FROM: U.S. STATE DEPARTMENT
Assad's War of Starvation
Op-Ed
John Kerry
Secretary of State
Foreign Policy
October 28, 2013
The world already knows that Bashar al-Assad has used chemical weapons, indiscriminate bombing, arbitrary detentions, rape, and torture against his own citizens. What is far less well known, and equally intolerable, is the systematic denial of medical assistance, food supplies, and other humanitarian aid to huge portions of the population. This denial of the most basic human rights must end before the war's death toll -- now surpassing 100,000 -- reaches even more catastrophic levels.
Reports of severe malnutrition across vast swaths of Syria suffering under regime blockades prompted the United Nations Security Council to issue a presidential statement calling for immediate access to humanitarian assistance. To bolster the U.N.'s position, every nation needs to demand action on the ground -- right now. That includes governments that have allowed their Syrian allies to block or undermine vital relief efforts mandated by international humanitarian law.
Simply put, the world must act quickly and decisively to get life-saving assistance to the innocent civilians who are bearing the brunt of the civil war. To do anything less risks a "lost generation" of Syrian children traumatized, orphaned, and starved by this barbaric war.
The desperation can be eased significantly, even amid the fighting. Working through the regime, with assistance from Russia and others, inspectors from the Organization for the Prohibition of Chemical Weapons are proving every day that professionals can still carry out essential work where there is political will. If weapons inspectors can carry out their crucial mission to ensure Syria's chemical weapons can never be used again, then we can also find a way for aid workers on a no less vital mission to deliver food and medical treatment to men, women, and children suffering through no fault of their own.
The U.S. government has undertaken significant efforts to alleviate the suffering. Since the beginning of the Syrian crisis, the United States has led international donors in contributing nearly $1.4 billion for humanitarian assistance. Aid has been distributed to every section of Syria by leading international agencies, including the U.N. Refugee Agency, the World Food Program, the International Committee of the Red Cross, the Syrian Arab Red Crescent, and top-notch non-governmental groups.
Most of these aid workers are courageous Syrians who risk their safety to cross shifting battle lines for the good of others. They have performed miracles and saved thousands of lives. In return, they have been subjected to a catalog of horrors. They have been harassed, kidnapped, killed, and stopped at every turn from reaching the innocent civilians desperately clinging to life.
The obstacles exist on both sides of the war. Outside observers from the U.N. and non-governmental organizations have chronicled the ways in which extremist opposition fighters have prevented aid from reaching those in need, diverting supplies and violating the human rights of the people trying to deliver them.
But it is the regime's policies that threaten to take a humanitarian disaster into the abyss. The Assad government is refusing to register legitimate aid agencies. It is blocking assistance at its borders. It is requiring U.N. convoys to travel circuitous routes through scores of checkpoints to reach people in need. The regime has systematically blocked food shipments to strategically located districts, leading to a rising toll of death and misery.
The U.N. statement earlier this month calls on all parties to respect obligations under international humanitarian law. It sets out a series of steps that, if followed, would go a long way in protecting and helping the Syrian people. Convoys carrying aid need to be expedited. Efforts to provide medical care to the wounded and the sick must be granted safe passage. And attacks against medical facilities and personnel must stop.
Merely expecting a regime like Assad's to live up to the spirit, let alone letter, of the Security Council statement without concerted international pressure is sadly unrealistic. A regime that gassed its own people and systematically denies them food and medicine will bow only to our pressure, not to our hopes. Assad's allies who have influence over his calculations must demand that he and his backers adhere to international standards. With winter approaching quickly, and the rolls of the starving and sick growing daily, we can waste no time. Aid workers must have full access to do their jobs now. The world cannot sit by watching innocents die.
Monday, October 28, 2013
SEC SANCTIONS 3 ADVISORY FIRMS FOR NOT MEETING STANDARDS WHEN MAINTAINING CLIENT FUNDS OR SECURITIES
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today sanctioned three SEC-registered investment advisory firms for violating the “custody rule” that requires them to meet certain standards when maintaining custody of their clients’ funds or securities.
The majority of investment advisers do not maintain custody of client assets, which are instead held by qualified third-party custodians like a bank or broker-dealer. Investment advisers must comply with the custody rule if they have legal ownership or access to client assets or an arrangement permitting them to withdraw client assets. The Commission amended the custody rule in 2010 to strengthen investor protections by requiring all advisers with custody to undergo an annual “surprise exam” to verify the existence of client assets. Advisers also must have a reasonable basis to believe that a qualified custodian is sending account statements to fund investors at least quarterly. Advisers with custody of hedge fund or other private fund assets may alternatively comply with the custody rule through fund audits by a PCAOB-registered auditor, after which financial statements must be delivered to investors.
SEC investigations following referrals by agency examiners found that New York-based Further Lane Asset Management, Massachusetts-based GW & Wade, and Minneapolis-based Knelman Asset Management Group failed to maintain client assets with a qualified custodian or engage an independent public accountant to conduct surprise exams. The firms also committed other violations of the federal securities laws. Each firm has agreed to settle the SEC’s charges.
“The heart of the relationship between advisers and their customers is the safety of client assets. Surprise exams or procedures associated with audited financial statements provide additional safeguards against assets being stolen or misused,” said Andrew Ceresney, co-director of the SEC’s Division of Enforcement. “These firms failed to comply with their custody rule obligations, and other firms who hold client assets should take notice that we will vigorously enforce such requirements.”
The SEC issued orders instituting settled administrative proceedings against the three firms for deficiencies related to the custody rule – Rule 206(4)-2 under Section 206(4) of the Investment Advisers Act of 1940.
According to the SEC’s order against Further Lane Asset Management (FLAM) and its CEO Jose Miguel Araiz, despite maintaining custody of assets of hedge funds managed by FLAM and affiliated adviser Osprey Group Inc. (OGI), Araiz and FLAM failed to arrange an annual surprise examination to verify the funds’ assets. The funds’ investors also did not receive quarterly account statements from a qualified custodian of the funds as required by the custody rule. FLAM and Araiz additionally engaged in fraud related to a fund-of-funds under their control. They caused the fund to acquire a promissory note from another entity that Araiz owned without informing investors in writing that the fund might acquire related party promissory notes or otherwise materially deviate from its fund-of-funds investment strategy. The order details other securities law violations, including FLAM and OGI engaging in securities transactions with advisory clients on a principal basis without providing prior written disclosure to clients or obtaining their consent. In consenting to a censure and cease-and-desist order, Araiz, FLAM and OGI agreed to pay disgorgement and prejudgment interest totaling $347,122. Araiz additionally agreed to pay a $150,000 penalty and be suspended from the industry for one year. FLAM consented to comply with certain compliance-based undertakings.
According to the SEC’s order against GW & Wade, the firm was subject to the custody rule in part due to its practice of using pre-signed letters of authorization and then transferring client funds without always obtaining contemporaneous client signatures. The firm did not have proper safeguards as a custodian of client funds, and failed to identify itself as a custodian to its independent auditors or in public disclosures. This practice exposed clients to potential harm and ultimately contributed to a third-party fraud in one client account in June 2012, when someone hacked into the client’s e-mail account and posed as the client. The imposter requested that GW & Wade wire the client’s funds to a foreign bank, and the scheme was not discovered until three separate wires totaling $290,000 had been sent to the foreign bank. The firm reimbursed the client. GW & Wade additionally made inaccurate Form ADV disclosures about the amount of client assets in custody and its custody arrangements. In consenting to a censure and cease-and-desist order, GW & Wade agreed to pay a $250,000 penalty.
According to the SEC’s order against Knelman Asset Management Group (KAMG) and its CEO and chief compliance officer Irving P. Knelman, KAMG had custody of the assets of a fund of private equity funds named Rancho Partners I. However, Rancho’s funds were not subject to annual surprise examinations and Rancho members did not receive quarterly account statements from a qualified custodian. Alternatively, Rancho’s financial statements were not audited or distributed to Rancho members. The order details other violations of the securities laws, including improper discretionary cash distributions to Rancho members, failure to adopt and implement controls designed to safeguard client assets, and failure to conduct annual compliance reviews. In consenting to a censure and cease-and-desist order, KAMG agreed to pay a $60,000 penalty. Knelman agreed to pay a $75,000 penalty and be barred from acting as a chief compliance officer for at least three years. KAMG and Knelman also consented to compliance training and other compliance-based undertakings.
The SEC’s investigation of Further Lane Asset Management was conducted by Asset Management Unit members Mark D. Salzberg, Robert Guzman, Igor Rozenblit, and Valerie A. Szczepanik as well as Daphna A. Waxman and Roseann Daniello in the New York Regional Office. The preceding examination was conducted by Raymond Slezak, Michael O’Donnell, Charles Hooper, and Dave Miller of the New York office.
The SEC’s investigation of GW & Wade was conducted by Asset Management Unit members Mayeti Gametchu and Kevin Kelcourse in the Boston Regional Office. The preceding SEC examination was conducted by Raymond Tan, Matthew Keating, John Clark, and Melissa Clough of the Boston office.
The SEC’s investigation of Knelman Asset Management Group was conducted by Asset Management Unit member Paul Montoya as well as Ruta Dudenas and Delia Helpingstine of the Chicago Regional Office. The preceding examination was conducted by Vanessa Horton, Kristin Dryer, and Steven Levine of the Chicago office.
The Securities and Exchange Commission today sanctioned three SEC-registered investment advisory firms for violating the “custody rule” that requires them to meet certain standards when maintaining custody of their clients’ funds or securities.
The majority of investment advisers do not maintain custody of client assets, which are instead held by qualified third-party custodians like a bank or broker-dealer. Investment advisers must comply with the custody rule if they have legal ownership or access to client assets or an arrangement permitting them to withdraw client assets. The Commission amended the custody rule in 2010 to strengthen investor protections by requiring all advisers with custody to undergo an annual “surprise exam” to verify the existence of client assets. Advisers also must have a reasonable basis to believe that a qualified custodian is sending account statements to fund investors at least quarterly. Advisers with custody of hedge fund or other private fund assets may alternatively comply with the custody rule through fund audits by a PCAOB-registered auditor, after which financial statements must be delivered to investors.
SEC investigations following referrals by agency examiners found that New York-based Further Lane Asset Management, Massachusetts-based GW & Wade, and Minneapolis-based Knelman Asset Management Group failed to maintain client assets with a qualified custodian or engage an independent public accountant to conduct surprise exams. The firms also committed other violations of the federal securities laws. Each firm has agreed to settle the SEC’s charges.
“The heart of the relationship between advisers and their customers is the safety of client assets. Surprise exams or procedures associated with audited financial statements provide additional safeguards against assets being stolen or misused,” said Andrew Ceresney, co-director of the SEC’s Division of Enforcement. “These firms failed to comply with their custody rule obligations, and other firms who hold client assets should take notice that we will vigorously enforce such requirements.”
The SEC issued orders instituting settled administrative proceedings against the three firms for deficiencies related to the custody rule – Rule 206(4)-2 under Section 206(4) of the Investment Advisers Act of 1940.
According to the SEC’s order against Further Lane Asset Management (FLAM) and its CEO Jose Miguel Araiz, despite maintaining custody of assets of hedge funds managed by FLAM and affiliated adviser Osprey Group Inc. (OGI), Araiz and FLAM failed to arrange an annual surprise examination to verify the funds’ assets. The funds’ investors also did not receive quarterly account statements from a qualified custodian of the funds as required by the custody rule. FLAM and Araiz additionally engaged in fraud related to a fund-of-funds under their control. They caused the fund to acquire a promissory note from another entity that Araiz owned without informing investors in writing that the fund might acquire related party promissory notes or otherwise materially deviate from its fund-of-funds investment strategy. The order details other securities law violations, including FLAM and OGI engaging in securities transactions with advisory clients on a principal basis without providing prior written disclosure to clients or obtaining their consent. In consenting to a censure and cease-and-desist order, Araiz, FLAM and OGI agreed to pay disgorgement and prejudgment interest totaling $347,122. Araiz additionally agreed to pay a $150,000 penalty and be suspended from the industry for one year. FLAM consented to comply with certain compliance-based undertakings.
According to the SEC’s order against GW & Wade, the firm was subject to the custody rule in part due to its practice of using pre-signed letters of authorization and then transferring client funds without always obtaining contemporaneous client signatures. The firm did not have proper safeguards as a custodian of client funds, and failed to identify itself as a custodian to its independent auditors or in public disclosures. This practice exposed clients to potential harm and ultimately contributed to a third-party fraud in one client account in June 2012, when someone hacked into the client’s e-mail account and posed as the client. The imposter requested that GW & Wade wire the client’s funds to a foreign bank, and the scheme was not discovered until three separate wires totaling $290,000 had been sent to the foreign bank. The firm reimbursed the client. GW & Wade additionally made inaccurate Form ADV disclosures about the amount of client assets in custody and its custody arrangements. In consenting to a censure and cease-and-desist order, GW & Wade agreed to pay a $250,000 penalty.
According to the SEC’s order against Knelman Asset Management Group (KAMG) and its CEO and chief compliance officer Irving P. Knelman, KAMG had custody of the assets of a fund of private equity funds named Rancho Partners I. However, Rancho’s funds were not subject to annual surprise examinations and Rancho members did not receive quarterly account statements from a qualified custodian. Alternatively, Rancho’s financial statements were not audited or distributed to Rancho members. The order details other violations of the securities laws, including improper discretionary cash distributions to Rancho members, failure to adopt and implement controls designed to safeguard client assets, and failure to conduct annual compliance reviews. In consenting to a censure and cease-and-desist order, KAMG agreed to pay a $60,000 penalty. Knelman agreed to pay a $75,000 penalty and be barred from acting as a chief compliance officer for at least three years. KAMG and Knelman also consented to compliance training and other compliance-based undertakings.
The SEC’s investigation of Further Lane Asset Management was conducted by Asset Management Unit members Mark D. Salzberg, Robert Guzman, Igor Rozenblit, and Valerie A. Szczepanik as well as Daphna A. Waxman and Roseann Daniello in the New York Regional Office. The preceding examination was conducted by Raymond Slezak, Michael O’Donnell, Charles Hooper, and Dave Miller of the New York office.
The SEC’s investigation of GW & Wade was conducted by Asset Management Unit members Mayeti Gametchu and Kevin Kelcourse in the Boston Regional Office. The preceding SEC examination was conducted by Raymond Tan, Matthew Keating, John Clark, and Melissa Clough of the Boston office.
The SEC’s investigation of Knelman Asset Management Group was conducted by Asset Management Unit member Paul Montoya as well as Ruta Dudenas and Delia Helpingstine of the Chicago Regional Office. The preceding examination was conducted by Vanessa Horton, Kristin Dryer, and Steven Levine of the Chicago office.
APARTMENT OWNER AND STAFF CHARGED WITH DISCRIMINATION AGAINST FAMILIES WITH CHILDREN
FROM: U.S. JUSTICE DEPARTMENT
Friday, October 25, 2013
Justice Department Charges California Apartment Owner and Staff with Discrimination Against Families with Children
The Justice Department today filed a lawsuit against the owner and operators of a Fremont, Calif., apartment complex, alleging that they had discriminated against families with children in violation of the Fair Housing Act by prohibiting children from playing in the common grassy areas of the complex.
“Families with children should have the same ability to enjoy their homes as all other tenants,” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division.
The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that the owners and rental staff of Woodland Garden Apartments, a 37 unit apartment complex, adopted and enforced a policy prohibiting children from playing outside in the common grassy areas of the complex. The complex is owned by Fred Martin and managed by Fatima Rivera, both of whom are named in the suit. Alfredo Rivera, a former maintenance worker who participated in enforcing the policy, is also named as a defendant in the suit.
This lawsuit arose as a result of complaints filed with the Department of Housing and Urban Development (HUD) by five families with children who lived at Woodland Garden Apartments, and Project Sentinel, a non-profit organization based in Santa Clara, Calif., that promotes fair housing. After HUD investigated the complaints, it issued a charge of discrimination and the matter was referred to the Justice Department.
“Housing providers cannot impose more restrictive policies on families with children or evict them simply because their children leave the unit,” said Bryan Greene, HUD Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and DOJ are committed to enforcing the fair housing rights of all people, including families with children.”
The lawsuit seeks a court order prohibiting future discrimination by the defendant, monetary damages for those harmed by the defendant’s actions and a civil penalty.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
Friday, October 25, 2013
Justice Department Charges California Apartment Owner and Staff with Discrimination Against Families with Children
The Justice Department today filed a lawsuit against the owner and operators of a Fremont, Calif., apartment complex, alleging that they had discriminated against families with children in violation of the Fair Housing Act by prohibiting children from playing in the common grassy areas of the complex.
“Families with children should have the same ability to enjoy their homes as all other tenants,” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division.
The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that the owners and rental staff of Woodland Garden Apartments, a 37 unit apartment complex, adopted and enforced a policy prohibiting children from playing outside in the common grassy areas of the complex. The complex is owned by Fred Martin and managed by Fatima Rivera, both of whom are named in the suit. Alfredo Rivera, a former maintenance worker who participated in enforcing the policy, is also named as a defendant in the suit.
This lawsuit arose as a result of complaints filed with the Department of Housing and Urban Development (HUD) by five families with children who lived at Woodland Garden Apartments, and Project Sentinel, a non-profit organization based in Santa Clara, Calif., that promotes fair housing. After HUD investigated the complaints, it issued a charge of discrimination and the matter was referred to the Justice Department.
“Housing providers cannot impose more restrictive policies on families with children or evict them simply because their children leave the unit,” said Bryan Greene, HUD Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and DOJ are committed to enforcing the fair housing rights of all people, including families with children.”
The lawsuit seeks a court order prohibiting future discrimination by the defendant, monetary damages for those harmed by the defendant’s actions and a civil penalty.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
Sunday, October 27, 2013
SECRETARY OF STATE KERRY'S STATEMENT REGARDING RELEASE OF KEVIN SUTAY FROM FARC
FROM: U.S. STATE DEPARTMENT
Release of Kevin Sutay From Captivity by the FARC
Press Statement
John Kerry
Secretary of State
Washington, DC
October 27, 2013
We welcome the release today of Kevin Scott Sutay from captivity at the hands of the FARC.
The United States is profoundly grateful to the Government of Colombia and commends its tireless efforts to secure his release. We offer special thanks to President Juan Manuel Santos for his assistance.
We also appreciate the contributions of the International Committee of the Red Cross, and the Governments of Norway and Cuba in securing Mr. Sutay’s freedom. And we thank the Reverend Jesse Jackson for his efforts in consistently advocating for Mr. Sutay’s release.
Release of Kevin Sutay From Captivity by the FARC
Press Statement
John Kerry
Secretary of State
Washington, DC
October 27, 2013
We welcome the release today of Kevin Scott Sutay from captivity at the hands of the FARC.
The United States is profoundly grateful to the Government of Colombia and commends its tireless efforts to secure his release. We offer special thanks to President Juan Manuel Santos for his assistance.
We also appreciate the contributions of the International Committee of the Red Cross, and the Governments of Norway and Cuba in securing Mr. Sutay’s freedom. And we thank the Reverend Jesse Jackson for his efforts in consistently advocating for Mr. Sutay’s release.
PRESIDENT OBAMA'S WEEKLY ADDRESS ON OCTOBER 26, 2013
FROM: THE WHITE HOUSE
Weekly Address: Enrolling in the Affordable Care Act Marketplace
WASHINGTON, DC— In this week’s address, President Obama discussed the launch of the Health Insurance Marketplace for the Affordable Care Act, which gives millions of Americans the opportunity to have access to affordable and reliable healthcare—many for the first time.
Remarks for President Barack Obama
Weekly Address
The White House
October 26, 2013
Hi, everybody. A few weeks ago, we launched an important new part of the Affordable Care Act.
It’s called the Marketplace. And for Americans without health insurance, and Americans who buy insurance on their own because they can’t get it at work, it’s a very big deal.
If you’re one of those people, the Affordable Care Act makes you part of a big group plan for the first time. The Marketplace is where you can apply and shop for affordable new health insurance choices. It gathers insurers under one system to compete for your business. And that choice and competition have actually helped bring prices down.
Ultimately, the easiest way to buy insurance in this Marketplace will be a new website, HealthCare.gov. But as you may have heard, the site isn’t working the way it’s supposed to yet. That’s frustrating for all of us who have worked so hard to make sure everyone who needs it gets health care. And it’s especially frustrating for the Americans who’ve been trying to get covered. The site has been visited more than 20 million times so far. Nearly 700,000 people have applied for coverage already. That proves just how much demand there is for these new quality, affordable health care choices. And that’s why, in the coming weeks, we are going to get it working as smoothly as it’s supposed to. We’ve got people working overtime, 24/7, to boost capacity and address these problems, every single day.
But even as we improve the website, remember that the website isn’t the only way to apply for coverage under these new plans. We’ve updated HealthCare.gov to offer more information about enrolling over the phone, by mail, or in person with a specially-trained navigator who can help answer your questions. Just call 1-800-318-2596 or visit LocalHelp.HealthCare.gov. Don’t worry – these plans will not sell out. We’re only a few weeks into a six-month open enrollment period, and everyone who wants insurance through the Marketplace will get it.
Some people have poked fun at me this week for sounding like an insurance salesman. And that’s okay. I’d still be out there championing this law even if the website were perfect. I’ll never stop fighting to help more hardworking Americans know the economic security of health care. That’s something we should all want.
That’s why it’s also interesting to see Republicans in Congress expressing so much concern that people are having trouble buying health insurance through the new website – especially considering they’ve spent the last few years so obsessed with denying those same people access to health insurance that they just shut down the government and threatened default over it.
As I’ve said many times before, I’m willing to work with anyone, on any idea, who’s actually willing to make this law perform better. But it’s well past the time for folks to stop rooting for its failure. Because hardworking, middle-class families are rooting for its success.
The Affordable Care Act gives people who’ve been stuck with sky-high premiums because of preexisting conditions the chance to get affordable insurance for the first time.
This law means that women can finally buy coverage that doesn’t charge them higher premiums than men for the same care.
And everyone who already has health insurance, whether through your employer, Medicare, or Medicaid, will keep the benefits and protections this law has already put in place. Three million more young adults have health insurance on their parents’ plans because of the Affordable Care Act. More than six million people on Medicare have saved an average of $1,000 on their prescription medicine because of the Affordable Care Act. Last year, more than 8 million Americans received half a billion dollars in refunds from their insurers because of the Affordable Care Act. And for tens of millions of women, preventive care like mammograms and birth control are free because of the Affordable Care Act.
That’s all part of this law, and it’s here to stay.
We did not fight so hard for this reform for so many years just to build a website. We did it to free millions of American families from the awful fear that one illness or injury – to yourself or your child – might cost you everything you’d worked so hard to build. We did it to cement the principle that in this country, the security of health care is not a privilege for a fortunate few, but a right for every one of us to enjoy. We have already delivered on part of that promise, and we will not rest until the work is done.
Thank you, and have a great weekend.
Weekly Address: Enrolling in the Affordable Care Act Marketplace
WASHINGTON, DC— In this week’s address, President Obama discussed the launch of the Health Insurance Marketplace for the Affordable Care Act, which gives millions of Americans the opportunity to have access to affordable and reliable healthcare—many for the first time.
Remarks for President Barack Obama
Weekly Address
The White House
October 26, 2013
Hi, everybody. A few weeks ago, we launched an important new part of the Affordable Care Act.
It’s called the Marketplace. And for Americans without health insurance, and Americans who buy insurance on their own because they can’t get it at work, it’s a very big deal.
If you’re one of those people, the Affordable Care Act makes you part of a big group plan for the first time. The Marketplace is where you can apply and shop for affordable new health insurance choices. It gathers insurers under one system to compete for your business. And that choice and competition have actually helped bring prices down.
Ultimately, the easiest way to buy insurance in this Marketplace will be a new website, HealthCare.gov. But as you may have heard, the site isn’t working the way it’s supposed to yet. That’s frustrating for all of us who have worked so hard to make sure everyone who needs it gets health care. And it’s especially frustrating for the Americans who’ve been trying to get covered. The site has been visited more than 20 million times so far. Nearly 700,000 people have applied for coverage already. That proves just how much demand there is for these new quality, affordable health care choices. And that’s why, in the coming weeks, we are going to get it working as smoothly as it’s supposed to. We’ve got people working overtime, 24/7, to boost capacity and address these problems, every single day.
But even as we improve the website, remember that the website isn’t the only way to apply for coverage under these new plans. We’ve updated HealthCare.gov to offer more information about enrolling over the phone, by mail, or in person with a specially-trained navigator who can help answer your questions. Just call 1-800-318-2596 or visit LocalHelp.HealthCare.gov. Don’t worry – these plans will not sell out. We’re only a few weeks into a six-month open enrollment period, and everyone who wants insurance through the Marketplace will get it.
Some people have poked fun at me this week for sounding like an insurance salesman. And that’s okay. I’d still be out there championing this law even if the website were perfect. I’ll never stop fighting to help more hardworking Americans know the economic security of health care. That’s something we should all want.
That’s why it’s also interesting to see Republicans in Congress expressing so much concern that people are having trouble buying health insurance through the new website – especially considering they’ve spent the last few years so obsessed with denying those same people access to health insurance that they just shut down the government and threatened default over it.
As I’ve said many times before, I’m willing to work with anyone, on any idea, who’s actually willing to make this law perform better. But it’s well past the time for folks to stop rooting for its failure. Because hardworking, middle-class families are rooting for its success.
The Affordable Care Act gives people who’ve been stuck with sky-high premiums because of preexisting conditions the chance to get affordable insurance for the first time.
This law means that women can finally buy coverage that doesn’t charge them higher premiums than men for the same care.
And everyone who already has health insurance, whether through your employer, Medicare, or Medicaid, will keep the benefits and protections this law has already put in place. Three million more young adults have health insurance on their parents’ plans because of the Affordable Care Act. More than six million people on Medicare have saved an average of $1,000 on their prescription medicine because of the Affordable Care Act. Last year, more than 8 million Americans received half a billion dollars in refunds from their insurers because of the Affordable Care Act. And for tens of millions of women, preventive care like mammograms and birth control are free because of the Affordable Care Act.
That’s all part of this law, and it’s here to stay.
We did not fight so hard for this reform for so many years just to build a website. We did it to free millions of American families from the awful fear that one illness or injury – to yourself or your child – might cost you everything you’d worked so hard to build. We did it to cement the principle that in this country, the security of health care is not a privilege for a fortunate few, but a right for every one of us to enjoy. We have already delivered on part of that promise, and we will not rest until the work is done.
Thank you, and have a great weekend.
SECRTARY OF STATE KERRY'S STATEMENT ON INTERNATIONAL RELIGIOUS FREEDOM DAY
FROM: U.S. STATE DEPARTMENT
International Religious Freedom Day
Press Statement
John Kerry
Secretary of State
Washington, DC
October 27, 2013
Freedom of religion is a core American value, but it is not an American invention. It is the birthright of every individual, enshrined in the Universal Declaration of Human Rights. The freedom of religion is a priority for President Obama, as it is for me as Secretary of State, because it is essential to human dignity and individual liberty, and it remains an integral part of our global diplomatic engagement.
We call on the international community – governments, civil society, and citizens alike – to speak out against religious persecution, and to stand unequivocally for religious freedom.
We do so humbly, knowing that our own journey as Americans was not without challenge, that the Pilgrims who fled across the ocean to escape religious persecution and landed in my home state of Massachusetts, would soon witness congregations break away and found Connecticut and Rhode Island in search of their own freedom to worship.
We also know that centuries later, we would see Catholics persecuted simply for being who they were and believing what they believed. But even as we are humble about the challenges of our history, we are proud that no place has ever welcomed so many different faiths to worship so freely as here in the United States of America.
This is why we believe so deeply that governments everywhere must fulfill their responsibility to protect religious freedom equally for all and to ensure that those who claim religion as justification for criminal acts do not walk away with impunity.
Nations that protect this fundamental freedom will have the partnership of the United States and the abiding commitment of the American people as we seek to advance freedom of religion worldwide.
International Religious Freedom Day
Press Statement
John Kerry
Secretary of State
Washington, DC
October 27, 2013
Freedom of religion is a core American value, but it is not an American invention. It is the birthright of every individual, enshrined in the Universal Declaration of Human Rights. The freedom of religion is a priority for President Obama, as it is for me as Secretary of State, because it is essential to human dignity and individual liberty, and it remains an integral part of our global diplomatic engagement.
We call on the international community – governments, civil society, and citizens alike – to speak out against religious persecution, and to stand unequivocally for religious freedom.
We do so humbly, knowing that our own journey as Americans was not without challenge, that the Pilgrims who fled across the ocean to escape religious persecution and landed in my home state of Massachusetts, would soon witness congregations break away and found Connecticut and Rhode Island in search of their own freedom to worship.
We also know that centuries later, we would see Catholics persecuted simply for being who they were and believing what they believed. But even as we are humble about the challenges of our history, we are proud that no place has ever welcomed so many different faiths to worship so freely as here in the United States of America.
This is why we believe so deeply that governments everywhere must fulfill their responsibility to protect religious freedom equally for all and to ensure that those who claim religion as justification for criminal acts do not walk away with impunity.
Nations that protect this fundamental freedom will have the partnership of the United States and the abiding commitment of the American people as we seek to advance freedom of religion worldwide.
MAN PLEADS GUILTY IN STOLEN PRISONER NAMES IDENTITY FRAUD
FROM: U.S. JUSTICE DEPARTMENT
Friday, October 25, 2013
Alabama Man Pleads Guilty to His Involvement in an Identity Theft Scheme Using Stolen Prisoner Names and a Corrupt Postal Employee
Harvey James pleaded guilty to one count of mail fraud and one count of aggravated identity theft for his role in a Stolen Identity Refund Fraud (“SIRF”) scheme , announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr.
According to court documents and court proceedings, Harvey James obtained stolen identities from individuals who had access to inmate information from the Alabama Department of Corrections. For several years, James, his sister, Jacqueline Slaton, and others used those inmate names to file false federal and state tax returns. James and Slaton directed some of the false refunds to be sent to either prepaid debit cards or issued via check. In 2012, James and Slaton enlisted the assistance of U.S. Postal Service mail carrier Vernon Harrison in the scheme. Harrison, who provided James and his co-conspirators with mailing addresses to which they could mail debit cards, retrieved the debit cards from the mail and delivered them to James and his co-conspirators. In exchange, Harrison received substantial payments. Between 2010 and 2012, James and his co-conspirators filed hundreds of federal and state income tax returns that claimed over $1,000,000 in fraudulent tax refunds.
Sentencing has not yet been scheduled. James faces a minimum sentence of two years in prison and a maximum sentence of twenty-two years in prison, three years of supervised release, restitution and a maximum fine of $250,000. Slaton already pleaded guilty and was sentenced to 70 months in prison. In July 2013, Harrison was found guilty by a jury for his role in the scheme. Harrison will be sentenced on Oct. 31, 2013.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Friday, October 25, 2013
Alabama Man Pleads Guilty to His Involvement in an Identity Theft Scheme Using Stolen Prisoner Names and a Corrupt Postal Employee
Harvey James pleaded guilty to one count of mail fraud and one count of aggravated identity theft for his role in a Stolen Identity Refund Fraud (“SIRF”) scheme , announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr.
According to court documents and court proceedings, Harvey James obtained stolen identities from individuals who had access to inmate information from the Alabama Department of Corrections. For several years, James, his sister, Jacqueline Slaton, and others used those inmate names to file false federal and state tax returns. James and Slaton directed some of the false refunds to be sent to either prepaid debit cards or issued via check. In 2012, James and Slaton enlisted the assistance of U.S. Postal Service mail carrier Vernon Harrison in the scheme. Harrison, who provided James and his co-conspirators with mailing addresses to which they could mail debit cards, retrieved the debit cards from the mail and delivered them to James and his co-conspirators. In exchange, Harrison received substantial payments. Between 2010 and 2012, James and his co-conspirators filed hundreds of federal and state income tax returns that claimed over $1,000,000 in fraudulent tax refunds.
Sentencing has not yet been scheduled. James faces a minimum sentence of two years in prison and a maximum sentence of twenty-two years in prison, three years of supervised release, restitution and a maximum fine of $250,000. Slaton already pleaded guilty and was sentenced to 70 months in prison. In July 2013, Harrison was found guilty by a jury for his role in the scheme. Harrison will be sentenced on Oct. 31, 2013.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
REDUCING WASTEFUL CHARGE-CARRIER INTERACTIONS THAT COMPETE WITH LIGHT PRODUCTION
FROM: LOS ALAMOS NATIONAL LABORATORY
Nanoscale Engineering Boosts Performance of Quantum Dot Light Emitting Diodes
Making the light at the end of the tunnel more efficient
LOS ALAMOS, N.M., October 25, 2013—Dramatic advances in the field of quantum dot light emitting diodes (QD-LEDs) could come from recent work by the Nanotechnology and Advanced Spectroscopy team at Los Alamos National Laboratory.
Quantum dots are nano-sized semiconductor particles whose emission color can be tuned by simply changing their dimensions. They feature near-unity emission quantum yields and narrow emission bands, which result in excellent color purity. The new research aims to improve QD-LEDs by using a new generation of engineered quantum dots tailored specifically to have reduced wasteful charge-carrier interactions that compete with the production of light.
“QD-LEDs can potentially provide many advantages over standard lighting technologies, such as incandescent bulbs, especially in the areas of efficiency, operating lifetime and the color quality of the emitted light,” said Victor Klimov of Los Alamos.
Incandescent bulbs, known for converting only 10 percent of electrical energy into light and losing 90 percent of it to heat, are rapidly being replaced worldwide by less wasteful fluorescent light sources. However, the most efficient approach to lighting is direct conversion of electricity into light using electroluminescent devices such as LEDs.
Due to spectrally narrow, tunable emission, and ease of processing, colloidal QDs are attractive materials for LED technologies. In the last decade, vigorous research in QD-LEDs has led to dramatic improvements in their performance, to the point where it nearly meets the requirements for commercial products. One outstanding challenge in the field is the so-called efficiency roll-off (known also as “droop”), that is, the drop in efficiency at high currents.
“This ‘droop’ problem complicates achieving practical levels of brightness required especially for lighting applications,” said Wan Ki Bae, a postdoctoral researcher on the nanotech team.
By conducting spectroscopic studies on operational QD-LEDs, the Los Alamos researchers have established that the main factor responsible for the reduction in efficiency is an effect called Auger recombination. In this process, instead of being emitted as a photon, the energy from recombination of an excited electron and hole is transferred to the excess charge and subsequently dissipated as heat.
A paper, “Controlling the influence of Auger recombination on the performance of quantum-dot light-emitting diodes” is being published Oct. 25 in Nature Communications. In addition, an overview article on the field of quantum-dot light-emitting diodes and specifically the role of Auger effects appeared in the September Materials Research Society Bulletin, Volume 38, Issue 09, also authored by researchers of the Los Alamos nanotech team.
Not only has this work identified the mechanism for efficiency losses in QD-LEDs, Klimov said, but it has also demonstrated two different nano-engineering strategies for circumventing the problem in QD-LEDs based on bright quantum dots made of cadmium selenide cores overcoated with cadmium sulfide shells.
The first approach is to reduce the efficiency of Auger recombination itself, which can be done by incorporating a thin layer of cadmium selenide sulfide alloy at the core/shell interface of each quantum dot.
The other approach attacks the problem of charge imbalance by better controlling the flow of extra electrons into the dots themselves. This can be accomplished by coating each dot in a thin layer of zinc cadmium sulfide, which selectively impedes electron injection. According to Jeffrey Pietryga, a chemist in the nanotech team, “This fine tuning of electron and hole injection currents helps maintain the dots in a charge-neutral state and thus prevents activation of Auger recombination.”
Nanoscale Engineering Boosts Performance of Quantum Dot Light Emitting Diodes
Making the light at the end of the tunnel more efficient
LOS ALAMOS, N.M., October 25, 2013—Dramatic advances in the field of quantum dot light emitting diodes (QD-LEDs) could come from recent work by the Nanotechnology and Advanced Spectroscopy team at Los Alamos National Laboratory.
Quantum dots are nano-sized semiconductor particles whose emission color can be tuned by simply changing their dimensions. They feature near-unity emission quantum yields and narrow emission bands, which result in excellent color purity. The new research aims to improve QD-LEDs by using a new generation of engineered quantum dots tailored specifically to have reduced wasteful charge-carrier interactions that compete with the production of light.
“QD-LEDs can potentially provide many advantages over standard lighting technologies, such as incandescent bulbs, especially in the areas of efficiency, operating lifetime and the color quality of the emitted light,” said Victor Klimov of Los Alamos.
Incandescent bulbs, known for converting only 10 percent of electrical energy into light and losing 90 percent of it to heat, are rapidly being replaced worldwide by less wasteful fluorescent light sources. However, the most efficient approach to lighting is direct conversion of electricity into light using electroluminescent devices such as LEDs.
Due to spectrally narrow, tunable emission, and ease of processing, colloidal QDs are attractive materials for LED technologies. In the last decade, vigorous research in QD-LEDs has led to dramatic improvements in their performance, to the point where it nearly meets the requirements for commercial products. One outstanding challenge in the field is the so-called efficiency roll-off (known also as “droop”), that is, the drop in efficiency at high currents.
“This ‘droop’ problem complicates achieving practical levels of brightness required especially for lighting applications,” said Wan Ki Bae, a postdoctoral researcher on the nanotech team.
By conducting spectroscopic studies on operational QD-LEDs, the Los Alamos researchers have established that the main factor responsible for the reduction in efficiency is an effect called Auger recombination. In this process, instead of being emitted as a photon, the energy from recombination of an excited electron and hole is transferred to the excess charge and subsequently dissipated as heat.
A paper, “Controlling the influence of Auger recombination on the performance of quantum-dot light-emitting diodes” is being published Oct. 25 in Nature Communications. In addition, an overview article on the field of quantum-dot light-emitting diodes and specifically the role of Auger effects appeared in the September Materials Research Society Bulletin, Volume 38, Issue 09, also authored by researchers of the Los Alamos nanotech team.
Not only has this work identified the mechanism for efficiency losses in QD-LEDs, Klimov said, but it has also demonstrated two different nano-engineering strategies for circumventing the problem in QD-LEDs based on bright quantum dots made of cadmium selenide cores overcoated with cadmium sulfide shells.
The first approach is to reduce the efficiency of Auger recombination itself, which can be done by incorporating a thin layer of cadmium selenide sulfide alloy at the core/shell interface of each quantum dot.
The other approach attacks the problem of charge imbalance by better controlling the flow of extra electrons into the dots themselves. This can be accomplished by coating each dot in a thin layer of zinc cadmium sulfide, which selectively impedes electron injection. According to Jeffrey Pietryga, a chemist in the nanotech team, “This fine tuning of electron and hole injection currents helps maintain the dots in a charge-neutral state and thus prevents activation of Auger recombination.”
$20.5 MILLION AWARDED FOR MAKE IT IN AMERICA CHALLENGE GRANTS
FROM: U.S. LABOR DEPARTMENT
Obama administration awards $20.5 million for Make it in America Challenge grants to spur business investment and job creation
U.S. Departments of Commerce and Labor, as well as Delta Regional Authority, to fund 10 projects for worker training, domestic and foreign business investment, and supply chain access
WASHINGTON — U.S. Secretary of Commerce Penny S. Pritzker, U.S. Secretary of Labor Thomas E. Perez and Delta Regional Authority Federal Co-Chairman Christopher A. Masingill today announced the 10 winners of the Make it in America Challenge, an Obama administration initiative to accelerate job creation and encourage business investment in the United States. The grantees are receiving a total of $20,533,409 for projects supporting regional economic development, advanced skills training, greater supply chain access and other enhancements. The programs are designed to encourage U.S. companies to keep, expand or reshore their manufacturing operations — and jobs — in America, and to entice foreign companies to build facilities and make their products here.
The U.S. Department of Commerce's Economic Development Administration, the U.S. Department of Labor's Employment and Training Administration, and the Delta Regional Authority are funding the winning proposals. Additionally, Commerce's National Institute of Standards and Technology Manufacturing Extension Partnership plans to make awards in early FY2014 in support of this initiative.
"Making smart investments in a skilled workforce are critical to continuing our recovery and unleashing the economy's full potential," said Secretary of Labor Perez. "In an increasingly sophisticated economy, equipping workers with the skills they need to succeed on the job isn't just a workforce development issue, but also an economic development issue and the partnerships funded through these Make it in America Challenge grants are helping to lead the way."
"Supporting innovative, regionally-based strategies that create an environment that encourages businesses to invest in the U.S. is vital to enhancing our nation's global competitiveness," said Secretary of Commerce Pritzker. "These Make It In America Challenge grants reward promising ideas that will advance the Obama administration's goals of improving our economy by strengthening our manufacturing sector and making our country a more attractive place to do business."
The 10 winners of the Make it in America Challenge will pursue projects in nine states. Descriptions of each project, including grant amount breakdowns by agency are available at http://www.eda.gov/challenges/MakeItInAmerica/winners.htm.
The Midcoast Regional Redevelopment Authority of Brunswick, Maine ($2,050,000)
The Center for Automotive Research of Ann Arbor, Mich. ($1,471,800)
The Mississippi State University of Starkville, Miss. ($1,931,935)
The Board of Curators at the University of Missouri, Columbia, Mo. ($1,842,977)
N.E.O. Foundation of Cleveland, Ohio ($1,796,867)
The Buckeye Hills-Hocking Valley Regional Development District of Reno, Ohio ($1,700,844)
The Mid-Willamette Valley Council of Governments of Salem, Ore. ($1,714,376)
The SEDA Council of Governments of Lewisburg, Pa. ($1,800,000)
Clemson University of Clemson, S.C.: 2 projects (construction and non-construction) ($3,549,610)
The Innovate Washington of Spokane, Wash. ($2,675,000)
The Make it in America Challenge was issued on March 18, 2013. Under President Obama's leadership, federal agencies are collaborating more effectively to make smart investments that provide stakeholders with a seamless process for applying for federal resources. To that end, the Make it in America Challenge allowed applicants to submit one application to fund projects that: help distressed regions build on existing assets, promote a competitive environment for foreign-owned and domestic firms to establish and grow their U.S. operations, create jobs and develop a skilled workforce for specific industries.
A forthcoming announcement will be made regarding additional funding from the National Institute of Standards and Technology Manufacturing Extension Partnership, which will focus on developing greater connectivity of regional supply chains in addition to assisting small- and medium-sized enterprises.
The Make it in America Challenge builds on the United States' significant competitive advantages — from a strong business climate, to a highly-skilled and productive workforce — that make it a profitable place for businesses to invest. Investing in businesses and production here can help put more Americans back to work. Some of the ways in which the administration has already helped American workers and businesses thrive include: enhancing the general business climate, securing access to markets for U.S. exports, providing financial and technical support for companies to grow and expand, providing funding to improve education and training opportunities to develop a skilled workforce, and enforcing global trade rules to ensure that American businesses and workers are competing on a level playing field.
Obama administration awards $20.5 million for Make it in America Challenge grants to spur business investment and job creation
U.S. Departments of Commerce and Labor, as well as Delta Regional Authority, to fund 10 projects for worker training, domestic and foreign business investment, and supply chain access
WASHINGTON — U.S. Secretary of Commerce Penny S. Pritzker, U.S. Secretary of Labor Thomas E. Perez and Delta Regional Authority Federal Co-Chairman Christopher A. Masingill today announced the 10 winners of the Make it in America Challenge, an Obama administration initiative to accelerate job creation and encourage business investment in the United States. The grantees are receiving a total of $20,533,409 for projects supporting regional economic development, advanced skills training, greater supply chain access and other enhancements. The programs are designed to encourage U.S. companies to keep, expand or reshore their manufacturing operations — and jobs — in America, and to entice foreign companies to build facilities and make their products here.
The U.S. Department of Commerce's Economic Development Administration, the U.S. Department of Labor's Employment and Training Administration, and the Delta Regional Authority are funding the winning proposals. Additionally, Commerce's National Institute of Standards and Technology Manufacturing Extension Partnership plans to make awards in early FY2014 in support of this initiative.
"Making smart investments in a skilled workforce are critical to continuing our recovery and unleashing the economy's full potential," said Secretary of Labor Perez. "In an increasingly sophisticated economy, equipping workers with the skills they need to succeed on the job isn't just a workforce development issue, but also an economic development issue and the partnerships funded through these Make it in America Challenge grants are helping to lead the way."
"Supporting innovative, regionally-based strategies that create an environment that encourages businesses to invest in the U.S. is vital to enhancing our nation's global competitiveness," said Secretary of Commerce Pritzker. "These Make It In America Challenge grants reward promising ideas that will advance the Obama administration's goals of improving our economy by strengthening our manufacturing sector and making our country a more attractive place to do business."
The 10 winners of the Make it in America Challenge will pursue projects in nine states. Descriptions of each project, including grant amount breakdowns by agency are available at http://www.eda.gov/challenges/MakeItInAmerica/winners.htm.
The Midcoast Regional Redevelopment Authority of Brunswick, Maine ($2,050,000)
The Center for Automotive Research of Ann Arbor, Mich. ($1,471,800)
The Mississippi State University of Starkville, Miss. ($1,931,935)
The Board of Curators at the University of Missouri, Columbia, Mo. ($1,842,977)
N.E.O. Foundation of Cleveland, Ohio ($1,796,867)
The Buckeye Hills-Hocking Valley Regional Development District of Reno, Ohio ($1,700,844)
The Mid-Willamette Valley Council of Governments of Salem, Ore. ($1,714,376)
The SEDA Council of Governments of Lewisburg, Pa. ($1,800,000)
Clemson University of Clemson, S.C.: 2 projects (construction and non-construction) ($3,549,610)
The Innovate Washington of Spokane, Wash. ($2,675,000)
The Make it in America Challenge was issued on March 18, 2013. Under President Obama's leadership, federal agencies are collaborating more effectively to make smart investments that provide stakeholders with a seamless process for applying for federal resources. To that end, the Make it in America Challenge allowed applicants to submit one application to fund projects that: help distressed regions build on existing assets, promote a competitive environment for foreign-owned and domestic firms to establish and grow their U.S. operations, create jobs and develop a skilled workforce for specific industries.
A forthcoming announcement will be made regarding additional funding from the National Institute of Standards and Technology Manufacturing Extension Partnership, which will focus on developing greater connectivity of regional supply chains in addition to assisting small- and medium-sized enterprises.
The Make it in America Challenge builds on the United States' significant competitive advantages — from a strong business climate, to a highly-skilled and productive workforce — that make it a profitable place for businesses to invest. Investing in businesses and production here can help put more Americans back to work. Some of the ways in which the administration has already helped American workers and businesses thrive include: enhancing the general business climate, securing access to markets for U.S. exports, providing financial and technical support for companies to grow and expand, providing funding to improve education and training opportunities to develop a skilled workforce, and enforcing global trade rules to ensure that American businesses and workers are competing on a level playing field.
Saturday, October 26, 2013
COURT STOPS COLLECTION OF ALLEGEDLY PHANTOM PAYDAY LOANS FROM CONSUMERS
FROM: FEDERAL TRADE COMMISSION
At the FTC's Request, Court Halts Collection of Allegedly Fake Payday Debts
Defendants' Robocalls and Collectors Threatened Legal Action and Arrest, FTC Alleges
At the request of the Federal Trade Commission, a U.S. district court has halted an operation based in Atlanta and Cleveland that allegedly used deceptive and threatening tactics to collect phantom payday loan “debts” that consumers either did not owe, or did not owe to the defendants. The court order freezes the defendants’ assets to preserve the possibility of providing redress to consumers, and appoints a receiver.
According to the FTC, the defendants operated under a host of fictitious business names that implied an affiliation with a law firm or a law enforcement agency, such as Global Legal Services, Allied Litigation Group, United Judgment & Appeals, Dockets Liens & Seizures, and United Judgment Center. Using robocalls and voice messages that threatened legal action and arrest unless consumers responded within a few days, the defendants have collected and processed millions of dollars in payment for phantom debts, according to the complaint. Their practices have generated almost 3,000 complaints to the FTC’s Consumer Sentinel.
According to documents filed with the court, a typical message stated: “[T]his is the Civil Investigations Unit. We are contacting you in regards to a complaint being filed against you, pursuant to claim and affidavit number D00D-2932, where you have been named a respondent in a court action and must appear. There is a contact number on file which you must call, 757-301-4745. Please forward this information to your attorney in that the order to show cause contains a restraining order. You or your attorney will have 24 to 48 hours to oppose this matter.”
Working out of offices in Cleveland and Atlanta, the defendants threatened consumers that if they did not pay, their bank accounts would be closed, their wages would be garnished, they would face felony fraud charges, they would have to appear in court thousands of miles from their homes, or they would be arrested at their workplace, according to documents filed with the court. Many consumers ended up paying the defendants for debts they did not owe because they feared the threatened repercussions of failing to pay, believed the defendants were legitimate and collecting real debts, or simply wanted to stop the harassment, according to the complaint.
The FTC’s complaint names Lisa J. Jeter, Nichole C. Anderson, Hope V. Wilson, Angela J. Triplett, DeMarra J. Massey, and their companies Pinnacle Payment Services, LLC, Velocity Payment Solutions, LLC, Heritage Capital Services, LLC, Performance Payment Processing, LLC, Credit Source Plus, LLC (Ohio), Credit Source Plus, LLC (Georgia), Reliable Resolution, LLC, Premium Express Processing, LLC (Ohio), and Premium Express Processing, LLC (Atlanta).
This is the FTC’s fifth recent case involving allegedly fraudulent, online payday-loan-related operations. Other cases include American Credit Crunchers, LLC, Broadway Global Master Inc., Pro Credit, and Vantage Funding.
The complaint charges the defendants with violating the FTC Act and the Fair Debt Collection Practices Act by falsely telling consumers that:
they were delinquent on a payday loan or other debt that the defendants had the authority to collect;
they had the legal obligation to pay the defendants;
they would be arrested or imprisoned if they did not pay; and
the defendants had taken or would take legal action.
The complaint also charges that the defendants illegally called consumers at inconvenient
times or places, including at their workplaces, despite being asked to stop; disclosed supposed debts to family members, employers, and other third parties; harassed consumers with repeated calls; failed to disclose their identity as debt collectors; and failed to provide a required written notice telling consumers how to dispute the alleged debts.
For more consumer information on this topic, see Dealing with Debt.
The Commission vote authorizing the staff to file the complaint was 4-0. The complaint and request for a temporary restraining order were filed in the U.S. District Court for the Northern District of Georgia, Atlanta Division. On October 24, 2013, the court granted the FTC’s request.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court
At the FTC's Request, Court Halts Collection of Allegedly Fake Payday Debts
Defendants' Robocalls and Collectors Threatened Legal Action and Arrest, FTC Alleges
At the request of the Federal Trade Commission, a U.S. district court has halted an operation based in Atlanta and Cleveland that allegedly used deceptive and threatening tactics to collect phantom payday loan “debts” that consumers either did not owe, or did not owe to the defendants. The court order freezes the defendants’ assets to preserve the possibility of providing redress to consumers, and appoints a receiver.
According to the FTC, the defendants operated under a host of fictitious business names that implied an affiliation with a law firm or a law enforcement agency, such as Global Legal Services, Allied Litigation Group, United Judgment & Appeals, Dockets Liens & Seizures, and United Judgment Center. Using robocalls and voice messages that threatened legal action and arrest unless consumers responded within a few days, the defendants have collected and processed millions of dollars in payment for phantom debts, according to the complaint. Their practices have generated almost 3,000 complaints to the FTC’s Consumer Sentinel.
According to documents filed with the court, a typical message stated: “[T]his is the Civil Investigations Unit. We are contacting you in regards to a complaint being filed against you, pursuant to claim and affidavit number D00D-2932, where you have been named a respondent in a court action and must appear. There is a contact number on file which you must call, 757-301-4745. Please forward this information to your attorney in that the order to show cause contains a restraining order. You or your attorney will have 24 to 48 hours to oppose this matter.”
Working out of offices in Cleveland and Atlanta, the defendants threatened consumers that if they did not pay, their bank accounts would be closed, their wages would be garnished, they would face felony fraud charges, they would have to appear in court thousands of miles from their homes, or they would be arrested at their workplace, according to documents filed with the court. Many consumers ended up paying the defendants for debts they did not owe because they feared the threatened repercussions of failing to pay, believed the defendants were legitimate and collecting real debts, or simply wanted to stop the harassment, according to the complaint.
The FTC’s complaint names Lisa J. Jeter, Nichole C. Anderson, Hope V. Wilson, Angela J. Triplett, DeMarra J. Massey, and their companies Pinnacle Payment Services, LLC, Velocity Payment Solutions, LLC, Heritage Capital Services, LLC, Performance Payment Processing, LLC, Credit Source Plus, LLC (Ohio), Credit Source Plus, LLC (Georgia), Reliable Resolution, LLC, Premium Express Processing, LLC (Ohio), and Premium Express Processing, LLC (Atlanta).
This is the FTC’s fifth recent case involving allegedly fraudulent, online payday-loan-related operations. Other cases include American Credit Crunchers, LLC, Broadway Global Master Inc., Pro Credit, and Vantage Funding.
The complaint charges the defendants with violating the FTC Act and the Fair Debt Collection Practices Act by falsely telling consumers that:
they were delinquent on a payday loan or other debt that the defendants had the authority to collect;
they had the legal obligation to pay the defendants;
they would be arrested or imprisoned if they did not pay; and
the defendants had taken or would take legal action.
The complaint also charges that the defendants illegally called consumers at inconvenient
times or places, including at their workplaces, despite being asked to stop; disclosed supposed debts to family members, employers, and other third parties; harassed consumers with repeated calls; failed to disclose their identity as debt collectors; and failed to provide a required written notice telling consumers how to dispute the alleged debts.
For more consumer information on this topic, see Dealing with Debt.
The Commission vote authorizing the staff to file the complaint was 4-0. The complaint and request for a temporary restraining order were filed in the U.S. District Court for the Northern District of Georgia, Atlanta Division. On October 24, 2013, the court granted the FTC’s request.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court
FDIC AND PEOPE'S BANK OF CHINA SIGN MEMORANDUM OF UNDERSTANDING
FROM: FEDERAL DEPOSIT INSURANCE CORPORATION
Beijing, China -- The Federal Deposit Insurance Corporation (FDIC) announced the signing of a Memorandum of Understanding (MOU) between the agency and the People's Bank of China (PBOC) designed to extend their effective international working relationship in the areas of deposit insurance and resolution. The purpose of the MOU is to develop and expand the interaction between the FDIC and the PBOC and to demonstrate a shared commitment to cooperation among banking agencies. The MOU also seeks to enhance cooperation in analyzing of cross-border financial institution recovery and resolution issues, and planning for potential recovery and resolution scenarios, including appropriate simulations, contingency planning and other work designed to improve preparations to manage troubled institutions with operations in the United States and the PBOC. The agreement was signed by FDIC Chairman Martin J. Gruenberg and Governor Zhou Xiaochuan of the PBOC and updates an existing MOU that was signed on August 2nd, 2007.
FDIC Chairman Gruenberg said, "There is a long history of close collaboration and cooperation between the PBOC and the FDIC, and I am honored to have the opportunity to build on this strong foundation through this MOU. China and the U.S. have a shared interest in maintaining and expanding our interaction on economic and financial issues, particularly in the areas of deposit insurance and cross-border resolution issues. Among U.S. financial regulators, the FDIC is uniquely positioned to engage and offer our experience with deposit insurance and resolution issues internationally. I welcome this expanded agreement with the PBOC and would like to thank our Chinese hosts, particularly Governor Zhou and the officials at the PBOC, for accommodating the delegation from the FDIC."
Beijing, China -- The Federal Deposit Insurance Corporation (FDIC) announced the signing of a Memorandum of Understanding (MOU) between the agency and the People's Bank of China (PBOC) designed to extend their effective international working relationship in the areas of deposit insurance and resolution. The purpose of the MOU is to develop and expand the interaction between the FDIC and the PBOC and to demonstrate a shared commitment to cooperation among banking agencies. The MOU also seeks to enhance cooperation in analyzing of cross-border financial institution recovery and resolution issues, and planning for potential recovery and resolution scenarios, including appropriate simulations, contingency planning and other work designed to improve preparations to manage troubled institutions with operations in the United States and the PBOC. The agreement was signed by FDIC Chairman Martin J. Gruenberg and Governor Zhou Xiaochuan of the PBOC and updates an existing MOU that was signed on August 2nd, 2007.
FDIC Chairman Gruenberg said, "There is a long history of close collaboration and cooperation between the PBOC and the FDIC, and I am honored to have the opportunity to build on this strong foundation through this MOU. China and the U.S. have a shared interest in maintaining and expanding our interaction on economic and financial issues, particularly in the areas of deposit insurance and cross-border resolution issues. Among U.S. financial regulators, the FDIC is uniquely positioned to engage and offer our experience with deposit insurance and resolution issues internationally. I welcome this expanded agreement with the PBOC and would like to thank our Chinese hosts, particularly Governor Zhou and the officials at the PBOC, for accommodating the delegation from the FDIC."
TWO SENTENCED FOR ROLES IN $74 MILLION HOME HEALTH MEDICARE FRAUD
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, October 23, 2013
Administrator and Employee of Two Miami Home Health Companies Sentenced for Role in $74 Million Health Care Fraud Scheme
The administrator and employee of two Miami health care companies was sentenced today to serve 60 months in prison for her participation in a $74 million home health Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Myriam Acevedo, 63, of Miami, was sentenced by U.S. District Judge Marcia G. Cooke in the Southern District of Florida. In May 2013, Acevedo pleaded guilty, without a plea agreement, to one count of conspiracy to pay health care kickbacks and two counts of payment of health care kickbacks.
According to court documents, Acevedo was an administrator of LTC Professional Consultants Inc. (LTC) and an employee of Professional Home Care Solutions Inc. (Professional), Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. Acevedo and her co-conspirators agreed to and actually did operate LTC and Professional for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Acevedo’s primary role in the scheme was to pay kickbacks and bribes to patient recruiters of LTC and Professional. As part of this role, Acevedo and others would distribute cash to patient recruiters in exchange for providing patients to LTC and Professional, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Acevedo and her co-conspirators would use these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services, which Acevedo knew was in violation of federal criminal laws.
From approximately September 2007 through June 2012, LTC and Professional submitted approximately $41 million in claims for home health services that were not medically necessary and/or not provided. Medicare actually paid approximately $27 million for these fraudulent claims. Acevedo was part of an overall scheme that fraudulently billed Medicare more than $74 million.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Wednesday, October 23, 2013
Administrator and Employee of Two Miami Home Health Companies Sentenced for Role in $74 Million Health Care Fraud Scheme
The administrator and employee of two Miami health care companies was sentenced today to serve 60 months in prison for her participation in a $74 million home health Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Myriam Acevedo, 63, of Miami, was sentenced by U.S. District Judge Marcia G. Cooke in the Southern District of Florida. In May 2013, Acevedo pleaded guilty, without a plea agreement, to one count of conspiracy to pay health care kickbacks and two counts of payment of health care kickbacks.
According to court documents, Acevedo was an administrator of LTC Professional Consultants Inc. (LTC) and an employee of Professional Home Care Solutions Inc. (Professional), Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. Acevedo and her co-conspirators agreed to and actually did operate LTC and Professional for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Acevedo’s primary role in the scheme was to pay kickbacks and bribes to patient recruiters of LTC and Professional. As part of this role, Acevedo and others would distribute cash to patient recruiters in exchange for providing patients to LTC and Professional, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Acevedo and her co-conspirators would use these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services, which Acevedo knew was in violation of federal criminal laws.
From approximately September 2007 through June 2012, LTC and Professional submitted approximately $41 million in claims for home health services that were not medically necessary and/or not provided. Medicare actually paid approximately $27 million for these fraudulent claims. Acevedo was part of an overall scheme that fraudulently billed Medicare more than $74 million.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Friday, October 25, 2013
CDC SAYS 1 IN 6 BETWEEN THE AGES OF 2 AND 19 ARE OBESE
FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
One in 6 obese
From the U.S. Department of Health and Human Services, I’m Ira Dreyfuss with HHS HealthBeat.
A study by the Centers for Disease Control and Prevention finds some signs that the weight gains of America’s young people are tapering off. The researchers saw this in data from 2008 to 2011 on almost 12 million low-income youngsters in 40 states.
But it doesn’t mean the weights are all healthy. The CDC says 1 in 6 people between the ages of 2 and 19 is obese. And researcher Ashleigh May says the excess weight produces a health burden:
“During childhood, things like high cholesterol, high blood sugar, asthma, and even mental health problems can occur. And children who are overweight or obese are more likely to become overweight or obese adults.’’
The study is in CDC’s Morbidity and Mortality Weekly Report.
Learn more at healthfinder.gov.
HHS HealthBeat is a production of the U.S. Department of Health and Human Services. I’m Ira Dreyfuss.
Last revised: October 24, 2013
One in 6 obese
From the U.S. Department of Health and Human Services, I’m Ira Dreyfuss with HHS HealthBeat.
A study by the Centers for Disease Control and Prevention finds some signs that the weight gains of America’s young people are tapering off. The researchers saw this in data from 2008 to 2011 on almost 12 million low-income youngsters in 40 states.
But it doesn’t mean the weights are all healthy. The CDC says 1 in 6 people between the ages of 2 and 19 is obese. And researcher Ashleigh May says the excess weight produces a health burden:
“During childhood, things like high cholesterol, high blood sugar, asthma, and even mental health problems can occur. And children who are overweight or obese are more likely to become overweight or obese adults.’’
The study is in CDC’s Morbidity and Mortality Weekly Report.
Learn more at healthfinder.gov.
HHS HealthBeat is a production of the U.S. Department of Health and Human Services. I’m Ira Dreyfuss.
Last revised: October 24, 2013
SECRETARY OF STATE KERRY'S REMARKS AT CENTER FOR AMERICA PROGRESS
FROM: U.S. STATE DEPARTMENT
Remarks at the Center for American Progress' 10-year Anniversary Policy Conference
Remarks
John Kerry
Secretary of State
St. Regis Hotel
Washington, DC
October 24, 2013
Thank you very much. Thank you.
Neera, thank you very, very much. Thank you all. It’s wonderful for me to be here. Neera and I come from the same part of the country and share many of the same values, but none more important than our devotion to the American League Champion Boston Red Sox. Yeah. (Applause.) No boos, no boos. No boos allowed. (Laughter.) Anyway, in her role, obviously, as CAP’s John Farrell – for those of you who follow baseball, you know what I’m talking about – he’s the manager of the team, guys. He got them there. So anyway, she obviously has been extraordinary in her leadership at CAP. And this institution, I think everybody knows, has been strong and steady ever since she took that over.
And frankly, before Neera and John Podesta, our fearless leader here, opened CAP’s doors a decade ago, which is what is being celebrated here today, everybody here knows that they did an extraordinary job of helping to steer President Clinton’s administration during a time of unprecedented prosperity at home and also importantly, from my point of view today on a day-to-day basis, a period in which America enjoyed and earned huge respect around the world.
President Clinton understood very clearly that in a complex and changing world, our friends and our foes alike are going to be more impressed, as he said, “by the power of our example than by the example of our power.” And the person who President Clinton said best exemplifies that particular principle in these times is President Obama. I would say to you that over the last five years that the power of our example has been strong, a lot stronger than some people may perceive in a world of 24/7 cacophony. But the fact is that whether in Afghanistan, where we’re etching out a drawdown in a bilateral security agreement, or Iraq, where we did drawdown and leave, or the Far East, where we have a repositioning and rebalancing, or in the START treaty, or in our efforts in the Middle East today, our efforts to lead on Syria, on many other things, the President’s engagement, I believe, has underscored many times over how America plays an absolutely indispensable role in promoting peace, security, and shared prosperity around the world.
And I will tell you I thought I had a pretty good sense of those things as the chairman of the Foreign Relations committee and a 28-year veteran of that committee. But I will tell you that it has become far more clear to me in these many meetings and in these many journeys how absolutely true it is that we are indispensable, and that if we’re going to move in the directions we want to, whether it’s climate change that you were just talking about, or a host of other challenges, we’re going to do it with our leadership, with the highest standards.
It’s my privilege to serve as the President’s Secretary of State. Every day, I get to witness how much good, how much engagement we offer, how much our diplomats do around the world. And I remember an observation that my dad made, who was a Foreign Service officer for a period of time, that he shared with me about diplomacy. He said good diplomacy comes from the ability to be able to see the world through someone else’s eyes, through the eyes of the people in another country. But today it’s become much clearer to me, more than ever before, that it isn’t just about how people in another part of the world see their own challenges. We also have to be far more conscious about how our leadership looks through other people’s eyes.
Now as Neera mentioned a moment ago, I just literally landed, just came back from a marathon session with Prime Minister Netanyahu, with the London 11 Syrian support group, with Saud al-Faisal in Saudi Arabia and others. And in the past eight months, over more than 100 days abroad in every corner of the world, I have seen how our allies, our partners, and those who wish to challenge us or do us harm – they’re all sizing us up every day; they’re taking our measure.
And what we do in Washington matters deeply to them. And that’s why a self-inflicted wound, like the shutdown that we just endured, can never happen again. (Applause.) As President Obama said, the shutdown “encouraged our enemies…emboldened our competitors, and it depressed our friends who look to us for steady leadership.”
I will tell you, apart from the jokes that some of the summits that I went to about whether because we weren’t being paid, one country or another could buy our meals, there were real consequences to our not being there. And now that this recent moment of politics has passed and since I’m no longer in elected office myself, I wanted just to come here this afternoon as you celebrate a 10th anniversary and contemplate the progressive challenges ahead, I wanted to reflect on the damage that events like the one we’ve just been through can do to the esteem in which the United States is held in the world, a key component of our national power.
Now let me underscore that none of what occurred is irreparable or irreversible and the strength of our principles and the strength of our people are still the envy of the world. But being a responsible democracy requires that we don’t walk ourselves to the brink every opportunity we get – that we don’t play games with our credit rating or our credibility.
During the shutdown, I was attending the APEC Summit in Indonesia, the ASEAN Summit in Brunei, and the Global Entrepreneurship Summit in Malaysia. And I spoke with our allies throughout Asia, throughout the entire Asia Pacific region, all of whom were assembled at these various summits. And that is a region that matters deeply to us. It matters to our economy. It matters to our security. And our economy and our security are closely intertwined in this complex world we’re living in today. The leaders in that region agreed that the strength of our partnership is much greater than a moment in politics – thank heavens – but those politics also, I’m telling you, clearly weighed heavily on their minds.
And it has entered into the calculation of leaders. As we negotiate with Iran, as we negotiate with the Middle East peace process in Israel, can we be counted on? Will the Congress come through? Can the President make an agreement which will be held?
Believe me: The shutdown, and the dysfunction, and the simplistic dialogue that came with it, didn’t impress anyone about the power of America’s example.
And you didn’t need to talk to an Asian foreign minister in order to get a sense of that. Just go online and read any of the number of dailies of our allies’ papers.
London’s Daily Telegraph said, “The U.S. is recklessly throwing away its future.”
A major daily in Seoul urged America “to stop holding their citizens and the world economy hostage.”
The biggest business daily in Germany reported, “The damage done is great and it has shaken America’s reputation.”
Notice how none of these assessments blamed one political party or another. They took no interest whatsoever in opinion polling, hypothetical electoral consequences, 2016, who won the news cycle, who would win the Senate. Nope, none of it. They simply wanted to know: Will America be a credible partner tomorrow?
I personally have every confidence that we can and that we are. But others are going to need to see us steer a steady course in order to rebuild their confidence. In the days to come, if we let domestic differences overwhelm diplomacy, those differences will undermine our shared values, and most importantly, our shared interests. The question is no longer whether our politics stops at the water’s edge, but whether our politics stops us from providing the leadership that the world needs.
The question is whether America will lead the $6 trillion global energy economy, which is the solution to what the panel was talking about, and as Al Gore, I am confident, will describe to you. Energy policy is the solution to global climate change, a $6 trillion market. The market that made America rich in the 1990s was a $1 trillion market with 1 billion users. The energy market is a $6 trillion market with about 5 billion users, and it’s going to rise to 9 billion users over the next 20, 30 years.
So you and I know that if we make the right choices, we can get there. The question is whether America is going to continue to be a global model for entrepreneurship and the magnet for the world’s brightest minds. You and I know if we take the steps to shore up our economic strength at home and we continue to welcome foreign citizens who seek to fulfill their aspirations in the United States, we can get there. But we have to make that choice.
The question is whether we’re going to invest in education and R&D at home, and ensure that the United States can compete and win in this highly competitive global marketplace. You and I know we can do that, but we have to make this a priority at a time of enormous pressure to drastically cut government spending.
Now, I have to tell you, when these questions are avoided altogether, when they’re put on the back burner, when we tie one hand behind our backs, whether through political stalemates or even shutting down the government, we’re just getting in our own way. And we diminish our influence and we frustrate our own aspirations.
The simple fact is that the shutdown created temporary but real consequences in our ability to work with our partners and pursue our interests abroad.
The shutdown didn’t just shutter the World War II Memorial, as unfortunate as that was – it stunted our ability to promote the principles and values that our veterans sacrificed for.
The shutdown didn’t just shutter the Statue of Liberty – it temporarily closed the doors to refugees and students who were seeking visas to learn here and to contribute to our economy.
The shutdown delayed security aid to Israel, one of our closest allies, obviously, and a critical democracy in a region that’s undergoing tremendous upheaval. Why would in common sense, why would you want to do that?
The shutdown sent hardworking public servants home, including officials whose job is to enforce the sanctions against Iran – sanctions that actually helped to create the pressure that have brought us to this moment of cautious possibility in the region.
The shutdown furloughed four Nobel Laureates who were working in the federal government, to put critical research funding on hold for Nobel Laureates of tomorrow.
Negotiations were also delayed on the Transatlantic Trade and Investment Partnership, a trade deal President Obama has championed in order to continue to increase American exports around the world and to create jobs here at home and help Europe, help the Far East, begin to create the jobs to come out of the economic doldrums.
So this political moment was far more than just symbolism, far more than just a local fight. It matters deeply to our power and to our example. And while this chapter is temporarily over, we’ve got another date looming, and the experience has to serve as a stern warning to all. It should force us to consider in the weeks and months ahead what the world will look like if America is less present and less credible. Make no mistake, the greatest danger to America doesn’t come from a rising rival. It comes from the damage that we’re capable of doing by our own dysfunction and the risks that will arise in a world that may see restrained or limited American leadership as a result.
That doesn’t mean by any means that America ought to serve as the world’s policeman. That’s not what I’m talking about, and that’s not what President Obama’s talking about. We can’t solve every problem, certainly not on our own, but we remain the indispensable partner, the anchor of global security, and a catalyst for global prosperity.
So as I’ve said before, this is not the time to retreat or retrench. We need to be out there, and we need to be engaged with the world. Why? Because for every billion dollar in goods and services that we export, we create 5,000 jobs here at home. Because when we help other countries stand on their own two feet, we create trading partners for our businesses. In fact, 11 of our 15 biggest trading partners used to be the recipients of American aid. Korea, Republic of Korea, is now a donor, where 15 years ago it was a recipient of aid. No other nations bring so many countries together in support of global standards, international norms, where we encourage a race to the top, not to the bottom.
And looking ahead, as we fulfill our moral responsibility to combat climate change, to improve global health, to ensure that women have the same rights as men, and give voice to those who have none, we are the ones who will give people around the world the courage to be able to speak up and the confidence to be able to work together.
I’ve seen it, I know it. There’s no arrogance in saying that. I know there are some Americans who don’t care how the world sees us, but in an integrated world, a genie that no politician can put back into any bottle, we have lost the luxury of looking only inward. Today, isolationism is the enemy of economic prosperity and security at the same time.
My friends, the 21st century, like the last one, we’re going to see competition between different ideals and different systems of governance. And as a model for a whole bunch of nations, I think we have a special responsibility to demonstrate that democracy does deliver for its citizens. When democracy appears dysfunctional, aspiring peoples are all the more likely to settle for some other model. Extremists and autocrats rush to fill the vacuum. And the bigger their platform around the world, the greater the danger to our security here at home. Mark my words, it is connected.
I’ve often said that America is not exceptional because we talk about ourselves as being exceptional and beat our chests and stand up and say, “We’re exceptional.” It’s not because we say we are. It’s because we do exceptional things. And we’ve always done that. We’re the nation that defeated the Axis powers, and then invested billions of dollars in their recovery – and we never asked to be paid back. That’s exceptional.
We’re the nation that faced down the Soviet Union with the force of our ideals and alliances – and without resorting to the force of arms. That’s exceptional.
We’re the nation that saw the human toll of AIDS spiraling out of control in Africa, most people thinking we’d never rein it in, and we mustered the will and the resources to lead a global response that is now looking at the possibility of an AIDS-free generation. That is exceptional.
We’ve led the effort to reduce child mortality by 60 percent in Afghanistan over the last decade, and three million more Afghan girls are in school, and raised life expectancy by 20 years for the average Afghan citizens.
My friends, there are so many ways, so many examples, of where we have helped others with no request in return, and they’re all exceptional.
So as we did all these things, of course our leaders confronted deep disagreements, didn’t we? Even as we did those things. But guess what? Those leaders shared an even deeper commitment to our responsibilities in the world. They understood that while our differences can be clear, they cannot be crippling. The power of our example has never come from the purity of any one ideology. It’s come from the principled action of all of us together as one nation.
And as the aspirations that make America great go global, there are incredible opportunities for America to benefit and also to provide leadership. The work we do over there – the exports we sell, the democracies we support, the high standards that we set – all of them can create jobs and opportunity right here at home. We cannot afford to cede the best possibilities of this young century to others who have decided to be more disciplined than we have.
The world watches us, but I’m telling you, I can feel it. I hear it. The world will not wait for us. The shutdown is now behind us, but the answers to many of the same questions still stare us in the face and await us. In the weeks and months to come, we need our conversation to be worthy of the confidence and trust of the American people, and recognize it is part and parcel of the power of America’s example in the world.
In this time of challenge and opportunity, we need to commit to reaching out across the aisle and across the world, as Americans did before us, so that we can do the exceptional things that America has always done, and that Americans expect us, as their leaders and as their government, to do. That’s how we meet our responsibilities to the nation, that’s how we meet our responsibilities to the world, and that’s how we meet our responsibilities to the next generation. That’s how we make the power of our example even stronger today and in the years to come.
Thank you very much. (Applause.)
Remarks at the Center for American Progress' 10-year Anniversary Policy Conference
Remarks
John Kerry
Secretary of State
St. Regis Hotel
Washington, DC
October 24, 2013
Thank you very much. Thank you.
Neera, thank you very, very much. Thank you all. It’s wonderful for me to be here. Neera and I come from the same part of the country and share many of the same values, but none more important than our devotion to the American League Champion Boston Red Sox. Yeah. (Applause.) No boos, no boos. No boos allowed. (Laughter.) Anyway, in her role, obviously, as CAP’s John Farrell – for those of you who follow baseball, you know what I’m talking about – he’s the manager of the team, guys. He got them there. So anyway, she obviously has been extraordinary in her leadership at CAP. And this institution, I think everybody knows, has been strong and steady ever since she took that over.
And frankly, before Neera and John Podesta, our fearless leader here, opened CAP’s doors a decade ago, which is what is being celebrated here today, everybody here knows that they did an extraordinary job of helping to steer President Clinton’s administration during a time of unprecedented prosperity at home and also importantly, from my point of view today on a day-to-day basis, a period in which America enjoyed and earned huge respect around the world.
President Clinton understood very clearly that in a complex and changing world, our friends and our foes alike are going to be more impressed, as he said, “by the power of our example than by the example of our power.” And the person who President Clinton said best exemplifies that particular principle in these times is President Obama. I would say to you that over the last five years that the power of our example has been strong, a lot stronger than some people may perceive in a world of 24/7 cacophony. But the fact is that whether in Afghanistan, where we’re etching out a drawdown in a bilateral security agreement, or Iraq, where we did drawdown and leave, or the Far East, where we have a repositioning and rebalancing, or in the START treaty, or in our efforts in the Middle East today, our efforts to lead on Syria, on many other things, the President’s engagement, I believe, has underscored many times over how America plays an absolutely indispensable role in promoting peace, security, and shared prosperity around the world.
And I will tell you I thought I had a pretty good sense of those things as the chairman of the Foreign Relations committee and a 28-year veteran of that committee. But I will tell you that it has become far more clear to me in these many meetings and in these many journeys how absolutely true it is that we are indispensable, and that if we’re going to move in the directions we want to, whether it’s climate change that you were just talking about, or a host of other challenges, we’re going to do it with our leadership, with the highest standards.
It’s my privilege to serve as the President’s Secretary of State. Every day, I get to witness how much good, how much engagement we offer, how much our diplomats do around the world. And I remember an observation that my dad made, who was a Foreign Service officer for a period of time, that he shared with me about diplomacy. He said good diplomacy comes from the ability to be able to see the world through someone else’s eyes, through the eyes of the people in another country. But today it’s become much clearer to me, more than ever before, that it isn’t just about how people in another part of the world see their own challenges. We also have to be far more conscious about how our leadership looks through other people’s eyes.
Now as Neera mentioned a moment ago, I just literally landed, just came back from a marathon session with Prime Minister Netanyahu, with the London 11 Syrian support group, with Saud al-Faisal in Saudi Arabia and others. And in the past eight months, over more than 100 days abroad in every corner of the world, I have seen how our allies, our partners, and those who wish to challenge us or do us harm – they’re all sizing us up every day; they’re taking our measure.
And what we do in Washington matters deeply to them. And that’s why a self-inflicted wound, like the shutdown that we just endured, can never happen again. (Applause.) As President Obama said, the shutdown “encouraged our enemies…emboldened our competitors, and it depressed our friends who look to us for steady leadership.”
I will tell you, apart from the jokes that some of the summits that I went to about whether because we weren’t being paid, one country or another could buy our meals, there were real consequences to our not being there. And now that this recent moment of politics has passed and since I’m no longer in elected office myself, I wanted just to come here this afternoon as you celebrate a 10th anniversary and contemplate the progressive challenges ahead, I wanted to reflect on the damage that events like the one we’ve just been through can do to the esteem in which the United States is held in the world, a key component of our national power.
Now let me underscore that none of what occurred is irreparable or irreversible and the strength of our principles and the strength of our people are still the envy of the world. But being a responsible democracy requires that we don’t walk ourselves to the brink every opportunity we get – that we don’t play games with our credit rating or our credibility.
During the shutdown, I was attending the APEC Summit in Indonesia, the ASEAN Summit in Brunei, and the Global Entrepreneurship Summit in Malaysia. And I spoke with our allies throughout Asia, throughout the entire Asia Pacific region, all of whom were assembled at these various summits. And that is a region that matters deeply to us. It matters to our economy. It matters to our security. And our economy and our security are closely intertwined in this complex world we’re living in today. The leaders in that region agreed that the strength of our partnership is much greater than a moment in politics – thank heavens – but those politics also, I’m telling you, clearly weighed heavily on their minds.
And it has entered into the calculation of leaders. As we negotiate with Iran, as we negotiate with the Middle East peace process in Israel, can we be counted on? Will the Congress come through? Can the President make an agreement which will be held?
Believe me: The shutdown, and the dysfunction, and the simplistic dialogue that came with it, didn’t impress anyone about the power of America’s example.
And you didn’t need to talk to an Asian foreign minister in order to get a sense of that. Just go online and read any of the number of dailies of our allies’ papers.
London’s Daily Telegraph said, “The U.S. is recklessly throwing away its future.”
A major daily in Seoul urged America “to stop holding their citizens and the world economy hostage.”
The biggest business daily in Germany reported, “The damage done is great and it has shaken America’s reputation.”
Notice how none of these assessments blamed one political party or another. They took no interest whatsoever in opinion polling, hypothetical electoral consequences, 2016, who won the news cycle, who would win the Senate. Nope, none of it. They simply wanted to know: Will America be a credible partner tomorrow?
I personally have every confidence that we can and that we are. But others are going to need to see us steer a steady course in order to rebuild their confidence. In the days to come, if we let domestic differences overwhelm diplomacy, those differences will undermine our shared values, and most importantly, our shared interests. The question is no longer whether our politics stops at the water’s edge, but whether our politics stops us from providing the leadership that the world needs.
The question is whether America will lead the $6 trillion global energy economy, which is the solution to what the panel was talking about, and as Al Gore, I am confident, will describe to you. Energy policy is the solution to global climate change, a $6 trillion market. The market that made America rich in the 1990s was a $1 trillion market with 1 billion users. The energy market is a $6 trillion market with about 5 billion users, and it’s going to rise to 9 billion users over the next 20, 30 years.
So you and I know that if we make the right choices, we can get there. The question is whether America is going to continue to be a global model for entrepreneurship and the magnet for the world’s brightest minds. You and I know if we take the steps to shore up our economic strength at home and we continue to welcome foreign citizens who seek to fulfill their aspirations in the United States, we can get there. But we have to make that choice.
The question is whether we’re going to invest in education and R&D at home, and ensure that the United States can compete and win in this highly competitive global marketplace. You and I know we can do that, but we have to make this a priority at a time of enormous pressure to drastically cut government spending.
Now, I have to tell you, when these questions are avoided altogether, when they’re put on the back burner, when we tie one hand behind our backs, whether through political stalemates or even shutting down the government, we’re just getting in our own way. And we diminish our influence and we frustrate our own aspirations.
The simple fact is that the shutdown created temporary but real consequences in our ability to work with our partners and pursue our interests abroad.
The shutdown didn’t just shutter the World War II Memorial, as unfortunate as that was – it stunted our ability to promote the principles and values that our veterans sacrificed for.
The shutdown didn’t just shutter the Statue of Liberty – it temporarily closed the doors to refugees and students who were seeking visas to learn here and to contribute to our economy.
The shutdown delayed security aid to Israel, one of our closest allies, obviously, and a critical democracy in a region that’s undergoing tremendous upheaval. Why would in common sense, why would you want to do that?
The shutdown sent hardworking public servants home, including officials whose job is to enforce the sanctions against Iran – sanctions that actually helped to create the pressure that have brought us to this moment of cautious possibility in the region.
The shutdown furloughed four Nobel Laureates who were working in the federal government, to put critical research funding on hold for Nobel Laureates of tomorrow.
Negotiations were also delayed on the Transatlantic Trade and Investment Partnership, a trade deal President Obama has championed in order to continue to increase American exports around the world and to create jobs here at home and help Europe, help the Far East, begin to create the jobs to come out of the economic doldrums.
So this political moment was far more than just symbolism, far more than just a local fight. It matters deeply to our power and to our example. And while this chapter is temporarily over, we’ve got another date looming, and the experience has to serve as a stern warning to all. It should force us to consider in the weeks and months ahead what the world will look like if America is less present and less credible. Make no mistake, the greatest danger to America doesn’t come from a rising rival. It comes from the damage that we’re capable of doing by our own dysfunction and the risks that will arise in a world that may see restrained or limited American leadership as a result.
That doesn’t mean by any means that America ought to serve as the world’s policeman. That’s not what I’m talking about, and that’s not what President Obama’s talking about. We can’t solve every problem, certainly not on our own, but we remain the indispensable partner, the anchor of global security, and a catalyst for global prosperity.
So as I’ve said before, this is not the time to retreat or retrench. We need to be out there, and we need to be engaged with the world. Why? Because for every billion dollar in goods and services that we export, we create 5,000 jobs here at home. Because when we help other countries stand on their own two feet, we create trading partners for our businesses. In fact, 11 of our 15 biggest trading partners used to be the recipients of American aid. Korea, Republic of Korea, is now a donor, where 15 years ago it was a recipient of aid. No other nations bring so many countries together in support of global standards, international norms, where we encourage a race to the top, not to the bottom.
And looking ahead, as we fulfill our moral responsibility to combat climate change, to improve global health, to ensure that women have the same rights as men, and give voice to those who have none, we are the ones who will give people around the world the courage to be able to speak up and the confidence to be able to work together.
I’ve seen it, I know it. There’s no arrogance in saying that. I know there are some Americans who don’t care how the world sees us, but in an integrated world, a genie that no politician can put back into any bottle, we have lost the luxury of looking only inward. Today, isolationism is the enemy of economic prosperity and security at the same time.
My friends, the 21st century, like the last one, we’re going to see competition between different ideals and different systems of governance. And as a model for a whole bunch of nations, I think we have a special responsibility to demonstrate that democracy does deliver for its citizens. When democracy appears dysfunctional, aspiring peoples are all the more likely to settle for some other model. Extremists and autocrats rush to fill the vacuum. And the bigger their platform around the world, the greater the danger to our security here at home. Mark my words, it is connected.
I’ve often said that America is not exceptional because we talk about ourselves as being exceptional and beat our chests and stand up and say, “We’re exceptional.” It’s not because we say we are. It’s because we do exceptional things. And we’ve always done that. We’re the nation that defeated the Axis powers, and then invested billions of dollars in their recovery – and we never asked to be paid back. That’s exceptional.
We’re the nation that faced down the Soviet Union with the force of our ideals and alliances – and without resorting to the force of arms. That’s exceptional.
We’re the nation that saw the human toll of AIDS spiraling out of control in Africa, most people thinking we’d never rein it in, and we mustered the will and the resources to lead a global response that is now looking at the possibility of an AIDS-free generation. That is exceptional.
We’ve led the effort to reduce child mortality by 60 percent in Afghanistan over the last decade, and three million more Afghan girls are in school, and raised life expectancy by 20 years for the average Afghan citizens.
My friends, there are so many ways, so many examples, of where we have helped others with no request in return, and they’re all exceptional.
So as we did all these things, of course our leaders confronted deep disagreements, didn’t we? Even as we did those things. But guess what? Those leaders shared an even deeper commitment to our responsibilities in the world. They understood that while our differences can be clear, they cannot be crippling. The power of our example has never come from the purity of any one ideology. It’s come from the principled action of all of us together as one nation.
And as the aspirations that make America great go global, there are incredible opportunities for America to benefit and also to provide leadership. The work we do over there – the exports we sell, the democracies we support, the high standards that we set – all of them can create jobs and opportunity right here at home. We cannot afford to cede the best possibilities of this young century to others who have decided to be more disciplined than we have.
The world watches us, but I’m telling you, I can feel it. I hear it. The world will not wait for us. The shutdown is now behind us, but the answers to many of the same questions still stare us in the face and await us. In the weeks and months to come, we need our conversation to be worthy of the confidence and trust of the American people, and recognize it is part and parcel of the power of America’s example in the world.
In this time of challenge and opportunity, we need to commit to reaching out across the aisle and across the world, as Americans did before us, so that we can do the exceptional things that America has always done, and that Americans expect us, as their leaders and as their government, to do. That’s how we meet our responsibilities to the nation, that’s how we meet our responsibilities to the world, and that’s how we meet our responsibilities to the next generation. That’s how we make the power of our example even stronger today and in the years to come.
Thank you very much. (Applause.)
EX-IM BANK ANNOUNCES U.S. EXPORTS TOTAL $2.2 TRILLION OVER LAST 12 MONTHS
FROM: U.S. EXPORT-IMPORT BANK
U.S. Exports of Goods and Services in August Exceed $189 Billion;
Last 12 Month’s Exports Total $2.2 Trillion, 42 Percent Above 2009
WASHINGTON, DC --- In August 2013 the United States exported $189.2 billion of goods and services, slightly lower than July’s exports of $189.3 billion. August’s exports are marginally lower than June’s all-time record high of $190.5 billion, according to data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.
Exports of goods and services over the last twelve months totaled $2.2 trillion, which is 42.2 percent above the level of exports in 2009. Over the last twelve months, exports have been growing at an annualized rate of 10.1 percent when compared to 2009.
“Our exporters continue to drive the U.S. economy and employ more American workers in high-paying, skilled export-related jobs, especially in the manufacturing sector,” said Fred P. Hochberg, chairman and president of the Export-Import Bank of the United States (Ex-Im Bank). “Every month brings us closer toward achieving President Obama’s ambitious goal of doubling U.S. exports by 2015."
Over the last twelve months, among the major export markets (i.e., markets with at least $6 billion in annual imports of U.S. goods), the countries with the largest annualized increase in U.S. goods purchases, when compared to 2009, occurred in Panama (28.8 percent), Russia (22.0 percent), United Arab Emirates (21.2 percent), Peru (20.9 percent), Hong Kong (20.4 percent), Chile (20.3 percent), Columbia (19.3 percent), Argentina (17.8 percent), Ecuador (17.6 percent), and South Africa (17.5 percent).
U.S. Exports of Goods and Services in August Exceed $189 Billion;
Last 12 Month’s Exports Total $2.2 Trillion, 42 Percent Above 2009
WASHINGTON, DC --- In August 2013 the United States exported $189.2 billion of goods and services, slightly lower than July’s exports of $189.3 billion. August’s exports are marginally lower than June’s all-time record high of $190.5 billion, according to data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.
Exports of goods and services over the last twelve months totaled $2.2 trillion, which is 42.2 percent above the level of exports in 2009. Over the last twelve months, exports have been growing at an annualized rate of 10.1 percent when compared to 2009.
“Our exporters continue to drive the U.S. economy and employ more American workers in high-paying, skilled export-related jobs, especially in the manufacturing sector,” said Fred P. Hochberg, chairman and president of the Export-Import Bank of the United States (Ex-Im Bank). “Every month brings us closer toward achieving President Obama’s ambitious goal of doubling U.S. exports by 2015."
Over the last twelve months, among the major export markets (i.e., markets with at least $6 billion in annual imports of U.S. goods), the countries with the largest annualized increase in U.S. goods purchases, when compared to 2009, occurred in Panama (28.8 percent), Russia (22.0 percent), United Arab Emirates (21.2 percent), Peru (20.9 percent), Hong Kong (20.4 percent), Chile (20.3 percent), Columbia (19.3 percent), Argentina (17.8 percent), Ecuador (17.6 percent), and South Africa (17.5 percent).
TWO NATIONAL GUARDSMEN PLEAD GUILTY IN FRAUD SCHEME
FROM: U.S. DEFENSE DEPARTMENT
Tuesday, October 22, 2013
Two Army National Guard Soldiers Plead Guilty to Schemes to Defraud U.s. Army National Guard Bureau
To Date, 17 Individuals Have Pleaded Guilty in Ongoing Corruption Investigation
Two current U.S. Army National Guard soldiers have pleaded guilty for their role in bribery and fraud schemes that caused a total of at least $70,000 in losses to the U.S. Army National Guard Bureau.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Sergeant Annika Chambers, 28, of Houston, pleaded guilty today to one count of conspiracy and one count of bribery. Specialist Elisha Ceja, 27, of Barboursville, W.V., previously pleaded guilty to the same charge on Oct. 1, 2013. The cases against both defendants arise from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 17 of whom have pleaded guilty.
According to court documents filed in both cases, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker, Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive up to $3,000 in bonus payments for referring another individual to join. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Ceja and Chambers both admitted that they paid Army National Guard recruiters for the names and Social Security numbers of potential Army National Guard soldiers. They further admitted that they used the personal identifying information for these potential soldiers to falsely claim that they were responsible for referring the potential soldiers to join the Army National Guard.
As a result of these fraudulent representations, Ceja collected approximately $12,000 in fraudulent bonuses, and Chambers collected approximately $17,000 in fraudulent bonuses.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.
Ceja and Chambers are scheduled to be sentenced before U.S. District Judge Lee H. Rosenthal in Houston on Dec. 19, 2013, and March 11, 2013, respectively.
These cases are being investigated by Special Agents from the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. The cases are being prosecuted by Trial Attorneys Sean F. Mulryne, Mark J. Cipolletti, and Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas.
Tuesday, October 22, 2013
Two Army National Guard Soldiers Plead Guilty to Schemes to Defraud U.s. Army National Guard Bureau
To Date, 17 Individuals Have Pleaded Guilty in Ongoing Corruption Investigation
Two current U.S. Army National Guard soldiers have pleaded guilty for their role in bribery and fraud schemes that caused a total of at least $70,000 in losses to the U.S. Army National Guard Bureau.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Sergeant Annika Chambers, 28, of Houston, pleaded guilty today to one count of conspiracy and one count of bribery. Specialist Elisha Ceja, 27, of Barboursville, W.V., previously pleaded guilty to the same charge on Oct. 1, 2013. The cases against both defendants arise from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 17 of whom have pleaded guilty.
According to court documents filed in both cases, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker, Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive up to $3,000 in bonus payments for referring another individual to join. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Ceja and Chambers both admitted that they paid Army National Guard recruiters for the names and Social Security numbers of potential Army National Guard soldiers. They further admitted that they used the personal identifying information for these potential soldiers to falsely claim that they were responsible for referring the potential soldiers to join the Army National Guard.
As a result of these fraudulent representations, Ceja collected approximately $12,000 in fraudulent bonuses, and Chambers collected approximately $17,000 in fraudulent bonuses.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.
Ceja and Chambers are scheduled to be sentenced before U.S. District Judge Lee H. Rosenthal in Houston on Dec. 19, 2013, and March 11, 2013, respectively.
These cases are being investigated by Special Agents from the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. The cases are being prosecuted by Trial Attorneys Sean F. Mulryne, Mark J. Cipolletti, and Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas.
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