Wednesday, January 8, 2014

ANTARES ROCKET ROLLS OUT TO LAUNCH PAD

FROM:  NASA 

An Orbital Sciences Corporation Antares rocket is seen as it is rolled out to Launch Pad-0A at NASA's Wallops Flight Facility, Sunday, Jan. 5, 2014 in advance of a planned Wednesday, Jan. 8th, 1:32 p.m. EST launch, Wallops Island, Va. The Antares will launch a Cygnus spacecraft on a cargo resupply mission to the International Space Station. The Orbital-1 mission is Orbital Sciences' first contracted cargo delivery flight to the space station for NASA. Among the cargo aboard Cygnus set to launch to the space station are science experiments, crew provisions, spare parts and other hardware. Image Credit: NASA-Bill Ingalls

NSF ARTICLE ON PHYSICS OF MOVEMENT FOR DESERT DWELLERS AND ROBOTS

FROM:  NATIONAL SCIENCE FOUNDATION 

Desert dwellers and 'bots reveal physics of movement
The Georgia-Tech based 'CRAB' lab investigates how organisms navigate tricky terrain

Physicist Daniel Goldman and his fellow researchers at the Georgia Institute of Technology shed light on a relatively unexplored subject--how organisms such as sea turtles and lizards move on (or within) sand.

If you've ever struggled to walk with even a modicum of grace on a soft, sandy beach, you may appreciate the question. The answers that Goldman's CRAB lab (Complex Rheology and Biomechanics Laboratory) uncovers--with the help of living animals and biologically inspired robots--deepen our understanding not only of animal survival, evolution and ecology, but also, potentially, the evolution of complex life forms on Earth. The lab's research also assists the design and engineering of robots that must traverse unstable, uneven terrain--those used in search and rescue operations at disaster sites, for example.

Goldman first investigated the properties of sand, which can act like a solid, fluid or even a gas, when he was a doctoral student of physics at University of Texas at Austin. Later, as a postdoc in the University of California-Berkeley lab of biologist Robert J. Full (a leader in the field of nature-inspired robots), he helped investigate locomotion on complex terrain--cockroaches' climbing of vertical surfaces, for example, or spiders running over surfaces with few footholds. A fellow researcher, Wyatt Korrf, was interested in movement on a different kind of complex terrain--granular, shifting media. Goldman became hooked, and the two men started working together.

"Some of the insights and tools we developed then were incredibly helpful in my early and current research, in particular, air fluidized beds as a way to control ground properties," Goldman says.

To a student or lover of critters, Goldman's job might seem like a dream. He has worked with a large variety of desert dwellers and other animals, including geckos, zebra-tailed lizards, sidewinders , ghost crabs, sandfish, wind scorpions, funnel weaver spiders and hatchling loggerhead sea turtles.

In the lab and in the field, he and his colleagues observe these animals as they creep, crawl, walk, run, slither and otherwise transport themselves over or in granular matter. The researchers pin down precise details--the flexible spines on a spider's legs that appear to facilitate movement over a wire mesh, for example, or the way a snake flattens itself when climbing a slope. Then they design robots with the physical elements and movement patterns they want to know more about. With these tests as well as computer simulations and analyses, the team can develop, challenge and refine hypotheses related to physics principles inspired by the animals' movements.

The CRAB lab's cast of robot characters to date includes a robot modeled after baby sea turtles, as well as a sandfish robot.

Flipperbot

Recently, the team studied newly hatched sea turtles hurrying across the beach to the sea--a treacherous journey many of us have seen in nature TV shows.

"The best robots people design and build can't out-compete a hatchling sea turtle whose life consists of swimming all the time and using these appendages on land only for half an hour, running from the nest. If a female makes it to adulthood she will use flippers again, of course, to lay eggs," Goldman said.

For this study, CRAB lab researcher Nicole Mazouchova and research technician Andrei Savu traveled with a mobile lab to Jekyll Island in Georgia. They video-recorded hatchlings' movements on the beach and in a portable test bed. Analyzing the videos back at the lab, they saw that on more packed sand, the baby turtles used their flippers as rigid struts and to pivot. On looser sand, however, the turtles dug in deeper and bent their wrists.

With the help of Flipperbot (you guessed it, a robot with flippers), a poppy-seed-filled test bed, plus theoretical modeling by mechanical engineer Paul Umbanhowar of Northwestern University (who also helped make the 'bot), the team confirmed that the turtles' wrist bending helped them avoid slipping and kept their bodies above the sand, minimizing friction and drag. The model revealed how digging in deeper to more sand provided greater efficacy, keeping the substrate from yielding underfoot.

"We found [the turtle] extremely sensitive to how deep it puts its flippers into the ground and that it did better when it bends its wrists," Goldman said.

They also found the turtles (and Flipperbot) were seriously hindered when trying to navigate sand that had already been disturbed by movement.

Flipperbot--whose movements are surprisingly graceful--is the first robot modeled on sea turtles and tested on granular materials. Its work may someday help engineers make more agile robots as well as advance our understanding of evolution on Earth--especially those first walkers to emerge from the sea.

"There is a lot of speculation about the mechanics which allowed early animals to walk on land," says Goldman. "They had hand-like fins or finlike feet and nobody knows in detail how they would have interacted with flowable substrates (like mud and sand)

"We have an eye on biological questions of existing organisms but also those who could have lived in the past. If you look at gazelles, cheetahs--these animals are incredibly agile over terrestrial ground, and they came from things that had no concept of terrestrial ground."

The Flipperbot findings may be useful in other ways as well, such as informing sea turtle conservation strategies.

Sandfish robot

In various studies, Goldman's team has uncovered patterns that can help the engineering of search and rescue robots designed to move over and into debris piles and wreckage. It confirmed, for example, something scientists long suspected--that the chiseled head of the sandfish--a lizard found in north Africa--helps it dive underground. Robot tests showed that the angular head shape not only reduces drag but also generates greater lift forces.

Using x-ray imaging to reveal how the sandfish moves under the surface, the researchers found that to escape predators the little lizard tucks its limbs close to its body and undulates through the sand--looking like a true swimmer. The sandfish uses a consistent wave pattern from head to tail that pushes its body against the sand and generates forward motion. This wave pattern optimizes speed and energy use.

In a more recent study involving a six-legged robot, the team used 3-D printing technology to make legs of different shapes and physical orientations, and learned that convex robot legs made in the shape of the letter "C" worked out best.

Developing 'terradynamics'

It may be tempting to regard the CRAB lab's unique robots as the end rather than the means of research. But the machines are first a way to develop and confirm hypotheses, Goldman says. The lab, which is funded in part by National Science Foundation's (NSF) Physics of Living Systems and Dynamical Systems programs, is steadily identifying basic principles that will significantly advance understanding of how objects move on or in granular media.

"The idea is to begin to develop a terradynamics--equivalent to aero- and hydrodynamics--which will allow us to predict mobility of devices in these complex environments," Goldman says.

The lab has had recent success in terradynamics, publishing a paper in Science that describes a new approach to predicting how small-legged robots move on sand or other flowing materials. The approach uses the forces (such as drag) applied to independent elements of the robot legs to get a measure of the net force on a moving robot (or animal).

"The lizard swimming in sand gives us a broad understanding behind all animals swimming in true fluids," Goldman says. "Analyzing sandfish turns out sufficiently simple we can use as a baseline to understand other swimmers."

What specific studies are up ahead for the busy Georgia Tech lab? In the near future, the team will test and refine theoretical models as they apply to legs and wheels thrusting into flowing material. They also will be conducting experiments to learn more about wet sand versus dry. And thirdly, they will be looking at the physics involved when teams of organisms, such as fire ants, move and dig within complex terrain.

FLORIDA VEIN CLINIC AGREES TO PAY $400,000 TO RESOLVE FALSE CLAIMS ACT ALLEGATIONS

FROM:  U.S. JUSTICE DEPARTMENT

FOR IMMEDIATE RELEASE
Tuesday, January 7, 2014
United States Government Settles False Claims Act Allegations Against Florida Vein Clinic and Its Owner

A Florida-based physician, Dr. Ravi Sharma, has agreed to pay $400,000 to resolve allegations that he and his clinics violated the False Claims Act by knowingly billing Medicare for vein injections and physician office visits performed by unqualified personnel, the Justice Department announced today.

“Vein injections and other invasive procedures should be performed by appropriately qualified personnel,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery.   “We will not tolerate those who put patients’ health at risk for their personal gain and convenience.”  

The government alleged that, between 2009 and 2010, Sharma owned and operated a clinic in the Tampa area called Premier Vein Centers.   Beginning in 2009, Sharma allegedly sent text messages to his office manager instructing her to perform varicose vein injections on patients when he was not in the office.   The government further alleged that, when Sharma was in the office, he performed unnecessary vein injections and unnecessary ultrasound imaging procedures associated with those vein injections.

Sharma also owned and operated, between 2009 and 2010, a weight loss clinic in the Tampa area called Life’s New Image.   Allegedly, unqualified personnel met with patients of the clinic, but Sharma billed those visits as physician office visits using his own Medicare provider number.   Sharma closed Premier Vein Centers and Life’s New Image in 2010.

“We are pleased to announce this very favorable resolution of our claims against this provider,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III.   “Again, it demonstrates our commitment to civil health care fraud enforcement in our district.”

The allegations covered by the settlement were originally raised in a lawsuit filed by Patti Lovell, the former office manager for Sharma, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims and to receive a share of any recovery.   Lovell will receive $72,000.

As part of the settlement, Sharma entered into a three-year Integrity Agreement with the Office of Inspector General of the Department of Health and Human Services.   The agreement requires Sharma to attend training courses provided by the Centers for Medicare and Medicaid Services and provides for an independent external review of his federal health care program coding and billing procedures.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.

The investigation of this matter reflects a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida and the Department of Health and Human Services Office of Inspector General.

The lawsuit is captioned U.S. ex rel. Lovell v. Ravi Sharma, M.D. and Premier Vein Centers, 12-CV-133 (M.D. Fla.).   The claims resolved by the settlement are allegations only, and there has been no determination of liability.

REMARKS BY SECRETARY OF STATE KERRY AND KOREA FOREIGN MINISTER YUN BYUNG-SE AFTER MEETING

FROM:  STATE DEPARTMENT 
Remarks With Republic of Korea Foreign Minister Yun Byung-se After Their Meeting
Remarks
John Kerry
Secretary of State
Treaty Room
Washington, DC
January 7, 2014

SECRETARY KERRY: Good afternoon, everybody. Thank you for waiting a moment. I apologize for being a little bit late.

This is a homecoming of some kind for Foreign Minister Yun, who completed a degree at SAIS at John Hopkins, so we’re delighted to welcome him back to Washington to his old stomping ground. And it’s a privilege to have him here in a city that he knows very, very well, and to return the favor of his very generous welcome to me when I visited Seoul last spring.

Minister Yun is the first foreign minister that I’ve had the privilege of welcoming here to Washington and the State Department in 2014, and that is clearly from our point of view an indication of the strength of the relationship and the high regard that we hold for our relationship with the Republic of Korea.

As President Obama has said, South Korea is one of our closest allies and greatest friends. Last year, we celebrated a remarkable 60th anniversary of our alliance. And just a few hundred feet from here at the Truman Building is the Korean War Veterans Memorial, where Foreign Minister Yun laid a wreath on Sunday to pay his respects and to honor those who gave their lives from both of our countries in an effort to stand for freedom and democracy. It is a fitting reminder – the memorial and the visit of the foreign minister – of our friendship that was forged through shared sacrifice.

I believe the greatest memorial, though, to the thousands of Koreans and Americans who served and sacrificed together is the deepening solidarity, the deepening strength between our nations, through six decades of partnership and shared prosperity. Our relationship has matured from one that was focused primarily on security to one that is now defined by a very broad and comprehensive partnership. Last year, we participated together in a series of high-level summits and meetings, beginning with President Park’s visit to Washington last spring and continuing through Vice President’s successful visit – Vice President Biden’s successful visit to Seoul last month.

So with this visit we build upon that trust and we build upon the legacy that we celebrated last year, and that is the closeness of our relationship founded in shared values of democracy, human rights, rule of law, and all of which are strengthened through people-to-people ties. Our comprehensive political partnership with the Republic of Korea is a significant example of our overall commitment, the commitment of the United States, to engagement in the Asia Pacific. Indeed, our alliance is the linchpin of security and stability in Northeast Asia.

The United States and the Republic of Korea stand very firmly united, without an inch of daylight between us, not a sliver of daylight, on the subject of opposition to North Korea’s destabilizing nuclear and ballistic missile programs and proliferation activities. And the international community stands with us.

The United States supports President Park’s firm, principled approach to North Korea. I want to confirm that Foreign Minister Yun and I spent the lion’s share of our time – though we touched on a lot of topics, we were deeply focused on the challenge of North Korea, particularly with the events that have taken place in recent weeks in North Korea.

Together, we call upon Pyongyang to start down the path of fulfilling its international obligation and commitments. And most importantly, we call on the Republic – on North Korea to denuclearize. We will not accept North Korea as a nuclear state nor as a nuclear-armed state, and nor will the international community abide by that.

I assured Foreign Minister Yun that we remain fully committed to the defense of the Republic of Korea, including through extended deterrents and putting the full range of U.S. military capabilities in place. We will continue to modernize our capabilities so that we are prepared to face any threat.

We are also working hard to reach agreement on burden sharing and the transfer of wartime operational control so that we can continue the great advances that we have achieved to date.

Today, the people of the United States really do take enormous pride in South Korea’s incredible rise. It’s an example of how we can move from aid to trade. Not so many years ago, the United States of America was giving aid to South Korea for development. Today, South Korea is giving aid to other countries and taking its place among the community of nations in exercising global responsibilities. It’s an example of what we can achieve when the United States does help another nation to define its future and when we create jobs and opportunity here at home, even as we do that.

Our trade relationship with the Republic of Korea is also an example of President Obama’s strategic rebalance in Asia and the benefits of the President’s determination to promote export-led growth. Because of the U.S.-Korea Free Trade Agreement, which will be two years old in a few months, our trade has grown to $130 billion a year. That is an enormous sum. And it is important that we continue to work together so that all of the obligations of our treaty are met.

We also welcome South Korean’s interest in the Trans-Pacific Trade Partnership, which can be the foundation for high-standard trade and shared prosperity throughout the Pacific, and it would create a trading agreement that would include 40 percent of global GDP. That will have a profound impact on the trading practices of the rest of the globe.

Today, the Republic of Korea is not only one of the most dynamic economies in the world; it is also a leading contributor of humanitarian assistance. That commitment was clear in the Republic of Korea’s contributions in the wake of Typhoon Haiyan in the Philippines, where our two nations stand shoulder-to-shoulder, providing urgent relief. And we’re very proud of the efforts that we made together.

I just recently visited the Philippines. I went to Tacloban. I saw exactly, personally how unbelievably destructive that typhoon was. But most importantly, I saw the remarkable efforts of nations joined together in order to help another nation in a time of distress. And no two nations worked more closely together in that effort than we have.

Of course, the Republic of Korea and the United States have also stood side-by-side in Iraq, in Afghanistan. And there is no greater sign of the United States commitment to regional security than the 28,500 U.S. soldiers who are stationed in South Korea.

So the relationship between our two nations has always shown its ability to be able to adapt to face new challenges. And it is clear that the foundations of this relationship are built to endure. Our commitment to one another remains rock solid.

And so I want to thank Foreign Minister Yun for his friendship, for his continued efforts on behalf of both of our peoples, as together we work to make the world more secure and to deal with very complicated and difficult security challenges and humanitarian challenges across the globe. We hope that this year will mark a year of greater prosperity and opportunity and stability and peacefulness for both of our nations and for all of our neighbors. And this marks the first year in the next 60 years of our great alliance. Thank you for being here with us. Appreciate it.

FOREIGN MINISTER YUN: Thank you, Secretary Kerry, for your kind words with regards to me. I have already expressed the meetings with Secretary Kerry so productive and enjoyable without fail. Nevertheless, I believe that we have outdone ourselves today, as our meeting has proved to be all the more timely and significant in a number of ways.

As you recall, President Park and President Obama held a successful summit in May last year. Secretary Kerry and I also enjoyed plentiful discussions throughout the year, sometimes face-to-face, and sometimes on the phone. As a result, our two countries have been able to make notable achievements in a wide range of areas, encompassing bilateral, regional, and global issues. As we embark on a new year’s journey, it has to be said that the latest developments on the Korean Peninsula and in Northeast Asia warrant our special attention and close coordination.

First of all, Secretary Kerry and I reviewed the serious recent developments in North Korea and their potential implications on the Korean Peninsula and beyond. We agreed to enhance policy coordination to tackle North Korean issues, which include maintaining stability on the Korean Peninsula and seeking progress in the resolution of the North Korea nuclear problem. In this light, we decided to intensify our consultations to assess the North Korean situation and explore our policy options. These efforts will ensure that our two countries remain very much on the same page in dealing with uncertain North Korean situation. In the event of any North Korean provocation, the – South Korea and the United States will firmly respond based on our robust combined defense posture. In addition to our actions, we’ll ensure that the UN Security Council will take prompt measures which it deems necessary.

We share the view that it is important to keep China and other related parties closely engaged to achieve substantial progress in the denuclearization of North Korea. In this regard, we agreed to place this issue at the top of our agenda so that we can better cope with the increasing volatility of the nuclear issue arising from the evolving political situation in North Korea.

Going beyond the nuclear issues, we agreed to strengthen our strategic cooperation on building sustainable peace that will pave the way for the unification of the Korean Peninsula. We also redouble our efforts together with the international community, including the United States, to induce North Korea to embrace the path of peace and cooperation through the trust-building process on the Korean Peninsula.

Secretary Kerry and I also recognized the growing uncertainty pervading Northeast Asia in recent times. In particular, I pointed out that historical issues stand in the way of reconciliation and cooperation in this region, and I emphasized the need for sincere actions. The Secretary and I agreed to strengthen our efforts to alleviate tension and promote peace and cooperation in Northeast Asia.

On the U.S. policy of rebalancing to Asia, I welcome this reaffirmation as a positive contribution to the stability and prosperity in the region. In this regard, we underscored that R.O.K.-U.S. alliance will continue to serve as a linchpin of regional peace and stability. Secretary Kerry and I share the view that the R.O.K.-U.S. alliance could not be in a better shape. Building on the achievements we made over the last year, we’ll explore concrete ways to further upgrade our cooperation based on the shared vision of the R.O.K.-U.S. alliance.

We are pleased to note that the consultations regarding the review of transition of wartime operational control are on track. The Secretary and I also agreed to ensure that ongoing negotiations concerning Special Measures Agreement and civil nuclear agreement result in win-win solutions befitting the spirit of our alliance and mutual trust.

We noted that our bilateral trade has registered sharp growth since the R.O.K.-U.S. FTA entered into force two years ago amid global economic downturn and reaffirmed our commitment to further deepen our economic cooperation. Furthermore, we recognized that South Korea’s participation in the TPP will contribute to the economic integration of the Asia Pacific region and agree to expedite bilateral consultations on South Korea’s participation in the TPP negotiation.

Today, I was very pleased to renew my personal friendship with Secretary Kerry. We continue to work together as we embark on the journey into the next 60 years of R.O.K.-U.S. comprehensive strategic alliance. Thank you very much.

SECRETARY KERRY: Byung-se, thank you very much, appreciate it.

FOREIGN MINISTER YUN: Thank you, John.

SECRETARY KERRY: As I was listening to Byung-se talk a moment ago, we were celebrating 60 years of an alliance, and I suddenly thought, 45 years ago, as I heard him refer to R.O.K.'s, I was thinking that in Vietnam when I was a young officer, we worked with R.O.K. troops. I worked with them very directly. So all of a sudden, I’m saying, God, 60-year alliance, but I was there 45 years ago. (Laughter.) That’s a little scary.

Anyway, I thank you for those many, many years of friendship, and your troops were very, very tough and capable people. Thank you, sir.

NSF SAYS SCIENTISTS WILL STUDY "GLOBAL CHIMNEY"

FROM:  NATIONAL SCIENCE FOUNDATION 
Scientists to study Pacific Ocean's "global chimney"

Remote waters affect billions of people, shape climate and air chemistry worldwide.

Although few people live in the Western tropical Pacific Ocean region, the remote waters there affect billions of people by shaping climate and air chemistry worldwide.

Next week, scientists will head to the region to better understand its influence on the atmosphere--including how that influence may change in coming decades if storms over the Pacific become more powerful with rising global temperatures.

With the warmest ocean waters on Earth, the Western tropical Pacific fuels a sort of chimney whose output has global reach.

The region feeds heat and moisture into huge clusters of thunderstorms that loft gases and particles into the stratosphere, where they spread out over the entire planet and influence climate.

"To figure out the future of the air above our heads, we need to go to the western Pacific," said Laura Pan, a scientist at the National Center for Atmospheric Research (NCAR) and one of the principal investigators on the field project.

"This region has been called the holy grail for understanding global air transport, because so much surface air gets lifted by the storms and then spreads globally."

The field project is called CONTRAST (Convective Transport of Active Species in the Tropics). It is funded by the National Science Foundation (NSF), which sponsors NCAR.

More than 40 scientists are taking part from NCAR, the University of Maryland, the University of Miami, other universities across the country and NASA.

CONTRAST, which is based in Guam, is being coordinated with two other field projects in order to give researchers a detailed view of the air masses over the Pacific with a vertical range spanning tens of thousands of feet.

One of these projects, NASA's Airborne Tropical Tropopause Experiment (ATTREX), will use a Global Hawk robotic aerial vehicle to study upper-atmospheric water vapor, which influences global climate.

The other, CAST (Coordinated Airborne Studies in the Tropics), is funded by Britain's Natural Environment Research Council Facility and will deploy a BAe146 research aircraft that will focus on air near the ocean surface.

Together, the sensor-laden research flights will provide a comprehensive view of the atmosphere from the ocean surface, where gases produced by marine organisms enter the air, to the stratosphere, more than 60,000 feet above.

"It's a huge region, and that means we have to use multiple aircraft," said University of Maryland's Ross Salawitch, a CONTRAST principal investigator.

"We will attempt to stage these three airplanes in harmony to measure the atmospheric composition over the western Pacific when both ocean biology and atmospheric storms are raging."

As trade winds blow across the tropical Pacific, they push warm water to the west, where it piles up in and near the CONTRAST study region.

The waters around Guam have the world's highest sea surface temperatures in open oceans. They provide heat and moisture to feed clusters of thunderstorms that lift air through the troposphere (the lowest level of the atmosphere) and the tropopause (a cold, shallow region atop the troposphere) and then up into the stratosphere.

Once in the stratosphere--where the air tends to flow horizontally--the gases and particles spread out around the world and linger for years or even decades.

Some of the gases, such as ozone and water vapor, affect the amount of energy from the sun that reaches Earth's surface.

"Research results from CONTRAST will be extremely important for understanding the ozone-depleting effects of certain chemicals, such as short-lived halogen species like those containing chlorine and bromine, in the tropical upper troposphere and lower stratosphere," said Sylvia Edgerton, program director in NSF's Division of Atmospheric and Geospace Sciences.

"It appears that high particle concentrations in the tropical tropopause can increase the ozone-depleting potential of short-lived halogens in the region," said Edgerton.

The amount of these gases in the stratosphere is important for the planet's climate.

Chemicals such as bromine compounds have indirect effects by destroying ozone or otherwise altering the chemistry of the stratosphere. And the gases produced by ocean organisms create a chemical reaction that can be detected in the stratosphere.

"There are so few measurements of atmospheric composition in this important region of the atmosphere that we expect to be able to significantly advance our understanding with the data we will be able to collect during CONTRAST," said Elliot Atlas of the University of Miami, a CONTRAST principal investigator.

As atmospheric patterns evolve and sea surface temperatures warm further due to climate change, the storm clusters over the Pacific are likely to influence climate in ways that are now challenging to anticipate, NCAR's Pan said.

"Understanding the impact of these storms will help us gain ground truth for improving the chemistry-climate models we use to project future climate," she said.

The CONTRAST team will deploy the NSF/NCAR HIAPER aircraft, a Gulfstream V jet modified for advanced research that will fly at altitudes between about 25,000 and 50,000 feet.

Using spectrometers and other instruments on board, the researchers will measure various chemicals and take air samples across a wide region, both in storm clouds and far away from them.

The measurements will be analyzed in conjunction with data from the ATTREX Global Hawk (covering altitudes up to 65,000 feet) and CAST BAe146 (with observations from the ocean surface to about 20,000 feet).

The researchers are planning as many as 16 flights, targeting both towering storms that loft fresh air into the stratosphere as well as collapsed storms to examine the composition of the air that remains lower down, in the troposphere.

State-of-the-art models of atmospheric chemistry will help guide the research flights in the field, as well as aid in subsequent analysis of the observations.

-NSF-

EXPORT-IMPORT BANK SAYS U.S. EXPORTS TOTALED $2.3 TRILLION OVER LAST 12 MONTHS

FROM:  EXPORT-IMPORT BANK 
U.S. Exports Reach a Record $195 Billion in November

Ex-Im Bank Continues to Support U.S. Jobs by Financing U.S. Exports

Washington, D.C. – The United States exported a record $194.9 billion in goods and services in November 2013, according to data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.

“Once again, American entrepreneurs are proving why exports are so critical to our economic growth.” said Export-Import Bank Chairman and President Fred P. Hochberg. “Today’s numbers showcase the importance of exports to the U.S. economy and how Ex-Im Bank plays a critical role in supporting American businesses overseas. We provide critical financing to increase sales and create jobs.”

November’s figure is considerably larger than the previous high recorded in October, which was revised upward this month to $193.1 billion.

Exports of goods and services over the last 12 months totaled $2.3 trillion, which is 43.7 percent above the level of exports in 2009. Over the last twelve months, exports have been growing at an annualized rate of 9.7 percent when compared to 2009.

During the same time period among the major export markets (i.e., markets with at least $6 billion in annual imports of U.S. goods), the countries with the largest annualized increase in U.S. goods purchases, when compared to 2009, were Panama (27.3 percent), Russia (21.3 percent), Hong Kong (20.1 percent), United Arab Emirates (20.0 percent), Peru (19.9 percent), Chile (18.7 percent), Colombia (18.6 percent), Argentina (16.7 percent), Ecuador (16.6 percent), and Indonesia (15.4 percent).

Tuesday, January 7, 2014

EXPERIMENTAL STREAM FACILITIES-DESIGN AND RESEARCH

COMPANY TO PAY $30 MILLION PENALTY TO RESOLVE CHARGES OF FRAUD AGAINST EXECUTIVES

FROM: JUSTICE DEPARTMENT 
Tuesday, January 7, 2014
Medical Device Manufacturer Charged With Major Securities Fraud Scheme

ArthroCare Corporation, a medical device manufacturer based in Austin, Texas, and that trades on the NASDAQ stock exchange, has agreed to pay a $30 million monetary penalty to resolve charges that senior executives at the company engaged in a securities fraud scheme that resulted in more than $400 million in shareholder losses, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Robert Pitman of the Western District of Texas.

John Raffle and David Applegate, both former senior vice presidents of ArthroCare, previously pleaded guilty to conspiracy to commit securities and wire fraud in connection with the fraud scheme.   ArthroCare’s former chief executive officer, Michael Baker, and chief financial officer, Michael Gluk, are scheduled to stand trial on related charges on May 5, 2014.   Defendants are presumed innocent unless and until proven guilty at trial.

As part of the agreed-upon resolution, the department today filed a criminal information in the Western District of Texas charging ArthroCare with one count of conspiracy to commit securities fraud and wire fraud.   In addition to the monetary penalty, ArthroCare also agreed to cooperate with the department in its continuing investigation and prosecution of individuals responsible for the scheme and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect violations of the federal securities laws and federal laws relating to the company’s relationships and transactions with health care providers.   ArthroCare had previously entered into a multi-million dollar settlement agreement with shareholder victims.

In the deferred prosecution agreement, ArthroCare admitted that senior executives of the company inflated ArthroCare’s revenue by tens of millions of dollars; concealed the nature and financial significance of ArthroCare’s relationship with its largest distributor, DiscoCare Inc., and other distributors; and used a series of sham transactions to manipulate ArthroCare’s revenue and earnings as reported to investors.   ArthroCare admitted that its executives determined the type and amount of product to be shipped to distributors, notably DiscoCare, based on ArthroCare’s need to meet sales forecasts, rather than the distributors’ actual orders.

ArthroCare further admitted that these executives and others then caused ArthroCare to “park” millions of dollars worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter so the company could report these shipments as sales in its quarterly and annual filings and so the company would appear to have met or exceeded internal and external earnings forecasts.

According to the Information, between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock.   On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter 2006 through the first quarter 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share.  The drop in ArthroCare’s share price caused an immediate loss in shareholder value of more than $400 million.

This case was investigated by the FBI’s Austin Field Office.  The case is being prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorneys Henry P. Van Dyck and William Chang of the Criminal Division’s Fraud Section.   Significant assistance was provided by the SEC’s Fort Worth, Texas, Office.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR DECEMBER 7, 2014

FROM:  DEFENSE DEPARTMENT 
NAVY

Vigor Shipyards Inc., Seattle, Wash., is being awarded a not-to-exceed $33,077,000 undefinitized contract action to previously awarded contract (N00024-11-C-4401) for repair and alteration of the USS Momsen (DDG 82).  The USS Momsen will be undergoing a docking selected restricted availability which is the opportunity in the ship’s life cycle to primarily conduct repair and alteration to systems and hull not available when the ship is waterborne.  Work will be performed in Seattle, Wash., and is expected to be completed by October 2014.  Fiscal 2014 operations and maintenance, Navy funding in the amount of $22,298,229 will be obligated at time of award and will not expire at the end of the current fiscal year.  The Puget Sound Naval Shipyard and Intermediate Maintenance Facility, Bremerton, Wash., is the contracting activity.

Correction:  The contract announced Dec. 27, 2013 to  Lockheed Martin Corp., Mission Systems and Training, Manassas, Va., for $84,650,745 -- contract number should have read N00024-11-C-6294 not N00024-13-C-6272.

AIR FORCE

Aerospace Testing Alliance, Tullahoma, Tenn., has been awarded a $22,950,459 cost-plus-award-fee modification (P00321) on an existing contract (F40600-03-C-0001) to continue operations, maintenance, information management and support of Arnold Engineering Development Complex.  Work will be performed at Arnold Air Force Base, Tenn., and is expected to be completed by Sept. 30, 2014.  This modification does not obligate funds at time of award.  Air Force Test Center/PZZ, Arnold Air Force Base, Tenn., is the contracting activity.

ARMY

Law Company Inc., Wichita, Kan., was awarded a $20,078,900 firm-fixed-price contract to construct an unmanned aerial vehicle hanger.  Fiscal 2014 military construction funds in the amount of $20,078,900 were obligated at the time of the award.  Estimated completion date is July 7, 2015.  Bids were solicited via the Internet with seven received.  Work will be performed at Fort Riley, Kan.  Army Corps of Engineers, Kansas City, Mo., is the contracting activity (W912DQ-14-C-4003).

Bell Helicopter Textron, Inc, Hurst, Texas, was awarded an $18,556,810 modification (P00010) to contract W58RGZ-12-C-0030 to procure six additional months of contractor logistics support for Bell 407, Huey, Jet Ranger, and OH-58A&C helicopters.  Fiscal 2014 funds in the amount of $18,556,810 were obligated at the time of the award.  Estimated completion date is Aug. 8, 2014.  Work will be performed in Al Taji, Iraq and Piney Flats, Tenn.  Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.

Tetra Tech/Pond Joint Venture, Louisville, Ky., was awarded a $9,500,000 firm-fixed-price contract for architectural and engineering services for Army, Air Force, and other military and civil works primarily within the Great Lakes and Ohio River Division boundaries.  Funding and work performance location will be determined with each order.  Estimated completion date is Jan. 8, 2018.  One bid was solicited with one received.  Army Corps of Engineers, Louisville, Ky., is the contracting activity (W912QR-14-D-0004).

President Obama Speaks on Extending Emergency Unemployment Insurance

President Obama Speaks on Extending Emergency Unemployment Insurance

EDUCATION DEPARTMENT ANNOUNCES $1.9 MILLION GRANT TO NEWTOWN, PA

FROM:  DEPARTMENT OF EDUCATION 

U.S. Department of Education Awards Additional $1.9 Million Grant to Newtown, Connecticut, to Further Support Recovery Efforts

JANUARY 6, 2014

The U.S. Department of Education today announced it is awarding an additional $1.9 million to Newtown Public School District to help with ongoing recovery efforts following the tragic shootings at Sandy Hook Elementary School in December 2012. The grant is being made through the Department's Project School Emergency Response to Violence (SERV) program, which awards Immediate Services and Extended Services grants to school districts, colleges and universities that have experienced a significant traumatic event and need resources to respond, recover, and re-establish safe environments for students. Newtown received its first Project SERV award—a $1.3 million grant—in May 2013. The $1.9 million grant will continue to support the school district as it strives to restore a safe and healthy environment for teaching and learning in its schools.

"We will do whatever we can to continue assisting and supporting the healing and recovery of Newtown," U.S. Secretary of Education Arne Duncan said. "This additional grant will help students, teachers, families, school district and community move forward after such an unimaginable tragedy."

Newtown's first $1.3 million Project SERV grant financially supported both the actions taken by the district immediately following the shootings, as well as the district's comprehensive school-based behavioral and academic recovery program. Those services aimed to meet the needs of students, school staff, parents and family members affected by the tragedy and included support groups for parents, siblings, students and teachers; creative expression and wellness activities; counseling; training for educators and school personnel; and additional support staff.

The $1.9 million grant will go toward additional grief support services for siblings and those who lost their peers; classroom-based psycho-education and skill-building strategies; skill-based interventions for affected students identified as needing assistance for posttraumatic stress reactions, traumatic grief, separation anxiety and other behavioral and functional problems; tutoring for students demonstrating academic decline since the incident; additional security; additional nursing services; and more.

The Department's Office of Safe and Healthy Students administers the Project SERV grant program. It has awarded more than $34 million through 113 grants, including Newtown's additional grant, since the program began in 2001.

SECRETARY HAGEL HOSTS MEETING WITH KOREAN FOREIGN MINISTER BYUNG-SE

FROM:  DEFENSE DEPARTMENT 
Hagel Hosts South Korean Foreign Minister for Pentagon Meeting
American Forces Press Service

WASHINGTON, Jan. 7, 2014 – In a meeting with South Korea’s top diplomat at the Pentagon yesterday, Defense Secretary Chuck Hagel reaffirmed what Pentagon Press Secretary Navy Rear Adm. John Kirby called “the crucial role of the U.S.-South Korean alliance, which serves as a linchpin for peace and stability in the Asia-Pacific region.”

In a statement summarizing Hagel’s meeting with Foreign Minister Yun Byung-se, Kirby said Hagel and Yun reaffirmed that both sides must continue to make progress to develop and acquire critical military capabilities necessary to maintain and strengthen the combined U.S.-South Korean defense posture.
“The two discussed the importance of maintaining a robust combined defense of the Korean Peninsula as a strong deterrent against provocations from North Korea,” he added. Hagel emphasized the importance of the U.S.-South Korean alliance and confirmed the solid U.S. commitment to the defense of the South Korea, Kirby said.

Today, Defense Department officials announced the rotational deployment of the 1st Cavalry Division’s 1st Battalion, 12th Cavalry Regiment, from Fort Hood, Texas, to Camps Hovey and Stanley in South Korea.

This combined arms battalion, with about 800 soldiers and its own wheeled and tracked vehicles, will deploy Feb. 1 to conduct operations in support of U.S. Forces Korea and the U.S. 8th Army, officials said. “This action supports the United States' defense commitment to the Republic of Korea as specified by the mutual defense treaty and presidential agreements,” they added in a statement announcing the deployment.

The battalion will provide a trained and combat-ready force that will deploy with its equipment to South Korea, and the equipment will remain there for use by follow-on rotations, they added. The soldiers will return to Fort Hood upon completion of their nine-month rotation.

SPECIAL FORCES HELP CLEAR ENEMY POSITION IN AFGHANISTAN

FROM:  DEFENSE DEPARTMENT 


U.S. Special Forces soldiers fire a mortar round toward an identified enemy fighting position while helping Afghan counterparts clear Bahlozi village in the Maiwand district of Afghanistan's Kandahar province, Jan. 1, 2014. Forces conducted the clearance mission to disrupt insurgents who hide in the village. The U.S. Special Forces soldiers are assigned to Combined Joint Special Operations Task Force-Afghanistan. U.S. Army photo by Staff Sgt. Bertha A. Flores


An Afghan commando fires a rocket-propelled grenade from the roof of a compound toward an identified enemy fighting position while clearing Bahlozi village with the assistance of U.S. Special Forces soldiers in the Maiwand district of Afghanistan's Kandahar province, Jan. 1, 2014. U.S. Army photo by Staff Sgt. Bertha A. Flores

DEFENSE SECRETARY HAGEL PRAISES ESTONIA'S SUPPORT IN AFGHANISTAN

FROM:  U.S. DEFENSE DEPARTMENT 
Hagel Praises Estonia’s Commitment in Afghanistan
American Forces Press Service

WASHINGTON, Jan. 6, 2014 – Defense Secretary Chuck Hagel praised Estonia’s commitment in Afghanistan in a Pentagon meeting today with Estonian Defense Minister Urmas Reinsalu.

"Secretary Hagel praised Minister Reinsalu for Estonia's steadfast commitment to Afghanistan, to include its contributions to security in Helmand Province and its commitment to supporting stability in Afghanistan post-2014,” Assistant Pentagon Press Secretary Carl Woog said in a statement summarizing the meeting.
The two leaders discussed their shared interest in working together with other Baltic states to support regional cooperation, interoperability with allies, cyber defense and long-term defense modernization,” Woog said. “The secretary also commended Estonia for its demonstrated commitment to maintaining significant levels of efficient defense spending,” he added.

Hagel also reaffirmed the U.S. commitment to the alliance, and pledged to continue to participate in NATO exercises, Woog said, “noting the importance of leveraging the interoperability we've achieved over the last 20 years."

CHARGES SETTLED AGAINST THREE COMPANIES REGARDING PLASTIC BIODEGRADABILITY CLAIMS

FROM:  FEDERAL TRADE COMMISSION 

FTC Approves Final Orders Settling Charges that Three Companies Made Misleading and Unsubstantiated Biodegradability Claims for Their Plastic Products

Following a public comment period, the Federal Trade Commission has approved three final orders settling charges that Clear Choice Housewares, Inc.; Carnie Cap, Inc.; and MacNeill Engineering Company, doing business as CHAMP, violated the FTC Act by misrepresenting that plastic products they sell that are treated with additives are: 1) biodegradable, 2) biodegradable in a landfill, 3) biodegradable in a certain timeframe, or 4) scientifically shown to be biodegradable in a landfill, or that various scientific tests prove their biodegradability claims. The FTC also alleged that the companies lacked a reliable scientific basis to back up any of these claims.

Under the FTC’s orders, first announced in October, the companies are prohibited from making biodegradability claims unless the representations are true and supported by competent and reliable scientific evidence. The companies must have evidence that the entire plastic product will completely decompose into elements found in nature within one year after customary disposal (defined as disposal in a landfill, incinerator, or recycling facility) before making any unqualified biodegradable claim.

In order to make qualified claims, the companies must state the time required for complete biodegradation in a landfill or the time to degrade in a disposal environment near where consumers who buy the product live. Alternatively, the companies may state the rate and extent of degradation in a landfill or other disposal facility accompanied by an additional disclosure that the stated rate and extent do not mean that the product will continue to decompose or decompose completely.

TEXAS-BASED COMPANIES AGREE TO SETTLE CAA VIOLATIONS RELATED TO ILLEGAL IMPORT OF VEHICLES

FROM:   JUSTICE DEPARTMENT 
Monday, January 6, 2014
Dallas-Based Companies Agree to Pay Civil Penalty to Settle Clean Air Act Violations Stemming from Illegal Import of Vehicles

A Dallas-based group of companies and their owner must either stop importing vehicles or follow a comprehensive compliance plan to settle Clean Air Act (CAA) violations stemming from the alleged illegal import of over 24,167 highway motorcycles and recreational vehicles into the United States without proper documentation, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced.  The four parties are also required to pay a $120,000 civil penalty.

“Importers of foreign made vehicles and engines must comply with the same Clean Air Act requirements that apply to those selling domestic products,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.  “We will continue to vigorously enforce the law to ensure that imported vehicles and engines comply with U.S. laws so that American consumers get environmentally sound products and violators do not gain an unfair economic advantage.”

“Vehicles are one of the largest sources of pollution that significantly affect public health,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Holding importers accountable for meeting U.S. emissions standards is critical to protecting the air we breathe, and to protecting companies that play by the rules.”

Savoia, BMX Imports and BMX Trading, and their owner, Terry Zimmer, allegedly imported the vehicles from several foreign manufacturers into the United States through the Port of Long Beach, Calif.   The vehicles were then sold through the Internet and from a retail location in Dallas, Texas.

Today’s settlement requires that the companies either certify that they are no longer engaging in CAA-regulated activities or follow a comprehensive plan over the next five years that would include regular vehicle inspections, emissions testing, and other measures to ensure compliance at various stages of purchasing, importing, and selling vehicles.  In addition, the companies are required to export or destroy 115 of their current vehicles that have catalytic converters or carburetors that do not adhere to the certificate of conformity that they submitted to EPA.  The purpose of the certificate of conformity, required by the CAA, is to demonstrate that vehicles or engines meet applicable federal emission standards.

EPA discovered the alleged violations through inspections at Long Beach and other U.S. ports of entry, and through information provided by the company.   EPA’s investigation showed that approximately 11,000 of the imported vehicles were not covered by an EPA certificate of conformity, which means that EPA is unable to confirm that the emissions from these vehicles meet federal standards.  Other violations included approximately 23,000 vehicles sold without the required emissions warranty and approximately 500 vehicles that did not have proper emission control labels.

The CAA requires that all vehicles have certification, warranty and labeling prior to being imported or sold in the United States to demonstrate that they meet federal emission standards.  Engines operating without proper emissions controls can emit excess carbon monoxide, hydrocarbons and nitrogen oxides which can cause respiratory illnesses, aggravate asthma and contribute to the formation of ground level ozone or smog.

The consent decree, lodged today in the United States District Court for the Northern District of Texas, is subject to a 30-day public comment period and court approval.

RBS SECURITIES JAPAN LTD SENTENCED FOR MANIPULATION OF YEN LIBOR

FROM:  JUSTICE DEPARTMENT 

WASHINGTON — RBS Securities Japan Limited, a wholly owned subsidiary of The Royal Bank of Scotland plc (RBS) that engages in investment banking operations with its principal place of business in Tokyo, Japan, was sentenced today for its role in manipulating the Japanese Yen London Interbank Offered Rate (LIBOR), a leading benchmark used in financial products and transactions around the world.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.

RBS Securities Japan was sentenced by U.S. District Judge Michael P. Shea in the District of Connecticut.  RBS Securities Japan pleaded guilty on April 12, 2013, to one count of wire fraud for its role in manipulating Yen LIBOR benchmark interest rates.  RBS Securities Japan signed a plea agreement with the government in which it admitted its criminal conduct and agreed to pay a $50 million fine, which the court accepted in imposing sentence.  In addition, RBS plc, the Edinburgh, Scotland-based parent company of RBS Securities Japan, entered into a deferred prosecution agreement (DPA) with the government requiring RBS plc to pay an additional $100 million penalty, to admit and accept responsibility for its misconduct as set forth in an extensive statement of facts and to continue cooperating with the Justice Department in its ongoing investigation.  The DPA reflects RBS plc’s cooperation in disclosing LIBOR misconduct within the financial institution and recognizes the significant remedial measures undertaken by new management to enhance internal controls.

Together with approximately $462 million in regulatory penalties and disgorgement – $325 million as a result of a Commodity Futures Trading Commission (CFTC) action and approximately $137 million as a result of a U.K. Financial Conduct Authority (FCA) action – the Justice Department’s criminal penalties bring the total amount of the resolution with RBS and RBS Securities Japan to approximately $612 million.

“Today’s sentencing of RBS is an important reminder of the significant consequences facing banks that deliberately manipulate financial benchmark rates, and it represents one of the numerous enforcement actions taken by the Justice Department in our ongoing LIBOR investigation” said Acting Assistant Attorney General Raman. “As a result of the department’s investigation, we have charged five individuals and secured admissions of criminal wrongdoing by four major financial institutions.  Our enforcement actions have had a lasting impact on the global banking system, and we intend to continue to vigorously investigate and prosecute the manipulation of this cornerstone benchmark rate.”

“By colluding to manipulate the Yen LIBOR benchmark interest rate, RBS Securities Japan reaped higher profits for itself at the expense of unknowing counterparties, and in the process undermined the integrity of a major benchmark rate used in financial transactions throughout the world,” said Deputy Assistant Attorney General Snyder.  “Today’s sentence, in conjunction with the department’s agreement with parent company RBS, demonstrates the Antitrust Division’s commitment to prosecuting these types of far-reaching and sophisticated conspiracies.”

“The manipulation of LIBOR impacts financial products the world over, and erodes the integrity of the financial markets,” said Assistant Director in Charge Parlave.  “Without a level playing field in our financial marketplace, banks and investors do not have a threshold to which they can measure their hard work.  I commend the Special Agents, forensic accountants and analysts, as well as the prosecutors, for the significant time and resources they committed to investigating this case.”

According to court documents, LIBOR is an average interest rate, calculated based upon submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks.  LIBOR serves as the primary benchmark for short-term interest rates globally, and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products.  The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.

LIBOR is published by the British Bankers’ Association (BBA), a trade association based in London.  At the time relevant to the conduct in the criminal information, LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year.  The LIBOR for a given currency at a specific maturity is the result of a calculation based upon submissions from a panel of banks for that currency (the Contributor Panel) selected by the BBA.

According to the plea agreement, at various times from at least 2006 through 2010, certain RBS Securities Japan Yen derivatives traders engaged in efforts to move LIBOR in a direction favorable to their trading positions, defrauding RBS counterparties who were unaware of the manipulation affecting financial products referencing Yen LIBOR.  The scheme included efforts to manipulate more than one hundred Yen LIBOR submissions in a manner favorable to RBS Securities Japan’s trading positions.  Certain RBS Securities Japan Yen derivatives traders, including a manager, engaged in this conduct in order to benefit their trading positions and thereby increase their profits and decrease their losses.

The prosecution of RBS Securities Japan is being handled by Deputy Chief Patrick Stokes and Trial Attorney Gary Winters of the Criminal Division’s Fraud Section, and New York Office Assistant Chief Elizabeth Prewitt and Trial Attorneys Eric Schleef and Richard Powers of the Antitrust Division.  Deputy Chiefs Daniel Braun and William Stellmach and Trial Attorney Alex Berlin of the Criminal Division’s Fraud Section, Trial Attorneys Daniel Tracer and Kristina Srica of the Antitrust Division, Jeremy Verlinda of the Antitrust Division’s Economic Analysis Group, Assistant U.S. Attorneys Eric Glover and Liam Brennan of the U.S. Attorney’s Office for the District of Connecticut, and the Criminal Division’s Office of International Affairs have also provided valuable assistance in this matter.  The investigation is being conducted by special agents, forensic accountants and intelligence analysts of the FBI’s Washington Field Office.

The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad.  The Justice Department acknowledges and expresses its deep appreciation for this assistance.  In particular, the CFTC’s Division of Enforcement referred this matter to the department and, along with the FCA, has played a major role in the investigation.  Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.  In particular, the Securities and Exchange Commission has played a significant role in the LIBOR investigation, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation.

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.

PRESIDENT OBAMA'S NOMINATIONS SENT TO THE SENATE

FROM:  THE WHITE HOUSE 

January 6, 2014
Presidential Nominations Sent to the Senate

NOMINATIONS SENT TO THE SENATE:

Henry J. Aaron, of the District of Columbia, to be a Member of the Social Security Advisory Board for a term expiring September 30, 2020.  (Reappointment)

Henry J. Aaron, of the District of Columbia, to be a Member of the Social Security Advisory Board for a term expiring September 30, 2014, vice Jeffrey Robert Brown, term expired.

Debo P. Adegbile, of New York, to be an Assistant Attorney General, vice Thomas E. Perez, resigned.

Cynthia H. Akuetteh, of the District of Columbia, a Career Member of the Senior Foreign Service, Class of Minister-Counselor, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Gabonese Republic, and to serve concurrently and without additional compensation as Ambassador Extraordinary and Plenipotentiary of the United States of America to the Democratic Republic of Sao Tome and Principe.

Larry Edward André, Jr., of Virginia, a Career Member of the Senior Foreign Service, Class of Counselor, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Islamic Republic of Mauritania.

Steven Joel Anthony, of Virginia, to be a Member of the Railroad Retirement Board for a term expiring August 28, 2018, vice Jerome F. Kever, term expired.

David J. Arroyo, of New York, to be a Member of the Board of Directors of the Corporation for Public Broadcasting for a term expiring January 31, 2016, vice Elizabeth Courtney, term expired.

Tamara Wenda Ashford, of Virginia, to be a Judge of the United States Tax Court for a term of fifteen years, vice Mary Ann Cohen, retired.

Leslie E. Bains, of New York, to be a Director of the Securities Investor Protection Corporation for a term expiring December 31, 2015, vice William S. Jasien, term expired.

Alfredo J. Balsera, of Florida, to be a Member of the United States Advisory Commission on Public Diplomacy for a term expiring July 1, 2014, vice Elizabeth F. Bagley, term expired.

Alfredo J. Balsera, of Florida, to be a Member of the United States Advisory Commission on Public Diplomacy for a term expiring July 1, 2017. (Reappointment)

Robert C. Barber, of Massachusetts, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Republic of Iceland.

Tommy Port Beaudreau, of Alaska, to be an Assistant Secretary of the Interior, vice Rhea S. Suh.

Colleen Bradley Bell, of California, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to Hungary.

David Michael Bennett, of North Carolina, to be a Governor of the United States Postal Service for a term expiring December 8, 2018, vice Thurgood Marshall, Jr., term expired.

Timothy M. Broas, of Maryland, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Kingdom of the Netherlands.

Thomas A. Burke, of Maryland, to be an Assistant Administrator of the Environmental Protection Agency, vice Paul T. Anastas, resigned.

Dwight L. Bush, Sr., of the District of Columbia, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Kingdom of Morocco.

Leslie Ragon Caldwell, of New York, to be an Assistant Attorney General, vice Lanny A. Breuer, resigned.

John P. Carlin, of New York, to be an Assistant Attorney General, vice Lisa O. Monaco, resigned.

Michael G. Carroll, of New York, to be Inspector General, United States Agency for International Development, vice Donald A. Gambatesa, resigned.

Brad R. Carson, of Oklahoma, to be Under Secretary of the Army, vice Joseph W. Westphal.

Arnold A. Chacon, of Virginia, a Career Member of the Senior Foreign Service, Class of Minister-Counselor, to be Director General of the Foreign Service, vice Linda Thomas-Greenfield, resigned.

IS DECISION-MAKING AS RATIONAL AS ECONOMIST THINK

FROM:  NATIONAL SCIENCE FOUNDATION 
Behavioral economist studies science of decision-making
Using brain scans, MacArthur Fellow examines people's expressed values and the choices they later make
January 6, 2014

When it comes to decision-making, traditional economics holds that people are rational and know what they want. Moreover, they will make their choices influenced by whatever constraints are upon them, for example, the amount of money they have or don't have.

Behavioral economist Colin Camerer has been challenging those assumptions for years, producing new theories, and with growing widespread acceptance. He and his colleagues believe that the old models don't always work when they involve the behavior of real people, and that other dynamics often are in play. He is using the brain to find them.

The National Science Foundation (NSF)-funded scientist is looking directly at brain activity to see whether, and how, certain portions of the brain correlate with the values people express, and the choices they later make.

The goal, eventually, is to identify activity in certain areas of the brain, by seeing where blood flow occurs, and then compare these brain data with the decisions they make.

"For example, if you ask people to rate blueberries and elderberries, and you see their brain voxels [portions of the brain] associated with subjective value are more active for blueberries, you can assume that they will later choose the blueberries," even if they verbally gave elderberries a higher rating, Camerer says. "It's almost like a brain polygraph, where you may be saying one thing, but your brain is saying another and is more predictive of what you ultimately will do."

Camerer, a professor of behavioral finance and economics at the California Institute of Technology, is a recent recipient of one of this year's prestigious MacArthur fellowships, a $625,000 no-strings-attached award, popularly known as a "genius" grant. These go to talented individuals who have shown extraordinary originality and dedication in their fields.

NSF has supported his work since 1985 with a total of $5.07 million on a number of research projects that involve behavioral economics and neuroeconomics, that is, using brain scans to understand economic decision-making, all within NSF's Directorate for Social, Behavioral & Economic Sciences.

"We are trying to get the correct psychology about human nature into the theory of economics," he says. "We need a theory that can explain both when people are acting rationally, and when they are not. We are trying to add in the missing elements."

This research is now possible because of magnetic resonance imaging (MRI) technology that allows scientists to measure brain activity. Camerer and others believe it can be especially valuable when asking people to perform economic tasks or strategic games, or rate products, such as foods.

The potential of such experiments could mean that economists, ultimately, will no longer have to rely purely on historical data, that is, how people have behaved in the past, or outdated statistical models that try to predict how individuals should respond. Rather, the new research will allow behavioral economists to look directly into the brain and make more accurate predictions about what people are going to do.

The science of decision-making aims to get a more accurate fix on how people feel about buying habits, taxes, consumer products, travel and leisure, with broad implications for productivity and competitiveness, labor relations and consumer spending.

"Most new products fail, despite marketing, advertising and testing and focus groups," he says. "Consumers are finicky. Companies put out a new flavor of cereal that does well in focus groups, but then it sits on a shelf and people don't buy it. So any method that helps predict actual sales could be useful."

In one of his NSF-supported projects, Camerer did, in fact, look at food choices. His team provided subjects with a 2.75-second glance of photos of each of 100 different foods while their scanning their brain activity in an MRI machine. Participants then rated each food on a numerical scale; later, they looked at different pairs of foods and had to choose between them.

"We use a system called neural decoding," Camerer explains. "If you took the brain and diced it into cubes, you'd get about 50,000 three-millimeter cubed pieces, called voxels. We look at blood flow into each voxel. In general, when neurons are receiving input, blood is flowing in there. The question we ask is: can we find the voxels in the brain that correlate most strongly with subjective value--the rating of the food--and what they later choose? Then, when we find these 100 voxels that represent 'value,' we average them and see how well they predict the choices."

So far, "we can predict at a rate of about 68 percent," he says, adding: "Obviously, we would like to get close to 100 percent."

To be sure, this is more a proof of principle for future applications, since "you can't drag the machine around," for marketing studies; also, it is expensive to use.

"In a way, fMRI is really the last resort," Camerer says. "But we are interested in the whole brain. We don't know where these 100 voxels are; they could be in sensory, memory or motor-control areas--there could be all kinds of valuation sprinkled in all parts of the brain. fMRI is the only method that can look at the entire brain. However, there are much simpler and more portable methods that would probably work almost as well, such as measuring skin conductance, facial muscles, or pupil dilation.

"If you are trying to predict particular things, you don't necessarily need to go to brain imaging," he adds. "What brain imaging and similar methods have in common is that people see images or activities on a computer screen and we measure how they react biologically."

-- Marlene Cimons, National Science Foundation
Investigators
Colin Camerer
Antonio Rangel
Related Institutions/Organizations
California Institute of Technology

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