"So now the rest of us must be willing to take risks as well," the president said. "Friends of Israel, including the United States, must recognize that Israel's security as a Jewish and democratic state depends upon the realization of a Palestinian state, and we should say so clearly. Arab states, and those who supported the Palestinians, must recognize that stability will only be served through a two-state solution and a secure Israel."
The nations of the world must recognize that peace will be a powerful tool to defeat extremists throughout the region, and embolden those who are prepared to build a better future, Obama said.
Real breakthroughs on the Iranian nuclear program and Palestinian-Israeli peace would have a profound and positive impact on the entire Middle East and North Africa, the president said.
"But the current convulsions arising out of the Arab Spring remind us that a just and lasting peace cannot be measured only by agreements between nations," he said. "It must also be measured by our ability to resolve conflict and promote justice within nations. And by that measure, it's clear that all of us have a lot more work to do."
Obama Describes Core US Interests in the Middle East
By Jim Garamone
American Forces Press Service
WASHINGTON, Sept. 24, 2013 - In a speech at the United Nations today, President Barack Obama described key United States' interests in North Africa and the Middle East and made clear America is prepared to use force to back them up.
"The United States of America is prepared to use all elements of our power, including military force, to secure our core interests in the region," Obama told the General Assembly in New York.
The nation, he said, will confront external aggression against allies and partners in the region.
"We will ensure the free flow of energy from the region to the world," Obama said. While the United States is reducing its oil imports, the world still depends on Middle Eastern oil and gas. A severe disruption could destabilize the global economy.
"We will dismantle terrorist networks that threaten our people," the president said. "Wherever possible, we will build the capacity of our partners, respect the sovereignty of nations, and work to address the root causes of terror. But when it is necessary to defend the United States against terrorist attack, we will take direct action."
And, the United States will not tolerate the development or use of weapons of mass destruction. "Just as we consider the use of chemical weapons in Syria to be a threat to our own national security, we reject the development of nuclear weapons that could trigger a nuclear arms race in the region, and undermine the global nonproliferation regime," Obama said.
It is in U.S. interests to see a peaceful, prosperous, stable and democratic Middle East, Obama said, but the United States cannot force this.
"We can rarely achieve these objectives through unilateral American action, particularly through military action," he said. "Iraq shows us that democracy cannot simply be imposed by force. Rather, these objectives are best achieved when we partner with the international community and with the countries and peoples of the region."
The president illustrated the U.S. position using Iran's pursuit of nuclear weapons and the Arab-Israeli conflict as examples.
"While these issues are not the cause of all the region's problems, they have been a major source of instability for far too long, and resolving them can help serve as a foundation for a broader peace," Obama said.
The United States and Iran have not had diplomatic relations since 1979. Mistrust between the two nations has developed over the years.
"This mistrust has deep roots," the president said. "Iranians have long complained of a history of U.S. interference in their affairs and of America's role in overthrowing an Iranian government during the Cold War. On the other hand, Americans see an Iranian government that has declared the United States an enemy and directly -- or through proxies -- taken American hostages, killed U.S. troops and civilians, and threatened our ally Israel with destruction."
Resolving the issue of Iranian pursuit of nuclear weapons could go a long way toward an improved relationship between the two countries, Obama said.
The United States is resolved to not allow Iran to develop nuclear weapons. "We are not seeking regime change and we respect the right of the Iranian people to access peaceful nuclear energy," the president said. "Instead, we insist that the Iranian government meet its responsibilities under the Nuclear Non-Proliferation Treaty and U.N. Security Council resolutions."
On the Iranian side, the Supreme Leader Ayatollah Ali Hoseini-Khamenei has issued a fatwa against the development of nuclear weapons, and new Iranian President Hasan Rouhani has just recently reiterated that the Islamic Republic will never develop a nuclear weapon.
"These statements made by our respective governments should offer the basis for a meaningful agreement," Obama said. "We should be able to achieve a resolution that respects the rights of the Iranian people, while giving the world confidence that the Iranian program is peaceful. But to succeed, conciliatory words will have to be matched by actions that are transparent and verifiable. After all, it's the Iranian government's choices that have led to the comprehensive sanctions that are currently in place. And this is not simply an issue between the United States and Iran."
The president has directed Secretary of State John Kerry to pursue this effort with the Iranian government in close cooperation with the European Union, Russia and China.
The conflict between the Palestinians and Israel is also a flashpoint that needs to be dampened, the president said. "I've made it clear that the United States will never compromise our commitment to Israel's security, nor our support for its existence as a Jewish state," he said.
The United States also remains committed to the belief that the Palestinian people have a right to live with security and dignity in their own sovereign state, he said.
Now is the time for the entire international community to get behind the pursuit of peace in the area, Obama said. Israeli and Palestinian leaders are meeting. Current talks are focused on final status issues of borders and security, refugees and Jerusalem.
"So now the rest of us must be willing to take risks as well," the president said. "Friends of Israel, including the United States, must recognize that Israel's security as a Jewish and democratic state depends upon the realization of a Palestinian state, and we should say so clearly. Arab states, and those who supported the Palestinians, must recognize that stability will only be served through a two-state solution and a secure Israel."
The nations of the world must recognize that peace will be a powerful tool to defeat extremists throughout the region, and embolden those who are prepared to build a better future, Obama said.
Real breakthroughs on the Iranian nuclear program and Palestinian-Israeli peace would have a profound and positive impact on the entire Middle East and North Africa, the president said.
"But the current convulsions arising out of the Arab Spring remind us that a just and lasting peace cannot be measured only by agreements between nations," he said. "It must also be measured by our ability to resolve conflict and promote justice within nations. And by that measure, it's clear that all of us have a lot more work to do."
DOMINICAN NATIONAL SENTENCED TO PRISON FOR ROLE IN IDENTITY TRAFFICKING SCHEME
FROM: U.S. JUSTICE DEPARTMENT
Friday, September 20, 2013
Dominican National Sentenced to 42 Months in Prison in Puerto Rican Identity Trafficking Scheme
A Dominican national was sentenced today to serve 42 months in prison for her role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico; Acting Director John Sandweg of U.S. Immigration and Customs Enforcement (ICE); Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS); Director Gregory B. Starr of the U.S. State Department’s Diplomatic Security Service (DSS); and Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Richard Weber.
Arelis Abreu-Ramos, formerly of Philadelphia, was sentenced by U.S. District Judge Gustavo A. Gelpí in the District of Puerto Rico. In addition to Abreu-Ramos’s prison term, Judge Gelpí ordered her removal from the United States to the Dominican Republic after the completion of her sentence.
On June 13, 2013, Abreu-Ramos pleaded guilty in Puerto Rico to one count of conspiracy to commit identification fraud and one count of conspiracy to commit human smuggling for financial gain.
Abreu-Ramos was charged in a superseding indictment returned by a federal grand jury in Puerto Rico on March 22, 2012. To date, a total of 53 individuals have been charged for their roles in the identity trafficking scheme, and 42 defendants have pleaded guilty.
Court documents allege that individuals located in the Savarona area of Caguas, Puerto Rico (Savarona suppliers), obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States (identity brokers) allegedly solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. The superseding indictment alleges that identity brokers ordered the identity documents from the Savarona suppliers, on behalf of the customers, by making coded telephone calls. The conspirators are charged with using text messages, money transfer services, and express, priority or regular U.S. mail to complete their illicit transactions.
Court documents allege that some of the conspirators assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation. Their customers generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
According to court documents, various identity brokers were operating in Rockford, Ill.; DeKalb, Ill.; Aurora, Ill.; Seymour, Ind.; Columbus, Ind.; Indianapolis; Hartford, Conn.; Clewiston, Fla.; Lilburn, Ga.; Norcross, Ga.; Salisbury, Md.; Columbus, Ohio; Fairfield, Ohio; Dorchester, Mass.; Lawrence, Mass.; Salem, Mass.; Worcester, Mass.; Grand Rapids, Mich.; Nebraska City, Neb.; Elizabeth, N.J.; Burlington, N.C.; Hickory, N.C.; Hazelton, Pa.; Philadelphia; Houston; Abingdon, Va.; Albertville, Ala.; and Providence, R.I.
Abreu-Ramos admitted that she operated as an identity broker in the Philadelphia area, and that she was a manager and supervisor in the conspiracy. According to court documents, in June 2011, an unauthorized alien in Arlington, Va., applied for a U.S. passport using legitimate Puerto Rico identity documents that had been supplied by Abreu-Ramos. Law enforcement agents uncovered the fraudulent application and prevented the issuance of the U.S. passport.
Abreu-Ramos is the 29th defendant to be sentenced in this case.
The charges are the result of Operation Island Express, an ongoing, nationally-coordinated investigation led by the ICE Homeland Security Investigations (ICE-HSI) Chicago Office and USPIS, DSS and IRS-CI offices in Chicago, in coordination with the ICE-HSI San Juan Office and the DSS Resident Office in Puerto Rico. The Illinois Secretary of State Police; Elgin, Ill., Police Department; Seymour, Ind., Police Department; and Indiana State Police provided substantial assistance. The ICE-HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center (IOC-2) as well as various ICE, USPIS, DSS and IRS-CI offices around the country provided invaluable support.
The case is being prosecuted by Trial Attorneys James S. Yoon, Hope S. Olds, Courtney B. Schaefer and Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section, with the assistance of the Criminal Division’s Asset Forfeiture and Money Laundering Section, and the support of the U.S. Attorney’s Office for the District of Puerto Rico. The U.S. Attorney’s Offices in the Northern District of Illinois, Southern District of Indiana, District of Connecticut, District of Massachusetts, District of Nebraska, Middle District of North Carolina, Southern District of Ohio, Middle District of Pennsylvania, District of Rhode Island, Southern District of Texas and Western District of Virginia provided substantial assistance.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html . Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline . Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
Friday, September 20, 2013
Dominican National Sentenced to 42 Months in Prison in Puerto Rican Identity Trafficking Scheme
A Dominican national was sentenced today to serve 42 months in prison for her role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico; Acting Director John Sandweg of U.S. Immigration and Customs Enforcement (ICE); Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS); Director Gregory B. Starr of the U.S. State Department’s Diplomatic Security Service (DSS); and Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Richard Weber.
Arelis Abreu-Ramos, formerly of Philadelphia, was sentenced by U.S. District Judge Gustavo A. Gelpí in the District of Puerto Rico. In addition to Abreu-Ramos’s prison term, Judge Gelpí ordered her removal from the United States to the Dominican Republic after the completion of her sentence.
On June 13, 2013, Abreu-Ramos pleaded guilty in Puerto Rico to one count of conspiracy to commit identification fraud and one count of conspiracy to commit human smuggling for financial gain.
Abreu-Ramos was charged in a superseding indictment returned by a federal grand jury in Puerto Rico on March 22, 2012. To date, a total of 53 individuals have been charged for their roles in the identity trafficking scheme, and 42 defendants have pleaded guilty.
Court documents allege that individuals located in the Savarona area of Caguas, Puerto Rico (Savarona suppliers), obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States (identity brokers) allegedly solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. The superseding indictment alleges that identity brokers ordered the identity documents from the Savarona suppliers, on behalf of the customers, by making coded telephone calls. The conspirators are charged with using text messages, money transfer services, and express, priority or regular U.S. mail to complete their illicit transactions.
Court documents allege that some of the conspirators assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation. Their customers generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
According to court documents, various identity brokers were operating in Rockford, Ill.; DeKalb, Ill.; Aurora, Ill.; Seymour, Ind.; Columbus, Ind.; Indianapolis; Hartford, Conn.; Clewiston, Fla.; Lilburn, Ga.; Norcross, Ga.; Salisbury, Md.; Columbus, Ohio; Fairfield, Ohio; Dorchester, Mass.; Lawrence, Mass.; Salem, Mass.; Worcester, Mass.; Grand Rapids, Mich.; Nebraska City, Neb.; Elizabeth, N.J.; Burlington, N.C.; Hickory, N.C.; Hazelton, Pa.; Philadelphia; Houston; Abingdon, Va.; Albertville, Ala.; and Providence, R.I.
Abreu-Ramos admitted that she operated as an identity broker in the Philadelphia area, and that she was a manager and supervisor in the conspiracy. According to court documents, in June 2011, an unauthorized alien in Arlington, Va., applied for a U.S. passport using legitimate Puerto Rico identity documents that had been supplied by Abreu-Ramos. Law enforcement agents uncovered the fraudulent application and prevented the issuance of the U.S. passport.
Abreu-Ramos is the 29th defendant to be sentenced in this case.
The charges are the result of Operation Island Express, an ongoing, nationally-coordinated investigation led by the ICE Homeland Security Investigations (ICE-HSI) Chicago Office and USPIS, DSS and IRS-CI offices in Chicago, in coordination with the ICE-HSI San Juan Office and the DSS Resident Office in Puerto Rico. The Illinois Secretary of State Police; Elgin, Ill., Police Department; Seymour, Ind., Police Department; and Indiana State Police provided substantial assistance. The ICE-HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center (IOC-2) as well as various ICE, USPIS, DSS and IRS-CI offices around the country provided invaluable support.
The case is being prosecuted by Trial Attorneys James S. Yoon, Hope S. Olds, Courtney B. Schaefer and Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section, with the assistance of the Criminal Division’s Asset Forfeiture and Money Laundering Section, and the support of the U.S. Attorney’s Office for the District of Puerto Rico. The U.S. Attorney’s Offices in the Northern District of Illinois, Southern District of Indiana, District of Connecticut, District of Massachusetts, District of Nebraska, Middle District of North Carolina, Southern District of Ohio, Middle District of Pennsylvania, District of Rhode Island, Southern District of Texas and Western District of Virginia provided substantial assistance.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html . Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline . Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
SEC CHARGES THREE IN PRIME BANK OFFERING AND PONZI SCHEME
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission ("Commission") has charged Jenifer E. Hoffman and John C. Boschert, the former principals of Assured Capital Consultants, LLC - a now-dissolved Florida company - and Bryan T. Zuzga, the company's purported escrow agent, for their involvement in a fraudulent prime bank offering and Ponzi scheme.
According to the Commission's complaint, filed in U.S. District Court for the Middle District of Florida, between approximately January and September 2009, Assured Capital, through Hoffman, Boschert, and Zuzga, raised at least $25 million from investors, through false representations and fake documents. The complaint alleges that Hoffman and Boschert represented to investors that their money would be invested in Assured Capital's offshore, confidential trading program which, in turn, would invest in blocks of medium term notes. As the complaint further alleges, Hoffman and Boschert enticed investors with claims of exorbitant profits and with the illusion of safety by telling them that the investment would provide weekly returns of up to 50% and that it was performing, safe, and guaranteed. In addition, Hoffman and Boschert represented to investors their money would remain safe in an Assured Capital escrow account that would be used to secure a line of credit for investing in the company's offshore trading program. Furthermore, Hoffman, Boschert, and Zuzga told investors that Zuzga controlled the escrow account as Assured Capital's escrow agent and that he was a licensed attorney. Moreover, Hoffman provided investors with fake bank documents and a sham verification letter, notarized by Zuzga, purporting to confirm Assured Capital had $500 million at a Panamanian bank.
As the complaint alleges, none of these representations were true and the investment program was purely fictional. Zuzga was not Assured Capital's escrow agent and has never been a licensed attorney. Hoffman and Boschert used investor funds to make payments to other investors in Ponzi fashion, and stole investor funds along with Zuzga for their personal use. Assured Capital has since gone out of business.
The Commission's complaint alleges that Hoffman of Clermont, Florida, Boschert of Apopka, Florida, and Zuzga of Coldwater, Michigan, all violated Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission is seeking financial penalties, disgorgement of ill-gotten gains plus prejudgment interest, and permanent injunctions against all the defendants.
The Securities and Exchange Commission ("Commission") has charged Jenifer E. Hoffman and John C. Boschert, the former principals of Assured Capital Consultants, LLC - a now-dissolved Florida company - and Bryan T. Zuzga, the company's purported escrow agent, for their involvement in a fraudulent prime bank offering and Ponzi scheme.
According to the Commission's complaint, filed in U.S. District Court for the Middle District of Florida, between approximately January and September 2009, Assured Capital, through Hoffman, Boschert, and Zuzga, raised at least $25 million from investors, through false representations and fake documents. The complaint alleges that Hoffman and Boschert represented to investors that their money would be invested in Assured Capital's offshore, confidential trading program which, in turn, would invest in blocks of medium term notes. As the complaint further alleges, Hoffman and Boschert enticed investors with claims of exorbitant profits and with the illusion of safety by telling them that the investment would provide weekly returns of up to 50% and that it was performing, safe, and guaranteed. In addition, Hoffman and Boschert represented to investors their money would remain safe in an Assured Capital escrow account that would be used to secure a line of credit for investing in the company's offshore trading program. Furthermore, Hoffman, Boschert, and Zuzga told investors that Zuzga controlled the escrow account as Assured Capital's escrow agent and that he was a licensed attorney. Moreover, Hoffman provided investors with fake bank documents and a sham verification letter, notarized by Zuzga, purporting to confirm Assured Capital had $500 million at a Panamanian bank.
As the complaint alleges, none of these representations were true and the investment program was purely fictional. Zuzga was not Assured Capital's escrow agent and has never been a licensed attorney. Hoffman and Boschert used investor funds to make payments to other investors in Ponzi fashion, and stole investor funds along with Zuzga for their personal use. Assured Capital has since gone out of business.
The Commission's complaint alleges that Hoffman of Clermont, Florida, Boschert of Apopka, Florida, and Zuzga of Coldwater, Michigan, all violated Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission is seeking financial penalties, disgorgement of ill-gotten gains plus prejudgment interest, and permanent injunctions against all the defendants.
CARBON SINK
FROM: NATIONAL SCIENCE FOUNDATION
Tropical forest carbon sink hinges on 'odd couple'
A unique housing arrangement between a specific tree species and carbo-loading bacteria may determine how well tropical forests can absorb carbon dioxide from the atmosphere, says new research today in an advance online publication of the journal Nature.
The findings suggest that the role of tropical forests in offsetting the atmospheric buildup of carbon from fossil fuels depends on tree diversity, particularly in forests recovering from exploitation.
Tropical forests thrive on natural nitrogen fertilizer pumped into the soil by trees in the legume family, a diverse group of plants that includes beans and peas, the researchers report.
"Fast-growing nitrogen-fixing trees are not common outside of the tropics, but are found in surprisingly high diversity there," said Henry Gholz, program director in the National Science Foundation's (NSF) Division of Environmental Biology, which funded the research.
"These findings place the trees' ability to capture atmospheric nitrogen and to use it to stimulate growth in the context of long-term tropical forest development," Gholz said. "This process not only allows these trees to get out of the gate quickly after a disturbance, but to maintain dominance decades to centuries later."
The researchers studied recovering forests in Panama that had been exploited five to 300 years earlier.
The presence of legume trees ensured rapid forest growth, and thus a substantial carbon sink, in the first 12 years of recovery.
Tracts of land that were pasture only 12 years before had already accumulated as much as 40 percent of the carbon found in fully mature forests. Legumes contributed more than half the nitrogen needed to make that happen.
These fledgling woodlands had the capacity to store 50 metric tons of carbon per hectare, which equates to roughly 185 tons of carbon dioxide, or the exhaust of some 21,285 gallons of gasoline.
That much fuel would take the average car in the United States more than half a million miles.
Though the legumes' nitrogen fertilizer output waned in later years, the species nonetheless took up carbon at rates that were up to 9 times faster than non-legume trees.
The legumes' secret is a process known as "nitrogen fixation" carried out in concert with infectious bacteria known as rhizobia, which dwell in small pods, known as root nodules, inside the tree's roots.
As a nutrient, nitrogen is essential for plant growth, but tropical soil is short on nitrogen and surprisingly non-nutritious for trees.
Legumes use secretions to invite rhizobia living in the soil to infect their roots, and the bacteria signal back to initiate nodule growth.
The rhizobia move into the root cells of the host plant and--in exchange for carbohydrates produced by photosynthesis in the tree--convert nitrogen from the air into fertilizer plants need.
Excess nitrogen from the legume eventually creates a nitrogen cycle that benefits neighboring trees.
By nurturing bigger, healthier trees that take up more carbon, legumes have a newly realized importance when it comes to influencing atmospheric carbon dioxide, said paper co-author Lars Hedin of Princeton University.
Scientists recently assigned numbers to track how much carbon forests as a whole absorb, suggesting that the world's forests took up 2.4 quadrillion tons of carbon from 1990 to 2007.
"Tropical forests are a huge carbon sink," said Hedin.
"If trees could just grow and store carbon, you could have a rapid sink, but if they don't have enough nitrogen they don't take up carbon," he said, adding that nitrogen-fixing trees are uncommon in temperate forests such as those in most of North America and Europe.
"Legumes are a group of plants that perform a valuable function in tropical forests, but no one knew how much they help with the carbon sink," Hedin said. "This work shows that the level of biodiversity in a tropical forest determines the size of the carbon sink."
First author Sarah Batterman of Princeton said that legumes, or "nitrogen-fixers," are especially important for forests recovering from agricultural use, logging, fire or other human activities.
The researchers studied 16 forest plots that were formerly pasture and are maintained by the Smithsonian Tropical Research Institute (STRI).
Forest degradation, however, comes with a loss of biodiversity that can affect nitrogen-fixers, too, even though legumes are not specifically threatened, Batterman said.
If the number and diversity of nitrogen-fixers plummet, the health of the surrounding forest would likely be affected for a long time, she said.
"This study shows that there is an important place for nitrogen-fixation in these disturbed areas," Batterman said.
"Nitrogen-fixers are a component of biodiversity and are important for the function of these forests, but we don't know enough about how this valuable group of trees influences forests. While some species may thrive on disturbance, others may be sensitive to human activities."
The researchers found that the nine legume species they studied did not contribute nitrogen to surrounding trees at the same time.
Certain species were more active in the youngest forests, others in middle-aged forests, and still other species went into action mainly in 300-year-old tracts, though not nearly to the same extent as legumes in younger plots.
The researchers found that individual trees reduced their fixation as nitrogen accumulated in soils, with the number of legumes actively "fixing" nitrogen dropping from 71 to 23 percent between 12- and 80-year-old forests.
"The diversity of species present in the forest is critical because it ensures that there can be fixation at different time periods of forest recovery," Batterman said.
"If you were to lose one of those species and it turned out to be essential for a specific time period, fixation might drop dramatically."
Such details can improve what scientists know about future climate change, Batterman said.
Computer models that calculate the global balance of atmospheric carbon dioxide also must factor in sinks that offset carbon, such as tropical forests.
And if forests take up carbon differently depending on the abundance and diversity of legumes, models should reflect that variation, she said.
"Other researchers can now put this role of nitrogen-fixation into their models and improve predictions about the carbon sink," Batterman said.
Batterman and Hedin worked with Michiel van Breugel and Jefferson Hall at STRI, Johannes Ransijn at the University of Copenhagen and Dylan Craven at Yale University.
The work was also supported by grants from the National Oceanic and Atmospheric Administration; the Smithsonian Tropical Research Institute; and the Cooperative Institute for Climate Science and the Carbon Mitigation Initiative, both at Princeton University.
-NSF-
Tropical forest carbon sink hinges on 'odd couple'
A unique housing arrangement between a specific tree species and carbo-loading bacteria may determine how well tropical forests can absorb carbon dioxide from the atmosphere, says new research today in an advance online publication of the journal Nature.
The findings suggest that the role of tropical forests in offsetting the atmospheric buildup of carbon from fossil fuels depends on tree diversity, particularly in forests recovering from exploitation.
Tropical forests thrive on natural nitrogen fertilizer pumped into the soil by trees in the legume family, a diverse group of plants that includes beans and peas, the researchers report.
"Fast-growing nitrogen-fixing trees are not common outside of the tropics, but are found in surprisingly high diversity there," said Henry Gholz, program director in the National Science Foundation's (NSF) Division of Environmental Biology, which funded the research.
"These findings place the trees' ability to capture atmospheric nitrogen and to use it to stimulate growth in the context of long-term tropical forest development," Gholz said. "This process not only allows these trees to get out of the gate quickly after a disturbance, but to maintain dominance decades to centuries later."
The researchers studied recovering forests in Panama that had been exploited five to 300 years earlier.
The presence of legume trees ensured rapid forest growth, and thus a substantial carbon sink, in the first 12 years of recovery.
Tracts of land that were pasture only 12 years before had already accumulated as much as 40 percent of the carbon found in fully mature forests. Legumes contributed more than half the nitrogen needed to make that happen.
These fledgling woodlands had the capacity to store 50 metric tons of carbon per hectare, which equates to roughly 185 tons of carbon dioxide, or the exhaust of some 21,285 gallons of gasoline.
That much fuel would take the average car in the United States more than half a million miles.
Though the legumes' nitrogen fertilizer output waned in later years, the species nonetheless took up carbon at rates that were up to 9 times faster than non-legume trees.
The legumes' secret is a process known as "nitrogen fixation" carried out in concert with infectious bacteria known as rhizobia, which dwell in small pods, known as root nodules, inside the tree's roots.
As a nutrient, nitrogen is essential for plant growth, but tropical soil is short on nitrogen and surprisingly non-nutritious for trees.
Legumes use secretions to invite rhizobia living in the soil to infect their roots, and the bacteria signal back to initiate nodule growth.
The rhizobia move into the root cells of the host plant and--in exchange for carbohydrates produced by photosynthesis in the tree--convert nitrogen from the air into fertilizer plants need.
Excess nitrogen from the legume eventually creates a nitrogen cycle that benefits neighboring trees.
By nurturing bigger, healthier trees that take up more carbon, legumes have a newly realized importance when it comes to influencing atmospheric carbon dioxide, said paper co-author Lars Hedin of Princeton University.
Scientists recently assigned numbers to track how much carbon forests as a whole absorb, suggesting that the world's forests took up 2.4 quadrillion tons of carbon from 1990 to 2007.
"Tropical forests are a huge carbon sink," said Hedin.
"If trees could just grow and store carbon, you could have a rapid sink, but if they don't have enough nitrogen they don't take up carbon," he said, adding that nitrogen-fixing trees are uncommon in temperate forests such as those in most of North America and Europe.
"Legumes are a group of plants that perform a valuable function in tropical forests, but no one knew how much they help with the carbon sink," Hedin said. "This work shows that the level of biodiversity in a tropical forest determines the size of the carbon sink."
First author Sarah Batterman of Princeton said that legumes, or "nitrogen-fixers," are especially important for forests recovering from agricultural use, logging, fire or other human activities.
The researchers studied 16 forest plots that were formerly pasture and are maintained by the Smithsonian Tropical Research Institute (STRI).
Forest degradation, however, comes with a loss of biodiversity that can affect nitrogen-fixers, too, even though legumes are not specifically threatened, Batterman said.
If the number and diversity of nitrogen-fixers plummet, the health of the surrounding forest would likely be affected for a long time, she said.
"This study shows that there is an important place for nitrogen-fixation in these disturbed areas," Batterman said.
"Nitrogen-fixers are a component of biodiversity and are important for the function of these forests, but we don't know enough about how this valuable group of trees influences forests. While some species may thrive on disturbance, others may be sensitive to human activities."
The researchers found that the nine legume species they studied did not contribute nitrogen to surrounding trees at the same time.
Certain species were more active in the youngest forests, others in middle-aged forests, and still other species went into action mainly in 300-year-old tracts, though not nearly to the same extent as legumes in younger plots.
The researchers found that individual trees reduced their fixation as nitrogen accumulated in soils, with the number of legumes actively "fixing" nitrogen dropping from 71 to 23 percent between 12- and 80-year-old forests.
"The diversity of species present in the forest is critical because it ensures that there can be fixation at different time periods of forest recovery," Batterman said.
"If you were to lose one of those species and it turned out to be essential for a specific time period, fixation might drop dramatically."
Such details can improve what scientists know about future climate change, Batterman said.
Computer models that calculate the global balance of atmospheric carbon dioxide also must factor in sinks that offset carbon, such as tropical forests.
And if forests take up carbon differently depending on the abundance and diversity of legumes, models should reflect that variation, she said.
"Other researchers can now put this role of nitrogen-fixation into their models and improve predictions about the carbon sink," Batterman said.
Batterman and Hedin worked with Michiel van Breugel and Jefferson Hall at STRI, Johannes Ransijn at the University of Copenhagen and Dylan Craven at Yale University.
The work was also supported by grants from the National Oceanic and Atmospheric Administration; the Smithsonian Tropical Research Institute; and the Cooperative Institute for Climate Science and the Carbon Mitigation Initiative, both at Princeton University.
-NSF-
Subscribe to:
Posts (Atom)