FROM: U.S. STATE DEPARTMENT
Presentation at Malaysia's Full Training Capacity Ceremony
Remarks
Tom Kelly
Acting Assistant Secretary, Bureau of Political-Military Affairs
Kuala Lumpur, Malaysia
December 13, 2013
Thank you General Datuk (DAH-toe) Raja Mohamed Effandi bin Raja Mohamed Noor, Chief of Army. It’s a pleasure to be here in Port Dickinson for this important event. As the Acting Assistant Secretary for the Bureau of Political-Military Affairs, it is my honor to be here on behalf of the U.S. Department of State and the Office of the Global Peace Operations Initiative. This program, which is lead by the U.S. Department of State and supported by the U.S. Department of Defense, has helped train and equip more than 225,000 peacekeeping personnel worldwide, including many right here in Malaysia.
The United States is very honored to celebrate Malaysia’s significant achievement as the first Global Peace Operations Initiative partner country to reach Full Training Capability. What this means, what this ceremony today celebrates, is that Malaysia is the first of our partner nations to become fully self-sufficient in training their military peacekeepers to deploy to UN peace operations. That is indeed an accomplishment to celebrate.
Malaysia has a long history as a valued partner in global peace and security operations. The first Malaysian deployment began in 1960 in the present day Democratic Republic of the Congo. Malaysia’s contributions have since expanded, with over 900 Malaysian troops currently deployed on missions around the world. Malaysian peacekeepers are serving in the Democratic Republic of the Congo along with Lebanon, Sudan, South Sudan and Western Sahara. We in the United States are grateful for the thousands of Malaysians who have served on over 13 different United Nations peacekeeping missions in the past. Most importantly, we must also recognize, and never forget, the 29 Malaysian peacekeepers who gave the ultimate sacrifice for their country, the United Nations, and the world pursuing international peace and security.
I would like to express the United States’ particular appreciation for Malaysia’s service and sacrifice alongside U.S. forces in Somalia. Twenty years ago last October, two U.S. Black Hawk helicopters were shot down over Mogadishu, leaving U.S. service members trapped in hostile territory. Malaysian forces helped rescue the American troops. Nine Malaysians were injured. One lost his life. Their bravery is an inspiration to each of us here today.
Malaysia’s deployment to Afghanistan, although not strictly a peacekeeping mission, was very successful in helping the Afghan people recover and rebuild from years of violence by providing medical assistance and access to clean drinking water. The United States was proud to work with Malaysia in support of that mission.
I would also like recognize Malaysia’s effectiveness, superior conduct and professionalism in United Nations peace operations. Your high-quality peacekeepers reflect the training caliber at the Malaysian Peacekeeping Centre, the first of its kind in Southeast Asia. This training center demonstrates Malaysia’s role as a provider of peacekeepers, a training supplier, and an important regional partner.
Malaysia has consistently committed to building Southeast Asia’s capacity to deploy on peace operations. Malaysia provides instructors to regional training courses organized by the United States Pacific Command. The Malaysian Peacekeeping Centre here at Port Dickson also hosts a number of international events relating to gender, protection of civilians, civil-military coordination and child protection. Training courses in these areas make a critical contribution to international peace operations and build effectiveness of United Nations peacekeepers from other troop contributing countries. The United States has been pleased to stand with Malaysia in these efforts.
The United States applauds Malaysia’s innovative approach to building regional capacity by incorporating other regional partners’ peacekeeping forces with their own units, as Malaysia has done with Brunei. We encourage continued national investment in these “attached unit” opportunities that enable other countries to contribute troops to international peacekeeping missions and foster regional collaboration.
We also commend your efforts to integrate women into the peacekeeping deployment cycle. Malaysian women are part of the battalion in Lebanon and one of the Malaysian female peacekeepers serves as an expert on mission in the Democratic Republic of the Congo. Female peacekeepers play an important role by improving access and support for local women, and helping to reduce conflict and confrontation. We encourage Malaysia to continue its efforts in this regard.
We are proud that the United States has contributed more than $3 million to Malaysia’s success in obtaining self-sufficient capabilities in peace operations training. The United States looks forward to continuing to work with Malaysia in their future contributions to international peace operations. Achieving full training capability is not the end of the partnership between our two countries; it simply marks the creation of a new framework for our partnership, which we look forward to jointly developing.
Through our new partnership framework, the United States will continue to work with Malaysia in other areas of defense cooperation. We look forward to every opportunity to discuss not only our continued cooperation on international peace operations, but other areas of defense cooperation of mutual interest to our two nations.
In closing, I would like to again give our congratulations Malaysia for its significant achievement as the first Global Peace Operations Initiative partner country to reach full training capability. The United States applauds Malaysia’s enduring leadership in peace operations and looks forward to continuing our defense cooperation partnership with the Government of Malaysia. Thank you very much.
Friday, December 20, 2013
EXPORT-IMPORT BANK FINALIZES AGREEMENT TO EXPORT BOEING AIRCRAFT TO MONGOLIA
FROM: U.S. EXPORT-IMPORT BANK
Ex-Im Bank Finalizes Agreement for U.S. Export Transaction to Mongolia
WASHINGTON, D.C. – Officials from the Export-Import Bank of the United States (Ex-Im Bank) and MIAT Mongolian Airlines (MIAT) participated in a signing ceremony today that finalized the export of a U.S. Boeing 767-300ER aircraft with GE engines to MIAT.
Ex-Im Bank Chairman and President Fred P. Hochberg, MIAT President and CEO Jargalsaikhan Gungaa, and PEFCO Vice President Vince Herman signed the financing documents. Altangerel Bulgaa, Mongolia’s Ambassador to the United States, and representatives from GE and The Boeing Company were also in attendance.
The transaction, guaranteed by Mongolia’s Ministry of Finance, was previously approved by Ex-Im Bank’s board of directors and counts as both the Bank’s first significant transaction in Mongolia and its first transaction with MIAT.
“There are numerous opportunities for U.S. exporters in Mongolia, and I hope that this agreement encourages more Americans to explore this diverse and exciting market,” said Chairman Fred P. Hochberg. “By increasing MIAT’s fleet, we are able to support high-quality jobs in both the United States and Mongolia.”
“Aviation plays a strategic role in Mongolia’s global interactions. Boeing is delighted that MIAT’s latest 767-300ER marks the carrier’s first direct purchase of one of our jetliners and continues the airline’s reliance on quality U.S. made aircraft to meet its mission. This, in turn, links Mongolia to the success of American aviation manufacturing and the many thousands of U.S. jobs it supports,” said John Wojick, senior vice president, Global Sales & Marketing for Boeing Commercial Airplanes.
“MIAT is pleased to conclude its first financing transaction with the support of Ex-Im Bank,” said President Jargalsaikhan Gungaa. “We are proud to be the first airline in Mongolia to acquire an aircraft directly from The Boeing Company and to finance an aircraft with the support of Ex-Im Bank. This is an important step for the aviation industry in Mongolia, and the confidence shown by Ex-Im Bank in Mongolia will have a positive impact on all industries.”
Last year, Chairman Hochberg participated in a business-development mission in Mongolia, where he encouraged sourcing of U.S. products and services for regional infrastructure projects. Chairman Hochberg also oversaw the signing of a memorandum of understanding with the Development Bank of Mongolia to facilitate trade opportunities between the United States and Mongolia.
Ex-Im Bank Finalizes Agreement for U.S. Export Transaction to Mongolia
WASHINGTON, D.C. – Officials from the Export-Import Bank of the United States (Ex-Im Bank) and MIAT Mongolian Airlines (MIAT) participated in a signing ceremony today that finalized the export of a U.S. Boeing 767-300ER aircraft with GE engines to MIAT.
Ex-Im Bank Chairman and President Fred P. Hochberg, MIAT President and CEO Jargalsaikhan Gungaa, and PEFCO Vice President Vince Herman signed the financing documents. Altangerel Bulgaa, Mongolia’s Ambassador to the United States, and representatives from GE and The Boeing Company were also in attendance.
The transaction, guaranteed by Mongolia’s Ministry of Finance, was previously approved by Ex-Im Bank’s board of directors and counts as both the Bank’s first significant transaction in Mongolia and its first transaction with MIAT.
“There are numerous opportunities for U.S. exporters in Mongolia, and I hope that this agreement encourages more Americans to explore this diverse and exciting market,” said Chairman Fred P. Hochberg. “By increasing MIAT’s fleet, we are able to support high-quality jobs in both the United States and Mongolia.”
“Aviation plays a strategic role in Mongolia’s global interactions. Boeing is delighted that MIAT’s latest 767-300ER marks the carrier’s first direct purchase of one of our jetliners and continues the airline’s reliance on quality U.S. made aircraft to meet its mission. This, in turn, links Mongolia to the success of American aviation manufacturing and the many thousands of U.S. jobs it supports,” said John Wojick, senior vice president, Global Sales & Marketing for Boeing Commercial Airplanes.
“MIAT is pleased to conclude its first financing transaction with the support of Ex-Im Bank,” said President Jargalsaikhan Gungaa. “We are proud to be the first airline in Mongolia to acquire an aircraft directly from The Boeing Company and to finance an aircraft with the support of Ex-Im Bank. This is an important step for the aviation industry in Mongolia, and the confidence shown by Ex-Im Bank in Mongolia will have a positive impact on all industries.”
Last year, Chairman Hochberg participated in a business-development mission in Mongolia, where he encouraged sourcing of U.S. products and services for regional infrastructure projects. Chairman Hochberg also oversaw the signing of a memorandum of understanding with the Development Bank of Mongolia to facilitate trade opportunities between the United States and Mongolia.
PHOTOS FROM RECENT FIREFIGHT IN HELMAND PROVINCE, AFGHANISTAN
FROM: U.S. DEFENSE DEPARTMENT
U.S. Marine Corps Lance Cpls. Ian Forry, left, and Brian Schaeffer crouch behind a wall during a firefight with insurgents near a bazaar in the Nad Ali district of Afghanistan's Helmand province, Dec. 4, 2013. Forry and Schaeffer, riflemen, are assigned to the 1st Battalion, 9th Marines. U.S. Marine Corps photo by Cpl. Paul Peterson.
U.S. Marine Corps Cpl. Kyle Klingaman, front, leads a group of Marines to cover during a firefight with insurgents near a bazaar in the Nad Ali district of Afghanistan's Helmand province, Dec. 4, 2013. Klingaman, a scout sniper, is assigned to the 1st Battalion, 9th Marines. U.S. Marine Corps photo by Cpl. Paul Peterson.
U.S. Marine Lance Cpl. Brandon Bowker, bottom, supports a fellow Marine as he attempts to locate insurgents during a firefight near a bazaar in the Nad Ali district of Afghanistan's Helmand province, Dec. 4, 2013. Bowker is a rifleman assigned to the 1st Battalion, 9th Marines. U.S. Marine Corps photo by Cpl. Paul Peterson.
FLORIDA COURTS ORDERS OVER $ 8 MILLION IN SANCTIONS IN COMMODITY POOL FRAUD CASE
FROM: U.S. COMMODITY FUTURES TRADING COMMISSION
Federal Court in Florida Orders More than $8 Million in Sanctions against Defendants Philip Leon and Paul Rangel for Commodity Pool Fraud and Misappropriation
In a Parallel Criminal Action, Leon Pleaded Guilty to Mail and Wire Fraud
Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) obtained federal court Orders requiring Defendants Philip Leon, of Altamonte Springs, Florida, to pay a $4 million civil monetary penalty and $1,598,343 in disgorgement and Paul Rangel, of Apopka, Florida, to pay a $1.7 million civil monetary penalty and $819,781 in disgorgement to settle CFTC charges related to a fraudulent commodity pool scheme. The consent Orders of permanent injunction, both entered on December 17, 2013 by Judge Gregory A. Presnell of the U.S. District Court for the Middle District of Florida, also impose permanent trading and registration bans against Leon and Rangel and prohibit them from violating provisions of the Commodity Exchange Act and a CFTC Regulation, as charged.
The Orders stem from a CFTC Complaint filed on July 16, 2012 against Leon and Rangel, as well as Defendants John G. Wilkins and their company Altamont Global Partners LLC (see CFTC Press Release 6315-12).
The Orders find that, from approximately March 2009 to at least June 22, 2012, Leon and Rangel operated a fraudulent scheme that solicited at least $18 million from approximately 241 commodity pool participants to trade, among other things, commodity futures contracts, options on futures, and off-exchange foreign currency contracts. The Orders further find that Leon and Rangel misappropriated a combined total of more than $2.4 million of pool participants’ funds and issued false statements to pool participants regarding the profitability and value of their accounts. Specifically, Leon misappropriated nearly $1.6 million and Rangel nearly $819,000 of pool participants’ funds as “loans” and “advances” from the commodity pools, designed to disguise their misappropriation, the Orders find.
In a related criminal action, on November 6, 2013, Leon pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud (see United States v. Leon, No. 13-cr-249 (M.D. Fla. Oct. 2, 2013)). Leon has not yet been sentenced.
The CFTC’s litigation continues against Altamont Global Partners and Wilkins.
The CFTC thanks the National Futures Association for its assistance.
CFTC Division of Enforcement staff members responsible for this case are Rachel Hayes, Peter Riggs, Stephen Turley, Charles Marvine, Rick Glaser, and Richard Wagner.
Federal Court in Florida Orders More than $8 Million in Sanctions against Defendants Philip Leon and Paul Rangel for Commodity Pool Fraud and Misappropriation
In a Parallel Criminal Action, Leon Pleaded Guilty to Mail and Wire Fraud
Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) obtained federal court Orders requiring Defendants Philip Leon, of Altamonte Springs, Florida, to pay a $4 million civil monetary penalty and $1,598,343 in disgorgement and Paul Rangel, of Apopka, Florida, to pay a $1.7 million civil monetary penalty and $819,781 in disgorgement to settle CFTC charges related to a fraudulent commodity pool scheme. The consent Orders of permanent injunction, both entered on December 17, 2013 by Judge Gregory A. Presnell of the U.S. District Court for the Middle District of Florida, also impose permanent trading and registration bans against Leon and Rangel and prohibit them from violating provisions of the Commodity Exchange Act and a CFTC Regulation, as charged.
The Orders stem from a CFTC Complaint filed on July 16, 2012 against Leon and Rangel, as well as Defendants John G. Wilkins and their company Altamont Global Partners LLC (see CFTC Press Release 6315-12).
The Orders find that, from approximately March 2009 to at least June 22, 2012, Leon and Rangel operated a fraudulent scheme that solicited at least $18 million from approximately 241 commodity pool participants to trade, among other things, commodity futures contracts, options on futures, and off-exchange foreign currency contracts. The Orders further find that Leon and Rangel misappropriated a combined total of more than $2.4 million of pool participants’ funds and issued false statements to pool participants regarding the profitability and value of their accounts. Specifically, Leon misappropriated nearly $1.6 million and Rangel nearly $819,000 of pool participants’ funds as “loans” and “advances” from the commodity pools, designed to disguise their misappropriation, the Orders find.
In a related criminal action, on November 6, 2013, Leon pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud (see United States v. Leon, No. 13-cr-249 (M.D. Fla. Oct. 2, 2013)). Leon has not yet been sentenced.
The CFTC’s litigation continues against Altamont Global Partners and Wilkins.
The CFTC thanks the National Futures Association for its assistance.
CFTC Division of Enforcement staff members responsible for this case are Rachel Hayes, Peter Riggs, Stephen Turley, Charles Marvine, Rick Glaser, and Richard Wagner.
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING DECEMBER 14, 2013
SEASONALLY ADJUSTED DATA
In the week ending December 14, the advance figure for seasonally adjusted initial claims was 379,000, an increase of 10,000 from the previous week's figure of 369,000. The 4-week moving average was 343,500, an increase of 13,250 from the previous week's revised average of 330,250.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending December 7, an increase of 0.1 percentage point from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending December 7 was 2,884,000, an increase of 94,000 from the preceding week's revised level of 2,790,000. The 4-week moving average was 2,799,000, an increase of 4,250 from the preceding week's revised average of 2,794,750.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 414,002 in the week ending December 14, a decrease of 48,196 from the previous week. There were 401,429 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 2.2 percent during the week ending December 7, a decrease of 0.1 percentage point from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,878,730, a decrease of 81,111 from the preceding week. A year earlier, the rate was 2.5 percent and the volume was 3,244,564.
The total number of people claiming benefits in all programs for the week ending November 30 was 4,412,144, an increase of 606,051 from the previous week. There were 5,402,429 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending November 30.
Initial claims for UI benefits filed by former Federal civilian employees totaled 2,175 in the week ending December 7, an increase of 667 from the prior week. There were 2,356 initial claims filed by newly discharged veterans, an increase of 970 from the preceding week.
There were 22,439 former Federal civilian employees claiming UI benefits for the week ending November 30, an increase of 4,215 from the previous week. Newly discharged veterans claiming benefits totaled 32,937, an increase of 3,837 from the prior week.
States reported 1,374,031 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending November 30, an increase of 125,099 from the prior week. There were 2,096,545 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending December 7 were in Alaska (6.0), Puerto Rico (3.6), New Jersey (3.5), California (3.4), Connecticut (3.1), Pennsylvania (3.1), West Virginia (3.0), Wisconsin (3.0), Montana (2.9), and Oregon (2.9).
The largest increases in initial claims for the week ending December 7 were in California (+21,876), New York (+14,322), Pennsylvania (+14,004), Georgia (+11,582), and Texas (+9,761), while the largest decreases were in Ohio (-1,095), Kentucky (-838), Vermont (-400), Massachusetts (-317), and New Mexico (-176).
In the week ending December 14, the advance figure for seasonally adjusted initial claims was 379,000, an increase of 10,000 from the previous week's figure of 369,000. The 4-week moving average was 343,500, an increase of 13,250 from the previous week's revised average of 330,250.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending December 7, an increase of 0.1 percentage point from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending December 7 was 2,884,000, an increase of 94,000 from the preceding week's revised level of 2,790,000. The 4-week moving average was 2,799,000, an increase of 4,250 from the preceding week's revised average of 2,794,750.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 414,002 in the week ending December 14, a decrease of 48,196 from the previous week. There were 401,429 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 2.2 percent during the week ending December 7, a decrease of 0.1 percentage point from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,878,730, a decrease of 81,111 from the preceding week. A year earlier, the rate was 2.5 percent and the volume was 3,244,564.
The total number of people claiming benefits in all programs for the week ending November 30 was 4,412,144, an increase of 606,051 from the previous week. There were 5,402,429 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending November 30.
Initial claims for UI benefits filed by former Federal civilian employees totaled 2,175 in the week ending December 7, an increase of 667 from the prior week. There were 2,356 initial claims filed by newly discharged veterans, an increase of 970 from the preceding week.
There were 22,439 former Federal civilian employees claiming UI benefits for the week ending November 30, an increase of 4,215 from the previous week. Newly discharged veterans claiming benefits totaled 32,937, an increase of 3,837 from the prior week.
States reported 1,374,031 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending November 30, an increase of 125,099 from the prior week. There were 2,096,545 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending December 7 were in Alaska (6.0), Puerto Rico (3.6), New Jersey (3.5), California (3.4), Connecticut (3.1), Pennsylvania (3.1), West Virginia (3.0), Wisconsin (3.0), Montana (2.9), and Oregon (2.9).
The largest increases in initial claims for the week ending December 7 were in California (+21,876), New York (+14,322), Pennsylvania (+14,004), Georgia (+11,582), and Texas (+9,761), while the largest decreases were in Ohio (-1,095), Kentucky (-838), Vermont (-400), Massachusetts (-317), and New Mexico (-176).
SUBSIDIARY OF CONVERGEX GROUP & 2 EMPLOYEES PLEAD GUILTY TO SECURITIES FRAUD
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, December 18, 2013
Convergex Group Subsidiary and Two Employees Plead Guilty to Securities and Wire Fraud Charges
A brokerage subsidiary of ConvergEx Group LLC pleaded guilty today to charges of wire fraud and conspiracy to commit securities fraud and wire fraud. ConvergEx Group has also agreed to pay $43.8 million in criminal penalties and restitution as part of a deferred prosecution agreement with the Department of Justice. In addition, Jonathan Daspin, the head trader at the brokerage subsidiary, and Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, both pleaded guilty today to conspiracy to commit securities and wire fraud before U.S. District Judge Jose Linares in the District of New Jersey.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office, and Inspector in Charge Phillip Bartlett from the U.S. Postal Inspection Service (USPIS) made the announcement.
ConvergEx Global Markets Limited (CGM Limited), a former broker-dealer registered in Bermuda, has also agreed to plead guilty today. The department also filed today a criminal information in connection with a deferred prosecution agreement, charging ConvergEx Group with one count of conspiracy to commit securities fraud and wire fraud and one count of wire fraud. To resolve the charges, ConvergEx Group and CGM Limited have agreed to pay in total a criminal penalty of approximately $18.0 million and forfeit approximately $12.8 million, for a total penalty of $30.8 million, and additionally to pay restitution of approximately $12.8 million to defrauded customers.
In a parallel action, the U.S. Securities and Exchange Commission also reached a resolution today with three ConvergEx Group subsidiaries, Daspin and Lekargaren.
“As described in the guilty plea agreements and charging documents announced today, ConvergEx – which was a broker for some of the most sophisticated institutional investors in the world – along with several of its employees, engaged in a concerted and coordinated effort to fleece its clients by charging them millions of dollars in unwarranted fees – which ConvergEx called “trading profits,” or “spread” – and then concealing those charges from its clients through a pattern of deception,” said Acting Assistant Attorney General Mythili Raman. “Although the theft of money from ConvergEx’s clients was large in scale, the fraud scheme was committed in the most basic of ways: ConvergEx and its traders, plain and simple, lied to their clients to hide that they were stealing their money. This coordinated bilking of clients by a broker-dealer – accomplished through intentional and repeated misrepresentations – not only inflicted real financial losses on investors, but also undermines investors’ confidence in the integrity and reliability of the financial markets. As the guilty pleas and resolutions announced today show, we will not tolerate this type of criminal conduct and we will hold both institutions and individuals to account.”
“With today’s guilty pleas, ConvergEx and two of its employees admitted their roles in a scheme in which they committed securities fraud,” said Assistant Director in Charge Parlave. “By doing so, they hid the fact that they were secretly earning millions of dollars by deliberately fabricating transaction reports which were provided to clients with false details regarding their orders. The FBI will continue to investigate allegations of securities fraud and abuse to ensure those who participate in the global trading market are doing so fairly.”
“This is yet another example of the significant results that can be achieved when law enforcement agencies partner, share information, and collaborate,” said USPIS Inspector Bartlett. “The Inspection Service values its partnership with the FBI and SEC in this case.”
According to court documents, certain ConvergEx Group broker-dealers that provided agency brokerage services and disclosed to clients that they would charge commissions for their services regularly routed securities orders to CGM Limited in Bermuda so that it could take a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders. ConvergEx employees referred to such mark-ups and mark-downs as “spread,” “trading profits,” or “TP.”
To hide the fact that spread had been taken on trades, traders at CGM Limited and sales traders at a ConvergEx Group subsidiary in New York sent false transaction reports to clients with fabricated details regarding the execution orders, including the number of shares involved in a trade, the time at which a trade was executed and the price at which shares were either purchased or sold. CGM Limited traders, including Daspin, created these false reports using exchange data from transactions entered into by others on the same trade date as the trades that had been executed by CGM Limited on behalf of its clients. Daspin instructed a sales trader while creating a false report to “Please put all Prints in one spreadsheet in the least Friendly Format….If possible take this out of spreadsheet Format and make a PDF – Or put this in picture file or something tricky to manipulate.” In another instance, Daspin notified an executive that “We need to be creative putting something together as did not have time and sales for the price given. Fyi.” In total, CGM Limited took approximately $12.8 million in trading profits from these clients after it had sent the false statements to them.
Daspin and others also came up with a plan to continue taking spread on a client by violating the client’s instructions to provide “real-time” transactional data, i.e., an immediate data feed of the details of trades that CGM Limited executed for the client in offshore markets through foreign brokers. If the client’s instructions had been followed, CGM Limited’s traders would not have been able to take spread on the client’s trades. Daspin and other CGM Limited traders “turned off” real time for certain portions of the client’s orders and took spread while “real-time” was turned off. On several occasions, when the client asked why it was not receiving real-time data, Lekargeren falsely blamed it on various “IT” issues.
Certain employees of CGM Limited and the broker-dealers offering agency brokerage services also took other steps designed to conceal the fact that CGM Limited was taking spread and the fact that spread was included in the trade prices reported to clients, including: taking smaller amounts of spread on certain price-sensitive clients; taking larger amounts of spread when it was less likely to be discovered; insuring that the marked-up price they charged to clients was within the high or low price at which the security traded that day; and using multiple local brokers during the course of a trade so that a client would not be able to track the execution of the client’s order through publicly available resources.
The head of the division offering transition management services – which provided clients in the process of changing fund managers or investment strategies the ability to execute large orders to buy and sell securities – provided several clients with false information to hide trading profits. In July 2010, for example, this executive caused a client to be told that “no principal trading has been carried out in any transition” for that client, when this executive knew CGM Limited had traded in a principal capacity and had taken approximately $1.75 million of trading profits on the client’s trades a month earlier. After that false response was sent to the client, CGM Limited’s traders took approximately $4.5 million of additional trading profits on that client’s trades.
In addition, ConvergEx employees assisted an unaffiliated provider of transition services in concealing that it was receiving a 50 to 60 percent share of the trading profits CGM Limited was taking on the unaffiliated company’s clients, in violation of the unaffiliated company’s client agreements. The unaffiliated company sent invoices addressed to ConvergEx Group that falsely stated that they were for trading cost analysis, when in fact the invoices were sent to cover up that the payments were in fact for the unaffiliated company’s share of the spread taken by CGM Limited on its clients.
As part of the deferred prosecution agreement with ConvergEx Group, the department highlighted the internal investigation conducted by the company; its extraordinary and ongoing cooperation; its extensive remediation, including terminating officers and employees, ceasing all trading activities at CGM Limited and voluntarily relinquishing the subsidiary’s Bermudan securities license; and enhancing its compliance program and internal controls; as well as the guilty plea by CGM Limited and its agreement to pay restitution and the significant sanctions imposed by the SEC.
The case was investigated by the FBI’s Washington Field Office and the Washington, D.C., and New York offices of the U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorneys Justin Goodyear, Jason Linder and Patrick Pericak of the Criminal Division’s Fraud Section.
The SEC referred the matter to the Justice Department for investigation, and the department expresses its appreciation for the significant assistance provided by the SEC.
The department also recognizes the assistance of the Criminal Division’s Office of International Affairs, the Financial Industry Regulatory Authority, and the United States Attorney’s Office for the District of New Jersey.
Wednesday, December 18, 2013
Convergex Group Subsidiary and Two Employees Plead Guilty to Securities and Wire Fraud Charges
A brokerage subsidiary of ConvergEx Group LLC pleaded guilty today to charges of wire fraud and conspiracy to commit securities fraud and wire fraud. ConvergEx Group has also agreed to pay $43.8 million in criminal penalties and restitution as part of a deferred prosecution agreement with the Department of Justice. In addition, Jonathan Daspin, the head trader at the brokerage subsidiary, and Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, both pleaded guilty today to conspiracy to commit securities and wire fraud before U.S. District Judge Jose Linares in the District of New Jersey.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office, and Inspector in Charge Phillip Bartlett from the U.S. Postal Inspection Service (USPIS) made the announcement.
ConvergEx Global Markets Limited (CGM Limited), a former broker-dealer registered in Bermuda, has also agreed to plead guilty today. The department also filed today a criminal information in connection with a deferred prosecution agreement, charging ConvergEx Group with one count of conspiracy to commit securities fraud and wire fraud and one count of wire fraud. To resolve the charges, ConvergEx Group and CGM Limited have agreed to pay in total a criminal penalty of approximately $18.0 million and forfeit approximately $12.8 million, for a total penalty of $30.8 million, and additionally to pay restitution of approximately $12.8 million to defrauded customers.
In a parallel action, the U.S. Securities and Exchange Commission also reached a resolution today with three ConvergEx Group subsidiaries, Daspin and Lekargaren.
“As described in the guilty plea agreements and charging documents announced today, ConvergEx – which was a broker for some of the most sophisticated institutional investors in the world – along with several of its employees, engaged in a concerted and coordinated effort to fleece its clients by charging them millions of dollars in unwarranted fees – which ConvergEx called “trading profits,” or “spread” – and then concealing those charges from its clients through a pattern of deception,” said Acting Assistant Attorney General Mythili Raman. “Although the theft of money from ConvergEx’s clients was large in scale, the fraud scheme was committed in the most basic of ways: ConvergEx and its traders, plain and simple, lied to their clients to hide that they were stealing their money. This coordinated bilking of clients by a broker-dealer – accomplished through intentional and repeated misrepresentations – not only inflicted real financial losses on investors, but also undermines investors’ confidence in the integrity and reliability of the financial markets. As the guilty pleas and resolutions announced today show, we will not tolerate this type of criminal conduct and we will hold both institutions and individuals to account.”
“With today’s guilty pleas, ConvergEx and two of its employees admitted their roles in a scheme in which they committed securities fraud,” said Assistant Director in Charge Parlave. “By doing so, they hid the fact that they were secretly earning millions of dollars by deliberately fabricating transaction reports which were provided to clients with false details regarding their orders. The FBI will continue to investigate allegations of securities fraud and abuse to ensure those who participate in the global trading market are doing so fairly.”
“This is yet another example of the significant results that can be achieved when law enforcement agencies partner, share information, and collaborate,” said USPIS Inspector Bartlett. “The Inspection Service values its partnership with the FBI and SEC in this case.”
According to court documents, certain ConvergEx Group broker-dealers that provided agency brokerage services and disclosed to clients that they would charge commissions for their services regularly routed securities orders to CGM Limited in Bermuda so that it could take a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders. ConvergEx employees referred to such mark-ups and mark-downs as “spread,” “trading profits,” or “TP.”
To hide the fact that spread had been taken on trades, traders at CGM Limited and sales traders at a ConvergEx Group subsidiary in New York sent false transaction reports to clients with fabricated details regarding the execution orders, including the number of shares involved in a trade, the time at which a trade was executed and the price at which shares were either purchased or sold. CGM Limited traders, including Daspin, created these false reports using exchange data from transactions entered into by others on the same trade date as the trades that had been executed by CGM Limited on behalf of its clients. Daspin instructed a sales trader while creating a false report to “Please put all Prints in one spreadsheet in the least Friendly Format….If possible take this out of spreadsheet Format and make a PDF – Or put this in picture file or something tricky to manipulate.” In another instance, Daspin notified an executive that “We need to be creative putting something together as did not have time and sales for the price given. Fyi.” In total, CGM Limited took approximately $12.8 million in trading profits from these clients after it had sent the false statements to them.
Daspin and others also came up with a plan to continue taking spread on a client by violating the client’s instructions to provide “real-time” transactional data, i.e., an immediate data feed of the details of trades that CGM Limited executed for the client in offshore markets through foreign brokers. If the client’s instructions had been followed, CGM Limited’s traders would not have been able to take spread on the client’s trades. Daspin and other CGM Limited traders “turned off” real time for certain portions of the client’s orders and took spread while “real-time” was turned off. On several occasions, when the client asked why it was not receiving real-time data, Lekargeren falsely blamed it on various “IT” issues.
Certain employees of CGM Limited and the broker-dealers offering agency brokerage services also took other steps designed to conceal the fact that CGM Limited was taking spread and the fact that spread was included in the trade prices reported to clients, including: taking smaller amounts of spread on certain price-sensitive clients; taking larger amounts of spread when it was less likely to be discovered; insuring that the marked-up price they charged to clients was within the high or low price at which the security traded that day; and using multiple local brokers during the course of a trade so that a client would not be able to track the execution of the client’s order through publicly available resources.
The head of the division offering transition management services – which provided clients in the process of changing fund managers or investment strategies the ability to execute large orders to buy and sell securities – provided several clients with false information to hide trading profits. In July 2010, for example, this executive caused a client to be told that “no principal trading has been carried out in any transition” for that client, when this executive knew CGM Limited had traded in a principal capacity and had taken approximately $1.75 million of trading profits on the client’s trades a month earlier. After that false response was sent to the client, CGM Limited’s traders took approximately $4.5 million of additional trading profits on that client’s trades.
In addition, ConvergEx employees assisted an unaffiliated provider of transition services in concealing that it was receiving a 50 to 60 percent share of the trading profits CGM Limited was taking on the unaffiliated company’s clients, in violation of the unaffiliated company’s client agreements. The unaffiliated company sent invoices addressed to ConvergEx Group that falsely stated that they were for trading cost analysis, when in fact the invoices were sent to cover up that the payments were in fact for the unaffiliated company’s share of the spread taken by CGM Limited on its clients.
As part of the deferred prosecution agreement with ConvergEx Group, the department highlighted the internal investigation conducted by the company; its extraordinary and ongoing cooperation; its extensive remediation, including terminating officers and employees, ceasing all trading activities at CGM Limited and voluntarily relinquishing the subsidiary’s Bermudan securities license; and enhancing its compliance program and internal controls; as well as the guilty plea by CGM Limited and its agreement to pay restitution and the significant sanctions imposed by the SEC.
The case was investigated by the FBI’s Washington Field Office and the Washington, D.C., and New York offices of the U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorneys Justin Goodyear, Jason Linder and Patrick Pericak of the Criminal Division’s Fraud Section.
The SEC referred the matter to the Justice Department for investigation, and the department expresses its appreciation for the significant assistance provided by the SEC.
The department also recognizes the assistance of the Criminal Division’s Office of International Affairs, the Financial Industry Regulatory Authority, and the United States Attorney’s Office for the District of New Jersey.
FDA, EU LAUNCH JOINT INITIATIVE TO SHARE INFORMATION IN SUPPORT OF GENERIC DRUG APPROVALS
FROM: U.S. FOOD AND DRUG ADMINISTRATION FDA,
For Immediate Release: Dec. 18, 2013
FDA and European Medicines Agency launch generic drug application inspections initiative
The U.S. Food and Drug Administration and the European Medicines Agency (EMA) today announced the launch of a joint initiative to share information on inspections of bioequivalence studies submitted in support of generic drug approvals. This collaborative effort provides a mechanism to conduct joint facility inspections for generic drug applications submitted to both agencies.
Studies submitted for generic drug applications must demonstrate scientifically that a generic drug is “bioequivalent.” These studies help demonstrate that the generic drug performs in the same manner as the brand name drug. The FDA and the regulatory authorities in the European Union (EU) inspect facilities that conduct these studies to ensure data submitted to the agencies are reliable.
Taking part in this initiative are the EMA and the EU member states France, Germany, Italy, the Netherlands and the United Kingdom.
“Our continued collaboration with the EMA and the EU enhances our ability to leverage inspection resources and helps us meet the challenges of increased globalization in drug development,” said Janet Woodcock, M.D., director of the FDA’s Center for Drug Evaluation and Research. “By streamlining the inspection process for generic drug applications, we will help consumers gain access to safe and effective generic drugs.”
Key objectives of the initiative are to:
• streamline information sharing on inspections of bioequivalence studies conducted and planned for generic drug applications (inspectional information will be shared for clinical facilities, analytical facilities or both);
• share information about negative inspection outcomes that reveal system problems at a facility;
• conduct joint inspections at facilities all over the world; and
• provide training opportunities to improve bioequivalence inspections.
This initiative will be implemented using the confidentiality arrangements established among the European Commission, the EMA, interested EU member states and the FDA.
This agreement includes an 18-month pilot phase and follows on the successful 2009 EMA-FDA Good Clinical Practices (GCP) Initiative, designed by the agencies to ensure that clinical trials data submitted in new drug applications in the United States and Europe are conducted ethically and are reliable.
For Immediate Release: Dec. 18, 2013
FDA and European Medicines Agency launch generic drug application inspections initiative
The U.S. Food and Drug Administration and the European Medicines Agency (EMA) today announced the launch of a joint initiative to share information on inspections of bioequivalence studies submitted in support of generic drug approvals. This collaborative effort provides a mechanism to conduct joint facility inspections for generic drug applications submitted to both agencies.
Studies submitted for generic drug applications must demonstrate scientifically that a generic drug is “bioequivalent.” These studies help demonstrate that the generic drug performs in the same manner as the brand name drug. The FDA and the regulatory authorities in the European Union (EU) inspect facilities that conduct these studies to ensure data submitted to the agencies are reliable.
Taking part in this initiative are the EMA and the EU member states France, Germany, Italy, the Netherlands and the United Kingdom.
“Our continued collaboration with the EMA and the EU enhances our ability to leverage inspection resources and helps us meet the challenges of increased globalization in drug development,” said Janet Woodcock, M.D., director of the FDA’s Center for Drug Evaluation and Research. “By streamlining the inspection process for generic drug applications, we will help consumers gain access to safe and effective generic drugs.”
Key objectives of the initiative are to:
• streamline information sharing on inspections of bioequivalence studies conducted and planned for generic drug applications (inspectional information will be shared for clinical facilities, analytical facilities or both);
• share information about negative inspection outcomes that reveal system problems at a facility;
• conduct joint inspections at facilities all over the world; and
• provide training opportunities to improve bioequivalence inspections.
This initiative will be implemented using the confidentiality arrangements established among the European Commission, the EMA, interested EU member states and the FDA.
This agreement includes an 18-month pilot phase and follows on the successful 2009 EMA-FDA Good Clinical Practices (GCP) Initiative, designed by the agencies to ensure that clinical trials data submitted in new drug applications in the United States and Europe are conducted ethically and are reliable.
Thursday, December 19, 2013
FORMER MICROSOFT PORTFOLIO MANAGER AND BUSINESS PARTNER CHARGED WITH INSIDER TRADING BY SEC
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today charged a senior portfolio manager at Microsoft Corporation and his friend and business partner with insider trading ahead of company announcements.
The SEC alleges that Brian D. Jorgenson, who lives in Lynwood, Wash., obtained confidential information about upcoming company news through his work in Microsoft’s corporate finance and investments division. Jorgenson tipped Sean T. Stokke of Seattle in advance of the Microsoft announcements, the most recent occurring in October. After Stokke traded on the inside information that Jorgenson provided, the two equally split the illicit profits in their shared brokerage accounts. They made joint trading decisions with the goal of generating enough profits to create their own hedge fund.
In a parallel action, the U.S. Attorney’s Office for the Western District of Washington today announced criminal charges against Jorgenson and Stokke.
“Abusing access to Microsoft’s confidential information and generating unlawful trading profits is not a wise or legal business model for starting a hedge fund,” said Daniel M. Hawke, chief of the SEC Enforcement Division’s Market Abuse Unit and director of the SEC’s Philadelphia Regional Office. “We thwarted the misguided plans of Jorgenson and Stokke as they sought to illegally profit at others’ expense.”
According to the SEC’s complaint filed in U.S. District Court for the Western District of Washington, Jorgenson and Stokke made a combined $393,125 in illicit profits in their scheme, which began in April 2012.
The SEC alleges that Stokke first traded in advance of a public announcement that Microsoft intended to invest $300 million in Barnes & Noble’s e-reader business. Jorgenson learned of the impending transaction after his department became involved in the financing aspects of the deal. Jorgenson tipped Stokke so he could purchase approximately $14,000 worth of call options on Barnes & Noble common stock. Following a joint public announcement on April 30, Barnes & Noble’s stock price closed at $20.75 per share, a 51.68 percent increase from the previous day. Jorgenson and Stokke made nearly $185,000 in ill-gotten trading profits.
The SEC alleges that Stokke later traded in advance of Microsoft’s fourth-quarter earnings announcement in July 2013. As part of his duties at Microsoft, Jorgenson prepared a written analysis of how the market would react to the negative news that Microsoft’s fourth quarter earnings were more than 11 percent below consensus estimates. He estimated that Microsoft’s stock price would decline by at least six percent. Jorgenson tipped this confidential information to Stokke, who purchased almost $50,000 worth of Microsoft options. After Microsoft’s announcement on July 18, its stock price declined more than 11 percent the next day from $35.44 to $31.40 per share. Jorgenson and Stokke realized more than $195,000 in illicit profits.
According to the SEC’s complaint, Stokke traded in advance of another Microsoft announcement on Oct. 24, 2013. Jorgenson was aware that the company would be announcing first quarter 2014 earnings that were more than 14 percent higher than consensus estimates. Rather than purchase Microsoft securities directly, Jorgenson and Stokke purchased more than $45,000 worth of call options on an exchange-traded fund in which Microsoft comprised more than eight percent of the fund’s holdings. Following the announcement, Microsoft’s share price increased nearly six percent and the price of the ETF increased 0.51 percent. Jorgenson and Stokke made approximately $13,000 in illegal trading profits.
Jorgenson and Stokke are charged with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, both directly and pursuant to 20(d) of the Exchange Act. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and financial penalties against Jorgenson and Stokke as well as an officer-and-director bar against Jorgenson.
The SEC’s investigation was conducted by Brendan P. McGlynn, Patricia A. Paw, John S. Rymas, and Daniel L. Koster of the Philadelphia Regional Office. The SEC’s litigation will be led by John V. Donnelly and G. Jeffery Boujoukos.
The SEC appreciates the assistance of the U.S. Attorney’s Office for the Western District of Washington, Federal Bureau of Investigation, Options Regulatory Surveillance Authority, and Financial Industry Regulatory Authority.
The Securities and Exchange Commission today charged a senior portfolio manager at Microsoft Corporation and his friend and business partner with insider trading ahead of company announcements.
The SEC alleges that Brian D. Jorgenson, who lives in Lynwood, Wash., obtained confidential information about upcoming company news through his work in Microsoft’s corporate finance and investments division. Jorgenson tipped Sean T. Stokke of Seattle in advance of the Microsoft announcements, the most recent occurring in October. After Stokke traded on the inside information that Jorgenson provided, the two equally split the illicit profits in their shared brokerage accounts. They made joint trading decisions with the goal of generating enough profits to create their own hedge fund.
In a parallel action, the U.S. Attorney’s Office for the Western District of Washington today announced criminal charges against Jorgenson and Stokke.
“Abusing access to Microsoft’s confidential information and generating unlawful trading profits is not a wise or legal business model for starting a hedge fund,” said Daniel M. Hawke, chief of the SEC Enforcement Division’s Market Abuse Unit and director of the SEC’s Philadelphia Regional Office. “We thwarted the misguided plans of Jorgenson and Stokke as they sought to illegally profit at others’ expense.”
According to the SEC’s complaint filed in U.S. District Court for the Western District of Washington, Jorgenson and Stokke made a combined $393,125 in illicit profits in their scheme, which began in April 2012.
The SEC alleges that Stokke first traded in advance of a public announcement that Microsoft intended to invest $300 million in Barnes & Noble’s e-reader business. Jorgenson learned of the impending transaction after his department became involved in the financing aspects of the deal. Jorgenson tipped Stokke so he could purchase approximately $14,000 worth of call options on Barnes & Noble common stock. Following a joint public announcement on April 30, Barnes & Noble’s stock price closed at $20.75 per share, a 51.68 percent increase from the previous day. Jorgenson and Stokke made nearly $185,000 in ill-gotten trading profits.
The SEC alleges that Stokke later traded in advance of Microsoft’s fourth-quarter earnings announcement in July 2013. As part of his duties at Microsoft, Jorgenson prepared a written analysis of how the market would react to the negative news that Microsoft’s fourth quarter earnings were more than 11 percent below consensus estimates. He estimated that Microsoft’s stock price would decline by at least six percent. Jorgenson tipped this confidential information to Stokke, who purchased almost $50,000 worth of Microsoft options. After Microsoft’s announcement on July 18, its stock price declined more than 11 percent the next day from $35.44 to $31.40 per share. Jorgenson and Stokke realized more than $195,000 in illicit profits.
According to the SEC’s complaint, Stokke traded in advance of another Microsoft announcement on Oct. 24, 2013. Jorgenson was aware that the company would be announcing first quarter 2014 earnings that were more than 14 percent higher than consensus estimates. Rather than purchase Microsoft securities directly, Jorgenson and Stokke purchased more than $45,000 worth of call options on an exchange-traded fund in which Microsoft comprised more than eight percent of the fund’s holdings. Following the announcement, Microsoft’s share price increased nearly six percent and the price of the ETF increased 0.51 percent. Jorgenson and Stokke made approximately $13,000 in illegal trading profits.
Jorgenson and Stokke are charged with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, both directly and pursuant to 20(d) of the Exchange Act. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and financial penalties against Jorgenson and Stokke as well as an officer-and-director bar against Jorgenson.
The SEC’s investigation was conducted by Brendan P. McGlynn, Patricia A. Paw, John S. Rymas, and Daniel L. Koster of the Philadelphia Regional Office. The SEC’s litigation will be led by John V. Donnelly and G. Jeffery Boujoukos.
The SEC appreciates the assistance of the U.S. Attorney’s Office for the Western District of Washington, Federal Bureau of Investigation, Options Regulatory Surveillance Authority, and Financial Industry Regulatory Authority.
21 PEOPLE RECEIVE A COMMUTATION OR PARDON FROM PRESIDENT OBAMA
FROM: U.S. JUSTICE DEPARTMENT
Thursday, December 19, 2013
President Obama Grants Commutations and Pardons
Today President Barack Obama granted clemency to 21 individuals, consisting of eight commutations and 13 pardons.
The President granted commutations to the following eight individuals:
Clarence Aaron - Mobile, Ala.
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base; possession with intent to distribute cocaine; attempt to possess cocaine with intent to distribute (Southern District of Alabama)
Sentence: Life imprisonment, five years' supervised release (Dec. 10, 1993)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Stephanie Yvette George - Pensacola, Fla.
Offense: Conspiracy to possess cocaine base with intent to distribute (Northern District of Florida)
Sentence: Life imprisonment, ten years' supervised release (May 5, 1997)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Ezell Gilbert - Tampa, Fla.
Offense: Possession with intent to deliver cocaine base; possession with intent to distribute marijuana (Middle District of Florida)
Sentence: 292 months' imprisonment, five years' supervised release (Mar. 25, 1997)
Commutation Grant: Prison sentence commuted to time already served
Helen R. Alexander Gray - Ty Ty, Ga.
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base; possession of a firearm by a convicted felon (Middle District of Georgia)
Sentence: 240 months' imprisonment; 10 years’ supervised release (Oct. 8, 1996)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Jason Hernandez - McKinney, Tex.
Offense: Conspiracy to possess with intent to distribute controlled substances; possession with intent to distribute cocaine base; possession with intent to distribute methamphetamine; possession with intent to distribute a mixture of methamphetamine and cocaine hydrochloride; distribution of a controlled substance within 1,000 feet of a protected property; establishing a place for manufacture and distribution of controlled substances (Eastern District of Texas)
Sentence: Life imprisonment; eight years' supervised release; $5,000 fine (Oct. 2, 1998)
Commutation Grant: Prison sentence commuted to 240 months (20 years)
Ricky Eugene Patterson - Fort Pierce, Fla.
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base (Southern District of Florida)
Sentence: Life imprisonment, 10 years’ supervised release (Aug. 3, 1995)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Billy Ray Wheelock - Belton, Tex.
Offense: Conspiracy to distribute more than 50 grams of crack cocaine; possession with intent to distribute more than 5 grams of crack cocaine within 1,000 feet of a school; possession with intent to distribute crack cocaine; aiding and abetting possession with intent to distribute and distributing more than 5 grams of crack cocaine within 1,000 feet of a school (Western District of Texas)
Sentence: Life imprisonment, 10 years' supervised release, $3,000 fine (Jun. 9, 1993)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Reynolds Allen Wintersmith, Jr. - Rockford, Ill.
Offense: Conspiracy to possess with intent to distribute and distribute cocaine and cocaine base; possession with intent to distribute cocaine base (Northern District of Illinois)
Sentence: Life imprisonment, five years' supervised release, $1,000 fine (Nov. 23, 1994)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
The President granted pardons to the following thirteen individuals:
William Ricardo Alvarez - Marietta, Ga.
Offense: Conspiracy to possess with intent to distribute heroin ; conspiracy to import heroin (District of Puerto Rico)
Sentence: Time served after service of nine months' imprisonment, four years' supervised release (Apr. 30, 1997; amended Jul. 31, 1997)
Charlie Lee Davis, Jr . - Wetumpka, Ala.
Offense: Possession with intent to distribute and distribution of cocaine base; use of a minor to distribute cocaine base (Middle District of Alabama)
Sentence: 87 months' imprisonment, five years' supervised release (Mar. 21, 1995)
Ronald Eugene Greenwood - Crane, Mo.
Offense: Conspiracy to violate the Clean Water Act (District of South Dakota)
Sentence: Three years' probation, conditioned on six months' home confinement and 100 hours’ community service, $5,000 restitution, $1,000 fine (Nov. 18, 1996)
Little Joe Hatch , aka Joe Hatch Sr. - Lake Placid, Fla.
Offense: Possession with intent to distribute marijuana (Southern District of Florida)
Sentence: 60 months' imprisonment, four years' supervised release (May 15, 1990)
Martin Alan Hatcher . - Foley, Ala.
Offense: Distribution and possession with intent to distribute marijuana (Southern District of Alabama)
Sentence: Five years' probation (Nov. 9, 1992)
Derek James Laliberte - Auburn, Me.
Offense: Money laundering (District of Maine)
Sentence: 18 months imprisonment, 2 years' supervised release (Oct. 2, 1992, as amended May 21, 1993)
Alfred J. Mack - Manassas, Va.
Offense: Unlawful distribution of heroin (District of Columbia Superior Court)
Sentence: 18 to 54 months' imprisonment (Apr. 5, 1982)
Robert Andrew Schindler - Goshen, Va.
Offense: Conspiracy to commit wire fraud; conspiracy to commit mail and wire fraud (District of Utah)
Sentence: Three years' probation conditioned on four months' home confinement, $10,000 restitution (May 14, 1996)
Willie Shaw, Jr. - Myrtle Beach, S.C.
Offense: Armed bank robbery (District of South Carolina)
Sentence: Fifteen years' imprisonment (Aug. 7, 1974)
Kimberly Lynn Stout , formerly known as Kimberly Lynn Cooley - Bassett, Va.
Offense: Bank embezzlement; false entries in the books of a lending institution (Western District of Virginia)
Sentence: One day of imprisonment, three years' supervised release, conditioned on five months’ home detention) (Nov. 9, 1993)
Bernard Anthony Sutton, Jr. - Norfolk, Va.
Offense: Theft of personal property (Eastern District of Virginia)
Sentence: Three years' probation, $825 restitution, $500 fine (Apr. 4, 1989)
Chris DeAnn Switzer , formerly known as Chris DeAnn Rasco - Omaha, Neb.
Offense: Conspiracy to violate narcotics laws (methamphetamine) (District of Nebraska)
Sentence: Four years' probation, conditioned on six months’ home confinement and 200 hours' community service (Jun. 25, 1996)
Miles Thomas Wilson - Williamsburg, Ohio.
Offense: Mail fraud (Southern District of Ohio)
Sentence: Three years’ probation (Jul. 15, 1981)
Thursday, December 19, 2013
President Obama Grants Commutations and Pardons
Today President Barack Obama granted clemency to 21 individuals, consisting of eight commutations and 13 pardons.
The President granted commutations to the following eight individuals:
Clarence Aaron - Mobile, Ala.
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base; possession with intent to distribute cocaine; attempt to possess cocaine with intent to distribute (Southern District of Alabama)
Sentence: Life imprisonment, five years' supervised release (Dec. 10, 1993)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Stephanie Yvette George - Pensacola, Fla.
Offense: Conspiracy to possess cocaine base with intent to distribute (Northern District of Florida)
Sentence: Life imprisonment, ten years' supervised release (May 5, 1997)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Ezell Gilbert - Tampa, Fla.
Offense: Possession with intent to deliver cocaine base; possession with intent to distribute marijuana (Middle District of Florida)
Sentence: 292 months' imprisonment, five years' supervised release (Mar. 25, 1997)
Commutation Grant: Prison sentence commuted to time already served
Helen R. Alexander Gray - Ty Ty, Ga.
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base; possession of a firearm by a convicted felon (Middle District of Georgia)
Sentence: 240 months' imprisonment; 10 years’ supervised release (Oct. 8, 1996)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Jason Hernandez - McKinney, Tex.
Offense: Conspiracy to possess with intent to distribute controlled substances; possession with intent to distribute cocaine base; possession with intent to distribute methamphetamine; possession with intent to distribute a mixture of methamphetamine and cocaine hydrochloride; distribution of a controlled substance within 1,000 feet of a protected property; establishing a place for manufacture and distribution of controlled substances (Eastern District of Texas)
Sentence: Life imprisonment; eight years' supervised release; $5,000 fine (Oct. 2, 1998)
Commutation Grant: Prison sentence commuted to 240 months (20 years)
Ricky Eugene Patterson - Fort Pierce, Fla.
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base (Southern District of Florida)
Sentence: Life imprisonment, 10 years’ supervised release (Aug. 3, 1995)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Billy Ray Wheelock - Belton, Tex.
Offense: Conspiracy to distribute more than 50 grams of crack cocaine; possession with intent to distribute more than 5 grams of crack cocaine within 1,000 feet of a school; possession with intent to distribute crack cocaine; aiding and abetting possession with intent to distribute and distributing more than 5 grams of crack cocaine within 1,000 feet of a school (Western District of Texas)
Sentence: Life imprisonment, 10 years' supervised release, $3,000 fine (Jun. 9, 1993)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Reynolds Allen Wintersmith, Jr. - Rockford, Ill.
Offense: Conspiracy to possess with intent to distribute and distribute cocaine and cocaine base; possession with intent to distribute cocaine base (Northern District of Illinois)
Sentence: Life imprisonment, five years' supervised release, $1,000 fine (Nov. 23, 1994)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
The President granted pardons to the following thirteen individuals:
William Ricardo Alvarez - Marietta, Ga.
Offense: Conspiracy to possess with intent to distribute heroin ; conspiracy to import heroin (District of Puerto Rico)
Sentence: Time served after service of nine months' imprisonment, four years' supervised release (Apr. 30, 1997; amended Jul. 31, 1997)
Charlie Lee Davis, Jr . - Wetumpka, Ala.
Offense: Possession with intent to distribute and distribution of cocaine base; use of a minor to distribute cocaine base (Middle District of Alabama)
Sentence: 87 months' imprisonment, five years' supervised release (Mar. 21, 1995)
Ronald Eugene Greenwood - Crane, Mo.
Offense: Conspiracy to violate the Clean Water Act (District of South Dakota)
Sentence: Three years' probation, conditioned on six months' home confinement and 100 hours’ community service, $5,000 restitution, $1,000 fine (Nov. 18, 1996)
Little Joe Hatch , aka Joe Hatch Sr. - Lake Placid, Fla.
Offense: Possession with intent to distribute marijuana (Southern District of Florida)
Sentence: 60 months' imprisonment, four years' supervised release (May 15, 1990)
Martin Alan Hatcher . - Foley, Ala.
Offense: Distribution and possession with intent to distribute marijuana (Southern District of Alabama)
Sentence: Five years' probation (Nov. 9, 1992)
Derek James Laliberte - Auburn, Me.
Offense: Money laundering (District of Maine)
Sentence: 18 months imprisonment, 2 years' supervised release (Oct. 2, 1992, as amended May 21, 1993)
Alfred J. Mack - Manassas, Va.
Offense: Unlawful distribution of heroin (District of Columbia Superior Court)
Sentence: 18 to 54 months' imprisonment (Apr. 5, 1982)
Robert Andrew Schindler - Goshen, Va.
Offense: Conspiracy to commit wire fraud; conspiracy to commit mail and wire fraud (District of Utah)
Sentence: Three years' probation conditioned on four months' home confinement, $10,000 restitution (May 14, 1996)
Willie Shaw, Jr. - Myrtle Beach, S.C.
Offense: Armed bank robbery (District of South Carolina)
Sentence: Fifteen years' imprisonment (Aug. 7, 1974)
Kimberly Lynn Stout , formerly known as Kimberly Lynn Cooley - Bassett, Va.
Offense: Bank embezzlement; false entries in the books of a lending institution (Western District of Virginia)
Sentence: One day of imprisonment, three years' supervised release, conditioned on five months’ home detention) (Nov. 9, 1993)
Bernard Anthony Sutton, Jr. - Norfolk, Va.
Offense: Theft of personal property (Eastern District of Virginia)
Sentence: Three years' probation, $825 restitution, $500 fine (Apr. 4, 1989)
Chris DeAnn Switzer , formerly known as Chris DeAnn Rasco - Omaha, Neb.
Offense: Conspiracy to violate narcotics laws (methamphetamine) (District of Nebraska)
Sentence: Four years' probation, conditioned on six months’ home confinement and 200 hours' community service (Jun. 25, 1996)
Miles Thomas Wilson - Williamsburg, Ohio.
Offense: Mail fraud (Southern District of Ohio)
Sentence: Three years’ probation (Jul. 15, 1981)
U.S. DEFENSE DEPARTMENT CONTRACTS FOR DECEMBER 19, 2013
FROM: U.S. DEFENSE DEPARTMENT
CONTRACTS
DEFENSE LOGISTICS AGENCY
Pacific Unlimited Inc., Barrigada, Guam, has been awarded a maximum $262,500,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for subsistence prime vendor support for various customers in Guam. This contract is a competitive acquisition and there were three offers. Location of performance is Guam with an April 17, 2019 performance completion date. This is a 64-month base contract with no option periods. Using military services are Navy and federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.; (SPM300-14-D-3735). (Awarded on Dec. 18, 2013)
TXU Energy Retail Company LLC, Irving, Texas, has been awarded a maximum $24,753,778 fixed-price with economic-price-adjustment contract for electricity and ancillary services. This contract is a competitive acquisition and five offers were received. This is a 36 month contract. Location of performance is Texas with a Jan. 30, 2017 performance completion date. Using service is National Aeronautics and Space Administration. Type of appropriation is fiscal 2014 service funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va.; (SPE600-14-D-8002). (Awarded on Dec. 17, 2013)
Federal Prison Industries, Washington, D.C., has been awarded a maximum $15,948,000 modification (P00012) exercising the second one-year option period on a one-year base contract (SPM1C1-12-D-F503) with two one-year option periods for extreme cold wet weather trousers. This is a firm-fixed-price contract. Locations of performance are District of Columbia and Kentucky with a Dec. 24, 2014 performance completion date. Using military service is Army. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
Northrop Grumman, Woodland Hills, Calif., has been awarded a maximum $7,784,925 un-definitized contract for the manufacture and delivery of computers for Navy support services. This contract is a sole source acquisition. Location of performance is California with a December 2015 performance completion date. This is a two-year base contract. Using military service is Navy. Type of appropriation is fiscal 2014 Navy funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pa.; (SPRPA1-09-G-001Z-5011).
AIR FORCE
Lockheed Martin Missiles and Fire Control, Orlando, Fla., has been awarded a $232,545,447 firm-fixed price and cost-plus-fixed-fee contract for the joint air to surface standoff missile (JASSM) baseline missiles (190 each) and JASSM extended range (ER) missiles (40 each), systems engineering, foreign military sales test assets, ER avionics bulkhead value engineering change proposal - cost share savings, tooling and test equipment, Baseline JASSM Weapon Systems Evaluation Program and Obsolescence Management Oversight. Work will be performed at Orlando, Fla., and Troy, Ala., and expected to be completed by Nov. 30, 2016. This award is a result of a sole source acquisition and one offer was solicited and one offer was received. Fiscal 2012 and 2013 missile procurement funds in the amount of $232,545,447 are being obligated at time of award. This contract is three percent foreign military sales for Finland and Australia. Air Force Life Cycle Management Center/ EBJK, Eglin Air Force Base, Fla., is the contracting activity (FA8682-14-C-0069).
Lockheed Martin Missiles and Fire Control, Orlando, Fla., has been awarded a $216,475,072 firm-fixed-price and cost-plus-fixed-fee contract for the Joint Air to Surface Standoff Missile (JASSM) Baseline Missiles (150 each) and JASSM Extended Range (ER) Missiles (60 each), ER Avionics Bulkhead Value Engineering Change Proposal - Cost Share Savings, and Obsolescence Management Oversight. Work will be performed at Orlando, Fla., and Troy, Ala., and expected to be completed by Nov. 30, 2016. This award is a result of a sole source acquisition and one offer was solicited and one offer was received. Fiscal 2013 and 2014 missile procurement funds in the amount of $216,475,072 are being obligated at time of award. Air Force Life Cycle Management Center/EBJK, Eglin Air Force Base, Fla., is the contracting activity (FA8682-14-C-0084).
Raytheon Missiles Systems, Tucson Ariz., has been awarded a $40,000,000 indefinite-delivery/indefinite-quantity contract for system improvements to include design, development, and test of the AIM-120D missile. Work will be performed at Tucson, Ariz., and is expected to be complete by March 31, 2015. This award is the result of a sole source acquisition. Fiscal 2013 and 2014 research, development, test and evaluation funds in the amount of $3,993,942 are being obligated at time of award. Air Force Life Cycle Management Center/EBA, Eglin Air Force Base, Fla., is the contracting activity (FA8675-14-D-0082).
Raytheon Network Centric Systems, Aberdeen Proving Ground, Md., has been awarded a $12,878,000, firm-fixed-price contract for Identification Friend or Foe (IFF) AN/APX-114 Interrogators. The contractor will provide 94 IFFs for the Royal Saudi Air Force. Work will be performed at Largo, Fla., and is expected to be complete Sept. 29, 2017. This award is the result of a sole-source acquisition. This contract is 100 percent in support of foreign military sales for Saudi Arabia. Air Force Life Cycle Management Center/WNKCB, Robins AFB, Ga., is the contracting activity. (FA8540-14-C-0002)
Raytheon Network Centric Systems, Aberdeen Proving Ground, Md., has been awarded an $11,662,862 firm-fixed-price contract for identification friend or foe (IFF) AN/APX-119 transponders. The contractor will provide 94 IFFs for the Royal Saudi Air Force. Work will be performed at Largo, Fla., and AEC Saudi Arabia, and is expected to be complete July 31, 2017. This award is the result of a sole source acquisition. This contract is 100 percent in support of foreign military sales for Saudi Arabia. Air Force Life Cycle Management Center/WNKCB, Robins Air Force Base, Ga., is the contracting activity. (FA8540-14-C-0003)
Lockheed Martin Missiles and Fire Control, Orlando, Fla., has been awarded an $8,808,979 (not-to-exceed) firm-fixed-price modification (P00004) on an existing contract (FA8540-12-C-0012) for sniper advanced targeting pods (ATP) for the Royal Saudi Air Force. The contractor will provide compact multiband data link software and firmware configuration support on the RSAF's F-15SA aircraft and provide resources required for the management, fabrication, repair, support, testing and shipping of its non-developmental item sniper ATP system. Work will be performed at Orlando, Fla., and is expected to be complete by November 2016. This award is the result of a source directed acquisition and is 100 percent foreign military sales for Saudi Arabia. Air Force Life Cycle Management Center/WNKCB, Robins Air Force Base, Ga., is the contracting activity.
ARMY
General Dynamics C4 Systems Inc., Scottsdale, Ariz., was awarded a $107,309,000 modification (P00402) to contract W15P7T-04-C-E405 to procure 1500 Manpack radio kits and 500 dismount kits. Fiscal 2014 other procurement, Army funds in the amount of $106,410,000 were obligated at the time of the award. Estimated completion date is Jan. 30, 2015. Bids were solicited via the Internet with two received. Work will be performed in Scottsdale, Ariz. Army Contracting Command, Aberdeen, Md., is the contracting activity.
DynCorp International LLC, Fort Worth, Texas, was awarded a $80,333,657 modification (P00008) to contract W58RGZ-13-C-0040 for aviation maintenance supporting Operation Enduring Freedom. This requirement includes restoring aircraft to fully mission capable status, aircraft modifications, and maintenance support to various Army units and combat aviation brigades. Fiscal 2014 cost-plus-fixed-fee funds in the amount of $80,333,657 were obligated at the time of the award. Estimated completion date is Dec. 31, 2014. Bids were solicited via the Internet with three received. Work will be performed in Afghanistan. Army Contracting Command, Redstone Arsenal (Aviation), Ala., is the contracting activity.
Booz Allen Hamilton Inc., McLean, Va., was awarded a $49,916,668 cost-plus-fixed-fee indefinite-delivery/indefinite-quantity contract for the dematerialization-centric intelligence surveillance and reconnaissance effort to perform analyses, assessments, studies, and operational exercises of technologies and systems. Funding and work location will be determined with each order. Estimated completion date is Dec. 18, 2016. Bids were solicited via the Internet with 999 received. Army Contracting Command, Adelphi, Md., is the contracting activity (W911QX-14-D-0001).
Kongsberg Defence & Aerospace AS, Kongsberg, Norway, was awarded a $37,872,000 modification (P00048) to contract W15QKN-12-C-0103 for maintenance of the M153 common remotely operated weapon station. Fiscal 2014 operations and maintenance, Army funds in the amount of $37,872,000 were obligated at the time of the award. Estimated completion date is Aug. 16, 2017. Bids were solicited via the Internet with two received. Work will be performed in Johnstown, Pa. Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity.
Sundt Construction Inc., Tempe, Ariz., was awarded a $32,787,350 firm-fixed-price contract for runway repair at Minot Air Force Base, N.D. Fiscal 2014 other procurement funds in the amount of $32,787,350 were obligated at the time of the award. Estimated completion date is Oct. 15, 2014. Bids were solicited via the Internet with nine received. Work will be performed at Minot Air Force Base. Army Corps of Engineers, Omaha, Neb., is the contracting activity (W9128F-14-C-0003).
King Aerospace Inc., Addison, Texas, was awarded a $32,353,000 modification (P00213) to contract W58RGZ-05-C-0302 for life cycle support for the airborne reconnaissance low DeHaveilland Dash 7 aircraft fleet. Fiscal 2014 operations and maintenance, Army funds in the amount of $32,353,000 were obligated at the time of the award. Estimated completion date is Dec. 31, 2014. One bid was solicited with one received. Work will be performed in El Paso, Texas. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.
L-3 Fuzing and Ordnance Systems Inc., Cincinnati, Ohio, was awarded a $25,938,211 modification (P00024) to contract W15QKN-10-C-0015 for the production of 40,842 M734A1 fuses and 99,791 M783 fuses. Fiscal 2014 other procurement funds in the amount of $25,938,211 were obligated at the time of the award. Estimated completion date is Oct. 31, 2015. Bids were solicited via the Internet with one received. Work will be performed in Cincinnati, Ohio. Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity.
Oshkosh Corp., Oshkosh, Wis., was awarded a $21,159,240 modification (0010) to contract W56HZV-12-G-0010 for the procurement of 5,733 tire and engine automatic fire extinguishing system kits for use on the Mine Resistant Ambush Protected all-terrain vehicle. Fiscal 2014 other procurement Army funds in the amount of $17,197,719 were obligated at the time of the award. Estimated completion date is Sept. 30 2014. One bid was solicited with one received. Work will be performed in Oshkosh, Wis. Army Contracting Command, Tank and Automotive, Mich., is the contracting activity.
Honeywell International Inc., Aerospace, Phoenix, Ariz., was awarded a $15,795,824 modification (P00012) to contract W56HZV-12-C-0344 for the repair and overhaul of AGT1500 engines used in the Abrams family of vehicles. Fiscal 2014 other procurement funds in the amount of $15,795,824 were obligated at the time of the award. Estimated completion date is Dec. 31, 2014. Bids were solicited via the Internet with one received. Work will be performed in Phoenix, Ariz., and Aniston, Ala. Army Contracting Command, Tank and Automotive, Warren, Mich., is the contracting activity.
Northrop Grumman, Huntsville, Ala. was awarded a $10,270,794 modification (P00098) to contract W31P4Q-08-C-0418 for Research and Development for Advance Electronic Protect, Integrated Air and Missile Defense System of Systems capability, IAMD Battle Command System (IBCS System Development and Demonstration). Fiscal 2014 research, development, testing and evaluation funds in the amount of $9,900,000 and fiscal 2014 other procurement funds in the amount of $370,794 were obligated at the time of the award. Estimated completion date is Sept. 30, 2015. Two bids were solicited with two received. Work will be performed in Huntsville, Ala. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.
DynCorp International LLC, Fort Worth, Texas, was awarded a $9,527,589 modification (P00041) to contract W58RGZ-13-C-0042 for aviation maintenance reset, installation of modification work orders, and auxiliary maintenance support. Fiscal 2014 operations and maintenance, Army funds in the amount of $9,527,589 were obligated at the time of the award. Estimated completion date is June 30, 2017. Bids were solicited via the Internet with eight received. Work will be performed at Fort Hood, Texas. Army Contracting Command, Redstone Arsenal (Aviation), Ala., is the contracting activity.
Burns & McDonnell Engineering Co., Kansas City, Mo., was awarded a $9,500,000 firm-fixed-price contract for military and civil works projects primarily within the Great Lakes and Ohio River division. Funding and performance location will be determined by each order. Estimated completion date is Dec. 12, 2018. Bids were solicited via the Internet with 35 received. Army Corps of Engineers, Louisville, Ky., is the contracting activity.
Agate Construction Co., Inc., Clermont, N.J., was awarded a $7,592,200 firm-fixed-price contract for operation and maintenance of Emergency Supplement Project to provide repairs to the North Jetty at Barnegat Inlet, N.J. Fiscal 2014 other procurement funds in the amount of $7,592,200 were obligated at the time of the award. Estimated completion date is Sept. 15, 2014. Bids were solicited via the Internet with four received. Work will be performed in Toms River, N.J. Army Corps of Engineers, Philadelphia, Pa., is the contracting activity (W912BU-14-C-0003).
NAVY
Lockheed Martin Corp., Mission Support and Training, Orlando, Fla., is being awarded a $103,865,047 modification to a previously awarded cost-plus-incentive-fee, system design and development contract (N68335-10-C-0225) to exercise two options for the procurement of 36 electronic Consolidated Automated Support System (eCASS) low rate initial production units. Systems being procured include: eCASS radio frequency systems (36), self-maintenance and test calibration operational test program sets (10), calibration equipment kits (10), shore installation kits (36), ship installation kits (4), test program set development environment suites (5) and installations (18). Work will be performed in Orlando, Fla. (33 percent); Hunt Valley, Md. (32 percent); Irvine, Calif. (11 percent); San Diego, Calif. (9 percent); North Reading, Mass. (6 percent); Dallas, Texas (3 percent); Tallman, N.Y. (3 percent); Everett, Wash. (2 percent) and various other locations within the continental United States (1 percent), and is expected to be completed in March 2015. Fiscal 2013 and 2014 aircraft procurement, Navy contract funds in the amount of $103,865,047 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Lakehurst, N.J., is the contracting activity
Lockheed Martin Corp., Archbald, Pa., is being awarded an $84,500,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the procurement of Enhanced Laser Guided Training Rounds for the U. S. Navy. Work will be performed in Archbald, Pa., and is expected to be completed in September 2016. Fiscal 2013 and 2014 weapons procurement, Navy contract funds in the amount of $18,582,062 are being obligated on this award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-14-D-0008).
Lockheed Martin Space Systems Co., Sunnyvale, Calif., is being awarded a $61,092,053 cost-plus-fixed-fee contract for engineering services and various low-value missile test hardware to support common missile compartment (CMC) strategic weapon systems (SWS) integration and design/development for nozzle shield retention testing and for architectural and engineering services for design and modification services for the SWS Ashore Program. This contract provides for integrating the Trident II missile and reentry SWS subsystems into the CMC for the Ohio replacement and United Kingdom (UK) successor programs and designing a testing fixture for nozzle shield retention, and designing an integrated test facility that will be compatible with existing and new submarine fleets. Efforts will address integration impacts to the deployed and expected future configurations of the Trident II SWS. Work will be performed at Cape Canaveral, Fla. (52 percent); Sunnyvale, Calif. (33 percent); Magna, Utah (7 percent); Groton, Conn. (2 percent); Titusville, Fla. (1 percent); and other locations of less than one percent, with an expected completion date of Dec. 18, 2018. The maximum dollar value is $61,092,053. Fiscal 2014, 2015, and 2016 research, development, test and evaluation contract funds in the amounts of $35,219,047, $9,510,217, and $6,711,826 respectively; fiscal 2014 operations and maintenance, Navy contract funds in the amount of $21,100; fiscal 2014 weapons procurement, Navy contract funds in the amount of $3,914,186; and fiscal 2014, 2015, and 2016 United Kingdom contract funds in the amounts of $3,913,228, $1,056,691, and $745,758 respectively are being obligated at time of award. Contract funds in the amount of $21,100 will expire at the end of the current fiscal year. This contract was a sole source acquisition in accordance with 10 U.S.C. 2304(c)(1). Strategic Systems Programs, Washington, D.C., is the contracting activity (N00030-14-C-0013).
Raytheon Co., Fullerton, Calif., is being awarded a $55,150,107 modification to a previously awarded cost-plus-incentive-fee contract (N00019-08-C-0034) for complete analyses of the Joint Precision Approach and Landing Systems (JPALS) and system requirements definition, development of manufacturing and production strategy, conduct risk reduction activities supporting JPALS requirements, and management and planning of the JPALS program technical and business objectives. Work will be performed in Fullerton, Calif. (64 percent) and Cedar Rapids, Iowa (36 percent), and is expected to be completed in July 2015. Fiscal 2014 research, development, test and evaluation, Navy contract funds in the amount of $6,000,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
Teledyne Microwave Solutions, Rancho Cordova, Calif., is being awarded a $49,152,320 firm-fixed-price requirements contract for the repair of 1,600 10 KT traveling wave tubes for the AN-SPY-1 radar program within the AEGIS weapon system. Work will be performed at the Rancho Cordova, Calif., and work is expected to be completed by Dec. 31, 2020. Fiscal 2014 Navy working capital funds in the amount of $7,617,812 will be obligated at the time of award, and will not expire before of the current fiscal year. The contract was not competitively procured (sole source) in accordance with 10 U.S.C. 2304(c)(1). NAVSUP Weapon Systems Support, Mechanicsburg, Pa., is the contracting activity (N00104-14-D-D002).
Raytheon Co., Integrated Defense Systems, San Diego, Calif., is being awarded a $41,585,979 modification to previously awarded cost-plus-incentive-fee contract (N00024-08-C-5122) for fiscal 2014-2017 continuing platform systems engineering agent support of the Ship Self Defense System MK 2 to complete development of CVN/Amphibious Modernization Advanced Capability Build 12/Technical Insertion 12. Work will be performed in San Diego, Calif. (99 percent), and Middletown, R.I. (1 percent), and is expected to be completed by September 2017. Fiscal 2014 research, development, test and evaluation funds in the amount of $13,500,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
EDO Corp., Defense System, North Amityville, N.Y., a subsidiary of Exelis, Inc.*, is being awarded a $39,041,621 firm-fixed-price contract for the procurement of 450 BRU-55A/A bomb racks for the Navy. Work will be performed in North Amityville, N.J., and is expected to be completed in November 2016. Fiscal 2013 and 2014 aircraft procurement, Navy contract funds in the amount of $39,041,621 are being obligated on this award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-14-C-0007).
Lockheed Martin Corp., Mission Systems and Training, Moorestown, N.J., is being awarded a $37,089,502 modification to previously awarded contract (N00024-13-C-5116) to exercise options for Aegis combat system engineering agent (CSEA) efforts for the design, development, integration, test and delivery of computer program baselines and associated technology insertion hardware design support for the next/future Advanced Capability Build. Work will be performed in Moorestown, N.J. (98.9 percent), and Fairfax, Va. (1.1 percent), and is expected to be completed by December 2014. Fiscal 2014 research, development, test and evaluation and fiscal 2011 shipbuilding and conversion, Navy funding in the amount of $6,701,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Bell Helicopter Textron Inc., Fort Worth, Texas, is being awarded an $11,163,306 modification to a previously awarded advanced acquisition contract (N00019-13-C-0023) for additional logistics products and services in support of the H-1 upgrade effort, including logistic management support, technical material for maintenance planning, design interface, supply/material support, support of support equipment/technical data, distribution and inventory management/packaging, handling storage and transportation, logistics management information, supportability analysis and technical manuals for the Marine Corps. Work will be performed in Fort Worth, Texas, and is expected to be completed in December 2014. Fiscal 2014 aircraft procurement, Navy contract funds in the amount of $2,790,827 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
Heil Trailer International Co., doing business as Kalyn/Siebert, Gatesville, Texas, is being awarded $10,554,880 for firm-fixed-price delivery order 0016 under a previously awarded indefinite-delivery/indefinite-quantity contract (M67854-10-D-5069) to purchase 76 Flatrack refueling capability (FRC) full rate production units. The FRC is a self-contained and transportable fueling system. The FRC fuels tactical vehicles, stationary equipment, and dispense and remove fuel from fixed and rotary wing aircraft. The primary mission for the FRC will be to distribute fuel in the Marine Air-Ground Task Force Expeditionary and combat environment. Work will be performed in Gatesville, Texas, and is expected to be completed by Sept. 30, 2015. Fiscal 2013 procurement Marine Corps funds in the amount of $10,554,990 will be obligated at the time of award. Contract funds will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, withoffers received. Marine Corps Systems Command, Quantico, Va., is the contracting activity.
Northrop Grumman Guidance and Electronic, Woodland Hills, Calif., is being awarded a $10,551,915 firm-fixed-price contract for the fabrication, test, and delivery of 45 low rate initial production technical refresh AH-1Z and UH-1Y helicopters mission computers in support of Marine Corps helicopters. Work will be performed in Woodland Hills, Calif., and is expected to be completed in October 2015. Fiscal 2012 aircraft procurement, Navy contract funds in the amount of $10,551,915 will be obligated at time of award, all of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Warfare Center Weapons Division, China Lake, Calif., is the contracting activity (N68936-14-C-0020).
Intergraph Government Solutions, Madison, Ala., is being awarded a $10,231,549 indefinite-delivery/indefinite-quantity contract for the purchase of ruggedized hardware for multiple ship classes, designed to withstand shipboard environmental qualifications. This contract contains a six month option, which if exercised, would bring the contract value to $15,347,323. Work will be performed in Madison, Ala., and work is expected to be completed by December 2014. If the option is exercised, work will be completed June 2015. No funds will be obligated at the time of award. Fiscal 2014 Navy working capital funds in the amount of $420,000 will be obligated at the time of award. Funds will not expire before the end of the current fiscal year. This contract was not competitively procured (sole source) in accordance with 10 U.S.C. 2304(c)(1). NAVSUP Fleet Logistics Center Norfolk, Mechanicsburg Site, Mechanicsburg, Pa., is the contracting activity (N00189-14-D-Q003).
MISSILE DEFENSE AGENCY
Raytheon Co., Integrated Defense Systems, Woburn, Mass., is being awarded a $27,230,781 modification (P00017), sole source, firm-fixed-price to contract (HQ0147-12-C-0005), under a foreign military sales (FMS) case to the United Arab Emirates (UAE), to provide initial spares for the AN/TPY-2 radars being delivered as part of a whole FMS case as an element of the Terminal High Altitude Area Defense System. The value of this contract modification is, increasing the total contract value from $624,603,783 to $651,834,564. The work will be performed in Woburn, Mass., and UAE. The period of performance is through March 30, 2015. UAE FMS funds in the amount of $27,230,781 will be used to fund this effort. The Missile Defense Agency, Huntsville, Ala., is the contracting activity (HQ0147).
WASHINGTON HEADQUARTERS SERVICES
NOVA Corp., Chambersburg, Pa., is being awarded a one year modification on firm-fixed-price contract (HQ0034-12-C-0011) for $6,942,234 to provide information technology support for the Office of Secretary of Defense. Work will be performed primarily in Arlington, Va. The estimated completion date is Dec. 31, 2014. Washington Headquarters Services, Washington, D.C. is the contracting activity.
*Small Disadvantaged, In HubZone Business
CONTRACTS
DEFENSE LOGISTICS AGENCY
Pacific Unlimited Inc., Barrigada, Guam, has been awarded a maximum $262,500,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for subsistence prime vendor support for various customers in Guam. This contract is a competitive acquisition and there were three offers. Location of performance is Guam with an April 17, 2019 performance completion date. This is a 64-month base contract with no option periods. Using military services are Navy and federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.; (SPM300-14-D-3735). (Awarded on Dec. 18, 2013)
TXU Energy Retail Company LLC, Irving, Texas, has been awarded a maximum $24,753,778 fixed-price with economic-price-adjustment contract for electricity and ancillary services. This contract is a competitive acquisition and five offers were received. This is a 36 month contract. Location of performance is Texas with a Jan. 30, 2017 performance completion date. Using service is National Aeronautics and Space Administration. Type of appropriation is fiscal 2014 service funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va.; (SPE600-14-D-8002). (Awarded on Dec. 17, 2013)
Federal Prison Industries, Washington, D.C., has been awarded a maximum $15,948,000 modification (P00012) exercising the second one-year option period on a one-year base contract (SPM1C1-12-D-F503) with two one-year option periods for extreme cold wet weather trousers. This is a firm-fixed-price contract. Locations of performance are District of Columbia and Kentucky with a Dec. 24, 2014 performance completion date. Using military service is Army. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
Northrop Grumman, Woodland Hills, Calif., has been awarded a maximum $7,784,925 un-definitized contract for the manufacture and delivery of computers for Navy support services. This contract is a sole source acquisition. Location of performance is California with a December 2015 performance completion date. This is a two-year base contract. Using military service is Navy. Type of appropriation is fiscal 2014 Navy funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pa.; (SPRPA1-09-G-001Z-5011).
AIR FORCE
Lockheed Martin Missiles and Fire Control, Orlando, Fla., has been awarded a $232,545,447 firm-fixed price and cost-plus-fixed-fee contract for the joint air to surface standoff missile (JASSM) baseline missiles (190 each) and JASSM extended range (ER) missiles (40 each), systems engineering, foreign military sales test assets, ER avionics bulkhead value engineering change proposal - cost share savings, tooling and test equipment, Baseline JASSM Weapon Systems Evaluation Program and Obsolescence Management Oversight. Work will be performed at Orlando, Fla., and Troy, Ala., and expected to be completed by Nov. 30, 2016. This award is a result of a sole source acquisition and one offer was solicited and one offer was received. Fiscal 2012 and 2013 missile procurement funds in the amount of $232,545,447 are being obligated at time of award. This contract is three percent foreign military sales for Finland and Australia. Air Force Life Cycle Management Center/ EBJK, Eglin Air Force Base, Fla., is the contracting activity (FA8682-14-C-0069).
Lockheed Martin Missiles and Fire Control, Orlando, Fla., has been awarded a $216,475,072 firm-fixed-price and cost-plus-fixed-fee contract for the Joint Air to Surface Standoff Missile (JASSM) Baseline Missiles (150 each) and JASSM Extended Range (ER) Missiles (60 each), ER Avionics Bulkhead Value Engineering Change Proposal - Cost Share Savings, and Obsolescence Management Oversight. Work will be performed at Orlando, Fla., and Troy, Ala., and expected to be completed by Nov. 30, 2016. This award is a result of a sole source acquisition and one offer was solicited and one offer was received. Fiscal 2013 and 2014 missile procurement funds in the amount of $216,475,072 are being obligated at time of award. Air Force Life Cycle Management Center/EBJK, Eglin Air Force Base, Fla., is the contracting activity (FA8682-14-C-0084).
Raytheon Missiles Systems, Tucson Ariz., has been awarded a $40,000,000 indefinite-delivery/indefinite-quantity contract for system improvements to include design, development, and test of the AIM-120D missile. Work will be performed at Tucson, Ariz., and is expected to be complete by March 31, 2015. This award is the result of a sole source acquisition. Fiscal 2013 and 2014 research, development, test and evaluation funds in the amount of $3,993,942 are being obligated at time of award. Air Force Life Cycle Management Center/EBA, Eglin Air Force Base, Fla., is the contracting activity (FA8675-14-D-0082).
Raytheon Network Centric Systems, Aberdeen Proving Ground, Md., has been awarded a $12,878,000, firm-fixed-price contract for Identification Friend or Foe (IFF) AN/APX-114 Interrogators. The contractor will provide 94 IFFs for the Royal Saudi Air Force. Work will be performed at Largo, Fla., and is expected to be complete Sept. 29, 2017. This award is the result of a sole-source acquisition. This contract is 100 percent in support of foreign military sales for Saudi Arabia. Air Force Life Cycle Management Center/WNKCB, Robins AFB, Ga., is the contracting activity. (FA8540-14-C-0002)
Raytheon Network Centric Systems, Aberdeen Proving Ground, Md., has been awarded an $11,662,862 firm-fixed-price contract for identification friend or foe (IFF) AN/APX-119 transponders. The contractor will provide 94 IFFs for the Royal Saudi Air Force. Work will be performed at Largo, Fla., and AEC Saudi Arabia, and is expected to be complete July 31, 2017. This award is the result of a sole source acquisition. This contract is 100 percent in support of foreign military sales for Saudi Arabia. Air Force Life Cycle Management Center/WNKCB, Robins Air Force Base, Ga., is the contracting activity. (FA8540-14-C-0003)
Lockheed Martin Missiles and Fire Control, Orlando, Fla., has been awarded an $8,808,979 (not-to-exceed) firm-fixed-price modification (P00004) on an existing contract (FA8540-12-C-0012) for sniper advanced targeting pods (ATP) for the Royal Saudi Air Force. The contractor will provide compact multiband data link software and firmware configuration support on the RSAF's F-15SA aircraft and provide resources required for the management, fabrication, repair, support, testing and shipping of its non-developmental item sniper ATP system. Work will be performed at Orlando, Fla., and is expected to be complete by November 2016. This award is the result of a source directed acquisition and is 100 percent foreign military sales for Saudi Arabia. Air Force Life Cycle Management Center/WNKCB, Robins Air Force Base, Ga., is the contracting activity.
ARMY
General Dynamics C4 Systems Inc., Scottsdale, Ariz., was awarded a $107,309,000 modification (P00402) to contract W15P7T-04-C-E405 to procure 1500 Manpack radio kits and 500 dismount kits. Fiscal 2014 other procurement, Army funds in the amount of $106,410,000 were obligated at the time of the award. Estimated completion date is Jan. 30, 2015. Bids were solicited via the Internet with two received. Work will be performed in Scottsdale, Ariz. Army Contracting Command, Aberdeen, Md., is the contracting activity.
DynCorp International LLC, Fort Worth, Texas, was awarded a $80,333,657 modification (P00008) to contract W58RGZ-13-C-0040 for aviation maintenance supporting Operation Enduring Freedom. This requirement includes restoring aircraft to fully mission capable status, aircraft modifications, and maintenance support to various Army units and combat aviation brigades. Fiscal 2014 cost-plus-fixed-fee funds in the amount of $80,333,657 were obligated at the time of the award. Estimated completion date is Dec. 31, 2014. Bids were solicited via the Internet with three received. Work will be performed in Afghanistan. Army Contracting Command, Redstone Arsenal (Aviation), Ala., is the contracting activity.
Booz Allen Hamilton Inc., McLean, Va., was awarded a $49,916,668 cost-plus-fixed-fee indefinite-delivery/indefinite-quantity contract for the dematerialization-centric intelligence surveillance and reconnaissance effort to perform analyses, assessments, studies, and operational exercises of technologies and systems. Funding and work location will be determined with each order. Estimated completion date is Dec. 18, 2016. Bids were solicited via the Internet with 999 received. Army Contracting Command, Adelphi, Md., is the contracting activity (W911QX-14-D-0001).
Kongsberg Defence & Aerospace AS, Kongsberg, Norway, was awarded a $37,872,000 modification (P00048) to contract W15QKN-12-C-0103 for maintenance of the M153 common remotely operated weapon station. Fiscal 2014 operations and maintenance, Army funds in the amount of $37,872,000 were obligated at the time of the award. Estimated completion date is Aug. 16, 2017. Bids were solicited via the Internet with two received. Work will be performed in Johnstown, Pa. Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity.
Sundt Construction Inc., Tempe, Ariz., was awarded a $32,787,350 firm-fixed-price contract for runway repair at Minot Air Force Base, N.D. Fiscal 2014 other procurement funds in the amount of $32,787,350 were obligated at the time of the award. Estimated completion date is Oct. 15, 2014. Bids were solicited via the Internet with nine received. Work will be performed at Minot Air Force Base. Army Corps of Engineers, Omaha, Neb., is the contracting activity (W9128F-14-C-0003).
King Aerospace Inc., Addison, Texas, was awarded a $32,353,000 modification (P00213) to contract W58RGZ-05-C-0302 for life cycle support for the airborne reconnaissance low DeHaveilland Dash 7 aircraft fleet. Fiscal 2014 operations and maintenance, Army funds in the amount of $32,353,000 were obligated at the time of the award. Estimated completion date is Dec. 31, 2014. One bid was solicited with one received. Work will be performed in El Paso, Texas. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.
L-3 Fuzing and Ordnance Systems Inc., Cincinnati, Ohio, was awarded a $25,938,211 modification (P00024) to contract W15QKN-10-C-0015 for the production of 40,842 M734A1 fuses and 99,791 M783 fuses. Fiscal 2014 other procurement funds in the amount of $25,938,211 were obligated at the time of the award. Estimated completion date is Oct. 31, 2015. Bids were solicited via the Internet with one received. Work will be performed in Cincinnati, Ohio. Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity.
Oshkosh Corp., Oshkosh, Wis., was awarded a $21,159,240 modification (0010) to contract W56HZV-12-G-0010 for the procurement of 5,733 tire and engine automatic fire extinguishing system kits for use on the Mine Resistant Ambush Protected all-terrain vehicle. Fiscal 2014 other procurement Army funds in the amount of $17,197,719 were obligated at the time of the award. Estimated completion date is Sept. 30 2014. One bid was solicited with one received. Work will be performed in Oshkosh, Wis. Army Contracting Command, Tank and Automotive, Mich., is the contracting activity.
Honeywell International Inc., Aerospace, Phoenix, Ariz., was awarded a $15,795,824 modification (P00012) to contract W56HZV-12-C-0344 for the repair and overhaul of AGT1500 engines used in the Abrams family of vehicles. Fiscal 2014 other procurement funds in the amount of $15,795,824 were obligated at the time of the award. Estimated completion date is Dec. 31, 2014. Bids were solicited via the Internet with one received. Work will be performed in Phoenix, Ariz., and Aniston, Ala. Army Contracting Command, Tank and Automotive, Warren, Mich., is the contracting activity.
Northrop Grumman, Huntsville, Ala. was awarded a $10,270,794 modification (P00098) to contract W31P4Q-08-C-0418 for Research and Development for Advance Electronic Protect, Integrated Air and Missile Defense System of Systems capability, IAMD Battle Command System (IBCS System Development and Demonstration). Fiscal 2014 research, development, testing and evaluation funds in the amount of $9,900,000 and fiscal 2014 other procurement funds in the amount of $370,794 were obligated at the time of the award. Estimated completion date is Sept. 30, 2015. Two bids were solicited with two received. Work will be performed in Huntsville, Ala. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.
DynCorp International LLC, Fort Worth, Texas, was awarded a $9,527,589 modification (P00041) to contract W58RGZ-13-C-0042 for aviation maintenance reset, installation of modification work orders, and auxiliary maintenance support. Fiscal 2014 operations and maintenance, Army funds in the amount of $9,527,589 were obligated at the time of the award. Estimated completion date is June 30, 2017. Bids were solicited via the Internet with eight received. Work will be performed at Fort Hood, Texas. Army Contracting Command, Redstone Arsenal (Aviation), Ala., is the contracting activity.
Burns & McDonnell Engineering Co., Kansas City, Mo., was awarded a $9,500,000 firm-fixed-price contract for military and civil works projects primarily within the Great Lakes and Ohio River division. Funding and performance location will be determined by each order. Estimated completion date is Dec. 12, 2018. Bids were solicited via the Internet with 35 received. Army Corps of Engineers, Louisville, Ky., is the contracting activity.
Agate Construction Co., Inc., Clermont, N.J., was awarded a $7,592,200 firm-fixed-price contract for operation and maintenance of Emergency Supplement Project to provide repairs to the North Jetty at Barnegat Inlet, N.J. Fiscal 2014 other procurement funds in the amount of $7,592,200 were obligated at the time of the award. Estimated completion date is Sept. 15, 2014. Bids were solicited via the Internet with four received. Work will be performed in Toms River, N.J. Army Corps of Engineers, Philadelphia, Pa., is the contracting activity (W912BU-14-C-0003).
NAVY
Lockheed Martin Corp., Mission Support and Training, Orlando, Fla., is being awarded a $103,865,047 modification to a previously awarded cost-plus-incentive-fee, system design and development contract (N68335-10-C-0225) to exercise two options for the procurement of 36 electronic Consolidated Automated Support System (eCASS) low rate initial production units. Systems being procured include: eCASS radio frequency systems (36), self-maintenance and test calibration operational test program sets (10), calibration equipment kits (10), shore installation kits (36), ship installation kits (4), test program set development environment suites (5) and installations (18). Work will be performed in Orlando, Fla. (33 percent); Hunt Valley, Md. (32 percent); Irvine, Calif. (11 percent); San Diego, Calif. (9 percent); North Reading, Mass. (6 percent); Dallas, Texas (3 percent); Tallman, N.Y. (3 percent); Everett, Wash. (2 percent) and various other locations within the continental United States (1 percent), and is expected to be completed in March 2015. Fiscal 2013 and 2014 aircraft procurement, Navy contract funds in the amount of $103,865,047 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Lakehurst, N.J., is the contracting activity
Lockheed Martin Corp., Archbald, Pa., is being awarded an $84,500,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the procurement of Enhanced Laser Guided Training Rounds for the U. S. Navy. Work will be performed in Archbald, Pa., and is expected to be completed in September 2016. Fiscal 2013 and 2014 weapons procurement, Navy contract funds in the amount of $18,582,062 are being obligated on this award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-14-D-0008).
Lockheed Martin Space Systems Co., Sunnyvale, Calif., is being awarded a $61,092,053 cost-plus-fixed-fee contract for engineering services and various low-value missile test hardware to support common missile compartment (CMC) strategic weapon systems (SWS) integration and design/development for nozzle shield retention testing and for architectural and engineering services for design and modification services for the SWS Ashore Program. This contract provides for integrating the Trident II missile and reentry SWS subsystems into the CMC for the Ohio replacement and United Kingdom (UK) successor programs and designing a testing fixture for nozzle shield retention, and designing an integrated test facility that will be compatible with existing and new submarine fleets. Efforts will address integration impacts to the deployed and expected future configurations of the Trident II SWS. Work will be performed at Cape Canaveral, Fla. (52 percent); Sunnyvale, Calif. (33 percent); Magna, Utah (7 percent); Groton, Conn. (2 percent); Titusville, Fla. (1 percent); and other locations of less than one percent, with an expected completion date of Dec. 18, 2018. The maximum dollar value is $61,092,053. Fiscal 2014, 2015, and 2016 research, development, test and evaluation contract funds in the amounts of $35,219,047, $9,510,217, and $6,711,826 respectively; fiscal 2014 operations and maintenance, Navy contract funds in the amount of $21,100; fiscal 2014 weapons procurement, Navy contract funds in the amount of $3,914,186; and fiscal 2014, 2015, and 2016 United Kingdom contract funds in the amounts of $3,913,228, $1,056,691, and $745,758 respectively are being obligated at time of award. Contract funds in the amount of $21,100 will expire at the end of the current fiscal year. This contract was a sole source acquisition in accordance with 10 U.S.C. 2304(c)(1). Strategic Systems Programs, Washington, D.C., is the contracting activity (N00030-14-C-0013).
Raytheon Co., Fullerton, Calif., is being awarded a $55,150,107 modification to a previously awarded cost-plus-incentive-fee contract (N00019-08-C-0034) for complete analyses of the Joint Precision Approach and Landing Systems (JPALS) and system requirements definition, development of manufacturing and production strategy, conduct risk reduction activities supporting JPALS requirements, and management and planning of the JPALS program technical and business objectives. Work will be performed in Fullerton, Calif. (64 percent) and Cedar Rapids, Iowa (36 percent), and is expected to be completed in July 2015. Fiscal 2014 research, development, test and evaluation, Navy contract funds in the amount of $6,000,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
Teledyne Microwave Solutions, Rancho Cordova, Calif., is being awarded a $49,152,320 firm-fixed-price requirements contract for the repair of 1,600 10 KT traveling wave tubes for the AN-SPY-1 radar program within the AEGIS weapon system. Work will be performed at the Rancho Cordova, Calif., and work is expected to be completed by Dec. 31, 2020. Fiscal 2014 Navy working capital funds in the amount of $7,617,812 will be obligated at the time of award, and will not expire before of the current fiscal year. The contract was not competitively procured (sole source) in accordance with 10 U.S.C. 2304(c)(1). NAVSUP Weapon Systems Support, Mechanicsburg, Pa., is the contracting activity (N00104-14-D-D002).
Raytheon Co., Integrated Defense Systems, San Diego, Calif., is being awarded a $41,585,979 modification to previously awarded cost-plus-incentive-fee contract (N00024-08-C-5122) for fiscal 2014-2017 continuing platform systems engineering agent support of the Ship Self Defense System MK 2 to complete development of CVN/Amphibious Modernization Advanced Capability Build 12/Technical Insertion 12. Work will be performed in San Diego, Calif. (99 percent), and Middletown, R.I. (1 percent), and is expected to be completed by September 2017. Fiscal 2014 research, development, test and evaluation funds in the amount of $13,500,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
EDO Corp., Defense System, North Amityville, N.Y., a subsidiary of Exelis, Inc.*, is being awarded a $39,041,621 firm-fixed-price contract for the procurement of 450 BRU-55A/A bomb racks for the Navy. Work will be performed in North Amityville, N.J., and is expected to be completed in November 2016. Fiscal 2013 and 2014 aircraft procurement, Navy contract funds in the amount of $39,041,621 are being obligated on this award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-14-C-0007).
Lockheed Martin Corp., Mission Systems and Training, Moorestown, N.J., is being awarded a $37,089,502 modification to previously awarded contract (N00024-13-C-5116) to exercise options for Aegis combat system engineering agent (CSEA) efforts for the design, development, integration, test and delivery of computer program baselines and associated technology insertion hardware design support for the next/future Advanced Capability Build. Work will be performed in Moorestown, N.J. (98.9 percent), and Fairfax, Va. (1.1 percent), and is expected to be completed by December 2014. Fiscal 2014 research, development, test and evaluation and fiscal 2011 shipbuilding and conversion, Navy funding in the amount of $6,701,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Bell Helicopter Textron Inc., Fort Worth, Texas, is being awarded an $11,163,306 modification to a previously awarded advanced acquisition contract (N00019-13-C-0023) for additional logistics products and services in support of the H-1 upgrade effort, including logistic management support, technical material for maintenance planning, design interface, supply/material support, support of support equipment/technical data, distribution and inventory management/packaging, handling storage and transportation, logistics management information, supportability analysis and technical manuals for the Marine Corps. Work will be performed in Fort Worth, Texas, and is expected to be completed in December 2014. Fiscal 2014 aircraft procurement, Navy contract funds in the amount of $2,790,827 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
Heil Trailer International Co., doing business as Kalyn/Siebert, Gatesville, Texas, is being awarded $10,554,880 for firm-fixed-price delivery order 0016 under a previously awarded indefinite-delivery/indefinite-quantity contract (M67854-10-D-5069) to purchase 76 Flatrack refueling capability (FRC) full rate production units. The FRC is a self-contained and transportable fueling system. The FRC fuels tactical vehicles, stationary equipment, and dispense and remove fuel from fixed and rotary wing aircraft. The primary mission for the FRC will be to distribute fuel in the Marine Air-Ground Task Force Expeditionary and combat environment. Work will be performed in Gatesville, Texas, and is expected to be completed by Sept. 30, 2015. Fiscal 2013 procurement Marine Corps funds in the amount of $10,554,990 will be obligated at the time of award. Contract funds will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, withoffers received. Marine Corps Systems Command, Quantico, Va., is the contracting activity.
Northrop Grumman Guidance and Electronic, Woodland Hills, Calif., is being awarded a $10,551,915 firm-fixed-price contract for the fabrication, test, and delivery of 45 low rate initial production technical refresh AH-1Z and UH-1Y helicopters mission computers in support of Marine Corps helicopters. Work will be performed in Woodland Hills, Calif., and is expected to be completed in October 2015. Fiscal 2012 aircraft procurement, Navy contract funds in the amount of $10,551,915 will be obligated at time of award, all of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Warfare Center Weapons Division, China Lake, Calif., is the contracting activity (N68936-14-C-0020).
Intergraph Government Solutions, Madison, Ala., is being awarded a $10,231,549 indefinite-delivery/indefinite-quantity contract for the purchase of ruggedized hardware for multiple ship classes, designed to withstand shipboard environmental qualifications. This contract contains a six month option, which if exercised, would bring the contract value to $15,347,323. Work will be performed in Madison, Ala., and work is expected to be completed by December 2014. If the option is exercised, work will be completed June 2015. No funds will be obligated at the time of award. Fiscal 2014 Navy working capital funds in the amount of $420,000 will be obligated at the time of award. Funds will not expire before the end of the current fiscal year. This contract was not competitively procured (sole source) in accordance with 10 U.S.C. 2304(c)(1). NAVSUP Fleet Logistics Center Norfolk, Mechanicsburg Site, Mechanicsburg, Pa., is the contracting activity (N00189-14-D-Q003).
MISSILE DEFENSE AGENCY
Raytheon Co., Integrated Defense Systems, Woburn, Mass., is being awarded a $27,230,781 modification (P00017), sole source, firm-fixed-price to contract (HQ0147-12-C-0005), under a foreign military sales (FMS) case to the United Arab Emirates (UAE), to provide initial spares for the AN/TPY-2 radars being delivered as part of a whole FMS case as an element of the Terminal High Altitude Area Defense System. The value of this contract modification is, increasing the total contract value from $624,603,783 to $651,834,564. The work will be performed in Woburn, Mass., and UAE. The period of performance is through March 30, 2015. UAE FMS funds in the amount of $27,230,781 will be used to fund this effort. The Missile Defense Agency, Huntsville, Ala., is the contracting activity (HQ0147).
WASHINGTON HEADQUARTERS SERVICES
NOVA Corp., Chambersburg, Pa., is being awarded a one year modification on firm-fixed-price contract (HQ0034-12-C-0011) for $6,942,234 to provide information technology support for the Office of Secretary of Defense. Work will be performed primarily in Arlington, Va. The estimated completion date is Dec. 31, 2014. Washington Headquarters Services, Washington, D.C. is the contracting activity.
*Small Disadvantaged, In HubZone Business
FTC OFFICIAL TESTIFIES BEFORE SENATE COMMITTEE REGARDING DATA BROKERS
FROM: U.S. FEDERAL TRADE COMMISSION
FTC Testifies on Data Brokers Before Senate Committee on Commerce, Science and Transportation
The Federal Trade Commission provided information to Congress today on the status of its work regarding companies that collect and aggregate consumers’ information and then resell it, known as data brokers.
Testifying on behalf of the Commission before the Senate Committee on Commerce, Science and Transportation, Bureau of Consumer Protection Director Jessica Rich told lawmakers about the FTC’s past and present efforts related to the privacy practices of the data broker industry.
“Because data brokers generally never interact directly with consumers, consumers are typically unaware of their existence, much less the variety of ways they collect, analyze, and sell consumer data,” the testimony states.
The testimony notes that FTC’s work in the data broker industry is not a recent development, pointing to work done by the Commission in the 1990s looking at the privacy practices of data companies not covered under the Fair Credit Reporting Act (FCRA).
In addition, the testimony points to recommendations made by the Commission in its 2012 report on privacy issues about improving the transparency of data brokers’ practices and giving consumers greater control over how their information is used. The recommendations made in the report included giving consumers reasonable access to the data maintained about them by data brokers. The report also noted that the Commission has long supported legislation both to improve consumers’ access rights to data and to improve the transparency of industry practices.
The testimony goes on to address the Commission’s ongoing initiatives regarding data brokers using a three-pronged strategy made up of enforcement actions, research and reports, and education for consumers and businesses.
In describing the FTC’s enforcement efforts in the data broker industry, the testimony notes that the agency has brought nearly 100 cases and obtained more than $30 million in civil penalties for violations of the FCRA. Among the cases highlighted in the testimony are the Commission’s 2012 consent decree with online data broker Spokeo, its case against app developer Filiquarian, and the Commission’s recent consent decree with Certegy Check Services, which resulted in a $3.5 million FCRA fine.
The testimony describes the Commission’s ongoing study of the data broker industry, conducted under its authority in Section 6(b) of the FTC Act. The study is examining the practices of nine companies, and the Commission expects to issue a report outlining the findings in the coming months. In addition, the testimony notes the FTC’s upcoming series of workshops to be held in 2014 on emerging privacy issues, including alternative scoring products sold by data brokers, which are used to predict trends and behaviors of consumers.
Finally, the testimony addresses the Commission’s work in educating businesses and consumers about privacy issues in the data broker industry. The testimony highlights warning letters sent by Commission staff to data brokers that provided tenant-screening services as well as to to marketers of mobile apps that provide employment screening services.
The testimony also mentions a recent undercover effort by Commission staff to determine if data brokers who said they were not covered under FCRA were willing to sell information for FCRA-covered purposes. As a result, ten warning letters were issued to companies.
“These enforcement, policy, and education efforts demonstrate the Commission’s continued commitment to understanding and addressing consumer privacy issues posed by the data broker industry,” the testimony states.
The Commission vote approving the testimony and its inclusion in the formal record was 4-0.
FTC Testifies on Data Brokers Before Senate Committee on Commerce, Science and Transportation
The Federal Trade Commission provided information to Congress today on the status of its work regarding companies that collect and aggregate consumers’ information and then resell it, known as data brokers.
Testifying on behalf of the Commission before the Senate Committee on Commerce, Science and Transportation, Bureau of Consumer Protection Director Jessica Rich told lawmakers about the FTC’s past and present efforts related to the privacy practices of the data broker industry.
“Because data brokers generally never interact directly with consumers, consumers are typically unaware of their existence, much less the variety of ways they collect, analyze, and sell consumer data,” the testimony states.
The testimony notes that FTC’s work in the data broker industry is not a recent development, pointing to work done by the Commission in the 1990s looking at the privacy practices of data companies not covered under the Fair Credit Reporting Act (FCRA).
In addition, the testimony points to recommendations made by the Commission in its 2012 report on privacy issues about improving the transparency of data brokers’ practices and giving consumers greater control over how their information is used. The recommendations made in the report included giving consumers reasonable access to the data maintained about them by data brokers. The report also noted that the Commission has long supported legislation both to improve consumers’ access rights to data and to improve the transparency of industry practices.
The testimony goes on to address the Commission’s ongoing initiatives regarding data brokers using a three-pronged strategy made up of enforcement actions, research and reports, and education for consumers and businesses.
In describing the FTC’s enforcement efforts in the data broker industry, the testimony notes that the agency has brought nearly 100 cases and obtained more than $30 million in civil penalties for violations of the FCRA. Among the cases highlighted in the testimony are the Commission’s 2012 consent decree with online data broker Spokeo, its case against app developer Filiquarian, and the Commission’s recent consent decree with Certegy Check Services, which resulted in a $3.5 million FCRA fine.
The testimony describes the Commission’s ongoing study of the data broker industry, conducted under its authority in Section 6(b) of the FTC Act. The study is examining the practices of nine companies, and the Commission expects to issue a report outlining the findings in the coming months. In addition, the testimony notes the FTC’s upcoming series of workshops to be held in 2014 on emerging privacy issues, including alternative scoring products sold by data brokers, which are used to predict trends and behaviors of consumers.
Finally, the testimony addresses the Commission’s work in educating businesses and consumers about privacy issues in the data broker industry. The testimony highlights warning letters sent by Commission staff to data brokers that provided tenant-screening services as well as to to marketers of mobile apps that provide employment screening services.
The testimony also mentions a recent undercover effort by Commission staff to determine if data brokers who said they were not covered under FCRA were willing to sell information for FCRA-covered purposes. As a result, ten warning letters were issued to companies.
“These enforcement, policy, and education efforts demonstrate the Commission’s continued commitment to understanding and addressing consumer privacy issues posed by the data broker industry,” the testimony states.
The Commission vote approving the testimony and its inclusion in the formal record was 4-0.
REMARKS BY SECRETARY OF STATE KERRY IN TACLOBAN, PHILIPPIINES
FROM: U.S. STATE DEPARTMENT
Remarks at USAID Tacloban
Remarks
John Kerry
Secretary of State
USAID Tacloban
Tacloban, Philippines
December 18, 2013
AMBASSADOR GOLDBERG: Good morning, everyone. I’m Philip Goldberg, the U.S. Ambassador to the Philippines. I’d like to first thank our distinguished colleagues from the Government of the Philippines who are here, Secretary of Defense Gazmin, Congressman Romualdez, Mayor Romualdez of Tacloban, Ambassador Cuisia, who is here from Washington, and Under Secretary Del Rosario.
So without going any further, let me introduce – we’re very proud and pleased that our Secretary of State is here this morning, and I’ll turn it over to him.
SECRETARY KERRY: Thank you very much, Mr. Ambassador. Before I begin to talk about Tacloban and what we’ve been seeing, I do want to say something about our concerns regarding the violence in South Sudan over the last 48 hours.
The United States believes very strongly that all parties should refrain from any actions that could further escalate the tensions. The people of South Sudan – and I know this well because I was very involved in the efforts to move to a referendum and to see the South become a nation. I saw it firsthand how devoted and dedicated the people of South Sudan were and are, and how they have endured many years of conflict and sacrifice, far too much for their country to now go backwards and descend back into violence. Political differences need to be resolved by peaceful and democratic means, and those have been hard fought for. The government should respect the rule of law, and the people of South Sudan should be able to realize their full potential in peace.
While I’ve been in Asia, I have stayed in very close touch with our team that is working on this issue and closely monitoring the situation in Juba. And the State Department is continuing to stay in close touch and monitor the situation on the ground. The safety and the security of our diplomats is paramount, and we are taking steps at this time in order to guarantee that security.
It’s impossible to have landed here in Tacloban on an airport that was once created by United States Armed Forces at the time of the liberation of the Philippines and not feel the dramatic impact of what is taking place here. It is really quite stunning. It looks like a war zone in every respect. And in many ways, for a lot of people, it is. You’d have to see this to really believe it and feel it and to understand it. You also have to see and feel the remarkable efforts of people coming together in order to try to respond to this. It is the best demonstration of humanity and of common love and sense of responsibility that people feel for each other.
The wreckage that has been left behind by Typhoon Haiyan, or as it’s known here, Typhoon Yolanda, is absolutely staggering. No words can do justice to the level of destruction that you see: the entire community leveled, water that goes up to the second story of an airport tower over there, all of this covered by water; the destruction of the trees all the way up the mountains; the leveling of homes and the taking of life. This is a devastation that is unlike anything I’ve seen at this kind of scale. It’s many tornadoes, that I have seen in America, wrapped into one.
On behalf of President Obama and American people, it’s my privilege to come here today to offer our condolences to the families of the more than 6,000 who perished in the storm, and to wish a very full and speedy recovery to the some-27,000 who were wounded. And we are keeping in our thoughts and prayers the nearly 1,800 people who still remain missing. The United States is committed to doing whatever we can as we go forward to try to help our friends in the Philippines to recover.
Last month’s typhoon broke the world’s heart, but what is certain is it didn’t break the spirit of the people here. The resilience, the courage, the determination to rebuild and to remake what was inspires all of us. And the truth is that what’s been happening here since the moment this storm passed away is inspiring to everybody.
For example, in the immediate wake of the typhoon, one of the most pressing tasks was to coordinate the opening of the city airport, just across the way here. And the logistical challenge of opening that airport was simply overwhelming.
But Philippine Navy SEAL Captain Roy Trinidad and Major Leo Liebreich of the U.S. Army and Major George Apalisok of the U.S. Air Force got right to work. And those three heroes worked and slept side-by-side for 10 days straight to oversee the enormous challenge of off-loading and distributing relief supplies. They spent their nights beneath a makeshift shelter made of nothing more than a tarp, some buckets, and boards. Their efforts saved hundreds of lives, and it inspired thousands of more people to do the same. And it demonstrated the enduring partnership between two allies – not only in good times, but in trying times as well.
USAID, the U.S. military, and the Departments of Defense and State, I can tell you unabashedly and with great pride, have done incredible work here together. And all of that has been done in very close partnership with the Philippine Government. Mr. Defense Minister and Mr. Ambassador to the United States, Mr. Congressman, Mr. Mayor, Mr. Under Secretary, we thank you for your efforts and the close partnership that you’ve demonstrated, and the leadership that you have shown in working to move us forward here.
Private corporations, NGOs, faith-based groups, the diaspora communities have shown a remarkable willingness of leadership and generosity to come together and deal with this catastrophe. And they all deserve an enormous amount of credit for working under the most difficult kinds of circumstances.
I’m proud to announce here in Tacloban today that the United States, through USAID, is providing an additional $24.6 million in humanitarian aid now. And this is on top – (applause). This is on top of the 62 million that we have already provided. And we are mindful that there is a donor conference taking place even as we are here today, and we will watch and work closely with the government to make further determinations as plans are laid out and as the future is defined by the Government of the Philippines.
The new aid is calculated to help ensure that the residents and the relief workers have immediate access to clean water, to sanitation and to hygiene services, and also to make sure that they get the food and the temporary shelter that are essential to being able to continue this work.
USAID, I’m also pleased to say, has also just signed an MOU with Procter & Gamble and Coca-Cola, and they’ve created a public-private partnership that will help more than 2,000 small convenience stores to repair, restock, and rehabilitate their shops.
And the Citi Foundation just announced that it has raised $1 million for the recovery effort, and that it is contributing an addition half-million dollars to help the Philippines to rebuild.
These are just some of the examples of the good citizens of both of our countries who are working together and around the world in helping to step up to this challenge.
Let me single out a couple more people if I can, please. Illac Diaz, who I just was introduced to over here, standing beside his light fixture over there, is not only a brilliant innovator and an entrepreneur, but he is a generous human being. Illac took recycled materials and he made handheld, environmentally friendly, very simple solar lights – turning soda bottles into something that could be useful and a light for people to be able to have in their homes, into lanterns that served not only as the only source of light for Tacloban immediately after the typhoon, but as an important aid for people to be able to continue with their lives. I’m happy to note also – and I say this with some pride – that a few years ago, the U.S. Embassy in Manila gave Mr. Diaz a grant for this project, and we are very proud of the way he has put that funding to good use. In addition – and by the way, he distributes these lights free of charge, an example of the kind of effort that will make all the difference here. Thanks to his hard work and his kindness, a lot more lights will be on their way to reaching people here in this vicinity.
Let me also recognize Dave Bell. He’s an Embassy Warden and an American Legion Vice Commander. I just met him and chatted with him a little bit. He told me about his service out here, 1974 and ’75 was Vietnam, evacuation was taking place. And he has helped to locate veterans after the storm and checked in on survivors. Ken Holubeck, another Embassy Warden, who also served in 1966 and 1970 in Vietnam, is – has brought 56 people to live and find shelter in his damaged home. These are people who have helped to bring people together to clear debris in their neighborhood, and brought food to local workers and medical care to the injured. In addition, there’s another individual here who’s made an enormous difference. Dr. Ronald Arce, who – after losing his own home and two cousins in the storm – has served in the difficult task of being the lead mortician in recovering and identifying more than 2,000 victims. These folks are all of them local heroes, and there are many, many more who aren’t singled out here today. And they have meant – all of them together – the world to so many in such a dark time. They are an incredibly important part of the story of this storm.
And just as there are many examples of individuals stepping up, there is obviously an enormous challenge ahead. I could see that just driving by – the amount of wires and telephone poles and the level of destruction of homes along the way. Local fishermen have been among the hardest hit here. This was an enormous fishing community. Tens of thousands of small boats and fishing gear were destroyed or damaged in the typhoon, and the infrastructure that fishers, fisher people, rely on has been destroyed – the ports, the storage facilities, the markets – all flattened. So rebuilding the fishing industry here in a sustainable way, including by making sure that we’re not worsening the long-term challenge by overfishing, is a top priority and one that we need to all cooperate on.
We also know that while no single storm can be attributed to climate change, we do know to a certainty that rising temperatures will lead to longer and more unpredictable monsoon seasons and will lead to more extreme weather events. So looking around here, you see an unmistakable example of what an extreme weather event looks like, and a reminder of our responsibility to act to protect the future.
Looking around here you can also see how big a challenge remains. There’s no doubt in my mind, given the spirit that has already taken hold here, that we will get this job done. And in the past few weeks, the Philippines and the United States, joining together, have answered one of the worst challenges that Mother Nature provides, and in doing so they have shown the best of humanity.
So in the coming days and weeks and months – however long it takes – the United States will remain committed. We will work closely with our friends in the Philippines to rebuild this region even better and stronger and safer, and I’ve heard some people even talking about building a green community in its fullness. So that is what we will do, and we intend to be here by the side of our friends. Thank you all for your efforts, thank you for letting me come here today to see how we can work together to do better. Thank you. (Applause.)
Remarks at USAID Tacloban
Remarks
John Kerry
Secretary of State
USAID Tacloban
Tacloban, Philippines
December 18, 2013
AMBASSADOR GOLDBERG: Good morning, everyone. I’m Philip Goldberg, the U.S. Ambassador to the Philippines. I’d like to first thank our distinguished colleagues from the Government of the Philippines who are here, Secretary of Defense Gazmin, Congressman Romualdez, Mayor Romualdez of Tacloban, Ambassador Cuisia, who is here from Washington, and Under Secretary Del Rosario.
So without going any further, let me introduce – we’re very proud and pleased that our Secretary of State is here this morning, and I’ll turn it over to him.
SECRETARY KERRY: Thank you very much, Mr. Ambassador. Before I begin to talk about Tacloban and what we’ve been seeing, I do want to say something about our concerns regarding the violence in South Sudan over the last 48 hours.
The United States believes very strongly that all parties should refrain from any actions that could further escalate the tensions. The people of South Sudan – and I know this well because I was very involved in the efforts to move to a referendum and to see the South become a nation. I saw it firsthand how devoted and dedicated the people of South Sudan were and are, and how they have endured many years of conflict and sacrifice, far too much for their country to now go backwards and descend back into violence. Political differences need to be resolved by peaceful and democratic means, and those have been hard fought for. The government should respect the rule of law, and the people of South Sudan should be able to realize their full potential in peace.
While I’ve been in Asia, I have stayed in very close touch with our team that is working on this issue and closely monitoring the situation in Juba. And the State Department is continuing to stay in close touch and monitor the situation on the ground. The safety and the security of our diplomats is paramount, and we are taking steps at this time in order to guarantee that security.
It’s impossible to have landed here in Tacloban on an airport that was once created by United States Armed Forces at the time of the liberation of the Philippines and not feel the dramatic impact of what is taking place here. It is really quite stunning. It looks like a war zone in every respect. And in many ways, for a lot of people, it is. You’d have to see this to really believe it and feel it and to understand it. You also have to see and feel the remarkable efforts of people coming together in order to try to respond to this. It is the best demonstration of humanity and of common love and sense of responsibility that people feel for each other.
The wreckage that has been left behind by Typhoon Haiyan, or as it’s known here, Typhoon Yolanda, is absolutely staggering. No words can do justice to the level of destruction that you see: the entire community leveled, water that goes up to the second story of an airport tower over there, all of this covered by water; the destruction of the trees all the way up the mountains; the leveling of homes and the taking of life. This is a devastation that is unlike anything I’ve seen at this kind of scale. It’s many tornadoes, that I have seen in America, wrapped into one.
On behalf of President Obama and American people, it’s my privilege to come here today to offer our condolences to the families of the more than 6,000 who perished in the storm, and to wish a very full and speedy recovery to the some-27,000 who were wounded. And we are keeping in our thoughts and prayers the nearly 1,800 people who still remain missing. The United States is committed to doing whatever we can as we go forward to try to help our friends in the Philippines to recover.
Last month’s typhoon broke the world’s heart, but what is certain is it didn’t break the spirit of the people here. The resilience, the courage, the determination to rebuild and to remake what was inspires all of us. And the truth is that what’s been happening here since the moment this storm passed away is inspiring to everybody.
For example, in the immediate wake of the typhoon, one of the most pressing tasks was to coordinate the opening of the city airport, just across the way here. And the logistical challenge of opening that airport was simply overwhelming.
But Philippine Navy SEAL Captain Roy Trinidad and Major Leo Liebreich of the U.S. Army and Major George Apalisok of the U.S. Air Force got right to work. And those three heroes worked and slept side-by-side for 10 days straight to oversee the enormous challenge of off-loading and distributing relief supplies. They spent their nights beneath a makeshift shelter made of nothing more than a tarp, some buckets, and boards. Their efforts saved hundreds of lives, and it inspired thousands of more people to do the same. And it demonstrated the enduring partnership between two allies – not only in good times, but in trying times as well.
USAID, the U.S. military, and the Departments of Defense and State, I can tell you unabashedly and with great pride, have done incredible work here together. And all of that has been done in very close partnership with the Philippine Government. Mr. Defense Minister and Mr. Ambassador to the United States, Mr. Congressman, Mr. Mayor, Mr. Under Secretary, we thank you for your efforts and the close partnership that you’ve demonstrated, and the leadership that you have shown in working to move us forward here.
Private corporations, NGOs, faith-based groups, the diaspora communities have shown a remarkable willingness of leadership and generosity to come together and deal with this catastrophe. And they all deserve an enormous amount of credit for working under the most difficult kinds of circumstances.
I’m proud to announce here in Tacloban today that the United States, through USAID, is providing an additional $24.6 million in humanitarian aid now. And this is on top – (applause). This is on top of the 62 million that we have already provided. And we are mindful that there is a donor conference taking place even as we are here today, and we will watch and work closely with the government to make further determinations as plans are laid out and as the future is defined by the Government of the Philippines.
The new aid is calculated to help ensure that the residents and the relief workers have immediate access to clean water, to sanitation and to hygiene services, and also to make sure that they get the food and the temporary shelter that are essential to being able to continue this work.
USAID, I’m also pleased to say, has also just signed an MOU with Procter & Gamble and Coca-Cola, and they’ve created a public-private partnership that will help more than 2,000 small convenience stores to repair, restock, and rehabilitate their shops.
And the Citi Foundation just announced that it has raised $1 million for the recovery effort, and that it is contributing an addition half-million dollars to help the Philippines to rebuild.
These are just some of the examples of the good citizens of both of our countries who are working together and around the world in helping to step up to this challenge.
Let me single out a couple more people if I can, please. Illac Diaz, who I just was introduced to over here, standing beside his light fixture over there, is not only a brilliant innovator and an entrepreneur, but he is a generous human being. Illac took recycled materials and he made handheld, environmentally friendly, very simple solar lights – turning soda bottles into something that could be useful and a light for people to be able to have in their homes, into lanterns that served not only as the only source of light for Tacloban immediately after the typhoon, but as an important aid for people to be able to continue with their lives. I’m happy to note also – and I say this with some pride – that a few years ago, the U.S. Embassy in Manila gave Mr. Diaz a grant for this project, and we are very proud of the way he has put that funding to good use. In addition – and by the way, he distributes these lights free of charge, an example of the kind of effort that will make all the difference here. Thanks to his hard work and his kindness, a lot more lights will be on their way to reaching people here in this vicinity.
Let me also recognize Dave Bell. He’s an Embassy Warden and an American Legion Vice Commander. I just met him and chatted with him a little bit. He told me about his service out here, 1974 and ’75 was Vietnam, evacuation was taking place. And he has helped to locate veterans after the storm and checked in on survivors. Ken Holubeck, another Embassy Warden, who also served in 1966 and 1970 in Vietnam, is – has brought 56 people to live and find shelter in his damaged home. These are people who have helped to bring people together to clear debris in their neighborhood, and brought food to local workers and medical care to the injured. In addition, there’s another individual here who’s made an enormous difference. Dr. Ronald Arce, who – after losing his own home and two cousins in the storm – has served in the difficult task of being the lead mortician in recovering and identifying more than 2,000 victims. These folks are all of them local heroes, and there are many, many more who aren’t singled out here today. And they have meant – all of them together – the world to so many in such a dark time. They are an incredibly important part of the story of this storm.
And just as there are many examples of individuals stepping up, there is obviously an enormous challenge ahead. I could see that just driving by – the amount of wires and telephone poles and the level of destruction of homes along the way. Local fishermen have been among the hardest hit here. This was an enormous fishing community. Tens of thousands of small boats and fishing gear were destroyed or damaged in the typhoon, and the infrastructure that fishers, fisher people, rely on has been destroyed – the ports, the storage facilities, the markets – all flattened. So rebuilding the fishing industry here in a sustainable way, including by making sure that we’re not worsening the long-term challenge by overfishing, is a top priority and one that we need to all cooperate on.
We also know that while no single storm can be attributed to climate change, we do know to a certainty that rising temperatures will lead to longer and more unpredictable monsoon seasons and will lead to more extreme weather events. So looking around here, you see an unmistakable example of what an extreme weather event looks like, and a reminder of our responsibility to act to protect the future.
Looking around here you can also see how big a challenge remains. There’s no doubt in my mind, given the spirit that has already taken hold here, that we will get this job done. And in the past few weeks, the Philippines and the United States, joining together, have answered one of the worst challenges that Mother Nature provides, and in doing so they have shown the best of humanity.
So in the coming days and weeks and months – however long it takes – the United States will remain committed. We will work closely with our friends in the Philippines to rebuild this region even better and stronger and safer, and I’ve heard some people even talking about building a green community in its fullness. So that is what we will do, and we intend to be here by the side of our friends. Thank you all for your efforts, thank you for letting me come here today to see how we can work together to do better. Thank you. (Applause.)
DOCTOR INDICTED FOR ALLEGED ROLE IN $158 MILLION MEDICARE FRAUD
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, December 17, 2013
Houston Doctor Indicted for Her Alleged Role in $158 Million Medicare Fraud Scheme
A Houston doctor has been arrested on charges related to her alleged participation in a $158 million Medicare fraud scheme involving false claims for mental health treatment.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the Dallas Regional Office of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Sharon Iglehart, 56, of Houston, was charged in an indictment, filed in the Southern District of Texas and unsealed today, with one count of conspiracy to commit health care fraud and four counts of health care fraud. If convicted, Iglehart faces a maximum penalty of 10 years in prison on each count. Iglehart was arrested on Dec. 16, 2013, and made her initial appearance in federal court in Houston today.
According to the indictment, Iglehart allegedly participated in a scheme to defraud Medicare beginning in 2005 and continuing until May 2012. The defendant allegedly caused the submission of false and fraudulent claims for partial hospitalization program (PHP) services to Medicare through a Houston hospital. A PHP is a form of intensive outpatient treatment for severe mental illness.
The indictment alleges that the defendant and her co-conspirators submitted or caused to be submitted approximately $158 million in claims to Medicare for PHP services purportedly provided by the hospital, when in fact the PHP services were medically unnecessary or never provided.
In February 2012, Mohammad Khan, an assistant administrator at the hospital who managed many of the hospital’s PHPs, was indicted for his role in the scheme. Khan pleaded guilty to one count of conspiracy to commit health care fraud, one count of conspiracy to pay illegal kickbacks, and five counts of paying illegal kickbacks. Khan has not yet been sentenced.
In October 2012, Earnest Gibson III, the administrator of the hospital, along with Earnest Gibson IV, William Bullock III, Robert Ferguson, Regina Askew, Leslie Clark and Robert Crane, were indicted for their roles in the scheme. Leslie Clark pleaded guilty to one count of conspiracy to pay and receive illegal kickbacks. Clark has not yet been sentenced.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, HHS-OIG, MFCU, Internal Revenue Service’s Houston Field Office, the Chicago Field Office of the Railroad Retirement Board’s Office of Inspector General, and the Office of Personnel Management’s Office of Inspector General 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 Texas. The case is being prosecuted by Assistant Chief Laura M.K. Cordova of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 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.
Tuesday, December 17, 2013
Houston Doctor Indicted for Her Alleged Role in $158 Million Medicare Fraud Scheme
A Houston doctor has been arrested on charges related to her alleged participation in a $158 million Medicare fraud scheme involving false claims for mental health treatment.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the Dallas Regional Office of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Sharon Iglehart, 56, of Houston, was charged in an indictment, filed in the Southern District of Texas and unsealed today, with one count of conspiracy to commit health care fraud and four counts of health care fraud. If convicted, Iglehart faces a maximum penalty of 10 years in prison on each count. Iglehart was arrested on Dec. 16, 2013, and made her initial appearance in federal court in Houston today.
According to the indictment, Iglehart allegedly participated in a scheme to defraud Medicare beginning in 2005 and continuing until May 2012. The defendant allegedly caused the submission of false and fraudulent claims for partial hospitalization program (PHP) services to Medicare through a Houston hospital. A PHP is a form of intensive outpatient treatment for severe mental illness.
The indictment alleges that the defendant and her co-conspirators submitted or caused to be submitted approximately $158 million in claims to Medicare for PHP services purportedly provided by the hospital, when in fact the PHP services were medically unnecessary or never provided.
In February 2012, Mohammad Khan, an assistant administrator at the hospital who managed many of the hospital’s PHPs, was indicted for his role in the scheme. Khan pleaded guilty to one count of conspiracy to commit health care fraud, one count of conspiracy to pay illegal kickbacks, and five counts of paying illegal kickbacks. Khan has not yet been sentenced.
In October 2012, Earnest Gibson III, the administrator of the hospital, along with Earnest Gibson IV, William Bullock III, Robert Ferguson, Regina Askew, Leslie Clark and Robert Crane, were indicted for their roles in the scheme. Leslie Clark pleaded guilty to one count of conspiracy to pay and receive illegal kickbacks. Clark has not yet been sentenced.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, HHS-OIG, MFCU, Internal Revenue Service’s Houston Field Office, the Chicago Field Office of the Railroad Retirement Board’s Office of Inspector General, and the Office of Personnel Management’s Office of Inspector General 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 Texas. The case is being prosecuted by Assistant Chief Laura M.K. Cordova of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 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.
al-MULATHAMUN BATTALION RECEIVES TERRORIST DESIGNATION
FROM: U.S. STATE DEPARTMENT
Terrorist Designation of the al-Mulathamun Battalion
Media Note
Office of the Spokesperson
Washington, DC
December 18, 2013
The Department of State has designated the al-Mulathamun Battalion as a Foreign Terrorist Organization (FTO) under Section 219 of the Immigration and Nationality Act and as a Specially Designated Global Terrorist entity under section 1(b) of Executive Order (E.O.) 13224. The consequences of the FTO and E.O. 13224 designations include a prohibition against knowingly providing, or attempting or conspiring to provide, material support or resources to, or engaging in transactions with, the al-Mulathamun Battalion, and the freezing of all property and interests in property of the organization that are in the United States, or come within the United States or the control of U.S. persons. The Department of State took these actions in consultation with the Departments of Justice and Treasury.
Originally part of al-Qa’ida in the Islamic Maghreb (AQIM), the al-Mulathamun Battalion became a separate organization in late 2012 after its leader, Mokhtar Belmokhtar, split from AQIM. In Belmokhtar’s first public statement after the split he threatened to fight against Western interests and announced the creation of the sub-battalion, “Those Who Sign in Blood,” reportedly made up of the organization’s best fighters. Soon after, the sub-battalion claimed responsibility for the January 2013 attack against a gas facility near In-Amenas, Algeria. The four-day siege resulted in the death of at least 38 civilians, including three United States citizens. Seven other Americans escaped the attack.
In May 2013, the al-Mulathamun Battalion cooperated with the E.O. 13224-designated Movement for Unity and Jihad in West Africa (MUJAO) in twin suicide bombings in Niger, which killed at least 20 people. In August 2013, the al-Mulathamun Battalion and MUJAO announced that the two organizations would merge under the name “al-Murabitoun.” The newly formed al-Murabitoun extremist group constitutes the greatest near-term threat to U.S. and Western interests in the Sahel.
Both the “Those Who Sign in Blood” battalion and “al-Murabitoun” are included in the designation as aliases of the al-Mulathamun Battalion, and, as a result, all consequences of these designations will also apply to them.
Terrorist Designation of the al-Mulathamun Battalion
Media Note
Office of the Spokesperson
Washington, DC
December 18, 2013
The Department of State has designated the al-Mulathamun Battalion as a Foreign Terrorist Organization (FTO) under Section 219 of the Immigration and Nationality Act and as a Specially Designated Global Terrorist entity under section 1(b) of Executive Order (E.O.) 13224. The consequences of the FTO and E.O. 13224 designations include a prohibition against knowingly providing, or attempting or conspiring to provide, material support or resources to, or engaging in transactions with, the al-Mulathamun Battalion, and the freezing of all property and interests in property of the organization that are in the United States, or come within the United States or the control of U.S. persons. The Department of State took these actions in consultation with the Departments of Justice and Treasury.
Originally part of al-Qa’ida in the Islamic Maghreb (AQIM), the al-Mulathamun Battalion became a separate organization in late 2012 after its leader, Mokhtar Belmokhtar, split from AQIM. In Belmokhtar’s first public statement after the split he threatened to fight against Western interests and announced the creation of the sub-battalion, “Those Who Sign in Blood,” reportedly made up of the organization’s best fighters. Soon after, the sub-battalion claimed responsibility for the January 2013 attack against a gas facility near In-Amenas, Algeria. The four-day siege resulted in the death of at least 38 civilians, including three United States citizens. Seven other Americans escaped the attack.
In May 2013, the al-Mulathamun Battalion cooperated with the E.O. 13224-designated Movement for Unity and Jihad in West Africa (MUJAO) in twin suicide bombings in Niger, which killed at least 20 people. In August 2013, the al-Mulathamun Battalion and MUJAO announced that the two organizations would merge under the name “al-Murabitoun.” The newly formed al-Murabitoun extremist group constitutes the greatest near-term threat to U.S. and Western interests in the Sahel.
Both the “Those Who Sign in Blood” battalion and “al-Murabitoun” are included in the designation as aliases of the al-Mulathamun Battalion, and, as a result, all consequences of these designations will also apply to them.
SEC ANNOUNCES ENFORCEMENT ACTION RESULTS FOR FISCAL 2013
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today announced that the agency’s enforcement actions in fiscal year 2013 resulted in a record $3.4 billion in monetary sanctions ordered against wrongdoers.
The SEC filed 686 enforcement actions in the fiscal year that ended in September. The $3.4 billion in disgorgement and penalties resulting from those actions is 10 percent higher than FY 2012 and 22 percent higher than FY 2011, when the SEC filed the most actions in agency history.
“A strong enforcement program helps produce financial markets that operate with integrity and transparency, and reassures investors that they can invest with confidence,” said Mary Jo White, Chair of the SEC. “I am incredibly proud of the dedicated and talented women and men of the Enforcement Division. Our results show that we are prepared to tackle the breadth and complexity of today’s securities markets.”
George S. Canellos, co-director of the SEC’s Division of Enforcement, said, “We are focused on addressing wrongdoing in all corners of the financial industry. Going forward, we will continue to be aggressive but fair in our pursuit of those who violate the securities laws.”
Andrew J. Ceresney, co-director of the SEC’s Division of Enforcement, added, “Numbers tell only a part of the story as we look to bring high-quality enforcement actions that make an impact across the market. We are proud of the terrific results achieved by our hardworking and committed staff and pleased with the strong and robust pipeline of investigations they’ve developed for the year ahead.”
SEC Enforcement in Fiscal Year 2013
Market Structure and Exchanges – The SEC brought several significant actions against stock exchanges and other market participants on issues relating to market structure and fair market access. The SEC obtained its largest-ever penalty against an exchange when NASDAQ agreed to pay a $10 million penalty for its poor systems and decision-making during the Facebook IPO. FY 2013 also included the SEC’s first penalty against an exchange for violations relating to regulatory oversight when the agency charged the Chicago Board Options Exchange (CBOE) and an affiliate for various systemic breakdowns.
Gatekeepers – The SEC is focused on holding accountable accountants, attorneys, and others who have special duties to ensure that the interests of investors are safeguarded. Among actions against auditors, the SEC charged the Chinese affiliates of major accounting firms for refusing to produce documents related to China-based companies being investigated. And the SEC charged trustees and directors for failing to uphold their responsibilities under the securities laws.
Insider Trading – Continuing its pursuit of those who unlawfully trade on material, nonpublic information, the SEC filed multiple actions alleging wrongdoing at S.A.C. Capital Advisors and its affiliates, including an action against Steven Cohen for failing to supervise two senior employees and prevent them from insider trading under his watch.
Municipal Securities – The SEC increased its attention to securities violations by municipalities and other participants in the market for securities of cities and other governmental issuers.
Financial Crisis Enforcement Actions – With several more enforcement cases in FY 2013 against individuals and entities whose actions contributed to the financial crisis, the SEC has now filed enforcement actions against 169 individuals and entities arising from the financial crisis resulting in more than $3 billion in disgorgement, penalties, and other monetary relief for the benefit of harmed investors. The individuals charged include 70 CEOs, CFOs, or other senior executives.
New Admissions Policy – The SEC changed its longstanding settlement policy and now requires admissions of misconduct in a discrete category of cases where heightened accountability and acceptance of responsibility by a defendant are appropriate and in the public interest. The first settlements under the new policy came in actions against Philip A. Falcone and his firm Harbinger Capital Partners, and JPMorgan Chase & Co.
Going to Trial – The SEC continued to aggressively deploy litigation resources to maximize the deterrent impact of enforcement actions. One successful example in FY 2013 is the favorable verdict obtained at trial against former Goldman Sachs Vice President Fabrice Tourre, who was found liable for his role in marketing a CDO. The SEC also obtained a favorable decision after a lengthy trial against optionsXpress and two individuals for engaging in sham transactions to give the illusion of compliance with Reg SHO.
Whistleblower Tips – The SEC’s Office of the Whistleblower received 3,238 tips in the past year and paid more than $14 million to whistleblowers whose information substantially advanced enforcement actions.
New Forward-Looking Initiatives
New Task Forces – The Financial Reporting and Audit (FRAud) Task Force was created to improve the Enforcement Division’s ability to detect and prevent financial statement and other accounting frauds. The new Microcap Task Force brings additional resources and analytical expertise to address fraud in the microcap markets and target gatekeepers.
Consolidated Short Selling Charges – The SEC will continue to conduct streamlined investigations to crack down on violators of Rule 105 of Regulation M. The SEC recently announced actions against 23 firms that resulted in $14.4 million in monetary sanctions.
A Strong Pipeline – The Enforcement Division headed into the next fiscal year well positioned for significant achievements across its program, having opened 908 investigations last year (up 13 percent) and obtained 574 formal orders of investigation (up 20 percent).
Technology Improvements – The Enforcement Division significantly improved its analytical capabilities, including those for forensics analysis and for reviewing and analyzing high volumes of electronic documents. A Center for Risk and Quantitative Analytics was created to coordinate and enhance risk identification, risk assessment, and data analytic activities
The Securities and Exchange Commission today announced that the agency’s enforcement actions in fiscal year 2013 resulted in a record $3.4 billion in monetary sanctions ordered against wrongdoers.
The SEC filed 686 enforcement actions in the fiscal year that ended in September. The $3.4 billion in disgorgement and penalties resulting from those actions is 10 percent higher than FY 2012 and 22 percent higher than FY 2011, when the SEC filed the most actions in agency history.
“A strong enforcement program helps produce financial markets that operate with integrity and transparency, and reassures investors that they can invest with confidence,” said Mary Jo White, Chair of the SEC. “I am incredibly proud of the dedicated and talented women and men of the Enforcement Division. Our results show that we are prepared to tackle the breadth and complexity of today’s securities markets.”
George S. Canellos, co-director of the SEC’s Division of Enforcement, said, “We are focused on addressing wrongdoing in all corners of the financial industry. Going forward, we will continue to be aggressive but fair in our pursuit of those who violate the securities laws.”
Andrew J. Ceresney, co-director of the SEC’s Division of Enforcement, added, “Numbers tell only a part of the story as we look to bring high-quality enforcement actions that make an impact across the market. We are proud of the terrific results achieved by our hardworking and committed staff and pleased with the strong and robust pipeline of investigations they’ve developed for the year ahead.”
SEC Enforcement in Fiscal Year 2013
Market Structure and Exchanges – The SEC brought several significant actions against stock exchanges and other market participants on issues relating to market structure and fair market access. The SEC obtained its largest-ever penalty against an exchange when NASDAQ agreed to pay a $10 million penalty for its poor systems and decision-making during the Facebook IPO. FY 2013 also included the SEC’s first penalty against an exchange for violations relating to regulatory oversight when the agency charged the Chicago Board Options Exchange (CBOE) and an affiliate for various systemic breakdowns.
Gatekeepers – The SEC is focused on holding accountable accountants, attorneys, and others who have special duties to ensure that the interests of investors are safeguarded. Among actions against auditors, the SEC charged the Chinese affiliates of major accounting firms for refusing to produce documents related to China-based companies being investigated. And the SEC charged trustees and directors for failing to uphold their responsibilities under the securities laws.
Insider Trading – Continuing its pursuit of those who unlawfully trade on material, nonpublic information, the SEC filed multiple actions alleging wrongdoing at S.A.C. Capital Advisors and its affiliates, including an action against Steven Cohen for failing to supervise two senior employees and prevent them from insider trading under his watch.
Municipal Securities – The SEC increased its attention to securities violations by municipalities and other participants in the market for securities of cities and other governmental issuers.
Financial Crisis Enforcement Actions – With several more enforcement cases in FY 2013 against individuals and entities whose actions contributed to the financial crisis, the SEC has now filed enforcement actions against 169 individuals and entities arising from the financial crisis resulting in more than $3 billion in disgorgement, penalties, and other monetary relief for the benefit of harmed investors. The individuals charged include 70 CEOs, CFOs, or other senior executives.
New Admissions Policy – The SEC changed its longstanding settlement policy and now requires admissions of misconduct in a discrete category of cases where heightened accountability and acceptance of responsibility by a defendant are appropriate and in the public interest. The first settlements under the new policy came in actions against Philip A. Falcone and his firm Harbinger Capital Partners, and JPMorgan Chase & Co.
Going to Trial – The SEC continued to aggressively deploy litigation resources to maximize the deterrent impact of enforcement actions. One successful example in FY 2013 is the favorable verdict obtained at trial against former Goldman Sachs Vice President Fabrice Tourre, who was found liable for his role in marketing a CDO. The SEC also obtained a favorable decision after a lengthy trial against optionsXpress and two individuals for engaging in sham transactions to give the illusion of compliance with Reg SHO.
Whistleblower Tips – The SEC’s Office of the Whistleblower received 3,238 tips in the past year and paid more than $14 million to whistleblowers whose information substantially advanced enforcement actions.
New Forward-Looking Initiatives
New Task Forces – The Financial Reporting and Audit (FRAud) Task Force was created to improve the Enforcement Division’s ability to detect and prevent financial statement and other accounting frauds. The new Microcap Task Force brings additional resources and analytical expertise to address fraud in the microcap markets and target gatekeepers.
Consolidated Short Selling Charges – The SEC will continue to conduct streamlined investigations to crack down on violators of Rule 105 of Regulation M. The SEC recently announced actions against 23 firms that resulted in $14.4 million in monetary sanctions.
A Strong Pipeline – The Enforcement Division headed into the next fiscal year well positioned for significant achievements across its program, having opened 908 investigations last year (up 13 percent) and obtained 574 formal orders of investigation (up 20 percent).
Technology Improvements – The Enforcement Division significantly improved its analytical capabilities, including those for forensics analysis and for reviewing and analyzing high volumes of electronic documents. A Center for Risk and Quantitative Analytics was created to coordinate and enhance risk identification, risk assessment, and data analytic activities
SEC CHARGES TWO COMPANIES WITH FRAUDULENT OFFER AND SALE OF SECURITIES IN ENERGY VENTURES
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
SEC Charges Texas Oil and Gas Promoters for Securities Fraud
On December 12, 2013, the Securities and Exchange Commission charged Leon Ali Parvizian and his two companies, Arcturus Corporation and Aschere Energy LLC, with the fraudulent offer and sale of securities in the form of interests in oil and gas joint ventures. The Commission also charged promoters Alfredo Gonzalez, AMG Energy, LLC , Robert Balunas, and R. Thomas & Co., LLC with violations of the securities offering and broker-dealer registration provisions of the federal securities laws.
Filed in the United States District Court for the Northern District of Texas, the Commission's complaint alleges that the Parvizian, through Arcturus and Aschere, raised nearly $22 million from at least 380 investors between 2007 and December 2011.The complaint alleges that Parvizian prepared and disseminated to prospective investors offering materials that included material misrepresentations and omissions regarding, among other things, material litigation involving Arcturus and Aschere. According to the complaint, Parvizian, Arcturus and Aschere systematically, and without disclosure to investors, used the offering proceeds to pay the costs of defending and settling the litigation. The complaint further alleges that, among other things, Parvizian prematurely called for completion funds on at least two projects before he had finished drilling and testing the wells because he had already spent the offering proceeds for non-JV related expenses, including legal fees. According to the complaint, Parvizian, Arcturus, and Aschere spent only $7.9 million, or 36 percent, of the money raised to drill oil and gas wells.
The complaint also alleges that the defendants offered and sold the joint venture interests in unregistered securities offerings that were not exempt from the registration requirements of the federal securities laws. In addition, the complaint alleges that Parvizian, Gonzalez, AMG, Balunas, and R. Thomas & Co. acted as unregistered broker-dealers. According to the complaint, Parvizian, Gonzalez, Balunas, AMG Energy, and R. Thomas received transaction-based compensation in the form of sales commissions based upon a percentage of the amount of investor funds raised.
The complaint alleges that Parvizian, Arcturus, and Aschere violated Sections 5(a) and 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act")and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rule 10b-5 thereunder and that Parvizian also violated Section 15(a) of the Exchange Act. Gonzalez, AMG, Balunas, and R. Thomas are charged with violating Section 5(a) and 5(c) of the Securities Act and with Section 15(a) of the Exchange Act. The Commission is seeking permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties against each of the defendants.
The SEC's investigation was conducted by Ronda Blair, Ty Martinez, and Barbara Gunn of SEC's Fort Worth Regional Office. The SEC acknowledges the assistance of the Financial Industry Regulatory Authority and the Texas State Securities Board.
SEC Charges Texas Oil and Gas Promoters for Securities Fraud
On December 12, 2013, the Securities and Exchange Commission charged Leon Ali Parvizian and his two companies, Arcturus Corporation and Aschere Energy LLC, with the fraudulent offer and sale of securities in the form of interests in oil and gas joint ventures. The Commission also charged promoters Alfredo Gonzalez, AMG Energy, LLC , Robert Balunas, and R. Thomas & Co., LLC with violations of the securities offering and broker-dealer registration provisions of the federal securities laws.
Filed in the United States District Court for the Northern District of Texas, the Commission's complaint alleges that the Parvizian, through Arcturus and Aschere, raised nearly $22 million from at least 380 investors between 2007 and December 2011.The complaint alleges that Parvizian prepared and disseminated to prospective investors offering materials that included material misrepresentations and omissions regarding, among other things, material litigation involving Arcturus and Aschere. According to the complaint, Parvizian, Arcturus and Aschere systematically, and without disclosure to investors, used the offering proceeds to pay the costs of defending and settling the litigation. The complaint further alleges that, among other things, Parvizian prematurely called for completion funds on at least two projects before he had finished drilling and testing the wells because he had already spent the offering proceeds for non-JV related expenses, including legal fees. According to the complaint, Parvizian, Arcturus, and Aschere spent only $7.9 million, or 36 percent, of the money raised to drill oil and gas wells.
The complaint also alleges that the defendants offered and sold the joint venture interests in unregistered securities offerings that were not exempt from the registration requirements of the federal securities laws. In addition, the complaint alleges that Parvizian, Gonzalez, AMG, Balunas, and R. Thomas & Co. acted as unregistered broker-dealers. According to the complaint, Parvizian, Gonzalez, Balunas, AMG Energy, and R. Thomas received transaction-based compensation in the form of sales commissions based upon a percentage of the amount of investor funds raised.
The complaint alleges that Parvizian, Arcturus, and Aschere violated Sections 5(a) and 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act")and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rule 10b-5 thereunder and that Parvizian also violated Section 15(a) of the Exchange Act. Gonzalez, AMG, Balunas, and R. Thomas are charged with violating Section 5(a) and 5(c) of the Securities Act and with Section 15(a) of the Exchange Act. The Commission is seeking permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties against each of the defendants.
The SEC's investigation was conducted by Ronda Blair, Ty Martinez, and Barbara Gunn of SEC's Fort Worth Regional Office. The SEC acknowledges the assistance of the Financial Industry Regulatory Authority and the Texas State Securities Board.
Wednesday, December 18, 2013
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