OCO-2 SPACECRAFT TESTED IN THERMAL VACUUM CHAMBER

FROM:  NASA 
NASA's Orbiting Carbon Observatory (OCO)-2 spacecraft is moved into a thermal vacuum chamber at Orbital Sciences Corporation's Satellite Manufacturing Facility in Gilbert, Ariz., for a series of environmental tests. The tests confirmed the integrity of the observatory's electrical connections and subjected the OCO-2 instrument and spacecraft to the extreme hot, cold and airless environment they will encounter once in orbit. The observatory's solar array panels were removed prior to the test. OCO-2 is NASA's first mission dedicated to studying atmospheric carbon dioxide and is the latest mission in NASA's study of the global carbon cycle. Carbon dioxide is the most significant human-produced greenhouse gas and the principal human-produced driver of climate change. The mission will uniformly sample the atmosphere above Earth's land and ocean, collecting between 100,000 and 200,000 measurements of carbon dioxide concentration over Earth's sunlit hemisphere every day for at least two years. It will do so with the accuracy, resolution and coverage needed to provide the first complete picture of the regional-scale geographic distribution and seasonal variations of both human and natural sources of carbon dioxide emissions as well as the places where carbon dioxide is removed from the atmosphere and stored. Image Credit: Orbital Sciences Corporation/NASA/JPL-Caltech

FINAL JUDGEMENT ANNOUNCED IN GLOBAL EDUCATION INSIDER TRADER CASE

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 
SEC Obtains Final Judgment Against Yonghui Zhang in Global Education Insider Trading Case

The Securities and Exchange Commission announced that on December 20, 2013 it obtained a final judgment against Yonghui Zhang, the remaining defendant in an insider trading case involving the securities of Beijing-based Global Education and Technology Group, Ltd. The case, which was originally filed in the U.S. District Court in Chicago on December 5, 2011, charged eight defendants, including Zhang, with insider trading after they reaped more than $2.8 million in profits by trading in advance of a publicly announced merger between Global Education and London-based Pearson plc.

The SEC’s first amended complaint, filed on December 13, 2011, alleged that Yonghui Zhang, a Global Education employee and brother of David Zhang, CEO of Global Education, purchased 7,900 shares of Global Education on the last trading day before the merger announcement. The first amended complaint also alleged that Pearson and Global Education each announced before trading began on November 21, 2011 that Pearson agreed to acquire all of Global Education’s outstanding stock for $294 million. Global Education’s stock price increased 97 percent that day, from $5.37 to $10.60. The SEC alleged that Zhang profited by more than $40,000 from his illegal trading.

Zhang consented to the entry of a final judgment enjoining him from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, ordering Zhang to pay disgorgement of $40,494, and ordering a civil penalty against Zhang in the amount of $40,494. The relief obtained concludes the litigation in SEC v. All Know Holdings Ltd, et al.

27 YEAR OLD TEXAS MAN CHARGED WITH FEDERAL HATE CRIME FOR BREAKING JAW OF 79-YEAR-OLD AFRICAN AMERICAN MAN

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, December 26, 2013
Texas Man Charged with Federal Hate Crime for Punching and Breaking Jaw of 79-year-old African American Man

Conrad Alvin Barrett, 27, has been charged with a federal hate crime related to a racially-motivated assault of a 79-year-old African American man, announced   Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division along with U.S. Attorney Kenneth Magidson of the Southern District of Texas and Special Agent in Charge Stephen L. Morris of the FBI.

“Hate crimes tear at the fabric of entire communities,” said Acting Assistant Attorney General Samuels.   “As always, the Civil Rights Division will work with our federal and state law enforcement partners to ensure that hate crimes are identified and prosecuted, and that justice is done.”

The criminal complaint was filed under seal Dec. 24, 2013, and unsealed today upon Barrett's arrest.   He is expected to make an initial appearance before U.S. Magistrate Judge Frances Stacy at 10:00 a.m. CST.

The complaint charges Barrett, of Katy, Texas, with one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act.   According to the complaint, on Nov. 24, 2013, Barrett attacked the elderly man because of the man’s race and color in what Barrett called a “knockout.”

“Suspected crimes of this nature will simply not be tolerated,” said U.S. Attorney Magidson.   “Evidence of hate crimes will be vigorously investigated and prosecuted with the assistance of all our partners to the fullest extent of the law.”

Barrett allegedly recorded himself on his cell phone attacking the man and showed the video to others.   The complaint alleges Barrett made several videos, one in which he identifies himself and another in which he makes a racial slur.   In addition, Barrett had allegedly been working up the “courage” to play the “knockout game” for approximately a week.

The “knockout game” is an assault in which an assailant aims to knock out an unsuspecting victim with one punch.   According to the complaint, the conduct has been called by other names and there have been similar incidents dating as far back as 1992.

According to the complaint, Barrett comments in a video that “the plan is to see if I were to hit a black person, would this be nationally televised?”   The complaint further alleges Barrett claims he would not hit “defenseless people” just moments before punching the elderly man in the face.   Barrett allegedly hit the man with such force that the man immediately fell to the ground.   Barrett then laughed and said “knockout,” as he ran to his vehicle and fled, according to allegations.   The complaint indicates the victim suffered two jaw fractures and was hospitalized for several days as a result of the attack.

“It is unimaginable in this day and age that one could be drawn to violently attack another based on the color of their skin,” said Special Agent in Charge Morris.   “We remind all citizens that we are protected under the law from such racially motivated attacks, and encourage everyone to report such crimes to the FBI.”

If convicted, Barrett faces a statutory maximum of 10 years in prison and a $250,000 fine.

The investigation was conducted by the FBI in cooperation with the Fulshear and Katy, Texas, Police Departments as well as the Drug Enforcement Administration.   The case is being prosecuted by Civil Rights Division Trial Attorneys Saeed Mody and Olimpia Michel and Assistant United States Attorneys Ruben R. Perez and Joe Magliolo in cooperation with Ft. Bend County District Attorney John Healey.

A criminal complaint is merely an accusation of criminal conduct, not evidence.   A defendant is presumed innocent unless proven guilty through due process of law.

CFTC CHAIRMAN GENSLER SPEECH AT FAREWELL EVENT

FROM:  U.S. COMMODITIES FUTURE TRADING COMMISSION 
Remarks of Chairman Gary Gensler at Farewell Event
December 19, 2013

John F. Kennedy once said: “Let the public service be a proud and lively career.”

What I’ve been most struck by these last five years is how all of you – the exceptional people of the Commodity Futures Trading Commission (CFTC) really embody this sense of public service as expressed by President Kennedy.

Being with you at our last “town hall” meeting, I wish to thank all of you for welcoming me into the CFTC family these last five years.

I’d like to thank Secretary Jack Lew, Senator Elizabeth Warren, Commissioner Mark Wetjen, former Chairs Sheila Bair and Brooksley Born, and our former Director of Enforcement David Meister for your kind words.

I’m humbled to see Secretary Lew; Director of the National Economic Council and Assistant to the President for Economic Policy Gene Sperling; the Chairman of the Federal Reserve Ben Bernanke; the Chair of the Securities and Exchange Commission (SEC) Mary Jo White; the Chairman of the Federal Deposit Insurance Corporation Marty Gruenberg, the Director of the Federal Housing Finance Agency Ed DeMarco, the Chair of the National Credit Union Administration Debbie Matz, and so many others here at our town hall meeting.

In addition, it’s wonderful to welcome back seven former Chairs of this agency – in addition to Sheila and Brooksley – Jim Newsome, Mary Schapiro, Mike Dunn, Walt Lukken, and Sharon Brown-Hruska.

Five years ago, when the President was formulating his financial reform proposals, he placed tremendous confidence in this small agency, which for eight decades had overseen the futures market.

This confidence in the CFTC was well placed.

And I’m so honored that the President asked me to serve at this agency, particularly at this moment in history.

This amazingly talented staff along with Commissioners – Mike Dunn, Jill Sommers, Bart Chilton, Scott O’Malia and Mark Wetjen – has transformed a market.

As President Kennedy said, you all have much to be proud of. And no doubt, it’s been pretty darn lively.

Based on your work, bright lights of transparency now shine on the nearly $400 trillion swaps market.

You’ve made central clearing of swaps a reality and comprehensively reform the customer protection regimes in our markets.

You brought oversight to the world’s largest swap dealers.

You’ve changed the world’s conversation about LIBOR and Euribor and the real need to bring integrity to benchmark rates.

You’ve worked tirelessly to coordinate with our fellow regulators here at home and abroad.

And to boot, you’ve gotten us through five clean audits, restructured the agency, started a new Weekly Swaps Report, all while reviewing 60,000 public comments, and taking over 2,200 meetings with the public.

You’ve helped the Commission sort through over 170 Dodd-Frank actions – nearly one a week since it was signed into law.

And I want to thank you for those wonderful murderboards for the 54 congressional testimonies. More seriously, I do want to thank Congress and so many members and their staffs for their leadership on reform and supporting the efforts of this agency.

I have worked with some remarkable people in my career – when on Wall Street, at the Treasury Department, and on political campaigns.

The CFTC staff is among some of the most professional and productive that I’ve worked with in my life.

You’ve shown how when faced with real challenges – we can come together as a nation to solve them.

None of this would have been possible without the help and collaboration from others across the Administration and the regulatory community.

Thanks to the leadership of Mary Schapiro and Mary Jo White, we’ve formed a true partnership between our nation’s two market regulators.

Just to mention one of many areas of collaboration – it was no small feat for the staffs of our two agencies came together on joint definitional rules.

Financial reform would not have been possible without the leadership of Treasury and the Federal Reserve. In the wake of the nation’s worst financial crisis in 80 years, Secretary Geithner, Chairman Bernanke and their teams deserve our debt of gratitude. Looking back now, you have to wonder how they made it through their days ... livelier maybe than President Kennedy hoped for any public servant.

I particularly want to thank Secretaries Geithner and Lew, Neal Wolin, Mary Miller, Lael Brainard and Michael Barr at Treasury. In addition to Chairman Bernanke, I want to thank Dan Tarullo, Scott Alvarez and Pat Parkinson.

As the crisis was global, so too has been our reform journey. I want to give a warm thank you to Mark Carney, Governor of the Bank of England and Chairman of the Financial Stability Board; Martin Wheatley, Chief Executive of the Financial Conduct Authority; Commissioner Michel Barnier, European Commissioner for Internal Market and Services; Jonathan Faull, Director General of the European Commission; and Masamichi Kono, Vice Commissioner for International Affairs of Japan’s Financial Services Agency.

I also know how hard market participants have worked – with real costs and against deadlines – to implement reforms that truly are transforming the markets.

Looking forward, the public is very fortunate to have such talented and dedicated public servants as Mark Wetjen and, subject to Senate confirmation, Tim Massad taking the helm here at the CFTC.

Much will be in your hands my friends, and the journey will continue to evolve. Just one thing beyond the personal note I’m going to leave in the top drawer: this agency really does need more resources.

Lastly, I want to introduce and thank each one of my daughters: Anna, Lee and Isabel.

I am so proud of each of you growing up to be such beautiful and accomplished young ladies. It’s a testament to each of you that not only have you put up with me but also allowed me to devote so much time to my professional life these last five years. I know how much your mom would be beaming at the three of you today, though she certainly would be laughing a bit at your dad.

I would not be here today if it weren’t for Francesca’s encouragement to follow my dreams and to pursue public service.

Your mom and your Captain Grandpa, a Pearl Harbor survivor and appointee of President Johnson, taught us about public service.

Once again, I want to thank President Obama for the opportunity to serve at such a lively time.

And I just want tell everybody, once again, how darn proud I am of all of you.

DOD PHOTOS: LEAVING AFGHANISTAN

FROM:  U.S. DEPARTMENT OF DEFENSE 
12/26/2013
U.S. Soldiers Prepare To Leave Afghanistan

U.S. Army Master Sgt. Duane Perez, foreground, carries duffel bags and leads troops to a CH-47 Chinook helicopter as they depart Camp Phoenix in Kabul, Afghanistan, Dec. 25, 2013. Perez is assigned to the Guam Army National Guard's Company E, 1st Battalion, 294th Infantry Regiment. He also was part of Task Force Guam, which concludes its historic Operation Enduring Freedom mission. U.S. Army National Guard photo by Sgt. Eddie Siguenz.

U.S. soldiers load equipment and duffel bags onto a CH-47 Chinook helicopter on Camp Phoenix in Kabul, Afghanistan, Dec. 25, 2013. U.S. Army National Guard photo by Sgt. Eddie Siguenza.

STATEMENT: U.S.-RUSSIA BILATERAL PRESIDENTIAL COMMISSION JOINT REPORT

FROM:  THE WHITE HOUSE 
Statement by NSC Spokesperson Caitlin Hayden on the U.S.–Russia Bilateral Presidential Commission Joint Report

The United States of America and the Russian Federation launched the U.S.–Russia Bilateral Presidential Commission (BPC) four years ago to reaffirm our commitment to cooperation and collaboration based on shared interests.  Since its creation, the Commission has embraced a whole-of-government approach to advance this goal, finding common ground on arms control and international security; fostering closer defense ties; increasing bilateral trade and investment opportunities; countering terrorism and narcotics trafficking; promoting advances in science, technology, and energy; and enhancing people-to-people and cultural ties between our societies.

Today we received from Secretary of State John Kerry the submission of the 2013 BPC Joint Report, which comprehensively highlights the Commission’s accomplishments since Spring 2012.

President Obama encourages the Commission’s working groups to deepen and expand their engagement with Russia in order to remove barriers to trade and investment, increase security, and ensure that advances in science and innovation continue.  By partnering with American and Russian civil society and private enterprise, the Commission’s working groups can have an enduring impact that yields a brighter future for Russians, Americans, and people around the world.

CENTRAL AFRICAN REPUBLIC VIOLENCE: REMARKS BY SECRETARY OF STATE KERRY

FROM:  U.S. STATE DEPARTMENT 
Violence in the Central African Republic
Press Statement
John Kerry
Secretary of State
Washington, DC
December 26, 2013

The United States is alarmed by the December 24 and 25 attacks in the Central African Republic (C.A.R.) by both Seleka and Anti-Balaka fighters against civilian populations in the capital Bangui. These attacks resulted in dozens of deaths, including several MISCA troops, and the large-scale displacement of those living in the northern part of the city.

We were deeply disturbed by the discovery on December 26 in Bangui of a mass grave containing over 20 bodies. The continued sectarian fighting only deepens the country’s wounds and makes reconciliation more difficult. The United States calls on the C.A.R. transitional authorities to immediately end the violence, end the use of torture, and investigate and prosecute all those implicated in grave human rights abuses.

The United States believes that this crisis can only be resolved through a political process that leads to fair and inclusive elections as soon as possible, but not later than February 2015, so that C.A.R. can have a legitimate government that represents the will of the people.

The United States commends the African Union-led stabilization mission in the C.A.R., MISCA, and the French forces operating as part of Operation Sangaris, for their commitment to ending the violence and establishing an environment in which a political transition to a democratically elected government can take place. We are confident the French and MISCA forces will act robustly to protect equally all civilian populations, regardless of ethnic or religious affiliation.

We call on the C.A.R. transitional authorities to take every possible step to end violence and promote reconciliation and to provide all necessary support to MISCA and French troops in their efforts to disarm both Seleka and Anti-Balaka groups and to allow for unhindered humanitarian access to those in need.

As President Obama said, “Every citizen of the Central African Republic can show the courage that’s needed right now. You can show your love for your country by rejecting the violence that would tear it apart. You can choose peace.”

COURT ENTERS PERMANENT INJUNCTION AGAINST DAIRY FIRMS, INDIVIDUALS TO PREVENT DISTRIBUTION OF FOODS THAT CONTAIN EXCESSIVE DRUG RESIDUE

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, December 26, 2013

District Court Enters Permanent Injunction Against Pennsylvania-Based Dairy Firms and Individuals to Prevent Distribution of Foods That Contain Excessive Drug Residue

U.S. District Court Judge Kim R. Gibson of the Western District of Pennsylvania has entered a consent decree of permanent injunction against Metzler & Sons LLC and Pleasant View Farms Inc., the Justice Department announced today.   The permanent injunction was also entered against Rodney L. Metzler, Gretchen A. Metzler, Rodney T. Metzler and Lee M. Metzler, all of whom have ownership in the firms.   The permanent injunction is designed to prevent the distribution of foods that contain excessive drug residue.

The Pennsylvania firms, Metzler & Sons LLC and Pleasant View Farms Inc., own and operate several farms that sell cows for slaughter and for use as food.   As set forth in the complaint filed on Dec. 18, 2013, inspections by United States Food and Drug Administration (FDA) and laboratory analyses performed by the United States Department of Agriculture (USDA) indicated that the defendants sold for slaughter for use as food dairy cows and bob veal calves that contained excessive and illegal residues of drugs in their edible tissues.  According to the complaint, these inspections revealed that the defendants delivered adulterated food into interstate commerce in violation of the Federal Food, Drug and Cosmetic Act (FDCA).  As set forth in the complaint, the defendants received numerous warnings from both FDA and USDA that their conduct violated the law, and despite these warnings, the defendants continued to hold animals that they sold for slaughter as food in a manner that may have rendered the animals’ edible tissues injurious to the public health.

As set forth in the complaint, levels of new animal drugs in the edible tissues of animals in amounts above the tolerances established in federal regulations pose a significant public health
risk.   For example, consumers of edible animal tissues who are susceptible to antibiotics may experience severe allergic reactions as a result of ingesting food containing out-of-tolerance
antibiotic levels.   Furthermore, food containing above-tolerance antibiotic levels contributes to the development of antibiotic-resistant strains of bacteria in those who eat or handle food containing residues of such drugs.

The complaint filed by the United States asked the court to permanently enjoin the firms and individual defendants from violating the FDCA.  The permanent injunction entered by the court requires the firms and individual defendants to take a wide range of actions to correct their violations and ensure that they do not happen again.   Among other actions, the firms must establish and implement a written record-keeping system for every animal receiving drugs to prevent the firms from selling or distributing any animals whose edible tissues contain new animal drugs in amounts above the levels permitted by law.   The firms must also establish and implement a system that ensures that their use of new animal drugs conforms to the uses approved by the FDA or, for new animal drugs used in an extra-label manner, to the lawful written order of a licensed veterinarian.

“Foods that contain excessive levels of antibiotics and other drugs pose a significant risk to the public health,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division.  “Along with our partners at HHS, FDA and USDA, the Department of Justice is committed to making sure that the food on our tables is safe to eat.”

FDA recently said that it is implementing a voluntary plan with industry to phase out the use of certain antibiotics for enhanced food production.   For more information on this, you can visit the FDA website at http://www.fda.gov/ForConsumers/ConsumerUpdates/ucm378100.htm .

Assistant Attorney General Delery thanked the FDA for referring this matter to the Department of Justice.  Roger Gural, Trial Attorney at the Consumer Protection Branch of the Justice Department, in conjunction with Assistant U.S. Attorney David Lew in the Western District of Pennsylvania, and Christopher Fanelli, Assistant Chief Counsel for Enforcement of the Food and Drug Division, Department of Health and Human Services, brought this case on behalf of the United States.

LABOR DEPARTMENT SUES TO RESTORE VALUE TO AN EMPLOYEE STOCK-OWNERSHIP PLAN

FROM:  U.S. LABOR DEPARTMENT 
Labor Department files suit to restore losses to the Miller's Health Systems Employee Stock Ownership Plan

WARSAW, Ind —The U.S. Department of Labor has filed a lawsuit in U.S. District Court to recover losses to the Miller’s Health Systems, Inc., Employee Stock Ownership Plan. The suit alleges that PBI Bank, Inc., the trustee of the plan, authorized the purchase of company stock for $40 million, an amount far in excess of the fair market value of the stock. The suit also alleges that PBI Bank approved financing for the transaction at an excessive interest rate. Miller’s Health is a Warsaw-based company that manages long-term care and assisted-living facilities.
“Fiduciaries must act with undivided loyalty to plan participants.  When it comes to ESOP stock purchases, they must ensure that the plan receives full value for its money,” said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi.

An investigation by the Chicago Regional Office of the department’s Employee Benefits Security Administration focused on a September 2007 stock purchase. The suit alleges that PBI violated ERISA by imprudently and disloyally approving the purchase of stock by the plan.  The suit seeks to require PBI to restore all losses suffered by the ESOP, plus interest.

At the time of the stock purchase, Miller’s Health managed 31 long-term care facilities under the name of Miller’s Mary Manor and 10 assisted living facilities under the name Miller’s Senior Living. Miller’s Health also operated Theracare, Inc., an Indiana corporation, which primarily provided physical and occupational therapy and speech-language pathology to residents in Miller’s Health facilities.
After conducting its investigation, the department concluded that, as a result of the design of the transaction and the fiduciary breaches of PBI, the stock purchase was not for the primary benefit of participants and did not promote employee ownership in Miller’s Health. As a result, the department concluded that PBI was responsible and liable for violations of the Employee Retirement Income Security Act.

The lawsuit also seeks to remove PBI as a fiduciary and service provider of the plan and to permanently bar it from serving as a fiduciary or service provider to ERISA-covered plans in the future.

As of Sept. 30, 2012, the ESOP had 2,939 participants and assets of $12,848,000.

NEC DIRECTORS STATEMENT ON EXTENDING UNEMPLOYMENT BENEFITS

FROM:  THE WHITE HOUSE 
Statement from the Director of the National Economic Council Gene Sperling

As the President has repeatedly made clear, it  defies economic sense, precedent and our values to allow 1.3 million Americans fighting to find jobs to see their unemployment insurance abruptly cut off -- especially in the middle of the holiday season. These are our neighbors, our community members and often fellow parents who depend on this as a temporary lifeline while they are actively looking for new jobs to support their families and make ends meet.  Never before have we abruptly cut off emergency unemployment insurance when we faced this level of long-term unemployment and it would be a blow to these families and our economy.

While we remain disappointed that Congress did not heed the President's call to extend emergency unemployment benefits for next year before the holidays, the President as well as the Democratic Congressional leadership have made clear the importance of extending the benefits immediately upon Congress's return. Senator Jack Reed and Senator Heller have put forward bipartisan legislation to extend emergency unemployment insurance for three months which would prevent these 1.3 million workers and their families from losing benefits while giving more time for consideration of further extension through 2014, and Leader Reid will bring it to a vote as soon as they return. The President strongly encourages both the Democratic and Republican Congressional leadership and their members to support this bipartisan solution and to pass the Reed-Heller bill.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR DECEMBER 27, 2013

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS

AIR FORCE

Lockheed Martin Space Systems Co., Sunnyvale, Calif., has been awarded an $116,069,077 cost-plus-incentive-fee contract modification (P00548) on contract (F04701-02-C-0002) for Space Vehicle (SV) 4 launch operations and support to integrate the space vehicle into the launch vehicle.  SV4 launch preparation activities begin at launch minus 12 months.  During this period, the contractor performs pre-launch planning and preparation activities for the launch and early orbit operations rehearsal campaign. Work will be performed at Sunnyvale, Calif., and El Segundo, Calif., and is expected to be completed July 31, 2019.  Fiscal 2014 missile procurement funds in the amount of $2,000,000 are being obligated at time of award. The Air Force Space and Missile Systems Center, PKJ, Los Angeles Air Force Base, Calif., is the contracting activity.

Alvarez & Marsal Real Estate Advisory Services, LLC, Washington, D.C., has been awarded an $88,000,000 indefinite-delivery/indefinite-quantity contract for Air Force privatization, post closing management 2013 (PCM-13) services.  The contract provides advisory and assistance services for long-term post closing management services in support of the Air Force's privatization of military housing, enhanced use leasing, value-based transaction, voluntary action program for real estate and environmental issues related to Base Realignment and Closure, Real Estate Transaction, and other programs throughout the United States.  This indefinite-delivery/indefinite-quantity contract has a five year ordering period, with one additional year performance.  Work will be performed at the contractor's facility in Washington, D.C., and various Air Force installations, and is expected to be complete by Dec. 26, 2019.  This award is the result of a competitive acquisition, and 100 offers were solicited and two offers were received.  Fiscal 2014 operation and maintenance funds in the amount of $3,000 are being obligated at time of award.  772 Enterprise Sourcing Squadron/PKS, Joint Base San Antonio, Lackland, Texas, is the contracting activity (FA8903-14-D-0040).

Lockheed Martin Information Systems & Global Services, Colorado Springs, Colo., has been awarded a $47,347,121 modification (P00302) exercising an option to an existing contract (F19628-00-C-0019) to support critical mission operations for NORAD Cheyenne Mountain Complex/Integrated Tactical Warning/Attack Assessment in support of air, missile and space defense for the national command authority.  This sustainment effort encompasses operations, maintenance and support to maintain mission integrity for the Target System Architecture systems at Cheyenne Mountain Air Force Station, Colo., the Alternate Mission Command Center, and forward user and sensor sites, as well as maintenance of legacy systems at Peterson Air Force Base, Colo., Test Development Facility, Space Training System and Joint Space Operations at Vandenberg AFB, Calif., and the ISC2 Test and Integration Lab in Colorado Springs, Colo.  Also included are the 721 CS, the Cheyenne Mountain Communications Squadron support. Work will be performed at Colorado Springs, Colo., and Vandenberg AFB, Calif., and is expected to be completed by Sep. 30, 2014. Fiscal 2014 operations and maintenance funds in the amount of $6,520,588 are being obligated at time of award.  Air Force Life Cycle Management Center/HBQK, Peterson AFB, Colo., is the contracting activity.

DEFENSE LOGISTICS AGENCY

TeraRecon, Inc.,* Foster City, Calif., has been awarded a maximum $30,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for the procurement of  radiology systems, subsystems, accessories, service, manuals and repair parts. This contract is a competitive acquisition, and fifty offers were received. Location of performance is California with a Dec. 22, 2014 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps and federal civilian agencies.  Type of appropriation is fiscal year 2014 working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE2D1-14-D-0001).

Brothers Produce, Inc.,* Houston, Texas, has been awarded a maximum $21,474,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for the procurement of full line fresh fruit and vegetable support to non-Department of Defense customers in the Dallas-Fort Worth schools zone.  This contract is a competitive acquisition, and three offers were received. Location of performance is Texas with a July 6, 2018 performance completion date.  Using service is U.S. Department of Agriculture school customers.  Type of appropriation is fiscal year 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE300-14-D-8607).

ARMY

CDM Federal Programs, Kansas City, Mo., was awarded a $9,500,000 firm-fixed-price, multi-year, indefinite-delivery/indefinite-quantity contract for civil works for the Kansas City District of the Corps of Engineers.  Funding will be determined with each order.  Work to be performed will be determined with each order, and is expected to be complete Dec. 26, 2018.  Bids were solicited via the Internet with 11 received.  The U.S. Army Corps of Engineers, Kansas City, Mo., is the contracting activity (W912DQ-14-D-1003).

*Mythics, Incorporated, Virginia Beach, Va., was awarded a $19,770,292 firm-fixed-price modification (BA0415) of contract (W91QUZ-06-A-0003) in exercise of option year two for new products and support for Oracle.  Work will be performed in Alexandria, Va., and expected to be complete Dec. 31, 2014.  The contract will be incrementally funded using fiscal year 2014 operations and maintenance funds.  The U.S. Army Contracting Command, Rock Island Arsenal, Ill. is the contracting activity.

NAVY

Lockheed Martin Mission Systems and Training, Moorestown, N.J., is being awarded a $574,538,664 firm-fixed-price, multi-year procurement contract (N00024-14-C-5114) for the production of the Aegis Weapon System MK 7 equipment sets in support of the DDG 51 Shipbuilding Program and an option for Aegis Ashore Missile Defense System, Host Nation Poland, and engineering services.  This procurement includes economic order quantity, advance procurement funding for production related materials for the multi-year procurement ship sets.  Work will be performed in Moorestown, N.J. (85.5 percent); Clearwater, Fla. (13.1 percent); and Akron, Ohio (1.4 percent), and is expected to be completed by September 2021.  Fiscal 2013 shipbuilding and conversion, Navy funds in the amount of $308,360,317 will be obligated at the time of award.  Contract funds will not expire at the end of the current fiscal year.  This contract was awarded as a sole-source contract authorized under 10 U.S.C. 2304(c)(1) - only one or limited number of sources and no other suppliers will satisfy the requirements.  The Naval Sea Systems Command, Washington Navy Yard, Washington, D.C., is the contracting activity.

Lockheed Martin Corp., Mission Systems and Training, Manassas, Va., is being awarded an $84,650,745 modification to previously awarded contract (N00024-13-C-6272) for fiscal 2014 Acoustic Rapid Commercial-Off-The-Shelf Insertion (A-RCI) production.   A-RCI is a sonar system that integrates and improves towed array, hull array, sphere array, and other ship sensor processing, through rapid insertion of COTS based hardware and software.   The contract provides funding for the development and production of the A-RCI and common acoustics processing for Technology Insertion 14 (TI-14) for the United States submarine fleet.  This modification will purchase TI-14 System Upgrades for 12 ships including pre-cable kits.  Work will be performed in Manassas, Va. (60 percent) and Clearwater, Fla. (40 percent), and is expected to be completed by September 2018.  Fiscal 2012, 2013, 2014 shipbuilding and conversion, Navy and fiscal 2014 other procurement, Navy contract funds in the amount $81,681,413 will be obligated at the time of award.  Contract funds will not expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington Navy Yard, Washington, D.C., is the contracting activity (N00024-13-C-6272).

Raytheon Technical Services Co., Indianapolis, Ind., is being awarded $40,911,284 ceiling priced delivery order 7000 against previously issued basic ordering agreement (N00383-14-G-006D) for the repair of 40 Weapon Replaceable Assemblies of the APG 65/73 Radar System used in support of the F/A-18 aircraft.  Work will be performed in Indianapolis, Ind. (57 percent); El Segundo, Calif. (24 percent); Forest, Miss. (17 percent); Andover, Maine (2 percent), and work is expected to be completed no later than December 2015.   Fiscal 2014 Navy working capital funds in the amount of $20,455,642 will be obligated at the time of award, and will not expire before the end of the current fiscal year.  The contract was not competitively procured and is issued on a sole-source basis in accordance with 10 U.S.C. 2304(c)(1).  Naval Supply Systems Command, Weapon Systems Support, Philadelphia, Pa., is the contracting activity.  

T. B. Penick & Sons, Inc., San Diego, Calif., is being awarded $18,702,988 for firm-fixed-price task order 0007 under a previously awarded multiple award construction contract (N62473-10-D-5412) for renovation of the medical clinic at Marine Corps Air Ground Combat Center, Twentynine Palms.  The work to be performed provides for replacement of a medical clinic with multi-story concrete masonry unit building on a concrete foundation to deliver primary care, physical therapy, behavioral and deployment health, and ancillary and diagnostic imaging services. Supporting facilities will include utilities, site improvements, parking, signage, and environmental protection measures.  Existing clinic and site structures will be demolished after new clinic has been completed.  The task order also contains one planned modification, which if exercised would increase cumulative task order value to $18,723,488.  Work will be performed in Twentynine Palms, Calif., and is expected to be comp
leted by September 2015.   Fiscal 2013 military construction, Defense medical contract funds in the amount of $18,702,988 are obligated on this award and will not expire at the end of the current fiscal year.  Seven proposals were received for this task order.  The Naval Facilities Engineering Command, Southwest, San Diego, Calif., is the contracting activity.

BAE Systems Information and Electronic Systems Integration (IESI), Inc., Greenlawn, N.Y., is being awarded a $16,472,873 firm-fixed-price contract for the procurement of Common Identification Friend or Foe hardware for the U.S. Army, U.S. Navy, and the governments of Korea, Taiwan, and the United Arab Emirates, including transponders, remote control units, mounts, power supplies; chasses, displays, repairs, and modification kits.  Work will be performed in Greenlawn, N.Y. (86 percent) and Scottsdale, Ariz. (14 percent), and is expected to be completed in January 2016.   Fiscal 2012, 2013 aircraft procurement, Navy; Fiscal 2013 aircraft procurement, Army; Fiscal 2012, 2013, 2014 other procurement, Navy; Fiscal 2013, 2014 research, development, test and evaluation, Navy; Fiscal 2014 aircraft procurement, Navy; Fiscal 2014 operations and maintenance, Navy; Fiscal 2014 Navy working capital funds; and Foreign Military Sales contract funds in the amount of $16,472,873 are being obligated at time of award, $722,959 of which will expire at the end of the current fiscal year.  This contract combines purchases for the U.S. Army ($7,938,757; 48.2 percent); U.S. Navy ($6,682,819; 40.6 percent), and the Governments of Korea ($820,525; 5 percent), Taiwan ($781,676; 4.7 percent); and the United Arab Emirates ($249,096; 1.5 percent) under the Foreign Military Sales program. This contract was not competitively procured pursuant to FAR 302-1.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-14-C-0034).

*Small Business

COURT SHUTS DOWN TAX PREPAER FOR ALLEGED FALSIFICATION OF TAX RETURNS

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, December 24, 2013
Federal Court Shuts Down Montgomery Area Tax Preparer
Alabama Preparer Allegedly Falsified Tax Returns at Cost of Millions to U.S. Treasury

A federal court in Montgomery, Ala., permanently barred Kenya Hendrix Adams from preparing tax returns for others, the Justice Department announced today.   The permanent injunction order was signed by U.S. District Court Judge Mark E. Fuller of the Middle District of Alabama.

The order, filed on Dec. 20, 2013, also requires Adams to turn over to the United States copies of all returns or claims for refund that she prepared after Jan. 1, 2008, and to notify each person for whom she prepared returns since that date.   The order authorizes the United States to monitor Adams’ compliance with the terms of the order.

The government’s complaint alleged that Adams repeatedly prepared federal tax returns that understated her clients’ federal tax liabilities.   According to the complaint, Adams did so by falsely claiming or inflating tax credits or fabricating deductions.   The suit alleges that the harm to the United States Treasury as a result of her conduct could be in the millions of dollars.

“These fraudulent tax preparers create a horrible problem in this area,” said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.   “What these people are doing must be stopped.   I applaud the IRS for taking the steps to shut down those fraudulent tax preparers.”

Claiming bogus tax refunds is one of the IRS’s Dirty Dozen Tax Scams.   In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers.   Information about these cases is available on the Justice Department website .   For more information about choosing a tax return preparer, see the IRS website and the IRS YouTube Channel .

U.S. CONDEMNS ASSASSINATION OF FORMER LEBANESE CABINET MINISTER MOHAMAD CHATAH

FROM:  U.S. STATE DEPARTMENT, 
Terrorist Attack and Assassination of Mohamad Chatah
Press Statement
John Kerry
Secretary of State
Washington, DC
December 27, 2013

On behalf of President Obama and the United States, I condemn in the strongest possible terms today's abhorrent terrorist attack and assassination of former Lebanese Cabinet Minister Mohamad Chatah in Beirut.

This is a terrible loss for Lebanon, the Lebanese people and for the United States.

I had the privilege of spending many hours with Chatah during my visits to Beirut as a United States Senator, and I know he was a voice of reason, responsibility and moderation. His presence will be missed, but his vision for a united Lebanon, free from sectarian violence and destabilizing interference, will continue to guide our efforts.

Indeed, his tragic end reminds all of us just why his vision remains so imperative.

The Obama Administration supports Lebanon as its leaders work to bring those responsible for this heinous and cowardly attack to justice under the rule of law.

Such actions cannot be allowed to take place with impunity.

This is why we fully support the work of the Special Tribunal for Lebanon and its efforts to find and hold accountable those responsible for these reprehensible and destabilizing acts.

These acts only reinforce the strength and resolve of our commitment to support legitimate, unifying security forces in Lebanon, such as the Lebanese Armed Forces.

It also shows the importance of all parties adhering to the Taif and Baabda agreements and UN Security Council Resolutions 1559 and 1710, and fulfilling their commitments to all of those principles, so that Lebanon maintains its sovereignty and stability.

We stand with the Lebanese people at this time and will continue to do so.

STATE DEPARTMENT TOUTS U.S. ROLE IN DESTRUCTION OF CONVENTIONAL WEAPONS IN IRAQ

FROM:  U.S. STATE DEPARTMENT 
Iraq: Decade of U.S. Support for Conventional Weapons Destruction Saves Lives and Builds Capacity
Fact Sheet
Office of the Spokesperson
Washington, DC
December 26, 2013

In 2013, we mark ten years of U.S. Government assistance to Iraq for Conventional Weapons Destruction, including Humanitarian Mine Action, and are proud of the programs and partnerships that enable countless Iraqi citizens to live and work in their communities more safely. The United States has invested more than $235 million in Iraq since 2003 toward the clearance and safe disposal of landmines, unexploded ordnance, and excess conventional weapons and munitions. This assistance, directed through several Iraqi and international nongovernmental organizations, has made significant progress toward protecting communities from potential risks, restoring access to land and infrastructure, and developing Iraqi capacity to manage weapons abatement programs independently over the long term.

The Landmine/Unexploded Ordnance Challenge

Iraq faces a significant challenge from landmines and unexploded ordnance as a result of conflicts dating back to the 1940s. In addition, large stocks of abandoned ordnance and unstable, poorly-secured munitions stockpiles also remain a threat to communities across the country. In FY 2009, the Office of Weapons Removal and Abatement in the U.S. Department of State’s Bureau of Political-Military Affairs invested $4.3 million with the Iraq Mine/UXO Clearance Organization (IMCO) to conduct a CWD program that included the destruction of 37,939 weapons, ranging from pistols to 120mm mortars.

Explosive remnants of war, such as unexploded artillery shells, mortars, and other munitions still present daily hazards to Iraqi citizens across the country. Information Management and Mine Action Programs (iMMAP) conducted two Landmine Impact Surveys in 2006 and 2011 that estimated 1,513 million square meters (585 square miles) of land in Iraq contain as many as 20 million landmines and millions more pieces of unexploded ordnance.

As many as 1,430 Iraqi cities, towns and villages remain at risk from explosive hazards. Landmines and unexploded ordnance contaminate significant acreage of agricultural land, making clearance an economic necessity for communities to regain their livelihoods as well as a security priority for Iraq’s future. Additional surveys will determine the full extent of the challenge facing Iraq in the years to come.

FY 2012 Accomplishments

During Fiscal Year 2012 (the last fiscal year for which complete data is available), the Department of State’s Office of Weapons Removal and Abatement in the Bureau of Political-Military Affairs provided $25 million in Iraq for Conventional Weapons Destruction (CWD) efforts that:

Safely cleared landmines and unexploded ordnance from more than 687 million square meters (265 square miles) of land across Iraq, which has revitalized economic and agricultural development throughout the nation.

Destroyed more than 135,430 pieces of unexploded ordnance, and abandoned or otherwise at-risk munitions.

Provided outreach education to more than 40,000 Iraqi men, women and children about potential dangers from landmines and unexploded ordnance in their communities.

U.S.-funded partner initiatives include:

Geneva International Centre for Humanitarian Demining (GICHD): With U.S. support and funding, the GICHD completed an assessment of Iraq’s mine action capabilities and developed a two- to three-year development plan for Iraqi training and capacity development. GICHD also led a course with the Ministry of Defense and Directorate for Mine Action staff on quality assurance (QA) and quality control and on the use of demining machines in October 2012.

Information Management and Mine Action Programs (iMMAP): With U.S. financial support, advisors continue to provide operational management, strategic planning, and Victims’ Assistance support. In FY 2012, iMMAP delivered six workshops, 13 training courses, and trained 128 students in information management, data collection, and mapping. In addition, iMMAP also trained 50 rehabilitation technicians to treat thousands of landmine/unexploded ordnance and improvised explosive device survivors.

 Iraq Mine/UXO Clearance Organization (IMCO) Central/Southern Iraq: IMCO supported four technical advisors and provided landmine and unexploded ordnance clearance remediation in central and southern Iraq. Since May 2012, IMCO has returned over 3,300,000 square meters (815 acres) of land to communities through quality control checks and clearance methodologies. In addition, IMCO conducted technical and non-technical surveys of over 1,800,000 square meters (450 acres) of land, and located and handed over almost 2000 landmines and pieces of UXO to the Iraqi Ministry of Defense.

MAG (Mines Advisory Group) Northern and Central CWD: As a result of minefield and Battle Area Clearance in FY 2012, MAG has returned more than two million square meters (507 acres) of land to local communities for agriculture and economic development.

Marshall Legacy Institute (MLI): In partnership with IMCO, in FY 2012 MLI expanded its mine detection dog program in southern Iraq and linked three American schools to three Iraqi schools through its Children Against Mines Program to promote mine risk education in schools and provide medical assistance to young survivors.

MLI and the Polus Center for Social and Economic Development: Working together, MLI and the Polus Center oversaw the Partnership for Iraq Program, which is establishing a cost-sharing program to create a center to provide vocational and medical rehabilitation for thousands of mine and war survivors in Basrah and the surrounding area.

Norwegian Peoples Aid (NPA): NPA provided technical advisors to the Regional Mine Action Center - South (RMAC-S) to assist the RMAC-S in fulfilling its role as a regulatory body that is able to coordinate and monitor mine action activities. This project has enabled the RMAC-S to implement a Non-Technical Survey (NTS) designed to provide a more accurate picture of the mine/ERW situation in southern Iraq.

Spirit of Soccer (SoS): Spirit of Soccer expanded its landmine/unexploded ordnance risk education projects throughout Iraq. Spirit of Soccer is implementing innovative projects using soccer as a means to promote education and outreach to children about risks from landmines and unexploded ordnance.
U.S. Government FY 2013 Conventional Weapons Destruction funding allocated for Iraq totals $23.75 million. The Bureau of Political-Military Affairs is using that funding to continue humanitarian mine action programs similar to those described above and will continue these efforts in FY 2014.

The United States is the world’s single largest financial supporter of efforts to clear landmines and unexploded ordnance. Since 1993, the United States has contributed more than $2.1 billion to more than 90 countries around the world to reduce the harmful worldwide effects of at-risk, illicitly proliferated, and indiscriminately used conventional weapons of war. For more information on U.S. humanitarian demining and Conventional Weapons Destruction programs, check out the latest edition of our annual report, To Walk the Earth in Safety.

SEC AND BIOTECH COMPANY SETTLE CIVIL ACTION IN UNREGISTERED DISTRIBUTION OF STOCK CASE

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 
SEC Settles Civil Action Against Advanced Cell Technology, Inc. Concerning Its Illegal Unregistered Distributions of Stock - Relief Includes Payment of More Than $4 Million

The Commission today settled a pending civil action against Advanced Cell Technology, Inc. (“Advanced Cell”), arising out of Advanced Cell’s issuance of hundreds of millions of unregistered shares of common stock on thirteen separate occasions without qualifying for any exemption from registration. The settlement, which was filed with the Court earlier today, is subject to the Court’s approval.

In its Complaint filed on May 30, 2012, the Commission alleged that seven defendants, including Advanced Cell, a biotechnology company with headquarters in Marlborough, Massachusetts, violated the federal securities laws by engaging in the illegal unregistered distribution of billions of shares of penny stocks through the repeated misuse of the exemption from registration contained in Section 3(a)(10) of the Securities Act of 1933. Section 3(a)(10) permits a company to issue common stock to public investors other than pursuant to an effective registration statement “in exchange for one or more bona fide outstanding securities, claims or property interests . . . where the terms and conditions of such issuance and exchange are approved after a hearing [held before a court or other governmental authority authorized to conduct such hearings] upon the fairness of such terms and conditions.” The Section 3(a)(10) exemption may not be relied upon for capital formation by issuers, and it was improperly used for that purpose in these transactions.

According to the Commission’s Complaint, in or about early 2006, Mark A. Lefkowitz, a penny stock financier, developed an illegal strategy for penny stock issuers to pay off past due debts and also raise capital by issuing stock purportedly pursuant to the Section 3(a)(10) exemption. The Complaint alleges that in September 2008, Lefkowitz introduced the strategy to William Caldwell IV, who was then the Chief Executive Officer of Advanced Cell.

The Complaint alleges that from September 2008 through January 2009, pursuant to an agreement between Lefkowitz and Caldwell, several entities affiliated with Lefkowitz (collectively, the “Lefkowitz Related Entities”) purchased past due debts of Advanced Cell from various Advanced Cell debtholders. Shortly after a Lefkowitz Related Entity acquired each debt, Lefkowitz and Caldwell agreed on the terms of a settlement, and the Lefkowitz Related Entity filed a lawsuit against Advanced Cell in a Florida state court purportedly to collect on the debt. The principal purpose of the lawsuits, according to the Complaint, was to present the settlements to the Florida state court for a fairness hearing, as required by Section 3(a)(10).

The Complaint alleges that, in each instance, the Florida state court found the settlements to be fair and entered an order granting a Section 3(a)(10) exemption. However, the Commission’s Complaint asserts that the parties never informed the Florida state court of the full terms and conditions of the settlements, thereby compromising the fairness hearings. According to the Complaint, the parties falsely represented to the Florida state court that they were settling for the face value of the past due debts and did not inform the Florida state court of the actual market value of the settlement shares or that the market value of the shares greatly exceeded the amount of the debts that were to be extinguished. Nor was the Florida state court told that the Lefkowitz Related Entities had agreed to sell the settlement shares quickly and remit a substantial portion of the sales proceeds to Advanced Cell.

According to the Complaint, Advanced Cell ultimately issued a total of 260,115,983 shares of unrestricted common stock to settle the thirteen lawsuits filed against it by the Lefkowitz Related Entities. The settlement shares, which had a total market value of approximately $9,230,000 as of the respective settlement dates, were issued to satisfy past due debts totaling approximately $1,110,000. According to the Complaint, after retaining a portion of the profits from the sale of the shares for themselves, the Lefkowitz Related Entities remitted $3.5 million to Advanced Cell.

The Complaint alleges that, as a result of the foregoing, Advanced Cell’s unregistered distributions to the Lefkowitz Related Entities violated Section 5 of the Securities Act. The Complaint also alleges that Advanced Cell failed to timely disclose the settlement agreements and its issuance of unregistered shares of common stock in connection with the Section 3(a)(10) settlements by filing current reports on Forms 8-K with the Commission.

The proposed final judgment would enjoin Advanced Cell from violating Section 5(a) and 5(c) of the Securities Act of 1933 and Section 13(a) of the Securities Exchange Act of 1934 and Rule 13a-11 thereunder. It would also order Advanced Cell to disgorge $3.5 million in ill-gotten payments from the Lefkowitz Related Entities, plus prejudgment interest in the amount of $586,619, for a total of $4,086,619, but would not impose a civil penalty based upon Advanced Cell’s financial condition. Advanced Cell consented to the entry of the proposed Final Judgment without admitting or denying the allegations in the Commission’s Complaint.

The Commission’s litigation against the five remaining defendants, Mark A. Lefkowitz, Mark A. Lopez, Unico, Inc., Steven R. Peacock, and Shane H. Traveller, is ongoing.

FUTURE LITTORAL COMBAT SHIP CHRISTENED

FROM:  U.S. NAVY USS MILWAUKEE 
Future USS Milwaukee (LCS 5) Christened and Launched, Marks Production Milestone
Story Number: NNS131218-14 Release 
Date: 12/18/2013 5:00:00 
From Program Executive Office Littoral Combat Ships Public Affairs

MARINETTE, Wis. (NNS) -- The Navy, along with the Lockheed Martin-led industry team, christened and launched the future USS Milwaukee in a ceremony at the Marinette Marine Corporation shipyard Dec. 18, marking an important production milestone for the littoral combat ship program.

The ship joins the future USS Jackson (LCS 6), which launched Dec. 14 following construction at the Austal USA shipyard in Alabama. These ships are the first vessels procured under the block buy contract awarded in 2010 and represent the true beginning of "serial production" for the class. With serial production, the Navy is able to realize benefits such as improved cost structure per vessel and reduced construction time.

"Milwaukee will be an exceptional ship and I am pleased with the progress being made," said Rear Adm. Brian Antonio, program executive officer, Littoral Combat Ships. "With serial production lines now in full swing at both LCS building yards, we are looking forward to each new ship joining the fleet on a regular and consistent timeline. This is a significant step for the program and the Navy."

As is tradition, ship sponsor Sylvia Panetta struck the bow with a bottle of champagne, officially naming the ship. LCS 5 is the sixth U.S. Navy vessel christened in tribute to the Wisconsin city. Panetta, wife of former Secretary of Defense Leon Panetta, has been a tireless supporter of the military and longtime advocate for public service.

"It is a true privilege to serve as the sponsor for this ship as it begins its journey of service and commitment to our powerful fleet," said Mrs. Panetta. "I am proud to support the ship's crew members over the course of her service to ensure it leads with strength and protects our freedom. My congratulations to the city of Milwaukee as this ship assumes its name."

The christening ceremony was followed by a dramatic side launch of the ship into the Menominee River.

Milwaukee will continue to undergo outfitting and testing at Marinette Marine. The ship is expected to deliver to the Navy in early 2015 following acceptance trials.

The LCS Class consists of two variants, the monohull design Freedom variant and the trimaran design Independence variant. The ships are designed and built by two industry teams, led by Lockheed Martin and Austal USA, respectively. Milwaukee is the third LCS constructed by the Lockheed Martin team.

Both variants of the LCS are fast, agile, focused-mission platforms designed for operation in near-shore environments yet capable of open-ocean operation. They are designed to embark specialized mission packages to defeat "anti-access" threats such as mines, quiet diesel submarines, and fast surface craft.

The Navy has been able to incorporate much of the knowledge gained in the construction, test and operation of LCS 1 and LCS 2, the lead ships of the class, into follow on ships. Many of those are currently in various stages of construction, and will deliver to the Navy over the next few years. These include Milwaukee's sister ships - Detroit (LCS 7), Little Rock (LCS 9), Sioux City (LCS 11), Wichita (LCS 13), and Billings (LCS 15).

Program Executive Office Littoral Combat Ships is affiliated with the Naval Sea Systems Command and provides a single program executive responsible for acquiring and sustaining mission capabilities of the littoral combat ship class, from procurement through fleet employment and sustainment. Delivering high-quality warfighting assets while balancing affordability and capability is key to supporting the nation's maritime strategy.

FOUR INDICTED IN FALSE TAX RETURN CONSPIRACY CASE

FROM:  U.S. JUSTICE DEPARTMENT T
Monday, December 23, 2013
Four Minneapolis-based Return Preparers Indicted for Conspiracy, Aggravated Identity Theft, Preparing False Returns

A 63-count superseding indictment charging Chatonda Khofi, Ishmael Kosh, Amadou Sangaray and Francis Saygbay in a conspiracy to defraud the Internal Revenue Service (IRS) was unsealed on Monday, December 23, in Minneapolis, Minn., the Justice Department and IRS announced today.  The superseding indictment was returned by a federal grand jury on Nov. 19, 2013, and alleges that Primetime Tax Services Inc. was a tax return preparation business with three storefronts in the Minneapolis area.  Khofi worked as the Chief Executive Officer of Primetime, and Kosh and Sangaray worked as managers of the Brooklyn Center location of Primetime.  All four named defendants allegedly prepared false tax returns under the name of Primetime.

According to court documents, Khofi, Kosh, Sangaray and Saygbay conspired amongst themselves and with others to prepare and file false individual income tax returns for the customers of Primetime.  Some of these returns reported false dependents, false deductions, false Schedule C business losses and false wage income.  These false entries resulted in fraudulently inflated refunds for their customers.  As part of the scheme, court documents allege that the defendants prepared and filed false Minnesota state income tax returns for their customers that contained the same or similar false information as reported on the federal income tax returns.  From 2007 to 2009, Primetime filed over 2,000 customer federal income tax returns with the IRS.

The indictment further charges each defendant with multiple counts of aggravated identity theft and multiple counts of aiding and assisting in the preparation of false individual income tax returns.  The aggravated identity theft charges stem from the defendants’ alleged use of the names and social security numbers of actual persons to falsely claim as dependents on their customers’ individual income tax returns.

According to the indictment, the defendants also accompanied some customers to check-cashing businesses to cash their falsely inflated tax refund checks, then demanded a portion of the cashed refund check in addition to tax preparation fees already collected.  The indictment alleges that, in some instances, the defendants withdrew cash from debits cards containing their customers’ refunds without permission, again in addition to the tax preparation fees they had already collected.

An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.  If convicted, the defendants face a maximum potential sentence of five years in prison for the conspiracy count and three years in prison for each count of aiding in the preparation of a false tax return.  The aggravated identity theft counts have a mandatory two year sentence.

The case was investigated by special agents of IRS-Criminal Investigation.  It is being prosecuted by Trial Attorneys Dennis Kihm and Thomas Flynn of the Justice Department's Tax Division.

FDIC SETTLES WITH AMERICAN EXPRESS CENTURION BANK IN DECEPTIVE PRACTICES CASE

FROM:  FEDERAL DEPOSIT INSURANCE CORPORATION 
FDIC Announces Settlement With American Express Centurion Bank for Unfair and Deceptive Practices 

Today, the Federal Deposit Insurance Corporation (FDIC) announced a settlement with American Express Centurion Bank, Salt Lake City, Utah, (Bank) for unfair and deceptive marketing practices related to credit card "add-on products," in violation of Section 5 of the Federal Trade Commission (FTC) Act.

This action results from a review of the Bank's credit card products by the FDIC and the Consumer Financial Protection Bureau (CFPB). As part of the settlement, the Bank stipulated to the issuance of a Consent Order, Order for Restitution, and Order to Pay Civil Money Penalty (collectively, FDIC Order). The FDIC Order requires the Bank to pay a civil money penalty (CMP) of $3.6 million. The CFPB is also taking a parallel enforcement action against the Bank for the same practices and will assess a separate CMP of $3.6 million. Together, the FDIC and CFPB will require restitution of no less than $40.9 million to harmed consumers.

The Office of the Comptroller of the Currency (OCC) and the CFPB also announced actions against other American Express affiliated institutions for the same unfair and deceptive practices identified in those institutions. Collectively, these actions will result in restitution of approximately $59.5 million to more than 335,000 consumers.

The FDIC determined that the Bank violated federal law prohibiting unfair and deceptive practices by, among other things:

Misrepresenting to consumers the benefits and costs of its "Account Protector" add-on product. Consumers were led to believe that the benefits would continue for up to 24 months in the event of a qualifying life event, when in fact the majority of events had benefit periods of one, two, or three months. Consumers were also led to believe that if they purchased the product their monthly minimum payment would be cancelled in the event of a qualifying event. However, the benefit payment was limited to 2.5% of the consumer's outstanding balance, up to $500, which could be less than the minimum monthly payment.
Misrepresenting the terms and conditions of the "Lost Wallet" add-on product through telemarketing calls conducted in Spanish to consumers in Puerto Rico. American Express did not provide uniform Spanish language scripts to its customer service representatives for enrollment calls, and all written materials provided to consumers were in English.
Consumers were not informed during telemarketing calls or during the enrollment process for identity theft products that two steps were necessary to fully utilize credit monitoring and public records monitoring benefits. The second step was not completed by 85 % of consumers. These consumers were thus unfairly billed for benefits they did not receive.
In addition, the Order requires the Bank to take affirmative steps to correct its marketing and billing practices, and to ensure that all of the add-on products offered by the Bank are marketed and administered in compliance with applicable laws.

DOL ANNOUNCES $5 MILLION GRANT TO REDUCE CHILD LABOR IN BURMA

FROM:  U.S. LABOR DEPARTMENT 
$5M grant to reduce child labor in Burma awarded by US Labor Department

WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today announced the award of a $5 million cooperative agreement to the International Labour Organization to implement a project to reduce child labor in Burma and support the Government of Burma's efforts to comply with international standards.

The project will:
support research and collection of data on the extent and nature of child labor in Burma, build the capacity of national and local organizations to carry out efforts to reduce child labor, implement pilot programs to remove or prevent children from involvement in exploitative labor and raise awareness about child labor in the country.

"This project will develop effective strategies for reducing child labor in Burma," said Deputy Undersecretary of Labor for International Affairs Carol Pier. "It will expand understanding of the extent and nature of the problem and help stakeholders in the country increase efforts to protect children."

The project involves collaboration among key government agencies and ministries at the national, regional and local levels, including the Ministry of Labour, Employment and Social Security. It will also work with workers' organizations, employers' organizations, civil society organizations and teachers.

Since 1995, ILAB projects have rescued approximately 1.7 million children from exploitative child labor. The Labor Department has funded 275 such projects implemented by more than 65 organizations in 93 countries. ILAB currently oversees more than $245 million of active programming to combat the worst forms of child labor.

OHIO LOBBYIST PLEADS GUILTY IN KICKBACK AND MONEY LAUNDERING CASE

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, December 23, 2013
Ohio Lobbyist Pleads Guilty for Role in Kickback and Money Laundering Scheme

An Ohio attorney and lobbyist pleaded guilty today for his role in a bribery and money laundering scheme involving the Ohio Treasurer’s Office.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Mark T. D’Alessandro of the Southern District of Ohio, and Special Agent in Charge Kevin R. Cornelius of the FBI’s Cincinnati Division made the announcement.

Mohammed Noure Alo, 35, of Columbus, Ohio, appeared before U.S. District Judge Michael H. Watson of the Southern District of Ohio and pleaded guilty to aiding and abetting honest services wire fraud.   He faces a maximum penalty of 20 years in prison, and sentencing will be set at a later date.

Alo is a partner and founding member of a Columbus-based law firm and became a registered lobbyist to the State of Ohio in 2010.   Court records state that from approximately January 2009 through January 2011, Alo admitted he conspired with his close personal friend Amer Ahmad, 38, of Chicago, and others to use Ahmad’s role as deputy treasurer to direct official State of Ohio broker services business to Douglas E. Hampton, 39, a securities broker from Canton, Ohio, in return for payments from Hampton.  Hampton funneled in excess of $123,000 to Alo.   Ahmad and Joseph M. Chiavaroli, 33, of Chicago, concealed additional payments from Hampton by passing them through the accounts of a landscaping business in which Ahmad and Chiavaroli held ownership interests.

As a result of the scheme, Hampton received approximately $3.2 million in commissions for 360 trades on behalf of the Ohio Treasurer’s Office.   Ahmad and his co-conspirators received in excess of $500,000 from Hampton.   Both Hampton and Chiavaroli entered guilty pleas in August 2013.

Ahmad was indicted on Aug. 15, 2013, on charges of conspiracy, honest services wire fraud, money laundering, conspiracy to commit money laundering, federal program bribery, and false statements.   He is scheduled for trial on March 3, 2014.   A criminal indictment is a formal accusation of criminal conduct, not evidence.  A defendant is presumed innocent unless convicted through due process of law.

The case was investigated by the FBI’s Central Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation.  The case is being prosecuted by Assistant U.S. Attorney Douglas W. Squires of the Southern District of Ohio and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section.