RECENT DEFENSE DEPARTMENT PHOTOS

FROM:  U.S. DEFENSE DEPARTMENT 
U.S. soldiers install a transmission in an AH-64 Apache helicopter on Forward Operating Base Fenty, Afghanistan, Feb. 14, 2014. The soldiers, who are maintainers, are assigned to 159th Combat Aviation Brigade. U.S. Army photo by Spc. Joseph Green.

A U.S. Marine performs battlefield movements during a live-fire exercise at Arta Range, Djibouti, Feb. 18, 2014. U.S. Air Force photo by Staff Sgt. Staci Mill.

FLEXIBLE METALLIC GLASS; ADVANCES IN GLASS ALLOYS

FROM:  LOS ALAMOS NATIONAL LABORATORY 
Four!' Heads Up, Wide Use of More Flexible Metallic Glass Coming Your Way

Advances in Glass Alloys Lead to Strength, Flexibility

LOS ALAMOS, N.M., March 3, 2014—What do some high-end golf clubs and your living room window have in common? The answer is glass, but in the golf clubs’ case it’s a specialized glass product, called metallic glass, with the ability to be bent considerably and spring back into its original form. Your windows, as you know, aren’t quite as forgiving of a sudden impact, and they shatter – they are brittle, as opposed to ductile, or more flexible products. For the golf clubs, however, a new generation of flexible metallic glass puts more bounce back into a golf ball, from the metallic glass’ high elasticity. They’re not unbreakable, but close. And scientists are working toward even stronger and more elastic glass types which would fail in a ductile fashion instead of shattering.

“In glass, localized plastic deformation usually leads to immediate failure,” said Seth Imhoff, a Los Alamos National Laboratory materials scientist. “Normally, metal alloys freeze into a collection of crystals in which the atoms line up into very specific patterns. In specially designed metal alloys an amorphous, or random atom arrangement, can be retained in the solid, which can allow us to tailor a wide range of properties such as the ability to be bent severely and spring back into place.”

And for scientists, tweaking the shearing characteristics of materials such as glass has important applications well beyond the sporting world, it’s a matter of broader impact, aiding such fields as space science, electrical transformers, cell phone cases, and yes, golf clubs, because their mechanical and magnetic properties are highly adjustable.

An international team of scientists from the University of Wisconsin-Madison, Los Alamos National Laboratory, Universitat Autònoma de Barcelona in Spain, and Tohoku University in Japan are hoping their discoveries will lead to glass that can be both stronger and more ductile.

The way that metallic glass deforms plastically is by the formation of what are called shear bands. Shear banding can occur on a macroscopic scale in granular materials, like during an avalanche or landslide, but in glass the bands are generally 10-20 nanometers wide (~3000 times thinner than a human hair!).

In their paper “Nucleation of Shear Bands in Amorphous Alloys” published this week in the Proceedings of the National Academy of Sciences, these researchers are looking at the initiation of shear-banding events in order to better understand how to control the mechanical properties of these materials.

Once a shear band is formed it travels very quickly across the material and can lead to failure. Therefore the strength is ultimately controlled by how and when they form; so shear banding is termed a “nucleation controlled event.” The end goal is to understand this shear band nucleation, or initial formation, behavior so that better properties can be designed.

“We’ve used an experimental technique called nanoindentation to repeatedly sample the initial formation of shear bands,” said Imhoff. “Nanoindentation essentially uses a tiny needle with a very precise shape to push on the surface of a sample in a very controlled way. Even though the force is very small, the tiny tip of the needle concentrates the stress in a very small region until a single shear band is generated in order to relieve some of that stress.”

By repeating this process many times scientists sample many local atomic arrangements and their specific critical stress levels. The new experimental evidence provided in this work challenges the current assumption of only a single type of initiation site, or STZ (shear transformation zone).

Identification of multiple types of STZs could lead to new opportunities for controlling the strength and ductility of bulk metallic glasses… oh, and of course this means more durable high-performance golf clubs.

Funding: Research funded in part by the National Science Foundation (DMR-1005334) and Office of Naval Research (N00014-12-1-0569). Additional funding from Grants-in-Aid-S, Global COE for Materials Science, and World Premier International Research Center Initiative for Atoms, Molecules and Materials, the Ministry of Education, Culture, Sports and Science, Japan.

FDA RAISES AWARENESS OF RARE DISEASE THERAPIES AND ORPHAN PRODUCTS DEVELOPMENT

FROM:  U.S. FOOD AND DRUG ADMINISTRATION 
FDA Speeds Innovation in Rare Disease Therapies

Patients often need advocates, and that can be especially true for people with a rare disease, who have unique problems and may have little or no support or available treatment.

The Food and Drug Administration (FDA) is committed to helping patients and advancing rare disease therapies through the development of "orphan" medical products, including drugs, biologic (such as a protein, vaccine or blood product), and devices used to treat a rare disease or condition. The Orphan Drug Act defines a disease as rare if fewer than 200,000 people in the United States have it.

FDA's Office of Orphan Products Development (OOPD), in collaboration with the Center for Drug Evaluation and Research (CDER), is launching web-based educational resources for patients and industry on FDA-related rare disease topics. The first of these resources will debut Feb. 28, 2014, in recognition of International Rare Disease Day, and will cover topics that include how to interact with the agency and how to access therapies that are currently being studied.

Rare Disease Day, which is commemorated on the last day in February, is a global campaign to raise awareness of the more than 250 million people worldwide who suffer from rare diseases. About 7,000 rare diseases have been identified around the world; some have familiar names, such as cystic fibrosis and Lou Gehrig's disease, but many don't. Thirty million Americans have rare diseases, which can be chronic, progressive, debilitating, disabling, severe or life-threatening. About 80 percent of rare diseases are genetic, and about half of all rare diseases affect children.
FDA's Office of Orphan Products Development

FDA is in a unique position to help those who suffer from rare diseases by offering several important incentives to promote the development of products for rare diseases, including:

granting orphan drug designation for drugs and biologics, which encourages companies to develop a product by giving them financial and other incentives;
providing grant funds to further the clinical development of drugs, biologics, medical devices and medical foods for the treatment of rare diseases;
granting humanitarian use device (HUD) designation for medical devices for rare diseases, which makes these products eligible to enter the market via a separate marketing pathway known as the Humanitarian Device Exemption (HDE) Pathway; and providing grants to fund consortia to promote the development of pediatric devices, many of which are used to treat and diagnose rare diseases.

Gayatri R. Rao, M.D., J.D., director of OOPD, says 2013 was a record year for her office. The number of requests under FDA's Orphan Drug Designation Program rose about 18% in 2013 over 2012. FDA received nearly 450 orphan-drug designation requests and designated 258 promising orphan drugs, a 40% increase over 2012, says Rao.

"While many factors may be contributing to the growth of orphan drug development, patients are continuing to drive the push for innovation and treatments," she says.

In 2013, FDA approved 33 drugs for treating rare diseases. Since 1983, FDA has approved more than 450 drugs and biologic products for rare diseases. In the decade prior to the Orphan Drug Act, fewer than 10 treatments had been developed by industry for rare diseases.

"Last year, FDA funded 15 new orphan products grants for about $14 million, all supporting clinical research in rare diseases," says Rao. "Many of the studies that we have funded have supported the approval of orphan drugs and devices for rare disease patients."

On the device side, in 2013, FDA designated 16 medical devices for the treatment or diagnosis of rare diseases and approved two under the HDE pathway.

In addition, based on feedback from stakeholders, OOPD revamped its Pediatric Device Consortia (PDC) Grant Program.

"Now we focus more heavily on a consortium's ability to provide more holistic advice on device development," Rao says. "To bring a device to market, you need engineers, scientists, clinicians, business people and regulatory people collaborating for success."

Consortia advise on all sorts of devices through various stages of development, from the prototype stage through animal testing, clinical testing and commercialization. OOPD received 14 PDC applications last year and funded half of them.

In addition to these incentive programs, last year, OOPD, in conjunction with CDER and FDA's Center for Biologics Evaluation and Research (CBER), began administering the new Rare Pediatric Disease Priority Review Voucher Program to promote the development of new drugs and biologics for the prevention and treatment of rare pediatric diseases. In 2013, FDA received five requests for designation as a "rare pediatric disease" and designated three. In 2014, FDA awarded the first voucher under this program for the development of Vivizim to treat patients with a rare congenital enzyme disorder called Morquio A syndrome.

SECRETARY KERRY MAKES REMARKS WITH MOLDOVAN PRIME MINISTER LEANCA

FROM:   STATE DEPARTMENT 
Remarks With Moldovan Prime Minister Iurie Leanca
Remarks
John Kerry
Secretary of State
Washington, DC
March 3, 2014

SECRETARY KERRY: Good afternoon. I was going to say good morning, but I said what time – the morning has passed incredibly rapidly, but it’s my very real pleasure to welcome the prime minister of Moldova, Prime Minister Iurie Leanca, to Washington on a snowy day. He welcomed me to Moldova; we had a wonderful visit in December, and at that time I invited him to come here so we could continue our conversation.

The prime minister is leading a transformation in Moldova. We’re very pleased with the fact that they have continued their efforts to move towards their Association Agreement with Europe. We are pleased today to announce that we’re going to add additional funding to their effort to develop competitiveness, which is key to their businesses and to their economic prospects, and we’ll add another $2.8 million to an already $4.7 million for a total of $7.5 or so million to help in this particular transition. But the United States has provided very significant economic assistance, close to a billion and a half dollars over the course of this transition. We are very interested in helping the prime minister in his efforts to continue with his anti-corruption initiatives in the country, and we’re very, very excited by the leadership that he and his government are providing as they really determine their own future and make clear their determination to be part of a larger global trading mechanism.

While I was in Moldova I had an occasion to visit a really rather remarkable winery, quite a spectacular underground facility. This is one of the great products that they are now exporting, and we’re excited about the prospects of their ability to broaden that market. There are challenges. I regret to say that Russia, in some of the challenges we’re seeing right now in Ukraine, has put pressure on Moldova. There are challenges with respect to their energy sources and also their ability to trade. But we are committed firmly to the direction that Moldovans have chosen for themselves and their government has expressed a desire to pursue.

We will also, obviously, talk about the neighborhood, the region, and their near neighbor Ukraine and the events that are unfolding there. So I look forward to a very constructive conversation, a timely one as I depart this evening for Kyiv, and I’m very grateful to the prime minister for taking time to come to visit. Thank you.

PRIME MINISTER LEANCA: Mr. Secretary of State, I am delighted to be back in Washington, the same delighted to be back in the State Department. And thank you very much for this invitation to come and to have a chance to discuss about bilateral relations.

We are indeed extremely grateful to the U.S. Administration, to the U.S. people, for the generous support they have provided us during this almost 23 years of independence, in building functioning institutions, a pluralistic society, a tolerant society, making sure that we are able to show the benefits of independence to the citizens of Moldova.

Today we are just supposed to launch the Strategic Dialogue, which I am sure will be an extremely important element within building a more functioning and a more democratic society in Moldova, and to address the direct challenges which Moldova and the region is facing.

I’m very happy that we were able to get to resume the activities of the trade commission to Moldova and the U.S. because we are indeed very interested to expand the access to new markets and to the U.S. market (inaudible) to see more American investment in the economy of Moldova. And the response which we got today from the USTR is extremely promising, so we are very interested to discuss about it.

Of course, we want to (inaudible) the government’s Strategic Dialogue, which we’ll launch today, to make sure that there are working groups on various issues – energy. Moldova is very keen to build an energy interconnection with European Union, and American support is critical in this respect. The same is about the security cooperation. As we see right now in the region, there is some very negative developments unfolding; therefore, our determination to have a very active security cooperation and dialogue is there.

You’ve mentioned, Mr. Secretary of State, the issue of Ukraine. And since Moldova is the neighbor of Ukraine – despite our small size we have a border the length of 1,242 kilometers common border with Ukraine – of course, everything that happens in Ukraine is extremely important to Moldova, to the future of Moldova.

The problems Ukraine experiences is of profound concern to us. Moldova, unfortunately, from the very first day of its independence, has a secessionist movement on its territory, and we know exactly what apparently this means. And unfortunately, we were not able to find a proper solution to it, so what happens today in Ukraine is just a reminder to us in the first place, but then show to our friends, that we need to do much more in order to address this issue, because if it’s not addressed in time, then it becomes very contagious. And what happens today in Crimea, in some eastern parts of Ukraine, are just a brutal reminder. So Moldova is very much in favor of the territorial integrity of the Ukraine, and we hope very much that all international mechanisms will be applied and a peaceful solution to this conflict will be found.

So Mr. Secretary of State, again, I am happy to be here. I’m looking very much forward to our dialogue. We remember your visit, the visit to Chisinau, but also underground, where they tasted the excellent Moldovan wine. And I hope very much that American consumers will have a chance to taste more of excellent taste Moldovan wine in the future.

SECRETARY KERRY: We hope so, for sure. I don’t think that will be hard with this crowd. (Laughter.) Thank you very much.

ROSE GOTTEMOELLER'S REMARKS ON NUCLEAR REMEMBRANCE DAY

FROM:  U.S. STATE DEPARTMENT 
Republic of Marshall Islands Nuclear Remembrance Day
Remarks
Rose Gottemoeller
Acting Under Secretary for Arms Control and International Security 
Majuro, Marshall Islands
March 1, 2014

As Delivered


I am so honored to be in the Marshall Islands, a nation that the United States sees as our strategic partner, our ally and our friend. Mr. President, I am honored to be here with such a distinguished group of government, community and faith leaders, members of the diplomatic corps, and honored guests.

Today, here in this beautiful place, we gather to remember and honor the past, but we also gather in the spirit of community and hope. I would like to second Ambassador Armbruster’s message of bromich (condolences); it is the right word for today. The American people remember what took place here and honor the historical and current contributions that the Marshallese people make to help promote peace and stability around the world. For many of you, that means remembering lost family members and loved ones – they are in our thoughts and prayers, as well. Today we honor their memory and I know that words can only go so far in healing wounds, but this nation has played an outsized role in the fight for a safer world and for that the United States, and the world, thanks you.

Our commitment to you, solidified by the 1986 Compact and the 2003 Amended Compact, is borne out by our obligation to defend the Marshall Islands and its people, as the United States and its citizens are defended. Of course, the mutual security of our nations is an underlying element of the special relationship between our nations. Marshallese citizens serve with distinction in our armed forces, sharing our commitment to democracy and freedom. I know that the Marshallese rate of enlistment is higher than in most U.S. states. For the Marshallese citizens that have served in Iraq, Afghanistan and elsewhere in the world, we are so grateful.

On this day – the 60th anniversary of Castle Bravo – and on each and every day, the United States recognizes the effects of its nuclear explosive testing and has accepted and acted on its responsibility. The Department of Energy continues to provide critical medical and environmental programs in the RMI, in addition to improving the provision of such services. In particular, we will continue to work with the local leadership of the four nuclear-affected atolls to assist them in realizing their environmental goals. In this regard, the Department of Energy will be employing the world’s best technologies to aid in this endeavor. This, I can assure you, is a promise from the people of the United States.

Since 2004, the United States has provided over $600 million to the Marshall Islands, in the form of direct assistance and subsidies, as well as financial support for rehabilitation of affected atolls, site monitoring, and ongoing health care programs. This year, the U.S. Department of Energy (DOE) initiated a remarkable sponsorship program to increase the science capacity in the Marshall Islands. Two Marshallese students will live and study in the San Francisco Bay Area, including at Lawrence Livermore National Labs (LLNL) itself. The sponsorship pays tuition, room and board, travel and a living stipend. It also includes a summer internship with LLNL.

As I said at the outset, we are here to remember and honor the past today, but I also want to look to the future with purpose and with hope. In 1962, the Cuban Missile Crisis opened the eyes of the world to the terror of nuclear war, but there were people across the globe who were already all too familiar with nuclear dangers. People in Japan and the Marshall Islands, those downwind from the nuclear test site in Nevada, the mothers who found radioactive material in their children’s milk: all understood in first person the health effects of nuclear explosions in the atmosphere. In 1963, about a decade after Castle Bravo, President John F. Kennedy called for a complete ban on nuclear explosive testing.

“The conclusion of such a treaty,” he said, “so near and yet so far -- would check the spiraling arms race in one of its most dangerous areas. It would place the nuclear powers in a position to deal more effectively with one of the greatest hazards which man faces in 1963 -- the further spread of nuclear arms. It would increase our security -- it would decrease the prospects of war.”

We are still so near and yet so far from this goal. We were able to achieve part of this objective through the Limited Test Ban Treaty – banning tests in the water, in space and in the atmosphere. However, 51 years later, the hazard of the further spread of nuclear weapons remains and we still lack a total ban on nuclear explosive testing. Here again, we should heed President Kennedy’s words. “Surely this goal,” he said, “is sufficiently important to require our steady pursuit, yielding neither to the temptation to give up the whole effort nor the temptation to give up our insistence on vital and responsible safeguards.”

In 2009, President Obama took up the mantle of the Presidents who came before him, and laid out his own long-term vision of the peace and security of a world without nuclear weapons. While the United States will and must maintain a safe, secure and effective nuclear deterrent for as long as nuclear weapons exist, we have properly refocused our nuclear policy for the 21st century. As outlined in the 2010 Nuclear Posture Review (NPR), we are now on a path that confronts the threats we face today and those on the near horizon. This allows us to work with allies and partners to pursue arms control and disarmament measures that can lead us down the path towards a nuclear-free world.

Mindful of the devastating human consequences of nuclear war, the United States has also clearly stated that it is in our interest, and that of all other nations, that the nearly 70-year record of non-use of nuclear weapons be extended forever. We also concluded that the time for a complete and total ban on nuclear explosive testing is long overdue. U.S. ratification of the Comprehensive Nuclear Test-Ban Treaty (CTBT) is a pivotal part of this effort.

Ratification of the CTBT is central to leading other nuclear weapons states toward a world of diminished reliance on nuclear weapons, reduced nuclear competition, and eventual nuclear disarmament. The United States now maintains a safe, secure and effective nuclear arsenal through our science-based Stockpile Stewardship program without nuclear explosive testing, which the United States halted in 1992.

The United States will be patient in our pursuit of ratification, but we will also be persistent. It has been a long time since the CTBT was on the front pages of newspapers, so we will need time to make the case for this Treaty. Together, we can work through questions and concerns about the Treaty and explosive nuclear testing. Our answers to those questions continue to grow stronger with the proven and increasing capabilities of the Stockpile Stewardship program and the verification system of the Treaty, including the International Monitoring System.

I cannot emphasize strongly enough that it is precisely our deep understanding of the consequences of nuclear weapons – including the dangerous health effects of nuclear explosive testing – that has guided and motivated our efforts to reduce and ultimately eliminate these most dangerous and awe-inspiring weapons. Entry into force of the CTBT is one such essential part of our pragmatic, step by step approach to eliminating nuclear dangers. The Treaty will make the world a safer place for the Marshall Islands, the United States, for every nation around the globe.

This is not just a security issue; this is an issue of humanity, of health, of morality. We are the stewards of this Earth and we owe it to those who have fallen – to those who suffer still – to work together, one step at a time, until nuclear explosive testing is banned worldwide, getting us one step closer to our goal of the peace and security of a world without nuclear weapons. In closing, I want to reiterate that the United States and the world owe the Marshallese a debt of gratitude. The RMI has been a leader in countering climate change, a contributor to international security, and our partner on global issues. Together, we can and should continue to work for what President Kennedy called “a genuine peace, the kind of peace that makes life on earth worth living.”

Finally, I can only say kommol tata! Thank you!

FRANK ROSE'S REMARKS ON SPACE PARTNERSHIP

FROM:  STATE DEPARTMENT
Strengthening Global Partnership in SSA Activities
Remarks
Frank A. Rose
Deputy Assistant Secretary, Bureau of Arms Control, Verification and Compliance
3rd International Symposium on Sustainable Space Development and Utilization for Humankind
Tokyo, Japan
February 27, 2014

Good morning. I am honored to be back in Tokyo for the third international symposium on sustainable space development and utilization for mankind. I always have a great experience during my trips to Japan, and I'd like to thank the Japan Space Forum for inviting me back again to participate in this seminar.

Update on U.S. Space Situational Awareness Initiatives
To begin, I'd like to provide a brief policy update on the United States' efforts on Space Situational Awareness, or SSA, cooperation in the past year, while deferring to my colleague Doug Loverro from the Department of Defense to discuss some of the more technical aspects of our SSA cooperation.

As everyone in this room understands, the increasingly congested space environment is of growing concern for all nations. The growing volume of space debris dramatically increases the threat of a collision. Avoiding such collisions requires us to strengthen the foundational capability of SSA to improve our ability to characterize the space environment and to predict the location of objects orbiting the Earth, including space debris.

Given the constraints of geography and finite resources, no one nation is capable of precisely tracking every space object on its own. This inherent limitation makes international cooperation on SSA not just useful but essential. As a result, we are collaborating with foreign partners, the private sector, and intergovernmental organizations to improve our space situational awareness – specifically, to improve our shared ability to rapidly detect, warn of, characterize, and attribute natural and man-made disturbances to space systems.

The United States is taking action in a variety of ways to implement our National Space Policy's guidance to enhance SSA capabilities through international cooperation.

For example, since last February, the United States has signed SSA sharing agreements with five governments, including three Pacific nations: Australia, Japan, and Canada. We have also concluded SSA sharing arrangements with Italy, and, just last month, France. We expect to sign several agreements with additional governments in 2014, as well as with numerous commercial owners and operators.

In addition, the United States continues to provide notifications to other governments and commercial satellite operators of potentially hazardous conjunctions between their satellites and other orbiting objects.

We are also exploring the possibility of establishing two-way SSA sharing, including with Japan. We hope that as our space surveillance capabilities improve, we will be able to notify satellite operators earlier and with greater accuracy in order to prevent collisions in space. To this end, the United States is working with partner nations on a country-by-country basis to develop processes and jointly develop a universal message format for more timely and tailored collision warning data. We are also working closely with the commercial space industry to determine what kinds of satellite data and other information can be shared. Working together at the operator level to share collision warning information will have the added benefit of improving spaceflight safety and communication among governmental and commercial operators, users, and decision-makers.

One of the most important areas for us to continue pursuing international cooperation, including on SSA and other space activities, is in the Asia-Pacific region. I'd now like to take a few minutes to discuss some key aspects of our engagement on space security in the region, including strengthening alliances; deepening partnerships with emerging powers; empowering regional institutions; and building a stable, productive, and constructive space security relationship with China.

Strengthening Alliances
Not only are we strengthening our alliances in the Asia-Pacific region, but in many cases, we’re updating them to face evolving security challenges, such as those in the space environment. This process of updating and broadening our alliances is especially evident here in Japan, where we are working with our Japanese allies to update the U.S.-Japan Defense Cooperation Guidelines. Enhancing allied cooperation on space security issues presents an ideal opportunity to enhance the U.S.-Japan Alliance. We believe the new Guidelines should emphasize the role that the United States and Japan envision for a "whole of government" approach to space security cooperation, and the ways this cooperation can contribute to enhancing deterrence, ballistic missile defense, and regional and international security and stability. We are looking to place particular emphasis on the importance to the Alliance of strengthening the long-term sustainability of the space environment and of pursuing bilateral and multilateral transparency and confidence-building measures, or TCBMs. Finally, the Guidelines should discuss bilateral cooperation in the utilization of U.S. and allied space capabilities and the potential value of Japanese contributions to improve the overall resiliency of critical space mission architectures.

In addition to our bilateral ongoing work with the Guidelines, the United States and Japan have held several space security dialogues in the last three years, as well as civil space dialogues and the first-ever Comprehensive Dialogue last year in Tokyo. The Comprehensive Dialogue on Space is intended to address the bilateral relationship at a strategic level and to ensure a whole-of-government approach to space matters. We expect a second Comprehensive Dialogue to be held later this year in Washington, D.C.

Space has also played an increasingly crucial role in our alliance with Australia, with discussions on space beginning as early as 2008 at the Australia-U.S. Ministerial (AUSMIN). At the 2010 AUSMIN, our governments acknowledged the growing problem of space debris, and signed a Memorandum of Understanding to work together on space surveillance. Two years later, we continued that cooperation at the 2012 AUSMIN when we announced that the United States would transfer a C-Band radar to Australia, which will help us expand our ability to track space debris in the southern hemisphere. At the 2013 AUSMIN, we signed another agreement to relocate a space surveillance telescope to Australia. We also have ongoing space security dialogues with Australia, as well as a trilateral space security dialogue between the United States, Australia, and Japan.

Discussions on space security have also been increasing with our Republic of Korea allies. We are currently considering the establishment of a formal space security dialogue mechanism between our two governments, as well as the establishment of a bilateral SSA Sharing Agreement.

All three of these allies have been exceptionally close partners on space security and sustainability. For example, both the United States and the Republic of Korea cooperated closely as members of the UN Group of Governmental Experts, or GGE, on Outer Space Transparency and Confidence-Building Measures and supported the consensus report, which was later endorsed last year by the UN General Assembly. The GGE, which was ably led by Victor Vasiliev of Russia who is here today, is an important example of what governments can achieve when they work together in a spirit of pragmatic cooperation. We hope that all countries will review the report and carefully consider implementing many of the near-term and pragmatic TCBMs contained therein.

One of the key recommendations from the consensus GGE report was its endorsement of "efforts to pursue political commitments, for example...a multilateral code of conduct, to encourage responsible actions in, and the peaceful use of, outer space." Japan, Australia, and the Republic of Korea, have all been global leaders in the development of the Code, which has the potential to contribute positively to the long-term sustainability, security, safety, and stability of the space environment through the establishment of TCBMs and rules of responsible behavior in space. In addition, I would like to recognize the invaluable contribution to space security by Thailand, who in November of last year hosted the successful second round of Open-Ended Consultations on the Code of Conduct in Bangkok.

Deepening Partnerships with Emerging Powers and Empowering Regional Institutions

In addition to updating and deepening our alliances in the region, we are also building new partnerships to help solve the shared problems of the space environment. We are seeking to forge deeper ties with other regional spacefaring nations. That is why I’ve spent a great deal of time in Asia over the past two years, discussing space security issues with my counterparts in Indonesia, Malaysia, Singapore, Thailand, and Vietnam.

Our increasing engagement with ASEAN highlights our efforts to deepen our commitment to the region and to work with all nations to ensure a sustainable and secure space environment. We were proud to participate in and support the 2012 ASEAN Regional Forum (ARF) workshop on space security, co-hosted by Vietnam and Australia. This event was the first time ARF members gathered to discuss space security issues. ARF members welcomed space issues into the ARF and called for more workshops. As a major forum for a large group of established and emerging spacefaring nations, the ARF provides an ideal opportunity to strengthen the region’s space expertise.

We are also seeking greater engagement with India, which is an established spacefaring nation, and we see a strong role for greater U.S.-India cooperation on space security issues. As President Obama said in 2010, the relationship between India and America will be one of the defining partnerships of the 21st century. We see a strong role for Indian leadership in regional and multilateral space fora given India's space capabilities and its strong ties to other regional space actors and emerging spacefaring nations. For these reasons, in 2011 we launched the first U.S.-India space security discussions as part of an effort to ensure that our two governments exchange views on this increasingly important domain. The 2013 U.S.-India Strategic Dialogue Joint Statement called for a Space Security Dialogue between our two nations, and we look forward to having this Dialogue in the near future.

Building a Stable, Productive, and Constructive Space Security Relationship with China

Another key part of our regional engagement is building a stable, productive, and constructive space security relationship with China. As a leading spacefaring nation, China will play a key role in space security issues, and we will continue to engage China on space security through bilateral and multilateral channels. The United States and China have a mutual interest in maintaining the long-term sustainability and security of the space environment, including the adoption of measures to limit the creation of long-lived space debris. It is important to routinely discuss space security issues in order to reduce the chance for misperceptions and miscalculations. One way we have pursued these interests is by working to provide our Chinese counterparts with timely close approach notifications.

However, as U.S. Director of National Intelligence James Clapper noted in testimony before the U.S. Congress, the United States remains concerned about Chinese counterspace activities. As the unclassified January 29, 2014, Worldwide Threat Assessment of the U.S. Intelligence Community noted: Chinese military leaders "understand the unique information advantages afforded by space systems and are developing capabilities to disrupt US use of space in a conflict. For example, Chinese military writings highlight the need to interfere with, damage, and destroy reconnaissance, navigation, and communication satellites. China has satellite jamming capabilities and is pursuing antisatellite systems."

This is a development that the United States and its allies will continue to watch closely, and we call on China to be more transparent about its intentions and activities in space.

Conclusion
In conclusion, I’d like to reiterate that the United States is committed to addressing the challenges of managing the space environment. However, we cannot address these challenges alone. All nations – including those in the Asia-Pacific region, which is seeing a rapid expansion in its number of spacefaring nations, and rapid development of those nations’ capabilities – should work together to adopt pragmatic and near-term approaches for responsible activity in space to preserve its use for the benefit of future generations. We look forward in the United States to deepening our engagement with all governments in the Asia-Pacific region in regard to space and to work for the long-term sustainability of the very fragile space environment.

Thank you again for the opportunity to speak here today.

G-7 STATEMENT ON UKRAINE

FROM:  THE WHITE HOUSE 
G-7 Leaders Statement

We, the leaders of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States and the President of the European Council and President of the European Commission, join together today to condemn the Russian Federation’s clear violation of the sovereignty and territorial integrity of Ukraine, in contravention of Russia’s obligations under the UN Charter and its 1997 basing agreement with Ukraine.  We call on Russia to address any ongoing security or human rights concerns that it has with Ukraine through direct negotiations, and/or via international observation or mediation under the auspices of the UN or the Organization for Security and Cooperation in Europe.  We stand ready to assist with these efforts.

We also call on all parties concerned to behave with the greatest extent of self-restraint and responsibility, and to decrease the tensions.

We note that Russia’s actions in Ukraine also contravene the principles and values on which the G-7 and the G-8 operate.  As such, we have decided for the time being to suspend our participation in activities associated with the preparation of the scheduled G-8 Summit in Sochi in June, until the environment comes back where the G-8 is able to have meaningful discussion.

We are united in supporting Ukraine’s sovereignty and territorial integrity, and its right to choose its own future.  We commit ourselves to support Ukraine in its efforts to restore unity, stability, and political and economic health to the country.  To that end, we will support Ukraine’s work with the International Monetary Fund to negotiate a new program and to implement needed reforms.  IMF support will be critical in unlocking additional assistance from the World Bank, other international financial institutions, the EU, and bilateral sources.

ISS DEPLOYS CUBESATS

FROM:  NASA 
Deploying a Set of CubeSats From the International Space Station

A set of NanoRacks CubeSats is photographed by an Expedition 38 crew member after deployment by the NanoRacks Launcher attached to the end of the Japanese robotic arm. The CubeSats program contains a variety of experiments such as Earth observations and advanced electronics testing. International Space Station solar array panels are at left. Earth's horizon and the blackness of space provide the backdrop for the scene.

Two sets of CubeSats were deployed late Wednesday, Feb. 26 and early Thursday, Feb. 27, leaving just two more launches to go of the 33 CubeSats that were delivered to the station in January by Orbital Sciences’ Cygnus cargo ship. The latest CubeSats were sent on their way at 8:50 p.m. EST Wednesday and 2:40 a.m. Thursday. CubeSats are a class of research spacecraft called nanosatellites and have small, standardized sizes to reduce costs. Two final batches of CubeSats are set for deployment at 11:20 p.m. Thursday and 2:30 a.m. Friday, but more are scheduled to be delivered to the station on the second Orbital commercial resupply mission in May.  Image Credit-NASA

RECENT U.S. DEFENSE DEPARTMENT PHOTOS

FROM:  U.S. DEFENSE DEPARTMENT 

A U.S. Marine Corps mine-resistant, ambush-protected vehicle provides security in the Now Zad district in Afghanistan's Helmand province, Feb. 16, 2014. The vehicle is assigned to the 3rd Battalion, 7th Marine Regiment. The unit supported Afghan forces conducting an operation in the area. U.S. Marine Corps photo by Cpl. Sean Searfus.

U.S. Marines shield themselves from the blast of a breaching charge explosion during Exercise Cobra Gold 2014 in Ban Chan Krem, Thailand, Feb. 14, 2014. U.S. Marine Corps photo by Cpl. Adam Mille.

COURT AFFIRMS $163 MILLION JUDGEMENT AGAINST "SCAREWARE" SCAM

FROM:  FEDERAL TRADE COMMISSION 
Appeals Court Affirms Ruling in Favor of FTC, Upholds $163 Million Judgment Against ‘Scareware’ Marketer

In a victory for the Federal Trade Commission in its efforts to protect consumers from spyware and malware, a federal appeals court has upheld a district court ruling that imposed a judgment of more than $163 million on Kristy Ross for her role in an operation that used computer “scareware” to trick consumers into thinking their computers were infected with malicious software, and then sold them software to “fix” their non-existent problem.

“This is a huge victory for consumers,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “As this case shows, scareware causes enormous economic injury. We remain committed to protecting consumers against this kind of scam.”

In October 2012, in addition to the imposing monetary judgment, the U.S. District Court for the District of Maryland permanently prohibited Ross from selling computer security software and any other software that interferes with consumers’ computer use, and from any form of deceptive marketing. In 2008, the FTC had charged Ross and six other defendants with conning consumers into buying software to remove malware supposedly detected by computer scans. The other defendants either settled the charges or had default judgments entered against them.

Ross appealed the district court ruling, including its finding in favor of the FTC on the issue of whether Ross was a “control person” who could be held liable for the deceptive practices. On February 25, 2014, the U.S. Court of Appeals for the Fourth Circuit upheld the lower court’s findings, stating, in part, that to rule in her favor “would effectively leave the Commission with the ‘futile gesture’ of obtaining ‘an order directed to the lifeless entity of a corporation while exempting from its operation the living individuals who were responsible for the illegal practices’ in the first place.”

CALIFORNIA MAN SENTENCED FOR FAILING TO REPORT FOREIGN BANK ACCOUNTS

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, February 27, 2014
Portola Valley, Calif., Man Sentenced to Prison for Failure to Report Foreign Bank Accounts Held at UBS

Christopher B. Berg of Portola Valley, Calif., was sentenced yesterday to one year and one day in prison to be followed by three years supervised release, announced Assistant Attorney General for the Tax Division Kathryn Keneally and U.S. Attorney Melinda Haag for the Northern District of California.   Prior to sentencing, Berg paid restitution to the Internal Revenue Service (IRS) of more than $250,000 as well as a penalty of $287,896 for failure to properly report his foreign account.   Berg previously pleaded guilty to willfully failing to file the required report of foreign bank account for an account he controlled in 2005 at UBS in Switzerland that had a balance over $10,000.  
                                                                                                         
According to court documents, Berg began working as a consultant in 1999.   In 2000, Berg met with Beda Singenberger, a Swiss financial consultant, and a vice president of banking at UBS in San Francisco regarding setting up a bank account at UBS in Switzerland to shelter a portion of his consulting income from taxation.   Beginning in 2001 and continuing through 2005, Berg used wire transfers to deposit $642,070 in earned income into UBS accounts.   Berg used money in these Swiss UBS accounts to purchase a vehicle, to obtain cash while in Europe and to pay the balance on a Eurocard he used while traveling in Europe.   Berg did not disclose the existence of his accounts at UBS in Switzerland to his certified public accountant, and also failed to disclose the income earned by these accounts or the consulting income deposited to the accounts.   The tax harm associated with Berg’s conduct exceeded $250,000.

The case was investigated by IRS-Criminal Investigation and prosecuted by Assistant Chiefs Elizabeth C. Hadden and Margaret Leigh Kessler of the Tax Division.

PHONY SPAM "GIFT CARD" GROUP SETTLES FTC COMPLAINT

FROM:  FEDERAL TRADE COMMISSION 
Another Group of Marketers Behind Phony 'Gift Card' Text Spam Settles FTC Complaint
Defendants Paid Affiliates to Send Illegal Text Messages Promoting “Free” Gift Cards from Wal-Mart, Best Buy

A group of affiliate marketers has agreed to settle Federal Trade Commission charges that they took part in a scheme that bombarded consumers with tens of millions of spam text messages that lured consumers with phony gift card offers, and then directed recipients to deceptive websites.

The Chicago-based defendants in the case, operating through two companies called CPA Tank, Inc. and Eagle Web Assets, Inc., are the latest to settle FTC charges as a result of the agency’s crackdown on deceptive affiliate marketing on the Internet.

In its complaint, the FTC charged that CPA and Eagle paid affiliates to send out the spam text messages promoting supposedly “free” merchandise, such as $1,000 gift cards for Wal-Mart and Best Buy.

“Sending illegal text messages will get you in hot water with the FTC,” said Jessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection. “You can’t avoid responsibility by hiring a third-party to send them for you.”

People who clicked on the links in the text message did not receive the promised items, the FTC charged. Instead, they were taken to websites that requested they provide personal information and sign up for numerous additional offers – often involving other purchases or paid subscriptions.

Earlier this month, the operators behind one of these websites agreed to pay $2.5 million to settle FTC charges. Another website operator was sued by the FTC in July 2013. In addition, the FTC sued a number of affiliates responsible for many of the underlying text messages in a sweep of enforcement cases in March 2013.

The FTC alleged the defendants’ deceptive and unfair practices violated the FTC Act. The final order against CPA Tank, Eagle Web Assets, and their respective principals, Vito Glazers and Ryan Eagle, prohibits them from making misrepresentations in marketing any good or service, including misrepresentations that a product or service is "free" or without cost or obligation.

It also requires defendants, if they offer products or services in the future, to disclose all material terms and conditions of such offers, and prohibits them from making, or initiating the transmission of, unauthorized or unsolicited commercial electronic text messages to mobile telephones or other wireless devices.

The settlement imposes a $200,000 judgment against the defendants, most of which is suspended, due to their inability to pay. It requires them to turn over $30,000 in cash plus the proceeds from the sale of Glazers’ 2007 Bentley automobile and Eagle’s 2006 Range Rover.

Information for Consumers and Business

The FTC has a new blog post for consumers, advising them how to recognize and avoid text-messaging scams, as well as information for businesses on this issue.

The Commission’s vote authorizing staff to file the stipulated final order was 4-0. The FTC filed the stipulated final order for permanent injunction in the U.S. District Court for the Northern District of Illinois, Eastern Division, and it was entered on February 26, 2014.

NOTE: Stipulated orders have the force of law when signed and approved by the District Court judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.

REMARKS ON UKRAINE BY U.S. UN AMBASSADOR POWER

FROM:  U.S. STATE DEPARTMENT 
Remarks by Ambassador Samantha Power, U.S. Permanent Representative to the United Nations, at a Security Council Stakeout on Ukraine
Samantha Power
U.S. Permanent Representative to the United Nations 
New York, NY
March 1, 2014
AS DELIVERED

Good evening. Today in the Council, the United States renewed its call for the international community to support the newly formed government of Ukraine and prevent unnecessary violence.

Unfortunately, the Russian Federation Council's authorization of the use of military force in Ukraine is as dangerous as it is destabilizing. It is past time for the threats to end. The Russian military must pull back.

It is ironic that the Russian Federation regularly goes out of its way in the Security Council chamber to emphasize the sanctity of national borders and sovereignty. Today, Russia would do well to heed its own warnings. Russia's actions in Ukraine violate Russia's commitment to protect the sovereignty, territorial integrity, and independence of Ukraine, and pose a threat to international peace and security. We have said from the outset that we recognize and respect Russia's historical ties to Ukraine. But instead of engaging the government of Ukraine and international institutions about its concerns for ethnic Russians, it ignored both and has instead acted unilaterally and militarily.

The United States, again, calls for the immediate deployment of international observers from either the OSCE or United Nations to Crimea and other parts of Ukraine to provide transparency about the movement and activities of military and para-military forces in the region and to defuse the tension between groups. The best way to get the facts, to monitor conduct and to prevent any abuses is to get international monitors and observers - including from UN and OSCE - on the ground as soon as possible. We are also working to stand up an international mediation mission to the Crimea to begin to deescalate the situation, and to facilitate productive and peaceful political dialogue among all Ukrainian parties.

Less than one week since the sun set on the Sochi Olympics, we are at a critical moment. The United States considers the current actions by Russia in Ukraine as unacceptable behavior for a G-8 member. The United States will stand with the people of Ukraine and the Ukrainian government in Kyiv. And as the President has said, intervention by the Russian military will be both a grave mistake and have costs and consequences.

With that, I'll take a couple questions.

Reporter: James Bays from Al Jazeera. I know that President Obama has been speaking to President Putin. President Putin now has this authorization, but there's clearly now a gap before he decides whether he's going to use it. Just, explain to us if you can on camera what is the message from the U.S. to President Putin right now?

Ambassador Power: The message is, pull back your forces. Let us engage in political dialogue. Engage with the Ukrainian government which is reaching out to you for that dialogue. The occupation . . . the military presence in Crimea is a violation of international law and we all need to allow cooler heads to prevail and to negotiate a peaceful way out of this crisis. Military force will never be the answer to this crisis.

Reporter: Ambassador, what are those costs that the United States says that Russia will suffer; and secondly, as a champion of human rights, doesn't it trouble you that there are four senior members of this Ukrainian government who have come from very far right, extremist parties?

Ambassador: I think what you heard from President Obama in the readout that the White House issued is that the United States has already suspended its preparation for the G-8 Summit that was supposed to take place in Sochi. And what I can say is that, again, the political and economic isolation that that represents is only going to deepen as this crisis escalates. And that is why, again, it is incredibly important that an international observer mission get into Ukraine as soon as possible; that all countries embrace the prospect of international mediation, such as that offered by the UN Special Envoy Robert Serry; and that we embrace the fundamental tenets of the UN Charter: territorial integrity, sovereignty and unity of Ukraine, avoiding the use of force, and the threat of force, and returning to the path of peaceful dialogue.

Thank you.

U.S. SENDS BEST WISHES TO PEOPLE OF BULGARIA ON THEIR NATIONAL DAY

FROM:  U.S. STATE DEPARTMENT 

Statement on the Occasion of Bulgaria's National Day

Press Statement

John Kerry
Secretary of State

Washington, DC

February 28, 2014

---

On behalf of President Obama and the people of the United States, I send best wishes to all Bulgarians as you celebrate National Day on March 3.

This year, we commemorate the 10^th anniversary of Bulgaria’s NATO membership. From Libya to Afghanistan, Bulgaria’s contributions to global security have made our countries stronger and our peoples safer. We are especially grateful to Bulgaria for hosting joint and multilateral training exercises, and we will continue to deepen our security partnership.

The United States and Bulgaria work closely together to advance our common interests and values. We are increasing our trade and investment. We are strengthening our law enforcement cooperation, and we recently signed an agreement to protect Bulgaria’s rich cultural heritage from illegal trafficking.

Our people-to-people ties are already shaping a better future for the next generation. That idea is what leads some 7,000 Bulgarian university students come to the United States every year under the Summer Work Travel program. It’s also what leads Americans to travel to Bulgaria to explore its natural beauty and learn about its unique history at the crossroads of Europe.
The United States is proud to have a close friend and ally in Bulgaria. We look forward to strengthening our partnership in the years to come.

U.S.P.S. EMPLOYEE CHARGED WITH FRAUD RELATED TO INCOME TAX FILINGS

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, February 25, 2014
United States Postal Service Employee Charged in Scheme to Fraudulently Extinguish Debts and to Obtain Fraudulent Tax Refunds

Aaron H. Kelly, a United States Postal Service employee, was indicted yesterday in the U.S. District Court for the District of Maryland for four counts of mail fraud, two counts of bank fraud, one count of corruptly endeavoring to obstruct and impede the Internal Revenue Service (IRS) and two counts of aiding and assisting in the preparation of false tax returns, the Justice Department and IRS announced today following the unsealing of the indictment.

According to the indictment, Kelly, a resident of Maryland, engaged in a scheme to defraud the IRS, the Thrift Saving Plan and the Educational Systems Federal Credit Union by sending fictitious financial instruments to fraudulently extinguish the taxes he owed to the United States as well as the debts he owed to the Thrift Savings Plan and the Federal Credit Union.  In addition, Kelly submitted two false tax returns to the IRS that requested millions of dollars in fraudulent refunds.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.  If convicted, Kelly faces a statutory maximum potential sentence of 20 years in prison for each mail fraud count, 30 years in prison for each bank fraud count and three years in prison for each of the tax-related counts.

This case was investigated by the Treasury Inspector General for Tax Administration and special agents of IRS - Criminal Investigation.  Trial Attorneys Ken Vert and Yael T. Epstein of the department’s Tax Division are prosecuting the case.

SECRETARY OF STATE KERRY'S RECENT STATEMENT ON UKRAINE SITUATION

Situation in Ukraine

Press Statement

John Kerry
Secretary of State

Washington, DC

March 1, 2014

---

The United States condemns the Russian Federation's invasion and occupation of Ukrainian territory, and its violation of Ukrainian sovereignty and territorial integrity in full contravention of Russia’s obligations under the UN Charter, the Helsinki Final Act, its 1997 military basing agreement with Ukraine, and the 1994 Budapest Memorandum. This action is a threat to the peace and security of Ukraine, and the wider region.

I spoke with President Turchynov this morning to assure him he had the strong support of the United States and commend the new government for showing the utmost restraint in the face of the clear and present danger to the integrity of their state, and the assaults on their sovereignty. We also urge that the Government of Ukraine continue to make clear, as it has from throughout this crisis, its commitment to protect the rights of all Ukrainians and uphold its international obligations.

As President Obama has said, we call for Russia to withdraw its forces back to bases, refrain from interference elsewhere in Ukraine, and support international mediation to address any legitimate issues regarding the protection of minority rights or security.
From day one, we've made clear that we recognize and respect Russia’s ties to Ukraine and its concerns about treatment of ethnic Russians. But these concerns can and must be addressed in a way that does not violate Ukraine’s sovereignty and territorial integrity, by directly engaging the Government of Ukraine.

Unless immediate and concrete steps are taken by Russia to deescalate tensions, the effect on U.S.-Russian relations and on Russia’s international standing will be profound.
I convened a call this afternoon with my counterparts from around the world, to coordinate on next steps. We were unified in our assessment and will work closely together to support Ukraine and its people at this historic hour.

In the coming days, emergency consultations will commence in the UN Security Council, the North Atlantic Council, and the Organization for Security and Cooperation in Europe in defense of the underlying principles critical to the maintenance of international peace and security. We continue to believe in the importance of an international presence from the UN or OSCE to gather facts, monitor for violations or abuses and help protect rights. As a leading member of both organizations, Russia can actively participate and make sure its interests are taken into account.

The people of Ukraine want nothing more than the right to define their own future – peacefully, politically and in stability. They must have the international community’s full support at this vital moment. The United States stands with them, as we have for 22 years, in seeing their rights restored.

IRS SAYS THINGS RUNNING SMOOTHLY

FROM:  INTERNAL REVENUE SERVICE    
IRS Continues Smooth Start to Filing Season

WASHINGTON — The IRS announced today that, three weeks into the filing season, it has received about one-third of the individual income tax returns that it expects to receive during 2014. The IRS has processed almost 98 percent of the 49.6 million returns received so far. Each week this filing season, the IRS has processed a greater percentage of the returns received than during comparable weeks last year.

More taxpayers are filing their returns electronically this year. Overall, 46.6 million returns have been e-filed this year, up one percent from the same time last year. As in prior years, the greatest increase is among individuals filing from their home computers. Almost 22 million returns have been e-filed from home computers this year, an increase of almost 7 percent compared to the same time last year.

The IRS has issued more than 40 million tax refunds this year, an increase of more than six percent compared to the same time last year. Almost 90 percent of these refunds were directly deposited into taxpayers’ accounts.

OWNER FAKE PSYCHOTHERAPY CLINIC SENTENCED TO 96 MONTHS IN PRISON

FROM:  JUSTICE DEPARTMENT 
Thursday, February 27, 2014
Owner of Fake Michigan Psychotherapy Clinic Sentenced for Role in Medicare Fraud Scheme

The owner of two Flint, Mich., adult day care centers was sentenced for his leadership role in a $3.2 million Medicare fraud scheme.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.

Glenn English, 53, was sentenced by United States District Judge Victoria A. Roberts in the Eastern District of Michigan to serve 96 months in prison.   In addition to his prison term, English was sentenced to serve three years of supervised release and was ordered to pay $988,529 in restitution.

On Oct. 18, 2013, English and co-defendant Richard Hogan were found guilty by a federal jury for their roles in organizing and directing a psychotherapy fraud scheme through New Century Adult Day Program Services LLC and New Century Adult Day Treatment Inc. (together, New Century).  English was convicted of one count of conspiracy to commit health care fraud and seven counts of health care fraud, and Hogan was convicted of one count of conspiracy to commit health care fraud.

E vidence presented at trial showed that from 2009 through 2012, New Century operated as an adult day care center that billed Medicare for psychotherapy services.   English was New Century’s owner and chief executive officer.   New Century brought in mentally disabled residents of Flint-area adult foster care (AFC) homes, as well as people seeking narcotic drugs, and used their names to bill Medicare for psychotherapy that was not provided.   English and his co-conspirators lured drug seekers to New Century with the promise that they could see a doctor there who would prescribe to them the narcotics they wanted if they signed up for the psychotherapy program.   New Century used the signatures and Medicare information of these drug seekers and AFC residents to claim that it was providing them psychotherapy, when in fact it was not.

The evidence also showed that English directed New Century employees to fabricate patient records to give the false impression that psychotherapy was being provided.   English also instructed New Century clients to pre-sign sign-in sheets for months at a time for dates they were not there, and used these signatures to claim to Medicare that these clients had been provided services.

The evidence at trial showed that in little more than two years, New Century submitted approximately $3.28 million in claims to Medicare for psychotherapy that was not provided.   Medicare paid New Century $988,529 on these claims.

This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.   This case was prosecuted by Trial Attorneys William G. Kanellis and Henry P. Van Dyck of the Fraud Section, with assistance from Assistant Chief Catherine K. Dick.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion.   In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

INCREASING FUEL CELL PERFORMANCE USING MATERIAL TECHNOLOGY

FROM:  NATIONAL SCIENCE FOUNDATION 
Material technology that can increase performance of fuel cells
Researcher hopes to create fuel cells that are more durable, efficient and less costly

Fuel cells convert chemical energy stored in fuel into electricity without combustion. They hold great promise as a clean energy alternative to fossil fuels because they use mostly hydrogen gas, and their only byproducts are heat and water, which makes them pollution free. They also have more than two times the efficiency of traditional combustion technologies.

But they still are expensive, with parts that can degrade over time, and--to be widely used in ground transportation, for example--likely would require an overhaul of the nation's infrastructure, among other things, in order to make the switch from gas to hydrogen.

Chulsung Bae is working to develop a key fuel cell component that he hopes will be more durable and efficient than what is currently available, as well as less costly, with the hope of promoting more widespread use of the technology.

The National Science Foundation (NSF)-funded scientist and associate professor of chemistry and chemical biology at the New York State Center for Polymer Synthesis, Rensselaer Polytechnic Institute, predicts that fuel cells ultimately "will be adopted in ground transportation in automobiles, and they will probably replace batteries in such devices as laptops and cell phones."

The fuel cell was invented in 1839 by William Robert Grove, a Welsh scientist, but was not used commercially until the 1960s, according to the Department of Energy. NASA used fuel cells in Project Gemini between 1962 and 1966 to generate power for probes, satellites and space capsules, and still uses them in the space program. Astronauts, in fact, drink water generated from fuel cells, Bae says.

Like batteries, fuel cells have no internal moving parts. Unlike batteries, however, which need a long time to store energy, fuel cells produce electricity instantly and continuously as long as fuel and air are available.

When hydrogen is the fuel, "electrons are drawn from the fuel at the negative side (called anode) of fuel cell and travel to the positive side (called cathode) through external circuit, turning chemical energy into electricity while producing only water and heat as byproducts.

Fuel cells have the potential to revolutionize energy if scientists can make them more affordable and durable.

"It's a complicated technology made of many parts, with two being the most important," Bae says. "These are a catalyst, which converts the fuel to proton and electron by electrochemical reaction, and the other key component of the cell is a membrane that allows the proton to move from the anode to the cathode of the fuel cell to complete the chemical reaction. The proton is known as H+, which is a positive form of the hydrogen created by removing one electron from the hydrogen atom."

Bae's goal is to develop a new membrane through molecular engineering that lasts longer and is more economical than the only commercial product currently available, a material called Nafion,® which has serious drawbacks in addition to its high cost, he says. These include the "rare availability of fluorine-containing precursors," that is, the materials need to produce Nafion,® which are difficult to make, "and reduced proton conductivity above 100 Celsius degree," among others, he says. "It is not ideal for fuel cells."

"If you want to increase the performance of fuel cells, proton conductivity is the key for determining performance," he adds.

To that end, Bae has been studying Nafion® to determine which chemical structures in it are weak so "I can revise them in my design of new membrane chemical structures," he says, and has synthesized a new type of fuel cell membranes in the lab.

In testing, "we make a membrane and, for example, say it is made of five different chemical structures--a, b, c, d, e," he says. "I change 'a' and measure its properties, then change 'b' and measure its properties, and so on. I would like to know what happens to the properties when changing the structure systematically, so I can have a better understanding of the relationship between the chemical structure and its performance in fuel cells."

He has a candidate membrane and is collaborating with the Los Alamos National Laboratory to test it.

"In our lab we discovered key structures that can enhance proton conductivity without adding too much cost by using commercially available plastics as a membrane precursor, changing its structures and measuring its properties," he says.

Bae is conducting his work with an NSF Faculty Early Career Development (CAREER) award, which he received in 2008. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education, and the integration of education and research within the context of the mission of their organization. NSF is funding his work with about $450,000 over five years. (He received a one-year deadline extension to accommodate his transition in changing schools.)

As part of the grant's educational component, Bae teaches about clean energy technology in his graduate and undergraduate courses, and has sponsored high school students for a month's internship in his lab.

"I usually teach organic chemistry, a large enrollment undergraduate course with 200 or more students," he says. "They mostly are juniors and sophomores who often think that chemistry is just about the periodic table, and not related to real life. They don't get the idea of how chemists can have an impact on our lives. I give them fuel cell demonstrations and talk about our membrane work in order to show how chemistry they learned in the class can change the world and chemistry is an important part of our lives."

-- Marlene Cimons, National Science Foundation
Investigators
Chulsung Bae
Related Institutions/Organizations
University of Nevada Las Vegas

READOUT: PRESIDENT OBAMA'S CALLS WITH PRESIDENT HOLLANDE, PRIME MINISTER HARPER

FROM:  THE WHITE HOUSE 
Readout of President Obama’s calls with President Hollande and Prime Minister Harper

President Obama spoke separately this afternoon with President Hollande of France and Prime Minister Harper of Canada. The leaders agreed that Ukraine’s sovereignty and territorial integrity must be respected, and expressed their grave concern over Russia’s intervention in Ukraine. The leaders agreed to continue to coordinate closely, including bilaterally, and through appropriate international organizations. The leaders affirmed the importance of unity within the international community in support of international law, and the future of Ukraine and its democracy.  The leaders also pledged to work together on a package of support and assistance to help Ukraine as it pursues reforms and stabilizes its economy.